Document:

Exhibit 10.1

	
  
Trimble Navigation Limited
  
	
  
Deferred   Compensation Plan
  
	
  
Master Plan Document
  
	
  

  

 

 

Effective December 30, 2004

(as amended May 19, 2005)

TABLE OF CONTENTS

	
   
 	
   
 	
  
Page
  
	
   
 	
   
 	
  

  
	
  ARTICLE 1
  	
  
Definitions
  	
  
1
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 2
  	
  
Selection, Enrollment, Eligibility
  	
  
5
  
	
  
 
  	
  
 
  	
   
 
	
  
              2.1
  	
  
Selection by Committee
  	
  
5
  
	
  
              2.2
  	
  
Enrollment and Eligibility Requirements;   Commencement of Participation
  	
  
6
  
	
  
              2.3
  	
  
Termination of a Participant’s Eligibility
  	
  
6
  
	
   
  	
  
 
  	
   
 
	
  
ARTICLE 3
  	
  
Deferral Commitments/Company Contribution   Amounts/Vesting/Crediting/Taxes
  	
  
7
  
	
  
 
  	
  
 
  	
   
 
	
  
              3.1
  	
  
Minimum Deferrals
  	
  
7
  
	
  
              3.2
  	
  
Maximum Deferral
  	
  
7
  
	
  
              3.3
  	
  
Election to Defer; Effect of Election Form
  	
  
8
  
	
  
              3.4
  	
  
Withholding and Crediting of Annual   Deferral Amounts
  	
  
8
  
	
                3.5
  	
  
Company Contribution Amount
  	
  
8
  
	
  
              3.6
  	
  
Crediting of Amounts after   Benefit   Distribution
  	
  
9
  
	
  
              3.7
  	
  
Vesting
  	
  
9
  
	
  
              3.8
  	
  
Crediting/Debiting of Account Balances
  	
  
9
  
	
  
              3.9
  	
  
FICA and Other Taxes
  	
  
10
  
	
  
 
  	
  
 
  	
   
 
	
  ARTICLE 4
  	
  
Scheduled Distribution; Unforeseeable   Financial Emergencies;
  	
  
11
  
	
  
 
  	
  
 
  	
   
 
	
  
              4.1
  	
  
Scheduled Distribution
  	
  
11
  
	
  
              4.2
  	
  
Postponing Scheduled Distributions
  	
  
11
  
	
  
              4.3
  	
  
Other Benefits Take Precedence Over   Scheduled Distributions
  	
  
11
  
	
  
              4.4
  	
  
Withdrawal Payout/Suspensions for   Unforeseeable Financial Emergencies
  	
  
12
  
	
   
  	
  
 
  	
   
 
	
  
ARTICLE 5
  	
  
Change In Control Benefit
  	
  
12
  
	
  
 
  	
  
 
  	
   
 
	
  
              5.1
  	
  
Change in Control Benefit
  	
  
13
  
	
  
              5.2
  	
  
Payment of Change in Control Benefit
  	
  
13
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 6
  	
  
Retirement Benefit
  	
  
13
  
	
   
  	
  
 
  	
   
 
	
  
              6.1
  	
  
Retirement Benefit
  	
  
13
  
	
  
              6.2
  	
  
Payment of Retirement Benefit
  	
  
13
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 7
  	
  
Termination Benefit
  	
  
14
  
	
  
 
  	
  
 
  	
   
 
	
  
              7.1
  	
  
Termination Benefit
  	
  
14
  
	
                7.2
  	
  
Payment of Termination Benefit
  	
  
14
  

-i-

	
  
ARTICLE 8
  	
  
Disability Benefit
  	
  
14
  
	
  
 
  	
  
 
  	
   
 
	
  
              8.1
  	
  
Disability Benefit
  	
  
14
  
	
  
              8.2
  	
  
Payment of Disability Benefit
  	
  
14
  
	
   
  	
  
 
  	
   
 
	
  
ARTICLE 9
  	
  
Death Benefit
  	
  
15
  
	
  
 
  	
  
 
  	
   
 
	
  
              9.1
  	
  
Death Benefit
  	
  
15
  
	
  
              9.2
  	
  
Payment of Death Benefit
  	
  
15
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 10
  	
  
Beneficiary Designation
  	
  
15
  
	
   
  	
  
 
  	
   
 
	
  
              10.1
  	
  
Beneficiary
  	
  
15
  
	
  
              10.2
  	
  
Beneficiary Designation; Change; Spousal   Consent
  	
  
15
  
	
  
              10.3
  	
  
Acknowledgement
  	
  
15
  
	
  
              10.4
  	
  
No Beneficiary Designation
  	
  
15
  
	
  
              10.5
  	
  
Doubt as to Beneficiary
  	
  
15
  
	
                10.6
  	
  
Discharge of Obligations
  	
  
16
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 11
  	
  
Leave of Absence
  	
  
16
  
	
  
 
  	
  
 
  	
   
 
	
  
              11.1
  	
  
Paid Leave of Absence
  	
  
16
  
	
  
              11.2
  	
  
Unpaid Leave of Absence
  	
  
16
  
	
  
 
  	
  
 
  	
   
 
	
  ARTICLE 12
  	
  
Termination of Plan, Amendment or   Modification
  	
  
16
  
	
  
 
  	
  
 
  	
   
 
	
  
              12.1
  	
  
Termination of Plan
  	
  
16
  
	
  
              12.2
  	
  
Amendment
  	
  
17
  
	
  
              12.3
  	
  
Plan Agreement
  	
  
17
  
	
  
              12.4
  	
  
Effect of Payment
  	
  
17
  
	
   
  	
  
 
  	
   
 
	
  
ARTICLE 13
  	
  
Administration
  	
  
17
  
	
  
 
  	
  
 
  	
   
 
	
  
              13.1
  	
  
Committee Duties
  	
  
17
  
	
  
              13.2
  	
  
Administration Upon Change In Control
  	
  
17
  
	
  
              13.3
  	
  
Agents
  	
  
18
  
	
  
              13.4
  	
  
Binding Effect of Decisions
  	
  
18
  
	
                13.5
  	
  
Indemnity of Committee
  	
  
18
  
	
  
              13.6
  	
  
Employer Information
  	
  
18
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 14
  	
  
Other Benefits and Agreements
  	
  
18
  
	
  
 
  	
  
 
  	
   
 
	
  
              14.1
  	
  
Coordination with Other Benefits
  	
  
18
  
	
  
 
  	
  
 
  	
   
 
	
  ARTICLE 15
  	
  
Claims Procedures
  	
  
19
  
	
  
 
  	
  
 
  	
   
 
	
  
              15.1
  	
  
Presentation of Claim
  	
  
19
  
	
  
              15.2
  	
  
Notification of Decision
  	
  
19
  
	
  
              15.3
  	
  
Review of a Denied Claim
  	
  
19
  
	
  
              15.4
  	
  
Decision on Review
  	
  
20
  
	
                15.5
  	
  
Legal Action
  	
  
20
  

-ii-

	
  
ARTICLE 16
  	
  
Trust
  	
  
20
  
	
  
 
  	
  
 
  	
   
 
	
  
              16.1
  	
  
Establishment of the Trust
  	
  
20
  
	
  
              16.2
  	
  
Interrelationship of the Plan and the Trust
  	
  
20
  
	
                16.3
  	
  
Distributions From the Trust
  	
  
21
  
	
  
 
  	
  
 
  	
   
 
	
  
ARTICLE 17
  	
  
Miscellaneous
  	
  
21
  
	
  
 
  	
  
 
  	
   
 
	
  
              17.1
  	
  
Status of Plan
  	
  
21
  
	
  
              17.2
  	
  
Unsecured General Creditor
  	
  
21
  
	
  
              17.3
  	
  
Employer’s Liability
  	
  
21
  
	
                17.4
  	
  
Nonassignability
  	
  
21
  
	
  
              17.5
  	
  
Not a Contract of Employment
  	
  
21
  
	
  
              17.6
  	
  
Furnishing Information
  	
  
22
  
	
  
              17.7
  	
  
Terms
  	
  
22
  
	
  
              17.8
  	
  
Captions
  	
  
22
  
	
  
              17.9
  	
  
Governing Law
  	
  
22
  
	
                17.10
  	
  
Notice
  	
  
22
  
	
  
              17.11
  	
  
Successors
  	
  
22
  
	
  
              17.12
  	
  
Spouse’s Interest
  	
  
22
  
	
  
              17.13
  	
  
Validity
  	
  
22
  
	
  
              17.14
  	
  
Incompetent
  	
  
23
  
	
  
              17.15
  	
  
Court Order
  	
  
23
  
	
                17.16
  	
  
Insurance
  	
  
23
  

-iii-

	
  
TRIMBLE NAVIGATION LIMITED
  
	
  
DEFERRED COMPENSATION PLAN
  
	
  
Effective December 30, 2004
  

Purpose

          The purpose of this Plan is to provide specified benefits to Directors and a select group of management or highly compensated Employees who contribute materially to the continued growth, development and future business success of Trimble Navigation Limited, a California corporation, and its subsidiaries, if any, that sponsor this Plan.  This Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA.  

          Except as otherwise provided below, effective December 30, 2004 (the “Restatement Date”) the provisions of this Plan shall amend and restate the plan provisions of the Trimble Navigation Limited Nonqualified Deferred Compensation Plan effective February 10, 1994 (“Nonqualified Deferred Compensation Plan”) with respect to all account balances credited to the Nonqualified Deferred Compensation Plan; provided, however, the provisions of this Plan are not intended to modify or affect the trust provisions that relate to such account balances.

          The Plan is intended to comply with all applicable law, including Code Section 409A and related Treasury guidance and Regulations, and shall be operated and interpreted in accordance with this intention. Consistent with the foregoing, and in order to transition this nonqualified deferred compensation arrangement to the requirements of Code Section 409A and related Treasury guidance and Regulations, the Committee has made available to Participants certain limited transition relief described more fully in Appendix A of this Plan, in accordance with Notice 2005-1 promulgated pursuant to Code Section 409A.  

	
  
ARTICLE 1
  
	
  
Definitions
  

          For the purposes of this Plan, unless otherwise clearly apparent from the context, the following phrases or terms shall have the following indicated meanings:

	
  
1.1
  	
  
“Account   Balance” shall mean, with respect to a Participant, an entry on the records   of the Employer equal to the sum of (i) the Deferral Account balance and   (ii) the Company Contribution Account balance. The Account Balance shall be a   bookkeeping entry only and shall be utilized solely as a device for the   measurement and determination of the amounts to be paid to a Participant, or   his or her designated Beneficiary, pursuant to this Plan.
  
	
   
  	
  
 
  
	
  
1.2
  	
  
“Annual   Account” shall mean, with respect to a Participant, an entry on the records   of the Employer equal to the following amount: (i) the sum of the   Participant’s Annual Deferral Amount and Company Contribution Amount for any   one Plan Year, plus (ii) amounts credited or debited to such amounts pursuant   to this Plan, less (iii) all distributions made to the Participant or his or   her Beneficiary pursuant to this Plan that relate to the Annual Account for   such Plan Year.  The Annual Account   shall be a bookkeeping entry only and shall be utilized solely as a device   for the measurement and determination of the amounts to be paid to a   Participant, or his or her designated Beneficiary, pursuant to this Plan.
  

-1-

	
  
1.3
  	
  
“Annual   Deferral Amount” shall mean that portion of a Participant’s Base Salary,   Bonus, Director Fees and LTIP Amounts that a Participant defers in accordance   with Article 3 for any one Plan Year, without regard to whether such   amounts are withheld and credited during such Plan Year.  In the event of a Participant’s   Retirement, Disability, death or Termination of Employment, such year’s Annual   Deferral Amount shall be the actual amount withheld prior to the complete   distribution of the Participant’s Account Balance following such event (as   described more fully in Section 3.6).
  
	
   
  	
  
 
  
	
  
1.4
  	
  
“Annual   Installment Method” shall be an annual installment payment over the number of   years selected by the Participant in accordance with this Plan,   calculated as follows: (i) for the first annual installment, the vested   portion of each Annual Account (as determined by the Committee in its sole   discretion)shall be calculated as of the close of business on or   around the   Participant’s Benefit Distribution Date, and (ii) for remaining annual   installments, the vested portion of each Annual Account shall be calculated   on every anniversary of such calculation date, as applicable.  Each annual installment shall be   calculated by multiplying this balance by a fraction, the numerator of which   is one and the denominator of which is the remaining number of annual   payments due the Participant.  By way   of example, if the Participant elects a ten (10) year Annual Installment   Method for the Retirement Benefit, the first payment
shall be 1/10 of such   vested Annual Account, calculated as described in this definition.  The following year, the payment shall be   1/9 of the vested Annual Account, calculated as described in this definition.
  
	
  
 
  	
  
 
  
	
  
1.5
  	
  
“Base   Salary” shall mean the cash compensation relating to services performed   during any calendar year, excluding distributions from nonqualified deferred   compensation plans, bonuses, commissions, overtime, fringe benefits, stock   options, relocation expenses, incentive payments, non-monetary awards,   director fees and other fees, and automobile and other allowances paid to a   Participant for employment services rendered (whether or not such allowances   are included in the Employee’s gross income).  Base Salary shall be calculated before reduction for   compensation voluntarily deferred or contributed by the Participant pursuant   to all qualified or nonqualified plans of any Employer and shall be calculated   to include amounts not otherwise included in the Participant’s gross income   under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans   established by any Employer; provided, however, that all such amounts
will be   included in compensation only to the extent that had there been no such plan,   the amount would have been payable in cash to the Employee.
  
	
   
  	
  
 
  
	
  
1.6
  	
  
“Beneficiary”   shall mean one or more persons, trusts, estates or other entities, designated   in accordance with Article 10, that are entitled to receive benefits   under this Plan upon the death of a Participant.
  
	
  
 
  	
  
 
  
	
  
1.7
  	
  
“Beneficiary   Designation Form” shall mean the form established from time to time by the   Committee that a Participant completes, signs and returns to the Committee to   designate one or more Beneficiaries.
  
	
  
 
  	
  
 
  
	
  
1.8
  	
  
“Benefit   Distribution Date” shall mean the date that triggers distribution of a   Participant’s vested benefits.  A   Participant’s Benefit Distribution Date shall be determined upon the   occurrence of any one of the following:
  

	
   
  	
  
(a)
  	
  
If the   Participant Retires, his or her Benefit Distribution Date shall be the last   day of the six-month period immediately following the date on which the   Participant Retires; provided, however, in the event the Participant   changes his or her Retirement Benefit election for one or more Annual   Accounts in accordance with Section 6.2(a), his or her Benefit Distribution   Date for such Annual Account(s) shall be postponed in accordance with such   Section 6.2(a); or
  

-2-

	
  
 
  	
  
(b)
  	
  
If the   Participant experiences a Termination of Employment, his or her Benefit   Distribution Date shall be the last day of the six-month period immediately   following the date on which the Participant experiences a Termination of   Employment; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
The date on   which the Committee is provided with proof that is satisfactory to the   Committee of the Participant’s death, if the Participant dies prior to the   complete distribution of his or her vested Account Balance; or
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
The date on   which the Participant becomes Disabled; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(e)
  	
  
The date on   which the Company experiences a Change in Control, as determined by the   Committee in its sole discretion, if (i) the Participant has elected to   receive a Change in Control Benefit, as set forth in Section 5.1 below, and   (ii) if a Change in Control occurs prior to the Participant’s Termination of   Employment, Retirement, death or Disability.
  

	
  
1.9
  	
  
“Board”   shall mean the board of directors of the Company.
  
	
  
 
  	
  
 
  
	
  1.10
  	
  
“Bonus”   shall mean any compensation, in addition to Base Salary and LTIP Amounts,   earned by a Participant for services rendered during a Plan Year, under any   Employer’s bonus and cash incentive plans whether or not payable in that Plan   Year.
  
	
  
 
  	
  
 
  
	
  
1.11
  	
  
“Change in   Control” shall be defined in accordance with Treasury guidance and   Regulations related to Code Section 409A, including but not limited to Notice   2005-1 and such other Treasury guidance or Regulations issued after the   effective date of this Plan.
  
	
  
 
  	
  
 
  
	
  
1.12
  	
  
“Change in   Control Benefit” shall have the meaning set forth in Article 5.
  
	
  
 
  	
  
 
  
	
  
1.13
  	
  
“Claimant”   shall have the meaning set forth in Section 15.1.
  
	
  
 
  	
  
 
  
	
  
1.14
  	
  
“Code” shall   mean the Internal Revenue Code of 1986, as it may be amended from time to   time.
  
	
   
  	
  
 
  
	
  
1.15
  	
  
“Committee”   shall mean the committee described in Article 13.
  
	
  
 
  	
  
 
  
	
  
1.16
  	
  
“Company”   shall mean Trimble Navigation Limited, a California corporation, and any   successor to all or substantially all of the Company’s assets or business.
  
	
  
 
  	
  
 
  
	
  
1.17
  	
  
“Company   Contribution Account” shall mean (i) the sum of the Participant’s Company   Contribution Amounts, plus (ii) amounts credited or debited to the   Participant’s Company Contribution Account in accordance with this Plan, less   (iii) all distributions made to the Participant or his or her Beneficiary   pursuant to this Plan that relate to the Participant’s Company Contribution   Account.
  
	
  
 
  	
  
 
  
	
  
1.18
  	
  
“Company   Contribution Amount” shall mean, for any one Plan Year, the amount determined   in accordance with Section 3.5.
  
	
   
  	
  
 
  
	
  
1.19
  	
  
“Death   Benefit” shall mean the benefit set forth in Article 9.
  
	
  
 
  	
  
 
  
	
  
1.20
  	
  
“Deferral   Account” shall mean (i) the sum of all of a Participant’s Annual Deferral   Amounts, plus (ii) amounts credited or debited to the Participant’s Deferral   Account in accordance with this Plan, less (iii) all distributions made to   the Participant or his or her Beneficiary pursuant to this Plan that relate   to his or her Deferral Account.
  

-3-

	
  
1.21
  	
  
“Director”   shall mean any member of the board of directors of the Company.
  
	
  
 
  	
  
 
  
	
  
1.22
  	
  
“Director   Fees” shall mean the annual fees earned by a Director from the Company,   including retainer fees and meetings fees, as compensation for serving on the   board of directors.
  
	
   
  	
  
 
  
	
  
1.23
  	
  
“Disability”   or “Disabled” shall mean that a Participant is (i) unable to engage in any   substantial gainful activity by reason of any medically determinable physical   or mental impairment which can be expected to result in death or can be   expected to last for a continuous period of not less than 12 months, or (ii)   by reason of any medically determinable physical or mental impairment which   can be expected to result in death or can be expected to last for a   continuous period of not less than 12 months, receiving income replacement   benefits for a period of not less than 3 months under an accident or health plan   covering employees of the Participant’s Employer.
  
	
  
 
  	
  
 
  
	
  
1.24
  	
  
“Disability   Benefit” shall mean the benefit set forth in Article 8.
  
	
  
 
  	
  
 
  
	
  
1.25
  	
  
“Election   Form” shall mean the form established from time to time by the Committee that   a Participant completes, signs and returns to the Committee to make an   election under the Plan.
  
	
  
 
  	
  
 
  
	
  1.26
  	
  
“Employee”   shall mean a person who is an employee of any Employer.
  
	
  
 
  	
  
 
  
	
  
1.27
  	
  
“Employer(s)”   shall mean the Company and/or any of its subsidiaries (now in existence or   hereafter formed or acquired) that have been selected by the Board to   participate in the Plan and have adopted the Plan as a sponsor.
  
	
  
 
  	
  
 
  
	
  
1.28
  	
  
“ERISA”   shall mean the Employee Retirement Income Security Act of 1974, as it may be   amended from time to time.
  
	
  
 
  	
  
 
  
	
  
1.29
  	
  
“LTIP Amounts”   shall mean any portion of the compensation attributable to a Plan Year that   is earned by a Participant as an Employee under any Employer’s long-term   incentive plan or any other long-term incentive arrangement designated by the   Committee.
  
	
  
 
  	
  
 
  
	
  1.30
  	
  
“Participant”   shall mean any Employee or Director (i) who is selected to participate   in the Plan, (ii) who submits an executed Plan Agreement, Election Form   and Beneficiary Designation Form, which are accepted by the Committee, and   (iii) whose Plan Agreement has not terminated.
  
	
  
 
  	
  
 
  
	
  
1.31
  	
  
“Plan” shall   mean the Trimble Navigation Limited Deferred Compensation Plan effective   December 30, 2004, which shall be evidenced by this instrument and by each   Plan Agreement, as they may be amended from time to time.
  
	
  
 
  	
  
 
  
	
  
1.32
  	
  
“Plan   Agreement” shall mean a written agreement, as may be amended from time to   time, which is entered into by and between an Employer and a   Participant.  Each Plan Agreement   executed by a Participant and the Participant’s Employer shall provide for   the entire benefit to which such Participant is entitled under the Plan;   should there be more than one Plan Agreement, the Plan Agreement bearing the   latest date of acceptance by the Employer shall supersede all previous Plan   Agreements in their entirety and shall govern such entitlement.  The terms of any Plan Agreement may be   different for any Participant, and any Plan Agreement may provide additional   benefits not set forth in the Plan or limit the benefits otherwise provided   under the Plan; provided, however, that any such additional benefits or   benefit limitations must be agreed to by both the Employer and the   Participant.
  

-4-

	
  
1.33
  	
  
“Plan Year”   shallmean   a period beginning on January 1 of each calendar year and continuing through   December 31 of such calendar year. The first Plan Year shall commence on   January 1, 2005.
  
	
  
 
  	
  
 
  
	
  
1.34
  	
  
“Retirement”,   “Retire(s)” or “Retired” shall mean, with respect to an Employee, separation   from service with all Employers for any reason other than an authorized leave   of absence, death or Disability on or after the earlier of the attainment of   (a) age sixty-five (65) with five (5) Years of Service, or (b) age fifty-five   (55) with ten (10) Years of Service; and shall mean with respect to a   Director, separation from service as a Director with the Company on or after   the attainment of age seventy (70).    Notwithstanding the foregoing, if a Participant is both an Employee   and a Director, Retirement shall not occur until Retirement as both an   Employee and a Director.
  
	
  
 
  	
  
 
  
	
  
1.35
  	
  
“Retirement   Benefit” shall mean the benefit set forth in Article 6.
  
	
   
  	
  
 
  
	
  
1.36
  	
  
“Scheduled   Distribution” shall mean the distribution set forth in Section 4.1.
  
	
  
 
  	
  
 
  
	
  
1.37
  	
  
“Terminate   the Plan”, “Termination of the Plan” shall mean a determination by an Employer’s   board of directors that (i) all of its Participants shall no longer be   eligible to participate in the Plan, (ii) all deferral elections for such   Participants shall terminate, and (iii) such Participants shall no longer be   eligible to receive company contributions under this Plan.
  
	
  
 
  	
  
 
  
	
  
1.38
  	
  
“Termination   Benefit” shall mean the benefit set forth in Article 7.
  
	
  
 
  	
  
 
  
	
  
1.39
  	
  
“Termination   of Employment” shall mean the separation from service with all Employers,   voluntarily or involuntarily, for any reason other than Retirement,   Disability, death or an authorized leave of absence.  If a Participant is both an Employee and a   Director, a Termination of Employment shall occur only upon the termination   of the last position held.
  
	
   
  	
  
 
  
	
  
1.40
  	
  
“Trust”   shall mean one or more trusts established by the Company in accordance with   Article 16.
  
	
  
 
  	
  
 
  
	
  
1.41
  	
  
“Unforeseeable   Financial Emergency” shall mean an unanticipated emergency that is caused by   an event beyond the control of the Participant that would result in severe   financial hardship to the Participant resulting from (i) a sudden and   unexpected illness or accident of the Participant, the Participant’s spouse,   or a dependent of the Participant, (ii) a loss of the Participant’s   property due to casualty, or (iii) such other similar extraordinary and   unforeseeable circumstances arising as a result of events beyond the control   of the Participant, all as determined in the sole discretion of the   Committee.
  
	
  
 
  	
  
 
  
	
  
1.42
  	
  
“Years of   Service” shall mean the total number of full years in which a Participant has   been employed by one or more Employers.    For purposes of this definition, a year of employment shall be a 365   day period (or 366 day period in the case of a leap year) that, for the first   year of employment, commences on the Employee’s date of hiring and that, for   any subsequent year, commences on an anniversary of that hiring date.  The Committee shall make a determination   as to whether any partial year of employment shall be counted as a Year of   Service.
  

-5-

ARTICLE 2
 Selection, Enrollment, Eligibility

	
  
2.1
  	
  
Selection by Committee.  Participation in the Plan shall be limited   to Directors and, as determined by the Committee in its sole discretion, a   select group of management or highly compensated Employees.  From that group, the Committee shall   select, in its sole discretion, those individuals who may actually   participate in this Plan.
  
	
  
 
  	
  
 
  
	
  
2.2
  	
  
Enrollment and Eligibility Requirements;   Commencement of Participation.
  

	
  
 
  	
  
(a)
  	
  
As a   condition to participation, each Director or selected Employee who first   becomes eligible to participate in this Plan effective as of the first day of   a Plan Year shall complete, execute and return to the Committee a Plan   Agreement, an Election Form and a Beneficiary Designation Form, prior to the   first day of such Plan Year, or such other earlier deadline as may be   established by the Committee in its sole discretion.  In order to participate in subsequent Plan   Years, each Director or selected Employee shall complete, execute and return   to the Committee an Election Form prior to the first day of such Plan Year,   or such earlier deadline as may be established by the Committee in its sole   discretion.  In addition, the   Committee shall establish from time to time such other enrollment   requirements as it determines, in its sole discretion, are necessary.
  
	
   
  	
  
(b)
  	
  
A Director   or selected Employee who first becomes eligible to participate in this Plan   after the first day of a Plan Year must complete these requirements within   thirty (30) days after he or she first becomes eligible to participate in the   Plan, or within such other earlier deadline as may be established by the   Committee, in its sole discretion, in order to participate for that Plan   Year.  In such event, such person’s   participation in this Plan shall not commence earlier than the date   determined by the Committee pursuant to Section 2.2(c) and such person shall   not be permitted to defer under this Plan any portion of his or her Base   Salary, Bonus, Director Fees and/or LTIP Amounts that are paid with respect to   services performed prior to his or her participation commencement date.
  
	
  
 
  	
  
(c)
  	
  
Each   Director or selected Employee who is eligible to participate in the Plan   shall commence participation in the Plan on the date that the Committee   determines, in its sole discretion, that the Director or Employee has met all   enrollment requirements set forth in this Plan and required by the Committee,   including returning all required documents to the Committee within the   specified time period.    Notwithstanding the foregoing, the Committee shall process such   Participant’s deferral election as soon as administratively practicable after   such deferral election is submitted to and accepted by the Committee.
  
	
  
 
  	
  
(d)
  	
  
If a   Director or an Employee fails to meet all requirements contained in this   Section 2.2 within the period required, that Director or Employee shall not   be eligible to participate in the Plan during such Plan Year.
  

	
  
2.3
  	
  
Termination of a Participant’s Eligibility.  If the Committee determines that a   Participant no longer qualifies as a member of a select group of management   or highly compensated employees, as membership in such group is determined in   accordance with Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, or that   the inclusion of Directors in this Plan could jeopardize the status of this   Plan as a plan intended to be “unfunded” and “maintained by an employer   primarily for the purpose of providing deferred compensation for a select   group of management or highly compensated employees” within the meaning of   ERISA Sections 201(2), 301(a)(3) and 401(a)(1), the Committee shall have the   right, in its sole discretion, to (i) terminate any deferral election   the Participant has made for the remainder of the Plan Year in which the   Committee makes such determination, (ii) prevent the Participant from
making future deferral elections, and/or (iii) take further action that the   Committee deems appropriate.    Notwithstanding the foregoing, in the event of a Termination of the   Plan in accordance with Section 1.37, the termination of the affected   Participants’ eligibility for participation in the Plan shall not be governed   by this Section 2.3, but rather shall be governed by Section 1.37 and Section   12.1.  In the event that a Participant   is no longer eligible to defer compensation under this Plan, the   Participant’s Account Balance shall continue to be governed by the terms of   this Plan until such time as the Participant’s Account Balance is paid in   accordance with the terms of this Plan.
  

-6-

	
  ARTICLE 3
  
	
  
Deferral Commitments/Company Contribution Amounts/
  
	
  
Vesting/Crediting/Taxes
  

	
  
3.1
  	
  
Minimum Annual Deferral Amount.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
For each   Plan Year, a Participant may elect to defer, as his or her Annual Deferral   Amount, Base Salary, Bonus, Director Fees and/or LTIP Amounts in the   following minimum amounts for each deferral elected:
  

	
  
Deferral
  	
   
 	
  
Minimum   Amount
  
	
  

  	
   
 	
  

  
	
  Base Salary,   Bonus and/or LTIP Amounts
  	
  
 
  	
  
5% aggregate
  
	
  
Director   Fees
  	
  
 
  	
  
5%
  

	
  
3.2
  	
  
Maximum Deferral.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Annual Deferral Amount.  For each Plan Year, a Participant may   elect to defer, as his or her Annual Deferral Amount, Base Salary, Bonus,   Director Fees and/or LTIP Amounts up to the following maximum percentages for   each deferral elected:
  

	
  
Deferral
  	
   
 	
  
Maximum   Percentage
  
	
  

  	
  
 
  	
  

  
	
  
Base Salary
  	
  
 
  	
  
90%
  
	
  
Bonus
  	
  
 
  	
  
100%
  
	
  
Director   Fees
  	
  
 
  	
  
100%
  
	
  
LTIP Amounts
  	
  
 
  	
  
100%
  

	
  
 
  	
  
(b)
  	
  
Short Plan Year.  Notwithstanding the foregoing, if a   Participant first becomes a Participant after the first day of a Plan Year,   the maximum Annual Deferral Amount shall be limited to the amount of compensation   not yet earned by the Participant as of the date the Participant submits a   Plan Agreement and Election Form to the Committee for acceptance.
  

-7-

	
  
3.3
  	
  
Election to Defer; Effect of Election Form.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
First Plan Year.  In connection with a Participant’s   commencement of participation in the Plan, the Participant shall make an   irrevocable deferral election for the Plan Year in which the Participant   commences participation in the Plan, along with such other elections as the   Committee deems necessary or desirable under the Plan.  For these elections to be valid, the   Election Form must be completed and signed by the Participant, timely   delivered to the Committee (in accordance with Section 2.2 above) and   accepted by the Committee.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Subsequent Plan Years.  For each succeeding Plan Year, an   irrevocable deferral election for that Plan Year, and such other elections as   the Committee deems necessary or desirable under the Plan, shall be made by   timely delivering a new Election Form to the Committee, in accordance with   its rules and procedures, before the end of the Plan Year preceding the Plan   Year for which the election is made.    If no such Election Form is timely delivered for a Plan Year, the   Annual Deferral Amount shall be zero for that Plan Year.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
Performance-Based Compensation.   Notwithstanding the foregoing, the Committee may, in its sole discretion,   determine that an irrevocable deferral election pertaining to   performance-based compensation may be made by timely delivering a new   Election Form to the Committee, in accordance with its rules and procedures,   no later than six (6) months before the end of the performance service   period.  “Performance-based   compensation” shall be compensation based on services performed over a period   of at least 12 months, in accordance with Code Section 409A and related   guidance.
  
	
  
 
  	
  
 
  	
  
 
  
	
  3.4
  	
  
Withholding and Crediting of Annual   Deferral Amounts.  For each Plan Year, the Base Salary portion of the Annual   Deferral Amount shall be withheld from each regularly scheduled Base Salary   payroll.  The Bonus, Director Fees   and/or LTIP Amounts portion of the Annual Deferral Amount for each Plan Year   shall be withheld at the time the Bonus, Director Fees or LTIP Amounts are or   otherwise would be paid to the Participant, whether or not this occurs during   such Plan Year.  Annual Deferral   Amounts shall be credited to a Participant’s Deferral Account at the time   such amounts would otherwise have been paid to the Participant.
  
	
  
 
  	
  
 
  
	
  
3.5
  	
  
Company Contribution Amount.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
For each   Plan Year, an Employer may be required to credit amounts to a Participant’s   Company Contribution Account in accordance with employment or other   agreements entered into between the Participant and the Employer.  Such amounts shall be credited on the date   or dates prescribed by such agreements.
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
(b)
  	
  
For each   Plan Year, an Employer, in its sole discretion, may, but is not required to,   credit any amount it desires to any Participant’s Company Contribution   Account under this Plan, which amount shall be for that Participant the   Company Contribution Amount for that Plan Year.  The amount so credited to a Participant may be smaller or   larger than the amount credited to any other Participant, and the amount   credited to any Participant for a Plan Year may be zero, even though one or   more other Participants receive a Company Contribution Amount for that Plan   Year.  The Company Contribution Amount   described in this Section 3.5(b), if any, shall be credited on a date or   dates to be determined by the Committee, in its sole discretion.
  

-8-

	
  
3.6
  	
  
Crediting of Amounts after Benefit   Distribution.    Notwithstanding any provision in this Plan to the contrary, should the   complete distribution of a Participant’s vested Account Balance occur prior   to the date on which any portion of (i) the Annual Deferral Amount that a   Participant has elected to defer in accordance with Section 3.3 or (ii) the   Company Contribution Amount would otherwise be credited to the Participant’s   Account Balance, such amounts shall not be credited to the Participant’s   Account Balance, but shall be paid to the Participant in a manner determined   by the Committee, in its sole discretion.
  
	
   
  	
  
 
  	
  
 
  
	
  
3.7
  	
  
Vesting.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
A   Participant shall at all times be 100% vested in his or her Deferral Account.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
A   Participant shall be vested in his or her Company Contribution Account in   accordance with the vesting schedule(s) set forth in his or her Plan   Agreement, employment agreement or any other agreement entered into between   the Participant and his or her Employer.    If not addressed in such agreements, the Company shall determine the   vesting schedule for Company Contribution Amounts at the time such   contribution is made to the Participant’s Company Contribution Account.
  
	
  
 
  	
  
 
  	
  
 
  
	
  3.8
  	
  
Crediting/Debiting of Account Balances.  In accordance with, and subject to, the   rules and procedures that are established from time to time by the Committee,   in its sole discretion, amounts shall be credited or debited to a   Participant’s Account Balance in accordance with the following rules:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Measurement Funds.  The Participant may elect one or more of   the measurement funds selected by the Committee, in its sole discretion,   which are based on certain mutual funds (the “Measurement Funds”), for the   purpose of crediting or debiting additional amounts to his or her Account   Balance.  As necessary, the Committee   may, in its sole discretion, discontinue, substitute or add a Measurement   Fund.  Each such action will take   effect as of the first day of the first calendar quarter that begins at least   thirty (30) days after the day on which the Committee gives Participants   advance written notice of such change.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Election of Measurement Funds.  A Participant, in connection with his or   her initial deferral election in accordance with Section 3.3(a) above, shall   elect, on the Election Form, one or more Measurement Fund(s) (as described in   Section 3.8(a) above) to be used to determine the amounts to be credited or   debited to his or her Account Balance.    If a Participant does not elect any of the Measurement Funds as   described in the previous sentence, the Participant’s Account Balance shall   automatically be allocated into the lowest-risk Measurement Fund, as determined   by the Committee, in its sole discretion.    The Participant may (but is not required to) elect, by submitting an   Election Form to the Committee that is accepted by the Committee, to add or   delete one or more Measurement Fund(s) to be used to determine the amounts to   be credited or debited to his or her Account Balance, or to change the   portion of his or
her Account Balance allocated to each previously or newly   elected Measurement Fund.  If an   election is made in accordance with the previous sentence, it shall apply as   of the first business day deemed reasonably practicable by the Committee, in   its sole discretion, and shall continue thereafter for each subsequent day in   which the Participant participates in the Plan, unless changed in accordance   with the previous sentence.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
Proportionate Allocation.  In making any election described in   Section 3.8(b) above, the Participant shall specify on the Election Form, in   increments of one percent (1%), the percentage of his or her Account Balance   for each Measurement Fund, as applicable, to be allocated/reallocated.
  

-9-

	
  
 
  	
  
(d)
  	
  
Crediting or Debiting Method.  The performance of each Measurement Fund   (either positive or negative) will be determined on a daily basis based on   the manner in which such Participant’s Account Balance has been   hypothetically allocated among the Measurement Funds by the Participant.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(e)
  	
  
No Actual Investment.  Notwithstanding any other provision of   this Plan that may be interpreted to the contrary, the Measurement Funds are   to be used for measurement purposes only, and a Participant’s election of any   such Measurement Fund, the allocation of his or her Account Balance thereto,   the calculation of additional amounts and the crediting or debiting of such   amounts to a Participant’s Account Balance shall not be   considered or construed in any manner as an actual investment of his or her   Account Balance in any such Measurement Fund.  In the event that the Company or the Trustee (as that term is   defined in the Trust), in its own discretion, decides to invest funds in any   or all of the investments on which the Measurement Funds are based, no   Participant shall have any rights in or to such investments themselves.  Without limiting the foregoing, a   Participant’s Account Balance
shall at all times be a bookkeeping entry only   and shall not represent any investment made on his or her behalf by the   Company or the Trust; the Participant shall at all times remain an unsecured   creditor of the Company.
  
	
   
  	
  
 
  	
  
 
  
	
  
3.9
  	
  
FICA and Other Taxes.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Annual Deferral Amounts.  For each Plan Year in which an Annual   Deferral Amount is being withheld from a Participant, the Participant’s   Employer(s) shall withhold from that portion of the Participant’s Base   Salary, Bonus and/or LTIP Amounts that is not being deferred, in a manner   determined by the Employer(s), the Participant’s share of FICA and other   employment taxes on such Annual Deferral Amount.  If necessary, the Committee may reduce the Annual Deferral   Amount in order to comply with this Section 3.9.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
Company Contribution Account.  When a Participant becomes vested in a   portion of his or her Company Contribution Account, the Participant’s   Employer(s) shall withhold from that portion of the Participant’s Base   Salary, Bonus and/or LTIP Amounts that is not deferred, in a manner   determined by the Employer(s), the Participant’s share of FICA and other   employment taxes on such Company Contribution Amount.  If necessary, the Committee may reduce the   vested portion of the Participant’s Company Contribution Account in order to   comply with this Section 3.9.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
Distributions.  The Participant’s Employer(s), or the   trustee of the Trust, shall withhold from any payments made to a Participant   under this Plan all federal, state and local income, employment and other   taxes required to be withheld by the Employer(s), or the trustee of the   Trust, in connection with such payments, in amounts and in a manner to be   determined in the sole discretion of the Employer(s) and the trustee of the   Trust.
  

-10-

	
  
ARTICLE 4
  
	
  
Scheduled Distribution; Unforeseeable Financial Emergencies
  

	
  4.1
  	
  
Scheduled Distribution.  In connection with each election to defer   an Annual Deferral Amount, a Participant may irrevocably elect to receive a   Scheduled Distribution, in the form of a lump sum payment, from the Plan with   respect to all or a portion of the Annual Deferral Amount.  The Scheduled Distribution shall be a lump   sum payment in an amount that is equal to the portion of the Annual Deferral   Amount the Participant elected to have distributed as a Scheduled   Distribution, plus amounts credited or debited in the manner provided in   Section 3.8 above on that amount, calculated as of the close of business   on or around the date on which the Scheduled Distribution becomes payable, as   determined by the Committee in its sole discretion.  Subject to the other terms and conditions of this Plan, each   Scheduled Distribution elected shall be paid out during a sixty (60) day   period commencing immediately after the
first day of any Plan Year designated   by the Participant.  The Plan Year   designated by the Participant must be at least five (5) Plan Years after the   end of the Plan Year to which the Participant’s deferral election described   in Section 3.3 relates.  By way of   example, if a Scheduled Distribution is elected for Annual Deferral Amounts   that are earned in the Plan Year commencing January 1, 2005, the   Scheduled Distribution would become payable during a sixty (60) day period   commencing January 1, 2011.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
4.2
  	
  
Postponing Scheduled Distributions.   A Participant may make a one time election to postpone a Scheduled   Distribution described in Section 4.1 above, and have such amount paid out   during a sixty (60) day period commencing immediately after an allowable   alternative distribution date designated by the Participant in accordance   with this Section 4.2.  In order to   make this one time election, the Participant must submit a new Scheduled   Distribution Election Form to the Committee in accordance with the following criteria:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
Such   Scheduled Distribution Election Form must be submitted to and accepted by the   Committee in its sole discretion at least twelve (12) months prior to the   Participant’s previously designated Scheduled Distribution Date;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The new   Scheduled Distribution Date selected by the Participant must be the first day   of a Plan Year, and must be at least five years after the previously   designated Scheduled Distribution Date; and
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
The election   of the new Scheduled Distribution Date shall have no effect until at least   twelve (12) months after the date on which the election is made.
  
	
   
  	
  
 
  	
  
 
  
	
  
4.3
  	
  
Other Benefits Take Precedence Over   Scheduled Distributions.  Should a Benefit Distribution Date occur   that triggers a benefit under Articles 5, 6, 7, 8, or 9, any Annual Deferral   Amount that is subject to a Scheduled Distribution election under Section 4.1   shall not be paid in accordance with Section 4.1, but shall be paid in   accordance with the other applicable Article. Notwithstanding the foregoing,   the Committee shall interpret this Section 4.3 in a manner that is consistent   with Code Section 409A and other applicable tax law, including but not   limited to guidance issued after the effective date of this Plan.
  

-11-

	
  
4.4
  	
  
Withdrawal Payout/Suspensions for   Unforeseeable Financial Emergencies.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
If the   Participant experiences an Unforeseeable Financial Emergency, the Participant   may petition the Committee to suspend deferrals of Base Salary, Bonus,   Director Fees and LTIP Amounts to the extent deemed necessary by the   Committee to satisfy the Unforeseeable Financial Emergency. If suspension of   deferrals is not sufficient to satisfy the Participant’s Unforeseeable   Financial Emergency, or if suspension of deferrals is not required under Code   Section 409A and other applicable tax law, the Participant may further   petition the Committee to receive a partial or full payout from the   Plan.  The Participant shall only   receive a payout from the Plan to the extent such payout is deemed necessary   by the Committee to satisfy the Participant’s Unforeseeable Financial   Emergency, plus amounts reasonably necessary to pay taxes reasonably   anticipated as a result of the distribution.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The payout   shall not exceed the lesser of (i) the Participant’s vested Account Balance,   calculated as of the close of business on or around the date on which the   amount becomes payable, as determined by the Committee in its sole   discretion, or (ii) the amount necessary to satisfy the Unforeseeable   Financial Emergency, plus amounts reasonably necessary to pay taxes   reasonably anticipated as a result of the distribution.  Notwithstanding the foregoing, a   Participant may not receive a payout from the Plan to the extent that the   Unforeseeable Financial Emergency is or may be relieved (A) through reimbursement   or compensation by insurance or otherwise, (B) by liquidation of the   Participant’s assets, to the extent the liquidation of such assets would not   itself cause severe financial hardship or (C) by suspension of deferrals   under this Plan, if the Committee, in its sole discretion, determines that   suspension is required by Code
Section 409A and other applicable tax law.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
If the   Committee, in its sole discretion, approves a Participant’s petition for   suspension, the Participant’s deferrals under this Plan shall be suspended as   of the date of such approval.  If the   Committee, in its sole discretion, approves a Participant’s petition for   suspension and payout, the Participant’s deferrals under this Plan shall be   suspended as of the date of such approval and the Participant shall receive a   payout from the Plan within sixty (60) days of the date of such   approval.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
Notwithstanding   the foregoing, the Committee shall interpret all provisions relating to   suspension and/or payout under this Section 4.4 in a manner that is   consistent with Code Section 409A and other applicable tax law, including but   not limited to guidance issued after the effective date of this Plan.
  

	
  
ARTICLE 5
  
	
  
Change in Control Benefit
  

	
  
5.1
  	
  
Change in Control Benefit.  A Participant, in connection with his or   her commencement of participation in the Plan, shall irrevocably elect on an   Election Form whether to (i) receive a Change in Control Benefit upon the   occurrence of a Change in Control, which shall be equal to the Participant’s   vested Account Balance, calculated as of the close of business on or around   the Participant’s Benefit Distribution Date, as determined by the Committee   in its sole discretion, or (ii) to have his or her Account Balance remain in   the Plan upon the occurrence of a Change in Control and to have his or her   Account Balance remain subject to the terms and conditions of the Plan.  If a Participant does not make any   election with respect to the payment of the Change in Control Benefit, then   such Participant’s Account Balance shall remain in the Plan upon a Change in   Control and shall be subject to the terms and
conditions of the Plan.
  

-12-

	
  
5.2
  	
  
Payment of Change in Control Benefit.  The Change in Control Benefit, if any,   shall be paid to the Participant in a lump sum no later than sixty   (60) days after the Participant’s Benefit Distribution Date.   Notwithstanding the foregoing, the Committee shall interpret all provisions   in this Plan relating to a Change in Control Benefit in a manner that is consistent   with Code Section 409A and other applicable tax law, including but not   limited to guidance issued after the effective date of this Plan.
  

	
  
ARTICLE 6
  
	
  
Retirement Benefit
  

	
  
6.1
  	
  
Retirement Benefit.  A Participant who Retires shall receive,   as a Retirement Benefit, his or her vested Account Balance in a lump sum or   installment payments, calculated as of the close of business on or around the   Participant’s Benefit Distribution Date, as determined by the Committee in   its sole discretion.
  
	
   
  	
  
 
  	
  
 
  
	
  
6.2
  	
  
Payment of Retirement Benefit.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
In   connection with a Participant’s election to defer an Annual Deferral Amount,   the Participant shall elect the form in which his or her Annual Account for   such Plan Year will be paid.  The   Participant may elect to receive each Annual Account in a lump sum or   pursuant to an Annual Installment Method of five (5), ten (10), or fifteen   (15) years.  If a Participant does not   make any election with respect to the payout of an Annual Account, then the   Participant shall be deemed to have elected to receive such Annual Account as   a lump sum.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The   Participant may change this election one time by submitting an Election Form   to the Committee in accordance with the following criteria:
  

	
  
 
  	
  
 
  	
  
(i)
  	
  
Such   Election Form must be submitted to and accepted by the Committee in its sole   discretion at least twelve (12) months prior to the Participant’s originally   scheduled Benefit Distribution Date for such Annual Account described in   Section 1.8(a); and
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ii)
  	
  
The first   Retirement Benefit payment related to such Annual Account is delayed at least   five (5) years from the Participant’s originally scheduled Benefit   Distribution Date for such Annual Account described in Section 1.8(a); and
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
(iii)
  	
  
The election   to modify the Retirement Benefit for such Annual Account shall have no effect   until at least twelve (12) months after the date on which the election is   made; and
  

-13-

	
  
 
  	
  
 
  	
  
(iv)
  	
  
Notwithstanding   the foregoing, the Committee shall interpret all provisions relating to   changing the Retirement Benefit election under this Section 6.2 in a manner   that is consistent with Code Section 409A and other applicable tax law,   including but not limited to guidance issued after the effective date of this   Plan.  Accordingly, if a Participant’s   subsequent Retirement Benefit distribution election for any Annual Account   would result in the shortening of the length of the Retirement Benefit   payment period for such Annual Account (e.g., a Participant changes an   existing distribution election from annual installments to a lump sum   payment; from 15 annual installments to 5 annual installments, etc.), and the   Committee determines such election to be inconsistent with Code Section 409A   and other applicable tax law, the election shall not be effective.
  

	
  
 
  	
  
 
  	
  
The Election   Form most recently accepted by the Committee shall govern the payout of the   Retirement Benefit.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
The lump sum   payment shall be made, or installment payments shall commence, no later than   sixty (60) days after the Participant’s Benefit Distribution Date.  Remaining installments, if any, shall be   paid no later than sixty (60) days after each anniversary of the   Participant’s Benefit Distribution Date.
  

	
  
ARTICLE 7
  
	
  
Termination Benefit
  

	
  
7.1
  	
  
Termination Benefit.  A Participant who experiences a   Termination of Employment shall receive, as a Termination Benefit, his or her   vested Account Balance, calculated as of the close of business on or around   the Participant’s Benefit Distribution Date, as determined by the Committee   in its sole discretion.
  
	
  
 
  	
  
 
  
	
  
7.2
  	
  
Payment of Termination Benefit.  The Termination Benefit shall be paid to   the Participant in a lump sum payment no later than sixty (60) days after the   Participant’s Benefit Distribution Date.
  

	
  
ARTICLE 8
  
	
  
Disability Benefit
  

	
  
8.1
  	
  
Disability Benefit.   Upon a Participant’s Disability, the Participant shall receive a Disability   Benefit, which shall be equal to the Participant’s vested Account Balance,   calculated as of the close of business on or around the Participant’s Benefit   Distribution Date, as selected by the Committee in its sole discretion.
  
	
   
  	
  
 
  
	
  
8.2
  	
  
Payment of Disability Benefit.  The Disability Benefit shall be   paid to the Participant in a lump sum payment no later than sixty (60) days   after the Participant’s Benefit Distribution Date.
  

	
  
ARTICLE 9
  
	
  
Death Benefit
  

	
  
9.1
  	
  
Death Benefit.  The Participant’s Beneficiary(ies) shall   receive a Death Benefit upon the Participant’s death which will be equal to   the Participant’s vested Account Balance, calculated as of the close of   business on or around the Participant’s Benefit Distribution Date, as   selected by the Committee in its sole discretion.
  

-14-

	
  9.2
  	
  
Payment of Death Benefit.  The Death Benefit shall be paid to the   Participant’s Beneficiary(ies) in a lump sum payment no later than sixty (60)   days after the Participant’s Benefit Distribution Date.
  

	
  
ARTICLE 10
  
	
  
Beneficiary Designation
  

	
  
10.1
  	
  
Beneficiary.  Each Participant shall have the right, at   any time, to designate his or her Beneficiary(ies) (both primary as well as   contingent) to receive any benefits payable under the Plan to a beneficiary   upon the death of a Participant.  The   Beneficiary designated under this Plan may be the same as or different from   the Beneficiary designation under any other plan of an Employer in which the   Participant participates.
  
	
  
 
  	
  
 
  
	
  
10.2
  	
  
Beneficiary Designation; Change; Spousal   Consent.    A Participant shall designate his or her Beneficiary by completing and   signing the Beneficiary Designation Form, and returning it to the Committee   or its designated agent.  A   Participant shall have the right to change a Beneficiary by completing,   signing and otherwise complying with the terms of the Beneficiary Designation   Form and the Committee’s rules and procedures, as in effect from time to   time.  If the Participant names   someone other than his or her spouse as a Beneficiary, the Committee may, in   its sole discretion, determine that spousal consent is required to be   provided in a form designated by the Committee, executed by such   Participant’s spouse and returned to the Committee.  Upon the acceptance by the Committee of a new Beneficiary   Designation Form, all Beneficiary designations previously filed shall be   canceled.  The Committee
shall be   entitled to rely on the last Beneficiary Designation Form filed by the   Participant with the Committee prior to his or her death.
  
	
   
  	
  
 
  
	
  
10.3
  	
  
Acknowledgment.  No designation or change in designation of   a Beneficiary shall be effective until received by the Committee or its   designated agent.
  
	
  
 
  	
  
 
  
	
  
10.4
  	
  
No Beneficiary Designation.  If a Participant fails to designate a   Beneficiary as provided in Sections 10.1, 10.2 and 10.3 above or, if all   designated Beneficiaries predecease the Participant or die prior to complete   distribution of the Participant’s benefits, then the Participant’s designated   Beneficiary shall be deemed to be his or her surviving spouse.  If the Participant has no surviving   spouse, the benefits remaining under the Plan to be paid to a Beneficiary   shall be payable to the executor or personal representative of the   Participant’s estate.
  
	
  
 
  	
  
 
  
	
  
10.5
  	
  
Doubt as to Beneficiary.  If the Committee has any doubt as to the   proper Beneficiary to receive payments pursuant to this Plan, the Committee   shall have the right, exercisable in its discretion, to cause the   Participant’s Employer to withhold such payments until this matter is   resolved to the Committee’s satisfaction.
  
	
  
 
  	
  
 
  
	
  10.6
  	
  
Discharge of Obligations.  The payment of benefits under the Plan to   a Beneficiary shall fully and completely discharge all Employers and the   Committee from all further obligations under this Plan with respect to the   Participant, and that Participant’s Plan Agreement shall terminate upon such   full payment of benefits.
  

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ARTICLE 11
  
	
  
Leave of Absence
  

	
  
11.1
  	
  
Paid Leave of Absence.  If a Participant is authorized by the   Participant’s Employer to take a paid leave of absence from the employment of   the Employer, (i) the Participant shall continue to be considered eligible   for the benefits provided in Articles 4, 5, 6, 7, 8, or 9 in accordance with   the provisions of those Articles, and (ii) the Annual Deferral Amount shall   continue to be withheld during such paid leave of absence in accordance with   Section 3.3.
  
	
  
 
  	
  
 
  
	
  11.2
  	
  
Unpaid Leave of Absence.  If a Participant is authorized by the   Participant’s Employer to take an unpaid leave of absence from the   employ-ment of the Employer for any reason, such Participant shall continue   to be eligible for the benefits provided in Articles 4, 5, 6, 7, 8, or 9 in   accordance with the provisions of those Articles. However, the Participant   shall be excused from fulfilling his or her Annual Deferral Amount commitment   that would otherwise have been withheld during the remainder of the Plan Year   in which the unpaid leave of absence is taken.  During the unpaid leave of absence, the Participant shall not   be allowed to make any additional deferral elections.  However, if the Participant returns to employment,   the Participant may elect to defer an Annual Deferral Amount for the Plan   Year following his or her return to employment and for every Plan Year   thereafter while a Participant in the Plan,
provided such deferral elections   are otherwise allowed and an Election Form is delivered to and accepted by   the Committee for each such election in accordance with Section 3.3   above.
  

	
  
ARTICLE 12
  
	
  
Termination of Plan, Amendment or Modification
  

	
  
12.1
  	
  
Termination of Plan.  Although each Employer anticipates that it   will continue the Plan for an indefinite period of time, there is no guarantee   that any Employer will continue the Plan or will not terminate the Plan at   any time in the future.  Accordingly,   each Employer reserves the right to Terminate the Plan (as defined in Section   1.37).  In the event of a Termination   of the Plan, the Measurement Funds available to Participants following the   Termination of the Plan shall be comparable in number and type to those   Measurement Funds available to Participants in the Plan Year preceding the   Plan Year in which the Termination of the Plan is effective.  Following a Termination of the   Plan, Participant Account Balances shall remain in the Plan until the   Participant becomes eligible for the benefits provided in Articles 4, 5, 6,   7, 8 or 9 in accordance with the provisions of those Articles.  The
termination of the Plan   shall not adversely affect any Participant or Beneficiary who has become   entitled to the payment of any benefits under the Plan as of the date of   termination.
  
	
   
  	
  
 
  
	
  
12.2
  	
  
Amendment.  Any Employer may, at any time, amend or   modify the Plan in whole or in part with respect to that Employer.  Notwithstanding the foregoing, (i) no   amendment or modification shall be effective to decrease the value of a   Participant’s vested Account Balance in existence at the time the amendment   or modification is made, and (ii) no amendment or modification of this   Section 12.2 or Section 13.2 of the Plan shall be effective.
  
	
  
 
  	
  
 
  
	
  
12.3
  	
  
Plan Agreement.  Despite the provisions of   Sections 12.1 and 12.2 above, if a Participant’s Plan Agreement contains   benefits or limitations that are not in this Plan document, the Employer may   only amend or terminate such provisions with the written consent of the   Participant.
  

-16-

	
  
12.4
  	
  
Effect of Payment.  The full payment of the Participant’s   vested Account Balance under Articles 4, 5, 6, 7, 8, or 9 of the Plan   shall completely discharge all obligations to a Participant and his or her   designated Beneficiaries under this Plan, and the Participant’s Plan   Agreement shall terminate.
  

	
  
ARTICLE 13
  
	
  
Administration
  

	
  
13.1
  	
  
Committee Duties.  Except as otherwise provided in this   Article 13, this Plan shall be administered by a Committee, which shall   consist of the Board, or such committee as the Board shall appoint.  The members of the Committee need not be   members of the Board and may be Participants under this Plan.  The Committee shall also have the   discretion and authority to (i) make, amend, interpret, and enforce all   appropriate rules and regulations for the administration of this Plan and   (ii) decide or resolve any and all questions including interpretations   of this Plan, as may arise in connection with the Plan.  Any individual serving on the Committee   who is a Participant shall not vote or act on any matter relating solely to   himself or herself.  When making a determination   or calculation, the Committee shall be entitled to rely on information   furnished by a Participant or the Company.
  
	
  
 
  	
  
 
  
	
  
13.2
  	
  
Administration Upon Change In Control.   For purposes of this Plan, the Committee shall be the “Administrator” at all   times prior to the occurrence of a Change in Control.  Within one hundred and twenty (120) days   following a Change in Control, an independent third party “Administrator” may   be selected by the individual who, immediately prior to the Change in   Control, was the Company’s Chief Executive Officer or, if not so identified,   the Company’s highest ranking officer (the “Ex-CEO”).  The Committee, as constituted prior to the   Change in Control, shall continue to be the Administrator until the earlier   of (i) the date on which such independent third party is selected and   approved, or (ii) the expiration of the one hundred and twenty (120) day   period following the Change in Control.    If an independent third party is not selected within one hundred and   twenty (120) days of
such Change in Control, the Committee, as described in   Section 13.1 above, shall be the Administrator.  The Administrator shall continue to have the discretionary   power to determine all questions arising in connection with the   administration of the Plan and the interpretation of the Plan and Trust   including, but not limited to benefit entitlement determinations; provided,   however, upon and after the occurrence of a Change in Control, only the   Trustee shall have the power to direct the investment of Plan or Trust assets   or select any investment manager or custodial firm for the Plan or   Trust.  Upon and after the occurrence   of a Change in Control, the Company must: (1) pay all reasonable   administrative expenses and fees of the Administrator; (2) indemnify the   Administrator against any costs, expenses and liabilities including, without   limitation, attorney’s fees and expenses arising in connection with the   performance of the Administrator hereunder, except with
respect to matters   resulting from the gross negligence or willful misconduct of the   Administrator or its employees or agents; and (3) supply full and timely   information to the Administrator on all matters relating to the Plan, the   Trust, the Participants and their Beneficiaries, the Account Balances of the   Participants, the date and circumstances of the Retirement, Disability, death   or Termination of Employment of the Participants, and such other pertinent   information as the Administrator may reasonably require.  Upon and after a Change in Control, the   Administrator may be terminated (and a replacement appointed) by the Trustee   only with the approval of the Ex-CEO.    Upon and after a Change in Control, the Administrator may not be   terminated by the Company.
  

-17-

	
  
13.3
  	
  
Agents. In the   administration of this Plan, the Committee may, from time to time, employ   agents and delegate to them such administrative duties as it sees fit   (including acting through a duly appointed representative) and may from time   to time consult with counsel who may be counsel to any Employer.
  
	
  
 
  	
  
 
  
	
  
13.4
  	
  
Binding Effect of Decisions.  The decision or action of the   Administrator with respect to any question arising out of or in connection   with the administration, interpretation and application of the Plan and the   rules and regulations promulgated hereunder shall be final and conclusive and   binding upon all persons having any interest in the Plan.
  
	
  
 
  	
  
 
  
	
  
13.5
  	
  
Indemnity of Committee.  All Employers shall indemnify and hold   harmless the members of the Committee, any Employee to whom the duties of the   Committee may be delegated, and the Administrator against any and all claims,   losses, damages, expenses or liabilities arising from any action or failure   to act with respect to this Plan, except in the case of willful misconduct by   the Committee, any of its members, any such Employee or the Administrator.
  
	
   
  	
  
 
  
	
  
13.6
  	
  
Employer Information.  To enable the Committee and/or   Administrator to perform its functions, the Company and each Employer shall   supply full and timely information to the Committee and/or Administrator, as   the case may be, on all matters relating to the compensation of its   Participants, the date and circumstances of the Retirement, Disability,   death or Termination of Employment of its Participants, and such other   pertinent information as the Committee or Administrator may reasonably   require.
  

	
  
ARTICLE 14
  
	
  
Other Benefits and Agreements
  

	
  
14.1
  	
  
Coordination with Other Benefits.  The benefits provided for a Participant   and Participant’s Beneficiary under the Plan are in addition to any other   benefits available to such Participant under any other plan or program for   employees of the Participant’s Employer.    The Plan shall supplement and shall not supersede, modify or amend any   other such plan or program except as may otherwise be expressly provided.
  

	
  
ARTICLE 15
  
	
  
Claims Procedures
  

	
  
15.1
  	
  
Presentation of Claim.  Any Participant or Beneficiary of a   deceased Participant (such Participant or Beneficiary being referred to below   as a “Claimant”) may deliver to the Committee a written claim for a   determination with respect to the amounts distributable to such Claimant from   the Plan.  If such a claim relates to   the contents of a notice received by the Claimant, the claim must be made   within sixty (60) days after such notice was received by the   Claimant.  All other claims must be   made within 180 days of the date on which the event that caused the   claim to arise occurred.  The claim   must state with particularity the determination desired by the Claimant.
  

-18-

	
  
15.2
  	
  
Notification of Decision.  The Committee shall consider a Claimant’s   claim within a reasonable time, but no later than ninety (90) days after   receiving the claim.  If the Committee   determines that special circumstances require an extension of time for   processing the claim, written notice of the extension shall be furnished to   the Claimant prior to the termination of the initial ninety (90) day   period.  In no event shall such   extension exceed a period of ninety (90) days from the end of the initial   period.  The extension notice shall   indicate the special circumstances requiring an extension of time and the   date by which the Committee expects to render the benefit determination.  The Committee shall notify the Claimant in   writing:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
that the   Claimant’s requested determination has been made, and that the claim has been   allowed in full; or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
that the   Committee has reached a conclusion contrary, in whole or in part, to the   Claimant’s requested determination, and such notice must set forth in a   manner calculated to be understood by the Claimant:
  

	
  
 
  	
  
 
  	
  
(i)
  	
  
the specific   reason(s) for the denial of the claim, or any part of it;
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(ii)
  	
  
specific   reference(s) to pertinent provisions of the Plan upon which such denial was   based;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(iii)
  	
  
a   description of any additional material or information necessary for the   Claimant to perfect the claim, and an explanation of why such material or   information is necessary;
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(iv)
  	
  
an   explanation of the claim review procedure set forth in Section 15.3   below; and
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
(v)
  	
  
a statement   of the Claimant’s right to bring a civil action under ERISA Section 502(a)   following an adverse benefit determination on review.
  

	
  
15.3
  	
  
Review of a Denied Claim.  On or before sixty (60) days after   receiving a notice from the Committee that a claim has been denied, in whole   or in part, a Claimant (or the Claimant’s duly authorized representative) may   file with the Committee a written request for a review of the denial of the   claim.  The Claimant (or the   Claimant’s duly authorized representative):
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(a)
  	
  
may, upon   request and free of charge, have reasonable access to, and copies of, all   documents, records and other information relevant to the claim for benefits;
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
may submit   written comments or other documents; and/or
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
may request   a hearing, which the Committee, in its sole discretion, may grant.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
15.4
  	
  
Decision on Review.  The Committee shall render its decision on   review promptly, and no later than sixty (60) days after the Committee   receives the Claimant’s written request for a review of the denial of the   claim.  If the Committee determines   that special circumstances require an extension of time for processing the   claim, written notice of the extension shall be furnished to the Claimant   prior to the termination of the initial sixty (60) day period.  In no event shall such extension exceed a   period of sixty (60) days from the end of the initial period.  The extension notice shall indicate the   special circumstances requiring an extension of time and the date by which   the Committee expects to render the benefit determination.  In rendering its decision, the Committee   shall take into account all comments, documents, records and other   information submitted by the Claimant relating to the claim,
without regard   to whether such information was submitted or considered in the initial   benefit determination.  The decision   must be written in a manner calculated to be understood by the Claimant, and   it must contain:
  

-19-

	
  
 
  	
  
(a)
  	
  
specific   reasons for the decision;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
specific   reference(s) to the pertinent Plan provisions upon which the decision was   based;
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
a statement   that the Claimant is entitled to receive, upon request and free of charge,   reasonable access to and copies of, all documents, records and other   information relevant (as defined in applicable ERISA regulations) to the   Claimant’s claim for benefits; and
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(d)
  	
  
a statement   of the Claimant’s right to bring a civil action under ERISA Section 502(a).
  
	
  
 
  	
  
 
  	
  
 
  
	
  
15.5
  	
  
Legal Action.  A Claimant’s compliance with the foregoing   provisions of this Article 15 is a mandatory prerequisite to a   Claimant’s right to commence any legal action with respect to any claim for   benefits under this Plan.
  

	
  
ARTICLE 16
  
	
  
Trust
  

	
  
16.1
  	
  
Establishment of the Trust.  In order to provide assets from which to   fulfill the obligations of the Participants and their beneficiaries under the   Plan, the Company may establish a trust by a trust agreement with a third   party, the trustee, to which each Employer may, in its discretion, contribute   cash or other property, including securities issued by the Company, to   provide for the benefit payments under the Plan, (the “Trust”).
  
	
   
  	
  
 
  
	
  
16.2
  	
  
Interrelationship of the Plan and the Trust.  The provisions of the Plan and the Plan   Agreement shall govern the rights of a Participant to receive distributions   pursuant to the Plan.  The provisions   of the Trust shall govern the rights of the Employers, Participants and the   creditors of the Employers to the assets transferred to the Trust.  Each Employer shall at all times remain   liable to carry out its obligations under the Plan.
  
	
  
 
  	
  
 
  
	
  
16.3
  	
  
Distributions From the Trust.  Each Employer’s obligations under the Plan   may be satisfied with Trust assets distributed pursuant to the terms of the   Trust, and any such distribution shall reduce the Employer’s obligations   under this Plan.
  

	
  
ARTICLE 17
  
	
  
Miscellaneous
  

	
  17.1
  	
  
Status of Plan.  The Plan is intended to be a plan that is   not qualified within the meaning of Code Section 401(a) and that “is unfunded   and is maintained by an employer primarily for the purpose of providing   deferred compensation for a select group of management or highly compensated   employees” within the meaning of ERISA Sections 201(2), 301(a)(3) and   401(a)(1).  The Plan shall be administered   and interpreted to the extent possible in a manner consistent with that   intent.
  
	
  
 
  	
  
 
  
	
  
17.2
  	
  
Unsecured General Creditor.  Participants and their Bene-ficiaries,   heirs, successors and assigns shall have no legal or equitable rights,   interests or claims in any property or assets of an Employer.  For purposes of the payment of benefits   under this Plan, any and all of an Employer’s assets shall be, and remain,   the general, unpledged unrestricted assets of the Employer.  An Employer’s obligation under the Plan shall   be merely that of an unfunded and unsecured promise to pay money in the   future.
  

-20-

	
  
17.3
  	
  
Employer’s Liability.  An Employer’s liability for the payment of   benefits shall be defined only by the Plan and the Plan Agreement, as entered   into between the Employer and a Participant.    An Employer shall have no obligation to a Participant under the Plan   except as expressly provided in the Plan and his or her Plan Agreement.
  
	
   
  	
  
 
  
	
  
17.4
  	
  
Nonassignability.  Neither a Participant nor any other person   shall have any right to commute, sell, assign, transfer, pledge, anticipate,   mortgage or otherwise encumber, transfer, hypothecate, alienate or convey in   advance of actual receipt, the amounts, if any, payable hereunder, or any   part thereof, which are, and all rights to which are expressly declared to   be, unassignable and non-transfer-able.    No part of the amounts payable shall, prior to actual payment, be   subject to seizure, attachment, garnishment or sequestration for the payment   of any debts, judgments, alimony or separate maintenance owed by a   Participant or any other person, be transferable by operation of law in the   event of a Participant’s or any other person’s bankruptcy or insolvency or be   transferable to a spouse as a result of a property settlement or otherwise.
  
	
  
 
  	
  
 
  
	
  
17.5
  	
  
Not a Contract of Employment.  The terms and conditions of this Plan   shall not be deemed to constitute a contract of employment between any   Employer and the Participant.  Such   employment is hereby acknowledged to be an “at will” employment relationship   that can be terminated at any time for any reason, or no reason, with or   without cause, and with or without notice, unless expressly provided in a   written employment agreement.  Nothing   in this Plan shall be deemed to give a Participant the right to be retained   in the service of any Employer, either as an Employee or a Director, or to   interfere with the right of any Employer to discipline or discharge the   Participant at any time.
  
	
   
  	
  
 
  
	
  
17.6
  	
  
Furnishing Information.  A Participant or his or her Beneficiary   will cooperate with the Committee by furnishing any and all information   requested by the Committee and take such other actions as may be requested in   order to facilitate the administra-tion of the Plan and the payments of   benefits hereunder, including but not limited to taking such physical   examinations as the Committee may deem necessary to determine Disability.
  
	
  
 
  	
  
 
  
	
  
17.7
  	
  
Terms.  Whenever any words are used herein in the   masculine, they shall be construed as though they were in the feminine in all   cases where they would so apply; and whenever any words are used herein in   the singular or in the plural, they shall be construed as though they were   used in the plural or the singular, as the case may be, in all cases where   they would so apply.
  
	
  
 
  	
  
 
  
	
  
17.8
  	
  
Captions.  The captions of the articles, sections and   paragraphs of this Plan are for convenience only and shall not control or   affect the meaning or construction of any of its provisions.
  
	
  
 
  	
  
 
  
	
  17.9
  	
  
Governing Law.  Subject to ERISA, the provisions of this   Plan shall be construed and interpreted according to the internal laws of the   State of California without regard to its conflicts of laws principles.
  
	
  
 
  	
  
 
  
	
  
17.10
  	
  
Notice.  Any notice or filing required or permitted   to be given to the Committee under this Plan shall be sufficient if in   writing and hand-delivered, or sent by registered or certified mail, to the   address below:
  

-21-

	
  
 
  	
  
 
  	
  
Trimble   Navigation Limited
  	
  
 
  
	
  
 
  	
  
 
  	
  
Attn:   General Counsel – Urgent Notice
  	
  
 
  
	
   
  	
  
 
  	
  
749 North   Mary Avenue
  	
  
 
  
	
  
 
  	
  
 
  	
  
P.O. Box   3642
  	
  
 
  
	
  
 
  	
  
 
  	
  
Sunnyvale,   California 94085
  	
  
 
  

	
  
 
  	
  
Such notice   shall be deemed given as of the date of delivery or, if delivery is made by   mail, as of the date shown on the postmark on the receipt for registration or   certification.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
Any notice   or filing required or permitted to be given to a Participant under this Plan   shall be sufficient if in writing and hand-delivered, or sent by mail, to the   last known address of the Participant.
  
	
   
  	
  
 
  
	
  
17.11
  	
  
Successors.  The provisions of this Plan shall bind and   inure to the benefit of the Participant’s Employer and its successors and   assigns and the Participant and the Participant’s designated Beneficiaries.
  
	
  
 
  	
  
 
  
	
  
17.12
  	
  
Spouse’s Interest.  The interest in the benefits hereunder of   a spouse of a Participant who has predeceased the Participant shall   automatically pass to the Participant and shall not be transferable by such   spouse in any manner, including but not limited to such spouse’s will, nor   shall such interest pass under the laws of intestate succession.
  
	
  
 
  	
  
 
  
	
  
17.13
  	
  
Validity.  In case any provision of this Plan shall   be illegal or invalid for any reason, said illegality or invalidity shall not   affect the remaining parts hereof, but this Plan shall be construed and   enforced as if such illegal or invalid provision had never been inserted   herein.
  
	
  
 
  	
  
 
  
	
  
17.14
  	
  
Incompetent.  If the Committee determines in its   discretion that a benefit under this Plan is to be paid to a minor, a person   declared incompetent or to a person incapable of handling the disposition of   that person’s property, the Committee may direct payment of such benefit to   the guardian, legal representative or person having the care and custody of   such minor, incompetent or incapable person.    The Committee may require proof of minority, incompetence, incapacity   or guardianship, as it may deem appropriate prior to distribution of the   benefit.  Any payment of a benefit   shall be a payment for the account of the Participant and the Participant’s   Beneficiary, as the case may be, and shall be a complete discharge of any   liability under the Plan for such payment amount.
  
	
   
  	
  
 
  
	
  
17.15
  	
  
Court Order.  The Committee is authorized to comply with   any court order in any action in which the Plan or the Committee has been   named as a party, including any action involving a determination of the   rights or interests in a Participant’s benefits under the Plan.  Notwithstanding the foregoing, the   Committee shall interpret this provision in a manner that is consistent with   Code Section 409A and other applicable tax law, including but not limited to   guidance issued after the effective date of this Plan.
  
	
  
 
  	
  
 
  
	
  
17.16
  	
  
Insurance.  The Employers, on their own behalf or on   behalf of the trustee of the Trust, and, in their sole discretion, may apply   for and procure insurance on the life of the Participant, in such amounts and   in such forms as the Trust may choose.    The Employers or the trustee of the Trust, as the case may be, shall   be the sole owner and beneficiary of any such insurance.  The Participant shall have no interest   whatsoever in any such policy or policies, and at the request of the   Employers shall submit to medical examinations and supply such information   and execute such documents as may be required by the insurance company or   companies to whom the Employers have applied for insurance.
  

-22-

IN WITNESS WHEREOF, the Company has signed this Plan document as of ___________________, 2005.

	
  
 
  	
  
“Company”
  
	
  
 
  	
  
Trimble   Navigation Limited, a California corporation
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
___________________________________
  
	
  
 
  	
  
Title:
  	
  
___________________________________
  

-23-

APPENDIX A

LIMITED TRANSITION RELIEF MADE AVAILABLE DURING 2005 
 IN ACCORDANCE WITH NOTICE 2005-1

Unless otherwise provided below, the capitalized terms below shall have the same meaning provided in the Plan.

	
  
1.1
  	
  
Opportunity to Make New Payment Elections.  Notwithstanding the required deadlines for   the submission of initial payment elections under Section 4.1 or under   Articles 5 and 6, and in accordance with Q&A-19(c) of Notice 2005-1, a   Participant who participated in the Nonqualified Deferred Compensation Plan   may make the following payment elections by submitting an Election Form to   the Committee prior to the deadline established by the Committee in its sole   discretion, which in no event shall be later than December 31, 2005:
  

	
  
 
  	
  
(a)
  	
  
The   Participant may elect to receive a Scheduled Distribution, in the form of a   lump sum payment, with respect to all or a portion of (i) his or her Account   Balance accumulated under the Nonqualified Deferred Compensation Plan as of   December 30, 2004, and (ii) the Participant’s 2005 Plan Year Annual Account.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
(b)
  	
  
With respect   to the benefit provided in Article 5, the Participant may elect whether to   (i) receive a Change in Control Benefit upon the occurrence of a Change in Control,   or (ii) to have his or her Account Balance remain in the Plan upon the   occurrence of a Change in Control.  If   a Participant does not make a new payment election in accordance with this   Section, then such Participant’s Account Balance shall remain in the Plan   upon a Change in Control and shall be subject to the terms and conditions of   the Plan.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
(c)
  	
  
With respect   to the benefit provided in Article 6, the Participant may elect the form in   which (i) the portion of his or her Account Balance accumulated under the   Nonqualified Deferred Compensation Plan as of December 30, 2004 will be paid,   and (ii) the 2005 Plan Year Annual Account will be paid, upon his or her   Benefit Distribution Date.  If a   Participant does not make a new payment election in accordance with this   Section, (A) the portion of his or her Account Balance accumulated under the   Nonqualified Deferred Compensation Plan as of December 30, 2004 shall be paid   to the Participant in accordance with the Participant’s payment election that   was on file with the Committee as of the Restatement Date, and (B) the   Participant shall be deemed to have elected to receive his or her 2005 Plan   Year Annual Account as a lump sum in accordance with the Plan, as applicable.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
For purposes   of clarification, any payment elections made under this Section are intended   to comply with the requirements of Q&A-19(c) of Notice 2005-1 and shall   not be considered to be a change to the Participant’s prior payment   election(s) for purposes of Code Section 409A or the Plan.  Any payment elections made in accordance   with the requirements of this Section shall be governed by the terms and   conditions of the Plan.  Following the   deadline established by the Committee, in its sole discretion, for exercising   the right provided in this Section, a Participant may only change his or her   payment election(s) for the Account Balance, if at all, in accordance with   the terms and conditions of the Plan.
  

A-1

	
  
1.2
  	
  
Limited Period to Make New Deferral   Elections.    Notwithstanding any provisions of the Plan to the contrary, and in   accordance with Q&A-21 of Notice 2005-1, a Participant who participated   in the Nonqualified Deferred Compensation Plan may make a new deferral   election for Base Salary attributable to services performed during the 2005   calendar year and/or Bonus attributable to services performed during 2004   (payable in 2005), by submitting an Election Form to the Committee prior to   the deadline established by the Committee in its sole discretion, which in no   event shall be later than March 15, 2005.    A deferral election made under this Section (i) shall only relate to   amounts that have not been paid or become payable at the time of election,   and (ii) must be made in accordance with the terms of the Plan as in effect   on or before December 31, 2005.  Any   amounts deferred in accordance with this Section shall
be governed by the   terms and conditions of the Plan.
  
	
   
  	
   
  
	
  1.3
  	
  Limited Period to Cancel Deferral   Elections.    Notwithstanding any provisions of the Plan to the contrary, and in   accordance with Q&A-20 of Notice 2005-1, the Committee, in its sole   discretion, may provide a limited period in which a Participant may cancel,   in whole or in part, his or her (i) Base Salary deferral election   attributable to services performed during the 2005 calendar year, or (ii)   Bonus deferral election attributable to services performed during 2004   (payable in 2005), by submitting an Election Form to the Committee prior to   the deadline established by the Committee, in its sole discretion, which in no   event shall be later than December 31, 2005.    All amounts that are subject to cancellation shall be includible in   income during calendar year 2005, and shall be distributed to the Participant   in a form and manner determined by the Committee in accordance with the   requirements of Notice
2005-1.
  

A-2Exhibit 10.2

TRIMBLE NAVIGATION LIMITED

2002 STOCK PLAN
(as amended and restated January 20, 2005)

          1.     Purposes of the Plan.  The purposes of this 2002 Stock Plan are:

	
  
 
  	
  
•
  	
  
to attract   and retain the best available personnel for positions of substantial   responsibility,
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
•
  	
  
to provide   additional incentive to Employees, Directors and Consultants, and
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
•
  	
  
to promote   the success of the Company’s business.
  

                    Grants under the Plan may be Awards, Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant.  

          2.     Definitions.  As used herein, the following definitions shall apply:

                         (a)     “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the Plan.

                         (b)     “Applicable Laws” means the requirements relating to the administration of stock incentive plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options are, or will be, granted under the Plan.

                         (c)     “Award” means a grant of Shares or of a right to receive Shares pursuant to Section 7 of the Plan.

                         (d)     “Award Agreement” means a written or electronic form of notice or agreement between the Company and an Awardee evidencing the terms and conditions of an individual Award.  The Award Agreement is subject to the terms and conditions of the Plan.

                         (e)     “Awarded Stock” means the Common Stock subject to an Award.

                         (f)     “Awardee” means the holder of an outstanding Award.

                         (g)     “Board” means the board of directors of the Company.

                         (h)     “Change in Control” means the occurrence of any of the following events:

                                        (i)          Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or

                                        (ii)          The consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets;

                                        (iii)          A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or

                                        (iv)          The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

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

                         (j)     “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan.

                         (k)     “Common Stock” means the common stock of the Company.

                         (l)     “Company” means Trimble Navigation Limited, a California corporation.

                         (m)     “Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity.

                         (n)     “Director” means a member of the Board.

                         (o)     “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code.

                         (p)     “Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.  A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor.  For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then three (3) months following the 91st day of such leave any Incentive Stock Option held by the
Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option.  Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company.

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

                         (r)     “Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

                                        (i)          If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

                                        (ii)         If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 

                                        (iii)        In the absence of an established market for the Common Stock, the Fair Market Value shall be determined in good faith by the Board.

                         (s)     “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

                         (t)     “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option.

                         (u)     “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

                         (v)     “Option” means a stock option granted pursuant to the Plan.

                         (w)     “Option Agreement” means a written or electronic form of notice or agreement between the Company and an Optionee evidencing the terms and conditions of an individual Option grant.  The Option Agreement is subject to the terms and conditions of the Plan.

                         (x)     “Optioned Stock” means the Common Stock subject to an Option.

                         (y)     “Optionee” means the holder of an outstanding Option.

                         (z)     “Outside Director” means a Director who is not an Employee.

                         (aa)          “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

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                         (bb)          “Plan” means this 2002 Stock Plan, as amended.

                         (cc)          “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

                         (dd)          “Section 16(b) “ means Section 16(b) of the Exchange Act.

                         (ee)          “Service Provider” means an Employee, Director or Consultant.

                         (ff)          “Share” means a share of the Common Stock, as adjusted in accordance with Section 13 of the Plan.

                         (gg)          “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of the Code.

          3.     Stock Subject to the Plan.  Subject to the provisions of Section 13 of the Plan, the maximum aggregate number of Shares that may be awarded or optioned and delivered under the Plan is 4,500,000 Shares plus (a) any Shares which have been previously reserved but not issued under the Company’s 1993 Stock Option Plan (the “1993 Plan”) as of the date of shareholder approval of this Plan, and (b) any Shares returned to the 1993 Plan as a result of termination of options granted under the 1993 Plan.  The Shares may be authorized, but unissued, or reacquired Common Stock, all of which Shares may be granted as Incentive Stock Options and 10% of which may be granted as Awards.

                    If an Award or Option expires, is cancelled, forfeited or becomes unexercisable without having been exercised in full, the undelivered Shares which were subject thereto shall, unless the Plan has terminated, become available for future Awards or Options under the Plan.

          4.     Administration of the Plan. 

                         (a)     Procedure.

                                        (i)          Multiple Administrative Bodies.  Different Committees with respect to different groups of Service Providers may administer the Plan.

                                        (ii)         Section 162(m).  To the extent that the Administrator determines it to be desirable to qualify Awards or Options granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “outside directors” within the meaning of Section 162(m) of the Code.

                                        (iii)        Rule 16b-3.  To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3.

                                        (iv)        Other Administration.  Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be constituted to satisfy Applicable Laws.

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                         (b)     Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

                                        (i)          to select the Service Providers to whom Awards or Options may be granted hereunder;

                                        (ii)         to determine the number of shares of Common Stock to be covered by each Award or Option granted hereunder;

                                        (iii)        to approve forms of agreement for use under the Plan;

                                        (iv)        to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award or Option granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options may be exercised (which may be based on performance criteria), the time or times when Awards vest (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or Option or the shares of Common Stock relating thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

                                        (v)         to construe and interpret the terms of the Plan and awards granted pursuant to the Plan; 

                                        (vi)        to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws;

                                        (vii)       to modify or amend each Award or Option (subject to Section 15(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Options longer than is otherwise provided for in the Plan; provided, however, that the Administrator shall not reduce the exercise price of Options or cancel any outstanding Option and replace it with a new Option with a lower exercise price, where the economic effect would be the same as reducing the exercise price of the cancelled Option, without the approval of the Company’s shareholders;

                                        (viii)      to allow Awardees or Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or vesting of an Award that number of Shares having a Fair Market Value equal to the minimum amount required to be withheld.  The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined.  All elections by an Awardee or Optionee to have Shares withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable;

                                        (ix)        to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award or Option previously granted by the Administrator; and

                                        (x)         to make all other determinations deemed necessary or advisable for administering the Plan.

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                         (c)     Effect of Administrator’s Decision.  The Administrator’s decisions, determinations and interpretations shall be final and binding on all Awardees and Optionees and any other holders of Awards or Options.

          5.     Eligibility.  Nonstatutory Stock Options and Awards may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees.

          6.     Limitations.

                         (a)     Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a), Incentive Stock Options shall be taken into account in the order in which they were granted.  The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted.

                         (b)     Neither the Plan nor any Award or Option shall confer upon an Awardee or Optionee any right with respect to continuing that individual’s relationship as a Service Provider with the Company, nor shall they interfere in any way with the Awardee’s or Optionee’s right or the Company’s right to terminate such relationship at any time, with or without cause. 

                         (c)     The following limitations shall apply to grants of Awards and Options:

                                        (i)          No Service Provider shall be granted, in any fiscal year of the Company, Options and Awards covering more than 300,000 Shares.

                                        (ii)         In connection with his or her initial service, a Service Provider may be granted Options and Awards covering an additional 450,000 Shares, which shall not count against the limit set forth in subsection (i) above.

                                        (iii)        The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 13.

                                        (iv)        If an Award or Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in Section13), the cancelled Option or Award will be counted against the limits set forth in subsections (i) and (ii) above. 

          7.     Stock Awards.  Awards may be granted either alone or in addition to Options granted under the Plan.  Upon each vesting date, provided that the Awardee is then a Service Provider, the Awardee shall be entitled to receive the number of Shares vested without payment of any consideration to the Company, unless otherwise required by applicable law.  Unless otherwise provided in the Award Agreement, Awardees will have full voting rights and be entitled to regular cash dividends with respect to the Shares subject to their Awards.  An Award Agreement may provide that certain restrictions will apply to any such dividends.

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          8.     Term of Plan.  Subject to Section 19 of the Plan, the Plan shall become effective upon its adoption by the Board.  It shall continue in effect for a term of ten (10) years unless terminated earlier under Section 15 of the Plan.

          9.     Term of Award or Option.  The term of each Award or Option shall be ten (10) years from the date of grant or such shorter term as may be provided in the Award Agreement or Option Agreement.  However, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.

          10.     Option Exercise Price and Consideration.

                              (a)     Exercise Price.  The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by the Administrator, subject to the following:

                                        (i)          In the case of an Incentive Stock Option

                                                       (A)     granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be no less than 110% of the Fair Market Value per Share on the date of grant.

                                                       (B)     granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

                                        (ii)         In the case of a Nonstatutory Stock Option, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

                                        (iii)        Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or consolidation of or by the Company with or into another corporation, the purchase or acquisition of property or stock by the Company of another corporation, any spin-off or other distribution of stock or property by the Company or another corporation, any reorganization of the Company, or any partial or complete liquidation of the Company, if such action by the Company or other corporation results in a significant number of Employees or employees being transferred to a new employer or discharged,
or in the creation or severance of the Parent-Subsidiary relationship.

                         (b)     Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator shall fix the period within which the Option may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised.

                         (c)     Form of Consideration.  The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment.  In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant.  Such consideration may consist entirely of:

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                                        (i)          cash;

                                        (ii)         check;

                                        (iii)        promissory note;

                                        (iv)        other Shares which, in the case of Shares acquired directly or indirectly from the Company, (A) have been owned by the Optionee for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised;

                                        (v)         consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan;

                                        (vi)        a reduction in the amount of any Company liability to the Optionee, including any liability attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement;

                                        (vii)       any combination of the foregoing methods of payment; or

                                        (viii)      such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

          11.     Exercise of Option; Vesting of Awards.

                         (a)     Procedure for Exercise; Rights as a Shareholder.  Any Option granted hereunder shall be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement.  Unless the Administrator provides otherwise, vesting of Awards and Options granted hereunder shall be suspended during any unpaid leave of absence.  An Option may not be exercised for a fraction of a Share.

                                        An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option or such person’s authorized agent, and (ii) full payment for the Shares with respect to which the Option is exercised.  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan.  Shares issued upon exercise of an Option shall be issued in the name of the Optionee.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company),
no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be issued) such Shares promptly after the Option is exercised or the vesting date of an Award.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Sections 7 and 13 of the Plan.

                                        Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for delivery under the Award or Option, by the number of Shares as to which the Option is exercised.

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                         (b)     Termination of Relationship as a Service Provider.  If an Optionee ceases to be a Service Provider, other than upon the Optionee’s death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement).  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s termination.  If an Awardee ceases to be a Service Provider, for any reason, all unvested Shares covered by his or her Award shall be forfeited.  If, on the date of
termination, the Optionee or Awardee is not vested as to his or her entire Option or Award, the Shares covered by the unvested portion of the Option or Award shall revert to the Plan.  If, after termination, the Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.  

                         (c)     Disability of Optionee.  If an Optionee ceases to be a Service Provider as a result of the Optionee’s Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement).  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee’s termination.  If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan.  If, after termination, the
Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

                         (d)     Death of Optionee.  If an Optionee dies while a Service Provider or within thirty (30) days (or such longer period of time not exceeding three (3) months as is determined by the Administrator), the Option may be exercised following the Optionee’s death within such period of time as is specified in the Option Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Option Agreement), by the personal representative of the Optionee’s estate or by the person(s) to whom the Option is transferred pursuant to the Optionee’s will or in accordance with the laws of descent and distribution.  In the absence of a specified time in
the Option Agreement, the Option shall remain exercisable for twelve (12) months following Optionee’s death.  If, at the time of death, Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall immediately revert to the Plan.  If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

          12.     Transferability of Awards and Options.  Unless determined otherwise by the Administrator, an Award or Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee.  If the Administrator makes an Award or Option transferable, suchAward or Option shall contain such additional terms and conditions as the Administrator deems appropriate.          

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13.     Adjustments; Dissolution; Merger or Change in Control.

                         (a)     Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, may (in its sole discretion) adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award and Option and the
  numerical limits of Section 6.

                         (b)     Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each Awardee and Optionee as soon as practicable prior to the effective date of such proposed transaction.  The Administrator in its discretion may provide for an Optionee to have the right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be exercisable.  The Administrator in its discretion may provide that the vesting of an Award accelerate at any time prior to such transaction.  To the extent it has not been previously exercised, an Option will terminate immediately prior to the consummation
of such proposed action, and unvested Shares subject to an Award will be forfeited immediately prior to the consummation of such proposed action.

                         (c)     Merger or Change in Control.  In the event of a merger of the Company with or into another corporation, or a Change in Control, each outstanding Award and Option shall be assumed or an equivalent award, option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  In the event the successor corporation does not agree to assume the Award or Option, or substitute an equivalent option or right, the Administrator shall, in lieu of such assumption or substitution, provide for the Awardee or Optionee to have the right to vest in and exercise the Option as to all of the Optioned Stock, including Shares as to which the Option would not otherwise be vested or exercisable, and in the case of an Award, to accelerate the vesting
of the Award.  If the Administrator makes an Option fully vested and exercisable in lieu of assumption or substitution in the event of a merger or Change in Control, the Administrator shall notify the Optionee that the Option shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option will terminate upon the expiration of such period.  If, in such a merger or Change in Control, the Award or Option is assumed or an equivalent award or option or right is substituted by such successor corporation or a Parent or Subsidiary of such successor corporation, and if during a one-year period after the effective date of such merger or Change in Control, the awardee’s or Optionee’s status as a Service Provider is terminated for any reason other than the Awardee’s or Optionee’s voluntary termination of such relationship, then (i) in the case of an Option, the Optionee shall have the right within three (3) months thereafter to
exercise the Option as to all of the Optioned Stock, including Shares as to which the Option would not be otherwise exercisable, effective as of the date of such termination and (ii) in the case of an Award, the Award shall be fully vested on the date of such termination.

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                                        For the purposes of this subsection (c), the Award or Option shall be considered assumed if, following the merger or Change in Control, the option or right confers the right to purchase or receive, for each Share of Awarded Stock subject to the Award or Optioned Stock subject to the Option immediately prior to the merger or Change in Control, the consideration (whether stock, cash, or other securities or property) received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option, for each Share of Optioned Stock subject to the Option, and upon the vesting of an Award, for each Share of Awarded Stock, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the merger or Change in Control.

          14.     Date of Grant.  Except for Optionsgranted to Outside Directors under Section 15 hereof, the date of grant of an Award or Option shall be, for all purposes, the date on which the Administrator makes the determination granting such Award or Option, or such other later date as is determined by the Administrator.  Notice of the determination shall be provided to each Awardee and Optionee within a reasonable time after the date of such grant.

          15.     Option Grants to Outside Directors.  All grants of Options to Outside Directors shall be automatic and non-discretionary and shall be made strictly in accordance with the following provisions:

                                        (i)          No person shall have any discretion to select which Outside Directors shall be granted Options or to determine the number of Shares to be covered by Options granted to Outside Directors.

                                        (ii)         Each Outside Director shall be automatically granted an Option to purchase 15,000 Shares (the “First Option”) upon the date on which such person first becomes a Director, whether through election by the shareholders of the Company or appointment by the Board of Directors to fill a vacancy.

                                        (iii)        After a First Option has been granted to any Outside Director, each Outside Director shall thereafter be automatically granted an Option to purchase 7,500 Shares (a “Subsequent Option”) on the day of each subsequent annual shareholders meeting at which such Outside Director is reelected to an additional term; provided, however, that no Subsequent Option shall be granted for the first annual shareholders meeting following the grant of a First Option to any director.

                                        (iv)        In the event that the number of Shares remaining available for grant under the Plan is less than the number of Shares required for an automatic grant pursuant to either subsection (ii) or (iii) hereof, then each such automatic grant shall be for that number of Shares determined by dividing the total number of Shares remaining available for grant by the number of Outside Directors on the automatic grant date.  Any further automatic grants shall then be deferred until such time, if any, as additional Shares become available for grant under the Plan through action to increase the number of Shares which may be issued under the Plan or through cancellation or expiration of
Options previously granted under the Plan.

-11-

                                        (v)         The terms of an Option granted hereunder shall be consistent with the requirements set forth elsewhere in this plan, except that the Option shall become exercisable in installments cumulatively with respect to 1/36 of the Shares for each complete calendar month after the date of grant of such Option. 

                                        (vi)        The number of Shares granted pursuant to subsections (ii) and (iii) hereof shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 13.

          16.     Amendment and Termination of the Plan.

                         (a)     Amendment and Termination.  The Board may at any time amend, alter, suspend or terminate the Plan.  

                         (b)     Shareholder Approval.  The Company shall obtain shareholder approval of this Plan amendment to the extent necessary and desirable to comply with Applicable Laws and paragraph (c) below. 

                         (c)     Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan or any Award or Option shall (i) impair the rights of any Awardee or Optionee, unless mutually agreed otherwise between the Awardee or Optionee and the Administrator, which agreement must be in writing and signed by the Awardee or Optionee and the Company or (ii) permit the reduction of the exercise price of an Option after it has been granted (except for adjustments made pursuant to Section 13), unless approved by the Company’s shareholders.  Neither may the Administrator, without the approval of the Company’s shareholders, cancel any outstanding Option and replace it with a new Option with a lower exercise price, where the economic effect would be the same
as reducing the exercise price of the cancelled Option.  Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards and Options granted under the Plan prior to the date of such termination. Any increase in the number of shares subject to the Plan, other than pursuant to Section 13 hereof, shall be approved by the Company’s shareholders.

          17.     Conditions Upon Issuance of Shares; Deferred Compensation Legislation.

                         (a)     Legal Compliance.  Shares shall not be issued pursuant to the exercise of an Option or the vesting of an Award unless the exercise of such Option and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.  The Plan is intended to comply with the requirements of Section 409A of the Code and Awards and Options granted under the Plan may be amended for puposes of such compliance.

                         (b)     Investment Representations.  As a condition to the exercise of an Option, the Company may require the person exercising such Option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

-12-

          18.     Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained.

          19.     Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan.

          20.     Shareholder Approval.  The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months after the date the Plan is adopted.  Such shareholder approval shall be obtained in the manner and to the degree required under Applicable Laws. 

-13-

TRIMBLE NAVIGATION LIMITED

2002 STOCK PLAN – STOCK OPTION AGREEMENT

                                        Unless otherwise defined herein, the capitalized terms used in this Stock Option Agreement shall have the same defined meanings as set forth in the Company’s 2002 Stock Plan.

	
  
I.
  	
  
NOTICE OF STOCK OPTION GRANT
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Name:
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Address:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
          You   have been granted an option to purchase shares of the Common Stock of the   Company, subject to the terms and conditions of the Plan and this Stock   Option Agreement, as follows:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Grant Number
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Date of   Grant
  	
  
________________________________________________
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Vesting   Commencement Date
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Exercise   Price per Share
  	
  
$_______________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Total Number   of Shares Granted
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
Total   Exercise Price
  	
  
$_______________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Type of   Option:
  	
  
_____Incentive   Stock Option
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
_____Nonstatutory   Stock Option
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Term/Expiration   Date:
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
Vesting   Schedule:
  	
  
 
  

          This Option shall be exercisable, in whole or in part, in accordance with the following schedule:

          20% of the Shares subject to this Option shall vest twelve months after the Vesting Commencement Date, and 1/60th of the Shares subject to this Option shall vest each month thereafter on the same day of the month as the Vesting Commencement Date, such that 100% of the Shares subject to this Option shall vest five (5) years from the Vesting Commencement Date subject to the Optionee continuing to be a Service Provider on such dates.

-14-

          Termination Period:

          This Option may be exercised for three (3) months after Optionee ceases to be a Service Provider.  Upon the death or Disability of the Optionee, this Option may be exercised for twelve months after Optionee ceases to be a Service Provider.  In no event shall this Option be exercised later than the Term/Expiration Date as provided above.

II.          AGREEMENT

               A.          Grant of Option.

                              The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of Grant attached as Part I of this Agreement (the “Optionee”) an option (the “Option”) to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 15(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.

                              If designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option under Section 422 of the Code.  However, if this Option is intended to be an Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Nonstatutory Stock Option (“NSO”).

               B.          Exercise of Option.

                              (a)          Right to Exercise.  This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement.

                              (b)          Method of Exercise.  This Option is exercisable by (i) electronic exercise in accordance with an approved automated exercise program or (ii) delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice shall be completed by the Optionee and delivered to the Company.  The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all
Exercised Shares.  This Option shall be deemed to be exercised upon receipt by the Company of the Exercise Price.

                                             No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with Applicable Laws.  Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such Exercised Shares.

-15-

               C.          Method of Payment.

                              Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:

                              1.          cash; or

                              2.          check; or

                              3.          consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; or 

                              4.          surrender of other Shares which (i) in the case of Shares acquired either directly or indirectly from the Company, have been owned by the Optionee for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

               D.          Non-Transferability of Option.

                              This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee.  The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

               E.          Term of Option.

                              This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

               F.          Tax Obligations.

                              (a)          Withholding Taxes.  Optionee agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise.  Optionee acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.

                              (b)          Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition.  Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee.

-16-

               G.          Entire Agreement; Governing Law.

                              The Plan is incorporated herein by reference.  The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the state of California.

               H.          NO GUARANTEE OF CONTINUED SERVICE.

                              OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

                    By Optionee’s signature and the signature of the Company’s representative below, Optionee and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement.  Optionee has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all provisions of the Plan and Option Agreement.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Option Agreement.  Optionee further agrees to notify the Company upon any change in the residence address indicated below.

	
  
OPTIONEE:
  	
  
 
  	
  
TRIMBLE NAVIGATION LIMITED
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Signature
  	
  
 
  	
  
By
  
	
   
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Print Name
  	
  
 
  	
  
Print Name
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Residence Address
  	
  
 
  	
  
Title
  

-17-

TRIMBLE NAVIGATION LIMITED

2002 STOCK PLAN – STOCK OPTION AGREEMENT

(Outside Director Option)

                                        Unless otherwise defined herein, the capitalized terms used in this Stock Option Agreement shall have the same defined meanings as set forth in the Company’s 2002 Stock Plan.

	
  
I.
  	
  
NOTICE OF STOCK OPTION GRANT
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Address:
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  
          You   have been granted an option to purchase shares of the Common Stock of the   Company, subject to the terms and conditions of the Plan and this Stock   Option Agreement, as follows:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Grant Number
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Date of   Grant
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Vesting   Commencement Date
  	
  
________________________________________________
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Exercise   Price per Share
  	
  
$_______________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Total Number   of Shares Granted
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Total   Exercise Price
  	
  
$_______________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Type of   Option:
  	
  
Nonstatutory   Stock Option
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Term/Expiration   Date:
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Vesting   Schedule:
  	
  
 
  

          This Option shall be exercisable, in whole or in part, in accordance with the following schedule:

          This option shall vest and become exercisable cumulatively, to the extent of 1/36th of the Shares subject to the Option for each complete calendar month after the date of grant of the Option. 

-18-

          Termination Period:

          This Option may be exercised for three (3) months after Optionee ceases to be a Service Provider.  Upon the death or Disability of the Optionee, this Option may be exercised for twelve months after Optionee ceases to be a Service Provider.  In no event shall this Option be exercised later than the Term/Expiration Date as provided above.

II.      AGREEMENT

          A.               Grant of Option.

                    The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of Grant attached as Part I of this Agreement (the “Optionee”) an option (the “Option”) to purchase the number of Shares, as set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”), subject to the terms and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 15(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.

          B.               Exercise of Option.

                    (a)                    Right to Exercise.  This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Grant and the applicable provisions of the Plan and this Option Agreement.

                    (b)                    Method of Exercise.  This Option is exercisable by (i) electronic exercise in accordance with an approved automated exercise program or (ii) delivery of an exercise notice, in the form attached as Exhibit A (the “Exercise Notice”), which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the “Exercised Shares”), and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice shall be completed by the Optionee and delivered to the Company.  The Exercise Notice shall be accompanied by payment of the aggregate Exercise Price as to all
Exercised Shares.  This Option shall be deemed to be exercised upon receipt by the Company of the Exercise Price.

          No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with Applicable Laws.  Assuming such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised with respect to such Exercised Shares.

          C.               Method of Payment.

                    Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:

-19-

                    1.                    cash; or

                    2.                    check; or

                    3.                    consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; or 

                    4.                    surrender of other Shares which (i) in the case of Shares acquired either directly or indirectly from the Company, have been owned by the Optionee for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised Shares.

          D.               Non-Transferability of Option.

                    This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised during the lifetime of Optionee only by the Optionee.  The terms of the Plan and this Option Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee.

          E.                Term of Option.

                    This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during such term only in accordance with the Plan and the terms of this Option Agreement.

          F.                Tax Obligations.

                    Withholding Taxes.  Optionee agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or retaining Optionee) for the satisfaction of all Federal, state, local and foreign income and employment tax withholding requirements applicable to the Option exercise.  Optionee acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise.

          G.               Entire Agreement; Governing Law.

                    The Plan is incorporated herein by reference.  The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the state of California.

                    By Optionee’s signature and the signature of the Company’s representative below, Optionee and the Company agree that this Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement.  Optionee has reviewed the Plan and this Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully understands all provisions of the Plan and Option Agreement.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Option Agreement.  Optionee further agrees to notify the Company upon any change in the residence address indicated below.

-20-

	
  
OPTIONEE:
  	
  
 
  	
  
TRIMBLE NAVIGATION LIMITED
  
	
   
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Signature
  	
  
 
  	
  
By
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Print Name
  	
  
 
  	
  
Print Name
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  Residence Address
  	
  
 
  	
  
Title
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  
 
  

-21-

EXHIBIT A

TRIMBLE NAVIGATION LIMITED

2002 STOCK PLAN

EXERCISE NOTICE

Trimble Navigation Limited
749 North Mary Avenue
 Sunnyvale, CA 94085

Attention:  Stock Administrator

          1.          Exercise of Option.  Effective as of today, ________________, _____, the undersigned (“Purchaser”) hereby elects to purchase ______________ shares (the “Shares”) of the Common Stock of Trimble Navigation Limited (the “Company”) under and pursuant to the 2002 Stock Plan (the “Plan”) and the Stock Option Agreement dated, ______________ (the “Option Agreement”).  Subject to adjustment in accordance with Section 12 of the Plan, the purchase price for the Shares shall be $_____, as required by the Option Agreement.

          2.          Delivery of Payment.  Purchaser herewith delivers to the Company the full purchase price for the Shares together with any required withholding taxes to be paid in connection with the exercise of the Option.

          3.          Representations of Purchaser.  Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions.

          4.          Rights as Shareholder.  Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.  The Shares so acquired shall be issued to the Optionee as soon as practicable after exercise of the Option.  No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as provided in Section 12 of the Plan.

          5.          Tax Consultation.  Purchaser understands that Purchaser may suffer adverse tax consequences as a result of Purchaser’s purchase or disposition of the Shares.  Purchaser represents that Purchaser has consulted with any tax consultants Purchaser deems advisable in connection with the purchase or disposition of the Shares and that Purchaser is not relying on the Company for any tax advice.

-22-

          6.          Entire Agreement; Governing Law.  The Plan and Option Agreement are incorporated herein by reference.  This Agreement, the Plan and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to the Purchaser’s interest except by means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the state of California.

	
  
Submitted   by:
  	
  
 
  	
  
Accepted by:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
PURCHASER:
  	
  
 
  	
  
TRIMBLE NAVIGATION LIMITED
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Signature
  	
  
 
  	
  
By
  
	
   
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
Print Name
  	
  
 
  	
  
Print Name
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
Address::
  	
  
 
  	
  
Title
  
	
  
 
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  
 
  
	
   
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
Date   Received
  

-23-

TRIMBLE NAVIGATION LIMITED

2002 STOCK PLAN

STOCK AWARD AGREEMENT

          Unless otherwise defined herein, the capitalized terms used in this Stock Award Agreement shall have the same defined meanings as set forth in the Company’s 2002 Stock Plan (the “Plan”).

	
  
III
  	
  
NOTICE OF STOCK AWARD
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Name:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Address:
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
          You  have been granted a stock award for shares of the Common Stock of the   Company, subject to the terms and conditions of the Plan and this Stock Award Agreement, as follows:
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
Grant Number
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Date of   Grant
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Vesting   Commencement Date
  	
  
________________________________________________
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Total Number   of Shares Granted
  	
  
______________________________,   (the” Awareded Stock”)
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
Vesting   Schedule:
  	
  
 
  

          The Awarded Stock shall vest in accordance with the following schedule:

          Provided that the Awardee continues to be a Service Provider through each vesting date, 20% of the Awarded Stock shall vest on each twelve months anniversary after the Vesting Commencement Date, such that 100% of the Awarded Stock shall vest five (5) years from the Vesting Commencement Date.

          Forfeiture:

          Upon the date that you cease to be a Service Provider, for any reason, all unvested Awarded Stock shall be forfeited and revert to the Plan.

-24-

IV.          AGREEMENT

          A.          Grant of Award.  The Plan Administrator of the Company hereby grants to the Awardee named in the Notice of Grant attached as Part I of this Agreement (the “Awardee”) an award (the “Award”) of the number of Shares, as set forth in the Notice of Grant, subject to the terms and conditions of the Plan, which is incorporated herein by reference.  Subject to Section 16(c) of the Plan, in the event of a conflict between the terms and conditions of the Plan and the terms and conditions of this Award Agreement, the terms and conditions of the Plan shall prevail.

          B.          Purchase Price. There is no purchase price for the Awarded Stock.  The Awardee’s performance of services for the Company shall be the consideration rendered for the Awarded Stock.

          C.          Restrictions with Respect to Awarded Stock. 

                        (i)  Restrictions.  The Awarded Stock granted hereunder and any interest therein, may not be sold, transferred, pledged, hypothecated, assigned or otherwise disposed of, except by will or the laws of descent and distribution, prior to the lapsing of restrictions set forth in the Plan and this Award Agreement.  Any attempt to dispose of any Awarded Stock in contravention of any such restrictions shall be null and void and without effect. 

                        (ii)  Restricted Period; Lapse of Restrictions.  Except as otherwise provided in the Plan or this Award Agreement, the restrictions set forth in Paragraph C(i) shall lapse with respect to the number of Awarded Shares vesting in accordance with the vesting schedule set forth in the Notice of Grant, so long as the Grantee continues to be a Service Provider to the Company or any Subsidiary as of each such vesting date.

          D.          Form of Restricted Stock.  The Company may, in its discretion, reflect ownership of Awarded Stock through the issuance of stock certificates, in book-entry form or any combination thereof.

          E.          Vesting; Unrestricted Shares.  Promptly after each vesting date relating to the Awarded Stock without forfeiture, and provided that the Awardee shall have complied with his or her obligations under Paragraph I hereof, the Company shall, with respect to such vested shares:

                        If such vested shares were initially issued in certificated form, issue to the Awardee or the Awardee’s personal representative a stock certificate representing a number of shares of Common Stock of the Company, free of the restrictive legend described in Paragraph G, equal to the number of shares of Awarded Stock with respect to which such restrictions have lapsed.  If certificates representing such Awarded Stock shall have theretofore been delivered to the Awardee, such certificates shall be returned to the Company, complete with any necessary signatures or instruments of transfer prior to the issuance by the Company of such unlegended shares of Common Stock; or

                        If such Awarded Stock was initially issued in book-entry form, transfer such unlegended shares to the Awardee in the form and registration as requested by the Awardee.

          F.          Rights as a Shareholder.  Subject to the restrictions set forth in the Plan and this Award Agreement, the Awardee shall possess all incidents of ownership with respect to the Awarded Stock granted hereunder, including the right to vote such Awarded Stock and the right to receive dividends with respect to such Awarded Stock; provided however, that extraordinary or non-cash dividends shall be subject to the same restrictions that apply to the underlying Awarded Stock.

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          G.          Certificate; Restrictive Legend.  Any certificate issued for Awarded Stock prior to the lapse of any outstanding restrictions relating thereto shall be inscribed with the following legend, or such other legend as determined by the Administrator:

	
  
 
  	
  
             THIS   CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE   TERMS AND CONDITIONS, INCLUDING FORFEITURE PROVISIONS AND RESTRICTIONS   AGAINST TRANSFER (THE “RESTRICTIONS”), CONTAINED IN THE TRIMBLE NAVIGATION   LIMITED  2002 STOCK PLAN AND THE STOCK   AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE   COMPANY.  ANY ATTEMPT TO DISPOSE OF   THESE SHARES IN CONTRAVENTION OF THE RESTRICTIONS, INCLUDING BY WAY OF SALE,   ASSIGNMENT, TRANSFER, PLEDGE, HYPOTHECATION OR OTHERWISE, SHALL BE NULL AND   VOID AND WITHOUT EFFECT.
  

          H.          Termination as a Service Provider.   Upon the Awardee’s termination as a Service Provider, for any reason, including death or termination due to Disability, prior to the vesting date with respect to any portion of the Awarded Stock granted hereunder, the Awardee shall forfeit any rights to the shares of Awarded Stock that have not vested and shall have no further rights thereto.

          I.           Taxes.    The Company (or Subsidiary, as the case may be) may require the Awardee to remit to the Company (or Subsidiary, as the case may be) in cash an amount sufficient to satisfy any federal, state and local tax withholding requirements related to the Award.  The Awardee may satisfy the foregoing requirement by electing to have the Company reduce the number of shares of unrestricted Common Stock or by delivering to the Company shares of Common Stock already owned by the Awardee for at least 6 months, in each case, having a value equal to the minimum amount of tax required to be withheld.  Such shares shall be valued at their Fair Market Value on the date on which the amount of tax to be withheld is determined, and fractional share amounts shall be settled in cash.  Such an election may be made with
respect to all or any portion of the shares of Common Stock to be delivered pursuant to the Award.  Awardee acknowledges and agrees that the Company may refuse to remove the restrictions with respect to such Shares if such withholding amounts are not satisfied at the time of vesting.

                        The Awardee shall promptly notify the Company of any election made pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended. 

          J.          Adjustments.  The Award and all rights and obligations under this Award Agreement are subject to Section 13 of the Plan.

          K.          Tax Representations.  The Grantee has reviewed with his or her own tax advisors the federal, state, local and foreign tax consequences of the transactions contemplated by this Award Agreement.  The Awardee is relying solely on such advisors and not on any statement or representations of the Company or any of its agents.  The Awardee understands that he or she (and not the Company) shall be responsible for any tax liability that may arise as a result of the transactions contemplated by the Award Agreement. 

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          L.          Entire Agreement; Governing Law.  The Plan is incorporated herein by reference.  The Plan and this Award Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Awardee with respect to the subject matter hereof, and may not be modified adversely to the Awardee’s interest except by means of a writing signed by the Company and Awardee.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of the state of California.

          M.         NO GUARANTEE OF CONTINUED SERVICE.

                        AWARDEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN AWARD OR RECEIVING SHARES HEREUNDER).  AWARDEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH AWARDEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE AWARDEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

          By Awardee’s signature and the signature of the Company’s representative below, Awardee and the Company agree that this Award is granted under and governed by the terms and conditions of the Plan and this Award Agreement.  Awardee has reviewed the Plan and this Award Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Award Agreement and fully understands all provisions of the Plan and Award Agreement.  Awardee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and Award Agreement.  Awardee further agrees to notify the Company upon any change in the residence address indicated below.

	
  
AWARDEE:
  	
  
 
  	
  
TRIMBLE   NAVIGATION LIMITED
  
	
   
  	
  
 
  	
  
 
  
	
  

  	
  
 
  	
  

  
	
  
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