Document:

Exhibit 10.1

Exhibit 10.1

PIKE ELECTRIC CORPORATION

2008 Omnibus Incentive Compensation Plan,

as Amended and Restated Effective November 3, 2011

SECTION 1. Purpose. The purpose of this Pike Electric Corporation 2008 Omnibus
Incentive Compensation Plan is to promote the interests of Pike Electric Corporation, a Delaware
corporation (the “Company”), and its stockholders by (a) attracting and retaining exceptional
directors, officers, employees and consultants (including prospective directors, officers,
employees and consultants) of the Company and its Affiliates and (b) enabling such individuals to
participate in the long-term growth and financial success of the Company. The Company originally
established this Plan effective as of January 1, 2008. This Plan is hereby being amended and
restated, subject to and effective upon the approval of the Company’s stockholders at the annual
meeting of stockholders on November 3, 2011. The purpose of amending and restating the Plan is to
(i) authorize the issuance of additional Shares under the Plan, (ii) extend the term of the Plan by
four years and (iii) make certain other design changes consistent with changes in the economic and
business environment since the Plan was established.

SECTION 2. Definitions. As used herein, the following terms have the meanings set
forth below:

“Affiliate” means (a) any entity that, directly or indirectly, is controlled by, controls or
is under common control with, the Company and (b) any entity in which the Company has a significant
equity interest, in either case as determined by the Committee.

“Award” means any award that is made to a Participant under Section 6.

“Award Agreement” means any written agreement, contract or other instrument or document
evidencing any Award, which may, but need not, require execution or acknowledgment by a
Participant.

“Beneficial Ownership” or “Beneficial Owners” have the meanings assigned to those terms in
Rule 13d-3 under the Exchange Act.

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

“Cash Incentive Award” has the meaning specified in Section 6(g).

“Change in Control” means the occurrence of any of the following events:

(a) at any time during any period of 24 consecutive months at least a majority of the Board
shall cease to consist of directors of the Company who either were directors at the beginning of
such period or who subsequently became directors and whose election, or nomination for election by
the Company’s stockholders, was approved by a majority of the then Incumbent Directors (“Incumbent
Directors”); or

(b) any “person” or “group,” as determined in accordance with Section 13(d)(3) of the Exchange
Act (other than (A) any Subsidiary or employee benefit plan (or related trust or fiduciary)
sponsored or maintained by the Company or an Affiliate or (B) Lindsay Goldberg, LLC and its
affiliates)
acquires Beneficial Ownership of thirty-five percent (35%) or more of the combined voting
power of the then outstanding Company Voting Securities, unless such acquisition is approved by a
majority of the directors of the Company in office immediately preceding such acquisition; or

 

 

 

(c) the consummation of a merger, consolidation, statutory share exchange or similar
transaction to which the Company or any Subsidiary is a party (a “Merger”), unless immediately
following the Merger:

(1) the Beneficial Owners of the Company Voting Securities outstanding immediately
prior to such Merger are the Beneficial Owners of more than 50% of the combined voting
power of the then outstanding voting securities of the corporation or other entity
resulting from such Merger (including a corporation or other entity that as a result of
such Merger directly or indirectly owns the Company or all or substantially all the
Company’s assets) (the “Continuing Company”), provided such Beneficial Ownership is
attributable solely to Company Voting Securities held immediately prior to such Merger;
and

(2) at least a majority of the members of the board of directors (or equivalent
body) of the Continuing Company are Incumbent Directors; or

(d) the consummation of the sale of all, or substantially all, of the Company’s assets; or

(e) the stockholders of the Company approve a plan of complete liquidation of the Company.

Notwithstanding the foregoing, with respect to any Awards that provide or may provide for a
deferral of compensation within the meaning of Section 409A of the Code and that provide for an
accelerated payment in connection with a Change in Control, a Change in Control shall not be deemed
to have occurred unless the event shall also qualify as a “change in control event” under Section
409A of the Code.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, together with
the rules, regulations and interpretations promulgated thereunder.

“Committee” means the Compensation Committee of the Board, or such other committee of the
Board as may be designated by the Board to administer the Plan.

“Company Voting Securities” means the securities eligible to vote for the election of the
Board.

“Deferred Share Unit” means a deferred share unit Award that represents an unfunded and
unsecured promise to deliver Shares in accordance with the terms of the applicable Award Agreement.

“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
together with the rules, regulations and interpretations promulgated thereunder.

“Exercise Price” means (a) in the case of Options, the price specified in the applicable Award
Agreement as the price-per-Share at which Shares may be purchased pursuant to such Option or (b) in
the case of SARs, the price specified in the applicable Award Agreement as the reference
price-per-Share used to calculate the amount payable to the Participant.

 

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“Fair Market Value” means

(a) with respect to any property other than Shares, the fair market value of such property
determined by such methods or procedures as shall be established from time to time by the
Committee; and

(b) with respect to the Shares, as of any date, (i) if the Shares are listed on the NYSE or
any other exchange or quotation system, the mean between the high and low sales prices of the
Shares on such exchange or quotation system for such date or, if no sales occur on such date, then
on the next preceding date on which there were sales of Shares; or (ii) in the event the Shares are
not listed on an exchange or quotation system, the fair market value of the Shares as determined in
good faith by the Committee, in each case with respect to this clause (b), as determined in
accordance with Section 409A of the Code to the extent required under Section 409A of the Code.

“Incentive Stock Option” means an option to purchase Shares from the Company that (a) is
granted under Section 6 and (b) is intended to be and is specifically designated as an “incentive
stock option” within the meaning of Section 422 of the Code.

“Independent Director” means a member of the Board who is neither (a) an employee of the
Company nor (b) an employee of any Affiliate, and who, at the time of acting, is a “Non-Employee
Director” under Rule 16b-3.

“IRS” means the Internal Revenue Service or any successor thereto and includes the staff
thereof.

“Nonqualified Stock Option” means an option to purchase Shares from the Company that (a) is
granted under Section 6 and (b) is not an Incentive Stock Option.

“NYSE” means the New York Stock Exchange or any successor thereto.

“Option” means an Incentive Stock Option or a Nonqualified Stock Option or both, as the
context requires.

“Participant” means any director, officer, employee or consultant of the Company or its
Affiliates who is eligible for an Award under Section 5 and who is selected by the Committee to
receive an Award under the Plan or who receives a Substitute Award pursuant to Section 4(c).

“Performance Compensation Award” means any Award designated by the Committee as a Performance
Compensation Award pursuant to Section 6(e).

“Performance Criteria” means the criterion or criteria that the Committee selects for purposes
of establishing a Performance Goal for a Performance Period with respect to any Performance
Compensation Award, Performance Unit or Cash Incentive Award under the Plan.

“Performance Formula” means, for a Performance Period, the one or more objective formulas
applied against the relevant Performance Goal to determine, with regard to the Performance
Compensation Award, Performance Unit or Cash Incentive Award of a particular Participant, whether
all, a portion or none of the Award has been earned for the Performance Period.

“Performance Goal” means, for a Performance Period, the one or more goals established by the
Committee for the Performance Period based upon the Performance Criteria.

“Performance Period” means the one or more periods of time 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 Compensation Award, Performance Unit
or Cash Incentive Award.

 

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“Performance Unit” means an Award under Section 6(f) that has a value set by the Committee (or
that is determined by reference to a valuation formula specified by the Committee or the Fair
Market Value of Shares), which value may be paid to the Participant by delivery of such property as
the Committee shall determine, upon achievement of such Performance Goals during the relevant
Performance Period as the Committee shall establish at the time of such Award or thereafter.

“Plan” means this Pike Electric Corporation 2008 Omnibus Incentive Compensation Plan, as in
effect from time to time.

“Restricted Share” means a Share delivered under the Plan that is subject to certain transfer
restrictions, forfeiture provisions and/or other terms and conditions specified herein and in the
applicable Award Agreement.

“RSU” means a restricted stock unit Award that is designated as such in the applicable Award
Agreement and that represents an unfunded and unsecured promise to deliver Shares, cash, other
securities, other Awards or other property in accordance with the terms of the applicable Award
Agreement.

“Rule 16b-3” means Rule 16b-3 as promulgated and interpreted by the SEC under the Exchange Act
or any successor rule or regulation thereto as in effect from time to time.

“SAR” means a stock appreciation right Award that represents an unfunded and unsecured promise
to deliver Shares, cash, other securities, other Awards or other property equal in value to the
excess, if any, of the Fair Market Value per Share over the Exercise Price per Share of the SAR,
subject to the terms of the applicable Award Agreement.

“SEC” means the Securities and Exchange Commission or any successor thereto and shall include
the staff thereof.

“Shares” means shares of common stock of the Company or such other securities of the Company
(a) into which such shares shall be changed by reason of a recapitalization, merger, consolidation,
split-up, combination, exchange of shares or other similar transaction or (b) as may be determined
by the Committee pursuant to Section 4(b).

“Subsidiary” means any entity in which the Company, directly or indirectly, possesses 50% or
more of the total combined voting power of all classes of its stock.

“Substitute Awards” have the meaning specified in Section 4(c).

“Substituted Options” have the meaning specified in Section 6(c)(v).

“Substitution SARs” have the meaning specified in Section 6(c)(v).

SECTION 3. Administration.

(a) Composition of Committee. The Plan shall be administered by the Committee, which
shall be composed of one or more directors, as determined by the Board; provided that to the extent
necessary to comply with the rules of the NYSE and Rule 16b-3 and to satisfy any applicable
requirements of Section 162(m) of the Code and any other applicable laws or rules, the
Committee shall be composed of two or more directors, all of whom shall be Independent Directors
and all of whom shall (i) qualify as “outside directors” under Section 162(m) of the Code and (ii)
meet the independence requirements of the NYSE.

 

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(b) Authority of Committee. Subject to the terms of the Plan and applicable law, and
in addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee is authorized to grant Awards under the Plan, to construe and interpret the Plan, to
promulgate, amend and rescind rules and regulations relating to the implementation of the Plan and
to make all other determinations necessary or advisable for the administration of the Plan;
provided, however, that any permitted accelerations, deferrals or payments in respect of any Award
granted under the Plan shall comply with all applicable requirements of Section 409A of the Code,
including the timing of any deferral elections and the timing and form of payments. Unless
otherwise expressly provided in the Plan, all designations, determinations, interpretations and
other decisions under or with respect to the Plan or any Award shall be within the sole and plenary
discretion of the Committee, may be made at any time and shall be final, conclusive and binding
upon all persons, including the Company, any Affiliate, any Participant, any person validly
claiming under or through any Participant, any holder or beneficiary of any Award and any
stockholder. The Company shall effect the granting of Awards under the Plan in accordance with the
determinations made by the Committee, by execution of instruments in writing in such form as are
approved by the Committee.

(c) Indemnification. No member of the Board, the Committee or any employee of the
Company (each such person, a “Covered Person”) shall be liable for any action taken or omitted to
be taken or any determination made in good faith with respect to the Plan or any Award hereunder.
Each Covered Person shall be indemnified and held harmless by the Company against and from (i) any
loss, cost, liability or expense (including attorneys’ fees) that may be imposed upon or incurred
by such Covered Person in connection with or resulting from any action, suit or proceeding to which
such Covered Person may be a party or in which such Covered Person may be involved by reason of any
action taken or omitted to be taken under the Plan or any Award Agreement and (ii) any and all
amounts paid by such Covered Person, with the Company’s approval, in settlement thereof, or paid by
such Covered Person in satisfaction of any judgment in any such action, suit or proceeding against
such Covered Person; provided that the Company shall have the right, at its own expense, to assume
and defend any such action, suit or proceeding, and, once the Company gives notice of its intent to
assume the defense, the Company shall have sole control over such defense with counsel of the
Company’s choice. The foregoing right of indemnification shall not be available to a Covered Person
to the extent that a court of competent jurisdiction in a final judgment or other final
adjudication, in either case not subject to further appeal, determines that the acts or omissions
of such Covered Person giving rise to the indemnification claim resulted from such Covered Person’s
bad faith, fraud or willful criminal act or omission or that such right of indemnification is
otherwise prohibited by law or by the Company’s Certificate of Incorporation or Bylaws. The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to
which Covered Persons may be entitled under the Company’s Certificate of Incorporation or Bylaws,
as a matter of law, or otherwise, or any other power that the Company may have to indemnify such
persons or hold them harmless.

(d) Delegation of Authority to Senior Officers. To the extent permitted by applicable
law, the Committee may delegate, on such terms and conditions as it determines in its sole and
plenary discretion, to one or more senior officers of the Company the authority to make grants of
Awards to officers (other than executive officers), employees and consultants of the Company and
its Affiliates (including any prospective officer, employee or consultant).

 

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(e) Awards to Independent Directors. Notwithstanding anything to the contrary
contained herein, the Board may, in its sole and plenary discretion, at any time and from time to
time, grant Awards to Independent Directors or administer the Plan with respect to such Awards. In
any such case, the Board shall have all the authority and responsibility granted to the Committee
herein.

SECTION 4. Shares Available for Awards.

(a) Shares Available. Subject to adjustment as provided in Section 4(b), the aggregate
number of Shares that may be delivered pursuant to Awards granted under the Plan shall be 5,000,000
(which is comprised of the original 2,500,000 Shares authorized upon establishment of the Plan plus
an additional 2,500,000 Shares added effective upon approval by the stockholders of this amendment
and restatement of the Plan). The maximum number of Shares that may be delivered pursuant to
Incentive Stock Options granted under the Plan shall be 500,000. The maximum number of each type
of Award (other than Cash Incentive Awards) intended to constitute “performance-based compensation”
under Code Section 162(m) granted to any Participant in any fiscal year shall not exceed the
following: Options/SARs, 600,000; performance-based Restricted Shares/RSUs, 600,000; and
Share-based Performance Units, 600,000. If, after the effective date of the Plan, any Award
granted under the Plan is forfeited, or otherwise expires, terminates or is canceled without the
delivery of Shares, then the Shares covered by such forfeited, expired, terminated or canceled
Award shall again become available to be delivered pursuant to Awards under the Plan. If Shares
issued upon exercise, vesting or settlement of an Award, or Shares owned by a Participant (which
are not subject to any pledge or other security interest and which have been owned by the
Participant for such minimum period of time as the Company determines necessary to avoid any
adverse accounting consequences), are surrendered or tendered to the Company in payment of the
Exercise Price of an Award or any taxes required to be withheld in respect of an Award, in each
case, in accordance with the terms and conditions of the Plan and any applicable Award Agreement,
such surrendered or tendered Shares shall again become available to be delivered pursuant to Awards
under the Plan.

(b) Adjustments for Changes in Capitalization and Similar Events. In the event of any
change in corporate capitalization, such as a stock split, or a corporate transaction, such as any
merger, consolidation, separation, including a spin-off, or other distribution of stock or property
of the Company, any reorganization (whether or not such reorganization comes within the definition
of such term in Code Section 368) or any partial or complete liquidation of the Company, such
adjustment shall be made in (A) the number and class of Shares which may be issued under the Plan,
(B) the number and class of Shares that may be granted as ISOs as specified in Section 4(a), (C)
the maximum number and class of Shares that may be granted to individuals in a fiscal year as
specified in Section 4(a), and (D) the number and class of and/or price of Shares subject to
outstanding Awards granted under the Plan, as may be determined to be appropriate and equitable by
the Committee, in its sole discretion, to prevent dilution or enlargement of rights;
provided, however, that (i) the number of Shares subject to any Award shall always
be a whole number and (ii) such adjustment shall be made in a manner consistent with the
requirements of Code Section 409A in order for any Options or SARs to remain exempt from the
requirements of Code Section 409A. In connection with a corporate transaction, the Committee may:

(i) if deemed appropriate or desirable by the Committee, make provision for a cash
payment to the holder of an outstanding Award in consideration for the cancellation of such
Award, including, in the case of an outstanding Option or SAR, a cash payment to the holder
of such Option or SAR in consideration for the cancellation of such Option or SAR in an
amount equal to the excess, if any, of the Fair Market Value (as of a date specified by the
Committee) of the Shares subject to such Option or SAR over the aggregate Exercise Price of
such Option or SAR; and

 

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(ii) if deemed appropriate or desirable by the Committee, cancel and terminate any
Option or SAR having a per Share Exercise Price equal to, or in excess of, the Fair Market
Value of a Share subject to such Option or SAR without any payment or consideration
therefor.

(c) Substitute Awards. Awards may, in the discretion of the Committee, be granted
under the Plan in assumption of, or in substitution for, outstanding awards previously granted by a
company acquired by the Company or any of its Affiliates or with which the Company or any of its
Affiliates combines (“Substitute Awards”). Substitute Awards shall not be counted against the
aggregate number of Shares available for Awards under the Plan.

(d) Sources of Shares Deliverable Under Awards. Shares issued under the Plan may be
original issue shares, treasury stock or shares purchased in the open market or otherwise, all as
determined by the Chief Financial Officer of the Company (or the Chief Financial Officer’s
designee) from time to time, unless otherwise determined by the Committee.

SECTION 5. Eligibility. Any director, officer, employee or consultant of the Company
or any of its Affiliates shall be eligible to be designated a Participant.

SECTION 6. Awards.

(a) Types of Awards. Awards may be made under the Plan in the form of (i) Options,
(ii) SARs, (iii) Restricted Shares, (iv) RSUs, (v) Performance Units, (vi) Cash Incentive Awards,
(vii) Deferred Share Units and (viii) other equity-based or equity-related Awards that the
Committee determines are consistent with the purpose of the Plan and the interests of the Company.
Awards may be granted in tandem with other Awards. No Incentive Stock Option (other than an
Incentive Stock Option that may be assumed or issued by the Company in connection with a
transaction to which Section 424(a) of the Code applies) may be granted to a person who is
ineligible to receive an Incentive Stock Option under the Code.

(b) Options.

(i) Grant. Subject to the provisions of the Plan, the Committee has sole and
plenary authority to determine the Participants to whom Options shall be granted, the number of
Shares to be covered by each Option, whether the Option will be an Incentive Stock Option or a
Nonqualified Stock Option and the conditions and limitations applicable to the vesting and
exercise of the Option. In the case of Incentive Stock Options, the terms and conditions of such
grants shall be subject to and comply with such rules as may be prescribed by Section 422 of the
Code and any regulations related thereto, as may be amended from time to time. All Options
granted under the Plan shall be Nonqualified Stock Options unless the applicable Award Agreement
expressly states that the Option is intended to be an Incentive Stock Option. If an Option is
intended to be an Incentive Stock Option, and if for any reason such Option (or any portion
thereof) shall not qualify as an Incentive Stock Option, then, to the extent of such
nonqualification, such Option (or portion thereof) shall be regarded as a Nonqualified Stock
Option appropriately granted under the Plan; provided that such Option (or portion thereof)
otherwise complies with the Plan’s requirements relating to Nonqualified Stock Options.

(ii) Exercise Price. Except for Substitute Awards, the Exercise Price of each Share
covered by an Option shall be not less than 100% of the Fair Market Value of such Share
(determined as of the date the Option is granted); provided, however, that in the case of an
Incentive Stock Option granted to an employee who, at the time of the grant of such Option, owns
stock representing more than 10% of the voting power of all classes of stock of the Company or
any Affiliate, the per Share Exercise Price shall be no less than 110% of the Fair Market Value
per Share on the date of the grant.
Options are intended to qualify as “qualified performance-based compensation” under Section
162(m) of the Code.

 

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(iii) Exercisability. Each Option shall be vested and exercisable at such times, in
such manner and subject to such terms and conditions as the Committee may, in its sole and
plenary discretion, specify in the applicable Award Agreement or thereafter. Except as otherwise
specified by the Committee in the applicable Award Agreement, an Option may only be exercised to
the extent that it has already vested at the time of exercise. Except as otherwise specified by
the Committee in the applicable Award Agreement, Options shall become vested and exercisable
with respect to one-third of the Shares subject to such Options on each of the first three
anniversaries of the date of grant.

(iv) Method of Exercise. An Option shall be deemed to be exercised when written or
electronic notice of such exercise has been given to the Company in accordance with the terms of
the Award by the person entitled to exercise the Award and full payment for the Shares with
respect to which the Award is exercised has been received by the Company. The Committee may
impose such conditions with respect to the exercise of Options, including, without limitation,
any relating to the application of Federal or state securities laws, as it may deem necessary or
advisable. No Shares shall be delivered pursuant to any exercise of an Option until payment in
full of the aggregate Exercise Price therefor is received by the Company, and the Participant
has paid to the Company an amount equal to any Federal, state, local and foreign income and
employment taxes required to be withheld.

The Exercise Price due upon exercise of any Option shall be payable to the Company in full
either: (A) in cash or its equivalent or (B) in the Committee’s sole and plenary discretion, by
tendering previously acquired Shares having an aggregate Fair Market Value at the time of
exercise equal to the aggregate Exercise Price (provided that the shares which are tendered must
have been held by the Participant for such minimum period of time as the Company determines
necessary to avoid any adverse accounting consequences), or (C) by a combination of (A) and (B).

As soon as practicable after notification of exercise and full payment, the Company shall
deliver the shares to the Participant in an appropriate amount based upon the number of shares
purchased under the Option.

Notwithstanding the foregoing provisions of this paragraph 6(b)(iv), (A) unless the
Committee determines otherwise, Options may be exercised by means of cashless exercises
(including “broker assisted” cashless exercises and “net exercises”) and (B) the Committee, in
its sole and plenary discretion, may also allow exercises by any other means which the Committee
determines to be consistent with the Plan’s purpose and applicable law.

(v) Expiration. Except as otherwise set forth in the applicable Award Agreement,
each Option shall expire immediately, without any payment, upon the earlier of (A) the tenth
anniversary of the date the Option is granted and (B) 90 days after the date the Participant who
is holding the Option ceases to be a director, officer, employee or consultant of the Company or
one of its Affiliates. In no event may an Option be exercisable after the tenth anniversary of
the date the Option is granted.

(c) SARs.

(i) Grant. Subject to the provisions of the Plan, the Committee has sole and
plenary authority to determine the Participants to whom SARs shall be granted, the number of
Shares to be covered by each SAR, the Exercise Price thereof and the conditions and limitations
applicable to the exercise thereof. SARs may be granted in tandem with another Award, in
addition to another Award or
freestanding and unrelated to another Award. SARs granted in tandem with, or in addition
to, an Award may be granted either at the same time as the Award or at a later time.

 

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(ii) Exercise Price. Except for Substitute Awards and Substitution SARs (see
below), the Exercise Price of each Share covered by a SAR shall be not less than 100% of the
Fair Market Value of such Share (determined as of the date the SAR is granted). SARs are
intended to qualify as “qualified performance-based compensation” under Section 162(m) of the
Code.

(iii) Exercise. A SAR shall entitle the Participant to receive an amount equal to
the excess, if any, of the Fair Market Value of a Share on the date of exercise of the SAR over
the Exercise Price thereof. The Committee shall determine, in its sole and plenary discretion,
whether a SAR shall be settled in cash, Shares, other securities, other Awards, other property
or a combination of any of the foregoing.

(iv) Other Terms and Conditions. Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine, at or after the grant of a SAR, the
vesting criteria, term, methods of exercise, methods and form of settlement and any other terms
and conditions of any SAR. Any such determination by the Committee may be changed by the
Committee from time to time and may govern the exercise of SARs granted or exercised thereafter.
The Committee may impose such conditions or restrictions on the exercise of any SAR as it shall
deem appropriate or desirable.

(v) Substitution SARs. The Committee may substitute, without the consent of the
affected Participant or any holder or beneficiary of SARs, SARs settled in Shares (or SARs
settled in Shares or cash in the Committee’s discretion) (“Substitution SARs”) for outstanding
Nonqualified Stock Options (“Substituted Options”); provided that (A) the substitution shall not
otherwise result in a modification of the terms of any Substituted Option, (B) the number of
Shares underlying the Substitution SARs shall be the same as the number of Shares underlying the
Substituted Options and (C) the Exercise Price of the Substitution SARs shall be equal to the
Exercise Price of the Substituted Options. If, in the opinion of the Company’s auditors, this
provision creates adverse accounting consequences for the Company, it shall be considered null
and void.

(d) Restricted Shares and RSUs.

(i) Grant. Subject to the provisions of the Plan, the Committee has sole and
plenary authority to determine the Participants to whom Restricted Shares and RSUs shall be
granted, the number of Restricted Shares and RSUs to be granted to each Participant, the
duration of the period during which, and the conditions, if any, under which, the Restricted
Shares and RSUs may vest or may be forfeited to the Company and the other terms and conditions
of such Awards.

(ii) Transfer Restrictions. Restricted Shares and RSUs may not be sold, assigned,
transferred, pledged or otherwise encumbered except as provided in the Plan or as may be
provided in the applicable Award Agreement; provided, however, that the Committee may in its
discretion determine that Restricted Shares and RSUs may be transferred by the Participant.
Certificates issued in respect of Restricted Shares shall be registered in the name of the
Participant and deposited by such Participant, together with a stock power endorsed in blank,
with the Company or such other custodian as may be designated by the Committee or the Company,
and shall be held by the Company or other custodian, as applicable, until such time as the
restrictions applicable to such Restricted Shares lapse. Upon the lapse of the restrictions
applicable to such Restricted Shares, the Company or other custodian, as applicable, shall
deliver such certificates to the Participant or the Participant’s legal representative (unless
the Shares are held in book entry form).

 

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(iii) Payment/Lapse of Restrictions. Each RSU shall have a value equal to the Fair
Market Value of a Share. RSUs shall be paid in cash, Shares, other securities, other Awards or
other property, as determined in the sole and plenary discretion of the Committee, upon the
lapse of restrictions applicable thereto, or otherwise in accordance with the applicable Award
Agreement. If a Restricted Share or an RSU is intended to qualify as “qualified
performance-based compensation” under Section 162(m) of the Code, all requirements set forth in
Section 6(e) must be satisfied in order for the restrictions applicable thereto to lapse.

(e) Performance Compensation Awards.

(i) General. The Committee has the authority, at the time of grant of any Award, to
designate such Award (other than Options and SARs) as a Performance Compensation Award in order
to qualify such Award as “qualified performance-based compensation” under Section 162(m) of the
Code or to qualify such Award as “performance-based compensation” under Section 409A of the
Code. Options and SARs granted under the Plan shall not be included among Awards that are
designated as Performance Compensation Awards under this Section 6(e).

(ii) Eligibility. The Committee shall, in its sole discretion, designate within the
time period prescribed under Section 162(m) of the Code which Participants will be eligible to
receive Performance Compensation Awards in respect of such Performance Period. However,
designation of a Participant eligible to receive an Award hereunder for a Performance Period
shall not in any manner entitle the Participant to receive payment in respect of any Performance
Compensation Award for such Performance Period. The determination as to whether or not such
Participant becomes entitled to payment in respect of any Performance Compensation Award shall
be decided solely in accordance with the provisions of this Section 6(e). Designation of a
Participant eligible to receive an Award hereunder for a particular Performance Period shall not
require designation of such Participant eligible to receive an Award hereunder in any subsequent
Performance Period and designation of one person as a Participant eligible to receive an Award
hereunder shall not require designation of any other person as a Participant eligible to receive
an Award hereunder.

(iii) Discretion of Committee with Respect to Performance Compensation Awards. With
regard to a particular Performance Period, the Committee has full discretion to select the
length of such Performance Period, the types of Performance Compensation Awards to be issued,
the Performance Criteria that will be used to establish the Performance Goals, and the
Performance Formula. Within the time period prescribed under Section 162(m) of the Code, the
Committee shall, with regard to the Performance Compensation Awards to be issued for such
Performance Period, exercise its discretion with respect to each of the matters enumerated in
the immediately preceding sentence and record the same in writing.

(iv) Performance Criteria. Notwithstanding the foregoing, the Performance Criteria
that will be used to establish the Performance Goals shall be (A) based on the attainment of
specific levels of performance of the Company or any of its Subsidiaries, Affiliates, divisions,
regions, departments, operational units, or any combination of the foregoing, (B) established
within the time period prescribed by Section 162(m) of the Code, and (C) limited to one or more
of the following:

	 	•	 	Net income before or after taxes;

	 
	 	•	 	Earnings before or after taxes (including earnings before interest, taxes,
depreciation and amortization);

	 
	 	•	 	Operating income;

	 
	 	•	 	Earnings per share;

	 
	 	•	 	Return on shareholders’ equity;

 

10

 

	 	•	 	Return on investment or capital;

	 
	 	•	 	Return on assets;

	 
	 	•	 	Level or amount of acquisitions,

	 
	 	•	 	Share price;

	 
	 	•	 	Profitability and profit margins;

	 
	 	•	 	Market share;

	 
	 	•	 	Revenues or sales (based on units or dollars);

	 
	 	•	 	Costs;

	 
	 	•	 	Cash flow;

	 
	 	•	 	Working capital;

	 
	 	•	 	Safety and accident rates; and

	 
	 	•	 	Implementation, completion or attainment of measurable objectives with respect to
specific operational goals and targets, such as: (A) implementation of new
systems or processes, (B) specific projects, (C) M&A completion/integration,
(D) recruitment or retention of personnel and (E) customer satisfaction.

(v) Modification of Performance Goals. The Committee is authorized at any time
within the time period permitted by Section 162(m) of the Code, or any time thereafter (but only
to the extent the exercise of such authority after such period would not cause the Performance
Compensation Awards granted to any Participant for the Performance Period to fail to qualify as
“qualified performance-based compensation” under Section 162(m) of the Code), in its sole and
plenary discretion, to adjust or modify the calculation of a Performance Goal for such
Performance Period to the extent permitted under Section 162(m) of the Code (A) in the event of,
or in anticipation of, any unusual or extraordinary corporate item, transaction, event or
development affecting the Company or any of its Affiliates, Subsidiaries, divisions or operating
units (to the extent applicable to such Performance Goal) or (B) in recognition of, or in
anticipation of, any other unusual or nonrecurring events affecting the Company or any of its
Affiliates, Subsidiaries, divisions or operating units (to the extent applicable to such
Performance Goal), or the financial statements of the Company or any of its Affiliates,
Subsidiaries, divisions or operating units (to the extent applicable to such Performance Goal),
or of changes in applicable rules, rulings, regulations or other requirements of any
governmental body or securities exchange, accounting principles, law or business conditions.

(vi) Payment of Performance Compensation Awards.

(A) Condition to Receipt of Payment. A Participant must be employed by the
Company on the last day of a Performance Period (or such later date as determined by the
Committee and set forth in the applicable Award Agreement) to be eligible for payment in
respect of a Performance Compensation Award for such Performance Period. Notwithstanding the
foregoing, in the discretion of the Committee, Performance Compensation Awards may be paid
to Participants who have retired or whose employment has terminated after the beginning of
the Performance Period for which a Performance Compensation Award is made or to the designee
or estate of a Participant who died prior to the last day of a Performance Period.

(B) Limitation. Except as otherwise determined by the Committee and set forth
in the applicable Award Agreement, a Participant shall be eligible to receive payments in
respect of a Performance Compensation Award only to the extent that (1) the Performance
Goals for such period are achieved and certified by the Committee in accordance with Section
6(e)(vi)(C), and (2) the Performance Formula as applied against such Performance Goals
determines that all or some portion of such Participant’s Performance Compensation Award has
been earned for the Performance Period.

 

11

 

(C) Certification. Following the completion of a Performance Period, the
Committee shall meet to review and certify in writing whether, and to what extent, the
Performance Goals for the Performance Period have been achieved and, if so, to calculate and
certify in writing that amount of the Performance Compensation Awards earned for the period
based upon the Performance Formula. The Committee shall then determine the actual size of
each Participant’s Performance Compensation Award for the Performance Period and, in so
doing, may apply negative discretion as authorized by Section 6(e)(vi)(D).

(D) Negative Discretion. In determining the actual size of an individual
Performance Compensation Award for a Performance Period, the Committee may, in its sole and
plenary discretion, reduce or eliminate the amount of the Award earned in the Performance
Period, even if applicable Performance Goals have been attained.

(E) Timing of Award Payments. Except as otherwise determined by the Committee
and set forth in the applicable Award Agreement, the Performance Compensation Awards granted
for a Performance Period shall be paid to Participants as soon as administratively possible
following completion of the certifications required by Section 6(e)(vi)(C).

(F) Discretion. In no event shall any discretionary authority granted to the
Committee by the Plan be used to (1) grant or provide payment in respect of Performance
Compensation Awards for a Performance Period if the Performance Goals for such Performance
Period have not been attained, (2) increase a Performance Compensation Award for any
Participant at any time after the time period prescribed under Section 162(m) of the Code,
or (3) increase a Performance Compensation Award above the maximum amount payable under
Sections 4(a), 6(f)(iii) or 6(g) of the Plan.

(f) Performance Units.

(i) Grant. Subject to the provisions of the Plan, the Committee has sole and
plenary authority to determine the Participants to whom Performance Units shall be granted.

(ii) Value of Performance Units. Each Performance Unit shall have an initial value
that is established by the Committee at the time of grant. The Committee shall set Performance
Goals in its discretion which, depending on the extent to which they are met during a
Performance Period, will determine the number and value of Performance Units that will be paid
out to the Participant.

(iii) Earning of Performance Units. Subject to the provisions of the Plan, after
the applicable Performance Period has ended, the holder of Performance Units shall be entitled
to receive a payout of the number and value of Performance Units earned by the Participant over
the Performance Period, to be determined by the Committee, in its sole and plenary discretion,
as a function of the extent to which the corresponding Performance Goals have been achieved. No
cash-based Performance Unit under the Plan shall permit a payment to any Participant in excess
of $2,000,000 during any Performance Period.

(iv) Form and Timing of Payment of Performance Units. Subject to the provisions of
the Plan, the Committee, in its sole and plenary discretion, may pay earned Performance Units in
the form of cash or in Shares (or in a combination thereof) that has an aggregate Fair Market
Value equal to the value of the earned Performance Units at the close of the applicable
Performance Period. Such Shares may be granted subject to any restrictions in the applicable
Award Agreement deemed appropriate by the Committee. The determination of the Committee with
respect to the form and timing of payout of such Awards shall be set forth in the applicable
Award Agreement. If a Performance Unit is intended
to qualify as “qualified performance-based compensation” under Section 162(m) of the Code
or “performance based compensation” under Section 409A of the Code, all requirements set forth
in Section 6(e) must be satisfied in order for a Participant to be entitled to payment.

 

12

 

(g) Cash Incentive Awards. Subject to the provisions of the Plan, the Committee, in
its sole and plenary discretion, has the authority to grant Cash Incentive Awards. The Committee
shall establish Cash Incentive Award levels to determine the amount of a Cash Incentive Award
payable upon the attainment of Performance Goals. No Cash Incentive Award under the Plan for any
Participant shall exceed $2,000,000 during any Performance Period. If a Cash Incentive Award is
intended to qualify as “qualified performance-based compensation” under Section 162(m) of the Code
or “performance based compensation” under Section 409A of the Code, all requirements set forth in
Section 6(e) must be satisfied in order for a Participant to be entitled to payment.

(h) Other Stock-Based Awards. Subject to the provisions of the Plan, the Committee has
the sole and plenary authority to grant to Participants other equity-based or equity-related Awards
(including, but not limited to, Deferred Share Units and fully-vested Shares) in such amounts and
subject to such terms and conditions as the Committee shall determine, provided that any such
Awards must comply, to the extent deemed desirable by the Committee, with Rule 16b-3 and applicable
law.

(i) Dividend Equivalents. In the sole and plenary discretion of the Committee, an
Award, other than an Option, SAR or Cash Incentive Award, may provide the Participant with
dividends or dividend equivalents, payable in cash, Shares, other securities, other Awards or other
property, on a current or deferred basis, on such terms and conditions as may be determined by the
Committee in its sole and plenary discretion, in accordance with Section 409A of the Code, to the
extent applicable, including, without limitation, payment directly to the Participant, withholding
of such amounts by the Company subject to vesting of the Award or reinvestment in additional
Shares, Restricted Shares or other Awards.

SECTION 7. Amendment and Termination.

(a) Amendments to the Plan. Subject to any government regulation, to any requirement
that must be satisfied if the Plan is intended to be a shareholder approved plan for purposes of
Section 162(m) of the Code and to the rules of the NYSE or any successor exchange or quotation
system on which the Shares may be listed or quoted, the Plan may be amended, modified or terminated
by the Board without the approval of the stockholders of the Company, except that stockholder
approval shall be required for any amendment that would (i) increase the maximum number of Shares
for which Awards may be granted under the Plan (provided, that any adjustment under Section 4(b)
shall not constitute an increase for purposes of this Section 7(a)) or (ii) change the class of
employees or other individuals eligible to participate in the Plan. No modification, amendment or
termination of the Plan may, without the consent of the Participant to whom any Award shall
theretofor have been granted, materially and adversely affect the rights of such Participant (or
his or her transferee) under such Award, unless otherwise provided by the Committee in the
applicable Award Agreement. Notwithstanding the foregoing, the Company reserves the right to amend
the Plan, by action of the Board or the Committee without the consent of any affected Participant,
to the extent deemed necessary or appropriate for purposes of maintaining compliance with Section
409A of the Code.

 

13

 

(b) Amendments to Awards. The Committee may waive any conditions or rights under,
amend any terms of, or alter, suspend, discontinue, cancel or terminate any Award theretofor
granted, prospectively or retroactively; provided, however, that, except as set forth in the Plan,
unless otherwise provided by the Committee in the applicable Award Agreement, any such waiver,
amendment, alteration, suspension, discontinuance, cancellation or termination that would
materially and adversely impair the rights of any Participant or any holder or beneficiary of any
Award theretofor granted shall not to that
extent be effective without the consent of the impaired Participant, holder or beneficiary.
Notwithstanding the foregoing, the Company reserves the right to amend any Award granted under the
Plan, by action of the Board or the Committee without the consent of any affected Participant, to
the extent deemed necessary or appropriate for purposes of maintaining compliance with Section 409A
of the Code.

(c) Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events. The Committee is authorized to make adjustments in the terms and conditions of, and the
criteria included in, Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 4(b) or the occurrence of a Change in Control)
affecting the Company, any Affiliate, or the financial statements of the Company or any Affiliate,
or of changes in applicable rules, rulings, regulations or other requirements of any governmental
body or securities exchange, accounting principles or law (i) whenever the Committee, in its sole
and plenary discretion, determines that such adjustments are appropriate or desirable, including,
without limitation, providing for a substitution or assumption of Awards, accelerating the
exercisability of, lapse of restrictions on, or termination of, Awards or providing for a period of
time for exercise prior to the occurrence of such event, (ii) if deemed appropriate or desirable by
the Committee, in its sole and plenary discretion, by providing for a cash payment to the holder of
an Award in consideration for the cancellation of such Award, including, in the case of an
outstanding Option or SAR, a cash payment to the holder of such Option or SAR in consideration for
the cancellation of such Option or SAR in an amount equal to the excess, if any, of the Fair Market
Value (as of a date specified by the Committee) of the Shares subject to such Option or SAR over
the aggregate Exercise Price of such Option or SAR, and (iii) if deemed appropriate or desirable by
the Committee, in its sole and plenary discretion, by canceling and terminating any Option or SAR
having a per Share Exercise Price equal to, or in excess of, the Fair Market Value of a Share
subject to such Option or SAR without any payment or consideration therefor.

(d) Prohibition of Certain Amendments and Re-Pricings. Notwithstanding any provision
herein to the contrary, the repricing of Options or SARs is prohibited without prior approval of
the Company’s stockholders. For this purpose, a “repricing” means any of the following (or any
other action that has the same effect as any of the following): (A) changing the terms of an Option
or SAR to lower its Option Price or grant price; (B) any other action that is treated as a
“repricing” under generally accepted accounting principles; and (C) repurchasing for cash or
canceling an Option or SAR at a time when its Option Price or grant price is greater than the Fair
Market Value of the underlying Shares in exchange for another Award, unless the cancellation and
exchange occurs in connection with a change in capitalization or similar change under Section 4.6
above. Such cancellation and exchange would be considered a “repricing” regardless of whether it
is treated as a “repricing” under generally accepted accounting principles and regardless of
whether it is voluntary on the part of the Participant. Furthermore, neither the Board nor the
Committee shall, without further approval of the stockholders of the Company, authorize any Option
grant to provide for automatic “reload” rights, the automatic grant of Options to the Optionee upon
the exercise of Options using Shares or other equity.

SECTION 8. Change in Control. In the event of a Change in Control after the date of
the adoption of the Plan, unless (i) otherwise provided in the applicable Award Agreement or (ii)
provision is made in connection with the Change in Control for (A) assumption of Awards previously
granted or (B) substitution for previously granted Awards with new awards (which, in the discretion
of the Committee, may have the same vesting schedule as the awards assumed) covering stock of a
successor corporation or its “parent corporation” (as defined in Section 424(e) of the Code) or
“subsidiary corporation” (as defined in Section 424(f) of the Code) with appropriate adjustments as
to the number and kinds of shares and the Exercise Prices, if applicable:

(a) any outstanding Options or SARs then held by Participants that are unexercisable or
otherwise unvested shall automatically be deemed exercisable or otherwise vested, as the case may
be, as of immediately prior to such Change in Control;

 

14

 

(b) all Performance Units and Cash Incentive Awards shall be paid out as if the date of the
Change in Control were the last day of the applicable Performance Period and “target” performance
levels had been attained; and

(c) all other outstanding Awards (i.e., other than Options, SARs, Performance Units and Cash
Incentive Awards) then held by Participants that are unexercisable, unvested or still subject to
restrictions or forfeiture, shall automatically be deemed exercisable and vested and all
restrictions and forfeiture provisions related thereto shall lapse as of immediately prior to such
Change in Control.

Notwithstanding the foregoing, nothing contained in this Section 8 shall affect the Committee’s
authority to make the adjustments provided in Section 7(c) in the event of a Change in Control.

SECTION 9. General Provisions.

(a) Nontransferability. Except as otherwise specified in the applicable Award
Agreement, during the Participant’s lifetime each Award (and any rights and obligations thereunder)
shall be exercisable only by the Participant, or, if permissible under applicable law, by the
Participant’s legal guardian or representative, and no Award (or any rights and obligations
thereunder) may be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by a Participant otherwise than by will or by the laws of descent and distribution, and
any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall
be void and unenforceable against the Company or any Affiliate; provided that (i) the designation
of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer
or encumbrance and (ii) the Board or the Committee may permit further transferability, on a general
or specific basis, and may impose conditions and limitations on any permitted transferability;
provided, however, that (A) Incentive Stock Options granted under the Plan shall not be
transferable in any way that would violate Section 1.422-2(a)(2) of the Treasury Regulations and
(B) in no event may a Nonqualified Stock Option or SAR be transferred for consideration. All terms
and conditions of the Plan and all Award Agreements shall be binding upon any permitted successors
and assigns.

(b) No Rights to Awards. No Participant or other Person shall have any claim to be
granted any Award, and there is no obligation for uniformity of treatment of Participants or
holders or beneficiaries of Awards. The terms and conditions of Awards and the Committee’s
determinations and interpretations with respect thereto need not be the same with respect to each
Participant and may be made selectively among Participants, whether or not such Participants are
similarly situated.

(c) Share Certificates. All certificates for Shares or other securities of the Company
or any Affiliate delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may deem advisable
under the Plan, the applicable Award Agreement or the rules, regulations and other requirements of
the SEC, the NYSE or any other stock exchange or quotation system upon which such Shares or other
securities are then listed or reported and any applicable Federal or state laws, and the Committee
may cause a legend or legends to be put on any such certificates to make appropriate reference to
such restrictions. Notwithstanding any other provision of this Plan to the contrary, the Company
may elect to satisfy any requirement under this Plan for the delivery of stock certificates through
the use of book-entry.

 

15

 

(d) Withholding. A Participant may be required to pay to the Company or any Affiliate,
and the Company or any Affiliate has the right and is hereby authorized to withhold from any Award,
from any payment due or transfer made under any Award or under the Plan or from any compensation or
other amount owing to a Participant, the amount (in cash, Shares, other securities, other Awards or
other property) of any applicable withholding taxes in respect of an Award, its exercise or any
payment or transfer under an Award or under the Plan and to take such other action as may be
necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment
of such taxes. If Share withholding is applied, to the extent necessary to avoid adverse
accounting consequences, the Company will withhold Shares having a Fair Market Value on the date
the tax is to be determined equal to the minimum statutory total tax which could be imposed on the
transaction.

(e) Award Agreements. Each Award hereunder shall be evidenced by an Award Agreement,
which shall be delivered to the Participant and shall specify the terms and conditions of the Award
and any rules applicable thereto, including, but not limited to, the effect on such Award of the
death, disability or termination of employment or service of a Participant and the effect, if any,
of such other events as may be determined by the Committee.

(f) No Limit on Other Compensation Arrangements. Nothing contained in the Plan shall
prevent the Company or any Affiliate from adopting or continuing in effect other compensation
arrangements, which may, but need not, provide for the grant of options, restricted stock, shares
and other types of equity-based awards (subject to stockholder approval if such approval is
required), and such arrangements may be either generally applicable or applicable only in specific
cases.

(g) No Right to Employment. The grant of an Award shall not be construed as giving a
Participant the right to be retained as a director, officer, employee or consultant of or to the
Company or any Affiliate, nor shall it be construed as giving a Participant any rights to continued
service on the Board. Further, the Company or an Affiliate may at any time dismiss a Participant
from employment or discontinue any consulting relationship, free from any liability or any claim
under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement.

(h) No Rights as Stockholder. No Participant or holder or beneficiary of any Award has
any rights as a stockholder with respect to any Shares to be distributed under the Plan until he or
she has become the holder of such Shares. In connection with each grant of Restricted Shares,
except as provided in the applicable Award Agreement, the Participant shall not be entitled to the
rights of a stockholder in respect of such Restricted Shares. Except as otherwise provided in
Section 4(b), Section 7(c) or the applicable Award Agreement, no adjustments shall be made for
dividends or distributions on (whether ordinary or extraordinary, and whether in cash, Shares,
other securities or other property), or other events relating to, Shares subject to an Award for
which the record date is prior to the date such Shares are delivered.

(i) Governing Law. The validity, construction and effect of the Plan and any rules and
regulations relating to the Plan and any Award Agreement shall be determined in accordance with the
laws of the State of Delaware, without giving effect to the conflict of laws provisions thereof.

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

 

16

 

(k) Other Laws. The Committee may refuse to issue or transfer any Shares or other
consideration under an Award if, acting in its sole and plenary discretion, it determines that the
issuance or transfer of such Shares or such other consideration might violate any applicable law or
regulation or entitle the Company to recover the same under Section 16(b) of the Exchange Act, and
any payment tendered to the Company by a Participant, other holder or beneficiary in connection
with the exercise of such Award shall be promptly refunded to the relevant Participant, holder or
beneficiary. Without limiting the generality of the foregoing, 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 Committee in its sole and plenary discretion has determined that any such
offer, if made, would be in compliance with all applicable requirements of the U.S. Federal and any
other applicable securities laws.

(l) No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Affiliate, on one hand, and a Participant or any other Person, on the other hand. To
the extent that any Person acquires a right to receive payments from the Company or any Affiliate
pursuant to an Award, such right shall be no greater than the right of any unsecured general
creditor of the Company or such Affiliate.

(m) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award, and the Committee shall determine whether cash, other securities or other
property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be canceled, terminated or otherwise eliminated.

(n) Requirement of Consent and Notification of Election Under Section 83(b) of the Code or
Similar Provision. No election under Section 83(b) of the Code (to include in gross income in
the year of transfer the amounts specified in Section 83(b) of the Code) or under a similar
provision of law may be made unless expressly permitted by the terms of the applicable Award
Agreement or by action of the Committee in writing prior to the making of such election. If an
Award recipient, in connection with the acquisition of Shares under the Plan or otherwise, is
expressly permitted under the terms of the applicable Award Agreement or by such Committee action
to make such an election and the Participant makes the election, the Participant shall notify the
Committee of such election within ten days of filing notice of the election with the IRS or other
governmental authority, in addition to any filing and notification required pursuant to regulations
issued under Section 83(b) of the Code or other applicable provision.

(o) Requirement of Notification Upon Disqualifying Disposition Under Section 421(b) of the
Code. If any Participant shall make any disposition of Shares delivered pursuant to the
exercise of an Incentive Stock Option under the circumstances described in Section 421(b) of the
Code (relating to certain disqualifying dispositions) or any successor provision of the Code, such
Participant shall notify the Company of such disposition within ten days of such disposition.

(p) Compliance with Code Section 409A. The Plan is intended to comply with Section
409A of the Code. Notwithstanding any provision of the Plan to the contrary, the Plan shall be
interpreted, operated and administered consistent with this intent. For each Award intended to
comply with the short-term deferral exception provided for under Section 409A of the Code, the
related Award Agreement shall provide that such Award shall be paid out by the later of (i) the
15th day of the third month following the Participant’s first taxable year in which the Award is no
longer subject to a substantial risk of forfeiture or (ii) the 15th day of the third month
following the end of the Company’s first taxable year in which the Award is no longer subject to a
substantial risk of forfeiture. To the extent that the Committee determines that a Participant
would be subject to the additional 20% tax imposed on certain deferred compensation arrangements
pursuant to Section 409A of the Code as a result of any provision of any Award, to the extent
permitted by Section 409A of the Code, such provision shall be deemed amended to the minimum
extent necessary to avoid application of such additional tax. The Committee shall determine
the nature and scope of such amendment. To the extent required by Section 409A of the Code, any
payment under the Plan made in connection with the separation from service of a “specified
employee” (within the meaning of Section 409A of the Code) of an Award that is deferred
compensation that is subject to Section 409A of the Code shall not be made earlier than six (6)
months after the date of such separation from service.

 

17

 

(q) Headings. Headings are given to the Sections and subsections of the Plan solely as
a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

SECTION 10. Term of the Plan.

(a) Effective Date. The Plan shall be effective as of January 1, 2008, subject to
approval by the holders of the Company’s common stock, in accordance with applicable law and the
listing requirements of the NYSE, at the annual Meeting of Stockholders held on December 5, 2007 or
any adjournment thereof.

(b) Expiration Date. No Award shall be granted under the Plan after December 31, 2021.
Unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award
granted hereunder may, and the authority of the Board or the Committee to amend, alter, adjust,
suspend, discontinue or terminate any such Award or to waive any conditions or rights under any
such Award shall, nevertheless continue thereafter.

 

18exv4w1

Exhibit 4.1

EXTERRAN HOLDINGS, INC.

2011 EMPLOYMENT INDUCEMENT LONG-TERM EQUITY PLAN

I. PURPOSE

The purposes of this Exterran Holdings, Inc. 2011 Employment Inducement Long-Term Equity Plan are
to provide a means through which Exterran Holdings, Inc., a Delaware corporation, and its
Affiliates may attract highly-qualified persons to enter the employ of the Company and its
Affiliates, to provide a means through which such individuals, whose present and potential
contributions to the Company and its Affiliates are of importance, can acquire and maintain stock
ownership, thereby strengthening their concern for the welfare of the Company and its Affiliates,
and to provide such individuals with additional incentive and reward opportunities designed to
enhance the profitable growth of the Company and its Affiliates. Accordingly, the Plan provides for
the grant of Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights and
Performance Awards, or any combination of the foregoing, as is best suited to the circumstances of
the particular Employee as determined by the Committee in its sole discretion.

II. DEFINITIONS

     The following definitions shall be applicable throughout the Plan unless specifically modified
by any paragraph hereof:

     (a) “Affiliate” means any corporation, partnership, limited liability company or partnership,
association, trust or other organization which, directly or indirectly, controls, is controlled by,
or is under common control with, the Company. For purposes of the preceding sentence, “control”
(including, with correlative meanings, the terms “controlled by” and “under common control with”),
as used with respect to any entity or organization, shall mean the possession, directly or
indirectly, of the power (i) to vote more than fifty percent (50%) of the securities having
ordinary voting power for the election of directors of the controlled entity or organization, or
(ii) to direct or cause the direction of the management and policies of the controlled entity or
organization, whether through the ownership of voting securities or by contract or otherwise.

     (b) “Award” means, individually or collectively, any Options, Restricted Stock, Restricted
Stock Units, Stock Appreciation Rights or Performance Awards granted under the terms of the Plan.

     (c) “Award Notice” means a written notice setting forth the terms and conditions of an Award,
consistent with and subject to the terms and conditions of the Plan.

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

     (e) “Cause” means (i) the commission by a Participant of an act of fraud, embezzlement or
willful breach of a fiduciary duty to the Company or an Affiliate (including the unauthorized
disclosure of confidential or proprietary material information of the Company or an Affiliate),
(ii) conviction of a Participant for (or entry by a Participant of a plea of nolo contendere to) a
felony or a crime involving fraud, dishonesty or moral turpitude, (iii) willful failure of a
Participant to follow the written directions of the Chief Executive Officer of the Company or the
Board, in the case of executive officers of the Company; (iv) willful misconduct by a Participant
as an Employee of the Company or an Affiliate; (v) willful failure of a Participant to render
services to the Company or an Affiliate in accordance with his or her employment arrangement, which
failure amounts to a material neglect of his or her duties to the Company or an Affiliate; or (vi)
substantial dependence by a Participant, as determined by the Committee, in its sole discretion, on
any drug, immediate precursor or other substance listed on Schedule IV of the Federal Comprehensive
Drug Abuse Prevention and Control Act of 1970, as amended. With

 Page  1 

 

respect to any Participant residing outside of the United States, the Committee may revise the
definition of “Cause” as appropriate to conform to the laws of the applicable non-U.S.
jurisdiction.

     (f) “Code” means the U.S. Internal Revenue Code of 1986, as amended. References in the Plan to
any section of the Code shall be deemed to include any amendments or successor provisions to such
section and any Department of Treasury regulations and related guidance issued under such section.

     (g) “Committee” has the meaning set forth in Paragraph IV(a) of the Plan.

     (h) “Common Stock” means the common stock, par value $.01 per share, of the Company, or any
other security into which such common stock may be changed by reason of any transaction or event of
the type described in Paragraph XII of the Plan.

     (i) “Company” means Exterran Holdings, Inc., a Delaware corporation, or any successors
thereto.

     (j) “Corporate Change” means:

     (i) The acquisition by any individual, entity or group (within the meaning of Sections
13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of forty percent (40%) or more of
either (A) the then-outstanding shares of common stock of the Company (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”); provided, however, that for purposes of this
Subsection (i), any acquisition by any Person pursuant to a transaction which complies with
clause (A) of Subsection (iii) of this definition shall not constitute a Corporate Change;

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

     (iii) The consummation of a reorganization, merger or consolidation involving the
Company or any of its subsidiaries, or the sale, lease or other disposition of all or
substantially all of the assets of the Company and its subsidiaries, taken as a whole (other
than to an entity wholly-owned, directly or indirectly, by the Company) (each, a “Corporate
Transaction”), in each case, unless, following such Corporate Transaction, (A) all or
substantially all of the individuals and entities who were the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Corporate Transaction beneficially own, directly or indirectly, more than sixty
percent (60%) of, respectively, the then-outstanding shares of Common Stock and the combined
voting power of the then-outstanding voting securities entitled to vote generally in the
election of Directors, as the case may be, of the Resulting Corporation in substantially the
same proportions as their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case
may be, and (B) at

 Page  2 

 

least a majority of the members of the board of directors of the Resulting Corporation
were members of the Incumbent Board at the time of the execution of the initial agreement or
the action of the Board providing for such Corporate Transaction. The term “Resulting
Corporation” means (1) the Company or its successor, or (2) if as a result of a Corporate
Transaction the Company or its successor becomes a subsidiary of another entity, then such
entity or the parent of such entity, as applicable, or (3) in the event of a Corporate
Transaction involving the sale, lease or other disposition of all or substantially all of
the assets of the Company and its subsidiaries, taken as a whole, then the transferee of
such assets in such Corporate Transaction. Notwithstanding the foregoing, neither the sale,
lease or other disposition of assets by the Company or its subsidiaries to Universal
Compression Partners, L.P. or its subsidiaries or their successor nor the sale, lease or
other disposition of any interest in Universal Compression Partners, L.P., its general
partner or its subsidiaries or their successors shall, in and of itself, constitute a
Corporate Change for purposes of this Plan.

     (k) “Director” means an individual elected to the Board by the stockholders of the Company or
by the Board under applicable corporate law and who is serving on the Board on the date the Plan is
adopted by the Board, or is subsequently elected to the Board.

     (l) “Disability” means any physical or mental condition for which the Participant would be
eligible to receive long-term disability benefits under the Company’s long-term disability plan.
With respect to any Participant residing outside of the United States, the Committee may revise the
definition of “Disability” as appropriate to conform to the laws of the applicable non-U.S.
jurisdiction.

     (m) “Eligible Participant” means any Employee who (i) has not previously been an Employee of
the Company or an Affiliate, or (ii) is rehired following a bona fide period of non-employment by
the Company or an Affiliate, and is granted an Award in connection with his or her commencement of
employment with the Company or an Affiliate. The Board may in its discretion adopt procedures from
time to time to ensure that an Employee is eligible to participate in the Plan prior to the
granting of any Award to such Employee under the Plan (including, without limitation, a
requirement, if any, that each such Employee certify to the Company prior to the receipt of an
Award under the Plan that he or she has not previously been employed by the Company or its
Affiliates or, if previously employed, has had a bona fide period of non-employment, and that the
grant of Awards under the Plan is an inducement material to his or her agreement to enter into
employment with the Company or an Affiliate).

     (n) “Employee” means any person who is an employee of the Company or any Affiliate. If an
entity ceases to be an Affiliate of the Company, a Participant employed by such entity shall be
deemed to have terminated his or her employment with the Company and its Affiliates and shall cease
to be an Employee under the Plan. For any and all purposes under the Plan, the term “Employee”
shall exclude an individual hired as an independent contractor, leased employee, consultant, or a
person otherwise designated by the Committee, the Company or an Affiliate at the time of hire as
not eligible to participate in or receive benefits under the Plan, even if such ineligible
individual is subsequently determined to be an employee by any governmental or judicial authority.
For purposes of any Award granted to a person residing outside of the United States, the Committee
may revise the definition of “Employee” as appropriate to conform to the laws of the applicable
non-U.S. jurisdiction.

     (o) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (p) “Fair Market Value” of a share of Common Stock means, as of any specified date: (i) if the
Common Stock is listed on the New York Stock Exchange (“NYSE”) or any other national securities
exchange, the closing sales price of a share of Common Stock on that date, or if no prices are
reported on that date, on the last preceding day on which the Common Stock was traded, as reported
by such exchange; and (ii) if the Common Stock is not listed on the NYSE or any other national
securities

 Page  3 

 

exchange, but is traded in the over-the-counter market, the average of the bid and asked
prices for a share of Common Stock on the most recent date on which the Common Stock was publicly
traded. In the event the Common Stock is not publicly traded at the time a determination of its
value is required to be made hereunder, the determination of its Fair Market Value shall be made by
the Committee in such manner as it deems appropriate.

     (q) “Independent Director” means a Director of the Company who is not an Employee and who
qualifies as “independent” within the meaning of NYSE Listed Company Manual Section 303A.02 or the
requirements of any other established stock exchange on which the Company’s securities are traded.

     (r) “Non-Qualified Stock Option” means an Option granted under Paragraph VII of the Plan that
is not an “incentive stock option” within the meaning of Section 422 of the Code.

     (s) “Option” means an option to purchase shares of Common Stock granted under Paragraph VII of
the Plan.

     (t) “Participant” means an Employee who has been granted an Award under the Plan.

     (u) “Performance Award” means an opportunity for a Participant to earn additional compensation
if certain Performance Measures or other criteria are met, as described in Paragraph XI of the
Plan.

     (v) “Performance Measure” means any performance objective established by the Committee in its
sole discretion, including, but not limited to, one or more of the following: (1) the price of a
share of Common Stock; (2) the Company’s earnings per share; (3) the Company’s market share; (4)
the market share of a business unit of the Company designated by the Committee; (5) the Company’s
sales; (6) the sales of a business unit of the Company designated by the Committee; (7) the net
income (before or after taxes) of the Company or any business unit of the Company designated by the
Committee; (8) the cash flow return on investment, cash value added, and/or working cash flow of
the Company or any business unit of the Company designated by the Committee; (9) the earnings
before or after interest, leasing expense, taxes, depreciation, distributions on mandatorily
redeemable preferred stock, and/or amortization of the Company or any business unit of the Company
designated by the Committee; (10) the economic value added; (11) the return on stockholders’ equity
achieved by the Company; (12) the return on capital employed of the Company or any business unit of
the Company designated by the Committee; or (13) the total stockholders’ return achieved by the
Company.

A Performance Measure may be subject to adjustment for changes in accounting standards required by
the Financial Accounting Standards Board after the goal is established, for specified significant
items or events, and may be absolute, relative to one or more other companies, or relative to one
or more indexes, and may be contingent upon future performance of the Company or any Affiliate,
division, or department thereof.

     (w) “Plan” means this Exterran Holdings, Inc. 2011 Employment Inducement Long-Term Equity
Plan, as amended from time to time.

     (x) “Restricted Stock” means Common Stock subject to certain restrictions, as described in
Paragraph VIII of the Plan.

     (y) “Restricted Stock Unit” means a promise to deliver a share of Common Stock, or the Fair
Market Value of such share in cash, in the future if certain criteria are met, as described in
Paragraph IX of the Plan.

 Page  4 

 

     (z) “Retirement” means a Termination of Service, other than due to Cause or death, on or after
the Participant attains (i) age sixty-five (65) or (ii) age fifty-five (55) and with the written
consent of the Committee. Notwithstanding the foregoing, with respect to a Participant residing
outside of the United States, the Committee may revise the definition of “Retirement” as
appropriate to conform to the laws of the applicable non-U.S. jurisdiction.

     (aa) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, or any successor to
Rule 16b-3, as in effect from time to time.

     (bb) “Securities Act” means the Securities Act of 1933, as amended.

     (cc) “Stock Appreciation Right” means a right entitling the Participant to the difference
between the Fair Market Value of a share of Common Stock on the date of exercise and the Fair
Market Value of a share of Common Stock on the date of grant, as described in Paragraph X of the
Plan.

     (dd) “Termination
of Service” means a Participant’s termination of employment; provided, however, that if a Participant
continues to serve as a Director following the Participant’s termination of employment, then the Committee may,
in its sole discretion, determine that the Participant shall not incur a Termination of Service until the Participant’s
 service as a Director also terminates (in which case, the Participant shall incur a Termination of Service upon
such subsequent termination as a Director).

III. EFFECTIVE DATE AND DURATION OF THE PLAN

     The Plan shall become effective upon the date of its adoption by the Board. No further Awards
may be granted under the Plan after seven (7) years from the effective date of the Plan. The Plan
shall remain in effect until all Awards granted under the Plan have been exercised or expired or
vested or forfeited.

IV. ADMINISTRATION

     (a) Composition of Committee. The Plan shall be administered by the Compensation Committee of
the Board (the “Committee”); provided, however, that (i) any and all members of the Committee shall
satisfy any independence requirements prescribed by any stock exchange on which the Company lists
its Common Stock; and (ii) Awards may be granted to individuals who are subject to Section 16(b) of
the Exchange Act only if the Committee is comprised solely of two or more “Non-Employee Directors”
as defined in Rule 16b-3. Notwithstanding anything herein to the contrary, any action taken by the
Committee in connection with the administration of the Plan shall not be deemed approved by the
Committee unless such Committee is comprised solely of two or more Independent Directors.

     (b) Powers. Subject to Paragraph IV(d) below and the other express provisions of the Plan,
the Committee shall have authority, in its discretion, to determine which Employees shall receive
an Award, the time or times when such Award shall be made, the terms and conditions of an Award,
the type of Award that shall be made, the number of shares subject to an Award and the value of an
Award. In making such determinations, the Committee shall take into account the nature of the
services rendered by such Employees, their present and potential contributions to the Company’s
success and such other factors as the Committee, in its sole discretion, shall deem relevant.

     (c) Additional Powers. The Committee shall have such additional powers as are delegated to it
by the other provisions of the Plan. Subject to the express provisions of the Plan, this shall
include the power to construe the Plan and the respective notices provided hereunder, to prescribe
rules and regulations relating to the Plan, and to determine the terms, restrictions and provisions
of the notice relating to each Award, and to make all other determinations necessary or advisable
for administering the Plan. The Committee may correct any defect or supply any omission or
reconcile any inconsistency in the Plan or in any notice relating to an Award in the manner and to
the extent it shall deem expedient to carry

 Page  5 

 

it into effect. Any determination or decision made by the Committee or its delegate (pursuant
to Paragraph IV(d)) under the terms of the Plan shall be made in the sole discretion of the
Committee or such delegate and shall be final and binding on all persons, including the Company and
Participants, subject to ratification by the Board if the Board so provides.

     (d) Delegation of Powers. Subject to Paragraph IV(a) above, the Committee may delegate to the
Board the authority to grant Awards to Employees who are not subject to Section 16(b) of the
Exchange Act; provided, however, that any action taken by the Board in connection with the
administration of the Plan shall not be deemed approved by the Board unless such action is approved
by a majority of the Independent Directors. Any delegation described in this Subparagraph (d) shall
contain such limitations and restrictions as the Committee may provide and shall comply in all
respects with the requirements of applicable law, including the Delaware General Corporation Law.
The Committee may engage or authorize the engagement of a third party administrator or
administrators to carry out administrative functions under the Plan.

     No member of the Committee or individual to whom the Committee has delegated authority in
accordance with the provisions of Paragraph IV of this Plan shall be liable for anything done or
omitted to be done by him or her or by any member of the Committee in connection with the
performance of any duties under this Plan, except for his or her own willful misconduct or as
expressly provided by statute.

     (e) Awards Outside of the United States. With respect to any Participant or eligible Employee
who resides outside of the United States, the Committee may, in its sole discretion, amend or vary
the terms of the Plan in order to conform such terms with the requirements of local law, to meet
the goals and objectives of the Plan, and may, in its sole discretion, establish administrative
rules and procedures to facilitate the operation of the Plan in such non-U.S. jurisdictions. The
Committee may, where it deems appropriate in its sole discretion, establish one or more sub-plans
of the Plan for these purposes.

V. SHARES SUBJECT TO THE PLAN; AWARD LIMITATIONS

     (a) Shares Subject to the Plan. Subject to adjustment as provided in Paragraph XII, the
aggregate number of shares of Common Stock that may be issued under the Plan shall not exceed
one  million (1,000,000) shares. If (a) any Options or other stock-settled Awards are cancelled,
expired, forfeited, settled in cash, or otherwise terminated without issuing the underlying shares
of Common Stock to the Participant, or (b) issued but unvested shares of Restricted Stock are
forfeited, such shares shall remain or become available, as applicable, for future grants under the
Plan. Shares of Common Stock that are otherwise issuable to the Participant pursuant to an Award
that are withheld to satisfy tax withholding obligations or to pay the exercise price of an Option
shall be counted against the aggregate limitation of the Plan as provided herein and shall not
become available for future grants under the Plan.

     (b) Stock Offered. Subject to the limitations set forth in Paragraph V(a), the stock to be
offered pursuant to the grant of an Award may be authorized but unissued Common Stock or Common
Stock previously issued and outstanding and reacquired by the Company. Any of such shares which
remain unissued and which are not subject to outstanding Awards at the termination of the Plan
shall cease to be subject to the Plan but, until termination of the Plan, the Company shall at all
times make available a sufficient number of shares to meet the requirements of the Plan.

VI. ELIGIBILITY AND GRANT OF AWARDS

     Subject to the delegation of power in Paragraph IV(d), the Committee, in its sole discretion,
may from time to time grant Awards under the Plan as provided herein to any individual who, at the
time of grant, is an Eligible Participant. An Award may be granted on more than one occasion to the
same person, subject to the limitations set forth in the Plan. Awards may include Options,
Restricted Stock, Restricted

 Page  6 

 

Stock Units, Stock Appreciation Rights, Performance Awards or any combination thereof. The
Plan is discretionary in nature, and the grant of Awards by the Committee is voluntary and
occasional. The Committee’s selection of an Employee to receive an Award in any year or at any
time, or to receive a certain type of Award under the Plan, shall not require the Committee to
select such Employee to receive an Award in any other year or at any other time, or to receive any
other type of Award under the Plan. The Committee shall consider such factors as it deems pertinent
in selecting Participants and in determining the type and amount of their respective Awards.

VII. STOCK OPTIONS

     (a) Option Types and Option Period. All Options granted under the Plan shall be Non-Qualified
Stock Options. Except as otherwise provided in Subparagraph (c) below or such shorter term as may
be provided in an Award Notice, each Option shall expire seven (7) years from its date of grant
and, unless provided otherwise in the Award Notice, shall be subject to earlier termination as
follows: Options, to the extent vested as of the date a Participant incurs a Termination of
Service, may be exercised only within three (3) months of such date, unless such Termination of
Service results from (i) death, Retirement or Disability of the Participant, in which case all
vested Options held by such Participant may be exercised by the Participant, the Participant’s
legal representative, heir or devisee, as the case may be, within two (2) years from the date of
the Participant’s Termination of Service, or (ii) Cause, in which event all outstanding vested
Options held by such Participant shall be automatically forfeited unexercised on such termination.
Notwithstanding the foregoing, no termination event described in (i) above shall extend the
expiration date of an Option beyond the seventh (7th) anniversary of its date of grant
or, such shorter period, if any, as may be provided in the Award Notice.

     (b) Vesting. Subject to the further provisions of the Plan, Options shall vest and become
exercisable in accordance with such vesting schedule as the Committee may establish in its sole
discretion, including vesting upon the satisfaction of one or more Performance Measures. A
Participant may not exercise an Option except to the extent it has become vested. Unless otherwise
provided in the Award Notice, all unvested Options shall automatically become fully vested upon a
Participant’s Termination of Service due to his or her death, Disability or Retirement. Options
that are not vested on a Participant’s Termination of Service shall automatically terminate and be
cancelled unexercised on such date.

     (c) Award Notice. Each Option shall be evidenced by an Award Notice in such form and
containing such provisions not inconsistent with the provisions of the Plan and under such terms as
the Committee from time to time shall establish. An Award Notice may provide for the payment of the
Option price, in whole or in part, by cash, a check acceptable to the Company, the delivery of a
number of already-owned shares of Common Stock (plus cash if necessary) having a Fair Market Value
equal to such Option price (provided such shares have been owned for more than six (6) months by
the Participant), a “cashless broker exercise” of the Option through any other procedures
established or approved by the Committee with respect thereto, or any combination of the foregoing.
Further, an Award Notice may provide, in the sole discretion of the Committee, for the surrender of
the right to purchase shares under the Option in return for a payment in cash or shares of Common
Stock or a combination of cash and shares of Common Stock equal in value to the excess of the Fair
Market Value of the shares with respect to which the right to purchase is surrendered over the
Option price thereof, on such terms and conditions as the Committee in its sole discretion may
prescribe. The terms and conditions of the Award Notices need not be identical. Subject to the
consent of the applicable Participant, the Committee may, in its sole discretion, amend an
outstanding Award Notice from time to time in any manner that is not inconsistent with the
provisions of the Plan (including, without limitation, an amendment that accelerates the time at
which the Option, or a portion thereof, may be exercisable).

 Page  7 

 

     (d) Option Price and Payment. The price at which a share of Common Stock may be purchased
upon exercise of an Option shall be determined by the Committee, provided, that such purchase price
shall not be less than the Fair Market Value of a share of Common Stock on the date such Option is
granted, subject to adjustment as provided in Paragraph XII. The Option or any portion thereof
shall be exercised, and any applicable taxes shall be withheld, in accordance with such procedures
as are established or approved by the Committee.

     (e) Restrictions on Repricing of Options. Except as provided in Paragraph XII, the Committee
may not amend any outstanding Award Notice to lower the exercise price (or cancel and replace any
outstanding Options with Options having a lower exercise price).

     (f) Stockholder Rights and Privileges. The Participant shall be entitled to all the
privileges and rights of a stockholder only with respect to such shares of Common Stock as have
been purchased upon exercise of the Option and registered in the Participant’s name.

     (g) Options in Substitution for Options Granted by Other Employers. Options may be granted
under the Plan from time to time or approved by the Committee or the Board, as applicable, in
substitution of options held by individuals providing services to corporations or other entities
who become Eligible Participants as result of a merger or consolidation or other business
transaction with the Company or any Affiliate.

VIII. RESTRICTED STOCK

     (a) Restrictions to be Established by the Committee. Restricted Stock shall be subject to
restrictions on disposition by the Participant and an obligation of the Participant to forfeit and
surrender the shares to the Company under certain circumstances, and any other restrictions
determined by the Committee in its sole discretion on the date of grant; provided, however, that
such restrictions shall lapse upon:

     (i) the attainment of one or more Performance Measures;

     (ii) the
Participant’s continued employment with the Company and its Affiliates
(or, if the Committee so determines, in its sole discretion, such Participant’s continued service as a Director following any termination of such employment)
for a
specified period of time;

     (iii) the occurrence of any event or the satisfaction of any other condition specified
by the Committee in its sole discretion; or

     (iv) a combination of any of the foregoing.

Each grant of Restricted Stock may have different restrictions as established in the sole
discretion of the Committee.

     (b) Other Terms and Conditions. Restricted Stock shall be registered in the name of the
Participant. Unless provided otherwise in an Award Notice, the Participant shall have the right to
receive dividends with respect to Restricted Stock, to vote Restricted Stock, and to enjoy all
other stockholder rights, except that: (i) the Company shall retain custody of the Restricted Stock
until the Restrictions have expired; (ii) the Participant may not sell, transfer, pledge, exchange,
hypothecate or otherwise dispose of the Restricted Stock until the restrictions have expired; and
(iii) a breach of the terms and conditions established by the Committee pursuant to the applicable
Award Notice shall cause a forfeiture of the Restricted Stock. If a Participant’s Termination of
Service is due to his or her death or Disability, all Awards of Restricted Stock of such
Participant then outstanding shall immediately vest in full and all restrictions applicable to such
Awards shall terminate as of such date with all performance criteria, if any,

 Page  8 

 

applicable to such Awards deemed met at one hundred percent (100%) of target. At the time of
grant, the Committee may, in its sole discretion, establish additional terms, conditions or
restrictions relating to the Restricted Stock. Such additional terms, conditions or restrictions
shall be set forth in an Award Notice delivered in conjunction with the Award.

     (c) Payment for Restricted Stock. The Committee shall determine the amount and form of
payment required from the Participant in exchange for a grant of Restricted Stock, if any, provided
that in the absence of such a determination, a Participant shall not be required to make any
payment for Restricted Stock, except to the extent otherwise required by law.

     (d) Committee’s Discretion to Accelerate Vesting of Restricted Stock. The Committee may, in
its discretion and as of a date determined by the Committee, fully vest any or all of a
Participant’s Restricted Stock and, upon such vesting, all restrictions applicable to such
Restricted Stock shall terminate as of such date. Any action by the Committee pursuant to this
Subparagraph (d) may vary among individual Participants and among the Restricted Stock held by any
individual Participant.

     (e) Award Notice. Each grant of Restricted Stock shall be evidenced by an Award Notice in
such form and containing such provisions not inconsistent with the provisions of the Plan and under
such terms as the Committee from time to time shall establish. The terms and provisions of the
respective Award Notices need not be identical. Subject to the consent of the Participant and the
restriction set forth in the last sentence of Subparagraph (d) above, the Committee may, in its
sole discretion, amend an outstanding Award Notice from time to time in any manner that is not
inconsistent with the provisions of the Plan.

IX. RESTRICTED STOCK UNITS

     (a) Restrictions to be Established by the Committee. Restricted Stock Units shall be subject
to a restriction on disposition by the Participant and an obligation of the Participant to forfeit
the Restricted Stock Units under certain circumstances, and any other restrictions determined by
the Committee in its sole discretion on the date of grant; provided, however, that such
restrictions shall lapse upon:

     (i) the attainment of one or more Performance Measures;

     (ii) the
Participant’s continued employment with the Company and its Affiliates
(or, if the Committee so determines, in its sole discretion, such Participant’s continued
service as a Director following any termination of such employment)
for a
specified period of time;

     (iii) the occurrence of any event or the satisfaction of any other condition specified
by the Committee in its sole discretion; or

     (iv) a combination of any of the foregoing.

Each Award of Restricted Stock Units may have different restrictions as established in the sole
discretion of the Committee.

     (b) Other Terms and Conditions. The Participant shall not be entitled to vote the shares of
Common Stock underlying the Restricted Stock Units or enjoy any other stockholder rights unless and
until the restrictions have lapsed and such shares have been registered in the Participant’s name.
If a Participant’s Termination of Service is due to his or her death or Disability, all Restricted
Stock Units of such Participant then outstanding shall immediately vest in full and all
restrictions applicable to such Restricted Stock Units shall terminate as of such date with all
performance criteria, if any, applicable to such Restricted Stock Units deemed met at one hundred
percent (100%) of target. At the time of grant, the Committee may, in its sole discretion,
establish additional terms, conditions or restrictions relating to the

 Page  9 

 

Restricted Stock Units. Such additional terms, conditions or restrictions shall be set forth
in an Award Notice delivered in conjunction with the Award.

     (c) Payment. Upon the lapse of the restrictions described in the Award Notice, the
Participant shall receive as soon as practicable payment equal to the Fair Market Value of the
shares of Common Stock underlying the Restricted Stock Units on the vesting date, less applicable
withholding. Payment shall be in the form of shares of Common Stock, cash, other equity
compensation, or a combination thereof, as determined by the Committee. Any cash payment shall be
made in a lump sum or in installments, as prescribed in the Award Notice. Payment shall be made no
later than two and one-half (2 1/2) months following the end of the year in which the Restricted
Stock Units vest, unless payment is to be made in installments, in which case such installments
shall comply with the rules under Section 409A of the Code.

     (d) Committee’s Discretion to Accelerate Vesting of Restricted Stock Units. The Committee
may, in its discretion and as of a date determined by the Committee, fully vest any portion or all
of a Participant’s Restricted Stock Units and, upon such vesting, all restrictions applicable to
such Restricted Stock Units shall terminate as of such date. Any action by the Committee pursuant
to this Subparagraph (d) may vary among Participants and among the Restricted Stock Units held by
any Participant.

     (e) Award Notice. Restricted Stock Units shall be evidenced by an Award Notice in such form
and containing such provisions not inconsistent with the provisions of the Plan and under such
terms as the Committee from time to time shall establish. The terms and provisions of the Award
Notices need not be identical. Subject to the consent of the Participant and the restriction set
forth in the last sentence of Subparagraph (d) above, the Committee may, in its sole discretion,
amend an outstanding Award Notice from time to time in any manner that is not inconsistent with the
provisions of the Plan.

X. STOCK APPRECIATION RIGHTS

     (a) Restrictions to be Established by the Committee. Stock Appreciation Rights shall be
subject to a restriction on disposition by the Participant and an obligation of the Participant to
forfeit the Stock Appreciation Rights under certain circumstances, and any other restrictions
determined by the Committee in its sole discretion on the date of grant; provided, however, that
such restrictions shall lapse upon:

     (i) the attainment of one or more Performance Measures;

     (ii) the
Participant’s continued employment with the Company and its Affiliates
(or, if the Committee so determines, in its sole discretion, such Participant’s continued service as a Director following any termination of such employment)
for a
specified period of time;

     (iii) the occurrence of any event or the satisfaction of any other condition specified
by the Committee in its sole discretion; or

     (iv) a combination of any of the foregoing.

Each Award of Stock Appreciation Rights may have different restrictions as established in the sole
discretion of the Committee.

     (b) Other Terms and Conditions. If a Participant’s Termination of Service is due to his or
her death or Disability, all Stock Appreciation Rights of such Participant then outstanding shall
immediately vest in full and all restrictions applicable to such Stock Appreciation Rights shall
terminate as of such date with all performance criteria, if any, applicable to such Stock
Appreciation Rights deemed met at one hundred percent (100%) of target. At the time of grant, the
Committee may, in its sole discretion, establish additional terms, conditions or restrictions
relating to the Stock Appreciation Rights. Such

 Page  10 

 

additional terms, conditions or restrictions shall be set forth in the Award Notice delivered
in conjunction with the Award.

     (c) Exercise Price and Payment. Subject to adjustment as provided in Paragraph XII, the
exercise price of the Stock Appreciation Rights shall not be less than the Fair Market Value of the
shares of Common Stock underlying the Stock Appreciation Rights on the date of grant. Upon the
lapse of the restrictions described in the Award Notice, the Participant shall be entitled to
exercise his or her Stock Appreciation Rights at any time up until the end of the period specified
in the Award Notice. The Stock Appreciation Rights, or portion thereof, shall be exercised and any
applicable taxes withheld, in accordance with such procedures as are established or approved by the
Committee. Upon exercise of the Stock Appreciation Rights, the Participant shall be entitled to
receive payment in an amount equal to: (i) the difference between the Fair Market Value of one
underlying share of Common Stock subject to the Stock Appreciation Rights on the date of exercise
and the exercise price; times (ii) the number of shares of Common Stock with respect to which the
Stock Appreciation Rights are exercised; less (iii) any applicable withholding taxes. Payment shall
be made in the form of shares of Common Stock or cash, or a combination thereof, as determined by
the Committee. Cash shall be paid in a lump sum and shall be based on the Fair Market Value of the
underlying Common Stock on the exercise date.

     (d) Committee’s Discretion to Accelerate Vesting of Stock Appreciation Rights. The Committee
may, in its discretion and as of a date determined by the Committee, fully vest any portion or all
of a Participant’s Stock Appreciation Rights and, upon such vesting, all restrictions applicable to
such Stock Appreciation Rights shall terminate as of such date. Any action by the Committee
pursuant to this Subparagraph (d) may vary among Participants and among the Stock Appreciation
Rights held by any Participant.

     (e) Award Notice. Stock Appreciation Rights shall be evidenced by an Award Notice in such
form and containing such provisions not inconsistent with the provisions of the Plan and under such
terms as the Committee from time to time shall establish. The terms and provisions of the Award
Notices need not be identical. Subject to the consent of the Participant and the restriction set
forth in the last sentence of Subparagraph (d) above, the Committee may, in its sole discretion,
amend an outstanding Award Notice from time to time in any manner that is not inconsistent with the
provisions of the Plan.

XI. PERFORMANCE AWARDS

     (a) Performance Period. The Committee shall establish, with respect to and at the time of
each Performance Award, the maximum value of the Performance Award and the performance period over
which the performance applicable to the Performance Award shall be measured.

     (b) Performance Measures and Other Criteria. A Performance Award shall be awarded to a
Participant contingent upon future performance of the Company or any Affiliate, or a division or
department of the Company or any Affiliate, during the performance period. The Committee shall
provide that the vesting of the Performance Award will be based upon the Participant’s continued
employment with the Company or its Affiliates
(or, if the Committee so determines, in its sole discretion, such Participant’s continued service as a Director following any termination of such employment)
for a specified period of time and

     (i) the attainment of one or more Performance Measures, or a combination thereof;

     (ii) the occurrence of any event or the satisfaction of any other condition specified
by the Committee in its sole discretion; or

     (iii) a combination of any of the foregoing.

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The Committee, in its sole discretion, may also provide for an adjustable Performance Award
value-based upon the level of achievement of Performance Measures.

     (c) Vesting. If a Participant’s Termination of Service is due to his or her death or
Disability, all Performance Awards of such Participant then outstanding shall immediately vest in
full and all restrictions applicable to such Awards shall terminate as of such date with all
performance criteria, if any, applicable to such Awards deemed met at one hundred percent (100%) of
target.

     (d) Award Criteria. In determining the value of a Performance Award, the Committee shall take
into account a Participant’s responsibility level, performance, potential, other Awards, total
annual compensation and such other considerations as it deems appropriate. The Committee, in its
sole discretion, may provide for a reduction in the value of a Participant’s Performance Award
during the performance period.

     (e) Payment. Following the end of the performance period, the holder of a Performance Award
shall be entitled to receive payment as soon as practicable of an amount not exceeding the maximum
value of the Performance Award, based on the achievement of the Performance Measures for such
performance period, as determined and certified in writing by the Committee. Payment of a
Performance Award may be made in cash, Common Stock, Options or other equity compensation, or a
combination thereof, as determined by the Committee. Payment shall be made in a lump sum or in
installments as prescribed in the Award Notice. If a Performance Award covering shares of Common
Stock is to be paid in cash, such payment shall be based on the Fair Market Value of a share of
Common Stock on the payment date. Payment shall be made no later than two and one-half (2 1/2) months
following the end of the year in which the Performance Award vests, unless payment is to be made in
installments, in which case such installments shall comply with the rules under Section 409A of the
Code.

     (f) Award Notice. Each Performance Award shall be evidenced by an Award Notice in such form
and containing such provisions not inconsistent with the provisions of the Plan and under such
terms as the Committee from time to time shall establish. The terms and provisions of the Award
Notices need not be identical. Subject to the consent of the Participant, the Committee may, in its
sole discretion, amend an outstanding Award Notice from time to time in any manner that is not
inconsistent with the provisions of the Plan.

XII. RECAPITALIZATION OR REORGANIZATION

     (a) No Effect on Right or Power. The existence of the Plan and the Awards granted hereunder
shall not affect in any way the right or power of the Board or the stockholders of the Company to
make or authorize any adjustment, recapitalization, reorganization or other change in the Company’s
or any Affiliate’s capital structure or business, any merger or consolidation of the Company or any
Affiliate, any issue of debt or equity securities ahead of or affecting Common Stock or the rights
thereof, the dissolution or liquidation of the Company or any Affiliate, any sale, lease, exchange
or other disposition of all or any part of the assets or business of the Company or any Affiliate
or any other corporate act or proceeding.

     (b) Subdivision or Consolidation of Shares; Stock Dividends. If and when, prior to the
expiration of an Award previously granted, the Company shall effect a subdivision or consolidation
of shares of Common Stock or the payment of a dividend on Common Stock which is paid in the form of
Company stock without receipt of consideration by the Company, the number of shares of Common Stock
with respect to which such Award may thereafter be exercised or satisfied, shall be adjusted as
follows: (i) in the event of an increase in the number of outstanding shares, the number shares of
Common Stock subject to the Award shall be proportionately increased, and the purchase price per
share shall be proportionately reduced; and (ii) in the event of a reduction in the number of
outstanding shares, the number shares of Common Stock subject to the Award shall be proportionately
reduced, and the

 Page  12 

 

purchase price per share shall be proportionately increased, other than in the event of a
Company-directed share repurchase program. Any fractional share resulting from such adjustment
shall be rounded up to the next whole share. Such proportionate adjustments will be made for
purposes of making sure that to the extent possible, the fair value of the Awards after the
subdivision, consolidation or dividend is equal to the fair value before the change.

     (c) Corporate Changes. Except as otherwise specifically provided in an Award Notice,
effective upon a Corporate Change (or at such earlier time as the Committee may provide), all
Options then outstanding shall immediately become exercisable in full, all Restricted Stock shall
vest in full and cease to be subject to any restrictions, all Restricted Stock Units shall vest in
full and cease to be subject to any restrictions, any Stock Appreciation Rights shall immediately
be exercisable in full, and all Awards, the payout of which is subject to Performance Measures,
shall vest in full and become immediately payable at such levels as the Committee in its sole
discretion shall determine. In addition, the Committee, acting in its sole discretion without the
consent or approval of any Participant, may effect one or more of the following alternatives, which
alternatives may vary among individual Participants and which may vary among Awards held by any
individual Participant: (i) require the mandatory surrender to the Company by selected Participants
of some or all of the outstanding Options, stock-settled Restricted Stock Units and stock-settled
Stock Appreciation Rights held by such Participants as of a date, before or after such Corporate
Change, specified by the Committee, in which event the Committee shall thereupon cancel such Awards
and the Company shall pay (or cause to be paid) to each such Participant an amount of cash per
share equal to the excess, if any, of the amount calculated in Subparagraph (d) below of the shares
subject to such Awards over the exercise price(s), if any, under such Awards for such shares, or
(ii) provide that the number and class of shares of Common Stock covered by such Awards shall be
adjusted so that such Awards shall thereafter cover securities of the surviving or acquiring
corporation or other property (including, without limitation, cash) as determined by the Committee
in its sole discretion.

     (d) Change of Control Value. For the purposes of clause (i) in Subparagraph (c) above, the
“Change of Control Value” shall equal the amount determined in clause (i), (ii) or (iii) of this
Subparagraph (d), whichever is applicable, as follows: (i) the per share price offered to
stockholders of the Company in any such merger, consolidation, sale of assets or dissolution
transaction, (ii) the price per share offered to stockholders of the Company in any tender offer or
exchange offer whereby a Corporate Change takes place, or (iii) if such Corporate Change occurs
other than pursuant to a tender or exchange offer, the fair market value per share of the shares
into which such Awards being surrendered are exercisable or payable, as determined by the Committee
as of the date determined by the Committee to be the date of cancellation and surrender of such
Awards. In the event that the consideration offered to stockholders of the Company in any
transaction described in this Subparagraph (d) or Subparagraph (c) above consists of anything other
than cash, the Committee shall determine the fair cash equivalent of the portion of the
consideration offered which is other than cash.

     (e) Other Changes in the Common Stock. In the event of changes in the outstanding Common
Stock by reason of recapitalization, reorganization, merger, consolidation, combination, stock
split, stock dividend, spin-off, exchange or other relevant changes in capitalization or
distributions to the holders of Common Stock occurring after the date of the grant of any Award and
not otherwise provided for by this Paragraph XII, which would have the effect of diluting or
enlarging the rights of Participants, such Award and any applicable Award Notice shall be subject
to equitable or proportionate adjustment by the Committee at its sole discretion as to the number
and price of shares of Common Stock or other consideration subject to such Award. In the event of
any such change in the outstanding Common Stock or distribution to the holders of Common Stock, or
upon the occurrence of any other event described in this Paragraph XII, the aggregate number of
shares available under the Plan and the maximum number of shares that may be subject to Awards
granted to any one individual may be appropriately adjusted to the extent, if any, determined by
the Committee, whose determination shall be conclusive. Such proportionate

 Page  13 

 

adjustments will be made for purposes of making sure that to the extent possible, the fair
value of the Awards after the subdivision, consolidation or dividend is equal to the fair value
before the change.

     (f) No Adjustments Unless Otherwise Provided. Except as expressly provided above, the
issuance by the Company of shares of stock of any class or securities convertible into shares of
stock of any class, for cash, property, labor or services, upon direct sale, upon the exercise of
rights or warrants to subscribe thereto, or upon conversion of shares or obligations of the Company
convertible into such shares or other securities, and in any case whether or not for fair value,
shall not affect, and no adjustment by reason thereof shall be made with respect to, the number of
shares of Common Stock subject to Awards theretofore granted or the purchase price per share, if
applicable.

XIII. AMENDMENT AND TERMINATION OF THE PLAN

     The Board in its discretion may terminate the Plan at any time with respect to any shares of
Common Stock for which Awards have not been granted. The Board shall have the right to alter or
amend the Plan or any part thereof from time to time; provided, that no change in the Plan may be
made that would impair the rights of a Participant with respect to any outstanding Award without
the consent of the Participant.

XIV. MISCELLANEOUS

     (a) Stockholder Approval Not Required. It is expressly intended that approval of the
Company’s stockholders not be required as a condition of the effectiveness of the Plan, and the
Plan’s provisions shall be interpreted in a manner consistent with such intent for all purposes.
Specifically, NYSE Listed Company Manual Section 303A.08 generally requires stockholder approval
for stock option plans or other equity compensation arrangements adopted by companies whose
securities are listed on the NYSE, pursuant to which stock awards or stock may be acquired by
officers, directors, employees or consultants of such companies. NYSE Listed Company Manual Section
303A.08 provides an exception to this requirement for issuances of securities to a person not
previously an employee of the issuer, or following a bona fide period of non-employment, as an
inducement material to the individual’s entering into employment with the issuer, provided such
issuances are approved by either the issuer’s independent compensation committee or a majority of
the issuer’s independent directors. Notwithstanding anything to the contrary herein, Awards under
the Plan may only be made to Employees who have not previously been an Employee, or following a
bona fide period of non-employment by the Company or an Affiliate, as an inducement material to the
Employee’s entering into employment with the Company or an Affiliate. Awards under the Plan will be
approved as set forth herein by: (i) the Committee, provided it is comprised solely of two (2) or
more Independent Directors, or (ii) a majority of the Company’s Independent Directors.
Accordingly, pursuant to NYSE Listed Company Manual Section 303A.08, the issuance of Awards and the
shares of Common Stock issuable upon exercise or vesting of such Awards pursuant to this Plan are
not subject to the approval of the Company’s stockholders.

     (b) No Right To An Award. Neither the adoption of the Plan nor any action of the Board or the
Committee, as applicable, shall be deemed to give any individual any right to be granted an Option,
Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, or a Performance Award, or any
other rights hereunder except as may be evidenced by an Award Notice, and then only to the extent
and on the terms and conditions expressly set forth therein.

     (c) Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan for
incentive and deferred compensation purposes, including Section 409A of the Code. The Committee may
authorize the creation of trusts or other arrangements to meet the obligations created under the
Plan to deliver shares of Common Stock or make payments; provided that the Committee first
determines in its

 Page  14 

 

sole discretion that the structure of such trusts or other arrangements shall not cause any
change in the “unfunded” status of the Plan.

     (d) No Employment/Membership Rights Conferred. Nothing contained in the Plan or any Award
shall (i) confer upon any Employee any right to continued employment with the Company or any
Affiliate or (ii) interfere in any way with the right of the Company or any Affiliate to terminate
his or her employment at any time.
Nothing contained in the Plan shall confer upon any Director any right to service or interfere in any way
with the right of the Company to terminate his or her service at any time.

     (e) Compliance with Securities Laws. The Company shall not be obligated to issue any shares
of Common Stock pursuant to an Award granted under the Plan at any time when the shares covered by
such Award have not been registered pursuant to applicable U.S. federal, state or non-U.S.
securities laws, or, in the opinion of legal counsel for the Company, the issuance and sale of such
shares is not covered under an applicable exemption from such registration requirements.

     (f) No Fractional Shares. No fractional shares of Common Stock or cash in lieu of fractional
shares of Common Stock shall be distributed or paid pursuant to an Award. For purposes of the
foregoing, any fractional shares of Common Stock shall be rounded up to the nearest whole share.

     (g) Tax Obligations; Withholding of Shares. Except as otherwise provided under the Plan, no
later than the date as of which an amount first becomes includible in a Participant’s taxable
income for U.S. federal, state, local or non-U.S. income or social insurance tax purposes with
respect to an Award granted under the Plan, the Participant shall pay to the Company or the
Affiliate employing the Participant, or make arrangements satisfactory to the Company or the
Affiliate employing the Participant for the payment of, any such income or social insurance taxes
of any kind required by law to be withheld with respect to such taxable amount. Notwithstanding the
foregoing, the Company or an Affiliate may, in its sole discretion, withhold a sufficient number of
shares of Common Stock that are otherwise issuable to the Participant pursuant to an Award to
satisfy any such income or social insurance taxes of any kind required by law to be withheld, as
may be necessary in the opinion of the Company or the Affiliate to satisfy all obligations for the
payment of such taxes. For purposes of the foregoing, the Committee may establish such rules,
regulations and procedures as it deems necessary or appropriate.

     (h) No Restriction on Corporate Action. Nothing contained in the Plan shall be construed to
prevent the Company or an Affiliate from taking any action that is deemed by the Company or such
Affiliate to be appropriate or in its best interest, regardless of whether such action would have
an adverse effect on the Plan or any Award made under the Plan. No Employee, Participant,
representative of an Employee or Participant, or other person shall have any claim against the
Company or any Affiliate as a result of any such action.

     (i) Restrictions on Transfer. An Award shall not be transferable otherwise than (i) by will
or the laws of descent and distribution, (ii) pursuant to a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act of 1974, as amended,
or the rules thereunder, or (iii) if vested, with the consent of the Committee, in its sole
discretion, provided that any such transfer is permitted under the applicable securities laws.
Notwithstanding the foregoing, Restricted Stock, once vested and free of any restrictions, may be
transferred at will.

     (j) Limitations Period. Any Participant who believes he or she is being denied any benefit or
right under the Plan may file a written claim with the Committee. Any claim must be delivered to
the Committee within forty-five (45) days of the specific event giving rise to the claim. Untimely
claims will not be processed and shall be deemed denied. The Committee, or its designee, will
notify the Participant of its decision in writing as soon as administratively practicable. Claims
not responded to by the Committee in writing within one hundred and twenty (120) days of the date
the written claim is delivered to the Committee shall be deemed denied. The Committee’s decision is
final and conclusive and binding

 Page  15 

 

on all persons. No lawsuit relating to the Plan may be filed before a written claim is filed
with the Committee and is denied or deemed denied and any lawsuit must be filed within one (1) year
of such denial or deemed denial or be forever barred.

     (k) Section 409A of the Code. It is intended that any Awards granted under the Plan satisfy
the requirements of Section 409A of the Code to avoid imposition of applicable taxes thereunder.
To the extent applicable, the Plan and Award Notices shall be interpreted in accordance with
Section 409A of the Code. Notwithstanding anything herein to the contrary, if the Committee
determines that any Plan provision or Award granted under the Plan may be subject to Section 409A
of the Code, the Committee may adopt such amendments to the Plan and the applicable Award Notice or
adopt other policies and procedures (including amendments, policies and procedures with retroactive
effect), or take any other actions that the Committee determines, in its sole discretion, are
necessary or appropriate to (i) 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 (ii) comply with the
requirements of Section 409A of the Code. No such action taken to comply with Section 409A under
this Subparagraph (k) shall be deemed to adversely affect the Participant’s rights to any Award.

     (l) Governing Law. The Plan shall be governed by, and construed in accordance with, the laws
of the State of Delaware, without regard to its conflicts of laws principles.

 Page  16

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