Document:

EX-10.F

 

Exhibit
10-f

ROCKWELL AUTOMATION

DEFERRED COMPENSATION PLAN

Restated on September 6, 2006

The purpose of this Plan is to provide certain specified benefits to a select group of
management and highly compensated employees who contribute materially to the continued growth,
development and future business success of Rockwell International Corporation and its affiliates.
This Plan is unfunded for tax purposes and for purposes of Title I of ERISA and is a successor to
the Rockwell Collins Deferred Compensation Plan, effective as of June 30, 2001 (the “Predecessor
Plan”). The Plan has been approved so as to continue the provision of such specified benefits with
respect to amounts earned and accrued by Participants on or after January 1, 2005 and is intended
to satisfy and be in compliance with the provisions of the Internal Revenue Code of 1986 (the
“Code”) as they relate to deferred compensation benefits, with particular emphasis on §409A of the
said Code. If any provision or term of this document would be prohibited by or inconsistent with
the requirements of Section 409A of the Code, then such provision or term shall be deemed to be
reformed to comply with Section 409A of the Code.

To that end, the Plan is hereby amended and restated, effective as of January 1, 2005, in
accordance with the requirements of Section 409A of the Code, subject to the provisions set forth
below:

ARTICLE I: DEFINITIONS

1.010     Account means one of the accounts established for the purpose of measuring and
determining a Participant’s interest in this Plan, such accounts being the Participant’s Deferral
Account and Company Match Account.

1.020     Account Balance means, with respect to each Participant, an account in the records of
the Company equal to the sum of the Participant’s:

	(a)	 	Deferral Account balance, and

	 
	(b)	 	Company Match Account balance.

The Account Balance (and each underlying balance making up such Account Balance) is a bookkeeping
entry only and will be utilized solely as a device for the measurement and determination of the
amounts to be paid to a Participant, or his designated Beneficiary, pursuant to this Plan.

1.030     Affiliate means:

	(a)	 	any corporation incorporated under the laws of one of the United States of America of which
the Company owns, directly or indirectly, eighty percent (80%) or more of the combined voting
power of all classes of stock or eighty percent (80%) or more of the total value of the shares
of all classes of stock (all within the meaning of Code §1563);

 

 

	(b)	 	any partnership or other business entity organized under such laws, of which the Company
owns, directly or indirectly, eighty percent (80%) or more of the voting power or eighty
percent (80%) or more of the total value (all within the meaning of Code §414(c)); and

	 
	(c)	 	any other company deemed to be an Affiliate by the Company’s Board of Directors.

1.040     Annual Company Match Amount for any Plan Year means the amount determined in
accordance with Section 3.030.

1.050     Annual Deferral Amount means that portion of a Participant’s Base Annual Salary
and/or Incentive Compensation which a Participant elects to have deferred, in accordance with
Article III, for any one Plan Year. In the event of a Participant’s Retirement, Disability (if
deferrals cease in accordance with Section 9.020), death or a Termination of Employment prior to
the end of a Plan Year, such year’s Annual Deferral Amount will be the actual amount withheld prior
to such event.

1.060     Annual Installment Method means a benefit payment method involving a series of annual
installment payments over the number of years selected by the Participant in accordance with this
Plan, which will be calculated in the manner set forth in this Section. The Account Balance of the
Participant will be determined as of the close of business on the last business day of the calendar
year. The annual installment will be calculated by multiplying this balance by a fraction, the
numerator of which is one (1), and the denominator of which is the remaining number of annual
payments due the Participant. (By way of example, if a Participant were to elect a 10-year payment
under the Annual Installment Method, the first payment would be one-tenth (1/10) of the Account
Balance, calculated as described in this definition. The following year, the payment would be
one-ninth (1/9) of the Account Balance, calculated as described in this definition.) Each annual
installment will be paid within the first sixty (60) days of the calendar year following the
applicable year.

1.070     Base Annual Salary means the annual cash compensation relating to services performed
during any calendar year, whether or not paid in such calendar year or included on the Federal
Income Tax Form W-2 for such calendar year, excluding bonuses, commissions, overtime, fringe
benefits, stock options, relocation expenses, incentive payments, non-monetary awards, directors
fees and other fees, automobile and other allowances (whether or not such allowances are included
in the Employee’s gross income) paid to a Participant for employment services rendered. Base Annual
Salary will be calculated before reduction for compensation voluntarily deferred or contributed by
the Participant pursuant to all qualified or non-qualified plans of the Company or any Affiliate
and will be calculated to include amounts not otherwise included in the Participant’s gross income
under Code §125, 402(e)(3), 402(h), or 403(b), pursuant to plans established by the Company or an
Affiliate; provided, however, that all such amounts will be included in compensation only to the
extent that, had there been no such plan, the amount would have been payable in cash to the
Participant.

1.080     Beneficiary means one or more persons, trusts, estates or other entities, designated
in accordance with Article X who or which are entitled to receive benefits under this Plan upon the
death of a Participant.

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1.090     Beneficiary Designation Form means the form established from time to time by the
Committee or its delegate that a Participant completes, signs and returns to the Committee or its
delegate, in order to designate one or more Beneficiaries.

1.100     Board of Directors means the Company’s Board of Directors.

1.110     Change of Control means any of the following occurring at any time after June 29,
2001:

	(a)	 	The acquisition by any individual, entity or group (within the meaning of §13(d)(3) or
§14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (1) the then outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (2) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this
subsection (a), the following acquisitions shall not constitute a Change of Control: (w) any
acquisition directly from the Company, (x) any acquisition by the Company, (y) any acquisition
by any employee benefit plan (or related trust) sponsored or maintained by the Company,
Rockwell or any corporation controlled by the Company or Rockwell or (z) any acquisition
pursuant to a transaction which complies with clauses (1), (2) and (3) of subsection (c) of
this Section 1.110; or

	 
	(b)	 	Individuals who, as of September 2, 1998, constitute the Board of Directors of the Company
(the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of
Directors; provided, however, that any individual becoming a director subsequent to that date
whose election, or nomination for election by the Company’s shareowners, was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but excluding, for
this purpose, any such individual whose initial assumption of office occurs as a result of an
actual or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board of Directors; or

	 
	(c)	 	Consummation of a reorganization, merger or consolidation or sale or other disposition of all
or substantially all of the assets of the Company or the acquisition of assets of another
entity (a “Company Transaction”), in each case, unless, following such Company Transaction,
(1) all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities immediately prior to such Company Transaction beneficially own, directly or
indirectly, more than 60% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally
in the election of directors, as the case may be, of the corporation resulting from such
Company Transaction (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either
directly or through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior

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	 	 	to such Company Transaction of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, as the case may be, (2) no Person (excluding any employee benefit plan
(or related trust) of the Company, of Rockwell or of such corporation resulting from such
Company Transaction) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then outstanding shares of common stock of the Company corporation from
such Company Transaction or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed prior to the
Company Transaction and (3) at least a majority of the members of the board of directors of
the corporation resulting from such Company Transaction were members of the Incumbent Board
at the time of the execution of the initial agreement, or of the action of the Board of
Directors, providing for such Company Transaction; or

	 
	(d)	 	Approval by the Company’s shareowners of a complete liquidation or dissolution of the
Company.

1.120     Code means the Internal Revenue Code of 1986, as from time to time amended.

1.130     Committee means the Compensation and Management Development Committee of the Board of
Directors.

1.140     Company means Rockwell Automation, Inc., a Delaware corporation and its predecessor,
Rockwell International Corporation.

1.150     Company Match Account means:

	(a)	 	the sum of all of a Participant’s Annual Company Match Amounts,

	 
	(b)	 	adjusted by amounts credited or debited (gains or losses) thereto, in accordance with the
provisions of Section 4.020(b), as such provisions relate to such Company Match Account, and

	 
	(c)	 	reduced by any amount debited thereon equal to the amount of all distributions made to the
Participant or his Beneficiary pursuant to this Plan which are related to such Company Match
Account.

1.160     Deduction Limitation means the following described limitation on a benefit that may
otherwise be distributable pursuant to the provisions of this Plan. Except as otherwise provided,
this limitation will be applied to all distributions that are “subject to the Deduction Limitation”
under this Plan. If the Company determines in good faith prior to a Change of Control that there
is a reasonable likelihood that any compensation paid to a Participant for a taxable year of the
Company would not be deductible by the Company solely by reason of the limitation under Code
§162(m), then, to the extent deemed necessary by the Company to ensure that the entire amount of
any distribution to the Participant pursuant to this Plan prior to the Change of Control is
deductible, the Company may defer all or any portion of a distribution under this Plan. Any amounts
deferred pursuant to this limitation will continue to be credited/debited with additional amounts
in accordance with Section 4.020(b), even if such amount is being paid out in
installments. The amounts so deferred and amounts credited thereon will be distributed to the

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Participant or his Beneficiary (in the event of the Participant’s death) at the earliest possible
date, as determined in good faith by the Company, on which the deductibility of compensation paid
or payable to the Participant for the taxable year of the Company during which the distribution is
made will not be limited by §162(m), or if earlier, the effective date of a Change of Control.
Notwithstanding anything to the contrary in this Plan, the Deduction Limitation will not apply to
any distributions made after a Change of Control.

1.170     Deferral Election means an election made pursuant to Article III by a Participant to
defer receipt of a part of his Base Annual Salary or to defer receipt of all or a part of his
Incentive Compensation.

1.180     Deferral Election Form means the form established from time to time by the Committee
or its delegate that a Participant completes, signs and returns to the Committee or its delegate to
make a Deferral Election pursuant to Article III, in order to defer receipt of a part of his Base
Annual Salary or to defer receipt of all or a part of his Incentive Compensation.

1.190     Determination Date which only has applicability with respect to the provisions of
Appendix A of this Plan, as such appendix applies to the interests of individuals who were
participants in a Predecessor Plan and as it defines the value from time to time of amounts
deferred under such Predecessor Plans prior to the Effective Date, means the last day of each
calendar year quarter (i.e., March 31st, June 30th, September 30th
and December 31st).

1.200     Disability means the inability to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment which can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months.
Notwithstanding the foregoing, a Participant shall not be considered to have a termination of
employment due to Disability unless the Participant has had a Separation from Service.

1.210     Effective Date means June 1, 2000 for this Plan.

1.220     Eligible Employee means any Employee who is employed in the United States by the
Company or an Affiliate and whose Base Annual Salary as of the beginning of a Plan Year is equal to
or greater than One Hundred Thousand Dollars ($100,000.00); provided, however, that effective
January 1, 2006, such Base Annual salary requirement shall be One Hundred and Twenty-Five Thousand
Dollars ($125,000.00).

1.230     Employee means any person who is employed by the Company or by an Affiliate.

1.240    Employee Matters Agreement means the Employee Matters Agreement, dated as of June 29, 2001, by and among Rockwell International Corporation, Rockwell Collins, Inc. and Rockwell
Scientific Company LLC.

1.250     ERISA means the Employee Retirement Income Security Act of 1974, as from time to time
amended.

1.260     Exchange Act means the Securities Exchange Act of 1934, as amended.

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1.270     Incentive Compensation means any award payable to a Participant under an Incentive
Compensation Plan sponsored by the Company or an Affiliate which, but for a Deferral Election under
the Plan, would be paid to the Participant and considered to be “wages” for purposes of United
States federal income tax withholding.

1.280     Incentive Compensation Deferral means a deferral by a Participant of part or all of
his Incentive Compensation otherwise payable to him with respect to a particular fiscal year of the
Company.

1.290     Incentive Compensation Deferral Account means:

	(a)	 	the sum of all of a Participant’s Incentive Compensation Deferrals,

	 
	(b)	 	adjusted by amounts credited or debited (gains or losses) thereto, in accordance with the
provisions of Section 4.020(b) which are related to such Incentive Compensation Deferral
Account, and

	 
	(c)	 	reduced by any amount debited thereon equal to the amount of all distributions made to the
Participant or his Beneficiary pursuant to this Plan which are related to such Incentive
Compensation Deferral Account.

1.300    Interest Rate. One-twelfth of the annual interest rate for quarterly compounding
that is one hundred and twenty percent (120%) of the “applicable Federal long-term rate” determined
by the Secretary of the Treasury pursuant to Code §1274(d), or any successor provision, as
applicable for each of the months in the three-month period ending on the last day of each
calendar year quarter.

1.310    Measurement Funds means the investment vehicles offered under this Plan which are
identified and described in Appendix B, each of whose purpose is to mirror, to the greatest extent
reasonably possible, the investment performance of a particular benchmark mutual fund sponsored and
offered by Fidelity Investments, each of which benchmark mutual funds is also described in the said
Appendix B.

1.320    Named Fiduciary means the Committee, its delegates, the Trustee and, following the
occurrence of a Change of Control, the third-party fiduciary described in Section 13.020 of this
Plan.

1.330     Non-Qualified Savings Plan means the Rockwell Automation Non-Qualified Savings Plan,
as amended from time to time.

1.340     Participant means an Eligible Employee:

	(a)	 	who elects to participate in the Plan;

	 
	(b)	 	who signs a Participation Agreement Form and a Beneficiary Designation Form;

	 
	(c)	 	whose signed Participation Agreement Form and Beneficiary Designation Form are accepted by
the Committee or its delegate;

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	(d)	 	who commences participation in the Plan; and

	 
	(e)	 	who has not elected to terminate participation in the Plan.

A spouse or former spouse of a Participant will not be treated as a Participant in the Plan or have
an Account Balance under the Plan, even if the spouse or former spouse has an interest in the
Participant’s benefits under the Plan as a result of applicable law or property settlements
resulting from legal separation or divorce.

Notwithstanding any other provision of this Plan to the contrary, no Eligible Employee or any other
person, individual or entity shall become a Participant in this Plan on or after the day on which a
Change of Control occurs.

1.350     Participation Agreement means a written agreement, as may be amended from time to
time, which is provided by an Eligible Employee or Participant to Committee or its delegate and is
then accepted and approved by the said Committee or delegate. Each such Participation Agreement
will provide for the entire benefit to which such Participant is entitled under the Plan. The
Participation Agreement bearing the latest date of acceptance by the Committee or its delegate will
supersede all previous such Participation Agreements in their entirety and will govern the Eligible
Employee’s or Participant’s entitlement to benefits hereunder. The terms of any such Participation
Agreement may be different for a particular Participant and may provide additional benefits not set
forth in the Plan or may limit the benefits otherwise provided under the Plan; provided, however,
that any such additional benefits or benefit limitations must be agreed to by both the Committee or
its delegate and the Participant.

1.360     Plan means this Rockwell Automation Deferred Compensation Plan, which is evidenced by
this instrument and by the forms associated with the said instrument, as they may be amended from
time to time.

1.370     Plan Year means each twelve-month period ending on the last day of December.

1.380    Predecessor Plan means the deferred compensation arrangements (namely the Rockwell
International Corporation Deferred Compensation Plan and the Allen-Bradley Company, Inc. Deferred
Compensation Plan) which were in effect and applicable to certain of the Participants hereunder
immediately prior to the Effective Date of this Plan, as such arrangements were administered during
the period preceding such Effective Date, it being specifically understood and herein provided that
such Predecessor Plans form parts of this Plan. To the extent a Predecessor Plan remains in effect
with respect to a Participant, it will be governed by the terms of this Plan, except as otherwise
provided in Appendix A.

1.390     Pre-Retirement Survivor Benefit means the benefit set forth in Article VII.

1.400     Qualified Savings Plan means the Rockwell Automation Retirement Savings Plan for
Salaried Employees, as amended from time to time.

1.410    Retirement, Retire(s) or  Retired means, with respect to an Employee,
severance from employment with the Company and all of its Affiliates for any reason other than a
leave of absence, death or Disability on or after the attainment of his normal retirement or early

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retirement age. Notwithstanding the foregoing, a Participant shall not be considered to have
Retired until such Participant has had a Separation from Service.

1.420     Retirement Benefit means the benefit set forth in Article VI.

1.430     Salary Deferral Account means:

	(a)	 	the sum of all of a Participant’s Annual Salary Deferral Amounts,

	 
	(b)	 	adjusted by amounts credited or debited (gains or losses) thereto, in accordance with the
provisions of Section 4.020(b), as such provisions relate to such Salary Deferral Account, and

	 
	(c)	 	reduced by any amount debited thereon equal to the amount of all distributions made to the
Participant or his Beneficiary pursuant to this Plan which are related to such Salary Deferral
Account.

1.440     Separation from Service means a termination of employment with the Company and all
affiliates of the Company for any reason (including Retirement, death, Disability or other
termination) subject to the following:

          (a)     The employment relationship is treated as continuing intact while the
individual is on military leave, sick leave, or other bona fide leave of absence (such as
temporary employment by the government) if the period of such leave does not exceed six
months, or if longer, so long as the individual’s right to reemployment with the Company is
provided either by statute or by contract. If the period of leave exceeds six months and
the individual’s right to reemployment is not provided either by statute or by contract, the
employment relationship is deemed to terminate on the first date immediately following such
six-month period.

          (b)     Whether a termination of employment has occurred is determined based on the facts
and circumstances. Where an employee either actually or purportedly continues in the
capacity of an employee, such as through the execution of an employment agreement under
which the employee agrees to be available to perform services if requested, but the facts
and circumstances indicate that the employer and the employee did not intend for the
employee to provide more than insignificant services for the employer, an employee will be
treated as having a Separation from Service. For purposes of the preceding sentence, an
employer and employee will not be treated as having intended for the employee to provide
insignificant services where the employee continues to provide services as an employee at an
annual rate that is at least equal to 20 percent of the services rendered, on average,
during the immediately preceding three full calendar years of employment (or, if employed
less than three years, such lesser period). Where an employee continues to provide services
to a previous employer in a capacity other than as an employee, a Separation from Service
will not be deemed to have occurred if the former employee is providing services at an
annual rate that is 50 percent or more of the services rendered, on average, during the
immediately preceding three full calendar years of employment (or if employed less than
three years, such lesser period) and the annual remuneration for such services is 50 percent
or more of the annual remuneration earned during the final three full calendar years of
employment (or if less, such lesser period). For purposes of this definition, the annual
rate of providing services is determined based upon the measurement used to determine the
individual’s base compensation (for example, amounts of time required to earn salary, hourly wages,
or payments for specific projects).

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1.450     Short-Term Payout means the payout set forth in Section 5.010 of the Plan.

1.460     Termination Benefit means the benefit set forth in Article VIII.

1.470    Termination of Employment means the severing of a Participant’s employment with the
Company and all Affiliates, voluntarily or involuntarily, for any reason other than Retirement,
Disability, death or an authorized leave of absence. Notwithstanding the foregoing, a Participant
shall not be considered to have a Termination of Employment for purposes of this Plan unless the
Participant has had a Separation from Service.

1.480     Third-Party Administrator means an independent third party selected by the Trustee
and approved by the individual who, immediately prior to a Change of Control, was the Company’s
Chief Executive Officer or, if not so identified, the Company’s highest ranking officer (the
“Ex-CEO”).

1.490     Trust means the master trust established by agreement between the Company and the
Trustee, which will be a grantor trust.

1.500     Trustee means Wells Fargo Bank N.A., or any successor trustee of the Trust described
in Section 1.490 of this Plan.

1.510     Unforeseeable Financial Emergency means an unanticipated emergency that is caused by
an event beyond the control of the Participant which would result in severe financial hardship to
the Participant and which itself results from:

	(a)	 	a sudden and unexpected illness or accident of the Participant or the spouse or a dependent
(as defined in Code Section 152(a)) of the Participant,

	 
	(b)	 	a loss of the Participant’s property due to casualty, or

	 
	(c)	 	such other extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant, all as determined in the discretion of the Committee or its
delegate.

ARTICLE II: PARTICIPATION

2.010     Select Group Defined. Since participation in the Plan is intended to be
limited to a select group of management and highly compensated Employees, the Plan is only
available to Eligible Employees of the Company and its Affiliates.

2.020     Commencement of Participation. As a condition to initial participation in this
Plan, each Eligible Employee who wishes to participate in the Plan will be required to complete,
execute and return to the Committee or its delegate a Participation Agreement Form and a
Beneficiary Designation Form.

	(a)	 	Prior to January 1, 2005, in the case of such an Eligible Employee’s initial election to
become a Participant in a particular Plan Year, such documentation must be provided by the
Eligible Employee to the Committee or its delegate within sixty (60) days following

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	 	 	his being notified of his status as an Eligible Employee. Effective on and after January 1, 2005, such
documentation must be provided by the Eligible Employee to the Committee or its delegate
within thirty (30) days following his attaining the status of Eligible Employee.

	 
	(b)	 	If an Eligible Employee has met all enrollment requirements set forth in this Plan and
required by the Committee or its delegate (including returning all required documents to the
Committee or its delegate) in the time frames described in the above subsections, that
Eligible Employee will become a Plan Participant on the first day of the month following the
month in which he completes all such enrollment requirements, except that, if an individual
becomes an Eligible Employee during the last three months of a calendar year, that Eligible
Employee will become a Plan Participant on the first day of the next calendar year.

If an Eligible Employee fails to meet all such requirements within the period required, in
accordance with subsection (a) of this Section, that Eligible Employee will not be entitled to
participate in the Plan until the first day of a subsequent Plan Year following the delivery to and
acceptance by the Committee or its delegate of the required documents. In addition, the Committee
or its delegate will establish from time to time such other enrollment requirements as it
determines in its sole discretion are necessary.

2.030     Termination of Participation and/or Deferrals. If the Committee or its delegate
determines in good faith that a Participant no longer qualifies as a member of a select group of
management or highly compensated employees, as membership in such group is determined in accordance
with ERISA §§201(2), 301(a)(3) and 401(a)(1), the Participant shall be prevented from making future
deferral elections.

ARTICLE III: DEFERRAL AND COMPANY MATCH CREDITS

3.010     Base Annual Salary Deferral. Each Plan Participant will be permitted to make an
irrevocable election to defer (such Deferral Election to be made in whole percentages) receipt of
an amount equal to one percent (1%) through fifty percent (50%) of his Base Annual Salary.

	(a)	 	If an Eligible Employee first becomes a Participant after the first day of a Plan Year, the
Base Annual Salary Deferral will be for an amount equal to the percentage set forth above,
multiplied by a fraction, the numerator of which is the number of complete months remaining in
the Plan Year and the denominator of which is twelve (12), with the effect that the
Participant’s deferred Base Annual Salary would be limited to the amount of salary not yet
earned by the Participant as of the date the Participant submits a Participation Agreement
Form to the Company or an Affiliate for acceptance.

	 
	(b)	 	For each succeeding Plan Year, a Participant, will be permitted, in his sole discretion, to
make a similar irrevocable election for the following Plan Year (and such other elections
as the Committee or its delegate deems necessary or desirable) and must deliver such
Deferral Election to the Company or an Affiliate on a new Deferral Election Form before
December 1st of the Plan Year immediately preceding the Plan Year for which the

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	 	 	deferral is intended. If no such Deferral Election Form is timely delivered for a Plan Year,
the Annual Deferral Amount will be zero for that Plan Year.

	 
	(c)	 	During each Plan Year, the Base Annual Salary Deferral Amount will be withheld from each
regularly scheduled Base Annual Salary payroll in equal amounts, as adjusted from time to time
for increases and decreases in Base Annual Salary.

3.020     Incentive Compensation Deferral. In addition to the Base Annual Salary deferral
described in the preceding Section, each Participant will be permitted to irrevocably elect to
defer receipt of an amount equal to one percent (1%) through one hundred percent (100%), such
Deferral Election to be made in whole percentages, of the amount of any Incentive Compensation
which he might be awarded. In general, such Deferral Election will be made on a Deferral Election
Form and will apply to Incentive Compensation to which the Participant might be entitled for the
fiscal year immediately following such Deferral Election.

The Incentive Compensation Deferral Amount will be withheld at the time the said Incentive
Compensation are or otherwise would be paid to the Participant, whether or not this occurs during
the Plan Year itself.

3.030     Annual Company Match Amount. A Participant’s Annual Company Match Amount for any
Plan Year will be equal to the amount that the Company would have contributed to the Participant’s
account in the Qualified Savings Plan as a matching contribution or other employer contribution to
that Plan or would have credited to such Participant’s account in the Non-Qualified Savings Plan as
a matching credit or other similar credit, but for the fact that the Participant elected to defer
Base Annual Salary pursuant to the provisions of Section 3.010 of this Plan. The Annual Company
Match Amount which is attributable to a Participant’s Annual Salary Deferral Amount for a
particular Plan Year will be calculated in the first month of the immediately succeeding Plan Year
and will be credited to the Participant’s Company Match Account no later than January
31st of such succeeding Plan Year.

	(a)	 	In the event of a Participant’s Retirement or death, the Participant’s Company Match Account
will be credited with the Annual Company Match Amount for the Plan Year in which he Retires or
dies.

	 
	(b)	 	If a Participant is not employed by the Company or an Affiliate as of the last day of a Plan
Year for any reason other than the Participant’s Retirement or death, the Annual Company Match
Amount for such Plan Year will be zero.

Notwithstanding the foregoing, the Company Match Amount shall be reduced for any Plan Year by the
amount necessary to comply with the final regulations issued under Code Section 409A relating to
the coordination of deferral elections under qualified plan with the benefits provided under
nonqualified plans.

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ARTICLE IV: PLAN ACCOUNTS

4.010     Vesting.

	(a)	 	A Participant will have a one hundred percent (100%) vested interest in his Deferral Account
and in his Company Match Account.

	 
	(b)	 	Notwithstanding anything to the contrary contained in this Plan from time to time, in the
event of a Change of Control, a Participant’s Deferral Account, Company March Account and any
other interest of his under this Plan at the time of the occurrence of the Change of Control
will remain one hundred percent (100%) vested, if such interest is already 100% vested at that
time and, if such interest is not one hundred percent (100%) vested at that time, will
immediately become one hundred (100%) vested.

4.020     Crediting/Debiting of Account Balances. In accordance with, and subject to, the
rules and procedures that are established from time to time by the Committee or its delegate, in
its sole discretion, amounts will be credited or debited to a Participant’s Account Balance in the
manner set forth in the provisions of this Section; provided, however, that the said provisions
will apply individually to, and be administered separately for, on the one hand, the Participant’s
Salary Deferral and Company Match Accounts and, on the other hand, his Incentive Compensation
Deferral Account, with the intention that that the Participant will be permitted to make separate
elections with respect to each. Amounts earned and vested hereunder prior to January 1, 2005, and
the earnings on such amounts shall be accounted for separately under
the Plan.

	(a)	 	Allocation to Measurement Funds. A Participant, in connection with his initial
Deferral Election in accordance with Section 3.010 or 3.020 above, will be permitted to also
elect to have one or more Measurement Funds used to determine the amounts to be credited to
his Account Balance and his election will continue to be in effect thereafter, unless it
should be changed in accordance with subsection (c).

	 
	(b)	 	Crediting or Debiting Method. The performance (either positive or negative) of each
elected Measurement Fund will be determined by the Committee or its delegate, based on the
performance of the Measurement Funds themselves. A Participant’s Account Balance will be
credited or debited on a daily basis based on the performance of each Measurement Fund
selected by the Participant, as determined by the Committee or its delegate in its sole
discretion, as though:

	 	(1)	 	a Participant’s Account Balance were actually invested in the Measurement
Fund(s) selected by the Participant as of the close of business on any business day, at
the closing price on that day;

	 
	 	(2)	 	the portion of the Annual Deferral Amount that was actually deferred during any
calendar quarter were invested in the Measurement Fund(s) selected by the Participant,
in the percentages applicable on such day, no later than the close of business on the
first business day after the day on which such amounts are actually deferred from the
Participant’s Base Annual Salary through reductions in his payroll, at the closing
price on such date; and

12

 

	 	(3)	 	any distribution made to a Participant that decreases such Participant’s
Account Balance ceased being invested in the Measurement Fund(s), in the applicable
percentages, no earlier than one business day prior to the distribution, at the closing
price on such date.

	(c)	 	Transfers among Measurement Funds. The Participant will be permitted to change, on a
daily basis, any previous Measurement Fund election or elections he has made with regard to his
Account Balance. The elections and changes to such elections which a Participant makes pursuant to
this subsection will be made by means of any method (including any available telephonic or
electronic method which is acceptable to the Committee or its delegate at the time the election or
change is made by the Participant), and may be made at any time and will be effective as of the New
York Stock Exchange closing immediately following the making of that election or change; provided,
however, if it is determined by the Committee or its delegate that an investment election made by a
Participant is invalid or defective, the Participant’s election, until duly corrected by him, will
be deemed to have been made in favor of whatever short-term, money market vehicle is available
under the Plan at that time.

	 
	(d)	 	No Actual Investment. Notwithstanding any other provision of this Plan that may be
interpreted to the contrary, the Measurement Funds are to be used for measurement purposes only,
and a Participant’s election of any such Measurement Fund, the allocation to his Account Balance
thereto, the calculation of additional amounts and the crediting or debiting of such amounts to a
Participant’s Account Balance will not be considered or construed in any manner as an actual
investment of his Account Balance in any such Measurement Fund. In the event that the Company or
the Trustee, in its own discretion, decides to invest funds in any or all of the Measurement Funds,
no Participant will have any rights in or to such investments themselves. Without limiting the
foregoing, a Participant’s Account Balance will at all times be a bookkeeping entry only and will
not represent any investment made on his behalf by the Company or the Trust. The Participant will
at all times remain an unsecured creditor of the Company.

	 
	(e)	 	Company Reservation of Rights. Consistent with the preceding sentence, nothing to the
contrary in this Plan or any of its forms or communication material, nor in any document associated
with the Trust, should be interpreted or understood to provide Participants or their Beneficiaries
with any current, direct rights with respect to the assets held by the Trustee in the Trust.

4.030     Amounts Credited Pursuant to Predecessor Plans. Notwithstanding the provisions of
Section 4.020, in the case of amounts which were credited to any Predecessor Plan prior to the
Effective Date as incentive compensation plan deferrals, such amounts will be separately accounted
for hereunder and will continue to be adjusted and administered (specifically including
application, on a quarterly basis, of the Interest Rate to a Participant’s account in such
Predecessor Plan) in the manner previously in effect under such Predecessor Plan and as set forth
in Appendix A; provided, however, that, unless otherwise provided in the said Appendix A,
administration of such Predecessor Plan deferrals will be in accordance with the provisions of this
Plan as they apply to amounts deferred after the Effective Date.

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4.040     FICA and Other Taxes.

	(a)	 	Annual Deferral Amounts. For each Plan Year in which an Annual Deferral Amount is
being withheld from a Participant, the Company or any Affiliate employing the Participant will
withhold from that portion of the Participant’s Base Annual Salary and Incentive Compensation
which is not being deferred the Participant’s share of FICA and other employment taxes on such
Annual Deferral Amount.

	 
	(b)	 	Company Match Amounts. When a participant becomes vested in a portion of his Company
Match Account, the Company or any Affiliate employing the Participant will withhold from the
Participant’s Base Annual Salary and/or Incentive compensation that is not deferred the
Participant’s share of FICA and other employment taxes.

	 
	(c)	 	Distributions. The Company or any Affiliate employing the Participant, or the
Trustee of the Trust, will withhold from any payments made to a Participant under this Plan
all federal, state and local income, employment and other taxes required to be withheld in
connection with such payments, in amounts and in a manner to be determined in the sole
discretion of the Company and the trustee of the Trust.

ARTICLE V: SHORT-TERM PAYOUTS AND WITHDRAWALS

5.010     Short-Term Payouts. Effective with respect to Account Balances associated with
amounts deferred or credited hereunder prior to January 1, 2005 and in connection with each
election to defer an Annual Deferral Amount, a Participant may irrevocably elect to receive a
future Short-Term Payout from the Plan with respect to such Annual Deferral Amount.

	(a)	 	Subject to the Deduction Limitation, the said Short-Term Payout will be a lump sum payment in
an amount that is equal to the Annual Deferral Amount, as adjusted for amounts credited or
debited in the manner provided in Section 4.020 on that amount, determined at the time that
the Short-Term Payout becomes payable (rather than at the date of a Termination of
Employment).

	 
	(b)	 	Subject to the Deduction Limitation and the other terms and conditions of this Plan, each
Short-Term Payout elected will be paid out during a sixty (60) day period commencing
immediately after the last day of any Plan Year designated by the Participant that is at least
three Plan Years after the Plan Year in which the Annual Deferral Amount is actually deferred.
By way of example, if a three-year Short-Term Payout is elected for Annual Deferral Amounts
that are deferred in the Plan Year commencing January 1, 2001, the three-year Short-Term
Payout would become payable during a sixty (60) day period commencing January 1, 2005.

	 
	(c)	 	Should an event occur that triggers a benefit under Article VI or VII, any Annual Deferral
Amount, plus amounts credited or debited thereon, that is subject to a Short-Term Payout
election under this Section will not be paid in accordance with this Section, but will instead
be paid in accordance with the other applicable Article.

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	(d)	 	Notwithstanding any other provision in this Plan to the contrary, the Short-Term Payout
described in this Section will only be available with respect to Annual Deferral Amounts which
are deferred after the Effective Date and will specifically not be available to amounts which
were deferred by a Participant pursuant to the provisions of a Predecessor Plan.

The provisions of this Section will not be applicable with respect to amounts deferred or credited
hereunder after December 31, 2004

5.020     Withdrawal for Unforeseeable Financial Emergencies. In the event that any
Participant should encounter an Unforeseeable Financial Emergency, such Participant may:

	(a)	 	petition the Committee or its delegate to suspend any deferrals required to be made on his
behalf, and/or

	 
	(b)	 	petition the Committee or its delegate to permit him to receive a partial or full payout from
the Plan. Such a payout will not exceed the lesser of —

	 	(1)	 	the Participant’s Account Balance, calculated as if the Participant were
receiving a Termination Benefit, or

	 
	 	(2)	 	the amount reasonably needed to satisfy the Unforeseeable Financial Emergency
(which may include amounts necessary to pay any Federal, state or local income taxes or
penalties reasonably anticipated to result from the distribution).

If, subject to the sole discretion of the Committee or its delegate, the petition for a suspension
and/or payout is approved, suspension will take effect on the date of approval and any payout will
be made within sixty (60) days of the date of approval. The payment of any amount under this
Section will not be subject to the Deduction Limitation.

5.030     Withdrawal Election. With respect to Account Balances hereunder associated with Plan
Year’s prior to January 1, 2005, a Participant (or, after a Participant’s death, the Participant’s
Beneficiary) may elect, at any time, to withdraw some or all of the Participant’s Account Balance,
even though the Participant (or the Participant’s Beneficiary) has not encountered an Unforeseeable
Financial Emergency at the time of such withdrawal, but the withdrawal will be subject to the
provisions of this Section.

	(a)	 	The amount of the withdrawal will be subject to imposition of a withdrawal penalty equal to
ten percent (10%) of such amount (the net amount being referred to in this Section as the
“Withdrawal Amount”).

	 
	(b)	 	Such an election may be made at any time, before or after the Participant’s Retirement,
Disability, death or Termination of Employment, and whether or not the Participant (or
Beneficiary) is in the process of being paid pursuant to an installment payment schedule.

The Participant (or his Beneficiary) will be required to make this election by giving the Committee
or its delegate advance written notice of the election in a form determined from time
to time by the Committee or its delegate. Effective January 1, 2005, a withdrawal election may

15

 

only be made pursuant to this Section 5.030 at a time when the Participant has no deferral
elections in effect under Sections 3.010 or 3.020 of this Plan. The Participant (or his
Beneficiary) will be paid the Withdrawal Amount within sixty (60) days of his election. Once a
Withdrawal Amount has been paid, the Participant’s participation in the Plan will be suspended and
the Participant will not be eligible to elect Base Annual Salary Deferrals and Incentive
Compensation Deferrals, nor will he be eligible to have Annual Company Match Amounts credited to
his Company Match Account, during the three-year period immediately following payment of the
Withdrawal amount; provided, however, that such Participant will be eligible to have a pro rata
portion of the Company Match Amount attributable to the portion of the Plan Year immediately prior
to such a withdrawal credited to his Company Match Account. The payment of this Withdrawal Amount
will not be subject to the Deduction Limitation.

5.040     Inclusion in Income Under Section 409A. Notwithstanding any other provision of this
Plan, in the event this Plan fails to satisfy the requirements of Code Section 409A and regulations
thereunder with respect to any Participant, there shall be distributed to such Participant as
promptly as possible after the Committee becomes aware of such fact of noncompliance such portion
of the Participant’s Account balance hereunder as is included in income as a result of the failure
to comply, but no more.

ARTICLE VI: RETIREMENT BENEFITS

6.010     Retirement Benefit. Subject to the Deduction Limitation, a Participant who
Retires will receive, as a Retirement Benefit, his Account Balance.

6.020     Payment of Retirement Benefit. A Participant, in connection with his commencement of
participation in the Plan, may elect in his Participation Agreement to receive the Retirement
Benefit in a lump sum or pursuant to an Annual Installment Method of periods of from two (2)
through fifteen (15) years. Subject to the provisions of Section 6.025, a Participant may change
any election he has previously made to a different payout period permitted hereunder, but only one
such a change may be made with respect to any single election. Such change will be accomplished
by the Participant submitting a new Participation Agreement to the Committee or its delegate, but
such change will not be valid, unless it has been submitted by the Participant and accepted by the
Committee or its delegate (in the Committee’s or delegate’s discretion) at least one (1) year prior
to the Participant’s Retirement. The Participation Agreement most recently accepted by the
Committee or its delegate shall govern the payout of the Retirement Benefit. If a Participant does
not make any election with respect to the payment of the Retirement Benefit, then such benefit
shall be payable in a lump sum. Any payment made shall be subject to the Deduction Limitation.

A lump sum payment may not be made, nor may installment payments commence herefrom, earlier than
July 1st of the Plan Year following the Plan Year during which a Participant Retires.

6.025     Changes to Retirement Benefit Payment Methods.

	(a)	 	A Participant may change any election he has previously made pursuant to Section 6.020,
but; provided, however, that with respect to amounts deferred or credited hereunder on or
after January 1, 2005, any such change must:

16

 

	 	(1)	 	not result in the acceleration of payments;

	 
	 	(2)	 	not be effective for 12 months after such change is made;

	 
	 	(3)	 	result in the deferral of payments with respect to which the election is changed
for a period of at least 5 years;

	 
	 	(4)	 	not be made less than 12 months prior to the first scheduled payment.

	(b)	 	Notwithstanding subsection 6.020(a), a Participant may make a new election applicable to
such Participant’s Account during the transition period specified in the final regulations
issued under Code Section 409A, so long as such election satisfies the requirements for new
elections contained in the final regulations issued under Code Section 409A.

6.030     Death Prior to Completion of Retirement Benefit. If a Participant dies after
Retirement but before the Retirement Benefit is paid in full, the Participant’s unpaid Retirement
Benefit payments shall continue and shall be paid to the Participant’s Beneficiary over the
remaining number of years and in the same amounts as that benefit would have been paid to the
Participant had the Participant survived.

ARTICLE VII: PRE-RETIREMENT SURVIVOR BENEFIT

7.010     Pre-Retirement Survivor Benefit. Subject to the Deduction Limitation, the
Participant’s Beneficiary shall receive a Pre-Retirement Survivor Benefit equal to the
Participant’s Account Balance if the Participant dies before he Retires, experiences a Termination
of Employment or suffers a Disability.

7.020     Payment of Pre-Retirement Survivor Benefit.

	(a)	 	A Participant, in connection with his commencement of participation in the Plan, may
elect in his Participation Agreement whether the Pre-Retirement Survivor Benefit should be
received by his Beneficiary in a lump sum or pursuant to an Annual Installment Method of
periods of from 2 through 15 years. The Participant may annually change this election to an
allowable alternative payout period by submitting a new Participation Agreement to the
Committee or its delegate provided that having such change must, with respect to amounts
deferred or credited hereunder on or after January 1, 2005:

	 	(1)	 	not result in the acceleration of payments;

	 
	 	(2)	 	not be effective for 12 months after such change is made;

	 
	 	(3)	 	result in the deferral of payments with respect to which the election is
changed for a period of at least 5 years; and

	 
	 	(4)	 	not be made less than 12 months prior to the first scheduled payment.

17

 

	(b)	 	Notwithstanding subsection 7.020(a), a Participant may make a new election applicable to
such Participant’s Account during the transition period specified in the final regulations
issued under Code Section 409A, so long as such election satisfies the requirements for new
elections contained in the final regulations issued under Code Section 409A.

	 
	(c)	 	The Beneficiary Designation Form most recently filed with the Committee or its delegate
prior to the Participant’s death will govern the payout of the Participant’s Pre-Retirement
Survivor Benefit. If a Participant does not make any election with respect to the payment
of the Pre-Retirement Survivor Benefit, then such benefit will be paid in a lump sum.
Despite the foregoing, if the Participant’s Account Balance at the time of his death is less
than $25,000, payment of the Pre-Retirement Survivor Benefit will be made in a lump sum.
The lump sum payment will be made no later than sixty (60) days after the last day of the
Plan Year in which the Committee or its delegate is provided with proof that is satisfactory
to the Committee or its delegate of the Participant’s death. Any payment made will be
subject to the Deduction Limitation.

ARTICLE VIII: TERMINATION BENEFIT

8.010     Termination Benefit. Subject to the Deduction Limitation, the Participant will
receive a Termination Benefit, which will be equal to the Participant’s Account Balance if a
Participant experiences a Termination of Employment prior to his Retirement, death or Disability.

8.020     Payment of Termination Benefit. The form of payment of a Participant’s Account
Balance, if such payment is due to the Participant’s Termination of Employment will in all cases be
a lump sum. A lump sum payment may not be made, nor any installment payments commence herefrom,
earlier than July 1 of the Plan Year following the Plan Year during which the Participant
terminates.

ARTICLE IX: DISABILITY WAIVER AND BENEFIT

9.010     Continued Eligibility; Disability Benefit. A Participant suffering a Disability
will receive a Disability Benefit equal to his Account Balance at the time of the Disability
determination; provided, however, that should the Participant otherwise have been eligible to
Retire, he or she will be paid in accordance with Article VI. The Disability Benefit will be paid
in a lump sum within sixty (60) days of the Disability determination. Any payment made will be
subject to the Deduction Limitation.

ARTICLE X: BENEFICIARY DESIGNATION

10.010     Beneficiary. Each Participant will have the right, at any time, to designate
his Beneficiary or Beneficiaries (both primary and contingent) to receive any benefits payable
under the Plan to a beneficiary upon the death of a Participant. The Beneficiary designated under
this Plan may be the same as or different from the Beneficiary designation under any other plan of
an Employer in which the Participant participates.

18

 

10.020     Beneficiary Designation or Change of Designation. A Participant will be permitted
to designate his Beneficiary by completing and signing the Beneficiary Designation Form, and
returning it to the Committee or its delegate. A Participant will have the right to change a
Beneficiary by completing, signing and otherwise complying with the terms of the Beneficiary
Designation Form and the Committee’s or its delegate’s rules and procedures, as in effect from time
to time. Upon the acceptance by the Committee or its delegate of a new Beneficiary Designation
Form, all Beneficiary designations previously filed will be canceled. The Committee or its
delegate will be entitled to rely on the last Beneficiary Designation Form filed by the Participant
and accepted by the Committee or its delegate prior to the Participant’s death.

10.030    Spousal Consent Required. If a Participant names someone other than his spouse as a
Beneficiary, a spousal consent, in the form designated by the Committee or its delegate, must be
signed by that Participant’s spouse and returned to the Committee or its delegate.

10.040    Acknowledgment. No designation or change in designation of a Beneficiary will be
effective until received and acknowledged in writing by the Committee or its delegate.

10.050    Absence of Valid Beneficiary Designation. If a Participant fails to designate a
Beneficiary as provided in the preceding Sections or, if all designated Beneficiaries predecease
the Participant or die prior to complete distribution of the Participant’s benefits, then the
Participant’s designated Beneficiary will be deemed to be his surviving spouse. If the Participant
has no surviving spouse, the benefits remaining under the Plan to be paid to a Beneficiary will be
payable to the executor or personal representative of the Participant’s estate.

10.060    Doubt as to Beneficiary. If the Committee or its delegate has any doubt as to the
proper Beneficiary to receive payments pursuant to this Plan, the Committee or its delegate will
have the right, exercisable in its discretion, to withhold such payments until this matter is
resolved to the Committee’s or the delegate’s satisfaction.

10.070    Discharge of Obligations. The payment of benefits under the Plan to a Beneficiary
will fully and completely discharge the Company and all of its Affiliates and the Committee from
all further obligations under this Plan with respect to the Participant, and that Participant’s
participation in this Plan will terminate upon such full payment of benefits.

ARTICLE XI: LEAVE OF ABSENCE

11.010    Paid Leave of Absence. If a Participant is authorized by the Company or the
Affiliate employing the Participant for any reason to take a paid leave of absence, the Participant
will continue to be considered to be an Employee and the Annual Deferral Amount will continue to be
withheld during such paid leave of absence.

11.020    Unpaid Leave of Absence. If a Participant is authorized by the Company or the
Affiliate employing the Participant to take an unpaid leave of absence, the Participant will
continue to be considered to be an Employee and the Participant will be excused from making
deferrals until the earlier of the date the leave of absence expires or the Participant returns to
a paid employment status. Upon such expiration or return, deferrals will resume for the remaining
portion of the Plan Year in which the expiration or return occurs, based on the deferral election,

19

 

if any, made for that Plan Year. If no election was made for that Plan Year, no deferral will be
withheld.

ARTICLE XII: TERMINATION, AMENDMENT OR MODIFICATION

12.010    Termination. Although the Company and each Affiliate anticipates that it will
continue the Plan for an indefinite period of time, there is no guarantee that the Company or any
such Affiliate will continue the Plan or will not terminate the Plan at any time in the future.
Accordingly, the Company reserves the right to discontinue sponsorship of the Plan and/or to
terminate the Plan at any time with respect to any or all of its participating Employees, by action
of the Board of Directors.

If this Plan is terminated, no additional deferrals or contributions shall be credited to any
Participant Account hereunder. Following Plan termination, Participants’ Accounts shall be paid at
such time and in such form as provided under the Plan. Notwithstanding the preceding sentence,
either at the time of termination or on a subsequent date the Company may, in its discretion,
determine to distribute the then existing Account balances of Participants and Beneficiaries and,
following such distribution, there shall be no further obligation to any Participant or Beneficiary
under this Plan; provided, however, that the authority granted to the Company under this sentence
shall be implemented only to the extent permissible under Code Section 409A and regulations and
other guidance issued by the Internal Revenue Service interpreting the provisions of that Section.

12.020  Amendment. The Company may, at any time, amend or modify the Plan in whole or in
part by action of the Board of Directors; provided, however, that:

	(a)	 	no amendment or modification shall be effective to decrease or restrict the value of a
Participant’s Account Balance in existence at the time the amendment or modification is made,
calculated as if the Participant had experienced a Termination of Employment as of the
effective date of the amendment or modification or, if the amendment or modification occurs
after the date upon which the Participant was eligible to Retire, the Participant had Retired
as of the effective date of the amendment or modification;

	 
	(b)	 	no amendment or modification of this Section 12.020 shall be effective; and

	 
	(c)	 	the amendment or modification of the Plan shall not affect any Participant or Beneficiary who
has become entitled to the payment of benefits under the Plan as of the date of the amendment
or modification.

Notwithstanding the foregoing, the Company may make any amendment it deems necessary or desirable
for purposes of compliance with the requirements of Code Section 409A and regulations thereunder.

12.030  Amendment of Individual Participation Agreement Forms. Despite the provisions of
Sections 12.010 and 12.020, if a Participant’s Participation Agreement Form contains benefits or
limitations that are not contained in this Plan document, the Company or Affiliate may only amend
or terminate such provisions with the consent of the Participant.

20

 

12.040  Effect of Payment. The full payment of all applicable benefits hereunder shall
completely discharge all obligations to a Participant and his Beneficiaries under this Plan.

ARTICLE XIII: ADMINISTRATION

13.010  Committee Duties. Except as otherwise provided in this Article, this Plan will
be administered by the Committee and its delegates. Members of the Committee may be Participants
under this Plan. The Committee will also have the discretion and authority to:

	(a)	 	make, amend, interpret, and enforce all appropriate rules and regulations for the
administration of this Plan, and

	 
	(b)	 	decide or resolve any and all questions including interpretations of this Plan, as may arise
in connection with the Plan.

Any individual serving on the Committee who is a Participant will not be permitted to vote or act
on any matter relating solely to himself or herself. When making a determination or calculation,
the Committee will be entitled to rely on information furnished by a Participant or the Company.

13.020  Administration Upon Change of Control. Notwithstanding any other provision of this
Plan to the contrary, upon and after the occurrence of a Change of Control, the Plan will be
administered by the Third-Party Administrator. The Third-Party Administrator so selected will have
the discretionary power to determine all questions arising in connection with the administration of
the Plan and the interpretation of the Plan and Trust including, but not limited, to benefit
entitlement determinations; provided, however, upon and after the occurrence of a Change of
Control, such administrator will have no power to direct the investment of Plan or Trust assets or
select any investment manager or custodial firm for the Plan or Trust.

Upon and after the occurrence of a Change of Control, the Company will be required to:

	(a)	 	pay all reasonable administrative expenses and fees of the Third-Party Administrator;

	 
	(b)	 	indemnify the Third-Party Administrator against any costs, expenses and liabilities
including, without limitation, attorney’s fees and expenses arising in connection with the
performance of such administrator hereunder, except with respect to matters resulting from the
gross negligence or willful misconduct of the said administrator or its employees or agents;
and

	 
	(c)	 	supply full and timely information to the Third-Party Administrator on all matters relating
to the Plan, the Trust, the Participants and their Beneficiaries, the Account Balances of the
Participants, the date of circumstances of the Retirement, Disability, death or Termination of
Employment of the Participants, and such other pertinent information as the Third-Party
Administrator may reasonably require.

Upon and after a Change of Control, the Third-Party Administrator may not be terminated by the
Company and may only be terminated (and a replacement appointed) by the Trustee, but only with the
approval of the Ex-CEO.

21

 

13.030  Agents. In the administration of this Plan, the Committee may, from time to time,
employ agents and delegate to them such administrative duties as it sees fit (including acting
through a duly appointed representative) and may from time to time consult with counsel who may be
counsel to any Employer. The Company’s Vice President, Compensation will at all times, unless
otherwise determined by the Committee, be deemed to be and shall be specifically referred to herein
as the Committee’s delegate for all purposes herein.

13.040  Binding Effect of Decisions. The decision or action of the Committee or its
delegate with respect to any question arising out of or in connection with the administration,
interpretation and application of the Plan and the rules and regulations promulgated hereunder will
be final and conclusive and binding upon all persons having any interest in the Plan.

13.050  Indemnity of Committee. The Company and its Affiliates shall indemnify and hold
harmless the members of the Committee, any Employee to whom the duties of the Committee may be
delegated, and the Committee or its delegate against any and all claims, losses, damages, expenses
or liabilities arising from any action or failure to act with respect to this Plan, except in the
case of willful misconduct by the Committee, any of its members, or such Employee.

13.060  Employer Information. To enable the Committee and its delegates to perform their
functions, the Company will supply full and timely information to the Committee and delegates on
all matters relating to the compensation of its Participants, the date and circumstances of the
Retirement, Disability, death or circumstances of the Retirement, Disability, death or Termination
of Employment of its Participants, and such other pertinent information as the Committee or its
delegate may reasonably require.

ARTICLE XIV: OTHER BENEFITS AND AGREEMENTS

14.010  Coordination with Other Benefits. The benefits provided for a Participant and
Participant’s Beneficiary under the Plan are in addition to any other benefits available to such
Participant under any other plan or program for employees of the Company and its Affiliates. The
Plan will supplement and will not supersede, modify or amend any other such plan or program except
as may otherwise be expressly provided.

ARTICLE XV: CLAIMS PROCEDURE

15.010  Presentation of Claim. Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as a “Claimant”) may deliver
to the Committee or its delegate a written claim for a determination with respect to the amounts
distributable to such Claimant from the Plan. If such a claim relates to the contents of a notice
received by the Claimant, the claim must be made within sixty (60) days after such notice was
received by the Claimant. All other claims must be made within one hundred and eighty (180) days of
the date on which the event that caused the claim to arise occurred. The claim must state with
particularity the determination desired by the Claimant.

15.020  Notification of Decision. The Committee or its delegate will consider a Claimant’s
claim within a reasonable time, and will notify the Claimant in writing:

22

 

	(a)	 	that the Claimant’s requested determination has been made, and that the claim has been
allowed in full; or

	 
	(b)	 	that the Committee or its delegate has reached a conclusion contrary, in whole or in part, to
the Claimant’s requested determination, and such notice must set forth in a manner calculated
to be understood by the Claimant;

	 
	(c)	 	the specific reason(s) for the denial of the claim, or any part of it;

	 	(1)	 	specific reference(s) to pertinent provisions of the Plan upon which such
denial was based;

	 
	 	(2)	 	a description of any additional material or information necessary for the
Claimant to perfect the claim, and an explanation of why such material or information
is necessary; and

	 
	 	(3)	 	an explanation of the claim review procedure set forth in Section 15.030 below.

15.030  Review of a Denied Claim. Within sixty (60) days after receiving a notice from the
Committee or its delegate that a claim has been denied, in whole or in part, a Claimant (or the
Claimant’s duly authorized representative) may file with the Committee or its delegate a written
request for a review of the denial of the claim. Thereafter, but not later than thirty (30) days
after the review procedure began, the Claimant (or the Claimant’s duly authorized representative):

	(a)	 	may review pertinent documents;

	 
	(b)	 	may submit written comments or other documents; and/or

	 
	(c)	 	may request a hearing, which the Committee or its delegate, in its sole discretion, may
grant.

15.040  Decision on Review. The Committee or its delegate will render any decision on
review promptly, and not later than 60 days after the filing of a written request for review of the
denial, unless a hearing is held or other special circumstances require additional time, in which
case the Committee’s or its delegate’s decision must be rendered within one hundred and twenty (120) days
after such date. Such decision must be written in a manner calculated to be understood by the
Claimant, and it must contain:

	(a)	 	specific reasons for the decision;

	 
	(b)	 	specific reference(s) to the pertinent Plan provisions upon which the decision was based; and

	 
	(c)	 	such other matters as the Committee or its delegate deems relevant.

23

 

15.050  Legal Action. A Claimant’s compliance with the foregoing provisions of this Article
14 is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to
any claim for benefits under this Plan.

ARTICLE XVI: TRUST

16.010  Establishment of the Trust. The Company shall establish the Trust (which may
be referred to herein as a “Rabbi Trust”). The Trust shall become irrevocable upon a Change of
Control (to the extent not then irrevocable). After the Trust has become irrevocable with respect
to the Plan, except as otherwise provided in Section 12 of the Trust, the Trust shall remain
irrevocable with respect to the Plan until all benefits due under this Plan and benefits and
account balances due to participants and beneficiaries under any other plan covered by the trust
have been paid in full. Upon establishment of the Trust, the Company shall provide for funding of
the Trust in accordance with the terms of the Trust.

16.020  Interrelationship of the Plan and the Trust. The provisions of the Plan and each
Participant’s Participation Agreement Form will govern the rights of a Participant to receive
distributions pursuant to the Plan. The provisions of the Trust will govern the rights of the
Company and its Affiliates, Participants and the creditors of the Company and its Affiliates to the
assets transferred to the Trust. The Company and each of its Affiliates employing any Participant
will at all times remain liable to carry out their obligations under the Plan.

16.030  Distributions From the Trust. The Company’s and each of its Affiliate’s obligations
under the Plan may be satisfied with Trust assets distributed pursuant to the terms of the Trust,
and any such distribution will reduce their obligations under this Plan.

16.040  Rabbi Trust. The Rabbi Trust shall:

	(a)	 	be a non-qualified grantor trust which satisfies in all material respects the requirement of
Revenue Procedure 92-64, 1992-2 CB 122 (or any successor Revenue Procedure or other applicable
authority);

	 
	(b)	 	become irrevocable upon a Change of Control (to the extent not then irrevocable); and

	 
	(c)	 	provide that any successor trustee shall be a bank trust department or other party that may
be granted corporate trustee powers under state law.

ARTICLE XVII: MISCELLANEOUS

17.010  Status of Plan. The Plan is intended to be a plan that is not qualified within
the meaning of Code §401(a) and that “is unfunded and is maintained by an employer primarily for
the purpose of providing deferred compensation for a select group of management or highly
compensated employee” within the meaning of ERISA §§201(2), 301(a)(3) and 401(a)(1). The Plan will
be administered and interpreted to the extent possible in a manner consistent with that intent.

24

 

17.020  Unsecured General Creditor. Participants and their Beneficiaries, heirs, successors
and assigns shall have no legal or equitable rights, interests or claims in any property or assets
of the Company or its Affiliates. For purposes of the payment of benefits under this Plan, any and
all of the Company’s or Affiliate’s assets shall be, and remain, the general, unpledged
unrestricted assets of the Company or Affiliate. The Company or Affiliate’s obligation under the
Plan shall be merely that of an unfunded and unsecured promise to pay money in the future.

17.030  Company Liability. The Company’s or an Affiliate’s liability for the payment of
benefits will be defined only by the Plan and the Participant’s specific Participation Agreement
Form. The Company and its Affiliates will have no obligation to a Participant under the Plan,
except as expressly provided in the Plan and the Participant’s Participation Agreement Form.

17.040  Nonassignability. Neither a Participant nor any other person will have any right to
commute, sell, assign, transfer, pledge, anticipate, mortgage or otherwise encumber, transfer,
hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are expressly declared to be,
unassignable and non-transferable. No part of the amounts payable will, prior to actual payment,
be subject to seizure, attachment, garnishment or sequestration for the payment of any debts,
judgments, alimony or separate maintenance owed by a Participant or any other person, be
transferable by operation of law in the event of a Participant’s or any other person’s bankruptcy
or insolvency or be transferable to a spouse as a result of a property settlement or otherwise.

17.050  Not a Contract of Employment. The terms and conditions of this Plan shall not be
deemed to constitute a contract of employment between the Company or any of its Affiliates and the
Participant. Such employment is hereby acknowledged to be an “at will” employment relationship
that can be terminated at any time for any reason, or no reason, with or without cause, and with or
without notice, unless expressly provided in a written employment agreement. Nothing in this Plan
shall be deemed to give a Participant the right to be retained in the service of any the Company or
an Affiliate or to interfere with the right of the Company or an Affiliate to discipline or
discharge the Participant at any time.

17.060  Furnishing Information. A Participant or his Beneficiary will cooperate with the
Committee or its delegate by furnishing any and all information requested by the Committee or its
delegate and take such other actions as may be requested in order to facilitate the administration
of the Plan and the payments of benefits hereunder, including but not limited to taking such
physical examinations as the Committee or its delegate may deem necessary.

17.070  Terms. Whenever any words are used herein in the masculine, they should be
construed as though they were in the feminine in all cases where they would so apply; and whenever
any words are used herein in the singular or in the plural, they should be construed as though they
were used in the plural or the singular, as the case may be, in all cases where they would so
apply.

17.080  Captions. The captions of the articles, sections and paragraphs of this Plan are
for convenience only and do not control or affect the meaning or construction of any of its
provisions.

25

 

17.090  Governing Law. Subject to ERISA, the provisions of this Plan shall be construed and
interpreted according to the laws of the State of Wisconsin.

17.100  Notice. Any notice or filing required or permitted to be given to the Committee
under this Plan shall be sufficient if in writing and hand-delivered, or sent by registered or
certified mail, to the address below:

Vice President, Compensation

Rockwell Automation, Inc.

Firstar Center

777 East Wisconsin Avenue

Milwaukee, Wisconsin 53202

Such notice will be deemed given as of the date of delivery or, if delivery is made by mail, as of
the date shown on the postmark on the receipt for registration or certification.

Any notice or filing required or permitted to be given to a Participant under this Plan shall be
sufficient if in writing and hand-delivered, or sent by mail, to the last known address of the
Participant.

17.110  Successors. The provisions of this Plan shall bind and inure to the benefit of the
Company and its successors and assigns and the Participant and the Participant’s designated
Beneficiaries.

17.120  Spouse’s Interest. The interest in the benefits hereunder of a spouse of a
Participant who has predeceased the Participant will automatically pass to the Participant and will
not be transferable by such spouse in any manner, including but not limited to such spouse’s will,
nor will such interest pass under the laws of intestate succession.

17.130  Validity. In case any provision of this Plan should be found to be illegal or
invalid for any reason, said illegality or invalidity will not affect the remaining parts hereof,
but this Plan should be construed and enforced as if such illegal or invalid provision had never
been inserted herein.

17.140  Minors, Incompetent Persons, etc. If the Committee or its delegate determines that
a benefit under this Plan is to be paid to a minor, a person declared incompetent or to a person
incapable of handling the disposition of that person’s property, the Committee or its delegate may
direct payment of such benefit to the guardian, legal representative or person having the care and
custody of such minor, incompetent or incapable person. The Committee or its delegate may require
proof of minority, incompetence, incapacity or guardianship, as it may deem appropriate prior to
distribution of the benefit. Any payment of a benefit shall be a payment for the account of the
Participant and the Participant’s Beneficiary, as the case may be, and will be a complete discharge
of any liability under the Plan for such payment amount.

17.150  Court Order. The Committee or its delegate is authorized to make any payments
directed by court order in any action in which the Plan or the Committee has been named as a party.
In addition, if a court determines that a spouse or former spouse of a Participant has an interest
in the Participant’s benefits under the Plan in connection with a property settlement or

26

 

otherwise, the Committee or its delegate, in its sole discretion, will have the right, notwithstanding any
election made by a Participant, to immediately distribute the spouse’s or former spouse’s interest
in the Participant’s benefits under the Plan to that spouse or former spouse.

17.160  Insurance. The Company, on its own behalf or on behalf of the trustee of the Trust,
and, in its discretion, may apply for and procure insurance on the life of the Participant, in such
amounts and in such forms as the Trust may choose. The Company or the trustee of the Trust, as the
case may be, will be the sole owner and beneficiary of any such insurance. The Participant will
have no interest whatsoever in any such policy or policies, and at the request of the Company will
submit to medical examinations and supply such information and execute such documents as may be
required by the insurance company or companies to which the Company has applied for insurance.

17.170  Legal Fees To Enforce Rights After Change of Control. The Company is aware that
upon the occurrence of a Change of Control, the Board of Directors (which might then be composed of
new members) or a shareholder of the Company or of any successor corporation might then cause or
attempt to cause the Company, an Affiliate or such successor to refuse to comply with its
obligations under the Plan and might cause or attempt to cause the Company or the Affiliate to
institute, or may institute, litigation seeking to deny Participants the benefits intended under
the Plan. In these circumstances, the purpose of the Plan could be frustrated. Accordingly, if,
following a Change of Control, it should appear to any Participant that the Company, an Affiliate
of the Company or any successor corporation has failed to comply with any of its obligations under
the Plan or any agreement thereunder or, if the Company, such Affiliate or any other person takes
any action to declare the Plan void or unenforceable or institutes any litigation or other legal
action designed to deny, diminish or to recover from any Participant the benefits intended to be
provided, then the Company irrevocably authorizes such Participant to retain counsel of his choice
at the expense of the Company to represent such Participant in connection with the initiation or
defense of any litigation or other legal action, whether by or against the Company, one or more of
its Affiliates or any director, officer, shareholder or other person affiliated with the Company,
any such Affiliate any successor thereto in any jurisdiction.

17.180  Requirement for Release. Any payment to any Participant or a Participant’s present,
future or former spouse or Beneficiary in accordance with the provisions of this Plan will, to the
extent thereof, be in full satisfaction of all claims against the Plan, the Trustee and the
Company, and the Trustee may require such Participant or Beneficiary, as a condition precedent to
such payment to execute a receipt and release to such effect.

27

 

Appendix A

PREDECESSOR PLAN PROVISIONS

The following provisions shall apply with respect to the Participants, as applicable, in the
Rockwell Predecessor Plans.

	I.	 	Accounts.

With respect to a Participant’s incentive compensation deferrals under one of the Predecessor Plans
for periods prior to the Effective Date, the value of any such Participant’s account will be
determined as of the last day of a calendar year quarter (the “Determination Date”) and will be
equal to the total of the Participant’s Lump Sum Payment and Installment Payment Sub-Accounts.

The value of each such Sub-Account will consist of:

	 	(1)	 	the balance of such Sub-Account as of the last preceding Determination Date,
plus

	 
	 	(2)	 	any Deferred Compensation credited to such Sub-Account since the last preceding
Determination date, plus

	 
	 	(3)	 	the sum of the three (3) monthly amounts determined by multiplying the average
daily balance of such Sub-Account during each of the three calendar months since the
last preceding Determination Date by the Interest Rate applicable to such month, minus

	 
	 	(4)	 	the amount of all Plan Benefits, if any, paid during the period since the last
preceding Determination Date.

Interest, determined as provided in (3) above, will be credited to each such Sub-Account as of the
Determination Date as of which such Sub-Account is valued.

	II.	 	Retirement Distributions and Withdrawals of Predecessor Plan Accounts.

	 
	(a)	 	With respect to the provisions of the Predecessor Plans which were in effect immediately
prior to the Effective Date of this Plan as they regard benefits payable at retirement or
employment termination to a Participant, or at the time of a Participant’s death, to his
Beneficiary, such provisions shall remain in effect hereunder, but only with respect to
amounts deferred prior to the Effective Date of this Plan (and earnings thereon pursuant to
the preceding Section of this Appendix).

	 
	(b)	 	No Plan Benefit shall be payable to a Participant in one of the Predecessor Plans prior to
his termination of employment, except that, in the case of the Rockwell Predecessor Plan, the
Committee or its delegate may permit a Participant or, after a Participant’s death, a

28

 

	 	 	Participant’s Beneficiary or other person or entity entitled to receive such Predecessor
Plan benefit to withdraw from his Account prior to his termination of employment:

	 
	   	 	(1)	 	an amount necessary to meet a financial hardship, or

	 
	   	 	(2)	 	his entire Account balance

Either type of withdrawal shall be requested by written notice to the Committee or its delegate and
the amount of the withdrawal shall be paid within forty-five (45) days after receipt of the written
notice.

	III.	 	Funding of Rabbi Trust for Account Balances upon Change of Control.

The Company shall fund the Trust in immediately available funds for the benefit of each
Participant, surviving spouse, joint annuitant or beneficiary with respect to Accounts under the
Predecessor Plans in accordance with the terms of the Trust. Such trust, as it regards such
Predecessor Plan amounts, shall:

	(a)	 	be a non-qualified grantor trust which satisfies in all material respects the requirement of
Revenue Procedure 92-64, 1992-2 CB 122 (or any successor Revenue Procedure or other applicable
authority);

	 
	(b)	 	become irrevocable upon a change of Control (to the extent not then irrevocable); and

	 
	(c)	 	provide that any successor trustee shall be a bank trust department or other party that may
be granted corporate trustee powers under state law.

29

 

Appendix B

MEASUREMENT FUNDS

Measurement Funds (and their underlying benchmark mutual funds) are listed below in
alphabetical order:

	•	 	Balanced Fund

Fidelity Puritan Fund

The objective of this balanced mutual fund is to obtain income and capital growth consistent with
reasonable risk.

This fund invests approximately 60% of its assets in stocks and other equity securities and the
remainder in investment grade bonds and other investment grade debt securities, including medium
and high quality debt securities. The fund will invest at least 25% of total assets in fixed-income
senior securities (including debt securities and preferred stock). The fund may invest in domestic
and foreign issuers.

	•	 	Blue Chip Growth Fund

Fidelity Blue Chip Growth Fund

The objective of this growth mutual fund is to increase the value of investments over the long term
through capital growth.

The fund invests primarily in common stocks of well-known and established companies. Normally at
least 65% of the fund’s total assets are invested in blue chip companies. The fund may also invest
in companies with above-average growth potential that the fund’s manager believes are positioned to
become the blue chips of the future.

	•	 	Capital & Income Fund

Fidelity Capital & Income Fund

The objective of this income mutual fund is to obtain a combination of current income and capital
growth.

This fund invests in equity and debt securities, including defaulted securities, with an emphasis
on lower-quality debt securities. The fund may also invest in securities of domestic and foreign
issuers. This fund carries a “short-term trading fee” which is charged to discourage short-term
buying and selling of fund shares. If shares are sold after being held for less than 365 days, the
fund will deduct a short-term trading fee equal to 1.5% of the value of the shares sold.

30

 

	•	 	Diversified International Fund

Fidelity Diversified International Fund

The objective of this growth mutual fund, which invests overseas, is to increase the value of
investments over the long term through capital growth.

This fund normally invests at least 65% of total assets in foreign securities. In selecting
securities the fund employs computer-aided quantitative analysis supported by fundamental research.
This fund will carry a “short-term trading fee” which will be charged to discourage short-term
buying and selling of fund shares. If shares are sold after being held for less than 30 days, the
fund will deduct a short-term trading fee from your account equal to 1.0% of the value of the
shares sold.

	•	 	Equity Income Fund

Fidelity Equity Income Fund

The objective of this growth and income mutual fund is to obtain reasonable income to while
considering the potential for capital appreciation. It seeks to provide a yield that exceeds the
yield of the securities in the Standard & Poors 500 Index.

The fund normally invests at least 65% of total assets in income-producing equity securities, which
tend to lead to investments in large cap stocks. The fund potentially invests in other types of
equity and debt securities, including lower-quality debt securities. The fund may invest in
securities of domestic and foreign issuers.

	•	 	Fidelity Fund

Fidelity Fund

This growth and income mutual fund strives to obtain long-term capital growth.

The fund invests primarily in common stocks. It potentially invests a portion of its assets in
bonds, including lower-quality debt securities. The fund invests in domestic and foreign issuers.

	•	 	Investment Grade Bond Fund

Fidelity Investment Grade Bond Fund

The objective of this income mutual fund is to obtain high current income.

This fund normally invests in U.S. dollar-denominated investment-grade bonds (those of medium and
high quality). The fund is managed to have similar overall interest rate risk to the Lehman
Brothers Aggregate Bond Index. Assets are allocated across different market sectors and
maturities.

31

 

	•	 	Market Index Fund

SpartanÒ 500Market Index Fund

This mutual fund seeks to obtain investment results that correspond to the total return (i.e. the
combination of capital changes and income) of common stocks publicly traded in the United States,
as represented by the Standard & Poors 500 Index (S&P 500Ò), while keeping
transaction costs and other expenses low.

The
fund normally invests at least 80% of its assets in common stock included in the S&P 500. The fund may lend securities to earn income for the fund. This fund carries a
“short-term trading fee” which is charged to discourage short-term buying and selling of fund
shares. If shares are sold after being held for less than 90 days, the fund will deduct a
short-term trading fee from your account equal to 0.50% of the value of the shares sold.

	•	 	Mid-Cap Stock Fund

Fidelity Mid-Cap Stock Fund 

The objective of this growth mutual fund is to increase the value of investments over the long term
through capital growth. The fund normally invests at least 65% of total assets in common stocks of companies with medium
market capitalizations (those with market capitalizations similar to companies in the S&P MidCap
400). The fund may invest in companies with smaller or larger market capitalizations. The fund
may also invest in domestic and foreign issuers.

	•	 	Small Cap Fund

Fidelity Small Cap Selector

This mutual fund seeks to obtain capital appreciation.

This fund normally invests at least 65% of total assets in securities of companies with small
market capitalizations (those with market capitalizations similar to companies in the Russell 2000®
Index). The fund will primarily invest in common stock. The fund may also invest in domestic and
foreign issuers. This fund carries a “short-term trading fee” which is charged to discourage
short-term buying and selling of fund shares. If shares are sold after being held for less than 90
days, the fund will deduct a short-term trading fee from your account equal to 1.5% of the value of
the shares sold.

32

 

	•	 	US Govt. Money Market Fund

Spartan US Government Money Market Fund

The objective of this fund is to obtain as high a level of current income as is consistent with
preservation of capital and liquidity.

This fund invests in U.S. Government securities and repurchase agreements for those securities, and
enters reverse repurchase agreements. The fund invests in compliance with industry-standard
requirements for money market funds for the quality, maturity and diversification of investments.

33EX-10.1

 

     Pursuant to 17 CFR 240.24b-2, confidential information (indicated by [*])
has been omitted and has been filed separately with the Securities and Exchange
Commission pursuant to a Confidential Treatment Application filed with the
Commission.

Exhibit 10.1

SETTLEMENT AGREEMENT

Dated as of August 14, 2006

SHIRE LABORATORIES INC.

and

BARR
LABORATORIES, INC.

 

 

SETTLEMENT AGREEMENT

     THIS SETTLEMENT AGREEMENT, (this “Settlement Agreement”) dated as of this 14th day of August,
2006, is hereby entered into by and between Shire Laboratories Inc., a Delaware corporation with
offices located at 725 Chesterbrook Boulevard, Wayne, PA 19087 (“Shire”), and Barr Laboratories,
Inc., a Delaware corporation with offices located at 400 Chestnut Ridge Road, Woodcliff Lake, NJ
07677 (“Barr”). Each of Shire and Barr is sometimes referred to herein, individually, as a “Party”
and, collectively, as the “Parties.”

RECITALS

     WHEREAS, Shire is the owner of New Drug Application (“NDA”) No. 21-303, which was approved by
the Food and Drug Administration (“FDA”) for the manufacture and sale of a pharmaceutical
composition containing mixed amphetamine salts for the treatment of Attention Deficit Hyperactivity
Disorder, which Shire sells under the trademark Adderall XR (collectively, “Shire Product”);

     WHEREAS, Barr submitted an Abbreviated New Drug Application (“ANDA”) No. 76-536 (“Barr’s
ANDA”) to the FDA under § 505(j) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. §355(j))
with a paragraph IV certification seeking approval to engage in the commercial manufacture, use,
and sale of product asserted to be bioequivalent to Shire Product;

     WHEREAS, the filing of such an ANDA by Barr can be an act of infringement of any patent which
claims the drug or the use of such drug under 35 U.S.C. § 271(e)(2)(A);

     WHEREAS, as of August 14, 2006 Barr’s ANDA has failed to receive either tentative or final
marketing approval by the FDA;

     WHEREAS, on February 24, 2003, after receiving a paragraph IV notice letter from Barr
regarding United States Patent No. 6,322,819 (the “‘819 Patent”), Shire sued Barr for infringing
the ‘819 Patent in a civil action in the United States District Court for the Southern District of
New York and Barr has asserted certain affirmative defenses and brought certain counterclaims that
action, case no. 03-CV-1219 (collectively, the “’819 Case”);

     WHEREAS, on September 2, 2003, after receiving a paragraph IV notice letter from Barr
regarding United States Patent No. 6,605,300 (the “‘300 Patent), Shire sued Barr for infringing the
‘300 Patent in a civil action in the United States District Court for the Southern District of New
York and Barr has asserted certain affirmative defenses and brought certain counterclaims in that
action, case no. 03-CV-6632 (collectively, the “‘300 Case”).

     WHEREAS, the ‘819 Case and the ‘300 Case (collectively referred to as “Litigation #1”) were
consolidated for trial on December 15, 2003 in the Southern District of New York before United
States District Judge P. Kevin Castel (“Court #1”).

     WHEREAS, Shire has also sued Barr for a declaratory judgment finding the product to be sold
under Barr’s ANDA would infringe U.S. Patent No. 6,913,768 (the “‘768 Patent”) in a civil action,
Civil Action No. 05-CV-8903 (“Litigation #2”)(“Litigation #2 together with

 

 

Litigation #1, the “Pending Litigations”), also in the United States District Court for the
Southern District of New York before United States District Judge Richard Owen (“Court #2”);

     WHEREAS, Shire and Barr wish to settle the Pending Litigations and have reached an agreement
to settle the Pending Litigations, pursuant to the terms and conditions set forth in this
Settlement Agreement together with an associated License Agreement (attached hereto as Exhibit A,
the “License Agreement”), an agreed dismissal order and consent judgment in Litigation #1
(“Dismissal Order and Consent Judgment #1”)(attached hereto as Exhibit B), and a consent judgment
with regard to Litigation #2 (the “Consent Judgment #2”)(attached hereto as Exhibit C) (the
Settlement Agreement, the License Agreement, the Dismissal Order and Consent Judgment #1 and
Consent Judgment #2 are collectively referred to as the “Settlement Documents”) (Dismissal Order
and Consent Judgment #1 and Consent Judgment #2 are collectively referred to as the “Consent
Judgments”);

     WHEREAS, contemporaneously herewith the Parties and their Affiliates are also entering into a
Product Acquisition and License Agreement for Shire’s Adderall product, currently being sold under
Shire’s NDA No. 11-522, and a Product Development and License Agreement (collectively, the
“Associated Agreements”);

     WHEREAS, the Settlement Documents constitute both Shire’s and Barr’s best independent judgment
as to the most convenient, effective and expeditious way to mutually settle all prior, present and
future disputes that have arisen associated with the filing of Barr’s ANDA and the selling,
offering for sale, using and/or importing into the United States of a product under Barr’s ANDA
(the “Barr Product”); and

     WHEREAS, except as provided for in Section 15 herein, this Settlement Agreement shall be of no
force or effect until such date as the Consent Judgments defined herein are submitted to their
respective courts as provided herein and the Consent Judgments are thereafter entered by their
respective courts.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements described herein, the
receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

     1. The Parties consent to the jurisdiction of Court #1 for the purposes of the settlement of
Litigation #1 and enforcement of the terms of the Settlement Documents.

     2. The Parties agree that Court #1 has jurisdiction over Litigation #1 and over Shire and Barr
(solely for the purpose of this settlement), and that venue is proper in the Southern District of
New York.

     3. Barr admits that the commercial manufacture, use, selling, offering for sale, or importing
of the Barr Product would infringe ‘768 Patent. Barr admits that it has conducted activities to
date, including manufacturing large quantities of Barr Product, that infringe the ‘768 Patent.
Barr admits that it has been actively and diligently working to obtain approval of the Barr ANDA to
commercially manufacture, use, sell, and offer for sale the Barr Product in the United States.
Barr admits that the ‘768 patent is valid and enforceable.

2

 

     4. The Parties consent to the jurisdiction of Court #2 for the purposes of the settlement of
Litigation #2 and enforcement of the terms of the Settlement Documents.

     5. The Parties agree that Court #2 has jurisdiction over Litigation #2 and over Shire and Barr
(solely for the purpose of this settlement), and that venue is proper in the Southern District of
New York.

     6. Barr admits that each of the ‘819 Patent and the ‘300 Patent are valid and enforceable.

     7. Barr agrees that, except as is otherwise expressly provided for in the License Agreement,
it shall not commercially make, use, sell, offer for sale or import, directly or indirectly the
Barr Product.

     8. Subject to Barr’s continued compliance with the terms of the Settlement Documents, Shire
agrees that it will not enforce the ‘819 Patent, the ‘300 Patent and the ‘768 Patent against Barr
or its affiliates with respect to the Barr Product or seek relief for equitable or legal damages,
or other monetary relief, costs, attorneys fees or interest as a result of infringement by Barr and
their retailers, distributors or end users, accrued as to the date hereof.

     9. Barr represents and warrants that it has not granted or assigned to any Third Party,
directly or indirectly, any rights under or to Barr’s ANDA and that it will not do so except as may
be explicitly provided in the License Agreement.

     10. Shire represents and warrants that it has the right and authority to enforce the ‘819
Patent, the ‘300 Patent and the ‘768 Patent.

     11. Shire and Barr each represents and warrants that it has the full right, authority and
power to enter into this Settlement Agreement on its own behalf and that this Settlement Agreement
shall create and constitute a binding obligation on its part.

     12. Shire and Barr shall each execute the License Agreement contemporaneously with the
execution of this Settlement Agreement and any breach of the License Agreement shall constitute a
breach of this Settlement Agreement.

     13. Within five (5) business days following the date of this Settlement Agreement, the Parties
shall cause the Consent Judgments to be filed with their respective courts.

     14. To the extent that Court #1 or Court #2 should refuse to enter either of the Consent
Judgments, the Parties shall work together in good faith and use their Best Efforts to modify the
applicable Consent Judgment to meet the requirements of the applicable Court. If despite such Best
Efforts Court #1 refuses to enter a dismissal of the infringement issues in Litigation #1 without
prejudice under Fed. R. Civ. P. 41(a)(1)(ii) and also enter a consent judgment that the ‘819 Patent
and the ‘300 Patent are valid and enforceable, or if despite such Best Efforts Court #2 refuses to
enter a consent judgment of validity, enforceability and infringement of the ‘768 patent, this
Settlement Agreement (including without limitation the License Agreement) and the Associated
Agreements shall be null and void (also a “Termination Date”). Furthermore, except as provided in
Section 15, the Parties agree that this Settlement

3

 

Agreement and the License Agreement shall become effective (the “Effective Date”) only when
each of the following occur: (1) Court #1 has entered the Consent Judgment #1 (as may be modified
pursuant to this paragraph above); and (2) Court #2 has entered Consent Judgment #2 (as may be
modified pursuant to this paragraph above).

     15. This Settlement Agreement and the License Agreement shall be void and of no effect if the
Consent Judgments are not entered by their respective courts within thirty (30) days following the
date hereof subject to the Parties’ agreement to extend such thirty-day period, such agreement not
to be unreasonably withheld.

     16. For purposes of clarity, and despite anything to the contrary in this Settlement
Agreement, Sections 11, 12, 13, 14, 15, 16, 17 and 18 shall be immediately effective and binding
upon the Parties upon full execution of this Settlement Agreement, unless and until this Settlement
Agreement shall be null and void as provided in Section 15.

     17. Within ten (10) business days following the date hereof, each Party shall file or cause to
be filed with the U.S. Federal Trade Commission Bureau of Competition (“FTC”) and the Antitrust
Division of the U.S. Department of Justice (“DOJ”) this Settlement Agreement and any notifications
required to be filed pursuant to Title XI of the Medicare Prescription Drug Improvement and
Modernization Act (Subtitle B — Federal Trade Commission Review) signed into law on December 8,
2003 and any other applicable law.

     18. The Parties shall use all commercially reasonable efforts and coordinate to make such
filings promptly and to respond promptly to any requests for additional information made by either
of such agencies. Each Party reserves the right to communicate with the FTC or DOJ regarding such
filings as it believes appropriate. Each Party shall keep the other reasonably informed of such
communications and shall not disclose the Confidential Information of the other without such other
Party’s consent (not to be unreasonably withheld).

     19. Shire and Barr each will bear their own costs and legal fees for the Pending Litigations.

     20. Confidentiality.

20.1 Confidential Information. As used in this Settlement Agreement, the term “Confidential
Information” means all secret, confidential or proprietary information or data, whether
provided in written, oral, graphic, video, computer, electronic or other form, provided
pursuant to this Settlement Agreement or generated pursuant to this Settlement Agreement by
one Party or its Affiliates (the “Disclosing Party”) to the other Party or its Affiliates
(the “Receiving Party”), including but not limited to, information relating to the
Disclosing Party’s existing or proposed research, development efforts, patent applications,
business or products, and any other materials that have not been made available by the
Disclosing Party to the general public. Confidential Information shall not include any
information or materials that:

4

 

(a) were already known to the Receiving Party (other than under an obligation of
confidentiality), at the time of disclosure by the Disclosing Party, to the extent
such Receiving Party has documentary evidence to that effect;

     (b) were generally available to the public or otherwise part of the public domain at
the time of disclosure thereof to the Receiving Party;

     (c) became generally available to the public or otherwise part of the public domain
after disclosure or development thereof, as the case may be, other than through any act or
omission of a Party in breach of such Party’s confidentiality obligations under this
Settlement Agreement;

     (d) were disclosed to a Party, other than under an obligation of confidentiality, by a
third party who had no obligation to the Disclosing Party not to disclose such information
to others; or

     (e) were independently discovered or developed by or on behalf of the Receiving Party
without the use of the Confidential Information belonging to the other Party, to the extent
such Receiving Party has documentary evidence to that effect.

     20.2. Confidentiality Obligations. Each of Barr and Shire shall keep confidential all
Confidential Information of the other Party with the same degree of care it maintains the
confidentiality of its own Confidential Information but in no event less than a reasonable
degree of care. Neither Party shall use such Confidential Information for any purpose other
than in performance of this Settlement Agreement or disclose the same to any other Person
other than to such of its and its Affiliates’ directors, managers, employees, independent
contractors, agents or consultants who are bound to confidentiality restrictions consistent
with the terms herein and who have a need to know such Confidential Information to implement
the terms of this Settlement Agreement or enforce its rights under this Settlement
Agreement. Upon termination of this Settlement Agreement, the Receiving Party shall return
or destroy all documents, tapes or other media containing Confidential Information of the
Disclosing Party that remain in the possession of the Receiving Party and its Affiliates or
their directors, managers, employees, independent contractors, agents or consultants, except
that the Receiving Party may keep one copy of the Confidential Information in the legal
department files of the Receiving Party, solely for archival purposes. Such archival copy
shall continue to be subject to the provisions of this Section 20.

     20.3. Permitted Disclosure and Use. Notwithstanding Section 20.2, a Party may disclose
Confidential Information belonging to the other Party only to the extent such disclosure is
reasonably necessary to: (a) obtain Regulatory Approval to the extent such disclosure is
made to a Governmental Authority; (b) comply with or enforce any of the

5

 

provisions of this Settlement Agreement; (c) comply with Laws; or (d) comply with applicable
stock exchange regulations. If a Party deems it necessary to disclose Confidential
Information of the other Party pursuant to this Section 20.3, such Party shall give
reasonable advance notice of such disclosure to the other Party to permit such other Party
sufficient opportunity to object to such disclosure or to take measures to ensure
confidential treatment of such information. In addition, notwithstanding Section 20.2, the
Parties shall cooperate to prepare standardized public responses to anticipated inquiries
from the public, press, stockholders, investors and/or analysts with respect to the
activities hereunder. Despite the foregoing, each Party agrees that the other Party is free
to disclose this Settlement Agreement in its entirety to the United States Federal Trade
Commission and the United States Department of Justice, or to any court with jurisdiction
over the litigations settled under this Settlement Agreement.

     20.4. Unauthorized Disclosure. The Receiving Party acknowledges and agrees that the
Confidential Information of the Disclosing Party constitutes proprietary information and
trade secrets valuable to the Disclosing Party, and that the unauthorized use, loss or
outside disclosure of such Confidential Information shall be presumed to cause irreparable
injury to the Disclosing Party.

     20.5. Notification. The Receiving Party shall notify the Disclosing Party promptly
upon discovery of any unauthorized use or disclosure of the Disclosing Party’s Confidential
Information, and shall cooperate with the Disclosing Party in any reasonably requested
fashion to assist the Disclosing Party to regain possession of such Confidential Information
and to prevent its further unauthorized use or disclosure. The Receiving Party acknowledges
that monetary damages may not be a sufficient remedy for unauthorized disclosure of
Confidential Information and that the Disclosing Party may be entitled, without waiving
other rights or remedies, to such injunctive or equitable relief as may be deemed proper by
a court of competent jurisdiction in the event of such unauthorized disclosure.

     20.6. Confidentiality of this Settlement Agreement. The terms of this Settlement
Agreement shall be Confidential Information of each Party and, as such, shall be subject to
the provisions of this Section 20.

     20.7. Terms not defined in this Section 20 shall have the meaning given to such terms
in the License Agreement.

     21. In the event that any of the provisions of this Settlement Agreement shall be held by a
court or other tribunal of competent jurisdiction to be illegal, invalid or unenforceable, such
provisions shall be limited or eliminated to the minimum extent necessary so that this Settlement
Agreement shall otherwise remain in full force and effect. This Settlement Agreement shall be
governed by the laws of the State of New York without regard to the conflicts of law provisions
thereof. This Settlement Agreement supersedes all prior discussions and writings and constitutes

6

 

the entire agreement between the Parties with respect to the subject matter hereof. No waiver
or modification of this Settlement Agreement will be binding upon either Party unless made in
writing and signed by a duly authorized representative of such Party and no failure or delay in
enforcing any right will be deemed a waiver. Notices hereunder will be effective only if in
writing and upon receipt if delivered personally or by overnight mail carrier or fax, or three (3)
days after deposit in the U.S. mail, first class postage prepaid. The prevailing Party in any
action to enforce this Settlement Agreement shall be entitled to costs and fees (including
attorneys’ fees and expert witness fees) incurred in connection with such action. The individual
executing this Settlement Agreement on behalf of a corporation or other legal entity personally
represents that he or she is duly authorized to execute this Settlement Agreement on behalf of such
entity and that this Settlement Agreement is binding upon such entity. In making and performing
this Settlement Agreement, the Parties are acting and shall act as independent contractors.
Nothing in this Settlement Agreement shall be deemed to create an agency, joint venture or
partnership relationship between the Parties hereto. This Settlement Agreement shall become binding
when any one or more counterparts hereof, individually or taken together, bears the signatures of
each of the Parties hereto. This Settlement Agreement may be executed in any number of
counterparts (including facsimile counterparts), each of which shall be an original as against a
Party whose signature appears thereon, but all of which taken together shall constitute one and the
same instrument.

[Signature Page Follows]

7

 

[Signature Page to Settlement Agreement]

     IN WITNESS WHEREOF, the Parties hereto have each caused this Settlement Agreement to be executed by
their authorized representatives as of the date first above written.

SHIRE LABORATORIES INC.

	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	August 14, 2006	 	 	 	By:	 	/s/  Matthew Emmens	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Matthew Emmens	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	CEO	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BARR LABORATORIES, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	August 14, 2006	 	 	 	By:	 	/s/  Paul Bisaro	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Paul Bisaro	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	President & C.O.O.	 	 
	 

	 	 	 	 	 	 	 	 	 	 

 

EXHIBIT A

LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (this “Agreement”) dated as of this 14th day of August, 2006 (the
“Effective Date”), is hereby entered into by and between Shire LLC, a Kentucky company with offices
located at 9200 Brookfield Court, Florence, KY 41042 (together with its Affiliates, “Shire”), and
Barr Laboratories, Inc., a Delaware corporation with offices located at 400 Chestnut Ridge Road,
Woodcliff Lake, NJ 07677 (“Barr”). Each of Shire and Barr is sometimes referred to herein,
individually, as a “Party” and, collectively, as the “Parties.”

R E C I T A L S:

     WHEREAS, Shire is the owner of New Drug Application (“NDA”) No. 21-303, which was approved by
the Food and Drug Administration (“FDA”) for the manufacture and sale of a pharmaceutical
composition containing mixed amphetamine salts for the treatment of Attention Deficit Hyperactivity
Disorder, all strengths of which Shire sells under the tradename Adderall XR (collectively, “Shire
Product”);

     WHEREAS, Barr submitted the Barr ANDA (defined below) to the FDA under the Act with a
paragraph IV certification seeking approval to engage in the commercial manufacture, use, and sale
of product asserted to be bioequivalent to Shire Product;

     WHEREAS, Shire and Barr are parties to the Pending Litigation (defined below) related to the
Barr ANDA;

     WHEREAS, Shire and Barr are parties to a certain Settlement Agreement of even date herewith
(the “Settlement Agreement”), pursuant to which Shire and Barr are settling the Pending Litigation;

     WHEREAS, in consideration of and in conjunction with the Settlement Agreement, Shire has
agreed to grant and Barr has agreed to accept a license under Shire’s Adderall XR Intellectual
Property (as defined below) to sell Barr Product (as defined below) and AG Product (as defined
below); and

     WHEREAS, this Agreement shall be of no force or effect until such date as the Dismissal Order
and the Consent Judgment defined in the Settlement Agreement are submitted to their respective
courts as provided for in the Settlement Agreement and the Dismissal Order and the Consent Judgment
are thereafter entered by their respective courts.

     NOW, THEREFORE, in consideration of the foregoing premises and mutual covenants, agreements
and provisions herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

     1. Definitions

 

 

EXHIBIT A

          1.1.
“Act” shall mean § 505(j) of the Federal Food, Drug, and Cosmetic Act.

          1.2. “Adderall XR” shall mean the pharmaceutical products which are approved for Marketing in
the Territory pursuant to the NDA.

          1.3. “Adderall XR Intellectual Property” shall mean (i) U.S. Patent Nos. 6,322,819, 6,605,300,
and 6,913,768 and any patent that issues as a result of a reexamination or reissue thereof; (ii)
any patent that issues from, or any continuation, continuation-in-part or divisional application
relating to, U.S. Patent Application Serial [*]; and (iii) any other present or future U.S. patent
owned or controlled by Shire and its Affiliates which may be infringed by the making, using,
selling or importing of the Generic Product.

          1.4. “Adverse Drug Experience” has the meaning set forth in 21 C.F.R. § 314.80(a), as amended,
supplemented or superceded from time to time.

          1.5. “Affiliate” shall mean a Person that controls, is controlled by or is under common
control with a Party. For the purposes of this definition, the word “control” (including, with
correlative meaning, the terms “controlled by” or “under common control with”) means the actual
power, either directly or indirectly through one or more intermediaries, to direct the management
and policies of such Person, whether by the ownership of at least fifty percent (50%) of the voting
stock of such Person (it being understood that the direct or indirect ownership of a lesser
percentage of such stock shall not necessarily preclude the existence of control), or by contract
or otherwise.

          1.6. “AG Product” shall mean Shire authorized and supplied generically Labeled Adderall XR.

          1.7. “ANDA” shall mean an abbreviated new drug application to the FDA for approval to
manufacture and/or sell a pharmaceutical product in the Territory.

          1.8. “Applicable Law” shall mean the applicable Laws, rules, regulations, guidelines and
requirements of any Governmental Authority related to the development, registration, Manufacture
and Marketing of the Generic Product in the Territory or the performance of either Party’s
obligations under this Agreement.

          1.9. “Authorization and License” shall have the meaning assigned to such term in Section 2.3.

          1.10. “Barr ANDA” shall mean ANDA No. 76-536.

          1.11. “Barr Product” shall mean the Generic Equivalent that is the subject of the Barr ANDA.

          1.12. “Business Day” shall mean any day other than a Saturday, Sunday or a day on which banks
in New York, New York are authorized or required by Law to close.

2

 

EXHIBIT A

          1.13. “cGMP” shall mean all applicable standards relating to manufacturing practices for
active pharmaceutical ingredients, intermediates, bulk products or finished pharmaceutical
products, including (i) the principles detailed in the U.S. Current Good Manufacturing Practices,
21 C.F.R. Parts 210 and 211.

          1.14. “Commercially Reasonable Efforts” shall mean efforts and diligence in accordance with
the subject Party’s reasonable and sound business, legal, medical and scientific judgment and in
accordance with the efforts and resources such Party would use in other aspects of its business
that have similar commercial value and market potential, taking into account the competitiveness of
the marketplace, the business life-cycle, the proprietary position of the Party and the
profitability of the pertinent product.

          1.15. “Compound” shall mean mixed amphetamine salts, as further defined in the NDA.

          1.16. “Confidential Information” shall mean any scientific, technical, formulation, process,
Manufacturing, clinical, non-clinical, regulatory, Marketing, financial or commercial information
or data relating to the business, projects, employees or products of either Party and provided by
one Party to the other by written, oral, electronic or other means in connection with this
Agreement.

          1.17. “FDA” shall mean the United States Food and Drug Administration or any successor agency
thereof.

          1.18. “Force Majeure” shall mean acts of God, civil disorders or commotions, acts of
aggression, fire, explosions, floods, drought, war, sabotage, embargo, utility failures, a national
health emergency, or appropriations of property.

          1.19. “GAAP” shall mean generally accepted accounting principles in effect in the United
States from time to time, consistently applied.

          1.20. “Generic Equivalent” shall mean pharmaceutical products that are a Therapeutic
Equivalent of Adderall XR (whether approval for marketing in the Territory is sought or obtained
pursuant to an ANDA, a 505(b)(2) application, or an NDA Supplement) including all dosages and
formulations and all indications of Adderall XR. “Generic Equivalent” shall include the AG Product
and the Barr Product.

          1.21. “Generic Product” shall mean the AG Product and the Barr Product.

          1.22. “Governmental Authority” shall mean any court, tribunal, arbitrator, agency, legislative
body, commission, official or other instrumentality of (i) any government of any country, or (ii) a
federal, state, province, county, city or other political subdivision thereof.

3

 

EXHIBIT A

          1.23. “Label” shall mean any Package (immediate container) labeling designed for use with a
product, including the package insert for such product that is approved by the FDA, and “Labeled”
or “Labeling” shall have the correlated meaning.

          1.24. “Launch” shall mean the first commercial sale of a product to an unaffiliated Third
Party.

          1.25. “Law” or “Laws” shall mean all laws, statutes, rules, codes, regulations, orders,
judgments and/or ordinances of any Governmental Authority.

          1.26. “License Effective Date” shall mean the earlier of: (1) April 1, 2009; and (2) [*].

          1.27. “Losses” means any liabilities, damages, costs or expenses, including reasonable
attorneys’ fees and expert fees, incurred by any Party that arise from any claim, lawsuit or other
action by a Third Party.

          1.28.
“Manufacture” shall mean all activities related to the manufacturing of a pharmaceutical
product, or any ingredient thereof, including but not limited to manufacturing Compound or supplies
for development, manufacturing of Barr Product or AG Product for commercial sale, packaging,
in-process and finished product testing, release of product or any component or ingredient thereof,
quality assurance activities related to manufacturing and release of product, ongoing stability
tests and regulatory activities related to any of the foregoing, and “Manufactured” or
“Manufacturing” shall have the correlated meaning.

          1.29. “Manufacturing Costs” for each dosage strength of AG Product shall mean [*].
“Manufacturing Costs” for each dosage strength of Barr Product shall mean [*].

          1.30. “Market” shall mean to distribute, promote, advertise, import, market, offer to sell and
sell, and “Marketing” or “Marketed” shall have the correlated meaning.

          1.31. “NDA” shall mean new drug application No. 21-303, and all supplements filed pursuant to
the requirements of the FDA, including all documents, data and other information concerning
Adderall XR which are necessary for FDA approval to Market Adderall XR in the Territory.

          1.32. “Net Profits” means the gross receipts derived from the sale of Generic Product in the
United States by Barr (or by its Affiliates), to independent third parties in the United States,
less the sum of the following items:

               (a) Import, export, excise and sales taxes and custom duties paid or allowed by the
selling party and any other charges imposed by a Governmental Authority upon the
production, importation, use or sale of Generic Product by Barr and/or its Affiliates;

4

 

EXHIBIT A

               (b) Estimated and actual credits for returns, refunds, rebates and allowances, or
trades to customers for returned or recalled Generic Product;

               (c) Trade, quantity and cash discounts actually allowed;

               (d) Transportation, freight and insurance allowances;

               (e) Rebates to wholesalers, administrative fees in lieu of rebates paid to managed
care and other similar institutions, chargebacks and retroactive price adjustments,
including Shelf Stock Adjustments, and any other similar allowances which effectively
reduce the net selling price; and

               (f) Manufacturing Costs.

               Gross and Net Profits shall be calculated according to GAAP. Sales or transfers
between or among Barr and its Affiliates shall be excluded from the computation of Net
Profits except where such Affiliates are end users, but Net Profits shall include the
subsequent final sales to third parties by such Affiliates.

               Where (i) Generic Product is sold by Barr or its Affiliates as one of a number of
items without a separate price; (ii) the consideration for the Generic Product shall
include any non-cash element; (iii) the Generic Product shall be transferred in any manner
other than an invoiced sale; or (iv) Barr prices Generic Product in order to gain or
maintain sales of other products, the gross receipts applicable to any such transaction
shall be deemed to be the selling party’s average gross receipts for the applicable
quantity of Generic Product during the calendar quarter in which such transaction occurred.
If there are no independent sales of Generic Product in the United States at that time,
then Barr and Shire shall mutually agree on a surrogate measure to be used in lieu thereof.

          1.33. “Package” shall mean all primary containers, including bottles, cartons, shipping cases
or any other like matter used in packaging or accompanying a product, and “Packaged” or “Packaging”
shall have the correlated meaning.

          1.34. “Pending Litigation” shall mean the pending litigation Shire Laboratories, Inc., v. Barr
Laboratories, Inc., Civil Action No. 03-CV-1219 and 03-CV-6632 (U.S. District Court for the
Southern District of New York) and Shire Laboratories Inc. v. Barr Laboratories, Inc. & Impax
Laboratories, Inc., Civil Action No. 05-CV-8903 (U.S. District Court for the Southern District of
New York).

          1.35. “Permitted Agreement” shall mean an agreement between Barr and any other Person to
Market or promote Generic Product after the License Effective Date in accordance with the
Authorization and License, or as permitted in Section 4.1.

          1.36. “Person” shall mean any individual, partnership, association, corporation, limited
liability company, trust, or other legal person or entity.

5

 

EXHIBIT A

          1.37. “Shelf Stock Adjustment” means the customary practice of providing a purchaser of
Generic Product an adjustment to the net purchase price for on-hand inventory in response to an
offer from a supplier of a competing Generic Equivalent.

          1.38. “Term” shall have the meaning assigned to such term in Section 15.1.

          1.39. “Territory” shall mean the United States of America and its territories and possessions.

          1.40. “Therapeutic Equivalent” shall have the meaning given to it by the FDA in the current
edition of the “Approved Drug Products with Therapeutic Equivalence Evaluations” (the “Orange
Book”) as may be amended from time to time during the Term.

          1.41. “Third Party” or “Third Parties” shall mean any Person or entity other than a Party or
its Affiliates.

          1.42. “Valid Claim” shall mean an issued and unexpired patent claim which has not been held to
be invalid or unenforceable by a court of competent jurisdiction in a final unappealable decision.

     2. License

          2.1. Subject to the terms, conditions and limitations hereof, including the conditions set
forth in Section 3, Shire hereby grants to Barr a license, under the Adderall XR Intellectual
Property and under any and all statutory and regulatory exclusivities issued by any Governmental
Authority to import, Manufacture, have Manufactured and Market Barr Product in the Territory on and
after the License Effective Date. Notwithstanding the foregoing, Barr shall have the limited right
to Manufacture and/or import reasonable quantities of Barr Product prior to the License Effective
Date for the sole purpose of launching and selling such Product in the Territory under the
foregoing license on and after the License Effective Date. The license granted under this Section
2.1 shall include the right of Barr to (i) grant sublicenses to its Affiliates, and (ii) to
Manufacture Barr Product or to have Barr Product manufactured outside the Territory for sale in the
Territory.

          2.2. Solely to the extent that Shire Manufactures and supplies AG Product to Barr pursuant to
Section 4 of this Agreement, and subject to the other terms, conditions and limitations hereof,
including the conditions set forth in Section 3, Shire hereby authorizes Barr to Market such AG
Product in the Territory, but only from and after the License Effective Date. In connection with
and solely for purposes of such authorization, Shire hereby grants to Barr a license under the
Adderall XR Intellectual Property and under any and all statutory and regulatory authorizations and
exclusivities issued by any Governmental Authority to Market such AG Product in the Territory from

6

 

EXHIBIT A

and after the License Effective Date. The license granted under this Section 2.2 shall
include the right of Barr to grant sublicenses to its Affiliates.

          2.3. The authorization and license granted by Section 2.1 and Section 2.2 are referred to
herein as the “Authorization and License.” Except as provided in Sections 2.1, 2.2 and 16.3, Barr
shall not have the right to sublicense or assign any of its rights under the Authorization and
License.

     3. Conditions

          3.1. Except to the extent permitted under the Authorization and License, neither Barr nor any
of its Affiliates shall: (a) Market any Generic Equivalent that infringes the Adderall XR
Intellectual Property or (b) assist or enable any third party to Market, or otherwise contract with
any Third Party regarding the Marketing of, any Generic Equivalent (other than as permitted in
Section 8.1) that infringes the Adderall XR Intellectual Property. In the event that during the
Term of this Agreement Barr challenges the validity or enforceability of any of U.S. Patents
6,322,819, 6,605,300, and 6,913,768 or any reissue thereof or, except as required by Law, otherwise
assists or enables or participates with any Third Party to challenge the validity or enforceability
of any of the foregoing, Shire shall be free to terminate this Agreement and all obligations
provided herein immediately upon written notice to Barr. Notwithstanding anything above to the
contrary, Barr is permitted to respond to directives from Governmental Authorities, pursuant to the
procedures set forth in Section 10.2 of this Agreement.

          3.2. Nothing set forth herein shall be deemed to prevent or restrict Barr or its Affiliates
from Marketing any product which would not infringe the Adderall XR Intellectual Property. The
foregoing notwithstanding, Barr hereby agrees to provide Shire with detailed information regarding,
and samples of, any Generic Equivalent at least forty-five (45) days before Marketing any such
Generic Equivalent in order to give Shire reasonable time to evaluate any possible infringement of
the Adderall XR Intellectual Property by such Generic Equivalent.

          3.3. Anything to the contrary notwithstanding, in the event that Barr markets any Generic
Equivalent other than: (i) Barr Product or AG Product under the terms of this Agreement, or (ii)
any product which would not infringe the Adderall XR Intellectual Property, Shire shall be free to
terminate the Authorization and License and this Agreement upon notice to Barr.

          3.4. Nothing in this Agreement shall be deemed to give Shire any control over any marketing
exclusivity that may be granted to Barr by the FDA in connection with the Barr ANDA or Barr Product
[*].

          3.5. Anything to the contrary notwithstanding, [*] without the prior written consent of Shire,
Shire shall be free to terminate the Authorization and License and this Agreement upon notice to
Barr.

          3.6. Except as explicitly set forth in this Agreement, nothing contained in this Agreement
shall grant (or be construed to grant) to Barr (i) any right, title or

7

 

EXHIBIT A

interest in, to or under the NDA or any Shire intellectual property; (ii) any right to use or
reference the NDA; (iii) any right to use any Shire intellectual property outside of the Territory;
or (iv) any right to make, have made, use, offer for sale, sell and import any product other than
the Barr Product or AG Product as such are permitted herein. Any and all rights not explicitly
granted in this Agreement are hereby reserved.

          3.7. Shire has not granted and shall not grant a license to, and has not entered and shall not
enter into, any supply agreement or other arrangement that allows any Third Party to market a
Generic Equivalent before: (i) the License Effective Date or (ii) the expiration of 180 days
following Barr’s launch of a Generic Product, [*].

     4. Authorized Generic

          4.1. In the event a Third Party, without any cooperation or assistance from Barr, Markets a
Generic Equivalent in the Territory prior to the License Effective Date, and Shire elects, in its
sole discretion, to Market or have Marketed a Generic Product to compete with such Third Party
prior to the License Effective Date, then Shire shall appoint Barr as the exclusive (even as to
Shire [*]) distributor of the Generic Product for a period of at least [*] following the launch of
the Generic Product by Barr, and as a non-exclusive authorized distributor of the Generic Product
thereafter. In the event of such election and appointment by Shire, Barr shall have the option, in
its sole discretion, to Market AG Product or Barr Product. Notwithstanding the provisions of
Section 9.1, Barr shall pay Shire a royalty of [*] during any period prior to the License Effective
Date in which Barr is exclusively authorized to Market Generic Product under this Section 4.1.
However, this royalty under Section 4.1 shall be [*] if there are two or more Third Parties in
addition to Barr Marketing a Generic Product.

          4.2. [*]. Should Shire: (i) [*], (ii) Market the [*], and (iii) choose, in Shire’s sole
discretion, to Market or authorize a Third Party to Market [*] then Shire agrees that it shall
inform Barr of such decision and shall afford Barr the opportunity, at Barr’s discretion, to
exclusively [*]. Barr shall notify Shire within [*] of notice of Shire’s decision to Market such
AG New Product of Barr’s decision as to whether it desires to Market the [*]. If Barr so notifies
Shire of its desire to Market the [*], Shire and Barr shall negotiate in good faith an agreement
with respect to such [*], such agreement to be on terms similar to the terms contained in this
Agreement, except that Shire and Barr shall share the [*] from the sale of such [*] to each Party.
For purposes of clarity, Shire is under no obligation to choose to Market [*] and may do so in its
sole discretion.

     5. Supply of AG Product; Forecasts; Purchase Orders

          5.1. If Barr believes in good faith that it will be unable to obtain a final marketing
approval for the Barr ANDA before the License Effective Date, then Barr may elect by providing at
least [*] prior written notice to Shire to have Shire supply AG Product to Barr for sale in the
Territory from and after the applicable License Effective Date subject to all of the terms and
conditions of this Agreement, including this Section 5. Shire shall use Commercially
Reasonable Efforts to obtain any required

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EXHIBIT A

approvals for sale of AG Product from the FDA pursuant to a labeling supplement to the NDA.

          5.2. Subject to the terms, conditions and limitations hereof, Shire agrees to supply AG
Product to Barr for Marketing pursuant to Section 4 and in accordance with the terms of this
Agreement. In order to be in a position to timely and effectively enter the generic market, at
Barr’s request, the Parties shall cooperate in good faith to determine and prepare for the License
Effective Date, including communicating to one another, on an ongoing basis, developments which may
reasonably affect the Launch of AG Product and information necessary to Label the AG Product for
sale as a generic by Barr under the NDA.

          5.3. All AG Product supplied will be released for sale under a generic Label in Packaging
complying with the NDA. Subject to compliance with the NDA, Barr will provide Shire with
appropriate and customary generic Packaging and Labeling which will be utilized by Shire in
Manufacturing AG Product. Any costs incurred by Shire in utilizing such Packaging or Labeling, or
in meeting other manufacturing specifications (such as tablet imprints) requested by Barr and to
which Shire agrees (such agreement not to be unreasonably withheld, delayed or conditioned),
including related capital expenditures, shall be included in Manufacturing Costs. Shire shall
provide current Manufacturing Costs, for guidance purposes only, within [*] of its receipt of a
written request from Barr.

          5.4. Together with the notice from Barr to supply AG Product pursuant to Section 4 of this
Agreement, Barr shall provide Shire with a binding purchase order for the quantities of AG Product
required for the initial Launch of AG Product (including the first three months of sales) (the
“Launch Quantities”). If requested by Barr, Shire shall use Commercially Reasonable Efforts to
deliver the Launch Quantities to Barr on or before the License Effective Date, so that Barr may
Launch on the License Effective Date.

          5.5. During the Supply Term, Barr shall deliver a quarterly forecast (a “Forecast”) to Shire
of the quantities of AG Product, by SKU, which Barr reasonably anticipates it will require for
Marketing during the [*] period (“Forecast Period”) beginning three months following the date of
such Forecast and shall include quantities required to be delivered during each month of the
Forecast Period. The foregoing notwithstanding, Barr shall have no obligation to provide Forecasts
or orders beyond the Term of this Agreement. For each such Forecast [*] of the Forecast Period
shall be known as the “Purchase Order Period” and the amounts specified in the Forecast for the
Purchase Order Period shall constitute a binding purchaser order for such period. In addition, in
each subsequent Forecast, the amount ordered for the Purchase Order Period shall not deviate by
more than [*] (as to the entire period or any month therein) from the [*] of the immediately
preceding Forecast. Other than as specifically provided in this paragraph, the amounts set forth
in the Forecasts shall only constitute a non-binding estimate of the AG Product requirements of
Barr.

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EXHIBIT A

          5.6. Subject to and in accordance with the terms of Section 5.3 and 5.4, Shire shall make
deliveries of AG Product to a single delivery destination specified by Barr no more than five (5)
days after Barr’s specified delivery dates. All such shipments of AG Product shall be [*]. In no
event shall Shire be required to make more than [*] AG Product during any month. In the event of
any inconsistency between the terms and conditions of this Agreement on the one hand, and, on the
other hand, the terms and conditions of any other agreement between the Parties, or in Barr’s
purchase order or Shire’s invoice or confirmation, then the terms and conditions of this Agreement
shall govern to the extent of any such inconsistency or conflict, provided, however, that any terms
agreed to in writing by the Parties as reflected in a purchase order, invoice or confirmation that
relate specifically to the quantity, quality, Packaging, Labeling, shipment and Manufacturing Costs
of AG Product shall govern in the event of any such inconsistency or conflict.

          5.7. Shire shall invoice Barr at the time of each shipment of AG Product at the Manufacturing
Cost for such shipment. Barr shall pay each such invoice within [*] of receipt.

          5.8. In addition to the foregoing, the Parties shall work together in good faith and make
Commercially Reasonable Efforts to timely satisfy any changes in the quantities and delivery dates
of AG Product specified in the Forecasts due to changes in demand.

          5.9. AG Products supplied by Shire shall (i) have a shelf life of at least [*] from the date
of Manufacture, (ii) be delivered to Barr within [*] of Manufacture, and (iii) conform to the NDA.

          5.10. All AG Products will be in finished dosage form, filled, Packaged and Labeled for
commercial sale in accordance with the terms and conditions of this Agreement, the Quality
Agreement (as defined in Section 7), and Applicable Laws.

          5.11. During the Term, and for a period of three (3) years thereafter, Shire shall, and shall
ensure that its Affiliates shall, keep at either its normal place of business, or at an off-site
storage facility, detailed, accurate and up to date:

(a) records and books of account sufficient to confirm the calculation of the Manufacturing
Costs; and

(b) information and data contained in any invoices provided to Barr in connection with this
Agreement.

          5.12. On no less than [*] notice from Barr, to the extent that Shire supplies AG Product to
Barr, Shire shall make all such records, books of account, information and data concerning the
Manufacturing Cost of AG Product available for inspection during normal business hours by Barr or
its nominee for the purpose of general review or audit; provided that Barr may not request such
inspection more than once in any calendar year. Upon reasonable belief of discrepancy or dispute,
Barr’s external auditors shall be entitled to take copies or extracts from such records, books of
account,

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EXHIBIT A

information and data (but only to the extent related to the contractual obligations set out in
this Agreement) during any review or audit, provided the external auditor signs a confidentiality
agreement with Shire providing that such records, books of account, information and data shall be
treated as Confidential Information which may be disclosed only to Barr.

          5.13. Barr shall be solely responsible for its costs in making any such review and audit,
unless Barr identifies a discrepancy in the calculation of Manufacturing Costs paid by Barr to
Shire under this Agreement in any calendar year from those properly payable for that calendar year
of [*] or greater, in which event Shire shall be solely responsible for the cost of such review and
audit and refund Barr any overpayment. All information disclosed by Shire or its Affiliates
pursuant to this Section 5.12 shall be deemed Confidential Information of Shire.

          5.14. Nothing in this Agreement shall restrict the right of Barr to simultaneously Market AG
Product and Barr Product.

     6. Quality Assurance; Acceptance

          6.1. Shire represents, covenants and warrants to Barr that:

(a) all AG Product hereunder shall be produced in accordance with cGMP and other Applicable
Laws, rules and regulations and that none of the AG Product supplied hereunder shall be
adulterated or misbranded as defined by the Act; and

(b) all shipments of AG Product supplied hereunder shall meet the specifications and
quality control standards set forth in the NDA or otherwise requested by Barr and approved
by Shire.

(c) Shire or a Shire Affiliate will use Commercially Reasonable Efforts to maintain
throughout the Term of this Agreement all permits, licenses, registrations and other forms
of governmental authorization and approval required in order for Shire to perform its
obligations hereunder in accordance with all Applicable Laws.

(d) Shire or a Shire Affiliate owns and possesses all right, title and interest in the NDA.

(e) Shire has the right to grant all of the rights and licenses granted herein to Barr
under the Adderall XR Intellectual Property, and it is not under any obligation to any
Third Party that conflicts with the terms of this Agreement.

          6.2. Shire shall perform all quality control tests and other inspections required by
applicable cGMP standards and the NDA and shall furnish to Barr a certificate of analysis together
with each lot of AG Product shipped to Barr. Shire will also provide Barr with Material Safety
Data Sheets as required by Applicable Law for the AG Products, and updates of same as necessary.

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EXHIBIT A

          6.3. Shire will promptly notify Barr of any request from the FDA to change AG Product
specifications or Labeling and will notify Barr in writing as promptly as practical of any proposed
or actual changes in specifications.

          6.4. Barr shall conduct, at its own expense, such tests as it deems necessary to determine the
compliance of the AG Product with the requirements of Section 6.1. Barr shall notify Shire as soon
as possible after its receipt of each shipment of the AG Product of any non-compliance of the AG
Product with the requirements of Section 6.1 revealed by such testing.

          6.5. Subject to the provisions of Section 6.6, Shire shall [*]. Subject only to the
indemnification obligations set forth in Section 12.1, Shire shall have no other obligations to
Barr in respect of such AG Product or the representations set forth in Section 6.1.

          6.6. If, following the timely delivery of a notice by Barr pursuant to the provisions of
Section 6.4, Barr and Shire do not agree that any lot or lots of the AG Product referred to in the
notice meets the requirements of Section 6.1, that lot or those lots of the AG Product shall be
tested for such compliance, within [*] after notice of the defect is delivered to Shire, by a
disinterested Third Party expert selected by the mutual agreement of Barr and Shire. The decision
of such Third Party expert with respect to the question of compliance shall be binding upon Barr
and Shire for the purposes of Section 6.1 of this Agreement only. The costs of such testing shall
be borne by Shire if such lot or lots are found not to meet the requirements of Section 6.1 and by
Barr if those lot or lots are found to meet the requirements of Section 6.1.

          6.7. Barr represents, covenants and warrants to Shire that from and after tender to Barr all
AG Product Marketed by Barr will be stored, shipped and handled in accordance with cGMP and all
Applicable Laws, rules and regulations.

	7.	 	Regulatory Responsibilities; Adverse Event Reporting; Recalls

          7.1. As the holder of the NDA, Shire will have sole authority to deal with regulatory matters
relating to the NDA or AG Product. During the Term hereof, Shire shall maintain the NDA in
accordance with all applicable requirements of the FDA and other Governmental Authorities,
including, without limitation, Applicable Law and the filing of all annual and other reports or
filings required by the FDA.

          7.2. Barr shall submit to Shire all reports of Adverse Drug Experiences, together with all
relevant information possessed by it, and will make all reasonable effort to provide such in time
for Shire to meet all periodic and annual safety regulatory obligations to the FDA. Barr shall
also promptly submit to Shire all AG Product inquiries or complaints for handling by Shire. Each
Party shall cooperate with the other and provide information in its possession to the extent
necessary for the other Party to comply with all legal requirements relating to the Manufacture or
Marketing of Generic Product and the Parties will use diligent efforts to agree upon a customary
pharmacovigilance protocol as promptly as practicable after the date hereof to provide for

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EXHIBIT A

the necessary exchange of adverse event and related information to permit each Party to comply
with Applicable Laws and regulations on a timely basis.

          7.3. Each of Shire and Barr will immediately inform the other in writing if it believes one or
more lots of any AG Product should be subject to recall from distribution, setting forth the
reasons therefore with reasonable specificity. To the extent permitted by legal and public safety
requirements, the Parties will confer before initiating any recall. If the Parties do not reach
agreement on the need for a recall, either Party may initiate a recall. The Party initiating the
recall shall initially bear the cost thereof and shall carry out the recall in accordance with best
industry practices. In the event it is determined that a recall resulted from a breach by a Party
of any of its representations or warranties hereunder, such Party shall be responsible for the
costs of the recall and the cost of any unnecessary or groundless recall or other recall which is
not the result of a breach by the other Party or any of its representations and warranties
hereunder, shall be borne by the Party initiating or requesting such recall. In no event shall a
Party’s liability to the other hereunder exceed the actual out-of-pocket costs incurred or the cost
of replacement of AG Product at a price equal to the Manufacturing Costs, as the case may be, and
neither Party shall be liable for lost profits or other consequential damages.

          7.4. As the holder of the Barr ANDA, Barr will have sole authority and responsibility to deal
with regulatory matters relating to the Barr ANDA or Barr Product including maintaining the Barr
ANDA in accordance with all applicable requirements of the FDA, including, without limitation, the
filing of all annual and other reports or filings required by the FDA.

          7.5. Shire shall keep, or cause its Affiliates to keep, as required, such samples and such
records (or copies thereof) in respect of the AG Products as are required by Applicable Law for
such period of time as may be required thereunder.

          7.6. Each of Shire and Barr shall promptly inform the other of any correspondence from the FDA
regarding the Generic Products that would materially affect its ability to meet its obligations
under this Agreement. Each of Shire and Barr shall notify the other promptly, but in no event
later than [*] following the occurrence thereof, of any materially adverse inspections by the FDA
or other regulatory authorities which pertain to the Generic Products or to the facilities of such
Party or its Affiliate where the Generic Products are being manufactured or stored.

          7.7. Within [*] following the Effective Date, Barr and Shire shall enter into a Quality
Agreement in form and content reasonably acceptable to Barr and Shire (“Quality Agreement”). The
Quality Agreement will include protocols and specific responsibilities for handling AG Products
quality complaints, ADE reports, and professional medical service inquiries in accordance with
mutually acceptable procedures and in conformity with Applicable Laws.

     8. Marketing of Generic Product

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EXHIBIT A

          8.1. During the Term, Barr shall not enter into any arrangements or agreements with any other
Person to Market or promote Generic Product other than a Permitted Agreement.

          8.2. Barr will have sole discretion in setting the price for the sale of the Generic Product
in the Territory.

     9. Royalties And Payments

          9.1. Barr Product Royalty. Barr shall pay to Shire a royalty at the rate of [*] on each sale
of Generic Product sold by Barr or its Affiliates [*].

          9.2. Payments due under this Section 9 shall be made within [*] from the end of each calendar
quarter in which Generic Product is sold. All such payments shall include an invoice detailing the
calculation of Net Sales, Net Profits and the royalties payable hereunder, as each may be
applicable.

          9.3. Maintenance of Records. During the Term, and for a period of [*] thereafter, Barr shall,
and shall ensure that its Affiliates shall, keep at either its normal place of business, or at an
off-site storage facility, detailed, accurate and up to date:

(a) records and books of account sufficient to confirm the calculation of the Net Sales and
Net Profits; and

(b) information and data contained in any invoices or reports accompanying any payment to
Shire provided to the other Party in connection with this Agreement.

          9.4. Inspection. On no less than [*] notice from Shire, Barr shall make all such records,
books of account, information and data concerning this Agreement available for inspection during
normal business hours by Shire or its auditors for the purpose of general review or audit; provided
that Shire may not request such inspection more than once in any calendar year. Upon reasonable
belief of discrepancy or dispute, Shire’s external auditors shall be entitled to take copies or
extracts from such records, books of account, information and data (but only to the extent related
to the contractual obligations set out in this Agreement) during any review or audit provided the
external auditor signs a confidentiality agreement with Barr providing that such records, books of
account, information and data shall be treated as Confidential Information of Barr which may be
disclosed to Shire.

          9.5. Inspection Costs. Shire shall be solely responsible for its costs in making any such
review and audit, unless Shire identifies a discrepancy in the calculation of royalties paid to
Shire under this Agreement in any calendar year from those properly payable for that calendar year
of [*] or greater, in which event Barr shall be solely responsible for the cost of such review and
audit and pay Shire any underpayment. All information disclosed by Barr or its Affiliates pursuant
to this Section 9 shall be deemed Confidential Information of Barr.

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EXHIBIT A

     10. Confidentiality

          10.1. Confidential Information. As used in this Agreement, the term “Confidential
Information” means all secret, confidential or proprietary information or data, whether provided in
written, oral, graphic, video, computer, electronic or other form, provided pursuant to this
Agreement or generated pursuant to this Agreement by one Party or its Affiliates (the “Disclosing
Party”) to the other Party or its Affiliates (the “Receiving Party”), including but not limited to,
information relating to the Disclosing Party’s existing or proposed research, development efforts,
patent applications, business or products, and any other materials that have not been made
available by the Disclosing Party to the general public. Confidential Information shall not
include any information or materials that:

(a) were already known to the Receiving Party (other than under an obligation of
confidentiality), at the time of disclosure by the Disclosing Party, to the extent
such Receiving Party has documentary evidence to that effect;

(b) were generally available to the public or otherwise part of the public domain
at the time of disclosure thereof to the Receiving Party;

(c) became generally available to the public or otherwise part of the public domain
after disclosure or development thereof, as the case may be, other than through any
act or omission of a Party in breach of such Party’s confidentiality obligations
under this Agreement;

(d) were disclosed to a Party, other than under an obligation of confidentiality,
by a third party who had no obligation to the Disclosing Party not to disclose such
information to others; or

(e) were independently discovered or developed by or on behalf of the Receiving
Party without the use of the Confidential Information belonging to the other Party,
to the extent such Receiving Party has documentary evidence to that effect.

          10.2. Confidentiality Obligations. Each of Barr and Shire shall keep confidential all
Confidential Information of the other Party with the same degree of care it maintains the
confidentiality of its own Confidential Information but in no event less than a reasonable degree
of care. Neither Party shall use such Confidential Information for any purpose other than in
performance of this Agreement or disclose the same to any other Person other than to such of its
and its Affiliates’ directors, managers, employees, independent contractors, agents or consultants
who are bound to confidentiality restrictions consistent with the terms herein and who have a need
to know such Confidential Information to implement the terms of this Agreement or enforce its
rights under this Agreement. Upon termination of this Agreement, the Receiving Party shall return
or destroy all documents, tapes or other media containing Confidential Information of the
Disclosing Party that remain in the possession of the Receiving Party and its

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EXHIBIT A

Affiliates or their directors, managers, employees, independent contractors, agents or
consultants, except that the Receiving Party may keep one copy of the Confidential Information in
the legal department files of the Receiving Party, solely for archival purposes. Such archival
copy shall continue to be subject to the provisions of this Article 10.

          10.3. Permitted Disclosure and Use. Notwithstanding Section 10.2, a Party may disclose
Confidential Information belonging to the other Party only to the extent such disclosure is
reasonably necessary to: (a) obtain Regulatory Approval to the extent such disclosure is made to a
Governmental Authority; (b) comply with or enforce any of the provisions of this Agreement; (c)
comply with Laws; or (d) comply with applicable stock exchange regulations. If a Party deems it
necessary to disclose Confidential Information of the other Party pursuant to this Section 10.3,
such Party shall give reasonable advance notice of such disclosure to the other Party to permit
such other Party sufficient opportunity to object to such disclosure or to take measures to ensure
confidential treatment of such information. In addition, notwithstanding Section 10.2, the Parties
shall cooperate to prepare standardized public responses to anticipated inquiries from the public,
press, stockholders, investors and/or analysts with respect to the activities hereunder. Despite
the foregoing, each Party agrees that the other Party is free to disclose this Agreement in its
entirety to the United States Federal Trade Commission and the United States Department of Justice,
or to any court with jurisdiction over the litigations settled under the Settlement Agreement
between Shire Laboratories Inc. and Barr Laboratories, Inc. dated August 14, 2006.

          10.4. Unauthorized Disclosure. The Receiving Party acknowledges and agrees that the
Confidential Information of the Disclosing Party constitutes proprietary information and trade
secrets valuable to the Disclosing Party, and that the unauthorized use, loss or outside disclosure
of such Confidential Information shall be presumed to cause irreparable injury to the Disclosing
Party.

          10.5. Notification. The Receiving Party shall notify the Disclosing Party promptly upon
discovery of any unauthorized use or disclosure of the Disclosing Party’s Confidential Information,
and shall cooperate with the Disclosing Party in any reasonably requested fashion to assist the
Disclosing Party to regain possession of such Confidential Information and to prevent its further
unauthorized use or disclosure. The Receiving Party acknowledges that monetary damages may not be
a sufficient remedy for unauthorized disclosure of Confidential Information and that the Disclosing
Party may be entitled, without waiving other rights or remedies, to such injunctive or equitable
relief as may be deemed proper by a court of competent jurisdiction in the event of such
unauthorized disclosure.

          10.6. Confidentiality of this Agreement. The terms of this Agreement shall be Confidential
Information of each Party and, as such, shall be subject to the provisions of this Article 10.

     11. Representations and Warranties of Both Parties

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EXHIBIT A

          With respect to Sections 11.1 and 11.2 below, each of Shire and Barr represents, warrants, and
covenants, to the other Party that:

          11.1. Organization and Authority. Such Party is a corporation duly organized, validly
existing and in good standing under the Laws of its jurisdiction of incorporation. Such Party has
the requisite corporate power and authority to enter into this Agreement and to perform all of its
obligations hereunder. The execution and delivery of this Agreement and the performance by such
Party of its obligations hereunder have been authorized by all requisite corporate action on its
part. This Agreement has been validly executed and delivered by such Party, and, assuming that
this Agreement has been duly authorized, executed and delivered by the other Party, constitutes a
valid and binding obligation of such Party, enforceable against such Party in accordance with its
terms.

          11.2. Consents and Approvals; No Violations.

(a) Except as otherwise set forth in this Agreement or the Settlement Agreement, no
material filing with, and no material permit, authorization, consent such Party of the
transactions contemplated by this Agreement, except for those filings, permits,
authorizations, consents or approvals, the failure of which to be made or obtained would
not materially impair such Party’s ability to consummate the transactions contemplated
hereby or materially delay the consummation of the transactions contemplated hereby.

(b) Neither the execution nor the delivery of this Agreement by such Party, nor the
performance by such Party of its obligations hereunder, will (i) violate the certificate of
incorporation, by-laws or other organizational document of such Party; (ii) conflict in any
material respect with or result in a material violation or breach of, or constitute a
material default under, any material contract, agreement or instrument to which such Party
is a party; or (iii) violate or conflict in any material respect with any material Law,
rule, regulation, judgment, order or decree of any court or Governmental Authority
applicable to such Party, except in the case of clause (ii) or (iii) for violations,
breaches or defaults which would not have a material adverse effect on such Party’s ability
to consummate the transactions contemplated hereby.

     12. Indemnities; Product Liability; Insurance

          12.1. Indemnity by Shire. Shire shall defend, indemnify and hold harmless each of Barr and
its Affiliates and its and their directors, officers, employees and contractors (“Barr Party”) from
and against any and all Losses (“Shire Liability”) arising from or in connection with:

(a) any [*] (“Claim”) resulting from [*] of any Shire Party in connection with the
performance of its obligations under this Agreement;

(b) except to the extent subject to indemnification by Barr pursuant to Section 12.2(c),
any Claim [*];

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EXHIBIT A

(c) Shire’s [*] in accordance with Applicable Laws, regulations, the NDA or this Agreement;

(d) the [*] by Shire of [*]; or

(e) any [*]by a Shire Party of [*];

except, in each case, to the extent that the Losses are caused by the negligence, breach of the
terms of this Agreement, or willful misconduct of a Barr Party.

          12.2. Indemnity by Barr. Barr shall defend, indemnify and hold harmless each of Shire and its
Affiliates and its and their directors, officers, employees and contractors (“Shire Party”) from
and against any Losses (“Barr Liability”) arising from or in connection with:

(a) any Claim resulting from [*] of any Barr Party in connection with the performance of
its obligations under this Agreement;

(b) any Claim [*];

(c) any Claim [*], to the extent that such liability is a result of [*];

(d) the [*] by Barr of [*]; or

(e) any [*] by the Barr Parties of [*];

except, in each case, to the extent that the Barr Liability is caused by the negligence, breach of
the terms of this Agreement, or willful misconduct of a Shire Party.

          12.3. Control of Proceedings. A Party seeking indemnification hereunder shall provide prompt
written notice to the other Party (and, in any event, within [*]) of the assertion of any claim
against such Party as to which indemnity is to be requested hereunder. The indemnifying Party
shall have the sole control over the defense of any Claim, provided that, the indemnifying Party
shall obtain the written consent of the indemnified Party prior to settling or otherwise disposing
of such Claim if as a result of the settlement or Claim disposal the indemnified Party’s interests
are in any way adversely affected.

          12.4. No Admissions. The indemnified Party shall [*] in connection with any Barr Liability or
Shire Liability (as the case may be), [*] without the prior written consent of the indemnifying
Party.

          12.5. Claim Information. Each Party shall promptly:

(a) inform the other by written notice of any actual or threatened Claim to which Sections
12.1 or 12.2 apply;

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EXHIBIT A

(b) provide to the other Party copies of all papers and official documents received in
respect of any such Claim; and

(c) cooperate as reasonably requested by the other Party in the defense of any such Claim.

          12.6. Contributory Negligence. If any Shire Liability or Barr Liability is caused by the
negligence of both Shire and Barr, [*].

          12.7. Limitation of Liability. Except as may be included in a Claim under Section 12.1 or
12.2, or in the event of a breach of Article 10, in no event shall either Party or their respective
Affiliates be liable for [*] based on [*] arising out of this Agreement.

          12.8. Product Liability Insurance. Each Party shall maintain, at its own cost, general
commercial liability insurance (including comprehensive product liability) in such amount as Shire
and Barr respectively, customarily maintain with respect to its other products and which is
reasonable and customary in the U.S. pharmaceutical industry for companies of comparable size and
activities but in any event not less than [*]. In the event the insurance policy obtained by a
Party is a “claims made” policy (as opposed to an “occurrence” policy), such Party shall obtain
comparable insurance for not less than [*] following the expiry or termination of this Agreement.
Barr will cause Shire to be named as an additional insured under Barr’s product liability
insurance.

          12.9. Irreparable Harm. Barr acknowledges that in the event of [*] would be difficult to
calculate and the adequacy of monetary damages calculated at Law would be uncertain. Accordingly,
Barr agrees that in any action by Shire seeking [*], Barr shall not assert or plead the
availability of an adequate remedy at Law as a defense to the obtaining of any such remedy. The
foregoing shall not be in lieu of any other remedy to which Shire may be entitled hereunder in
equity or at Law as a result of such a breach.

          12.10. Limitation on Representations, Warranties and Indemnification. NEITHER PARTY SHALL BE
DEEMED TO MAKE ANY REPRESENTATIONS OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, EXCEPT AS
SPECIFICALLY SET FORTH HEREIN. ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, WITH REGARD TO THE AG PRODUCT TO BE SUPPLIED BY SHIRE HEREUNDER, THE IMPLIED WARRANTIES
OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY DISCLAIMED BY EACH PARTY.

     13. Force Majeure

          13.1. Force Majeure. Neither Party shall be entitled to terminate this Agreement or shall be
liable to the other under this Agreement for loss or damages attributable to any Force Majeure,
provided the Party affected shall give [*] notice

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EXHIBIT A

thereof to the other Party. Subject to Section 13.2, the Party giving such notice shall be
excused from such of its obligations hereunder for so long as it continues to be affected by Force
Majeure.

          13.2. Continued Force Majeure. If any Force Majeure continues unabated for a period of at
least [*], the Parties shall meet to discuss in good faith what actions to take or what
modifications should be made to this Agreement as a consequence of such Force Majeure in order to
alleviate its consequences on the affected Party.

     14. Trademarks and Trade Names

          14.1. Except for the identification of Shire as manufacturer of AG Product on Packaging or
Labeling to the extent required by Law, Barr shall have no right to use any trademark or trade
dress of Shire and shall have no rights to any other intellectual property of Shire or its
Affiliates (including patents or other intellectual property relating to the shape, consistency,
formulation or manufacturing process for the AG Product) other than to the extent of the
Authorization and License. This Agreement shall not provide to Shire any right to use (except for
the purposes of labeling AG Product for Barr hereunder) any trademark or trade dress of Barr or any
rights to any intellectual property of Barr or its Affiliates.

     15. Term and Termination

          15.1. Term. Unless sooner terminated in accordance with the terms hereof, the Term of this
Agreement shall extend from the date hereof until the expiration of the last Valid Claim within the
Adderall XR Intellectual Property (the “Term”). The foregoing notwithstanding, the obligations of
Shire regarding supply of AG Product under this Agreement shall extend from the date hereof only
until the [*] anniversary of the License Effective Date (the “Initial Supply Term”). Thereafter,
the Initial Supply Term shall automatically be extended for successive twelve (12) month periods
(each, an “Additional Supply Term”), unless either Party gives to the other Party not less than [*]
written notice of termination prior to the expiration of the Initial Supply Term, or any Additional
Supply Term, of this Agreement.

          15.2. Termination. Either Party may terminate this Agreement at any time in the event that
the other Party materially breaches this Agreement and, if the material breach is capable of cure,
such material breach continues uncured for a period of [*] after written notice thereof; provided,
however, in the event that the breaching Party has in good faith commenced such cure within such
[*] period, but cannot practically complete such cure within such [*] period, the breaching Party
shall have an additional [*] day cure period. The foregoing notwithstanding, in the event a
material breach is incapable of cure, without limiting any other rights of the non-breaching Party,
including the right to seek injunctive relief, the non-breaching Party shall have the right to
terminate this Agreement only if (i) the breach is the result of ongoing willful misconduct by the
breaching Party, and (ii) the breaching Party is not providing cooperation to mitigate the breach;
or

20

 

EXHIBIT A

          15.3. Effect of Termination. In the event of expiry or termination of this Agreement for any
reason:

(a) Barr shall no longer have the right to Market product under the Authorization and
License; provided that Barr may continue to Market inventory then on hand for an additional
period not to exceed [*], subject to the continued payment to Shire in accordance with
Section 9; and

(b) Each Party shall promptly return to the other Party all Confidential Information of the
other Party or its Affiliates received during the Term, provided that each Party may keep
one copy of such Confidential Information for recordkeeping and compliance purposes.

          15.4. Liability on Termination. The termination or expiry of this Agreement shall not release
either of the Parties from any liability which at the time of termination or expiry has already
accrued to the other Party, nor affect in any way the survival of any other right, duty or
obligation of the Parties which is expressly stated elsewhere in this Agreement to survive such
termination or expiry.

          15.5. Surviving Sections. The provisions of Sections 5.11, 5.12, 5.13, 7.5, 9.3, 9.4 and 9.5
and Articles 10, 12, 14, 15 and 16, and any other provisions necessary and proper to give effect to
the intention of the Parties as to the effect of the Agreement after termination, shall continue in
force in accordance with their respective terms notwithstanding expiry or termination of this
Agreement for any reason.

     16. Miscellaneous Provisions

          16.1. Notice.

(a) Any notice or other document given under this Agreement shall be in writing in the
English language and shall be given by hand or sent by prepaid mail or fax transmission to
the address of the receiving Party as set out in Section 16.2 below unless a different
address or fax number has been notified to the other in writing for this purpose.

(b) Each such notice or document shall:

(i) if sent by hand, be deemed to have been given when delivered at the
relevant address;

(ii) if sent by prepaid mail, be deemed to have been given five (5) days
after posting; or

(iii) if sent by fax be deemed to have been given when transmitted,
provided that, a confirmatory copy of such fax transmission shall have been sent
by prepaid mail within twenty-four (24) hours of such transmission.

21

 

EXHIBIT A

          16.2. Address for Notice. The address for services of notices and other documents on the
Parties shall be:

	 	 	 
	To Shire	 	To Barr
	Address:

	 	Address:
	 
	 	 
	Shire LLC

	 	Barr Laboratories, Inc.
	725 Chesterbrook Boulevard

	 	400 Chestnut Ridge Road,
	Wayne, PA 19087

	 	Woodcliff Lake, NJ 07677
	United States of America

	 	United States of America
	 
	 	 
	Attention: James J.
Harrington, Esq.

	 	Attention: Frederick J. Killion, Esq.
	 
	 	 
	Fax: 484-595-8674

	 	Fax: 888-843-0563

          16.3. Assignment.

(a) Subject to Section 16.3(b), Barr shall not assign or transfer any of its rights or
obligations under this Agreement without the prior written consent of Shire, such consent
not to be unreasonably withheld or delayed.

(b) Each Party shall be entitled to assign all or any of its rights or obligations under
this Agreement to an Affiliate or to a successor entity by way of merger or acquisition of
substantially all of the assets of such Party; provided the Affiliate or other successor
entity expressly assumes in writing those rights, duties and obligations under this
Agreement and this Agreement itself, and provided further that the assigning Party shall
remain responsible for the assignee’s performance of those rights, duties and obligations.

(c) Subject to the foregoing this Agreement shall be binding upon and inure to the benefit
of the Parties and their respective successors and permitted assigns. Any assignment or
transfer in contravention of the terms of this Agreement shall be null and void.

          16.4. Amendment. This Agreement may not be varied, changed, waived, discharged or terminated
orally, except by an instrument in writing signed by the Party against which enforcement of such
variation, change, waiver, discharge or termination is sought.

          16.5. Public Announcements. Except as expressly provided for in the Settlement Agreement,
neither Party shall make any publicity releases, interviews or other dissemination of information
concerning this Agreement or its terms, or either Party’s performance hereunder, to communication
media, financial analysts or others without the prior written approval of the other Party, which
approval shall not be unreasonably withheld, delayed or conditioned. Notwithstanding anything to
the contrary in this Agreement, the Parties understand and agree that either Party, may, if so
required, disclose some or all of the information included in this Agreement or other Confidential

22

 

EXHIBIT A

Information of the other Party (i) in order to comply with its obligations under the Law,
including the United States Securities Act of 1933, the United States Securities Exchange Act of
1934, (ii) the listing standards or agreements of any national or international securities exchange
or The NASDAQ Stock Market or other similar Laws of a Governmental Authority, (iii) to respond to
an inquiry of a Governmental Authority or regulatory authority as required by Law, or (iv) in a
judicial, administrative or arbitration proceeding. In any such event the Party making such
disclosure shall (A) provide the other Party with as much advance notice as reasonably practicable
of the required disclosure, (B) cooperate with the other Party in any attempt to prevent or limit
the disclosure, and (C) limit any disclosure to the specific purpose at issue.

          16.6. Superiority of Agreement. The Parties agree that the provisions of this Agreement,
together with any amendments hereto, shall prevail over any inconsistent statements or provisions
contained in any prior discussions, arrangements or comments between the Parties. It is agreed
that:

(a) neither Party has entered into this Agreement in reliance upon any representation,
warranty or undertaking of the other Party which is not expressly set out in this
Agreement;

(b) neither Party shall have any remedy in respect of misrepresentation or untrue statement
made by the other Party or for any breach of warranty which is not contained in this
Agreement;

(c) this Section 16.6 shall not exclude any liability for, or remedy in respect of,
fraudulent misrepresentation; and

(d) notwithstanding the foregoing, the Settlement Agreement shall be deemed of equal
dignity to this Agreement and this Agreement shall be construed together with the
Settlement Agreement in a consistent manner as reflecting a single intent and purpose.

          16.7. Governing Law. This Agreement shall be governed by and construed in accordance with the
internal Laws of the State of New York, without giving effect to principles of conflicts of law.
The Parties irrevocably agree that the federal district courts in the State of New York shall have
exclusive jurisdiction to deal with any disputes arising out of or in connection with this
Agreement and that, accordingly, any proceedings arising out of or in connection with this
Agreement shall be brought in the U.S. District Court for the Southern District of New York.
Notwithstanding the foregoing, if there is any dispute for which the federal district courts in the
State of New York do not have subject matter jurisdiction, the state courts in New York shall have
jurisdiction. In connection with any dispute arising out of or in connection with this Agreement,
each Party hereby expressly consents and submits to the personal jurisdiction of the federal and
state courts in the County, City and State of New York.

23

 

EXHIBIT A

          16.8. Agreement Costs. Each Party shall pay its own costs, charges and expenses incurred in
connection with the negotiation, preparation and completion of this Agreement.

          16.9. Counterparts. This Agreement may be executed in any number of counterparts and may be
executed by the Parties on separate counterparts, each of which is an original but all of which
together constitute the same instrument.

          16.10. Severability. If and to the extent that any provision of this Agreement is held to be
illegal, void or unenforceable, such provision shall be given no effect and shall be deemed not to
be included in this Agreement but without invalidating any of the remaining provisions of this
Agreement.

          16.11. Relationship of the Parties. In making and performing this Agreement, the Parties are
acting, and intend to be treated, as independent entities; and nothing contained in this Agreement
shall be construed or implied to create an agency, partnership, joint venture, or employer and
employee relationship between Shire and Barr. Except as otherwise provided herein, neither Party
may make any representation, warranty or commitment, whether express or implied, on behalf of, or
incur any charges or expenses for or in the name of, the other Party.

          16.12. Construction. The language in all parts of this Agreement shall be construed, in all
cases, according to its fair meaning. Shire and Barr acknowledge that each Party and its counsel
have reviewed and revised this Agreement and that any rule of construction to the effect that any
ambiguities are to be resolved against the drafting Party shall not be employed in the
interpretation of this Agreement. The words “hereof,” “herein,” “hereto” and “hereunder” and words
of similar import, when used in this Agreement, shall refer to this Agreement as a whole and not to
any particular provision of this Agreement. The terms defined in the singular shall have a
comparable meaning when used in the plural, and vice versa. Whenever used herein, the words
“include,” “includes” and “including” shall mean “include, without limitation,” “includes, without
limitation” and “including, without limitation,” respectively. The masculine, feminine or neuter
gender and the singular or plural number shall each be deemed to include the others whenever the
context so indicates. With respect to any particular action or agreement, the use of the words
“Shire shall” or “Shire will” herein shall also mean “Shire shall cause” the particular action to
be performed. Similarly, with respect to any particular action or agreement, the use of the words
“Barr shall” or “Barr will” herein shall also mean “Barr shall cause” the particular action to be
performed. Nothing in this Agreement shall operate to exclude any provision implied into this
Agreement by Law and which may not be excluded by Law or limit or exclude any liability, right or
remedy to a greater extent than is permissible under Law.

          16.13. Dispute Resolution.

(a) Preliminary Process. If there is a disagreement between the Parties as to the
interpretation of this Agreement or in relation to any aspect of the performance by either
Party of its obligations under this Agreement, the Parties

24

 

EXHIBIT A

shall, within [*] of receipt of a written request from either Party, meet in good faith and
try to resolve the disagreement without recourse to legal proceedings.

(b) Escalation of Dispute. If resolution of the disagreement does not occur within [*]
after such meeting, the matter shall be escalated for determination by the President of
Barr and Shire’s President, Specialty Pharmaceuticals for resolution, who may resolve the
matter themselves or jointly appoint a mediator or independent expert to do so.

(c) Equitable Relief. Nothing in this Section 16.13 restricts either Party’s freedom to
seek urgent relief to preserve a legal right or remedy, or to protect a proprietary or
trade secret right, or to otherwise seek legal remedies through any available channel if
resolution is not otherwise achieved under this Section 16.13.

          16.14. Cumulative Rights. The rights and remedies of each of the Parties under or pursuant to
this Agreement are cumulative, may be exercised as often as such Party considers appropriate and
are in addition to its rights and remedies under general aw.

          16.15. No Third Party Benefit. This Agreement shall be binding upon and inure solely to the
benefit of the Parties hereto, their successors and permitted assigns, and nothing in this
Agreement, express or implied, is intended to or shall confer upon any other Person or Persons any
right, benefits or remedies of any nature whatsoever under or by reason of this Agreement.

          16.16. Further Assurance. Each of the Parties shall do, execute and perform and shall procure
to be done and perform all such further acts deeds documents and things as the other Party may
reasonably require from time to time to give full effect to the terms of this Agreement.

          16.17. Waiver. No failure or delay by either Party in exercising any right or remedy provided
by law under or pursuant to this Agreement shall impair such right or remedy or operate or be
construed as a waiver or variation of it or preclude its exercise at any subsequent time and no
single or partial exercise of any such right or remedy shall preclude any other or further exercise
of it or the exercise of any other right or remedy.

[Signature Page Follows]

25

 

EXHIBIT A

[Signature Page to the License Agreement]

IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their
authorized representatives as of the date first above written.

SHIRE LLC

	 	 	 	 	 	 	 	 	 	 	 
	Date:
	 	August 14, 2006	 	 	 	By:	 	/s/  Matthew Emmens	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Matthew Emmens	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	CEO	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BARR LABORATORIES, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:
	 	August 14, 2006	 	 	 	By:	 	/s/  Paul Bisaro	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	Paul Bisaro	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	President & C.O.O.	 	 
	 

	 	 	 	 	 	 	 	 	 	 

License Agreement Signature Page

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