Document:

EX-10.8

 

EXHIBIT 10.8

AMENDMENT NO. 1 TO

EXECUTIVE SEVERANCE AGREEMENT

      This AMENDMENT NO. 1 (the “Amendment”) to the Executive Severance Agreement dated November 19,
2003 (the “Agreement’) by and between THERMO ELECTRON CORPORATION, a Delaware corporation (the
“Company”), and Guy Broadbent (the “Executive”) is made this 9th day of November, 2006 by and
between the Company and the Executive. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in the Agreement.

      WHEREAS, the Company and the Executive have entered into the Agreement for the purpose of
describing the severance benefits that the Executive would receive in the event that Executive’s
employment with the Company is terminated under certain circumstances;

      WHEREAS, on November 9, 2006, the Company completed a merger with Fisher Scientific
International Inc. (the “Merger”), pursuant to which, among other things, the Company changed its
name to Thermo Fisher Scientific Inc.;

      WHEREAS, in connection with the Merger, the Company is making grants of options and restricted
shares to its executives and as a condition of such grants, the Company is requiring that the
executives sign a noncompetition agreement; and

      WHEREAS, the Company and the Executive have agreed to amend the Agreement in connection with
Executive’s execution of the noncompetition agreement between the Company and the Executive of even
date herewith;

      NOW, THEREFORE, in consideration for the mutual promises contained herein, the parties hereby
agree as follows.

      1. Amendments to Agreement.

          (a) All references to “Thermo Electron Corporation” in the Agreement are hereby amended to
read “Thermo Fisher Scientific Inc.”

          (b) Section 1 of the Agreement is hereby amended to add a new sub-section 1.4 to be and read
as follows:

          “1.4 “Good Reason” means the occurrence, without the Executive’s written consent, of
any of the events or circumstances set forth in clauses (a) through (f) below. Notwithstanding the
occurrence of any such event or circumstance, such occurrence shall not be deemed to constitute
Good Reason if, prior to the effective date of termination (which shall be not less than 15 days
following delivery of written notice of termination by Executive to the
Company), such event or circumstance has been fully corrected and the Executive has been reasonably
compensated for any losses or damages resulting therefrom.

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                    (a) the assignment to the Executive of duties inconsistent in any material respect with the
Executive’s position (including status, offices, titles and reporting requirements), authority or
responsibilities in effect as of the date of this Agreement or a material diminution in such
position, authority or responsibilities;

                    (b) a reduction in the Executive’s annual base salary as in effect on the date of
this Agreement or as the same was or may be increased hereafter from time to time;

                    (c) the failure by the Company to (i) continue in effect any material compensation or benefit
plan or program, including without limitation any life insurance, medical, health and accident or
disability plan and any vacation program or policy, in which the Executive participates or which is
applicable to the Executive (a “Benefit Plan”), unless an equitable arrangement (embodied in an
ongoing substitute or alternative plan) has been made with respect to such plan or program, (ii)
continue the Executive’s participation therein (or in such substitute or alternative plan) on a
basis not materially less favorable than the basis previously existing (iii) award cash bonuses to
the Executive in amounts and in a manner substantially consistent with past practice in light of
the Company’s financial performance and Executive’s performance or (iv) continue to provide any
material fringe benefit previously enjoyed by Executive;

                    (d) a change by the Company in the location at which the Executive performs the Executive’s
principal duties for the Company to a new location that is both (i) outside a radius of 50 miles
from the Executive’s principal residence and (ii) more than 30 miles from the location at which the
Executive performed the Executive’s principal duties for the Company immediately prior to the date
of this Agreement; or a requirement by the Company that the Executive travel on Company business to
a substantially greater extent than required immediately prior to the date of this Agreement;

                    (e) the failure of the Company to obtain the agreement from any successor to the Company to
assume and agree to perform this Agreement, as required by Section 6.1; and

                    (f) any failure of the Company to pay or provide to the Executive any portion of the
Executive’s compensation or benefits due under any Benefit Plan within seven days of the date such
compensation or benefits are due (provided, however, that in the case of benefits, the Company
shall have a period of 30 days after receipt of notice from Executive to cure any default), or any
material breach by the Company of this Agreement or any employment agreement with the Executive.

      The Executive’s right to terminate the Executive’s employment for Good Reason shall not be
affected by the Executive’s incapacity due to physical or mental illness.”

          (c) Section 2 of the Agreement is hereby amended and restated in its entirety as follows:

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          “2. Term of Agreement. This Agreement, and all rights and obligations of the parties
hereunder, shall take effect upon the Effective Date and shall expire upon the first to occur of
(a) the expiration of the Term (as defined below) or (b) the fulfillment by the Company of all of
its obligations under Sections 4 and 6.2 if the Executive’s employment with the Company terminates
prior to the expiration of the Term. “Term” shall mean the period commencing as of the Effective
Date and continuing in effect through November 9, 2011; provided, however, that on
November 9, 2011 and each November 9 thereafter, the Term shall be automatically extended for one
additional year unless, not later than six months prior to the scheduled expiration of the Term
(including any extension) thereof, the Company shall have given the Executive written notice that
the Term will not be extended.”

          (d) The initial clause of Section 4.1(a) of the Agreement is hereby amended and restated in
its entirety as follows:

          “(a) Termination Without Cause or for Good Reason. If the Executive’s employment with
the Company is terminated by the Company (other than for Cause, Disability or death) or by the
Executive for Good Reason, then the Executive shall be entitled to the following benefits:”

          (e) Section 4.1(a)(i) of the Agreement is hereby amended and restated in its entirety as
follows:

          “(i) the Company shall pay to the Executive in a lump sum in cash within 30 days after the
date of termination the aggregate of the following amounts:

                    (1) the sum of (A) the Executive’s base salary through the date of termination, (B) the
product of (x) the annual bonus paid or payable (including any bonus or portion thereof which has
been earned but deferred) for the most recently completed fiscal year and (y) a fraction, the
numerator of which is the number of days in the current fiscal year through the date of
termination, and the denominator of which is 365 and (C) the amount of any accrued vacation pay, to
the extent not previously paid (the sum of the amounts described in clauses (A), (B), and (C) shall
be hereinafter referred to as the “Accrued Obligations”); and

                    (2) the sum of (A) two (2) times the Executive’s annual base salary and target bonus as in
effect immediately prior to the date of termination, and (B) the amount of any accrued vacation
pay, to the extent not previously paid; and”

          (f) The reference to “18 months” in Section 4.1(a)(ii) is hereby amended to read “24 months”.

          (g) Section 4.1(b) of the Agreement is hereby amended and restated in its entirety as follows:

          “(b) Termination for Cause, Disability or Death. If the Company terminates the
Executive’s employment with the Company for Cause, then the Company shall (i) pay the Executive in
a lump sum in cash within 30 days after the date of termination, the Executive’s

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base salary through the date of termination and (ii) timely pay or provide to the Executive the Other Benefits.
If the Company terminates the Executive’s employment with the Company because of the Executive’s
disability or the Executive’s death, then the Company shall (i) pay the Executive or the
Executive’s estate, in a lump sum in cash within 30 days after the date of termination, the Accrued
Obligations and (ii) timely pay or provide to the Executive the Other Benefits.

          (h) Section 4.4 of the Agreement is hereby amended and restated in its entirety as follows:

          “4.4. Release of Claims by Executive. The Executive shall not be entitled to any
payments or other benefits hereunder unless the Executive executes and, if applicable, does not
revoke, a full and complete release of claims and a reasonable and customary separation agreement
that includes nondisparagement and cooperation provisions. The parties further agree that the
separation agreement shall not include any restrictive covenants that are in addition to those
already contained in the Noncompetition Agreement between the Company and Executive dated November
9, 2006.

      2. Miscellaneous.

          (a) No Other Amendments. Except as specifically provided in this Amendment, no other
amendments, revisions or changes are made to the Agreement. All other terms and conditions of the
Agreement remain in full force and effect and the Parties hereby ratify and confirm their rights
and obligations under the Agreement, as amended hereby.

          (b) Counterparts. This Amendment may be executed in one or more counterparts, each of
which shall be considered an original instrument, but all of which shall be considered one and the
same agreement, and shall become binding when one or more counterparts have been signed by each of
the Parties and delivered to each of them.

          (c) Governing Law. This amendment and the rights and obligations of the parties
hereunder shall be governed by and construed and interpreted in accordance with the internal laws
of the Commonwealth of Massachusetts.

          (e) Effectiveness of Amendment. The amendments to the Agreement contemplated by this
Amendment shall become effective upon the execution of this Amendment by the Parties.

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      IN WITNESS WHEREOF, the parties hereto have executed this Amendment under seal as of the day
and year first set forth above.

	 	 	 	 	 
	 	THERMO FISHER SCIENTIFIC INC.

	 
	 	By:  	/s/
Steve Sheehan
	 
	 	 	 	 
	 	 	 	 
	 
	 	EXECUTIVE:

	 
	 	 	 
	 	/s/ Guy Broadbent	 
	 	Guy Broadbent	 
	 

Page 5 of 5EX-10.9

 

EXHIBIT 10.9

THERMO FISHER SCIENTIFIC INC.

2005 STOCK INCENTIVE PLAN

as amended and restated on November 9, 2006

1. Purpose

     The purpose of this amended and restated 2005 Stock Incentive Plan (the “Plan”) of Thermo
Fisher Scientific Inc., a Delaware corporation (the “Company”), is to advance the interests of the
Company’s stockholders by enhancing the Company’s and its Subsidiaries’ (as defined below) ability
to attract, retain and motivate persons who are expected to make important contributions to the
Company or a Subsidiary and by providing such persons with equity ownership opportunities and
performance-based incentives that are intended to align their interests with those of the Company’s
stockholders. “Subsidiaries” means the present or future subsidiary corporations of the Company as
defined in Sections 424(f) of the Internal Revenue Code of 1986, as amended, and any regulations
promulgated thereunder (the “Code”) and any other business ventures (including, without limitation,
joint venture or limited liability company) in which the Company has a controlling interest.

2. Eligibility

     All of the employees, officers, directors, consultants and advisors of the Company and
its Subsidiaries are eligible to receive options, stock appreciation rights, restricted stock and
other stock-based awards (each, an “Award”) under the Plan. Each person who receives an Award
under the Plan is deemed a “Participant”.

3. Administration and Delegation

     (a) Administration by Board of Directors. The Plan will be administered by
the Board of Directors of the Company (the “Board”). The Board shall have authority to grant
Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating
to the Plan as it shall deem advisable. The Board may correct any defect, supply any omission or
reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem
expedient to carry the Plan into effect and it shall be the sole and final judge of such
expediency. All decisions by the Board shall be made in the Board’s sole discretion and shall be
final and binding on all persons having or claiming any interest in the Plan or in any Award. No
director or person acting pursuant to the authority delegated by the Board shall be liable for any
action or determination relating to or
under the Plan made in good faith.

     (b) Appointment of Committees. To the extent permitted by applicable law, the
Board may delegate any or all of its powers under the Plan to one or more committees or
subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean
the Board or a Committee of the Board or the officers referred to in Section 3(c) to the extent
that the Board’s powers or authority under the Plan have been delegated to such Committee or
officers.

 

 

     (c) Delegation to Officers. To the extent permitted by applicable law, the Board
may delegate to one or more officers of the Company the power to grant Awards to employees or
officers of the Company or any of its Subsidiaries and to exercise such other powers under the Plan
as the Board may determine, provided that the Board shall fix the terms of the Awards to be granted
by such officers (including the exercise price of such Awards, which may include a formula by which
the exercise price will be determined) and the maximum number of shares subject to Awards that the
officers may grant; provided further, however, that no officer shall be authorized to grant Awards
to any “executive officer” of the Company (as defined by Rule 3b-7 under the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)) or to any “officer” of the Company (as defined by
Rule 16a-1 under the Exchange Act).

4. Stock Available for Awards

     (a) Number of Shares. Subject to adjustment under Section 9, Awards may be
made under the Plan for up to 11,000,000 shares of common stock, $1.00 par value per share, of the
Company (the “Common Stock”). Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares. For purposes of counting the number of shares
available for the grant of Awards under the Plan, (i) shares of Common Stock covered by Independent
SARs (as defined in Section 6(b)(2)) shall be counted against the number of shares available for
the grant of Awards under the Plan; provided, however, that Independent SARs which
may be settled in cash only shall not be so counted; (ii) if any Award (A) expires or is
terminated, surrendered or canceled without having been fully exercised or is forfeited in whole or
in part (including as the result of shares of Common Stock subject to such Award being repurchased
by the Company at the original issuance price pursuant to a contractual repurchase right) or (B)
results in any Common Stock not being issued (including as a result of an Independent SAR that was
settleable either in cash or in stock actually being settled in cash), the unused Common Stock
covered by such Award shall again be available for the grant of Awards under the Plan; provided,
however, in the case of Incentive Stock Options (as hereinafter defined), the foregoing sentence
shall be subject to any limitations under the Code; and (iii) shares of Common Stock tendered to
the Company by a Participant to (A) purchase shares of Common Stock upon the exercise of an Award
or (B) satisfy tax withholding obligations (including shares retained from the Award creating the
tax obligation) shall not be added back to the number of shares available for the future grant of
Awards under the Plan.

     (b) Sub-limits. Subject to adjustment under Section 9, the following sub-limits on
the number of shares subject to Awards shall apply:

               (1) Section 162(m) Per-Participant Limit. The maximum number of shares of
Common Stock with respect to which Awards may be granted to any Participant under
the Plan shall be 1,500,000 per calendar year. For purposes of the foregoing limit, the
combination of an Option in tandem with a SAR (as each is hereafter defined) shall be treated as a
single Award. The per-Participant limit described in this Section 4(b)(1) shall be construed and
applied consistently with Section 162(m) of the Code or any successor provision thereto, and the
regulations thereunder (“Section 162(m)”).

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     (2) Limit on Awards other than Options and SARS. The maximum number of shares with
respect to which Awards other than Options and SARs may be granted shall be 3,000,000.

     (3) Limit on Awards to Directors. The maximum number of shares with respect to
which Awards may be granted to directors who are not employees of the Company or a Subsidiary at
the time of grant shall be 500,000.

5. Stock Options

     (a) General. The Board may grant options to purchase Common Stock (each, an
“Option”) and determine the number of shares of Common Stock to be covered by each Option, the
exercise price of each Option and the conditions and limitations applicable to the exercise of each
Option, including conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable. An Option which is not intended to be an Incentive Stock Option
(as hereinafter defined) shall be designated a “Nonstatutory Stock Option”.

     (b) Incentive Stock Options. An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be
granted to employees of the Company, any of the Company’s present or future subsidiary corporations
as defined in Sections 424(f) of the Code, and any other entities the employees of which are
eligible to receive Incentive Stock Options under the Code, and shall be subject to and shall be
construed consistently with the requirements of Section 422 of the Code. The Company shall have no
liability to a Participant, or any other party, if an Option (or any part thereof) that is intended
to be an Incentive Stock Option is not an Incentive Stock Option or for any action taken by the
Board pursuant to Section 10(f), including without limitation the conversion of an Incentive Stock
Option to a Nonstatutory Stock Option.

(c) Exercise Price.

     (1) Establishment of Exercise Price. The Board shall establish the exercise price of
each Option and specify such exercise price in the applicable option agreement; provided,
however, that the exercise price shall be not less than 100% of the fair market value per
share of Common Stock as determined by (or in a manner approved by) the Board (“Fair Market Value”)
as of the date the Option is granted.

     (2) Limitation on Repricing. Unless such action is approved by the Company’s
stockholders: (A) no outstanding Option granted under the Plan may be amended to provide an
exercise price per share that is
lower than the then-current exercise price per share of such outstanding Option (other than
adjustments pursuant to Section 9) and (B) the Board may not cancel any outstanding Option and
grant in substitution therefor new Awards under the Plan covering the same or a different number of
shares of Common Stock and having an exercise price per share lower than the then-current exercise
price per share of the cancelled Option.

     (d) Duration of Options. Each Option shall be exercisable at such time or
times and subject to such terms and conditions as the Board may specify in the applicable option
agreement; provided, however, that no Option will be granted for a term in excess
of 10 years.

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     (e) Exercise of Option. Options may be exercised by delivery to the Company of a
written notice of exercise signed by the proper person or by any other form of notice (including
electronic notice) approved by the Company together with payment in full as specified in Section
5(f) for the number of shares for which the Option is exercised. Shares of Common Stock subject to
the Option will be delivered by the Company following exercise either as soon as practicable or,
subject to such conditions as the Board shall specify, on a deferred basis (with the Company’s
obligation to be evidenced by an instrument providing for future delivery of the deferred shares at
the time or times specified by the Board).

     (f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option
granted under the Plan shall be paid for as follows:

          (1) in cash or by check, payable to the order of the Company;

          (2) except as the Board may otherwise provide in an option agreement, by (i) delivery of an
irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price and any required tax withholding or (ii)
delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the
exercise price and any required tax withholding;

          (3) when the Common Stock is registered under the Securities Exchange Act of 1934 (the
“Exchange Act”), by delivery of shares of Common Stock owned by the Participant valued at their
Fair Market Value as of the date the shares of Common Stock are so delivered, provided (i) such
method of payment is then permitted under applicable law, (ii) such Common Stock, if acquired
directly from the Company, was owned by the Participant for such minimum period of time, if any, as
may be established by the Board in its discretion and (iii) such Common Stock is not subject to any
repurchase, forfeiture, unfulfilled vesting or other similar requirements;

          (4) to the extent permitted by applicable law and by the Board, by (i) delivery of a
promissory note of the Participant to the Company on terms determined by the Board, or (ii) payment
of such other lawful consideration as the Board may determine; or

          (5) by any combination of the above permitted forms of payment.

     (g) Substitute Options. In connection with a merger or consolidation of an
entity with the Company or the acquisition by the Company of property or stock of an entity, the
Board may grant Options in substitution for any
options or other stock or stock-based awards granted by such entity or an affiliate thereof.
Substitute Options may be granted on such terms as the Board deems appropriate in the
circumstances, notwithstanding any limitations on Options contained in the other sections of this
Section 5 or in Section 2. Substitute Options shall not count against the overall share limit set
forth in Section 4(a), except as may be required by reason of Section 422 and related provisions of
the Code.

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6. Stock Appreciation Rights.

     (a) General. A Stock Appreciation Right, or SAR, is an Award entitling the
holder, upon exercise, to receive an amount in cash or Common Stock or a combination thereof (such
form to be determined by the Board) determined in whole or in part by reference to appreciation,
from and after the date of grant, in the fair market value of a share of Common Stock. SARs may be
based solely on appreciation in the fair market value of Common Stock or on a comparison of such
appreciation with some other measure of market growth such as (but not limited to) appreciation in
a recognized market index. The date as of which such appreciation or other measure is determined
shall be the exercise date unless another date is specified by the Board in the SAR Award.

     (b) Grants. Stock Appreciation Rights may be granted in tandem with, or
independently of, Options granted under the Plan.

          (1) Tandem Awards. When Stock Appreciation Rights are expressly granted in
tandem with Options, (i) the Stock Appreciation Right will be exercisable only at such time or
times, and to the extent, that the related Option is exercisable (except to the extent designated
by the Board in connection with a Reorganization Event or a Change in Control Event) and will be
exercisable in accordance with the procedure required for exercise of the related Option; (ii) the
Stock Appreciation Right will terminate and no longer be exercisable upon the termination or
exercise of the related Option, except to the extent designated by the Board in connection with a
Reorganization Event or a Change in Control Event and except that a Stock Appreciation Right
granted with respect to less than the full number of shares covered by an Option will not be
reduced until the number of shares as to which the related Option has been exercised or has
terminated exceeds the number of shares not covered by the Stock Appreciation Right; (iii) the
Option will terminate and no longer be exercisable upon the exercise of the related Stock
Appreciation Right; and (iv) the Stock Appreciation Right will be transferable only with the
related Option.

          (2) Independent SARs. A Stock Appreciation Right not expressly granted in tandem
with an Option (“Independent SAR”) will become exercisable at such time or times, and on such
conditions, as the Board may specify in the SAR Award.

     (c) Exercise. Stock Appreciation Rights may be exercised by delivery to the
Company (or its designee) of a written notice of exercise signed by the proper person or by any
other form of notice (including electronic notice) approved by the Company, together with any other
documents required by the Company.

7. Restricted Stock.

     (a) General. The Board may grant Awards entitling recipients to acquire
shares of Common Stock, subject to the right of the Company to repurchase all or part of such
shares at their issue price or other stated or formula price (or to require forfeiture of such
shares if issued at no cost) from the recipient in the event that conditions specified by the Board
in the applicable Award are not satisfied prior to the end of the applicable restriction period or
periods established by the Board for such Award (each, a “Restricted Stock Award”).

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     (b) Terms and Conditions. The Board shall determine the terms and conditions of a
Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue
price, if any.

     (c) Limitations on Vesting.

          (1) Except as set forth in subsection (c)(2) below, Restricted Stock Awards that vest based on
the passage of time alone shall be zero percent vested prior to the first anniversary of the date
of grant, no more than 33-1/3% vested prior to the second anniversary of the date of grant, and no
more than 66-2/3% vested prior to the third anniversary of the date of grant. Restricted Stock
Awards that vest upon the passage of time and provide for accelerated vesting based on performance
shall not vest prior to the first anniversary of the date of grant.

          (2) Subsection (c)(1) above shall not apply to (i) Awards granted pursuant to Section
10(i) or (ii) to a maximum of 500,000 shares of Common Stock with respect to which Restricted Stock
Awards may be granted. With respect to Restricted Stock Awards that are subject to subsection
(c)(1) above, the Board may waive its rights to repurchase shares of Common Stock (or waive
forfeiture thereof) or remove or modify any part or all of the restrictions (or vesting thereof)
applicable to the Restricted Stock Award (x) in exercise of the authority granted to the Board in
Section 10(d), at the time a Restricted Stock Award is granted and (y) pursuant to Section 9 or in
such other extraordinary circumstances (as determined by the Board) affecting the Company, a
Participant or the Plan after the Restricted Stock Award has been granted.

     (d) Stock Certificates. Any stock certificates issued in respect of a
Restricted Stock Award shall be registered in the name of the Participant and, unless otherwise
determined by the Board, deposited by the Participant, together with a stock power endorsed in
blank, with the Company (or its designee). At the expiration of the applicable restriction
periods, the Company (or such designee) shall deliver the certificates no longer subject to such
restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a
manner determined by the Company, by a Participant to receive amounts due or exercise rights of the
Participant in the event of the Participant’s death (the “Designated Beneficiary”). In the absence
of an effective designation by a Participant, “Designated Beneficiary” shall mean the Participant’s
estate.

     (e) Deferred Delivery of Shares. The Board may, at the time any Restricted Stock
Award is granted, provide that, at the time Common Stock would
otherwise be delivered pursuant to the Award, the Participant shall instead receive an
instrument evidencing the right to future delivery of Common Stock at such time or times, and on
such conditions, as the Board shall specify. The Board may at any time accelerate the time at
which delivery of all or any part of the Common Stock shall take place. The Board may also permit
an exchange of unvested shares of Common Stock that have already been delivered to a Participant
for an instrument evidencing the right to future delivery of Common Stock at such time or times,
and on such conditions, as the Board shall specify.

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8. Other Stock-Based Awards.

     (a) General.

     Other Awards of shares of Common Stock, and other Awards that are valued in whole or in part
by reference to, or are otherwise based on, shares of Common Stock or other property, may be
granted hereunder to Participants (“Other Stock Unit Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the future. Such Other
Stock Unit Awards shall also be available as a form of payment in the settlement of other Awards
granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise
entitled. Other Stock Unit Awards may be paid in shares of Common Stock or cash, as the Board
shall determine. Subject to the provisions of the Plan, the Board shall determine the conditions
of each Other Stock Unit Awards, including any purchase price applicable thereto. At the time any
Award is granted, the Board may provide that, at the time Common Stock would otherwise be delivered
pursuant to the Award, the Participant will instead receive an instrument evidencing the
Participant’s right to future delivery of the Common Stock.

     (b) Limitations on Vesting.

          (1) Except as set forth in subsection (b)(2) below, Other Stock Unit Awards that vest based on
the passage of time along shall be zero percent vested prior to the first anniversary of the date
of grant, no more that 33-1/3% vested prior to the second anniversary of the date of grant, and no
more than 66-2/3% vested prior to the third anniversary of the date of grant. Other Stock Unit
Awards that vest upon the passage of time and provide for accelerated vesting based on performance
shall not vest prior to the first anniversary of the date of grant.

          (2) Subsection (b)(1) above shall not apply to (i) Awards granted pursuant to Section 10(i) or
(ii) to a maximum of 500,000 shares of Common Stock with respect to which Restricted Stock Awards
or Other Stock Unit Awards may be granted. With respect to Other Stock Unit Awards that are
subject to subsection (b)(1) above, the Board may waive forfeiture thereof or remove or modify any
part or all of the restrictions (or vesting thereof) applicable to the Other Stock Unit Award (x)
in exercise of the authority granted to the Board in Section 9 or Section 10(d), at the time an
Other Stock Unit Award is granted and (y) in such other extraordinary circumstances (as determined
by the Board) affecting the Company, a Participant or the Plan after the Other Stock Unit Award has
been granted.

9. Adjustments for Changes in Common Stock and Certain Other Events.

     (a) Changes in Capitalization. In the event of any stock split, reverse stock
split, stock dividend, recapitalization, combination of shares, reclassification of shares,
spin-off or other similar change in capitalization or event, or any distribution to holders of
Common Stock other than an ordinary cash dividend, (i) the number and class of securities available
under this Plan, (ii) the sub-limits set forth in Sections 4(b), 7(c)(2) and 8(b), (iii) the number
and class of securities and exercise price per share of each outstanding Option, (iv) the share-
and per-share provisions of each Stock Appreciation Right, (v) the repurchase price per share
subject to each outstanding Restricted Stock Award and (vi) the share- and per-share-related
provisions of each

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outstanding Other Stock Unit Award, shall be equitably adjusted by the Company
(or substituted Awards may be made, if applicable) to the extent determined by the Board.

     (b) Reorganization and Change in Control Events

          (1) Definitions

               (A) A “Reorganization Event” shall mean:

                    (i) any merger or consolidation of the Company with or into another entity as a result of
which all of the Common Stock of the Company is converted into or exchanged for the right to
receive cash, securities or other property or is cancelled;

                    (ii) any exchange of all of the Common Stock of the Company for cash, securities or other
property pursuant to a share exchange transaction; or

                    (iii) any complete liquidation or
dissolution of the Company.

               (B) A “Change in Control Event” shall mean:

                    (i) the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership of any capital stock of the
Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3
promulgated under the Exchange Act) 40% or more of either (x) the then-outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of
the then-outstanding securities of the Company entitled to vote generally in the election of
directors (the “Outstanding Company Voting Securities”); provided, however, that
for purposes of this subsection (i), the following acquisitions shall not constitute a Change in
Control Event: (A) any acquisition directly by the Company, (B) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (C) any acquisition by any corporation pursuant to a Business
Combination (as defined below) which complies with clauses (x) and (y) of subsection (iii) of this
definition; or

                    (ii) such time as the Continuing Directors (as defined below) do not constitute a majority of
the Board (or, if applicable, the Board of Directors of a successor corporation to the Company),
where the term “Continuing Director” means at any date a member of the Board (x) who was a member
of the Board on the date of the initial adoption of this Plan by the Board or (y) who was nominated
or elected subsequent to such date by at least a majority of the directors who were Continuing
Directors at the time of such nomination or election or whose election to the Board was recommended
or endorsed by at least a majority of the directors who were Continuing Directors at the time of
such nomination or election; provided, however, that there
shall be excluded from this clause (y) any individual whose initial assumption of office
occurred as a result of an actual or threatened election contest with respect to the election or
removal of directors or other actual or threatened solicitation of proxies or consents, by or on
behalf of a person other than the Board; or

8

 

                    (iii) the consummation of a merger, consolidation, reorganization, recapitalization or share
exchange involving the Company or a sale or other disposition of all or substantially all of the
assets of the Company in one or a series of transactions (a “Business Combination”), unless,
immediately following such Business Combination, each of the following two conditions is satisfied:
(x) all or substantially all of the individuals and entities who were the beneficial owners of the
Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly, more than 60% of the
then-outstanding shares of common stock and the combined voting power of the then-outstanding
securities entitled to vote generally in the election of directors, respectively, of the resulting
or acquiring corporation in such Business Combination (which shall include, without limitation, a
corporation which as a result of such transaction owns the Company or substantially all of the
Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring
corporation is referred to herein as the “Acquiring Corporation”) in substantially the same
proportions as their ownership of the Outstanding Company Common Stock and Outstanding Company
Voting Securities, respectively, immediately prior to such Business Combination and (y) no Person
(excluding any employee benefit plan (or related trust) maintained or sponsored by the Company or
by the Acquiring Corporation) beneficially owns, directly or indirectly, 40% or more of the
then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting
power of the then-outstanding securities of such corporation entitled to vote generally in the
election of directors; or

                    (iv) the approval by the stockholders of the Company of the complete liquidation or
dissolution of the Company.

               (C) “Cause” shall have the meaning set forth in the Participant’s employment or other
agreement with the Company or any Subsidiary, provided that if the Participant is not a party to
any such employment or other agreement or such employment or other agreement does not contain a
definition of Cause, then Cause shall mean:

                    (i) the willful and continued failure of the Participant to perform substantially the
Participant’s duties with the Company or any Subsidiary (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for substantial performance
is delivered to the Participant by the employing Company or Subsidiary that specifically identifies
the alleged manner in which the Participant has not substantially performed the Participant’s
duties; or

                    (ii) the willful engaging by the Participant in illegal conduct or gross misconduct that is
materially and demonstrably injurious to the Company or any Subsidiary.

For purposes of this definition, no act or failure to act, on the part of the Participant shall be
considered “willful” unless it is done, or omitted to be done, by the Participant in bad faith or
without reasonable belief that the Participant’s action or omission was in the best interests of
the Company or any Subsidiary.

9

 

               (D) “Good Reason” shall have the meaning set forth in the Participant’s employment or other
agreement with the Company or any Subsidiary, provided that if the Participant is not a party to
any such employment or other agreement or such employment or other agreement does not contain a
definition of Good Reason, then Good Reason shall mean, the occurrence, on or after a Change in
Control Event and without the affected Participant’s written consent, of:

                    (i) the assignment to the Participant of duties in the aggregate that are inconsistent with
the Participant’s level of responsibility immediately prior to the Change in Control Event
(including without limitation, in the case of a Participant who was, immediately prior to the
Change in Control Event, an executive officer of the Company, such employee ceasing to be an
executive officer of the Company);

                    (ii) a reduction by the employer in the Participant’s annual base salary,
annual incentive compensation opportunity, or long term incentive compensation opportunity
(including an adverse change in the performance criteria or a decrease in the target amount of
annual or long term incentive compensation) from that in effect immediately prior to the Change in
Control Event; or

                    (iii) the relocation of the Participant’s principal place of employment to a location more
than fifty (50) miles from the Participant’s principal place of employment immediately prior to the
Change in Control Event, provided, however, such relocation also requires a material change in the
Participant’s commute.

               (2) Effect of Reorganization Event on Options. Upon the occurrence of a
Reorganization Event (regardless of whether such event also constitutes a Change in Control Event),
or the execution by the Company of any agreement with respect to a Reorganization Event (regardless
of whether such event will result in a Change in Control Event), the Board shall provide that all
outstanding Options shall be assumed, or equivalent options shall be substituted, by the acquiring
or succeeding corporation (or an affiliate thereof). For purposes hereof, an Option shall be
considered to be assumed if, following consummation of the Reorganization Event, the Option confers
the right to purchase, for each share of Common Stock subject to the Option immediately prior to
the consummation of the Reorganization Event, the consideration (whether cash, securities or other
property) received as a result of the Reorganization Event by holders of Common Stock for each
share of Common Stock held immediately prior to the consummation of the Reorganization Event (and
if holders were offered a choice of consideration, the type of consideration chosen by the holders
of a majority of the outstanding shares of Common Stock); provided, however, that
if the consideration received as a result of the Reorganization Event is not solely common stock of
the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the
consent of the acquiring or succeeding corporation, provide for the consideration to be received
upon the exercise of Options to consist solely of common stock of the acquiring or succeeding
corporation (or an affiliate thereof) equivalent in value (as determined by the Board) to the per
share consideration received by holders of outstanding shares of Common Stock as a result of the
Reorganization Event.

Notwithstanding the foregoing, if the acquiring or succeeding corporation (or an affiliate thereof)
does not agree to assume, or substitute for, such Options, or in the event of a liquidation or

10

 

dissolution of the Company, the Board shall, upon written notice to the Participants, provide that
all then unexercised Options will become exercisable in full as of a specified time prior to the
Reorganization Event and will terminate immediately prior to the consummation of such
Reorganization Event, except to the extent exercised by the Participants before the consummation of
such Reorganization Event; provided, however, in the event of a Reorganization
Event under the terms of which holders of Common Stock will receive upon consummation thereof a
cash payment for each share of Common Stock surrendered pursuant to such Reorganization Event (the
“Acquisition Price”), then the Board may instead provide that all outstanding Options shall
terminate upon consummation of such Reorganization Event and that each Participant shall receive,
in exchange therefor, a cash payment equal to the amount (if any) by which (A) the Acquisition
Price multiplied by the number of shares of Common Stock subject to such outstanding Options
(whether or not then exercisable), exceeds (B) the aggregate exercise price of such Options. In
the event of a Reorganization Event that does not also constitute a Change in Control Event, then
to the extent all or any portion of an Option becomes exercisable solely as a result of the first
sentence of this paragraph, upon exercise of such Option the Participant shall receive shares
subject to a right of repurchase by the Company or its successor at the Option
exercise price. Such repurchase right (i) shall lapse at the same rate as the Option would have
become exercisable under its terms and (ii) shall not apply to any shares subject to the Option
that were exercisable under its terms without regard to the first sentence of this paragraph.

          (3) Effect of Reorganization Event on Restricted Stock Awards. Upon the occurrence of
a Reorganization Event that is not a Change in Control Event, the repurchase and other rights of
the Company under each outstanding Restricted Stock Award shall inure to the benefit of the
Company’s successor and shall apply to the cash, securities or other property which the Common
Stock was converted into or exchanged for pursuant to such Reorganization Event in the same manner
and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award.

          (4) Effect of Reorganization Event on Stock Appreciation Rights and Other Stock Unit
Awards. The Board may specify in an Award at the time of the grant the effect of a
Reorganization Event on any SAR and Other Stock Unit Award.

          (5) Effect of Change in Control Event on Awards. 

               (A) With respect to Awards granted on or after November 9, 2006:

                    (i) unless otherwise determined by the Board at the time of the grant or evidenced in an
applicable instrument evidencing an Award or employment or other agreement, in the event that a
Participant’s employment or service is terminated by the Company or any Subsidiary without Cause or
by the Participant for Good Reason, in each case within eighteen (18) months following a Change in
Control Event:

                         (x) any Award carrying a right to exercise that was not previously vested and exercisable
shall become fully vested and exercisable and all outstanding Awards shall remain exercisable for
one (1) year following such date of termination of

11

 

employment or service but in no event beyond the
original term of the Award and shall thereafter terminate; and

                         (y) the restrictions, deferral limitations, payment conditions, and forfeiture conditions
applicable to any Award other than an Award described in (x) shall lapse and such Awards shall be
deemed fully vested, and any performance conditions imposed with respect to Awards shall be deemed
to be achieved at the higher of (aa) the target level for the applicable performance period or (bb)
the level of achievement of such performance conditions for the most recently concluded performance
period.

                    (ii) Notwithstanding subparagraph (i) of this Section 9(b)(5)(A), upon a Change in Control
Event, the Board shall have the discretion to:

                         (x) accelerate the vesting or payment of any Award effective immediately upon the occurrence
of a Change in Control Event; or

                         (y) convert the vesting of performance-based Awards to a time-based vesting schedule as deemed
appropriate by the Board;

in each case only to the extent that such action would not cause any Award to result in deferred
compensation that is subject to the additional twenty percent (20%) tax under Section 409A of the
Code.

               (B) With respect to Awards granted before November 9, 2006, except to the extent specifically
provided to the contrary in the instrument evidencing any Award or other agreement between a
Participant and the Company, upon a Change in Control Event: (i) all Options then outstanding shall
automatically become exercisable in full and (ii) all restrictions and conditions on all Restricted
Stock Awards then outstanding shall automatically be deemed terminated or satisfied.

          (6) Adjustment for Excise Tax. The Board may, in its sole discretion, provide in an
instrument evidencing an Award or otherwise for specific treatment of any outstanding Award in the
event that any payment or benefit under this Plan would be subject to the excise tax imposed by
Section 4999 of the Code (the “Excise Tax”) or any interest or penalties with respect to such
Excise Tax. Such treatment may include the payment by the Company of a gross-up payment in an
amount equal to such Excise Tax, interest and penalties or the imposition of a cutback in payments
or benefits.

10. General Provisions Applicable to Awards

     (a) Transferability of Awards. Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are granted, either
voluntarily or by operation of law, except by will or the laws of descent and distribution or,
other than in the case of an Incentive Stock Option, pursuant to a qualified domestic relations
order, and, during the life of the Participant, shall be exercisable only by the Participant;
except that the Board may permit or provide in an Award for the gratuitous transfer of the Award by
the Participant to or for the benefit of any immediate family member, family trust or family
partnership established

12

 

solely for the benefit of the Participant and/or an immediate family member
thereof if, with respect to such proposed transferee, the Company would be eligible to use a Form
S-8 for the registration of the sale of the Common Stock subject to such option under the
Securities Act of 1933, as amended; provided that the Company shall not be required to
recognize any such transfer until such time as the Participant and such permitted transferee shall,
as a condition to such transfer, deliver to the Company a written instrument in form and substance
satisfactory to the Company confirming that such transferee shall be bound by all of the terms and
conditions of the Award. References to a Participant, to the extent relevant in the context, shall
include references to authorized transferees.

     (b) Documentation. Each Award shall be evidenced in such form (written, electronic
or otherwise) as the Board shall determine. Each Award may contain terms and conditions in
addition to those set forth in the Plan.

     (c) Board Discretion. Except as otherwise provided by the Plan, each Award may be
made alone or in addition or in relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly.

     (d) Termination of Status. The Board shall determine the effect on an Award of the
disability, death, retirement, authorized leave of absence or other change in the employment or
other status of a Participant and the extent to which, and the period during which, the
Participant, or the Participant’s legal representative, conservator, guardian or Designated
Beneficiary, may exercise rights under the Award.

     (e) Withholding. Each Participant shall pay to the Company, or make provision
satisfactory to the Company for payment of, any taxes required by law to be withheld in connection
with an Award to such Participant. If provided for in an Award or approved by the Company, in its
sole discretion, a Participant may satisfy such tax obligations in whole or in part by delivery of
shares of Common Stock, including shares retained from the Award creating the tax obligation,
valued
at their Fair Market Value; provided, however, except as otherwise provided by
the Board, that the total tax withholding where stock is being used to satisfy such tax obligations
cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes, that are applicable
to such supplemental taxable income). Shares surrendered to satisfy tax withholding requirements
cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.
The Company may, to the extent permitted by law, deduct any such tax obligations from any payment
of any kind otherwise due to a Participant.

     (f) Amendment of Award. Except as set forth in Sections 5(c)(2), 7(c) and 8(b),
the Board may amend, modify or terminate any outstanding Award, including but not limited to,
substituting therefor another Award of the same or a different type, changing the date of exercise
or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option,
provided that the Participant’s consent to such action shall be required unless the Board
determines that the action, taking into account any related action, would not materially and
adversely affect the Participant.

13

 

     (g) Conditions on Delivery of Stock. The Company will not be obligated to deliver
any shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously
delivered under the Plan until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market rules and regulations,
and (iii) the Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.

     (h) Acceleration. Except as otherwise provided in Section 7(c) and Section 8(b),
the Board may at any time provide that any Award shall become immediately exercisable in full or in
part, free of some or all restrictions or conditions, or otherwise realizable in full or in part,
as the case may be.

     (i) Performance Conditions.

          (1) This Section 10(i) shall be administered by a Committee approved by the Board, all
of the members of which are “outside directors” as defined by Section 162(m) (the “Section 162(m)
Committee”).

          (2) Notwithstanding any other provision of the Plan, if the Section 162(m) Committee
determines, at the time a Restricted Stock Award or Other Stock Unit Award is granted to a
Participant, that such Participant is, or is likely to be as of the end of the tax year in which
the Company would claim a tax deduction in connection with such Award, a Covered Employee (as
defined in Section 162(m)), then the Section 162(m) Committee may provide that this
Section 10(i) is applicable to such Award.

          (3) If a Restricted Stock Award or Other Stock Unit Award is subject to this Section 10(i),
then the lapsing of restrictions thereon and the distribution of cash or Shares pursuant thereto,
as applicable, shall be subject to the achievement of one or more objective performance goals
established by the Section 162(m) Committee, which shall be based on the relative or absolute
attainment of specified levels of one or any combination of the following: (a) earnings per share,
(b) return on average equity or average assets in relation to a peer group of companies designated
by the Company, (c) earnings, (d) earnings growth, (e) earnings before interest, taxes and
amortization (EBITA), (f) operating income, (g) operating margins, (h) revenues, (i) expenses, (j)
stock price, (k) market share, (l) chargeoffs, (m) reductions in non-performing assets, (n) return
on sales, assets, equity or investment, (o) regulatory compliance, (p) satisfactory internal or
external audits, (q) improvement of financial ratings, (r) achievement of balance sheet or income
statement objectives, (s) net cash provided from continuing operations, (t) stock price
appreciation, (u) total shareholder return, (v) cost control, (w) strategic initiatives, (x) net
operating profit after tax, (y) pre-tax or after-tax income, (z) cash flow, or (aa) such other
objective goals established by the 162(m) Committee, and may be absolute in their terms or measured
against or in relationship to other companies comparably, similarly or otherwise situated. Such
performance goals may be adjusted to exclude any one or more of (i) extraordinary items and other
unusual or non-recurring items, (ii) discontinued operations, (iii) gains or losses on the
dispositions of discontinued operations, (iv) the cumulative effects of

14

 

changes in accounting
principles, (v) the writedown of any asset, and (vi) charges for restructuring and rationalization
programs. Such performance goals may vary by Participant and may be different for different
Awards. Such performance goals may be particular to a Participant or the department, branch, line
of business, subsidiary or other unit in which the Participant works and may cover such period as
may be specified by the Section 162(m) Committee. Such performance goals shall be set by the
Section 162(m) Committee within the time period prescribed by, and shall otherwise comply with the
requirements of, Section 162(m).

          (4) Notwithstanding any provision of the Plan, with respect to any Restricted Stock Award
or Other Stock Unit Award that is subject to this Section 10(i), the Section 162(m) Committee may
adjust downwards, but not upwards, the cash or number of Shares payable pursuant to such Award, and
the Section 162(m) Committee may not waive the achievement of the applicable performance goals
except in the case of the death, disability or termination of employment by the Company without
Cause or by the Participant for Good Reason, in each case within 18 months of a Change in Control
Event.

          (5) The Section 162(m) Committee shall have the power to impose such other restrictions on
Awards subject to this Section 10(i) as it may deem necessary or appropriate to ensure that such
Awards satisfy all requirements for “performance-based compensation” within the meaning of Section
162(m)(4)(C) of the Code, or any successor provision thereto.

11. Miscellaneous

     (a) No Right To Employment or Other Status. No person shall have any claim or
right to be granted an Award, and the grant of an Award shall not be construed as giving a
Participant the right to continued employment or any other relationship with the Company. The
Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship
with a Participant free from any liability or claim under the Plan, except as expressly provided in
the applicable
Award.

     (b) No Rights As Stockholder. Subject to the provisions of the applicable Award,
no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any
shares of Common Stock to be distributed with respect to an Award until becoming the record holder
of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the
Common Stock by means of a stock dividend and the exercise price of and the number of shares
subject to such Option are adjusted as of the date of the distribution of the dividend (rather than
as of the record date for such dividend), then an optionee who exercises an Option between the
record date and the distribution date for such stock dividend shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such
Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of
business on the record date for such stock dividend.

     (c) Effective Date and Term of Plan. The Plan shall become effective on the date
on which it is adopted by the Board, but no Award may be granted unless and until the Plan has been
approved by the Company’s stockholders. No Awards shall be granted under the Plan after the
completion of 10 years from the earlier of (i) the date on which the Plan was adopted by the

15

 

Board
or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously granted
may extend beyond that date.

     (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time; provided that (i) to the extent required by Section
162(m), no Award granted to a Participant that is intended to comply with Section 162(m) after the
date of such amendment shall become exercisable, realizable or vested, as applicable to such Award,
unless and until such amendment shall have been approved by the Company’s stockholders if required
by Section 162(m) (including the vote required under Section 162(m)); (ii) no amendment that would
require stockholder approval under the rules of the New York Stock Exchange (“NYSE”) may be made
effective unless and until such amendment shall have been approved by the Company’s stockholders,
and (iii) if the NYSE amends its corporate governance rules so that such rules no longer require
stockholder approval of “material revisions” to equity compensation plans, then, from and after the
effective date of such amendment to the NYSE rules, no amendment to the Plan (A) materially
increasing the number of shares authorized under the Plan, (B) expanding the types of Awards that
may be granted under the Plan, (C) materially expanding the class of participants eligible to
participate in the Plan, or (D) deleting or limiting any provisions prohibiting repricing of
options shall be effective unless stockholder approval is obtained. In addition, if at any time
the approval of the Company’s stockholders is required as to any other modification or
amendment under Section 422 of the Code or any successor provision with respect to Incentive
Stock Options, the Board may not effect such modification or amendment without such approval. No
amendment of the Plan may adversely affect the rights of any Participant under any Award previously
granted without such Participant’s consent.

     (e) Provisions for Foreign Participants. The Board may modify Awards granted to
Participants who are foreign nationals or employed outside the United States or establish subplans
or procedures under the Plan to recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other
matters.

     (f) Compliance With Code Section 409A. No Award shall provide for deferral of
compensation that does not comply with Section 409A of the Code, unless the Board, at the time of
grant, specifically provides that the Award is not intended to comply with Section 409A of the
Code.

     (g) Governing Law. The provisions of the Plan and all Awards made hereunder
shall be governed by and interpreted in accordance with the laws of the State of Delaware, without
regard to any applicable conflicts of law.

16

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