Document:

EX-10.59 NON QUALIFIED STOCK OPTION AGREEMENT/1996

 

Exhibit 10.59

Form of

Emdeon Corporation

Non-Qualified Stock Option Agreement

	 	 	 	 	 
	 

	 	Optionee:	 	 
	 

	 	Grant Date:	 	 
	 

	 	Grant Number:	 	 
	 

	 	Shares Granted:	 	 
	 

	 	Stock Option Price:	 	 

We are pleased to inform you that the Compensation Committee (the “Committee”) of the
Board of Directors of Emdeon Corporation (the “Company”) or its designee has granted you an option
to purchase that number of shares of the Company’s common stock set forth above at the per share
exercise price set forth above. Your grant has been made under the Company’s 1996 Stock Plan (as
it may be amended from time to time, the “Plan”), which together with the terms contained
in this Agreement, sets forth the terms and conditions of your grant and is incorporated herein by
reference. In the event any terms set forth herein conflict with the terms as set forth in the
Plan, the terms of the Plan shall govern. A copy of the Plan is available on the Company’s intranet
site. Please review it carefully. Capitalized terms used herein without definition will have the
meanings assigned to them in the Plan.

Vesting/Term:

Subject to the terms of the Plan and this Agreement, shares will vest in four equal annual
installments, commencing on the first anniversary of the Grant Date (full vesting on the fourth
anniversary of the Grant Date). Subject to earlier expiration in the event of the termination of
your employment with the Company for any reason (as more fully described below), this Option will
expire on the tenth anniversary of the Grant Date. The date on which this Option expires pursuant
to this Agreement is referred to herein as the “Expiration Date”.

Exercise:

You may exercise this Option, in whole or in part, to purchase a whole number of vested shares
at any time, by following the exercise procedures set up by the Committee. All exercises must take
place before the Expiration Date. The number of shares you may purchase as of any date cannot
exceed the total number of shares vested by that date, less any shares you have previously acquired
by exercising this Option.

Restrictions on Exercise:

This Option may not be exercised if such exercise would violate any provision of applicable
federal or state securities law, or other law or regulation or the Company’s employee trading
policy.

Restrictive Covenants:

In the event that you breach any of the restrictive covenants to which you are bound
(including, without limitation, those set forth on Annex A), in addition to any other remedy
available to the Company, the Option, whether or not vested, will immediately terminate without
any notice or consideration being paid therefore. By signing below, you acknowledge the
representations and agree to the covenants set forth on Annex A. The covenants on Annex A do not
supercede or replace any other confidentiality, non-competition or non-solicitation agreement
entered into between you and the Company (or subsidiary thereof) to the extent that such
confidentiality, non-competition and/or non-solicitation agreement is more protective of the
business of the Company and/or its subsidiaries.

Termination Provisions:

In the event of the termination of your employment with the Company and its Subsidiaries for
any reason, all further vesting of shares under this Option will stop, and this Option will be
cancelled as to any unvested shares without any consideration being paid therefore. If your
employment is terminated without Cause or you resign, you will have 90 days to exercise this Option
as to any shares that have vested as of the date of termination, except that in the event of your
death or disability, you or your estate will have a period of one year to exercise. If your
employment is terminated for Cause (including as a result of a breach of the covenants or
representations set forth on Annex A), this Option will expire immediately as to all vested and
unvested shares without any consideration being paid therefore. IF YOU DO NOT EXERCISE THE VESTED
PORTION OF THIS OPTION ON OR BEFORE THE EXPIRATION DATE, THIS OPTION WILL EXPIRE WITHOUT ANY
CONSIDERATION BEING PAID THEREFORE.

No Rights to Grants or Continued Employment:

You shall not have any claim or right to receive grants of Options under the Plan. Neither the
Plan nor this Agreement nor any action taken or omitted to be taken hereunder or thereunder shall
be deemed to create or confer on you any right to be retained in the employ or service of the
Company or any of its subsidiaries or affiliates, or to interfere with or to limit in any way the
right of the Company or any of its subsidiaries or affiliates to terminate your employment at any
time. You shall have no rights in the benefits conferred by this Option or in any shares except to
the extent the Option is exercised while vested and exercisable and otherwise in accordance with
the terms of this Agreement. Termination of the Option by reason of cessation of employment shall
not give rise to any claim for damages by you under this

 

 

Agreement and shall be without prejudice to any rights or remedies which the Company or any of its
subsidiaries or affiliates may have against you.

Taxes and Withholding:

This Option is not intended to be an Incentive Stock Option, as defined under Section 422(b) of
the Internal Revenue Code of 1986, as amended. Any exercise of this Option is generally a taxable
event, and if the Company determines that any federal, state, local or foreign tax or withholding
payment is required relating to the exercise or sale of shares arising from this grant, the Company
shall have the right to require such payments from you, or withhold such amounts from other
payments due to you from the Company.

Set-off:

If at any time you are indebted to the Company or any subsidiary, the Company may in its
discretion (a) withhold (i) shares issuable to you following your exercise of the Option (or
portion thereof) having a fair market value on the date of exercise up to the amount of such
indebtedness or (ii) amounts due to you in connection with the sale of the shares acquired as a
result of the exercise of this Option (or portion thereof) up to the amount of such indebtedness or
(b) take any substantially similar action.

Governing Law:

This Option (including, without limitation, the covenants set forth on Annex A) shall be
governed by, and interpreted and enforced in accordance with, the laws of the State of Delaware,
without regard to the conflicts of law provisions thereof.

	 	 	 	 	 	 	 
	EMDEON CORPORATION	 	Agreed and Accepted:
	 
	 	 	 	 	 	 
	By:

	 	 	 	Optionee:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Print Name:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

2

 

(ANNEX A TO EMDEON CORPORATION’S

NON-QUALIFIED STOCK OPTION AGREEMENT)

TRADE SECRET AND PROPRIETARY INFORMATION COVENANTS

1.     Confidentiality.

     (a)     Trade Secret and Proprietary Information. I understand and acknowledge that,
during the course of my employment with the Company and as a result of my having executed this
Non-Qualified Stock Option Agreement, I will be granted access to valuable information relating to
the Company’s business that provides the Company with a competitive advantage (or that could be
used to the Company’s disadvantage by a Competitive Business (as defined herein), which is not
generally known by, nor easily learned or determined by, persons outside the Company (collectively
“Trade Secret and Proprietary Information”). The term Trade Secret and Proprietary Information
shall include, but shall not be limited to: (a) specifications, manuals, software in various stages
of development; (b) customer and prospect lists, and details of agreements and communications with
customers and prospects; (c) sales plans and projections, product pricing information,
acquisition, expansion, marketing, financial and other business information and existing and future
products and business plans of the Company; (d) sales proposals, demonstrations systems, sales
material; (e) research and development; (f) computer programs; (g) sources of supply; (h) identity
of specialized consultants and contractors and Trade Secret and Proprietary Information developed
by them for the Company; (i) purchasing, operating and other cost data; (j) special customer needs,
cost and pricing data; and (k) employee information (including, but not limited to, personnel,
payroll, compensation and benefit data and plans), including all such information recorded in
manuals, memoranda, projections, reports, minutes, plans, drawings, sketches, designs, formula
books, data, specifications, software programs and records, whether or not legended or otherwise
identified by the Company as Trade Secret and Proprietary Information, as well as such information
that is the subject of meetings and discussions and not recorded. Trade Secret and Proprietary
Information shall not include such information that I can demonstrate (i) is generally available to
the public (other than as a result of a disclosure by me), (ii) was disclosed to me by a third
party under no obligation to keep such information confidential or (iii) was known by me prior to,
and not as a result of, my employment or anticipated employment with the Company or its
Subsidiaries.

     (b)     Duty of Confidentiality. I agree at all times, both during and after my
employment with the Company, to hold all of the Company’s Trade Secret and Proprietary Information
in a fiduciary capacity for the benefit of the Company and to safeguard all such Trade Secret and
Proprietary Information. I also agree that I will not directly or indirectly disclose or use any
such Trade Secret and Proprietary Information to any third person or entity outside the Company,
except as may be necessary in the good faith performance of my duties for the Company. I further
agree that, in addition to enforcing this restriction, the Company may have other rights and
remedies under the common law or applicable statutory laws relating to the protection of trade
secrets. Notwithstanding anything in this Agreement to the contrary, I understand that I may
disclose the Company’s Trade Secret and Proprietary Information to the extent required by
applicable laws or governmental regulations or judicial or regulatory process, provided that I give
the Company prompt notice of any and all such requests for disclosure so that it has ample
opportunity to take all necessary or desired action, to avoid disclosure.

     (c)     Company Property. I acknowledge that: (i) all Trade Secret and Proprietary
Information of the Company, (ii) computers, and computer-related hardware and software, cell
phones, beepers and any other equipment provided to me by the Company, and (iii) all documents I
create or receive in connection with my employment with the Company, belong to the Company, and not
to me personally (collectively, “Company Property”). Such documents include, without limitation
and by way of non-exhaustive example only: papers, files, memoranda, notes, correspondence, lists,
e-mails, reports, records, data, research, proposals, specifications, models, flow charts,
schematics, tapes, printouts, designs, graphics, drawings, photographs, abstracts, summaries,
charts, graphs, notebooks, investor lists, customer/client lists, and all other compilations of
information, regardless of how such information may be recorded and whether in printed form or on a
computer or magnetic disk or in any other medium. I agree to return all Company Property
(including all copies) to the Company immediately upon any termination of my employment, and
further agree that, during and after my employment with the Company, I will not, under any
circumstances, without the Company’s specific written authorization in each instance, directly or
indirectly disclose Company Property or any information contained in Company Property to anyone
outside the Company, or otherwise use Company Property for any purpose other than the advancement
of the Company’s interests.

     (d)     Unfair Competition. I acknowledge that the Company has a compelling business
interest in preventing unfair

 

 

competition stemming from the intentional or inadvertent use or disclosure of the Company’s
Trade Secret and Proprietary Information and Company Property.

     (e)     Investors, Other Third-Parties, and Goodwill. I acknowledge that all
Third-Parties I service or propose to service while employed by the Company are doing business with
the Company and not me personally, and that, in the course of dealing with such Third-Parties, the
Company establishes goodwill with respect to each such Third-Party that is created and maintained
at the Company’s expense (“Third-Party Goodwill”). I also acknowledge that, by virtue of my
employment with the Company, I have gained or will gain knowledge of the business needs of, and
other information concerning, Third-Parties, and that I would inevitably have to draw on such
information were I to solicit or service any of the Third-Parties on my own behalf or on behalf of
a Competitive Business (as defined herein).

     (f)     Intellectual Property and Inventions. I acknowledge that all developments,
including, without limitation, the creation of new products, conferences, training/seminars,
publications, programs, methods of organizing information, inventions, discoveries, concepts,
ideas, improvements, patents, trademarks, trade names, copyrights, trade secrets, designs, works,
reports, computer software, flow charts, diagrams, procedures, data, documentation, and writings
and applications thereof relating to the past, present, or future business of the Company that I,
alone or jointly with others, may have discovered, conceived, created, made, developed, reduced to
practice, or acquired during my employment with the Company (collectively, “Developments”) are
works made for hire and shall remain the sole and exclusive property of the Company, and I hereby
assign to the Company all of my rights, titles, and interest in and to all such Developments, if
any. I agree to disclose to the Company promptly and fully all future Developments and, at any
time upon request and at the expense of the Company, to execute, acknowledge, and deliver to the
Company all instruments that the Company shall prepare, to give evidence, and to take any and all
other actions that are necessary or desirable in the reasonable opinion of the Company to enable
the Company to file and prosecute applications for, and to acquire, maintain, and enforce, all
letters patent, trademark registrations, or copyrights covering the Developments in all countries
in which the same are deemed necessary by the Company. All data, memoranda, notes, lists,
drawings, records, files, investor and client/customer lists, supplier lists, and other
documentation (and all copies thereof) made or compiled by me or made available to me concerning
the Developments or otherwise concerning the past, present, or planned business of the Company are
the property of the Company, and will be delivered to the Company immediately upon the termination
of my employment with the Company.

2.     Covenant Not to Compete with the Company.

     (a)     I acknowledge that the business of the Company is national in scope, that its products and
services are marketed throughout the entire United States, that the Company competes in nearly all
of its business activities with other individuals or entities that are, or could be, located in
nearly any part of the United States and that the nature of my services, position, and expertise
are such that I am capable of competing with the Company from nearly any location in the United
States.

     (b)     Accordingly, in order to protect the Company’s Trade Secret and Proprietary Information
and Third-Party Goodwill, I acknowledge and agree that during the term of my employment with the
Company and for a period of one year after the date my employment with the Company is
terminated for any reason (the “Restricted Period”), I will not, without the Company’s express
written permission, directly or indirectly (including through the Internet), own, control, manage,
operate, participate in, be employed by, or act for or on behalf of, any “Competitive Business”
(as defined herein) located anywhere within the geographic boundaries of the United States.

     For purposes of this Agreement “Competitive Business” shall mean: (i) any enterprise engaged
in establishing electronic linkages between individual healthcare providers, patients, and payors
(including, without limitation, insurance companies, HMO’s, pharmacy benefits management companies,
and/or self-insured employer groups) for the purpose of facilitating or conducting financial,
administrative and clinical communication and/or transactions; (ii) any enterprise engaged in
developing, marketing or providing healthcare information and/or management systems (including,
without limitation, electronic medical and/or dental records software; physician practice
management, dental practice management and/or other healthcare practice management software
systems; and other financial, administrative and/or clinical systems for use in the healthcare
industry) and/or services related thereto (including, without limitation, software support and
maintenance services, hardware support and maintenance services, and training services); (iii) any
enterprise engaged in developing, selling or providing a consumer or physician Internet healthcare
portal or interactive online personal health management products; and (iv) any enterprise engaged
in any other type of business in which the Company is also engaged, or plans to be engaged, so long
as I am directly involved in such business or planned business on behalf of the Company.

3.    Non-Solicitation of Employees, Customers. In order to protect the Company’s Trade
Secret and Proprietary Information and Third-Party Goodwill, during the Restricted Period, I will
not, without the Company’s express written permission, directly or indirectly:

2

 

     (a)     solicit, induce, hire, engage, or attempt to hire or engage any employee or independent
contractor of the Company, or in any other way interfere with the Company’s employment or
contractual relations with any of its employees or independent contractors, nor will I solicit,
induce, hire, engage or attempt to hire or engage any individual who was an employee of the Company
at any time during the one (1) year period immediately prior to the termination of my employment
with the Company;

     (b)     contact, call upon or solicit, on behalf of a Competitive Business, any existing or
prospective client, or customer of the Company who I serviced, or otherwise developed a
relationship with, as a result of my employment with the Company, nor will I attempt to divert or
take away from the Company the business of any such client or customer;

     4.     Injunctive Remedies. I acknowledge and agree that the restrictions contained in this
Agreement are reasonably necessary to protect the legitimate business interests of the Company, and
that any violation of any of the restrictions will result in immediate and irreparable injury to
the Company for which monetary damages will not be an adequate remedy. I further acknowledge and
agree that if any such restriction is violated, the Company will be entitled to immediate relief
enjoining such violation (including, without limitation, temporary and permanent injunctions, a
decree for specific performance, and an equitable accounting of earnings, profits, and other
benefits arising from such violation) in any court having jurisdiction over such claim, without the
necessity of showing any actual damage or posting any bond or furnishing any other security, and
that the specific enforcement of the provisions of this Agreement will not diminish my ability to
earn a livelihood or create or impose upon me any undue hardship. I also agree that any request
for such relief by the Company shall be in addition to, and without prejudice to, any claim for
monetary damages that the Company may elect to assert.

     5.     Severability Provision. I acknowledge and agree that the restrictions imposed upon me
by the terms, conditions, and provisions of this Agreement are fair, reasonable, and reasonably
required for the protection of the Company. In the event that any part of this Agreement is deemed
invalid, illegal, or unenforceable, all other terms, conditions, and provisions of this Agreement
shall nevertheless remain in full force and effect. In the event that the provisions of any of
Sections 1, 2, or 3 of this Agreement relating to the geographic area of restriction, the length of
restriction or the scope of restriction shall be deemed to exceed the maximum area, length or scope
that a court of competent jurisdiction would deem enforceable, said area, length or scope shall,
for purposes of this Agreement, be deemed to be the maximum area, length of time or scope that such
court would deem valid and enforceable, and that such court has the authority under this Agreement
to rewrite (or “blue-pencil”) the restriction(s) at-issue to achieve this intent.

     6.     Non-Waiver. Any waiver by the Company of my breach of any term, condition, or provision
of this Agreement shall not operate or be construed as a waiver of the Company’s rights upon any
subsequent breach.

     7.     Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, I HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION
ARISING OUT OF, UNDER, IN CONNECTION WITH, OR IN ANY WAY RELATED TO THIS AGREEMENT. THIS INCLUDES,
WITHOUT LIMITATION, ANY LITIGATION CONCERNING ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT
(WHETHER VERBAL OR WRITTEN), OR ACTION OF THE COMPANY OR ME, OR ANY EXERCISE BY THE COMPANY OR ME
OF OUR RESPECTIVE RIGHTS UNDER THIS AGREEMENT OR IN ANY WAY RELATING TO THIS AGREEMENT. I FURTHER
ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE COMPANY TO ISSUE AND ACCEPT THIS
AGREEMENT.

3EX-10.27 AMENDED AND RESTATED LONG-TERM INCENTIVE

 

EXHIBIT
10.27

WEBMD HEALTH CORP.

2005 LONG-TERM INCENTIVE PLAN

(Amended and Restated as of January 27, 2006)

ARTICLE 1
PURPOSE

     1.1 GENERAL. The purpose of the WebMD Health Corp. 2005 Long-Term Incentive Plan
(as it may be amended from time to time, the “Plan”) is to promote the success, and enhance the
value, of WebMD Health Corp., a Delaware corporation (the “Corporation”), by linking the
personal interests of its employees, officers, directors and consultants to those of Corporation
shareholders and by providing such persons with an incentive for outstanding performance. The
Plan is further intended to provide flexibility to the Corporation in its ability to motivate,
attract and retain the services of employees, officers, directors and consultants upon whose
judgment, interest and special effort the successful conduct of the Corporation’s operation is
largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to
time to selected employees and officers, directors and consultants.

ARTICLE 2
EFFECTIVE DATE

     2.1 EFFECTIVE DATE. The Plan shall be effective as of the date upon which it shall
be approved by the Board and the shareholders of the Corporation (the “Effective Date”). In the
discretion of the Committee, Awards may be made to Covered Employees which are intended to
constitute qualified performance-based compensation under Section 162(m) of the Code. The
effective date of the amendment and restatement of the Plan is January 27, 2006 (the “Amendment
and Restatement Date”).

ARTICLE 3
DEFINITIONS

     3.1 DEFINITIONS. When a word or phrase appears in this Plan with the initial
letter capitalized, and the word or phrase does not commence a sentence and is not otherwise
defined in the Plan, the word or phrase shall generally be given the meaning ascribed to it in
this Section. The following words and phrases shall have the following meanings:

     (a) “1933 Act” means the Securities Act of 1933, as amended from time to time.

     (b) “1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

     (c) “Affiliate” means any Parent or Subsidiary and any person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, the Corporation.

     (d) “Amendment and Restatement Date” has the meaning specified in Section 3.1.

 

 

     (e) “Award” means any Option, Stock Appreciation Right, Restricted Stock Award,
Performance Share Award, Dividend Equivalent Award or Other Stock-Based Award, or any other
right or interest relating to Stock or cash, granted to a Participant under the Plan.

     (f) “Award Agreement” means any written agreement, contract or other instrument or
document evidencing an Award.

     (g) “Board” means the Board of Directors of the Corporation.

     (h) “Cause” as a reason for a Participant’s termination of employment or service shall
have the meaning assigned such term in the employment agreement, if any, between such
Participant and the Corporation or an affiliated company, provided, however,
that if there is no such employment agreement in which such term is defined, “Cause” shall
mean any of the following acts by the Participant, as determined by the Board: gross neglect
of duty, prolonged absence from duty without the consent of the Corporation, intentionally
engaging in any activity that is in conflict with or adverse to the business or other
interests of the Corporation, or willful misconduct, misfeasance or malfeasance of duty
which is reasonably determined to be detrimental to the Corporation.

     (i) “Change of Control” means and includes the occurrence of any one of the following
events:

     (i) individuals who, at the effective date of the Initial Public Offering,
constitute the Board (the “Incumbent Directors”) cease for any reason to constitute
at least a majority of the Board, provided that any person becoming a
director after the Effective Date and whose election or nomination for election was
approved by a vote of at least a majority of the Incumbent Directors then on the
Board (either by a specific vote or by approval of the proxy statement of the
Corporation in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of
the Corporation as a result of an actual or threatened election contest (as described
in Rule 14a-11 under the 1934 Act (“Election Contest”)) or other actual or threatened
solicitation of proxies or consents by or on behalf of any “person” (as such term is
defined in Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) and
14(d)(2) of the 1934 Act) other than the Board (“Proxy Contest”), including by reason
of any agreement intended to avoid or settle any Election Contest or Proxy Contest,
shall be deemed an Incumbent Director;

     (ii) any person becomes a “beneficial owner” (as defined in Rule 13d-3 under the
1934 Act), directly or indirectly, of securities of the Corporation representing 50%
or more of the combined voting power of the Corporation’s then outstanding securities
eligible to vote for the election of the Board (the “Corporation Voting Securities”);
provided, however, that the event described in this paragraph (ii)
shall not be deemed to be a Change of Control of the Corporation by virtue of any of
the following acquisitions: (A) any acquisition by a person who is on the Effective
Date the beneficial owner of 50% or more of the outstanding Corporation Voting
Securities, (B) an acquisition by the Corporation which reduces the number of
Corporation Voting Securities outstanding and thereby results in any person acquiring
beneficial ownership of more than 50% of the outstanding Corporation Voting
Securities, provided that if after such acquisition by the Corporation such
person becomes the beneficial owner of additional Corporation Voting Securities that
increase the percentage of outstanding Corporation Voting Securities beneficially
owned by such person, a Change of Control of the Corporation shall then occur, (C) an
acquisition by any employee benefit plan (or related trust) sponsored or maintained
by the Corporation or any Parent or

2

 

Subsidiary, (D) an acquisition by an underwriter temporarily holding securities
pursuant to an offering of such securities or (E) an acquisition pursuant to a
Non-Qualifying Transaction (as defined in paragraph (iii)); or

     (iii) the consummation of a reorganization, merger, consolidation, statutory
share exchange or similar form of corporate transaction involving the Corporation
that requires the approval of the Corporation’s stockholders, whether for such
transaction or the issuance of securities in the transaction (a “Reorganization”), or
the sale or other disposition of all or substantially all of the Corporation’s assets
to an entity that is not an affiliate of the Corporation (a “Sale”), unless
immediately following such Reorganization or Sale: (A) more than 50% of the total
voting power of (x) the corporation resulting from such Reorganization or the
corporation which has acquired all or substantially all of the assets of the
Corporation (in either case, the “Surviving Corporation”) or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial ownership of
100% of the voting securities eligible to elect directors of the Surviving
Corporation (the “Parent Corporation”), is represented by the Corporation Voting
Securities that were outstanding immediately prior to such Reorganization or Sale
(or, if applicable, is represented by shares into which such Corporation Voting
Securities were converted pursuant to such Reorganization or Sale), and such voting
power among the holders thereof is in substantially the same proportion as the voting
power of such Corporation Voting Securities among the holders thereof immediately
prior to the Reorganization or Sale, (B) no person (other than (x) the Corporation,
(y) any employee benefit plan (or related trust) sponsored or maintained by the
Surviving Corporation or the Parent Corporation or (z) a person who immediately prior
to the Reorganization or Sale was the beneficial owner of 25% or more of the
outstanding Corporation Voting Securities) is the beneficial owner, directly or
indirectly, of 25% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there is no
Parent Corporation, the Surviving Corporation) and (C) at least a majority of the
members of the board of directors of the Parent Corporation (or, if there is no
Parent Corporation, the Surviving Corporation) following the consummation of the
Reorganization or Sale were Incumbent Directors at the time of the Board’s approval
of the execution of the initial agreement providing for such Reorganization or Sale
(any Reorganization or Sale which satisfies all of the criteria specified in (A), (B)
and (C) above shall be deemed to be a “Non-Qualifying Transaction”);

provided, however, that in no event shall a Change of Control be deemed to
have occurred so long as Emdeon Corporation directly or indirectly beneficially owns at least
50% of the voting power represented by the securities of the Corporation entitled to vote
generally in the election of the Corporation’s directors; and provided
further, however, that under no circumstances shall a split-off, spin-off,
stock dividend or similar transaction as a result of which the voting securities of the
Corporation are distributed to shareholders of Emdeon Corporation or its successors
constitute a Change of Control.

       Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A
of the Code, and payment or settlement of such Award is to be accelerated in connection with
an event that would otherwise constitute a Change of Control, no event set forth in clause
(i), (ii) or (iii) will constitute a Change of Control for purposes of the Plan and any
Award Agreement unless such event also constitutes a “change in the ownership”, “change in
the effective control” or “change in the ownership of a substantial portion of the assets”
of the Corporation as defined under Section 409A of the Code and the Treasury guidance
promulgated thereunder.

3

 

     (j) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated thereunder.

     (k) “Committee” means, subject to the last sentence of Section 4.1, the committee of
the Board described in Article 4.

     (l) “Covered Employee” means a covered employee as defined in Section 162(m)(3) of the
Code, provided that no employee shall be a Covered Employee until the deduction
limitations of Section 162(m) of the Code are applicable to the Corporation and any reliance
period under Treasury Regulation Section 1.162-27(f) has expired.

     (m) “Disability” has the meaning ascribed under the long-term disability plan
applicable to the Participant. Notwithstanding the above, (i) with respect to an Incentive
Stock Option, Disability shall mean Permanent and Total Disability as defined in Section
22(e)(3) of the Code and (ii) to the extent an Award is subject to Section 409A of the Code,
and payment or settlement of the Award is to be accelerated solely as a result of the
Participant’s Disability, Disability shall have the meaning ascribed thereto under Section
409A of the Code and the Treasury guidance promulgated thereunder.

     (n) “Dividend Equivalent” means a right granted to a Participant under Article 11.

     (o) “Effective Date” has the meaning assigned such term in Section 2.1.

     (p) “Fair Market Value”, on any date, means (i) if the Stock is listed on a securities
exchange or is traded over the Nasdaq National Market, the closing sales price on such
exchange or over such system on such date or, in the absence of reported sales on such date,
the closing sales price on the immediately preceding date on which sales were reported or
(ii) if the Stock is not listed on a securities exchange or traded over the Nasdaq National
Market, Fair Market Value will be determined by such other method as the Committee
determines in good faith to be reasonable. With respect to awards granted on the effective
date of the Corporation’s Initial Public Offering, Fair Market Value shall mean the price at
which the Stock is initially offered in the Initial Public Offering.

     (q) “Incentive Stock Option” means an Option that is intended to meet the requirements
of Section 422 of the Code or any successor provision thereto.

     (r) “Initial Public Offering” means the underwritten initial public offering of equity
securities of the Corporation pursuant to an effective registration statement under the 1933
Act.

     (s) “Non-Employee Director” means a member of the Board who is not an employee of the
Corporation or any Parent or Affiliate.

     (t) “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option.

     (u) “Option” means a right granted to a Participant under Article 7 to purchase Stock
at a specified price during specified time periods. An Option may be either an Incentive
Stock Option or a Non-Qualified Stock Option.

     (v) “Other Stock-Based Award” means a right, granted to a Participant under Article 12,
that relates to or is valued by reference to Stock or other Awards relating to Stock.

4

 

     (w) “Parent” means a corporation which owns or beneficially owns a majority of the
outstanding voting stock or voting power of the Corporation. Notwithstanding the above,
with respect to an Incentive Stock Option, Parent shall have the meaning set forth in
Section 424(e) of the Code.

     (x) “Participant” means a person who, as an employee, officer, consultant or director
of the Corporation or any Parent, Subsidiary or Affiliate, has been granted an Award under
the Plan.

     (y) “Performance Share” means a right granted to a Participant under Article 9, to
receive cash, Stock, or other Awards, the payment of which is contingent upon achieving
certain performance goals established by the Committee.

     (z) “Restricted Stock Award” means Stock granted to a Participant under Article 10 that
is subject to certain restrictions and to risk of forfeiture.

     (aa) “Stock” means the $.01 par value Class A common stock of the Corporation and such
other securities of the Corporation as may be substituted for Stock pursuant to Article 15.

     (bb) “Stock Appreciation Right” or “SAR” means a right granted to a Participant under
Article 8 to receive a payment equal to the difference between the Fair Market Value of a
share of Stock as of the date of exercise of the SAR over the grant price of the SAR, all as
determined pursuant to Article 8.

     (cc) “Subsidiary” means any corporation, limited liability company, partnership or
other entity of which a majority of the outstanding voting equity securities or voting power
is beneficially owned directly or indirectly by the Corporation. Notwithstanding the above,
with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in
Section 424(f) of the Code.

     (dd)“Emdeon Corporation” means Emdeon Corporation, a Delaware corporation.

ARTICLE 4 
ADMINISTRATION

   4.1 COMMITTEE. The Plan shall be administered by a committee (the “Committee”)
appointed by the Board (which Committee shall consist of two or more directors) or, at the
discretion of the Board from time to time, the Plan may be administered by the Board. It is
intended that the directors appointed to serve on the Committee shall be “non-employee
directors” (within the meaning of Rule 16b-3 promulgated under the 1934 Act) and “outside
directors” (within the meaning of Section 162(m) of the Code) to the extent that Rule 16b-3 and,
if necessary for relief from the limitation under Section 162(m) of the Code and such relief is
sought by the Corporation, Section 162(m) of the Code, respectively, are applicable. However,
the mere fact that a Committee member shall fail to qualify under either of the foregoing
requirements shall not invalidate any Award made by the Committee which Award is otherwise
validly made under the Plan. The members of the Committee shall be appointed by, and may be
changed at any time and from time to time in the discretion of, the Board. During any time that
the Board is acting as administrator of the Plan, it shall have all the powers of the Committee
hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall
include the Board. Notwithstanding the foregoing, (i) initial Awards granted to Participants in
connection with the Initial Public Offering may be determined, and (ii) to the extent determined
by the Board, following the Initial Public Offering the Plan may be administered, by the
compensation committee of the board of directors of Emdeon Corporation and all references to
such Committee in the Plan shall be deemed to refer to such Committee for so long as it serves
as the Plan administrator.

5

 

   4.2 ACTION BY THE COMMITTEE. For purposes of administering the Plan, the following
rules of procedure shall govern the Committee. A majority of the Committee shall constitute a
quorum. The acts of a majority of the members present at any meeting at which a quorum is
present, and acts approved unanimously in writing by the members of the Committee in lieu of a
meeting, shall be deemed the acts of the Committee. Each member of the Committee is entitled
to, in good faith, rely or act upon any report or other information furnished to that member by
any officer or other employee of the Corporation or any Parent or Affiliate, the Corporation’s
independent certified public accountants, or any executive compensation consultant or other
professional retained by the Corporation to assist in the administration of the Plan.

     4.3 AUTHORITY OF COMMITTEE. Except as provided below, the Committee has the
exclusive power, authority and discretion to:

     (a) Designate Participants;

     (b) Determine the type or types of Awards to be granted to each Participant;

     (c) Determine the number of Awards to be granted and the number of shares of Stock to
which an Award will relate;

     (d) Determine the terms and conditions of any Award granted under the Plan, including,
but not limited to, the exercise price, grant price or purchase price, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions
on the exercisability of an Award, and accelerations or waivers thereof, based in each case
on such considerations as the Committee in its sole discretion determines;

     (e) Accelerate the vesting or lapse of restrictions of any outstanding Award, based in
each case on such considerations as the Committee in its sole discretion determines;

     (f) Determine whether, to what extent, and under what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards or
other property, or an Award may be canceled, forfeited or surrendered;

     (g) Prescribe the form of each Award Agreement, which need not be identical for each
Participant;

     (h) Decide all other matters that must be determined in connection with an Award;

     (i) Establish, adopt or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

     (j) Make all other decisions and determinations that may be required under the Plan or
as the Committee deems necessary or advisable to administer the Plan; and

     (k) Amend the Plan or any Award Agreement as provided herein.

     4.4 DELEGATION OF AUTHORITY. To the extent not prohibited by applicable laws,
rules and regulations, the Board or the Committee may, from time to time, delegate some or all
of its authority under the Plan to a subcommittee or subcommittees thereof or to one or more
directors or executive officers of the Corporation as it deems appropriate under such conditions
or limitations as it may set at the time of such delegation or thereafter, except that neither
the Board nor the Committee may

6

 

delegate its authority pursuant to Article 16 to amend the Plan. For purposes of the Plan,
references to the Committee shall be deemed to refer to any subcommittee, subcommittees,
directors or executive officers to whom the Board or the Committee delegates authority pursuant
to this Section 4.4.

     4.5 DECISIONS BINDING. The Committee’s interpretation of the Plan, any Awards
granted under the Plan, any Award Agreement and all decisions and determinations by the
Committee with respect to the Plan are final, binding and conclusive on all parties.

ARTICLE 5
SHARES SUBJECT TO THE PLAN

     5.1 NUMBER OF SHARES. Subject to adjustment as provided in Section 15.1, the
aggregate number of shares of Stock reserved and available for Awards or which may be used to
provide a basis of measurement for or to determine the value of an Award (such as with a Stock
Appreciation Right or Performance Share Award) shall be 7,150,000 shares (the “Maximum Number”).
Not more than the Maximum Number of shares of Stock shall be granted in the form of Incentive
Stock Options.

     5.2 LAPSED AWARDS. To the fullest extent permissible under Rule 16b-3 under the
1934 Act and Section 422 of the Code and any other applicable laws, rules and regulations, (i)
if an Award is canceled, terminates, expires, is forfeited or lapses for any reason without
having been exercised or settled, any shares of Stock subject to the Award will be added back
into the Maximum Number and will again be available for the grant of an Award under the Plan and
(ii) shares of Stock subject to SARs or other Awards settled in cash and the number of shares of
Stock tendered or withheld to satisfy a Participant’s tax withholding obligations shall be added
back into the Maximum Number and will be available for the grant of an Award under the Plan.

     5.3 STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the
open market.

     5.4 LIMITATION ON AWARDS. Notwithstanding any provision in the Plan to the
contrary (but subject to adjustment as provided in Section 15.1), the maximum number of shares
of Stock with respect to one or more Options and/or SARs that may be granted during any one
calendar year under the Plan to any one Participant shall be 412,500 (all of which may be
granted as Incentive Stock Options); provided, however, that in connection with
his or her initial employment with the Corporation, a Participant may be granted Options or SARs
with respect to up to an additional 412,500 shares of Stock (all of which may be granted as
Incentive Stock Options), which shall not count against the foregoing annual limit. The maximum
Fair Market Value (measured as of the date of grant) of any Awards other than Options and SARs
that may be received by any one Participant (less any consideration paid by the Participant for
such Award) during any one calendar year under the Plan shall be $5,000,000. The maximum number
of shares of Stock that may be subject to one or more Performance Share Awards (or used to
provide a basis of measurement for or to determine the value of Performance Share Awards) in any
one calendar year to any one participant (determined on the date of payment of settlement) shall
be 412,500.

ARTICLE 6
ELIGIBILITY

     6.1 GENERAL. Awards may be granted only to individuals who are employees,
officers, directors or consultants of the Corporation or a Parent or an Affiliate.

7

 

ARTICLE 7
STOCK OPTIONS

     7.1 GENERAL. The Committee is authorized to grant Options to Participants on the
following terms and conditions:

         (a) EXERCISE PRICE. The exercise price per share of Stock under an Option
shall be determined by the Committee at the time of the grant but in no event shall the
exercise price be less than 100% of the Fair Market Value of a share of Stock on the date of
grant.

         (b) TIME AND CONDITIONS OF EXERCISE. The Committee shall determine the time or
times at which an Option may be exercised in whole or in part, subject to Section 7.1(e) and
7.3. The Committee also shall determine the performance or other conditions, if any, that
must be satisfied before all or part of an Option may be exercised. The Committee may waive
any exercise provisions at any time in whole or in part based upon factors as the Committee
may determine in its sole discretion so that the Option becomes exercisable at an earlier
date.

         (c) PAYMENT. Unless otherwise determined by the Committee, the exercise price
of an Option may be paid (i) in cash, (ii) by actual delivery or attestation to ownership of
freely transferable shares of stock already owned; provided, however, that
to the extent required by applicable accounting rules, such shares shall have been held by
the Participant for at least six months, (iii) by a combination of cash and shares of Stock
equal in value to the exercise price or (iv) by such other means as the Committee, in its
discretion, may authorize. In accordance with the rules and procedures authorized by the
Committee for this purpose, an Option may also be exercised through a “cashless exercise”
procedure authorized by the Committee that permits Participants to exercise Options by
delivering a properly executed exercise notice to the Corporation together with a copy of
irrevocable instructions to a broker to deliver promptly to the Corporation the amount of
sale or loan proceeds necessary to pay the exercise price and the amount of any required tax
or other withholding obligations.

         (d) EVIDENCE OF GRANT. All Options shall be evidenced by a written Award
Agreement between the Corporation and the Participant. The Award Agreement shall include
such provisions not inconsistent with the Plan as may be specified by the Committee.

         (e) EXERCISE TERM. In no event may any Option be exercisable for more than ten
years from the date of its grant.

     7.2 INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Options granted
under the Plan must comply with the following additional rules:

         (a) LAPSE OF OPTION. An Incentive Stock Option shall lapse under the earliest
of the following circumstances; provided, however, that the Committee may,
prior to the lapse of the Incentive Stock Option under the circumstances described in
paragraphs (3), (4) and (5) below, provide in writing that the Option will extend until a
later date, but if an Option is exercised after the dates specified in paragraphs (3), (4)
and (5) below, it will automatically become a Non-Qualified Stock Option:

     (1) The Incentive Stock Option shall lapse as of the option expiration date set
forth in the Award Agreement.

8

 

     (2) The Incentive Stock Option shall lapse ten years after it is granted, unless
an earlier time is set in the Award Agreement.

     (3) If the Participant terminates employment for any reason other than as
provided in paragraph (4) or (5) below, the Incentive Stock Option shall lapse,
unless it is previously exercised, three months after the Participant’s termination
of employment; provided, however, that if the Participant’s
employment is terminated by the Corporation for Cause, the Incentive Stock Option
shall (to the extent not previously exercised) lapse immediately.

     (4) If the Participant terminates employment by reason of his Disability, the
Incentive Stock Option shall lapse, unless it is previously exercised, one year after
the Participant’s termination of employment.

     (5) If the Participant dies while employed, or during the three-month period
described in paragraph (3) or during the one-year period described in paragraph (4)
and before the Option otherwise lapses, the Option shall lapse one year after the
Participant’s death. Upon the Participant’s death, any exercisable Incentive Stock
Options may be exercised by the Participant’s beneficiary, determined in accordance
with Section 14.5.

     Unless the exercisability of the Incentive Stock Option is accelerated as provided in
Article 14, if a Participant exercises an Option after termination of employment, the Option
may be exercised only with respect to the shares that were otherwise vested on the
Participant’s termination of employment.

     (b) INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair Market Value (determined
as of the time an Award is made) of all shares of Stock with respect to which Incentive
Stock Options are first exercisable by a Participant in any calendar year may not exceed
$100,000.00.

     (c) TEN PERCENT OWNERS. No Incentive Stock Option shall be granted to any
individual who, at the date of grant, owns stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Corporation or any Parent or
Affiliate unless the exercise price per share of such Option is at least 110% of the Fair
Market Value per share of Stock at the date of grant and the Option expires no later than
five years after the date of grant.

     (d) EXPIRATION OF INCENTIVE STOCK OPTIONS. No Award of an Incentive Stock
Option may be made pursuant to the Plan after the day immediately prior to the tenth
anniversary of the Effective Date.

     (e) RIGHT TO EXERCISE. During a Participant’s lifetime, an Incentive Stock
Option may be exercised only by the Participant or, in the case of the Participant’s
Disability, by the Participant’s guardian or legal representative.

     (f) DIRECTORS. The Committee may not grant an Incentive Stock Option to a
non-employee director. The Committee may grant an Incentive Stock Option to a director who
is also an employee of the Corporation or any Parent or Affiliate but only in that
individual’s position as an employee and not as a director.

9

 

     7.3 OPTIONS GRANTED TO NON-EMPLOYEE DIRECTORS. Notwithstanding the foregoing, Options
granted to Non-Employee Directors under this Article 7 shall be subject to the following additional
terms and conditions:

     (a) LAPSE OF OPTION. An Option granted to a Non-Employee Director under this
Article 7 shall lapse under the earliest of the following circumstances:

     (1) The Option shall lapse as of the option expiration date set forth in the
Award Agreement.

     (2) Unless the applicable Award Agreement provides for a longer period, if the
Participant ceases to serve as a member of the Board for any reason other than as
provided in the proviso to this paragraph (2) or in paragraph (3) below, the Option
shall lapse, unless it is previously exercised, (A) in the case of Option grants made
to Non-Employee Directors after the Amendment and Restatement Date, three years after
the Participant’s termination as a member of the Board and (B) in the case of Option
grants made to Non-Employee Directors on or prior to the Amendment and Restatement
Date, on the later of (x) 61/2 months following the Participant’s termination as a
member of the Board of Directors or (y) December 31 of the year in which such
termination of service occurs; provided, however, that if the Participant is removed
for cause (determined in accordance with the Corporation’s bylaws, as amended from
time to time), the Option shall (to the extent not previously exercised) lapse
immediately.

     (3) Unless the applicable Award Agreement provides for a longer period, if the
Participant ceases to serve as a member of the Board by reason of his Disability or
death, the Option shall lapse, unless it is previously exercised, (A) in the case of
Option grants made to Non-Employee Directors after the Amendment and Restatement
Date, three years after the Participant’s termination as a member of the Board and
(B) in the case of Option grants made to Non-Employee Directors on or prior to the
Amendment and Restatement Date, 151/2 months following the Participant’s termination as
a member of the Board of Directors. If the Participant dies during the post
termination exercise period specified above in paragraph (2) or in paragraph (3) and
before the Option otherwise lapses, the Option shall lapse one year after the
Participant’s death. Upon the Participant’s death, any exercisable Options may be
exercised by the Participant’s beneficiary, determined in accordance with Section
14.5

If a Participant exercises Options after termination of his service on the Board, he may
exercise the Options only with respect to the shares that were otherwise exercisable on the
date of termination of his service on the Board. Such exercise otherwise shall be subject
to the terms and conditions of this Article 7.

     (b) ACCELERATION UPON CHANGE OF CONTROL. Notwithstanding Section 7.1(b), in
the event of a Change of Control of the Corporation, each Option granted to a Non-Employee
Director under this Article 7 that is then outstanding immediately prior to such Change of
Control shall become immediately vested and exercisable in full on the date of such Change
of Control.

ARTICLE 8
STOCK APPRECIATION RIGHTS

     8.1 GRANT OF STOCK APPRECIATION RIGHTS. The Committee is authorized to grant Stock
Appreciation Rights to Participants on the following terms and conditions:

10

 

     (a) RIGHT TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the
Participant to whom it is granted has the right to receive the excess, if any, of:

     (1) The Fair Market Value of one share of Stock on the date of exercise; over

     (2) The grant price of the Stock Appreciation Right as determined by the
Committee, which shall not be less than the Fair Market Value of one share of Stock
on the date of grant.

     (b) OTHER TERMS. All awards of Stock Appreciation Rights shall be evidenced by
an Award Agreement. The terms, methods of exercise, methods of settlement, form of
consideration payable in settlement, and any other terms and conditions of any Stock
Appreciation Right shall be determined by the Committee at the time of the grant of the
Award and shall be reflected in the Award Agreement.

ARTICLE 9
PERFORMANCE SHARES

     9.1 GRANT OF PERFORMANCE SHARES. The Committee is authorized to grant Performance
Shares to Participants on such terms and conditions as may be selected by the Committee. The
Committee shall have the complete discretion to determine the number of Performance Shares
granted to each Participant, subject to Section 5.4. All Awards of Performance Shares shall be
evidenced by an Award Agreement.

     9.2 RIGHT TO PAYMENT. A grant of Performance Shares gives the Participant rights,
valued as determined by the Committee, and payable to, or exercisable by, the Participant to
whom the Performance Shares are granted, in whole or in part, as the Committee shall establish
at grant or thereafter. The Committee shall set performance goals and other terms or conditions
to payment of the Performance Shares in its discretion which, depending on the extent to which
they are met, will determine the number and value of Performance Shares that will be paid to the
Participant.

     9.3 OTHER TERMS. Performance Shares may be payable in cash, Stock or other
property, and have such other terms and conditions as determined by the Committee and reflected
in the Award Agreement.

ARTICLE 10
RESTRICTED STOCK AWARDS

     10.1 GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of
Restricted Stock to Participants in such amounts and subject to such terms and conditions as may
be selected by the Committee. All Awards of Restricted Stock shall be evidenced by a Restricted
Stock Award Agreement.

     10.2 ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the Committee may impose (including,
without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends on the Restricted Stock). These restrictions may lapse separately or in combination
at such times, under such circumstances, in such installments, upon the satisfaction of
performance goals or otherwise, as the Committee determines at the time of the grant of the
Award or thereafter.

11

 

     10.3 FORFEITURE. Except as otherwise determined by the Committee at the time of
the grant of the Award or thereafter, upon termination of employment during the applicable
restriction period or upon failure to satisfy a performance goal during the applicable
restriction period, Restricted Stock that is at that time subject to restrictions shall be
forfeited and reacquired by the Corporation; provided, however, that the
Committee may provide in any Award Agreement that restrictions or forfeiture conditions relating
to Restricted Stock will be waived in whole or in part in the event of
terminations resulting from specified causes, and the Committee may in other cases waive in
whole or in part restrictions or forfeiture conditions relating to Restricted Stock.

     10.4 CERTIFICATES FOR RESTRICTED STOCK. Restricted Stock granted under the Plan
may be evidenced in such manner as the Committee shall determine. If certificates representing
shares of Restricted Stock are registered in the name of the Participant, certificates must bear
an appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock.

ARTICLE 11
DIVIDEND EQUIVALENTS

     11.1 GRANT OF DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend
Equivalents to Participants subject to such terms and conditions as may be selected by the
Committee. Dividend Equivalents shall entitle the Participant to receive payments (in cash,
Stock or other property) equal to dividends with respect to all or a portion of the number of
shares of Stock subject to an Award, as determined by the Committee. The Committee may provide
that Dividend Equivalents be paid or distributed when accrued, or be deemed to have been
reinvested in additional shares of Stock or otherwise reinvested.

ARTICLE 12
OTHER STOCK-BASED AWARDS

     12.1 GRANT OF OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to
limitations under applicable law, to grant to Participants such other Awards that are payable
in, valued in whole or in part by reference to, or otherwise based on or related to shares of
Stock, as deemed by the Committee to be consistent with the purposes of the Plan, including,
without limitation, shares of Stock awarded purely as a “bonus” and not subject to any
restrictions or conditions, convertible or exchangeable debt securities, other rights
convertible or exchangeable into shares of Stock, stock units, phantom stock and other Awards
valued by reference to book value of shares of Stock or the value of securities of or the
performance of specified Parents or Subsidiaries. The Committee shall determine the terms and
conditions of such Awards.

ARTICLE 13
ANNUAL AWARDS TO NON-EMPLOYEE DIRECTORS

     13.1 GRANT OF OPTIONS. Each Non-Employee Director who is serving in such capacity
as of January 1 of each year that the Plan is in effect shall be granted a Non-Qualified Option
to purchase 13,200 shares of Stock, subject to adjustment as provided in Section 15.1. In
addition, each Non-Employee Director who is serving in such capacity as of the effective date of
the Initial Public Offering shall be granted a Non-Qualified Stock Option to purchase 13,200
shares of Stock on such date. Each such date that Options are to be granted under this Article
13 is referred to hereinafter as a “Grant Date”. In addition, the Committee may, in its sole
discretion, permit or require each Non-Employee Director to receive all or any portion of his or
her compensation for services as a director in the form of an Award under the Plan with such
term and conditions as may be determined by the Board in its sole discretion.

12

 

     If on any Grant Date, shares of Stock are not available under the Plan to grant to
Non-Employee Directors the full amount of a grant contemplated by the immediately preceding
paragraph, then each Non-Employee Director shall receive an Option (a “Reduced Grant”) to purchase
shares of Stock in an amount equal to the number of shares of Stock then available under the Plan
divided by the number of Non-Employee Directors as of the applicable Grant Date. Fractional shares
shall be ignored and not granted.

     If a Reduced Grant has been made and, thereafter, during the term of the Plan, additional
shares of Stock become available for grant, then each person who was a Non-Employee Director both
on the Grant Date on which the Reduced Grant was made and on the date additional shares of Stock
become available (a “Continuing Non-Employee Director”) shall receive an additional Option to purchase shares of
Stock. The number of newly available shares shall be divided equally among the Options granted to
the Continuing Non-Employee Directors; provided, however, that the aggregate number
of shares of Stock subject to a Continuing Non-Employee Director’s additional Option plus any prior
Reduced Grant to the Continuing Non-Employee Director on the applicable Grant Date shall not exceed
13,200 shares (subject to adjustment pursuant to Section 15.1). If more than one Reduced Grant has
been made, available Options shall be granted beginning with the earliest such Grant Date.

     13.2 OPTION PRICE. The option price for each Option granted under this Article 13
shall be the Fair Market Value on the date of grant of the Option.

     13.3 TERM. Each Option granted under this Article 13 shall, to the extent not
previously exercised, terminate and expire on the date ten (10) years after the date of grant of
the Option, unless earlier terminated as provided in Section 13.4.

     13.4 LAPSE OF OPTION. An Option granted under this Article 13 shall not
automatically lapse by reason of the Participant ceasing to qualify as a Non-Employee Director
but remaining as a member of the Board. An Option granted under this Article 13 shall lapse
under the earliest of the following circumstances:

     (1) The Option shall lapse ten years after it is granted.

     (2) Unless the applicable Award Agreement provides for a longer period, if the
Participant ceases to serve as a member of the Board for any reason other than as provided
in the proviso to this paragraph (2) or paragraph (3) below, the Option shall lapse, unless
it is previously exercised, (A) in the case of Option grants made to Non-Employee Directors
after the Amendment and Restatement Date, three years after the Participant’s termination as
a member of the Board and (B) in the case of Option grants made to Non-Employee Directors on
or prior to the Amendment and Restatement Date, on the later of (x) 61/2 months following the
Participant’s termination as a member of the Board of Directors or (y) December 31 of the
year in which such termination of service occurs; provided, however, that if the Participant
is removed for cause (determined in accordance with the Corporation’s bylaws, as amended
from time to time), the Option shall (to the extent not previously exercised) lapse
immediately.

     (3) Unless the applicable Award Agreement provides for a longer period, if the
Participant ceases to serve as a member of the Board by reason of his Disability or death,
the Option shall lapse, unless it is previously exercised, (A) in the case of Option grants
made to Non-Employee Directors after the Amendment and Restatement Date, three years after
the Participant’s termination as a member of the Board and (B) in the case of Option grants
made to Non-Employee Directors on or prior to the Amendment and Restatement Date, 151/2 months
following the Participant’s termination as a member of the Board of Directors. If the
Participant dies during the post termination exercise period specified above in paragraph
(2) or in paragraph (3) and before the

13

 

Option otherwise lapses, the Option shall lapse one
year after the Participant’s death. Upon the Participant’s death, any exercisable Options
may be exercised by the Participant’s beneficiary, determined in accordance with Section
14.5.

          If a Participant exercises Options after termination of his or her service on the Board, he or
she may exercise the Options only with respect to the shares that were otherwise exercisable on the
date of termination of his service on the Board. Such exercise otherwise shall be subject to the
terms and conditions of this Article 13.

     13.5 CANCELLATION OF OPTIONS. Upon a Participant’s termination of service for any
reason other than death or Disability, all Options that have not vested in accordance with the
Plan shall be cancelled immediately.

     13.6 EXERCISABILITY. Subject to Section 13.7, each Option grant under this Article
13 shall be exercisable as to twenty-five percent (25%) of the Option shares on each of the
first, second, third and fourth anniversaries of the Grant Date, such that the Options will be
fully exercisable after four years from the Grant Date.

     13.7 ACCELERATION UPON A CHANGE OF CONTROL. Notwithstanding Section 13.6, in the
event of a Change of Control of the Corporation, each Option granted under his Section 13 that
is then outstanding immediately prior to such Change of Control shall
become immediately vested and
exercisable in full on the date of such Change in Control.

     13.8 TERMINATION OF ARTICLE 13. No Options shall be granted under this Article 13
after January 1, 2015.

     13.9 NON-EXCLUSIVITY. Nothing in this Article 13 shall prohibit the Committee from
making discretionary Awards to Non-Employee Directors pursuant to the other provisions of the
Plan before or after January 1, 2015. Options granted pursuant to this Article 13 shall be
governed by the provisions of this Article 13 and by other provisions of the Plan to the extent
not inconsistent with the provisions of this Article 13.

ARTICLE 14
PROVISIONS APPLICABLE TO AWARDS

     14.1 STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted under the Plan
may, in the discretion of the Committee, be granted either alone or in addition to, in tandem
with, or in substitution for, any other Award granted under the Plan. If an Award is granted in
substitution for another Award, the Committee may require the surrender of such other Award in
consideration of the grant of the new Award. Awards granted in addition to or in tandem with
other Awards may be granted either at the same time as or at a different time from the grant of
such other Awards.

     14.2 TERM OF AWARD. The term of each Award shall be for the period as determined
by the Committee, provided that in no event shall the term of any Incentive Stock Option
or a Stock Appreciation Right granted in tandem with the Incentive Stock Option exceed a period
of ten years from the date of its grant (or, if Section 7.2(c) applies, five years from the date
of its grant).

     14.3 FORM OF PAYMENT FOR AWARDS. Subject to the terms of the Plan and any
applicable law or Award Agreement, payments or transfers to be made by the Corporation or a
Parent or Affiliate on the grant or exercise of an Award may be made in such form as the
Committee determines at

14

 

or after the time of grant, including, without limitation, cash, Stock,
other Awards or other property, or any combination thereof, and may be made in a single payment
or transfer, in installments or on a deferred basis, in each case determined in accordance with
rules adopted by, and at the discretion of, the Committee.

     14.4 LIMITS ON TRANSFER. No right or interest of a Participant in any unexercised
or restricted Award may be pledged, encumbered or hypothecated to or in favor of any party other
than the Corporation or a Parent or Affiliate, or shall be subject to any lien, obligation, or
liability of such Participant to any other party other than the Corporation or a Parent or
Affiliate. No unexercised or restricted Award shall be assignable or transferable by a
Participant other than by will or the laws of descent and distribution or, except in the case of an Incentive Stock Option, pursuant to a
domestic relations order that would satisfy Section 414(p)(1)(A) of the Code if such Section
applied to an Award under the Plan; provided, however, that the Committee may
(but need not) permit other transfers where the Committee concludes that such transferability
(i) does not result in accelerated taxation or other adverse tax consequences, (ii) does not
cause any Option intended to be an Incentive Stock Option to fail to be described in Section
422(b) of the Code, and (iii) is otherwise appropriate and desirable, taking into account any
factors deemed relevant, including, without limitation, state or federal tax or securities laws
applicable to transferable Awards.

     14.5 BENEFICIARIES. Notwithstanding Section 14.4, a Participant may, in the manner
determined by the Committee, designate a beneficiary to exercise the rights of the Participant
and to receive any distribution with respect to any Award upon the Participant’s death. A
beneficiary, legal guardian, legal representative or other person claiming any rights under the
Plan is subject to all terms and conditions of the Plan and any Award Agreement applicable to
the Participant, except to the extent the Plan and such Award Agreement otherwise provide, and
to any additional restrictions deemed necessary or appropriate by the Committee. If no
beneficiary has been designated or survives the Participant, payment shall be made to the
Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time, provided the change or revocation is filed with
the Committee.

     14.6 STOCK CERTIFICATES. All Stock issuable under the Plan is subject to any
stop-transfer orders and other restrictions as the Committee deems necessary or advisable to
comply with federal or state securities laws, rules and regulations and the rules of any
national securities exchange or automated quotation system on which the Stock is listed, quoted
or traded. The Committee may place legends on any Stock certificate or issue instructions to
the transfer agent to reference restrictions applicable to the Stock.

     14.7 ACCELERATION UPON DEATH OR DISABILITY. Unless otherwise set forth in an Award
Agreement, upon the Participant’s death or Disability during his employment or service as a
director, all outstanding Options, Stock Appreciation Rights, Restricted Stock Awards and other
Awards in the nature of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse. Any Option or Stock Appreciation Rights Awards
shall thereafter continue or lapse in accordance with the other provisions of the Plan and the
Award Agreement. To the extent that this provision causes Incentive Stock Options to exceed the
dollar limitation set forth in Section 7.2(b), the excess Options shall be deemed to be
Non-Qualified Stock Options.

     14.8 ACCELERATION OF VESTING AND LAPSE OF RESTRICTIONS. Subject to Sections 7.3(b)
and 13.7, the Committee may, in its sole discretion, at any time (including, without limitation,
prior to, coincident with or subsequent to a Change of Control) determine that (a) all or a
portion of a Participant’s Options, Stock Appreciation Rights and other Awards in the nature of
rights that may be exercised shall become fully or partially exercisable, and/or (b) all or a
part of the

15

 

restrictions on all or a portion of the outstanding Awards shall lapse, in each
case, as of such date as the Committee may, in its sole discretion, declare; provided,
however, that, with respect to Awards that are subject to Section 409A of the Code, the
Committee shall not have the authority to accelerate or postpone the timing of payment or
settlement of an Award in a manner that would cause such Award to become subject to the interest
and penalty provisions under Section 409A of the Code. The Committee may discriminate among
Participants and among Awards granted to a Participant in exercising its discretion pursuant to
this Section 14.8. All Awards made to Non-Employee Directors shall become fully vested and, in
the case of Options, Stock Appreciation Rights and other Awards in the nature of rights that may
be exercised, fully exercisable in the event of the occurrence of a Change of Control as of the
date of such Change of Control.

     14.9 OTHER ADJUSTMENTS. If (i) an Award is accelerated under Sections 7.3(b), 13.7
and/or 14.8 or (ii) a Change of Control occurs (regardless or whether acceleration under
Sections 7.3(b), 13.7 and/or 14.8 occurs), the Committee may, in its sole discretion, provide
(a) that the Award will expire after a designated period of time after such acceleration or
Change of Control, as applicable, to the extent not then exercised, (b) that the Award will be
settled in cash rather than Stock, (c) that the Award will be assumed by another party to a
transaction giving rise to the acceleration or a party to the Change of Control, (d) that the
Award will otherwise be equitably converted or adjusted in connection with such transaction or
Change of Control, or (e) any combination of the foregoing. The Committee’s determination need
not be uniform and may be different for different Participants whether or not such Participants
are similarly situated; provided, however, that, with respect to Awards that are
subject to Section 409A of the Code, the Committee shall not have the authority to accelerate or
postpone the timing of payment or settlement of an Award in a manner that would cause such Award
to become subject to the interest and penalty provisions under Section 409A of the Code.

     14.10 PERFORMANCE GOALS. In order to preserve the deductibility of an Award under
Section 162(m) of the Code, the Committee may determine that any Award granted pursuant to this
Plan to a Participant that is or is expected to become a Covered Employee shall be determined
solely on the basis of (a) the achievement by the Corporation or Subsidiary of a specified
target return, or target growth in return, on equity or assets, (b) the Corporation’s stock
price, (c) the Corporation’s total shareholder return (stock price appreciation plus reinvested
dividends) relative to a defined comparison group or target over a specific performance period,
(d) the achievement by the Corporation or a Parent or Subsidiary, or a business unit of any such
entity, of a specified target, or target growth in, net income, revenues, earnings per share,
earnings before income and taxes, and earnings before income, taxes, depreciation and
amortization, or (e) any combination of the goals set forth in (a) through (d) above. If an
Award is made on such basis, the Committee shall establish goals prior to the beginning of the
period for which such performance goal relates (or such later date as may be permitted under
Section 162(m) of the Code or the regulations thereunder), and the Committee has the right for
any reason to reduce (but not increase) the Award, notwithstanding the achievement of a
specified goal. Any payment of an Award granted with performance goals shall be conditioned on
the written certification of the Committee in each case that the performance goals and any other
material conditions were satisfied.

     14.11 TERMINATION OF EMPLOYMENT. Whether military, government or other service or
other leave of absence shall constitute a termination of employment shall be determined in each
case by the Committee at its discretion, and any determination by the Committee shall be final
and conclusive. A termination of employment shall not occur (i) in a circumstance in which a
Participant transfers from the Corporation to one of its Parents or Subsidiaries, transfers from
a Parent or Affiliate to the Corporation, or transfers from one Parent or Affiliate to another
Parent or Affiliate, or (ii) in the discretion of the Committee as specified at or prior to such
occurrence, in the case of a split-off, spin-off, sale or other disposition of the Participant’s
employer from the Corporation or any Parent or Affiliate. To the extent that this provision
causes Incentive Stock Options to extend beyond three months from the

16

 

date a Participant is deemed to be an employee of the Corporation, a Parent or Affiliate for purposes of Section
424(f) of the Code, the Options held by such Participant shall be deemed to be Non-Qualified
Stock Options.

     14.12 LOAN PROVISIONS. Subject to applicable laws, rules and regulations,
including, without limitation, Section 402 of the Sarbanes-Oxley Act of 2002, with the consent
of the Committee, the Corporation may make, guarantee or arrange for a loan or loans to a
Participant with respect to the exercise of any Option granted under this Plan and/or with
respect to the payment of the purchase price, if any, of any Award granted hereunder and/or with
respect to the payment by the Participant of any or all federal and/or state income taxes due on
account of the granting or exercise of any Award hereunder. The Committee shall have full
authority to decide whether to make a loan or loans hereunder and to
determine the amount, terms and provisions of any such loan(s), including the interest rate
to be charged in respect of any such loan(s), whether the loan(s) are to be made with or without
recourse against the borrower, the collateral or other security, if any, securing the repayment
of the loan(s), the terms on which the loan(s) are to be repaid and the conditions, if any,
under which the loan(s) may be forgiven.

ARTICLE 15
CHANGES IN CAPITAL STRUCTURE

     15.1 GENERAL. In the event of a corporate transaction involving the Corporation
(including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or
exchange of shares), the authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or potential
benefits of the Awards. Action by the Committee may include: (i) adjustment of the number and
kind of shares which may be delivered under the Plan; (ii) adjustment of the number and kind of
shares subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding
Awards; (iv) adjustments to the type or form of Award, and (v) any other adjustments that the
Committee determines to be equitable. Without limiting the foregoing, in the event a stock
dividend or stock split is declared upon the Stock, the authorization limits under Section 5.1
and 5.4 shall be increased proportionately, and the shares of Stock then subject to each Award
shall be increased proportionately without any change in the aggregate purchase price therefor.

ARTICLE 16
AMENDMENT, MODIFICATION AND TERMINATION

     16.1 AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at
any time and from time to time, amend, modify or terminate the Plan; provided,
however, that the Board or the Committee may condition any amendment or modification on
the approval of shareholders of the Corporation if such approval is necessary or deemed
advisable with respect to tax, securities or other applicable laws, policies or regulations.

     16.2 AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee
may amend, modify or terminate any outstanding Award or Award Agreement without approval of the
Participant; provided, however, that, subject to the terms of the applicable
Award Agreement, such amendment, modification or termination shall not, without the
Participant’s consent, reduce or diminish the value of such Award determined as if the Award had
been exercised, vested, cashed in or otherwise settled on the date of such amendment or
termination; provided further, however, that the original term of any
Option may not be extended. No termination, amendment, or modification of the Plan shall
adversely affect any Award previously granted under the Plan, without the written consent of the
Participant. Notwithstanding any provision herein to the contrary, the Committee shall have
broad authority to amend the Plan or any outstanding Award under the Plan without approval of
the

17

 

Participant to the extent necessary or desirable (i) to comply with, or take into account
changes in, applicable tax laws, securities laws, accounting rules and other applicable laws,
rules and regulations or (ii) to ensure that an Award is not subject to interest and penalties
under Section 409A of the Code.

ARTICLE 17
GENERAL PROVISIONS

     17.1 NO RIGHTS TO AWARDS. No Participant or any eligible participant shall have
any claim to be granted any Award under the Plan, and neither the Corporation nor the Committee
is obligated to treat Participants or eligible participants uniformly.

     17.2 NO STOCKHOLDER RIGHTS. No Award gives the Participant any of the rights of a
shareholder of the Corporation unless and until shares of Stock are in fact issued to such
person in connection with the exercise, payment or settlement of such Award.

     17.3 WITHHOLDING. The Corporation or any Subsidiary, Parent or Affiliate shall
have the authority and the right to deduct or withhold, or require a Participant to remit to the
Corporation, an amount sufficient to satisfy federal, state, local and other taxes (including
the Participant’s FICA obligation) required by law to be withheld with respect to any taxable
event arising as a result of the Plan. With respect to withholding required upon any taxable
event under the Plan, the Committee may, at the time the Award is granted or thereafter, require
or permit that any such withholding requirement be satisfied, in whole or in part, by (i)
withholding from the Award shares of Stock or (ii) delivering shares of Stock that are already
owned, having a Fair Market Value on the date of withholding equal to the minimum amount (and
not any greater amount) required to be withheld for tax purposes, all in accordance with such
procedures as the Committee establishes. The Corporation or any Subsidiary, Parent or
Affiliate, as appropriate, shall also have the right to deduct from all cash payments made to a
Participant (whether or not such payment is made in connection with an Award) any applicable
taxes required to be withheld with respect to such payments.

     17.4 NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any Award Agreement
shall interfere with or limit in any way the right of the Corporation or any Parent or Affiliate
to terminate any Participant’s employment or status as an officer, director or consultant at any
time, nor confer upon any Participant any right to continue as an employee, officer, director or
consultant of the Corporation or any Parent or Affiliate. In its sole discretion, the Board or
the Committee may authorize the creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver shares of Stock with respect to awards hereunder.

     17.5 UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant
pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the
Participant any rights that are greater than those of a general creditor of the Corporation or
any Parent or Affiliate.

     17.6 INDEMNIFICATION. To the extent allowable under applicable law, each member of
the Committee shall be indemnified and held harmless by the Corporation from any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by such member in
connection with or resulting from any claim, action, suit or proceeding to which such member may
be a party or in which he may be involved by reason of any action or failure to act under the
Plan and against and from any and all amounts paid by such member in satisfaction of judgment in
such action, suit or proceeding against him; provided such member shall give the
Corporation an opportunity, at its own expense, to handle and defend the same before such member
undertakes to handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to which

18

 

such persons may be entitled under the Corporation’s Certificate of Incorporation or Bylaws, as a
matter of law, or otherwise, or any power that the Corporation may have to indemnify them or
hold such persons harmless.

     17.7 RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings, profit sharing,
group insurance, welfare or benefit plan of the Corporation or any Parent or Affiliate unless
provided otherwise in such other plan.

     17.8 EXPENSES; APPLICATION OF FUNDS. The expenses of administering the Plan shall
be borne by the Corporation and its Parents or Subsidiaries. The proceeds received by the
Corporation from the sale of shares of Stock pursuant to Awards will be used for general
corporate purposes.

     17.9 TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are
for convenience of reference only, and in the event of any conflict, the text of the Plan,
rather than such titles or headings, shall control.

     17.10 GENDER AND NUMBER. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall include the
singular and the singular shall include the plural.

     17.11 FRACTIONAL SHARES. No fractional shares of Stock shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional
shares or whether such fractional shares shall be eliminated by rounding up or down.

     17.12 GOVERNMENT AND OTHER REGULATIONS. The obligation of the Corporation to make
payment of awards in Stock or otherwise shall be subject to all applicable laws, rules and
regulations, and to such approvals by government agencies as may be required. To the extent
that Awards under the Plan are awarded to individuals who are domiciled or resident outside of
the United States or to persons who are domiciled or resident in the United States but who are
subject to the tax laws of a jurisdiction outside of the United States, the Committee may adjust
the terms of the Awards granted hereunder to such person (i) to comply with the laws of such
jurisdiction and (ii) to avoid adverse tax consequences relating to an Award. The authority
granted under the previous sentence shall include the discretion for the Committee to adopt, on
behalf of the Corporation, one or more sub-plans applicable to separate classes of Participants
who are subject to the laws of jurisdictions outside of the United States.

     17.13 SECURITIES LAW RESTRICTIONS. An Award may not be exercised or settled and no
shares of Stock may be issued in connection with an Award unless the issuance of such shares of
Stock has been registered under the 1933 Act and qualified under applicable state “blue sky”
laws and any applicable foreign securities laws, or the Corporation has determined that an
exemption from registration and from qualification under such state “blue sky” laws is
available. The Corporation shall be under no obligation to register under the 1933 Act, or any
state securities act, any of the shares of Stock issued in connection with the Plan. The shares
issued in connection with the Plan may in certain circumstances be exempt from registration
under the 1933 Act, and the Corporation may restrict the transfer of such shares in such manner
as it deems advisable to ensure the availability of any such exemption. The Committee may
require each Participant purchasing or acquiring shares of Stock pursuant to an Award under the
Plan to represent to and agree with the Corporation in writing that such Participant is
acquiring the shares of Stock for investment purposes and not with a view to the distribution
thereof. All certificates for shares of Stock delivered under the Plan shall be subject to such

19

 

stock-transfer orders and other restrictions as the Committee may deem advisable under the
rules, regulations and other requirements of the Securities and Exchange Commission, any
exchange upon which the Stock is then listed, and any applicable securities law, and the
Committee may cause a legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

     17.14 SATISFACTION OF OBLIGATIONS. Subject to applicable law, the Corporation may
apply any cash, shares of Stock, securities or other consideration received upon exercise or
settlement of an Award to any obligations a Participant owes to the Corporation and its Parents,
Subsidiaries or Affiliates in connection with the Plan or otherwise, including, without
limitation, any tax obligations or obligations under a currency facility established in
connection with the Plan.

     17.15 SECTION 409A OF THE CODE. If any provision of the Plan or an Award Agreement
contravenes any regulations or Treasury guidance promulgated under Section 409A of the Code or
could cause an Award to be subject to the interest and penalties under Section 409A of the Code,
such provision of the Plan or any Award Agreement shall be modified to maintain, to the maximum
extent practicable, the original intent of the applicable provision without violating the
provisions of Section 409A of the Code. Moreover, any discretionary authority that the Board or
the Committee may have pursuant to the Plan shall not be applicable to an Award that is subject
to Section 409A of the Code to the extent such discretionary authority will contravene Section
409A of the Code or the Treasury guidance promulgated thereunder.

     17.16 GOVERNING LAW. To the extent not governed by federal law, the Plan and all
Award Agreements shall be construed in accordance with and governed by the laws of the State of
Delaware.

     17.17 ADDITIONAL PROVISIONS. Each Award Agreement may contain such other terms and
conditions as the Board or the Committee may determine, provided that such other terms
and conditions are not inconsistent with the provisions of this Plan. In the event of any
conflict or inconsistency between the Plan and an Award Agreement, the Plan shall govern and the
Award Agreement shall be interpreted to minimize or eliminate such conflict or inconsistency.

20

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]