Document:

EX-10(A)(VI)

 

Exhibit 10(a)(vi)

SECOND AMENDED AND RESTATED

H. J. HEINZ COMPANY GLOBAL

STOCK PURCHASE PLAN

 

 

SECOND AMENDED AND RESTATED

H. J. HEINZ COMPANY

GLOBAL

STOCK PURCHASE PLAN

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	I.
	 	Purpose	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	Eligibility	 	 	3	 
	 
	 	 	 	 	 	 
	4.
	 	Participation and Withdrawal	 	 	3	 
	 
	 	 	 	 	 	 
	5.
	 	Offering	 	 	5	 
	 
	 	 	 	 	 	 
	6.
	 	Purchase of Stock	 	 	7	 
	 
	 	 	 	 	 	 
	7.
	 	Payment and Delivery	 	 	7	 
	 
	 	 	 	 	 	 
	8.
	 	Recapitalization	 	 	7	 
	 
	 	 	 	 	 	 
	9.
	 	Merger, Liquidation, Other Corporation Transactions	 	 	8	 
	 
	 	 	 	 	 	 
	10.
	 	Transferability	 	 	8	 
	 
	 	 	 	 	 	 
	11.
	 	Amendment or Termination of the Plan	 	 	8	 
	 
	 	 	 	 	 	 
	12.
	 	Administration	 	 	9	 
	 
	 	 	 	 	 	 
	13.
	 	Committee Rules for Foreign Jurisdictions	 	 	10	 
	 
	 	 	 	 	 	 
	14.
	 	Securities Laws Requirements	 	 	10	 
	 
	 	 	 	 	 	 
	15.
	 	Government Regulations	 	 	10	 
	 
	 	 	 	 	 	 
	16.
	 	No Enlargement of Employee Rights	 	 	10	 
	 
	 	 	 	 	 	 
	17.
	 	Governing Law	 	 	11	 
	 
	 	 	 	 	 	 
	18.
	 	Effective Date	 	 	11	 
	 
	 	 	 	 	 	 
	Appendix
	 	A. Sub-Plan for Participants located in the European Economic Area	 	 	A-1	 

 

 

SECOND AMENDED AND RESTATED

H. J. HEINZ COMPANY

GLOBAL

STOCK PURCHASE PLAN

1. PURPOSE.

     The purpose of this Plan is to provide an opportunity for Employees of H. J. Heinz Company
(the “Corporation”) and its Designated Affiliates, to purchase Common Stock of the Corporation and
thereby to have an additional incentive to contribute to the prosperity of the Corporation. It is
not the intention of the Corporation that the Plan qualify as an “Employee Stock Purchase Plan”
under section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). In addition, this
Plan authorizes the grant of options and issuance of Common Stock pursuant to sub-plans adopted by
the Committee designed to achieve desired tax or other objectives in particular locations outside
the United States.

2. DEFINITIONS.

     (a) “Affiliate” shall mean (i) any parent corporation or subsidiary corporation of the
Corporation, as those terms are defined in Sections 424(e) and (f), respectively, of the Code and
(ii) any other entity (whether or not a corporation for tax or local law purposes) in which the
Corporation has an equity interest.

     (b) “Board” shall mean the Board of Directors of the Corporation.

     (c) “Code” shall mean the Internal Revenue Code of 1986, of the U.S.A., as amended.

     (d) “Committee” shall mean the committee appointed by the Board in accordance with
Section 12 of the Plan.

     (e) “Common Stock” shall mean the Common Stock of the Corporation, or any stock into
which such Common Stock may be converted.

     (f) “Compensation” shall mean an Employee’s total cash compensation including variable
and non-variable cash compensation, paid on account of personal services rendered by the Employee
to the Corporation or a Designated Affiliate, plus pre-tax contributions of the Employee which are
part of deferred compensation or benefit plans maintained by the Corporation or a Designated
Affiliate, with any modifications

 

 

determined by the Committee. The Committee shall have the
authority to determine and
approve all forms of compensation (such as commissions) to be included in the definition of
compensation and may change the definition on a prospective basis.

     (g) “Corporation” shall mean H. J. Heinz Company, a Pennsylvania corporation.

     (h) “Designated Affiliate” shall mean any Affiliate which has been designated by the
Committee as eligible to participate in the Plan with respect to its Employees.

     (i) “Employee” shall mean an individual classified as an employee by the Corporation
or a Designated Affiliate on the payroll records of the Corporation or the Designated Affiliate
during the relevant participation period.

     (j) “Offering Date” shall mean the first business day of each Purchase Period.

     (k) “Fair Market Value” shall mean the value of one (1) share of Common Stock on the
relevant date, determined as follows:

          (1) If the shares are traded on an exchange, the reported “closing price” on the trading day
which precedes the relevant day (e.g., the Offering Date or Purchase Date);

          (2) If (1) does not apply, the fair market value as determined by the Committee in good
faith. Such determination shall be conclusive and binding on all persons.

     (l) “Participant” shall mean a participant in the Plan as described in Section 4 of
the Plan.

     (m) “Plan” shall mean this Amended and Restated H. J. Heinz Company Global Stock
Purchase Plan.

     (n) “Purchase Date” shall mean the last business day of each Purchase Period.

     (o) “Purchase Period” shall mean a three-month, six-month or other period as
determined by the Committee, provided that such period shall not exceed 27 months. The first
Purchase Period shall commence on the Plan’s Effective Date. Subsequent Purchase Periods, if any,
shall run consecutively after the termination of the preceding Purchase Period.

 

 

     (p) “Shareholder” shall mean a record holder of shares entitled to vote shares of
Common Stock under the Corporation’s by-laws.

3. ELIGIBILITY.

     Any Employee regularly employed on a full-time or part-time basis by the Corporation or by a
Designated Affiliate on an Offering Date shall be eligible to participate in the Plan with
respect to the Purchase Period commencing on such Offering Date, provided that the Committee may
establish administrative rules requiring that employment commence some minimum period (e.g., one
month’s employment) prior to an Offering Date for the Employee to be eligible to participate with
respect to the Purchase Period beginning on that Offering Date and provided further that (1) the
Committee may exclude part-time employees from participation pursuant to criteria and procedures
established by the Committee and (2) the Committee may impose an eligibility period on
participation of up to two years employment with the Corporation and/or a Designated Affiliate
with respect to participation on any prospective Offering Date. The Board also may determine
that a designated group of highly compensated Employees are ineligible to participate in the Plan
so long as the excluded category fits within the definition of “highly compensated employee” in
Code section 414(g). An Employee shall be considered employed on a full-time basis unless his or
her customary employment is less than 20 hours per week or five months per year. Employees whose
employment terms are covered by a collective bargaining agreement are ineligible to participate
in the Plan unless the collective bargaining agreement specifically provides for participation in
this Plan. The Board may impose restrictions on eligibility and participation of Employees who
are officers and directors to facilitate compliance with federal or state securities laws,
foreign laws, stock exchange requirements or U.S. accounting rules.

4. PARTICIPATION AND WITHDRAWAL.

     4.1 An Employee who is eligible to participate in the Plan in accordance with Section 3 may
become a Participant by filing, on a date prescribed by the Committee prior to an applicable
Offering Date, a completed payroll deduction authorization and Plan enrollment form provided by
the Corporation or by following an electronic or other enrollment process as prescribed by the
Committee. Participation may be conditioned on an eligible Employee’s consent to transfer and
process personal data and on acknowledgment and agreement to Plan terms and other specified
conditions. An eligible Employee may authorize payroll deductions at the rate of any whole
percentage of the Employee’s base salary, not to exceed fifteen percent (15%) of the Employee’s
Compensation, or such greater percentage, as specified by the Committee, as applied to a Purchase
Period. The Committee may provide for a separate election (of a different percentage) for a
specified item or items of Compensation, including specified bonus payments, if any. All payroll
deductions may be held by the Corporation and commingled with its other corporate funds. No
interest shall be paid or

 

 

credited to the Participant with respect to such payroll deductions
except where required by local law as determined by the Committee. A separate bookkeeping
account for each Participant shall be maintained by the Corporation under the Plan and the amount
of each
Participant’s payroll deductions shall be credited to such account. A Participant may not make
any additional payments into such account. Payroll deductions made with respect to employees
paid in currencies other than U.S. dollars shall be converted to U.S. dollars as of each Purchase
Date using the then applicable exchange rate, as determined by the Committee; provided, however,
that the Committee may determine, with respect to any Purchase Period, that payroll deductions
shall be converted to U.S. dollars based on an average or median exchange rate applicable for the
relevant Purchase Period.

     4.2 A Participant may decrease his or her rate of payroll deductions at any time unless
other procedures are prescribed by the Committee. A Participant may increase his or her rate of
payroll deductions only effective on the first payroll date following the next Purchase Date by
filing a new payroll deduction authorization and Plan enrollment form or by following electronic
or other procedures prescribed by the Committee. If a Participant has not followed such
procedures to change the rate of payroll deductions, the rate of payroll deductions shall
continue at the originally elected rate throughout the Purchase Period and future Purchase
Periods unless the Committee determines to change the maximum permissible rate.

     4.3 (a) Under procedures established by the Committee, a Participant may discontinue
participation in the Plan at any time during a Purchase Period by completing and filing a new
payroll deduction authorization and Plan enrollment form with the Corporation or by following
electronic or other procedures prescribed by the Committee. If a Participant has not followed
such procedures to discontinue the payroll deductions, the rate of payroll deductions shall
continue at the originally elected rate throughout the Purchase Period and future Purchase
Periods unless the Committee determines to change the maximum permissible rate.

          (b) If a Participant discontinues participation during a Purchase Period, his or her
accumulated payroll deductions will remain in the Plan for purchase of shares as specified in
Section 6 on the following Purchase Date, but the Participant will not again participate until he
or she re-enrolls in the Plan. Alternatively, participants may request a cash distribution of
monies accumulated but not yet distributed by following such procedures, electronic or otherwise,
as specified by the Committee. The Committee may establish rules limiting the frequency with
which Participants may discontinue and resume payroll deductions under the Plan and may impose a
waiting period on Participants wishing to resume payroll deductions following discontinuance.
The Committee also may change the rules regarding discontinuance of participation or changes in
participation in the Plan.

 

 

          (c) In the event any Participant terminates employment with the Corporation or any
Designated Affiliate for any reason (including death) prior to the expiration of a Purchase
Period, the Participant’s participation in the Plan shall terminate and all amounts credited to
the Participant’s account shall be paid to the Participant or the Participant’s estate without
interest (except where required by local law). Whether a
termination of employment has occurred shall be determined by the Committee. The Committee also
may establish rules regarding when leaves of absence or change of employment status (e.g., from
full-time to part-time, transfer to an Affiliate which is not a Designated Affiliate) will be
considered to be a termination of employment, and the Committee may establish termination of
employment procedures for this Plan which are independent of similar rules established under
other benefit plans of the Corporation and its Affiliates. In the event of a Participant’s
death, any accumulated payroll deductions will be paid, without interest, to the estate or legal
representative of the Participant.

5. OFFERING.

     5.1 The maximum number of shares of Common Stock which may be issued pursuant to the Plan
shall be 5,000,000 shares.

     5.2 Each Purchase Period shall be determined by the Committee. Unless otherwise determined
by the Committee, the Plan will operate with successive semi-annual Purchase Periods commencing
at the Plan Effective Date. The Committee shall have the power to change the duration of future
Purchase Periods, without shareholder approval, and without regard to the expectations of any
Participants.

     5.3 With respect to each Purchase Period, each eligible Employee who has elected to
participate as provided in Section 4.1 shall be granted an option to purchase the number of
shares of Common Stock which may be purchased with the payroll deductions accumulated in an
account maintained on behalf of such Employee (assuming payroll deductions at a rate of 15% of
base salary or such greater percentage of base salary as determined by the Committee) during each
Purchase Period at the purchase price specified in Section 5.4 below. Each eligible employee is
subject to a limit of $25,000 for purchases during a calendar year.

     5.4 The option price under each option shall be (not less than eighty-five percent (85%))
established by the Committee (“Designated Percentage”) of the Fair Market Value (as defined in
Section 2(k)) of the Common Stock on the Purchase Date on which the Common Stock is purchased.
The Committee may change the Designated Percentage with respect to any future Purchase Period,
but not below eighty-five percent (85%), and the Committee may determine with respect to any
prospective Purchase Period that the option price shall be the Designated Percentage of the Fair
Market Value of the Common Stock on the Purchase Date.

 

 

6. PURCHASE OF STOCK.

     Upon the expiration of each Purchase Period, a Participant’s option shall be exercised
automatically for the purchase of that number of full and fractional shares of
Common Stock which the accumulated payroll deductions credited to the Participant’s account at
that time shall purchase at the applicable price specified in Section 5.4.

7. PAYMENT AND DELIVERY.

     Upon the exercise of an option on each Purchase Date, the Corporation shall deliver (by
electronic or other means) to the Participant a record of the Common Stock purchased, except as
specified below. The Committee may permit or require that shares be deposited directly with a
broker designated by the Committee (or a broker selected by the Committee) or to a designated
agent of the Company, and the Committee may utilize electronic or automated methods of share
transfer. The Committee may require that shares be retained with such broker or agent for a
designated period of time (and may restrict dispositions during that period) and/or may establish
other procedures to permit tracking of such shares or to restrict transfer of such shares. The
Committee may require that shares purchased under the Plan shall automatically participate in a
dividend reinvestment plan or program maintained by the Corporation. The Corporation shall
retain the amount of payroll deductions used to purchase Common Stock as full payment for the
Common Stock and the Common Stock shall then be fully paid and non-assessable. No Participant
shall have any voting, dividend, or other shareholder rights with respect to shares subject to
any option granted under the Plan until the shares subject to the option have been purchased and
delivered to the Participant as provided in Section 7.

8. RECAPITALIZATION.

     8.1 If after the grant of an option, but prior to the purchase of Common Stock under the
option, there is any increase or decrease in the number of outstanding shares of Common Stock
because of a stock split, stock dividend, combination or recapitalization of shares subject to
options, the number of shares to be purchased pursuant to an option, the share limit of Section
5.3 and the maximum number of shares specified in Section 5.1 shall be proportionately increased
or decreased, the terms relating to the purchase price with respect to the option shall be
appropriately adjusted by the Board, and the Board shall take any further actions which, in the
exercise of its discretion, may be necessary or appropriate under the circumstances.

     8.2 The Board, if it so determines in the exercise of its sole discretion, also may adjust
the number of shares specified in Section 5.1, as well as the price per share of Common Stock
covered by each outstanding option and the maximum number of shares subject to any individual
option, in the event the Corporation effects one or more

 

 

reorganizations, recapitalizations,
spin-offs, split-ups, rights offerings or reductions of shares of its outstanding Common Stock.

     8.3 The Board’s determinations under this Section 8 shall be conclusive and binding on all
parties.

9. MERGER, LIQUIDATION, OTHER CORPORATION TRANSACTIONS.

     9.1 In the event of the proposed liquidation or dissolution of the Corporation, the Purchase
Period then in progress will terminate immediately prior to the consummation of such proposed
liquidation or dissolution, unless otherwise provided by the Board in its sole discretion, and
all outstanding options shall automatically terminate and the amounts of all payroll deductions
will be refunded without interest to the Participants.

     9.2 In the event of a proposed sale of all or substantially all of the assets of the
Corporation, or the merger or consolidation of the Corporation with or into another corporation,
then in the sole discretion of the Board, (1) each option shall be assumed or an equivalent
option shall be substituted by the successor corporation or parent or subsidiary of such
successor corporation, (2) a date established by the Board on or before the date of consummation
of such merger, consolidation or sale shall be treated as an Exercise Date, and all outstanding
options shall be deemed exercisable on such date or (3) all outstanding options shall terminate
and the accumulated payroll deductions shall be returned to the Participants, without interest.

10. TRANSFERABILITY.

     Options granted to Participants may not be voluntarily or involuntarily assigned,
transferred, pledged, or otherwise disposed of in any way, and any attempted assignment,
transfer, pledge, or other disposition shall be null and void and without effect. If a
Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or
interest under the Plan, other than as permitted by the Code, such act shall be treated as an
election by the Participant to discontinue participation in the Plan pursuant to Section 4.2.

11. AMENDMENT OR TERMINATION OF THE PLAN.

     11.1 The Plan shall continue until September 14, 2014, unless previously terminated in
accordance with Section 11.2.

     11.2 The Board may, in its sole discretion, insofar as permitted by law, terminate or
suspend the Plan, or revise or amend it in any respect whatsoever, except that, without approval
of the shareholders, no such revision or amendment shall:

 

 

          (a) materially increase the number of shares subject to the Plan, other than an adjustment
under Section 8 of the Plan;

          (b) materially modify the requirements as to eligibility for participation in the Plan,
except as otherwise specified in this Plan;

          (c) materially increase the benefits accruing to Participants;

          (d) reduce the purchase price specified in Section 5.4, except as specified in Section 8;

          (e) extend the term of the Plan beyond the date specified in Section 11.1; or

          (f) amend this Section 11.2 to defeat its purpose.

12. ADMINISTRATION.

     The Board shall appoint a Committee consisting of at least two members who will serve for
such period of time as the Board may specify and who may be removed by the Board at any time.
The Committee will have the authority and responsibility for the day-to-day administration of the
Plan, the authority and responsibility specifically provided in this Plan and any additional
duties, responsibility and authority delegated to the Committee by the Board, which may include
any of the functions assigned to the Board in this Plan. The Committee may delegate to one or
more individuals the day-to-day administration of the Plan. The Committee shall have full power
and authority to promulgate any rules and regulations which it deems necessary for the proper
administration of the Plan, to interpret the provisions and supervise the administration of the
Plan, to make factual determinations relevant to Plan entitlements, to adopt sub-plans applicable
to specified Affiliates or locations and to take all action in connection with administration of
the Plan as it deems necessary or advisable, consistent with the delegation from the Board.
Decisions of the Board and the Committee shall be final and binding upon all participants. Any
decision reduced to writing and signed by a majority of the members of the Committee shall be
fully effective as if it had been made at a meeting of the Committee duly held. The Corporation
shall pay all expenses incurred in the administration of the Plan. No Board or Committee member
shall be liable for any action or determination made in good faith with respect to the Plan or
any option granted thereunder.

 

 

13. COMMITTEE RULES FOR FOREIGN JURISDICTIONS.

     13.1 The Committee may adopt rules or procedures relating to the operation and
administration of the Plan to accommodate the specific requirements of local laws and procedures.
Without limiting the generality of the foregoing, the Committee is specifically authorized to
adopt rules and procedures regarding handling of payroll deductions, payment of interest,
conversion of local currency, payroll tax, withholding procedures and handling of stock
certificates which vary with local requirements.

     13.2 The Committee may also adopt sub-plans applicable to particular Affiliates or
locations. The rules of such sub-plans may take precedence over other provisions of this Plan,
with the exception of Section 5.1, but unless otherwise superseded by the terms of such sub-plan,
the provisions of this Plan shall govern the operation of such sub-plan.

14. SECURITIES AND EXCHANGE CONTROL LAWS REQUIREMENTS.

     The Corporation shall not be under any obligation to issue Common Stock upon the exercise of
any option unless and until the Corporation has determined that: (i) it and the Participant have
taken all actions required to register the Common Stock under the Securities Act of 1933, or to
perfect an exemption from the registration requirements thereof; (ii) any applicable listing
requirement of any stock exchange on which the Common Stock is listed has been satisfied; and
(iii) all other applicable provisions of state, federal and applicable foreign law have been
satisfied.

15. GOVERNMENTAL REGULATIONS.

     This Plan and the Corporation’s obligation to sell and deliver shares of its stock under the
Plan shall be subject to the approval of any governmental authority required in connection with
the Plan or the authorization, issuance, sale, or delivery of stock hereunder.

16. NO ENLARGEMENT OF EMPLOYEE RIGHTS.

     Nothing contained in this Plan shall be deemed to give any Employee the right to be retained
in the employ of the Corporation or any Designated Affiliate or to interfere with the right of
the Corporation or Designated Affiliate to discharge any Employee at any time. It is not
intended that any rights or benefits provided under this Plan shall be considered part of normal
or expected compensation for purposes of calculating any severance, resignation, redundancy, end
of service payments, bonuses, long service awards, pension, retirement or similar payments.

 

 

17. GOVERNING LAW.

     This Plan shall be governed by Pennsylvania law.

18. EFFECTIVE DATE.

     This Plan was effective September 15, 1999, subsequent to the approval of the shareholders of
the Corporation at the annual meeting on September 9, 1999. This plan as amended shall be
effective upon approval of the shareholders of the Corporation at The Annual Meeting on August 15,
2007.

 

 

A-1

H.J. HEINZ COMPANY (“HEINZ”)

SUB-PLAN TO THE

GLOBAL STOCK PURCHASE PLAN (the “PLAN”)

FOR PARTICIPANTS LOCATED IN THE EUROPEAN ECONOMIC AREA

I. PURPOSE OF THE SUB-PLAN.

Heinz has established the Plan to provide eligible employees with an opportunity to purchase Common
Stock and thereby have an additional incentive to contribute to the prosperity of the Company.

Section 13.2 of the Plan authorizes the Committee to adopt special terms applicable to particular
Affiliates or locations. The Committee has determined that it is appropriate and advisable to
establish a Sub-Plan to the Plan with effect from May 8, 2007, for the purpose complying with
applicable local laws implementing the EU Prospectus Directive. The terms of the Plan shall,
subject to the modifications in the following rules, constitute a Sub-Plan to the Plan for
Participants located in any EU Member State or European Economic Area (“EEA”) treaty adherent state
(the “Sub-Plan”).

II. TERMS OF THE SUB-PLAN.

Notwithstanding any other provision in the Plan, in no event shall the total consideration to be
paid by Participants located in EU Member States and EEA treaty adherent states for the purchase of
the Company’s Common Stock pursuant to an offer under this Sub-Plan, when combined with the total
consideration of all other offers of securities to the public by the Company of its Common Stock
within EU Member States and EEA treaty adherent states, exceed the amount of €2,499,999 in a
twelve month period. In order not to exceed this limit, the Company shall limit the number of
shares of Common Stock that may be purchased by such Participants to ensure that the total
consideration of all offers of its Common Stock within EU Member States and European Economic Area
treaty adherent states does not exceed €2,499,999 in a twelve month period. Any such limit
imposed under this Sub-Plan will be applied to all impacted Participants on similar terms and on a
pro-rata basis.EX-10(A)(VII)

 

Exhibit 10(a)(vii)

H. J. Heinz Company

Second Amended and Restated Fiscal Year 2003 Stock Incentive Plan

1. Purposes

The purposes of the Plan are to promote the growth and profitability of the Company by enabling it
to attract and retain the best available personnel for positions of substantial responsibility; to
motivate Participants, by means of appropriate incentives, to achieve long-range goals; to provide
incentive compensation opportunities that are competitive with those of other similar companies;
and to align Participants’ interests with those of the Company’s other shareholders through
compensation that is based on the Company’s Common Stock and thereby promote the long-term
financial interest of the Company and its Subsidiaries, including the growth in value of the
Company’s equity and enhancement of long-term shareholder return.

2. Effective Date

Subject to the approval of the shareholders of the Company at the annual meeting of the Company’s
shareholders on September 12, 2002, the Plan shall be effective as of September 12, 2002. The Plan
shall be unlimited in duration and, in the event of Plan termination, shall remain in effect as
long as any Awards under it are outstanding.

3. Definitions

Capitalized terms used in this Plan have the meanings specified in this Section 3:

“Award” means a grant to a Participant of Options, Stock Appreciation Rights, Restricted Stock,
Restricted Stock Units, Performance Shares, Cash Awards, or any combination thereof.

“Award Grant” means the written notification or agreement confirming an Award and setting forth the
terms and conditions thereof.

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

“Cash Award” means the right to receive cash with the amount of such cash subject to achievement of
specified Performance Goals and subject to such other restrictions and conditions as may be
established by the Committee.

“Cause” means an act of dishonesty, moral turpitude or an intentional or grossly negligent act
detrimental to the best interests of the Company or a Subsidiary, as determined by the Committee;
provided that, if a Participant is a party to a Severance Protection Agreement with the Company,
and such Participant’s employment with the Company is terminated in a manner such that the
Participant is entitled to any payments or benefits (including accrued payments or benefits) under
the terms of the Severance Protection Agreement, then “Cause” for purposes of this Plan shall have
the meaning set forth in the Severance Protection Agreement.

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

(1) An acquisition (other than directly from the Company) of any voting securities of the Company
(the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d)
or 14(d) of the Exchange Act) immediately after which such Person has “Beneficial Ownership”
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or
more of the

 

 

combined voting power of the Company’s then outstanding Voting Securities; provided, however, that
in determining whether a Change in Control has occurred, Voting Securities which are acquired in a
“Non-Control Acquisition” (as hereinafter defined) shall not constitute an acquisition which would
cause a Change in Control. A “Non-Control Acquisition” means an acquisition by (i) an employee
benefit plan (or a trust forming a part thereof) maintained by the Company or any Subsidiary, (ii)
the Company or any Subsidiary, or (iii) any Person in connection with a transaction described in
paragraph (3) below.

(2) The individuals who, as of the Effective Date, are members of the Board of Directors (the
“Incumbent Board”), cease for any reason to constitute at least two-thirds of the Board of
Directors; provided, however, that if the election, or nomination for election by the Company’s
shareholders, of any new director was approved by a vote of at least two-thirds of the Incumbent
Board, such new director shall, for purposes of this Plan, be considered as a member of the
Incumbent Board; provided, further, however, that no individual shall be considered a member of the
Incumbent Board if such individual initially assumed office as a result of either an actual or
threatened “Election Consent” (as described in Rule 14a-11 promulgated under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board of Directors (a “Proxy Contest”) including by reason of any agreement intended to
avoid or settle any Election Contest or Proxy Contest.

(3) A merger, consolidation or reorganization involving the Company or a subsidiary of the Company,
unless

(i) the Voting Securities of the Company, immediately before such merger, consolidation or
reorganization, continue immediately following such merger, consolidation or reorganization to
represent, either by remaining outstanding or by being converted into voting securities of the
surviving corporation resulting from such merger, consolidation or reorganization or its parent
(the “Surviving Corporation”), at least sixty percent (60%) of the combined voting power of the
outstanding voting securities of the Surviving Corporation;

(ii) the individuals who were members of the Incumbent Board immediately before the execution of
the agreement providing for such merger, consolidation or reorganization constitute more than
one-half of the members of the board of directors of the Surviving Corporation; and

(iii) no person (other than the Company, any Subsidiary, any employee benefit plan (or any trust
forming a part thereof) maintained by the Company, the Surviving Corporation or any Subsidiary, or
any Person who, immediately before such merger, consolidation or reorganization had Beneficial
Ownership of fifteen percent (15%) or more of the then outstanding Voting Securities) has
Beneficial Ownership of fifteen percent (15%) or more of the combined voting power of the Surviving
Corporation’s then outstanding voting securities.

(4) A complete liquidation or dissolution of the Company.

(5) Completion of the sale or other disposition of all or substantially all of the assets of the
Company to any Person (other than a transfer to a Subsidiary).

(6) Any other transaction involving the Company designated as a “Change in Control” by a majority
of the Board of Directors.

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any
Person (the “Subject Person”) acquired Beneficial Ownership of more than the permitted amount of
the outstanding Voting Securities as a result of the acquisition of Voting Securities by the
Company which, by reducing the number of Voting Securities outstanding, increases the proportional
number of shares Beneficially Owned by the Subject Person,

2

 

provided that if a Change in Control would occur (but for the operation of this sentence) as a
result of the acquisition of Voting Securities by the Company, and after such share acquisition by
the Company the Subject Person becomes the Beneficial Owner of any additional voting Securities
which increases the percentage of the then outstanding Voting Securities Beneficially Owned by the
Subject Person, then a Change in Control shall occur.

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

“Committee” means the Management Development and Compensation Committee of the Board of Directors
described in Section 4, or any committee or other person or persons designated by the Board of
Directors as successor to the powers and duties of the Management Development and Compensation
Committee as described in

Section 4.

“Common Stock” means the Company’s common stock, par value $.25 per share, except as this
definition may be modified as provided in Section 13.

“Company” means H. J. Heinz Company, a Pennsylvania corporation.

“Covered Employee” means a person defined as such in Code section 162(m)(3) and the regulations
thereunder (or any successor section and regulations thereunder).

“Date of Termination” means the first day occurring on or after the date or grant of an Award on
which the Participant is not performing services for the Company or any Subsidiary, regardless of
the reason for cessation of services; provided that a cessation of services shall not be deemed to
occur by reason of a transfer of a Participant between the Company and a Subsidiary or between two
Subsidiaries; and further provided that a Participant’s services shall not be considered terminated
while the Participant is on an approved leave of absence from the Company or a Subsidiary. If, as a
result of a sale or other transaction, the organization for which a Participant is performing
services ceases to be the Company or a Subsidiary and the Participant is not, at the end of the
30-day period following the transaction, performing services for the Company or an organization
that is then a Subsidiary, then the occurrence of such transaction shall be treated as the
Participant’s Date of Termination.

“Director” means any member of the Board of Directors who is not an Employee.

“Disability” has the meaning ascribed to such term in the Company’s Long Term Disability Plan. For
the purposes of this Plan, the question whether a Participant’s condition shall be considered a
Disability shall be determined in each case by the Committee and such determination by the
Committee shall be final and binding. Notwithstanding the foregoing, if a Participant is a party
to a Severance Protection Agreement with the Company, and such Participant’s employment with the
Company is terminated in a manner that the Participant is entitled to any payments or benefits
(including accrued payments or benefits) under the term of the Severance Protection Agreement, then
“Disability” for purposes of this Plan shall have the meaning set forth in the Severance Protection
Agreement.

“Effective Date” shall have the meaning set forth in Section 2.

“Employee” means any employee of the Company or a Subsidiary, including any such person who is an
officer or a member of the Board of Directors.

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

“Exercise Period” means the period from the date of grant of an Option or Stock Appreciation Right
to the Expiration Date of such Option or Stock Appreciation Right.

“Exercise Price” means the price established by the Committee (or determined according to a method
established by the Committee) at the time an Option or Stock Appreciation Right is granted and
shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of
grant of the Option or Stock Appreciation Right (or, if greater, the par value of a share of Common
Stock), provided that if a Stock Appreciation Right is granted in tandem

3

 

with an Option that was previously outstanding, the Exercise Price of such Stock Appreciation Right
shall not be less than 100% of the Fair Market Value of a share of Common Stock on the date of
grant of the Option (or, if greater, the par value of a share of Common Stock on such date).

“Expiration Date” means, with respect to an Option or Stock Appreciation Right, the date specified
in the Award Grant after which such Option or Stock Appreciation Right may not be exercised;
provided that the Expiration Date shall not be later than the earliest to occur of:

(i) the ten-year anniversary of the date of grant;

(ii) if the Participant’s Date of Termination occurs by reason of Retirement, the five-year
anniversary of such Date of Termination;

(iii) if the Participant’s Date of Termination occurs by reason of death or Disability, the
one-year anniversary of such Date of Termination;

(iv) if the Participant’s Date of Termination occurs by reason of involuntary termination without
Cause by the Company or a Subsidiary, or by the Participant for Good Reason, the 90th day after the
Date of Termination unless the Committee determines otherwise;

(v) if the Participant’s Date of Termination occurs by reason of involuntary termination by the
Company or a Subsidiary for Cause, the Date of Termination; or

(vi) if the Participant’s Date of Termination occurs voluntarily by the Participant or for any
other reason not described above, the Date of Termination.

The Committee in its sole discretion may establish an Expiration Date later than as described
above, but not later than the ten-year anniversary of the date of grant. Notwithstanding the
foregoing, if the Participant’s Date of Termination occurs by reason of death or Disability or if
death or Disability of the Participant occurs after Retirement or involuntary termination without
Cause and before the otherwise applicable Expiration Date, the Expiration Date for a Non-Statutory
Option or Stock Appreciation Right which was exercisable as of the date of death or Disability or
which becomes exercisable by reason of death or Disability shall not be earlier than the first
anniversary of the date of Date of Termination.

“Fair Market Value” as of any specified date means the closing sale price of the Common Stock on
the New York Stock Exchange—Composite Tape on such date or, if there are no sales on such date, on
the next day on which there are sales.

“Good Reason” means the occurrence after a Change in Control of any of the events or conditions
described in the following subsections (1) through (5):

(1) a change in the Participant’s title, position, duties or responsibilities
(including reporting responsibilities) which represents an adverse change from
the Participant’s title, position, duties or responsibilities as in effect at
any time within 90 days preceding the date of the Change in Control or at any
time thereafter; or any removal of the Participant from or failure to reappoint
or reelect him or her to any one of such offices or positions, except in
connection with the termination of the Participant’s employment for Disability,
Cause, as a result of the Participant’s death, or by the Participant other than
for Good Reason;

(2) a reduction in the Participant’s base salary or any failure to pay the
Participant any compensation or benefits to which the Participant is entitled
within five days after the date due;

(3) the Participant being required by the Company to perform the Participant’s
regular duties at any place outside a 30-mile radius from the place where the
Participant’s regular duties were performed immediately before the Change in
Control, except for reasonably required travel on the Company’s business which
is not materially greater than such travel requirements in effect immediately
before the Change in Control;

(4) the failure by the Company to provide the Participant with compensation and
benefits, in the aggregate, at least equal (in opportunities) to those provided
for under the compensation and employee benefit plans, programs and practices in
which the Participant was participating at any time within 90 days preceding the
date of a Change in Control or at any time thereafter; or

(5) for any Participant who is a party to a Severance Protection Agreement with
the Company, any additional event or condition that constitutes “Good Reason”
under such Severance Protection Agreement.

4

 

Any event or condition described in subsections (1) through (5), above, which occurs before a
Change in Control but which the Participant reasonably demonstrates (a) was at the request of a
third party who has indicated an intention or taken steps reasonably calculated to effect a Change
in Control and who effectuates a Change in Control or (b) otherwise arose in connection with, or in
anticipation of, a Change in Control which actually occurs, shall constitute Good Reason for
purposes of this Plan notwithstanding that it occurred before the Change in Control.

“Incentive Option” means an Option which is an “incentive stock option” as defined in Code section
422 (or any successor section thereto).

“Non-Statutory Option” means an Option which is not intended to qualify as an Incentive Option as
defined above.

“Option” means an Incentive Option or a Non-Statutory Option granted by the Company pursuant to the
Plan to purchase shares of Common Stock at an Exercise Price established by the Committee.

“Participant” means an Employee, Director or other person selected by the Committee to receive an
Award. The term shall include any transferee or transferees of any person who has received an Award
to the extent the transfer is permitted by the Plan and the applicable Award Grant.

“Performance Award” means an Award of Performance Shares and/or a Cash Award.

“Performance Goal” means a target based on Performance Measures that is established by the
Committee in connection with a Performance Award; Performance Goals may be

5

 

established on a corporate-wide basis or with respect to one or more business units, divisions, or
subsidiaries, and may be in either absolute terms or relative to the performance of one or more
comparable companies or an index covering multiple companies.

“Performance Measures” means criteria established by the Committee relating to any of the
following: revenue; earnings before interest, taxes, depreciation and amortization (EBITDA);
operating income; pre- or after-tax income; cash flow; cash flow per share; net earnings; earnings
per share; return on equity; return on invested capital; return on assets; economic value added (or
an equivalent metric); share price performance; total shareholder return; improvement in or
attainment of expense levels; improvement in or attainment of working capital levels; ability to
execute against customer service goals; and innovation as measured by a percentage of sales from
new products. Performance Measures may be applied by excluding the impact of charges for
restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring
items, and the cumulative effects of accounting changes, each as defined by generally accepted
accounting principles.

“Performance Share” means a grant of shares of Common Stock, Restricted Stock or Restricted Stock
Units which are contingent on achievement of specified Performance Goals and satisfaction of such
other restrictions and conditions as may be established by the Committee.

“Plan” means the H. J. Heinz Company Fiscal Year 2003 Stock Incentive Plan.

“Restricted Stock” means a grant of shares of Common Stock subject to a risk of forfeiture or other
restrictions that will lapse upon the completion of service by the Participant, or achievement of
other objectives, as determined by the Committee.

“Restricted Stock Unit” means a grant of a Stock Unit which is subject to a risk of forfeiture or
other restrictions including those that will lapse upon the completion of service by the
Participant, or achievement of other objectives, as determined by the Committee.

“Retirement” means cessation of services for the Company or a Subsidiary by reason of retirement
under the provisions of any formal retirement plan of the Company or Subsidiary.

“Stock Appreciation Right” means a grant which entitles the Participant to receive, in cash or
Common Stock (as determined pursuant to subsection 7(C)), value equal to (or otherwise based on)
the excess of: (a) the Fair Market Value of a specified number of shares of Common Stock at the
time of exercise over
(b) an Exercise Price established by the Committee.

“Stock Unit” means a right to receive shares of Common Stock in the future.

“Subsidiary” means any corporation, partnership, joint venture or other entity during any period in
which at least a fifty percent voting or profits interest is owned, directly or indirectly, by the
Company (or by any entity that is a successor to the Company), and any other business venture
designated by the Committee in which the Company (or any entity that is a successor to the Company)
has a significant interest, as determined in the discretion of the Committee.

“Subsidiary Corporation” means any corporation in which the Company owns, directly (or indirectly
through Subsidiary Corporations), at least 50% of the total combined voting power of all classes of
stock.

“Successor” means the person or persons entitled in lieu of the Participant to receive any shares
of Common Stock or other benefits under the Plan by reason of a beneficiary designation, will, laws
of intestacy, or family assignments as permitted under the Plan. The Successor of a deceased
Participant shall be the person or persons entitled to do so under a beneficiary designation in
accordance with Section 11 or, if none, under the Participant’s will

6

 

or, if the Participant shall have failed to designate a beneficiary or make testamentary
disposition of such benefits or shall have died intestate, by the Participant’s legal
representative or representatives.

“Surviving Corporation” means the surviving corporation, its parent or any other entity that
results from any merger, consolidation or reorganization of the Company.

4. Administration

The Plan shall be administered by a Management Development and Compensation Committee of not less
than three Directors of the Company appointed by the Board of Directors. No person shall be
eligible or continue to serve as a member of such Committee unless such person is “independent” as
defined by the New York Stock Exchange and an “outside director” within the meaning of regulations
under Code section 162(m).

The Committee shall keep minutes of its meetings. A majority of the Committee shall constitute a
quorum thereof and the acts of a majority of the members present at any meeting of the Committee at
which a quorum is present, or acts approved in writing by the entire Committee, shall be the acts
of the Committee.

The Committee shall have the authority and discretion to interpret the Plan and to make such rules
and regulations and establish such procedures for the administration of the Plan as it deems
appropriate. In the event of any dispute or disagreement as to the interpretation of this Plan or
of any rule, regulation or procedure, or as to any question, right or obligation arising from or
related to the Plan, the decision of the Committee shall be final and binding upon all persons.

Except to the extent prohibited by applicable law or the applicable rules of a stock exchange, the
Committee may allocate all or any portion of its responsibilities and powers to any one or more of
its members and may delegate all or any part of its responsibilities and powers to the Chief
Executive Officer of the Company or a committee of officers of the Company, except with respect to
Awards to any Covered Employee or to an officer or other person subject to Section 16 of the
Exchange Act. Any such allocation or delegation may be revoked by the Committee at any time.

5. Eligibility

Subject to the provisions of the Plan, the Committee shall determine and designate, from time to
time, those Employees, Directors or other persons who will be granted one or more Awards under the
Plan, and who thereby will become “Participants” in the Plan.

(A) In determining eligibility to receive an Award, as well as in determining the type and amount
of the Award to any Participant, the Committee shall consider the position and responsibilities of
the person being considered, the nature and value to the Company or a Subsidiary of such person’s
services and accomplishments, such person’s present and potential contribution to the success of
the Company or its Subsidiaries and such other factors as the Committee may deem relevant.

(B) The Plan does not constitute a contract of employment or for provision of other services, and
selection as a Participant will not give any participating employee or other individual the right
to be retained in the employ of or continue to provide services to the Company or any Subsidiary or
give any participating employee or other individual any right or claim to any benefit under the
Plan, unless such right or claim has specifically accrued under the terms of the Plan, nor shall
the Plan in any way interfere with the right of the Company or any Subsidiary to terminate the
employment or services of any participating employee or other individual at any time.

7

 

(C) Neither a Participant nor any other person shall, by reason of participation in the Plan,
acquire any right in or title to any assets, funds or property of the Company or any Subsidiary
whatsoever, including, without limitation, any specific funds, assets, or other property which the
Company or any Subsidiary, in its sole discretion, may set aside in anticipation of a liability
under the Plan. A Participant shall have only a contractual right to the Common Stock or amounts,
if any, payable under the Plan, unsecured by any assets of the Company or any Subsidiary, and
nothing contained in the Plan shall constitute a guarantee that the assets of the Company or any
Subsidiary shall be sufficient to pay any benefits to any person.

6. Shares Available

Subject to the provisions of Section 13, the type and number of shares of Common Stock for which
Awards may be granted under the Plan shall be determined in accordance with this Section 6:

(A) The shares of Common Stock with respect to which Awards may be made under the Plan shall be
shares authorized but unissued or currently held or shares reacquired by the Company and presently
or hereafter held as treasury shares, including shares purchased in the open market or in private
transactions.

(B) Subject to the following provisions of this Section 6, the maximum number of shares of Common
Stock that may be delivered to Participants and their Successors under the Plan shall be equal to
the sum of: (i) seventeen million (17,000,000) shares of Common Stock; (ii) any shares of Common
Stock subject to Awards under this Plan which are forfeited, expire or are canceled or settled in
cash without delivery of shares of Common Stock; (iii) any shares of Common Stock tendered (either
actually or through attestation) to pay the Exercise Price of any Option or to satisfy withholding
taxes; and (iv) any shares of Common Stock withheld for payment of withholding taxes.

(C) The following additional limitations are imposed on the shares of Common Stock that may be
delivered to Participants and their Successors as provided above.

(1) The maximum number of shares of Common Stock that may be issued by Options intended to be
Incentive Options shall be nine million (9,000,000) shares.

(2) The maximum number of shares of Common Stock that may be issued in conjunction with Awards
granted pursuant to Section 9 (relating to Other Stock Awards) and Section 10 (relating to
Performance Shares) shall be, in the aggregate, fifty percent (50%) of the total shares reserved
for Awards pursuant to paragraph (B) above.

(3) The maximum number of shares that may be covered by Awards granted to any one individual
pursuant to Section 8 (relating to Options and Stock Appreciation Rights) shall be three million
(3,000,000) shares during any 36 month period. If an Option is in tandem with a Stock Appreciation
Right, such that the exercise of the Option or Stock Appreciation Right with respect to a share of
Common Stock cancels the tandem Stock Appreciation Right or Option, respectively, with respect to
such share, the tandem Option and Stock Appreciation Right with respect to each share of Common
Stock shall be counted as covering but one share of Common Stock for purposes of applying the
limitations of this subparagraph (3).

(4) The maximum number of shares that may be covered by Awards granted to any one individual
pursuant to Section 9 (relating to Other Stock Awards) and Section 10 (relating to Performance
Shares) shall be, in the aggregate, one million (1,000,000) shares during any 36 month period.

8

 

(5) For Cash Awards that are intended to be “performance-based compensation” (within the meaning of
regulations under Code section162(m)), the maximum Awards payable in cash to any one individual for a 36-month performance period
shall not exceed ten million dollars ($10,000,000). Such maximum shall be reduced proportionately
in the case of a performance period of less than 36 months and shall be increased proportionately
for a performance period of longer than 36 months (but no further adjustment shall be made in the
case of a performance period of greater than 60 months). If, after an amount has been earned with
respect to a Cash Award, the delivery of such amount is deferred pursuant to Section 7(B), any
additional amount attributable to earnings during the deferral period shall be disregarded for
purposes of this limitation.

7. Awards

The Committee shall have full and complete authority, in its discretion, subject to the provisions
of the Plan, to grant Awards to Participants consisting of Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Shares, Cash Awards or any combination
thereof, as more fully described in Sections 8 through 10, subject to such terms and conditions as
the Committee deems appropriate. Awards may be granted singly, in combination or in tandem so that
the settlement or payment of one automatically reduces or cancels the other. Awards may also be
made in combination or in tandem with, in replacement of, as alternatives to, or as the payment
form for, grants or rights under any other compensation plan of the Company or any Subsidiary,
including the plan of any acquired entity.

(A) Dividends and Dividend Equivalents

The Committee may provide that Awards denominated in Common Stock earn dividends or dividend
equivalents. Such dividend equivalents may be paid currently in cash or shares of Common Stock or
may be credited to an account established by the Committee under the Plan in the name of the
Participant. In addition, dividends or dividend equivalents paid on outstanding Awards or issued
shares may be credited to such account rather than paid currently. Any crediting of dividends or
dividend equivalents may be subject to such restrictions and conditions as the Committee may
establish, including reinvestment in additional shares or share equivalents.

(B) Deferrals

The Committee may require or permit Participants to elect to defer the issuance of shares or the
settlement of Awards in cash under such rules and procedures as it may establish under the Plan. It
may also provide that deferred settlements include the payment or crediting of interest on the
deferral amounts, conversion of deferred amounts into deferred Common Stock (or other) equivalents,
or the payment or crediting of dividend equivalents on deferred settlements denominated in shares.

(C) Settlements

Settlement of Awards may be in the form of cash, shares of Common Stock, other Awards, or in such
combinations thereof as the Committee shall determine at the time of grant, and with such
restrictions as it may impose.

8. Options and Stock Appreciation Rights

The Committee may grant Options containing such terms and conditions as shall be requisite, in the
judgment of the Committee, to constitute either Incentive Options or Non-Statutory

9

 

Options. Non-Statutory Options shall be identified as such in the Award Grant. The Committee may
grant Stock Appreciation Rights either (i) independently of Options or (ii) in tandem with Options
such that the exercise of the Option or Stock Appreciation Right with respect to a share of Common
Stock cancels the tandem Stock Appreciation Right or Option, respectively, with respect to such
share. The grant of each Option or Stock Appreciation Right shall be confirmed in writing by an
Award Grant in the form prescribed by the Committee.

(A) Exercise Price

At the time an Option or Stock Appreciation Right is granted, the Committee shall determine the
Exercise Price. Except for adjustments as provided in

Section 13, the Exercise Price for any outstanding Option or Stock Appreciation Right may not be
decreased after the date of grant nor may any outstanding Option or Stock Appreciation Right be
surrendered to the Company as consideration for the grant of a new Option or Stock Appreciation
Right with a lower Exercise Price.

(B) Exercise Period

Each Option or Stock Appreciation Right granted under this Plan shall be exercisable during such
period and under such circumstances as the Committee shall determine, subject to the following
rules unless otherwise determined by the Committee:

(1) An Option or Stock Appreciation Right must be exercised prior to the Expiration Date.

(2) With respect to any Option or Stock Appreciation Right granted on or prior to May 16, 2005,
each Option or Stock Appreciation Right shall become immediately exercisable upon the occurrence of
a Change in Control whether or not otherwise then exercisable under this Plan or the provisions of
the applicable Award Grant relating thereto. With respect to any Option or Stock Appreciation
Right granted on or after May 17, 2005, such Option or Stock Appreciation Right shall become
immediately vested and exercisable as to 100% of the shares of Common Stock subject to the Option
or Stock Appreciation Right upon (i) the occurrence of a Change in Control if such Option or Stock
Appreciation Right is not assumed, substituted or replaced by a Surviving Corporation or other
successor to the business of the Company with an award of equivalent value, or (ii) if clause (i)
does not apply, the termination of the Participant’s employment with or services for the Company
within 24 months following a Change in Control if such termination is (a) by the Company for
reasons other than Cause or (b) by the Participant for Good Reason, but, in either case of clause
(i) or (ii), only to the extent the Option or Stock Appreciation Right has not otherwise been
terminated and canceled or become exercisable as of such date.

(3) The effect of a Participant’s cessation of performance of services for the Company and its
Subsidiaries shall be as follows:

(i) Retirement. If cessation of performance of services is the result of Retirement, the
Participant may exercise any outstanding Option or Stock Appreciation Right at any time after and
to the extent that such Option or Stock Appreciation Right has become exercisable under the terms
of the applicable Award Grant and before the applicable Expiration Date.

(ii) Death. If a Participant dies while the Participant is continuing to perform services for the
Company or a Subsidiary or during the period following Retirement and before the Expiration Date,
the Successor may exercise the Participant’s Options or Stock Appreciation Rights at any time prior
to the applicable Expiration Date, whether or not such Options or Stock Appreciation Rights were
otherwise exercisable on the date of the Participant’s death under this Plan or the applicable
Award Grant.

(iii) Disability. If the Committee determines that a Participant ceased to perform services for the
Company or a Subsidiary because of Disability, any Option or Stock Appreciation Right held by such
Participant on the Date of Termination may be exercised (whether or not such Option or Stock
Appreciation Right was otherwise exercisable on the Date of Termination under this Plan or the
provisions of the Award Grant relating thereto) at any time prior to the Expiration Date.

(iv) Involuntary Termination without Cause. If the Participant ceases to perform services for the
Company and its Subsidiaries involuntarily without Cause, the Participant may exercise any
outstanding Option or Stock Appreciation Right at

10

 

any time after and to the extent that such Option or Stock Appreciation Right has become
exercisable under the terms of the applicable Award Grant and before the applicable Expiration
Date.

(v) Involuntary Termination for Cause. If a Participant ceases to perform services for the Company
and its Subsidiaries involuntarily for Cause, any outstanding Options held by such Participant
shall be immediately cancelled on such Date of Termination.

(vi) Other Termination. If a Participant ceases to perform services for the Company and its
Subsidiaries for any reason other than as set forth in subparagraphs (i) through (v) above, the
Participant may exercise any outstanding Option or Stock Appreciation Right at any time after and
to the extent that such Option or Stock Appreciation Right has become exercisable under the terms
of the applicable Award Grant and before the applicable Expiration Date.

(C) Exercise Procedures

Each Option or Stock Appreciation Right granted under this Plan may be exercised to the extent
exercisable, in whole or in part at any time during the Exercise Period, for such number of shares
as shall be prescribed by the provisions of the Award Grant evidencing such Option, provided that:

(1) An Option or Stock Appreciation Right may be exercised by the Participant or a Successor only
by written notice (in the form prescribed by the Committee) to the Company specifying the number of
shares to which such notice applies.

(2) The aggregate Exercise Price of the shares as to which an Option may be exercised shall be, in
the discretion of the Committee, (a) paid in U.S. funds by any one or any combination of the
following: cash, (including check, draft or wire transfer made payable to the order of the
Company), or delivery of Common Stock certificates endorsed in blank or accompanied by executed
stock powers with signatures guaranteed by a national bank or trust company or a member of a
national securities exchange evidencing shares of Common Stock which have been held for more than
six months (or such other period of time as the Committee deems appropriate), whose value shall be
deemed to be the Fair Market Value on the date of exercise of such Common Stock, or (b) deemed to
be paid in full provided the notice of the exercise of an Option is accompanied by a copy of
irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan
proceeds sufficient to cover the Exercise Price or (c) paid upon such terms and conditions,
including provision for securing the payment of the same, as the Committee, in its discretion,
shall provide.

(3) As soon as practicable after receipt by the Company of notice of exercise and of payment in
full of the Exercise Price of the shares with respect to which an Option has been exercised, a
certificate or certificates representing such shares shall be registered in the name or names of
the Participant or Successor and shall be delivered to the Participant or Successor. If any part of
the Exercise Price is paid on a deferred basis (to the extent such deferral is permitted by the
Committee), the shares for which payment has been deferred shall be registered in the name of the
Participant or Successor but the certificate or certificates representing such shares shall not be
delivered to the Participant or Successor until the Exercise Price for such shares has been paid in
full.

(D) Special Rules Relating to Incentive Options

(1) No Incentive Option may be granted to an individual who is not an Employee of the Company or a
Subsidiary Corporation.

(2) No Incentive Option may be granted on or after the 10th anniversary of the Effective Date.

(3) The aggregate Fair Market Value (determined as of the time the Option is granted) of the Common
Stock with respect to which Incentive Options are exercisable for the

11

 

first time during any calendar year by an Employee under all plans of the Company and its
Subsidiaries shall not exceed the greater of $100,000 or such sum as may from time to time be
permitted under Code section 422.

9. Other Stock Awards

The Committee may make Awards consisting of Restricted Stock or Restricted Stock Units, containing
such terms and conditions, and subject to such restrictions and contingencies as the Committee
shall determine, subject to the provisions of the Plan. Vesting of Restricted Stock Unit Awards
granted to other than Directors that are not granted in lieu of other compensation or to replace
forfeited awards from a prior service recipient shall require either the achievement of Performance
Measures or other performance objectives, or the completion of a specified period of service with
the Company or the Subsidiaries. If the right to become vested in a Restricted Stock Award or
Restricted Stock Unit Award granted under this Section 9 is conditioned on the completion of a
specified period of service with the Company or the Subsidiaries, without achievement of
Performance Measures or other performance objectives being required as a condition of vesting, and
without it being granted in lieu of other compensation or to replace forfeited awards from a prior
service recipient, then the required period of service for full vesting shall be not less than
three years, subject to acceleration of vesting in the following circumstances:

(A) to the extent permitted by the Committee, in the event of the Participant’s Retirement, death,
Disability, or involuntary termination without Cause; or

(B) with respect to Awards granted on or prior to May 16, 2005, in the event of a Change in
Control, unless such Award is replaced by an award of equivalent value provided by the Surviving
Corporation which replacement award vests not later than the replaced Award and, to the extent not
previously vested, vests in full in the event of any involuntary cessation of performance of
services for the Surviving Corporation following the Change in Control (other than involuntary
termination by reason of an act of dishonesty, moral turpitude or an intentional or grossly
negligent act detrimental to the best interests of the Surviving Corporation) unless otherwise
determined by the Committee at the time of the Award; and

(C) with respect to any Award granted on or after May 17, 2005, unless otherwise provided by the
Committee in any individual Award Agreement at the time of grant, upon (i) the occurrence of a
Change in Control if such Award is not assumed, substituted or replaced by a Surviving Corporation
or other successor to the business of the Company with an award of equivalent value, or (ii) if
clause (i) does not apply, the termination of the Participant’s employment with or services for the
Company within 24 months following a Change in Control if such termination is by the Company for
reasons other than Cause or by the Participant for Good Reason but, in either case of clause (i) or
(ii), only to the extent the Award has not otherwise been terminated and canceled as of such date.

10. Performance Awards

The Committee may make Awards consisting of Performance Shares or Cash Awards, containing such
terms and conditions, and subject to such restrictions and contingencies as the Committee shall
determine, subject to the provisions of the Plan. Performance Awards shall be conditioned on the
achievement of Performance Goals, based on one or more Performance Measures, as determined by the
Committee, over a performance period (not less than one year) prescribed by the Committee. For
Awards under this Section 10 intended to be “performance-based compensation” within the meaning of
regulations under Code section 162(m), the grant of the Awards and the performance goals shall be
made during the period required under Code section 162(m). In the event that a Change in Control
occurs after a Performance Award has been granted but before completion of the applicable
performance period, a pro rata portion of such Award shall become payable as of the date of the
Change in Control to the extent otherwise earned on the basis of achievement of the pro rata
portion of the Performance Goals relating to the portion of the performance period completed as of
the date of the Change in Control.

11. Non-Transferability

Unless otherwise designated by the Committee to the contrary, each Award granted under the Plan
shall by its terms be non-transferable by the Participant (except by will or the laws of descent
and distribution). An Option or Stock Appreciation Right shall be exercisable during the
Participant’s lifetime only by the Participant, his or her guardian or legal representative or by
such other means as the Committee may approve from time to time that is not inconsistent with or
contrary to the provisions of either Section 16(b) of the Exchange Act or Rule 16b-3, as either may
be amended from time to time, or any law, rule, regulation or other provision that

12

 

may hereafter replace such Rule. A Participant may also designate a beneficiary to exercise his or
her Awards after the Participant’s death. The Committee may amend outstanding Awards to provide for
transfer, without payment of consideration, to immediate family members of the Participant or to
trusts or partnerships for such family members.

12. Listing and Registration of Shares

If at any time the Board of Directors shall determine, in its discretion, that the listing,
registration or qualification of any of the shares subject to Awards under the Plan upon any
securities exchange or under any state or federal law, or the consent or approval of any
governmental regulatory body, is necessary or desirable as a condition of or in connection with the
purchase or issue of shares thereunder, no outstanding Awards which would result in the purchase or
issuance of shares may be exercised or otherwise settled unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Board of Directors. The Board of Directors may require any Participant to make
such representations and furnish such information as it may consider appropriate in connection with
the issuance or delivery of the shares in compliance with applicable law and shall have the
authority to cause the Company at its expense to take any action related to the Plan which may be
required in connection with such listing, registration, qualification, consent or approval.

13. Adjustments

The Committee will make such adjustments as it deems appropriate to meet the intent of the Plan in
the event of changes that impact the Company’s share price or share status, provided that any such
actions are consistently and equitably applicable to all affected Participants.

In the event of any stock dividend, stock split, combination or exchange of shares, merger,
consolidation, reorganization, spin-off or other distribution (other than normal cash dividends) of
Company assets to shareholders, or any other change affecting shares, such adjustments to reflect
such change shall be made by the Committee with respect to (i) the aggregate number of shares
and/or kind of shares that may be issued under the Plan or that may be subject to Awards of a
specified type and/or to any individual; (ii) the number of shares and/or kind of shares covered by
outstanding Awards to any individual under the Plan; and/or (iii) the applicable price per share
with respect to any outstanding Options, Stock Appreciation Rights and other Awards under the Plan.

14. Tax Withholding

Delivery of any shares or any other benefits under the Plan is subject to withholding of applicable
taxes. The Committee unilaterally or by arrangement with the Participant or Successor shall make
appropriate provision for satisfaction of withholding taxes in the case of any transaction under
the Plan which gives rise to a withholding requirement. The Committee, in its discretion, and
subject to such requirements as the Committee may impose prior to the occurrence of such
withholding, may permit such withholding obligations to be satisfied through cash payment by the
Participant, through the surrender of shares of Common Stock which the Participant already owns and
which have been held for more than six months (or such other period of time that the Committee
deems appropriate), or (to the extent of minimum statutory withholding requirements) through
withholding of shares of Common Stock to which the Participant is otherwise entitled under the
Plan.

15. Amendments and Termination

The Board of Directors may amend this Plan as it shall deem advisable, except that the Board of
Directors may not, without further approval of the shareholders of the Company

13

 

subject to Section 13, (a) increase the total number of shares of Common Stock which may be issued
under the Plan as set forth in Section 6(B) or the maximum number of shares that may be issued, as
provided in Section 6(C), (b) change the class of individuals eligible for Awards, or (c) change
the rules governing Exercise Price. The Board of Directors may, in its discretion, terminate this
Plan at any time. No amendment or termination may, in the absence of written consent to the change
by the affected Participant (or, if the Participant is not then living, the affected Successor),
adversely affect the rights of any Participant or Successor under any Award granted under the Plan
prior to the date such amendment is adopted, provided that adjustments pursuant to Section 13 are
not be subject to such limitation. Subject to the foregoing and the requirements of Code section
162(m), the Board of Directors may without further action on the part of the shareholders of the
Company or the consent of Participants, amend the Plan, (a) to permit or facilitate qualification
of Options thereafter granted under the Plan as Incentive Options, (b) to ensure compliance with
recently enacted provisions of Code Section 409A governing the timing of deferral elections,
distribution requirements, and changes in distribution elections, with respect to nonqualified
deferred compensation arrangements, and (c) to preserve the Company’s tax deduction under Code
section 162(m).

16. Foreign Jurisdictions

The Committee may, from time to time, adopt, amend, and terminate under the Plan such arrangements,
not inconsistent with the intent of the Plan, as it may deem necessary or desirable to make
available tax or other benefits of laws of any foreign jurisdiction to Participants who are subject
to such laws and who receive Awards under the Plan.

17. Compliance with Code section 162(m)

With respect to Covered Employees, transactions under the Plan are intended to avoid loss of the
deduction referred to in paragraph (1) of Code section 162(m) or any successor section thereto.
Anything in the Plan or elsewhere to the contrary notwithstanding, to the extent any provision of
the Plan or action by the Committee fails to so comply or avoid the loss of such deduction, it
shall be deemed null and void as relates to Covered Employees, to the extent permitted by law and
deemed advisable by the Committee.

18. Notices

All notices under the Plan shall be in writing, and if to the Company, shall be delivered to the
Secretary of the Company or mailed to its principal office, Post Office Box 57, Pittsburgh,
Pennsylvania 15230, addressed to the attention of the Secretary; and if to the Participant, shall
be delivered personally or mailed to the Participant at the address appearing in the payroll
records of the Company or a Subsidiary or, if applicable, to the Participant’s Successor at the
last known address appearing in the records of the Company. Such addresses may be changed at any
time by written notice to the other party.

14

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