Document:

Prudential Financial, Inc. Executive Change of Control Severance Program

 Exhibit 10.4 
  
 PRUDENTIAL FINANCIAL, INC. 
 EXECUTIVE CHANGE OF
CONTROL SEVERANCE PROGRAM 
  
 ARTICLE I 
 PURPOSE AND OBJECTIVES 
  
 WHEREAS, Prudential Financial, Inc. (the “Company”) believes that, in the event it is confronted with a situation that could result in a change
in ownership or control of the Company, continuity of management will be essential to its ability to evaluate and respond to such a situation in the best interests of shareholders; 
  
 WHEREAS, the Company also understands that any such situation will present significant concerns for certain key management
personnel at the Company and designated senior officers of its subsidiaries or other affiliates with respect to financial and job security; 
  
 WHEREAS, the Company wants to be proactive in assuring itself and its subsidiaries and affiliates of the services of these critical individuals during the
period in which it is confronting such a situation, and in providing such individuals with certain financial assurances to enable them to (i) perform their responsibilities without undue distraction and (ii) exercise their judgment without bias due
to their personal circumstances; 
  
 WHEREAS, the Company wishes
to provide these financial assurances in a uniform and equitable manner without engaging in negotiations with individual executives. 
  
 NOW, THEREFORE, this Prudential Financial, Inc. Executive Change of Control Severance Program (the “Program”) has been established to provide
such assurances for those senior officers of the Company or designated senior officers of its subsidiaries or affiliates 
  
 ARTICLE II 
 DEFINITIONS

  
 Accrued Obligations. “Accrued
Obligations” has the meaning set forth in Section 3.3(a)(iv). 

 Annual Compensation. “Annual Compensation” shall mean the sum of (i) a
Participant’s annual Base Pay, and (ii) the higher of (A) the Participant’s actual annual incentive compensation payment(s) with respect to services performed in the calendar year prior to the Participant’s Year of Termination, or (B)
the average of the annual incentive compensation payments to the Participant for the three most recent calendar years (or, if less, the number of calendar years during which the Participant was employed by the Company or any Prudential Affiliate)
prior to the Participant’s Year of Termination; provided, however, that in the case of a Participant whose annual compensation for services consists in any material fashion of commissions and/or other forms of compensation other than Base Pay
and annual incentive pay, the Program Committee shall determine the amount of such Participant’s Annual Compensation. 
  
 Base Pay. “Base Pay” means Base Pay as defined in Section 2704(b) of the Prudential Retirement Plan, as of the Participant’s Date of
Termination. 
  
 Board. “Board” shall mean the
Board of Directors of the Company. 
  
 Cause.
“Cause” means (i) an act or acts of dishonesty, fraud or gross misconduct on a Participant’s part which result or are intended to result in material damage to the Company’s business or reputation; (ii) the
Participant’s having been convicted of, or entered a plea of nolo contendere to, a crime that constitutes a felony; (iii) the breach by the Participant of any written covenant or agreement with the Company or any Subsidiary
not to disclose or misuse any information pertaining to, or misuse any property of, the Company or any Subsidiary or not to compete or interfere with the Company or any Subsidiary or (iv) the violation by the Participant of any material policy or
rule of the Company or any Subsidiary. 
  
 Change of
Control. A “Change of Control” shall be deemed to have occurred if any of the following events shall occur: 
  
 (i) any Person (as defined below) acquires “beneficial ownership” (within the meaning of Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 25% or more of the combined Voting Power (as defined below) of the Company’s securities; or 
  
 (ii) within any 24-month period commencing prior to the consummation of a plan of reorganization under which
Prudential ceases to be a mutual life insurance company, the persons who, at the beginning of such period, were the members of the board of directors of Prudential 
  

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 (the “Incumbent Prudential Directors”) shall cease to constitute at least a majority of the
board of directors of Prudential or the board of directors of any successor to Prudential; provided, however, that any director elected to the board of directors of Prudential, or nominated for election to such board, by a majority of the Incumbent
Prudential Directors then still in office shall be deemed to be an Incumbent Prudential Director for purposes of this subclause (ii); or 
  
 (iii) within any 24-month period, if any, commencing on or after the consummation of a plan of reorganization under which Prudential
ceases to be a mutual life insurance company, the members of the Board (the “Incumbent Company Directors”) shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided,
however, that any director elected to the Board, or nominated for election to the Board, by a majority of the Incumbent Company Directors then still in office shall be deemed to be an Incumbent Company Director for purposes of this subclause (iii);
or 
  
 (iv) upon the consummation of a merger,
consolidation, share exchange, division, sale or other disposition of all or substantially all of the assets of the Company (a “Company Corporate Event”), immediately following the consummation of which the stockholders of the Company,
immediately prior to such Company Corporate Event do not hold, directly or indirectly, a majority of the Voting Power of 
  
 (x)    in the case of a merger or consolidation, the surviving or resulting corporation, 
  
 (y)    in the case of a share exchange, the acquiring
corporation or 
  

	 	(z)	 	in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant Company Corporate
Event, holds more than 25% of the consolidated assets of the Company immediately prior to such Company Corporate Event, provided that no Change of Control shall be deemed to have occurred with respect to any Participant who is employed, immediately
following such Company Corporate Event, by any entity in which the policyholders or stockholders of the Company, as the case may be, immediately prior to such Company Corporate Event hold, directly or indirectly, a majority of the Voting Power; or

  

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 (v) upon the consummation of a merger, consolidation, share exchange, division, sale or other disposition
of all or substantially all of the assets of Prudential (a “Prudential Corporate Event”), and immediately following the consummation of which the stockholders or policyholders of Prudential immediately prior to such Prudential Corporate
Event do not hold, directly or indirectly, a majority of the Voting Power of 
  

	 	(x)	 	in the case of a merger or consolidation, the surviving or resulting corporation, 

  

	 	(y)	 	in the case of a share exchange, the acquiring corporation or 

  

	 	(z)	 	in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant Prudential Corporate
Event, holds more than 25% of the consolidated assets of Prudential immediately prior to such Prudential Corporate Event, provided that no Change of Control shall be deemed to have occurred with respect to any Participant who is employed,
immediately following such Prudential Corporate Event, by any entity in which the policyholders or stockholders of Prudential, as the case may be, immediately prior to such Prudential Corporate Event hold, directly or indirectly, a majority of the
Voting Power; or 

  

	 	(vi)	 	any other event occurs which the Board declares to be a Change of Control. 

  
 Notwithstanding the foregoing, a Change of Control shall not be deemed to have occurred merely as a result of (i) the conversion of Prudential from a mutual life
insurance company to a stock company a majority of whose shareholders immediately following such conversion are either (x) persons who were policyholders of Prudential immediately prior to such transaction or (y) the Company or another corporation
the shares of which are held primarily by the persons described in subclause (x); (ii) Prudential becoming a direct or indirect subsidiary of the Company whose shareholders are primarily persons who were policyholders of Prudential immediately prior
to such transaction or (iii) an underwritten offering of the equity securities of the Company or any other Parent where no Person (including any group (within the meaning of Rule 13d-5(b) under the Exchange Act)) acquires more than 25% of the
beneficial ownership interests in such securities. 
  
 Code. “Code” means the Internal Revenue Code of 1986, as amended. 
  

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 Company. “Company” means Prudential Financial, Inc., a New Jersey corporation.

  
 Company Corporate Event. “Company Corporate
Event” shall have the meaning ascribed thereto in the definition of Change of Control. 
  
 Company Stock Option Plan. “Company Stock Option Plan” means the Prudential Financial, Inc. Stock Option Plan. 
  

Date of Termination. “Date of Termination” means the date of receipt of a Notice of Termination or, if later, the date of termination
of a Participant’s employment specified therein. 
  
 Employee. “Employee” means any individual who is compensated by the Company, Prudential or a Prudential Affiliate for services actually rendered as a regular full-time or regular part-time (but not a temporary) common law
employee and who, at the time of the designation by the Program Committee as a Participant, has attained the level/title of a Vice President at level 80 or its equivalent (formerly known as a Departmental Vice President) or above. 
  
 ERISA. “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended. 
  
 Exchange Act. “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 End Date. “End Date” means (i) with respect to a Tier III Participant, the third anniversary of the Date of Termination; (ii) with respect to Tier II Participants, the second anniversary of the Date of Termination, and
(iii) with respect to Tier I Participants, the 18-month anniversary of the Date of Termination. 
  
 Enhanced Severance Amount. “Enhanced Severance Amount” has the meaning set forth in Section 3.3(a)(v). 
  
 Good Reason. “Good Reason” means the occurrence of any of
the following, without the express written consent of the Participant, after the occurrence of a Change of Control: 
  
 (i) the assignment to the Participant of any duties inconsistent in any material adverse respect with the Participant’s position,
authority or responsibilities as in effect immediately prior to a Change of Control, or 
  

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 any other material adverse change in such position, including titles, authority or responsibilities;

  
 (ii) any failure by the Company to continue
to provide the Participant with Base Pay, annual and long-term incentive compensation opportunities and other material benefits (including, but not limited to, savings plans, defined benefit plans, welfare benefit plans and perquisites) in each case
at a level which is at least equal to that in effect immediately prior to a Change of Control, but shall not include any reduction in Base Pay, annual or long-term incentive compensation opportunities that are part of an across-the-board reduction
of the base salaries or incentive compensation of employees who are similarly situated with respect to the Participant; 
  
 (i) the Company’s requiring a Participant to be based at any office or location more than 49 miles from that location at which he
performed his services immediately prior to the Change of Control, except for travel reasonably required in the performance of a Participant’s responsibilities; or 
  
 (vii) any failure by the Company or Prudential to obtain the commitment of any successor in interest or
failure on the part of such successor in interest to perform (A) the obligations to the Participant under this Program or (B) any employee-related obligations assumed by the successor in interest in connection with its acquisition of the Company or
Prudential. 
  
 The occurrence of the events or conditions in clauses (i)-(iv)
shall not constitute Good Reason unless (x) the Participant provides written notice of the action(s) or omission(s) deemed to constitute Good Reason in accordance with the provisions hereof and (y) the Company or, if applicable, a Prudential
Affiliate fails to remedy such action(s) or omission(s) within 30 days after the receipt of such written notice. In no event shall the mere occurrence of a Change of Control, absent any further impact on a Participant, be deemed to constitute Good
Reason. 
  
 Group Welfare Benefit Plans. “Group
Welfare Benefit Plans” has the meaning set forth in Section 3.3(b). 
  
 Indemnification Documents. The “Indemnification Documents” shall mean the indemnification provisions of the Articles of Incorporation and By-Laws of the Company and/or such Prudential Affiliate to
which the Participant provided services, as in effect immediately prior to the Change of Control or, if more 
  

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 favorable to the Participant, immediately prior to any Potential Change of Control related to such Change of Control.

  
 Long-Term Incentives. “Long-Term Incentives”
shall have the meaning set forth in Section 3.3(a)(iii). 
  
 Noncompetition and Nonsolicitation Agreement. The “Noncompetition and Nonsolicitation Agreement” shall have the meaning set forth in Section 3.3(a)(v) and Exhibit A. 
  
 Notice of Termination. Any termination by the Company (and/or, where
applicable, a Prudential Affiliate), whether with or without Cause, or by the Participant for Good Reason shall be communicated by Notice of Termination to the Participant or the Company (or the applicable Prudential Affiliate), as the case may be,
(except that such notice may be waived by the party intended to receive such notice). A “Notice of Termination” means a written notice given, in the case of a termination for Cause, within 10 business days of the Company’s (or the
applicable Prudential Affiliate’s) having actual knowledge of the events giving rise to such termination, and in the case of a termination for Good Reason, within 30 days of the Participant’s having actual knowledge of the events giving
rise to such termination, and which (i) sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Participant’s employment, and (ii) if the termination date is other than the date of receipt
of such notice, specifies the Date of Termination (which date, in the case of any termination for other than Good Reason, shall be not more than 15 days after the giving of such notice). Notwithstanding any other provision hereunder, in the case of
a termination for Good Reason, the Date of Termination shall be 30 days after the Notice of Termination, provided that a Participant may not terminate his or her employment for Good Reason if the Company (or the applicable Prudential Affiliate)
cures the cause for such termination within 30 days of receiving the Notice of Termination. The failure by the Participant to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Good Reason shall not
waive any right of the Participant hereunder or preclude the Participant from asserting such fact or circumstance in enforcing his rights hereunder. A Notice of Termination shall be given in writing and delivered by first class mail, return receipt
requested (or other form of delivery which requires signature for delivery), addressed to the Company’s headquarters, if the notice is to the Company (or the applicable Prudential Affiliate), or to the address of the Participant on the
Company’s (or the applicable Prudential Affiliate’s) records, if addressed to the Participant. 
  
  

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 Parent. “Parent” means any corporation, partnership, limited liability company, business
trust or other entity which owns, directly or indirectly, more than 50% of the Voting Power in the Company or Prudential. 
  
 Parent Subsidiary. “Parent Subsidiary” means any corporation, partnership, limited liability company, business trust or other entity
(other than the Company or any Subsidiary) in which any Parent owns, directly or indirectly, more than 50% of the Voting Power in such entity. 
  
 Participant. “Participant” means any Employee who (x) at or after the date of a Potential Change of Control, is employed by the Company
or any Prudential Affiliate and (y) has either (I) been designated in writing by the Program Committee, in its discretion, as eligible to participate in the Program as a Tier I Participant, or (II) been designated in writing by the Program Committee
(or its delegee, the Chief Executive Officer of the Company), in its discretion, as eligible to participate in the Program as a Tier II or Tier III Participant. 
  

Person. A “Person” means any person (within the meaning of Section 3(a)(9) of the Exchange Act, including any group (within the
meaning of Rule 13d-5(b) under the Exchange Act)), but excluding any of the Company, any Prudential Affiliate or any employee benefit plan sponsored or maintained by the Company or any Prudential Affiliate. 
  
 Potential Change of Control. A “Potential Change of Control”
shall be deemed to have occurred if any of the following events shall have occurred: 
  
 (i) a Person commences a tender offer (with adequate financing) for securities representing at least 10% of the Voting Power of the
Company’s securities; 
  
 (i) the Company or
Prudential enters into an agreement the consummation of which would constitute a Change of Control; 
  
 (viii) at a time at which the Company is subject to the proxy disclosure rules of Section 14 of the Exchange Act, proxies for the election
of directors of the Company or Prudential are solicited by anyone other than Prudential or the Company; or 
  
 (ix) any other event occurs which is deemed to be a Potential Change of Control by the Board. 
  
 Program. “Program” means the Prudential Financial, Inc.
Executive Change of Control Severance Program. 
  

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 Program Committee. The “Program Committee” means a committee comprised of the persons
who, prior to or at the time of a Potential Change of Control or an actual Change of Control, are serving as the members of the Compensation Committee of the Company’s Board. Following the occurrence of a Potential Change of Control or Change
of Control, the Company shall not have the right to change the individuals who serve on the committee acting as the Program Committee. Any vacancies on such Committee following the occurrence of a Change of Control shall be filled, if at all, by a
vote of at least 75% of the individuals then still serving as members of the Program Committee. 
  
 Pro-Rated Annual Incentives. “Pro-Rated Annual Incentives” shall have the meaning set forth in Section 3.3(a)(ii). 
  
 Prudential. “Prudential” means The Prudential Insurance
Company of America, a New Jersey insurance company, or any successor. 
  
 Prudential Affiliate. A “Prudential Affiliate” means any Parent, Subsidiary or Parent Subsidiary. 
  
 Prudential Deferred Compensation Plans. “Prudential Deferred Compensation Plans” mean (a) the Prudential Consolidated Deferred
Compensation Plan, (b) the Prudential Deferred Compensation Plan, and (c) any other deferred compensation plan sponsored by the Company or any Prudential Affiliate that is unfunded and is maintained primarily for the purpose of providing deferred
compensation for a select group of management or highly compensated employees. 
  
 Prudential Corporate Event. “Prudential Corporate Event” shall have the meaning ascribed thereto in the definition of Change of Control. 
  
 Prudential Retirement Plan. “Prudential Retirement Plan” means The Prudential Retirement Plan Document, a
component of The Prudential Merged Retirement Plan, as amended, (and, if appropriate for a particular Participant, the Prudential Securities Incorporated Cash Balance Pension Plan Document, a component of The Prudential Merged Retirement Plan).

  
 Prudential Supplemental Retirement Plan. For purposes
of this Program, the term “Prudential Supplemental Retirement Plan” includes (a) The Prudential Supplemental Retirement Plan (the nonqualified retirement plan sponsored by Prudential that is intended to provide benefits to eligible
participants in excess of the benefits that might be provided to participants of the Prudential Retirement Plan due to the limitations of Section 401(a) of the Code), and (b) The Prudential Executive Supplemental Retirement Plan (the nonqualified
retirement plan 
  

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 sponsored by Prudential that is intended to provide eligible participants with supplemental retirement benefits in
accordance with the requirements of New Jersey Statute Section 17B:18-52). 
  
 Separation Agreement and General Release. “Separation Agreement and General Release” means a written document that includes, but is not limited to, a release of rights and claims from a Participant in
a form that is satisfactory to, and approved by, the Program Committee. 
  
 Severance Amount. “Severance Amount” has the meaning set forth in Section 3.3(a)(v). 
  
 Subsidiary. “Subsidiary” means any corporation, partnership, limited liability company, business trust or other entity in which the
Company owns, directly or indirectly, more than 50% of the Voting Power in such entity. 
  
 Voting Power. A specified percentage of “Voting Power” of a company means such number of the Voting Securities as shall enable the holders thereof to cast such percentage of all the votes which could
be cast in an annual election of directors. 
  
 Voting
Securities. “Voting Securities” means all securities of a company entitling the holders thereof to vote in an annual election of directors. 
  
 Year of Termination. “Year of Termination” means the calendar year during which the Participant’s employment with the Company or any
Prudential Affiliate is terminated. 
  
  
 ARTICLE III 
 BENEFITS PAYABLE 
  
 3.1 Death; Disability or Retirement. If a Participant’s
employment with the Company, Prudential and/or any Prudential Affiliate is terminated by reason of the Participant’s death, voluntary retirement or termination of employment as a result of the Participant’s inability to perform the basic
requirements of his or her position due to physical or mental incapacity and after the Participant’s short-term disability benefits have expired under the terms of The Prudential Welfare Benefits Plan, no benefits will be payable under this
Program. 
  
 3.2 Cause and Voluntary Termination. If a
Participant’s employment with the Company, Prudential and/or any Prudential Affiliate is terminated for Cause or is voluntarily terminated by the Participant (other than on account of Good Reason), no benefits will be payable under this
Program. 
  

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 3.3 Termination by the Company other than for Cause. If, during the two-year period following a
Change of Control, a Participant’s employment is terminated by the Company, Prudential and/or any Prudential Affiliate other than for Cause, the Company shall provide (or the Company or Prudential shall cause a Prudential Affiliate to provide)
the Participant with the following compensation and benefits: 
  
 (a) Severance and Other Termination Payments. The Participant shall be entitled to receive the following upon the execution of a Separation Agreement and General Release (and the expiration of any applicable
revocation period): 
  
 (i) the
Participant’s full Base Pay through the Date of Termination; 
  
 (ii) an amount (the “Pro-Rated Annual Incentive”) equal to the target annual incentive compensation opportunity applicable to the Participant for the fiscal year in which the Date of Termination occurs (or,
if there is no target opportunity stated for such year, an amount equal to the average of the annual incentive compensation payments made to the Participant for the three calendar years (or, if less, the number of calendar years during which the
Participant was employed by the Company or any Prudential Affiliate) ended immediately prior to the Participant’s Year of Termination), multiplied by a fraction, the numerator of which is the number of completed months in such fiscal year which
have elapsed on or before (and including) the Date of Termination and the denominator of which is 12; 
  
 (iii) an aggregate amount (the “Long Term Incentives”) equal to the sum of the target long-term incentive opportunities
(excluding stock options) applicable to the Participant in respect of each performance cycle then in progress (i.e., each performance cycle which includes as part of the performance period the Year of Termination) or, if there is no target long-term
incentive opportunity stated for any such performance period, an amount equal to the average of the long-term incentive compensation payments made to the Participant in respect of the same or a predecessor plan or program for the performance periods
ended in any of three calendar years (or, if the Participant received incentive compensation payments in less than three prior calendar years, the number of calendar years in which the Participant received such payments) ended immediately prior to
the Participant’s Date of Termination, in each case determined as though 100% of any applicable performance objectives had been achieved; 
  

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 (iv) any vested amounts or benefits owing to the Participant under any otherwise
applicable employee benefit plans and programs, both qualified and nonqualified, and not yet paid and any accrued vacation pay not yet paid by the Company (the “Accrued Obligations”); 
  
 (v) a severance payment (the “Severance Amount”)
equal to: 
  
 Tier I Participants: 2.0
times Annual Compensation; 
  
 Tier II
Participants: 1.25 times Annual Compensation; 
  
 Tier III Participants: 1.0 times Annual Compensation; 
  
 provided that the Severance Amount shall be increased (the “Enhanced Severance Amount”) to the greater applicable amount reflected in the following table if, within 10 business days of his Date of Termination, a Participant
executes the Noncompetition and Nonsolicitation Agreement attached hereto as Exhibit A: 
  
 Tier I Participants: 3.0 times Annual Compensation; 
  
 Tier II Participants: 2.0 times Annual Compensation; 
  
 Tier III Participants: 1.5 times Annual Compensation.

  
 The Base Pay and Severance Amount or Enhanced Severance Amount
shall be paid in cash in a single lump sum as soon as practicable, but in no event more than 30 days (or at such earlier date required by law) following the later of (a) the Date of Termination or (b) the expiration of any revocation period after
Participant’s execution of a Separation Agreement and General Release. The Pro-Rated Annual Incentive and Pro-Rated Long Term Incentives shall each be paid in cash as soon as practicable after the amount of each such payment (or any portion
thereof) can be determined. Accrued Obligations shall be paid in accordance with the terms of the applicable plan, program or arrangement. 
  
 (b) Continuation of Benefits. After the Date of Termination, the Participant (and, to the extent applicable, his or her dependents) shall be
entitled to continue participation in all of the group health and group life employee benefit plans of the Company or any Prudential Affiliate in which he or she participated (the “Group Welfare Benefit Plans”) during the
Participant’s (or if applicable, his or her dependents’) applicable coverage period under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, to the degree such participation 
  

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 is permitted under the terms of the applicable plan, program or policy and in accordance with the requirements of the
Code, ERISA or otherwise applicable law. To the extent any such benefits cannot be provided under the terms of the applicable plan, policy or program and in accordance with the requirements of the Code, ERISA or otherwise applicable law, the Company
or the appropriate Prudential Affiliate shall provide a comparable benefit under another plan or from such entity’s general assets. The Participant’s participation in the Group Welfare Benefit Plans will be on the same terms and conditions
(including, without limitation, any condition that the Participant make contributions toward the cost of such coverage on the same terms and conditions generally applicable to similarly situated employees) that would have applied had the Participant
continued to be employed by the Company or a Prudential Affiliate through the End Date. Notwithstanding the foregoing sentence, the Company or the appropriate Prudential Affiliate shall be required to pay the excess of the cost of the medical
coverage and life insurance provided to the Participant (and to the extent applicable, the Participant’s dependents) hereunder over the cost that the Participant (or his dependents) would have paid for such coverage if the Participant had
remained employed. If any of the benefits provided hereunder to the Participant and/or his dependents are treated as taxable to the recipient under federal, state or local tax laws and would not have been so taxable if the Participant were then
still an employee, the Participant shall be paid a cash amount equal to such taxes plus an additional amount equal to any taxes applicable to any such additional payments made hereunder, such that the net effect to the recipient is the same as would
have resulted had the amounts paid or benefits provided been non-taxable. 
  
 (c) Stock Options. Any grant of stock options held by the Participant at the Date of Termination with respect to the Company under the Company Stock Option Plan shall be, by their terms, immediately exercisable
as of such date and shall remain exercisable until the first anniversary of such date. 
  
 (d) Enhanced Retirement Benefits. The Participant shall also receive a cash lump sum payment, as additional severance, equal to the excess of: 
  
 (i) the hypothetical present value of the defined benefit retirement benefits that would have been accrued
by the Participant under the Prudential Retirement Plan, the Prudential Supplemental Retirement Plan, and any additional defined benefit retirement plan(s) sponsored or maintained by the Company or a Prudential Affiliate in which the Participant is
a participant, taking into account the following service, age and compensation factors: 
  

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 (A)  Service: The hypothetical benefit to be calculated will include the
following additional amount of deemed service for the Participant: 
  
 I) three additional years of service, in the case of a Tier I Participant who receives an Enhanced Severance Amount, 
  
 II) two additional years of service, in the case of a Tier I Participant who does not receive an Enhanced Severance Amount or a Tier II
Participant who receives an Enhanced Severance Amount, 
  
 III) one and one half additional years of service, in the case of a Tier III Participant who receives an Enhanced Severance Amount, 
  
 IV) one and one quarter additional years of service, in the case of a Tier II Participant who does not receive an Enhanced Severance
Amount, or 
  
 V) one additional year of service,
in the case of a Tier III Participant who does not receive an Enhanced Severance Amount; and 
  

	

 (B)  Age: The Participant had attained the age he or she
would have attained had he remained employed through the period of additional service credited to the Participant under subclause (A)(I). 
  
 (C)  Compensation: Where compensation is a relevant factor, the Participant’s Severance Amount shall be deemed to
have been paid ratably over the period of additional service credited above and treated as “compensation” taken into account for purposes of determining the accrued retirement benefits, over 
  
 (ii)  the actual present value of the defined
benefit retirement benefits actually accrued by such Participant under the Prudential Retirement Plan, the Prudential Supplemental Retirement Plan, and any additional defined benefit retirement plan(s) sponsored or maintained by 
  

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 the Company or a Prudential Affiliate in which the Participant is a participant as of
the Date of Termination. 
  
 The determination of the present
value of a Participant’s retirement benefits under this provision shall be made by the actuary serving, immediately prior to the Change of Control, as the actuary of the Prudential Retirement Plan, using the actuarial assumptions in use under
such plan immediately prior to the Change of Control. 
  
 (e)  Nonqualified Deferred Compensation Plans. In accordance with the provisions of the Prudential Deferred Compensation Plans, the Participant is at all times fully vested in his or her accrued benefit under such Plans,
and payments from such Plans to the Participant shall be made either at the earlier of either (i) as set forth in accordance with such Plans’ terms or (ii) as of the Participant’s termination following a Change of Control. 
  
 (f)  Indemnification. The Company and each
Prudential Affiliate for whom the Participant performed services as a director, officer or employee shall indemnify the Participant, to the maximum extent permitted under the Indemnification Documents. 
  
 3.4  Termination by the Participant for Good
Reason. If, after a Change of Control and prior to the second anniversary of such Change of Control, the Participant terminates his employment for Good Reason, the Company or the appropriate Prudential Affiliate shall provide to the Participant
the same amounts and benefits as would be payable to the Participant if such termination were a termination by the Company or such Prudential Affiliate without Cause. 
  
 3.5  Termination of Employment by the Company Following a Potential Change of Control. If
the Company and each Prudential Affiliate terminates a Participant’s employment other than for Cause after the occurrence of a Potential Change of Control, and within two years after such Potential Change of Control a Change of Control actually
occurs, such Participant shall be treated, solely for purposes of this Program, to have continued in employment until the occurrence of the Change of Control and to have been terminated thereafter by the Company and such Prudential Affiliate,
without Cause, in which case he or she shall be entitled to the benefits described in Section 3(c) above, reduced by the amount of any other severance benefits previously provided to him in connection with such termination (other than any such
benefits payable pursuant to the terms of a plan which is intended to meet the requirements of Section 401(a) of the Code). 
  

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 3.6 Discharge of the
Company’s Obligations. Except as expressly provided herein, the amounts payable to a Participant pursuant to this Program (whether or not reduced as provided below) shall be conditioned upon the Participant’s executing an Separation
Agreement and General Release, in substantially the form attached hereto as Exhibit B, in favor of the Company and each Prudential Affiliate and certain other parties designated therein of any claims the Participant may have in respect of his
employment by any of the Company or any Prudential Affiliate. Any payment under this Program shall be null and void upon a Participant’s failure to sign, or subsequent revocation of, such Separation Agreement and General Release. Any breach by
a Participant of an Separation Agreement and General Release upon which any payment under this Program has been conditioned shall give the Company the right to terminate any payment otherwise due and/or to the return of such amounts payable under
this Program, in addition to any other remedy the Company may have. Notwithstanding the foregoing, nothing in this Program shall be construed to 
  
 (a) affect, limit or modify in any way or release any claim the Participant may have with respect to any amounts payable pursuant to this
Program or any vested amounts or benefits owing to the Participant under any otherwise applicable employee benefit plans and programs maintained or contributed by any of the Company or any Prudential Affiliate (except that this Program will
supersede any otherwise applicable severance policy), including any compensation previously deferred by the Participant (together with any accrued earnings thereon) and not yet paid and any accrued vacation pay not yet paid, or 
  
 (b) release the Company or any Prudential Affiliate from its
commitment to indemnify the Participant and hold the Participant harmless from and against any claim, loss or cause of action arising from or out of the Participant’s performance as an officer, director or employee of the Company or any such
Prudential Affiliate or in any other capacity, including any fiduciary capacity, in which the Participant served at the request of the Company or any Prudential Affiliate to the maximum extent permitted by the Indemnification Documents. 

 
 Except as otherwise expressly provided herein, the obligation of the Company or any
Prudential Affiliate to make the payments provided for in this Program shall not be affected by any circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or other right which the Company or any such Prudential
Affiliate may have against the Participant or others whether by reason of the subsequent employment of a Participant or otherwise. 
  

 16 

 ARTICLE IV 
 LIMIT ON PAYMENTS BY THE COMPANY. 
  
 4.1 Application of this Article IV. In the event that any amount or benefit paid or distributed to the Participant pursuant to this Program, taken together with any amounts or benefits otherwise paid or
distributed to the Participant by the Company or any Prudential Affiliate (the “Covered Payments”), would be an “excess parachute payment” as defined in Section 280G of the Code and would thereby subject the Participant to the
tax (the “Excise Tax”) imposed under Section 4999 of the Code (or any similar tax that may hereafter be imposed), the provisions of this Article IV shall apply to determine the amounts payable to the Participant pursuant to this Program.

  
 4.2 Calculation of Benefits. Immediately following
delivery of any Notice of Termination, the Company shall notify the Participant of the aggregate present value of all termination benefits to which the Participant would be entitled under this Program and any other plan, program or arrangement as of
the projected Date of Termination, together with the projected maximum payments, determined as of such projected Date of Termination that could be paid without the Participant being subject to the Excise Tax. 
  
 4.3 Imposition of Payment Cap. If (a) the aggregate value of
all compensation payments or benefits to be paid or provided to the Participant under this Program and any other plan, agreement or arrangement with the Company or a Prudential Affiliate exceeds the amount which can be paid to the Participant
without the Participant incurring an Excise Tax and (b) the Participant would receive a greater net after-tax amount (taking into account all applicable taxes payable by the Participant, including any Excise Tax) by applying the limitation
contained in this Section 4.3, then the amounts payable to the Participant under this Program shall be reduced (but not below zero) to the maximum amount which may be paid hereunder without the Participant becoming subject to such an Excise Tax
(such reduced payments to be referred to as the “Payment Cap”). In the event that Participant receives reduced payments and benefits hereunder, the Participant shall have the right to designate which of the payments and benefits otherwise
provided for in this Agreement that he will receive in connection with the application of the Payment Cap. 
  
 4.4 Application of Section 280G. For purposes of determining whether any of the Covered Payments will be subject to the Excise Tax and the amount
of such Excise Tax, 
  
 (a) such Covered Payments
will be treated as “parachute payments” within the meaning of Section 280G of the Code, and all “parachute payments” in excess of the “base amount” (as defined under Section 280G(b)(3) of the Code) 
  

 17 

 shall be treated as subject to the Excise Tax, unless, and except to the extent that, in the good faith
judgment of the Company’s independent certified public accountants or tax counsel selected by such accountants (the “Accountants”), relying on the best authority available at the time of such determination (including, but not limited
to, any proposed Treasury regulations upon which taxpayers may rely), that the Company or any otherwise applicable Prudential Affiliate has a reasonable basis to conclude that such Covered Payments (in whole or in part) either do not constitute
“parachute payments” or represent reasonable compensation for personal services actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code) in excess of the “base amount,” or such “parachute payments”
are otherwise not subject to such Excise Tax, 
  
 (b) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Accountants in accordance with the principles of Section 280G of the Code, and 
  
 (c) in the case of a Participant who receives an Enhanced
Severance Amount, the excess of the Enhanced Severance Amount payable to the Participant over the Severance Amount that would have been payable to such Participant if he did not qualify for such Enhanced Severance Amount shall be treated as
reasonable compensation for refraining from performing services after the Change of Control and Participant’s Date of Termination, and shall therefore not be treated as a “parachute payment” for purposes of Section 280G of the Code.

  
 4.5 Applicable Tax Rates. For purposes of determining
whether the Participant would receive a greater net after-tax benefit were the amounts payable under this Program reduced in accordance with Section 4.3, the Participant shall be deemed to pay: 
  
 (a) Federal income taxes at the highest applicable marginal
rate of Federal income taxation under the Code for the calendar year in which the first amounts are to be paid hereunder, and 
  
 (b) any applicable state and local income taxes at the highest applicable marginal rate of taxation for such calendar year, net of the
maximum reduction in Federal incomes taxes which could be obtained from the deduction of such state or local taxes if paid in such year; 
  
 provided, however, that the Participant may request that such determination be made based on his individual tax circumstances, which shall govern such determination so
long as the Participant provides to the Accountants such information and documents as the Accountants shall reasonably request to determine such individual circumstances. 
  

 18 

 4.6 Adjustments in Respect of the Payment Cap. If the Participant receives reduced payments and
benefits under this Article IV (or this Article IV is determined not to be applicable to the Participant because the Accountants conclude that the Participant is not subject to any Excise Tax) and it is established pursuant to a final determination
of a court or an Internal Revenue Service proceeding (a “Final Determination”) that, notwithstanding the good faith of the parties in applying the terms of this Program, the aggregate “parachute payments” within the meaning of
Section 280G of the Code paid to the Participant or for his benefit are in an amount that would result in the Participant being subject an Excise Tax and the Participant would still be subject to the Payment Cap under the provisions of Section 4.3,
then the amount equal to such excess parachute payments shall be deemed for all purposes to be a loan to the Participant made on the date of receipt of such excess payments, which the Participant shall have an obligation to repay to the entity
making such payment on demand, together with interest on such amount at the applicable Federal rate (as defined in Section 1274(d) of the Code) from the date of the payment hereunder to the date of repayment by the Participant. If this Article IV is
not applied to reduce the Participant’s entitlements under this Program because the Accountants determine that the Participant would not receive a greater net after-tax benefit by applying this Section 4 and it is established pursuant to a
Final Determination that, notwithstanding the good faith of the parties in applying the terms of this Agreement, the Participant would have received a greater net after-tax benefit by subjecting his payments and benefits hereunder to the Payment
Cap, then the aggregate “parachute payments” paid to the Participant or for his benefit in excess of the Payment Cap shall be deemed for all purposes a loan to the Participant made on the date of receipt of such excess payments, which the
Participant shall have an obligation to repay to the Company on demand, together with interest on such amount at the applicable Federal rate (as defined in Section 1274(d) of the Code) from the date of the payment hereunder to the date of repayment
by the Participant. If the Participant receives reduced payments and benefits by reason of this Section 4 and it is established pursuant to a Final Determination that the Participant could have received a greater amount without exceeding the Payment
Cap, then the Company or the appropriate Prudential Affiliate shall promptly thereafter pay the Participant the aggregate additional amount which could have been paid without exceeding the Payment Cap, together with interest on such amount at the
applicable Federal rate (as defined in Section 1274(d) of the Code) from the original payment due date to the date of actual payment. 
  
  
 ARTICLE V 
 DISPUTES 
  
 Any dispute or controversy arising under or in connection with this Program shall be resolved by binding arbitration. The arbitration shall be held in the city of Newark, New Jersey (or such other location as the
parties shall mutually agree to in writing) and shall be conducted in accordance with the Expedited Employment Arbitration Rules of 
  

 19 

 the American Arbitration Association then in effect at the time of the arbitration (or such other rules as the parties
may agree to in writing), and otherwise in accordance with principles which would be applied by a court of law or equity. The arbitrator shall be acceptable to both the Company and the Participant. If the parties cannot agree on an acceptable
arbitrator, the dispute shall be heard by a panel of three arbitrators, one appointed by each of the parties and the third appointed by the other two arbitrators. If a Participant asserts any claim as to his or her eligibility for benefits under
this Program, the Participant’s employer shall pay the Participant’s legal expenses (or cause such expenses to be paid) including, without limitation, his or her reasonable attorney’s fees, on a quarterly basis, upon presentation of
proof of such expenses in a form acceptable to the Company, provided that the Participant shall reimburse such amounts, plus simple interest thereon at the 90-day United States Treasury Bill rate as in effect from time to time, compounded annually,
if the Participant does not prevail as to at least one material issue presented to the arbitrator(s). 
  
  
 ARTICLE VI 
 GENERAL INFORMATION 
  
 6.1
Administration. The Program is sponsored solely by the Company, and will be payable from the general assets of the Company and, as applicable, a Prudential Affiliate. The Program will be administered by the Program Committee. The Program
Committee shall have full and complete authority to interpret this Program, and to make all determinations hereunder relating to the participation and eligibility of eligible employees for benefits, including, but not limited to, making
determinations as to eligibility for benefits or to participate in the Program, the amount of benefits payable, the time at which benefits cease to be payable, and other comparable issues. The determinations made by the Program Committee shall be
final binding and conclusive on all persons affected thereby, including, but not limited to, each Participant, the Company and each Prudential Affiliate. The Company and/or the Program Committee, as the case may be, shall maintain such procedures
and records as each deems necessary or appropriate. Each Participant shall receive a copy of the Program, and written confirmation of his or her participation thereunder. 
  
 6.2 Program Amendment Or Termination. This Program may be amended or terminated at any time by the Board, subject to
the following limitations. Any amendment or termination that adversely affects Participants shall not be given any effect until the expiration of one year from the date that Participants are given written notice of the such amendment or termination.
Upon a Change of Control or any Potential Change of Control, if the Program is terminated, modified or replaced by the Company or any successor in any manner that adversely affects Participants, payments will be made to Participants under the
Program as of such date as if such Participants had incurred a Termination by the Company other than for Cause (as set forth in Section 3.3) regardless 
  

 20 

 of whether such Participants’ employment with the Company, Prudential and/or any Prudential Affiliate had, in fact,
terminated. If the Program is continued by the Company or any successor after a Change of Control or any Potential Change of Control, or is replaced by the Company or any successor to the Company in a manner that does not adversely affect
Participants, no immediate payment of the benefits described in the preceding sentence will be made unless and until such Participant’s employment is terminate by the Company, Prudential and/or any Prudential Affiliate in accordance with the
provisions of the Program or, if more favorable, any successor or replacement program. In the event a Change of Control occurs during the one-year notice period required with respect to a termination or amendment that adversely affects Participants,
such termination or amendment shall be rendered void and without effect. The Program Committee may terminate a Participant’s participation in the Program at any time, provided that (i) such termination shall not be given effect until the
expiration of six months from the date that the Participant is given notice thereof, and (ii) the Participant’s participation hereunder may not be terminated after a Change of Control or a Potential Change of Control (even if notice of
termination had been given prior to the occurrence of any such event). 
  
 6.3 No Contract Of Employment. The existence of this Program, as in effect at any time or from time to time, shall not be deemed to constitute a contract of employment between the Company or any Prudential Affiliate and any employee
or Participant, nor shall it constitute a right to remain in the employ of the Company or any Prudential Affiliate. Employment with the Company or any Prudential Affiliate is employment-at-will and either party may terminate the Participant’s
employment at any time, for any reason, with or without cause or notice. 
  
 6.4 Limitation On Liability. The liability of the Company or any Prudential Affiliate under this Program is limited to the obligations expressly set forth in the Program, and no term or provision of this
Program may be construed to impose any further or additional duties, obligations, or costs on the Company, any Prudential Affiliate or the Program Committee not expressly set forth in the Program. 
  
 6.5 Exclusivity Of Benefits. Except as otherwise expressly provided
herein with respect to a termination occurring prior to a Change of Control but after a Potential Change of Control, a Participant who receives benefits under this Program shall not be entitled to any severance benefits under any other severance
plan, program, or arrangement (including, without limitation, (a) the Prudential Severance Plan, the Prudential Severance Plan for Executives and the Prudential Severance Plan for Senior Executives or (b) any employment contract to which the
Participant and the Company are parties) sponsored or adopted by the Company. 
  

 21 

 6.6 Impact on Other Benefits. Amounts paid under the Program shall not be included in a
Participant’s compensation for purposes of calculating benefits under any other plan, program or arrangement sponsored by the Company or a Participating Company, unless such plan, program or arrangement expressly provides that amounts paid
under the Plan shall be included. 
  
 6.7 Taxes. The
Company or the appropriate Prudential Affiliate shall have the right to deduct from all payments any federal, state, or local taxes or other obligations required by law to be withheld with respect to such payments. 
  
 6.8 Third Parties. Nothing express or implied in this Program is
intended or may be construed to give any person other than eligible Participants any rights or remedies under this Program. 
  
 6.9 Captions. The headings and captions appearing herein are inserted only as a matter of convenience. They do not define, limit, construe, or
describe the scope or intent of the provisions of the Program. 
  
 6.10 Choice Of Law. Except to the extent that they may be preempted by the operation of Federal law, this Program shall be governed by the laws of the State of New Jersey, other than the provisions thereof relating to conflict of
laws. 
  
 6.11 No Limitations On Corporate Actions.
Except to the extent expressly provided in Section 6.2, nothing contained in this Program shall be construed to prevent the Company, or any Prudential Affiliate, from taking any corporate action which is deemed by it to be appropriate, or in its
best interest, whether or not such action would have an adverse effect on this Program. No employee, beneficiary, or other person, shall have any claim against the Company or any Prudential Affiliate as a result of any such action. 
  
 6.12 Non-Alienation Provision. Subject to the provisions of applicable
law, no interest of any person or entity in any benefit under the Program shall be subject in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind; nor may such benefit be taken,
either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including (but not limited to) claims for alimony, support, separate maintenance and claims in bankruptcy
proceedings. 
  
 6.13 Successors. All obligations of the
Company and any Prudential Affiliate under the Program shall be binding upon and inure to the benefit of any successor to the Company or such Prudential Affiliate, whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, demutualization or otherwise. 
  

 222000 Stock Incentive Plan

 Exhibit 10.1 
  
  
 ON SEMICONDUCTOR CORPORATION 

(Formerly Known as SCG Holding Corporation) 
  
 2000 STOCK INCENTIVE PLAN 
 (As
Adopted by the Board of Directors on February 17, 2000; 
 Amended and Restated April 21, 2000; 
 Amended and Restated May 18, 2001; 
 Amended and Restated May 23, 2001 
 Amended and Restated May 21, 2003) 
  
 ARTICLE 1 
 PURPOSE 
  
 1.1 GENERAL. The purpose of the SCG Holding Corporation 2000 Stock Incentive Plan (the “Plan”) is to promote the success and enhance the value of SCG Holding Corporation (the “Company”) by linking the
personal interests of its members of the Board, employees, officers, and executives of, and consultants and advisors to, the Company to those of Company stockholders and by providing such individuals with an incentive for outstanding performance in
order to generate superior returns to shareholders of the Company. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of members of the Board, employees, officers, and
executives of, and consultants and advisors to, the Company upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. 
  
  
 ARTICLE 2 
 EFFECTIVE DATE 
  
 2.1 EFFECTIVE DATE. The Plan is effective as of the date the Plan is approved by the Board (the “Effective Date”). Within 12
months of the Effective Date, the Plan must be approved by the Company’s shareholders. The Plan will be deemed to be approved by the shareholders if it receives the affirmative vote of the holders of a majority of the shares of stock of the
Company present or represented and entitled to vote at a meeting duly held in accordance with the applicable provisions of the Company’s Bylaws or by written consent of a majority of the Company’s shareholders in lieu of a meeting. Any
awards granted under the Plan prior to shareholder approval are effective when made (unless the Committee specifies otherwise at the time of grant), but no Award may be exercised or settled and no restrictions relating to any Award may lapse before
the Plan is approved by the shareholders as provided above. If the shareholders fail to approve the Plan, any Award previously made shall be automatically canceled without any further act. 
  
  
 ARTICLE 3 
 DEFINITIONS AND CONSTRUCTION 
  
 3.1 DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word
or phrase does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in Sections 1.1 or 2.1 unless a 
  

 1 

 clearly different meaning is required by the context. The following words and phrases shall have the following meanings:

  
 (a) “Award” means any Option, Stock Appreciation
Right, Restricted Stock Award, Performance Share Award, Performance-Based Award, or Take Ownership Grant granted to a Participant under the Plan. 
  
 (b) “Award Agreement” means any written agreement, contract, or other instrument or document evidencing an Award. 
  
 (c) “Board” means the Board of Directors of the Company.

  
 (d) “Cause” means (except as otherwise provided in
an Award Agreement) if the Committee, in its reasonable and good faith discretion, determines that the Participant (i) fails to substantially perform his duties (other than as a result of Disability), after the Board or the executive to which the
Participant reports delivers to the Participant a written demand for substantial performance that specifically identifies the manner in which the Participant has not substantially performed his duties; (ii) engages in willful misconduct or gross
negligence that is materially injurious to the Company or a Subsidiary; (iii) breaches his duty of loyalty to the Company or a Subsidiary; (iv) unauthorized removal from the premises of the Company or a Subsidiary of a document (of any media or
form) relating to the Company or a Subsidiary or the customers of the Company or a Subsidiary; or (v) has committed a felony or a serious crime involving moral turpitude. Any rights the Company or any of its Subsidiaries may have hereunder in
respect of the events giving rise to Cause shall be in addition to the rights the Company or any of its Subsidiaries may have under any other agreement with the Participant or at law or in equity. If, subsequent to a Participant’s termination
of employment or services, it is discovered that such Participant’s employment or services could have been terminated for Cause, the Participant’s employment or services shall, at the election of the Board, in its sole discretion, be
deemed to have been terminated for Cause retroactively to the date the events giving rise to Cause occurred. 
  
 (e) “Change of Control” shall mean the occurrence of any of the following events: (i) any sale, lease, exchange, or other transfer (in one
transaction or a series of related transactions) of all or substantially all of the assets of the Company or the Operating Subsidiary to any Person or group of related persons for purposes of Section 13(d) of the Exchange Act (a “Group”),
together with any affiliates thereof other than TPG Semiconductor Holdings LLC, TPG Partners II, L.P., or any of their affiliates (hereafter collectively referred to as “TPG”); (ii) the approval by the holders of Stock and the consummation
of any plan or proposal for the liquidation or dissolution of the Company; (iii) (A) any Person or Group (other than TPG) shall become the beneficial owner, directly or indirectly, of shares representing more than 25% of the aggregate voting power
of the issued and outstanding stock entitled to vote in the election of directors (the “Voting Stock”) of the Company and such Person or Group has the power and authority to vote such shares and (B) TPG beneficially owns (within the
meaning of Section 13(d) of the Exchange Act), directly or indirectly, in the aggregate a lesser percentage of the Voting Stock of the Company than such other Person or Group; (iv) the actual replacement of a majority of the Board over a two-year
period from the individual directors who constituted the Board at the beginning of such period, and such replacement shall not have been approved by a 
  

 2 

 vote of at least a majority of the Board then still in office who either were members of such Board at the beginning of
such period or whose election as a member of such Board was previously so approved or who were nominated by, or designees of, TPG; (v) any Person or Group other than TPG shall have acquired shares of Voting Stock of the Company such that such Person
or Group has the power and authority to elect a majority of the members of the Board of Directors of the Company; or (vi) the consummation of a merger or consolidation of the Company with another entity in which holders of the Stock immediately
prior to the consummation of the transaction hold, directly or indirectly, immediately following the consummation of the transaction, 50% or less of the common equity interest in the surviving corporation in such transaction. Notwithstanding the
foregoing, in no event shall a Change of Control be deemed to have occurred as a result of an initial public offering of the Stock. 
  
 (f) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (g) “Committee” means the committee of the Board described in Article 4. 
  
 (h) “Covered Employee” means an Employee who is a “covered
employee” within the meaning of Section 162(m) of the Code. 
  
 (i) “Disability” shall mean (unless otherwise defined in an employment agreement between the Company or any of its Subsidiaries and the Participant or in the Participant’s Award Agreement) any illness or other physical or
mental condition of a Participant which renders the Participant incapable of performing his customary and usual duties for the Company, or any medically determinable illness or other physical or mental condition resulting from a bodily injury,
disease or mental disorder which in the judgment of the Committee is permanent and continuous in nature. The Committee may require such medical or other evidence as it deems necessary to judge the nature and permanency of the Participant’s
condition. 
  
 (j) “Exchange Act” means the Securities
Exchange Act of 1934, as amended. 
  
 (k) “Fair Market
Value” means, as of any given date, the fair market value of Stock on a particular date determined by such methods or procedures as may be established from time to time by the Committee. Unless otherwise determined by the Committee, the Fair
Market Value of Stock as of any date shall be the closing price for the Stock as reported on the NASDAQ National Market System (or on any national securities exchange on which the Stock is then listed) for that date or, if no closing price is
reported for that date, the closing price on the next preceding date for which a closing price was reported. 
  
 (l) “Incentive Stock Option” means an Option that is intended to meet the requirements of Section 422 of the Code or any successor provision
thereto. 
  
 (m) “Non-Employee Director” means a member
of the Board who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) of the Exchange Act, or any successor definition adopted by the Board. 
  
 (n) “Non-Qualified Stock Option” means an Option that is not intended to be an Incentive Stock Option. 

 

 3 

 (o) “Operating Subsidiary” means Semiconductor Components Industries, LLC. 
  
 (p) “Option” means a right granted to a Participant under Article 7
or Article 12 of the Plan to purchase Stock at a specified price during specified time periods. An Option may be either an Incentive Stock Option or a Non-Qualified Stock Option. 
  
 (q) “Participant” means a person who, as a member of the Board, employee, officer, or executive of, or consultant
or advisor providing services to, the Company or any Subsidiary, has been granted an Award under the Plan. 
  
 (r) “Performance-Based Awards” means the Performance Share Awards and Restricted Stock Awards granted to selected Covered Employees pursuant to
Articles 9 and 10, but which are subject to the terms and conditions set forth in Article 11. All Performance-Based Awards are intended to qualify as “performance-based compensation” under Section 162(m) of the Code. 
  
 (s) “Performance Criteria” means the criteria that the Committee
selects for purposes of establishing the Performance Goal or Performance Goals for a Participant for a Performance Period. The Performance Criteria that will be used to establish Performance Goals are limited to the following: pre- or after-tax net
earnings, sales growth, operating earnings, operating cash flow, return on net assets, return on stockholders’ equity, return on assets, return on capital, Stock price growth, stockholder returns, gross or net profit margin, earnings per share,
price per share of Stock, and market share, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group. The Committee shall, within the time prescribed by Section 162(m)
of the Code, define in an objective fashion the manner of calculating the Performance Criteria it selects to use for such Performance Period for such Participant. 
  
 (t) “Performance Goals” means, for a Performance Period, the goals established in writing by the Committee for the
Performance Period based upon the Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division,
business unit, or an individual. The Committee, in its discretion, may, within the time prescribed by Section 162(m) of the Code, adjust or modify the calculation of Performance Goals for such Performance Period in order to prevent the dilution or
enlargement of the rights of Participants (i) in the event of, or in anticipation of, any unusual or extraordinary corporate item, transaction, event, or development, or (ii) in recognition of, or in anticipation of, any other unusual or
nonrecurring events affecting the Company, or the financial statements of the Company, or in response to, or in anticipation of, changes in applicable laws, regulations, accounting principles, or business conditions. 
  
 (u) “Performance Period” means the one or more periods of time,
which may be of varying and overlapping durations, as the Committee may select, over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Participant’s right to, and the payment of, a
Performance-Based Award. 
  

 4 

 (v) “Performance Share” means a right granted to a Participant under Article 9, to receive
cash, Stock, or other Awards, the payment of which is contingent upon achieving certain performance goals established by the Committee. 
  
 (w) “Plan” means the SCG Holding Corporation 2000 Stock Incentive Plan, as amended. 
  
 (x) “Restricted Stock Award” means Stock granted to a Participant
under Article 10 that is subject to certain restrictions and to risk of forfeiture. 
  
 (y) “Stock” means the common stock of the Company and such other securities of the Company that may be substituted for Stock pursuant to Article 14. 
  
 (z) “Stock Appreciation Right” or “SAR” means a right
granted to a Participant under Article 8 to receive a payment equal to the difference between the Fair Market Value of a share of Stock as of the date of exercise of the SAR over the grant price of the SAR, all as determined pursuant to Article 8.

  
 (aa) “Subsidiary” means any corporation or other
entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company. 
  
 (bb) “Take Ownership Grant” means the Option granted to each eligible Participant pursuant to Article 12. 
  
  
 ARTICLE 4 
 ADMINISTRATION 
  
 4.1 COMMITTEE. The Plan shall be administered by the Board or a Committee appointed by, and which serves at the discretion of, the Board. If
the Board appoints a Committee, the Committee shall consist of at least two individuals, each of whom qualifies as (i) a Non-Employee Director, and (ii) an “outside director” under Code Section 162(m) and the regulations issued thereunder.
Reference to the Committee shall refer to the Board if the Board does not appoint a Committee. 
  
 4.2 ACTION BY THE COMMITTEE. A majority of the Committee shall constitute a quorum. The acts of a majority of the members present at any meeting at which a quorum is present, and acts approved in writing
by a majority of the Committee in lieu of a meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or
other employee of the Company or any Subsidiary, the Company’s independent certified public accountants, or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

  
 4.3 AUTHORITY OF COMMITTEE. Subject to any
specific designation in the Plan, the Committee has the exclusive power, authority and discretion to: 
  
 (a) Designate Participants to receive Awards; 
  

 5 

 (b) Determine the type or types of Awards to be granted to each Participant; 
  
 (c) Determine the number of Awards to be granted and the number of shares of
Stock to which an Award will relate; 
  
 (d) Determine the terms
and conditions of any Award granted under the Plan including but not limited to, the exercise price, grant price, or purchase price, any restrictions or limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on
the exercisability of an Award, and accelerations or waivers thereof, based in each case on such considerations as the Committee in its sole discretion determines; provided, however, that the Committee shall not have the authority to accelerate the
vesting or waive the forfeiture of any Performance-Based Awards; 
  
 (e) Amend, modify, or terminate any outstanding Award, with the Participant’s consent unless the Committee has the authority to amend, modify, or terminate an Award without the Participant’s consent under any other provision of
the Plan. 
  
 (f) Determine whether, to what extent, and under
what circumstances an Award may be settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards, or other property, or an Award may be canceled, forfeited, or surrendered; 
  
 (g) Prescribe the form of each Award Agreement, which need not be identical
for each Participant; 
  
 (h) Decide all other matters that must
be determined in connection with an Award; 
  
 (i) Establish,
adopt, or revise any rules and regulations as it may deem necessary or advisable to administer the Plan; and 
  
 (j) Interpret the terms of, and any matter arising under, the Plan or any Award Agreement; 
  
 (k) Make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or
advisable to administer the Plan. 
  
 4.4 DECISIONS
BINDING. The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Agreement and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all
parties. 
  
  
 ARTICLE 5 
 SHARES SUBJECT TO THE PLAN 
  
 5.1 NUMBER OF SHARES. Subject to adjustment as provided in
section 14.1, the aggregate number of shares of Stock reserved and available for grant shall be 26,170,472, plus an additional number of shares of Stock equal to: (i) 2 % of the total number of outstanding shares of common stock effective as of
January 1, 2004; (ii) 1.8 % of the total number of outstanding shares of common stock effective as of January 1, 2005; and (iii) 1.6 % of the total number of 
  

 6 

 outstanding shares as of January 1, 2006. In determining these increases of shares reserved for issuance under the 2000
SIP, relevant calculations shall be made on a non-diluted basis, i.e., excluding all shares previously reserved for issuance under the 2000 SIP and any other equity incentive plan of the Corporation. Notwithstanding the foregoing, the total number
of shares available for grant under the 2000 SIP as Incentive Stock Options shall be 3,000,000. 
  
 5.2 LAPSED AWARDS. To the extent that an Award terminates, expires, or lapses for any reason, any shares of Stock subject to the Award will
again be available for the grant of an Award under the Plan. 
  
 5.3 STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market. 
  
 5.4 LIMITATION ON NUMBER OF SHARES SUBJECT TO AWARDS.
Notwithstanding any provision in the Plan to the contrary, and subject to the adjustment in Section 14.1, the maximum number of shares of Stock with respect to one or more Awards that may be granted to any one Participant during the Company’s
fiscal year shall be 2,500,000. 
  
  
 ARTICLE 6 
 ELIGIBILITY AND PARTICIPATION 
  
 6.1 ELIGIBILITY. 
  
 (a) GENERAL. Persons eligible to participate in this Plan include all
members of the Board, employees, officers, and executives of, and consultants and advisors to, the Company or a Subsidiary, as determined by the Committee. 
  
 (b) FOREIGN PARTICIPANTS. Subject to the provisions of Article 16 of the Plan, in order to assure the viability of Awards granted to Participants employed
in foreign countries, the Committee may provide for such special terms as it may consider necessary or appropriate to accommodate differences in local law, tax policy, or custom. Moreover, the Committee may approve such supplements to, or
amendments, restatements, or alternative versions of the Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of the Plan as in effect for any other purpose; provided, however, that no such
supplements, amendments, restatements, or alternative versions shall increase the share limitations contained in Section 5.1 of the Plan. 
  
 6.2 ACTUAL PARTICIPATION. Subject to the provisions of the Plan, the Committee may, from time to time, select from among all eligible
individuals, those to whom Awards shall be granted and shall determine the nature and amount of each Award. No individual shall have any right to be granted an Award under this Plan. 
  
  
 ARTICLE 7 
 STOCK OPTIONS 
  
 7.1 GENERAL. The Committee is authorized to grant Options to Participants on the following terms and conditions: 
  

 7 

 (a) EXERCISE PRICE. The exercise price per share of Stock under an Option shall be determined by the
Committee and set forth in the Award Agreement. It is the intention under the Plan that the exercise price for any Option shall not be less than the Fair Market Value as of the date of grant; provided, however that the Committee may, in its
discretion, grant Options (other than Options that are intended to be Incentive Stock Options or Options that are intended to qualify as performance-based compensation under Code Section 162(m)) with an exercise price of less than Fair Market Value
on the date of grant. 
  
 (b) TIME AND CONDITIONS OF EXERCISE. The
Committee shall determine the time or times at which an Option may be exercised in whole or in part. The Committee shall also determine the performance or other conditions, if any, that must be satisfied before all or part of an Option may be
exercised. Unless otherwise provided in an Award Agreement, an Option will lapse immediately if a Participant’s employment or services are terminated for Cause. 
  
 (c) PAYMENT. The Committee shall determine the methods by which the exercise price of an Option may be paid, the form of
payment, including, without limitation, cash, promissory note, shares of Stock (through actual tender or by attestation), or other property (including broker-assisted “cashless exercise” arrangements), and the methods by which shares of
Stock shall be delivered or deemed to be delivered to Participants. 
  
 (d) EVIDENCE OF GRANT. All Options shall be evidenced by a written Award Agreement between the Company and the Participant. The Award Agreement shall include such additional provisions as may be specified by the Committee. 
  
 7.2 INCENTIVE STOCK OPTIONS. Incentive Stock Options shall be
granted only to employees and the terms of any Incentive Stock Options granted under the Plan must comply with the following additional rules: 
  
 (a) EXERCISE PRICE. The exercise price per share of Stock shall be set by the Committee, provided that the exercise price for any Incentive Stock Option
may not be less than the Fair Market Value as of the date of the grant. 
  
 (b) EXERCISE. In no event, may any Incentive Stock Option be exercisable for more than ten years from the date of its grant. 
  
 (c) LAPSE OF OPTION. An Incentive Stock Option shall lapse under the following circumstances. 
  
 (1) The Incentive Stock Option shall lapse ten years from the
date it is granted, unless an earlier time is set in the Award Agreement. 
  
 (2) The Incentive Stock Option shall lapse upon termination of employment for Cause or for any other reason, other than the Participant’s death or Disability, unless otherwise provided in the Award Agreement.

  
 (3) If the Participant terminates employment
on account of Disability or death before the Option lapses pursuant to paragraph (1) or (2) above, the Incentive 
  

 8 

 Stock Option shall lapse, unless it is previously exercised, on the earlier of (i) the date on which the
Option would have lapsed had the Participant not become Disabled or lived and had his employment status (i.e., whether the Participant was employed by the Company on the date of his Disability or death or had previously terminated employment)
remained unchanged; or (ii) 12 months after the date of the Participant’s termination of employment on account of Disability or death. Upon the Participant’s Disability or death, any Incentive Stock Options exercisable at the
Participant’s Disability or death may be exercised by the Participant’s legal representative or representatives, by the person or persons entitled to do so under the Participant’s last will and testament, or, if the Participant fails
to make testamentary disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to receive the Incentive Stock Option under the applicable laws of descent and distribution. 
  
 (d) INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair Market Value (determined
as of the time an Award is made) of all shares of Stock with respect to which Incentive Stock Options are first exercisable by a Participant in any calendar year may not exceed $100,000.00 or such other limitation as imposed by Section 422(d) of the
Code, or any successor provision. To the extent that Incentive Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall be considered Non-Qualified Stock Options. 
  
 (e) TEN PERCENT OWNERS. An Incentive Stock Option shall be granted to any
individual who, at the date of grant, owns stock possessing more than ten percent of the total combined voting power of all classes of Stock of the Company only if such Option is granted at a price that is not less than 110% of Fair Market Value on
the date of grant and the Option is exercisable for no more than five years from the date of grant. 
  
 (f) EXPIRATION OF INCENTIVE STOCK OPTIONS. No Award of an Incentive Stock Option may be made pursuant to this Plan after the tenth anniversary of the
Effective Date. 
  
 (g) RIGHT TO EXERCISE. During a
Participant’s lifetime, an Incentive Stock Option may be exercised only by the Participant. 
  
  
 ARTICLE 8 
 STOCK APPRECIATION RIGHTS 
  
 8.1 GRANT OF
SARS. The Committee is authorized to grant SARs to Participants on the following terms and conditions: 
  
 (a) RIGHT TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the Participant to whom it is granted has the right to receive the excess, if any,
of: 
  
 (1) The Fair Market Value of a share of
Stock on the date of exercise; over 
  

 9 

 (2) The grant price of the Stock Appreciation Right as determined by the Committee, which
shall not be less than the Fair Market Value of a share of Stock on the date of grant in the case of any SAR related to any Incentive Stock Option. 
  
 (b) OTHER TERMS. All awards of Stock Appreciation Rights shall be evidenced by an Award Agreement. The terms, methods of exercise, methods of settlement,
form of consideration payable in settlement, and any other terms and conditions of any Stock Appreciation Right shall be determined by the Committee at the time of the grant of the Award and shall be reflected in the Award Agreement. 
  
  
 ARTICLE 9 
 PERFORMANCE SHARES 
  

9.1 GRANT OF PERFORMANCE SHARES. The Committee is authorized to grant Performance Shares to Participants on such terms and conditions as
may be selected by the Committee. The Committee shall have the complete discretion to determine the number of Performance Shares granted to each Participant. All Awards of Performance Shares shall be evidenced by an Award Agreement. 
  
 9.2 RIGHT TO PAYMENT. A grant of Performance Shares gives the
Participant rights, valued as determined by the Committee, and payable to, or exercisable by, the Participant to whom the Performance Shares are granted, in whole or in part, as the Committee shall establish at grant or thereafter. Subject to the
terms of the Plan, the Committee shall set performance goals and other terms or conditions to payment of the Performance Shares in its discretion which, depending on the extent to which they are met, will determine the number and value of
Performance Shares that will be paid to the Participant. 
  
 9.3
OTHER TERMS. Performance Shares may be payable in cash, Stock, or other property, and have such other terms and conditions as determined by the Committee and reflected in the Award Agreement. 
  
  
 ARTICLE 10 
 RESTRICTED STOCK AWARDS 
  
 10.1 GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of Restricted Stock to Participants
in such amounts and subject to such terms and conditions as determined by the Committee. All Awards of Restricted Stock shall be evidenced by a Restricted Stock Award Agreement. 
  
 10.2 ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject to such restrictions on transferability and
other restrictions as the Committee may impose (including, without limitation, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at
such times, under such circumstances, in such installments, or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. 
  
 10.3 FORFEITURE. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of
employment during the applicable 
  

 10 

 restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited, provided, however,
that the Committee may provide in any Restricted Stock Award Agreement that restrictions or forfeiture conditions relating to Restricted Stock will be waived in whole or in part in the event of terminations resulting from specified causes, and the
Committee may in other cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock. 
  
 10.4 CERTIFICATES FOR RESTRICTED STOCK. Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall
determine. If certificates representing shares of Restricted Stock are registered in the name of the Participant, certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock,
and the Company may, at its discretion, retain physical possession of the certificate until such time as all applicable restrictions lapse. 
  
  
 ARTICLE 11 
 PERFORMANCE-BASED AWARDS 
  
 11.1 PURPOSE. The purpose of this Article 11 is to provide the Committee the ability to qualify the Performance Share Awards under Article 9 and the Restricted Stock Awards under Article 10 as
“performance-based compensation” under Section 162(m) of the Code. If the Committee, in its discretion, decides to grant a Performance-Based Award to a Covered Employee, the provisions of this Article 11 shall control over any contrary
provision contained in Articles 9 or 10. 
  
 11.2
APPLICABILITY. This Article 11 shall apply only to those Covered Employees selected by the Committee to receive Performance-Based Awards. The Committee may, in its discretion, grant Restricted Stock Awards or Performance Share Awards
to Covered Employees that do not satisfy the requirements of this Article 11. The designation of a Covered Employee as a Participant for a Performance Period shall not in any manner entitle the Participant to receive an Award for the period.
Moreover, designation of a Covered Employee as a Participant for a particular Performance Period shall not require designation of such Covered Employee as a Participant in any subsequent Performance Period and designation of one Covered Employee as
a Participant shall not require designation of any other Covered Employees as a Participant in such period or in any other period. 
  
 11.3 DISCRETION OF COMMITTEE WITH RESPECT TO PERFORMANCE AWARDS. With regard to a particular Performance Period, the Committee shall have
full discretion to select the length of such Performance Period, the type of Performance-Based Awards to be issued, the kind and/or level of the Performance Goal, and whether the Performance Goal is to apply to the Company, a Subsidiary or any
division or business unit thereof. 
  
 11.4 PAYMENT OF
PERFORMANCE AWARDS. Unless otherwise provided in the relevant Award Agreement, a Participant must be employed by the Company or a Subsidiary on the last day of the Performance Period to be eligible for a Performance Award for such
Performance Period. Furthermore, a Participant shall be eligible to receive payment under a Performance-Based Award for a Performance Period only if the Performance Goals for such period are achieved. In determining the actual size of an individual
Performance-Based Award, 
  

 11 

 the Committee may reduce or eliminate the amount of the Performance-Based Award earned for the Performance Period, if in
its sole and absolute discretion, such reduction or elimination is appropriate. 
  
 11.5 MAXIMUM AWARD PAYABLE. The maximum Performance-Based Award payable to any one Participant under the Plan for a Performance Period is 2,500,000 shares of Stock, or in the event the Performance-Based
Award is paid in cash, such maximum Performance-Based Award shall be determined by multiplying 2,500,000 by the Fair Market Value of one share of Stock as of the date of grant of the Performance-Based Award. 
  
  
 ARTICLE 12 
 TAKE OWNERSHIP GRANTS 
  
 12.1 TAKE OWNERSHIP GRANTS. The Take Ownership Grants shall be awarded to Participants selected by the
Committee and shall be subject to the following terms and conditions: 
  
 (a) EFFECTIVE DATE OF GRANTS. The effective date of the Take Ownership Grants shall be on the day on which the Company’s initial public offering of Stock is consummated; provided, however, that Take Ownership Grants shall not be made
to those persons who are not United States residents if the jurisdiction in which any such person resides prohibits such Grants or makes it impractical for the Company to make such Grants. 
  
 (b) EXERCISE PRICE FOR GRANTS. Notwithstanding any other provision hereof,
the exercise price per share of Stock under the Take Ownership Grants shall be the price at which the Company’s Stock is offered under its initial public offering of Stock (“IPO Price”), provided, however, that, with respect to
Participants who do not reside in the United States, if the day on which the Company receives approval by the applicable foreign jurisdiction to offer Stock to Participants residing in that jurisdiction is later than the day on which the
Company’s initial public offering becomes effective, the exercise price per share of Stock under the Take Ownership Grants shall be the Fair Market Value on the day on which the Company receives approval by the applicable foreign jurisdiction
to offer Stock to such Participants. 
  
 (c) AMOUNT OF THE TAKE
OWNERSHIP GRANTS. Each Participant selected to receive a Take Ownership Grant shall be entitled to receive an Option to purchase 50 shares of Stock. Such Option shall be designated as a Non-Qualified Stock Option. 
  
 (d) TIME AND CONDITIONS OF EXERCISE. The Take Ownership Grants shall become
fully exercisable on the second anniversary of the date of grant. 
  
 (e) PAYMENT. The Committee shall determine the methods by which the exercise price of the Take Ownership Grants may be paid, the form of payment, including, without limitation, cash, promissory note, shares of Stock (through actual tender
or by attestation), or other property (including broker-assisted “cashless exercise” arrangements), and the methods by which shares of Stock shall be delivered or deemed to be delivered to Participants. 
  

 12 

 (f) EVIDENCE OF GRANT. All Take Ownership Grants shall be evidenced by a written Award Agreement between
the Company and the Participant. The Award Agreement shall provide that upon a Participant’s termination of employment or service with the Company or a Subsidiary for any reason, the Participant may, at any time within 90 days after the
effective date of the Participant’s termination, exercise the Take Ownership Grant to the extent that the Participant was entitled to exercise the Take Ownership Grant at the date of termination, provided that in no event shall the Take
Ownership Grant be exercisable after its expiration date, as provided in the Award Agreement. The Award Agreement shall also include such other provisions as determined by the Committee. 
  
  
 ARTICLE 13 
 PROVISIONS APPLICABLE TO AWARDS 
  
 13.1 STAND-ALONE AND TANDEM AWARDS. Awards granted under the Plan may, in the discretion of the Committee, be granted either alone, in
addition to, or in tandem with, any other Award granted under the Plan. Awards granted in addition to or in tandem with other Awards may be granted either at the same time as or at a different time from the grant of such other Awards. 
  
 13.2 EXCHANGE PROVISIONS. The Committee may at any time offer
to exchange or buy out any previously granted Award for a payment in cash, Stock, or another Award, based on the terms and conditions the Committee determines and communicates to the Participant at the time the offer is made. 
  
 13.3 TERM OF AWARD. The term of each Award shall be for the
period as determined by the Committee, provided that in no event shall the term of any Incentive Stock Option or a Stock Appreciation Right granted in tandem with the Incentive Stock Option exceed a period of ten years from the date of its grant.

  
 13.4 FORM OF PAYMENT FOR AWARDS. Subject to the
terms of the Plan and any applicable law or Award Agreement, payments or transfers to be made by the Company or a Subsidiary on the grant or exercise of an Award may be made in such forms as the Committee determines at or after the time of grant,
including without limitation, cash, promissory note, Stock, other Awards, or other property, or any combination, and may be made in a single payment or transfer, in installments, or on a deferred basis, in each case determined in accordance with
rules adopted by, and at the discretion of, the Committee. 
  
 13.5 LIMITS ON TRANSFER. No right or interest of a Participant in any Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or a Subsidiary, or shall be subject to any lien,
obligation, or liability of such Participant to any other party other than the Company or a Subsidiary. Except as otherwise provided by the Committee, no Award shall be assignable or transferable by a Participant other than by will or the laws of
descent and distribution. 
  
 13.6 BENEFICIARIES.
Notwithstanding Section 13.5, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the 
  

 13 

 Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to the Participant, except to the extent the Plan and Award Agreement
otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If the Participant is married, a designation of a person other than the Participant’s spouse as his beneficiary with respect to more than 50
% of the Participant’s interest in the Award shall not be effective without the written consent of the Participant’s spouse. If no beneficiary has been designated or survives the Participant, payment shall be made to the person entitled
thereto under the Participant’s will or the laws of descent and distribution. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time provided the change or revocation is filed with the
Committee. 
  
 13.7 STOCK CERTIFICATES.
Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Awards, unless and until the Board has determined, with advice of
counsel, that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed or traded.
All Stock certificates delivered under the Plan are subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with Federal, state, or foreign jurisdiction, securities or other laws, rules and
regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock.
In addition to the terms and conditions provided herein, the Board may require that a Participant make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems advisable in order to comply with any such laws,
regulations, or requirements. 
  
 13.8 ACCELERATION UPON A
CHANGE OF CONTROL. At the time of the grant of an Option, Stock Appreciation Right or other Award or any time thereafter, the Board shall have the authority and discretion, but shall not have any obligation, to provide for the acceleration
of the vesting and exercisability of any outstanding Option, Stock Appreciation Right or other Award upon a Change in Control. 
  
  
 ARTICLE 14 
 CHANGES IN CAPITAL STRUCTURE 
  
 14.1 GENERAL. 
  
 (a) SHARES AVAILABLE FOR GRANT. In the event of any change in the number of shares of Stock outstanding by reason of any stock dividend or split, recapitalization, merger, consolidation, combination or exchange of shares or similar
corporate change, the maximum aggregate number of shares of Stock with respect to which the Committee may grant Awards shall be appropriately adjusted by the Committee. In the event of any change in the number of shares of Stock outstanding by
reason of any other event or transaction, the Committee may, but need not, make such adjustments in the number and class of shares of Stock with respect to which Awards may be granted as the Committee may deem appropriate. 
  

 14 

 (b) OUTSTANDING AWARDS – INCREASE OR DECREASE IN ISSUED SHARES WITHOUT CONSIDERATION. Subject to any
required action by the shareholders of the Company, in the event of any increase or decrease in the number of issued shares of Stock resulting from a subdivision or consolidation of shares of Stock or the payment of a stock dividend (but only on the
shares of Stock), or any other increase or decrease in the number of such shares effected without receipt or payment of consideration by the Company, the Committee shall proportionally adjust the number of shares of Stock subject to each outstanding
Award and the exercise price per share of Stock of each such Award. 
  
 (c) OUTSTANDING AWARDS – CERTAIN MERGERS. Subject to any required action by the shareholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or
consolidation as a result of which the holders of shares of Stock receive securities of another corporation), each Award outstanding on the date of such merger or consolidation shall pertain to and apply to the securities which a holder of the
number of shares of Stock subject to such Award would have received in such merger or consolidation. 
  
 (d) OUTSTANDING AWARDS – CERTAIN OTHER TRANSACTIONS. In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or
substantially all of the Company’s assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in which the Company is the surviving
corporation but the holders of shares of Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its absolute discretion, have the power to: 
  
 (1) cancel, effective immediately prior to the occurrence of
such event, each Award outstanding immediately prior to such event (whether or not then exercisable), and, in full consideration of such cancellation, pay to the Participant to whom such Award was granted an amount in cash, for each share of Stock
subject to such Award, respectively, equal to the excess of (A) the value, as determined by the Committee in its absolute discretion, of the property (including cash) received by the holder of a share of Stock as a result of such event over (B) the
exercise of such Award; or 
  
 (2) provide for the
exchange of each Award outstanding immediately prior to such event (whether or not then exercisable) for an option, a stock appreciation right, restricted stock award, performance share award or performance-based award with respect to, as
appropriate, some or all of the property for which such Award is exchanged and, incident thereto, make an equitable adjustment as determined by the Committee in its absolute discretion in the exercise price or value of the option, stock appreciate
right, restricted stock award, performance share award or performance-based award or the number of shares or amount of property subject to the option, stock appreciation right, restricted stock award, performance share award or performance-based
award or, if appropriate, provide for a cash payment to the Participant to whom such Award was granted in partial consideration for the exchange of the Award. 
  

 15 

 (e) OUTSTANDING AWARDS – OTHER CHANGES. In the event of any other change in the capitalization of
the Company or corporate change other than those specifically referred to in Article 14, the Committee may, in its absolute discretion, make such adjustments in the number and class of shares subject to Awards outstanding on the date on which such
change occurs and in the per share exercise price of each Award as the Committee may consider appropriate to prevent dilution or enlargement of rights. 
  
 (f) NO OTHER RIGHTS. Except as expressly provided in the Plan, no Participant shall have any rights by reason of any subdivision or consolidation of
shares of stock of any class, the payment of any dividend, any increase or decrease in the number of shares of stock of any class or any dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except as expressly
provided in the Plan, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of
Stock subject to an Award or the exercise price of any Award. 
  
  
 ARTICLE 15 
 AMENDMENT, MODIFICATION,
AND TERMINATION 
  
 15.1 AMENDMENT, MODIFICATION, AND
TERMINATION. With the approval of the Board, at any time and from time to time, the Committee may terminate, amend or modify the Plan; provided, however, that to the extent necessary and desirable to comply with any applicable law,
regulation, or stock exchange rule, the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required. 
  
 15.2 AWARDS PREVIOUSLY GRANTED. Except as otherwise provided in the Plan, including without limitation, the provisions of Article 14, no
termination, amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan, without the written consent of the Participant. 
  
  
 ARTICLE 16 
 PROVISIONS RELATING TO FRENCH EMPLOYEES 
  
 Notwithstanding any other provisions of the Plan to the contrary, the following provisions shall apply to Awards granted to any employee who is a French
citizen or who works primarily in France as of the grant date (referred to herein as “French Employee”). 
  
 16.1 CONSULTANTS. Notwithstanding anything to the contrary herein, no French Employee who would otherwise be considered a consultant under
French law may be granted an Award under the Plan. 
  
 16.2
TERMINATION FOR CAUSE. The last sentence of Section 3.1(d) (definition of Cause) shall not apply to French Employees. 
  
 16.3 TEN PERCENT OWNERS. Notwithstanding Section 6.1(a) above, no Award shall be granted to any French Employee who holds more than ten
percent of the Stock on the grant date. 
  

 16 

 16.4 EXERCISE PRICE. Notwithstanding Section 7.1(a) above, all Awards granted to French
Employees shall be granted at an exercise price per share equal to Fair Market Value per share as of the grant date. 
  
 16.5 TIME LIMITATIONS. No Options shall be granted to any French Employee five years after the later of (a) the date the Company’s
stockholders initially approved the Plan, or (b) the date the Plan has been subsequently re-authorized, in its original form or as amended from time to time by the Board, by the Company’s stockholders. 
  
 16.6 VESTING OF OPTIONS. Notwithstanding Section 7.1(b) above,
no portion of any Award granted to a French Employee shall become exercisable before the five-year anniversary of the grant date. 
  
 16.7 EFFECT OF PARTICIPANT’S DEATH. Notwithstanding Section 7.1(b) or any other provision hereof, upon a French Employee’s death,
the vested portion of such Participant’s Award shall remain exercisable for a period of six months after the date of his death and shall be exercisable by his heirs. 
  
 16.8 EXCHANGE OF OPTIONS. Notwithstanding Section 13.2 above, the Company shall not terminate any portion of
an Award granted to any French Employee. 
  
 16.9 ADJUSTMENT
OF OPTIONS. Notwithstanding Section 14.1 herein, any adjustment made to any Award granted to a French Employee shall comply with applicable French law. 
  

 
 ARTICLE 17 
 GENERAL PROVISIONS 
  
 17.1 NO RIGHTS TO AWARDS. No Participant, employee, or other person shall have any claim to be granted any Award under the Plan, and neither the Company nor the Committee is obligated to treat
Participants, employees, and other persons uniformly. 
  
 17.2
NO STOCKHOLDERS RIGHTS. No Award gives the Participant any of the rights of a stockholder of the Company unless and until shares of Stock are in fact issued to such person in connection with such Award. 
  
 17.3 WITHHOLDING. The Company or any Subsidiary shall have the
authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with
respect to any taxable event arising as a result of this Plan. With the Committee’s consent, a Participant may elect to have the Company withhold from those Stock that would otherwise be received upon the exercise of any Option, a number of
shares having a Fair Market Value equal to the minimum statutory amount necessary to satisfy the Company’s applicable federal, state, local and foreign income and employment tax withholding obligations. 
  
 17.4 NO RIGHT TO EMPLOYMENT OR SERVICES. Nothing in the Plan or
any Award Agreement shall interfere with or limit in any way the right of the Company or any 
  

 17 

 Subsidiary to terminate any Participant’s employment or services at any time, nor confer upon any Participant any
right to continue in the employ of the Company or any Subsidiary. 
  
 17.5 UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for incentive compensation. With respect to any payments not yet made to a Participant pursuant to an Award, nothing contained in the Plan
or any Award Agreement shall give the Participant any rights that are greater than those of a general creditor of the Company or any Subsidiary. 
  
 17.6 INDEMNIFICATION. To the extent allowable under applicable law, each member of the Committee or of the Board shall be indemnified and
held harmless by the Company from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by such member in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or
in which he or she may be involved by reason of any action or failure to act under the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in such action, suit, or proceeding against him or her provided he or
she gives the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights
of indemnification to which such persons may be entitled under the Company’s Articles of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  
 17.7 RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan
shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or other benefit plan of the Company or any Subsidiary. 
  
 17.8 EXPENSES. The expenses of administering the Plan shall be
borne by the Company and its Subsidiaries. 
  
 17.9 TITLES
AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control. 
  
 17.10 FRACTIONAL SHARES. No fractional shares of stock shall be
issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional shares or whether such fractional shares shall be eliminated by rounding up or down as appropriate. 
  
 17.11 SECURITIES LAW COMPLIANCE. With respect to any person who
is, on the relevant date, obligated to file reports under Section 16 of the Exchange Act, transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any
provision of the Plan or action by the Committee fails to so comply, it shall be void to the extent permitted by law and voidable as deemed advisable by the Committee. 
  
 17.12 GOVERNMENT AND OTHER REGULATIONS. The obligation of the Company to make payment of awards in Stock or
otherwise shall be subject to all applicable 
  

 18 

 laws, rules, and regulations, and to such approvals by government agencies as may be required. The Company shall be under
no obligation to register under the Securities Act of 1933, as amended, any of the shares of Stock paid under the Plan. If the shares paid under the Plan may in certain circumstances be exempt from registration under the Securities Act of 1933, as
amended, the Company may restrict the transfer of such shares in such manner as it deems advisable to ensure the availability of any such exemption. 
  
 17.13 GOVERNING LAW. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the State of
Delaware. 
  

 19

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