Document:

Oxford Health Plans, Inc. Deferred Compensation Plan

 Exhibit 4(a) 
  
 Oxford Health Plans, Inc. 
  
 Deferred Compensation Plan 
  
 Effective January 1, 2004 

 TABLE OF CONTENTS 
  

	 	  	 	  	Page

	 Purpose
	  	1
			
	 ARTICLE 1
	  	 Definitions
	  	1
			
	 ARTICLE 2
	  	 Selection/Enrollment/Eligibility
	  	7
			
	 2.1
	  	 Eligibility
	  	7
	 2.2
	  	 Enrollment Requirements
	  	7
	 2.3
	  	 Commencement of Participation
	  	7
	 2.4
	  	 Termination of Participation and/or Deferrals
	  	7
	 2.5
	  	 Insider Trading Policy
	  	8
			
	 ARTICLE 3
	  	 Deferral Commitments/Crediting/Taxes
	  	8
			
	 3.1
	  	 Minimum Deferral
	  	8
	 3.2
	  	 Maximum Deferral
	  	9
	 3.3
	  	 Election to Defer/Effect of Election Form
	  	9
	 3.4
	  	 Withholding of Annual Deferral Amounts
	  	10
	 3.5
	  	 Vesting
	  	10
	 3.6
	  	 Crediting/Debiting of Account Balances
	  	11
	 3.7
	  	 Payroll Reductions and Taxes
	  	15
	 3.8
	  	 Distributions
	  	15
			
	 ARTICLE 4
	  	 Short-Term Payout/Unforeseeable Financial Emergencies
	  	15
			
	 4.1
	  	 Short-Term Payout
	  	15
	 4.2
	  	 Other Benefits Take Precedence Over Short-Term Payout
	  	16
	 4.3
	  	 Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies
	  	16
			
	 ARTICLE 5
	  	 Termination Benefit
	  	17
			
	 5.1
	  	 Termination Benefit
	  	17
	 5.2
	  	 Payment of Termination Benefit
	  	17
	 5.3
	  	 Death Prior to Completion of Termination Benefit
	  	18
			
	 ARTICLE 6
	  	 Change in Control Benefit
	  	18
			
	 6.1
	  	 Change in Control Benefit
	  	18
			
	 ARTICLE 7
	  	 Disability Waiver and Benefit
	  	19
			
	 7.1
	  	 Disability Waiver
	  	19
	 7.2
	  	 Continued Eligibility/Disability Benefit
	  	19

  

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	 ARTICLE 8
	  	 Beneficiary Designation
	  	19
			
	 8.1
	  	 Beneficiary
	  	19
	 8.2
	  	 Beneficiary Designation/Change
	  	20
	 8.3
	  	 Acknowledgment
	  	20
	 8.4
	  	 No Beneficiary Designation
	  	20
	 8.5
	  	 Doubt as to Beneficiary
	  	20
	 8.6
	  	 Discharge of Obligations
	  	20
			
	 ARTICLE 9
	  	 Leave of Absence
	  	21
			
	 9.1
	  	 Paid Leave of Absence
	  	21
	 9.2
	  	 Unpaid Leave of Absence
	  	21
			
	 ARTICLE 10
	  	 Termination/Amendment/Modification
	  	21
			
	 10.1
	  	 Termination
	  	21
	 10.2
	  	 Amendment
	  	22
	 10.3
	  	 Plan Agreement
	  	22
	 10.4
	  	 Effect of Payment
	  	22
	 10.5
	  	 Amendment to Ensure Proper Characterization of the Plan
	  	22
	 10.6
	  	 Changes in Law Affecting Taxability
	  	23
			
	 ARTICLE 11
	  	 Administration
	  	23
			
	 11.1
	  	 Committee Duties
	  	23
	 11.2
	  	 Agents
	  	24
	 11.3
	  	 Binding Effect of Decisions
	  	24
	 11.4
	  	 Indemnity of Committee
	  	24
	 11.5
	  	 Company Information
	  	24
			
	 ARTICLE 12
	  	 Other Benefits and Agreements
	  	24
			
	 12.1
	  	 Coordination with Other Benefits
	  	24
			
	 ARTICLE 13
	  	 Claims Procedures
	  	25
			
	 13.1
	  	 Scope of Claims Procedures
	  	25
	 13.2
	  	 Initial Claim
	  	25
	 13.3
	  	 Review Procedures
	  	27
	 13.4
	  	 Calculation of Time Periods
	  	29
	 13.5
	  	 Legal Action
	  	29
			
	 ARTICLE 14
	  	 Miscellaneous
	  	29

  

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	 14.1
	  	 Status of Plan
	  	29
	 14.2
	  	 Unsecured General Creditor
	  	29
	 14.3
	  	 Company’s Liability
	  	29
	 14.4
	  	 Nonassignability
	  	29
	 14.5
	  	 Not a Contract of Employment; No Guarantee of Payment
	  	30
	 14.6
	  	 Furnishing Information
	  	30
	 14.7
	  	 Terms
	  	30
	 14.8
	  	 Captions
	  	30
	 14.9
	  	 Governing Law
	  	30
	 14.10
	  	 Notice
	  	31
	 14.11
	  	 Successors
	  	31
	 14.12
	  	 Spouse’s Interest
	  	31
	 14.13
	  	 Validity
	  	31
	 14.14
	  	 Incompetent
	  	31
	 14.15
	  	 Court Order
	  	31
	 14.16
	  	 Payment in the Event of Taxation
	  	32
	 14.17
	  	 Insurance
	  	32
	 14.18
	  	 Government and Other Regulations
	  	32
		
	 SCHEDULE A
	  	33

  

 iii 

 OXFORD HEALTH PLANS, INC. DEFERRED COMPENSATION PLAN 
  
 Effective January 1, 2004 
  
 Purpose 
  
 The purpose of this Plan is to enable a select group of management or highly
compensated employees and members of the board of directors of Oxford Health Plans, Inc. (the “Company”) to defer compensation. This Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA. 
  
 ARTICLE 1 
 Definitions 
  
 For purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings: 
  

	1.1	“Account Balance” shall mean, with respect to a Participant, a credit on the records of the Company equal to (i) the sum of all of a Participant’s Annual Deferral
Amounts, plus (ii) amounts credited or debited in accordance with all the applicable crediting provisions of this Plan that relate to the Participant’s Account Balance, less (iii) all distributions made to the Participant or his or her
Beneficiary pursuant to this Plan that relate to his or her Account Balance. The Account Balance, and each other specified account balance, shall be a bookkeeping entry only and shall be utilized solely as a device for the measurement and
determination of the amounts to be paid to a Participant, or his or her designated Beneficiary, pursuant to this Plan. 

  

	1.2	“Annual Base Salary” shall mean the annual cash compensation relating to services performed during any calendar year, whether or not paid in such calendar year or included
on the Federal Income Tax Form W-2 for such calendar year, excluding Incentive Payments, overtime, fringe benefits, stock options, restricted stock awards, relocation expenses, non-monetary awards and other fees, automobile and other allowances paid
to a Participant for employment services rendered (whether or not such allowances are included in the Employee’s gross income). Annual Base Salary shall be calculated without regard to any reductions for compensation voluntarily deferred or
contributed by the Participant pursuant to any qualified or non-qualified plans of the Company (and therefore shall be calculated to include amounts not otherwise included in the Participant’s gross income under Code Sections 125, 402(e)(3) or
402(h) pursuant to plans established by the Company). 

  

	1.3	 “Annual Deferral Amount” shall mean that portion of a Participant’s Annual Base Salary and/or Incentive Payments, or Directors Fees that a
Participant elects to have, and is, 

  

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deferred and credited to the Participant’s Account Balance in accordance with Article 3, for the Plan Year of reference. In the event of a
Participant’s Termination of Employment prior to the end of a Plan Year, such year’s Annual Deferral Amount shall be the actual amount withheld prior to such event. 

  

	1.4	“Beneficiary” shall mean one or more persons, trusts, estates or other entities, designated in accordance with Article 8, that are entitled to receive benefits under this
Plan upon the death of a Participant. 

  

	1.5	“Beneficiary Designation Form” shall mean the form established from time to time by the Committee that a Participant completes, signs and returns to the Committee to
designate one or more Beneficiaries. 

  

	1.6	“Board” shall mean the board of directors of the Company or its Compensation Committee. 

  

	1.7	“Bonus Deferrals” shall mean that portion of the compensation paid to a Participant as an annual, sales or other bonus that the Participant elects to have, and is,
deferred in accordance with Article 3, for the Plan Year of reference, provided, however, deferrals of bonuses other than annual, sales or LTIP Payouts shall require Committee consent. 

  

	1.8	“Change in Control” shall have the meaning set forth in the Company’s 2002 Equity Incentive Compensation Plan, as amended from time to time (or its successor).

  

	1.9	“Claimant” shall have the meaning set forth in Section 13.2. 

  

	1.10	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 

  

	1.11	“Committee” or “Plan Committee” shall mean the Company’s Retirement Committee; provided that, with respect to any determination made under the Plan
pertaining to an “officer”, “director” or “ten percent beneficial owner” of the Company, within the meaning of Section 16 of the Securities Exchange Act of 1934, “Committee” or “Plan Committee” shall
mean the Company’s Compensation Committee. 

  

	1.12	“Common Stock” shall mean the common stock of the Company, $0.01 par value or, in the event that the outstanding shares of common stock are later changed into or exchanged
for a different class of stock or securities of the Company or another corporation, that other stock or security. 

  

	1.13	“Company” shall mean Oxford Health Plans, Inc., and any successor to all or substantially all of the Company’s assets or business. 

  

 2 

	1.14	“Deduction Limitation” shall mean the following described limitation on a benefit that may otherwise be payable pursuant to the provisions of this Plan. Except as
otherwise provided, this limitation shall be applied to all payments that are “subject to the Deduction Limitation” under this Plan. If the Committee determines in good faith that there is a reasonable likelihood that any compensation paid
to a Participant for a taxable year of the Company would not be deductible by the Company solely by reason of the limitation under Code Section 162(m), then to the extent deemed necessary by the Committee to ensure that the entire amount of any
payment to the Participant pursuant to this Plan is deductible, the Committee may cause the Company to defer all or any portion of a payment under this Plan. Any amounts deferred pursuant to this limitation shall continue to be credited or debited
with additional amounts in accordance with Section 3.6 below, even if such amount is being paid out in installments. The amounts so deferred and amounts credited or debited thereon shall be paid to the Participant or his or her Beneficiary (in the
event of the Participant’s death) at the earliest possible date, as determined by the Committee in good faith, on which the deductibility of compensation paid or payable to the Participant for the taxable year of the Company during which the
payment is made will not be limited by Code Section 162(m). 

  

	1.15	“Director” shall mean a non-Employee member of the Company’s Board. 

  

	1.16	“Directors Fees” shall mean any cash retainer and meeting fee paid to a Director for each regular or special meeting and for any committee meetings attended in person, by
teleconference or other similar means. 

  

	1.17	“Disability” shall mean a period of disability during which a Participant qualifies for permanent disability benefits under the Company’s long-term disability plan,
or, if a Participant does not participate in such a plan, a period of disability during which the Participant would have qualified for permanent disability benefits under such a plan had the Participant been a participant of said plan, as determined
in the sole discretion of the Committee. If the Company does not sponsor such a plan, or discontinues to sponsor such a plan, Disability shall be determined by the Committee in its sole discretion. 

  

	1.18	“Effective Date” shall mean the effective date of the Plan, which is January 1, 2004. 

  

	1.19	“Election Form” shall mean the form or forms established from time to time by the Committee that a Participant completes, signs and returns to the Committee to make an
election under the Plan. 

  

	1.20	“Employee” shall mean an individual who is an employee of the Company or subsidiary of the Company and whose position is designated as Vice President or above (excluding
regional vice presidents and similar positions). 

  

 3 

	1.21	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time. 

  

	1.22	“Guideline LTIP Deferral” shall mean that portion of a Participant’s LTIP Payout that the Participant elects to have, and is, deferred for the Plan Year of reference
in accordance with Article 3, and in accordance with the provisions of the Company’s stock ownership guidelines, as in effect from time to time, that address the election by certain senior officers to defer a percentage of his or her after-tax
LTIP Payout (i.e., fifteen percent (15%), twenty five percent (25%) or fifty percent (50%), depending on the office that the executive holds) towards meeting his or her expected Company stock ownership level. (Solely with respect to an LTIP Payout
relating to the 2003-2004 performance period under the LTIP, the portion of such LTIP Payout that the Participant may elect to defer as a “Guideline LTIP Deferral” shall be his or her applicable percentage (i.e., fifteen percent (15%),
twenty five percent (25%) or fifty percent (50%)) of the after-tax amount of the excess of the Participant’s long-term incentive award determined under the two (2) year performance period under the LTIP (i.e., 2003-2004) over the
Participant’s long-term incentive award determined under the three (3) year performance period ending in 2004. 

  

	1.23	“Incentive Payment” shall mean any compensation paid to a Participant as commissions, annual, sales or other bonus, LTIP Payout or RSU Payout relating to services
performed during any calendar year, whether or not paid in such calendar year or included on the Federal Income Tax Form W-2 for such calendar year. These Incentive Payment items, collectively, are referred to herein as the “Incentive
Payments”. 

  

	1.24	“Insider Trading Policy” shall mean the Company’s Policy Statement on Non-Public Information and Policy Statement on Covered Manager Transactions in Oxford Securities
as in effect from time to time. 

  

	1.25	“LTIP” shall mean the Company’s Amended and Restated 2001 Management Incentive Compensation Plan for Covered Employees (as defined in Code Section 162(m)) and its
Amended and Restated 2001 Management Incentive Compensation Plan for non-Covered Employees. 

  

	1.26	“LTIP Payout” shall mean any long-term incentive award paid to a Participant under the LTIP relating to services performed during any performance period, whether paid or
not paid during such performance period or included on the Federal Income Tax Form W-2 during such performance period. 

  

	1.27	 “Participant” shall mean any Employee and any Director (i) who is selected by the Committee to participate in the Plan, (ii) who elects to participate in
the Plan, (iii) who signs a Plan Agreement, an Election Form(s) and a Beneficiary Designation Form, (iv) whose signed Plan Agreement, Election Form(s) and Beneficiary Designation Form are accepted by the 

  

 4 

	 	 
Committee, (v) who commences participation in the Plan, and (vi) whose Plan Agreement has not terminated. Except as expressly provided herein, a spouse or
former spouse of a Participant shall not be treated as a Participant in the Plan or have an Account Balance under the Plan. 

  

	1.28	“Plan” shall mean this Deferred Compensation Plan, as evidenced by this instrument and by each Plan Agreement, as they may be amended from time to time.

  

	1.29	“Plan Agreement” shall mean a written agreement, as may be amended from time to time, executed by a Participant and the Company that shall provide for the entire benefit
to which such Participant is entitled under the Plan; should there be more than one Plan Agreement, the Plan Agreement bearing the latest date of acceptance by the Company shall supersede all previous Plan Agreements in their entirety and shall
govern such entitlement. The terms of any Plan Agreement may be different for any Participant, and any Plan Agreement may provide additional benefits not set forth in the Plan or limit the benefits otherwise provided under the Plan; provided,
however, that any such additional benefits or benefit limitations must be agreed to by both the Company and the Participant. 

  

	1.30	“Plan Year” shall mean a period beginning on January 1 of each calendar year and continuing through December 31 of such calendar year during which this Plan is in effect.

  

	1.31	“RSU Payout” shall mean the vesting of any restricted stock units or other similar equity-based awards awarded to a Participant under the Company’s 2002 Equity
Incentive Compensation Plan (including any successor plan or other plan pursuant to which the Company can award restricted stock units or other similar equity-based awards) relating to services performed during any calendar year, whether paid or not
paid in such calendar year or included on the Federal Income Tax Form W-2 for such calendar year. 

  

	1.32	“RSU Deferral” shall mean that portion of a Participant’s RSU Payout that the Participant elects to have deferred for the Plan Year of reference, in accordance with
Article 3, and that the Committee, in its discretion, approves for deferral. 

  

	1.33	“Short-Term Payout” shall mean the payout set forth in Section 4.1. 

  

	1.34	“Stock Unit” shall mean an artificial unit of value representing the value of one share of Common Stock. Stock Units shall not have voting rights.

  

	1.35	“Stock Unit Fund” shall mean a Measurement Fund (as described in Section 3.6(d)) maintained on the books of the Company reflecting credits to Participants’ Account
Balances in Stock Units. 

  

 5 

	1.36	“Stock Unit Sub-Account” shall mean the portion (if any) of a Participant’s Account Balance allocated to the Stock Unit Fund. 

  

	1.37	“Termination Benefit” shall mean the benefit set forth in Article 5. 

  

	1.38	“Termination of Employment” shall mean (a) the severing of employment with the Company, or (b) severance as a Director, voluntarily or involuntarily, for any reason. A
mere transfer of status from employment to service as a Director or from service as a Director to employment shall not be a Termination of Employment. 

  

	1.39	“Unforseeable Financial Emergency” shall mean an unanticipated emergency that is caused by an event beyond the control of the Participant that would result in severe
financial hardship to the Participant resulting from (i) a sudden and unexpected illness or accident of the Participant or a dependent of the Participant, (ii) a loss of the Participant’s property due to casualty, or (iii) such other
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant, all as determined in the sole discretion of the Committee. 

  

	1.40	“Yearly Installment Method” shall be a yearly installment payment over five (5) years or ten (10) years, calculated as follows: The Account Balance of the Participant
shall be calculated as of the close of business on the date of reference (or, if the date of reference is not a business day, on the immediately following business day). The date of reference with respect to the first yearly installment payment, and
the date of payment of that initial installment, shall be as provided in Section 5.2, and the date of reference with respect to each subsequent yearly installment payment shall be the anniversary of the initial installment payment. The yearly
installment shall be calculated by multiplying the Account Balance, so calculated, by a fraction, the numerator of which is one (1), and the denominator of which is the remaining number of yearly payments due the Participant. By way of example, if
the Participant elects payment pursuant to the five (5) Yearly Installment Method, the first payment shall be one-fifth (1/5) of the Account Balance, calculated as described in this definition. The following year, the payment shall be one quarter
(1/4) of the Account Balance, calculated as described in this definition. 

  

 6 

 ARTICLE 2 
 Selection/Enrollment/Eligibility 
  

	2.1	Eligibility. Participation in the Plan shall be limited to Employees and to Directors who the Committee designates, in its sole discretion, for participation, provided
that any Employees so designated must meet the requirement of ERISA that they be members of a select group of management or highly compensated employees of the Company (which determination shall be made by the Committee, in its sole discretion).

  

	2.2	Enrollment Requirements. As a condition to participation, each selected Employee and each Director shall complete, execute and return to the Committee a Plan
Agreement, an Election Form(s) and a Beneficiary Designation Form, all within thirty (30) days (or such earlier date as determined by the Committee) after he or she is notified of his or her eligibility to participate in the Plan. In addition, the
Committee shall establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary, including, but not limited to, establishing different requirements with respect to the timing of Bonus Deferrals.

  

	2.3	Commencement of Participation. Provided a selected Employee or a Director has met all enrollment requirements set forth in this Plan and required by the Committee,
including returning all required documents to the Committee within the specified time period, that Employee or Director shall commence participation in the Plan on the first day of the month following the month in which the Employee or Director
completes all enrollment requirements. If an Employee or Director fails to meet all such requirements within the period required, in accordance with Section 2.2, that Employee or Director shall not be eligible to participate in the Plan until the
first day of the following Plan Year, again subject to timely delivery to and acceptance by the Committee of the required documents. 

  

	2.4	Termination of Participation and/or Deferrals. If the Committee determines in good faith that an Employee no longer qualifies as a member of a select group of
management or highly compensated employees, as membership in such group is determined in accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the right, in its sole discretion, to (i) terminate any deferral
election the Participant has made for the remainder of the Plan Year in which the Participant’s membership status changes, (ii) prevent the Participant from making future deferral elections and/or (iii) immediately distribute the
Participant’s Account Balance as a Termination Benefit and terminate the Participant’s participation in the Plan. 

  

 7 

	2.5	Insider Trading Policy. Notwithstanding any other provision herein to the contrary, all discretionary transactions involving the Stock Unit Fund, including, but
not limited to decisions regarding investment, changes in payout method, re-deferrals of Short-Term Payouts and revocations of deferral elections, are all subject to and must comply with the Company’s Insider Trading Policy.

  
 ARTICLE 3 
 Deferral Commitments/Crediting/Taxes 
  

	3.1	Minimum Deferral. 

  

	 	(a)	Annual Base Salary, Incentive Payments and Directors Fees. Subject to Section 3.7, for each Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Annual Base Salary and/or Incentive Payments (as and to the extent each type of Incentive Payment applies to the Participant), or Directors Fees, in minimum increments of one percent (1%) for each item of deferral and in the minimum amount
of two thousand dollars ($2,000) in the aggregate. 

  

	 	(b)	Short Plan Year. Notwithstanding the foregoing, if a Participant first becomes a Participant after the first day of a Plan Year, the minimum deferral shall be an
amount equal to the minimum set forth above, multiplied by a fraction, the numerator of which is the number of complete months remaining in the Plan Year and the denominator of which is twelve (12). 

  

	 	(c)	Provisos. Notwithstanding the foregoing, (i) the Committee may, in its sole discretion, establish for any Plan Year a different minimum amount (including establishing
different minimum amounts for Annual Base Salary and Incentive Payments and Directors Fees), and (ii) any Guideline LTIP Deferral may not be for more than the applicable percentage of the after-tax LTIP Payout to which it pertains (i.e., fifteen
percent (15%), twenty five percent (25%) or fifty percent (50%), depending on the office that the Participant holds). If an election is made for less than the stated minimum amount(s), or if no election is made, the amount deferred shall be zero
(0). 

  

 8 

	3.2	Maximum Deferral. 

  

	 	(a)	Annual Base Salary, Incentive Payments and Directors Fees. Subject to Section 3.7, for each Plan Year, a Participant may elect to defer, as his or her Annual Deferral
Amount, Annual Base Salary and/or Incentive Payments (as and to the extent each type of Incentive Payment applies to the Participant) or Directors Fees, up to the following maximum percentages for each deferral elected: 

  

	 Deferral Type

	  	Maximum Percentage

	 Annual Base Salary
	  	50%
	 Each Incentive Payment
	  	100%
	 Directors Fees
	  	100%

  

	 	(b)	Committee’s Discretion. Notwithstanding the foregoing, (i) the Committee may, in its sole discretion, establish for any Plan Year maximum percentages which differ
from those set forth above, and (ii) if a Participant first becomes a Participant after the first day of a Plan Year, the maximum Annual Deferral Amount with respect to Annual Base Salary and/or Incentive Payments, or Directors Fees, shall be
limited to the percentage of such item of compensation not yet earned by, or, in the case of Incentive Payments, not yet payable to the Participant as of the date the Participant submits a Plan Agreement and Election Form(s) to the Committee for
acceptance. 

  

	3.3	Election to Defer/Effect of Election Form. 

  

	 	(a)	First Plan Year. In connection with a Participant’s commencement of participation in the Plan, the Participant shall make a deferral election for the Plan Year in
which the Participant commences participation in the Plan, along with such other elections as the Committee deems necessary or desirable under the Plan. For these elections to be valid, the Election Form(s) must be completed and signed by the
Participant, timely delivered to the Committee (in accordance with Section 2.2 above) and accepted by the Committee. 

  

	 	(b)	Subsequent Plan Years. For each succeeding Plan Year, a deferral election for that Plan Year, and such other elections as the Committee deems necessary or desirable
under the Plan, shall be made by timely delivering to the Committee, in accordance with its rules and procedures, a new Election Form(s) as follows: 

  

	 	(i)	for the deferral of Annual Base Salary or commissions, on or before the last day of the Plan Year preceding the Plan Year in which the Annual Base Salary or commissions otherwise
would be paid (or such earlier date as may be prescribed by the Committee); 

  

	 	(ii)	for Bonus Deferrals, on or before the last day of the Plan Year preceding the Plan Year in which the annual bonus or sales bonus otherwise would be earned (or such earlier date as
may be prescribed by the Committee); 

  

	 	(iii)	for Directors Fees, on or before the last day of the Plan Year preceding the Plan Year in which the Directors Fees otherwise would be paid (or such other date as may be prescribed
by the Committee); 

  

 9 

	 	(iv)	for the deferral of an LTIP Payout, on or before the last day of the first Plan Year of the two (2) year performance period to which the LTIP Payout relates under the LTIP (or such
earlier date as may be prescribed by the Committee); and 

  

	 	(v)	for RSU Deferrals, at least twelve (12) months (or such earlier date as may be prescribed by the Committee) prior to the date the restricted stock units or other similar
equity-based awards to which the RSU Payout relates become vested and payable. 

  
 If no such Election Form(s) is timely delivered for a Plan Year, the Annual Deferral Amount shall be zero (0) for that Plan Year. 
  

	 	(c)	RSU Deferrals. Notwithstanding the preceding, any election to defer an RSU Payout is subject to any requirements and prerequisites as the Committee may establish.

  

	 	(d)	Change in Election. A Participant may not elect to change his or her deferral election that is in effect for a Plan Year; provided, however, that a Participant may
revoke completely a deferral election for Annual Base Salary and/or for any Incentive Payment, or for any Directors Fees, not yet payable at the time of the Participant’s revocation election. Such revocation will itself be irrevocable (i) for
the remainder of the Plan Year, in the case of Annual Base Salary and/or commission deferrals, or Directors Fees, and (ii) entirely, with respect to the particular Incentive Payment deferral to which the revoked election relates. Any such
revocations shall be subject to and shall require the consent of the Committee. Revocations will become effective no sooner than thirty (30) days following receipt of the Committee’s consent.  

  

	3.4	Withholding of Annual Deferral Amounts. For each Plan Year, the Annual Base Salary portion of the Annual Deferral Amount shall be withheld from each regularly
scheduled Annual Base Salary payroll in the amounts elected by the Participant, as adjusted from time to time for increases and decreases in Annual Base Salary. The Incentive Payments portion of the Annual Deferral Amount, if any, shall be withheld
at the time the Incentive Payment is or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. The Directors Fees portion of the Annual Deferral Amount, if any, shall be withheld at the time the Directors
Fees are or otherwise would be paid to the Participant, whether or not this occurs during the Plan Year itself. 

  

	3.5	Vesting. A Participant shall at all times be one hundred percent (100%) vested in his or her Account Balance. 

  

 10 

	3.6	Crediting/Debiting of Account Balances. In accordance with, and subject to, the rules and procedures that are established from time to time by the Committee, in its
sole discretion, amounts shall be credited or debited to a Participant’s Account Balance in accordance with the following rules: 

  

	 	(a)	Sub-Accounts. Two separate sub-accounts shall be established and maintained with respect to each Participant’s Account Balance (together, the
“Sub-Accounts”), as follows: 

  

	 	(i)	The first Sub-Account shall be attributable to the portion of the Participant’s Account Balance representing new deferrals credited to the Plan (and earnings or losses
thereon) for which a separate election of Measurement Funds (as defined in subsection (d), below) may be made as provided in subsection (b), below (i.e., separate from the election made with respect to the Participant’s existing Account
Balance, as described immediately below). 

  

	 	(ii)	The second Sub-Account is attributable to the Participant’s existing Account Balance (i.e., past years’ credited deferrals and earnings or losses thereon) with
respect to which an election of Measurement Funds previously has been made by the Participant as provided in subsection (b), below. 

  

	 	(b)	Election of Measurement Funds. Subject to Section 3.6(f) below, a Participant, in connection with his or her initial deferral election in accordance with Section
3.3(a) above, shall elect, on the Election Form(s), one or more Measurement Fund(s) (as described in Section 3.6(d) below) to be used to determine the additional amounts to be credited or debited to each of his or her Sub-Accounts for the first
business day of the Plan Year, continuing thereafter unless changed in accordance with the next sentence. Commencing with the first business day of the Plan Year, and continuing thereafter for the remainder of the Plan Year (unless the Participant
ceases during the Plan Year to participate in the Plan), the Participant may (but is not required to) elect daily, by submitting an Election Form(s) to the Committee that is accepted by the Committee (which submission may take the form of an
electronic transmission, if required or permitted by the Committee), to add or delete one or more Measurement Fund(s) to be used to determine the additional amounts to be credited or debited to each of his or her Sub-Accounts, or to change the
portion of each of his or her Sub-Accounts allocated to each previously or newly elected Measurement Fund(s). If an election is made in accordance with the previous sentence, it shall apply to the next business day and continue thereafter for the
remainder of the Plan Year (unless the Participant ceases during the Plan Year to participate in the Plan), unless changed in accordance with the previous sentence. 

  

 11 

 The foregoing notwithstanding, (i) a Participant’s RSU Deferral (if any) automatically will be
allocated to the Stock Unit Fund; (ii) except with respect to a Participant’s RSU Deferral (if any), an investment election by a Participant into the Stock Unit Fund will actually be allocated to the Stock Unit Fund solely on a quarterly basis,
on the thirtieth (30th) calendar day after release by the Company of its earnings report for the fiscal quarter in
which such investment election was made in accordance with the Company’s Insider Trading Policy, or on such other date as the Committee shall determine (with the amount so allocated being the elected portion of the Participant’s Account
Balance, plus or minus earnings or losses on that portion through the allocation date calculated by reference to the earlier-elected Measurement Fund for that portion (or, if there was no earlier election made, by reference to the money market,
fixed income or similar Measurement Fund(s) offered under the Plan as determined by the Committee in its discretion)); and (iii) an election out of the Stock Unit Fund and into an alternative Measurement Fund will not be permitted. 
  

	 	(c)	Proportionate Allocation. In making any election described in and permitted by Section 3.6(b) above, the Participant shall specify on the Election Form(s), in whole
percentage points, the percentage of each of his or her Sub-Account(s) to be allocated to a Measurement Fund (as if the Participant was making an investment in that Measurement Fund with that portion of his or her Account Balance).

  

	 	(d)	 Measurement Funds. Subject to Sections 3.6(b) and 3.6(f), the Participant may elect one or more of the Measurement Funds set forth on Schedule
A (the “Measurement Funds”), for the purpose of crediting or debiting additional amounts to his or her Account Balance. The Committee may, in its sole discretion, discontinue, substitute or add a Measurement Fund(s). Each such action
will take effect as of the first business day that follows by thirty (30) days the day on which the Committee gives Participants advance written notice of such change. If the Committee receives an initial or revised Measurement Fund(s) election
which it deems to be incomplete, unclear or improper, the Participant’s Measurement Fund(s) election then in effect shall remain in effect (or, in the case of a deficiency in an initial Measurement Fund(s) election, the Participant shall be
deemed to have filed no deemed investment direction). If the Committee possesses (or is deemed to possess as provided in the previous sentence) at any time directions as to Measurement Fund(s) of less than all of the Participant’s Account
Balance, the Participant shall be deemed to have directed that the undesignated portion of the Account Balance be deemed to be invested in a money market, fixed income or similar Measurement Fund made available under the Plan as determined by the
Committee in its discretion. Each Participant hereunder, as a condition to his or her participation hereunder, agrees to hold harmless the Committee and the Company, and their agents and representatives, from any losses or damages of any kind
relating to (i) the 

  

 12 

	 	 
Measurement Funds made available hereunder and (ii) any discrepancy between the credits and debits to the Participant’s Account Balance based on the
performance of the Measurement Funds and what the credits and debits otherwise might be in the case of an actual investment in the Measurement Funds. 

  

	 	(e)	Crediting or Debiting Method. The performance of each elected Measurement Fund (either positive or negative) will be determined by the Committee, in its sole
discretion, based on the performance of the Measurement Funds themselves. Subject to Section 3.6(b) regarding the date amounts are allocated to the Stock Unit Fund, a Participant’s Account Balance shall be credited or debited on a daily basis
with respect to the Stock Unit Fund and on a quarterly basis with respect to the Fixed Income Fund based on the performance of each Measurement Fund selected by the Participant, or as otherwise determined by the Committee in its sole discretion, as
though (i) a Participant’s Account Balance were invested in the Measurement Fund(s) selected by the Participant, in the percentages elected by the Participant as of such date, at the closing price on such date; (ii) the portion of the Annual
Deferral Amount that was actually deferred was invested in the Measurement Fund(s) selected by the Participant, in the percentages elected by the Participant, no later than the close of business on the third (3rd) business day after the day on which
such amounts are actually deferred from the Participant’s Annual Base Salary and/or Incentive Payments, or Directors Fees, through reductions in his or her pay, at the closing price on such date; and (iii) any distribution made to a Participant
that decreases such Participant’s Account Balance ceased being invested in the Measurement Fund(s), in the percentages applicable to such calendar day, no earlier than three (3) business days prior to the distribution, at the closing price on
such date. The preceding notwithstanding (i) amounts allocated to the Stock Unit Fund will be credited or debited in accordance with Section 3.6(f) below, and (ii) amounts allocated to the fixed income Measurement Fund offered under the Plan as of
the Effective Date will be credited or debited in accordance with Schedule A. 

  

	 	(f)	Stock Unit Fund. Notwithstanding anything herein to the contrary, each Participant’s RSU Deferrals, upon being credited to the Participant’s Account Balance,
shall automatically be allocated to the Stock Unit Fund, and shall remain allocated to the Stock Unit Fund. Those amounts, as well as any other portions of a Participant’s Account Balance that are directed at the election of the Participant
into the Stock Unit Fund in accordance with Section 3.6(b), may not later be redirected by the Participant out of the Stock Unit Fund and into any of the other Measurement Funds. 

  
 The portion of a Participant’s Account Balance allocated to the Stock
Unit Fund shall be credited as follows: on any date on which any Annual Deferral Amounts are 

  

 13 

 
allocated to the Stock Unit Fund in accordance with Section 3.6(b) (an “Allocation Date”), the Participant’s Stock Unit Sub-Account shall be
credited with a number of Stock Units equal to (i) the amount allocated to the Stock Unit Sub-Account divided by (ii) the “Price per Share” (as defined below) on the Allocation Date. Fractional Stock Units shall be rounded to the nearest
one tenth (1/10th) of a Stock Unit. On any given day, the value of the Stock Unit Sub-Account shall equal the number
of Stock Units then credited to the Stock Unit Sub-Account multiplied by the Price per Share on such date. Stock Units do not constitute shares of Common Stock, interests in Common Stock or any other security of the Company. They merely reflect an
unfunded promise to pay deferred compensation in the future. For purposes of this Section 3.6, the “Price per Share” shall equal the closing sale price per share at which shares of the Common Stock are sold on the New York Stock Exchange
on such date or, if no Common Stock was traded on such date, the closing sale price at which the Common Stock is sold on the next preceding date the Common Stock was so traded. 
  
 Dividends paid on the Company’s Common Stock shall be credited to the Participant’s Account Balance on every date
the Company issues a dividend with respect to its Common Stock, in an amount equal to (i) the product of (A) the dividend per share of Common Stock times (B) the number of Stock Units in the Participant’s Stock Unit Sub-Account immediately
before the dividend record date, divided by (ii) the price per share on the dividend record date. Such credited amount shall be allocated to the money market, fixed income or similar Measurement Fund then available under the Plan as determined by
the Committee in its discretion. In the event of any recapitalization, stock split, stock dividend, exchange of shares, merger, reorganization, change in corporate structure or change in shares of the Company or similar event, the Board, upon
recommendation of the Committee, may make appropriate adjustments to the number of Stock Units credited to each Participant’s Stock Unit Sub-Account. 
  

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

  

 14 

	 	(h)	Beneficiary Elections. Each reference in this Section 3.6 to a Participant shall be deemed to include, where applicable, a reference to a Beneficiary.

  

	3.7	Payroll Reductions and Taxes. For each Plan Year in which an Annual Deferral Amount is being withheld from a Participant, the Company shall withhold from that portion
of the Participant’s Annual Base Salary or other compensation that is not being deferred, in a manner determined by the Company, the Participant’s share of FICA and other employment taxes on such Annual Deferral Amount. For each Plan Year
in which an Annual Deferral Amount is being withheld from a Participant, the Company shall withhold from the Participant’s actual Incentive Payments deferral amount the Participant’s share of FICA and other employment taxes. If necessary,
the Committee may reduce the Annual Deferral Amount in order to comply with applicable tax withholding requirements. In addition, the Committee may reduce the Annual Deferral Amount to the extent necessary to make any other payroll reductions
elected by the Participant or required under any other benefit plan of the Company (e.g., reductions for insurance premiums or 401(k) plan contributions). 

  

	3.8	Distributions. Payments from the Plan shall be made in the form of cash; provided, that, any portion or a Participant’s Account Balance that is allocated to the
Stock Unit Fund as of the date payment is to be made shall be paid solely in the form of shares of Common Stock. Each payment shall be charged on a pro rata basis against the Measurement Funds in which the Participant’s Account Balance is
deemed to be invested as of the date of such payment. The Company shall withhold from any payments made to a Participant under this Plan all Federal, state and local income, employment and other taxes required to be withheld by the Company in
connection with such payments, in amounts and in a manner to be determined in the sole discretion of the Company. If necessary, the Company shall withhold from the Participant’s cash compenasation the Participant’s share of applicable
payroll taxes, such as on a distribution under the Plan of shares of Common Stock. 

  
 ARTICLE 4 
 Short-Term Payout/Unforeseeable Financial Emergencies

  

	4.1	 Short-Term Payout. In connection with each Plan Year’s Annual Deferral Amount (i.e., the deferrals actually credited to the Participant’s
Account Balance during that Plan Year), a Participant may irrevocably elect to receive a future “Short-Term Payout” from the Plan. Subject to the Deduction Limitation and to Sections 3.6(f) and 3.8 above, the Short-Term Payout shall be, as
elected by the Participant, a lump sum payment in an amount that is equal to the Annual Deferral Amount or annual installments pursuant to the Yearly Installment Method elected by the Participant, and amounts credited or debited thereto in the

  

 15 

	 	 
manner provided in Section 3.6 above, determined at the time that the Short-Term Payout becomes payable (rather than the date of a Termination of
Employment). If the amount being paid out in the form of a Short-Term Payout is less than one hundred fifty thousand dollars ($150,000), payment of his or her Short-Term Payout shall be in a lump sum. Subject to the Deduction Limitation and the
other terms and conditions of this Plan, each Short-Term Payout elected shall be paid out during a period beginning one (1) day and ending ninety (90) days after the last day of any Plan Year designated by the Participant that is at least two (2) or
more Plan Years (as determined from time to time by the Committee) after the Plan Year in which the Annual Deferral Amount is actually deferred (i.e., credited to the Participant’s Account Balance), as specifically elected by the Participant.
By way of example, if a two (2) year Short-Term Payout in a lump sum is elected for Annual Deferral Amounts that are credited during the Plan Year commencing January 1, 2004, the two (2) year Short-Term Payout would become payable during a ninety
(90) day period commencing January 1, 2007. Notwithstanding the preceding sentences or any other provision of this Plan that may be construed to the contrary (unless otherwise determined by the Committee), a Participant who is an active Employee or
an active Director may, with respect to each Short-Term Payout, on a form determined by the Committee, make one or more additional deferral elections (a “Subsequent Election”) to defer payment of such Short-Term Payout to a Plan Year
subsequent to the Plan Year originally (or subsequently) elected; provided, however, any such Subsequent Election will be null and void unless accepted by the Committee no later than one hundred eighty (180) days (or such greater number of days as
the Committee may prescribe) prior to the first day of the Plan Year in which, but for the Subsequent Election, such Short-Term Payout would be paid, and such Subsequent Election is at least two (2) Plan Years (or such greater number of Plan Years
as the Committee may prescribe) from the Plan Year in which the Short-Term Payout, but for the Subsequent Election, would be paid. The Committee shall have the discretion to accelerate a Participant’s Short-Term Payout by reducing a
Participant’s Yearly Installment Method to fewer years than otherwise elected. Notwithstanding the above, once a Short-Term Payout has commenced pursuant to a Yearly Installment Method, no such Subsequent Election can be made for the unpaid
portion of such Short-Term Payout. 

  

	4.2	Other Benefits Take Precedence Over Short-Term Payout. Should an event occur that triggers a benefit under Articles 5, 6 or 7, any Annual Deferral Amount, plus amounts
credited or debited thereon, that is subject to a Short-Term Payout election under Section 4.1 shall not be paid in accordance with Section 4.1 but shall be paid in accordance with the other applicable Article. 

  

	4.3	 Withdrawal Payout/Suspensions for Unforeseeable Financial Emergencies. If a Participant experiences an Unforeseeable Financial Emergency, the
Participant may petition the Committee to (i) suspend any deferrals required to be made by 

  

 16 

	 	 
the Participant and/or (ii) receive a partial or full payout from the Plan. The payout shall not exceed the lesser of the Participant’s Account Balance,
calculated as if such Participant were receiving a Termination Benefit, or the amount reasonably needed to satisfy the Unforeseeable Financial Emergency. If, subject to the sole discretion of the Committee, the petition for a suspension and/or
payout is approved, suspension shall take effect upon the date of approval and any payout shall be made within sixty (60) days of the date of approval or as soon as administratively practicable thereafter. The payment of any amount under this
Section 4.3 shall be subject to Sections 3.6(f), 3.8 and 14.18, but shall not be subject to the Deduction Limitation. 

  
 ARTICLE 5  
 Termination
Benefit 
  

	5.1	Termination Benefit. Subject to the Deduction Limitation and to Sections 3.6(f) and 3.8 above, a Participant who experiences a Termination of Employment shall receive
(or, if Termination of Employment is due to the Participant’s death, his or her Beneficiary shall receive), as a Termination Benefit, the Participant’s entire Account Balance. 

  

	5.2	Payment of Termination Benefit. If the Participant’s Account Balance at the time of his or her Termination of Employment is less than one hundred fifty thousand
dollars ($150,000), payment of his or her Termination Benefit shall be in a lump sum. If the Participant’s Account Balance at such time is equal to or greater than that amount, the Participant, in connection with his or her commencement of
participation in the Plan, shall elect on an Election Form to receive (or to have his or her Beneficiary receive) the Termination Benefit in a lump sum or pursuant to a five or ten year Yearly Installment Method. The Participant may change his or
her election to an allowable alternative payout period by submitting a new Election Form to the Committee, provided that any such Election Form is submitted at least one hundred eighty (180) days (or such greater number of days as the Committee may
prescribe) prior to the Participant’s Termination of Employment and is accepted by the Committee in its sole discretion. The valid Election Form most recently accepted by the Committee shall govern the payout of the Termination Benefit. If a
Participant does not make any election with respect to the payment of the Termination Benefit, then such benefit shall be payable in a lump sum. Subject to Sections 3.6(f), 3.8 and 14.18, the lump sum payment shall be made, or installment payments
shall commence, no earlier than thirty (30) days and no later than ninety (90) days after the date of the Participant’s Termination of Employment. The Committee shall have the discretion to accelerate a Participant’s Termination Benefit by
reducing a Participant’s Yearly Installment Method to fewer years than otherwise elected. 

  

 17 

	5.3	Death Prior to Completion of Termination Benefit. If a Participant dies after Termination of Employment but before the Termination Benefit is paid in full, the
Participant’s unpaid Termination Benefit payments shall continue and shall be paid to the Participant’s Beneficiary (i) over the remaining number of years and in the same amounts as that benefit would have been paid to the Participant had
the Participant survived, or (ii) in a lump sum, if requested by the Participant’s Beneficiary and allowed in the sole discretion of the Committee, that is equal to the Participant’s unpaid remaining Account Balance. Any payment made
hereunder shall be subject to Sections 3.6(f), 3.8 and 14.18, but shall not be subject to the Deduction Limitation. 

  
 ARTICLE 6 
 Change in Control
Benefit 
  

	6.1	Change in Control Benefit. Notwithstanding anything herein to the contrary, upon a Change in Control, each Participant shall receive, within thirty (30) days following
the Change in Control, the portion of his or her Account Balance attributable to his or her Guideline LTIP Deferrals. Payment shall be made solely in shares of Common Stock, in a single lump sum, subject to Sections 3.6(f), 3.8 and 14.18. In the
event the surviving entity following a Change in Control does not assume the obligations under the Plan, any remaining portion of a Participant’s Account Balance which has not yet been paid as of the date of the Change in Control shall be paid
within thirty (30) days following the Change in Control in the form of a lump sum amount. If the surviving entity following a Change in Control assumes the Plan, the Plan will remain in effect. 

  

 18 

 ARTICLE 7 
 Disability Waiver and Benefit 
  

	7.1	Disability Waiver. 

  

	 	(a)	Waiver of Deferral. Upon application, a Participant who is determined by the Committee to be suffering from a Disability may suspend for the period of the Disability
that portion of the Annual Deferral Amount commitment that would otherwise have been withheld from a Participant’s Annual Base Salary and/or Incentive Payments, or Directors Fees, for the Plan Year during which the Participant first suffers a
Disability. 

  

	 	(b)	Return to Work. If a Participant returns to active employment with the Company after a Disability ceases, the Participant may recommence electing to defer an Annual
Deferral Amount for the Plan Year following his or her return to active employment; provided such deferral elections are otherwise allowed and an Election Form is timely delivered to and accepted by the Committee for each such election in accordance
with Section 3.3 above. 

  

	7.2	Continued Eligibility/Disability Benefit. A Participant suffering a Disability shall, for benefit purposes under this Plan, continue to be considered to be employed by
the Company, and shall be eligible for the benefits provided for in Articles 4, 5 or 6 in accordance with the provisions of those Articles. Notwithstanding the above, the Committee shall have the right to, in its sole and absolute discretion and for
purposes of this Plan only, deem the Participant to have experienced a Termination of Employment after such Participant is determined to be suffering a Disability, in which case the Participant shall receive a Termination Benefit equal to his or her
entire Account Balance at the time of the Committee’s determination, paid in accordance with Article 5. Any payment made hereunder shall be subject to Sections 3.6(f), 3.8 and 14.18, but shall not be subject to the Deduction Limitation.

  
 ARTICLE 8 
 Beneficiary Designation 
  

	8.1	Beneficiary. Each Participant shall have the right, at any time, to designate his or her Beneficiary(ies) (both primary as well as contingent) to receive any benefits
payable under the Plan upon the death of a Participant. The Beneficiary designated under this Plan may be the same as or different from the Beneficiary designation under any other plan of the Company in which the Participant participates.

  
 Notwithstanding the preceding or anything
herein to the contrary, a married Participant shall be deemed to have designated his or her spouse as his or her Beneficiary. Such Participant may designate a non-spouse Beneficiary(ies) solely with the consent of his or her spouse, in such manner
as the Committee shall reasonably require. 
  

 19 

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

  

	8.3	Acknowledgment. No designation or change in designation of a Beneficiary shall be effective until received and acknowledged in writing by the Committee or its
designated agent. 

  

	8.4	No Beneficiary Designation. If a Participant fails to designate a Beneficiary as provided in Sections 8.1, 8.2 and 8.3 above or, if all designated Beneficiaries
predecease the Participant or die prior to complete distribution of the Participant’s benefits, then the Participant’s designated Beneficiary shall be deemed to be his or her surviving spouse, or, if the Participant has no surviving
spouse, the benefits remaining under the Plan to be paid to a Beneficiary shall be payable to the executor or personal representative of the Participant’s estate. 

  

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

  

	8.6	 Discharge of Obligations. The payment of benefits under the Plan to a person believed in good faith by the Committee to be a valid Beneficiary shall
fully and completely discharge the Company and the Committee from all further obligations under this Plan with respect to the Participant, and that Participant’s Plan Agreement shall terminate upon such full payment of benefits. Neither the
Committee nor the Company shall be obliged to search for any Participant or Beneficiary beyond the sending of a registered letter to such Participant’s or Beneficiary’s last known address. If the Committee notifies any Participant or
Beneficiary that he or she is entitled to an amount under the Plan and the Participant or Beneficiary fails to claim such amount or make his or her location known to the Committee within three (3) years thereafter, then, except as otherwise required
by law, if the location of one or more of the next of kin of the Participant is known to the Committee, the Committee 

  

 20 

	 	 
may direct payment of such amount to any one or more or all of such next of kin, and in such proportions as the Committee determines. If the location of none
of the foregoing persons can be determined, the Committee shall have the right to direct that the amount payable shall be deemed to be a forfeiture and paid to the Company, except that the dollar amount of the forfeiture, unadjusted for deemed gains
or losses in the interim, shall be paid by the Company if a claim for the benefit subsequently is made by the Participant or the Beneficiary to whom it was payable. If a benefit payable to an unlocated Participant or Beneficiary is subject to
escheat pursuant to applicable state law, neither the Committee nor the Company shall be liable to any person for any payment made in accordance with such law. 

  
 ARTICLE 9 
 Leave of Absence 
  

	9.1	Paid Leave of Absence. If a Participant is authorized by the Company for any reason to take a paid leave of absence from the employment of the Company, the Participant
shall continue to be considered employed by the Company and the Annual Deferral Amount shall continue to be withheld during such paid leave of absence in accordance with Section 3.4. 

  

	9.2	Unpaid Leave of Absence. If a Participant is authorized by the Company for any reason to take an unpaid leave of absence from the employment of the Company, the
Participant shall continue to be considered employed by the Company and the Participant shall be excused from making deferrals until the earlier of the date the leave of absence expires or the Participant returns to a paid employment status. Upon
such expiration or return, deferrals shall resume for the remaining portion of the Plan Year in which the expiration or return occurs, based on the deferral election, if any, made for that Plan Year. If no election was made for that Plan Year, no
deferral shall be withheld. 

  
 ARTICLE 10

 Termination/Amendment/Modification 
  

	10.1	 Termination. Although the Company anticipates that it will continue the Plan for an indefinite period of time, there is no guarantee that the Company
will continue the Plan or will not terminate the Plan at any time in the future. Accordingly, the Company reserves the right to discontinue its sponsorship of the Plan and/or to terminate the Plan at any time with respect to any or all of its
participating Employees or Directors, by action of the Board. Upon a complete or partial termination of the Plan, the Plan Agreements of the affected Participants shall terminate and their Account Balances, determined as if they had experienced a
Termination of Employment on the date of Plan termination, shall be paid to the Participants in accordance with their distribution elections in effect at the time of the Plan termination; provided that, the Board may, in its sole discretion,
accelerate 

  

 21 

	 	 
payment as soon as practicable following Plan termination in a lump sum or pursuant to the Yearly Installment Method but over fewer years. Except as provided
in the preceding sentence, the termination of the Plan shall not adversely affect any Participant or Beneficiary who has become entitled to the payment of any benefits under the Plan as of the date of termination. 

  

	10.2	Amendment. The Company may, at any time, unilaterally amend or modify the Plan in whole or in part by the action of the Board; provided, however, that no amendment or
modification shall be effective to decrease or restrict the value of a Participant’s Account Balance in existence at the time the amendment or modification is made, calculated as if the Participant had experienced a Termination of Employment as
of the effective date of the amendment or modification. The amendment or modification of the Plan shall not affect any Participant or Beneficiary who has become entitled to the payment of benefits under the Plan as of the date of the amendment or
modification; provided, however, that the Company shall have the right to accelerate installment payments by paying the Account Balance in a lump sum or pursuant to the Yearly Installment Method but over fewer years. 

  

	10.3	Plan Agreement. Despite the provisions of Sections 10.1 and 10.2 above, if a Participant’s Plan Agreement contains benefits or limitations that are not in this
Plan document, the Company may only amend or terminate such provisions with the consent of the Participant. 

  

	10.4	Effect of Payment. The full payment of the applicable benefit under Articles 4, 5, 6 or 7 of the Plan shall completely discharge all obligations to a Participant and
his or her designated Beneficiaries under this Plan and the Participant’s Plan Agreement shall terminate. 

  

	10.5	Amendment to Ensure Proper Characterization of the Plan. Notwithstanding the previous Sections of this Article, the Plan may be amended at any time, retroactively if
required, if found necessary, in the opinion of the Company, in order to ensure that the Plan is characterized as a non-tax-qualified “top hat” plan of deferred compensation maintained for a select group of management or highly compensated
employees, as described under ERISA Sections 201(2), 301(a)(3) and 401(a)(1), to ensure that amounts under the Plan are not considered to be taxed to a Participant under the Federal income tax laws prior to the Participant’s receipt of the
amounts or to conform the Plan to the provisions and requirements of any applicable law (including ERISA and the Code). 

  

 22 

	10.6	Changes in Law Affecting Taxability. 

  

	 	(a)	Operation. This Section shall become operative upon the enactment of any change in applicable statutory law or the promulgation by the Internal Revenue Service of a final
regulation or other pronouncement having the force of law, which statutory law, as changed, or final regulation or pronouncement, as promulgated, would cause any Participant to include in his or her federal gross income amounts accrued by the
Participant under the Plan on a date (an “Early Taxation Event”) prior to the date on which such amounts are made available to him or her hereunder. 

  

	 	(b)	Affected Right or Feature Nullified. Notwithstanding any other Section of this Plan to the contrary (but subject to subsection (c), below), as of an Early Taxation Event, the
feature or features of this Plan that would cause the Early Taxation Event shall be null and void, to the extent, and only to the extent, required to prevent the Participant from being required to include in his or her federal gross income amounts
accrued by the Participant under the Plan prior to the date on which such amounts are made available to him or her hereunder. If only a portion of a Participant’s Account Balance is impacted by the change in the law, then only such portion
shall be subject to this Section, with the remainder of the Account Balance not so affected being subject to such rights and features as if the law were not changed. If the law only impacts Participants who have a certain status with respect to the
Company, then only such Participants shall be subject to this Section. 

  

	 	(c)	Tax Distribution. If an Early Taxation Event is earlier than the date on which the statute, regulation or pronouncement giving rise to the Early Taxation Event is enacted or
promulgated, as applicable (i.e., if the change in the law is retroactive), there shall be distributed to each Participant, as soon as practicable following such date of enactment or promulgation, the amounts that became taxable on the Early
Taxation Event. 

  
 ARTICLE 11 
 Administration 
  

	11.1	Committee Duties. This Plan shall be administered by the Committee, any of whose members may be Participants under this Plan. The Committee shall have the discretion
and authority to (i) interpret and enforce all appropriate rules and regulations for the administration of this Plan and (ii) decide or resolve any and all questions including interpretations of this Plan, as may arise in connection with the Plan.
Any individual serving on the Committee who is a Participant shall not vote or act on any matter relating solely to himself or herself. When making a determination or calculation, the Committee shall be entitled to rely on information furnished by a
Participant or the Company. 

  

 23 

	11.2	Agents. In the administration of this Plan, the Committee may, from time to time, employ agents and delegate to them such administrative duties as they see fit
(including acting through a duly appointed representative) and may from time to time consult with counsel who may be counsel to the Company. 

  

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

  

	11.4	Indemnity of Committee. The Company shall indemnify and hold harmless the members of the Committee, and any Employee to whom the duties of the Committee may be
delegated, against any and all claims, losses, damages, expenses or liabilities arising from any action or failure to act with respect to this Plan, except in the case of willful misconduct by the Committee or any of its members or any such
Employee. This indemnification shall be in addition to, and not in limitation of, any other indemnification protections of the Committee. 

  

	11.5	Company Information. To enable the Committee to perform its functions, the Company shall supply full and timely information to the Committee on all matters relating to
the compensation of the Participants, the date and circumstances of the Disability or Termination of Employment of the Participants, and such other pertinent information as the Committee may reasonably require. 

  
 ARTICLE 12 
 Other Benefits and Agreements 
  

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

  

 24 

 ARTICLE 13 
 Claims Procedures 
  

	13.1	Scope of Claims Procedures. This Article is based on final regulations issued by the Department of Labor and published in the Federal Register on November 21, 2000 and
codified at 29 C.F.R. section 2560.503-1. If any provision of this Article conflicts with the requirements of those regulations, the requirements of those regulations will prevail. 

  
 For purposes of this Article, references to disability benefit claims are
intended to describe claims made by Participants for Termination Benefits payable pursuant to Articles 5 and 7, but only if and to the extent that such claims require an independent determination by the Committee that the Participant is or is not
suffering from a Disability. If the Committee’s determination is based entirely on a Disability determination made by another party, such as the Social Security Administration or another federal or state agency or an insurer with respect to a
disability insurance policy covering the Participant, the Participant’s claim shall not be treated as a Disability claim for purposes of the special provisions of this Article that apply to claims for which an independent determination of
Disability is required. 
  

	13.2	Initial Claim. A Participant or Beneficiary who believes he or she is entitled to any benefit under the Plan (a “Claimant”) may file a claim with the
Committee. The Committee shall review the claim itself or appoint an individual or an entity to review the claim. 

  

	 	(a)	Benefit Claims that do not Require a Determination of Disability. If the claim is for a benefit that does not arise from a Disability (or that arises from a Disability
but does not require an independent determination by the Committee of a Participant’s Disability status), the Claimant shall be notified within ninety (90) days after the claim is filed whether the claim is allowed or denied, unless the
Claimant receives written notice from the Committee or appointee of the Committee prior to the end of the ninety (90) day period stating that special circumstances require an extension of the time for decision, such extension not to extend beyond
the day which is one hundred eighty (180) days after the day the claim is filed. 

  

	 	(b)	 Disability Benefit Claims. In the case of a benefits claim that requires an independent determination by the Committee of a Participant’s
Disability status, the Committee shall notify the Claimant of the Plan’s adverse benefit determination within a reasonable period of time, but not later than forty-five (45) days after receipt of the claim. If, due to matters beyond the control
of the Committee, the Committee needs additional time to process a claim, the Claimant will be notified, within forty-five (45) days after the Committee receives the claim, of those circumstances and of when the Committee expects to make its
decision but not beyond seventy-five (75) days. If, prior to the end of the extension period, due to matters beyond the control of the Committee, a decision cannot be rendered within that extension period, the period for 

  

 25 

	 	 
making the determination may be extended for up to one hundred five (105) days, provided that the Committee notifies the Claimant of the circumstances
requiring the extension and the date as of which the Committee expects to render a decision. The extension notice shall specifically explain the standards on which entitlement to a disability benefit is based, the unresolved issues that prevent a
decision on the claim and the additional information needed from the Claimant to resolve those issues, and the Claimant shall be afforded at least forty-five (45) days within which to provide the specified information. 

 

	 	(c)	Manner and Content of Denial of Initial Claims. If the Committee denies a claim, it must provide to the Claimant, in writing or by electronic communication:

  

	 	(i)	The specific reasons for the denial; 

  

	 	(ii)	A reference to the Plan provision or insurance contract provision upon which the denial is based; 

  

	 	(iii)	A description of any additional information or material that the Claimant must provide in order to perfect the claim; 

  

	 	(iv)	An explanation of why such additional material or information is necessary; 

  

	 	(v)	Notice that the Claimant has a right to request a review of the claim denial and information on the steps to be taken if the Claimant wishes to request a review of the claim denial;
and 

  

	 	(vi)	A statement of the participant’s right to bring a civil action under ERISA Section 502(a) following a denial on review of the initial denial. 

  
 In addition, in the case of a denial of Termination Benefits on the basis of
the Committee’s independent determination of the Participant’s Disability status, the Committee will provide a copy of any rule, guideline, protocol, or other similar criterion relied upon in making the adverse determination (or a
statement that the same will be provided upon request by the Claimant and without charge). 
  

 26 

	13.3	Review Procedures. 

  

	 	(a)	Benefit Claims that do not Require a Determination of Disability. Except for claims requiring an independent determination of a Participant’s Disability status, a
request for review of a denied claim must be made in writing to the Committee within sixty (60) days after receiving notice of denial. The decision upon review will be made within sixty (60) days after the Committee’s receipt of a request for
review, unless special circumstances require an extension of time for processing, in which case a decision will be rendered not later than one hundred twenty (120) days after receipt of a request for review. A notice of such an extension must be
provided to the Claimant within the initial sixty (60) day period and must explain the special circumstances and provide an expected date of decision. 

  
 The reviewer shall afford the Claimant an opportunity to review and receive, without charge, all relevant documents,
information and records and to submit issues and comments in writing to the Committee. The reviewer shall take into account all comments, documents, records and other information submitted by the Claimant relating to the claim regardless of whether
the information was submitted or considered in the initial benefit determination. 
  

	 	(b)	Disability Benefit Claims. In addition to having the right to review documents and submit comments as described in subsection (a) above, a Claimant whose claim for
Termination Benefits requires an independent determination by the Committee of the Participant’s Disability status has at least one hundred eighty (180) days following receipt of a notification of an adverse benefit determination within which
to request a review of the initial determination. In such cases, the review will meet the following requirements: 

  

	 	(i)	The Committee will provide a review that does not afford deference to the initial adverse benefit determination and that is conducted by an appropriate named fiduciary of the Plan
who did not make the initial determination that is the subject of the appeal, nor by a subordinate of the individual who made the determination. 

  

	 	(ii)	 The appropriate named fiduciary of the Plan will consult with a health care professional who has appropriate training and experience in the field of medicine
involved in the medical judgment before making a decision on review of any adverse initial determination based in whole or in part on a 

  

 27 

	 	 
medical judgment. The professional engaged for purposes of a consultation in the preceding sentence shall not be an individual who was consulted in
connection with the initial determination that is the subject of the appeal or the subordinate of any such individual. 

  

	 	(iii)	The Committee will identify to the Claimant the medical or vocational experts whose advice was obtained on behalf of the Plan in connection with the review, without regard to
whether the advice was relied upon in making the benefit review determination. 

  

	 	(iv)	The decision on review will be made within forty-five (45) days after the Committee’s receipt of a request for review, unless special circumstances require an extension of time
for processing, in which case a decision will be rendered not later than ninety (90) days after receipt of a request for review. A notice of such an extension must be provided to the Claimant within the initial forty-five (45) day period and must
explain the special circumstances and provide an expected date of decision. 

  

	 	(c)	Manner and Content of Notice of Decision on Review. Upon completion of its review of an adverse initial claim determination, the Committee will give the Claimant, in
writing or by electronic notification, a notice containing: 

  

	 	(i)	its decision; 

  

	 	(ii)	the specific reasons for the decision; 

  

	 	(iii)	the relevant Plan provisions or insurance contract provisions on which its decision is based; 

  

	 	(iv)	a statement that the Claimant is entitled to receive, upon request and without charge, reasonable access to, and copies of, all documents, records and other information in the
Plan’s files which is relevant to the Claimant’s claim for benefits; 

  

	 	(v)	a statement describing the Claimant’s right to bring an action for judicial review under ERISA Section 502(a); and 

  

	 	(vi)	if an internal rule, guideline, protocol or other similar criterion was relied upon in making the adverse determination on review, a statement that a copy of the rule, guideline,
protocol or other similar criterion will be provided without charge to the Claimant upon request. 

  

 28 

	13.4	Calculation of Time Periods. For purposes of the time periods specified in this Article, the period of time during which a benefit determination is required to be made
begins at the time a claim is filed in accordance with the Plan procedures without regard to whether all the information necessary to make a decision accompanies the claim. If a period of time is extended due to a Claimant’s failure to submit
all information necessary, the period for making the determination shall be tolled from the date the notification is sent to the Claimant until the date the Claimant responds. 

  

	13.5	Legal Action. If the Plan fails to follow the claims procedures required by this Article, a Claimant shall be deemed to have exhausted the administrative remedies
available under the Plan and shall be entitled to pursue any available remedy under ERISA Section 502(a) on the basis that the Plan has failed to provide a reasonable claims procedure that would yield a decision on the merits of the claim. A
Claimant’s compliance with the foregoing provisions of this Article is a mandatory prerequisite to a Claimant’s right to commence any legal action with respect to any claims for benefits under the Plan. 

  
 ARTICLE 14 
 Miscellaneous 
  

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

  

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

  

	14.3	Company’s Liability. The Company’s liability for the payment of benefits shall be defined only by the Plan and the Plan Agreement, as entered into between
the Company and a Participant. The Company shall have no obligation to a Participant under the Plan except as expressly provided in the Plan and his or her Plan Agreement. 

  

	14.4	 Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer, pledge, anticipate, mortgage or
otherwise encumber, transfer, hypothecate, alienate or convey in advance of actual receipt, the amounts, if any, 

  

 29 

	 	 
payable hereunder, or any part thereof, which are, and all rights to which are expressly declared to be, unassignable and non-transferable. No part of the
amounts payable shall, prior to actual payment, be subject to seizure, attachment, garnishment or sequestration for the payment of any debts, judgments, alimony or separate maintenance owed by a Participant or any other person, be transferable by
operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency or be transferable to a spouse as a result of a property settlement or otherwise. 

  

	14.5	Not a Contract of Employment; No Guarantee of Payment. The terms and conditions of this Plan shall not be deemed to constitute a contract of employment between the
Company and a Participant. Such employment is hereby acknowledged, subject to applicable state law, to be an “at will” employment relationship that can be terminated at any time for any reason, or no reason, with or without cause, and with
or without notice, unless expressly provided otherwise in a written employment agreement. Nothing in this Plan shall be deemed to give any Participant the right to be retained in the employment of the Company, or to interfere with the right of the
Company to discipline or discharge the Participant at any time. Nothing in this Plan shall be deemed to be a guarantee of any right to payment of any particular form of compensation whether a Participant has elected to defer such compensation
hereunder or not. 

  

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

  

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

  

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

  

	14.9	Governing Law. Subject to ERISA and other applicable federal law, the provisions of this Plan shall be construed and interpreted according to the internal laws of the
State of Delaware without regard to its conflicts of laws principles. 

  

 30 

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

  
 Vice President, Human Resources 
 Oxford Health Plans, Inc. 
 48 Monroe Turnpike 
 Trumbull, Connecticut 06611 
  
 Such notice 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. 
  
 Any notice or filing required or permitted to be given to a Participant under this Plan shall be sufficient if in writing and hand-delivered, or sent by
mail, to the last known address of the Participant. 
  

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

  

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

  

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

  

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

  

	14.15	 Court Order. The Committee is authorized to make any payments directed by court order in any action in which the Plan or the Committee has been named
as a party. In addition, if a court determines (notwithstanding the provisions of Section 14.4) that a spouse or former 

  

 31 

	 	 
spouse of a Participant has an interest in the Participant’s benefits under the Plan in connection with a property settlement or otherwise, the
Committee, in its sole discretion, shall have the right, notwithstanding any election made by a Participant, to immediately distribute the spouse’s or former spouse’s interest in the Participant’s benefits under the Plan to that
spouse or former spouse, subject to Section 3.8, above. 

  

	14.16	Payment in the Event of Taxation. If, for any reason, all or any portion of a Participant’s benefits under this Plan becomes taxable to the Participant prior to
receipt, the Participant may petition the Committee for a payment of that portion of his or her benefit that has become taxable. Upon the grant of such a petition, which grant shall not be unreasonably withheld, the Company shall pay to the
Participant immediately available funds in an amount equal to the taxable portion of his or her benefit (which amount shall not exceed a Participant’s unpaid Account Balance under the Plan). If the petition is granted, the tax liability payment
shall be made within ninety (90) days of the date when the Participant’s petition is granted. Such a distribution shall affect and reduce the benefits to be paid under this Plan. 

  

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

  

	14.18	Government and Other Regulations. The Plan, and the right of the Company to offer participation herein and to make payment hereunder in shares of Common Stock or
otherwise, shall be subject to all applicable laws, rules, regulations and securities exchange requirements. The Plan shall be administered in all respects to comply with any such applicable laws, rules, regulations and requirements, including to
effect or obtain any and all listings, approvals, registrations and Participant agreements and representations as the Committee shall determine to be necessary or desirable. 

  

 32 

 Schedule A 
  
 Measurement Funds 
  
 Pursuant to Section 3.6(d) and subject to Section 3.6(f), the Participant may elect one or both of the following Measurement Funds: 
  

	 Fund Class

	  	 Measurement Fund

	 Fixed Income Fund*
	  	 Merrill Lynch Corporate Government Master Index*

	 Common Stock Fund
	  	 Oxford Health Plans, Inc. Common Stock

	*	Interest will be credited under this Measurement Fund on a quarterly basis, based upon the interest rate for this Index as of the end of the previous quarter.

  

 33VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC OMNIBUS STOCK PLAN AS AMENDED

 EXHIBIT 10.7 
  
 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
  
 OMNIBUS STOCK PLAN 
  
  
 INCORPORATING AMENDMENTS 
  
 EFFECTIVE ON OR 
  
 BEFORE NOVEMBER 17, 2000 

 TABLE OF CONTENTS 
  

	 Section 1 BACKGROUND, PURPOSE AND DURATION
	  	1
			
	 1.1
	  	 Effective Date
	  	1
	 1.2
	  	 Purpose of the Plan
	  	1
		
	 Section 2 DEFINITIONS
	  	1
			
	 2.1
	  	 “1934 Act”
	  	1
	 2.2
	  	 “Affiliate”
	  	1
	 2.3
	  	 “Award”
	  	1
	 2.4
	  	 “Award Agreement”
	  	1
	 2.5
	  	 “Board”
	  	2
	 2.6
	  	 “Code”
	  	2
	 2.7
	  	 “Committee”
	  	2
	 2.8
	  	 “Company”
	  	2
	 2.9
	  	 “Consultant”
	  	2
	 2.10
	  	 “Direct”
	  	2
	 2.11
	  	 “Disability”
	  	2
	 2.12
	  	 “EBIT”
	  	2
	 2.13
	  	 “EBITDA”
	  	2
	 2.14
	  	 “Earnings Per Share”
	  	2
	 2.15
	  	 “Employee”
	  	2
	 2.16
	  	 “Exercise Price”
	  	2
	 2.17
	  	 “Fair Market Value”
	  	2
	 2.18
	  	 “Fiscal Year”
	  	3
	 2.19
	  	 “Grant Date”
	  	3
	 2.20
	  	 “Incentive Stock Option”
	  	3
	 2.21
	  	 “Net Income”
	  	3
	 2.22
	  	 “Non-employee Director”
	  	3
	 2.23
	  	 “Non-qualified Stock Option”
	  	3
	 2.24
	  	 “Operating Cash Flow”
	  	3
	 2.25
	  	 “Option”
	  	3
	 2.26
	  	 “Participant”
	  	3
	 2.27
	  	 “Performance Goals”
	  	3
	 2.28
	  	 “Performance Period”
	  	4
	 2.29
	  	 “Performance Share”
	  	4
	 2.30
	  	 “Performance Unit”
	  	4
	 2.31
	  	 “Period of Restriction”
	  	4
	 2.32
	  	 “Plan”
	  	4
	 2.33
	  	 “Restricted Stock”
	  	4
	 2.34
	  	 “Retirement”
	  	4

  

 i 

	 2.35
	  	 “Return on Assets”
	  	4
	 2.36
	  	 “Return on Equity”
	  	4
	 2.37
	  	 “Return on Sales”
	  	4
	 2.38
	  	 “Revenue”
	  	4
	 2.39
	  	 “Rule 16b-3”
	  	4
	 2.40
	  	 “Section 16 Person”
	  	5
	 2.41
	  	 “Shareholder Return”
	  	5
	 2.42
	  	 “Shares”
	  	5
	 2.43
	  	 “Stock Appreciation Right”
	  	5
	 2.44
	  	 “Subsidiary”
	  	5
	 2.45
	  	 “Termination of Service”
	  	5
	 2.46
	  	 “VAI”
	  	5
		
	 Section 3 ADMINISTRATION
	  	5
			
	 3.1
	  	The Committee	  	5
	 3.2
	  	Authority of the Committee	  	5
	 3.3
	  	Delegation by the Committee	  	6
	 3.4
	  	Non-employee Directors	  	6
	 3.5
	  	Decisions Binding	  	6
		
	 Section 4 SHARES SUBJECT TO THE PLAN
	  	6
			
	 4.1
	  	Number of Shares	  	6
	 4.2
	  	Lapsed Awards	  	6
	 4.3
	  	Adjustments in Awards and Authorized Shares	  	7
		
	 Section 5 STOCK OPTIONS
	  	7
			
	 5.1
	  	 Grant of Options
	  	7
	 5.2
	  	Award Agreement	  	7
	 5.3
	  	Exercise Price	  	7
	 5.3.1
	  	 Non-qualified Stock Options
	  	7
	 5.3.2
	  	 Incentive Stock Options
	  	7
	 5.3.3
	  	 Substitute Options
	  	8
	 5.4
	  	Expiration of Options	  	8
	 5.4.1
	  	 Expiration Dates
	  	8
	 5.4.2
	  	 Death of Participant
	  	8
	 5.4.3
	  	 Committee Discretion
	  	8
	 5.5
	  	Exercisability of Options	  	8
	 5.6
	  	Payment	  	9
	 5.7
	  	Restrictions on Share Transferability	  	9
	 5.8
	  	Certain Additional Provisions for Incentive Stock Options	  	9
	 5.8.1
	  	 Exercisability
	  	9
	 5.8.2
	  	 Termination of Service
	  	9
	 5.8.3
	  	 Company and Subsidiaries Only
	  	9
	 5.8.4
	  	 Expiration
	  	10
	 5.9
	  	Grant of Reload Options	  	10

  

 ii 

	 Section 6 STOCK APPRECIATION RIGHTS
	  	10
			
	 6.1
	  	Grant of SARS	  	10
	 6.2
	  	Exercise Price and Other Terms	  	10
	 6.3
	  	SAR Agreement	  	10
	 6.4
	  	Expiration of SARS	  	10
	 6.5
	  	Payment of SAR Amount	  	10
	 6.6
	  	Payment Upon Exercise of SAR	  	11
		
	 Section 7 RESTRICTED STOCK
	  	11
			
	 7.1
	  	Grant of Restricted Stock	  	11
	 7.2
	  	Restricted Stock Agreement	  	11
	 7.3
	  	Transferability	  	11
	 7.4
	  	Other Restrictions	  	11
	 7.4.1
	  	 General Restrictions
	  	11
	 7.4.2
	  	 Section 162(m) Performance Restrictions
	  	11
	 7.4.3
	  	 Legend on Certificates
	  	12
	 7.5
	  	 Removal of Restrictions
	  	12
	 7.6
	  	 Voting Rights
	  	12
	 7.7
	  	 Dividends and Other Distributions
	  	12
	 7.8
	  	 Return of Restricted Stock to Company
	  	12
		
	 Section 8 PERFORMANCE UNITS AND PERFORMANCE SHARES
	  	12
			
	 8.1
	  	Grant of Performance Units and Shares	  	12
	 8.2
	  	Initial Value	  	12
	 8.3
	  	Performance Objectives and Other Terms	  	13
	 8.3.1
	  	 General Performance Objectives
	  	13
	 8.3.2
	  	 Section 162(m) Performance Objectives
	  	13
	 8.4
	  	Earning of Performance Units and Performance Shares	  	13
	 8.5
	  	Form and Timing of Payment	  	13
	 8.6
	  	Cancellation	  	13
		
	 Section 9 NON-EMPLOYEE DIRECTORS
	  	14
			
	 9.1
	  	Granting of Options	  	14
	 9.1.1
	  	 Non-employee Directors
	  	14
	 9.1.2
	  	 Chairman
	  	14
	 9.2
	  	Terms of Options	  	14
	 9.2.1
	  	 Option Agreement
	  	14
	 9.2.2
	  	 Exercise Price
	  	14
	 9.2.3
	  	 Exercisability
	  	14
	 9.2.4
	  	 Expiration of Options
	  	14
	 9.2.5
	  	 Non Incentive Stock Options
	  	15
	 9.2.6
	  	 Other Terms
	  	15
	 9.3
	  	Substitute Options	  	15
		
	 Section 10 MISCELLANEOUS
	  	15

  

 iii 

	 10.1
	  	No Effect on Employment or Service	  	15
	 10.2
	  	Participation	  	15
	 10.3
	  	Indemnification	  	16
	 10.4
	  	Successors	  	16
	 10.5
	  	Beneficiary Designations	  	16
	 10.6
	  	Nontransferability of Awards	  	16
	 10.7
	  	No Rights as Stockholder	  	16
	 10.8
	  	Withholding Requirements	  	16
	 10.9
	  	Withholding Arrangements	  	17
	 10.10
	  	Deferrals	  	17
		
	 Section 11 AMENDMENT, TERMINATION AND DURATION
	  	17
			
	 11.1
	  	Amendment, Suspension or Termination	  	17
	 11.2
	  	Duration of the Plan	  	17
		
	 Section 12 LEGAL CONSTRUCTION
	  	17
			
	 12.1
	  	Gender and Number	  	17
	 12.2
	  	Severability	  	18
	 12.3
	  	Requirements of Law	  	18
	 12.4
	  	Governing Law	  	18
	 12.5
	  	Captions	  	18

  
  

 iv 

 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
 OMNIBUS STOCK PLAN 
  
 SECTION 1 
 BACKGROUND, PURPOSE AND
DURATION 
  
 1.1 Effective Date. The Plan is effective
as of the date on which VAI distributes the Company’s Shares to the stockholders of VAI, subject to the approval of the Plan by a majority of the shares of the common stock of VAI which are present in person or by proxy and entitled to vote at
the 1999 Annual and Special meeting of the Stockholders of VAI. 
  
 The Plan, as amended, incorporates amendments approved by the Board on July 3, 2000 and November 17, 2000. Effective July 3, 2000, Sections 9.2.4(c) and 9.2.5 were, respectively, amended and deleted. Effective November 17, 2000, Section 5.5
was amended. 
  
 1.2 Purpose of the Plan. The Plan is
intended to increase incentives and to encourage Share ownership on the part of (1) employees of the Company and its Affiliates, (2) consultants who provide significant services to the Company and its Affiliates, and (3) directors of the Company who
are employees of neither the Company nor any Affiliate. The Plan also is intended to further the growth and profitability of the Company. The Plan is intended to permit the grant of Awards that qualify as performance-based compensation under section
162(m) of the Code. 
  
 SECTION 2 
 DEFINITIONS 
  
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
  
 2.1 “1934 Act” means the Securities Exchange Act of 1934,
as amended. Reference to a specific section of the 1934 Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation. 
  
 2.2 “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company. 
  
 2.3 “Award” means, individually or collectively, a grant
under the Plan of Non-qualified Stock Options, Incentive Stock Options, SARS, Restricted Stock, Performance Units or Performance Shares. 
  
 2.4 “Award Agreement” means the written agreement setting forth the terms and provisions applicable to each Award granted under the Plan.

  

 1 

 2.5 “Board” means the Board of Directors of the Company. 
  
 2.6 “Code” means the Internal Revenue Code of 1986, as
amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation amending,
supplementing or superseding such section or regulation. 
  
 2.7
“Committee” means the committee appointed by the Board (pursuant to Section 3.1) to administer the Plan. 
  
 2.8 “Company” means Varian Semiconductor Equipment Associates, Inc., a Delaware corporation, or any successor thereto. 
  
 2.9 “Consultant” means any consultant, independent
contractor, or other person who provides significant services to the Company or its Affiliates, but who is neither an Employee nor a Director. 
  
 2.10 “Direct” means any individual who is a member of the Board. 
  
 2.11 “Disability” means a permanent and total disability within the meaning of section 22(e)(3) of the
Code, provided that in the case of Awards other than Incentive Stock Options, the Committee in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the
Committee from time to time. 
  
 2.12 “EBIT”
means as to any Performance Period, the Company’s or a business unit’s income before reductions for interest and taxes, determined in accordance with generally accepted accounting principles. 
  
 2.13 “EBITDA” means as to any Performance Period. the
Company’s or a business unit’s income before reductions for interest, taxes, depreciation and amortization, determined in accordance with generally accepted accounting principles. 
  
 2.14 “Earnings Per Share” means as to any Performance
Period, the Company’s or a business unit’s Net Income, divided by a weighted average number of common shares outstanding and dilutive common equivalent shares deemed outstanding,, determined in accordance with generally accepted accounting
principles. 
  
 2.15 “Employee” means any
employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
  
 2.16 “Exercise Price” means the price at which a Share may be purchased by a Participant pursuant to the
exercise of an Option. 
  
 2.17 “Fair Market
Value” means the last quoted per share selling price for Shares on the relevant date, or if there were no sales on such date, the arithmetic mean of the highest and 

  

 2 

 
lowest quoted selling prices on the nearest day before and the nearest day after the relevant date, as determined by the Committee. Notwithstanding the
preceding, for federal, state and local income tax reporting purposes, fair market value shall be determined by the Committee in accordance with uniform and nondiscriminatory standards adopted by it from time to time. 
  
 2.18 “Fiscal Year” means the fiscal year of the Company.

  
 2.19 “Grant Date” means, with respect to an
Award, the date that the Award was granted. 
  
 2.20
“Incentive Stock Option” means an Option to purchase Shares which is designated as an Incentive Stock Option and is intended to meet the requirements of section 422 of the Code. 
  
 2.21 “Net Income” means as to any Performance Period, the
Company’s or a business unit’s income after taxes, determined in accordance with generally accepted accounting principles. 
  
 2.22 “Non-employee Director” means a Director who is all employee of neither the Company nor of any Affiliate. 
  
 2.23 “Non-qualified Stock Option” means an option to
purchase Shares which is not intended to be an Incentive Stock Option. 
  
 2.24 “Operating Cash Flow” means as to any Performance Period, the Company’s or a business unit’s sum of Net Income plus depreciation and amortization less capital expenditures plus changes in working capital
comprised of accounts receivable, inventories, other current assets, trade accounts payable, accrued expenses, product warranty, advance payments from customers and long-term accrued expenses, determined in accordance with generally acceptable
accounting principles. 
  
 2.25 “Option” means an
Incentive Stock Option or a Non-qualified Stock Option. 
  
 2.26
“Participant” means an Employee, Consultant, or Non-employee Director who has an outstanding Award. 
  
 2.27 “Performance Goals” means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a
Participant with respect to an Award. As determined by the Committee, the Performance Goals applicable to an Award may provide for a targeted level or levels of achievement using one or more of the following measures: (a) EBIT, (b) EBITDA, (c)
Earnings Per Share, (d) Net Income, (e) Operating Cash Flow, (f) Return on Assets, (g) Return on Equity, (h) Return on Sales, (i) Revenue, and (j) Shareholder Return. The Performance Goals may differ from Participant to Participant and from Award to
Award. Prior to the Determination Date, the Committee shall determine whether any significant element(s) shall be included in or excluded from the calculation of any Performance Goal with respect to any Participant. “Determination Date”
means the latest possible date that will not jeopardize an Award’s qualification as performance-based compensation under section 162(m) of the Code. 

  

 3 

 
Notwithstanding the previous sentence, for Awards not intended to qualify as performance-based compensation, “Determination Date” shall mean such
date as the Committee may determine in its discretion. 
  
 2.28
“Performance Period” means any fiscal period not to exceed three consecutive Fiscal Years, as determined by the Committee in its sole discretion. 
  
 2.29 “Performance Share” means a Performance Share granted to a Participant pursuant to Section 8.

  
 2.30 “Performance Unit” means a Performance
Unit granted to a Participant pursuant to Section 8. 
  
 2.31
“Period of Restriction” means the period during which shares of Restricted Stock are subject to forfeiture and/or restrictions on transferability. 
  
 2.32 “Plan” means the Varian Semiconductor Equipment Associates, Inc. Omnibus Stock Plan, as set forth in
this instrument and as hereafter amended from time to time. 
  
 2.33 “Restricted Stock” means an Award granted to a Participant pursuant to Section 7. 
  
 2.34 “Retirement” means, in the case of an Employee or a Non-employee Director, “Retirement” as defined pursuant to the
Company’s or the Board’s Retirement Policies, as they may be established from time to time. With respect to a Consultant, no Termination of Service shall be deemed to be on account of “Retirement.” 
  
 2.35 “Return on Assets” means as to any Performance Period,
the percentage equal to the Company’s or a business unit’s EBIT before incentive compensation, divided by average net Company or business unit, as applicable, assets, determined in accordance with generally accepted accounting principles.

  
 2.36 “Return on Equity” means as to any
Performance Period, the percentage equal to the Company’s Net Income divided by average stockholder’s equity, determined in accordance with generally accepted accounting principles. 
  
 2.37 “Return on Sales” means as to any Performance Period,
the percentage equal to the Company’s or a business unit’s EBIT before incentive compensation, divided by the Company’s or the business unit’s, as applicable, Revenue, determined in accordance with generally accepted accounting
principles. 
  
 2.38 “Revenue” means as to any
Performance Period, the Company’s or a business unit’s net sales, determined in accordance with generally accepted accounting principles. 
  
 2.39 “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, as amended, and any future regulation amending, supplementing or
superseding such regulation. 
  

 4 

 2.40 “Section 16 Person” means a person who, with respect to the Shares, is subject to
section 16 of the 1934 Act. 
  
 2.41 “Shareholder
Return” means as to any Performance Period, the total return (change in share price plus reinvestment of any dividends) of a Share. 
  
 2.42 “Shares” means shares of the Company’s common stock, $.0l par value. 
  
 2.43 “Stock Appreciation Right” or “SAR” means an
Award, granted alone, in connection or in tandem with a related Option, that pursuant to Section 6 is designated as a SAR. 
  
 2.44 “Subsidiary” means any corporation in an unbroken chain of corporations beginning, with the Company if each of the corporations
other than the last corporation in the unbroken chain then owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 2.45 “Termination of Service” means (a) in the case of an
Employee, a cessation of the employee-employer relationship between an Employee and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the
disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate; (b) in the case of a Consultant, a cessation of the service relationship between a Consultant and the
Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, or the disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous
re-engagement of the consultant by the Company or an Affiliate; and (c) in the case of a Non-employee Director, a cessation of the Non-employee Director’s service on the Board for any reason. 
  
 2.46 “VAI” means Varian Associates, Inc., a Delaware
corporation. 
  
 SECTION 3 
 ADMINISTRATION 
  
 3.1 The Committee. The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) Directors. The members of
the Committee shall be appointed from time to time by, and serve at the pleasure of, the Board. Each member of the Committee shall qualify as (a) a “non-employee director” under Rule 16b-3, and (b) an “outside director” under
section 162(m) of the Code. If it is later determined that one or more members of the Committee do not so qualify, actions taken by the Committee prior to such determination shall be valid despite such failure to qualify. 
  
 3.2 Authority of the Committee. It shall be the duty of the Committee
to administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a)
determine which Employees and Consultants shall be granted Awards, (b) prescribe the terms and conditions of the Awards (other than the Options granted to Non-employee Directors pursuant to Section 9), (c) interpret the Plan and the Awards, (d)
adopt 

  

 5 

 
such procedures and subplans as are necessary or appropriate to permit participation in the Plan by Employees, Consultants and Directors who are foreign
nationals or employed outside of the United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules. Notwithstanding any contrary
provision of the Plan, the Committee may reduce the amount payable under any Award (other than an Option) after the grant of such Award. 
  
 3.3 Delegation by the Committee. The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or any
part of its authority and powers under the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and powers (a) with respect to Section 16 Persons, (b) in any way which
would jeopardize the Plan’s qualification under Rule 16b-3, or (c) with respect to awards which are intended to qualify as performance-based compensation under section 162(m) of the Code. 
  
 3.4 Non-employee Directors. Notwithstanding any contrary provision of
this Section 3, the Board shall administer Section 9 of the Plan, and the Committee shall exercise no discretion with respect to Section 9. In the Board’s administration of Section 9 and the Options and any Shares granted to Non-employee
Directors, the Board shall have all of the authority and discretion otherwise granted to the Committee with respect to the administration of the Plan. 
  
 3.5 Decisions Binding. All determinations and decisions made by the Committee, the Board, and any delegate of the Committee pursuant to the
provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 
  
 SECTION 4 
 SHARES SUBJECT TO THE PLAN

  
 4.1 Number of Shares. Subject to adjustment as
provided in Section 4.3, the total number of Shares available for grant under the Plan shall not exceed 6,000,000, plus such number of Shares as are granted pursuant to substitute Options under Sections 5.3.3 and 9.3 in connection with the
distribution of Shares to the stockholders of VAI. Shares granted under the Plan may be either authorized but unissued Shares or treasury Shares. 
  
 4.2 Lapsed Awards. If an Award terminates, expires, or lapses for any reason, any Shares subject to such Award again shall be available to be the
subject of an Award. In addition, if any Shares are tendered to the Company (whether by physical delivery or attestation) as full or partial payment for the exercise of an Option or in satisfaction of a tax withholding obligation pursuant to an
Award, only the net Shares issued shall be deemed delivered for purposes of determining the maximum number of Shares that may be delivered under Section 4.1. Also, Shares issued pursuant to Awards assumed or granted in substitution of other awards
in connection with the acquisition by the Company of an unrelated entity shall not reduce the maximum number of Shares issuable under Section 4. 1. 
  

 6 

 4.3 Adjustments in Awards and Authorized Shares. In the event of any merger, reorganization,
consolidation, recapitalization, separation, liquidation, stock dividend, split-up, Share combination, or other change in the corporate structure of the Company affecting the Shares, the Committee shall adjust the number and class of Shares which
may be delivered under the Plan, the number, class, and price of Shares subject to outstanding Awards, and the numerical limit of Section 5.1 in such manner as the Committee (in its sole discretion) shall determine to be appropriate to prevent the
dilution or diminution of such Awards. In the case of Options granted to Non-employee Directors pursuant to Section 9, the foregoing, adjustments shall be made by the Board, and any such adjustments also shall apply to the future grants provided by
Section 9. Notwithstanding the preceding, the number of Shares subject to any Award always shall be a whole number. 
  
 SECTION 5 
 STOCK OPTIONS

  
 5.1 Grant of Options. Subject to the terms and
provisions of the Plan, Options may be granted to Employees and Consultants at any time and from time to time as determined by the Committee in its sole discretion. The Committee, in its sole discretion, shall determine the number of Shares subject
to each Option, provided that during any Fiscal Year, no Participant shall be granted Options covering more than 1,000,000 Shares. The Committee may grant Incentive Stock Options, Non-qualified Stock Options, or a combination thereof.

  
 5.2 Award Agreement. Each Option shall be evidenced by
an Award Agreement that shall specify the Exercise Price, the expiration date of the Option, the number of Shares to which the Option pertains, any conditions to exercise of the Option, and such other terms and conditions as the Committee, in its
discretion, shall determine. The Award Agreement shall specify whether the Option is intended to be an Incentive Stock Option or a Non-qualified Stock Option. 
  
 5.3 Exercise Price. Subject to the provisions of this Section 5.3, the Exercise Price for each Option shall be
determined by the Committee in its sole discretion. 
  
 5.3.1 Non-qualified Stock Options. In the case of a Non-qualified Stock Option, the Exercise Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. 
  
 5.3.2 Incentive Stock Options. In the case of an Incentive Stock
Option, the Exercise Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the Grant Date; provided, however, that if on the Grant Date, the Employee (together with persons whose stock ownership is attributed
to the Employee pursuant to section 424(d) of the Code) owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, the Exercise Price shall be not less than
one hundred and ten percent (110%) of the Fair Market Value of a Share on the Grant Date. 
  

 7 

 5.3.3 Substitute Options. Notwithstanding, the provisions of Sections 5.3.1 and 5.3.2, in the
event that the Company or an Affiliate consummates a transaction described in section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated corporation), persons who become Employees or Consultants on account of such
transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its sole discretion and consistent with section 424(a) of the Code, shall determine the
exercise price of such substitute Options. 
  
 5.4
Expiration of Options. 
  
 5.4.1 Expiration Dates.
Each Option shall terminate no later than the first to occur of the following events: 
  
 (a) The expiration of ten (10) years from the Grant Date; or 
  
 (b) The expiration of three (3) months from the date of the Participant’s Termination of Service for a reason other than the Participant’s death, Disability or Retirement; or 
  
 (c) The expiration of one (1) year from the date of the Participant’s
Termination of Service by reason of Disability; or 
  
 (d) The
expiration of three (3) years from the date of the Participant’s Retirement (subject to Section 5.8.2 regarding Incentive Stock Options); or 
  
 (e) The date of the Participant’s Termination of Service by the Company for cause (as determined by the Company); or 
  
 (f) The date for termination of the Option determined by the Committee in
its sole discretion and set forth in the written Award Agreement. 
  
 5.4.2 Death of Participant. Notwithstanding Section 5.4.1, if a Participant who is an Employee dies prior to the expiration of his or her Options, his or her Options shall be exercisable until the expiration of three (3) years after
the date of death. If a Participant who is a Consultant dies prior to the expiration of his or her Options, the Committee, in its discretion, may provide that his or her Options shall be exercisable for up to three (3) years after the date of
death. 
  
 5.4.3 Committee Discretion. Subject to
the limits of Sections 5.4.1 and 5.4.2, the Committee, in its sole discretion, (a) shall provide in each Award Agreement when each Option expires and becomes unexercisable, and (b) may, after an Option is granted and before such Option expires,
extend the maximum term of the Option (subject to Section 5.8.4 regarding Incentive Stock Options). 
  
 5.5 Exercisability of Options. Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions
as the Committee shall determine in its sole discretion. After an Option is granted, the Committee, in its sole discretion, may 

  

 8 

 
accelerate the exercisability of the Option. With respect to Options granted on or after November 17, 2000, if a Participant who is an Employee dies, incurs
a Disability or terminates service by reason of his or her Retirement, the exercisability of his or her Options shall be fully accelerated to the date of Termination of Service. With respect to Options granted prior to November 17, 2000, if a
Participant dies while an Employee, the exercisability of his or her Options shall be fully accelerated to the date of Termination of Service. 
  
 5.6 Payment. Options shall be exercised by the Participant’s delivery of a written notice of exercise to the Secretary of the Company (or its
designee), setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares. 
  
 Upon the exercise of any Option, the Exercise Price shall be payable to the Company in full in cash or its equivalent. The Committee, in its sole
discretion, also may permit exercise (a) by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Exercise Price, or (b) by any other means which the Committee, in its sole discretion,
determines to both provide legal consideration for the Shares, and to be consistent with the purposes of the Plan. 
  
 As soon as practicable after receipt of a written notification of exercise and full payment for the Shares purchased, the Company shall deliver to the
Participant (or the Participant’s designated broker), Share certificates (which may be in book entry form) representing such Shares. 
  
 5.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an Option
as it may deem advisable, including, but not limited to, restrictions related to applicable Federal securities laws, the requirements of any national securities exchange or system upon which Shares are then listed or traded, or any blue sky or state
securities laws. 
  
 5.8 Certain Additional Provisions
for Incentive Stock Options. 
  
 5.8.1 Exercisability.
The aggregate Fair Market Value (determined on the Grant Date(s)) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company and its
Subsidiaries) shall not exceed $100,000. 
  
 5.8.2
Termination of Service. If any portion of an Incentive Stock Option is exercised more than three (3) months after the Participant’s Termination of Service for any reason other than Disability or death (unless (a) the Participant dies
during such three-month period, and (b) the Award Agreement or the Committee permits later exercise), the portion so exercised shall be deemed a Non-qualified Stock Option. 
  
 5.8.3 Company and Subsidiaries Only. Incentive Stock Options may be granted only to persons who are employees of the
Company or a Subsidiary on the Grant Date. 
  

 9 

 5.8.4 Expiration. No Incentive Stock Option may be exercised after the expiration of ten (10)
years from the Grant Date; provided, however, that if the Option is granted to an Employee who, together with persons whose stock ownership is attributed to the Employee pursuant to section 424(d) of the Code, owns stock possessing, more than ten
percent (10%) of the total combined voting power of all classes of the stock of the Company or any of its Subsidiaries, the Option may not be exercised after the expiration of five (5) years from the Grant Date. 
  
 5.9 Grant of Reload Options. The Committee may provide in an Award
Agreement that a Participant who exercises all or part of an Option by payment of the Exercise Price with already-owned Shares, shall be granted an additional option (a “Reload Option”) for a number of shires of stock equal to the number
of Shares tendered to exercise the previously granted Option plus, if the Committee so determines, any Shares withheld or delivered in satisfaction of any tax withholding requirements. As determined by the Committee, each Reload option shall (a)
have a Grant Date which is the date as of which the previously granted Option is exercised, and (b) be exercisable on the same terms and conditions as the previously granted Option, except that the Exercise Price shall be determined as of the Grant
Date. 
  
 SECTION 6 
 STOCK APPRECIATION RIGHTS 
  
 6.1 Grant of SARS. Subject to the terms and conditions of the Plan, SARs may be granted to Employees and Consultants at any time and from time to
time as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion to determine the number of SARs granted to any Participant, provided that during any Fiscal Year, no Participant shall be granted SARs
covering more than 1,000,000 Shares. 
  
 6.2 Exercise
Price and Other Terms. The Committee, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of SARs granted under the Plan. However, the exercise price of an SAR shall be not less than one
hundred percent (100%) of the Fair Market Value of a Share on the Grant Date. 
  
 6.3 SAR Agreement. Each SAR grant shall be evidenced by an Award Agreement that shall specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the
Committee, in its sole discretion, shall determine. 
  
 6.4
Expiration of SARS. A SAR granted under the Plan shall expire upon the date determined by the Committee, in its sole discretion, and set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 5.4 also shall apply to
SARS. 
  
 6.5 Payment of SAR Amount. Upon exercise
of a SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 
  
 (a) The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times 
  

 10 

 (b) The number of Shares with respect to which the SAR is exercised. 
  
 6.6 Payment Upon Exercise of SAR. At the discretion of the Committee,
payment for a SAR may be in cash, Shares or a combination thereof. 
  
 SECTION 7 
 RESTRICTED STOCK 
  
 7.1 Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at any time and from
time to time, may grant Shares of Restricted Stock to Employees and Consultants in such amounts as the Committee, in its sole discretion, shall determine. The Committee, in its sole discretion, shall determine the number of Shares to be granted to
each Participant, provided that during any Fiscal Year, no Participant shall be granted more than 100,000 Shares of Restricted Stock. 
  
 7.2 Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement that shall specify the Period of
Restriction, the number of Shares granted, any price to be paid for the Shares, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines otherwise, Shares of Restricted Stock
shall be held by the Company as escrow agent until the restrictions on such Shares have lapsed. 
  
 7.3 Transferability. Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the
end of the applicable Period of Restriction. 
  
 7.4
Other Restrictions. The Committee, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate, in accordance with this Section 7.4. 
  
 7.4.1 General Restrictions. The Committee may set restrictions based
upon the achievement of specific performance objectives (Company-wide, business unit or individual), applicable federal or state securities laws, or any other basis determined by the Committee in its discretion. 
  
 7.4.2 Section 162(m) Performance Restrictions. For purposes of
qualifying grants of Restricted Stock as “performance-based compensation” under section 162(m) of the Code, the Committee, in its discretion, may set restrictions based upon the achievement of Performance Goals. The Performance Goals shall
be set by the Committee on or before the latest date permissible to enable the Restricted Stock to qualify as performance-based compensation” under section 162(m) of the Code. In granting Restricted Stock which is intended to qualify under
section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Restricted Stock under section 162(m) of the Code (e.g., in determining the
Performance Goals). 
  

 11 

 7.4.3 Legend on Certificates. The Committee, in its discretion, may legend the certificates
representing, Restricted Stock to give appropriate notice of such restrictions. For example, the Committee may determine that some or all certificates representing Shares of Restricted Stock shall bear the following legend: 
  
 “The sale or other transfer of the shares of stock represented by this
certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Varian Semiconductor Equipment Associates, Inc. Omnibus Stock Plan, and in a Restricted Stock Agreement. A copy
of the Plan and such Restricted Stock Agreement may be obtained from the Secretary of Varian Semiconductor Equipment Associates, Inc.” 
  
 7.5 Removal of Restrictions. Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan shall be released from escrow as
soon as practicable after the last day of the Period of Restriction. The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse, and remove any restrictions. After the restrictions have lapsed, the Participant
shall be entitled to have any legend or legends under Section 7.4 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant. 
  
 7.6 Voting Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may
exercise full voting rights with respect to those Shares, unless otherwise provided in the Award Agreement. 
  
 7.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock shall be entitled to
receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same restrictions on
transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
  
 7.8 Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not
lapsed shall revert to the Company and again shall become available for grant under the Plan. 
  
 SECTION 8 
 PERFORMANCE UNITS AND PERFORMANCE SHARES 
  
 8.1 Grant of Performance Units and Shares. Performance Units and
Performance Shares may be granted to Employees and Consultants at any time and from time to time, as shall be determined by the Committee, in its sole discretion. The Committee shall have complete discretion in determining the number of Performance
Units and Performance Shares granted to any Participant, provided that during any Fiscal Year no more than 100,000 Performance Units or Performance Shares may be granted to any Participant. 
  
 8.2 Initial Value. Each Performance Unit shall have an initial value
that is established by the Committee on or before the Grant Date, provided that such value shall not exceed the Fair Market Value of a Share on the Grant Date. Each Performance Share shall have an initial value equal to the Fair Market Value
of a Share on the Grant Date. 
  

 12 

 8.3 Performance Objectives and Other Terms. The Committee shall set performance objectives in its
discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units or Shares that will be paid out to the Participants. The Committee may set performance objectives based upon the achievement of
Company-wide, business unit, or individual goals, or any other basis determined by the Committee in its discretion. The time period during which the performance objectives must be met shall be called the “Performance Period.” Each Award of
Performance Units or Shares shall be evidenced by an Award Agreement that shall specify the Performance Period, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
  
 8.3.1 General Performance Objectives. The Committee may set
performance objectives based upon the achievement of Company-wide, business unit or individual goals, or any other basis determined by the Committee in its discretion. 
  
 8.3.2 Section 162(m) Performance Objectives. For purposes of qualifying grants of Performance Units or Shares as
“performance-based compensation” under section 162(m) of the Code, the Committee, in its discretion, may determine that the performance objectives applicable to Performance Units or Shares shall be based on the achievement of Performance
Goals. The Performance Goals shall be set by the Committee on or before the latest date permissible to enable the Performance Units or Shares to qualify as “performance-based compensation” under section 162(m) of the Code. In granting
Performance Units or Shares which are intended to qualify under section 162(m) of the Code, the Committee shall follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Performance Units
or Shares under section 162(m) of the Code (e.g., in determining the Performance Goals). 
  
 8.4 Earning of Performance Units and Performance Shares. After the applicable Performance Period has ended, the Participant shall be entitled to
receive a payout of the number of Performance Units or Shares earned during the Performance Period, depending upon the extent to which the applicable performance objectives have been achieved. After the grant of a Performance Unit or Share, the
Committee, in its sole discretion, may reduce or waive any performance objectives for Award. 
  
 8.5 Form and Timing of Payment. Payment of earned Performance Units or Performance Shares shall be made as soon as practicable after the expiration
of the applicable Performance Period. The Committee, in its sole discretion, may pay such earned Awards in cash, Shares or a combination thereof. 
  
 8.6 Cancellation. On the date set forth in the Award Agreement, all unearned or unvested Performance Units or Performance Shares shall be forfeited
to the Company, and again shall be available for grant under the Plan. 
  

 13 

 SECTION 9 
 NON-EMPLOYEE DIRECTORS 
  
 9.1 Granting of Options. 
  
 9.1.1 Non-employee
Directors. Each Non-employee Director shall be granted an Option to purchase 50,000 Shares (an “Initial Grant”) on the later of the Effective Date of the Plan or the date of the Non-employee Director’s appointment or election as a
Non-employee Director. Beginning on the first business day after the second Annual Meeting of Stockholders following, the Non-employee Director’s appointment or election, and on the first business day after each Annual Meeting of Stockholders
thereafter, for so long as the Non-employee Director serves as such, he or she annually shall be granted an Option for an additional 5,000 Shares (each a “Subsequent Grant”), but only if the Non-employee Director has continuously served as
such through the Grant Date. 
  
 9.1.2 Chairman.
Each Chairman of the Company who is a Non-employee Director shall be granted an Option to purchase 200,000 Shares (an “Initial Chairman’s Grant”) on the later of the Effective Date of the Plan or the date such individual becomes
Chairman. Any Initial Chairman’s Grant shall be in lieu of any Initial Grant or Subsequent Grant the Chairman otherwise would be entitled to under Section 9.1.1 while he or she serves as Chairman. If a Chairman ceases to serve as such but
remains a Non-employee Director, he or she shall be entitled to Subsequent Grants under Section 9.1.1, provided he or she has continuously served as a Non-employee Director through the applicable Grant Date. 
  
 9.2 Terms of Options. 
  
 9.2.1 Option Agreement. Each Option granted pursuant to this Section 9
shall be evidenced by a written stock option agreement which shall be executed by the Non-employee Director and the Company. 
  
 9.2.2 Exercise Price. The Exercise Price for the Shares subject to each Option granted pursuant to this Section 9 shall be one hundred percent
(100%) of the Fair Market Value of such Shares on the Grant Date. 
  
 9.2.3 Exercisability. Each Option granted pursuant to this Section 9 shall become exercisable in full one (1) year after the date the Option is granted. If a Non-employee Director incurs a Termination of
Service for a reason other than completion of his or her term as a Director, Retirement, death or Disability, his or her Options which are not exercisable on the date of such Termination shall never become exercisable. If the Termination of Service
is on account of completion of the Non-employee Director’s term, Retirement, death or Disability, the Option shall become exercisable in full on the date of the Termination of Service. 
  
 9.2.4 Expiration of Options. Each Option shall terminate upon the
first to occur of the following events: 
  
 (a) The
expiration of ten (10) years from the Grant Date; or 
  

 14 

 (b) The expiration of three (3) months from the date of the Non-employee Director’s Termination of
Service for a reason other than death, Disability, resignation or Retirement; or 
  
 (c) The expiration of ten (10) years from the Grant Date upon the Non-employee Director’s Termination of Service by reason of completion of the Participant’s term as a Director, disability, Retirement or
death1; or 
  
 (d) The expiration of one (1) month from the date of the Non-employee Director’s Termination of Service by reason of resignation. 
  
 9.2.5 Non Incentive Stock Options. Options granted pursuant to this
Section 9 shall not be designated as Incentive Stock Options. 
  
 9.2.6 Other Terms. All provisions of the Plan not inconsistent with this Section 9 shall apply to options granted to Non-employee Directors; provided, however, that Section 5.2 (relating to the Committee’s discretion to set the
terms and conditions of Options) shall be inapplicable with respect to Non-employee Directors. 
  
 9.3 Substitute Options. Notwithstanding the provisions of Section 9.2.2, in the event that the Company or an Affiliate consummates a transaction described in section 424(a) of the Code (e.g., the acquisition of
property or stock from all unrelated corporation), persons who become Non-employee Directors on account of such transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted,
the Committee, in its sole discretion and consistent with section 424(a) of the Code, shall determine the exercise price of such substitute Options. 
  
 SECTION 10 
 MISCELLANEOUS

  
 10.1 No Effect on Employment or Service. Nothing in
the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. For purposes of the Plan, transfer of employment of a Participant between the
Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Service, Employment with the Company and its Affiliates is on an at-will basis only. 
  
 10.2 Participation. No Employee or Consultant shall have the right to be selected to receive an Award under this
Plan, or, having been so selected, to be selected to receive a future Award. 

	1	Prior to the amendment of this Section 9.2.4(c), which is effective as of July 3, 2000, this Section provided that in the event of a Non-employee Director’s
Termination of Service due to death, Disability, Retirement or completion of term as a Director, each Option would terminate three (3) years from the date of the Non-employee Director’s Termination of Service. 

  

 15 

 10.3 Indemnification. Each person who is or shall have been a member of the Committee, or of the
Board, shall be indemnified and held harmless by the Company against and from (a) 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 or any Award Agreement, and (b) 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 claim, 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 Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless. 
  
 10.4 Successors. All obligations of the Company under the Plan, with
respect to Awards granted hereunder, 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 otherwise, of all or substantially all of the
business or assets of the Company. 
  
 10.5 Beneficiary
Designations. If permitted by the Committee, a Participant under the Plan may name a beneficiary or beneficiaries to whom any vested but unpaid Award shall be paid in the event of the Participant’s death. Each such designation shall revoke
all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the Committee. In the absence of any such designation, any vested benefits remaining unpaid at the Participant’s death shall be
paid to the Participant’s estate and, subject to the terms of the Plan and of the applicable Award Agreement, any unexercised vested Award may be exercised by the administrator or executor of the Participant’s estate. 
  
 10.6 Nontransferability of Awards. No Award granted under the Plan may
be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 10.5. All rights with respect to an Award granted to a
Participant shall be available during his or her lifetime only to the Participant. 
  
 10.7 No Rights as Stockholder. Except to the limited extent provided in Sections 7.6 and 7.7, no Participant (nor any beneficiary) shall have any of the rights or privileges of a stockholder of the Company with
respect to any Shares issuable pursuant to an Award (or exercise thereof), unless and until certificates representing, such Shares shall have been issued, recorded on the records of the Company or its transfer agents or registrars, and delivered to
the Participant (or beneficiary). 
  
 10.8 Withholding
Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to
satisfy federal, state, local and foreign taxes (including the Participant’s FICA obligation) required to be 

  

 16 

 
withheld with respect to such Award (or exercise thereof). Notwithstanding any contrary provision of the Plan, if a Participant fails to remit to the Company
such withholding amount within the time period specified by the Committee (in its discretion), the Participant’s Award may, in the Committee’s discretion, be forfeited and in such case the Participant shall not receive any of the Shares
subject to such Award. 
  
 10.9 Withholding Arrangements.
The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit or require a Participant to satisfy all or part of the tax withholding obligations in connection with an Award by (a) having the
Company withhold otherwise deliverable Shares, or (b) delivering to the Company already-owned Shares having a Fair Market Value equal to the amount required to be withheld. The amount of the withholding requirement shall be deemed to include any
amount which the Committee determines, not to exceed the amount determined by using the maximum federal, state, local or foreign jurisdiction marginal income tax rates applicable to the Participant with respect to the Award on the date that the
amount of tax to be withheld is to be determined. The Fair Market Value of the Shares to be withheld or delivered shall be determined as of the date that the taxes are required to be withheld. 
  
 10.10 Deferrals. The Committee, in its sole discretion, may permit a
Participant to defer receipt of the payment of cash or the delivery of Shares that would otherwise be delivered to a Participant under the Plan. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the
Committee in its sole discretion. 
  
 SECTION 11 

AMENDMENT, TERMINATION AND DURATION 
  
 11.1 Amendment, Suspension or Termination. The Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and
for any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any Award theretofore granted to such Participant. No Award may be granted during
any period of suspension or after termination of the Plan. 
  
 11.2 Duration of the Plan. The Plan shall commence on the date specified herein, and subject to Section 11.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. However, without
further stockholder approval, no Incentive Stock Option may be granted under the Plan after ten (10) years from the Effective Date. 
  
 SECTION 12 
 LEGAL CONSTRUCTION

  
 12.1 Gender and Number. Except where otherwise
indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
  

 17 

 12.2 Severability. In the event 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. 
  
 12.3 Requirements of Law. The granting of Awards and the issuance of
Shares under the Plan 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. 
  
 12.4 Governing Law. The Plan and all Award Agreements shall be
construed in accordance with and governed by the laws of the State of Delaware, but without regard to its conflict of law provisions. 
  
 12.5 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the
Plan. 
  
 EXECUTION 
  
 IN WITNESS WHEREOF, Varian Semiconductor Equipment Associates, Inc., by its
duly authorized officer, has executed the Plan on the date indicated below. 
  

	 	  	 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC.

			
	 Dated:
                            
	  	 By:
	 	  

	 	  	 	 	 Name:

	 	  	 	 	 Title:

  
  

 18 

 AMENDMENT TO OMNIBUS STOCK PLAN 
 OF 
 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
  
 The Omnibus Stock Plan (the “Plan”) of Varian Semiconductor
Equipment Associates, Inc. is hereby amended as follows: 
  
 (1) Section 6
(“Stock Appreciation Rights”), Section 7 (“Restricted Stock”) and Section 8 (“Performance Units and Performance Shares”) are deleted from the Plan. 
  
 (2) Section 5.4.1(a) of the Plan is amended to read in its entirety as follows: 
  
 “(a) The expiration of seven (7) years from the Grant Date; or”

  
 (3) Section 5.4.1(d) of the Plan is amended to read in its entirety as
follows: 
  
 “The expiration of seven (7) years from the
Grant Date in the case of the Participant’s Retirement (subject to Section 5.8.2 regarding Incentive Stock Options); or” 
  
 (4) Section 9.2.4(a) of the Plan is amended to read in its entirety as follows: 
  

“(a) The expiration of seven (7) years from the Grant Date; or” 
  
 (5) Section 9.2.4(c) of the Plan is amended to read in its entirety as follows: 
  
 “The expiration of seven (7) years from the Grant Date in the case of
the Non-employee Director’s Termination of Service by reason of completion of the Participant’s term as a Director, disability, Retirement or death; or” 
  
 (6) The amendments contained in Sections 1 through 5 above shall become effective upon approval by the Board of Directors. 
  
 Approved by the Board of Directors on November 8, 2002 

 AMENDMENT NO. 2 TO OMNIBUS STOCK PLAN 
 OF 
 VARIAN SEMICONDUCTOR EQUIPMENT ASSOCIATES, INC. 
  
 The Omnibus Stock Plan (the “Plan”) of Varian Semiconductor
Equipment Associates, Inc., as amended, is hereby further amended as follows: 
  

	1.	That Section 9.1.1 of the Plan be and hereby is amended to reads in its entirety as follows: 

  

	 	“9.1.1	Non-employee Directors. Each Non-employee Director shall be granted an Option to purchase 5,000 Shares (an “Initial Grant”) on the later of the Effective Date of
the Plan or the date of the Non-employee Director’s appointment or election as a Non-employee Director. Beginning on the first business day after the second Annual Meeting of Stockholders following, the Non-employee Director’s appointment
or election, and on the first business day after each Annual Meeting of Stockholders thereafter, for so long as the Non-employee Director serves as such, he or she annually shall be granted an Option for an additional 3,000 Shares (each a
“Subsequent Grant”), but only if the Non-employee Director has continuously served as such through the Grant Date.” 

  

	2.	This Amendment No. 2 shall become effective upon approval by the Board of Directors. 

  
 Approved by the Board of Directors on August 15, 2003

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