Document:

Supllemental Executive Retirement Plan

 Exhibit 10.49 
  
 RESPIRONICS, INC. 
  
 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN 
  
 ARTICLE I - PURPOSE; EFFECTIVE DATE 
  

	1.1.	 	Purpose. The purpose of this Respironics, Inc. Supplemental Executive Retirement Plan (hereinafter, the “Plan”) is to permit a select group of
management and highly compensated employees of RESPIRONICS, INC. (“Respironics”) and its subsidiaries to defer the receipt of income which would otherwise become payable to them. It is intended that this Plan, by providing this
deferral opportunity, will assist the Company in retaining and attracting individuals of exceptional ability by providing them with these benefits. 

  

	1.2.	 	Effective Date. The Plan shall be effective as of June 1, 2003. 

  

ARTICLE II - DEFINITIONS 
  
 For the purpose of this Plan, the following terms shall have the meanings indicated, unless the context clearly indicates otherwise: 
  

	2.1.	 	Account(s). “Account(s)” means the account or accounts maintained on the books of the Company used solely to calculate the amount payable to each Participant
under this Plan and shall not constitute a separate fund of assets. The Accounts available for each Participant shall be identified as: 

  

	 	(a)	 	Retirement Account; and 

  

	 	(b)	 	In-Service Account. 

  

	2.2.	 	Beneficiary. “Beneficiary” means the person(s) designated by the Participant, entitled under Article VI to receive any Plan benefits payable after the
Participant’s death. 

  

	2.3.	 	Beneficial Ownership. “Beneficial Ownership” shall be determined as provided in Rule 13d-3 under the Exchange Act. 

  

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

  

	2.5.	 	Change in Control. A “Change in Control” shall occur upon: 

  

	 	(a)	 	The Company’s acquisition of actual knowledge that any Person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) other than the Company, a Subsidiary or any
employee benefit plan(s) sponsored by the Company has acquired the Beneficial Ownership, directly or indirectly, of securities of the Company entitling such Person to 20% or more of the Voting Power of the Company; 

  

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	 	(b)	 	The occurrence of the date provided for in action by the Board, if any, to require election of the Committee as provided in Section 7.5 of this Plan, following the making of a
Tender Offer to acquire securities of the Company entitling the holders thereof to 20% or more of the Voting Power of the Company; or 

  

	 	(c)	 	The occurrence of the date provided for in action by the Board, if any, to require election of the Committee as provided in Section 7.5 of the Plan, following the making of a
solicitation subject to Rule 14a-11 under the Exchange Act (or any successor Rule) relating to the election or removal of 50% or more of the members of any class of the Board by any person other than the Company; or 

  

	 	(d)	 	The shareholders of the Company’s approval of a merger, consolidation, share exchange, division or sale or other disposition of assets of the Company as a result of which the
shareholders of the Company immediately prior to such transaction shall not hold, directly or indirectly, immediately following such transaction a majority of the Voting Power of (i) in the case of a merger or consolidation, the surviving or
resulting corporation, (ii) in the case of a share exchange, the acquiring corporation or (iii) in the case of a division or sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the
transaction, holds more than 10% of the consolidated assets of the Company immediately prior to the transaction. 

  

	2.6.	 	Committee. “Committee” means the Committee appointed by the Board to administer the Plan pursuant to Article VII. The Committee shall consist of Daniel J.
Bevevino, Vice President and Chief Financial Officer; James C. Woll, Vice President and Corporate Controller; William R. Wilson, Vice President – Human Resources; and Kathy Dober, Director of Compensation and Benefits, and may change from time
to time as designated by the Board. 

  

	2.7.	 	Company. “Company” means Respironics, Inc., a Delaware corporation, and any directly or indirectly affiliated subsidiary corporations, any other affiliate
designated by the Board, or any successor to the business thereof. 

  

	2.8.	 	Compensation. “Compensation” means the base salary, commission, and bonus or incentive compensation payable to a Participant with respect to employment
services performed for the Company by the Participant and considered to be “wages” for purposes of federal income tax withholding. For purposes of this Plan only, Compensation shall be calculated before reduction for any amounts deferred
by the Participant pursuant to the Company’s tax qualified plans which may be maintained under Section 401(k) or Section 125 of the Internal Revenue Code of 1986, as amended, (the “Code”), or pursuant to this Plan or any other
non-qualified plan which permits the voluntary deferral of compensation. Inclusion of any other forms of compensation other than as provided in the first sentence of this Section is subject to Committee approval. 

  

	2.9.	 	 Deferral Commitment. “Deferral Commitment” means a commitment made by a Participant to defer a portion of Compensation as set forth in
Article III. The Deferral Commitment shall apply to each payment of salary, commission, incentive and/or bonus 

  

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payable to a Participant, and shall specify the Account or Accounts to which the Compensation deferred shall be credited. Such designation shall be made in
whole percentages and shall be made in a form acceptable to the Committee. A Deferral Commitment shall remain in effect until amended or revoked as provided under Section 3.5, below. 

  

	2.10.	 	Deferral Period. “Deferral Period” means each calendar year, except that the initial Deferral Period shall begin on the effective date of the Plan and end on
December 31, 2003; provided, however, that deferrals may not be made with respect to Compensation for services rendered prior to participation in the Plan. 

  

	2.11.	 	Determination Date. “Determination Date” means each calendar day. 

  

	2.12.	 	Disability. “Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code, as determined by a physician approved by the
Committee or its delegate. 

  

	2.13.	 	Discretionary Contribution. “Discretionary Contribution” means the Company contribution credited to a Participant’s Account(s) under Section 4.4, below.

  

	2.14.	 	Distribution Election. “Distribution Election” means the form prescribed by the Committee and completed by the Participant, indicating the chosen form of
payment for benefits payable from each Account under this Plan, as elected by the Participant. 

  

	2.15.	 	Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

  

	2.16.	 	Interest. “Interest” means the hypothetical amount credited to a Participant’s Account(s) on each Determination Date, which may include interest,
dividends, gains and losses and which shall be based on the Valuation Funds chosen by the Participant in a manner consistent with Section 4.3, below. Such credits to a Participant’s Account may be either positive or negative to reflect the
increase or decrease in value of the Account in accordance with the provisions of this Plan. 

  

	2.17.	 	Participant. “Participant” means any employee who is eligible, pursuant to Section 3.1, below, to participate in this Plan, and who has elected to defer
Compensation under this Plan in accordance with Article III, below or is credited with a Discretionary Contribution under this Plan in accordance with Section 4.4, below. Such employee shall remain a Participant in this Plan for the period of
deferral and until such time as all vested benefits payable under this Plan have been paid in accordance with the provisions hereof.  

  

	2.18.	 	Plan. “Plan” means this Respironics, Inc. Supplemental Executive Retirement Plan as amended from time to time. 

  

	2.19.	 	 Separation from Service. “Separation from Service” means, for any Participant, such Participant’s death, retirement, voluntary or
involuntary termination of employment, Disability or any other absences or termination that cause such Participant to cease to be an 

  

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employee of the Company. Retirement means the termination of employment with the Company by the Participant after attaining age fifty-five (55).

  

	2.20.	 	Subsidiary. “Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the
last corporation in the unbroken chain owns stock possessing at least fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 

  

	2.21.	 	Tender Offer. “Tender Offer” means a tender offer or exchange offer to acquire securities of a corporation (other than such an offer made by the Company or a
Subsidiary), whether or not such offer is approved or opposed by the Board. 

  

	2.22.	 	Unforeseeable Emergency. “Unforeseeable Emergency” means an unanticipated emergency caused by an event that is beyond the control of the Participant or
Beneficiary and that would result in severe financial hardship to the Participant or Beneficiary if an early hardship withdrawal were not permitted. For purposes of the Plan, a hardship shall be considered to constitute an immediate and unforeseen
financial hardship if the Participant or Beneficiary has an unexpected need for cash to pay for expenses incurred by him or a dependent (within the meaning of Code Section 152(a)) such as illness, casualty loss, or death. Cash needs arising from
foreseeable events, such as the purchase or building of a house or education expenses will not be considered to be the result of an unforeseeable financial emergency. 

  

	2.23.	 	Valuation Funds. “Valuation Funds” means one or more of the independently established funds or indices that are identified and listed by the Committee. These
Valuation Funds are used solely to calculate the Interest that is credited to each Participant’s Account(s) in accordance with Article IV, below, and does not represent, nor should it be interpreted to convey, any beneficial interest on the
part of the Participant in any asset or other property of the Company. The determination of the increase or decrease in the performance of each Valuation Fund shall be made by the Committee in its reasonable discretion. The Committee shall select
the various Valuation Funds available to the Participants with respect to this Plan and shall set forth a list of these Valuation Funds attached hereto as Exhibit A, which may be amended from time to time in the discretion of the Committee.

  

	2.24.	 	Voting Power. “Voting Power” of the Company means such number of the Voting Shares of the Company as shall enable the holders thereof to cast such percentage
of all of the votes that could be cast in an annual election of directors (without consideration of the rights of any other class of stock other than the Company’s Common Stock to elect directors by a separate class vote). “Voting
Shares” means all securities of the Company entitling the holders thereof to vote in an annual election of directors (without consideration of the rights of any other class of stock other than the Company’s Common Stock to elect
directors by a separate class vote). 

  

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 ARTICLE III - ELIGIBILITY AND PARTICIPATION 
  

	3.1.	 	Eligibility and Participation. 

  

	 	(a)	 	Eligibility. Eligibility to participate in the Plan shall be limited to those select key employees of the Company who are designated by management, from time to time,
and approved by the Committee, and who make up a group of management or highly compensated employees consistent with maintaining this Plan as an Unfunded Plan as provided in Section 10.1. 

  

	 	(b)	 	Participation. An employee’s participation in the Plan shall be effective upon notification to the employee by the Committee of eligibility to participate, and
completion and submission of a Deferral Commitment, an Allocation Form, and a Distribution Election to the Committee no later than fifteen (15) days prior to the beginning of the Deferral Period. 

  

	 	(c)	 	First-Year Participation. When an individual first becomes eligible to participate in this Plan during a Deferral Period, a Deferral Commitment may be submitted to the
Committee within thirty (30) days after the Committee notifies the individual of eligibility to participate. Such Deferral Commitment will be effective only with regard to Compensation earned following submission of the Deferral Commitment to the
Committee. 

  

	3.2.	 	Form of Deferral Commitment. A Participant may elect to make a Deferral Commitment in the form permitted by the Committee. The Deferral Commitment shall specify the
following: 

  

	 	(a)	 	Deferral Amounts; Accounts. Subject to the last sentence of this Section 3.2, a Deferral Commitment shall be effective with respect to each payment of salary,
commission, incentive and/or bonus payable by the Company to a Participant during the Deferral Period, and shall designate the portion of each deferral that shall be allocated among the various Accounts, except that no deferral shall be made to an
Account at the same time that a distribution is to be made from that Account. The Participant shall set forth the amount to be deferred as a full percentage of salary, commission, incentive and/or bonus (the Participant may designate a different
percentage of each item that is to be deferred under this Plan). The percentage specified shall apply equally to each periodic payment of salary, commission, incentive and/or bonus during the Deferral Period, subject to the last sentence of this
Section 3.2. 

  

	 	(b)	 	Allocation to Valuation Funds. The Participant shall specify in a separate form (known as the “Allocation Form”) filed with the Committee, the
Participant’s initial allocation of the amounts deferred into each Account among the various available Valuation Funds. 

  

	 	(c)	 	 Maximum Deferral. The maximum amount of each payment of base salary that may be deferred shall be seventy-five percent (75%), and the maximum amount
of 

  

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each payment of commission, bonus or incentive compensation that may be deferred shall be one hundred percent (100%). 

  

	 	(d)	 	Minimum Deferral. The minimum amount of each payment of base salary that may be deferred shall be one percent (1%), and the minimum amount of each payment of
commission, bonus or incentive compensation that may be deferred shall be one percent (1%). 

  
 Notwithstanding anything to the contrary, no Deferral Commitment shall be effective for a Participant who has made a hardship withdrawal from the
Company’s tax qualified plan maintained under section 401(k) of the Code (a) for a period of 6 months from the date of such hardship withdrawal, if the hardship withdrawal has been made in reliance on Treasury Regulation §
1.401(k)-1(d)(2)(iii)(B) and the deferred compensation would constitute an employee elective contribution or employee contribution under an employer plan within the meaning of Treasury Regulation § 1.401(k)-1(d)(2)(iii)(B)(3) or any successor
regulation or (b) for such other period as required for suspension of deferred compensation pursuant to the provisions of such tax qualified plan. 
  

	3.3.	 	Period of Commitment. Once a Participant has made a Deferral Commitment, that Commitment shall remain in effect for the next succeeding Deferral Period and shall
remain in effect for all future Deferral Periods unless revoked or amended in writing by the Participant and delivered to the Committee in a form acceptable to the Committee no later than fifteen (15) days prior to the beginning of a subsequent
Deferral Period. 

  

	3.4.	 	Commitment Limited by Termination or Disability. If a Participant suffers a Disability or terminates employment with the Company for any reason prior to the end of the
Deferral Period, the Deferral Period shall end as of the date of Disability or termination. 

  

	3.5.	 	Modification of Deferral Commitment. Except as provided in Section 3.3 or 3.4 above, or Section 5.4 below, and subject to the limitations of the Deferral Commitment as
provided in the last sentence of Section 3.2, a Deferral Commitment shall be irrevocable by the Participant during a Deferral Period. 

  

	3.6.	 	 Change in Employment Status. If the Committee determines that a Participant’s employment performance is no longer at a level that warrants reward
through participation in this Plan, but does not terminate the Participant’s employment with Company, the Participant’s existing Deferral Commitment shall terminate at the end of the Deferral Period, and no new Deferral Commitment may be
made by such Participant and no Discretionary Contribution will be made for such Participant after notice of such determination is given by the Committee, unless the Participant later satisfies the requirements of Section 3.1, above. If the
Committee, in its sole discretion, determines that the Participant no longer qualifies as a member of a select group of management or highly compensated employees, as determined in accordance with the Employee Retirement Income Security Act of 1974,
as amended, the Committee may, in its sole discretion terminate any Deferral Commitment and Discretionary Contributions for that year, prohibit the Participant from making any future Deferral Commitments, receiving Discretionary Contributions and/or
distribute the 

  

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Participant’s Account Balances in accordance with Article V of this Plan as if the Participant had terminated employment with the Company as of that
time. 

  

	3.7.	 	Defaults in Event of Incomplete or Inaccurate Deferral Commitments. In the event that a Participant submits a Deferral Commitment to the Committee that contains
information which, in the sole discretion of the Committee, is incomplete or inaccurate, the Committee shall be authorized to assume the following, and such assumptions shall be communicated to the Participant: 

  

	 	(a)	 	If no Account is listed – assume Retirement Account was selected; 

  

	 	(b)	 	If Accounts listed equal less than 100% – assume balance is deferred into Retirement Account; 

  

	 	(c)	 	If Accounts listed equal more than 100% – assume proportionate reduction to each Account selected; 

  

	 	(d)	 	If no Valuation Fund is selected – assume a Money Market type Fund was selected; 

  

	 	(e)	 	If Valuation Fund(s) selected equal less than 100% – assume that Money Market Fund was selected for balance; 

  

	 	(f)	 	If Valuation Fund(s) selected equal more than 100% – assume proportionate reduction to each Valuation Fund selected; 

  

	 	(g)	 	If no Distribution Election is chosen – assume lump sum for In-Service Account and three (3) year for Retirement Account was selected; and 

  

	 	(h)	 	If no time of payment is chosen for In-Service Account – assume the earliest possible date available under the provisions of Section 5.2 below was selected.

  
 ARTICLE IV - DEFERRED ACCOUNT

  

	4.1.	 	Accounts. The Compensation deferred by a Participant under the Plan, any Discretionary Contributions and Interest shall be credited to the Participant’s
Account(s). Separate accounts may be maintained on the books of the Company to reflect the different Accounts chosen by the Participant, and the Participant shall designate the portion of each deferral of compensation that will be credited to each
Account as set forth in Section 3.2(a), above. These Accounts shall be used solely to calculate the amount payable to each Participant under this Plan and shall not constitute a separate fund of assets. 

  

	4.2.	 	 Timing of Credits; Withholding. A Participant’s deferred Compensation shall be credited to each Account designated by the Participant on the day
on which the compensation deferred would have otherwise been payable to the Participant. Any Discretionary Contributions shall be credited to the appropriate Account(s) as provided in Section 4.4. Any withholding of taxes or other amounts with
respect to deferred Compensation that is 

  

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required by local, state or federal law may be withheld from the Participant’s corresponding non-deferred portion of the Compensation.

  

	4.3.	 	Valuation Funds. A Participant shall designate, at a time and in a manner acceptable to the Committee, one or more Valuation Funds for each Account for the sole
purpose of determining the amount of Interest to be credited or debited to such Account. Such election shall designate the portion of each deferral of Compensation made into each Account that shall be deemed to be allocated among the available
Valuation Fund(s), and such election shall apply to each succeeding deferral of Compensation until such time as the Participant shall file a new election with the Committee. Upon notice to the Committee, the Participant may also reallocate the
balance in each Valuation Fund among the other available Valuation Funds as of the next succeeding Determination Date, but in no event shall such re-allocation occur more frequently than daily. The election of deemed investments among the options
provided shall be the sole responsibility of each Participant. The Company and Committee members are not authorized to make any recommendation to any Participant with respect to such election. Each Participant assumes all risk connected with any
adjustment to the value of his or her Account. Neither the Committee nor the Company in any way guarantees against loss or depreciation. 

  

	4.4.	 	Discretionary Contributions. Company may, but shall not be obligated to, make Discretionary Contributions to a Participant’s Account. Discretionary Contributions
shall be credited at such times and in such amounts as recommended by the Committee and approved by the Compensation Committee of the Board, or the Board in its sole discretion. A Participant must be employed by the Company on the date that any
Discretionary Contributions are credited to the Participant’s Account. When an individual first becomes eligible to participate in this Plan during a Deferral Period, any Discretionary Contribution awarded to such Participant shall be prorated
based upon the number of months that he or she was a Participant during such Deferral Period. Unless the Committee specifies otherwise, such Discretionary Contribution shall be allocated to the Retirement Account. 

  

	4.5.	 	Determination of Accounts. Each Participant’s Account as of each Determination Date shall consist of the balance of the Account as of the immediately preceding
Determination Date, adjusted as follows: 

  

	 	(a)	 	New Deferrals. Each Account shall be increased by any deferred Compensation credited since such prior Determination Date in the proportion chosen by the Participant,
except that no amount of new deferrals shall be credited to an Account at the same time that a distribution is to be made from that Account. 

  

	 	(b)	 	Company Contributions. Each Account shall be increased by any Discretionary Contributions credited since such prior Determination Date as set forth above in sections
4.1 and 4.4 or as otherwise directed by the Committee. 

  

	 	(c)	 	 Distributions. Each Account shall be reduced by the amount of each benefit payment made from that Account since the prior Determination Date.
Distributions shall be deemed to have been made proportionally from each of the Valuation Funds maintained within such Account based on the proportion that such Valuation Fund 

  

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bears to the sum of all Valuation Funds maintained within such Account for that Participant as of the Determination Date immediately preceding the date of
payment. 

  

	 	(d)	 	Interest. Each Account shall be increased or decreased by the Interest credited to such Account since such Determination Date as though the balance of that Account as
of the beginning of the current month had been invested in the applicable Valuation Funds chosen by the Participant. 

  

	4.6.	 	Vesting of Accounts. Each Participant shall be vested in the amounts credited to such Participant’s Account and Interest thereon as follows:

  

	 	(a)	 	Amounts Deferred. A Participant shall be one hundred percent (100%) vested at all times in the amount of Compensation elected to be deferred under this Plan and
Interest thereon. 

  

	 	(b)	 	Discretionary Contributions. Participants in the Plan who were employees of the Company prior to February 1, 2003 shall be one hundred percent (100%) vested at all
times in any Discretionary Contributions and Interest thereon. Participants in the Plan who became employees of the Company on or after February 1, 2003, or become eligible to participant in the Plan on or after June 1, 2003 shall become one hundred
percent (100%) vested in any Discretionary Contributions and Interest thereon upon the Participant’s having attained five (5) Years of participation in this Plan. In the event of a Change in Control, all Participants shall immediately become
one hundred percent (100%) vested in any Discretionary Contributions and Interest thereon. 

  

	4.7.	 	Loans. No loans to Participants of amounts credited to a Participant’s Account shall be permitted. 

  

	4.8.	 	Statement of Accounts. The Committee shall provide to each Participant a statement showing the balances in the Participant’s Account on a quarterly basis.

  
 ARTICLE V - PLAN BENEFITS

  

	5.1.	 	Retirement Account. The vested portion of a Participant’s Retirement Account shall be distributed to the Participant following the Participant’s Separation
from Service with the Company. Distribution of the vested portion of a Participant’s Retirement Account shall be made in a lump sum, except that if the payment under this provision is a result of the Participant’s retirement, then the
benefit may be paid in annual installments if so indicated on the Participant’s Distribution Election. The first payment to the Participant, or Beneficiary in the event of the Participant’s death shall be made as promptly as
administratively practicable following the Separation from Service. 

  

	5.2.	 	 In-Service Account. The vested portion of a Participant’s In-Service Account with respect to a particular Deferral Period shall be distributed to
the Participant in the year elected by the Participant in the Deferral Commitment for such Deferral Period which designated a portion of the Compensation deferred be allocated to the In-Service Account, but in no event shall 

  

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the date selected be earlier than the first day of the sixth calendar year following the initial filing of the Deferral Commitment with respect to that
In-Service Account. The first payment to the Participant, or Beneficiary in the event of the Participant’s death shall be as promptly as administratively practicable pursuant to the Participant’s elected distribution. Distribution of the
vested portion of the Participant’s In-Service Account shall be made in a lump sum or annual installments as indicated on the Participant’s Distribution Election; provided, however, if the Participant terminates employment with the Company
prior to the year so chosen by the Participant and the Participant’s Distribution Election with respect to his or her Retirement Account would require earlier distribution, the vested portion of the In-Service Account shall be added to the
Retirement Account as of the date of termination of service and shall be paid in accordance with the provisions of Section 5.1, above. 

  

	5.3.	 	Death Benefit. Upon the death of a Participant prior to the commencement of benefits under this Plan from any particular Account, the Company shall pay to the
Participant’s Beneficiary an amount equal to the vested Account balance in that Account in the form of a lump sum payment as promptly as administratively practicable following the Participant’s death. In the event of the death of the
Participant after the commencement of benefits under this Plan from any Account, the benefits from that Account(s) shall be paid to the Participant’s designated Beneficiary from that Account at the same time and in the same manner as if the
Participant had survived. 

  

	5.4.	 	Hardship Distributions. Notwithstanding the terms of any Deferral Commitment made by a Participant hereunder, the Committee may, in its sole discretion, permit the
withdrawal of all or a portion of the vested amounts credited to a Participant’s Account, upon the request of the Participant or the Participant’s representative, or following the death of a Participant upon the request of a
Participant’s Beneficiary or such Beneficiary’s representative, if the Committee determines that the Participant or Beneficiary, as the case may be, is confronted with an Unforeseeable Emergency. The Participant or Beneficiary shall
provide to the Committee such evidence as the Committee may require to demonstrate that such emergency exists and financial hardship would occur if the withdrawal were not permitted. Any withdrawal under this Section shall be limited to the amount
necessary to meet the emergency. Payment shall be made, as soon as practicable after the Committee approves the payment and determines the amount of the payment, in a single lump sum from the portion of the Account for Deferral Periods with the
longest number of installment payments being first (from deferred compensation first and then from Discretionary Contributions for the same Deferral Period), and then from the portion of the Account representing Deferral Periods with the latest
payment commencement dates first (from deferred compensation first and then from Discretionary Contributions for the same Deferral Period), in each case in accordance with Section 4.5(c). 

  

	5.5.	 	 Form of Payment. Unless otherwise specified in Section 5.1, 5.2, 5.3, or 5.4, the benefits payable from any Account under this Plan shall be paid in
the form of benefit as provided below, and specified by the Participant in the Distribution Election, which Distribution Election shall be filed by the Participant when the Participant files his or her Deferral 

  

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Commitment with respect to any particular deferral period. The Distribution Election filed for any such deferral period shall govern deferrals made for such
Deferral Period together with Interest thereon and is irrevocable. The permitted forms of benefit payments are: 

  

	 	(a)	 	A lump sum amount which is equal to the vested Account balance; and 

  

	 	(b)	 	Annual installments for a period of up to ten (10) years (or in the event of payment of the In-Service Account, a maximum of five (5) years) where the annual payment shall be equal
to the balance of the Account immediately prior to the payment, multiplied by a fraction, the numerator of which is one (1) and the denominator of which commences at the number of annual payments initially chosen and is reduced by one (1) in each
succeeding year. Interest on the unpaid balance shall be based on the most recent allocation among the available Valuation Funds chosen by the Participant, made in accordance with Section 4.3, above. 

  

	5.6.	 	Small Account. If the total of a Participant’s vested, unpaid Account balance as of the time the payments are to commence from the Participant’s Account is
less than $10,000, the remaining unpaid, vested Account shall be paid in a lump sum, notwithstanding any election by the Participant to the contrary. 

  

	5.7.	 	Withholding; Payroll Taxes. The Company may withhold from any payment made pursuant to this Plan any taxes required to be withheld from such payments under local,
state or federal law. A Beneficiary, however, may elect not to have withholding of federal income tax pursuant to Section 3405(a)(2) of the Code, or any successor provision thereto. 

  

	5.8.	 	Payment to Guardian. If a Plan benefit is payable to a minor or a person declared incompetent or to a person incapable of handling the disposition of the property, the
Committee may direct payment to the guardian, legal representative or person having the care and custody of such minor, incompetent or person. The Committee may require proof of incompetency, minority, incapacity or guardianship as it may deem
appropriate prior to distribution. Such distribution shall completely discharge the Committee and Company from all liability with respect to such benefit. 

  

	5.9.	 	Effect of Payment. The full payment of the applicable benefit under this Article V shall completely discharge all obligations on the part of the Company to the
Participant (and the Participant’s Beneficiary) with respect to the operation of this Plan, and the Participant’s (and Participant’s Beneficiary’s) rights under this Plan shall terminate. 

  
 ARTICLE VI - BENEFICIARY DESIGNATION 
  

	6.1.	 	Beneficiary Designation. Each Participant shall have the right, at any time, to designate one (1) or more Beneficiaries (both primary as well as secondary) to whom
benefits under this Plan shall be paid in the event of Participant’s death prior to complete distribution of the Participant’s vested Account balance. Each Beneficiary designation shall be in a written form prescribed by the Committee and
shall be effective only when filed with the Committee during the Participant’s lifetime. 

  

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	6.2.	 	Changing Beneficiary. Any Beneficiary designation may be changed by a Participant without the consent of the previously named Beneficiary by the filing of a new
Beneficiary designation with the Committee. 

  

	6.3.	 	No Beneficiary Designation. If any Participant fails to designate a Beneficiary in the manner provided above, if the designation is void, or if the Beneficiary
designated by a deceased Participant predeceases the Participant or dies before complete distribution of the Participant’s benefits, the Participant’s benefits under this Plan shall be payable to the Participant’s estate.

  

	6.4.	 	Effect of Payment. Payment to the Beneficiary or the Participant’s estate shall completely discharge the Company’s obligations under this Plan.

  
 ARTICLE VII - ADMINISTRATION

  

	7.1.	 	Committee Duties. This Plan shall be administered by the Committee, which shall consist of not less than three (3) persons appointed by the Board, except in the event
of a Change in Control as provided in Section 7.5 below. The Committee shall have the authority to make, amend, interpret and enforce all appropriate rules and regulations for the administration of the Plan and decide or resolve any and all
questions, including interpretations of the Plan, as they may arise in such administration. A majority vote of the Committee members shall control any decision. Members of the Committee may be Participants under this Plan. 

 

	7.2.	 	Agents. The Committee may, from time to time, employ agents, including employees of the Company, and delegate to them such administrative or other duties as are
required under the Plan and as it sees fit, and may from time to time consult with counsel who may be counsel to the Company. 

  

	7.3.	 	Binding Effect of Decisions. The decision or action of the Committee with respect to any question arising out of or in connection with the administration,
interpretation and application of the Plan and the rules and regulations promulgated hereunder shall be final, conclusive and binding upon all persons having any interest in the Plan. 

  

	7.4.	 	Indemnity of Committee. The Company shall indemnify and hold harmless the members of the Committee against any and all claims, loss, damage, expense or liability
arising from any action or failure to act with respect to this Plan on account of such member’s service on the Committee, except in the case of such member’s gross negligence or willful misconduct. 

  

	7.5.	 	Election of Committee After Change in Control. After a Change in Control, vacancies on the Committee shall be filled by majority vote of the remaining Committee
members and Committee members may be removed only by such a vote. If no Committee members remain, a new Committee shall be elected by majority vote of the Participants in the Plan immediately preceding such Change in Control. No amendment shall be
made to Article VII or other Plan provisions regarding Committee authority with respect to the Plan without prior approval by the Committee. 

  

 12 

 ARTICLE VIII - CLAIMS PROCEDURE 
  

	8.1.	 	Claims and Appeals Procedure. Any person or entity claiming a benefit, requesting an interpretation or ruling under the Plan (hereinafter referred to as
“Claimant”), or requesting information under the Plan shall present the request in writing to the Committee, which shall respond in writing as soon as practicable. The Committee shall establish a claims procedure that is in
accordance with Company policies and that is intended to afford a reasonable opportunity to any Claimant for a full and fair review of any adverse decision of the Committee with respect to a Claimant’s claim or request.

  
 ARTICLE IX - AMENDMENT AND TERMINATION OF
PLAN 
  

	9.1.	 	Amendment. The Company, acting through the Board or the Board’s authorized delegate, may at any time amend the Plan by written instrument, notice of which is
given to all Participants and to any Beneficiary receiving installment payments, provided, however, that no amendment shall reduce the amount accrued in any Account as of the date such notice of the amendment is given. 

  

	9.2.	 	Termination of the Plan. The Company, acting through the Board or the Board’s authorized delegate, may at any time suspend or terminate the Plan as follows:

  

	 	(a)	 	Suspension. The Board may suspend the Plan by instructing the Committee not to accept any additional Deferral Commitments. If such a suspension occurs, the Plan shall
continue to operate and be effective with regard to Deferral Commitments entered into prior to the effective date of such suspension. 

  

	 	(b)	 	Complete Termination. The Board may completely terminate the Plan by instructing the Committee not to accept any additional Deferral Commitments, and by terminating
all ongoing Deferral Commitments. In the event of complete termination, the Plan shall cease to operate and Company shall distribute each Account to the appropriate Participant. Payment shall be made as a lump sum or in the number of annual
installments indicated below based on the sum of the Participant’s Account Balances at the time of termination of the Plan by the Board where the annual payment shall be equal to the balance of the Accounts immediately prior to the payment,
multiplied by a fraction, the numerator of which is one (1) and the denominator of which commences at the number of annual payments indicated below and is reduced by one (1) in each succeeding year: 

  

	 Account Balance

	  	 Payout Period

	 Less than $10,000
	  	Lump Sum
	 $10,000 but less than $50,000
	  	3 Years
	 More than $50,000
	  	5 Years

  

 13 

 Interest on the unpaid balance shall be based on the most recent allocation among the available Valuation
Funds chosen by the Participant in accordance with Section 4.3. 
  
 ARTICLE X - MISCELLANEOUS 
  

	10.1.	 	Unfunded Plan. The Plan constitutes a mere promise by the Company to make benefit payments in the future. The Company’s obligations under the Plan shall be
unfunded and unsecured promises to pay. Except as expressly set forth in this Section 10.1, the Company shall not be obligated under any circumstance to fund its financial obligations under this Plan. It may, in its discretion, set aside funds in a
trust or other vehicle, subject to the claims of its creditors, in order to assist it in meeting its obligations under the Plan, if such arrangement will not cause the Plan to be considered a funded deferred compensation plan under ERISA, or the
Code and provided, further, that any trust created by the Company and any assets held by such trust to assist the Company in meeting its obligations under the Plan will conform to the terms of any model rabbi trust, as then promulgated by the
Internal Revenue Service. This Plan is an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of “management or highly-compensated employees” within the meaning of Sections 201, 301, and 401 of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA. Accordingly, the Board may terminate the Plan and make no further
benefit payments or remove certain employees as Participants if it is determined by the United States Department of Labor, a court of competent jurisdiction, or an opinion of counsel that the Plan constitutes an employee pension benefit plan within
the meaning of Section 3(2) of ERISA (as currently in effect or hereafter amended) which is not so exempt. 

  

	10.2.	 	Company Obligation. The obligation to make benefit payments to any Participant under the Plan shall be an obligation solely of the Company with respect to the deferred
Compensation receivable from, and contributions by, the Company and shall not be an obligation of another company. 

  

	10.3.	 	Unsecured General Creditor. Neither the Company nor this Plan gives the Participant any beneficial ownership interest in any assets of the Company. To the extent that
any Participant or Beneficiary or other person acquires a right to receive payments under the Plan, such right shall be no greater than the right, and each Participant and Beneficiary shall at all times have the status, of a general unsecured
creditor of the Company. 

  

	10.4.	 	 Nonalienation/Nonassignability. Except as may be required by law, neither the Participant nor any Beneficiary shall have the right to, directly or
indirectly, alienate, assign, transfer, pledge, anticipate or encumber (except by reason of death) any amount that is or may be payable hereunder, including in respect of any liability of a Participant or Beneficiary for alimony or other payments
for the support of a spouse, former spouse, child or other dependent, prior to actually being received by the Participant or Beneficiary hereunder, nor shall the Participant’s or Beneficiary’s rights to benefit payments under the Plan be
subject in any manner to anticipation, alienation, sale, 

  

 14 

	 	 
transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or Beneficiary or to the debts, contracts, liabilities,
engagements, or torts of any Participant or Beneficiary, or transfer by operation of law in the event of bankruptcy or insolvency of the Participant or any Beneficiary, or any legal process. 

  

	10.5.	 	Not a Contract of Employment. This Plan shall not constitute a contract of employment between Company and the Participant. Nothing in this Plan shall give a
Participant the right to be retained in the service of Company or to interfere with the right of the Company to discipline or discharge a Participant at any time. 

  

	10.6.	 	Protective Provisions. A Participant will cooperate with Company by furnishing any and all information requested by Company, in order to facilitate the payment of
benefits hereunder, and by taking such physical examinations as Company may deem necessary and taking such other action as may be requested by Company. 

  

	10.7.	 	Governing Law. The provisions of this Plan shall be construed and interpreted according to the laws of the Commonwealth of Pennsylvania, without regard to conflicts of
laws principles, except as preempted by federal law. 

  

	10.8.	 	Validity. If any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof, but
this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein. 

  

	10.9.	 	Notice. Any notice required or permitted under the Plan shall be sufficient if in writing and hand delivered or sent by registered or certified mail or recognized
overnight delivery service. Such notice shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the third business day following the date shown on the postmark on the receipt for registration or certification. Mailed
notice to the Committee shall be directed to the Company’s address at 1010 Murry Ridge Lane, Murrysville, Pennsylvania, Attention: Vice President, Human Resources. Mailed notice to a Participant or Beneficiary shall be directed to the
individual’s last known address in Company’s records. 

  

	10.10.	 	Successors. The provisions of this Plan shall bind and inure to the benefit of Company and its successors and assigns. The term successors as used herein shall include
any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of Company, and successors of any such corporation or other business entity.

  

 15 

 EXHIBIT A 
  

Valuation Fund Options (2003) 
  
 Sun Capital Money Market Fund 
  
 PIMCO Total Return Portfolio 
  
 Lord Abbett
Series - Growth and Income Portfolio 
  
 MFS/Sun Life Total Return Series (SC)

  
 Dreyfus Stock Index Fund, Inc. (Initial Shares) 
  
 INVESCO VIF-Small Company Growth Fund 
  
 AIM V.I. International Growth Fund 
  
 SC Blue Chip Mid Cap Fund 
  
 Scudder VIT Small Cap Index (Class B) 
  
 Sun Capital All Cap Fund 
  

 16Stock Incentive Plan

 Exhibit 10.50 
  
 RESPIRONICS, INC. 
  
 2000 STOCK INCENTIVE PLAN 
  
 as amended on May 23, 2003 
  
 The purposes of the 2000 Stock Incentive Plan (the “Plan”) are to encourage eligible individuals to increase their efforts to make Respironics,
Inc. (the “Corporation”) and its Subsidiaries more successful, to provide an additional inducement for such individuals to remain with the Corporation or a Subsidiary, to reward such individuals by providing an opportunity to acquire
shares of the Common Stock, par value $.01 per share, of the Corporation (the “Common Stock”) on favorable terms and to provide a means through which the Corporation may attract able persons to enter the service of the Corporation or one
of its Subsidiaries as employees, consultants or directors. For the purposes of the Plan, the term “Subsidiary” means any corporation in an unbroken chain of corporations beginning with the Corporation, if each of the corporations other
than the last corporation in the unbroken chain owns stock possessing at least fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 
  
 SECTION 1 
  
 Administration 
  
 The Plan shall be administered by a Committee (the “Committee”)
appointed by the Board of Directors of the Corporation (the “Board”) and consisting of not less than two members of the Board, each of whom at the time of appointment to the Committee and at all times during service as a member of the
Committee shall be both (1) a “non-employee director” as then defined under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor rule and (2) an “outside director” as
then defined in the regulations under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor provision. Notwithstanding the foregoing, unless otherwise determined by the Board, the Board shall
administer the Plan, and otherwise exercise the same authority as the Committee, with respect to grants to members of the Board who are not employees of the Corporation or any Subsidiary (“Non-Employee Directors”). 
  
 The Committee shall interpret the Plan and prescribe such rules, regulations
and procedures in connection with the operations of the Plan as it shall deem to be necessary and advisable for the administration of the Plan consistent with the purposes of the Plan. 
  
 The Committee shall keep records of action taken at its meetings. A majority of the Committee shall constitute a quorum at
any meeting, and the acts of a majority of the members present at any meeting at which a quorum is present, or acts approved in writing by all members of the Committee, shall be the acts of the Committee. 
  
 SECTION 2 
  
 Eligibility 
  
 Those employees of the Corporation or any Subsidiary who share
responsibility for the management, growth or protection of the business of the Corporation or any Subsidiary shall be eligible to be granted stock options (with or without cash payment rights) and to receive restricted shares as described herein.
Non-Employee Directors and consultants who share responsibility for the management, growth or protection of the business of the Corporation shall be eligible to be granted nonstatutory stock options, as described herein. Eligible employees,
Non-Employee Directors and consultants are collectively referred to herein as “Participants”. 
  
 Subject to the provisions of the Plan, the Committee shall have full and final authority, in its discretion, to grant stock options (with or without cash
payment rights) and to award restricted shares as described herein and to determine the Participants to whom any such grant shall be made and the number of shares to be covered thereby. In determining the eligibility of any Participant, as well as
in determining the number of shares covered by each grant of a stock option or restricted shares and whether cash payment rights shall be granted in conjunction with a stock option, the Committee shall consider the position and the responsibilities
of the Participant being considered, the nature and value to the Corporation or a Subsidiary of his or her services, his or her present and/or potential contribution to the success of the Corporation or a Subsidiary and such other factors as the
Committee may deem relevant. Notwithstanding any other provision contained in the Plan except for Section 5(G)(x) and Sections 8(A)(5)(b) and (c), with regard to Non-Employee Directors, the selection of those Non-Employee Directors to whom stock
options are to be granted, the timing of such grants, the number of shares subject to any stock option, the exercise price of any stock option, the periods during which any stock option may be exercised and the term of any stock option shall be as
hereinafter provided, and the Committee and the Board shall have no discretion as to such matters. 

 SECTION 3 
  

Shares Available under the Plan 
  
 The aggregate net number of shares of Common Stock which may be issued and as to which grants of stock options or restricted shares may be made under the
Plan is 1,400,000 shares, subject to adjustment and substitution as set forth in Section 7. If any stock option is exercised by delivering previously owned shares in payment of the option price, the number of shares so delivered to the Corporation
shall again be available for purposes of the Plan. If any stock option is cancelled by mutual consent or terminates or expires for any reason without having been exercised in full, the number of shares subject thereto shall again be available for
purposes of the Plan. If shares of Common Stock are forfeited to the Corporation pursuant to the restrictions applicable to restricted shares, the shares so forfeited shall again be available for purposes of the Plan. The shares which may be issued
under the Plan may be either authorized but unissued shares or treasury shares or partly each, as shall be determined from time to time by the Board. 
  
 The maximum aggregate number of shares of Common Stock which shall be available for the grant of stock options and restricted shares to any one individual
under the Plan during any calendar year shall be limited to 400,000 shares. The limitation in the preceding sentence shall be interpreted and applied in a manner consistent with Section 162(m) of the Code. 
  
 SECTION 4 
  
 Grant of Stock Options, Cash Payment 
 Rights and Awards of Restricted Shares 
  
 The Committee shall have authority, in its discretion, (a) to grant “incentive stock options” pursuant to Section 422 of the Code, to grant
“nonstatutory stock options” (i.e., stock options which do not qualify under Sections 422 or 423 of the Code) or to grant both types of stock options (but not in tandem) and (b) to award restricted shares. The Committee also shall
have the authority to grant cash payment rights in conjunction with nonstatutory stock options with the effect provided in Section 5(E). Cash payment rights may not be granted in conjunction with incentive stock options. Cash payment rights granted
in conjunction with a nonstatutory stock option may be granted either at the time the stock option is granted or at any time thereafter during the term of the stock option. 
  
 Notwithstanding any other provision contained in the Plan or in any stock option agreement, but subject to the possible
exercise of the Committee’s discretion contemplated in the last sentence of this Section 4, the aggregate fair market value, determined as provided in Section 5(I) on the date of grant, of the shares with respect to which incentive stock
options are exercisable for the first time by an employee during any calendar year under all plans of the corporation employing such employee, any parent or subsidiary corporation of such corporation and any predecessor corporation of any such
corporation shall not exceed $100,000. If the date on which one or more of such incentive stock options could first be exercised would be accelerated pursuant to any provision of the Plan or any stock option agreement, and the acceleration of such
exercise date would result in a violation of the restriction set forth in the preceding sentence, then, notwithstanding any such provision, but subject to the provisions of the next succeeding sentence, the exercise dates of such incentive stock
options shall be accelerated only to the date or dates, if any, that do not result in a violation of such restriction and, in such event, the exercise dates of the incentive stock options with the lowest option prices shall be accelerated to the
earliest such dates. The Committee may, in its discretion, authorize the acceleration of the exercise date of one or more incentive stock options even if such acceleration would violate the $100,000 restriction set forth in the first sentence of
this paragraph and even if such incentive stock options are thereby converted in whole or in part to nonstatutory stock options. 
  
 SECTION 5 
  
 Terms and Conditions of Stock Options 
 and Cash Payment Rights 

 
 Stock options and cash payment rights granted under the Plan shall be
subject to the following terms and conditions: 
  
 (A) The purchase price at which each stock option may be exercised (the “option price”) shall be such price as the Committee, in its discretion, shall determine but shall not be less than one hundred percent (100%) of the fair
market value per share of the Common Stock covered by the stock option on the date of grant, except that in the case of an incentive stock option granted to an employee who, immediately prior to such grant, owns stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the Corporation or any Subsidiary (a “Ten Percent Employee”), the option price shall not be less than one hundred ten percent (110%) of such fair market value on
the date of grant. For purposes of this Section 5(A), an individual (i) shall be considered as owning not only shares of stock owned individually but also all shares of stock that are at the time owned, directly or indirectly, by or for the spouse,
ancestors, lineal descendants and brothers and sisters (whether by the whole or half blood) of such individual and (ii) shall be considered as owning proportionately any shares owned, directly or indirectly, by or for any corporation, partnership,
estate or trust in which such individual is a shareholder, partner or beneficiary. 
  

 -2- 

 (B) The option price for each stock option shall be paid in full upon exercise and shall
be payable in cash in United States dollars (including check, bank draft or money order), which may include cash forwarded through a broker or other agent-sponsored exercise or financing program; provided, however, that in lieu of such cash the
person exercising the stock option may (if authorized by the Committee at the time of grant in the case of an incentive stock option, or at any time in the case of a nonstatutory stock option) pay the option price in whole or in part by delivering
to the Corporation shares of Common Stock having a fair market value on the date of exercise of the stock option, determined as provided in Section 5(I), equal to the option price for the shares being purchased; except that (i) any portion of the
option price representing a fraction of a share shall in any event be paid in cash and (ii) no shares of Common Stock which have been held for less than six months may be delivered in payment of the option price of a stock option. Delivery of shares
of Common Stock in payment of the exercise price of a stock option, if authorized by the Committee, may be accomplished through the effective transfer to the Corporation of shares of Common Stock held through a broker or other agent. If the person
exercising a stock option participates in a broker or other agent-sponsored exercise or financing program, the Corporation will cooperate with all reasonable procedures of the broker or other agent to permit participation by the person exercising
the stock option in the exercise or financing program. Notwithstanding any procedure of the broker or other agent-sponsored exercise or financing program, if the option price is paid in cash, the exercise of the stock option shall not be deemed to
occur and no shares of Common Stock will be issued until the Corporation has received full payment in cash (including check, bank draft or money order) for the option price from the broker or other agent. The date of exercise of a stock option shall
be determined under procedures established by the Committee, and as of the date of exercise the person exercising the stock option shall be considered for all purposes to be the owner of the shares with respect to which the stock option has been
exercised. 
  
 (C) Subject to Section 8(B), a
stock option granted to an employee or a consultant shall become exercisable at such time or times and/or upon the occurrence of such event or events as may be determined by the Committee. Unless otherwise determined by the Committee and reflected
in the stock option agreement with an employee or a consultant, a stock option shall be exercisable from its date of grant. No stock option shall be exercisable after the expiration of ten years (five years in the case of an incentive stock option
granted to a Ten Percent Employee) from the date of grant. A stock option to the extent exercisable at any time may be exercised in whole or in part. 
  
 (D) On the first business day following the date an individual, who was not immediately preceding such date a member of the Board, becomes
a Non-Employee Director, such Non-employee Director shall automatically and without further action by the Board or the Committee be granted a nonstatutory stock option to purchase 10,000 shares of Common Stock, subject to adjustment and substitution
as set forth in Section 7. On the third business day following the day of each annual meeting of the shareholders of the Corporation, each Non-Employee Director shall automatically and without further action by the Board or the Committee be granted
a nonstatutory stock option to purchase 6,500 shares of Common Stock, subject to adjustment and substitution as set forth in Section 7. If the number of shares remaining available for the grant of stock options under the Plan is not sufficient for
each Non-Employee Director to be granted an option for 6,500 shares (or the number of adjusted or substituted shares pursuant to Section 7), then each Non-Employee Director shall be granted an option for a number of whole shares equal to the number
of shares then remaining available divided by the number of Non-Employee Directors, disregarding any fractions of a share. Subject to Section 8(B) and Section 5(G), no stock option granted to a Non-Employee Director shall be exercisable by a grantee
until the first anniversary of the grant thereof, at which time it shall become exercisable for 25% of the shares covered thereby and shall thereafter be exercisable for an additional 25% of the shares covered thereby on the second anniversary of
the grant thereof and shall thereafter be exercisable for the remaining 50% of the shares covered thereby on the third anniversary of the grant thereof, such limitations being calculated, in the case of any resulting fraction, to the nearest lower
whole number of shares. Subject to Section 5(G) providing for earlier termination of a stock option, any stock option granted to a Non-Employee Director and not exercised in the year eligible shall continue to be exercisable thereafter until the end
of the term of such stock option. 
  
 Notwithstanding the foregoing provisions of this Section 5(D), a Non-Employee Director shall not be granted a nonstatutory stock option pursuant to the second sentence of Section 5(D) of this Plan in any year in which the Non-Employee
Director has been granted a nonstatutory stock option pursuant to the Corporation’s 1991 Non-Employee Directors’ Stock Option Plan (the “1991 Plan”) in the same year; provided that, in the event that the number of shares covered
by the option granted to such Non-Employee Director under the 1991 Plan for such year was less than 6,500 shares of Common Stock, as adjusted and substituted as set forth in Section 5 of the 1991 Plan, then such Non-Employee Director shall be
granted a nonstatutory stock option pursuant to this Plan for the amount of any such deficiency. 
  
 (E) Cash payment rights granted in conjunction with a nonstatutory stock option shall entitle the person who is entitled to exercise the
stock option, upon exercise of the stock option or-any portion thereof, to receive cash from the Corporation (in addition to the shares to be received upon exercise of the stock option) equal to (1) such percentage (not greater than 100%) as the
Committee, in its discretion, shall determine of the excess of the fair market value of a share of Common Stock on the date of exercise of the stock option over the option price per share of the stock option, multiplied by (2) the number of shares
covered by the stock option, or portion thereof, which is exercised. Payment of the cash provided for in this Section 5(E) shall be made by the Corporation as soon as practicable after the time the amount payable is determined. 
  

 -3- 

 (F) No incentive stock option and, except to the extent otherwise determined by the
Committee and reflected in the stock option agreement or an amendment thereto, no nonstatutory stock option shall be transferable by the grantee otherwise than by Will, or if the grantee dies intestate, by the laws of descent and distribution of the
state of domicile of the grantee at the time of death. All incentive stock options and, except to the extent otherwise determined by the Committee and reflected in the stock option agreement or an amendment thereto, all nonstatutory stock options
shall be exercisable during the lifetime of the grantee only by the grantee. 
  
 (G) Subject to the provisions of Section 4 in the case of incentive stock options, unless the Committee, in its discretion, shall otherwise determine in the case of grants of stock options to employees and
consultants: 
  
 (i) If the employment of a
grantee who is not disabled within the meaning of Section 422(c)(6) of the Code (a “Disabled Grantee”) is voluntarily terminated with the consent of the Corporation or a Subsidiary or a grantee who is an employee retires under any
retirement plan of the Corporation or a Subsidiary, any then outstanding incentive stock option held by such grantee shall be exercisable by the grantee (but only to the extent exercisable by the grantee immediately prior to the termination of
employment) at any time prior to the expiration date of such incentive stock option or within three months after the date of termination of employment, whichever is the shorter period; 
  
 (ii) If the employment or consulting relationship of a grantee who is not a Disabled Grantee is voluntarily
terminated with the consent of the Corporation or a Subsidiary or a grantee who is an employee retires under any retirement plan of the Corporation or a Subsidiary, any then outstanding nonstatutory stock option of such grantee (whether or not then
held by the grantee) shall be exercisable (but only to the extent exercisable immediately prior to the grantee’s termination of employment or termination of the consulting relationship) at any time prior to the expiration date of such
nonstatutory stock option or within one year after the date of termination of service, whichever is the shorter period; 
  
 (iii) If a grantee ceases to be a Non-Employee Director of the Corporation for any reason other than resignation, removal for cause or
death, any then outstanding nonstatutory stock option of such grantee (whether or not then held by the grantee) shall be exercisable (but only to the extent exercisable by the grantee immediately prior to ceasing to be a Non-Employee Director) at
any time prior to the expiration date of such stock option or within four years after the date the grantee ceases to be a Non-Employee Director, whichever is the shorter period; provided that, for purposes of determining when an outstanding stock
option held by a grantee who ceases to be a Non-Employee Director shall be exercisable, the anniversary date of the grant of such option in the year in question shall be deemed to be the date immediately preceding the date on which the annual
meeting of shareholders of the Corporation is held in that year, and further provided that, in the case such grantee is a Disabled Grantee, any then outstanding nonstatutory stock option shall be exercisable for such period whether or not
exercisable by the grantee immediately prior to ceasing to be a Non-Employee Director; 
  
 (iv) If the employment or consulting relationship of a grantee who is a Disabled Grantee is voluntarily terminated with the consent of the
Corporation or a Subsidiary, any then outstanding stock option of such grantee (whether or not then held by the grantee) shall be exercisable in full (whether or not so exercisable immediately prior to the grantee’s termination of employment or
the consulting relationship) at any time prior to the expiration date of such stock option or within one year after the date of termination of service, whichever is the shorter period; 
  
 (v) Following the death of a grantee during employment or a consulting relationship, any stock option of the
grantee outstanding at the time of death shall be exercisable in full (whether or not so exercisable immediately prior to the death of the grantee) by the person entitled to do so under the Will of the grantee, or, if the grantee shall fail to make
testamentary disposition of the stock option or shall die intestate, by the legal representative of the grantee (or, in the case of a nonstatutory stock option, if permitted under the stock option agreement, by the grantee’s inter vivos
transferee) at any time prior to the expiration date of such stock option or within one year after the date of death, whichever is the shorter period; 
  
 (vi) Following the death of a grantee during service as a Non-Employee Director, any stock option of the grantee outstanding at the time
of death shall be exercisable in full (whether or not so exercisable immediately prior to the death of the grantee) by the person entitled to do so under the Will of the grantee, or, if the grantee shall fail to make testamentary disposition of the
stock option or shall die intestate, by the legal representative of the grantee (or, if permitted under the stock option agreement, by the grantee’s inter vivos transferee) at any time prior to the expiration date of such stock option or
within two years after the date of death, whichever is the shorter period; 
  
 (vii) Following the death of a grantee after termination of employment or a consulting relationship or after ceasing to be a Non-Employee Director and during a period when a stock option is exercisable, any stock
option of the grantee outstanding at the time of death shall be exercisable (but only to the extent the stock option was exercisable immediately prior to the death of the grantee) by such person entitled to do so under the Will of the grantee or by
such legal representative (or, in the case of a 
  

 -4- 

 nonstatutory stock option, by such inter vivos transferee) at any time prior to the expiration
date of such stock option or within one year after the date of death, whichever is the shorter period; 
  
 (viii) Unless the exercise period of a stock option following termination of employment has been extended as provided in Section 8(C), if
the employment of a grantee terminates for any reason other than voluntary termination with the consent of the Corporation or a Subsidiary, retirement under any retirement plan of the Corporation or a Subsidiary or death, all stock options of the
grantee outstanding at the time of such termination of employment (whether or not then held by the grantee) shall automatically terminate; 
  
 (ix) If the consulting relationship of a grantee terminates for any reason other than voluntary termination with the consent of the
Corporation or a Subsidiary or death, all stock options of the grantee outstanding at the time of such termination (whether or not then held by the grantee) shall automatically terminate; and 
  
 (x) Unless otherwise determined by the Board in the case of
a resignation, if during his or her term of office as a Non-Employee Director a grantee resigns from the Board or is removed from office for cause, any outstanding stock option of the grantee (whether or not then held by the grantee) which is not
exercisable by the grantee immediately prior to resignation or removal shall terminate as of the date of resignation or removal, and any outstanding stock option of the grantee (whether of not then held by the grantee) which is exercisable by the
grantee immediately prior to resignation or removal shall be exercisable by the grantee (or, if permitted under the stock option agreement, by the grantee’s inter vivos transferee) at any time prior to the expiration date of such stock
option or within 90 days after the date of resignation or removal, whichever is the shorter period. 
  
 Whether termination of employment is a voluntary termination of employment with the consent of the Corporation and whether a grantee is a
Disabled Grantee shall be determined, in each case, in its discretion, by the Committee, and any such determination by the Committee shall be final and binding. Retention by the Corporation of a consultant shall terminate when the consultant is
notified in writing by the Corporation of the termination of his retention as a consultant. 
  
 If a grantee of a stock option engages in the operation or management of a business (whether as owner, partner, officer, director,
employee or otherwise and whether during or after termination of employment or service as a Non-Employee Director) which is in competition with the Corporation or any of its Subsidiaries, the Committee may immediately terminate all outstanding stock
options of the grantee (whether or not such stock options are then held by the grantee); provided, however, that this sentence shall not apply if the exercise period of a stock option following termination of employment has been extended as provided
in Section 8(C). Whether a grantee has engaged in the operation or management of a business which is in competition with the Corporation or any of its Subsidiaries shall also be determined, in its discretion, by the Committee, and any such
determination by the Committee shall be final and binding. 
  
 (H) All stock options and cash payment rights shall be confirmed by an agreement, or an amendment thereto, which shall be executed by the Corporation and the grantee. 
  
 (I) For all purposes under the Plan, fair market value of
the Common Stock shall be the mean between the following prices, as applicable, for the date as of which fair market value is to be determined as quoted in The Wall Street Journal (or in such other reliable publication as the Committee, in
its discretion, may determine to rely upon): (a) if the Common Stock is listed on the New York Stock Exchange, the highest and lowest sales prices per share of the Common Stock as quoted in the NYSE-Composite Transactions listing for such date, (b)
if the Common Stock is not listed on such exchange, the highest and lowest sales prices per share of Common Stock for such date on (or on any composite index including) the principal United States securities exchange registered under the Exchange
Act on which the Common Stock is listed, or (c) if the Common Stock is not listed on any such exchange, the highest and lowest sales prices per share of Common Stock for such date on the National Association of Securities Dealers Automated
Quotations System or any successor system then in use (“NASDAQ”). If there are no such sale price quotations for the date as of which fair market value is to be determined but there are such sale price quotations within a reasonable period
both before and after such date, then fair market value shall be determined by taking a weighted average of the means between the highest and lowest sales prices per share of Common Stock as so quoted on the nearest date before and the nearest date
after the date as of which fair market value is to be determined. The average should be weighted inversely by the respective numbers of trading days between the selling dates and the date as of which fair market value is to be determined. If there
are no such sale price quotations on or within a reasonable period both before and after the date as of which fair market value is to be determined, then fair market value of the Common Stock shall be the mean between the bona fide bid and asked
prices per share of Common Stock as so quoted for such date on NASDAQ, or if none, the weighted average of the means between such bona fide bid and asked prices on the nearest trading date before and the nearest trading date after the date as of
which fair market value is to be determined, if both such dates are within a reasonable period. The average is to be determined in the manner described above in this Section 5(I). If the fair market value of the Common Stock cannot be determined on
the basis previously set forth in this Section 5(I) on the date as of which fair market value is to be determined, the Committee shall in good faith determine the fair market value of the Common Stock on 

  

 -5- 

 
such date. Fair market value shall be determined without regard to any restriction other than a restriction which, by its terms, will never lapse.

  
 (J) The obligation of the Corporation to
issue shares of Common Stock under the Plan shall be subject to (i) the effectiveness of a registration statement under the Securities Act of 1933, as amended, with respect to such shares, if deemed necessary or appropriate by counsel for the
Corporation, (ii) the condition that the shares shall have been listed (or authorized for listing upon official notice of issuance) upon each stock exchange, if any, on which the Common Stock shares may then be listed and (iii) all other applicable
laws, regulations, rules and orders which may then be in effect. 
  
 Subject to the foregoing provisions of this Section and the other provisions of the Plan, any stock option granted under the Plan to employees or consultants may be exercised at such times and in such amounts and be subject to such
restrictions and other terms and conditions, if any, as shall be determined, in its discretion, by the Committee and set forth in the agreement referred to in Section 5(H), or an amendment thereto. 
  
 SECTION 6 
  
 Terms and Conditions of Restricted Shares 
  
 Restricted share awards shall be evidenced by a written agreement in the
form prescribed by the Committee in its discretion, which shall set forth the number of shares of Common Stock awarded, the restrictions imposed thereon (including, without limitation, restrictions on the right of the grantee to sell, assign,
transfer or encumber such shares while such shares are subject to other restrictions imposed under this Section 6), the duration of such restrictions, the events (which may, in the discretion of the Committee, include performance-based events) the
occurrence of which would cause a forfeiture of the restricted shares in whole or in part and such other terms and conditions as the Committee in its discretion deems appropriate. Restricted share awards shall be effective only upon execution of the
applicable restricted share agreement by the Corporation and the grantee. 
  
 Following a restricted share award and prior to the lapse or termination of the applicable restrictions, the Committee shall deposit share certificates for such restricted shares in escrow. Upon the lapse or
termination of the applicable restrictions (and not before such time), the grantee shall be issued or transferred share certificates for the restricted shares. From the date a restricted share award is effective, the grantee shall be a shareholder
with respect to all the shares represented by such certificates and shall have all the rights of a shareholder with respect to all such shares, including the right to vote such shares and to receive all dividends and other distributions paid with
respect to such shares, subject only to the restrictions imposed by the Committee. 
  
 If an awardee of restricted shares engages in the operation or management of a business (whether as owner, partner, officer, director, employee or otherwise and whether during or after termination of employment) which
is in competition with the Corporation or any of its Subsidiaries, the Committee may immediately declare forfeited all restricted shares held by the grantee as to which the restrictions have not yet lapsed; provided, however, that this sentence
shall not apply if the lapse of the restrictions applicable to the restricted shares has been accelerated as provided in Section 8(D). Whether a grantee has engaged in the operation or management of a business which is in competition with the
Corporation or any of its subsidiaries shall also be determined, in its discretion, by the Committee, and any such determination by the Committee shall be final and binding. 
  
 SECTION 7 
  
 Adjustment and Substitution of Shares 
  
 If a dividend or other distribution shall be declared upon the Common Stock payable in shares of Common Stock, the number of shares of Common Stock then
subject to any outstanding stock options, the number of shares of Common Stock which may be issued under the Plan but are not then subject to outstanding stock options and the maximum number of shares as to which stock options or restricted shares
may be granted and as to which shares may be awarded during any calendar year under Section 3, shall be adjusted by adding thereto the number of shares of Common Stock which would have been distributable thereon if such shares had been outstanding
on the date fixed for determining the shareholders entitled to receive such stock dividend or distribution. Shares of Common Stock so distributed with respect to any restricted shares held in escrow shall also be held by the Corporation in escrow
and shall be subject to the same restrictions as are applicable to the restricted shares on which they were distributed. 
  
 If the outstanding shares of Common Stock shall be changed into or exchangeable for a different number or kind of shares of stock or other securities of
the Corporation or another corporation, or cash or other property, whether through reorganization, reclassification, recapitalization, stock split-up, combination of shares, merger or consolidation, then there shall be substituted for each share of
Common Stock subject to any then outstanding stock option, and for each share of Common Stock which may be issued under the Plan but which is not then subject to any outstanding stock option, the number and kind of shares of stock or other
securities (and in the case of outstanding options, the cash or other property) into which each outstanding share of the Common Stock shall be so changed or for which each such share shall be exchangeable. Unless otherwise determined 

  

 -6- 

 
by the Committee in its discretion, any such stock or securities, as well as any cash or other property, into or for which any restricted shares held in
escrow shall be changed or exchangeable in any such transaction shall also be held by the Corporation in escrow and shall be subject to the same restrictions as are applicable to the restricted shares in respect of which such stock, securities, cash
or other property was issued or distributed. 
  
 In case of any
adjustment or substitution as provided for in this Section 7, the aggregate option price for all shares subject to each then outstanding stock option prior to such adjustment or substitution shall be the aggregate option price for all shares of
stock or other securities (including any fraction), cash or other property to which such shares shall have been adjusted or which shall have been substituted for such shares. Any new option price per share or other unit shall be carried to at least
three decimal places with the last decimal place rounded upwards to the nearest whole number. 
  
 If the outstanding shares of the Common Stock shall be changed in value by reason of any spin-off, split-off or split-up, or dividend in partial liquidation, dividend in property other than cash, or extraordinary
distribution to shareholders of the Common Stock, (a) the Committee shall make any adjustments to any then outstanding stock option which it determines are equitably required to prevent dilution or enlargement of the rights of optionees which would
otherwise result from any such transaction, and (b) unless otherwise determined by the Committee in its discretion, any stock, securities, cash or other property distributed with respect to any restricted shares held in escrow or for which any
restricted shares held in escrow shall be exchanged in any such transaction shall also be held by the Corporation in escrow and shall be subject to the same restrictions as are applicable to the restricted shares in respect of which such stock,
securities, cash or other property was distributed or exchanged. 
  
 No adjustment or substitution provided for in this Section 7 shall require the Corporation to issue or sell a fraction of a share or other security. Accordingly, all fractional shares or other securities which result from any such
adjustment or substitution shall be eliminated and not carried forward to any subsequent adjustment or substitution. Owners of restricted shares held in escrow shall be treated in the same manner as owners of Common Stock not held in escrow with
respect to fractional shares created by an adjustment or substitution of shares, except that, unless otherwise determined by the Committee in its discretion, any cash or other property paid in lieu of a fractional share shall be subject to
restrictions similar to those applicable to the restricted shares exchanged therefor. 
  
 If any such adjustment or substitution provided for in this Section 7 requires the approval of shareholders in order to enable the Corporation to grant incentive stock options, then no such adjustment or substitution
shall be made without the required shareholder approval. Notwithstanding the foregoing, in the case of incentive stock options, if the effect of any such adjustment or substitution would be to cause the stock option to fail to continue to qualify as
an incentive stock option or to cause a modification, extension or renewal of such stock option within the meaning of Section 424 of the Code, the Committee may elect that such adjustment or substitution not be made but rather shall use reasonable
efforts to effect such other adjustment of each then outstanding stock option as the Committee, in its discretion, shall deem equitable and which will not result in any disqualification, modification, extension or renewal (within the meaning of
Section 424 of the Code) of such incentive stock option. 
  
 In
the case of an adjustment in the number of shares of Common Stock set forth in Section 5(D) of the Plan on account of a dividend or other distribution declared upon the Common Stock payable in shares of the Common Stock, the adjustment provided for
in the first paragraph of this Section 7 may not be given any or only limited effect with respect to awards subsequent to the date of the adjustment if the Board should determine at the time of such dividend or other distribution that no or a
specified limited adjustment would be more appropriate for purposes of the Plan. Similarly, the adjustment provided for in the second paragraph of this Section 7 may be given a specified limited effect if the Board should determine at the time of
the transaction otherwise occasioning such adjustment such limited effect would be more appropriate for purposes of the Plan. 
  
 SECTION 8 
  
 Additional Rights in Certain Events 
  
 (A) Definitions. 
  
 For
purposes of this Section 8, the following terms shall have the following meanings: 
  
 (1) The term “Person” shall be used as that term is used in Sections 13(d) and 14(d) of the Exchange Act. 
  
 (2) Beneficial Ownership shall be determined as provided in
Rule 13d-3 under the Exchange Act as in effect on the effective date of the Plan. 
  
 (3) “Voting Shares” shall mean all securities of a company entitling the holders thereof to vote in an annual election of
Directors (without consideration of the rights of any class of stock other than the Common Stock to elect Directors by a separate class vote); and a specified percentage of “Voting Power” of a company shall mean such number of the Voting
Shares as shall enable the holders thereof to cast such percentage of all the votes which could be cast in an annual election of directors (without consideration of the rights of any class of stock other than the Common Stock to elect Directors by a
separate class vote). 
  

 -7- 

 (4) “Tender Offer” shall mean a tender offer or exchange offer to acquire
securities of the Corporation (other than such an offer made by the Corporation or any Subsidiary), whether or not such offer is approved or opposed by the Board. 
  
 (5) “Section 8 Event” shall mean the date upon which any of the following events occurs:

  
 (a) The Corporation acquires actual knowledge
that any Person other than the Corporation, a Subsidiary or any employee benefit plan(s) sponsored by the Corporation has acquired the Beneficial Ownership, directly or indirectly, of securities of the Corporation entitling such Person to 20% or
more of the Voting Power of the Corporation; 
  
 (b) The occurrence of the date provided for in action by the Board or the Committee, if any, to accelerate the exercise date of stock options and/or to release restrictions on restricted shares with respect to any award, following the
making of a Tender Offer to acquire securities of the Corporation entitling the holders thereof to 20% or more of the Voting Power of the Corporation; or 
  
 (c) The occurrence of the date provided for in action by the Board or the Committee, if any, to accelerate the exercise date of stock
options and/or to release restrictions on restricted shares with respect to any award, following the making of a solicitation subject to Rule 14a-11 under the Exchange Act (or any successor Rule) relating to the election or removal of 50% or more of
the members of any class of the Board by any person other than the Corporation; or 
  
 (d) The shareholders of the Corporation shall approve a merger, consolidation, share exchange, division or sale or other disposition of
assets of the Corporation as a result of which the shareholders of the Corporation immediately prior to such transaction shall not hold, directly or indirectly, immediately following such transaction a majority of the Voting Power of (i) in the case
of a merger or consolidation, the surviving or resulting corporation, (ii) in the case of a share exchange, the acquiring corporation or (iii) in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring
corporation which, immediately following the transaction, holds more than 10% of the consolidated assets of the Corporation immediately prior to the transaction; 
  
 provided, however, that (i) if securities beneficially owned by a grantee are included in determining the Beneficial
Ownership of a Person referred to in paragraph 5(a), (ii) a grantee is required to be named pursuant Item 2 of the Schedule 14D-1 (or any similar successor filing requirement) required to be filed by the bidder making a Tender Offer referred to in
paragraph 5(b) or (iii) if a grantee is a “participant” as defined in 14a-11 under the Exchange Act (or any successor Rule) in a solicitation (other than a solicitation by the Corporation) referred to in paragraph 5(c), then no Section 8
Event with respect to such grantee shall be deemed to have occurred by reason of such event. 
  
 (B) Acceleration of the Exercise Date of Stock Options. 
  
 Subject to the provisions of Section 4 in the case of incentive stock options, unless the agreement referred to in Section 5(H), or an amendment thereto,
shall otherwise provide, notwithstanding any other provision contained in the Plan, in case any “Section 8 Event” occurs all outstanding stock options (other than those held by a person referred to in the proviso to Section 8(a)(5)) shall
become immediately and fully exercisable whether or not otherwise exercisable by their terms. 
  
 (C) Extension of the Expiration Date of Stock Options. 
  
 Subject to the provisions of Section 4 in the case of incentive stock options and to the extent any stock options are exercisable on the date of the grantee’s termination of employment, unless the agreement
referred to in Section 5(H), or an amendment thereto, shall otherwise provide, notwithstanding any other provision contained in the Plan, all stock options held by a grantee (other than a grantee referred to in the proviso to Section 8(a)(5)) whose
employment with the Corporation or a Subsidiary terminates within one year of any Section 8 Event for any reason other than voluntary termination with the consent of the Corporation or a Subsidiary, retirement under any retirement plan of the
Corporation or a Subsidiary or death shall be exercisable for a period of three months from the date of such termination of employment, but in no event after the expiration date of the stock option. 
  
 (D) Lapse of Restrictions on Restricted Share Awards. 
  
 If any “Section 8 Event” occurs prior to the scheduled lapse of
all restrictions applicable to restricted share awards under the Plan (other than those held by a person referred to in the proviso to Section 8(a)(5)), then unless the agreement referred to in Section 6, or an amendment thereto, shall otherwise
provide, all such restrictions shall lapse upon the occurrence of any such “Section 8 Event” regardless of the scheduled lapse of such restrictions. 
  

 -8- 

 SECTION 9 
  

Effect of the Plan on the Rights of Participants and the Corporation 
  
 Neither the adoption of the Plan nor any action of the Board or the Committee pursuant to the Plan shall be deemed to give
any employee, consultant or Non-Employee Director any right to be granted a stock option (with or without cash payment rights) or to be awarded restricted shares under the Plan. Nothing in the Plan, in any stock option, in cash payment rights
granted under the Plan, in any restricted share award under the Plan or in any agreement providing for any of the foregoing shall confer any right to any employee to continue in the employ of the Corporation or any Subsidiary or any consultant or
Non-Employee Director to continue as a consultant or Non-Employee Director of the Corporation or interfere in any way with the rights of the Corporation or any Subsidiary to terminate the employment of any employee or relationship with a consultant
at any time or with the rights of the shareholders of the Corporation or the Board to elect and remove Non-Employee Directors. 
  
 SECTION 10 
  
 Amendment 
  
 The right to amend the Plan at any time and from time to time and the right to revoke or terminate the Plan are hereby specifically reserved to the Board; provided that no amendment of the Plan shall be made without shareholder approval (1)
if the effect of the amendment is (a) to make any changes in the class of employees eligible to receive incentive stock options under the Plan, (b) to increase the number of shares with respect to which incentive stock options may be granted under
the Plan or (2) if shareholder approval of the amendment is at the time required (a) by the rules of the NASDAQ National Market System or any stock exchange on which the Common Stock may then be listed or (b) for stock options granted under the Plan
to qualify as “performance based compensation” as then defined in the regulations under Section 162(m) of the Code. No alteration, amendment, revocation or termination of the Plan shall, without the written consent of the holder of a stock
option, cash payment rights or restricted shares theretofore awarded under the Plan, adversely affect the rights of such holder with respect thereto. 
  
 SECTION 11 
  
 Effective Date and Duration of Plan 
  
 The effective date and date of adoption of the Plan shall be September 29, 2000, the date of adoption of the Plan by the Board, provided that such
adoption of the Plan by the Board is approved by a majority of the votes cast at a duly held meeting of shareholders held on or prior to September 28, 2001 at which a quorum representing a majority of the outstanding voting stock of the Corporation
is, either in person or by proxy, present and voting. No stock option granted under the Plan may be exercised, and no restricted shares may be awarded until after such approval. No stock option or cash payment rights may be granted and no restricted
shares may be awarded under the Plan subsequent to September 29, 2010. 
  
 SECTION 12 
  
 Withholding 
  
 Income or employment taxes may be required to be withheld by the Corporation
or a Subsidiary in connection with the exercise of a stock option, upon a “disqualifying disposition” of the shares acquired upon exercise of an incentive stock option, at the time restricted shares are granted or vest or upon the receipt
by the grantee of cash in payment of cash payment rights or dividends, if any, on restricted stock which has not vested. To the extent required by applicable Federal, state, local or foreign law, the grantee shall make arrangements satisfactory to
the Corporation, in its discretion for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Corporation shall not be required to issue any Common Stock or make any cash payment under the Plan until such
obligations are satisfied. 
  

 -9-

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