Document:

exhibit_1001.htm

    
       

       

      
          

        
          Exhibit
10.01

        

      

    

    

    

    

    

    

    

    

    

    

    

    AMENDED
AND RESTATED

    EASTMAN
EXECUTIVE DEFERRED COMPENSATION PLAN

    

    (As
Amended and Restated Effective as of December 31, 2008)

    

    

    

    

    

    

    

    EASTMAN
CHEMICAL COMPANY

    

    
      
         

      

      
          46

        
          

        

      

      
         

      

    

    

    AMENDED
AND RESTATED

    EASTMAN
EXECUTIVE DEFERRED COMPENSATION PLAN

    TABLE OF
CONTENTS

    

    

    
      	
              Section

            	
              Title

            	
              Page

            
	
              Preamble

            	 
      	
              48

            
	
              Section
      1.

            	
              Definitions

            	
              48

            
	
              Section
      2.

            	
              Deferral
      of Compensation

            	
              51

            
	
              Section
      3.

            	
              Time
      of Electionof Deferral

            	
              52

            
	
              Section
      4.

            	
              Hypothetical
      Investments

            	
              52

            
	
              Section
      5.

            	
              Deferrals
      and Crediting Amounts to Accounts

            	
              52

            
	
              Section
      6.

            	
              Deferral
      Period

            	
              53

            
	
              Section
      7.

            	
              Investment
      in the Stock Account and Transfers Between Accounts

            	
              53

            
	
              Section
      8.

            	
              Payment
      of Deferred Compensation

            	
              55

            
	
              Section
      9.

            	
              Payment
      of Deferred Compensation After Death

            	
              57

            
	
              Section
      10.

            	
              Acceleration
      of Payment for Hardship

            	
              58

            
	
              Section
      11.

            	
              Non-Competition
      and Non-Disclosure Provision

            	
              59

            
	
              Section
      12.

            	
              Participant's
      Rights Unsecured

            	
              59

            
	
              Section
      13.

            	
              No
      Right to Continued Employment

            	
              59

            
	
              Section
      14.

            	
              Statement
      of Account

            	
              59

            
	
              Section
      15.

            	
              Deductions

            	
              59

            
	
              Section
      16.

            	
              Administration

            	
              59

            
	
              Section
      17.

            	
              Amendment

            	
              60

            
	
              Section
      18.

            	
              Governing
      Law

            	
              60

            
	
              Section
      19.

            	
              Change
      in Control

            	
              60

            
	
              Section
      20.

            	
              Compliance
      with SEC Regulations

            	
              60

            
	
              Section
      21.

            	
              Successors
      and Assigns

            	
              60

            

    

    

    

    

    

    
      
         

      

      
         47

        
          

        

      

      
         

      

    

    

    AMENDED
AND RESTATED

    EASTMAN
EXECUTIVE DEFERRED COMPENSATION PLAN

    

    Preamble. This
Amended and Restated Eastman Executive Deferred Compensation Plan is an
unfunded, nonqualified deferred compensation arrangement for eligible employees
of Eastman Chemical Company ("the Company") and certain of its
subsidiaries.  Under this Plan, each Eligible Employee is annually
given an opportunity to defer payment of part of his or her cash
compensation.

    

    This Plan
originally was adopted effective January 1, 1994, amended and restated effective
as of August 1, 2002 and August 1, 2007 and subsequently amended and restated
again effective as of December 31, 2008 in order to comply with Section 409A of
the Internal Revenue Code of 1986, as amended.  As permitted under
guidance issued under Code Section 409A, this Plan does not contain provisions
retroactive to the effective date of Section 409A and guidance thereunder since
the effective date of such legislation.

    

    Section
1.  Definitions.

    

    Section
1.1.  "Account" means the EDCP Account.  The EDCP
Account is further sub-divided into an Interest Account and a Stock Account, and
if applicable, each Interest Account and Stock Account is further sub-divided
into a Grandfathered Account and a Non-Grandfathered Account.

    

    Section
1.2.  "Board" means the Board of Directors of the
Company.

    

    
      	
               
      

            	
              Section
      1.3.  "Change In Control" means a change in control of
      the Company of a nature that would be required to be reported (assuming
      such event has not been "previously reported") in response to Item 1 (a)
      of a Current Report on Form 8-K, as in effect on December 31, 2001,
      pursuant to Section 13 or 15(d) of the Exchange Act; provided that,
      without limitation, a Change In Control shall be deemed to have occurred
      at such time as (i) any "person" within the meaning of Section 14(d) of
      the Exchange Act, other than the Company, a subsidiary of the Company, or
      any employee benefit plan(s) sponsored by the Company or any subsidiary of
      the Company, is or has become the "beneficial owner," as defined in Rule
      13d-3 under the Exchange Act, directly or indirectly, of 25% or more of
      the combined voting power of the outstanding securities of the Company
      ordinarily having the right to vote at the election of directors;
      provided, however, that the following will not constitute a Change In
      Control: any acquisition by any corporation if, immediately following such
      acquisition, more than 75% of the outstanding securities of the acquiring
      corporation ordinarily having the right to vote in the election of
      directors is beneficially owned by all or substantially all of those
      persons who, immediately prior to such acquisition, were the beneficial
      owners of the outstanding securities of the Company ordinarily having the
      right to vote in the election of directors, or (ii) individuals who
      constitute the Board on January 1, 2002 (the "Incumbent Board") have
      ceased for any reason to constitute at least a majority thereof, provided
      that: any person becoming a director subsequent to January 1, 2002 whose
      election, or nomination for election by the Company's stockholders, was
      approved by a vote of at least three-quarters (3/4) of the directors
      comprising the Incumbent Board (either by a specific vote or by approval
      of the proxy statement of the Company in which such person is named as a
      nominee for director without objection to such nomination) shall be, for
      purposes of this Plan, considered as though such person were a member of
      the Incumbent Board, (iii) upon approval by the Company's stockholders of
      a reorganization, merger or consolidation, other than one with respect to
      which all or substantially all of those persons who were the beneficial
      owners, immediately prior to such reorganization, merger or consolidation,
      of outstanding securities of the Company ordinarily having the right to
      vote in the election of directors own, immediately after such transaction,
      more than 75% of the outstanding securities of the resulting corporation
      ordinarily having the right to vote in the election of directors; or (iv)
      upon approval by the Company's stockholders of a complete liquidation and
      dissolution of the Company or the sale or other disposition of all or
      substantially all of the assets of the Company other than to a subsidiary
      of the Company.

            

    

    
      
         

      

      
         
48

        
          

        

      

      
         

      

    

    

    Section
1.4.  “Class Year” means each calendar
year.  Notwithstanding the foregoing, the “2004 Class Year” includes
all amounts deferred into this Plan in 2004 and in any calendar years prior to
2004 plus any earnings accruing to the Participant’s 2004 Class
Year.

    

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

    

    
      	
               
      

            	
              Section
      1.6.  "Common Stock" means the $.01 par value common
      stock of the Company.

            

    

    

    
      	
               
      

            	
              Section
      1.7.  "Company" means Eastman Chemical
      Company.

            

    

    

    
      	
               
      

            	
              Section
      1.8.  "Compensation Committee" shall mean the
      Compensation and Management Development Committee of the
      Board.

            

    

    

    Section
1.9.  "Deferrable Amount" means, for a given fiscal year of the
Company, an amount equal to the sum of the Eligible Employee's (i) annual base
cash compensation; (ii) annual cash payments under the Company's Unit
Performance Plan and any sales incentive plan of the Company in which an
Eligible Employee participates; (iii) stock and stock-based awards under the
Omnibus Plan which, under the terms of the Omnibus Plan and the award, are
payable in cash and required or allowed to be deferred into this Plan; (iv)
signing bonus and/or retention bonus, if any, received in connection with his or
her initial employment with the Company or the acquisition by the Company of
such person's previous employer; and (v) special awards of $15,000 or more, such
as special awards under the Company’s Employee/Team Recognition Program and
Chairman & CEO’s Award Program.  In each case, however, the
Deferrable Amount shall not include any amount that must be withheld from the
Eligible Employee's wages for income or employment tax purposes.

    

    
      	
               
      

            	
              Section
      1.10.  “Disability” means the Participant (i) is, by
      reason of any medically determinable physical or mental impairment that
      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 the Applicable
      Disability Plan (as defined below), or (ii) qualifies for Social Security
      disability benefits.  The “Applicable Disability Plan” shall be
      the group long-term disability insurance plan offered by the Company to
      the Participant at the time of the determination.  If no group
      long-term disability insurance plan is being offered to the Participant at
      the time of such determination, the Participant shall be required to
      satisfy clause (ii) in order to be declared Disabled for purposes of this
      Plan.

            

    

    

    Section
1.11.  “EIP/ESOP” means the Eastman Investment and Employee
Stock Ownership Plan.

    

    Section
1.12.  "Eligible Employee" means a U.S.-based employee of the
Company or any of its U.S. Subsidiaries who at any time has a salary grade
classification of SG-49/SG-105 or above.  Any employee who becomes
eligible to participate in this Plan and in a future year does not qualify as an
Eligible Employee because of a change in position level shall nevertheless be
eligible to participate in such year.

    

    Section
1.13.  “Employee Service Center” means the Company’s internal
organization responsible for processing transactions and providing general
information for Participants under this Plan.

    

    Section
1.14.  "Enrollment Period" means the period designated by
Global Benefits each year, provided however, that such period shall end on or
before the last business day of each year.

    

    Section
1.15.  "Excess Compensation” means the excess, if any, of (1)
an Employee's "Company Compensation" as defined in the EIP/ESOP, over (2) the
applicable dollar amount under Section 401(a)(17) of the Internal Revenue Code
of 1986, as amended, which applies to the EIP/ESOP for a given plan year of the
EIP/ESOP.

    
      
         

      

      
        49 

        
          

        

      

      
         

      

    

    

    Section
1.16.  "Exchange Act" means the Securities Exchange Act of
1934, as amended.

    

    Section
1.17.  “Global Benefits” shall mean the Company’s internal
organization responsible for the administration of the payment of benefits under
this Plan.

    

    
      	
               
      

            	
              Section
      1.18.  “Grandfathered Account” means the value of the
      Account of each Participant on December 31, 2004, including (i) the amount
      of the Participant’s ESOP or RSC allocation for 2004, if any, even if such
      amount had not been credited to a Participant’s Account as of December 31,
      2004, and (ii) any earnings accruing to the Participant’s Grandfathered
      Account.   For purposes of this Plan, no part of the
      Participant’s Grandfathered Account shall be subject to Code Section 409A,
      including the 6 month delay required under Section 8.3 of this
      Plan.  For purposes of this Plan, the “Non-Grandfathered
      Account” shall equal the Participant’s Account balance on the date of the
      Participant’s Termination of Employment, minus the amount of the
      Participant’s Grandfathered Account.  The Non-Grandfathered
      Account shall be subject to Code Section
409A.

            

    

    

    Section
1.19.  “Hardship” means an emergency event beyond the
Participant’s control which would cause the Participant severe financial
hardship if the payment of amounts from his or her Accounts were not
approved.  Any distribution for Hardship shall be limited to amounts
in a Participant’s Grandfathered Account.

    

    Section
1.20.  “Initial Enrollment Period” means, for an Eligible
Employee who is newly employed by the Company, the period beginning prior to
such date of employment and ending 30 days after the date of
employment.  For a person who becomes an employee of the Company or a
U.S. Subsidiary through an acquisition by the Company of such person's previous
employer, "Initial Enrollment Period" with respect to deferral of any signing
bonus or retention bonus payable to such person shall mean the period beginning
prior to such date of acquisition, and ending 30 days after such date of
acquisition.  An Eligible Employee who is rehired by the Company may
not enroll during the Initial Enrollment Period if he or she was eligible to
participate in this Plan at any time during the twenty-four (24) month period
prior to his or her rehire.

    

    Section
1.21.  "Interest Account" means the account established by the
Company for each Participant for compensation deferred or Excess Contribution
amounts credited pursuant to this Plan and which shall bear interest as
described in Section 4.1 below.  The maintenance of individual
Interest Accounts is for bookkeeping purposes only.  If applicable,
each Interest Account shall be further sub-divided into a Grandfathered Account
and Non-Grandfathered Account.

    

    Section
1.22.  "Interest Rate" means the monthly average of bank prime
lending rates to most favored customers as published in The Wall Street Journal,
such average to be determined as of the last day of each month.

    

    Section
1.23.  "Market Value" means the closing price of the shares of
Common Stock on the New York Stock Exchange on the day on which such value is to
be determined or, if no such shares were traded on such day, said closing price
on the next business day on which such shares are traded, provided, however,
that if at any relevant time the shares of Common Stock are not traded on the
New York Stock Exchange, then "Market Value" shall be determined by reference to
the closing price of the shares of Common Stock on another national securities
exchange, if applicable, or if the shares are not traded on an exchange but are
traded in the over-the-counter market, by reference to the last sale price or
the closing "asked" price of the shares in the over-the-counter market as
reported by the National Association of Securities Dealers Automated Quotation
System (NASDAQ) or other national quotation service.

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    

    Section
1.24.  "Omnibus Plan" means the Eastman Chemical Company 1994
Omnibus Long-Term Compensation Plan or any successor plan to the Omnibus Plan
providing for awards of stock and stock-based compensation to Company
employees.

    

    Section
1.25.  "Participant" means an Eligible Employee who (i) elects
for one or more years to defer compensation pursuant to this Plan; or (ii)
receives an ESOP or RSC allocation under Section 2.2 of this Plan.

    

    
      	
               
      

            	
              Section
      1.26.  "Plan" means this Amended and Restated Eastman
      Executive Deferred Compensation
Plan.

            

    

    

    
      	
               
      

            	
              Section
      1.27.  "Section 16 Insider" means a Participant who is,
      with respect to the Company, subject to the reporting requirements of
      Section 16 of the Exchange Act.

            

    

    

    Section
1.28.  "Stock Account" means the account established by the
Company for each Participant, the performance of which shall be measured by
reference to the Market Value of Common Stock.  The maintenance of
individual Stock Accounts is for bookkeeping purposes only.  If
applicable, each Stock Account shall be further sub-divided into a Grandfathered
Account and Non-Grandfathered Account.

    

    Section
1.29.  “Termination of Employment” means a separation from
service under Code Section 409A and the Final 409A Regulations.

    

    Section
1.30.  “Unforeseeable Emergency” means severe financial
hardship of the Participant resulting from an illness or accident of the
Participant, the Participant’s spouse, the Participant’s beneficiary or a
dependent (as defined in Section 152 of the Code without regard to Section
152(b)(1), (b)(2), and (d)(1)(B)), loss of the Participant’s property due to
casualty (including the need to rebuild a home not otherwise covered by
insurance), or other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the
Participant.  Except as otherwise provided herein, the purchase of a
home and the payment of college tuition are not unforeseeable emergencies. Any
distribution for an Unforeseeable Emergency shall be limited to amounts in a
Participant’s Non-Grandfathered Account.

    

    Section
1.31.  "U.S. Subsidiaries" means the United States subsidiaries
of the Company listed on Schedule A.

    

    
      	
               
      

            	
              Section
      1.32.  "Valuation Date" means each business
      day.

            

    

    

    Section
2.                      Deferral of Compensation;
Allocations.

    

    Section
2.1.  An Eligible Employee may elect to defer receipt of all or
any portion of his or her Deferrable Amount to the Interest Account and/or Stock
Account within such person's EDCP Account for the applicable Class
Year.  A Participant may make deferrals under this Plan regardless of
whether the Participant elects deferrals under the EIP/ESOP for that Class
Year.  If an Eligible Employee terminates employment with the Company
and all of its U.S. Subsidiaries, any previous Class Year deferral election and
distribution election with respect to a payment or award under the Company's
Unit Performance Plan, the Company's Omnibus Plan, and any sales incentive plan
of the Company in which an Eligible Employee participates, shall remain in
effect with respect to such items of compensation payable after Termination of
Employment in the absence of a valid election for the first Class Year occurring
after the Eligible Employee’s Termination.

    
      
         

      

      
        51 

        
          

        

      

      
         

      

    

    

    Section
2.2.                                For
any Plan Year in which an Eligible Employee has Excess Compensation, then at
such time, if any, as the Company makes a contribution to the EIP/ESOP with
respect to such Plan Year, the Company shall credit to the Eligible Employee's
Stock Account within his EDCP Account under this Plan, an amount equal to the
product of (1) the amount of such Eligible Employee's Excess Compensation
multiplied by (2) the ESOP or RSC Payout Percentage (the “ESOP/RSC
allocation”).

    

    Section
3.                      Deferral
Elections.

    

    An
Eligible Employee who wishes to defer compensation must irrevocably elect to do
so during the applicable Enrollment Period. The Enrollment Period shall end
prior to the first day of the service year with respect to the applicable
Deferrable Amount. The “service year” is the Eligible Employee’s taxable year in
which the services related to the Deferrable Amount will be performed by the
Eligible Employee. Elections shall be made annually for each Class
Year.

    

    Notwithstanding
the foregoing, (i) in the first year in which a person becomes an Eligible
Employee by reason of being employed by the Company, the Eligible Employee may
elect to defer receipt of all or any portion of his or her Deferrable Amount
earned for services to be performed subsequent to such election, provided that
such election is made no later than the end of the Initial Enrollment Period;
(ii) in the first year in which a person becomes an Eligible Employee through an
acquisition by the Company of such person's previous employer, the Eligible
Employee may elect to defer receipt of all or any portion of his or her signing
bonus and/or retention bonus paid to such Eligible Employee by the Company,
provided that (x) the deferred amount represents compensation for services to be
performed subsequent to such election, and (y) such election is made no later
than the end of the Initial Enrollment Period.

    

    Section
4.                      Hypothetical
Investments.

    

    Section 4.
1.  Interest
Accounts.  Amounts in a Participant's Interest Accounts are
hypothetically invested in an interest bearing account which bears interest
computed at the Interest Rate, compounded monthly.

    

    Section
4.2.  Stock
Accounts.  Amounts in a Participant's Stock Accounts are
hypothetically invested in units of Common Stock.  Amounts deferred
into Stock Accounts are recorded as units of Common Stock, and fractions thereof
with one unit equating to a single share of Common Stock.  Thus, the
value of one unit shall be the Market Value of a single share of Common
Stock.  The use of units is merely a bookkeeping convenience; the
units are not actual shares of Common Stock.  The Company will not
reserve or otherwise set aside any Common Stock for or to any Stock
Account.

    

    Section
5.  Deferrals and Crediting
Amounts to Accounts.

    

    Section
5.1.  Manner of Electing
Deferral.  An Eligible Employee may elect to defer compensation
by completing the deferral election process established by Global
Benefits.   For each Class Year, each Eligible Employee shall
elect, in the manner specified by Global Benefits (i) the amount and sources of
Deferrable Amount to be deferred; (ii) whether deferral of annual base cash
compensation is to be at the same rate throughout the year, or at different
rates for each calendar quarter of the year; (iii) the portion of the deferral
to be credited to the Participant's Interest Account and Stock Account
respectively; and (iv) the manner of payment.  An election to defer
compensation shall be irrevocable following the end of the applicable Enrollment
Period, but the portion of the deferral to be credited to the Participant's
Interest Account and Stock Account, respectively, may be reallocated by the
Participant in the manner specified by Global Benefits or its authorized
designee through and including the business day immediately preceding the date
on which the deferred amount is credited to the Participant's Accounts pursuant
to Section 5.2.

    
      
         

      

      
        52 

        
          

        

      

      
         

      

    

    

    Section
5.2.  Crediting of Amounts to
Accounts.  Except as otherwise provided in this Section with
respect to Section 16 Insiders, amounts to be deferred each Class Year shall be
credited to the Participant's Interest Account and/or Stock Account, as
applicable, within the EDCP Account as of the date such amounts are otherwise
payable.  An ESOP/RSC allocation which is made pursuant to Section 2.2
shall be credited to the Participant's Stock Account within the EDCP Account as
of the date the Company makes the contribution to the EIP/ESOP which triggers
the ESOP/RSC allocation under this Plan provided the Participant is employed by
the Company on the ESOP/RSC allocation date.  In the event a
Participant entitled to an ESOP/RSC allocation is not employed on the ESOP/RSC
allocation date, such payment shall be made in cash to the Participant by the
Company.  Notwithstanding the foregoing, for each Section 16 Insider,
each and every Deferrable Amount, when initially credited to the Participant's
EDCP Account, shall be held in a Participant's Interest Account until the next
date that dividends are paid on Common Stock (see Section 7.6 of this Plan), and
on such date the Deferrable Amount that would have been initially credited to
the Participant's Stock Account but for this sentence shall be transferred,
together with allocable interest thereon, to the Participant's Stock Account,
provided that such transfer shall be subject to the restrictions set forth in
Section 7.2.

    

    Section
6.  Deferral Period.
Subject to Sections 9, 10, and 19 hereof, the amounts credited to a
Participant's Accounts and earnings thereon will be deferred until the
Participant dies, becomes Disabled or has a Termination of Employment with the
Company and all of its U.S. Subsidiaries.  Any such election shall be
made during the applicable Enrollment Period on the deferred compensation form
referenced in Section 5 above.  The payment of a Participant's Account
shall be governed by Sections 8, 9, 10, and 19, as applicable.

    

    Section
7.  Investment in the Stock
Account and Transfers Between Accounts.

    

    Section
7.1.  Election Into the Stock
Account.  Amounts to be credited to a Participant's Stock
Account, whether by reason of a deferral election by the Participant or an ESOP
allocation by the Company, shall be credited, as of the date described in
Section 5.2, with that number of units of Common Stock, and fractions thereof,
obtained by dividing the dollar amount to be credited into the respective Stock
Account by the Market Value of the Common Stock as of such date.

    

    Section
7.2.  Transfers Between
Accounts.  Except as otherwise provided in this Section, a
Participant may direct that all or any portion, designated as a whole dollar
amount, of the existing balance of his or her Interest or Stock Account be
transferred to the other Account, effective as of (i) the date such election is
made, if and only if such election is made prior to the close of trading on the
New York Stock Exchange on a day on which the Common Stock is traded on the New
York Stock Exchange, or (ii) if such election is made after the close of trading
on the New York Stock Exchange on a given day or at any time on a day on which
no sales of Common Stock are made on the New York Stock Exchange, then on the
next business day on which the Common Stock is traded on the New York Stock
Exchange (the date described in (i) or (ii), as applicable, is referred to
hereinafter as the election's "Effective Date").

    

    Such
election shall be made in the manner specified by the Committee or its
authorized designee; provided however, that a Section 16 Insider may only elect
to transfer between his or her Accounts if he or she has made no election within
the previous six months to effect an "opposite way" fund-switching (i.e., transfer out
versus transfer in) transfer into or out of the Stock Account or the Eastman
Stock Funds of the Eastman Investment and Employee Stock Ownership Plan, or any
other "opposite way" intra-plan transfer or plan distribution involving a
Company equity securities fund which constitutes a "Discretionary Transaction"
as defined in Rule 16b-3 under the Exchange Act.  A Participant's election
to transfer less than all of the funds in his or her Interest Accounts to his or
her Stock Accounts shall be applied pro rata to the Interest Account in the
Participant's EDCP Account.  The same procedure shall be followed if
the Participant elects to transfer less than all of the funds in his or her
Stock Accounts to his or her Interest Accounts.

    
      
         

      

      
        53 

        
          

        

      

      
         

      

    

    

    In
addition, and notwithstanding the foregoing, a Section 16 Insider's Deferrable
Amount that is initially allocated to his or her Interest Account as provided in
Section 5.2, shall be transferred, following such initial allocation, from the
Participant's Interest Account to his or her Stock Account in the manner
provided in Section 5.2.

    

    Section
7.3.  Transfer Into the Stock
Account.  If a Participant elects pursuant to Section 7.2 to
transfer an amount from his or her Interest Accounts to his or her Stock
Accounts, then, effective as of the election's Effective Date, his or her Stock
Accounts shall be credited with that number of units of Common Stock; and
fractions thereof, obtained by dividing the dollar amount elected to be
transferred by the Market Value of the Common Stock on the Valuation Date
immediately preceding the election's Effective Date; and (ii) his or her
Interest Accounts shall be reduced by the amount elected to be
transferred.

    

    Section
7.4.  Transfer Out of the Stock
Account.  If a Participant elects pursuant to Section 7.2 to
transfer an amount from his or her Stock Accounts to his or her Interest
Account, effective as of the election's Effective Date; (i) his or her Interest
Accounts shall be credited with a dollar amount equal to the amount obtained by
multiplying the number of units to be transferred by the Market Value of the
Common Stock on the Valuation Date immediately preceding the election's
Effective Date; and (ii) his or her Stock Accounts shall be reduced by the
number of units elected to be transferred.

    

    Section
7.5.  Dividend
Equivalents.  Effective as of the payment date for each cash
dividend on the Common Stock, the Stock Accounts of each Participant who had a
balance in his or her Stock Accounts on the record date for such dividend shall
be credited with a number of units of Common Stock, and fractions thereof,
obtained by dividing (i) the aggregate dollar amount of such cash dividend
payable in respect of such Participant's Stock Accounts (determined by
multiplying the dollar value of the dividend paid upon a single share of Common
Stock by the number of units of Common Stock held in the Participant's Stock
Accounts on the record date for such dividend); by (ii) the Market Value of the
Common Stock on the Valuation Date immediately preceding the payment date for
such cash dividend.

    

    Section
7.6.  Stock
Dividends.  Effective as of the payment date for each stock
dividend on the Common Stock, additional units of Common Stock shall be credited
to the Stock Accounts of each Participant who had a balance in his or her Stock
Accounts on the record date for such dividend.  The number of units
that shall be credited to the Stock Account of such a Participant shall equal
the number of shares of Common Stock and fractions thereof, which the
Participant would have received as stock dividends had he or she been the owner
on the record date for such stock dividend of the number of shares of Common
Stock equal to the number of units credited to his or her Stock Accounts on such
record date.

    

    Section
7.7.  Recapitalization.  If,
as a result of a recapitalization of the Company, the outstanding shares of
Common Stock shall be changed into a greater number or smaller number of shares,
the number of units credited to a Participant's Stock Accounts shall be
appropriately adjusted on the same basis.

    

    Section
7.8.  Distributions.  Amounts
in respect of units of Common Stock may only be distributed out of the Stock
Accounts by transfer to the Interest Accounts (pursuant to Sections 7.2 and 7.4
or 7.10) or withdrawal from the Stock Accounts (pursuant to Sections 8, 9, 10,
or 19), and shall be distributed in cash.  The number of units to be
distributed from a Participant's Stock Accounts shall be valued by multiplying
the number of such units by the Market Value of the Common Stock as of the
Valuation Date immediately preceding the date such distribution is to
occur.  Pending the complete distribution under Section 8.2 or
liquidation under Section 7.10 of the Stock Accounts of a Participant who has
terminated his or her employment with the Company or any of its U.S.
Subsidiaries, the Participant shall continue to be able to make elections
pursuant to Sections 7.2, 7.3, and 7.4 and his or her Stock Accounts shall
continue to be credited with additional units of Common Stock pursuant to
Sections 7.5, 7.6,   and 7.7.

    
      
         

      

      
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    Section
7.9.  Responsibility for
Investment Choices.  Each Participant is solely responsible for
any decision to defer compensation into his or her EDCP Stock Account, and to
retain in his or her ESOP Stock Account any amounts credited thereto, and to
transfer amounts to and from his or her Stock Accounts. Each Participant accepts
all investment risks entailed by such decision, including the risk of loss and a
decrease in the value of the amounts he or she elects to transfer into his or
her Stock Accounts.

    

    Section
7.10.  No Reinvestment in Stock
Accounts after Termination of Employment.  Once a Participant
has had a Termination of Employment with the Company and all of its U.S.
Subsidiaries, a Participant may, until his Account is fully distributed and
pursuant to the rules of this Plan, elect to liquidate units of the Stock
Accounts and transfer such value to the Interest Accounts, but the Participant
may not transfer any funds from the Interest Accounts into the Stock
Accounts.  For purposes of valuing the units of Common Stock subject
to such a transfer, the approach described in Section 7.8 shall be
used.

    

    Section
8.  Payment of Deferred
Compensation.

    

    Section
8.1.  Background.  No
withdrawal may be made from a Participant's Accounts except as provided in this
Section 8 and Sections 9, 10, and 19.

    

    Section
8.2.  Manner of
Payment.  Payment of a Participant's Account shall be made in a
single lump sum or annual installments, as elected by the Participant pursuant
to this Section 8 for each Class Year.  The maximum number of annual
installments is ten.  If a Participant elects installments, the amount
of each payment shall be equal to the value, as of the preceding Valuation Date,
of the Participant’s Class Year Account, divided by the number of installments
remaining to be paid.  All payments from this Plan shall be made in
cash.

    

    Section
8.3.  Timing of
Payments.

    

    (a)       Subject
to Sections 8.3(b), 8.3(c) and 8.3(d), payments shall commence in the year
elected by the Participant pursuant to this Section 8, up through the tenth year
following the year in which the Participant becomes Disabled or has a
Termination of Employment from the Company and all of its U.S. Subsidiaries, but
in no event may a Participant elect to have payments commence later than the
year the Participant reaches age 71.  If payment is due from a
Participant’s Grandfathered Account in a lump sum, such payment shall be made on
the first business day of the second month following the Participant’s
Termination of Employment.  If payment is due from a Participant’s
Grandfathered Account in installments, payments shall begin on the first
business day of the second month following the Participant’s Termination of
Employment and the remaining installment payments shall be made on each
anniversary of the Participant’s first installment payment.

    

    (b)       If
payment is due from this Plan on account of Termination of Employment (but not
death or Disability) and  payment is due in a lump sum, the
Participant’s right to receive such payment will be delayed until the earlier of
the Participant’s death, Disability or the first business day of the seventh
month following the date of the Participant’s Termination of Employment (subject
to the exceptions specified in the Final 409A Regulations).  This
Section 8.3(b) shall not apply to any portion of the Participant’s Grandfathered
Account.

    

    (c)       If
payment(s) are due from this Plan on account of Termination of Employment (but
not death or Disability) and payments are due in annual installments, the
Participant’s right to begin to receive such payments will be delayed until the
earlier of the Participant’s death, Disability or the first business day of the
seventh month following the date of the Participant’s Termination of Employment
(subject to the exceptions specified in the Final 409A Regulations) and the
remaining installment payments will be paid on the anniversary of the
Participant’s first installment payment.  For purposes of this Plan,
each installment payment is considered to be a separate payment.  This
Section 8.3(c) shall not apply to any portion of the Participant’s Grandfathered
Account.

    
      
         

      

      
        55 

        
          

        

      

      
         

      

    

    

    (d)       If
payment(s) are due from this Plan on account of Disability, and payments are due
in annual installments, payments from the Participant’s Grandfathered Account
and Non-Grandfathered Account shall commence no later than the first business
day of the second month following the Participant’s Termination of Employment
and the remaining installment payments will be paid on each anniversary of the
initial payment.  If payment is due from this Plan on account of
Disability in a lump sum, payment from the Participant’s Grandfathered Account
and Non-Grandfathered Account shall be made to the Participant on the first
business day of the second month following the Participant’s Termination of
Employment.

    

    Section
8.4.  Valuation.   The
amount of each payment shall be equal to the value, as of the preceding
Valuation Date, of the Participant's Accounts, divided by the number of
remaining payments to be paid.  If payment of a Participant's Accounts
is to be paid in installments and the Participant has a balance in his or her
Stock Account at the time of the payment of an installment, the amount that
shall be distributed from his or her Stock Account shall be the amount obtained
by multiplying the total amount of the installment determined in accordance with
the immediately preceding sentence by the percentage obtained by dividing the
balance in the Stock Account as of the immediately preceding Valuation Date by
the total value of the Participant's Accounts as of such
date.  Similarly, in such case, the amount that shall be distributed
from the Participant's Interest Account shall be the amount obtained by
multiplying the total amount of the installment determined in accordance with
the first sentence of this Section 8.4 by the percentage obtained by dividing
the balance in the Interest Account as of the immediately preceding Valuation
Date by the total value of the Participant's Accounts as of such
date.

    

    Section
8.5.  Participant Payment
Elections.  An election by a Participant concerning the method
of payment under Section 8.2 or the commencement of payments under Section 8.3
for his or her 2004 Class Year account must be made at least one (1) year before
the Participant's Termination of Employment, and must be made during the
Enrollment Period in the manner specified by Global Benefits.  An
election by a Participant concerning the method of payment under Section 8.2 or
the commencement of payments under Section 8.3 for his or her 2005 or later
Class Year accounts, must be made during the Enrollment Period which ends prior
to the first day of the service year with respect to the Deferrable Amount
subject to the election.  Changes to elections for a Participant’s
2005 or later Class Year accounts must comply with Section 8.6.

    

    Section
8.5A.  Default Payment Distribution
Elections.

    

    (a)   If
a Participant does not have a valid election in force at the time of Termination
of Employment for any Class Year beginning in 2005 or later, then (i) if the
value of his aggregate Accounts (Grandfathered and Non-Grandfathered) as of the
last Valuation Date of the calendar year in which he has a Termination of
Employment is less than ten thousand dollars ($10,000), then the value of his
Class Year Account(s) for which a valid distribution election does not exist
shall be paid in a single lump sum to the Participant on the first business day
of the seventh month following the Participant’s Termination of Employment date;
and (ii) if the aggregate value of his Accounts (Grandfathered and
Non-Grandfathered) as of the last Valuation Date of the calendar year in which
he has a Termination of Employment is ten thousand dollars ($10,000) or more,
then the value of his Class Year Account(s) for which a valid distribution
election does not exist shall be paid in five (5) annual installments beginning
on the first business day of the seventh month following the Participant’s
Termination of Employment date with the remaining installments paid to the
Participant on each anniversary of the initial payment.

    
      
         

      

      
        56 

        
          

        

      

      
         

      

    

    

    (b)    If
a Participant does not have a valid election in force at the time of Termination
of Employment for his 2004 Class Year account, then (i) if the value of his
aggregate Accounts (Grandfathered and Non-Grandfathered) as of the last
Valuation Date of the calendar year in which he has a Termination of Employment
is less than ten thousand dollars ($10,000), then the value of his 2004 Class
Year Account shall be paid in a single lump sum to the Participant on the first
business day of the month following the Participant’s Termination of Employment
date; and (ii) if the aggregate value of his Accounts (Grandfathered and
Non-Grandfathered) as of the last Valuation Date of the calendar year in which
he has a Termination of Employment is ten thousand dollars ($10,000) or more,
then the value of his 2004 Class Year Account shall be paid in ten
(10)  annual installments beginning on the first business day of the
month following the Participant’s Termination of Employment date with the
remaining installments paid to the Participant on each  anniversary of
the initial payment.

    

    This
Section 8.5A shall apply regardless of the Participant’s age on the date of his
Termination of Employment.

    

    Section
8.6.  Special Payment Election
Rules.

    

    (a)  
Notwithstanding Sections 8.2, 8.3, 8.5 and 8.5A, if a Participant terminates
employment less than one (1) year after the date he first becomes eligible to
participate in this Plan, then an election made by the Participant under this
Section 8 no later than thirty (30) days after the date he first becomes
eligible to participate in this Plan shall be valid.

     

    
      (b) 
The timing of a distribution of a Participant’s Non-Grandfathered Account may
not be accelerated, except in the event of an Unforeseeable Emergency or other
permissible acceleration of distribution under Treas. Reg. Section
1.409A-3(j)(4)(iii) (conflicts of interest), (j)(4)(vi) (payment of employment
taxes), (j)(4)(vii) (payment upon income inclusion under Section 409A),
(j)(4)(ix) (plan terminations and liquidation), (j)(4)(xi) (payment of state,
local or foreign taxes), (j)(4)(xiii) (certain offsets) and (i)(4)(xiv) (bona
fide disputes).

    

     

    
      (c) 
 Any change which delays the timing of distributions or changes the form of
distributions from a Participant’s Non-Grandfathered Account may be made only if
the following requirements are met:

    

     

    
      
      

    

    (i)   Any
election to change the time and form of distribution may nottake effect until at
least 12 months after the date on which the election ismade;

     

    (ii)  Other
than in the event of death, the first payment with respect to the election
described in (i) above, must be deferred for a period of at least 5 years from
the date such payment otherwise would have been made; and

     

    (iii)  Any
election related to a payment to be made at a specified time may not be made
less than 12 months prior to the date of the first scheduled
payment.

     

    Any
election to change the time or form of distribution from a Participant’s
Grandfathered Account must be in effect at least 12 months before the
Participant’s Termination of Employment in order to be valid.

     

    Section
9.  Payment of Deferred
Compensation After Death.  If a Participant dies prior to
complete payment of his or her Accounts, the balance of such Accounts, valued as
of the Valuation Date immediately preceding the date payment is made, shall be
paid in a single, lump sum Payment to:  (i) the beneficiary or
contingent beneficiary designated by the Participant in accordance with
procedures established by Global Benefits and such lump sum shall be paid no
later than ninety (90) days after the Employee Service Center is notified of the
Participant’s death, (ii) in the absence of a valid designation of a beneficiary
or contingent beneficiary, the Participant's estate within 30 days after
appointment of a legal representative of the deceased
Participant.

    
      
         

      

      
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    Section
10.  Acceleration of Payment for
Hardship or Unforeseeable Emergency.

    

    Section
10.1.    Hardship or Unforeseeable
Emergency.  Hardship distributions shall be limited to amounts
in a Participant’s Grandfathered Account and distributions for an Unforeseeable
Emergency shall be limited to amounts in a Participant’s Non-Grandfathered
Account. Upon written approval from the Company's Senior Vice President and
Chief Administrative Officer (“Senior VP & CAO), with respect to
Participants other than executive officers of the Company, and by the
Compensation Committee, with respect to Participants who are executive officers
of the Company, and subject to the restrictions in the next two sentences, a
Participant, whether or not he or she is still employed by the Company or any of
its U.S. Subsidiaries, may be permitted to receive all or part of his or her
Accounts if the Company's Senior VP & CAO (or his delegate), or the
Compensation Committee, as applicable, determines that the Participant has
suffered a Hardship or Unforeseeable Emergency.  The amount
distributed may not exceed the amount necessary to satisfy the Hardship or
Unforeseeable Emergency plus amounts necessary to pay taxes reasonably
anticipated as a result of the distribution, after taking into account the
extent to which such Hardship or Unforeseeable Emergency is or may be relieved
through reimbursement or compensation by insurance or otherwise by liquidation
of the Participant’s assets (to the extent the liquidation of such assets would
not itself cause severe financial hardship).

    

    Section
10.2.     Other
Payments.  Any participant in this Plan may at his or her
discretion withdraw at any time all or part of that person's Grandfathered
Account Balance under this Plan; provided, if this option is exercised the
individual will forfeit to the Corporation 10% of his or her aggregate
Grandfathered Account Balance, and will not be permitted to make deferrals to or
receive ESOP or RSC allocations under this Plan for a period of 36 months
beginning on the first day of the plan year following the plan year which
includes the date any payment to a Participant is made under this
section.

    

    Section
10.3.     Accelerated Payment.
If under this Plan one-half or more of the Participants with a Grandfathered
Account, or one-fifth or more of the Participants with a Grandfathered Account
with one-half or more of the value of all benefits owed exercise their option
for immediate distribution in any consecutive six-month period, this will
trigger immediate payment to all Participants of all benefits owed under the
terms of this Plan from Grandfathered Accounts, immediate payout under this
section will not involve reduction of the amounts paid to Participants as set
forth in section 10.2.  Any individual that has been penalized in this
six-month period for electing immediate withdrawal will be paid that penalty,
and continuing participation will be allowed, if payout to all Participants
under this section occurs.  Solely for purposes of this Section 10.3,
“benefits” shall refer to amounts held in Grandfathered Accounts under this
Plan.

    

    Section
10.4.     Section 16
Insiders.  A Section 16 Insider may only receive a withdrawal
from his or her Stock Account pursuant to this Section 10 if he or she has made
no election within the previous six months to effect a fund-switching transfer
into the Stock Account or the Eastman Stock Fund of the Eastman Investment Plan
or any other "opposite way" intra-plan transfer into a Company equity securities
fund which constitutes a "Discretionary Transaction" as defined in Rule 16b-3
under the Exchange Act.  If such a distribution occurs while the
Participant is employed by the Company or any of its U.S. Subsidiaries, any
election to defer compensation for the year in which the Participant receives a
withdrawal shall be ineffective as to compensation earned for the pay period
following the pay period during which the withdrawal is made and thereafter for
the remainder of such year and shall be ineffective as to any other compensation
elected to be deferred for such year.

    

    Section
10.5.     EDCP
Elections.  A Participant's election to withdraw less than all
of the funds in his or her Account under Sections 10.1 or 10.2 above shall be
applied pro rata to all of the Participant's sub-accounts under this Plan (i.e.,
to the two investment accounts under the EDCP Account.

    
      
         

      

      
        58 

        
          

        

      

      
         

      

    

    

    Section
11.  Non-Competition and
Non-Disclosure Provision. Participant will not, without the written
consent of the Company, either during his or her employment by Company or any of
its U.S. Subsidiaries or thereafter, disclose to anyone or make use of any
confidential information which he or she has acquired during his or her
employment relating to any of the business of the Company or any of its
subsidiaries, except as such disclosure or use may be required in connection
with his or her work as an employee of Company or any of its U.S.
Subsidiaries.  During Participant's employment by the Company or any
of its U.S. Subsidiaries, and for a period of two years after the termination of
such employment, he or she will not, without the written consent of the Company,
either as principal, agent, consultant, employee or otherwise, engage in any
work or other activity in competition with the Company in the field or fields in
which he or she has worked for the Company or any of its U.S.
Subsidiaries.  The agreement in this Section 11 applies separately in
the United States and in other countries but only to the extent that its
application shall be reasonably necessary for the protection of the Company. If
the Participant does not comply with the terms of this Section 11, the Company's
Senior VP & CAO (or his delegate) with respect to Participants other than
executive officers of the Company, or the Compensation Committee, with respect
to executive officers of the Company may, in his or its sole discretion, direct
the Company to pay to the Participant the balance credited to the portion of his
or her Interest Accounts and/or Stock Accounts that consists of the
Grandfathered Account portion.

    

    Section
12.  Participant's Rights
Unsecured.  The benefits payable under this Plan shall be paid
by the Company each year out of its general assets.  To the extent a
Participant acquires the right to receive a payment under this Plan, such right
shall be no greater than that of an unsecured general creditor of the
Company.  No amount payable under this Plan may be assigned,
transferred, encumbered or subject to any legal process for the payment of any
claim against a Participant.  No Participant shall have the right to
exercise any of the rights or privileges of a shareowner with respect to the
units credited to his or her Stock Accounts.

    

    Section
13.  No Right to Continued
Employment. Participation in this Plan shall not give any employee any
right to remain in the employ of the Company or any of its U.S.
Subsidiaries.  The Company and each employer U S. Subsidiary reserve
the right to terminate any Participant at any time.

    

    Section
14.  Statement of Account.
Statements will be made available no less frequently than annually to each
Participant or his or her estate showing the value of the Participant's
Accounts.

    

    Section
15.  Deductions. The
Company will withhold to the extent required by law an applicable income and
other taxes from amounts deferred or paid under this Plan.

    

    Section
16.  Administration.

    

    Section
16.1.  Responsibility.  Except
as expressly provided otherwise herein, the Compensation Committee shall have
total and exclusive responsibility to control, operate, manage and administer
this Plan in accordance with its terms.

    

    Section
16.2.  Authority of the
Compensation Committee.  The Compensation Committee shall have
all the authority that may be necessary or helpful to enable it to discharge its
responsibilities with respect to this Plan.  Without limiting the
generality of the preceding sentence, the Compensation Committee shall have the
exclusive right to interpret this Plan, to determine eligibility for
participation in this Plan, to decide all questions concerning eligibility for
and the amount of benefits payable under this Plan, to construe any ambiguous
provision of this Plan, to correct any default, to supply any omission, to
reconcile any inconsistency, and to decide any and all questions arising in the
administration, interpretation, and application of this Plan.

    

    Section
16.3.  Discretionary
Authority.  The Compensation Committee shall have full
discretionary authority in all matters related to the discharge of its
responsibilities and the exercise of its authority under this Plan including,
without limitation, its construction of the terms of this Plan and its
determination of eligibility for participation and benefits under this
Plan.  It is the intent that the decisions of the Compensation
Committee and its action with respect to this Plan shall be final and binding
upon all persons having or claiming to have any right or interest in or under
this Plan and that no such decision or action shall be modified upon judicial
review unless such decision or action is proven to be arbitrary or
capricious.

    
      
         

      

      
        59 

        
          

        

      

      
         

      

    

    

    Section
16.4.  Authority of Senior Vice
President and Chief Administrative Officer (“Senior VP &
CAO”).  Where expressly provided for under Sections 8, 10 and
11, the authority of the Compensation Committee is delegated to the Company's
Senior VP & CAO, and to that extent the provisions of Section 16.1 through
16.3 above shall be deemed to apply to such Senior VP & CAO.

    

    Section
16.5.  Delegation of
Authority.  The Compensation Committee may provide additional
delegation of some or all of its authority under this Plan to any person or
persons provided that any such delegation be in writing.

    

    Section
17.  Amendment.  The
Board may suspend or terminate this Plan at any time.  Notwithstanding
the foregoing, termination with respect to the portion of this Plan that
includes the Non-Grandfathered Accounts must comply with the requirements of
Treas. Reg. Section 1.409A-3(j)(4)(ix).  In addition, the Board may,
from time to time, amend this Plan in any manner without shareowner approval;
provided however, that the Board may condition any amendment on the approval of
shareowners if such approval is necessary or advisable with respect to tax,
securities, or other applicable laws. However, no amendment, modification, or
termination shall, without the consent of a Participant, adversely affect such
Participant's accruals in his or her Accounts as of the date of such amendment,
modification, or termination.

    

    Section
18.  Governing Law. This
Plan shall be construed, governed and enforced in accordance with the law of
Tennessee, except as such laws are preempted by applicable federal
law.

    

    Section
19.  Change in
Control.

    

    Section
19.1.  Background.  The
terms of this Section 19 shall immediately become operative, without further
action or consent by any person or entity, upon a Change in Control, and once
operative shall supersede and control over any other provisions of this
Plan.

    

    Section
19.2.  Amendment On or After Change
in Control.  On or after a Change in Control, no action,
including, but not by way of limitation, the amendment, suspension or
termination of this Plan, shall be taken which would affect the rights of any
Participant or the operation of this Plan with respect to the balance in the
Participant's Accounts without the written consent of the Participant, or, if
the Participant is deceased, the Participant's beneficiary under this Plan (if
any).

    

    Section
19.3.  Attorney
Fees.  The Company shall pay all reasonable legal fees and
related expenses incurred by a Participant in seeking to obtain or enforce any
payment, benefit or right such participant may be entitled to under this Plan
after a Change in Control; provided, however, the Participant shall be required
to repay any such amounts to the Company to the extent a court of competent
jurisdiction issues a final and non-appealable order setting forth the
determination that the position taken by the Participant was frivolous or
advanced in bad faith.  For purposes of this Section 19.3, the legal
fees and related expenses must be incurred by the Participant within 5 years of
the date the Change in Control occurs.  All reimbursements must be
paid to the Participant by the Company no later than the end of the tax year
following the tax year in which the expense is incurred.

    

    Section
20.  Compliance with SEC
Regulations.  It is the Company's intent that this Plan comply
in all respects with Rule 16b-3 of the Exchange Act, and any regulations
promulgated thereunder.  If any provision of this Plan is found not to
be in compliance with such rule, the provision shall be deemed null and void.
All transactions under this Plan, including, but not by way of limitation, a
Participant's election to defer compensation under Section 7 and withdrawals in
the event of a Hardship or Unforeseeable Emergency under Section 10, shall be
executed in accordance with the requirements of Section 16 of the Exchange Act,
as amended and any regulations promulgated thereunder.  To the extent
that any of the provisions contained herein do not conform with Rule 16b-3 of
the Exchange Act or any amendments thereto or any successor regulation, then the
Committee may make such modifications so as to conform this Plan to the Rule's
requirements.

    

    Section
21.  Successors and
Assigns. This Plan shall be binding upon the successors and assigns of
the parties hereto.

    
      
         

      

      
        60 

        
          

        

      

      
         

      

    

    

    SCHEDULE
A

    

    

    Eastman
Chemical Resins, Inc.

    

    Eastman
Gasification Services Company

    

    EGSC
Beaumont, Inc.

    

    

    
      
         

      

      
        61exv10w82

Exhibit 10.82

AMENDED AND RESTATED QUALCOMM INCORPORATED

2001 EMPLOYEE STOCK PURCHASE PLAN

Originally Effective February 27, 2001

Amended and Restated Effective November 12, 2007

Includes First Amendment Adopted on February 11, 2009

 

 

     SECTION 1 Establishment, Purpose and Term of Plan.

          1.1 Establishment. The QUALCOMM Incorporated 2001 Employee Stock Purchase Plan, which was
originally established as of February 27, 2001, is hereby amended and restated by the Committee as
of November 12, 2007.

          1.2 Purpose. The purpose of the Plan is to advance the interests of the Company and its
stockholders by providing an incentive to attract, retain and reward Eligible Employees of the
Participating Company Group and by motivating such persons to contribute to the growth and
profitability of the Participating Company Group. The Plan provides such Eligible Employees with
an opportunity to acquire a proprietary interest in the Company through the purchase of Stock. The
Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the
Code (including any amendments or replacements of such section), and the Plan shall be so
construed, although the Company makes no undertaking nor representation to maintain such
qualification. In addition, this Plan document authorizes the grant of rights to purchase Stock
under a Non-423(b) Plan which do not qualify under Section 423(b) of the Code, pursuant to rules,
procedures or sub-plans adopted by the Board or Committee designed to achieve tax, securities law
or other Company compliance objectives in particular locations outside the United States.

          1.3 Term of Plan. The Plan shall continue in effect until the earlier of its termination by
the Board or the date on which all of the shares of Stock available for issuance under the Plan
have been issued.

     SECTION 2 Definitions and Construction.

          2.1 Definitions. Any term not expressly defined in the Plan but defined for purposes of
Section 423 of the Code shall have the same definition herein for purposes of the Code Section
423(b) Plan. Whenever used herein, the following terms shall have their respective meanings set
forth below:

               (a) “Board” means the Board of Directors of the Company. If one or more Committees have been
appointed by the Board to administer the Plan, “Board” also means such Committee(s).

               (b) “Code” means the U.S. Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

               (c) “Code Section 423(b) Plan” means an employee stock purchase plan which is designed to meet
the requirements set forth in Section 423(b) of the Code, as amended. The provisions of the Code
Section 423(b) Plan shall be construed, administered and enforced in accordance with Section
423(b).

               (d) “Committee” means the Compensation Committee or other committee of the Board duly
appointed to administer the Plan and having such powers as shall be specified

1

 

by the Board. Unless the powers of the Committee have been specifically limited, the
Committee shall have all of the powers of the Board granted herein, including, without limitation,
the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any
applicable limitations imposed by law. To the extent determined by the Board or the Compensation
Committee, the term “Committee” shall also mean such officers of the Company as the Board or
Compensation Committee shall specify.

               (e) “Company” means QUALCOMM Incorporated, a Delaware corporation, or any Successor.

               (f) “Compensation” means, with respect to any Offering Period, all salary, wages (including
amounts elected to be deferred by the employee, that would otherwise have been paid, under any cash
or deferred arrangement established by the Company) and overtime pay, but excluding commissions,
bonuses, payments under the 2-for-1 vacation program, profit sharing, the cost of employee benefits
paid for by the Company, education or tuition reimbursements, imputed income arising under any
Company group insurance or benefit program, traveling expenses, business and moving expense
reimbursements, income received in connection with stock options, contributions made by the Company
under any employee benefit plan, and similar items of compensation. Compensation shall also
include payments while on a leave of absence during which participation continues pursuant to
Section 2.1(g) to such extent as may be provided by the Company’s leave policy.

               (g) “Eligible Employee” means an Employee who meets the requirements set forth in Section 5
for eligibility to participate in the Plan. Eligible Employee shall also mean any other employee
of a Participating Company to the extent that local law requires participation in the Plan to be
extended to such employee.

               (h) “Employee” means a person treated as an employee of a Participating Company for purposes
of Section 423 of the Code. A Participant shall be deemed to have ceased to be an Employee either
upon an actual termination of employment or upon the corporation employing the Participant ceasing
to be a Participating Company. For purposes of the Plan, an individual shall not be deemed to have
ceased to be an Employee while on any military leave or other leave of absence approved by the
Company of ninety (90) days or less. If an individual’s leave of absence exceeds ninety (90) days,
the individual shall be deemed to have ceased to be an Employee on the ninety-first (91st) day of
such leave unless the individual’s right to reemployment with the Participating Company Group is
guaranteed either by statute or by contract.

               (i) “Fair Market Value” means, as of any date:

                    (i) If the Stock is listed on any established stock exchange or traded on the Nasdaq Global
Select Market or the Nasdaq Global Market, the Fair Market Value of a share of Stock shall be the
closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on
such exchange or market (or if the stock is traded on more than one exchange or market, the
exchange or market with the greatest volume of trading in the Stock) on the day of determination,
in any case as reported in The Wall Street Journal or such other source

2

 

as the Board deems reliable. In the absence of such markets for the Stock, the Fair Market
Value shall be determined in good faith by the Board.

                    (ii) For purposes of this Plan, if the date as of which the Fair Market Value is to be
determined is not a market trading day, then solely for the purpose of determining Fair Market
Value such date shall be: (A) in the case of the Offering Date, the first market trading day
following the Offering Date; (B) in the case of the Purchase Date, the last market trading day
prior to the Purchase Date.

               (j) “Non-423(b) Plan” means an employee stock purchase plan which does not meet the
requirements set forth in Section 423(b) of the Code, as amended.

               (k) “Offering” means an offering of Stock as provided in Section 6.

               (l) “Offering Date” means, for any Offering, the first day of the Offering Period.

               (m) “Offering Period” means a period established in accordance with Section 6.

               (n) “Parent Corporation” means any present or future “parent corporation” of the Company, as
defined in Section 424(e) of the Code.

               (o) “Participant” means an Eligible Employee who has become a participant in an Offering
Period in accordance with Section 7 and remains a participant in accordance with the Plan.

               (p) “Participating Company” means the Company and any Parent Corporation or Subsidiary
Corporation. The Board or Committee may determine that some or all employees of any Participating
Company shall participate in the Non-423(b) Plan.

               (q) “Participating Company Group” means, at any point in time, the Company and all other
corporations collectively which are then Participating Companies.

               (r) “Plan” shall mean the Amended and Restated QUALCOMM Incorporated 2001 Employee Stock
Purchase Plan, as amended from time to time, which includes a Code Section 423(b) Plan and a
Non-423(b) Plan component.

               (s) “Purchase Date” means, for any Offering, the last day of the Offering Period; provided,
however, that the Board in its discretion may establish one or more additional Purchase Dates
during any Offering Period.

               (t) “Purchase Price” means the price at which a share of Stock may be purchased under the
Plan, as determined in accordance with Section 9.

               (u) “Purchase Right” means an option granted to a Participant pursuant to the Plan to purchase
such shares of Stock as provided in Section 8, which the Participant may or may not exercise during
the Offering Period in which such option is outstanding. Such option

3

 

arises from the right of a Participant to withdraw any accumulated payroll deductions of the
Participant not previously applied to the purchase of Stock under the Plan and to terminate
participation in the Plan during an Offering Period, in accordance with such rules and procedures
as may be established by Board.

               (v) “Spinoff Transaction” means a transaction in which the voting stock of an entity in the
Participating Company Group is distributed to the stockholders of a parent corporation as defined
by Section 424(e) of the Code, of such entity.

               (w) “Stock” means the common stock of the Company, as adjusted from time to time in accordance
with Section 4.2.

               (x) “Subscription Agreement” means an agreement in such form as specified by the Company which
is delivered in written form or by communicating with the Company in such other manner as the
Company may authorize, stating an Employee’s election to participate in the Plan and authorizing
payroll deductions under the Plan from the Employee’s Compensation.

               (y) “Subscription Date” means the Offering Date of an Offering Period, or such earlier date as
the Company shall establish.

               (z) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the
Company, as defined in Section 424(f) of the Code.

               (aa) “Successor” means a corporation into or with which the Company is merged or consolidated
or which acquires all or substantially all of the assets of the Company and which is designated by
the Board as a Successor for purposes of the Plan.

          2.2 Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of the Plan. Except when otherwise indicated
by the context, the singular shall include the plural and the plural shall include the singular.
Use of the term “or” is not intended to be exclusive, unless the context clearly requires
otherwise.

     SECTION 3 Administration.

          3.1 Administration by the Board. The Plan shall be administered by the Board and its
designees. Subject to the provisions of the Plan, the Board shall determine all of the relevant
terms and conditions of Purchase Rights; provided, however, that all Participants granted Purchase
Rights pursuant to an Offering under the Code Section 423(b) Plan shall have the same rights and
privileges within the meaning of Section 423(b)(5) of the Code in such Offering. All expenses
incurred in connection with the administration of the Plan shall be paid by the Company.

          3.2 Authority of Officers. Any officer of the Company shall have the authority to act
on behalf of the Company with respect to any matter, right, obligation, determination or election
that is the responsibility of or that is allocated to the Company herein, provided that the officer
has actual authority with respect to such matter, right, obligation, determination or

4

 

election. Any decision or determination of the Company made by an officer having actual
authority with respect thereto, shall be final, binding and conclusive on the Participating Company
Group, any Participant, and all persons having an interest in the Plan, or any Purchase Right
granted hereunder, unless such officer’s decision or determination is arbitrary or capricious,
fraudulent, or made in bad faith.

          3.3 Policies and Procedures Established by the Company. The Company may, from time to
time, consistent with the Plan and, for purposes of the Code Section 423(b) Plan, the requirements
of Section 423 of the Code, establish, interpret change or terminate such rules, guidelines,
policies, procedures, limitations, or adjustments as deemed advisable by the Company, in its
discretion, for the proper administration of the Plan, including, without limitation, (a) a minimum
payroll deduction amount required for participation in an Offering, (b) a limitation on the
frequency or number of changes permitted in the rate of payroll deduction during an Offering, (c)
an exchange ratio applicable to amounts withheld in a currency other than United States dollars,
(d) a payroll deduction greater than or less than the amount designated by a Participant in order
to adjust for the Company’s delay or mistake in processing a Subscription Agreement or in otherwise
effecting a Participant’s election under the Plan or, for purposes of the Code Section 423(b) Plan,
as advisable to comply with the requirements of Section 423 of the Code, and (e) determination of
the date and manner by which the Fair Market Value of a share of Stock is determined for purposes
of administration of the Plan.

The Board’s determination of the construction and interpretation of any provision of the Plan, and
any actions taken, and any decisions or determinations made pursuant to the terms of the Plan,
shall be final, binding and conclusive on the Participating Company Group, any Participant, and any
person having an interest in the Plan or any Purchase Right granted hereunder unless the Board’s
action, decision or determination is arbitrary or capricious, fraudulent, or made in bad faith.

          3.4 Indemnification. In addition to such other rights of indemnification as they may
have as members of the Board or officers or Employees of the Participating Company Group, members
of the Board and any officers or Employees of the Participating Company Group to whom authority to
act for the Board or the Company is delegated shall be indemnified by the Company against all
reasonable expenses, including attorneys’ fees, actually and necessarily incurred in connection
with the defense of any action, suit or proceeding, or in connection with any appeal therein, to
which they or any of them may be a party by reason of any action taken or failure to act under or
in connection with the Plan, or any right granted hereunder, and against all amounts paid by them
in settlement thereof (provided such settlement is approved by independent legal counsel selected
by the Company) or paid by them in satisfaction of a judgment in any such action, suit or
proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such person is liable for gross negligence, bad faith or intentional misconduct in
duties; provided, however, that within sixty (60) days after the institution of such action, suit
or proceeding, such person shall offer to the Company, in writing, the opportunity at its own
expense to handle and defend the same and to retain complete control over the litigation and/or
settlement of such suit, action or proceeding.

5

 

     SECTION 4 Shares Subject to Plan.

          4.1 Maximum Number of Shares Issuable. Subject to adjustment as provided in Section
4.2, the maximum aggregate number of shares of Stock that may be issued under the Plan shall be
24,709,466; provided, however that no more than an aggregate of 24,309,466 shares of Stock may be
issued under the Code section 423(b) Plan. The maximum aggregate number of shares of Stock
available under the Code Section 423(b) Plan and the Non-423(b) Plan shall consist of authorized
but unissued or reacquired shares of Stock, or any combination thereof. If an outstanding Purchase
Right for any reason expires or is terminated or canceled, the shares of Stock allocable to the
unexercised portion of that Purchase Right shall again be available for issuance under the Plan;
provided, however, that any such shares of Stock allocable to a Purchase Right that has expired,
terminated or been canceled under the Non-423(b) Plan shall only be available again for issuance
under the Non-423(b) Plan.

          4.2 Adjustments for Changes in Capital Structure. In the event of any stock dividend,
stock split, reverse stock split, recapitalization, combination, reclassification or similar change
in the capital structure of the Company, or in the event of any merger (including a merger effected
for the purpose of changing the Company’s domicile), sale of assets or other reorganization in
which the Company is a party, appropriate adjustments shall be made in the number and class of
shares subject to the Plan, each Purchase Right, and in the Purchase Price. If a majority of the
shares of the same class as the shares subject to outstanding Purchase Rights are exchanged for,
converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares
of another corporation (the “New Shares”), the Board may unilaterally amend the outstanding
Purchase Rights to provide that such Purchase Rights are exercisable for New Shares. In the event
of any such amendment, the number of shares subject to, and the Purchase Price of, the outstanding
Purchase Rights shall be adjusted in a fair and equitable manner, as determined by the Board, in
its discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment
pursuant to this Section 4.2 shall be rounded down to the nearest whole number, and in no event may
the Purchase Price be decreased to an amount less than the par value, if any, of the stock subject
to the Purchase Right.

     SECTION 5 Eligibility.

          5.1 Employees Eligible to Participate. Except as otherwise provided in this Section
5, an Employee shall be eligible to participate in an Offering if such Employee, as of the Offering
Date, is employed by the Company or any other Participating Company designated by the Board as a
corporation whose Employees may participate in the Offering. However, unless otherwise required
under applicable local law, an Employee may not be eligible to participate in an Offering if the
Employee, as of the Offering Date, either: (a) is customarily employed by the Participating
Company Group for twenty (20) hours or less per week, (b) is customarily employed by the
Participating Company Group for not more than five (5) months in any calendar year or (c) has not
completed thirty (30) days of service with a Participating Company, or such other service
requirement, up to a maximum of 2 years, which the Board may require. Employees of a Participating
Company designated to participate in the Non-423(b) Plan are eligible to participate in the
Non-423(b) Plan only if they are selected to participate by the Board or Committee, which selection
shall be in the sole discretion of the Board or Committee. Notwithstanding the foregoing, no
employee of the Company or a Participating Company

6

 

designated to participate in the Non-423(b) Plan shall be eligible to participate in the
Non-423(b) Plan if he or she is an officer or director of the Company subject to the requirements
of Section 16 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”) with
respect to the Company’s securities.

          5.2 Exclusion of Certain Stockholders. Notwithstanding any provision of the Plan to
the contrary, no Employee shall be treated as an Eligible Employee and granted a Purchase Right
under the Plan if, immediately after such grant, the Employee would own or hold options to purchase
stock of the Company or of any Parent Corporation or Subsidiary Corporation possessing five percent
(5%) or more of the total combined voting power or value of all classes of stock of such
corporation, as determined in accordance with Section 423(b)(3) of the Code. For purposes of this
Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in determining the
stock ownership of such Employee.

          5.3 Determination by Company. The Company shall determine in good faith and in the
exercise of its discretion whether an individual has become or has ceased to be an Employee or an
Eligible Employee and the effective date of such individual’s attainment or termination of such
status, as the case may be. For purposes of an individual’s eligibility to participate in or other
rights, if any, under the Plan as of the time of the Company’s determination, all such
determinations by the Company shall be final, binding and conclusive, unless the Company’s
determination is arbitrary or capricious, fraudulent, or made in bad faith notwithstanding that the
Company or any court of law or governmental agency subsequently makes a contrary determination.

     SECTION 6 Offerings.

          The Plan shall be implemented by sequential Offerings of approximately six (6) months duration
or such other duration as the Board shall determine (an “Offering Period”). Offering Periods shall
be established by the Board, in its sole and absolute discretion, and such Offering Periods may
have different durations or different commencing or ending dates; provided, however, that no
Offering Period may have a duration exceeding twenty-seven (27) months.

     SECTION 7 Participation in the Plan.

          7.1 Initial Participation. An Eligible Employee may become a Participant in an
Offering Period by delivering a properly completed Subscription Agreement, in accordance with such
rules and procedures as may be specified by the Company. An Eligible Employee who does not deliver
a properly completed Subscription Agreement to the Company in the required time period shall not
participate in the Plan for that Offering Period. Furthermore, the Eligible Employee may not
participate in a subsequent Offering Period unless a properly completed Subscription Agreement is
delivered to the Company on or before the Subscription Date for such subsequent Offering Period.

          7.2 Continued Participation. A Participant shall automatically participate in the
next Offering Period commencing immediately after the Purchase Date of each Offering Period in
which the Participant participates provided that the Participant remains an Eligible Employee

7

 

on the Offering Date of the new Offering Period and has not either (a) withdrawn from the Plan
pursuant to Section 12.1 or (b) terminated employment as provided in Section 13. A Participant who
may automatically participate in a subsequent Offering Period, as provided in this Section, is not
required to deliver any additional Subscription Agreement for the subsequent Offering Period in
order to continue participation in the Plan. However, a Participant may deliver a new Subscription
Agreement for a subsequent Offering Period in accordance with the procedures set forth in Section
7.1 if the Participant desires to change any of the elections contained in the Participant’s then
effective Subscription Agreement.

     SECTION 8 Right to Purchase Shares.

          8.1 Grant of Purchase Right.

               (a) Except as set forth below (or as otherwise specified by the Board prior to the Offering
Date), on the Offering Date of each Offering Period, each Participant in that Offering Period shall
be granted automatically a Purchase Right consisting of an option to purchase that number of whole
shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars ($12,500) by the Fair
Market Value of a share of Stock on such Offering Date. In connection with any Offering made under
this Plan, the Board or the Committee may specify a maximum number of shares of Stock which may be
purchased by any employee as well as a maximum aggregate number of shares of Stock which may be
purchased by all eligible employees pursuant to such Offering. In addition, in connection with any
Offering which contains more than one Purchase Date, the Board or the Committee may specify a
maximum aggregate number of shares which may be purchased by all eligible employees on any given
Purchase Date under the Offering.

               (b) Notwithstanding the foregoing, the aggregate number of shares for which Purchase Rights
may be granted in any Offering Period may not exceed the maximum number of shares which have been,
prior to the Offering Date for such Offering Period, reserved for the Plan and approved by the
stockholders of the Company and not previously been purchased upon the exercise of Purchase Rights
in any prior Offering Period.

               (c) If the aggregate purchase of shares of Stock upon exercise of rights granted under the
Offering would exceed any such maximum aggregate number, the Board or the Committee shall make a
pro rata allocation of the shares of Stock available in as nearly a uniform manner as shall be
practicable and as it shall deem to be equitable. No Purchase Right shall be granted on an
Offering Date to any person who is not, on such Offering Date, an Eligible Employee.

          8.2 Substitution of Rights. The grant of rights under an Offering may be done to
carry out the substitution of rights under the Plan for pre-existing rights granted under another
employee stock purchase plan, if such substitution is pursuant to a transaction described in
Section 424(a) of the Code (or any successor provision thereto) and the characteristics of such
substitute rights conform to the requirements of Section 424(a) of the Code (or any successor
provision thereto) and will not cause the disqualification of the Code Section 423(b) Plan under
Section 423 of the Code. Notwithstanding the other terms of the Plan, such substitute rights shall

8

 

have the same characteristics as the characteristics associated with such pre-existing rights,
including, but not limited to, the following:

               (a) the date on which such pre-existing right was granted shall be the “Offering Date” of such
substitute right for purposes of determining the date of grant of the substitute right;

               (b) the Offering (as defined below) for such substitute right shall begin on its Offering Date
and end coincident on the applicable Purchase Date, but no later than the end of the offering (as
determined under the terms of such offering) under which the pre-existing right was granted.

          8.3 Pro Rata Adjustment of Purchase Right. If the Board establishes an Offering
Period of any duration other than six months, then any limitation on the number of shares of Stock
subject to each Purchase Right granted on the Offering Date of such Offering Period set forth in
Section 8.1(a) shall be prorated based upon the ratio which the number of months in such Offering
Period bears to six (6).

          8.4 Calendar Year Purchase Limitation. Notwithstanding any provision of the Plan to
the contrary, no Participant shall be granted a Purchase Right which permits his or her right to
purchase shares of Stock under the Plan to accrue at a rate which, when aggregated with such
Participant’s rights to purchase shares under all other employee stock purchase plans of a
Participating Company intended to meet the requirements of Section 423 of the Code, exceeds
Twenty-Five Thousand Dollars ($25,000) in Fair Market Value (or such other limit, if any, as may be
imposed by the Code) for each calendar year in which such Purchase Right is outstanding at any
time. For purposes of the preceding sentence, the Fair Market Value of shares purchased during a
given Offering Period shall be determined as of the Offering Date for such Offering Period. The
limitation described in this Section shall be applied in conformance with applicable regulations
under Section 423(b)(8) of the Code.

     SECTION 9 Purchase Price.

          The Purchase Price for an Offering Period shall be eighty-five percent (85%) of the lesser of
(a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period, or (b)
the Fair Market Value of a share of Stock on the Purchase Date. Notwithstanding the foregoing, the
Board, in its sole discretion, may establish the Purchase Price at which each share of Stock may be
acquired in an Offering Period upon the exercise of all or any portion of a Purchase Right;
provided, however, that the Purchase Price shall not be less than eighty-five percent (85%) of the
lesser of (a) the Fair Market Value of a share of Stock on the Offering Date of the Offering Period
or (b) the Fair Market Value of a share of Stock on the Purchase Date.

     SECTION 10 Accumulation of Purchase Price through Payroll Deduction.

          Shares of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right
may be paid for only by means of payroll deductions from the Participant’s Compensation accumulated
during the Offering Period for which such Purchase Right was granted, and, if a payroll deduction
is not permitted under a statute, regulation, rule of a

9

 

jurisdiction, or is not administratively feasible, such other payments as may be approved by
the Company, subject to the following:

          10.1 Amount of Payroll Deductions. Except as otherwise provided herein, the amount to
be deducted under the Plan from a Participant’s Compensation on each payday during an Offering
Period shall be determined by the Participant’s Subscription Agreement. The Subscription Agreement
shall set forth the percentage of the Participant’s Compensation to be deducted on each payday
during an Offering Period in whole percentages, up to fifteen percent (15%). The Board may change
the foregoing limits on payroll deductions effective as of any Offering Date.

          10.2 Commencement of Payroll Deductions. Payroll deductions shall commence on the
first payday following the Offering Date and shall continue through the last payday prior to the
end of the Offering Period unless sooner altered or terminated as provided herein.

          10.3 Election to Change or Stop Payroll Deductions. During an Offering Period, to the
extent provided for in the Offering, a Participant may elect to decrease the rate of, or to stop,
deductions from his or her Compensation by delivering to the Company an amended Subscription
Agreement, in such form and manner as specified by the Company, authorizing such change on or
before the Change Notice Date, as defined below. A Participant who elects, effective following the
first payday of an Offering Period, to decrease the rate of his or her payroll deductions to zero
percent (0%) shall nevertheless remain a Participant in the current Offering Period unless such
Participant withdraws from the Plan as provided in Section 12.1. The “Change Notice Date” shall be
the day established in accordance with procedures established by the Company.

          10.4 Company’s Holding of Deductions. All payroll deductions from a Participant’s
Compensation shall be deposited with the general funds of the Company, and to the extent permitted
by applicable law, may be used by the Company for any corporate purpose. No interest will accrue
on the payroll deductions from a Participant under this Plan, except as otherwise required by
applicable law. If such interest is required, all accrued interest will not be used to purchase
additional shares of Stock on a Purchase Date, and such accrued interest shall be refunded to the
Participant following such Purchase Date (or, if applicable, the Participant’s withdrawal from the
Plan pursuant to Section 12.1 or termination of employment or eligibility as described in Section
13).

          10.5 Voluntary Withdrawal of Deductions. A Participant may withdraw payroll
deductions credited to the Plan and not previously applied toward the purchase of Stock only as
provided in Section 12.1.

          10.6 Contributions under Non-423(b) Plan. In the sole discretion of the Board or
Committee and if specified in the terms of the Offering, a Participant at a Participating Company
designated to participate in the Non-423(b) Plan may make additional payments into his or her
account, provided that such Participant has not had the maximum amount withheld during the Offering
pursuant to subsection 10.1 above.

10

 

     SECTION 11 Purchase of Shares.

          11.1 Exercise of Purchase Right. On each Purchase Date, each Participant’s
accumulated payroll deductions and other additional payments specifically permitted by the Plan
(without any increase for interest), will be applied to the purchase of whole shares of Stock, up
to the maximum number of shares permitted pursuant to the terms of the Plan and the applicable
Offering, at the Purchase Price for such Offering. No fractional shares shall be issued upon the
exercise of Purchase Rights granted under the Plan. The amount, if any, of each Participant’s
accumulated payroll deductions remaining after the purchase of shares on the Purchase Date of an
Offering shall be refunded in full to the Participant after such Purchase Date.

          11.2 Pro Rata Allocation of Shares. If the number of shares of Stock which might be
purchased by all Participants in the Plan on a Purchase Date exceeds the number of shares of Stock
available in the Plan as provided in Section 4.1, the Company shall make a pro rata allocation of
the remaining shares in as uniform a manner as practicable and as the Company determines to be
equitable. Any fractional share resulting from such pro rata allocation to any Participant shall
be disregarded.

          11.3 Delivery of Shares. As soon as practicable after each Purchase Date, the Company
shall arrange the delivery to each Participant of the shares acquired by the Participant on such
Purchase Date; provided that the Company may deliver such shares to a broker designated by the
Company that will hold such shares for the benefit of the Participant. Shares to be delivered to a
Participant under the Plan shall be registered, or held in an account, in the name of the
Participant, or, if requested by the Participant, such other name or names as the Company may
permit under rules established for the operation and administration of the Plan.

          11.4 Tax Withholding. At the time a Participant’s Purchase Right is exercised, in
whole or in part, or at the time a Participant disposes of some or all of the shares of Stock he or
she acquires under the Plan, the Participant shall make adequate provision for the federal, state,
local and foreign tax withholding obligations, if any, of the Participating Company Group which
arise upon exercise of the Purchase Right or upon such disposition of shares, respectively. The
Participating Company Group may, but shall not be obligated to, withhold from the Participant’s
compensation the amount necessary to meet such withholding obligations.

          11.5 Expiration of Purchase Right. A Purchase Right shall expire immediately upon the
end of the Offering Period to the extent it exceeds the number of shares of Stock which are
purchased with a Participant’s accumulated payroll deductions or other permitted contribution
during any Offering Period.

          11.6 Provision of Reports and Stockholder Information to Participants. Each
Participant who has exercised all or part of his or her Purchase Right shall receive, as soon as
practicable after the Purchase Date, a report of such Participant’s account setting forth the total
payroll deductions accumulated prior to such exercise, the number of shares of Stock purchased, the
Purchase Price for such shares, the date of purchase and the cash balance, if any, remaining
immediately after such purchase that is to be refunded. The report required by this Section may be
delivered in such form and by such means, including by electronic transmission, as the Company may
determine. In addition, each Participant shall be given access to information

11

 

concerning the Company equivalent to that information provided generally to the Company’s
common stockholders.

     SECTION 12 Withdrawal from Plan.

          12.1 Voluntary Withdrawal from the Plan. A Participant may withdraw from the Plan by
signing and delivering to the Company’s designated office a written notice of withdrawal on a form
provided by the Company for this purpose or by communicating with the Company in such other manner
as the Company may authorize. A Participant who voluntarily withdraws from the Plan is prohibited
from resuming participation in the Plan in the same Offering from which he or she withdrew, but may
participate in any subsequent Offering by again satisfying the requirements of Sections 5 and 7.1.
The Company may impose, from time to time, a requirement that the notice of withdrawal from the
Plan be on file with the Company’s designated office for a reasonable period prior to the
effectiveness of the Participant’s withdrawal.

          12.2 Return of Payroll Deductions. Upon a Participant’s voluntary withdrawal from the
Plan pursuant to Section 12.1, the Participant’s accumulated payroll deductions which have not been
applied toward the purchase of shares shall be refunded to the Participant as soon as practicable
after the withdrawal (and except as otherwise provided in Section 10.4, without the payment of any
interest), and the Participant’s participation in the Plan shall terminate. Such accumulated
payroll deductions to be refunded in accordance with this Section may not be applied to any other
Offering under the Plan.

     SECTION 13 Termination of Employment.

          13.1 General. Upon a Participant’s ceasing, prior to a Purchase Date, to be an
Employee of the Participating Company Group for any reason, the Participant’s participation in the
Plan shall terminate immediately, except as otherwise provided in Section 2.1(g) and Section 13.3.

          13.2 Return of Payroll Deductions. Upon termination of participation, the terminated
Participant’s accumulated payroll deductions which have not been applied toward the purchase of
shares shall, as soon as practicable, be returned to the Participant or, in the case of the
Participant’s death, to the Participant’s legal representative, and all of the Participant’s rights
under the Plan shall terminate. Except as otherwise provided in Section 10.4, interest shall not
be paid on sums returned pursuant to this Section 13. A Participant whose participation has been
so terminated may again become eligible to participate in future Offerings under the Plan by
satisfying the requirements of Sections 5 and 7.1.

          13.3 Continued Participation Upon Release of Claims. Upon a Participant’s ceasing,
prior to a Purchase Date, to be an Employee of the Participating Company Group for any reason, the
Participant’s participation in the Plan shall continue, subject to the Participant’s execution of a
general release of claims satisfactory to the Company, for an additional three (3) months;
provided, however, this Section shall not apply in the event of the Participant’s death, a Spinoff
Transaction, or to any Participant on a leave of absence governed by Section 2.1(g).

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     SECTION 14 Change in Control.

          14.1 Definitions.

               (a) An “Ownership Change Event” shall be deemed to have occurred if any of the following
occurs with respect to the Company: (i) the direct or indirect sale or exchange in a single or
series of related transactions by the stockholders of the Company of more than fifty percent (50%)
of the voting stock of the Company; (ii) a merger or consolidation in which the Company is a party;
(iii) the sale, exchange, or transfer of all or substantially all, as determined by the Board in
its sole discretion, of the assets of the Company; or (iv) a liquidation or dissolution of the
Company.

               (b) A “Change in Control” shall mean an Ownership Change Event or a series of related
Ownership Change Events (collectively, a “Transaction”) wherein the stockholders of the Company
immediately before the Transaction do not retain immediately after the Transaction, in
substantially the same proportions as their ownership of shares of the Company’s voting stock
immediately before the Transaction, direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the outstanding voting securities of the
Company or, in the case of a Transaction described in Section 14.1(a)(iii), the corporation or
other business entity to which the assets of the Company were transferred (the “Transferee”), as
the case may be. The Board shall determine in its sole discretion whether multiple sales or
exchanges of the voting securities of the Company or multiple Ownership Change Events are related.
Notwithstanding the preceding sentence, a Change in Control shall not include any Transaction in
which the voting stock of an entity in the Participating Company Group is distributed to the
stockholders of a parent corporation, as defined in Section 424(e) of the Code, of such entity.
Any Ownership Change Event resulting from an underwritten public offering of the Company’s Stock or
the stock of any Participating Company shall not be deemed a Change in Control for any purpose
hereunder.

          14.2 Effect of Change in Control on Purchase Rights. In the event of a Change in
Control, the surviving, continuing, successor, or purchasing corporation or parent corporation
thereof, as the case may be (the “Acquiring Corporation”), may assume the Company’s rights and
obligations under the Plan. If the Acquiring Corporation elects not to assume the Company’s rights
and obligations under outstanding Purchase Rights, the Purchase Date of the then current Offering
Period shall be accelerated to a date before the date of the Change in Control specified by the
Board, but the number of shares of Stock subject to outstanding Purchase Rights shall not be
adjusted, provided, however, that the Purchase Date with respect to Purchase Rights granted
pursuant to a Non-423(b) Plan shall be accelerated as contemplated by the foregoing sentence only
to the extent the event constituting the Change in Control qualifies as a “change in ownership” or
“change in effective control” of the Company or a “change in ownership of a substantial portion of
the assets” of the Company, as these concepts are defined in U.S. Treas. Reg. § 1.409A-3(i)(5) or
successor provisions. All Purchase Rights which are neither assumed by the Acquiring Corporation
in connection with the Change in Control nor exercised as of the date of the Change in Control
shall terminate and cease to be outstanding effective as of the date of the Change in Control.

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     SECTION 15 Nontransferability of Purchase Rights.

          Neither payroll deductions nor a Participant’s Purchase Right may be assigned, transferred,
pledged or otherwise disposed of in any manner other than as provided by the Plan or by will or the
laws of descent and distribution. Any such attempted assignment, transfer, pledge or other
disposition shall be without effect, except that the Company may treat such act as an election to
withdraw from the Plan as provided in Section 12.1. A Purchase Right shall be exercisable during
the lifetime of the Participant only by the Participant.

     SECTION 16 Compliance with Securities Law and other Applicable Requirements.

          The issuance of shares under the Plan shall be subject to compliance with all applicable
requirements of federal, state and foreign law with respect to such securities. A Purchase Right
may not be exercised if the issuance of shares upon such exercise would constitute a violation of
any applicable federal, state or foreign securities laws or other law or regulations or the
requirements of any securities exchange or market system upon which the Stock may then be listed.
In addition, no Purchase Right may be exercised unless (a) a registration statement under the U.S.
Securities Act of 1933, as amended, shall at the time of exercise of the Purchase Right be in
effect with respect to the shares issuable upon exercise of the Purchase Right, or (b) in the
opinion of legal counsel to the Company, the shares issuable upon exercise of the Purchase Right
may be issued in accordance with the terms of an applicable exemption from the registration
requirements of said Act. The inability of the Company to obtain from any regulatory body having
jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the
lawful issuance and sale of any shares under the Plan 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. Anything in the foregoing to the contrary notwithstanding, Purchase Rights
granted under a Non-423(b) Plan may be suspended, delayed or otherwise deferred for any of the
reasons contemplated in this Section 16 only to the extent such suspension, delay or deferral is
permitted under U.S. Treas. Reg. §§ 1.409A-2(b)(7), 1.409A-1(b)(4)(ii) or successor provisions, or
as otherwise permitted under Section 409A of the Code. As a condition to the exercise of a
Purchase Right, the Company may require the Participant to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or regulation, and to make
any representation or warranty with respect thereto as may be requested by the Company.

     SECTION 17 Rules for Foreign Jurisdictions.

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

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          17.2 Non-423(b) Plan Component. The Board or Committee may also adopt rules,
procedures or sub-plans applicable to particular Participating Companies or locations, which
sub-plans may be designed to be outside the scope of Code Section 423. The rules of such sub-plans
may take precedence over other provisions of this Plan, with the exception of Section 4.1, but
unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern
the operation of such sub-plan. To the extent inconsistent with the requirements of Section 423,
such sub-plan shall be considered part of the Non-423(b) Plan, and rights granted thereunder shall
not be considered to comply with Code Section 423.

     SECTION 18 Rights As a Stockholder and Employee.

          A Participant shall have no rights as a stockholder by virtue of the Participant’s
participation in the Plan until the date of the issuance of shares purchased pursuant to the
exercise of the Participant’s Purchase Right (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made
for dividends, distributions or other rights for which the record date is prior to the date such
share is issued, except as provided in Section 4.2. Nothing herein shall confer upon a Participant
any right to continue in the employ of the Participating Company Group or interfere in any way with
any right of the Participating Company Group to terminate the Participant’s employment at any time.

     SECTION 19 Distribution on death.

          If a Participant dies, the Company shall deliver any shares or cash credited to the
Participant to the Participant’s legal representative.

     SECTION 20 Notices.

          All notices or other communications by a Participant to the Company under or in connection
with the Plan shall be deemed to have been duly given when received in the form specified by the
Company at the location, or by the person, designated by the Company for the receipt thereof.

     SECTION 21 Amendment or Termination of the Plan.

          The Board may at any time amend or terminate the Plan, except that (a) such termination shall
not affect Purchase Rights previously granted under the Plan, except as permitted under the Plan,
and (b) no amendment may adversely affect a Purchase Right previously granted under the Plan
(except to the extent permitted by the Plan or as may be necessary to qualify the Code Section
423(b) Plan as an employee stock purchase plan pursuant to Section 423 of the Code or to obtain
qualification or registration of the shares of Stock under applicable federal, state or foreign
securities laws). In addition, an amendment to the Plan must be approved by the stockholders of
the Company within twelve (12) months of the adoption of such amendment if such amendment would
increase the maximum aggregate number of shares of Stock that may be issued under the Plan (except
by operation of the provisions of Section 4.1 or Section 4.2) or would change the definition of the
corporations that may be designated by the Board as Participating Companies.

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     SECTION 22. Code Section 409A.

          The Code Section 423(b) Plan is exempt from the application of Section 409A. The Non-423(b)
Plan is intended to comply and shall be administered in a manner that is intended to comply with
Section 409A of the Code and shall be construed and interpreted in accordance with such intent. To
the extent a Purchase Right or the vesting, payment, settlement or deferral thereof is subject to
Section 409A of the Code, the Purchase Right shall be granted, paid, exercised, settled or deferred
in a manner that will comply with Section 409A of the Code, including the final regulations and
other guidance issued with respect thereto, except as otherwise determined by the Committee. Any
provision of the Non-423(b) Plan that would cause the grant of a Purchase Right or the payment,
settlement or deferral thereof to fail to satisfy Section 409A of the Code shall be amended to
comply with Section 409A of the Code on a timely basis, which amendment may be made on a
retroactive basis, in accordance with the final regulations and guidance issued under Section 409A
of the Code. Notwithstanding the foregoing, the Company shall have no liability to a Participant
or any other party if the Purchase Right that is intended to be exempt from, or compliant with
Section 409A of the Code is not so exempt or compliant or for any action taken by the Committee
with respect thereto

16

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