Document:

exv10w8

Exhibit 10.8

EXELIS INC. 1997 LONG-TERM INCENTIVE PLAN

1. ESTABLISHMENT AND PURPOSE

1.1 Establishment of the Plan. Exelis Inc., an Indiana corporation, hereby establishes an incentive
compensation plan to be known as the “Exelis Inc. 1997 Long-Term Incentive Plan” (the “Plan”), as
set forth in this document. The Plan first became effective as of October 31, 2011 (the “Effective
Date”) following the spin-off of Exelis Inc. from ITT Corporation (the “Predecessor Corporation”)
on October 31, 2011. The Predecessor Corporation maintained a similar plan prior to the spin-off
(the “Predecessor Plan”), and the Plan was created to govern the awards under the Predecessor Plan,
as revised to reflect the spin-off from the Predecessor Corporation. The Plan shall remain in
effect until terminated by the Board as provided in Section 9.1 hereof, and Participants shall
receive full credit for their service and participation with the Predecessor Corporation as
provided in Section 5.8 hereof.

1.2 Purposes. The purposes of the Plan are to promote the achievement of long-term objectives of
the Company by tying Key Employees’ long-term incentive opportunities to preestablished goals; to
attract and retain Key Employees of outstanding competence, and to encourage teamwork among them;
and to reward performance based on the successful achievement of the preestablished objectives.
Awards will be made, at the discretion of the Committee, to Key Employees (including officers and
Directors who are also employees) whose responsibilities and decisions directly affect the
performance of any Participating Company. It is intended that, if desired, compensation payable
under the Plan will qualify as “performance-based compensation,” within the meaning of Section
162(m) of the Code and regulations promulgated thereunder.

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

(a) An “Acceleration Event” shall be deemed to have occurred if the conditions set forth in any one
or more of the following paragraphs shall have been satisfied:

(i) a report on Schedule 13D shall be filed with the Securities and Exchange Commission pursuant to
Section 13(d) of the Exchange Act disclosing that any person (within the meaning of Section 13(d)
of the Exchange Act), other than the Company or a Subsidiary or any employee benefit plan sponsored
by the Company or a Subsidiary, is the Beneficial Owner directly or indirectly of twenty percent
(20%) or more of the outstanding Common Stock $1 par value, of the Company (the “Stock”);

(ii) any person (within the meaning of Section 13(d) of the Exchange Act), other than the Company
or a Subsidiary, or any employee benefit plan sponsored by the Company or a Subsidiary, shall
purchase shares pursuant to a tender offer or exchange offer to acquire any Stock of the Company
(or securities convertible into Stock) for cash, securities or any other consideration, provided
that after consummation of the offer, the person in question is the Beneficial Owner, directly or
indirectly, of twenty percent (20%) or more of the outstanding

 

 

Stock of the Company (calculated as provided in paragraph (d) of Rule 13d-3 under the Exchange Act
in the case of rights to acquire Stock);

(iii) the consummation of

(a) any consolidation, business combination or merger involving the Company, other than a
consolidation, business combination or merger involving the Company in which holders of Stock
immediately prior to the consolidation, business combination or merger (x) hold fifty percent (50%)
or more of the combined voting power of the Company (or the corporation resulting from the merger
or consolidation or the parent of such corporation) after the merger and (y) have the same
proportionate ownership of common stock of the Company (or the corporation resulting from the
merger or consolidation or the parent of such corporation), relative to other holders of Stock
immediately prior to the merger, business combination or consolidation, immediately after the
merger as immediately before; or

(b) any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all the assets of the Company;

(iv) there shall have been a change in a majority of the members of the Board within a 12-month
period unless the election or nomination for election by the Company’s stockholders of each new
director during such 12-month period was approved by the vote of two-thirds of the directors then
still in office who (x) were directors at the beginning of such 12-month period or (y) whose
nomination for election or election as directors was recommended or approved by a majority of the
directors who where directors at the beginning of such 12-month period; or

(v) any person (within the meaning of Section 13(d) of the Exchange Act) (other than the Company or
a Subsidiary or any employee benefit plan (or related trust) sponsored by the Company or a
Subsidiary) becomes the Beneficial Owner of twenty percent (20%) or more of the Stock.

(b) “Award” means an award granted to a Key Employee in accordance with the provisions of the Plan
and approved by the Committee.

(c) “Award Agreement” means the written agreement evidencing an Award granted to a Key Employee
under the Plan and approved by the Committee.

(d) “Beneficial Owner” shall have the meaning ascribed to such term in Rule 13d-3 of the general
rules and regulations under the Exchange Act.

(e) “Board of Directors” or “Board” means the Board of Directors of the Company.

(f) “Code” means the Internal Revenue Code of 1986, as now in effect or as hereafter amended. (All
citations to sections of the Code are to such sections as they may from time to time be amended or
renumbered.)

(g) “Committee” means the Compensation and Personnel Committee of the Board or such other committee
as may be designated by the Board to administer the Plan, all of whose

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members shall be “Non-Employee Directors” under the Exchange Act and “Outside Directors” under
Section 162(m) of the Code.

(h) “Company” means Exelis Inc., an Indiana corporation, and its successors and assigns; provided,
however, that for purposes of grants made under the Predecessor Plan, Company shall mean the
Predecessor Corporation as the original grantor.

(i) “Director” means an individual who is a member of the Board.

(j) “Disability” means the complete permanent inability of a Key Employee to perform all of his or
her duties under the terms of his or her employment with any Participating Company, as determined
by the Committee upon the basis of such evidence, including independent medical reports and data,
as the Committee deems appropriate or necessary.

(k) “Effective Date” means the date this Plan becomes effective, as set forth in Section 1.1
herein.

(l) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any
successor act thereto.

(m) “Key Employee” means an employee (including any officer or Director who is also an employee) of
any Participating Company whose responsibilities and decisions, in the judgment of the Committee,
directly affect the performance of the Company and its Subsidiaries.

(n) “Participant” means an employee of a Participating Company who is a Key Employee and who has
received an Award under the Plan.

(o) “Participating Company” means the Company or any Subsidiary or other affiliate of the Company
or any corporation which at the time of award qualifies as a “subsidiary” of the Company under
Section 425(f) of the Code.

(p) “Performance Goal” means one or more Performance Measures expressed as an objective formula to
be used in calculating the amount payable, if any, with respect to a designated Award and shall be
established by the Committee within the first ninety (90) days of the applicable Performance
Period. A Performance Goal may provide for various levels of payout depending upon the degree to
which the Performance Goal has been achieved.

(q) “Performance Measure” means one or more financial or other objectives determined by the
Committee as provided in Section 3.4 herein.

(r) “Performance Period” means the period determined by the Committee, which shall be in excess of
one year, during which the Performance Goal shall be achieved.

(s) “Retirement” means eligibility to receive immediate retirement benefits under a Participating
Company tax-qualified defined benefit pension plan.

(t) “Subsidiary” means any corporation in which the Company owns directly or indirectly through its
Subsidiaries at least a majority of the total combined voting power of all classes of

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stock, or any other entity (including, but not limited to, partnerships and joint ventures) in
which the Company or its Subsidiaries own at least a majority of the combined equity thereof.

3. ADMINISTRATION

3.1 The Committee. The Plan shall be administered by the Committee, the members of which shall
serve at the pleasure of the Board.

3.2 Authority of the Committee. Subject to the provisions herein, the Committee shall have full
power to select the Key Employees to whom Awards are granted; to determine the size and frequency
of Awards (which need not be the same for each Participant); to determine the terms and conditions
of each Award; to establish Performance Measures, Performance Goals and Performance Periods (which
need not be the same for each Participant); to set forth guidelines governing the amounts of
Awards; to revise the amounts of Awards and/or the Performance Measures and/or Performance Goals
during a Performance Period to the extent necessary to preserve the intent thereof, and to the
extent necessary to prevent dilution of Participants’ rights; to construe and interpret the Plan
and any agreement or instrument entered into under the Plan; to establish, amend, rescind, or waive
rules and regulations for the Plan’s administration; and, subject to the provisions of Article 9
herein, to amend, modify, and/or terminate the Plan. Further, the Committee shall have the full
power to make all other determinations which may be necessary or advisable for the administration
of the Plan, to the extent consistent with the provisions of the Plan.

As permitted by law, the Committee may delegate its authority and responsibilities; provided,
however, that the Committee may not delegate certain of its responsibilities hereunder where such
delegation may jeopardize compliance with Section 16 of the Exchange Act or Section 162(m) of the
Code, and all rules and regulations thereunder.

3.3 Decisions Binding. All determinations and decisions made by the Committee pursuant to the
provisions of the Plan shall be final, conclusive, and binding on all persons, including the
Company, its shareholders, employees, Participants, and their estates and beneficiaries.

3.4 Performance Goals and Measures. Performance Goals shall be based on one or more Performance
Measures as established by the Committee, which may include financial measures with respect to the
Company and its Subsidiaries or with respect to a Participating Company. Performance Measures may
include factors such as the attainment of certain target levels of or changes in (i) economic value
added; (ii) after-tax profits; (iii) operational cash flow; (iv) debt or other similar financial
obligations; (v) earnings; (vi) revenues; (vii) net income; (viii) return on capital; (ix)
shareholders’ equity; (x) return on shareholders’ equity; and (xi) total shareholder return
(measured as a change in the market price of the common stock of the Company plus dividend yield)
relative to one or more indices such as the S&P 500 or the S&P Industrials. In addition to these
Performance Measures, Awards that are not intended to qualify as performance-based compensation for
purposes of Section 162(m) of the Code may be based on such additional or other criteria as the
Committee may determine.

4. ELIGIBILITY AND PARTICIPATION

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4.1 Eligibility and Participation. Eligibility shall be limited to Key Employees. Participation
shall be at the discretion of the Committee.

5. AWARDS

5.1 Award Timing and Frequency. The Committee shall have complete discretion in determining the
number and frequency of Awards to each Participant. Participation in the Plan shall begin on the
first day of each Performance Period. However, the Committee, at its sole discretion, may grant an
Award to a Key Employee during any Performance Period. In such cases, the Participant’s degree of
participation for such Performance Period may be pro rated, based on whatever method the Committee
shall determine.

5.2 Award Value. Each Award shall have an initial value that is established by the Committee at the
time of Award. The maximum payment that may be made with respect to Awards to any Participant in
any one calendar year shall be $10,000,000; provided, however, that this limitation shall not apply
with respect to any Award that is paid in a calendar year prior to the year it would ordinarily be
paid because of an Acceleration Event or other transaction or event that provides for accelerated
payment of Awards.

5.3 Achieving Award Value. The Committee shall establish Performance Goals to be achieved during
the Performance Period and the various percentage payouts, if any, for each Award which are
dependent upon the degree to which the Performance Goals have been achieved, all as shall be
referred to in the individual Award Agreement.

5.4 Certification of Performance Targets. After the end of each Performance Period, and prior to
the payment for such Performance Period, the Committee must certify in writing the degree to which
the Performance Goals and Performance Measures for the Performance Period were achieved. The
Committee shall calculate the amount of each Participant’s Award for such Performance Period based
upon the Performance Measures and Performance Goals for each Participant. In establishing
Performance Targets and Performance Measures and in calculating the degree of achievement thereof,
the Committee may ignore extraordinary items, property transactions, changes in accounting
standards and losses or gains arising from discontinued operations. The Committee shall have no
authority or discretion to increase the amount of any Participant’s Award as so determined, but it
may reduce the amount or totally eliminate any Award if it determines in its absolute and sole
discretion that such action is appropriate in order to reflect the Participant’s performance or
unanticipated factors during the Performance Period.

5.5 Form and Timing of Payment of Awards. Payment with respect to earned Awards shall be made as
soon as practicable following the close of the applicable Performance Period. Payment shall be made
solely in the form of cash.

5.6 Funding of Awards. Awards need not be funded during the Performance Period. Any obligation of
the Company to make payments with respect to Awards shall be a general obligation of the Company
with Participants to whom payment of an Award may have been earned and due being general creditors
of the Company.

5.7 Award Agreements. Each Award shall be evidenced by an Award Agreement, which shall be approved
by the Committee, signed by an officer of the Company and by the Participant, and

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contain or refer to the terms and conditions that apply to the Award, which shall include, but
shall not be limited to, the amount of the Award, the Performance Measures, the Performance Goals,
the levels of payout dependent upon the degree to which the Performance Goals have been achieved,
and the length of the Performance Period. The terms and conditions need not be the same for each
Participant, or for each Performance Period.

5.8 Prior Participation. Notwithstanding any other provision of the Plan to the contrary, all
prior service and participation by a Participant with the Predecessor Corporation shall be credited
in full towards a Participant’s service and participation with the Company.

6. TERMINATION OF EMPLOYMENT

6.1 Termination of Employment Due to Death, Disability, or Retirement. In the event a Participant’s
employment is terminated by reason of death, Disability or Retirement, the Participant may be
entitled to a pro rata payment with respect to Awards in accordance with such rules and regulations
as the Committee shall adopt.

6.2 Termination for Reasons Other than Death, Disability, or Retirement. In the event a
Participant’s employment is terminated for reasons other than death, Disability, or Retirement, and
other than that brought about by an Acceleration Event, all rights to any Awards shall be
forfeited, unless the Committee determines otherwise.

7. ACCELERATION EVENT

Upon the occurrence of an Acceleration Event, the Performance Goals attainable under all
outstanding Awards shall be deemed to have been fully earned at one hundred percent achievement
level and shall be paid out in cash upon the effective date of the Acceleration Event.

Subject to Article 9 herein, prior to the effective date of an Acceleration Event, the Committee
shall have the authority to make any modifications to outstanding Awards as it determines to be
necessary to provide Participants with an appropriate payout with respect to their Awards.

8. BENEFICIARY DESIGNATION

8.1 Designation of Beneficiary. Each Participant may file with the Participating Company a written
designation of one or more persons as the beneficiary who shall be entitled to receive payout, if
any, with respect to the Award upon his or her death. The Participant may from time to time revoke
or change his or her beneficiary designation without the consent of any prior beneficiary by filing
a new designation with the Participating Company. The last such designation received by the
Participating Company shall be controlling; provided however, that no designation, or change or
revocation thereof, shall be effective unless received by the Participating Company prior to the
Participant’s death, and in no event shall it be effective as of a date prior to such receipt.

8.2 Death of Beneficiary. In the event that all the beneficiaries named by a Participant pursuant
to Section 8.1 herein predecease the Participant, any amounts that would have been paid to the
Participant or the Participant’s beneficiaries under the Plan shall be paid to the Participant’s
estate.

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9. AMENDMENT, MODIFICATION, AND TERMINATION

9.1 Amendment, Modification, and Termination. The Board may terminate, amend, or modify the Plan.

9.2 Awards Previously Granted. No termination, amendment, or modification of the Plan shall in any
manner adversely affect any outstanding Award, without the written consent of the Participant
holding such Award.

10. MISCELLANEOUS PROVISIONS

10.1 Employment. Nothing in the Plan shall interfere with or limit in any way the right of the
Company to terminate any Participant’s employment at any time, nor confer upon any Participant any
right to continue in the employ of the Company or any of its Subsidiaries.

10.2 Nontransferability. No Award may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution.

10.3 Rights to Common Stock. Awards do not give Participants any right whatsoever with respect to
shares of the Company’s common stock.

10.4 Costs of the Plan. All costs of the Plan including, but not limited to, payout of Awards and
administrative expenses, shall be incurred as general obligations of the Company.

10.5 Tax Withholding. The Company shall have the right to require Participants to remit to the
Company an amount sufficient to satisfy applicable Federal, state, foreign and local withholding
tax requirements, or to deduct from all payments under the Plan amounts sufficient to satisfy all
such requirements.

10.6 Successors. All obligations of the Company under the Plan with respect to payout of Awards
shall be binding on any successor to the Company, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation, or other acquisition of all or
substantially all of the business or assets of the Company.

10.7 Indemnification. Each person who is or shall have been a member of the Committee or the Board
shall be indemnified and held harmless by the Company against and from any loss, cost, liability,
or expense that may be imposed upon or reasonably incurred by him or her in connection with or
resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which
he or she may be involved by reason of any action taken or failure to act under the Plan and
against and from any and all amounts paid by him or her in settlement thereof, with the Company’s
approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or
proceeding against him or her, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and defend it on his
or her own behalf. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company’s Articles of
Incorporation, By-laws, insurance or other agreement or otherwise.

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10.8 Notice. Any notice or filing required or permitted to be given to the Company under the Plan
shall be sufficient if in writing and hand delivered, or sent by registered or certified mail to
the Secretary of the Company. Notice to the Secretary of the Company, if mailed, shall be addressed
to the principal executive offices of the Company. Notice mailed to a Participant shall be at such
address as is given in the records of the Company. Notices shall be deemed given as of the date of
delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for
registration or certification.

10.9 Severability. In the event that any provision of the Plan shall be held illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the
Plan shall be construed and enforced as if the illegal or invalid provision had not been included.

10.10 Requirements of Law. The granting and payout of Awards shall be subject to all applicable
laws, rules, and regulations and to such approvals by any governmental agencies or national
securities exchanges as may be required.

10.11 Governing Law. To the extent not preempted by Federal law, the Plan, and all agreements
hereunder, shall be construed in accordance with and governed by the laws of the State of New York.

8exv10w9

Exhibit 10.9

EXELIS INC. 1997 ANNUAL INCENTIVE PLAN

1. PURPOSE

     The purpose of this Exelis Inc. 1997 Annual Incentive Plan is to provide incentive
compensation in the form of a bonus to eligible executives of Exelis Inc. (the “Company”) for
achieving specific pre-established performance objectives and to continue to motivate participating
executives to achieve their business goals, while tying a portion of their compensation to measures
affecting shareholder value; provided, however, that for purposes of grants made under the
Predecessor Plan, the term “Company” shall include the ITT Corporation (the “Predecessor
Corporation”) as the original grantor. The Incentive Plan seeks to enable the Company to continue
to be competitive in its ability to attract and retain executives of the highest caliber.

     This Exelis Inc. 1997 Annual Incentive Plan (the “Incentive Plan”) first became effective as
of October 31, 2011 following the spin-off of Exelis Inc. from the Predecessor Corporation on
October 31, 2011; provided, however, that for purposes of grants made under the Predecessor Plan,
the term “Incentive Plan” shall include shall include the Predecessor Plan as it existed at the
time of the grant. The Predecessor Corporation maintained a similar plan prior to the spin-off (the
“Predecessor Plan”), and the Incentive Plan was created to govern the awards under the Predecessor
Plan, as revised to reflect the spin-off from the Predecessor Corporation. The Plan shall remain
in effect as provided in Article IX hereof, and participants shall receive full credit for their
service and participation with the Predecessor Corporation as provided in Article IX hereof.

2. PLAN ADMINISTRATION

     The Compensation and Personnel Committee (the “Committee”) of the Board of Directors (the
“Board”) of the company shall have full power and authority to administer, construe and interpret
the provisions of the Incentive Plan and to adopt and amend administrative rules and regulations,
agreements, guidelines and instruments for the administration of the Incentive Plan and for the
conduct of its business as the Committee considers appropriate.

     The Committee shall have full power, to the extent permitted by law, to delegate its authority
to any officer or employee of the Company to administer and interpret the procedural aspects of the
Incentive Plan, subject to the terms of the Incentive Plan, including adopting and enforcing rules
to decide procedural and administrative issues.

     The Committee may rely on opinions, reports or statements of officers or employees of the
Company and of counsel to the Company (inside or retained counsel), public accountants and other
professional or expert persons.

     The Board reserves the right to amend or terminate the Incentive Plan in whole or in part at
any time; provided, however, that no amendments shall adversely affect or impair the rights of any
participant previously accrued thereby, without the written consent of the participant.

 

 

     No member of the Committee shall be liable for any action taken or omitted to be taken or for
any determination made by him or her in good faith with respect to the Incentive Plan, and the
Company shall indemnify and hold harmless each member of the Committee against any cost or expense
(including counsel fees) or liability (including any sum paid in settlement of a claim with the
approval of the Committee) arising out of any act or omission in connection with the administration
or interpretation of the Incentive Plan, unless arising out of such person’s own fraud or bad
faith.

3. ELIGIBLE EXECUTIVES

     Executives of the Company or its affiliates in salary grade 19 and above shall be eligible to
participate in the Incentive plan; provided, however, that for purposes of grants made under the
Predecessor Plan, the term “Company” shall include ITT Corporation as the original grantor.

4. PLAN YEAR, PERFORMANCE PERIODS, PERFORMANCE MEASURES AND PERFORMANCE TARGETS

     Each fiscal year of the Incentive Plan (the “Plan Year”) shall begin on January 1 and end on
December 31. The performance period (the “Performance Period”) with respect to which bonuses may be
payable under the Incentive Plan shall be the Plan Year unless the Committee designates one or more
different Performance Periods.

     The Committee shall establish the performance measures (the “Performance Measures”) to be used
which may include, but shall not be limited to, net operating profit after tax, economic value
added, earnings per share, return on equity, return on total capital, or such other measures as
determined by the Committee. In addition, Performance Measures may be based upon other objectives
such as negotiating transactions or sales and developing long-term goals. The Performance Measures
shall be objectively determinable and, to the extent that they are expressed in standard accounting
terms, shall be according to generally accepted accounting principles as in existence on the date
on which the applicable Performance Period is established and without regard to any changes in such
principles after such date. For purposes of the Plan, economic value added shall mean the amount of
economic profit created in excess of the amount required to satisfy the obligations to and normal
expectations of the Company’s lenders and investors.

     The Committee shall establish the performance targets (the “Performance Targets”) to be
achieved which shall be based on one or more Performance Measures relating to the Company as a
whole or to the specific businesses of the Company, subsidiaries, operating companies, or operating
units as determined by the Committee and shall be expressed as an objective formula to be used in
calculating the amount of bonus award each executive shall be eligible to receive. There may be a
sliding scale of payment dependent upon the percentage levels of achievement of Performance
Targets.

     The Performance Measures and Performance Targets, which may be different with respect to each
executive and each Performance Period, must be set forth in writing by the Committee within the
first ninety (90) days of the applicable Performance Period.

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5. CERTIFICATION OF PERFORMANCE TARGETS AND CALCULATION OF BONUS AWARDS

     After the end of each Performance Period, and prior to the payment for such Performance
Period, the Committee must certify in writing the degree to which the Performance Targets for the
Performance Period were achieved, including the specific target objective or objectives and the
satisfaction of any other material terms of the bonus award. The Committee shall calculate the
amount of each executive’s bonus for such Performance Period based upon the Performance Measures
and Performance Targets for each executive. In establishing Performance Targets and Performance
Measures and in calculating the degree of achievement thereof, the Committee may ignore
extraordinary items, property transactions, changes in accounting standards and losses or gains
arising from discontinued operations. The Committee shall have authority and discretion to increase
or decrease the amount of any executive’s bonus as so determined, and may totally eliminate any
bonus award if it determines in its absolute and sole discretion that such action is appropriate in
order to reflect the executive’s performance or unanticipated factors during the Performance
Period.

6. PAYMENT OF AWARDS

     Approved bonus awards shall be payable by the Company in cash to each executive, or to the
executive’s estate in the event of the executive’s death, as soon as practicable after the end of
each Performance Period. No bonuses may be paid under the Incentive Plan until the Committee has
certified in writing that the relevant Performance Targets were achieved.

     If an executive is not an employee on the last day of the Performance Period, the Committee
shall have sole discretion to determine what portion, if any, the executive shall be entitled to
receive with respect to any award for the Performance Period. The Committee shall have the
authority to adopt appropriate rules and regulations for the administration of the Incentive Plan
in such termination cases.

     The Company retains the right to deduct from any bonus awards paid under the Incentive Plan
any Federal, state, local or foreign taxes required by law to be withheld with respect to such
payment.

7. OTHER TERMS AND CONDITIONS

     Any award made under this Incentive Plan shall be subject to the discretion of the Committee.
No person shall have any legal claim to be granted an award under the Incentive Plan and the
Committee shall have no obligation to treat executives uniformly. Except as may be otherwise
required by law, bonus awards under the Incentive Plan shall not be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment,
execution, or levy of any kind, either voluntary or involuntary. Bonuses awarded under the
Incentive Plan shall be payable from the general assets of the Company, and no executive shall have
any claim with respect to any specific assets of the Company.

     Nothing contained in the Incentive Plan shall give any executive the right to continue in the
employment of the Company or affect the right of the Company to terminate an executive.

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8. ACCELERATION EVENT.

     An “Acceleration Event” shall occur if (i) a report on Schedule 13D shall be filed with the
Securities and Exchange Commission pursuant to Section 13(d) of the Securities Exchange Act of 1934
(the “Act”) disclosing that any person (within the meaning of Section 13(d) of the Act), other than
the Company or a subsidiary of the Company or any employee benefit plan sponsored by the Company or
a subsidiary of the Company, is the beneficial owner directly or indirectly of twenty percent (20%)
or more of the outstanding Common Stock $1 par value, of the Company (the “Stock”): (ii) any person
(within the meaning of Section 13(d) of the Act), other than the Company or a subsidiary of the
Company, or any employee benefit plan sponsored by the Company or a subsidiary of the Company,
shall purchase shares pursuant to a tender offer or exchange offer to acquire any Stock of the
Company (or securities convertible into Stock) for cash, securities or any other consideration,
provided that after consummation of the offer, the person in question is the beneficial owner (as
such term is defined in Rule 13d-3 under the Act), directly or indirectly, of twenty percent (20%)
or more of the outstanding Stock of the Company (calculated as provided in paragraph (d) of Rule
13d-3 under the Act in the case of rights to acquire Stock); (iii) the consummation of (A) any
consolidation, business combination or merger involving the Company, other than a consolidation,
business combination or merger involving the Company in which holders of Stock immediately prior to
the consolidation, business combination or merger (x) hold fifty percent (50%) or more of the
combined voting power of the Company (or the corporation resulting from the merger or consolidation
or the parent of such corporation) after the merger and (y) have the same proportionate ownership
of common stock of the Company (or the corporation resulting from the merger or consolidation or
the parent of such corporation), relative to other holders of Stock immediately prior to the
merger, business combination or consolidation, immediately after the merger as immediately before,
or (B) any sale, lease, exchange or other transfer (in one transaction or a series of related
transactions) of all or substantially all the assets of the Company, (iv) there shall have been a
change in a majority of the members of the Board of Directors of the Company within a 12-month
period unless the election or nomination for election by the Company’s stockholders of each new
director during such 12-month period was approved by the vote of two-thirds of the directors then
still in office who (x) were directors at the beginning of such 12-month period or (y) whose
nomination for election or election as directors was recommended or approved by a majority of the
directors who were directors at the beginning of such 12-month period or (v) any person (within the
meaning of Section 13(d) of the Act) (other than the Company or any subsidiary of the Company or
any employee benefit plan (or related trust) sponsored by the Company or a subsidiary of the
Company) becomes the beneficial owner (as such term is defined in Rule 13d-3 under the Act) of
twenty percent (20%) or more of the Stock.

     Upon the occurrence of such Acceleration Event, the Performance Measures for each Performance
Period with respect to which bonuses may be payable under the Incentive Plan shall be deemed to be
achieved at the greater of (i) the Performance Target established for such Performance Measures or
(ii) the Company’s actual achievement of such Performance Measures as of the Acceleration Event.
Payment of the bonuses, for the full year, will be made to each
Participating Executive, in cash, within five (5) business days following such Acceleration
Event.

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9. MISCELLANEOUS.

     The Incentive Plan shall be effective October 31, 2011. The Plan shall remain in effect
unless/until terminated by the Board; provided, however, that if an Acceleration Event has occurred
no amendment or termination shall impair the rights of any executive with respect to any prior
award.

     This Incentive Plan shall be construed and governed in accordance with the laws of the State
of New York.

     Notwithstanding any other provision of the Incentive Plan to the contrary, all prior service
and participation by a participant with the Predecessor Corporation shall be credited in full
towards a participant’s service and participation with the Company.

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