Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.19

IDEXX Laboratories, Inc.

DIRECTOR DEFERRED COMPENSATION PLAN

Restated Effective as of January 1, 2008

The Director Deferred Compensation Plan of IDEXX Laboratories, Inc. (the “Plan”) was initially
established effective July 1, 2003 to provide an additional mechanism for satisfying stock
ownership guidelines, as well as to provide a vehicle for non-employee Directors to defer the
receipt of taxable income. The Plan is intended to be an “unfunded” plan maintained for the purpose
of providing deferred compensation to non-employee members of the Board of Directors for purposes
of Title I of the Employee Retirement Income Security Act of 1974. The Plan was amended and
restated in its entirety, effective January 1, 2005, primarily for the purpose of complying with
the applicable requirements of Section 409A of the Internal Revenue Code of 1986 (the “Code”), and
Proposed Regulations §§ 1.409A-1 et seq., and the Company operated the Plan in good faith
compliance with Code Section 409A and the restated Plan document since that time. The Plan is now
amended and restated in its entirety, effective January 1, 2008, for the purpose of continuing
compliance with Section 409A of the Code and Final Regulations §§1.409A-1 et seq.

ARTICLE I

DEFINITIONS

Unless the context otherwise requires, the following words and phrases as used herein shall have
the following meanings:

Section 1.1 “ACCOUNT” means the bookkeeping Account maintained for a Participant to which Deferrals
(including all Deferrals denominated as Deferred Stock Units) and Annual Grants, plus any earnings
thereon, are credited.

Section 1.2 “ANNUAL RETAINER” means the annual cash retainer paid by the Company to Directors.

Section 1.3 “BENEFICIARY” means the person that the Participant designates to receive any unpaid
portion of the Participant’s Account balance should the Participant’s death occur before the
Participant receives the entire Account balance. If the Participant does not designate a
beneficiary, his Beneficiary shall be his spouse if he is married at the time of his death, or his
estate if he is unmarried at the time of his death.

Section 1.4 “BOARD OF DIRECTORS” means the Board of Directors of IDEXX Laboratories, Inc.

Section 1.5 “CHANGE IN CONTROL” means, solely for purposes of this Plan, the occurrence of one or
more of the following events with respect to the Company:

(a) Any one person, or more than one person acting as a group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such person or
persons) beneficial ownership, directly or indirectly, of stock of the Company possessing 35% or
more of the total voting power of the stock of the Company; or

(b) Individuals constituting a majority of the members of the Company’s Board of Directors are
replaced during any 12-month period by new directors whose appointment or election is not approved
by a majority of the members of the Company’s Board of Directors serving immediately before the
appointment or election of any such new directors; or

(c) A change in the ownership of a substantial portion of the Company’s assets occurs on the
date that any one person, or more than one person acting as a group, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such person or
persons) assets from the Company that have a total gross fair market value equal to or more than
40% of the total gross fair market value of all of the assets of the
Company immediately prior to such acquisition or acquisitions. For this purpose, gross fair
market value means the value of the assets of the Company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such assets.

 

 

 

For purposes of determining whether a Change in Control has occurred, the term “person” shall have
the meaning given in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) and the term “beneficial owner” shall have the meaning given in Rule 13d-3
under the Exchange Act.

Section 1.6 “CODE” means the Internal Revenue Code of 1986, as amended.

Section 1.7 “COMPANY” means IDEXX Laboratories, Inc. and any subsidiary designated as a
participating entity by the Plan Administrator.

Section 1.8 “DEFERRALS” means amounts deferred under the Plan pursuant to Article III and allocated
to a Participant’s Account. No money or other assets will actually be contributed to such Accounts.

Section 1.9 “DEFERRED STOCK UNIT” means a notional interest in one share of IDEXX Stock. Each
Deferred Stock Unit shall be equivalent in value to one share of IDEXX Stock and shall be subject
to the terms of the 2003 Stock Incentive Plan.

Section 1.10 “DIRECTOR” means a non-employee member of the Board of Directors.

Section 1.11 “DISABLED” means that a Participant: (a) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment which can be
expected to result in death or can be expected to last for a continuous period of not less than
twelve months, or (b) is, by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than twelve months.

Section 1.12 “EFFECTIVE DATE” means the effective date of this restated plan document, generally
January 1, 2005.

Section 1.13 “IDEXX STOCK” means Common Stock of IDEXX Laboratories, Inc.

Section 1.14 “OTHER COMPENSATION” means cash compensation paid to a Director, other than the Annual
Retainer, including (without limitation) meeting fees, and annual fees for committee memberships
and committee chairs.

Section 1.15 “PARTICIPANT” means a Director who participates in the Plan.

Section 1.16 “PLAN” means this Director Deferred Compensation Plan, as it may be amended from time
to time.

Section 1.17 “PLAN ADMINISTRATOR” means the Vice President — Human Resources of IDEXX Laboratories,
Inc. or any person or entity designated by the Vice President — Human Resources.

Section 1.18 “PLAN YEAR” means the 12-month period beginning January 1 and ending December 31.

Section 1.19 “UNFORESEEABLE EMERGENCY” means a severe financial hardship to the Participant, the
Participant’s spouse or a dependent (as defined in Code Section 152(a)) of the Participant, loss of
the Participant’s property due to casualty, or other similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the Participant.

 

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ARTICLE II

ELIGIBILITY AND PARTICIPATION

Section 2.1 ELIGIBILITY. Each Director shall be eligible to become a Participant in the Plan
immediately upon the commencement of his or her membership on the Board.

Section 2.2 PARTICIPATION. A Director may become a Participant in the Plan by making the applicable
election described in Section 3.1 below. A Director’s participation will commence with the first
quarterly payment of the Annual Retainer paid after the completion of the Participant’s deferral
election. Each Director shall remain a Participant under the Plan until all amounts credited to the
Participant’s Account Balance have been distributed to the Participant or the Participant’s
Beneficiary.

ARTICLE III

DEFERRALS; ANNUAL GRANTS; VESTING

Section 3.1 DEFERRALS

(a) General. A Participant shall make a deferral election by completing and returning
to the Plan Administrator (or his or her designee) a written election on the form prescribed by the
Plan Administrator. In general, a Participant’s election shall be made between December 1 and
December 31 of the year immediately preceding the year in which the Annual Retainer and/or Other
Compensation (as applicable) will be earned, and shall become irrevocable with respect to a Plan
Year as of December 31 of such preceding year. However, a Director who shall first become eligible
to participate in the Plan or any similar non-qualified deferred compensation plan of the Company
after the time specified for making the deferral election under the Plan for the Plan Year as
provided in the preceding sentence may make his or her initial deferral election within 30 days
after first becoming eligible, such election to apply only the Annual Retainer and/or Other
Compensation (as applicable) to be earned for services provided during the remainder of such Plan
Year.

A Participant’s deferral election shall remain in effect until the date on which such Participant
ceases to be a Director, or until he or she modifies such election on a prospective basis with
respect to a subsequent Plan Year (in accordance with the requirements of subsection (a) above and
any applicable procedures prescribed by the Plan Administrator. Notwithstanding the foregoing, the
deferral election of a Participant who shall receive a distribution from the Plan on account of an
Unforeseeable Emergency shall be canceled for the remainder of the Plan Year, as soon as
administratively practicable following the approval of such distribution, and may not resume unless
and until the Participant shall make a new deferral election for a future Plan Year.

(b) Plan
Years Ending On or Before December 31, 2005. For Plan Years ending on or before
December 31, 2005, a Participant shall be required to defer 50% of his or her Annual Retainer,
which shall be credited to his or her Account in the form of Deferred Stock Units. For such Plan
Years, a Participant may elect to defer any or all of the remaining portion of such Annual Retainer
and any or all of his or her Other Compensation for a Plan Year.

(c) Plan
Years Beginning On or After January 1, 2006. For Plan Years beginning on and after
January 1, 2006, a Participant may elect to defer receipt of all, but not less than all, of his or
her Annual Retainer payable for any Plan Year, and a Participant shall not be permitted to defer
the receipt of any Other Compensation under the Plan.

(d) Plan Years Beginning On and After January 1, 2007. For Plan Years
beginning on and after January 1, 2007, a Participant may elect to defer receipt of all or any
portion of his or her Annual Retainer and/or Other Compensation payable for any Plan Year, in
accordance with subsection (a) of this Section.

Section 3.2 ANNUAL GRANTS. For Plan Years beginning on or after January 1, 2006, the Board may make
an annual grant to Directors of a number of Deferred Stock Units having a specified dollar value.
The number of Deferred Stock Units granted to a Director shall be determined by dividing the
closing price of IDEXX Stock on the grant date by such specified dollar value.

Section 3.3 VESTING.

(a) Deferrals. A Participant’s interest in elective Deferrals made under Section 3.1
of the Plan shall be fully vested and nonforfeitable at all times.

 

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(b) Annual Grants. Each Annual Grant of Deferred Stock Units shall vest on the first
anniversary of the grant date, if the Participant subject to the grant shall then be a member of
the Board of Directors; provided, however, that a Participant’s interest in his or
her unvested Deferred Stock Units shall vest upon the earliest to occur of a Change in Control, the
Participant’s death, or the Participant’s Disability.

ARTICLE IV

INVESTMENT OF DEFERRALS; DISTRIBUTIONS

Section 4.1 INVESTMENT OF DEFERRALS. All amounts deferred under the Plan shall be credited to the
Participant’s Account and shall be deemed to be invested in notional shares of IDEXX Stock,
denominated as Deferred Stock Units. The number of Deferred Stock Units credited to a
Participant’s Account with respect to any elective or mandatory deferral shall be determined by
dividing the amount of the deferral by the closing price of one share of IDEXX Stock on the
conversion date established by the Plan Administrator with respect to any deferral period, which
conversion date shall not be later than 30 days after the end of the deferral period.

Section 4.2 DISTRIBUTIONS.

(a) A Participant shall not be permitted to elect the form or timing of the distribution of
his or her benefits under the Plan. One year from the date of termination of a Participant’s Board
membership for any reason or, if earlier, upon the occurrence of a Change in Control of the
Company, the Participant will receive shares of IDEXX Stock equal to the number of Deferred Stock
Units credited to the Account of the Participant in complete distribution of his or her benefit
under the Plan. Notwithstanding the foregoing, a Participant’s benefit shall be distributed to his
or her personal representative if the Participant should die prior to the expiration of one year
following the date of termination of his or her Board membership.

(b) Upon application by the Participant, if the Plan Administrator determines that a
Participant has experienced an Unforeseeable Emergency, the Plan Administrator may authorize the
distribution of all or a portion of the Participant’s benefit under the Plan. The amount
distributed with respect to the Unforeseeable Emergency must not exceed the amounts necessary to
satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of
the distribution, after taking into account the extent to which such hardship is or may be relieved
through reimbursement or compensation by insurance or otherwise or by liquidation of the
Participant’s assets (to the extent the liquidation of such assets would not itself cause severe
financial hardship).

ARTICLE V

ADMINISTRATIVE PROCEDURES

Section 5.1 GENERAL. The Plan shall be administered by the Plan Administrator. The Plan
Administrator shall establish such procedures and rules as he or she, in his or her sole
discretion, shall deem appropriate regarding the making of deferral elections and distributions,
and all other administrative items for this Plan, in all events consistent with the written terms
of the Plan and Section 409A of the Code.

Section 5.2 PLAN INTERPRETATION. The Plan Administrator shall have the authority and responsibility
to interpret and construe the Plan and to decide all questions arising thereunder, including
without limitation, questions of eligibility for participation, eligibility for deferrals, Account
status, and the timing of the distribution thereof, and shall have the authority to deviate from
the literal terms of the Plan only to the extent the Plan Administrator shall determine, in his or
her sole discretion, to be necessary or appropriate to operate the Plan in compliance with the
provisions of applicable law, including, without limitation, Code Section 409A. In no event shall
the Plan Administrator use its authority or discretion to accelerate the timing of benefit
distributions under the Plan.

Section 5.3 RESPONSIBILITIES AND REPORTS. The Plan Administrator may, pursuant to a written
instruction, name other persons to carry out specific responsibilities. The Plan Administrator
shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and
reports that are furnished by any accountant, controller, counsel, or other person who is employed
or engaged for such purposes.

 

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ARTICLE VI

CLAIMS PROCEDURE

Section 6.1 DENIAL OF CLAIM FOR BENEFITS. Any denial by the Plan Administrator of any claim for
benefits under the Plan by a Participant or Beneficiary shall be stated in writing by the Plan
Administrator and delivered or mailed to the Participant or Beneficiary. The Plan Administrator
shall furnish the claimant with notice of the decision not later than 90 days after receipt of the
claim, unless special circumstances require an extension of time for processing the claim. If such
an extension of time for processing is required, written notice of the extension shall be furnished
to the claimant prior to the termination of the initial 90-day period. In no event shall such
extension exceed a period of 90 days from the end of such initial period. The extension notice
shall indicate the special circumstances requiring an extension of time and the date by which the
Plan Administrator expects to render the final decision. The notice of the Plan Administrator’s
decision shall be written in a manner calculated to be understood by the claimant and shall include
(i) the specific reasons for the denial, including, where appropriate, references to the Plan, (ii)
any additional information necessary to perfect the claim with an explanation of why the
information is necessary, and (iii) an explanation of the procedure for perfecting the claim.

Section 6.2 APPEAL OF DENIAL. The claimant shall have 60 days after receipt of written notification
of denial of his or her claim in which to file a written appeal with the Plan Administrator. As a
part of any such appeal, the claimant may submit issues and comments in writing and shall, on
request, be afforded an opportunity to review any documents pertinent to the perfection of his or
her claim. The Plan Administrator shall render a written decision on the claimant’s appeal
ordinarily within 60 days of receipt of notice thereof but, in no case, later than 120 days.

ARTICLE VII

FUNDING

Section 7.1 FUNDING. The Company shall not segregate or hold separately from its general assets any
amounts credited to Participant Accounts, and shall be under no obligation whatsoever to fund in
advance any amounts under the Plan, including Deferrals and earnings thereon.

Section 7.2 INSOLVENCY. In the event that the Company becomes insolvent, all Participants and
Beneficiaries shall be treated as general, unsecured creditors of the Company with respect to any
amounts credited to Participant Accounts.

ARTICLE VIII

AMENDMENT AND TERMINATION

The Company reserves the right to amend or terminate the Plan at any time by action of the
Board or the Compensation Committee thereof; provided, however, that the Vice President — Human
Resources may approve amendments to the Plan that are primarily technical or administrative in
nature (such as amendments that are necessary to bring the Plan into formal compliance with
applicable law and do not materially alter the design or benefit structure of the Plan).
Notwithstanding the foregoing, no such amendment or termination shall reduce any Participant’s
Account Balance as of the date of such amendment or termination, or accelerate the distribution of
benefits to any Participant. Any distributions made in connection with the termination of the Plan
shall be made: (a) not sooner than the last day of the 12th month after the termination
date, (b) not later than the 24th month after the termination date, and (c) in all other
ways in accordance with all applicable requirements of Section 409A of the Code.

ARTICLE IX

MISCELLANEOUS

Section 9.1 NO EMPLOYMENT CONTRACT. The establishment or existence of the Plan shall not confer
upon any individual the right to be continued as a Director.

Section 9.2 NON-ALIENATION. No amounts payable under the Plan shall be subject in any manner to
anticipation, assignment, or voluntary or involuntary alienation.

 

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Section 9.3 GOVERNING LAW. The Plan shall be governed by and construed in accordance with the laws
of the State of Maine to the extent not preempted by federal law.

Section 9.4 INCAPACITY. If the Plan Administrator, in his or her sole discretion, deems a
Participant or Beneficiary who is eligible to receive any payment hereunder to be incompetent to
receive the same by reason of illness or any infirmity or incapacity of any kind, the Plan
Administrator may direct the Company to apply such payment directly for the benefit of such person,
or to make payment to any person selected by the Plan Administrator to disburse the same for the
benefit of the Participant or Beneficiary. Payments made pursuant to this Section shall operate as
a discharge, to the extent thereof, of all liabilities of the Company, the Plan Administrator and
the Plan to the person for whose benefit the payments are made.

Section 9.5 CONSTRUCTION OF TERMS. For purposes of the Plan, the singular shall include the plural,
and vice versa and the masculine shall include the feminine.

Section 9.6 BINDING UPON SUCCESSORS. The liabilities under the Plan shall be binding upon any
successor, assign or purchaser of the Company or any purchaser of substantially all of the assets
of the Company.

Section 9.7 NO TRUST ARRANGEMENT. All benefits under the Plan represent an unsecured promise to pay
by the Company. The Plan shall be unfunded and the benefits hereunder shall be paid only from the
general assets of the Company resulting in the Participants having no greater rights than the
Company’s other general creditors. Nothing herein shall prevent or prohibit the Company from
establishing a trust or other arrangement for the purpose of providing for the payment of the
benefits payable under the Plan.

Approved May 21, 2003

Restated on February 22, 2006

Restated on January 1, 2008

 

6Filed by Bowne Pure Compliance

 

Exhibit 10.20

IDEXX LABORATORIES, INC.

2003 STOCK INCENTIVE PLAN

(Adjusted to reflect 2-for-1 stock split effective November 5, 2007)

SECTION 1.  PURPOSE. The purposes of the 2003 Stock Incentive Plan (the “Plan”) are to encourage selected
employees and Directors of IDEXX Laboratories, Inc., a Delaware corporation (the “Company”), and its Affiliates to
acquire a vested interest in the growth and performance of the Company, to generate an increased incentive to
contribute to the Company’s future success and prosperity, thus enhancing the value of the Company for the benefit of
stockholders, and to enhance the ability of the Company and its Affiliates to attract and retain individuals of
exceptional talent upon whom, in large measure, the sustained progress, growth and profitability of the Company
depends.

SECTION 2.  DEFINITIONS. As used in the Plan, the following terms shall have the meanings set forth below:

(a) “Affiliate” shall mean (i) any Person that directly, or through one or more intermediaries, controls, or is
controlled by, or is under common control with, the Company or (ii) any entity in which the Company has a significant
equity interest, as determined by the Board.

(b) “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock Award, dividend equivalent, Other
Stock Unit Award or any other right, interest or option relating to Shares or other property granted pursuant to the
provisions of the Plan.

(c) “Award Agreement” shall mean any agreement, contract or other instrument or document evidencing any Award
granted by the Board hereunder, in such form (written, electronic or otherwise) as the Board shall determine, which
may, but need not, be executed or acknowledged by both the Company and the Participant.

(d) “Board” shall mean the Board of Directors of the Company.

(e) “Change in Control” shall mean the occurrence of any of the following events:

(i) an acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act) (an “Entity”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 30% or more of either (A) the then outstanding Shares (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following: (1) any
acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege
unless the security being so converted was itself acquired directly from the Company, (2) any acquisition by the
Company, (3) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or
any corporation controlled by the Company, or (4) any acquisition by any corporation pursuant to a transaction that
complies with clauses (A), (B) and (C) of Section 2(e)(iii);

(ii) a change in the composition of the Board on the Plan’s effective date such that the individuals who, as of
the effective date, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that for purposes of
this definition, any individual who becomes a member of the Board subsequent to the effective date, whose election, or
nomination for election, by the Company’s stockholders was approved by a vote of at least a majority of those
individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such
pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; and provided further, however, that any such individual whose initial assumption of office occurs as a result of or in connection with either an actual or threatened solicitation with respect to the election of directors (as such terms are used in Rule 14a-12(c) of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of an Entity other than
the Board shall not be so considered as a member of the Incumbent Board;

 

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(iii) the consummation of a merger, reorganization or consolidation or sale or other disposition of all or
substantially all of the assets of the Company (each, a “Corporate Transaction”), excluding however, any Corporate
Transaction pursuant to which (A) all or substantially all of the individuals and entities who are the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately
prior to such Corporate Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the
outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate
Transaction (including, without limitation, a corporation or other Person that as a result of such transaction owns the
Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries (a
“Parent Company”)) in substantially the same proportions as their ownership, immediately prior to such Corporate
Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be,
(B) no Entity (other than the Company, any employee benefit plan (or related trust) of the Company, such corporation
resulting from such Corporate Transaction or, if reference was made to equity ownership of any Parent Company for
purposes of determining whether clause (A) above is satisfied in connection with the applicable Corporate Transaction,
such Parent Company) will beneficially own, directly or indirectly, 30% or more of, respectively, the outstanding
shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the
outstanding voting securities of such corporation entitled to vote generally in the election of directors unless such
ownership resulted solely from ownership of securities of the Company prior to the Corporate Transaction, and
(C) individuals who were members of the Incumbent Board will immediately after the consummation of the Corporate
Transaction constitute at least half of the members of the board of directors of the corporation resulting from such
Corporate Transaction (or, if reference was made to equity ownership of any Parent Company for purposes of determining
whether clause (A) above is satisfied in connection with the applicable Corporate Transaction, of the Parent Company);
or

(iv) the approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

(f) “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

(g) “Compensation Committee” shall mean the Compensation Committee of the Board, or any successor to such
committee, composed of no fewer than two directors, each of whom is a non-employee Director within the meaning of
Rule 16b-3(b)(3) of the Exchange Act, an “outside director” within the meaning of Section 162(m) of the Code, or any
successor provision thereto, and independent under the rules of the NASDAQ Global Market.

(h) “Company” shall mean IDEXX Laboratories, Inc., a Delaware corporation.

(i) “Covered Employee” shall mean a “covered employee” within the meaning of Section 162(m)(3) of the Code, or any
successor provision thereto.

(j) “Director” shall mean a member of the Board who is not an Employee.

(k) “Employee” shall mean any employee of the Company or any Affiliate.

(l) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

(m) “Fair Market Value” shall mean, with respect to any property other than Shares, the market value of such
property determined by such methods or procedures as shall be established from time to time by the Board. Unless otherwise determined by the Board, the Fair Market Value of Shares as of any date shall be the last
reported sales price for the Shares as reported on the NASDAQ Global Market (or on any national securities exchange on
the Shares are then listed) for that date or, if no such price is reported for that date, the last reported sales price
on the next preceding date for which such price was reported.

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(n) “Incentive Stock Option” shall mean an Option granted under Section 6 that is intended to meet the
requirements of Section 422 of the Code or any successor provision thereto.

(o) “Nonstatutory Stock Option” shall mean an Option granted under Section 6 that is not intended to be an
Incentive Stock Option.

(p) ‘‘Option” shall mean any right granted to a Participant under the Plan allowing such Participant to purchase
Shares at such price or prices and during such period or periods as the Board shall determine.

(q) “Other Stock Unit Award” shall mean any right granted to a Participant by the Board pursuant to Section 9.

(r) “Participant” shall mean an Employee or Director who is selected by the Board to receive an Award under the
Plan.

(s) “Person” shall mean any individual, corporation, partnership, association, limited liability company,
joint-stock company, trust, unincorporated organization or government or political subdivision thereof.

(t) “Prior Plans” shall mean the Company’s 1991 Stock Option Plan, 1998 Stock Incentive Plan and the 2000 Director
Option Plan.

(u) “Restricted Stock” shall mean any Share issued with the restriction that the holder may not sell, transfer,
pledge or assign such Share and with such other restrictions as the Board, in its sole discretion, may impose
(including, without limitation, any restriction on the right to vote such Share, and the right to receive any cash
dividends), which restrictions may lapse separately or in combination at such time or times, in installments or
otherwise, as the Board may deem appropriate.

(v) “Restricted Stock Award” shall mean an award of Restricted Stock under Section 8.

(w) “Shares” shall mean the shares of common stock of the Company, par value $.10 per share.

(x) ‘‘Stock Appreciation Right” shall mean any right granted to a Participant pursuant to Section 7 to receive,
upon exercise by the Participant, the excess of (i) the Fair Market Value of one Share on the date of exercise over
(ii) the grant price of the right on the date of grant, as specified by the Board in its sole discretion, which, except
in the case of Substitute Awards or in connection with an adjustment provided in Section 4(c), shall not be less than
the Fair Market Value of one Share on such date of grant of the right. Any payment by the Company in respect of such
right may be made in cash, Shares, other property, or any combination thereof, as the Board, in its sole discretion,
shall determine.

(y) “Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the time of the granting of the Award, each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes
of stock in one of the other corporations in the chain.

(z) “Substitute Awards” shall mean Awards granted or Shares issued by the Company in assumption of, or in
substitution or exchange for, awards previously granted, or the right or obligation to make future awards, by a company
acquired by the Company or with which the Company combines.

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SECTION 3.  ADMINISTRATION.

(a) The Plan will be administered by the Board. The Board shall have authority to grant Awards and to adopt,
amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable.
The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the
manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge
of such expediency. All decisions by the Board shall be made in the Board’s sole discretion and shall be final and
binding on all persons having or claiming any interest in the Plan or in any Award. No director or person acting
pursuant to the authority delegated by the Board shall be liable for any action or determination relating to or under
the Plan made in good faith.

(b) To the extent permitted by applicable law, the Board may delegate any or all of its powers under the Plan to
one or more committees or subcommittees of the Board (a “Committee”), at least one of which shall be the Compensation
Committee. All references in the Plan to the “Board” shall mean the Board or a Committee of the Board or the executive
officers referred to in Section 3(c) to the extent that the Board’s powers or authority under the Plan have been
delegated to such Committee or executive officers.

(c) To the extent permitted by applicable law, the Board may delegate to one or more executive officers of the
Company the power to grant Awards to employees or officers of the Company or any of its present or future subsidiary
corporations and to exercise such other powers under the Plan as the Board may determine, provided that the
Board shall fix the terms of the Awards to be granted by such executive officers (including the exercise price of such
Awards, which may include a formula by which the exercise price will be determined) and the maximum number of shares
subject to Awards that the executive officers may grant; provided further, however, that no
executive officer shall be authorized to grant Awards to any “executive officer” of the Company (as defined by Rule
3b-7 under the Exchange Act) or to any “officer” of the Company (as defined by Rule 16a-1 under the Exchange Act).

SECTION 4.  SHARES SUBJECT TO THE PLAN.

(a) Subject to adjustment as provided in Section 4(c), a total of 6,300,000 Shares shall be authorized for
issuance under the Plan. Any Shares that are subject to Awards of Options or Stock Appreciation Rights shall be
counted against this limit as one (1) Share for every one (1) Share granted. Any Shares that are subject to Awards
other than Options or Stock Appreciation Rights shall be counted against this limit as 2.1 Shares for every one (1)
Share granted. If any Shares subject to an Award or to an award under the Prior Plans are forfeited or if any Award or
award under the Prior Plans based on Shares is settled for cash or expires, the Shares subject to such Award shall, to
the extent of such forfeiture, cash settlement or expiration, again be available for Awards under the Plan.
Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Shares
authorized for grant under paragraph (a) of this Section: (i) Shares tendered by the Participant or withheld by the
Company in payment of the purchase price of an Option, (ii) Shares tendered by the Participant or withheld by the
Company to satisfy any tax withholding obligation with respect to an Award, and (iii) Shares subject to a Stock
Appreciation Right that are not issued in connection with the stock settlement of the Stock Appreciation Right on
exercise thereof. Substitute Awards shall not reduce the Shares authorized for issuance under the Plan or authorized
for grant to a Participant in any calendar year under Section 11(e). In the event that a company acquired by the
Company or with which the Company combines has shares available under a pre-existing plan not adopted in contemplation
of such acquisition or combination, the shares available for grant pursuant to the terms of such pre-existing plan (as
adjusted, to the extent appropriate, using the exchange ratio or other adjustment or valuation ratio or formula used in
such acquisition or combination to determine the consideration payable to the holders of common stock of the entities
party to such acquisition or combination) may be used for Awards (other than Incentive Stock Options) under the Plan
and shall not reduce the Shares authorized for issuance under the Plan; provided that Awards using such
available shares shall not be made after the date awards or grants could have been made under the terms of the
pre-existing plan, absent the acquisition or combination, and shall only be made to individuals who were not Employees
or Directors of the Company or an Affiliate prior to such acquisition or combination. Any Shares that again become
available for grant pursuant to this Section shall be added back as (i) one (1) Share if such Shares were subject to
Options or Stock Appreciation Rights granted under the Plan or options or stock appreciation rights granted under the
Prior Plans, and (ii) as 2.1 Shares if such Shares were subject to Awards other than Options or Stock Appreciation
Rights granted under the Plan or the Prior Plans.

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(b) Any Shares issued hereunder may consist, in whole or in part, of authorized and unissued shares, treasury
shares or shares purchased in the open market or otherwise.

(c) In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, extraordinary
cash dividend, stock split, reverse stock split, spin-off or similar transaction or other change in corporate structure
affecting the Shares, the Board shall make appropriate and equitable adjustments and other substitutions to the Plan
and to Awards, including, without limitation, such adjustments in the aggregate number, class and kind of securities
that may be delivered under the Plan, in the aggregate or to any one Participant, in the number, class, kind and option
or exercise price of securities subject to outstanding Options, Stock Appreciation Rights or other Awards granted under
the Plan, and in the number, class and kind of securities subject to Awards granted under the Plan (including, if the
Board deems appropriate, the substitution of similar options to purchase the shares of, or other awards denominated in
the shares of, another company) as the Board may determine in its sole discretion; provided, however,
that the number of Shares subject to any Award shall always be a whole number.

SECTION 5. ELIGIBILITY. Any Employee or Director shall be eligible to be selected as a Participant; provided,
however, that Incentive Stock Options shall only be awarded to Employees of the Company or a Subsidiary of the Company.

SECTION 6.  STOCK OPTIONS. Options may be granted hereunder to Participants either alone or in addition to other
Awards granted under the Plan. Any Option granted under the Plan shall be evidenced by an Award Agreement in such form
as the Board may from time to time approve. Any such Option shall be subject to the following terms and conditions and
to such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Board shall deem
desirable:

(a) OPTION PRICE. The purchase price per Share purchasable under an Option shall not be less than the Fair Market
Value of the Share on the date of the grant, except in the case of Substitute Awards or in connection with an
adjustment provided for in Section 4(c).

(b) OPTION PERIOD. The term of each Option shall be fixed by the Board in its sole discretion; provided
that no Option shall be exercisable after the expiration of ten years from the date the Option is granted.

(c) EXERCISABILITY. Options shall be exercisable at such time or times as determined by the Board at or
subsequent to grant.

(d) METHOD OF EXERCISE. Subject to the other provisions of the Plan, any Option may be exercised by the
Participant in whole or in part at such time or times, and the Participant may make payment of the option price in such
form or forms, including, without limitation: (i) payment by delivery of cash; (ii) delivery of other consideration
(including, where permitted by law and the Board, Awards) having a Fair Market Value on the exercise date equal to the
total option price; (iii) to the extent permitted by the Board, in its sole discretion, by delivery of an irrevocable
and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the
exercise price and any required tax withholding, or delivery by the Participant to the Company of a copy of irrevocable
and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient
to pay the exercise price and any required tax withholding; or (iv) by any combination of cash and other consideration
as the Board may specify in the applicable Award Agreement.

(e) INCENTIVE STOCK OPTIONS. In accordance with rules and procedures established by the Board, and except as
otherwise provided in Section 10 or any other provision of the Plan permitting or providing for acceleration of
options, the aggregate Fair Market Value (determined as of the time of grant) of the Shares with respect to which
Incentive Stock Options held by any Participant which are exercisable for the first time by such Participant during any
calendar year under the Plan (and under any other employee benefit plans of the Company or any Subsidiary) shall not
exceed $100,000 or, if different, the maximum limitation in effect at the time of grant under Section 422 of the Code,
or any successor provision, and any regulations promulgated thereunder. Incentive Stock Options shall be granted only
to Participants who are Employees of the Company or a Subsidiary of the Company. The terms of any Incentive Stock
Option granted hereunder shall comply in all respects with the provisions of Section 422 of the Code or any successor
provision, and any regulations promulgated thereunder; provided, however that the Company shall have no liability to a Participant or to any other person in the event
that an option that is intended to be an Incentive Stock Option is not an Incentive Stock Option. Subject to
adjustment as provided in Section 4(c), the aggregate number of Shares with respect to which Incentive Stock Options
may be issued under the Plan shall not exceed 6,300,000.

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SECTION 7.  STOCK APPRECIATION RIGHTS. Stock Appreciation Rights may be granted hereunder to Participants either
alone (“freestanding”) or in addition to other Awards granted under the Plan and may, but need not, relate to a
specific Option granted under Section 6. The provisions of Stock Appreciation Rights need not be the same with respect
to each recipient. Any Stock Appreciation Right related to a Nonstatutory Stock Option may be granted at the same time
such Option is granted. Any Stock Appreciation Right related to an Incentive Stock Option must be granted at the same
time such Option is granted. In the case of any Stock Appreciation Right related to any Option, the Stock Appreciation
Right or applicable portion thereof shall terminate and no longer be exercisable upon the termination or exercise of
the related Option, except that a Stock Appreciation Right granted with respect to less than the full number of Shares
covered by a related Option shall not be reduced until the exercise or termination of the related Option exceeds the
number of Shares not covered by the Stock Appreciation Right. Any Option related to any Stock Appreciation Right shall
no longer be exercisable to the extent the related Stock Appreciation Right has been exercised. The Board may impose
such conditions or restrictions on the exercise of any Stock Appreciation Right, as it shall deem appropriate;
provided that a freestanding Stock Appreciation Right shall not have an exercise price less than Fair Market
Value on the date of grant or a term of greater than ten years.

SECTION 8. RESTRICTED STOCK.

(a) ISSUANCE. A Restricted Stock Award shall be subject to restrictions imposed by the Board during a period of
time specified by the Board (the “Restriction Period”). Restricted Stock Awards may be issued hereunder to
Participants, for no cash consideration or for such minimum consideration as may be required by applicable law, either
alone or in addition to other Awards granted under the Plan. The provisions of Restricted Stock Awards need not be the
same with respect to each recipient.

(b) REGISTRATION. Any Restricted Stock issued hereunder may be evidenced in such manner, as the Board, in its
sole discretion, shall deem appropriate, including, without limitation, book entry registration or issuance of a stock
certificate or certificates. In the event any stock certificates are issued in respect of Shares of Restricted Stock
awarded under the Plan, such certificates shall be registered in the name of the Participant and shall bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such Award. Unless otherwise
determined by the Board, such certificates shall be deposited by the Participant, together with a stock power endorsed
in blank, with the Company or its designee.

(c) FORFEITURE. Except as otherwise determined by the Board at the time of grant or thereafter, upon termination
of employment for any reason during the Restriction Period, all Shares of Restricted Stock still subject to restriction
shall be forfeited by the Participant (or repurchased by the Company at their issue price) and reacquired by the
Company. Unrestricted Shares, evidenced in such manner as the Board shall deem appropriate, shall be issued to the
grantee promptly after expiration of the period of forfeiture, as determined or modified by the Board.

SECTION 9.  OTHER STOCK UNIT AWARDS.

(a) STOCK AND ADMINISTRATION. Other Awards of Shares and other Awards that are valued in whole or in part by
reference to, or are otherwise based on, Shares or other property (“Other Stock Unit Awards”) may be granted hereunder
to Participants, either alone or in addition to other Awards granted under the Plan. Such Other Stock Unit Awards
shall also be available as a form of payment in the settlement of other Awards granted under the Plan or as payment in
lieu of compensation to which such recipient otherwise is entitled. Other Stock Unit Awards may be paid in Shares or
cash, as the Board shall determine, in its sole discretion. Subject to the provisions of the Plan, the Board shall
have sole and complete authority to determine the Employees of the Company and its Affiliates and Directors to whom and
the time or times at which such Awards shall be made, the number of Shares to be granted pursuant to such Awards, and all other conditions of the Awards. The provisions of
Other Stock Unit Awards need not be the same with respect to each recipient.

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(b) TERMS AND CONDITIONS. Subject to the provisions of the Plan and any applicable Award Agreement, Awards and
Shares subject to Awards made under this Section 9 may not be sold, assigned, transferred, pledged or otherwise
encumbered prior to the date on which the Shares are issued, or, if later, the date on which any applicable
restriction, performance or deferral period lapses. Shares (including securities convertible into Shares) subject to
Awards granted under this Section 9 may be issued for no cash consideration or for such minimum consideration as may be
required by applicable law. Shares (including securities convertible into Shares) purchased pursuant to a purchase
right awarded under this Section 9 shall be purchased for such consideration as the Board shall determine in its sole
discretion, which, except in the case of Substitute Awards, shall not be less than the Fair Market Value of such Shares
or other securities as of the date such purchase right is awarded.

SECTION 10.  CHANGE IN CONTROL PROVISIONS.

(a) IMPACT OF EVENT. Subject to Section 10(a)(v) and notwithstanding any other provision of the Plan to the
contrary, unless the Board shall determine otherwise at the time of grant with respect to a particular Award, in the
event of a Change in Control:

(i) any Options and Stock Appreciation Rights outstanding as of the date such Change in Control is determined to
have occurred, and which are not then exercisable and vested, shall become immediately exercisable and vested as to 25%
of the number of shares to which such Options and Stock Appreciation Rights would otherwise not then be exercisable,
and the number of shares as to which such Options and Stock Appreciation Rights shall become exercisable and vested on
each vesting date set forth in the applicable agreement shall be reduced by 25%;

(ii) the restrictions and deferral limitations applicable to any Restricted Stock Award shall immediately lapse as
to 25% of the remaining number of shares subject to such Award as to which such restrictions and deferral limitations
are then in effect, and the number of shares subject to such Restricted Stock Award as to which such restrictions and
deferral limitations terminate on each subsequent vesting date shall be reduced by 25%;

(iii) the restrictions, deferral limitations and other conditions applicable to any Other Stock Unit Awards or any
other Awards shall immediately lapse as to 25% of the remaining number of shares subject to Other Stock Unit Awards or
other Awards as to which such restrictions, deferral limitations and other conditions are then in effect, and the
number of shares subject to such Other Stock Unit Awards or other Awards as to which such restrictions, deferral
limitations and other conditions terminate on each subsequent vesting date shall be reduced by 25%; and

(iv) in the event of an involuntary termination of a Participant’s employment or directorship by the successor
company without Cause (as defined below) during the 24-month period following such Change in Control, then each Award
held by such Participant at the time of the Change in Control shall immediately become fully exercisable and vested to
the full extent of the original grant and all restrictions and deferral limitation shall lapse. “Cause” shall mean:
(A) the failure of the Participant to perform substantially the Participant’s duties with the Company (other than any
such failure resulting from incapacity due to physical or mental illness), which failure is not cured within 30 days
after a written demand for substantial performance is delivered to the Participant by the Participant’s manager or the
Board which specifically identifies the manner in which such manager or the Board, as applicable, believes that the
Participant has not substantially performed the Participant’s duties, (B) or the engaging by the Participant in illegal
conduct or gross misconduct which is injurious to the Company.

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(v) Notwithstanding the foregoing, if in the event of a Corporate Transaction the successor company does not
assume or substitute for an Option, Stock Appreciation Right, Share of Restricted Stock or Other Stock Unit Award not
granted pursuant to Section 11, then each outstanding Option, Stock Appreciation Right, Share of Restricted Stock or
Other Stock Unit Award shall not be accelerated as described in Sections 10(a)(i), (ii) and (iii), but rather shall be
accelerated with respect to 100% of such Awards. For the purposes of this Section 10(a)(v), an Option, Stock
Appreciation Right, Share of Restricted Stock or Other Stock Unit Award shall
be considered assumed or substituted for if following the Corporate Transaction the award confers the right to
purchase or receive, for each Share subject to the Option, Stock Appreciation Right, Restricted Stock Award or Other
Stock Unit Award immediately prior to the Corporate Transaction, the consideration (whether stock, cash or other
securities or property) received in the Corporate Transaction by holders of Shares for each Share held on the effective
date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares); provided, however, that if such consideration
received in the Corporate Transaction is not solely common stock of the successor company, the Board may, with the
consent of the successor company, provide that the consideration to be received upon the exercise or vesting of an
Option, Stock Appreciation Right, Restricted Stock Award or Other Stock Unit Award, for each Share subject thereto,
will be solely common stock of the successor company substantially equal in fair market value to the per share
consideration received by holders of Shares in the Corporate Transaction. The determination of such substantial
equality of value of consideration shall be made by the Board in its sole discretion and its determination shall be
conclusive and binding.

(b) CHANGE IN CONTROL CASH-OUT. Notwithstanding any other provision of the Plan, in the event of a Change in
Control the Board may, in its discretion, provide that each Option or Stock Appreciation Right shall, upon the
occurrence of a Change in Control, be cancelled in exchange for a payment in an amount equal to the amount by which the
fair market value per Share immediately prior to the Change in Control exceeds the purchase price per Share under the
Option or Stock Appreciation Right (the “spread”) multiplied by the number of Shares granted under the Option or Stock
Appreciation Right.

SECTION 11.  CODE SECTION 162(m) PROVISIONS.

(a) Notwithstanding any other provision of the Plan, if the Compensation Committee determines at the time
Restricted Stock or an Other Stock Unit Award is granted to a Participant who is then an officer, that such Participant
is, or is likely to be as of the end of the tax year in which the Company would claim a tax deduction in connection
with such Award, a Covered Employee, then the Compensation Committee may provide that this Section 11 is applicable to
such Award.

(b) If Restricted Stock or an Other Stock Unit Award is subject to this Section 11, then the lapsing of
restrictions thereon and the distribution of cash or Shares pursuant thereto, as applicable, shall be subject to the
achievement of one or more objective performance goals established by the Compensation Committee, which shall be based
on the attainment of specified levels of one or any combination of the following: earnings before interest, taxes,
depreciation and amortization (EBITDA), net cash provided by operating activities, free cash flow, earnings per share,
earnings per share from continuing operations, operating income, revenues, operating margins, return on operating
assets, return on equity, economic value added, stock price appreciation, total stockholder return, cost control,
strategic initiatives, market share, before- or after-tax income, or return on invested capital of the Company or the
Affiliate or division of the Company for or within which the Participant is primarily employed. Such performance goals
also may be based on the achievement of specified levels of Company performance (or performance of an applicable
Affiliate or division of the Company) under one or more of the measures described above relative to the performance of
other corporations. Such performance goals may be applied by excluding the impact of charges for restructurings,
discontinued operations, extraordinary items, and other unusual or non-recurring items, and the cumulative effects of
accounting changes, each as defined by generally accepted accounting principles. Such performance goals shall be set
by the Compensation Committee within the time period prescribed by, and shall otherwise comply with the requirements
of, Section 162(m) of the Code, or any successor provision thereto, and the regulations thereunder.

(c) Notwithstanding any provision of the Plan other than Section 10, with respect to any Restricted Stock or Other
Stock Unit Award that is subject to this Section 11, the Compensation Committee may adjust downwards, but not upwards,
the amount payable pursuant to such Award, and the Compensation Committee may not waive the achievement of the
applicable performance goals except, in its sole discretion, in the case of the death or disability of the Participant

(d) The Compensation Committee shall have the power to impose such other restrictions on Awards subject to this
Section 11 as it may deem necessary or appropriate to ensure that such Awards satisfy all requirements for “performance-based compensation” within the meaning of Section 162(m)(4)(C) of the Code, or any
successor provision thereto.

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(e) Notwithstanding any provision of the Plan other than Section 4(c), no Participant may be granted Awards during
any year with respect to more than 1,200,000 Shares. For purposes of the foregoing limit, the combination of an Option in
tandem with a Stock Appreciation Right shall be treated as a single Award. The per Participant limit described in this
Section 11(e) shall be construed and applied consistently with Section 162(m) of the Code or any successor provision
thereto, and the regulations thereunder (“Section 162(m)”).

SECTION 12.  AMENDMENTS AND TERMINATION. The Board may amend, alter, suspend, discontinue or terminate the Plan
or any portion thereof at any time; provided, however, that no amendment or alteration, shall be made
without (a) stockholder approval if such approval is necessary to qualify for or comply with any tax or regulatory
requirement for which or with which the Board deems it necessary or desirable to qualify or comply, (b) the consent of
the affected Participant, if such action would impair the rights of such Participant under any outstanding Award, or
(c) stockholder approval if such amendment or alteration is material, including, without limitation, any amendment or
alteration that (i) would reduce the exercise price of outstanding Options or Stock Appreciation Rights or cancel or
amend outstanding Options or Stock Appreciation Rights for the purpose of repricing, replacing or regranting such
Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original
Options or Stock Appreciation Rights, or in exchange for cash or another Award, (ii) materially increases the
benefits accruing to Participants, (iii) materially increases the number of Shares that may be issued under the Plan,
except for any increase permitted under Section 4(a) or 4(c) of the Plan, (iv) materially modifies the requirements for
eligibility to participate in the Plan, or (v) expands the types of Awards issuable under the Plan. Notwithstanding
anything to the contrary herein, the Board may amend the Plan in such manner as may be necessary so as to have the Plan
conform to local rules and regulations in any jurisdiction outside the United States.

The Board may amend the terms of any Award theretofore granted, prospectively or retroactively, including to
provide that any Award shall become immediately exercisable in full or in part, free of some or all restrictions or
conditions, or otherwise realizable in full or in part, as the case may be; provided, however, that no
such amendment shall (a) impair the rights of any Participant without his or her consent, (b) except for adjustments
made pursuant to Section 4(c) or in connection with Substitute Awards, reduce the exercise price of outstanding Options
or Stock Appreciation Rights or cancel or amend outstanding Options or Stock Appreciation Rights for the purpose of
repricing, replacing or regranting such Options or Stock Appreciation Rights with an exercise price that is less than
the exercise price of the original Options or Stock Appreciation Rights, or in exchange for cash or another Award,
without stockholder approval, or (c) require the exchange of Options or Stock Appreciation Rights for cash
Notwithstanding the foregoing, any adjustments made pursuant to Section 4(c) shall not be subject to these
restrictions.

SECTION 13.  GENERAL PROVISIONS.

(a) Notwithstanding any other provision of the Plan, except under certain circumstances in connection with a
Participant’s hire or termination or in the event of a Change in Control, no Award issued to an Employee (except in
lieu of compensation to which such Employee is otherwise entitled) shall vest less than one year from the date of
grant.

(b) Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they
are granted, either voluntarily or by operation of law, except by will or the laws of descent and distribution, and,
during the life of the Participant, shall be exercisable only by the Participant; provided, however, that, if so
determined by the Board, a Participant may, in the manner established by the Board, designate a beneficiary to exercise
the rights of the Participant with respect to any Award upon the death of the Participant; and provided,
further, that an Award so assigned or transferred shall be subject to all the terms and conditions of the Plan
and the instrument evidencing the Award. Each Award shall be exercisable, during the Participant’s lifetime, only by
the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative.
References to a Participant, to the extent relevant in the context, shall include references to authorized transferees.

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(c) No Employee or Participant shall have any claim to be granted any Award under the Plan, and there is no
obligation for uniformity of treatment of Employees or Participants under the Plan.

(d) The prospective recipient of any Award under the Plan shall not, with respect to such Award, be deemed to have
become a Participant, or to have any rights with respect to such Award, until and unless such recipient shall have
received an agreement or other instrument (written, electronic or otherwise) evidencing the Award, which may, but need
not, be executed or acknowledged by both the Company and the Participant, and delivered a copy thereof to the Company,
and otherwise complied with the then applicable terms and conditions.

(e) Nothing in the Plan or any Award granted under the Plan shall be deemed to constitute an employment or service
contract or confer or be deemed to confer on any Participant any right to continue in the employ or service of, or to
continue any other relationship with, the Company or any Affiliate or limit in any way the right of the Company or any
Affiliate to terminate a Participant’s employment or service or other relationship at any time, with or without cause.

(f) Except as provided in Section 11, the Board shall be authorized to make adjustments in performance award
criteria or in the terms and conditions of other Awards in recognition of unusual or nonrecurring events affecting the
Company or its financial statements or changes in applicable laws, regulations or accounting principles. The Board may
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to
the extent it shall deem desirable to carry it into effect. In the event that the Company shall assume outstanding
employee benefit awards or the right or obligation to make future such awards in connection with the acquisition of or
combination with another corporation or business entity, the Board may, in its discretion, make such adjustments in the
terms of Awards under the Plan as it shall deem appropriate.

(g) The Board shall have full power and authority to determine whether, to what extent and under what
circumstances any Award shall be canceled or suspended.

(h) All certificates for Shares delivered under the Plan pursuant to any Award shall be subject to such
stock-transfer orders and other restrictions as the Board may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any stock exchange upon which the Shares are then listed, and
any applicable federal or state securities law, and the Board may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

(i) No Award granted hereunder shall be construed as an offer to sell securities of the Company, and no such offer
shall be outstanding, unless and until the Board in its sole discretion has determined that any such offer, if made,
would comply with all applicable requirements of the U.S. federal securities laws and any other laws to which such
offer, if made, would be subject.

(j) No Award shall provide for deferral of compensation that does not comply with Section 409A of the
Code, unless the Board, at the time of grant, specifically provides that the Award is not intended to comply
with Section 409A of the Code. The Company shall have no liability to a Participant, or any other party, if
an Award that is intended to be exempt from, or compliant with, Section 409A is not so exempt or compliant or
for any action taken by the Board. Subject to the provisions of the Plan and any Award Agreement, the
recipient of an Award (including, without limitation, any deferred Award) may, if so determined by the Board,
be entitled to receive, currently or on a deferred basis, cash dividends, or cash payments in amounts
equivalent to cash dividends on Shares (“dividend equivalents”) with respect to the number of Shares covered
by the Award, as determined by the Board, in its sole discretion, and the Board may provide that such amounts
(if any) shall be deemed to have been reinvested in additional Shares or otherwise reinvested.

(k) Except as otherwise required in any applicable Award Agreement or by the terms of the Plan, recipients of
Awards under the Plan shall not be required to make any payment or provide consideration other than the rendering of
services.

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(l) The Company shall be authorized to withhold from any Award granted or payment due under the Plan the amount of
withholding taxes due in connection with an Award or payment hereunder and to take such other action as may be
necessary in the opinion of the Company to satisfy all Company obligations for the payment of such taxes. The Board
shall be authorized to establish procedures for election by Participants to satisfy such obligation for the payment of
such taxes by directing the Company to retain Shares (not exceeding the minimum required tax withholding obligations if
such a limitation is necessary to avoid a charge to the Company for financial reporting purposes) otherwise deliverable
in connection with the Award.

(m) Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation
arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either
generally applicable or applicable only in specific cases.

(n) The validity, construction and effect of the Plan and any rules and regulations relating to the Plan shall be
determined in accordance with the laws of the State of Delaware and applicable federal law, without regard to
applicable conflicts of laws.

(o) If any provision of the Plan is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction,
or would disqualify the Plan or any Award under any law deemed applicable by the Board, such provision shall be
construed or deemed amended to conform to applicable laws or if it cannot be construed or deemed amended without, in
the determination of the Board, materially altering the intent of the Plan, it shall be stricken and the remainder of
the Plan shall remain in full force and effect.

(q) Awards may be granted to Participants who are foreign nationals or employed outside the United States, or
both, on such terms and conditions different from those applicable to Awards to Employees employed in the United States
as may, in the judgment of the Board, be necessary or desirable in order to recognize differences in local law or tax
policy. The Board also may impose conditions on the exercise or vesting of Awards in order to minimize the Company’s
obligation with respect to tax equalization for Employees on assignments outside their home country.

SECTION 14.  EFFECTIVE DATE OF PLAN. The Plan shall be effective as of May 21, 2003.

SECTION 15.  TERM OF PLAN. The Plan shall terminate on the tenth anniversary of the effective date, unless sooner
terminated by the Board pursuant to Section 12, but Awards previously granted may extend beyond that date;
provided, however, that no Incentive Stock Options may be granted more than ten years after the later
of (i) the adoption of the Plan by the Board and (ii) the adoption by the Board of any amendment to the Plan that
constitutes the adoption of a new plan for purposes of Section 422 of the Code.

Adopted by the Board of Directors on February 25, 2003, subject to stockholder approval.

Approved by the stockholders on May 21, 2003.

Amended by the Board of Directors on July 16, 2003.

Amended by the Board of Directors on October 12, 2005.

Amended by the Board of Directors on February 14, 2007, subject to stockholder approval.

Approved by the stockholders on May 9, 2007.

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