Document:

Exhibit 10.1

Exhibit 10.1

CLARIENT, INC.

2007 INCENTIVE AWARD PLAN

AS AMENDED BY RESOLUTION ADOPTED BY THE BOARD OF DIRECTORS ON APRIL 14, 2010,

AND APPROVED BY STOCKHOLDERS ON JUNE 8, 2010

ARTICLE 1

PURPOSE

The purpose of the Clarient, Inc. 2007 Incentive Award Plan (the “Plan”) is to promote the
success and enhance the value of Clarient, Inc. (the “Company”) by linking the personal interests
of the members of the Board, Employees and Consultants to those of Company stockholders and by
providing such individuals with an incentive for outstanding performance to generate superior
returns to Company stockholders. The Plan is further intended to provide flexibility to the
Company in its ability to motivate, attract, and retain the services of members of the Board,
Employees and Consultants upon whose judgment, interest, and special effort the successful conduct
of the Company’s operation is largely dependent.

ARTICLE 2

DEFINITIONS AND CONSTRUCTION

Wherever the following terms are used in the Plan they shall have the meanings specified
below, unless the context clearly indicates otherwise. The singular pronoun shall include the
plural where the context so indicates.

2.1 “Award” means an Option, a Restricted Stock award, a Stock Appreciation Right award, a
Performance Share award, a Performance Stock Unit award, a Dividend Equivalents award, a Stock
Payment award, a Deferred Stock award, a Restricted Stock Unit award, a Performance Bonus Award, or
a Performance-Based Award granted to a Participant pursuant to the Plan.

2.2 “Award Agreement” means any written agreement, contract, or other instrument or document
evidencing an Award, including through electronic medium.

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

2.4 “Change in Control” means the issuance, sale or transfer (including a transfer as a result
of death, disability, operation of law or otherwise) in a single transaction or group of related
transactions to any entity, person or group (other than Safeguard Scientifics, Inc. and/or its
affiliates) of the beneficial ownership of newly issued, outstanding or treasury shares of the
capital stock of the Company having 50% or more of the combined voting power of the Company’s then
outstanding securities entitled to vote for at least a majority of the authorized number of
directors of the Company, or any merger, consolidation, sale of all or substantially all of the
assets or other comparable transaction as a result of which all or substantially all of the assets
and business of the Company are acquired directly or indirectly by another entity which prior to
the acquisition was not an affiliate of the Company (as defined in the regulations of the
Securities and Exchange Commission under the Securities Act of 1933), other than any such merger,
consolidation, sale or other transaction which results in the Company’s voting securities
outstanding immediately before the transaction continuing to represent (either by remaining
outstanding or by being converted into voting securities of the Company or the person that, as a
result of the transaction, controls, directly or indirectly, the Company or owns, directly or
indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business
of the Company (the Company or such person, the “Successor Entity”)) directly or indirectly, at
least 50% of the combined voting power of the Successor Entity’s outstanding voting securities
immediately after the transaction; provided, however, that the transfer by Safeguard of Company
securities held by Safeguard to one or more persons or entities (whether or not part of a Group)
shall not constitute a Change of Control unless a majority of the Company’s securities not held by
Safeguard are also transferred to one or more persons or entities in the same transaction or group
of related transactions. Group shall have the same meaning as in
Section 13(d) of the Securities Exchange Act of 1934, and “affiliate” shall have the same
meaning as in Rule 405 of the Securities Exchange Commission adopted under the Securities Act of
1933.

 

 

 

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

2.6 “Committee” means the committee of the Board described in Article 12.

2.7 “Consultant” means any consultant or adviser if: (a) the consultant or adviser renders
bona fide services to the Company; (b) the services rendered by the consultant or adviser are not
in connection with the offer or sale of securities in a capital-raising transaction and do not
directly or indirectly promote or maintain a market for the Company’s securities; and (c) the
consultant or adviser is a natural person who has contracted directly with the Company to render
such services.

2.8 “Covered Employee” means an Employee who is, or could be, a “covered employee” within the
meaning of Section 162(m) of the Code.

2.9 “Deferred Stock” means a right to receive a specified number of shares of Stock during
specified time periods pursuant to Section 8.5.

2.10 “Disability” means that the Participant qualifies to receive long-term disability
payments under the Company’s long-term disability insurance program, as it may be amended from time
to time.

2.11 “Dividend Equivalents” means a right granted to a Participant pursuant to Section 8.3 to
receive the equivalent value (in cash or Stock) of dividends paid on Stock.

2.12 “Effective Date” shall have the meaning set forth in Section 13.1.

2.13 “Eligible Individual” means any person who is an Employee, a Consultant or an Independent
Director, as determined by the Committee.

2.14 “Employee” means any officer or other employee (as defined in accordance with
Section 3401(c) of the Code) of the Company or any Subsidiary.

2.15 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

2.16 “Fair Market Value” means, as of any given date, (a) if Stock is traded on an exchange,
the closing price of a share of Stock as reported in the Wall Street Journal for such date (or, if
no sale occurred on such date, for the first trading date immediately prior to such date during
which a sale occurred); or (b) if Stock is not traded on an exchange but is quoted on a quotation
system, the mean between the closing representative bid and asked prices for the Stock on such date
as reported by such quotation system (or, if no bid and asked prices for the Stock were reported on
such date, on the date immediately prior to such date on which bid and asked prices are reported by
such quotation system); or (c) if Stock is not publicly traded, the fair market value established
by the Committee acting in good faith.

2.17 “Incentive Stock Option” means an Option that is intended to meet the requirements of
Section 422 of the Code or any successor provision thereto.

2.18 “Independent Director” means a member of the Board who is not an Employee of the Company.

2.19 “Non-Employee Director” means a member of the Board who qualifies as a “Non-Employee
Director” as defined in Rule 16b-3(b)(3) under the Exchange Act, or any successor rule.

2.20 “Non-Qualified Stock Option” means an Option that is not intended to be an Incentive
Stock Option.

 

 

 

2.21 “Option” means a right granted to a Participant pursuant to Article 5 of the Plan to
purchase a specified number of shares of Stock at a specified price during specified time periods.
An Option may be either an Incentive Stock Option or a Non-Qualified Stock Option.

2.22 “Participant” means any Eligible Individual who, as a member of the Board, Consultant or
Employee, has been granted an Award pursuant to the Plan.

2.23 “Performance-Based Award” means an Award granted to selected Covered Employees pursuant
to Section 8.7, but which is subject to the terms and conditions set forth in Article 9.

2.24 “Performance Bonus Award” has the meaning set forth in Section 8.7.

2.25 “Performance Criteria” means the criteria that the Committee selects for purposes of
establishing the Performance Goal or Performance Goals for a Participant for a Performance Period.
The Performance Criteria that will be used to establish Performance Goals are limited to the
following: net earnings (either before or after interest, taxes, depreciation and amortization),
economic value-added, sales or revenue, net income (either before or after taxes), operating
earnings, cash flow (including, but not limited to, operating cash flow and free cash flow), cash
flow return on capital, return on net assets, return on stockholders’ equity, return on assets,
return on capital, stockholder returns, return on sales, gross or net profit margin, productivity,
expense, margins, operating efficiency, customer satisfaction, working capital, earnings per share,
price per share of Stock, and market share, any of which may be measured either in absolute terms
or as compared to any incremental increase or as compared to results of a peer group. The
Committee shall define in an objective fashion the manner of calculating the Performance Criteria
it selects to use for such Performance Period for such Participant.

2.26 “Performance Goals” means, for a Performance Period, the goals established in writing by
the Committee for the Performance Period based upon the Performance Criteria. Depending on the
Performance Criteria used to establish such Performance Goals, the Performance Goals may be
expressed in terms of overall Company performance or the performance of a division, business unit,
or an individual. The Committee, in its discretion, may, within the time prescribed by
Section 162(m) of the Code, adjust or modify the calculation of Performance Goals for such
Performance Period in order to prevent the dilution or enlargement of the rights of Participants
(a) in the event of, or in anticipation of, any unusual or extraordinary corporate item,
transaction, event, or development, or (b) in recognition of, or in anticipation of, any other
unusual or nonrecurring events affecting the Company, or the financial statements of the Company,
or in response to, or in anticipation of, changes in applicable laws, regulations, accounting
principles, or business conditions.

2.27 “Performance Period” means the one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, over which the attainment of one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to, and the
payment of, a Performance-Based Award.

2.28 “Performance Share” means a right granted to a Participant pursuant to Section 8.1, to
receive Stock, the payment of which is contingent upon achieving certain Performance Goals or other
performance-based targets established by the Committee.

2.29 “Performance Stock Unit” means a right granted to a Participant pursuant to Section 8.2,
to receive Stock, the payment of which is contingent upon achieving certain Performance Goals or
other performance-based targets established by the Committee.

2.30 “Prior Plan” means the ChromaVision Medical Systems, Inc. 1996 Equity Compensation Plan,
as such plan may be amended from time to time.

2.31 “Plan” means this Clarient, Inc. 2007 Incentive Award Plan and any Appendixes attached
hereto, as it may be amended from time to time.

 

 

 

2.32 “Qualified Performance-Based Compensation” means any compensation that is intended to
qualify as “qualified performance-based compensation” as described in Section 162(m)(4)(C) of the
Code.

2.33 “Restricted Stock” means Stock awarded to a Participant pursuant to Article 6 that is
subject to certain restrictions and may be subject to risk of forfeiture.

2.34 “Restricted Stock Unit” means an Award granted pursuant to Section 8.6.

2.35 “Securities Act” shall mean the Securities Act of 1933, as amended.

2.36 “Stock” means the common stock of the Company, par value $0.01 per share, and such other
securities of the Company that may be substituted for Stock pursuant to Article 11.

2.37 “Stock Appreciation Right” or “SAR” means a right granted pursuant to Article 7 to
receive a payment equal to the excess of the Fair Market Value of a specified number of shares of
Stock on the date the SAR is exercised over the Fair Market Value on the date the SAR was granted
as set forth in the applicable Award Agreement.

2.38 “Stock Payment” means (a) a payment in the form of shares of Stock, or (b) an option or
other right to purchase shares of Stock, as part of any bonus, deferred compensation or other
arrangement, made in lieu of all or any portion of the compensation, granted pursuant to
Section 8.4.

2.39 “Subsidiary” means any “subsidiary corporation” as defined in Section 424(f) of the Code
and any applicable regulations promulgated thereunder or any other entity of which a majority of
the outstanding voting stock or voting power is beneficially owned directly or indirectly by the
Company.

ARTICLE 3

SHARES SUBJECT TO THE PLAN

3.1 Number of Shares.

(a) Subject to Article 11 and Section 3.1(b), the aggregate number of shares of Stock which
may be issued or transferred pursuant to Awards under the Plan shall be the sum of (i) 12,000,000
shares and (ii) any shares of Stock which are subject to any award under the Prior Plan as of the
Effective Date and which award thereafter terminates, expires or lapses for any reason; provided,
however, that no more than 12,000,000 shares of Stock may be delivered upon the exercise of
Incentive Stock Options.

(b) To the extent that an Award terminates, expires, or lapses for any reason, any shares of
Stock subject to the Award shall again be available for the grant of an Award pursuant to the Plan.
Additionally, any shares of Stock tendered or withheld to satisfy the grant or exercise price or
tax withholding obligation pursuant to any Award shall again be available for the grant of an Award
pursuant to the Plan. To the extent permitted by applicable law or any exchange rule, shares of
Stock issued in assumption of, or in substitution for, any outstanding awards of any entity
acquired in any form of combination by the Company or any Subsidiary shall not be counted against
shares of Stock available for grant pursuant to this Plan. The payment of Dividend Equivalents in
cash in conjunction with any outstanding Awards shall not be counted against the shares available
for issuance under the Plan. Notwithstanding the provisions of this Section 3.1(b), no shares of
common stock may again be optioned, granted or awarded if such action would cause an Incentive
Stock Option to fail to qualify as an incentive stock option under Section 422 of the Code.

3.2 Stock Distributed. Any Stock distributed pursuant to an Award may consist, in whole or in
part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market.

 

 

 

3.3 Limitation on Number of Shares Subject to Awards. Notwithstanding any provision in the
Plan to the contrary, and subject to Article 11, the maximum number of shares of Stock with respect
to one or more
Awards that may be granted to any one Participant during any one calendar year period
(measured from the date of any grant) shall be 750,000 and the maximum amount that may be paid in
cash during any one calendar year period (measured from the date of any payment) with respect to
any Performance-Based Award (including, without limitation, any Performance Bonus Award) shall be
$750,000.

ARTICLE 4

ELIGIBILITY AND PARTICIPATION

4.1 Eligibility. Each Eligible Individual shall be eligible to be granted one or more Awards
pursuant to the Plan.

4.2 Participation. Subject to the provisions of the Plan, the Committee may, from time to
time, select from among all Eligible Individuals, those to whom Awards shall be granted and shall
determine the nature and amount of each Award. No Eligible Individual shall have any right to be
granted an Award pursuant to this Plan.

4.3 Foreign Participants. Notwithstanding any provision of the Plan to the contrary, in order
to comply with the laws in other countries in which the Company and its Subsidiaries operate or
have Eligible Individuals, the Committee, in its sole discretion, shall have the power and
authority to: (i) determine which Subsidiaries shall be covered by the Plan; (ii) determine which
Eligible Individuals outside the United States are eligible to participate in the Plan;
(iii) modify the terms and conditions of any Award granted to Eligible Individuals outside the
United States to comply with applicable foreign laws; (iv) establish subplans and modify exercise
procedures and other terms and procedures, to the extent such actions may be necessary or advisable
(any such subplans and/or modifications shall be attached to this Plan as appendices); provided,
however, that no such subplans and/or modifications shall increase the share limitations contained
in Sections 3.1 and 3.3 of the Plan; and (v) take any action, before or after an Award is made,
that it deems advisable to obtain approval or comply with any necessary local governmental
regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any
actions hereunder, and no Awards shall be granted, that would violate the Exchange Act, the Code,
any securities law or governing statute or any other applicable law.

ARTICLE 5

STOCK OPTIONS

5.1 General. The Committee is authorized to grant Options to Participants on the following
terms and conditions:

(a) Exercise Price. The exercise price per share of Stock subject to an Option shall
be determined by the Committee and set forth in the Award Agreement; provided, that, subject to
Section 5.2(d), the exercise price for any Option shall not be less than 100% of the Fair Market
Value of a share of Stock on the date of grant.

(b) Time and Conditions of Exercise. The Committee shall determine the time or times
at which an Option may be exercised in whole or in part; provided that the term of any Option
granted under the Plan shall not exceed ten years. The Committee shall also determine the
performance or other conditions, if any, that must be satisfied before all or part of an Option may
be exercised.

(c) Payment. The Committee shall determine the methods by which the exercise price of
an Option may be paid, the form of payment, including, without limitation: (i) cash, (ii) shares
of Stock which have been held for such period of time as may be required by the Committee in order
to avoid adverse accounting consequences to the Company and which have a Fair Market Value on the
date of surrender equal to the aggregate exercise price of the shares as to which such Option shall
be exercised or (iii) other property acceptable to the Committee, and the methods by which shares
of Stock shall be delivered or deemed to be delivered to Participants. Notwithstanding any other
provision of the Plan to the contrary, no Participant who is a member of the Board or an “executive
officer” of the Company within the meaning of Section 13(k) of the Exchange Act shall be permitted
to pay the exercise price of an Option, or continue any extension of credit with respect to the
exercise price of an Option with a loan from the Company or a loan arranged by the Company in
violation of Section 13(k) of the Exchange Act.

 

 

 

(d) Evidence of Grant. All Options shall be evidenced by an Award Agreement between
the Company and the Participant. The Award Agreement shall include such additional provisions as
may be specified by the Committee.

5.2 Incentive Stock Options. Incentive Stock Options shall be granted only to Employees and
the terms of any Incentive Stock Options granted pursuant to the Plan, in addition to the
requirements of Section 5.1, must comply with the provisions of this Section 5.2.

(a) Expiration. Subject to Section 5.2(c), an Incentive Stock Option shall expire and
may not be exercised to any extent by anyone after the first to occur of the following events:

(i) Ten years from the date it is granted, unless an earlier time is set in the Award
Agreement;

(ii) Three months after the Participant’s termination of employment as an Employee; and

(iii) One year after the date of the Participant’s termination of employment or service on
account of Disability or death. Upon the Participant’s Disability or death, any Incentive Stock
Options exercisable at the Participant’s Disability or death may be exercised by the Participant’s
legal representative or representatives, by the person or persons entitled to do so pursuant to the
Participant’s last will and testament, or, if the Participant fails to make testamentary
disposition of such Incentive Stock Option or dies intestate, by the person or persons entitled to
receive the Incentive Stock Option pursuant to the applicable laws of descent and distribution.

(b) Dollar Limitation. The aggregate Fair Market Value (determined as of the time the
Option is granted) of all shares of Stock with respect to which Incentive Stock Options are first
exercisable by a Participant in any calendar year may not exceed $100,000 or such other limitation
as imposed by Section 422(d) of the Code, or any successor provision. To the extent that Incentive
Stock Options are first exercisable by a Participant in excess of such limitation, the excess shall
be considered Non-Qualified Stock Options.

(c) Ten Percent Owners. An Incentive Stock Option shall be granted to any individual
who, at the date of grant, owns stock possessing more than ten percent of the total combined voting
power of all classes of Stock of the Company only if such Option is granted at a price that is not
less than 110% of Fair Market Value on the date of grant and the Option is exercisable for no more
than five years from the date of grant.

(d) Notice of Disposition. The Participant shall give the Company prompt notice of
any disposition of shares of Stock acquired by exercise of an Incentive Stock Option within (i) two
years from the date of grant of such Incentive Stock Option or (ii) one year after the transfer of
such shares of Stock to the Participant.

(e) Right to Exercise. During a Participant’s lifetime, an Incentive Stock Option may
be exercised only by the Participant.

(f) Failure to Meet Requirements. Any Option (or portion thereof) purported to be an
Incentive Stock Option, which, for any reason, fails to meet the requirements of Section 422 of the
Code shall be considered a Non-Qualified Stock Option.

5.3 Substitution of Stock Appreciation Rights. The Committee may provide in the Award
Agreement evidencing the grant of an Option that the Committee, in its sole discretion, shall have
to right to substitute a Stock Appreciation Right for such Option at any time prior to or upon
exercise of such Option; provided, that such Stock Appreciation Right shall be exercisable with
respect to the same number of shares of Stock for which such substituted Option would have been
exercisable.

 

 

 

5.4 Granting of Options to Independent Directors. The Board may from time to time, in its
sole discretion, and subject to the limitations of the Plan:

(a) Select from and grant Options to any Independent Directors (including Independent
Directors who have previously been granted Options under the Plan);

(b) Subject to Section 3.3, determine the number of shares of Stock that may be purchased upon
exercise of the Options granted to such selected Independent Directors; and

(c) Subject to the provisions of this Article 5, determine the terms and conditions of such
Options, consistent with the Plan.

Options granted to Independent Directors shall be Non-Qualified Stock Options.

ARTICLE 6

RESTRICTED STOCK AWARDS

6.1 Grant of Restricted Stock. The Committee is authorized to make Awards of Restricted Stock
to any Participant selected by the Committee in such amounts and subject to such terms and
conditions as determined by the Committee. All Awards of Restricted Stock shall be evidenced by an
Award Agreement.

6.2 Issuance and Restrictions. Restricted Stock shall be subject to such restrictions on
transferability and other restrictions as the Committee may impose (including, without limitation,
limitations on the right to vote Restricted Stock or the right to receive dividends on the
Restricted Stock). These restrictions may lapse separately or in combination at such times,
pursuant to such circumstances, in such installments, or otherwise, as the Committee determines at
the time of the grant of the Award or thereafter.

6.3 Forfeiture. Except as otherwise determined by the Committee at the time of the grant of
the Award or thereafter, upon termination of employment or service during the applicable
restriction period, Restricted Stock that is at that time subject to restrictions shall be
forfeited; provided, however, that the Committee may (a) provide in any Restricted Stock Award
Agreement that restrictions or forfeiture conditions relating to Restricted Stock will be waived in
whole or in part in the event of terminations resulting from specified causes, and (b) in other
cases waive in whole or in part restrictions or forfeiture conditions relating to Restricted Stock.

6.4 Certificates for Restricted Stock. Restricted Stock granted pursuant to the Plan may be
evidenced in such manner as the Committee shall determine. If certificates representing shares of
Restricted Stock are registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to such
Restricted Stock, and the Company may, at its discretion, retain physical possession of the
certificate until such time as all applicable restrictions lapse.

ARTICLE 7

STOCK APPRECIATION RIGHTS

7.1 Grant of Stock Appreciation Rights.

(a) A Stock Appreciation Right may be granted to any Participant selected by the Committee. A
Stock Appreciation Right shall be subject to such terms and conditions not inconsistent with the
Plan as the Committee shall impose and shall be evidenced by an Award Agreement.

(b) A Stock Appreciation Right shall entitle the Participant (or other person entitled to
exercise the Stock Appreciation Right pursuant to the Plan) to exercise all or a specified portion
of the Stock Appreciation Right (to the extent then exercisable pursuant to its terms) and to
receive from the Company an amount equal to the product of (i) the excess of (A) the Fair Market
Value of the Stock on the date the Stock Appreciation
Right is exercised over (B) the Fair Market Value of the Stock on the date the Stock
Appreciation Right was granted and (ii) the number of shares of Stock with respect to which the
Stock Appreciation Right is exercised, subject to any limitations the Committee may impose.

 

 

 

7.2 Payment and Limitations on Exercise.

(a) Subject to Section 7.2(b), payment of the amounts determined under Section 7.1(b) above
shall be in cash, in Stock (based on its Fair Market Value as of the date the Stock Appreciation
Right is exercised) or a combination of both, as determined by the Committee in the Award
Agreement.

(b) To the extent any payment under Section 7.1(b) is effected in Stock, it shall be made
subject to satisfaction of the provisions of Sections 5.1 and 5.4 pertaining to Options.

7.3 Time and Conditions of Exercise. The term of any Stock Appreciation Right granted under
the Plan shall not exceed ten years.

ARTICLE 8

OTHER TYPES OF AWARDS

8.1 Performance Share Awards. Any Participant selected by the Committee may be granted one or
more Performance Share awards which shall be denominated in a number of shares of Stock and which
may be linked to any one or more of the Performance Criteria or other specific performance criteria
determined appropriate by the Committee, in each case on a specified date or dates or over any
period or periods determined by the Committee. In making such determinations, the Committee shall
consider (among such other factors as it deems relevant in light of the specific type of award) the
contributions, responsibilities and other compensation of the particular Participant.

8.2 Performance Stock Units. Any Participant selected by the Committee may be granted one or
more Performance Stock Unit awards which shall be denominated in unit equivalent of shares of Stock
and/or units of value including dollar value of shares of Stock and which may be linked to any one
or more of the Performance Criteria or other specific performance criteria determined appropriate
by the Committee, in each case on a specified date or dates or over any period or periods
determined by the Committee. In making such determinations, the Committee shall consider (among
such other factors as it deems relevant in light of the specific type of award) the contributions,
responsibilities and other compensation of the particular Participant.

8.3 Dividend Equivalents.

(a) Any Participant selected by the Committee may be granted Dividend Equivalents based on the
dividends declared on the shares of Stock that are subject to any Award, to be credited as of
dividend payment dates, during the period between the date the Award is granted and the date the
Award is exercised, vests or expires, as determined by the Committee. Such Dividend Equivalents
shall be converted to cash or additional shares of Stock by such formula and at such time and
subject to such limitations as may be determined by the Committee.

(b) Dividend Equivalents granted with respect to Options or SARs that are intended to be
Qualified Performance-Based Compensation shall be payable, with respect to pre-exercise periods,
regardless of whether such Option or SAR is subsequently exercised.

8.4 Stock Payments. Any Participant selected by the Committee may receive Stock Payments in
the manner determined from time to time by the Committee; provided, that unless otherwise
determined by the Committee such Stock Payments shall be made in lieu of base salary, bonus, or
other cash compensation otherwise payable to such Participant. The number of shares shall be
determined by the Committee and may be based upon the Performance Criteria or other specific
performance criteria determined appropriate by the Committee, determined on the date such Stock
Payment is made or on any date thereafter.

 

 

 

8.5 Deferred Stock. Any Participant selected by the Committee may be granted an award of
Deferred Stock in the manner determined from time to time by the Committee. The number of shares
of Deferred Stock shall be determined by the Committee and may be linked to the Performance
Criteria or other specific performance criteria determined to be appropriate by the Committee, in
each case on a specified date or dates or over any period or periods determined by the Committee.
Stock underlying a Deferred Stock award will not be issued until the Deferred Stock award has
vested, pursuant to a vesting schedule or performance criteria set by the Committee. Unless
otherwise provided by the Committee, a Participant awarded Deferred Stock shall have no rights as a
Company stockholder with respect to such Deferred Stock until such time as the Deferred Stock Award
has vested and the Stock underlying the Deferred Stock Award has been issued. Deferred Stock
Awards shall either be exempt from the requirements of Section 409A of the Code or, if they are not
exempt from such requirements, shall satisfy such requirements.

The amount and other terms and conditions (including any which may be required under
Section 409A of the Code) to which such Deferred Stock Award is subject to shall be set forth in
the Participant’s Award Agreement.

8.6 Restricted Stock Units. The Committee is authorized to make Awards of Restricted Stock
Units to any Participant selected by the Committee in such amounts and subject to such terms and
conditions as determined by the Committee. At the time of grant, the Committee shall specify the
date or dates on which the Restricted Stock Units shall become fully vested and nonforfeitable, and
may specify such conditions to vesting as it deems appropriate. At the time of grant, the
Committee shall specify the maturity date applicable to each grant of Restricted Stock Units which
shall be no earlier than the vesting date or dates of the Award and may be determined at the
election of the grantee. On the maturity date, the Company shall, subject to Section 10.5(b),
transfer to the Participant one unrestricted, fully transferable share of Stock for each Restricted
Stock Unit scheduled to be paid out on such date and not previously forfeited.

8.7 Performance Bonus Awards. Any Participant selected by the Committee may be granted one or
more Performance-Based Awards in the form of a cash bonus (a “Performance Bonus Award”) payable
upon the attainment of Performance Goals that are established by the Committee and relate to one or
more of the Performance Criteria, in each case on a specified date or dates or over any period or
periods determined by the Committee. Any such Performance Bonus Award paid to a Covered Employee
shall be based upon objectively determinable bonus formulas established in accordance with
Article 9.

8.8 Term. Except as otherwise provided herein, the term of any Award of Performance Shares,
Performance Stock Units, Dividend Equivalents, Stock Payments, Deferred Stock or Restricted Stock
Units shall be set by the Committee in its discretion.

8.9 Exercise or Purchase Price. The Committee may establish the exercise or purchase price,
if any, of any Award of Performance Shares, Performance Stock Units, Deferred Stock, Stock Payments
or Restricted Stock Units; provided, however, that such price shall not be less than the par value
of a share of Stock on the date of grant, unless otherwise permitted by applicable state law.

8.10 Exercise upon Termination of Employment or Service. An Award of Performance Shares,
Performance Stock Units, Dividend Equivalents, Deferred Stock, Stock Payments and Restricted Stock
Units shall only be exercisable or payable while the Participant is an Employee, Consultant or a
member of the Board, as applicable; provided, however, that the Committee in its sole and absolute
discretion, at the time of grant or any time thereafter, may provide that an Award of Performance
Shares, Performance Stock Units, Dividend Equivalents, Stock Payments, Deferred Stock or Restricted
Stock Units may be exercised or paid subsequent to a termination of employment or service, as
applicable, or following a Change in Control of the Company, or because of the Participant’s
retirement, death or disability, or otherwise; provided, however, that any such provision with
respect to Performance Shares or Performance Stock Units shall be subject to the requirements of
Section 162(m) of the Code that apply to Qualified Performance-Based Compensation.

8.11 Form of Payment. Payments with respect to any Awards granted under this Article 8 shall
be made in cash, in Stock or a combination of both, as determined by the Committee.

8.12 Award Agreement. All Awards under this Article 8 shall be subject to such additional
terms and conditions as determined by the Committee and shall be evidenced by an Award Agreement.

 

 

 

ARTICLE 9

PERFORMANCE-BASED AWARDS

9.1 Purpose. The purpose of this Article 9 is to provide the Committee the ability to qualify
Awards other than Options and SARs and that are granted pursuant to Articles 6 and 8 as Qualified
Performance-Based Compensation. If the Committee, in its discretion, decides to grant a
Performance-Based Award to a Covered Employee, the provisions of this Article 9 shall control over
any contrary provision contained in Articles 6 or 8; provided, however, that the Committee may in
its discretion grant Awards to Covered Employees that are based on Performance Criteria or
Performance Goals but that do not satisfy the requirements of this Article 9.

9.2 Applicability. This Article 9 shall apply only to those Covered Employees selected by the
Committee to receive Performance-Based Awards. The designation of a Covered Employee as a
Participant for a Performance Period shall not in any manner entitle the Participant to receive an
Award for the period. Moreover, designation of a Covered Employee as a Participant for a
particular Performance Period shall not require designation of such Covered Employee as a
Participant in any subsequent Performance Period and designation of one Covered Employee as a
Participant shall not require designation of any other Covered Employees as a Participant in such
period or in any other period.

9.3 Procedures with Respect to Performance-Based Awards. To the extent necessary to comply
with the Qualified Performance-Based Compensation requirements of Section 162(m)(4)(C) of the Code,
with respect to any Award granted under Articles 6 or 8 which may be granted to one or more Covered
Employees, no later than ninety (90) days following the commencement of any fiscal year in question
or any other designated fiscal period or period of service (or such other time as may be required
or permitted by Section 162(m) of the Code), the Committee shall, in writing, (a) designate one or
more Covered Employees, (b) select the Performance Criteria applicable to the Performance Period,
(c) establish the Performance Goals, and amounts of such Awards, as applicable, which may be earned
for such Performance Period, and (d) specify the relationship between Performance Criteria and the
Performance Goals and the amounts of such Awards, as applicable, to be earned by each Covered
Employee for such Performance Period. Following the completion of each Performance Period, the
Committee shall certify in writing whether the applicable Performance Goals have been achieved for
such Performance Period. In determining the amount earned by a Covered Employee, the Committee
shall have the right to reduce or eliminate (but not to increase) the amount payable at a given
level of performance to take into account additional factors that the Committee may deem relevant
to the assessment of individual or corporate performance for the Performance Period.

9.4 Payment of Performance-Based Awards. Unless otherwise provided in the applicable Award
Agreement, a Participant must be employed by the Company or a Subsidiary on the day a
Performance-Based Award for such Performance Period is paid to the Participant. Furthermore, a
Participant shall be eligible to receive payment pursuant to a Performance-Based Award for a
Performance Period only if the Performance Goals for such period are achieved. In determining the
amount earned under a Performance-Based Award, the Committee may reduce or eliminate the amount of
the Performance-Based Award earned for the Performance Period, if in its sole and absolute
discretion, such reduction or elimination is appropriate.

9.5 Additional Limitations. Notwithstanding any other provision of the Plan, any Award which
is granted to a Covered Employee and is intended to constitute Qualified Performance-Based
Compensation shall be subject to any additional limitations set forth in Section 162(m) of the Code
(including any amendment to Section 162(m) of the Code) or any regulations or rulings issued
thereunder that are requirements for qualification as qualified performance-based compensation as
described in Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent
necessary to conform to such requirements.

 

 

 

ARTICLE 10

PROVISIONS APPLICABLE TO AWARDS

10.1 Stand-Alone and Tandem Awards. Awards granted pursuant to the Plan may, in the
discretion of the Committee, be granted either alone, in addition to, or in tandem with, any other
Award granted pursuant to the Plan. Awards granted in addition to or in tandem with other Awards
may be granted either at the same time as or at a different time from the grant of such other
Awards.

10.2 Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that set
forth the terms, conditions and limitations for each Award which may include the term of an Award,
the provisions applicable in the event the Participant’s employment or service terminates, and the
Company’s authority to unilaterally or bilaterally amend, modify, suspend, cancel or rescind an
Award.

10.3 Limits on Transfer. No right or interest of a Participant in any Award may be pledged,
encumbered, or hypothecated to or in favor of any party other than the Company or a Subsidiary, or
shall be subject to any lien, obligation, or liability of such Participant to any other party other
than the Company or a Subsidiary. Except as otherwise provided by the Committee at the time of
grant or any time thereafter, no Award shall be assigned, transferred, or otherwise disposed of by
a Participant other than by will or the laws of descent and distribution. The Committee by express
provision in the Award or an amendment thereto may permit an Award (other than an Incentive Stock
Option) to be transferred to, exercised by and paid to certain persons or entities related to the
Participant, including but not limited to members of the Participant’s family, charitable
institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of
the Participant’s family and/or charitable institutions, or to such other persons or entities as
may be expressly approved by the Committee, pursuant to such conditions and procedures as the
Committee may establish. Any permitted transfer shall be subject to the condition that the
Committee receive evidence satisfactory to it that the transfer is being made for estate and/or tax
planning purposes (or to a “blind trust” in connection with the Participant’s termination of
employment or service with the Company or a Subsidiary to assume a position with a governmental,
charitable, educational or similar non-profit institution) and on a basis consistent with the
Company’s lawful issue of securities.

10.4 Beneficiaries. Notwithstanding Section 10.3, a Participant may, in the manner determined
by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive
any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal
guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant,
except to the extent the Plan and Award Agreement otherwise provide, and to any additional
restrictions deemed necessary or appropriate by the Committee. If the Participant is married and
resides in a community property state, a designation of a person other than the Participant’s
spouse as his or her beneficiary with respect to more than 50% of the Participant’s interest in the
Award shall not be effective without the prior written consent of the Participant’s spouse. If no
beneficiary has been designated or survives the Participant, payment shall be made to the person
entitled thereto pursuant to the Participant’s will or the laws of descent and distribution.
Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant at
any time provided the change or revocation is filed with the Committee.

10.5 Stock Certificates; Book Entry Procedures.

(a) Notwithstanding anything herein to the contrary, the Company shall not be required to
issue or deliver any certificates evidencing shares of Stock pursuant to the exercise of any Award,
unless and until the Board has determined, with advice of counsel, that the issuance and delivery
of such certificates is in compliance with all applicable laws, regulations of governmental
authorities and, if applicable, the requirements of any exchange on which the shares of Stock are
listed or traded. All Stock certificates delivered pursuant to the Plan are subject to any
stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply
with federal, state, or foreign jurisdiction, securities or other laws, rules and regulations and
the rules of any national securities exchange or automated quotation system on which the Stock is
listed, quoted, or traded. The Committee may place legends on any Stock certificate to reference
restrictions applicable to the Stock. In addition to the terms and conditions provided herein, the
Board may require that a Participant make such reasonable covenants, agreements, and
representations as the Board, in its discretion, deems advisable in order to comply with any such
laws, regulations, or requirements. The Committee shall have the right to require any
Participant to comply with any timing or other restrictions with respect to the settlement or
exercise of any Award, including a window-period limitation, as may be imposed in the discretion of
the Committee.

 

 

 

(b) Notwithstanding any other provision of the Plan, unless otherwise determined by the
Committee or required by any applicable law, rule or regulation, the Company shall not be required
to deliver to any Participant certificates evidencing shares of Stock issued in connection with any
Award and instead such shares of Stock shall be recorded in the books of the Company (or, as
applicable, its transfer agent or stock plan administrator).

10.6 Paperless Exercise. In the event that the Company establishes, for itself or using the
services of a third party, an automated system for the exercise of Awards, such as a system using
an internet website or interactive voice response, then the paperless exercise of Awards by a
Participant may be permitted through the use of such an automated system.

ARTICLE 11

CHANGES IN CAPITAL STRUCTURE

11.1 Adjustments.

(a) In the event of any stock dividend, stock split, combination or exchange of shares,
merger, consolidation, spin-off, recapitalization or other distribution (other than normal cash
dividends) of Company assets to stockholders, or any other change affecting the shares of Stock or
the share price of the Stock, the Committee shall make proportionate adjustments to any or all of
the following in order to reflect such change: (a) the aggregate number and kind of shares that
may be issued under the Plan (including, but not limited to, adjustments of the limitations in
Sections 3.1 and Section 3.3 hereof); (b) the terms and conditions of any outstanding Awards
(including, without limitation, any applicable performance targets or criteria with respect
thereto); and (c) the grant or exercise price per share for any outstanding Awards under the Plan.
Any adjustment affecting an Award intended as Qualified Performance-Based Compensation shall be
made consistent with the requirements of Section 162(m) of the Code.

(b) In the event of any transaction or event described in Section 11.1(a) hereof or any
unusual or nonrecurring transactions or events affecting the Company, any affiliate of the Company,
or the financial statements of the Company or any affiliate, or of changes in applicable laws,
regulations or accounting principles, the Committee, in its sole and absolute discretion, and on
such terms and conditions as it deems appropriate, either by the terms of the Award or by action
taken prior to the occurrence of such transaction or event and either automatically or upon the
Participant’s request, is hereby authorized to take any one or more of the following actions in
order to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available under the Plan or with respect to any Award under the Plan, to facilitate such
transactions or events or to give effect to such changes in laws, regulations or principles:

(i) To provide for either (A) termination of any such Award in exchange for an amount of cash,
if any, equal to the amount that would have been attained upon the exercise of such Award or
realization of the Participant’s rights (and, for the avoidance of doubt, if as of the date of the
occurrence of the transaction or event described in this Section 11.2 the Committee determines in
good faith that no amount would have been attained upon the exercise of such Award or realization
of the Participant’s rights, then such Award may be terminated by the Company without payment) or
(B) the replacement of such Award with other rights or property selected by the Committee in its
sole discretion;

(ii) To provide that such Award be assumed by the successor or survivor corporation, or a
parent or subsidiary thereof, or shall be substituted for by similar options, rights or awards
covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kind of shares and prices;

 

 

 

(iii) To make adjustments in the number and type of shares of Stock (or other securities or
property) subject to outstanding Awards, and in the number and kind of outstanding Restricted Stock
or Deferred Stock and/or in the terms and conditions of (including the grant or exercise price),
and the criteria included in, outstanding options, rights and awards and options, rights and awards
which may be granted in the future;

(iv) To provide that such Award shall be exercisable or payable or fully vested with respect
to all shares covered thereby, notwithstanding anything to the contrary in the Plan or the
applicable Award Agreement; and

(v) To provide that the Award cannot vest, be exercised or become payable after such event.

11.2 Change of Control. Notwithstanding Section 11.1, and except as may otherwise be provided
in any applicable Award Agreement or other written agreement entered into between the Company and a
Participant, if a Change in Control occurs then any surviving corporation or entity or acquiring
corporation or entity, or affiliate of such corporation or entity, may assume any or all Awards
outstanding under the Plan or may substitute comparable stock, cash or other awards (including an
award to acquire the same consideration paid to the stockholders in the transaction described in
this subsection) for those outstanding under the Plan, which substituted awards may be subject to
vesting or the lapsing of restrictions, as applicable, on terms no less favorable to the affected
Holder than the terms of any Award for which such new award is substituted. In the event any
surviving corporation or entity or acquiring corporation or entity in a Change of Control, or
affiliate of such corporation or entity, does not assume such Awards or does not substitute similar
stock, cash or other awards for those outstanding under the Plan, then with respect to (i) Awards
held by participants in the Plan whose status as a Service Provider has not terminated prior to
such event, the vesting of such Awards (and, if applicable, the time during which such awards may
be exercised) shall be accelerated and made fully exercisable and all restrictions thereon shall
lapse not later than immediately prior to the closing of the Change of Control (and any Options
shall be terminated if not exercised prior to the closing of such Change of Control), and (ii) any
other Options outstanding under the Plan, such Options shall be terminated if not exercised prior
to the closing of the Change of Control.

11.3 No Other Rights. Except as expressly provided in the Plan, no Participant shall have any
rights by reason of any subdivision or consolidation of shares of stock of any class, the payment
of any dividend, any increase or decrease in the number of shares of stock of any class or any
dissolution, liquidation, merger, or consolidation of the Company or any other corporation. Except
as expressly provided in the Plan or pursuant to action of the Committee under the Plan, no
issuance by the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect
to, the number of shares of Stock subject to an Award or the grant or exercise price of any Award.

ARTICLE 12

ADMINISTRATION

12.1 Committee. Unless and until the Board delegates administration of the Plan to a
Committee as set forth below, the Plan shall be administered by the full Board, and for such
purposes the term “Committee” as used in this Plan shall be deemed to refer to the Board. The
Board, at its discretion or as otherwise necessary to comply with the requirements of
Section 162(m) of the Code, Rule 16b-3 promulgated under the Exchange Act or to the extent required
by any other applicable rule or regulation, shall delegate administration of the Plan to a
Committee. Unless otherwise determined by the Board, the Committee shall consist solely of two or
more members of the Board each of whom is an “outside director,” within the meaning of
Section 162(m) of the Code. Notwithstanding the foregoing: (a) the full Board, acting by a
majority of its members in office, shall conduct the general administration of the Plan with
respect to all Awards granted to Independent Directors and for purposes of such Awards the term
“Committee” as used in this Plan shall be deemed to refer to the Board and (b) the Committee may
delegate its authority hereunder to the extent permitted by Section 12.5. Appointment of Committee
members shall be effective upon acceptance of appointment. In its sole discretion, the Board may
at any time and from time to time exercise any and all rights and duties of the Committee under the
Plan except with respect to matters which under Rule 16b-3 under the Exchange Act or Section 162(m)
of the Code, or any regulations or rules issued thereunder, are required to be determined in the
sole discretion of the Committee. Committee members may resign at any time by delivering written
notice to the Board. Vacancies in the Committee may only be filled by the Board.

 

 

 

12.2 Action by the Committee. A majority of the Committee shall constitute a quorum. The
acts of a majority of the members present at any meeting at which a quorum is present, and acts
approved in writing by a majority of the Committee in lieu of a meeting, shall be deemed the acts
of the Committee. Each member of the Committee is entitled to, in good faith, rely or act upon any
report or other information furnished to that member by any officer or other employee of the
Company or any Subsidiary, the Company’s independent certified public accountants, or any executive
compensation consultant or other professional retained by the Company to assist in the
administration of the Plan.

12.3 Authority of Committee. Subject to any specific designation in the Plan, the Committee
has the exclusive power, authority and discretion to:

(a) Designate Participants to receive Awards;

(b) Determine the type or types of Awards to be granted to each Participant;

(c) Determine the number of Awards to be granted and the number of shares of Stock to which an
Award will relate;

(d) Determine the terms and conditions of any Award granted pursuant to the Plan, including,
but not limited to, the exercise price, grant price, or purchase price, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions on the
exercisability of an Award, and accelerations or waivers thereof, any provisions related to
non-competition and recapture of gain on an Award, based in each case on such considerations as the
Committee in its sole discretion determines; provided, however, that the Committee shall not have
the authority to accelerate the vesting or waive the forfeiture of any Performance-Based Awards;

(e) Determine whether, to what extent, and pursuant to what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards, or other
property, or an Award may be canceled, forfeited or surrendered;

(f) Prescribe the form of each Award Agreement, which need not be identical for each
Participant;

(g) Decide all other matters that must be determined in connection with an Award;

(h) Establish, adopt, or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

(i) Interpret the terms of, and any matter arising pursuant to, the Plan or any Award
Agreement; and

(j) Make all other decisions and determinations that may be required pursuant to the Plan or
as the Committee deems necessary or advisable to administer the Plan.

12.4 Decisions Binding. The Committee’s interpretation of the Plan, any Awards granted
pursuant to the Plan, any Award Agreement and all decisions and determinations by the Committee
with respect to the Plan are final, binding, and conclusive on all parties.

12.5 Delegation of Authority. To the extent permitted by applicable law, the Committee may
from time to time delegate to a committee of one or more members of the Board or one or more
officers of the Company the authority to grant or amend Awards to Participants other than
(a) senior executives of the Company who are subject to Section 16 of the Exchange Act, (b) Covered
Employees, or (c) officers of the Company (or members of the Board) to whom authority to grant or
amend Awards has been delegated hereunder. Any delegation hereunder shall be subject to the
restrictions and limits that the Committee specifies at the time of such delegation, and the
Committee may at any time rescind the authority so delegated or appoint a new delegatee. At
all times, the delegatee appointed under this Section 12.5 shall serve in such capacity at the
pleasure of the Committee.

 

 

 

ARTICLE 13

EFFECTIVE AND EXPIRATION DATE

13.1 Effective Date. The Plan is effective as of the date the Plan is approved by the
Company’s stockholders (the “Effective Date”). The Plan will be deemed to be approved by the
stockholders if it receives the affirmative vote of the holders of a majority of the shares of
stock of the Company present or represented and entitled to vote at a meeting duly held in
accordance with the applicable provisions of the Company’s Bylaws.

13.2 Expiration Date. The Plan will expire on, and no Award may be granted pursuant to the
Plan after the tenth anniversary of the Effective Date, except that no Incentive Stock Options may
be granted under the Plan after the earlier of the tenth anniversary of (i) the date the Plan is
approved by the Board or (ii) the Effective Date. Any Awards that are outstanding on the tenth
anniversary of the Effective Date shall remain in force according to the terms of the Plan and the
applicable Award Agreement.

ARTICLE 14

AMENDMENT, MODIFICATION, AND TERMINATION

14.1 Amendment, Modification, and Termination. Subject to Section 15.14, with the approval of
the Board, at any time and from time to time, the Committee may terminate, amend or modify the
Plan; provided, however, that (a) to the extent necessary and desirable to comply with any
applicable law, regulation, or stock exchange rule, the Company shall obtain stockholder approval
of any Plan amendment in such a manner and to such a degree as required, and (b) stockholder
approval is required for any amendment to the Plan that (i) increases the number of shares
available under the Plan (other than any adjustment as provided by Article 11), (ii) permits the
Committee to grant Options with an exercise price that is below Fair Market Value on the date of
grant or (iii) permits the Committee to extend the exercise period for an Option beyond ten years
from the date of grant. Notwithstanding any provision in this Plan to the contrary, absent
approval of the stockholders of the Company, no Option may be amended to reduce the per share
exercise price of the shares subject to such Option below the per share exercise price as of the
date the Option is granted and, except as permitted by Article 11, no Option may be granted in
exchange for, or in connection with, the cancellation or surrender of an Option having a higher per
share exercise price.

14.2 Awards Previously Granted. Except with respect to amendments made pursuant to
Section 15.14, no termination, amendment, or modification of the Plan shall adversely affect in any
material way any Award previously granted pursuant to the Plan without the prior written consent of
the Participant.

ARTICLE 15

GENERAL PROVISIONS

15.1 No Rights to Awards. No Eligible Individual or other person shall have any claim to be
granted any Award pursuant to the Plan, and neither the Company nor the Committee is obligated to
treat Eligible Individuals, Participants or any other persons uniformly.

15.2 No Stockholders Rights. Except as otherwise provided herein, a Participant shall have
none of the rights of a stockholder with respect to shares of Stock covered by any Award until the
Participant becomes the record owner of such shares of Stock.

 

 

 

15.3 Withholding. The Company or any Subsidiary shall have the authority and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to
satisfy federal, state, local and foreign taxes (including the Participant’s employment tax
obligations) required by law to be withheld with respect to
any taxable event concerning a Participant arising as a result of this Plan. The Committee
may in its discretion and in satisfaction of the foregoing requirement allow a Participant to elect
to have the Company withhold shares of Stock otherwise issuable under an Award (or allow the return
of shares of Stock) having a Fair Market Value equal to the sums required to be withheld.
Notwithstanding any other provision of the Plan, the number of shares of Stock which may be
withheld with respect to the issuance, vesting, exercise or payment of any Award (or which may be
repurchased from the Participant of such Award within six months (or such other period as may be
determined by the Committee) after such shares of Stock were acquired by the Participant from the
Company) in order to satisfy the Participant’s federal, state, local and foreign income and payroll
tax liabilities with respect to the issuance, vesting, exercise or payment of the Award shall be
limited to the number of shares which have a Fair Market Value on the date of withholding or
repurchase equal to the aggregate amount of such liabilities based on the minimum statutory
withholding rates for federal, state, local and foreign income tax and payroll tax purposes that
are applicable to such supplemental taxable income.

15.4 No Right to Employment or Services. Nothing in the Plan or any Award Agreement shall
interfere with or limit in any way the right of the Company or any Subsidiary to terminate any
Participant’s employment or services at any time, nor confer upon any Participant any right to
continue in the employ or service of the Company or any Subsidiary.

15.5 Unfunded Status of Awards. The Plan is intended to be an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to a Participant pursuant to an Award,
nothing contained in the Plan or any Award Agreement shall give the Participant any rights that are
greater than those of a general creditor of the Company or any Subsidiary.

15.6 Indemnification. To the extent allowable pursuant to applicable law, each member of the
Committee or of the Board shall be indemnified and held harmless by the Company from any loss,
cost, liability, or expense that may be imposed upon or reasonably incurred by such member in
connection with or resulting from any claim, action, suit, or proceeding to which he or she may be
a party or in which he or she may be involved by reason of any action or failure to act pursuant to
the Plan and against and from any and all amounts paid by him or her in satisfaction of judgment in
such action, suit, or proceeding against him or her; provided he or she gives the Company an
opportunity, at its own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be
exclusive of any other rights of indemnification to which such persons may be entitled pursuant to
the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Company may have to indemnify them or hold them harmless.

15.7 Relationship to other Benefits. No payment pursuant to the Plan shall be taken into
account in determining any benefits pursuant to any pension, retirement, savings, profit sharing,
group insurance, welfare or other benefit plan of the Company or any Subsidiary except to the
extent otherwise expressly provided in writing in such other plan or an agreement thereunder.

15.8 Expenses. The expenses of administering the Plan shall be borne by the Company and its
Subsidiaries.

15.9 Titles and Headings. The titles and headings of the Sections in the Plan are for
convenience of reference only and, in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.

15.10 Fractional Shares. No fractional shares of Stock shall be issued and the Committee
shall determine, in its discretion, whether cash shall be given in lieu of fractional shares or
whether such fractional shares shall be eliminated by rounding up or down as appropriate.

15.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other provision of
the Plan, the Plan, and any Award granted or awarded to any Participant who is then subject to
Section 16 of the Exchange Act, shall be subject to any additional limitations set forth in any
applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to
Rule 16b-3 under the Exchange Act) that are requirements for the application of such exemptive
rule. To the extent permitted by applicable law, the Plan and Awards granted or awarded hereunder
shall be deemed amended to the extent necessary to conform to such applicable exemptive rule.

 

 

 

15.12 Government and Other Regulations. The obligation of the Company to make payment of
awards in Stock or otherwise shall be subject to all applicable laws, rules, and regulations, and
to such approvals by government agencies as may be required. The Company shall be under no
obligation to register pursuant to the Securities Act, as amended, any of the shares of Stock paid
pursuant to the Plan. If the shares paid pursuant to the Plan may in certain circumstances be
exempt from registration pursuant to the Securities Act, as amended, the Company may restrict the
transfer of such shares in such manner as it deems advisable to ensure the availability of any such
exemption.

15.13 Governing Law. The Plan and all Award Agreements shall be construed in accordance with
and governed by the laws of the State of Delaware.

15.14 Section 409A. To the extent that the Committee determines that any Award granted under
the Plan is subject to Section 409A of the Code, the Award Agreement evidencing such Award shall
incorporate the terms and conditions required by Section 409A of the Code. To the extent
applicable, the Plan and Award Agreements shall be interpreted in accordance with Section 409A of
the Code and Department of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be issued after the
Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that
following the Effective Date the Committee determines that any Award may be subject to Section 409A
of the Code and related Department of Treasury guidance (including such Department of Treasury
guidance as may be issued after the Effective Date), the Committee may adopt such amendments to the
Plan and the applicable Award Agreement or adopt other policies and procedures (including
amendments, policies and procedures with retroactive effect), or take any other actions, that the
Committee determines are necessary or appropriate to (a) exempt the Award from Section 409A of the
Code and/or preserve the intended tax treatment of the benefits provided with respect to the Award,
or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury
guidance.exv10w1

    EXHIBIT 10.1

 

    ORBITZ
    WORLDWIDE, INC.

    2007 EQUITY AND INCENTIVE PLAN

    (As amended and restated, effective June 2, 2010)

 

		
	
    1.  
	
    Purpose;
    Types of Awards; Construction.

 

    The purposes of the Orbitz Worldwide, Inc. 2007 Equity and
    Incentive Plan (the “Plan”) are to afford an incentive
    to non-employee directors, selected officers and other
    employees, advisors and consultants of Orbitz Worldwide, Inc.
    (the “Company”), or any Parent or Subsidiary of the
    Company that now exists or hereafter is organized or acquired,
    to continue as non-employee directors, officers, employees,
    advisors or consultants, as the case may be, to increase their
    efforts on behalf of the Company and its Subsidiaries and to
    promote the success of the Company’s business. The Plan
    provides for the grant of Options (including “incentive
    stock options” and “nonqualified stock options”),
    stock appreciation rights, restricted stock, restricted stock
    units and other stock- or cash-based awards. The Plan is
    designed so that Awards granted hereunder intended to comply
    with the requirements for “performance-based
    compensation” under Section 162(m) of the Code comply
    with such requirements, and the Plan and Awards shall be
    interpreted in a manner consistent with such requirements.

 

		
	
    2.  
	
    Definitions.

 

    For purposes of the Plan, the following terms shall be defined
    as set forth below:

 

    (a) “Annual Incentive Program” means the
    program described in Section 6(c) hereof.

 

    (b) “Award” means any Option, SAR,
    Restricted Stock, Restricted Stock Unit or Other Stock-Based
    Award or Other Cash-Based Award granted under the Plan.

 

    (c) “Award Agreement” means any written
    agreement, contract, or other instrument or document, in each
    case as approved by the Committee, evidencing an Award.

 

    (d) “Board” means the Board of Directors
    of the Company.

 

    (e) “Change in Control” means, following
    the Effective Date and excluding the separation transaction
    pursuant to which the Company becomes a separate public
    corporation for the first time, a change in control of the
    Company, which will have occurred if:

 

    (i) any “person,” as such term is used in
    Sections 13(d) and 14(d) of the Exchange Act (other than
    (A) the Company, (B) any trustee or other fiduciary
    holding securities under an employee benefit plan of the
    Company, and (C) any corporation owned, directly or
    indirectly, by the stockholders of the Company in substantially
    the same proportions as their ownership of Stock), is or becomes
    the “beneficial owner” (as defined in
    Rule 13d-3
    under the Exchange Act), directly or indirectly, of securities
    of the Company representing 30% or more of the combined voting
    power of the Company’s then outstanding voting securities
    (excluding any person who becomes such a beneficial owner in
    connection with a transaction immediately following which the
    individuals who comprise the Board immediately prior thereto
    constitute at least a majority of the Board of the entity
    surviving such transaction or, if the Company or the entity
    surviving the transaction is then a subsidiary, the ultimate
    parent thereof);

 

    (ii) the following individuals cease for any reason to
    constitute a majority of the number of directors then serving:
    individuals who, on the Effective Date, constitute the Board and
    any new director (other than a director whose initial assumption
    of office is in connection with an actual or threatened election
    contest, including but not limited to a consent solicitation,
    relating to the election of directors of the Company) whose
    appointment or election by the Board or nomination for election
    by the Company’s stockholders was approved or recommended
    by a vote of at least two-thirds (2/3) of the directors then
    still in office who either were directors on the Effective Date
    or whose appointment, election or nomination for election was
    previously so approved or recommended;

    

    1

 

    (iii) there is consummated a merger or consolidation of the
    Company or any direct or indirect subsidiary of the Company with
    any other corporation, other than a merger or consolidation
    immediately following which the individuals who comprise the
    Board immediately prior thereto constitute at least a majority
    of the Board, the entity surviving such merger or consolidation
    or, if the Company or the entity surviving such merger is then a
    subsidiary, the ultimate parent thereof; or

 

    (iv) the stockholders of the Company approve a plan of
    complete liquidation of the Company or there is consummated an
    agreement for the sale or disposition by the Company of all or
    substantially all of the Company’s assets (or any
    transaction having a similar effect), other than a sale or
    disposition by the Company of all or substantially all of the
    Company’s assets to an entity, immediately following which
    the individuals who comprise the Board immediately prior thereto
    constitute at least a majority of the board of directors of the
    entity to which such assets are sold or disposed of or, if such
    entity is a subsidiary, the ultimate parent thereof.

 

    Notwithstanding the foregoing, a Change in Control shall not be
    deemed to have occurred by virtue of the consummation of any
    transaction or series of integrated transactions immediately
    following which individuals who comprise the Board immediately
    prior thereto constitute at least a majority of the board of
    directors of an entity which owns all or substantially all of
    the assets of the Company immediately following such transaction
    or series of transactions.

 

    (f) “Code” means the Internal Revenue Code
    of 1986, as amended from time to time, and the rules and
    regulations promulgated thereunder.

 

    (g) “Committee” means the committee
    established by the Board to administer the Plan, the composition
    of which shall at all times satisfy the provisions of
    Rule 16b-3
    and Section 162(m) of the Code.

 

    (h) “Company” means Orbitz Worldwide,
    Inc., a corporation organized under the laws of the State of
    Delaware, or any successor corporation.

 

    (i) “Covered Employee” shall have the
    meaning set forth in Section 162(m)(3) of the Code.

 

    (j) “Effective Date” means the effective
    date of the IPO.

 

    (k) “Exchange Act” means the Securities
    Exchange Act of 1934, as amended from time to time, and the
    rules and regulations promulgated thereunder.

 

    (l) “Fair Market Value” means the fair
    market value determined in such manner as the Committee, in its
    sole discretion, may deem equitable or as required by applicable
    law, rule or regulation. Unless the Committee otherwise
    determines, with respect to an Award granted under the Plan,
    “Fair Market Value” means (i) the mean between
    the highest and lowest reported sales price per share of Stock
    on the national securities exchange on which the Stock is
    principally traded on the date of grant of such Award, or if the
    date of grant is not a trading day, then the last preceding date
    on which there was a sale of such Stock on such exchange, or
    (ii) if the shares of Stock are then traded in an
    over-the-counter market, the average of the closing bid and
    asked prices for the shares of Stock in such over-the-counter
    market for the date of grant of such Award, or if the date of
    grant is not a trading day, then the last preceding date on
    which there was a sale of such Stock on such over-the-counter
    market.

 

    (m) “Grantee” means a person who, as a
    non-employee director, officer or other employee, advisor or
    consultant of the Company or a Parent or Subsidiary of the
    Company, has been granted an Award under the Plan.

 

    (n) “IPO” means the initial public
    offering of the Company’s Stock.

 

    (o) “ISO” means any Option intended to be
    and designated as an incentive stock option within the meaning
    of Section 422 of the Code.

 

    (p) “Long Range Incentive Program” means
    the program described in Section 6(b) hereof.

 

    (q) “Non-Employee Director” means any
    director of the Company who is not also employed by the Company
    or any of its Subsidiaries.

    

    2

 

    (r) “NQSO” means any Option that is not
    designated as an ISO.

 

    (s) “Option” means a right, granted to a
    Grantee under Section 6(b)(i), to purchase shares of Stock.
    An Option may be either an ISO or an NQSO, provided that ISOs
    may be granted only to employees of the Company or a Parent or
    Subsidiary of the Company.

 

    (t) “Other Cash-Based Award” means cash
    awarded under the Annual Incentive Program or the Long Range
    Incentive Program, including cash awarded as a bonus or upon the
    attainment of Performance Goals or otherwise as permitted under
    the Plan.

 

    (u) “Other Stock-Based Award” means a
    right or other interest granted to a Grantee under the Annual
    Incentive Program or the Long Range Incentive Program that may
    be denominated or payable in, valued in whole or in part by
    reference to, or otherwise based on, or related to, Stock,
    including but not limited to (i) unrestricted Stock awarded
    as a bonus or upon the attainment of Performance Goals or
    otherwise as permitted under the Plan, and (ii) a right
    granted to a Grantee to acquire Stock from the Company
    containing terms and conditions prescribed by the Committee.

 

    (v) “Parent” means a “parent
    corporation,” whether now or hereafter existing, as defined
    in Section 424(e) of the Code.

 

    (w) “Performance Goals” means performance
    goals based on one or more of the following criteria, determined
    in accordance with generally accepted accounting principles
    where applicable: (i) pre-tax income or after-tax income;
    (ii) income or earnings including operating income,
    earnings before or after taxes, interest, depreciation,
    amortization,
    and/or
    extraordinary or special items; (iii) net income excluding
    amortization of intangible assets, depreciation and impairment
    of goodwill and intangible assets
    and/or
    excluding charges attributable to the adoption of new accounting
    pronouncements; (iv) earnings or book value per share
    (basic or diluted); (v) return on assets (gross or net),
    return on investment, return on capital, or return on equity;
    (vi) return on revenues; (vii) cash flow, free cash
    flow, cash flow return on investment (discounted or otherwise),
    net cash provided by operations, or cash flow in excess of cost
    of capital; (viii) economic value created;
    (ix) operating margin or profit margin; (x) stock
    price or total stockholder return; (xi) income or earnings
    from continuing operations; (xii) cost targets, reductions
    and savings, expense management, productivity and efficiencies;
    and (xiii) strategic business criteria, consisting of one
    or more objectives based on meeting specified market penetration
    or market share, geographic business expansion, customer
    satisfaction, employee satisfaction, human resources management,
    supervision of litigation, information technology, and goals
    relating to divestitures, joint ventures and similar
    transactions. Where applicable, the Performance Goals may be
    expressed in terms of attaining a specified level of the
    particular criterion or the attainment of a percentage increase
    or decrease in the particular criterion, and may be applied to
    one or more of the Company or a Parent or Subsidiary of the
    Company, or a division or strategic business unit of the
    Company, all as determined by the Committee. The Performance
    Goals may include a threshold level of performance below which
    no payment will be made (or no vesting will occur), levels of
    performance at which specified payments will be paid (or
    specified vesting will occur), and a maximum level of
    performance above which no additional payment will be made (or
    at which full vesting will occur). Each of the foregoing
    Performance Goals shall be evaluated in accordance with
    generally accepted accounting principles, where applicable, and
    shall be subject to certification by the Committee. The
    Committee shall have the authority to make equitable adjustments
    to the Performance Goals in recognition of unusual or
    non-recurring events affecting the Company or any Parent or
    Subsidiary of the Company or the financial statements of the
    Company or any Parent or Subsidiary of the Company, in response
    to changes in applicable laws or regulations, or to account for
    items of gain, loss or expense determined to be extraordinary or
    unusual in nature or infrequent in occurrence or related to the
    disposal of a segment of a business or related to a change in
    accounting principles.

 

    (x) “Plan” means this Orbitz Worldwide,
    Inc. 2007 Equity and Incentive Plan, as amended from time to
    time.

 

    (y) “Plan Year” means a calendar year.

 

    (z) “Restricted Stock” means an Award of
    shares of Stock to a Grantee under Section 6(b)(iii) that
    may be subject to certain restrictions and to a risk of
    forfeiture.

    

    3

 

    (aa) “Restricted Stock Unit” or
    “RSU” means a right granted to a Grantee under
    Section 6(b)(iv) to receive Stock or cash at the end of a
    specified period, which right may be conditioned on the
    satisfaction of specified performance or other criteria.

 

    (bb) “Rule 16b-3”
    means
    Rule 16b-3,
    as from time to time in effect promulgated by the Securities and
    Exchange Commission under Section 16 of the Exchange Act,
    including any successor to such Rule.

 

    (cc) “Securities Act” means the Securities
    Act of 1933, as amended from time to time, and the rules and
    regulations promulgated thereunder.

 

    (dd) “Stock” means shares of the common
    stock, par value $0.01 per share, of the Company.

 

    (ee) “Stock Appreciation Right” or
    “SAR” means the right, granted to a Grantee under
    Section 6(b)(ii), to be paid an amount measured by the
    appreciation in the Fair Market Value of Stock from the date of
    grant to the date of exercise of the right.

 

    (ff) “Subsidiary” means a “subsidiary
    corporation,” whether now or hereafter existing, as defined
    in Section 424(f) of the Code.

 

		
	
    3.  
	
    Administration.

 

    The Plan shall be administered by the Board or by such Committee
    that the Board may appoint for this purpose. If a Committee is
    appointed to administer the Plan, all references herein to the
    “Committee” shall be references to such Committee. If
    no Committee is appointed by the Board to administer the Plan,
    all references herein to the “Committee” shall be
    references to the Board. The Committee shall have the authority
    in its discretion, subject to and not inconsistent with the
    express provisions of the Plan, to administer the Plan and to
    exercise all the powers and authorities either specifically
    granted to it under the Plan or necessary or advisable in the
    administration of the Plan, including, without limitation, the
    authority to grant Awards; to determine the persons to whom and
    the time or times at which Awards shall be granted; to determine
    the type and number of Awards to be granted, the number of
    shares of Stock to which an Award may relate and the terms,
    conditions, restrictions and performance criteria relating to
    any Award; to determine Performance Goals no later than such
    time as required to ensure that an underlying Award which is
    intended to comply with the requirements of Section 162(m)
    of the Code so complies; and to determine whether, to what
    extent, and under what circumstances an Award may be settled,
    cancelled, forfeited, exchanged, or surrendered; to amend the
    terms and conditions of outstanding Awards, including, but not
    limited to extending the exercise period of such Awards and
    accelerating the vesting schedule of such Awards; to make
    adjustments in the terms and conditions of, and the Performance
    Goals (if any) included in, Awards; to construe and interpret
    the Plan and any Award; to prescribe, amend and rescind rules
    and regulations relating to the Plan; to determine the terms and
    provisions of the Award Agreements (which need not be identical
    for each Grantee); and to make all other determinations deemed
    necessary or advisable for the administration of the Plan.
    Notwithstanding the foregoing, neither the Board, the Committee
    nor their respective delegates shall have the authority to
    reprice (or cancel and regrant) any Option or, if applicable,
    other Award at a lower exercise, base or purchase price without
    first obtaining the approval of the Company’s stockholders.
    Notwithstanding any other provision of the Plan to the contrary,
    upon approval of the Company’s stockholders, the Committee
    may provide for, and the Company may implement, a one-time only
    stock option exchange program, pursuant to which certain
    outstanding Options could, at the election of the person holding
    such Option, be tendered to the Company for cancellation in
    exchange for the issuance of a lesser amount of Options with a
    lower exercise price, or other equity benefit as may be approved
    by the Committee, provided that such one-time only stock option
    exchange program is implemented within twelve months of the date
    of such stockholder approval.

 

    The Committee may delegate to one or more of its members or to
    one or more agents such administrative duties as it may deem
    advisable, and the Committee or any person to whom it has
    delegated duties as aforesaid may employ one or more persons to
    render advice with respect to any responsibility the Committee
    or such person may have under the Plan. All decisions,
    determinations and interpretations of the Committee shall be
    final and binding on all persons, including but not limited to
    the Company, any Parent or Subsidiary of the Company or any
    Grantee (or any person claiming any rights under the Plan from
    or through any Grantee) and any stockholder.

    

    4

 

    No member of the Board or Committee shall be liable for any
    action taken or determination made in good faith with respect to
    the Plan or any Award granted hereunder.

 

		
	
    4.  
	
    Eligibility.

 

    Awards may be granted to selected non-employee directors,
    officers and other employees, advisors or consultants of the
    Company or any Parent or Subsidiary of the Company, in the
    discretion of the Committee. In determining the persons to whom
    Awards shall be granted and the type of any Award (including the
    number of shares to be covered by such Award), the Committee
    shall take into account such factors as the Committee shall deem
    relevant in connection with accomplishing the purposes of the
    Plan.

 

		
	
    5.  
	
    Stock
    Subject to the Plan.

 

    The maximum number of shares of Stock reserved for issuance
    under the Plan shall be 18,100,000, subject to adjustment
    as provided herein. No more than (i) 5,000,000 shares
    of Stock may be made subject to NQSOs or SARs to a single
    individual in a single Plan Year,
    (ii) 2,500,000 shares of Stock may be made subject to
    stock-based awards other than Options or SARs (including
    Restricted Stock and Restricted Stock Units or Other Stock-Based
    Awards denominated in shares of Stock) to a single individual in
    a single Plan Year, and (iii) 1,000,000 shares of
    Stock may be issued pursuant to the exercise of ISO’s, in
    each case, subject to adjustment as provided herein.
    Determinations made in respect of the limitations set forth in
    the immediately preceding sentence shall be made in a manner
    consistent with Section 162(m) of the Code. Such shares
    may, in whole or in part, be authorized but unissued shares or
    shares that shall have been or may be reacquired by the Company
    in the open market, in private transactions or otherwise. If any
    shares subject to an Award are forfeited, cancelled, exchanged
    or surrendered or if an Award terminates or expires without a
    distribution of shares to the Grantee, or if shares of Stock are
    surrendered or withheld as payment of either the exercise price
    of an Award
    and/or
    withholding taxes in respect of an Award, the shares of Stock
    with respect to such Award shall, to the extent of any such
    forfeiture, cancellation, exchange, surrender, withholding,
    termination or expiration, again be available for Awards under
    the Plan. Upon the exercise of any Award granted in tandem with
    any other Award, such related Award shall be cancelled to the
    extent of the number of shares of Stock as to which the Award is
    exercised and, notwithstanding the foregoing, such number of
    shares shall no longer be available for Awards under the Plan.

 

    In the event that the Committee shall determine that any
    dividend or other distribution (whether in the form of cash,
    Stock, or other property), recapitalization, Stock split,
    reverse split, reorganization, merger, consolidation, spin-off,
    combination, repurchase, or share exchange, or other similar
    corporate transaction or event, affects the Stock such that an
    adjustment is appropriate in order to prevent dilution or
    enlargement of the rights of Grantees under the Plan, then the
    Committee shall make such equitable changes or adjustments as it
    deems necessary or appropriate to any or all of (i) the
    number and kind of shares of Stock or other property (including
    cash) that may thereafter be issued in connection with Awards,
    (ii) the number and kind of shares of Stock or other
    property (including cash) issued or issuable in respect of
    outstanding Awards, (iii) the exercise price, grant price,
    or purchase price relating to any Award; provided, that, with
    respect to ISOs, such adjustment shall be made in accordance
    with Section 424(h) of the Code, (iv) annual award
    limitations set forth in Section 5, and (v) the
    Performance Goals applicable to outstanding Awards.

 

		
	
    6.  
	
    Specific
    Terms of Awards.

 

    (a) General.  The term of each
    Award shall be for such period as may be determined by the
    Committee. Subject to the terms of the Plan and any applicable
    Award Agreement, payments to be made by the Company or a Parent
    or Subsidiary of the Company upon the grant, vesting,
    maturation, or exercise of an Award may be made in such forms as
    the Committee shall determine at the date of grant or
    thereafter, including, without limitation, cash, Stock, or other
    property, and may be made in a single payment or transfer, in
    installments, or on a deferred basis. The Committee may make
    rules relating to installment or deferred payments with respect
    to Awards, including the rate of interest to be credited with
    respect to such payments. In addition to the foregoing, the
    Committee may

    

    5

 

    impose on any Award or the exercise thereof, at the date of
    grant or thereafter, such additional terms and conditions, not
    inconsistent with the provisions of the Plan, as the Committee
    shall determine.

 

    (b) Long Range Incentive Program.
      Under the Long Range Incentive Program, the
    Committee is authorized to grant the Awards described in this
    Section 6(b), under such terms and conditions as deemed by
    the Committee to be consistent with the purposes of the Plan.
    Such Awards may be granted with value and payment contingent
    upon Performance Goals. Except as otherwise set forth herein or
    as may be determined by the Committee, each Award granted under
    the Long Range Incentive Program shall be evidenced by an Award
    Agreement containing such terms and conditions applicable to
    such Award as the Committee shall determine at the date of grant
    or thereafter.

 

    (i) Options.  The Committee is
    authorized to grant Options to Grantees on the following terms
    and conditions:

 

    (a) Type of Award.  The Award
    Agreement evidencing the grant of an Option under the Plan shall
    designate the Option as an ISO or an NQSO.

 

    (b) Exercise Price.  The exercise
    price per share of Stock purchasable under an Option shall be
    determined by the Committee, but, subject to
    Section 6(b)(v), in no event shall the per share exercise
    price of any Option be less than the Fair Market Value of a
    share of Stock on the date of grant of such Option. The exercise
    price for Stock subject to an Option may be paid in cash or by
    an exchange of Stock previously owned by the Grantee for at
    least six months (if acquired from the Company), through a
    “broker cashless exercise” procedure approved by the
    Committee (to the extent permitted by law), or a combination of
    the above, in any case in an amount having a combined value
    equal to such exercise price. An Award Agreement may provide
    that a Grantee may pay all or a portion of the aggregate
    exercise price by having shares of Stock with a Fair Market
    Value on the date of exercise equal to the aggregate exercise
    price withheld by the Company.

 

    (c) Term and Exercisability of
    Options.  The date on which the Committee
    adopts a resolution expressly granting an Option shall be
    considered the day on which such Option is granted. Options
    shall be exercisable over the exercise period (which shall not
    exceed ten years from the date of grant), at such times and upon
    such conditions as the Committee may determine, as reflected in
    the Award Agreement; provided, that the Committee shall have the
    authority to accelerate the exercisability of any outstanding
    Option at such time and under such circumstances as it, in its
    sole discretion, deems appropriate. An Option may be exercised
    to the extent of any or all full shares of Stock as to which the
    Option has become exercisable, by giving written notice of such
    exercise to the Committee or its designated agent.

 

    (d) Termination of Employment.  An
    Option may not be exercised unless the Grantee is then a
    director of, in the employ of, or providing services to, the
    Company or a Parent or Subsidiary of the Company, and unless the
    Grantee has remained continuously so employed, or continuously
    maintained such relationship, since the date of grant of the
    Option; provided, that the Award Agreement may contain
    provisions extending the exercisability of Options, in the event
    of specified terminations of employment or service, to a date
    not later than the expiration date of such Option.

 

    (e) Other Provisions.  Options may
    be subject to such other conditions including, but not limited
    to, restrictions on transferability of the shares acquired upon
    exercise of such Options, as the Committee may prescribe in its
    discretion or as may be required by applicable law.

 

    (ii) SARs.  The Committee is
    authorized to grant SARs to Grantees on the following terms and
    conditions:

 

    (a) In General.  Unless the
    Committee determines otherwise, a SAR (1) granted in tandem
    with an NQSO may be granted at the time of grant of the related
    NQSO or at any time thereafter or (2) granted in tandem
    with an ISO may only be granted at the time of grant of the
    related ISO. A SAR granted in tandem with an Option shall be
    exercisable only to the extent the underlying Option is
    exercisable. Payment of a SAR may be made in cash, Stock, or
    property as specified in the Award or determined by the
    Committee.

 

    (b) Right Conferred.  A SAR shall
    confer on the Grantee a right to receive an amount with respect
    to each share subject thereto, upon exercise thereof, equal to
    the excess of (1) the Fair Market Value of one share of
    Stock on the date of exercise over (2) the grant price of
    the SAR (which in the case of an SAR granted in

    

    6

 

    tandem with an Option shall be equal to the exercise price of
    the underlying Option, and which in the case of any other SAR
    shall be such price as the Committee may determine).

 

    (c) Term and Exercisability of
    SARs.  The date on which the Committee adopts
    a resolution expressly granting a SAR shall be considered the
    day on which such SAR is granted. SARs shall be exercisable over
    the exercise period (which shall not exceed the lesser of ten
    years from the date of grant or, in the case of a tandem SAR,
    the expiration of its related Award), at such times and upon
    such conditions as the Committee may determine, as reflected in
    the Award Agreement; provided, that the Committee shall have the
    authority to accelerate the exercisability of any outstanding
    SAR at such time and under such circumstances as it, in its sole
    discretion, deems appropriate. A SAR may be exercised to the
    extent of any or all full shares of Stock as to which the SAR
    (or, in the case of a tandem SAR, its related Award) has become
    exercisable, by giving written notice of such exercise to the
    Committee or its designated agent.

 

    (d) Termination of Employment.  A
    SAR may not be exercised unless the Grantee is then a director
    of, in the employ of, or providing services to, the Company or a
    Parent or Subsidiary of the Company, and unless the Grantee has
    remained continuously so employed, or continuously maintained
    such relationship, since the date of grant of the SAR; provided,
    that the Award Agreement may contain provisions extending the
    exercisability of the SAR, in the event of specified
    terminations of employment or service, to a date not later than
    the expiration date of such SAR (or, in the case of a tandem
    SAR, its related Award).

 

    (e) Other Provisions.  SARs may be
    subject to such other conditions including, but not limited to,
    restrictions on transferability of the shares acquired upon
    exercise of such SARs, as the Committee may prescribe in its
    discretion or as may be required by applicable law.

 

    (iii) Restricted Stock.  The
    Committee is authorized to grant Restricted Stock to Grantees on
    the following terms and conditions:

 

    (a) Issuance and
    Restrictions.  Restricted Stock shall be
    subject to such restrictions on transferability and other
    restrictions, if any, as the Committee may impose at the date of
    grant or thereafter, which restrictions may lapse separately or
    in combination at such times, under such circumstances, in such
    installments, or otherwise, as the Committee may determine. The
    Committee may place restrictions on Restricted Stock that shall
    lapse, in whole or in part, only upon the attainment of
    Performance Goals. Except to the extent restricted under the
    Award Agreement relating to the Restricted Stock, a Grantee
    granted Restricted Stock shall have all of the rights of a
    stockholder including, without limitation, the right to vote
    Restricted Stock and the right to receive dividends thereon.

 

    (b) Forfeiture.  Upon termination
    of employment with or service to the Company, or upon
    termination of the director or independent contractor
    relationship, as the case may be, during the applicable
    restriction period, Restricted Stock and any accrued but unpaid
    dividends that are then subject to restrictions shall be
    forfeited; provided, that the Committee may provide, by rule or
    regulation or in any Award Agreement, or may determine in any
    individual case, that restrictions or forfeiture conditions
    relating to Restricted Stock will be waived in whole or in part
    in the event of terminations resulting from specified causes,
    and the Committee may in other cases waive in whole or in part
    the forfeiture of Restricted Stock.

 

    (c) Certificates for
    Stock.  Restricted Stock granted under the
    Plan may be evidenced in such manner as the Committee shall
    determine. If certificates representing Restricted Stock are
    registered in the name of the Grantee, such certificates shall
    bear an appropriate legend referring to the terms, conditions,
    and restrictions applicable to such Restricted Stock, and the
    Company shall retain physical possession of the certificate.

 

    (d) Dividends.  Stock distributed
    in connection with a stock split or stock dividend, and cash or
    other property distributed as a dividend, shall be subject to
    restrictions and a risk of forfeiture to the same extent as the
    Restricted Stock with respect to which such Stock or other
    property has been distributed, and shall be settled as the same
    time as the Restricted Stock to which it relates.

    

    7

 

    (iv) Restricted Stock Units.  The
    Committee is authorized to grant Restricted Stock Units to
    Grantees, subject to the following terms and conditions:

 

    (a) Award and Restrictions.
      Delivery of Stock or cash, as determined by the
    Committee, will occur upon expiration of the deferral period
    specified for Restricted Stock Units by the Committee. The
    Committee may place restrictions on Restricted Stock Units that
    shall lapse, in whole or in part, only upon the attainment of
    Performance Goals. The Committee may award dividend equivalents
    relating to Restricted Stock Units on terms and conditions as it
    determines.

 

    (b) Forfeiture.  Upon termination
    of employment with or service to the Company, or upon
    termination of the director or independent contractor
    relationship, as the case may be, during the applicable deferral
    period or portion thereof to which forfeiture conditions apply,
    or upon failure to satisfy any other conditions precedent to the
    delivery of Stock or cash to which such Restricted Stock Units
    relate, all Restricted Stock Units and any accrued but unpaid
    dividend equivalents that are then subject to deferral or
    restriction shall be forfeited; provided, that the Committee may
    provide, by rule or regulation or in any Award Agreement, or may
    determine in any individual case, that restrictions or
    forfeiture conditions relating to Restricted Stock Units will be
    waived in whole or in part in the event of termination resulting
    from specified causes, and the Committee may in other cases
    waive in whole or in part the forfeiture of Restricted Stock
    Units.

 

    (v) Other Stock- or Cash-Based
    Awards.  The Committee is authorized to grant
    Awards to Grantees in the form of Other Stock-Based Awards or
    Other Cash-Based Awards, as deemed by the Committee to be
    consistent with the purposes of the Plan. Awards granted
    pursuant to this paragraph may be granted with value and payment
    contingent upon Performance Goals, so long as such goals relate
    to periods of performance in excess of one calendar year. The
    Committee shall determine the terms and conditions of such
    Awards at the date of grant or thereafter. Performance periods
    under this Section 6(b)(v) may overlap. The maximum value
    of the aggregate payment that any Grantee may receive pursuant
    to this Section 6(b)(v) in respect of any Plan Year is
    $10,000,000. Payments earned hereunder may be decreased or, with
    respect to any Grantee who is not a Covered Employee, increased
    in the sole discretion of the Committee based on such factors as
    it deems appropriate. No such payment shall be made to a Covered
    Employee prior to the certification by the Committee that the
    Performance Goals have been attained. The Committee may
    establish such other rules applicable to the Other Stock- or
    Cash-Based Awards to the extent not inconsistent with
    Section 162(m) of the Code.

 

    (c) Annual Incentive Program.  The
    Committee is authorized to grant Awards to Grantees pursuant to
    the Annual Incentive Program, under such terms and conditions as
    deemed by the Committee to be consistent with the purposes of
    the Plan. Grantees will be selected by the Committee with
    respect to participation for a Plan Year. The maximum value of
    the aggregate payment that any Grantee may receive under the
    Annual Incentive Program in respect of any Plan Year is
    $10,000,000. Payments earned hereunder may be decreased or, with
    respect to any Grantee who is not a Covered Employee, increased
    in the sole discretion of the Committee based on such factors as
    it deems appropriate. No such payment shall be made to a Covered
    Employee prior to the certification by the Committee that the
    Performance Goals relating to Awards hereunder have been
    attained. The Committee may establish such other rules
    applicable to the Annual Incentive Program to the extent not
    inconsistent with Section 162(m) of the Code.

 

		
	
    7.  
	
    Change in
    Control Provisions.

 

    In the event of a Change in Control and subject to any
    applicable Award Agreement, the Committee shall have the
    authority, in its sole discretion, to:

 

    (a) accelerate the vesting, payment or right to exercise of
    any Award effective immediately upon the occurrence of a Change
    in Control; and

 

    (b) cause the restrictions, deferral limitations, payment
    conditions, and forfeiture conditions applicable to any Award
    granted under the Plan to lapse and deem such Awards fully
    vested, and deem any performance conditions imposed with respect
    to Awards to be fully achieved.

    

    8

 

		
	
    8.  
	
    General
    Provisions.

 

    (a) Nontransferability.  Unless
    otherwise provided in an Award Agreement, Awards shall not be
    transferable by a Grantee except by will or the laws of descent
    and distribution and shall be exercisable during the lifetime of
    a Grantee only by such Grantee or his guardian or legal
    representative.

 

    (b) No Right to Continued Employment,
    etc.  Nothing in the Plan or in any Award, any
    Award Agreement or other agreement entered into pursuant hereto
    shall confer upon any Grantee the right to continue in the
    employ of, or to continue as a director of, or to continue to
    provide services to, the Company or any Parent or Subsidiary of
    the Company or to be entitled to any remuneration or benefits
    not set forth in the Plan or such Award Agreement or other
    agreement or to interfere with or limit in any way the right of
    the Company or any such Parent or Subsidiary to terminate such
    Grantee’s employment, or director or independent contractor
    relationship.

 

    (c) Taxes.  The Company or any
    Parent or Subsidiary of the Company is authorized to withhold
    from any Award granted, any payment relating to an Award under
    the Plan, including from a distribution of Stock, or any other
    payment to a Grantee, amounts of withholding and other taxes due
    in connection with any transaction involving an Award, and to
    take such other action as the Committee may deem advisable to
    enable the Company and Grantees to satisfy obligations for the
    payment of withholding taxes and other tax obligations relating
    to any Award. This authority shall include authority to withhold
    or receive Stock or other property and to make cash payments in
    respect thereof in satisfaction of a Grantee’s tax
    obligations. The Committee may provide in the Award Agreement
    that in the event that a Grantee is required to pay any amount
    to be withheld in connection with the issuance of shares of
    Stock in settlement or exercise of an Award, the Grantee may
    satisfy such obligation (in whole or in part) by electing to
    have a portion of the shares of Stock to be received upon
    settlement or exercise of such Award equal to the minimum amount
    required to be withheld.

 

    (d) Stockholder Approval; Amendment and
    Termination.

 

    (i) The Plan shall be effective upon the IPO, provided that
    the Plan has been previously approved by Travelport Limited, the
    Company’s sole stockholder.

 

    (ii) The Board may at any time and from time to time alter,
    amend, suspend, or terminate the Plan in whole or in part;
    provided, however, that unless otherwise determined by the
    Board, an amendment that requires stockholder approval in order
    for the Plan to continue to comply with Section 162(m) or any
    other law, regulation or stock exchange requirement shall not be
    effective unless approved by the requisite vote of stockholders.
    Notwithstanding the foregoing, no amendment to or termination of
    the Plan shall affect adversely any of the rights of any
    Grantee, without such Grantee’s consent, under any Award
    theretofore granted under the Plan.

 

    (e) Expiration of Plan.  Unless
    earlier terminated by the Board pursuant to the provisions of
    the Plan, the Plan shall expire on the tenth anniversary of the
    Effective Date. No Awards shall be granted under the Plan after
    such expiration date. The expiration of the Plan shall not
    affect adversely any of the rights of any Grantee, without such
    Grantee’s consent, under any Award theretofore granted.

 

    (f) Deferrals.  The Committee shall
    have the authority to establish such procedures and programs
    that it deems appropriate to provide Grantees with the ability
    to defer receipt of cash, Stock or other property payable with
    respect to Awards granted under the Plan.

 

    (g) No Rights to Awards; No Stockholder
    Rights.  No Grantee shall have any
    claim to be granted any Award under the Plan, and there is no
    obligation for uniformity of treatment of Grantees. Except as
    provided specifically herein, a Grantee or a transferee of an
    Award shall have no rights as a stockholder with respect to any
    shares covered by the Award until the date of the issuance of a
    stock certificate to him for such shares.

 

    (h) Unfunded Status of Awards.  The
    Plan is intended to constitute an “unfunded” plan for
    incentive and deferred compensation. With respect to any
    payments not yet made to a Grantee pursuant to an Award, nothing

    

    9

 

    contained in the Plan or any Award shall give any such Grantee
    any rights that are greater than those of a general creditor of
    the Company.

 

    (i) No Fractional Shares.  No
    fractional shares of Stock shall be issued or delivered pursuant
    to the Plan or any Award. The Committee shall determine whether
    cash, other Awards, or other property shall be issued or paid in
    lieu of such fractional shares or whether such fractional shares
    or any rights thereto shall be forfeited or otherwise eliminated.

 

    (j) Regulations and Other Approvals.

 

    (i) The obligation of the Company to sell or deliver Stock
    with respect to any Award granted under the Plan shall be
    subject to all applicable laws, rules and regulations, including
    all applicable federal and state securities laws, and the
    obtaining of all such approvals by governmental agencies as may
    be deemed necessary or appropriate by the Committee.

 

    (ii) Each Award is subject to the requirement that, if at
    any time the Committee determines, in its absolute discretion,
    that the listing, registration or qualification of Stock
    issuable pursuant to the Plan is required by any securities
    exchange or under any state or federal law, or the consent or
    approval of any governmental regulatory body is necessary or
    desirable as a condition of, or in connection with, the grant of
    an Award or the issuance of Stock, no such Award shall be
    granted or payment made or Stock issued, in whole or in part,
    unless listing, registration, qualification, consent or approval
    has been effected or obtained free of any conditions not
    acceptable to the Committee.

 

    (iii) In the event that the disposition of Stock acquired
    pursuant to the Plan is not covered by a then-current
    registration statement under the Securities Act and is not
    otherwise exempt from such registration, such Stock shall be
    restricted against transfer to the extent required by the
    Securities Act or regulations thereunder, and the Committee may
    require a Grantee receiving Stock pursuant to the Plan, as a
    condition precedent to receipt of such Stock, to represent to
    the Company in writing that the Stock acquired by such Grantee
    is acquired for investment only and not with a view to
    distribution.

 

    (iv) The Committee may require a Grantee receiving Stock
    pursuant to the Plan, as a condition precedent to receipt of
    such Stock, to enter into a stockholder agreement or
    “lock-up”
    agreement in such form as the Committee shall determine is
    necessary or desirable to further the Company’s interests.

 

    (k) Governing Law.  The Plan and
    all determinations made and actions taken pursuant hereto shall
    be governed by the laws of the State of Delaware without giving
    effect to the conflict of laws principles thereof.

 

    (l) Tax Laws.  Awards under the
    Plan are intended to comply with Code Section 409A and all
    Awards shall be interpreted in accordance with Code
    Section 409A and Department of Treasury regulations and
    other interpretive guidance issued thereunder, including without
    limitation any such regulations or other guidance that may be
    issued after the effective date of the Plan. Notwithstanding any
    provision of the Plan or any Agreement to the contrary, in the
    event that the Committee determines that any Award may or does
    not comply with Code Section 409A, the Company may adopt
    such amendments to the Plan and the affected Award (without
    Participant consent) or adopt other policies and procedures
    (including amendments, policies and procedures with retroactive
    effect), or take any other actions, that the Committee
    determines are necessary or appropriate to (i) exempt the
    Plan and any Award from the application of Code
    Section 409A
    and/or
    preserve the intended tax treatment of the benefits provided
    with respect to Award, or (ii) comply with the requirements
    of Code Section 409A.

    

    10

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