Document:

EXHIBIT 10.4

 

DESIGNEE DIRECTOR

 

«GrantDate»

 

«FirstName»«LastName»

«Address1»

«City»,
«State» «PostalCode»

 

Re:         Grant of
Restricted Units

 

Dear «FirstName»:

 

I am pleased
to inform you that your existing grant (the “Prior Grant”) of Restricted Units
under the Company’s 1998 Long-Term Incentive Plan (the “Plan”) is hereby
supplemented with an additional grant of 3750 Restricted Units (5000
total).  The terms and conditions of this
grant are as set forth below.

 

1.                       Subject to the further
provisions of this Agreement, your Restricted Units shall vest (become payable
in the form of one Common Unit of Plains All American Pipeline, L.P. for each
Restricted Unit) as follows: 1250 Restricted Units shall vest in accordance
with the Prior Grant; thereafter, 1250 units will vest annually on the [Month]
Distribution Date.

 

2.                       As of each vesting date, for so
long as your service on the Board of Directors is not terminated, you shall
automatically receive a grant, evidenced hereby, of an additional 1250
Restricted Units, such that the total outstanding Restricted Units granted by
this letter shall remain 5000.

 

3.                       In the event that your service
on the Board of Directors is terminated for any reason other than your death or
disability (as determined in good faith by the Board of Directors), all
unvested Restricted Units shall be forfeited as of the date service terminates.

 

4.                       In the event your service on the
Board of Directors is terminated because of your death or disability, all
unvested Restricted Units shall immediately become nonforfeitable, and shall
vest in full as of the next vesting date.

 

5.                       In the event of a vesting under
paragraph 4 above, the provisions of paragraph 2 above shall no longer be
operative.

 

 

 

As used herein, the phrase “Distribution Date”
means the date, in any given month and year, on which the Partnership pays a
quarterly distribution.  The “Company” refers to Plains All American
GP LLC.  The “Partnership” refers to
Plains All American Pipeline, L.P.

 

Terms used
herein that are not defined herein shall have the meanings set forth in the
Plan or, if not defined in the Plan, in the Third Amended and Restated
Agreement of Limited Partnership of Plains All American Pipeline, L.P., as
amended (the “Partnership Agreement”). By signing below, you agree that the
Restricted Units granted hereunder are governed by the terms of the Plan.   Copies of the Plan and the Partnership
Agreement are available upon request. 
Please execute and return this Agreement to me.  The attached copy of this Agreement is for
your records.

 

 

	
   

  	
  PLAINS AAP,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By: PLAINS
  ALL AMERICAN GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Tim Moore

  
	
   

  	
  Title:

  	
  Vice
  President & General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  «FirstName» «LastName»

  	
   

  
	
   

  	
   

  
	
  SSN:

  	
  «SSN»

  	
   

  	
   

  
	
   

  	
   

  
	
  Dated:EXHIBIT 10.5

 

Director Compensation Letter

 

[Month]       , 2005

 

Name

Address

 

Re:   Payment of director compensation

 

Dear                   :

 

Based on our understanding of your
obligations to [Fund], and consistent with past practice, any compensation earned
by you in connection with your service as a member of the Board of Directors of
the Company is to be paid to [Fund]. 
This letter is to memorialize that understanding.  Any fees or compensation that would otherwise
be payable to you as a member of the Board or as a member or chairman of any
committee of the Board will be paid directly to [Fund].

 

Any compensation paid generally to the
members of the Board in the form of equity will be paid in cash of equivalent
value to [Fund].  In the event of the termination
of your directorship with the Company, all payment obligations of the Company
hereunder shall cease.  Please execute
and return this Agreement to the attention of the General Counsel.  The attached copy of this letter agreement is
for your records.

 

 

	
   

  	
  PLAINS ALL
  AMERICAN GP LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  [name and
  title]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [director’s
  name]

  	
   

  
	
   

  	
   

  
	
  Dated:Exhibit 10.16

 

As
approved on February 16, 2005, and effective commencing on March 1, 2005, all
grants to each director under the 1996 Stock Option Plan of Non-Qualified
Options shall have a term of 10-years and be exercisable both during and after
the grantee’s director services to the Company. 
The amount of the annual grant shall be an option to purchase 30,000
shares at an exercise price equal to the closing market price on the date of
the grant.  Each non-employee director
will additionally receive a one-time supplemental grant of 120,000 options,
under the same terms, upon the earlier to occur of 1) a change in control of
the Registrant, 2.) an equity offering representing more than 10% of the
outstanding shares of the Registrant, or 3.) December 31, 2005.  In the event of a change in control, all
outstanding stock options for directors will automatically become fully vested,
and therefore have until the expiration of the original term of the grant of
each option to exercise the options.Exhibit 10.17

 

As approved on February 16, 2005, the Board
of Directors has established a retention bonus pool for key management
employees payable only in the event of a change in control in the
Registrant.  The pool shall be initially
funded with $135,000.  The purpose of the
pool is to provide an additional incentive to key management personnel to give
their entire attention and efforts to the Company’s business.  Participants who voluntarily terminate their
employment or are terminated for cause prior to the date on which distribution
of the pool is called for shall not be eligible to receive any payment on
account of this pool.   The amounts
allocated to each participant and the other terms and conditions of the bonus
payout are subject to further approval of the Board of Directors.Exhibit 10.18

 

Standard
Severance Policy:

	
  •

  	
   

  	
  Hourly — 1 week plus 1
  week for every year of service

  
	
  •

  	
   

  	
  Salary — 2 weeks plus
  1 week for every year of service

  
	
  •

  	
   

  	
  Employees of
  “Director” Level — 4 weeks + 1 week for every year of service

  

 

Supplemental
Severance Policy in the Event of a Change in Control

 

Participants
shall not be eligible for this supplemental severance payment plan if they
voluntarily terminate their employment. To qualify for the supplemental
severance, an employee must remain employed by the Company continuously
hereafter until such time as the Company has any 50% or more change in
ownership of the Company or any sale of substantially all of the assets of the
Company through a major corporate event, such as any merger or acquisition.  For qualifying employees who are
involuntarily terminated or constructively discharged by the Company in
connection with such transaction or within six (6) months thereafter, the
severance benefits payable shall be as follows:

 

All
employees:

	
  •

  	
   

  	
  Standard
  policy plus 4 weeks additional (minimum of eight (8) weeks).

  
	
  •

  	
   

  	
  All
  Stock options vest upon termination.

  
	
   

  	
   

  	
  All
  stock options will be exercisable for 1 year from the date of termination

  
	
  •

  	
   

  	
  Severance
  is provided as a continuation of pay

  
	
   

  	
   

  	
  Benefits
  continue through severance period

  

 

Vice
Presidents:

	
  •

  	
   

  	
  Six
  months of salary + benefits provided as a continuation of pay

  
	
  •

  	
   

  	
  Stock
  options vest upon termination

  
	
   

  	
   

  	
  All
  stock options will be exercisable for 1 year from the date of termination

  

 

CEO

	
  •

  	
   

  	
  Twelve
  months of salary + benefits provided as a continuation of pay

  
	
  •

  	
   

  	
  Stock
  options vest upon termination

  
	
   

  	
   

  	
  All
  stock options will be exercisable for 1 year from the date of terminationExhibit 10.19

 

1.   Provide for the Chairman’s meeting
compensation to be $2,000/meeting, effective on the day following the January
31, 2005.

 

2.  
Provide for the Chairman’s conference call and special (short) meeting
compensation to be $750, effective on the day following the January 31, 2005.Exhibit 10.14

 

CHANGE OF CONTROL SEVERANCE PLAN

 

As amended and restated effective
February 17, 2005

 

Introduction

 

The Board of Directors of
Coherent, Inc., a Delaware corporation (“Company”), has evaluated the economic
and social impact of an acquisition or other change of control on its key
employees.  The Board recognizes that the
potential of such an acquisition or change of control can be a distraction to
its key employees and can cause them to consider alternative employment
opportunities.  The Board has determined
that it is in the best interests of the Company and its stockholders to assure
that the Company will have the continued dedication and objectivity of its key
employees.  The Board believes that the
adoption of this amended and restated Plan will enhance the ability of the
Company’s key employees’ to assist the Board in objectively evaluating
potential acquisitions or other changes of control.

 

Furthermore, the Board
believes a change of control severance plan of this kind will aid the Company
in attracting and retaining the highly qualified, high performing individuals
who are essential to its success.  The
plan’s assurance of fair treatment will ensure that key employees will be able
to maintain productivity, objectivity and focus during the period of
significant uncertainty that is inherent in an acquisition or other change of
control.

 

Accordingly, the
following plan has been developed and is hereby adopted.

 

ARTICLE I

 

ESTABLISHMENT OF PLAN

 

1.1           Establishment
of Plan.

 

As of the Effective Date,
the Company hereby establishes an amended and restated severance plan to be
known as the “Change of Control Severance Plan” (the “Plan”), as set forth in
this document.  The purposes of the Plan
are as set forth in the Introduction.

 

1.2           Applicability
of Plan.

 

The benefits provided by
this Plan shall be available to certain key Employees of the Company who, at or
after the Effective Date, meet the eligibility requirements of Article III.

 

1.3           Contractual
Right to Benefits.

 

This Plan establishes and
vests in each Participant a contractual right to the benefits to which he or
she is entitled hereunder, enforceable by the Participant against his or her
Employer or the Company, or both.

 

 

ARTICLE II

 

DEFINITIONS AND CONSTRUCTION

 

2.1           Definitions.

 

Whenever used in the
Plan, the following terms shall have the meanings set forth below and, when the
meaning is intended, the initial letter of the term is capitalized.

 

(a)           “Acquiror”
means the Person, successor, or assignee, if any, that consummates a Business
Combination with the Company or that acquires fifty percent (50%) or more of
the combined voting power of the outstanding shares of capital stock of the
Company entitled to vote generally in the election of directors.

 

(b)           “Base
Pay” means all base straight time gross earnings, exclusive of incentive
compensation, incentive payments, bonuses, commissions or other compensation,
for the calendar year coinciding with or immediately preceding the year in
which the Severance Payment becomes payable.

 

(c)           “Beneficial
Owner” shall have the meaning ascribed to such term in Rule l3d-3 of the
General Rules and Regulations under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).

 

(d)           “Bonus
Pay” means, with respect to a Participant, the total target payments to the
Participant under the Company’s cash bonus, commission and incentive programs
at 100% of plan for the Company fiscal year in which the Change of Control
occurs, or, if greater, for the Company fiscal year in which the Participant’s
employment terminates, and Company contributions allocated to the Participant’s
account under the Company’s 401(k) plan (other than contributions attributable
to the Participant’s salary deferral election), for the calendar year
coinciding with or immediately preceding the year in which the Severance
Payment becomes payable.

 

(e)           “Business
Combination” means and includes each and all of the following occurrences:

 

(i)            A
consolidation or merger pursuant to which more than 50% of the Company’s voting
stock is transferred to different holders, except for a transaction intended
primarily to change the state of the Company’s incorporation.

 

(ii)           More
than 50% of the assets of the Company are sold or otherwise disposed of.

 

(iii)          The
Company dissolves or liquidates or effects a partial liquidation involving more
than 50% of its assets.

 

(f)            “Change
of Control” of the Company means and includes each and all of the following
occurrences:

 

2

 

(i)            The
consummation of a Business Combination which has been approved by the requisite
vote of the shareholders.

 

(ii)           The
acquisition by any Person as Beneficial Owner, directly or indirectly, of fifty
percent (50%) or more of the combined voting power of the outstanding shares of
capital stock of the Company entitled to vote generally in the election of
directors.

 

(iii)          A
change in the composition of the Board of Directors of the Company, as a result
of which fewer than 50% of the Directors are “Incumbent Directors.”  For this purpose, “Incumbent Directors” are
directors who either (A) are directors of the Company as of the Effective
Date or (B) are elected, or nominated for election, to the Board of
Directors of the Company with the affirmative votes of at least a majority of
the Incumbent Directors at the time of such election or nomination (but shall
not include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors of the
Company.)

 

For purposes of this
Plan, the Board of Directors may, by resolution, clarify the date as of which a
Change of Control shall be deemed to have occurred.

 

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

 

(h)           “Company”
means Coherent, Inc., a Delaware corporation, and any successor as provided in Article VII
hereof.

 

(i)            “Effective
Date” means February 17, 2005.

 

(j)            “Employee”
means a common law employee of an Employer (other than an employee who is a
party to an individual agreement with the Company which provides severance or
severance-type benefits), whose customary employment as of a Change of Control
is 20 hours or more per week.  For
purposes of this Plan, an Employee shall be considered to continue to be employed
in the case of sick leave, military leave, or any other leave of absence
approved by the Company.

 

(k)           “Employer”
means the Company or a subsidiary of the Company which has adopted the Plan
pursuant to Article VI hereof.

 

(l)            “ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

(m)          “Just
Cause” means the termination of employment of an Employee shall have taken
place as a result of (i) an act or acts of dishonesty undertaken by such
Employee and intended to result in substantial gain or personal enrichment of
the Employee at the expense of his or her Employer, (ii) persistent
failure or inability to perform the duties and obligations of such Employee’s
employment which are demonstrably willful and deliberate on the Employee’s part
and which are not remedied in a reasonable period of time after receipt of
written notice from the Company, or (iii) Employee’s conviction of, or plea of nolo
contendere to, a felony.

 

3

 

(n)           “Participant”
means an Employee who meets the eligibility requirements of Section III.

 

(o)           “Person”
shall have the meaning ascribed to such term in Section 3(a)(9) of the
Exchange Act and as used in Sections 13(d) and 14(d) thereof, including a “group”
as defined in Section 13(d) of the Exchange Act but excluding the Company
and any subsidiary and any employee benefit plan sponsored or maintained by the
Company or any subsidiary (including any trustee of such plan acting as
Trustee).

 

(p)           “Plan”
means the Coherent, Inc. Change of Control Severance Plan, as amended and
restated as of the Effective Date.

 

(q)           “Review
Committee” means a committee established by the Board of Directors of the
Company, the primary functions of which shall be to determine whether
Participants have incurred a significant reduction in duties and
responsibilities, and to establish, where necessary, the date of a Participant’s
termination of employment for purposes of the Plan.  The Review Committee shall be composed of the
Incumbent Directors (as defined in subsection 2.1(f) above).  The Review Committee shall establish such
procedures as it deems appropriate to facilitate a fair and objective review
process to determine whether a Participant has incurred a significant reduction
in his or her duties and responsibilities.

 

(r)            “Severance
Payment” means the payment of severance compensation as provided in Article IV
hereof.

 

2.2           Applicable
Law.

 

To the extent not
preempted by the laws of the United States, the laws of the State of California
shall be the controlling law in all matters relating to the Plan.

 

2.3           Severability.

 

If a provision of this
Plan shall be held illegal or invalid, the illegality or invalidity shall not
affect the remaining parts of the Plan and the Plan shall be construed and
enforced as if the illegal or invalid provision had not been included.

 

ARTICLE III

 

ELIGIBILITY

 

3.1           Participation
in Plan.

 

As of the Effective Date,
only Employees who are Non-Officer Vice-Presidents, Officer Vice-Presidents or
the Chief Executive Officer shall be Participants in the Plan.  Following the Effective Date, new Officers of
the Company shall automatically become Participants in the Plan; provided,
however, that new Non-Officer Vice-Presidents shall only become Participants in
the Plan if the Board, in its sole discretion, affirmatively determines that
they are eligible Participants.  A
Participant shall cease to be a Participant in the Plan when he or she ceases
to be an Employee of an

 

4

 

Employer,
unless such Participant is then entitled to payment of a Severance Payment as
provided in the Plan.  A Participant
entitled to payment of a Severance Payment shall remain a Participant in the
Plan until the full amount of the Severance Payment has been paid to the
Participant.

 

ARTICLE IV

SEVERANCE BENEFITS

 

4.1           Right
to Severance Payment.

 

A Participant shall be
entitled to receive from the Company a Severance Payment in the amount provided
in Section 4.3 if there has been a Change of Control of the Company and
if, within two (2) years of the Change of Control, the Participant’s employment
by an Employer shall terminate for any reason specified in Section 4.2,
whether the termination is voluntary or involuntary.  A Participant shall not be entitled to a
Severance Payment if termination occurs for reasons not specified in Section 4.2,
including (but not limited to) death, voluntary retirement at or after age 65,
total and permanent disability, or for Just Cause.

 

4.2           Good
Reasons for Termination.

 

Following a Change of
Control, and subject to a Participant’s entering into and not revoking a
Release of Claims in favor of the Company or any successor company in
substantially the form attached hereto as Exhibit A (the “Release”), a
Participant shall be entitled to a Severance Payment and to the benefits
described in Section 4.5 if his or her employment by an Employer is
terminated, voluntarily or involuntarily, following any one or more of the
following events:

 

(a)           The
Employer reduces the Participant’s Base Pay as in effect immediately prior to
the Change of Control.

 

(b)           Without
the Participant’s express written consent, the Employer requires the
Participant to change the location of his or her job or office, so that he or
she will be based at a location more than twenty-five (25) miles from the location
of his job or office immediately prior to the Change of Control.

 

(c)           The
Employer decreases its cost of Employer-provided benefits, under plans,
arrangements, policies and procedures, taken as a whole, compared to the
Employer-provided cost of such benefits immediately prior to the Change of
Control, or the Employer increases the cost of such benefits to the Participant
compared to the Participant cost immediately prior to the Change of Control;
provided, however, that if such decrease or increase results from the Employer’s
good faith exercise of business judgment or in response to changes in federal
or state law, such decrease or increase shall not be a Good Reason for
Termination.

 

(d)           The
Participant incurs a significant reduction in duties and responsibilities as
determined by the Review Committee.

 

(e)           A
successor company fails or refuses to assume the Company’s obligations under
this Plan, as required by Article VII.

 

5

 

(f)            The
Company or any successor company breaches any of the provisions of this Plan.

 

(g)           The
Employer terminates the employment of a Participant other than for Just Cause.

 

4.3           Amount
of Severance Payment.  Each
Participant entitled to a Severance Payment under this Plan shall receive from
the Company a cash payment as follows:

 

(a)           Chief
Executive Officer.  The Severance
Payment for the Company’s Chief Executive Officer shall equal the product of
2.99 times the sum of the Chief Executive Officer’s Base Pay and Bonus Pay.

 

(b)           Officer
Vice-Presidents.  The Severance
Payment for the Company’s Officer Vice-Presidents shall equal the product of
two times the sum of the Officer Vice-President’s Base Pay and Bonus Pay.

 

(c)           Non-Officer
Vice-Presidents.  The Severance
Payment for the Company’s Non-Officer Vice-Presidents shall equal the product
of one times the sum of the Non-Officer Vice-President’s Base Pay and Bonus
Pay.

 

(d)           Non-U.S.
Participants.  In the case of a
Participant who performs all or substantially all of his or her employment
services outside of the United States, the Company may, in its discretion,
reduce the Severance Payment otherwise calculated under Section 4.3(a),
(b) or (c) by the amount of severance-type benefits to which such Participant
is then entitled under the laws of the country or countries in which such
services are performed.

 

4.4           Time
of Severance Payment.

 

The Severance Payment to
which a Participant is entitled shall be paid by the Company to the
Participant, in cash and in full, not later than the later of (i) ten calendar
days after the termination date or, (ii) the date of effectiveness of the
Release (the “Payment Date”).  If such a
Participant should die before all amounts payable to him or her have been paid,
such unpaid amounts shall be paid to the Participant’s designated beneficiary,
if living, otherwise to the personal representative of the Participant’s
estate.

 

4.5           Other
Severance Provisions.  In the event a
Severance Payment obligation is triggered under this Plan for a Participant,
such Participant shall also receive the following benefits:

 

(a)           Equity
Compensation Acceleration.  One
hundred percent of Participant’s outstanding unvested equity compensation
awards shall automatically accelerate their vesting so as to become fully
vested and exercisable.

 

(b)           Health
Insurance.  Subject to the
requirements of the Code, Participants will receive, in addition to the
Severance Payment, Company-paid group health insurance at the same level and
with the same employee premium cost as provided to such Participant immediately
prior to the Participant’s termination (the “Company-Paid Coverage”).  If a Participant’s health insurance

 

6

 

coverage included the
Participant’s dependents immediately prior to the Participant’s termination,
such dependents shall also be covered at Company expense.  Company-Paid Coverage shall continue for
three years for the Company’s Chief Executive Officer, for two years for the
Company’s Officer Vice-Presidents and for one year for the Company’s
non-Officer Vice Presidents.  For purposes of the continuation
health coverage required under Section 4980B of the Code (“COBRA”), the
date of the “qualifying event” giving rise to a Participant’s COBRA election
period (and that of his “qualifying beneficiaries”) shall be the last date on
which the Participant receives Company-Paid Coverage under this Plan.

 

(c)           Outplacement
Assistance.  On termination, the
Participant shall be entitled to reasonable, pre-approved Company-paid
outplacement assistance, including job counseling and referral services.

 

(d)           Golden
Parachute Excise Taxes.

 

(i)            Chief
Executive Officer – Reduction if Parachute Payments Are Less than 3.59 x Base
Amount.  In the event that the
benefits provided for in this Plan or otherwise payable to the Company’s Chief
Executive Officer (a) constitute “parachute payments” within the meaning
of Code Section 280G, (b) would be subject to the excise tax imposed
by Section 4999 of the Code (the “Excise Tax”), and (c) the aggregate
value of such parachute payments, as determined in accordance with Section 280G
of the Code and the Treasury Regulations thereunder is less than the product
obtained by multiplying 3.59 by Chief Executive Officer’s “base amount” within
the meaning of Code Section 280G(b)(3), then the benefits under this Plan
shall be reduced to the extent necessary (but only to that extent) so that no
portion of such benefits will be subject to the Excise Tax.

 

(ii)           Chief
Executive Officer – Full Excise Tax Gross-Up if Parachute Payments Equal to or
Greater than 3.59 x Base Amount.  In
the event that the benefits provided for in this Plan or otherwise payable to
the Company’s Chief Executive Officer (a) constitute “parachute payments”
within the meaning of Code Section 280G, (b) would be subject to the
Excise Tax, and (c) the aggregate value of such parachute payments, as
determined in accordance with Section 280G of the Code and the Treasury
Regulations thereunder is equal to or greater than the product obtained by
multiplying 3.59 by the Chief Executive Officer’s “base amount” within the
meaning of Code Section 280G(b)(3), then the Chief Executive Officer shall
receive (i) a payment from the Company sufficient to pay such Excise Tax,
plus (ii) an additional payment from the Company sufficient to pay the
Excise Tax and federal and state income and employment taxes arising from the
payments made by the Company to its Chief Executive Officer pursuant to this
sentence.

 

(iii)          Best
Results Approach for Participants other than Chief Executive Officer.  In the event that the severance and other
benefits provided for in this Plan or otherwise payable or provided to a
Participant other than the Company’s Chief Executive Officer
(i) constitute “parachute payments” within the meaning of Section 280G
of the Code, and (ii) but for this Section 4(d)(iii), would be
subject to the Excise Tax, then the Participant’s Plan benefits shall be either

 

(a)           delivered
in full, or

 

7

 

(b)           delivered
as to such lesser extent which would result in no portion of such severance
benefits being subject to the Excise Tax,

 

whichever of the
foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Participant on
an after-tax basis, of the greatest amount of severance benefits,
notwithstanding that all or some portion of such severance benefits may be
taxable under Section 4999 of the Code. 
Unless the Company and the Participant otherwise agree in writing, any
determination required under this Section 4(d)(iii) shall be made in
writing in good faith by the accounting firm serving as the Company’s
independent public accountants immediately prior to the Change of Control (the “Accountants”).  For purposes of making the calculations
required by this Section 4(d)(iii), the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of Sections
280G and 4999 of the Code.  The Company
and the Participant shall furnish to the Accountants such information and
documents as the Accountants may reasonably request in order to make a
determination under this Section.  The
Company shall bear all costs the Accountants may reasonably incur in connection
with any calculations contemplated by this Section 4(d)(iii).

 

ARTICLE V

 

OTHER RIGHTS AND BENEFITS NOT AFFECTED

 

5.1           Other
Benefits.

 

Neither the provisions of
this Plan nor the Severance Payment provided for hereunder shall reduce any
amounts otherwise payable, or in any way diminish the Participant’s rights as
an Employee of an Employer, whether existing now or hereafter, under any
benefit, incentive, retirement, stock option, stock bonus, stock purchase plan,
or any employment agreement or other plan or arrangement.

 

5.2           Employment
Status.

 

This Plan does not
constitute a contract of employment or impose on the Participant or the
Participant’s Employer any obligation to retain the Participant as an Employee,
to change the status of the Participant’s employment, or to change the Company’s
policies regarding termination of employment.

 

5.3           Taxation
of Plan Payments.

 

All Severance Payments
paid pursuant to this Plan shall be subject to regular payroll and withholding
taxes.

 

8

 

ARTICLE VI

 

PARTICIPATING EMPLOYERS

 

6.1           Upon
approval by the Board of Directors of the Company, this Plan may be adopted by
any Subsidiary of the Company.  Upon such
adoption, the Subsidiary shall become an Employer hereunder and the provisions
of the Plan shall be fully applicable to the Employees of that Subsidiary.  The term “Subsidiary” means any corporation
in which the Company, directly or indirectly, holds a majority of the voting
power of its outstanding shares of capital stock.

 

ARTICLE VII

SUCCESSOR TO COMPANY

 

7.1           The
Company shall require any successor or assignee, whether direct or indirect, by
purchase, merger, consolidation or otherwise, to all or substantially all the
business or assets of the Company, expressly and unconditionally to assume and
agree to perform the Company’s obligations under this Plan, in the same manner
and to the same extent that the Company would be required to perform if no such
succession or assignment had taken place. 
In such event, the term “Company,” as used in this Plan, shall mean the
Company as hereinbefore defined and any successor or assignee to the business
or assets which by reason hereof becomes bound by the terms and provisions of
this Plan.

 

ARTICLE VIII

DURATION, AMENDMENT AND TERMINATION

 

8.1           Duration.

 

If a Change of Control
has not occurred, this Plan shall expire two (2) years from the Effective Date,
unless sooner terminated as provided in Section 8.2, or unless extended
for an additional period or periods by resolution adopted by the Board of
Directors of the Company at any time during the second year of the Plan.

 

If a Change of Control
occurs, this Plan shall continue in full force and effect, and shall not
terminate or expire until after all Participants who become entitled to
Severance Payments hereunder shall have received such payments in full.

 

9

 

8.2           Amendment
and Termination.

 

The Plan may be amended
in any respect by resolution adopted by a majority of the Board of Directors of
the Company, unless a Change of Control has previously occurred.  The Plan may be terminated by resolution
adopted by a majority of the Board of Directors, provided that written notice
is furnished to all Participants at least sixty (60) days prior to such
termination.  If a Change of Control
occurs, the Plan no longer shall be subject to amendment, change, substitution,
deletion, revocation or termination in any respect whatsoever.

 

8.3           Form
of Amendment.

 

The form of any proper
amendment or termination of the Plan shall be a written instrument signed by a
duly authorized officer or officers of the Company, certifying that the
amendment or termination has been approved by the Board of Directors.  A proper amendment of the Plan automatically
shall effect a corresponding amendment to all Participants’ rights
hereunder.  A proper termination of the
Plan automatically shall effect a termination of all Participants’ rights and
benefits hereunder.

 

ARTICLE IX

LEGAL FEES AND EXPENSES

 

9.1           The
Company shall pay all legal fees, costs of litigation, and other expenses
incurred in good faith by each Participant as a result of the Company’s refusal
to make the Severance Payment to which the Participant becomes entitled under
this Plan, or as a result of the Company’s contesting the validity,
enforceability or interpretation of the Plan.

 

ARTICLE X

PLAN ADMINISTRATION

 

10.1         The
Employer shall have discretionary authority to construe and interpret the terms
of the Plan, and to determine eligibility and the amount and manner of any
payment of benefits hereunder.

 

10.2         An
employee or former employee of an Employer who disagrees with their allotment
of benefits under this Plan may file a written appeal with the designated Human
Resources representative.  Any claim
relating to this Plan shall be subject to this appeal process.  If an employee or former employee of an
Employer, or their representative (the “Claimant”) submits a written claim for
a benefit under the Plan and the claim is denied in whole or in part, the
Employer will notify Claimant in writing of such denial within 90 days after
the claim is received, unless special circumstances require an extension of up
to 90 more days, in which case Claimant will be notified in writing of the
extension, the special circumstances requiring the extension and the date by
which the Employer expects to render its decision.  The denial notice will include:

 

10

 

•              The
specific reason(s) for the denial,

•              References
to the specific Plan provision(s) on which the denial was based,

•              A
description of any additional material or information that is necessary to
perfect the claim and an explanation of why such material or information is necessary,
and

•              A
description of the Plan’s procedures for appealing the denial.

 

If the Claimant disagrees with the Employer’s
decision, the Claimant has 60 days from the receipt of the original denial
notice to appeal the decision.  This
appeal must be in writing and sent to the Employer.

 

The Claimant has the
right to review (upon request and at no charge) all documents and other
information relevant to his or her claim and to submit written comments,
documents and other information relating to his or her claim.  The Employer will notify Claimant in writing
of its decision within 60 days after it receives the appeal, unless special
circumstances require an extension of up to 60 more days, in which case
Claimant will be notified in writing of the extension, the special
circumstances requiring the extension and the date by which the Employer
expects to render its decision.  If
Claimant’s appeal is denied, the Employer will give Claimant written notice
that includes:

 

•              The
specific reason(s) for the denial,

•              References
to the specific Plan provision(s) on which the denial was based,

•              A
statement that Claimant will be provided, upon request and free of charge,
reasonable access to, and copies of, all documents and other information
relevant to the claim, and

•              A
statement regarding Claimant’s right to bring an action under Section 502(a)
of ERISA.

 

10.3         If
the appeal of an employee or former employee of an employer appeal is denied,
such employee or former employee shall have the right and option to elect (in
lieu of litigation) to have any dispute or controversy arising under or in
connection with the Plan settled by arbitration, conducted before a panel of
three arbitrators sitting in a location selected by the employee within fifty
(50) miles from the location of his or her job with an Employer, in accordance
with rules of the American Arbitration Association then in effect.  Judgment may be entered on the award of the
arbitrator in any court having jurisdiction. 
All expenses of such arbitration, including the fees and expenses of the
counsel for the employee, shall be borne by the Employer.

 

11

 

ARTICLE XI

ERISA REQUIRED INFORMATION

 

11.1         The
Plan sponsor and administrator is:

 

Coherent, Inc.

5100 Patrick Henry Drive

Santa Clara, CA 
95054

(408) 764-4000

 

11.2         Designated
agent for service of process:

 

General Counsel

Coherent, Inc.

5100 Patrick Henry Drive

Santa Clara, CA 
95054

(408) 764-4000

 

11.3         Plan
records are kept on a fiscal year basis.

 

11.4         The
Plan shall be funded from the Employer’s general assets only.

 

12

 

EXHIBIT A

 

COHERENT, INC. CHANGE OF CONTROL SEVERANCE PLAN

 

RELEASE OF CLAIMS

 

This Release of Claims (“Agreement”)
is made by and between Coherent, Inc. (the “Company”), and                                  
(“Employee”).

 

WHEREAS, Employee has
agreed to enter into a release of claims in favor of the Company in return for
obtaining certain severance benefits specified in the Coherent, Inc. Change of
Control Severance Plan (the “Plan”).

 

NOW THEREFORE, in
consideration of the mutual promises made herein, the Parties hereby agree as
follows:

 

1.             Termination. 
Employee’s employment from the Company terminated on
                                         .

 

2.             Confidential Information.  Employee shall
continue to maintain the confidentiality of all confidential and proprietary
information of the Company and shall continue to comply with the terms and
conditions of the [Confidentiality Agreement]
between Employee and the Company. 
Employee shall return all the Company property and confidential and
proprietary information in his possession to the Company on the Effective Date
of this Agreement.

 

3.             Payment of Salary.  Employee
acknowledges and represents that the Company has paid all salary, wages,
bonuses, accrued vacation, commissions and any and all other benefits due to
Employee.

 

4.             Release of Claims.  Employee
agrees that the foregoing consideration represents settlement in full of all
outstanding obligations owed to Employee by the Company.  Employee, on behalf of himself, and his
respective heirs, family members, executors and assigns, hereby fully and
forever releases the Company and its past, present and future officers, agents,
directors, employees, investors, shareholders, administrators, affiliates,
divisions, subsidiaries, parents, predecessor and successor corporations, and
assigns, from, and agrees not to sue or otherwise institute or cause to be
instituted any legal or administrative proceedings concerning any claim, duty,
obligation or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that he may possess
arising from any omissions, acts or facts that have occurred up until and including
the Effective Date of this Agreement including, without limitation,

 

(a)           any
and all claims relating to or arising from Employee’s employment relationship
with the Company and the termination of that relationship;

 

(b)           any
and all claims relating to, or arising from, Employee’s right to purchase, or
actual purchase of shares of stock of the Company, including, without
limitation, any claims for

 

 

fraud, misrepresentation,
breach of fiduciary duty, breach of duty under applicable state corporate law,
and securities fraud under any state or federal law;

 

(c)           any
and all claims for wrongful discharge of employment; termination in violation
of public policy; discrimination; breach of contract, both express and implied;
breach of a covenant of good faith and fair dealing, both express and implied;
promissory estoppel; negligent or intentional infliction of emotional distress;
negligent or intentional misrepresentation; negligent or intentional
interference with contract or prospective economic advantage; unfair business
practices; defamation; libel; slander; negligence; personal injury; assault;
battery; invasion of privacy; false imprisonment; and conversion;

 

(d)           any
and all claims for violation of any federal, state or municipal statute,
including, but not limited to, Title VII of the Civil Rights Act of 1964, the
Civil Rights Act of 1991, the Age Discrimination in Employment Act of 1967, the
Americans with Disabilities Act of 1990, the Fair Labor Standards Act, the
Employee Retirement Income Security Act of 1974, The Worker Adjustment and
Retraining Notification Act, the California Fair Employment and Housing Act,
and Labor Code section 201, et seq. and section 970,
et seq. and all amendments to each such
Act as well as the regulations issued thereunder;

 

(e)           any
and all claims for violation of the federal, or any state, constitution;

 

(f)            any
and all claims arising out of any other laws and regulations relating to
employment or employment discrimination; 
and

 

(g)           any
and all claims for attorneys’ fees and costs.

 

Employee agrees
that the release set forth in this section shall be and remain in effect
in all respects as a complete general release as to the matters released.  This release does not extend to any
obligations due Employee under the Plan

 

5.             [40 or Over Employees Only] Acknowledgment
of Waiver of Claims under ADEA. Employee acknowledges that he is waiving
and releasing any rights he may have under the Age Discrimination in Employment
Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary.
Employee and the Company agree that this waiver and release does not apply to
any rights or claims that may arise under the ADEA after the Effective Date of
this Agreement.  Employee acknowledges that
the consideration given for this waiver and release Agreement is in addition to
anything of value to which Employee was already entitled.  Employee further acknowledges that he has
been advised by this writing that (a) he should consult with an attorney prior
to executing this Agreement; (b) he has at least twenty-one (21) days within
which to consider this Agreement; (c) he has seven (7) days following the
execution of this Agreement by the parties to revoke the Agreement; (d) this
Agreement shall not be effective until the revocation period has expired; and
(e) nothing in this Agreement prevents or precludes Employee from challenging
or seeking a determination in good faith of the validity of this waiver under
the ADEA, nor does it impose any condition precedent, penalties or costs for doing
so, unless specifically authorized by federal law.  Any revocation should be in writing and
delivered to the Vice-President of Human

 

2

 

Resources at the Company by close of business
on the seventh day from the date that Employee signs this Agreement.

 

6.             Civil Code Section 1542.  Employee
represents that he is not aware of any claims against the Company other than
the claims that are released by this Agreement. 
Employee acknowledges that he has been advised by legal counsel and is
familiar with the provisions of California Civil Code 1542, below, which
provides as follows:

 

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
SETTLEMENT WITH THE DEBTOR.

 

Employee, being aware of
said code section, agrees to expressly waive any rights he may have thereunder,
as well as under any statute or common law principles of similar effect.

 

7.             No Pending or Future Lawsuits.  Employee
represents that he has no lawsuits, claims, or actions pending in his name, or
on behalf of any other person or entity, against the Company or any other
person or entity referred to herein. 
Employee also represents that he does not intend to bring any claims on
his own behalf or on behalf of any other person or entity against the Company
or any other person or entity referred to herein.

 

8.             Application for Employment.  Employee
understands and agrees that, as a condition of this Agreement, he shall not be
entitled to any employment with the Company, its subsidiaries, or any
successor, and he hereby waives any right, or alleged right, of employment or
re-employment with the Company.

 

9.             No Cooperation.  Employee
agrees that he will not counsel or assist any attorneys or their clients in the
presentation or prosecution of any disputes, differences, grievances, claims,
charges, or complaints by any third party against the Company and/or any officer,
director, employee, agent, representative, shareholder or attorney of the
Company, unless under a subpoena or other court order to do so.

 

10.           Costs.  The Parties shall each bear their own costs,
expert fees, attorneys’ fees and other fees incurred in connection with this
Agreement.

 

11.           Authority.  Employee represents and warrants that he has
the capacity to act on his own behalf and on behalf of all who might claim
through him to bind them to the terms and conditions of this Agreement.

 

12.           No Representations.  Employee
represents that he has had the opportunity to consult with an attorney, and has
carefully read and understands the scope and effect of the provisions of this
Agreement.  Neither party has relied upon
any representations or statements made by the other party hereto which are not
specifically set forth in this Agreement.

 

3

 

13.           Severability.  In the event
that any provision hereof becomes or is declared by a court of competent
jurisdiction to be illegal, unenforceable or void, this Agreement shall
continue in full force and effect without said provision.

 

14.           Entire Agreement.  This
Agreement, along with the Plan and the [Confidentiality Agreement], represents the entire agreement and understanding
between the Company and Employee concerning Employee’s separation from the
Company.

 

15.           No Oral Modification.  This Agreement
may only be amended in writing signed by Employee and the CEO of the Company.

 

16.           Governing Law.  This Agreement
shall be governed by the internal substantive laws, but not the choice of law
rules, of the State of California.

 

17.           Effective Date.  [40 or Over
Employees Only – otherwise effective upon signing by both parties] This
Agreement is effective eight (8) days after it has been signed by both Parties.

 

18.           Counterparts.  This Agreement
may be executed in counterparts, and each counterpart shall have the same force
and effect as an original and shall constitute an effective, binding agreement
on the part of each of the undersigned.

 

19.           Voluntary Execution of Agreement.  This Agreement
is executed voluntarily and without any duress or undue influence on the part
or behalf of the Parties hereto, with the full intent of releasing all
claims.  The Parties acknowledge that:

 

(a)           They have read this Agreement;

 

(b)           They have been represented in the preparation,
negotiation, and execution of this Agreement by legal counsel of their own
choice or that they have voluntarily declined to seek such counsel;

 

(c)           They understand the terms and consequences of this
Agreement and of the releases it contains;

 

(d)           They are fully aware of the legal and binding effect of
this Agreement.

 

4

 

IN WITNESS WHEREOF, the
Parties have executed this Agreement on the respective dates set forth below.

 

	
   

  	
  Coherent, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:                   ,
  20       

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:                   ,
  20       

  	
   

  	
   

  

 

5

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