Document:

Exhibit 10.11

 

AMENDMENT
NO. 2 TO

EMPLOYMENT
AGREEMENT

 

This AMENDMENT
NO. 2 TO EMPLOYMENT AGREEMENT (“Amendment No. 2”),
effective as of December 31, 2008 (the “Amendment
No. 2 Date”), is by and between                                     
(the “Executive”) and MEDAREX, INC. (the “Company”
and together with the Executive, the “Parties”).

 

Capitalized terms used in
this Amendment No. 2 that are not otherwise defined herein shall have the
same meaning as such terms are defined in the Agreement (as defined below).

 

WHEREAS,
the Parties entered into an Employment Agreement dated                 
(the “Agreement”) under which the Parties
agreed upon the terms pursuant to which the Executive would provide services to
the Company as further described therein, and

 

WHEREAS,
Section 409A has been added to the Internal Revenue Code of 1986, as
amended (the “Code”), and this Agreement must be amended to comply with the
final regulations issued under Code Section 409A.

 

NOW
THEREFORE, the Parties agree as follows:

 

1.             Amendment of the Agreement. 
The Parties hereby agree to amend the terms of the Agreement as follows
as of the Amendment No. 2 Date.

 

1.1.          Amendment of Section 6(B).  Section 6(B) is hereby deleted and
replaced with the following to read as follows:

 

“(1)         Subject to Section 6.B(2),
if applicable, during the Term, if the Company has given notice of non-renewal,
the Executive shall be considered to have incurred an involuntary termination
of employment as of the last day of the Term (the “Termination
Date”) and shall be entitled to receive only the following
severance payments and benefits:

 

(a)                                  the
Company shall pay the Executive the lesser of (i) his then-existing Base
Salary or (ii) two (2) times the annual limit under Code Section 401(a)(17)
for the year of termination, in the form of periodic installments on the
Company’s regular pay schedule, for one (1) year commencing with the day
following the Termination Date;

 

(b)                                 to
the extent the Executive’s Base Salary exceeds two (2) times the annual
limit under Code Section 401(a)(17) for the year of termination, such
excess amount shall be paid in a lump sum severance payment in

 

 

the year following
the year of the Termination Date, but no later than March 15 of such year;

 

(c)                                  the
Company shall continue the Executive’s benefits enumerated in Section 3.E(1) (to
the extent permitted by the Company’s insurance carriers and by the terms of
the applicable plans) for one (1) year commencing with the day following
the Termination Date; and

 

(d)                                 notwithstanding
any provisions of the plan, equity award agreement or stock option agreement
pursuant to which any equity awards or stock options were granted, (i) any
unvested equity awards or stock options that would have vested during the six (6) months
following the Termination Date shall vest of such Termination Date, and the
Executive shall be entitled to exercise any of the Executive’s equity awards or
stock options vested as of the Termination Date until ninety (90) days from the
Termination Date or the expiration of the stated period of the equity award or
option, whichever period is the shorter;

 

provided, however,
that the obligations described in (a), (b) and (c) above shall be
mitigated by earned income and benefits actually received by or for the account
of the Executive from alternative employment during the one (1) year
period following the Termination Date.

 

(2)           Payments
in respect of Base Salary pursuant to Section 6.B(1) that constitute
deferred compensation, within the meaning of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) shall be subject to the
distribution requirements of Code Section 409A(a)(2)(A), including,
without limitation, the requirement of Section 409A(a)(2)(B)(i) of
the Code that payment be delayed until six (6) months after the Executive’s
separation from service if the Executive is a “specified employee” within the
meaning of Section 409A(a)(2)(B)(i) of the Code at the time of such
separation from service.  The first
payment that is made following any such delay shall include all amounts that
would otherwise have been paid during the period of such delay, without
adjustment on account of such delay.

 

(3)           If
the Executive has given notice of non-renewal, all Company obligations to the
Executive as to compensation and benefits shall cease at the conclusion of the
Term.

 

(4)           At
the conclusion of the Term, all Company obligations to the Executive as to
compensation and benefits shall cease except for those provided above.”

 

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1.2.          Amendment of Section 6.F(1).  Subsection (b) of Section 6(F)(1) is
hereby deleted and replaced with the following to read as follows:

 

“A majority of the members of the Board is replaced
during any 12-month period by directors whose appointment or election is not
endorsed by a majority of the members of the Board.”

 

1.3.          Amendment of Section 6.F(2).  Subsection (a) of Section 6.F(2) is
hereby deleted and replaced with the following to read as follows:

 

   “(a)      Amount and Timing of
Severance: Subject to Section 6.F(2)(d), in addition to all
compensation for services rendered by the Executive to the Company up to the
Termination Date, the Company or its successor shall pay to the Executive an
amount equal to the sum of (i) two (2) times the Executive’s annual
Base Salary then in effect plus (ii) two (2) times the greater of (x) the
Executive’s targeted level of bonus for the year during which the Executive’s
termination of employment occurs, but no case less than the target bonus set
forth in Section 3.B or (y) the most recent bonus actually paid to
the Executive pursuant to Section 3.B, plus (iii) an amount equal to
the greater of (x) the Executive’s targeted level of bonus for the year
during which the Executive’s termination of employment occurs, but in no case
less than the target bonus set forth in Section 3.B, or (y) the most
recent bonus actually paid to the Executive pursuant to Section 3.B;
provided, however that the amount described in clause (iii) shall be
prorated based upon a fraction, the numerator of which is the number of days
the Executive is employed during the year in which termination occurs and the
denominator of which is three hundred and sixty-five.  The amount described in this Section 6.F(2)(a) shall
be paid: (x) if the Termination Date occurs within 30 days prior to a
Change in Control, in the form of periodic installments for two (2) years
commencing with the day following the Termination Date or (y) if the
Termination Date occurs on or within the twenty-four months (24) following a
Change in Control, in a lump sum.

 

1.4.         A
new Section 8 shall be added to the Agreement, which shall read as
follows:

 

“Compliance with Code Section 409A.  Notwithstanding anything else to the contrary
in this Agreement, all reimbursements payable under this Agreement, including,
without limitation, for business expenses and/or taxes shall be paid to the
Executive as soon as practicable after submission of proper documentation of
claims, but no later than December 31 of the year following the year
during which the expense was incurred or, with respect to any gross-up payment
under Section 6.F(2)(e) [and Section 3(D)(3) FOR
BARTELS], no later than December 31 of the year following the
year during which the Executive or the Company paid the related taxes.”

 

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2.             Miscellaneous.

 

2.1.         No Other Changes. 
Except as expressly provided in this Amendment No. 2, all terms of
the Agreement shall remain in full force and effect.

 

2.2.         Counterparts.  This
Amendment No. 2 may be executed in two or more counterparts, each of which
shall be deemed an original, but both of which together shall constitute one
and the same instrument.

 

In WITNESS WHEREOF,
the Parties have caused this Amendment No. 2 to be duly executed as of the
Amendment No. 2 Date.

 

 

	
  MEDAREX, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [NAME OF EXECUTIVE]

  	
   

  

 

4Exhibit 10.37

 

AMENDED MEDAREX, INC. 2008 DEFERRED COMPENSATION PROGRAM

(As Amended on December 12, 2008)

 

1.                                       Introduction

 

The
purpose of the Medarex, Inc. 2008 Deferred Compensation Program is to
provide a select group of management or highly compensated employees of the
Company with the ability to defer the receipt of portions of their bonus
compensation payable for services rendered to the Company.  It is intended that the Program will assist
in retaining qualified individuals to serve as officers of the Company.  The Program also is intended to promote the
interests of the Company and its shareholders by providing Participants with
the opportunity to have the value of a portion of such deferred bonus
compensation measured on the basis of the value of the Company’s common stock
and may provide for matching awards upon completion of a vesting period.

 

Any
Restricted Stock Units that are credited pursuant to the Program and any shares
of Common Stock subject to such Restricted Stock Units that are issued pursuant
to the Program shall be credited or issued, as applicable, pursuant to Section 13
of the Medarex, Inc. 2005 Equity Incentive Plan.  If so determined by the Committee, any cash
payments made under the Program may be made pursuant to Section 10 of the
Medarex Inc. 2005 Equity Incentive Plan.

 

2.                                       Definitions

 

a.                                       “Base Award” means the portion a Participant’s
Restricted Stock Unit Award granted with respect to a Voluntary Deferral as
described in Section 4(c).

 

b.                                      “Board” means the Board of Directors of the
Company.

 

c.                                       “Bonus” means a Participant’s annual bonus
granted by the Company to a Participant without regard to any decreases as a
result of (i) an election to defer a portion of such bonus under the
Program or (ii) an election between benefits or cash provided under a
program of the Company maintained pursuant to Section 401(k) of the
Code.

 

d.                                      “Cash Account” means a bookkeeping account
maintained by the Company reflecting the amount of deferred cash compensation
credited to a Participant pursuant to Section 4(b).

 

e.                                       “Code” means the Internal Revenue Code of
1986, as amended.

 

f.                                         “Committee” means the Compensation and
Organization Committee of the Board.

 

 

g.                                      “Common Stock” means the common stock, par
value $.01 per share, of the Company.

 

h.                                      “Company” means Medarex, Inc., a New
Jersey corporation.

 

i.                                          “Fair Market Value” means, as of any date, the
value of a share of Common Stock or other property as determined by the
Committee, in its discretion, or by the Company, in its discretion, if such
determination is expressly allocated to the Company herein, subject to the
following, provided that such determination complies with the Company’s Policy
and Procedures for the Granting of Stock Options and Other Equity-Based
Incentives:

 

i.                                          Except as otherwise determined by the
Committee, if, on such date, the Common Stock is listed on a national or
regional securities exchange or market system, the Fair Market Value of a share
of Common Stock shall be the closing price of a share of Common Stock (or the
mean of the closing bid and asked prices of a share of Common Stock if the
Common Stock is so quoted instead) as quoted on the Nasdaq National Market, the
Nasdaq SmallCap Market or such other national or regional securities exchange
or market system constituting the primary market for the Common Stock, as
reported in The Wall Street Journal or such other source as the Company  deems reliable.  If the relevant date does not fall on a day
on which the Common Stock has traded on such securities exchange or market system,
the date on which the Fair Market Value shall be established shall be the last
day on which the Common Stock was so traded prior to the relevant date, or such
other appropriate day as shall be determined by the Committee, in its
discretion.

 

ii.                                       Notwithstanding the foregoing, the Committee
may, in its discretion, determine the Fair Market Value on the basis of the
opening, closing, high, low or average sale price of a share of Common Stock or
the actual sale price of a share of Common Stock received by a Participant, on
such date or the trading day immediately preceding such date.  The Committee may vary its method of
determination of the Fair Market Value as provided herein for different
purposes under the Program.

 

iii.                                    If, on such date, the Common Stock is not
listed on a national or regional securities exchange or market system, the Fair
Market Value of a share of Common Stock shall be as determined by the Committee
in good faith and in accordance with Section 409A of the Code without
regard to any restriction other than a restriction which, by its terms, will
never lapse.

 

j.                                          “Grant Date” means the date as of which a
Restricted Stock Unit Award is credited to a Participant’s Restricted Stock
Unit Account, which shall be the date on which the Bonus with respect to which
a Voluntary Deferral applies is paid, as determined by the Committee.

 

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k.                                       “Matching Award” means an additional
Restricted Stock Unit Award granted by the Company to a Participant with
respect to a Base Award pursuant to Section 4(c).

 

l.                                          “Original Payment Date” means a date selected
by a Participant to receive distribution of the amounts credited to both the
Participant’s Cash Account and Restricted Stock Unit Account for a Program Year
in accordance with Section 4(a).  If
the Participant has not selected an Original Payment Date, the Original Payment
Date shall be deemed to be the earliest of (i) the date that is three (3) years
following the date on which the Bonus with respect to the applicable Program
Year otherwise would have been paid, (ii) the Participant’s Separation
from Service, (iii) the Participant’s death, or (iv) the Participant’s
Permanent Disability.

 

m.                                    “Participant” means any employee of the
Company designated by the Committee to be a participant in the Program.

 

n.                                      “Permanent
Disability” means the Participant (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii) is,
by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last for a continuous period
of not less than 12 months, receiving income replacement benefits for a period
of not less than 3 months under an accident and health plan covering employees
of the participant’s employer.

 

o.                                      “Program Year” means the calendar year.

 

p.                                      “Restricted Stock Unit” means a non-voting
unit of measurement based on the Fair Market Value of a share of Common Stock,
which entitles a Participant to receive payment in accordance with the terms of
the Program.

 

q.                                      “Restricted Stock Unit Account” means a
bookkeeping account maintained by the Company reflecting the Restricted Stock
Units credited to a Participant pursuant to Section 4(c).

 

r.                                         “Restricted Stock Unit Award” means an award
of Restricted Stock Units granted pursuant to Section 4(c).

 

s.                                       “Separation
from Service” means a termination of employment with the Company (including any
person considered to be a single employer with the Company under Sections 414(b) or
(c) of the Code) for any reason; provided, however,
that employment shall not be considered as terminated by reason of a military
leave, sick leave, or other bona fide leave of absence (such as temporary
employment by the government) if the period of such leave does not exceed six
months, or if longer, so long as the individual’s right to reemployment with
the Company is provided by statute or contract. 
If the period of leave exceeds six months and the individual’s right to 

 

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reemployment is not provided by either statute or contract, the
employment relationship shall be considered to terminate on the first date
immediately following such six-month period. 
Whether a termination of employment has occurred shall be determined
under all the facts and circumstances and in accordance with Section 409A
of the Code and Treasury Regulations promulgated thereunder.

 

t.                                         “Specified
Employee” means a key employee of the Company within the meaning of Section 416(i) of
the Code (without regard to paragraph (5) thereof) if the stock of the
Company is publicly traded on an established securities market or otherwise
(within the meaning of Section 409A of the Code and the Treasury
Regulations promulgated thereunder).  The
determination of Specified Employees shall be made in accordance with the
Treasury Regulations promulgated under Section 409A of the Code.

 

u.                                      “Voluntary Deferral” means the deferral of a
Participant’s Bonus based on the election of the Participant pursuant to Section 4(a).

 

3.                                       Administration

 

The
Program shall be administered by the Committee. 
The Committee shall have full authority to administer the Program,
including the discretionary authority to interpret and construe all provisions
of the Program, to resolve all questions of fact arising under the Program, and
to adopt such rules and regulations for administering the Program, as it
may deem necessary or appropriate. 
Decisions of the Committee shall be final and binding on all
parties.  The Committee may delegate
administrative responsibilities under the Program to appropriate officers or
employees of the Company.  All expenses
of the Program shall be borne by the Company.

 

4.                                       Deferral Elections and Participant Accounts

 

a.                                       Voluntary Deferral Elections

 

For
each Program Year, a Participant may elect to defer up to an aggregate of one
hundred percent (100%) of the Participant’s Bonus (in increments of twenty-five
percent (25%)) as a Voluntary Deferral under the Program.  Such Voluntary Deferral shall be made on the
basis of a Participant’s written election for each Program Year stating the
following:

 

(i)                                     the percentage of the Participant’s Bonus (in
increments of twenty-five percent (25%)) that the Participant elects to defer
in the form of cash and credited to the Participant’s Cash Account;

 

(ii)                                  the percentage of the Participant’s Bonus (in
increments of twenty-five percent (25%)) that the Participant elects to defer
in the form of Restricted Stock Units and credited to the Participant’s
Restricted Stock Unit Account; and

 

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(iii)                               an Original Payment Date; provided,
however, that (A) such Original Payment Date may not be any
earlier than three (3) years following the date on which the Bonus with
respect to the applicable Program Year otherwise would have been paid and (B) if
the Participant does not select an Original Payment Date, such amounts shall be
distributed upon the earliest of (i) the date that is three (3) years
following the date on which the Bonus with respect to the applicable Program
Year otherwise would have been paid, (ii) the Participant’s Separation
from Service, (iii) the Participant’s death, or (iv) the Participant’s
Permanent Disability.

 

Such
election shall be made in the form required by the Committee and shall be
delivered to the Company no later than December 31 of the calendar year
prior to the calendar year in which the services with respect to which the
Bonus is payable will be performed; provided, however,
that (i) any employee who is hired by the Company and becomes a
Participant after such December 31 may elect to defer his or her Bonus for
the calendar year in which the
services with respect to which the Bonus is payable by delivering an
election to the Company within thirty (30) days following the date that the
employee becomes a Participant, and (ii) in the Company’s discretion, with
respect to any Bonus (or portion thereof) that qualifies as performance-based
compensation within the meaning of Section 409A of the Code and Treasury
Regulations promulgated thereunder, the deferral election may be delivered to
the Company no later than six months before the end of the Program Year with
respect to which such Bonus (or portion thereof) is determined. 
Such election shall be
irrevocable.

 

b.                                      Cash Accounts

 

i.                                          If a Participant makes a Voluntary Deferral
and elects to defer a portion of the Participant’s Bonus in the form of cash,
the Participant’s Cash Account shall be credited with the following: (i) the
aggregate dollar amount of the Participant’s Bonus with respect to which the
Participant has elected to defer in the form of cash; and (ii) in
accordance with Section 4(b)(ii), the amount of applicable gains or losses
with respect to such amounts that are deemed to be invested in one or more of
the investment funds designated by the Participant pursuant to Section 4(b)(ii).

 

ii.                                       The Committee shall designate one or more
investment funds that shall be available for hypothetical investment of the
amounts credited to a Participant’s Cash Account and shall provide each
Participant with a list of such investment funds.  The Participant may designate, in such manner
as provided by the Committee, one or more such investment funds that his or her
Cash Account will be deemed to be invested in for purposes of determining the
amount of gains or losses to be credited to his or her Cash Account; provided, however, that if the Participant does not
designate the deemed investment of his or her Cash Account, the Participant’s
Cash Account shall be deemed to be invested in the money market investment fund
offered under the Program.  A Participant
may change the designation made under this Section 4(b)(ii) by filing
an election at the time and in the manner specified by the Company.

 

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c.                                       Restricted Stock Unit Accounts

 

If
a Participant makes a Voluntary Deferral and elects to defer a portion of the
Participant’s Bonus in the form of Restricted Stock Units, the Participant’s
Restricted Stock Unit Account shall be credited with the following: (i) as
a Base Award, the number of Restricted Stock Units (or fractions thereof)
determined by dividing (A) the aggregate dollar amount of the Participant’s
Bonus with respect to which the Participant has elected to defer in the form of
Restricted Stock Units under Section 4(a), by (B) the Fair Market
Value of the Common Stock on the date the Bonus is paid, as determined by the
Committee; and (ii) in the sole discretion of the Committee, for each Base
Award, a Matching Award equal to twenty-five percent (25%) of the number of
Restricted Stock Units subject to the Base Award.

 

d.                                      Dividend Equivalents

 

As
of any date that cash or stock dividends are paid with respect to the Common
Stock from time to time, each Restricted Stock Unit Award credited to a
Participant’s Restricted Stock Unit Account shall be credited with an additional
number of Restricted Stock Units (or fractions thereof) equal to the following:
(i) with respect to cash dividends, (A) the aggregate dollar amount
of the cash dividend that would have been paid on that Restricted Stock Unit
Award had the underlying Restricted Stock Units been actual Common Stock,
divided by (B) the Fair Market Value of the Common Stock on the dividend
payment date; and (ii) with respect to stock dividends, the aggregate
number of shares of Common Stock that would have been paid on that Restricted
Stock Unit Award had the underlying Restricted Stock Units been actual Common
Stock on the dividend payment date.

 

e.                                       Certain Adjustments

 

If
there shall occur any recapitalization, reclassification, share dividend, share
split, reverse share split, or other distribution with respect to the Common
Stock, or other change in corporate structure affecting the Common Stock, the
Participants’ Restricted Stock Unit Accounts automatically shall be appropriately
adjusted in a manner consistent with the terms of this Program.  It is intended that such adjustments shall seek
to put each Participant in the same economic position the Participant was in
prior to the change (but without duplication of any benefits that may be
provided under Section 4(d)).  Except as is expressly provided in this Section 4(e),
Participants shall have no rights as a result of any such change in the Common
Stock or other event.

 

5.                                       Vesting of Restricted Stock Unit Awards

 

For
any given Restricted Stock Unit Award, the Base Award shall be fully vested at
all times.  The Matching Award, if any,
shall be completely unvested as of the Grant Date.  Subject to Section 7, the Matching Award
shall cliff vest in full on the third anniversary of the Grant Date, provided
that the Participant remains continuously employed by the Company from the
Grant Date to such vesting date.

 

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6.                                       Distribution of Benefits

 

a.                                       Subject to Sections 6(d), 6(e) and 7, the
amounts credited to a Participant’s Cash Account and Restricted Stock Unit
Account, to the extent vested, for a Program Year shall be distributed to the
Participant in a single lump sum  on the Original
Payment Date, if any, selected by the Participant pursuant to the Participant’s
election under Section 4(a).  If the
Participant has not selected an Original Payment Date, such amounts shall be
distributed in a single lump sum upon the earliest of (i) the date that is
three (3) years following the date on which the Bonus with respect to the
applicable Program Year otherwise would have been paid, (ii) the
Participant’s Separation from Service, (iii) the Participant’s death, or (iv) the
Participant’s Permanent Disability.

 

b.                                      For purposes of distribution under the
Program, (i) the value of a Participant’s Cash Account shall equal the
amount credited to the Participant’s Cash Account, as adjusted for any gains or
losses in accordance with Section 4(b)(ii), as of the date of
distribution, and (ii) the value of a Participant’s Restricted Stock Unit
Account shall equal the Fair Market Value of any Restricted Stock Units, to the
extent vested,  credited to such
Restricted Stock Unit Account as of the date of distribution.

 

c.                                       Notwithstanding the foregoing and subject to
Sections 6(d), 6(e) and 7, a Participant may elect to further defer
the date for any payment under the Program by making a subsequent deferral
election with respect to such payment. 
The new date as of which such payment is to be made shall be the “Deferred
Payment Date.”  Any such subsequent
deferral election shall not be effective unless it is made more than twelve (12) months prior to the Original
Payment Date (or, with respect to a subsequent deferral election made after an
initial deferral election, the Deferred Payment Date).  The Deferred Payment Date for any subsequent
deferral election must be a date that is at least five (5) years following
the date the payment otherwise would have been made.  The subsequent deferral election shall be
made in writing and in the form required by the Committee.

 

d.                                      Anything in the Program to the contrary
notwithstanding, but subject to Section 6(e), in the event of a
Participant’s death, Separation from Service or Permanent Disability prior to
the date, if any, selected by the Participant pursuant to the Participant’s
election under Section 4(a), all vested amounts credited to the
Participant’s Cash Account and Restricted Stock Unit Account shall be
distributed following the date of such death, Separation from Service or
Permanent Disability.

 

e.                                       All payments of the benefits under this
Program shall be made within fifteen (15) days following the date the
Participant shall be entitled to receive a benefit hereunder.  Payment of amounts credited to a Participant’s
Cash Account shall be made in the form of cash and payment of amounts credited
to a Participant’s Restricted Stock Unit Account may be made in the form of
Common Stock or cash, at the discretion of the Committee.  Notwithstanding the foregoing, if a
Participant is a Specified Employee, any payment under the Program due to such
Participant’s Separation from Service shall not 

 

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be made until six (6) months after the date of such Separation
from Service (or, if earlier, the Participant’s date of death).

 

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7.                                       Termination of Employment

 

In
the event a Participant’s employment with the Company is terminated for any
reason (including a termination by the Company or by reason of the Participant’s
resignation, death or Permanent Disability), all unvested benefits hereunder
shall be fully and immediately forfeited by the Participant.

 

8.                                       Change in Control

 

a.                                       Anything herein to the contrary
notwithstanding, in the event of a Change in Control (as defined under the
Company’s 2005 Equity Incentive Plan), all of a Participant’s Restricted Stock
Unit Awards (including the full Matching Awards, if any,) credited to the
Participant’s Restricted Stock Unit Account shall become fully and immediately
vested.

 

b.                                      If the Change in Control (as described in Section 8(a))
also constitutes a change in control event within the meaning of Section 409A
of the Code and the Treasury Regulations promulgated thereunder, all benefits
payable under this Program shall be distributed within fifteen (15) days
following the date of such Change in Control. 
Otherwise, such benefits shall be distributed in accordance with Section 6.

 

9.                                       Beneficiaries

 

Any
payment required to be made to a Participant hereunder that cannot be made to
the Participant because of his or her death shall be made to the Participant’s
beneficiary or beneficiaries, subject to applicable law.  Each Participant shall have the right to
designate in writing from time to time a beneficiary or beneficiaries by filing
a written notice of such designation with the Committee.  In the event a beneficiary designated by the
Participant does not survive the Participant and no successor beneficiary is
selected, or in the event no valid designation has been made, such Participant’s
beneficiary shall be such Participant’s estate.

 

10.                                 Unfunded Status

 

The
Program shall be unfunded, and all benefits payable to Participants under the
Program represent merely unfunded, unsecured promises of the Company to provide
a benefit to Participants in the future. 
To the extent that any person acquires a right to receive payments from
the Company under the Program, such right shall be no greater than the right of
any unsecured general creditor of the Company.

 

11.                                 Transfers Prohibited

 

No
transfer (other than pursuant to Section 9) by a Participant of any right
to any payment hereunder, whether voluntary or involuntary, by operation of law
or otherwise, and whether by means of alienation by anticipation, sale,
transfer, assignment, 

 

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bankruptcy,
pledge, attachment, charge, or encumbrance of any kind, shall vest the
transferee with any interest or right, and any attempt to so alienate, sell,
transfer, assign, pledge, attach, charge, or otherwise encumber any such
amount, whether presently or thereafter payable, shall be void and of no force
or effect.

 

12.                                 Limitation of Rights

 

Nothing
contained in the Program shall confer upon any Participant any right (i) as
a shareholder of the Company or (ii) with respect to the continuation of
the Participant’s status as an employee of the Company.

 

13.                                 Termination and Amendment

 

The
Program may be terminated at any time by the Committee and the Program may be
amended by the Committee from time to time in any respect; provided,
however, that no such termination or amendment may reduce the value
of amounts theretofore credited or creditable to a Participant’s Cash Account
or Restricted Stock Unit Account without the affected Participant’s prior
written consent.

 

14.                                 Withholding Taxes

 

Where
a Participant or other person is entitled to receive a payment pursuant to the
Program, the Company shall withhold, or make suitable arrangements with the
Participant for the payment of, the amount of any taxes that the Company may be
required to withhold before delivery to such Participant or other person of
such payment.

 

15.                                 Choice of Law

 

The
Program and all rights hereunder shall be subject to and interpreted in
accordance with the laws of the State of New Jersey, without reference to the
principles of conflicts of laws, and to applicable federal securities laws.

 

10

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