Document:

exv10w01

Exhibit 10.01

BROOKS AUTOMATION, INC.

AMENDED AND RESTATED 2000 EQUITY INCENTIVE PLAN 

(formerly known as the 2000 Combination Stock Option Plan)

Restated as of December 29, 2008

Section 1. Purpose

     The purpose of the Brooks Automation, Inc. Amended and Restated 2000 Equity Incentive Plan
(the “Plan”) is to attract and retain key employees, independent directors, consultants and
advisors. The Plan provides an incentive for these Participants to assist Brooks Automation, Inc.
(the “Company”) to achieve long-range performance goals, and to enable them to participate in the
long-term growth of the Company.

Section 2. Definitions

	(a)	 	“Affiliate” means any corporation or other entity that stands in a relationship to the
Company that would result in the Company and such corporation or other entity being treated as
one employer under Section 414(b) or Section 414(c) of the Code, except that in determining
eligibility for the grant of a Stock Option or SAR by reason of service for an Affiliate,
Sections 414(b) and 414(c) of the Code shall be applied by substituting “at least 50%” for “at
least 80%” under Section 1563(a)(1), (2) and (3) of the Code and Treas. Regs. § 1.414(c)-2;
provided, that to the extent permitted under Section 409A, “at least 20%” shall be used in
lieu of “at least 50%”; and further provided, that the lower ownership threshold described in
this definition (50% or 20% as the case may be) shall apply only if the same definition of
affiliation is used consistently with respect to all compensatory stock options or stock
awards (whether under the Plan or another plan). The Company may at any time by amendment
provide that different ownership thresholds (consistent with Section 409A of the Code) apply.
Notwithstanding the foregoing provisions of this definition, except as otherwise determined by
the Committee a corporation or other entity shall be treated as an Affiliate only if its
employees would be treated as employees of the Company for purposes of the rules promulgated
under the Securities Act of 1933, as amended, with respect to the use of Form S-8.
	 
	(b)	 	“Award” means any Option, Stock Appreciation Right, Performance or Award Share, or Restricted
Stock awarded under the Plan.
	 
	(c)	 	“Board” means the Board of Directors of the Company.
	 
	(d)	 	“Code” means the Internal Revenue Code of 1986, as amended from time to time.
	 
	(e)	 	“Committee” means the Compensation Committee of the Board, or such other Committee of not
less than two independent members of the Board appointed by the Board to administer the Plan.
If at any time the Compensation Committee consists of members, one or more of whom do not
qualify as independent, non-employee or outside directors (for purposes of applicable stock
exchange rules, the requirements of Rule 16b-3 promulgated under the Exchange Act, and the
requirements of Section 162(m) of the Code), it shall act in respect of the Plan through a
subcommittee of two or more members, all of whom so qualify, and all references herein to the
Committee shall be deemed to refer to such subcommittee.
	 
	(f)	 	“Common Stock” or “Stock” means the Common Stock, par value $.01 per share, of the Company.
	 
	(g)	 	“Company” means Brooks Automation, Inc.

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	(h)	 	“Covered Transaction” means any of (i) a consolidation, merger, or similar transaction or
series of related transactions, including a sale or other disposition of stock, in which the
Company is not the surviving corporation or which results in the acquisition of all or
substantially all of the Company’s then outstanding common stock by a single person or entity
or by a group of persons and/or entities acting in concert, (ii) a sale or transfer of all or
substantially all the Company’s assets, or (iii) a dissolution or liquidation of the Company.
Where a Covered Transaction involves a tender offer that is reasonably expected to be followed
by a merger described in clause (i) (as determined by the Committee), the Covered Transaction
shall be deemed to have occurred upon consummation of the tender offer.
	 
	(i)	 	“Designated Beneficiary” means the beneficiary designated by a Participant, in a manner
determined by the Committee, to receive amounts due or exercise rights of the Participant in
the event of the Participant’s death. In the absence of an effective designation by a
Participant, Designated Beneficiary shall mean the Participant’s estate.
	 
	(j)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or
any successor statue.
	 
	(k)	 	“Fair Market Value” means, (i) the closing sales price, if any, on a national securities
exchange or automated quotation system on the date as of which Fair Market Value is being
determined or, if none, shall be the closing sales price on the nearest trading date before
that date; and (ii) if the Common Stock is then traded on an exchange or system which does not
have sale price reporting, the mean between the average of the “Bid” and the average of the
“Ask” prices, if any, as reported for the date as of which Fair Market Value is being
determined. Fair Market Value shall be determined in a manner consistent with the
requirements under Section 409A of the Code.
	 
	(l)	 	“Incentive Stock Option” means an option to purchase shares of Common Stock awarded to a
Participant under Section 6 which is intended to meet the requirements of Section 422 of the
Code or any successor provision.
	 
	(m)	 	“Non-Qualified Stock Option” means an option to purchase shares of Common Stock, awarded to a
Participant under Section 6, which does not meet the requirements of Section 422 of the Code
or any successor provision. Each option granted under the Plan shall be deemed to be, by its
terms, a Non-Qualified Stock Option unless it is expressly designated as an Incentive Stock
Option.
	 
	(n)	 	“Option” means a Nonqualified Stock Option or Incentive Stock Option.
	 
	(o)	 	“Participant” means a person eligible pursuant to Section 3 hereof and selected by the
Committee to receive an Award under the Plan.
	 
	(p)	 	“Performance Cycle” or “Cycle” means the period of time selected by the Committee during
which performance is measured for the purpose of determining the extent to which a Performance
Award has been earned.
	 
	(q)	 	“Performance Award” means an Award awarded to a Participant under Section 8 that is subject
to one or more specified performance conditions, other than the mere passage of time, the
satisfaction of which is a condition for the grant, exercisability, vesting or full enjoyment
of an Award. The term “specified performance condition” means, in the case of Performance
Awards

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	 	 	other than Options or SARs, an objectively determinable measure of performance relating to any
or any combination of the following (measured either absolutely or by reference to an index or
indices and determined either on a combined basis or, as the context permits, on a divisional,
subsidiary, line of business, project or geographical basis or in combinations thereof): sales;
revenues; assets; expenses; earnings before or after deduction for all or any portion of
interest, taxes, depreciation or amortization, whether or not on a continuing operations or an
aggregate or per share basis; return on equity, investment, capital or assets; one or more
operating ratios; borrowing levels, leverage ratios or credit rating; market share; capital
expenditures; cash flow; stock price; stockholder return; sales of particular products or
services; customer acquisition or retention; acquisitions and divestitures (in whole or in
part); joint ventures and strategic alliances; spin-offs, split-ups and the like;
reorganizations; or recapitalizations, restructurings, financings (issuances of debt or equity)
or refinancings. Such criteria and any targets with respect thereto determined by the Committee
need not be based on an increase, a positive or improved result or avoidance of loss. To the
extent consistent with the requirements for satisfying the performance-based compensation
exception under Section 162(m), the Committee may provide in the case of any Award intended to
qualify for such exception that one or more of the criteria applicable to such Award will be
adjusted in an objectively determinable manner to reflect events (for example, but without
limitation, acquisitions or dispositions) occurring during the performance period that affect
the applicable criteria.

	(r)	 	“Permanent Disability” has the meaning specified in Section 22(e)(3) of the Code.
	 
	(s)	 	“Restricted Period” means the period of time selected by the Committee during which a share
of Restricted Stock may be forfeited to the Company.
	 
	(t)	 	“Restricted Stock” means shares of Common Stock subject to forfeiture, awarded to a
Participant under Section 9.
	 
	(u)	 	“Stock Appreciation Right” or “SAR” means a right to receive any excess in value of shares of
Common Stock over the exercise price, awarded to a Participant under Section 7.
	 
	(v)	 	“Stock Unit” means an award of Common Stock and/or other rights granted as units that are
valued in whole or in part by reference to, or otherwise based on, the value of Common Stock,
awarded to a Participant under Section 10.

Section 3. Eligibility

     All key employees, independent directors, consultants and advisors of the Company or any
Affiliate capable of contributing significantly to the successful performance of the Company, other
than a person who has irrevocably elected not to be eligible, are eligible to be selected by the
Committee to be Participants in the Plan.

Section 4. Stock Available for Awards

	(a)	 	Subject to adjustment under subsection (b), Awards may be made under the Plan to acquire not
in excess of 9,000,000 shares of Company Common Stock. Subject to adjustment under subsection
(b), the maximum aggregate number of shares of the Company’s Common Stock for which option
grants may be made to any person during any fiscal year shall be 500,000 shares and the maximum aggregate number of shares of the Company’s Common Stock for which 

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	 	 	other awards
may be made to any one person during any fiscal year shall be 250,000 shares; provided, however,
that up to an additional 100,000 shares of Common Stock may be granted as other awards during
any fiscal year to the Chief Executive Officer of the Company as an inducement to become
employed (or reemployed) by the Company. If any Award in respect of shares of Common Stock
expires or is terminated unexercised or is forfeited for any reason or settled in a manner that
results in fewer shares outstanding than were initially awarded, including without limitation
the surrender of shares in payment for the Award or any tax obligation thereon, the shares
subject to such Award or so surrendered, as the case may be, to the extent of such expiration,
termination, forfeiture or decrease, shall again be available for award under the Plan. Shares
issued under the Plan may consist in whole or in part of authorized but unissued shares or
treasury shares. No Incentive Stock Option may be issued after the following dates: (x)
January 6, 2010 with respect to the 1,000,000 shares of the Company’s Common Stock authorized
for issuance hereunder approved by the stockholders of the Company on February 24, 2000; (y)
December 13, 2011 with respect to the additional 5,000,000 shares of the Company’s Common Stock
authorized for issuance hereunder approved by the stockholders of the Company on May 13, 2002,
and (z) January 25, 2016 with respect to the additional 3,000,000 shares of the Company’s Common
Stock authorized for issuance hereunder approved by the stockholders of the Company on March 7,
2006.
		 	 
	(b)	 	In the event that the Committee determines that any stock dividend, recapitalization,
reorganization, merger, consolidation, or other similar transaction affects the Common Stock
such that an adjustment is required in order to preserve the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall equitably adjust any or
all of (i) the number and kind of shares in respect of which Awards may be made under the
Plan, (ii) the number and kind of shares subject to outstanding Awards, and (iii) the award,
exercise or conversion price with respect to any of the foregoing, and if considered by the
Committee to be appropriate, the Committee may make provision for a cash payment with respect
to an outstanding Award, provided that the number of shares subject to any Award shall always
be a whole number.

Section 5. Administration

	(a)	 	The Plan shall be administered by the Committee. Except where the full Board of Directors
serves as the Committee, the Committee shall serve at the pleasure of the Board, which may
from time to time appoint additional members of the Committee, remove members and appoint new
members in substitution for those previously appointed, and fill vacancies however caused. A
majority of the Committee shall constitute a quorum and the acts of a majority of the members
present at any meeting at which a quorum is present shall be deemed the action of the
Committee. To the extent permitted by applicable law, the Committee may delegate (i) to one
or more if its members such of its duties, powers and responsibilities as it may determine;
(ii) to one or more officers of the Company the power to grant rights or options to the extent
permitted by Section 157(c) of the General Corporation Law of the State of Delaware; (iii) to
one or more officers of the Company the authority to allocate other Awards among such persons
(other than officers of the Company) eligible to receive Awards under the Plan as such
delegated officer or officers determine consistent with such delegation, provided, that with
respect to any delegation described in this clause (iii), the Committee (or a properly
delegated member or members of the Committee) shall have authorized the issuance of a
specified number of shares of stock under such Awards and shall have specified the
consideration, if any, to be paid therefor; and (iv) to such employees or other persons as it
determines such ministerial tasks as it deems appropriate. In the event of any delegation
described in the preceding sentence, the term “Committee” shall include the person or persons
so delegated to the extent of such delegation.
	 
	(b)	 	Subject to the express provisions of this Plan and provided that all actions taken shall be
consistent with the purposes of the Plan, the Committee shall have full and complete authority
and the sole discretion to: (i) determine those persons eligible under Section 3; (ii) select
those 

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	 	 	persons to whom Awards shall be granted under the Plan; (iii) determine the time or times
when Awards shall be granted; (iv) establish the terms and conditions upon which Awards may be
exercised; (v) alter any restrictions or conditions upon any Awards; and (vi) adopt rules and
regulations, establish, define and/or interpret any other terms and conditions, and make all
other determinations (which may be on a case-by-case basis) deemed necessary or desirable for
the administration of the Plan.
		 	 
	(c)	 	The Terms of each type of Award need not be identical, and the Committee need not treat
Participants uniformly. Except as otherwise provided by the Plan or a particular Award, any
determination with respect to an Award may be made by the Committee at the time of Award or at
any time thereafter.
	 
	(d)	 	In making its determinations hereunder, the Committee shall take into account the nature of
the services rendered or to be rendered by the Participant, their present and potential
contributions to the success of the Company, and such other factors as the Committee, in its
discretion, shall deem relevant in order to accomplish the purposes of the Plan.

Section 6. Stock Options

	(a)	 	General. Subject to the provisions of the Plan, the Committee may award Incentive
Stock Options and Non-Qualified Stock Options and determine the number of shares to be covered
by each Option, the option price therefore and the conditions and limitations applicable to
the exercise of the Option. Any Option granted under this Plan shall be upon such terms and
conditions not inconsistent with this Plan as the Committee may determine. At the time of
grant of any Option, the Committee shall specify whether the Option is intended to be an
Incentive Stock Option or a Non-Qualified Stock Option.
	 
	(b)	 	Price. The price at which any shares of Stock may be purchased pursuant to the
exercise of an Option shall be determined by the Committee but may not be less than the
greater of (i) the minimum legal consideration required under the laws of the jurisdiction in
which the Company is then organized or (ii) the Fair Market Value of the Stock on the date of
grant of the Option.
	 
	(c)	 	Re-pricing. The Committee shall not reprice an Option once it has been granted under
this Plan by reducing the exercise price of the Option or canceling an Option and regranting a
new Option for a similar number of shares at a lower price, except as expressly provided in
Section 11(f), (g) or (h).
	 
	(d)	 	Period of Option.  Each Option granted under this Plan shall continue in effect for
such period not exceeding seven years as the Committee shall determine.
	 
	(e)	 	Exercise of Options:

	 	(i)	 	Options may be exercised in whole or in part at such time and in
such manner as the Committee may determine.
	 
	 	(ii)	 	The purchase price of shares of Stock upon exercise of an Option
shall be paid by the Option holder in full upon exercise and may be paid as the
Committee may determine in its sole discretion in any combination of: (i) cash or
check acceptable to the Committee and payable to the order of the Company; (ii)
delivery of shares of Common Stock (valued at Fair Market Value at the date of

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	 	 	 	purchase of the Common Stock subject to the Option); or (iii) such other means
as the Committee may permit; provided, however, that payment of the
exercise price by delivery of shares of Common Stock of the Company owned by the
Option holder may be made only if such payment does not result in a charge to
earnings for financial accounting purposes, as determined by the Committee.
		 	 
	 	(iii)	 	With the consent of the Committee, payment of the exercise price may
also be made by delivery of a properly executed exercise notice to the Company,
together with a copy of irrevocable instructions to a broker to deliver promptly to
the Company the payment to pay the exercise price. To facilitate such
arrangements, the Company may enter into agreements for coordinating procedures
with one or more securities brokerage firms. The date of delivery of such exercise
notices shall be deemed the date of exercise.
	 
	 	(iv)	 	The Committee may impose such conditions with respect to the exercise
of Options, including conditions relating to applicable federal or state securities
laws, as it considers necessary or advisable, including making the Common Stock
issued upon exercise subject to restrictions on vesting or transferability, or to
risk of forfeiture, upon the happening of such events as the Committee may
determine, any of which may be accelerated or waived in the Committee’s sole
discretion.
	 
	 	(v)	 	No shares of Common Stock shall be issued upon exercise of any Option
under this Plan until full payment in the form approved by the Committee has been
made and all other legal requirements applicable to the issuance or transfer of
such shares and such other requirements as are consistent with the Plan have been
complied with to the satisfaction of the Committee.

Section 7. Stock Appreciation Rights

	(a)	 	Subject to the provisions of the Plan, the Committee may grant Awards under the Plan of Stock
Appreciation Rights to Participants.
	 
	(b)	 	The base value from which appreciation is to be measured for a Stock Appreciation Right shall
be an amount (payable in cash or stock) determined by the Committee, but in no event shall
such amount be less than the greater of (i) the Fair Market Value of a share of Common Stock
on the date the Stock Appreciation Right is granted or (ii) the minimum amount permitted by
applicable laws, rules or policies of any regulatory authority or stock exchange. Each Stock
Appreciation Right granted shall entitle a Participant upon exercise to an amount equal to (i)
excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B)
the base value from which appreciation is to be measured, times (ii) the number of shares of
Common Stock covered by the exercisable portion of the Stock Appreciation Right. Stock
Appreciation Rights may be exercised from time to time upon actual receipt by the Company of
written notice of exercise stating the portion of the Stock Appreciation Right that is being
exercised. No fractional shares will be issued in payment for Stock Appreciation Rights. If
there are fractional shares, then such fractional shares shall be rounded down to the next
whole share.
		 	 
	(c)	 	The Company may impose, in its sole discretion, such conditions upon the exercisability or
transferability of Stock Appreciation Rights as it may deem fit. A Stock Appreciation Right

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		 	shall expire on a date designated by the Committee that is not later than seven years after
the date of grant of the Stock Appreciation Right. 

Section 8. Performance Awards

	(a)	 	Subject to the provisions of the Plan, the Committee may grant Awards of Performance Awards
and determine the number of such shares for each Performance Cycle and the duration of each
Performance Cycle. There may be more than one Performance Cycle in existence at any one time,
and the duration of Performance Cycles may differ from each other. The payment value of
Performance Awards shall be equal to the product of (A) the number of shares granted times (B)
the Fair Market Value of the Common Stock on the date the Performance Awards are earned or, in
the discretion of the Committee, on the date the Committee determines that the Performance
Awards have been earned.
	 
	(b)	 	The Committee shall establish performance goals for each Performance Cycle for the purpose of
determining the extent to which Performance Awards awarded for such Performance Cycle are
earned, on the basis of such criteria and to accomplish such objectives as the Committee may
from time to time select. During any Performance Cycle, the Committee may adjust the
performance goals for such Performance Cycle as it deems equitable in recognition of unusual
or non-recurring events affecting the Company, changes in applicable tax laws or accounting
principles, or such other factors as the Committee may determine.
	 
	(c)	 	As soon as practicable after the end of a Performance Cycle, the Committee shall determine
the number of Performance Awards which have been earned on the basis of the Participant’s
satisfaction of established performance goals. The payment values of earned Performance
Awards shall be distributed to the Participant or, if the Participant has died, to the
Participant’s Designated Beneficiary, as soon as practicable after the Committee’s
determination. The Committee shall determine, at or after the time the Award is granted,
whether payment values will be settled in whole or in part in cash or other property,
including Common Stock.

Section 9. Restricted Stock

	(a)	 	Subject to the provisions of the Plan, the Committee may grant an Award of Restricted Stock
and determine the duration of the Restricted Period during which, and the conditions under
which, the shares of Restricted Stock may be forfeited to the Company and the other terms and
conditions of such Awards. Shares of Restricted Stock may be issued for no cash consideration
or such minimum consideration as may be required by applicable law.
	 
	(b)	 	Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered, except as permitted by the Committee, during the Restricted Period. Shares of
Restricted Stock shall be evidenced in such manner as the Committee may determine. Any
certificates issued in respect of shares of Restricted Stock shall be registered in the name
of the Participant and unless otherwise determined by the Committee, deposited by the
Participant, together with a stock power endorsed in blank, with the Company. At the
expiration of the Restricted Period, the Company shall deliver such certificates to the
Participant or if the Participant has died, to the Participant’s Designated Beneficiary.

Section 10. Stock Units

	(a)	 	Subject to the provisions of the Plan, the Committee may grant Awards of Stock Units subject
to such terms, restrictions, conditions, performance criteria, vesting requirements and
payment rules as the Committee shall determine.
	 
	(b)	 	Shares of Common Stock awarded in connection with an Award of Stock Units shall be issued for
no cash consideration or such minimum consideration as may be required by applicable law.

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Section 11. General Provisions Applicable to Awards

	(a)	 	Documentation. Each Award under the Plan shall be evidenced by a written document
delivered to the Participant specifying the terms and conditions thereof and containing such
other terms and conditions not inconsistent with the provisions of the Plan as the Committee
considers necessary or advisable to achieve the purposes of the Plan or comply with applicable
tax and regulatory laws and accounting principles. The date of Award hereunder shall be the
date upon which such Award is voted by the Committee, unless such vote provides otherwise.
	 
	(b)	 	Committee Discretion. Each type of Award may be made alone, in addition to or in
relation to any other type of Award. Except as otherwise provided by the Plan or a particular
Award, any determination with respect to an Award may be made by the Committee at the time of
award or at any time thereafter.
	 
	(c)	 	Settlement. The Committee shall determine whether Awards are settled in whole or in
part in cash, Common Stock, other securities of the Company, Awards or other property.
	 
	(d)	 	Additional Provisions For Awards: The following additional conditions shall apply to
all Awards, as applicable:

	 	(i)	 	Incentive Stock Options shall be granted only to employees of the Company or of a
“parent corporation” or “subsidiary corporation” (as those terms are defined in Section 424 of
the Code) with respect to the Company;
	 
	 	(ii)	 	Each Award shall, by its terms, be transferable by the Participant
only by will or the laws of descent and distribution, and shall be exercisable
only by such Participant during his lifetime; and
	 
	 	(iii)	 	The terms and conditions of Incentive Stock Options shall be
subject to and comply with Section 422 of the Code, or any successor provision,
and any regulations thereunder.

	(e)	 	Termination of Employment. Except as provided herein, the Committee shall determine
the effect on an Award of the disability, death, retirement or other termination of employment
of a Participant and the extent to which, and the period during which, the Participant’s legal
representative, guardian or Designated Beneficiary may receive payment of an Award or exercise
rights thereunder.
	 
	(f)	 	Consolidation or Mergers. With respect to Awards granted prior to March 7, 2006, if
the Company is to be consolidated with or acquired by another entity in a merger, sale of all
or substantially all of the Company’s assets or otherwise (an “Acquisition”), the Committee or
the board of directors of any entity assuming the obligations of the Company hereunder shall,
as to outstanding Awards, make appropriate provision for the continuation of such Awards by
substituting on an equitable basis for the shares then subject to such Awards the
consideration payable with respect to the outstanding shares of Common Stock in connection
with the Acquisition and by adjusting on an equitable basis the exercise price of such Awards
to reflect such Acquisition.
	 
	(g)	 	Recapitalization or Reorganization. With respect to Awards granted prior to March 7,
2006, in the event of a recapitalization or reorganization of the Company (other than an
Acquisition) pursuant to which securities of the Company or of another corporation are issued
with respect to the outstanding shares of Common Stock, a Participant upon exercising rights
under an Award

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	 	 	shall be entitled to receive what he would have received if he had exercised prior to such
recapitalization or reorganization.

	(h)	 	Mergers, etc. With respect to Awards granted on or after March 7, 2006, except as
otherwise provided in an Award, the following provisions shall apply in the event of a Covered
Transaction:

(i) Assumption or Substitution. If the Covered Transaction is one in
which there is an acquiring or surviving entity, the Committee may provide for
the assumption of some or all outstanding Awards or for the grant of new awards
in substitution therefor by the acquiror or survivor or an affiliate of the
acquiror or survivor.

(ii) Cash-Out of Awards. If the Covered Transaction is one in which
holders of Stock will receive upon consummation a payment (whether cash, non-cash
or a combination of the foregoing), the Committee may provide for payment (a
“cash-out”), with respect to some or all Awards (or portion of Awards), equal in
the case of each affected Award to the excess, if any, of (A) the fair market
value of one share of Stock (as determined by the Committee in its reasonable
discretion) times the number of shares of Stock subject to the Award or portion
of the Award, over (B) the aggregate exercise or purchase price, if any, under
the Award or portion of the Award (in the case of a Stock Appreciation Right, the
aggregate base price above which appreciation is measured), in each case on such
payment terms (which need not be the same as the terms of payment to holders of
Stock) and other terms, and subject to such conditions, as the Committee
determines.

(iii) Other Actions. If the Covered Transaction (whether or not there is
an acquiring or surviving entity) is one in which there is no assumption,
substitution or cash-out, each Award requiring exercise will cease to be
exercisable after such payment or other consideration, if any, as the Committee
deems equitable in the circumstances, as of the effective time of the Covered
Transaction.

(iv) Termination of Awards Upon Consummation of Covered Transaction.
Each Award (unless assumed pursuant to Section 11(h)(i) above), other than
outstanding shares of Restricted Stock (which shall be treated in the same manner
as other shares of Stock, subject to Section 11(h)(v) below), will terminate upon
consummation of the Covered Transaction.

(v) Additional Limitations. Any share of Stock delivered pursuant to
Section 11(h)(ii) or Section 11(h)(iii) above with respect to an Award may, in
the discretion of the Committee, contain such restrictions, if any, as the
Committee deems appropriate to reflect any performance or other vesting
conditions to which the Award was subject. In the case of Restricted Stock, the
Committee may require that any amounts delivered, exchanged or otherwise paid in
respect of such Stock in connection with the Covered Transaction be placed in
escrow or otherwise made subject to such restrictions as the Committee deems
appropriate to carry out the intent of the Plan.

	(i)	 	Modification of Incentive Stock Options. Notwithstanding the foregoing, any
adjustments made pursuant to subparagraphs (f) or (g) with respect to Incentive Stock Options
shall be made only after the Committee, after consulting with counsel for the Company,
determines whether such adjustments would constitute a “modification” of such Incentive Stock
Options (as that term is defined in Section 424 of the Code) or would cause any adverse tax
consequences for the
holders of such Incentive Stock Options. If the Committee determines that such adjustments 

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	 	 	made with respect to Incentive Stock Options would constitute a modification of such Incentive Stock
Options, it may refrain from making such adjustments.

	(j)	 	Withholding. The Participant shall pay to the Company, or make provision
satisfactory to the Committee for payment of, any taxes required by law to be withheld in
respect of Awards under the Plan no later than the date of the event creating the tax
liability. In the Committee’s discretion, such tax obligations may be paid in whole or in
part in shares of Common Stock, including shares retained from the Award creating the tax
obligation, valued at their Fair Market Value on the date of delivery. The Company and its
Affiliates may, to the extent permitted by law, deduct any such tax obligations from any
payment of any kind otherwise due to the Participant.
	 
	(k)	 	Amendment of Award. The Committee may amend, modify or terminate any outstanding
Award, including substituting therefor another Award of the same or a different type, changing
the date of exercise or realization, provided that the Participant’s consent to such action
shall be required unless the Committee determines that the action, taking into account any
related action, would not materially and adversely affect the Participant.

Section 12. Miscellaneous

	(a)	 	No Right To Employment. No person shall have any claim or right to be granted an
Award, and the grant of an Award shall not be construed as giving a Participant the right to
continued employment. The Company expressly reserves the right at any time to dismiss a
Participant free from any liability or claim under the Plan, except as expressly provided in
the applicable Award.
	 
	(b)	 	No Rights As Shareholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a shareholder with respect to
any shares of Common Stock to be distributed under the Plan until he or she becomes the holder
thereof. A Participant to whom Common Stock is awarded shall be considered the holder of the
Stock at the time of the Award except as otherwise provided in the applicable Award.
	 
	(c)	 	Term of Plan. This Plan shall terminate on January 25, 2016, and no Award shall be
granted under this Plan thereafter, but such termination shall not affect the validity of
Awards granted prior to the date of termination.
	 
	(d)	 	Amendment of Plan. The Board or Committee, if so authorized by the Board, may amend,
suspend or terminate the Plan or any portion thereof at any time.
	 
	(e)	 	Foreign Participants. Subject to the limitations set forth in Section 4 herein, the
Committee may grant Awards to Participants who reside or are employed outside the United
States on such terms and conditions as determined in the sole discretion of the Committee are
necessary or advisable to achieve the purposes of the Plan or to comply with foreign laws,
including the establishment of subplans under this Plan. Any subplans or other modifications
to Plan terms, conditions or procedures established under this Section, shall be attached as
Appendices.
	 
	(f)	 	Governing Law. The provisions of the Plan shall be governed by and interpreted in
accordance with the laws of the State of Delaware.
	 
	(g)	 	Indemnity. Neither the Board nor the Committee, nor any members of either, nor any
employees of the Company or any parent, subsidiary, or other affiliate, shall be liable for
any act, omission, interpretation, construction or determination made in good faith in
connection with their responsibilities with respect to this Plan, and the Company hereby
agrees to indemnify the members of the Board, the members of the Committee, and the employees
of the Company and its parent or subsidiaries in respect of any claim, loss, damage, or
expense 

-10-

 

	 	 	(including reasonable
counsel fees) arising from any such act, omission, interpretation, construction or determination
to the full extent permitted by law.

	(h)	 	Section 409A. Notwithstanding anything to the contrary in this Plan or any Award,
these provisions shall apply to any payments and benefits otherwise payable to or provided to
a Participant under this Plan and any Award. For purposes of Section 409A of the Code, each
“payment” (as defined by Section 409A of the Code) made under this Plan or an Award shall be
considered a “separate payment.” In addition, for purposes of Section 409A of the Code,
payments shall be deemed exempt from the definition of deferred compensation under Section
409A of the Code to the fullest extent possible under (i) the “short-term deferral” exemption
of Treasury Regulation § 1.409A-1(b)(4), and (ii) (with respect to amounts paid as separation
pay no later than the second calendar year following the calendar year containing the
participant’s “separation from service” (as defined for purposes of Section 409A of the Code))
the “two years/two-times” separation pay exemption of Treasury Regulation §
1.409A-1(b)(9)(iii), which are hereby incorporate by reference.
	 
	 	 	If a participant is a “specified employee” as defined in Section 409A of the Code (and as
applied according to procedures of the Company and its affiliates) as of his separation from
service, to the extent any payment under this Plan or an Award constitutes deferred compensation
(after taking into account any applicable exemptions from Section 409A of the Code), and to the
extent required by Section 409A of the Code, no payments due under this Plan or an Award may be
made until the earlier of: (i) the first day of the seventh month following the Participant’s
separation from service, or (ii) the Participant’s date of death; provided, however, that any
payments delayed during this six-month period shall be paid in the aggregate in a lump sum,
without interest, on the first day of the seventh month following the Participant’s separation
from service.
	 
	 	 	The Committee shall administer the Plan with a view toward ensuring that Awards under the Plan
that are subject to Section 409A of the Code comply with the requirements thereof and that
Options and SARs under the Plan be exempt from the requirements of Section 409A of the Code, but
neither the Committee nor any member of the Board, nor the Company nor any of its affiliates,
nor any other person acting hereunder on behalf of the Company, the Committee or the Board shall
be liable to a Participant or any Designated Beneficiary by reason of the acceleration of any
income, or the imposition of any additional tax or penalty, with respect to an Award, whether by
reason of a failure to satisfy the requirements of Section 409A of the Code or otherwise.

Dates of Approval by Board of Directors or Compensation Committee: January 6, 2000, January 23,
2001, and December 13, 2001, May 20, 2002, September 13, 2002, February 26, 2003, February 25,
2004, January 25, 2006, May 6, 2008 and December 29, 2008.

Dates of Approval by Stockholders: February 24, 2000, February 28, 2001, May 13, 2002, April 27,
2004, March 7, 2006 and May 6, 2008.

-11-exv4w1

Exhibit 4.1

Execution Copy

THIRD AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

          This THIRD AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (the “Agreement”) is made as of January
29, 2009 by and among Nuance Communications, Inc., a corporation organized and existing under the
laws of the State of Delaware (the “Company”), Warburg Pincus Private Equity VIII, L.P., Warburg
Pincus Netherlands Private Equity VIII C.V. I, and WP-WPVIII Investors, L.P. (collectively, the “WP
VIII Purchasers”), and Warburg Pincus Private Equity X, L.P. and Warburg Pincus X Partners, L.P.
(collectively, the “WP X Purchasers” and together with the WP VIII Purchasers, the “Purchasers”).

RECITALS

          A. Immediately prior to the closing of the transactions contemplated by the Purchase Agreement
(as defined below), the WP VIII Purchasers Beneficially Own an aggregate of 51,737,426 shares of
Voting Stock of the Company, including warrants to purchase an aggregate of 10,766,538 shares of
the Company Common Stock;

          B. The WP X Purchasers are purchasing 17,395,626 shares of Company Common Stock and warrants
to purchase an aggregate of 3,862,422 shares of Company Common Stock (the “Warrants”) pursuant to
that certain Purchase Agreement, dated as of January 13, 2009 (the “Purchase Agreement”);

          C. The Board of Directors of the Company (the “Board”) has determined that it is in the best
interests of the Company and its stockholders to issue and sell the shares of Company Common Stock
and the Warrants to the WP X Purchasers;

          D. The Company and the WP VIII Purchasers are parties to that certain Second Amended and
Restated Stockholders Agreement, dated as of May 20, 2008 (the “Prior Agreement”); and

          E. The Company and the WP VIII Purchasers desire to amend and restate the rights and
obligations set forth in the Prior Agreement, in each case as set forth herein.

          NOW THEREFORE, in consideration of the covenants and promises set forth herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:

AGREEMENT

     1. Certain Definitions. Unless the context otherwise requires, the following terms,
for all purposes of this Agreement, shall have the meanings specified in this Section 1:

          “Additional Director Board Appointment Period” shall mean the period from the date hereof and
ending on the later of (i) the date that the Purchasers shall cease to Beneficially Own at least
25,000,000 shares of Voting Stock (as adjusted from time to time for any stock dividends,
combinations, recapitalizations and the like) or (ii) the date that the

 

 

Purchasers’ percentage
Beneficial Ownership of the Voting Stock is less than the quotient of (x) two (2) divided by (y)
the then authorized number of directors of the Company.

          “Affiliate” shall have the meaning set forth in Rule 12b-2 of the rules and regulations
promulgated under the Exchange Act; provided, however, that for purposes of this
Agreement, the Purchasers and their Affiliates, on the one hand, and the Company and its
Affiliates, on the other, shall not be deemed to be “Affiliates” of one another.

          “Beneficially Own,” “Beneficially Owned,” or “Beneficial Ownership” shall have the meaning set
forth in Rule 13d-3 of the rules and regulations promulgated under the Exchange Act.

          “Closing Date” shall have the meaning ascribed to such term in the Purchase Agreement.

          “Company Common Stock” shall mean shares of the Common Stock of the Company, $0.001 par value.

          “Company Competitor” shall mean any person or entity (or any Affiliates of such a person or
entity) that (i) conducts material activities and operations consisting of providing speech
technology primarily for use in telephony-network based services, mobile or embedded platforms, or
desktop or server-based dictation software applications, (ii) develops and licenses software that
incorporates document capture or image processing technology, (iii) has filed a statement on
Schedule 13D pursuant to Rule 13d-l(a) with the SEC that indicates under Item 4 of such Schedule
that the person has acquired or holds the securities with a purpose or effect of changing or
influencing control of the Company, or in connection with or as a participant in any transaction
having that purpose or effect, or (iv) to the Purchasers’ knowledge after a written request,
intends to file a statement on Schedule 13D with the SEC indicating under Item 4 of such Schedule
that the person has acquired or holds the securities with a purpose or effect of changing or
influencing control of the Company, or in connection with or as a participant in any transaction
having that purpose or effect.

          “Controlled Fund” shall mean any fund of which Warburg Pincus Partners LLC is a general
partner.

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

          “Exchange Offer” shall mean a bona fide exchange offer subject to the provisions of Rule 13e-3
promulgated under the Exchange Act.

          “Fair Market Value” means, as of any date of determination, (i) in the case of Company Common
Stock, the average of the closing sale prices of Company Common Stock during the 5 trading days
immediately preceding such date of determination on the principal U.S. or foreign securities
exchange on which such Company Common Stock is listed or, if such Company Common Stock is not
listed or primarily traded on any such exchange, the average of the closing sale prices or the
closing bid quotations of such security during the 5 day period preceding such date of
determination on Nasdaq or any comparable system then in use or, if no such quotations are
available, the fair market value of such security as of such date of

2

 

determination as determined in
good faith by the Company and the holders of a majority in interest of the shares of Company Common
Stock then held by the Purchasers and (ii) in the case of property other than cash or a security,
the fair market value of such property on such date of determination as determined in good faith by
the Company and the holders of a majority in interest of the shares of Company Common Stock then
held by the Purchasers; provided, however, that if such parties are unable to reach
agreement as to the fair market value of such security pursuant to clause (i) above or such
property pursuant to clause (ii) above within a reasonable period of time, the fair market value
shall be determined in good faith by an independent investment banking firm selected jointly by the
Company and the holders of a majority in interest of the shares of Company Common Stock then held
by the Purchasers or, if that selection cannot be made within 15 days, by an independent investment
banking firm selected by the American Arbitration Association in accordance with its rules. All
costs and expenses of such independent investment banking firm shall be borne 50% by the Company
and 50% by the Purchasers, pro rata based on the number of shares of Company Common Stock then held
by each.

          “Form S-3” means such form under the Securities Act as in effect on the date hereof or any
successor or similar registration form under the Securities Act subsequently adopted by the SEC
that permits inclusion or incorporation of substantial information by reference to other documents
filed by the Company with the SEC.

          “Holder” means any person owning of record Registrable Securities that have not been sold to
the public or any transferee or assignee of record of such Registrable Securities to which the
registration rights conferred by this Agreement have been transferred or assigned in accordance
with Section 5.8 hereof.

          “Permitted Amount” shall mean the sum of (i) up to a maximum of 5% of the issued and
outstanding Voting Stock of the Company as calculated immediately following the Closing Date and
(ii) any amount of shares of Voting Stock acquired directly from the Company after the date of this
Agreement pursuant to an agreement with the Company.

          “Register,” “registered” and “registration” refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities Act, and the declaration or
ordering of effectiveness of such registration statement or document.

          “Registrable Securities” means (a) shares of Company Common Stock (i) held by the Purchasers
on the day immediately following the Closing Date or (ii) acquired pursuant to open market
purchases following the Closing Date, and any Company Common Stock issued as (or issuable upon the
conversion or exercise of any warrant, right or other security which is issued as) a dividend or
other distribution with respect to, or in exchange for or in replacement of, any Company Common
Stock, warrant, right or other security held by the Purchasers. Notwithstanding the foregoing,
Registrable Securities shall not include any securities of the Company sold by any person to the
public either pursuant to a registration statement under the Securities Act or Rule 144.

          “Registration Expenses” shall mean all expenses incurred by the Company in complying with
Sections 5.1 and 5.2 hereof, including, without limitation, all registration and

3

 

filing fees,
printing expenses, fees and disbursements of counsel for the Company, Blue Sky fees and expenses
and the expense of any special audits incidental to or required by any such registration (but
excluding the compensation of regular employees of the Company, which shall be paid in any event by
the Company, and all underwriting discounts and commissions).

          “Representatives” shall mean the directors, officers, employees and independent contractors,
agents or advisors (including, without limitation, attorneys, accountants, and investment bankers)
of the specified party or any of its Subsidiaries.

          “Rule 144” means Rule 144 as promulgated by the SEC under the Securities Act, as such rule may
be amended from time to time, or any similar successor rule that may be promulgated by the SEC.

          “SEC” or “Commission” means the Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act.

          “Securities Act” means the Securities Act of 1933, as amended, or any similar successor
federal statute and the rules and regulations thereunder, all as the same shall be in effect from
time to time.

          “Selling Expenses” means all underwriting discounts, selling commissions and stock transfer
rates applicable to the sale of Registrable Securities and, except as set forth in the definition
of “Registration Expenses” above, all fees and reimbursement of counsel for the Holders.

          “Shelf Registration Period” shall mean the period beginning immediately following the Closing
Date and ending at 12:00 a.m. New York City time on the 365th day after the effectiveness of any
registration statement filed pursuant to the terms of Section 5.3, as such period may be extended.

          “Standstill Period” shall mean the three (3) year period beginning on the Closing Date and
ending at 12:00 a.m. New York City time on the third anniversary of the Closing Date.

          “Subsidiaries” shall mean each corporation, limited liability company, partnership,
association, joint venture or other business entity of which any party or any of its Affiliates
owns, directly or indirectly, more than 50% of the stock or other equity interest entitled to vote
on the election of the members of the board of directors or similar governing body.

          “Third Party Tender Offer” shall mean a bona fide public tender offer subject to the
provisions of Regulation 14D when first commenced within the meaning of Rule 14d-2(a) of the rules
and regulations under the Exchange Act, by a person or 13D Group (which is not made by and does not
include any of the Company or any Affiliate of the Company) to purchase or exchange for cash or
other consideration any Voting Stock and which consists of an offer to acquire more than 10% of the
Voting Power of the Company.

          “13D Group” means any group of persons formed for the purpose of acquiring, holding, voting or
disposing of Voting Stock which would be required under Section 13(d) of the Exchange Act, and the
rules and regulations promulgated thereunder, to file a statement on

4

 

Schedule 13D pursuant to Rule
13d-l(a) or Schedule 13G pursuant to Rule 13d-1(c) with the SEC as a “person” within the meaning of
Section 13(d)(3) of the Exchange Act if such group Beneficially Owned Voting Stock representing
more than 5% of any class of Voting Stock then outstanding.

          “Voting Power” shall mean the number of votes entitled to then be cast by the Voting Stock of
the Company at any election of directors of the Company, provided that, for the purpose of
determining Voting Power, each share of Preferred Stock of the Company, if any (the “Preferred
Stock”), shall be deemed to be entitled to the number of votes equal to the number of shares of
Company Common Stock into which such share of Preferred Stock could then be converted.

          “Voting Stock” shall mean shares of the Company Common Stock and any other securities of the
Company having the ordinary power to vote in the election of members of the Board of Directors of
the Company and any securities convertible, exchangeable for or otherwise exercisable to acquire
voting securities.

     2. Appointment of the Purchasers’ Nominee(s) to the Board. The Company hereby agrees
that (a) until the date that the Purchasers cease to Beneficially Own at least 10,000,000 shares of
Voting Stock (as adjusted from time to time for any stock dividends, combinations, splits,
recapitalizations and the like), the Board shall take such action as may be necessary to appoint
one (1) member of the Board who shall be designated by Warburg Pincus Private Equity VIII, L.P. so
long as it holds shares of Company Common Stock and thereafter by the holders of a majority in
interest of the shares of Company Common Stock then held by the Purchasers, and (b) until the
expiration of the Additional Director Board Appointment Period, the Board shall take such action as
may be necessary to appoint a second member of the Board who shall be designated by Warburg Pincus
Private Equity X, L.P. so long as it holds shares of Company Common Stock and thereafter by the
holders of a majority in interest of the shares of Company Common Stock then held by the
Purchasers. Each nominee so designated shall be reasonably acceptable to, and approved by a
majority of the Board, which acceptance and approval shall not be unreasonably withheld (such
nominees from time to time so designated, each a “Purchaser Nominee,” and collectively, the
“Purchaser Nominees”). For as long as the Purchaser Nominee(s) have a right to be appointed to the
Board pursuant to this Section 2, the Company shall nominate and take such action as may be
necessary to cause the Purchaser Nominee(s) to be elected or appointed to the Board. If at any
time during the period when the Purchaser Nominee(s) have a right to be appointed to the Board
pursuant to this Section 2, there shall occur a vacancy in the Board seat previously occupied by a
Purchaser Nominee by reason of resignation, removal, death or incapacity, then such vacancy shall
be filled by another Purchaser Nominee designated in accordance with this Section 2.

     3. Covenants of the Purchasers.

          3.1 Standstill. During the Standstill Period, the Purchasers, Warburg Pincus & Co.,
and Warburg Pincus Partners LLC, shall not, without the prior written consent of the Company or its
Board of Directors:

5

 

               (a) acquire, offer, seek or propose to acquire, or agree to acquire, directly or indirectly
(including acquiring beneficial ownership as defined in Rule 13d-3 under the Exchange Act), by
purchase or otherwise, any Voting Stock of the Company or direct or indirect rights to acquire any
Voting Stock of the Company, or of any successor to or person in control of the Company, or any
assets of the Company or any Subsidiary or division of the Company or of any such successor or
controlling person, provided, however, that the Purchasers, Warburg Pincus & Co.,
and Warburg Pincus Partners LLC may acquire in one or more transactions an aggregate number of
shares of Voting Stock equal to the Permitted Amount.

               (b) make, or in any way participate, directly or indirectly, in any “solicitation” of
“proxies” to vote (as such terms are used in the rules of the SEC), or seek to advise or influence
any person or entity with respect to the voting of any Voting Stock of the Company (other than in
such Purchaser’s Representatives’ capacities as a member of the Company’s Board of Directors in a
manner consist with his or her fiduciary duties);

               (c) make any public announcement with respect to, or submit a proposal for or offer of (with
or without conditions) (including to the Company’s Board of Directors), any extraordinary
transaction involving the Company or any of its securities or assets;

               (d) form, join or in any way participate in a 13D Group in connection with any of the
foregoing;

               (e) otherwise act or seek to control or influence the management or Board of Directors or
policies of the Company, whether alone or in concert with others (other than in such Purchaser’s
Representatives’ capacities as a member of the Company’s Board of Directors in a manner consistent
with his or her fiduciary duties);

               (f) take any action that could reasonably be expected to require the Company to make a public
announcement regarding the possibility of any of the events described in clauses (a) through (e)
above;

               (g) request the Company or any of its Representatives, directly or indirectly, to amend or
waive any provision of this Section 3.1 in a manner that would require public disclosure; or

               (h) direct or instruct any of their respective Subsidiaries, Representatives or Affiliates to
take any such action.

          Notwithstanding the foregoing, if, at any time during the Standstill Period,

                    (i) any person or 13D Group (other than any person or 13D Group which includes the Purchasers,
their respective Subsidiaries or Representatives) acquires Beneficial Ownership of Voting Stock of
the Company representing 40% or more of the then outstanding Voting Stock of the Company;

                    (ii) any person or 13D Group (other than any person or 13D Group which includes the
Purchasers, their respective Subsidiaries or Representatives) announces or commences a tender or
exchange offer to acquire Voting Stock of the Company

6

 

which, if successful, would result in such
person or 13D Group owning, when combined with any other Voting Stock of the Company owned by such
person or 13D Group, 50% or more of the then outstanding Voting Stock of the Company;

                    (iii) the Company enters into, or resolves to enter into, any merger, sale or other business
combination transaction pursuant to which the outstanding shares of Common Stock would be converted
into cash and/or securities and/or property of another person or 13D Group (other than any person
or 13D Group which includes the Purchasers, their respective Subsidiaries or Representatives) or
50% or more of the outstanding shares of Common Stock as of immediately prior to such transaction
would be owned by persons other than the then current holders of shares of Common Stock and any
person or 13D Group which includes the Purchasers, their respective Subsidiaries or
Representatives;

then, except as otherwise provided herein, the Standstill Period shall be suspended and tolled
during the pendency of any such event with respect to the Purchasers, their respective Subsidiaries
and Representatives and the provisions of subparagraphs (a) through (g) shall not be applicable to
the Purchasers, their respective Subsidiaries and Representatives during the pendency of any such
event. For the avoidance of doubt, the Standstill Period shall resume and be extended by an amount
of time equal to the time during which such event was pending, and the provisions of subparagraphs
(a) through (g) shall resume to be applicable to the Purchasers, their respective Subsidiaries and
Representatives in the event that the provisions of (i) through (iii) cease to be applicable, such
as, for example and without limitation, disposition of the Voting Stock of the Company to below 40%
by the person or 13D Group, withdrawal of the tender or exchange offer by the person or 13D Group,
or termination of merger, sale or other business combination transaction.

          3.2 Transfer Restrictions.

               (a) The Purchasers shall not (and shall not permit any Affiliate to), directly or indirectly:

                    (i) Sell, transfer, pledge, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, transfer
the economic risk of ownership of, or otherwise dispose of (each, a “Transfer”) any Voting Stock or
Voting Power to any person or group that is conducting, is participating or has participated in a
solicitation of proxies in opposition to the recommendation or proposal of the Board, or has
proposed or otherwise solicited stockholders of the Company for approval of one or more stockholder
proposals;

                    (ii) Transfer five percent (5%) or more of the Voting Stock or Voting Power (in one or a
series of transactions) in response to a Third Party Tender Offer or an Exchange Offer with respect
to which the Board shall not have recommended that stockholders of the Company accept such offer,
unless prior to such Transfer, the Purchasers have complied with the provisions of Section 3.3
below; or

                    (iii) Transfer five percent (5%) or more of the Voting Stock or Voting Power (in one or a
series of transactions that have not been approved by a majority of the

7

 

Board) to a Company
Competitor who has made a bona fide written offer to acquire such securities, unless prior to such
Transfer, the Purchasers have complied with the provisions of Section 3.3 below.

               (b) Prior to the date that is one hundred eighty (180) days following the Closing Date, no
Purchaser will, directly or indirectly, Transfer any shares of Voting Stock (it being understood
that Transfers of, or other transactions with respect to direct or indirect ownership interests in
a Purchaser the purpose of which is not to Transfer shares of Voting Stock shall not be considered
to be direct or indirect Transfers of shares of Voting Stock) except for the following:

                    (i) Transfers to other Purchasers;

                    (ii) Transfers in connection with a bona fide pledge to, or similar arrangement in connection
with a bona fide borrowing from a financial institution;

                    (iii) Transfers in a transaction approved by a majority of the Board, excluding the Purchaser
Nominees; or

                    (iv) Transfers in connection with a tender offer, merger, sale of all or substantially all the
Company’s assets or any similar transaction involving the Company approved and/or recommended by a
majority of the Board, excluding the Purchaser Nominees.

          3.3 The Company’s Right of First Refusal.

               (a) Prior to the Purchasers effecting any Transfer of Voting Stock or Voting Power that is
subject to the restrictions set forth in Section 3.2(a), the Company shall have a first refusal
right to purchase such Voting Stock or Voting Power on the following terms and conditions:

                    (i) The Purchasers shall give prior notice (the “Transfer Notice”) to the Company in writing
of such intention, specifying the name of the proposed purchaser or transferee, the amount of
Voting Stock or Voting Power proposed to be the subject of such Transfer, the proposed price
therefor and the other material terms upon which such disposition is proposed to be made
(including, if any, a copy of a bona fide written offer).

                    (ii) The Company shall have the right, exercisable by written notice given by the Company to
the Purchasers within (i) 72-hours with respect to a Transfer addressed in Section 3.2(b) above,
and (ii) twenty (20) business days with respect to a Transfer addressed in Section 3.2(a) above,
after receipt of such Transfer Notice (the “Response Notice”), to purchase all or any portion of
the Voting Stock or Voting Power specified in such Transfer Notice for cash at the price per share
specified in the Transfer Notice or, if consideration other than cash is specified in the Transfer
Notice, in an amount equal to the Fair Market Value of such non-cash consideration.

                    (iii) If the Company exercises its right of first refusal hereunder, the closing of the
purchase of the Voting Stock or Voting Power with respect to which such right has been exercised
shall take place within thirty (30) calendar days after the Company gives the

8

 

Response Notice to
the Purchasers or, if later, within five (5) business days of the determination of the Fair Market
Value of any non-cash consideration. Upon exercise of its right of first refusal, the Company and
the Purchasers shall be legally obligated to consummate the purchase and sale contemplated thereby
and shall use their commercially reasonable efforts to secure any approvals required in connection
therewith.

                    (iv) If the Company does not exercise its right of first refusal hereunder within the time
specified for such exercise in subparagraph (ii) above with respect to all of the Voting Stock or
Voting Power specified in such Transfer Notice, the Purchasers shall be free, during the period of
ninety (90) calendar days following the expiration of such time for exercise, to Transfer or tender
for Transfer the Voting Stock or Voting Power specified in such Transfer Notice with respect to
which the Company has not exercised its first refusal rights to the proposed purchaser or
transferee specified in such Transfer Notice and on terms not materially less favorable to the
Purchasers than the terms specified in such Transfer Notice. After the expiration of such 90-day
period, except as otherwise provided herein, the Purchasers may not Transfer the Voting Stock or
Voting Power specified in such Transfer Notice without first complying with the provisions of this
Section 3.3.

               (b) The Company may assign its right of first refusal under this Section 3.3 to any other
person or persons; provided, however, that the Company shall be liable for the
timely performance of any obligations in this Section 3.3 by such assignee.

          3.4 Other Transfers. Except as provided in this Section 3, this Agreement does not,
and is not intended to, restrict the Purchasers ability to Transfer any Voting Stock or Voting
Power.

     4. Prohibited Transfer. Any purchase which causes the Purchasers to be in violation
of the terms of Section 3 above (“Prohibited Transfer”) shall not be effected by the Company and
shall be voidable at the option of the Company by their giving written notice to the transferor,
his transferee and the Purchasers. Each certificate representing Voting Stock held by the
Purchasers shall be endorsed by the Company with a legend reading as follows:

“THE SHARES EVIDENCED HEREBY ARE SUBJECT TO A STOCKHOLDERS AGREEMENT BY AND BETWEEN
THE COMPANY AND THE HOLDER HEREOF (A COPY OF WHICH MAY BE OBTAINED FROM THE
COMPANY), AND NO TRANSFER OF THE SHARES EVIDENCED HEREBY SHALL BE EFFECTIVE EXCEPT
IN COMPLIANCE WITH THE TERMS THEREOF.”

     5. Registration Rights.

          5.1 Demand Registration.

               (a) Subject to the conditions of this Section 5.1, if the Company shall receive a written
request from the Holders holding not less than a majority of the Registrable Securities then
outstanding that the Company file a registration statement with respect to all or part of the
Registrable Securities under the Securities Act with an anticipated aggregate offering price of at
least $10,000,000, then the Company shall, within ten (10) calendar days of the

9

 

receipt thereof,
give written notice of such request to all Holders, and, subject to the limitations of this Section
5.1, use its commercially reasonable efforts to effect, as expeditiously as reasonably possible,
the registration under the Securities Act of all Registrable Securities that all Holders request to
be registered pursuant to and in accordance with this Agreement (a “Demand Registration”).

               (b) Notwithstanding the foregoing, if the Company shall furnish to the Holders requesting a
registration statement pursuant to this Section 5.1, a certificate signed by the President or Chief
Executive Officer of the Company stating that in the Board’s good faith judgment it would be
seriously detrimental to the Company and its stockholders for such a registration statement to be
filed in the near future, the Company shall have the right to defer such filing for a period of not
more than ninety (90) days after receipt of the request of the Holders specified in Section 5.1(a);
provided, however, that the Company may not utilize this right more than twice in
any twelve-month period.

               (c) The Company shall not be required to effect or take any action to effect a registration
pursuant to this Section 5.1:

                    (i) prior to the commencement of the Shelf Registration Period;

                    (ii) after
the Company has effected four

 (4) Demand Registrations pursuant to this Section 5.1, and such registrations have been
declared or ordered effective (which, for the avoidance of doubt, shall mean that the registrations
shall have been effective for an aggregate of ninety (90) calendar days, or until all Registrable
Securities covered thereby have been sold, if earlier);

                    (iii) if the Holders making the request provided for in Section 5.1(a) propose to dispose of
Registrable Securities that could be disposed of in a single ordinary brokerage transaction under
the quantity limitation of Rule 144; or

                    (iv) if the Holders making the request provided for in Section 5.1(a) propose to dispose of
Registrable Securities that may be registered on Form S-3 pursuant to a request made pursuant to
Section 5.2 below.

          5.2 Form S-3 Registration. If at any time following the commencement of the Shelf
Registration Period, the Company shall receive from the Holders holding not less than a majority of
the Registrable Securities then outstanding a written request that the Company effect a
registration on Form S-3 and any related qualification or compliance with respect to all or a part
of the Registrable Securities owned by such Holders, the Company will:

               (a) within ten (10) calendar days after receipt of such notice, give written notice of the
proposed registration, and any related qualification or compliance, to all other Holders of
Registrable Securities; and

               (b) as soon as reasonably practicable, effect such registration (a “S-3 Registration”) and all
such qualifications and compliances as may be so requested and as would permit or facilitate the
sale and distribution of all or such portion of such Holders’ Registrable

10

 

Securities as are
specified in such request, together with all or such portion of the Registrable Securities of any
other Holder or Holders joining in such request as are specified in a written request given within
fifteen (15) calendar days after receipt of such written notice from the Company; provided,
however, that the Company shall not be obligated to effect any such registration,
qualification or compliance pursuant to this Section 5.2, (i) if Form S-3 is not available to the
Company for such offering, (ii) if the aggregate proceeds from the sale of Registrable Securities
proposed to be sold pursuant to a Form S-3 registration statement will not exceed $10,000,000,
(iii) if, the Company has effected two S-3 Registrations pursuant to this Section 5.2, and such
registrations have been declared or ordered effective (which, for the avoidance of doubt, shall
mean that the registrations shall have been effective for an aggregate of ninety (90) calendar
days, or until all Registrable Securities covered thereby have been sold, if earlier), or (iv) if
the Holders propose to dispose of Registrable Securities that could be disposed of in a single
ordinary brokerage transaction under the quantity limitation of Rule 144.

               (c) Notwithstanding the foregoing, if the Company shall furnish to the Holders requesting a
registration statement pursuant to this Section 5.2, a certificate signed by the President or Chief
Executive Officer of the Company stating that in the Board’s good faith judgment it would be
seriously detrimental to the Company and its stockholders for such a registration statement to be
filed in the near future, the Company shall have the right to defer such filing for a period of not
more than ninety (90) days after receipt of the request of the Holders specified in this Section
5.2; provided, however, that the Company may not utilize this right more than twice
in any twelve-month period.

          Registrations effected pursuant to this Section 5.2 shall be counted as demands for
registration effected pursuant to Section 5.1, and in no event shall the Company be required to
effect more than two (2) S-3 Registrations.

          5.3 Shelf Registration. During the Shelf Registration Period, if the Company shall
receive from the Holders holding not less than a majority of the Registrable Securities then
outstanding a written request that the Company effect a registration on Form S-3 with respect to
all or part of the Registrable Securities owned by such Purchasers, the Company will as soon as
reasonably practicable, effect such registration (a “Shelf Registration Statement”) and all such
qualifications and compliances as may be so requested and as would permit or facilitate the
distribution of all or such portion of such Holders’ Registrable Securities as are specified in
such request exclusively to partners, limited partners, retired partners, retired limited partners,
members, retired members and stockholders of such Holders; provided, however, that
the Company shall not be obligated to effect any such registration, qualification or compliance
pursuant to this Section 5.3, if Form S-3 is not available to the Company for such offering. The
Company shall use its commercially reasonable efforts to keep the Shelf Registration Statement
effective, current and available for use by the Purchasers during the Shelf Registration Period.
While the Shelf Registration Statement remains in effect, the Company may at any time and from time
to time deliver to the Holders written notice to the effect that distributions may not be effected
under the Shelf Registration Statement for a period of time (a “Blackout Period”) because of the
existence of material facts not disclosed or incorporated by reference in such Shelf Registration
Statement and in the then-current prospectus included therein; provided, however,
that the duration of any Blackout Period shall not exceed ninety (90) days. Upon receipt of any
such notice, the Holders shall refrain from distributing Registrable Securities

11

 

under such Shelf
Registration Statement until the Holders have received notice from the Company to the effect that
such distributions may then be effected. The Company shall as promptly as reasonably possible
update the Shelf Registration Statement and the prospectus included therein in order to permit
Registrable Securities to be distributed, and the Shelf Registration Period shall automatically be
extended by the aggregate number of days during which the Holders were instructed to refrain from
distributing Registrable Securities during all Blackout Periods, without duplication.

          5.4 Expenses of Registration. Except as specifically provided herein, all
Registration Expenses incurred in connection with any registration effected pursuant to Section
5.1, Section 5.2 or Section 5.3 herein shall be borne by the Company. All Selling Expenses
incurred in connection with any registrations effected pursuant to Section 5.1 or Section 5.2 shall
be borne by the holders of the securities so registered pro rata on the basis of the number of
shares so registered. The Company shall not, however, be required to pay for expenses of any
registration proceeding begun, the request of which has been subsequently withdrawn by the Holders
initiating such registration, unless a majority of the Holders of Registrable Securities agree to
forfeit their right to one Demand Registration or S-3 Registration, as the case may be, pursuant to
Section 5.1 or Section 5.2 (in which event such right shall be forfeited by all Holders of
Registrable Securities). If such Holders are required to pay the Registration Expenses, such
expenses shall be borne by the holders of securities (including Registrable Securities) initiating
such registration in proportion to the number of shares for which registration was requested.

          5.5 Underwriting. If the Company determines in its sole discretion that the
registration statement under which the Company gives notice under Section 5.1 or Section 5.2 will
be for an underwritten offering, the Company shall so advise the Holders of Registrable Securities.
In such event, the right of any such Holder to be included in such registration shall be
conditioned upon such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting to the extent provided herein. All Holders
proposing to distribute their Registrable Securities through such underwriting shall enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for such
underwriting by the Company. Notwithstanding any other provision contained in this Agreement, if
the managing underwriter determines in good faith that marketing factors require a limitation of
the number of shares to be underwritten (including Registrable Securities), the number of shares
that may be included in the underwriting shall be allocated first to requesting Holders on a pro
rata basis based on the total number of Registrable Securities then held by all such requesting
Holders, then to any other shareholders on a pro rata basis based on the number of shares of
Company Common Stock then held by such other shareholders. If any Holder disapproves of the terms
of any such underwriting, such Holder may elect to withdraw therefrom by written notice to the
Company and the managing underwriter, delivered at least ten (10) business days prior to the
effective date of the registration statement. Any Registrable Securities excluded or withdrawn
from such underwriting shall be excluded and withdrawn from the registration. For any Holder that
is a partnership, limited partnership, limited liability company or corporation, the partners,
limited partners, retired partners, retired limited partners, members, retired members and
stockholders of such Holder, or the estates and family members of any such partners, limited
partners, retired partners, retired limited partners, members, retired members and any trusts for
the benefit of any of the foregoing persons shall be deemed to be collectively a single “Holder,”
and any pro rata reduction with respect to such “Holder” shall be based upon

12

 

the aggregate amount
of shares carrying registration rights owned by all entities and individuals included in such
“Holder,” as defined in this sentence.

          5.6 Furnishing Information. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to Sections 5.1 and 5.2 above that the selling Holders
shall furnish to the Company such information regarding themselves, the Registrable Securities held
by them and the intended method of disposition of such securities as shall be required to effect
the registration of their Registrable Securities.

          5.7 Indemnification.

               (a) The Company will indemnify and hold harmless each Holder, each of its officers, directors
and partners, legal counsel, and accountants and each person controlling such Holder within the
meaning of Section 15 of the Securities Act, with respect to which registration, qualification or
compliance has been effected pursuant to Section 5, and each underwriter, if any, and each person
who controls within the meaning of Section 15 of the Securities Act any underwriter, against all
expenses, claims, losses, damages, and liabilities (or actions, proceedings or settlements in
respect thereof) arising out of or based on (i) any untrue statement or alleged untrue statement of
a material fact contained in any prospectus, free-writing prospectus, offering circular, or other
document, including any related registration statement, notification or the like, incident to any
such registration, qualification or compliance, (ii) any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, or (iii) any violation by the Company of the Securities Act or any rule or
regulation thereunder applicable to the Company and relating to action or inaction required of the
Company in connection with any such registration, qualification or compliance, and will reimburse
each such Holder, each of its officers, directors, partners, legal counsel, and accountants and
each person controlling such Holder, each such underwriter and each person who controls any such
underwriter, for any legal and any other expenses reasonably incurred in connection with
investigating and defending or settling any such claim, loss, damage, liability or action;
provided, however, that the Company will not be liable in any such case to the
extent that any such claim, loss, damage, liability or expense arises out of or is based on any
untrue statement or omission based upon written information furnished to the Company by such Holder
or underwriter. It is agreed that the indemnity agreement contained in this Section 5.7(a) shall
not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if
such settlement is effected without the consent of the Company.

               (b) Each Holder will, if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualification or compliance is being effected, indemnify
the Company, each of its directors and officers, legal counsel and accountants, and each
underwriter, if any, of the Company’s securities covered by such a registration statement, each
person who controls the Company or such underwriter within the meaning of Section 15 of the
Securities Act, each other such Holder and each of its officers and directors, and each person
controlling such other Holder, against all claims, losses, damages and liabilities (or actions in
respect thereof) arising out of or based on (i) any untrue statement or alleged untrue statement of
a material fact by such Holder contained in any such registration statement, prospectus,
free-writing prospectus, offering circular or other document, or (ii) any omission or alleged
omission to state therein by such Holder a material fact required to be stated

13

 

therein or necessary
to make the statements therein not misleading, and will reimburse the Company and such Holders,
directors, officers, legal counsel, accountants, persons, underwriters or control persons for any
legal or any other expenses reasonably incurred in connection with investigating or defending any
such claim, loss, damage, liability or action, in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission is made in
such registration statement, prospectus, offering circular or other document in reliance upon and
in conformity with written information furnished to the Company by such Holder; provided,
however, that the obligations of such Holder hereunder shall not apply to amounts paid in
settlement of any such claims, losses, damages or liabilities (or actions in respect thereof) if
such settlement is effected without the consent of such Holder; and provided that in no event shall
any indemnity under this Section 5.7(b) exceed the net proceeds from the offering received by such
Holder.

               (c) Each party entitled to indemnification under this Section 5.7 (the “Indemnified Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of such claim or any
litigation resulting therefrom; provided, however, that legal counsel for the
Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting
therefrom, shall be approved by the Indemnified Party (whose approval shall not be unreasonably
withheld), and the Indemnified Party may participate in such defense at such party’s expense; and,
provided further, however, that the failure of any Indemnified Party to
give notice as provided herein shall not relieve the Indemnifying Party of its obligations under
this Section 5.7(c), to the extent such failure is not prejudicial. Consent by the Indemnifying
Party to entry of any judgment or entry into any settlement shall not bind the Indemnified Party
without the Indemnified Party’s written consent, unless such settlement includes as an
unconditional term thereof the giving by the claimant or plaintiff to the Indemnified Party of a
release from all liability with respect to such claim or litigation. Each Indemnified Party shall
furnish such information regarding itself or the claim in question as the Indemnifying Party may
reasonably request in writing and as shall be reasonably required in connection with defense of
such claim and litigation resulting therefrom.

               (d) If the indemnification provided for in this Section 5.7 is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party with respect to any loss, liability, claim,
damage or expense referred to herein, then the Indemnifying Party, in lieu of indemnifying such
Indemnified Party hereunder, shall contribute to the amount paid or payable by such Indemnified
Party as a result of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the Indemnifying Party on the one hand and of the
Indemnified Party on the other in connection with the statements or omissions that resulted in such
loss, liability, claim, damage or expense as well as any other relevant equitable considerations.
The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the Indemnifying Party
or by the Indemnified Party and to parties’ relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omissions.

14

 

               (e) Notwithstanding the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection with an
underwritten public offering of the Company’s securities are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall control.

          5.8 Transfer or Assignment of Registration Rights. The rights to cause the Company to
register Registrable Securities pursuant to this Section 5 may not be transferred or assigned by a
Holder without the prior written consent of the Company.

          5.9 Amendment of Registration Rights. Any provision of this Section 5 may be amended
and the observance thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the holders of at
least a majority of the Registrable Securities then outstanding. Any amendment or waiver effected
in accordance with this Section 5.9 shall be binding upon each Holder and the Company.

     6. Management Rights; Other Matters.

          6.1 For so long as any Purchaser owns 1,000,000 shares of Voting Stock, the Company covenants
that:

               (a) if any Purchaser is not represented on the Board, such Purchaser shall be entitled to
consult with and advise management of the Company on significant business issues, including
management’s proposed annual operating plans, and management will meet with the Purchaser regularly
during each year at the Company’s facilities at mutually agreeable times for such consultation and
advice and to review progress in achieving said plans;

               (b) each Purchaser may examine the books and records of the Company and inspect its facilities
and may request information at reasonable times and intervals concerning the general status of the
Company’s financial condition and operations, provided that access to highly confidential
proprietary information and facilities need not be provided; and

               (c) if any Purchaser is not represented on the Board, the Company shall, concurrently with
delivery to the Board, give a representative of such Purchaser copies of all notices, minutes,
consents and other material that the Company provides to its directors, except that the
representative may be excluded from access to any material or meeting or portion thereof if the
Board determines in good faith, upon advice of counsel, that such exclusion is reasonably necessary
to preserve the attorney-client privilege, to protect highly confidential proprietary information,
or for other similar reasons, provided that, upon reasonable notice, at a scheduled meeting of the
Board or such other time, if any, as the Board may determine in its sole discretion, such
representative may address the Board with respect to such Purchaser’s concerns regarding
significant business issues facing the Company.

          6.2 For as long as the Purchasers are entitled to appoint one or more Purchaser Nominees
pursuant to the terms of this Agreement, the Board, or a committee thereof consisting of
non-employee directors (as such term is defined for purposes of Rule 16b-3 under the Exchange Act),
shall, if requested by a Purchaser, and to the extent then permitted under applicable law, convene
a meeting to consider in good faith one or more Purchasers request for

15

 

the Board or committee
thereof to adopt resolutions and otherwise use reasonable efforts to cause any acquisition from the
Company of Company Common Stock or dispositions to the Company of Company Common Stock (including
in connection with any exercise of warrants held by a Purchaser) to be exempt under Rule 16b-3
under the Exchange Act.

     7. Miscellaneous.

          7.1 Governing Law; Jurisdiction. This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of Delaware without giving effect to
the principles of conflicts of laws. Any legal action or other legal proceeding relating to this
Agreement or the enforcement of any provision of this Agreement may be brought or otherwise
commenced in any state or federal court located in the State of Delaware. Each party hereto agrees
to the entry of an order to enforce any resolution, settlement, order or award made pursuant to
this Section 7.1 by the state and federal courts located in the State of Delaware and in connection
therewith hereby waives, and agrees not to assert by way of motion, as a defense, or otherwise, any
claim that such resolution, settlement, order or award is inconsistent with or violative of the
laws or public policy of the laws of the State of Delaware or any other jurisdiction.

          7.2 Successors and Assigns. Except as otherwise expressly provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the successor and assigns of
the parties hereto.

          7.3 Entire Agreement; Amendment. This Agreement, the Purchase Agreement and the
Warrants constitute the full and entire understanding and agreement between the parties with regard
to the subjects hereof and thereof. Any previous agreements among the parties relative to the
specific subject matter hereof, including but not limited to the Prior Agreement, are superseded by
this Agreement. Neither this Agreement nor any provision hereof may be amended, changed, waived,
discharged or terminated other than by a written instrument signed by the party against who
enforcement of any such amendment, change, waiver, discharge or termination is sought.

          7.4 Notices, etc. All notices and other communications required or permitted
hereunder shall be effective upon receipt and shall be in writing and may be delivered in person,
by telecopy, electronic mail, express delivery service or U.S. mail, in which event it may be
mailed by first-class, certified or registered, postage prepaid, addressed, to the party to be
notified, at the respective addresses set forth below, or at such other address which may
hereinafter be designated in writing:

	 	(a)	 	If to the Purchasers, to:
	 
	 	 	 	Warburg Pincus Private Equity X, L.P.

Warburg Pincus X Partners, L.P.

Warburg Pincus Private Equity VIII, L.P.

Warburg Pincus Netherlands Private Equity VIII, C.V. I

WP-WPVIII Investors, L.P.

c/o Warburg Pincus LLC

16

 

	 	 	 	466 Lexington Avenue

New York, NY 10017

Attention: Jeffrey A. Harris

Fax No. 212-878-6139

	 	 	 	with a copy to:
	 
	 	 	 	Willkie Farr & Gallagher LLP

787 Seventh Avenue

New York, NY 10019

Attention: Steven J. Gartner, Esq.

                 Robert T. Langdon, Esq.

Fax No. 212-728-8111
	 
	 	(b)	 	If to the Company, to:
	 
	 	 	 	Nuance Communications, Inc.

1 Wayside Road

Burlington, MA 01803

Attention: Chief Executive Officer

                 General Counsel

Phone: 781-565-5000

Fax: 781-565-5001
	 
	 	 	 	with a copy to:
	 
	 	 	 	Wilson Sonsini Goodrich & Rosati

1700 K Street, NW

Fifth Floor

Washington, DC 20006

Attention: Robert D. Sanchez, Esq.

Fax No.: 202-973-8899

          7.5 Severability. If any provision of this Agreement shall be judicially determined
to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

          7.6 Titles and Subtitles. The titles of the Articles and Sections of this Agreement
are for convenience of reference only and in no way define, limit, extend, or describe the scope of
this Agreement or the intent of any of its provisions.

          7.7 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be an original, but all of which together shall constitute one instrument.

17

 

          7.8 Delays or Omissions. It is agreed that no delay or omission to exercise any
right, power or remedy accruing to any party upon any breach or default of any other party under
this Agreement shall impair any such right, power or remedy, nor shall it be construed to be a
waiver of any such breach or default, or any acquiescence therein, or of any similar breach or
default thereafter occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring. It is further agreed
that any waiver, permit, consent or approval of any kind or character of any breach or default
under this Agreement, or any waiver of any provisions or conditions of this Agreement must be in
writing and shall be effective only to the extent specifically set forth in writing, and that all
remedies, either under this Agreement, by law or otherwise, shall be cumulative and not
alternative.

          7.9 Consents. Any permission, consent, or approval of any kind or character under
this Agreement shall be in writing and shall be effective only to the extent specifically set forth
in such writing.

          7.10 SPECIFIC PERFORMANCE. THE PARTIES HERETO AGREE THAT IRREPARABLE DAMAGE WOULD
OCCUR IN THE EVENT THAT ANY OF THE PROVISIONS OF THIS AGREEMENT WERE NOT PERFORMED IN ACCORDANCE
WITH ITS SPECIFIC INTENT OR WERE OTHERWISE BREACHED. IT IS ACCORDINGLY AGREED THAT THE PARTIES
SHALL BE ENTITLED TO AN INJUNCTION OR INJUNCTIONS, WITHOUT BOND, TO PREVENT OR CURE BREACHES OF THE
PROVISIONS OF THIS AGREEMENT AND TO ENFORCE SPECIFICALLY THE TERMS AND PROVISIONS HEREOF, THIS
BEING IN ADDITION TO ANY OTHER REMEDY TO WHICH THEY MAY BE ENTITLED BY LAW OR EQUITY, AND ANY PARTY
SUED FOR BREACH OF THIS AGREEMENT EXPRESSLY WAIVES ANY DEFENSE THAT A REMEDY IN DAMAGES WOULD BE
ADEQUATE.

          7.11 Construction of Agreement. No provision of this Agreement shall be construed
against either party as the drafter thereof.

          7.12 Section References. Unless otherwise stated, any reference contained herein to a
Section or subsection refers to the provisions of this Agreement.

          7.13 Variations of Pronouns. All pronouns and all variations thereof shall be deemed
to refer to the masculine, feminine, or neuter, singular or plural, as the context in which they
are used may require.

[Remainder of Page Intentionally Left Blank]

18

 

          IN WITNESS WHEREOF, the parties have caused this Third Amended and Restated
Stockholders Agreement to be duly executed and delivered by their proper and duly authorized
officers as of the day and year first written above.

	 	 	 	 	 
	 	 	NUANCE COMMUNICATIONS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Thomas Beaudoin
	 

	 	 	 	 
	 

	 	 	 	Name: Thomas Beaudoin
	 

	 	 	 	Title: Chief Financial Officer
	 
	 	 	 	 
	 	 	PURCHASERS
	 
	 	 	 	 
	 	 	WARBURG PINCUS PRIVATE EQUITY VIII, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	 	 	By: Warburg Pincus & Co.,
	 

	 	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick Severson
	 

	 	 	 	 
	 

	 	 	 	Name: Patrick Severson
	 

	 	 	 	Title: Managing Director
	 
	 	 	 	 
	 	 	WARBURG PINCUS NETHERLANDS
PRIVATE EQUITY VIII, C.V. I
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	 	 	By: Warburg Pincus & Co.,
	 

	 	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick Severson
	 

	 	 	 	 
	 

	 	 	 	Name: Patrick Severson
	 

	 	 	 	Title: Managing Director

[Signature Page to Third Amended and Restated Stockholders Agreement]

 

 

	 	 	 	 	 
	 	 	WP-WPVIII INVESTORS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	 	 	By: Warburg Pincus & Co.,
	 

	 	 	 	its Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick Severson
	 

	 	 	 	 
	 

	 	 	 	Name: Patrick Severson
	 

	 	 	 	Title: Managing Director
	 
	 	 	 	 
	 	 	WARBURG PINCUS PRIVATE EQUITY X, L.P.
	 
	 	 	 	 
	 

	 	By: 
	 	Warburg Pincus X L.P.,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By: 
	 	Warburg Pincus X LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners, LLC,
	 

	 	 	 	its Sole Member
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus & Co.,
	 

	 	    
	 	    its Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick Severson
	 

	 	 	 	 
	 

	 	 	 	Name: Patrick Severson
	 

	 	 	 	Title: Managing Director

[Signature Page to Third Amended and Restated Stockholders Agreement]

 

 

	 	 	 	 	 
	 	 	WARBURG PINCUS X PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By: 
	 	Warburg Pincus X L.P.,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus X LLC,
	 

	 	 	 	its General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners, LLC,
	 

	 	 	 	its Sole Member
	 
	 	 	 	 
	 

	 	By:
	 	Warburg Pincus & Co.,
	 

	 	    
	 	    its Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Patrick Severson
	 

	 	 	 	 
	 

	 	 	 	Name: Patrick Severson
	 

	 	 	 	Title: Managing Director

[Signature Page to Third Amended and Restated Stockholders Agreement]

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