Document:

Bristol-Myers Squibb Company 1997 Stock Incentive Plan

 Exhibit 10.17 
 BRISTOL-MYERS SQUIBB COMPANY 
 1997 STOCK INCENTIVE PLAN 
 (as amended and restated as of July 16, 2002) 
 1. Purpose: The purpose of the 1997 Stock Incentive Plan is to secure for the Company and its stockholders the benefits of the incentive inherent in common stock ownership by the officers and key employees of the Company and its
Subsidiaries and Affiliates who will be largely responsible for the Company’s future growth and continued financial success and by providing long-term incentives in addition to current compensation to certain key executives of the Company and
its Subsidiaries and Affiliates who contribute significantly to the long-term performance and growth of the Company and such Subsidiaries and Affiliates. It is intended that the former purpose will be effected through the granting of stock options,
stock appreciation rights, dividend equivalents and/or restricted stock under the Plan and that the latter purpose will be effected through an award conditionally granting performance units or performance shares under the Plan, either independently
or in conjunction with and related to a nonqualified stock option grant under the Plan. 
 2. Definitions: For purposes of this Plan:

 (a) “Affiliate” shall mean any entity in which the Company has an ownership interest of at least 20%. 
 (b) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 (c) “Common Stock” shall mean the Company’s common stock (par value $.10 per share). 
 (d) “Company” shall mean the Issuer (the Bristol-Myers Squibb Company), its Subsidiaries and Affiliates. 
 (e) “Disability” or “Disabled” shall mean qualifying for and receiving payments under a disability pay plan of the Company or
any Subsidiary or Affiliate. 
 (f) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 (g) “Fair Market Value” shall mean the average of the high and low sale prices of a share of Common Stock on the New York Stock Exchange,
Inc. composite tape on the date of measurement or on any date as determined by the Committee and if there were no trades on such date, on the day on which a trade occurred next preceding such date. 
 (h) “Issuer” shall mean the Bristol-Myers Squibb Company. 
 (i) “Prior Plan” shall mean the Bristol-Myers Squibb Company 1983 Stock Option Plan as amended and restated effective as of October 1, 2001. 
 (j) “Retirement” shall mean termination of the employment of an employee with the Company or a Subsidiary or Affiliate on or after
(i) the employee’s 65th birthday or (ii) the employee’s 55th birthday if the employee has completed 10 years of service with the Company, its Subsidiaries and/or its Affiliates. For purposes of this Section 

 
2(j) and all other purposes of this Plan, Retirement shall also mean termination of employment of an employee with the Company or a Subsidiary or Affiliate
for any reason (other than the employee’s death, disability, resignation, willful misconduct or activity deemed detrimental to the interests of the Company) where, on termination, (iii) the employee’s age plus years of service
(rounded up to the next higher whole number) equals at least 70 and the employee has completed 10 years of service with the Company, its Subsidiaries and/or its Affiliates provided the Optionee executes a general release agreement and, where
applicable, a non-solicitation and/or non-compete agreement with the Company or (iv) the employee is at least 50 years of age and the employee has completed 10 years of service with the Company, its Subsidiaries and/or its Affiliates provided
the Optionee executes a general release agreement and, where applicable, a non-solicitation and/or non-compete agreement with the Company. This section 2(j)(iv) shall expire on January 31, 2003. 
 Furthermore, an employee who makes an election to retire under Article 19 of the Bristol-Myers Squibb Company Retirement Income Plan (the
“Retirement Income Plan”) shall have any additional years of age and service which are credited under Article 19 of the Retirement Income Plan taken into account when determining such employee’s age and service under this
Section 2(j). Such election shall be deemed a Retirement for purposes of this Section 2(j) and all other purposes of this Plan. 
 (k) “Subsidiary” shall mean any corporation which at the time qualifies as a subsidiary of the Company under the definition of “subsidiary corporation” in Section 424 of the Code. 
 3. Amount of Stock: The amount of stock which may be made subject to grants of options or awards of performance units under the Plan in
calendar year 1997 shall not exceed an amount equal to the amount of shares available for, and not made subject to, grants of options or awards under the Prior Plan as of February 28, 1997. With respect to each succeeding year, the amount of
stock which may be made subject to grants of options or awards of performance units under the Plan shall not exceed an amount equal to (i) 0.9% of the outstanding shares of the Company’s Common Stock on January 1 of such year plus,
subject to this Section 3, (ii) in any year the number of shares equal to the amount of shares that were available for grants and awards in the prior year but were not made subject to a grant or award in such prior year and (iii) the
number of shares that were subject to options or awards granted hereunder or under the Prior Plan, which options or awards terminated or expired in the prior year without being exercised, or (iv) the number of shares participants tendered in
the prior year to pay the purchase price of options in accordance with Section 6(b)(5), and (v) the number of shares the Company retained or caused participants to surrender in the prior year to satisfy Withholding Tax requirements in
accordance with Section 11. No individual may be granted options or awards under Sections 6, 7 or 8 in the aggregate, in respect of more than 3,000,000 shares of the Company’s Common Stock in a calendar year, as adjusted to reflect the
February 5, 1999 two-for-one stock split; and subject to further adjustment in number and kind pursuant to Section 10. Aggregate shares issued under performance share awards made pursuant to Section 7 and restricted stock awards made
pursuant to Section 8 may not exceed 20,000,000 shares over the life of the Plan, as adjusted to reflect the February 5, 1999 two-for-one stock split; and subject to further adjustment in number and kind pursuant to Section 10. Common
Stock issued hereunder may be authorized and reissued shares or issued shares acquired by the Company or its Subsidiaries on the market or otherwise. 
 4. Administration: The Plan shall be administered under the supervision of the Board of Directors of the Company which shall exercise its powers, to the extent herein provided, through the agency of a
Compensation and Management Development Committee (the “Committee”) which shall be appointed by the Board of Directors of the Company. The Committee shall consist of not less than three (3) members of the Board who meet the definition
of “outside director” under the provisions of Section 162(m) of the Code and the definition of “non-employee directors” under the provisions of the Exchange Act or rules or regulations promulgated thereunder. No member of
the Committee shall have been within one year prior to appointment to, or while serving on, the Committee granted or awarded equity securities of the Company pursuant to this or any other plan of the Company except to the extent that participation
in any such plan or receipt of any such grant or award would not adversely affect the Committee member’s status as a “nonemployee director” or as an “outside director”. 
 The Committee, from time to time, may adopt rules and regulations (“Regulations”) for carrying out the provisions 

  

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and purposes of the Plan and make such other determinations, not inconsistent with the terms of the Plan, as the Committee shall deem appropriate. The
interpretation and construction of any provision of the Plan by the Committee shall, unless otherwise determined by the Board of Directors, be final and conclusive. 
 The Committee shall maintain a written record of its proceedings. A majority of the Committee shall constitute a quorum, and the acts of a majority of the members present at any meeting at which a quorum is present,
or acts unanimously approved in writing, shall be the acts of the Committee. 
 5. Eligibility: Options and awards may be
granted only to present or future officers and key employees of the Company and its Subsidiaries and Affiliates, including Subsidiaries and Affiliates which become such after the adoption of the Plan. Any officer or key employee of the Company or of
any such Subsidiary or Affiliate shall be eligible to receive one or more options or awards under the Plan. Any director who is not an officer or employee of the Company or one of its Subsidiaries or Affiliates and any member of the Committee,
during the time of the member’s service as such or thereafter, shall be ineligible to receive an option or award under the Plan. The adoption of this Plan shall not be deemed to give any officer or employee any right to an award or to be
granted an option to purchase Common Stock of the Company, except to the extent and upon such terms and conditions as may be determined by the Committee. 
 6. Stock Options: Stock options under the Plan shall consist of incentive stock options under Section 422 of the Code or nonqualified stock options (options not intended to qualify as incentive
stock options), as the Committee shall determine. In addition, the Committee may grant stock appreciation rights in conjunction with an option, as set forth in Section 6(b)(11), or may grant awards in conjunction with an option, as set forth in
Section 6(b)(10) (an “Associated Option”). 
 Each option shall be subject to the following terms and conditions: 

(a) Grant of Options. The Committee shall (1) select the officers and key employees of the Company and its Subsidiaries and
Affiliates to whom options may from time to time be granted, (2) determine whether incentive stock options or nonqualified stock options are to be granted, (3) determine the number of shares to be covered by each option so granted,
(4) determine the terms and conditions (not inconsistent with the Plan) of any option granted hereunder (including but not limited to restrictions upon the options, conditions of their exercise, or on the shares of Common Stock issuable upon
exercise thereof), (5) determine whether nonqualified stock options or incentive stock options granted under the Plan shall include stock appreciation rights and, if so, shall determine the terms and conditions thereof in accordance with
Section 6(b)(11) hereof, (6) determine whether any nonqualified stock options granted under the Plan shall be Associated Options, and (7) prescribe the form of the instruments necessary or advisable in the administration of options.

 (b) Terms and Conditions of Option. Any option granted under the Plan shall be evidenced by a Stock Option Agreement
entered into by the Company and the optionee, in such form as the Committee shall approve, which agreement shall be subject to the following terms and conditions and shall contain such additional terms and conditions not inconsistent with the Plan,
and in the case of an incentive stock option not inconsistent with the provisions of the Code applicable to incentive stock options, as the Committee shall prescribe: 
 (1) Number of Shares Subject to an Option. The Stock Option Agreement shall specify the number of shares of Common Stock subject to the Agreement. If the option is an Associated Option, the number of
shares of Common Stock subject to such Associated Option shall initially be equal to the number of performance units or performance shares subject to the award, but one share of Common Stock shall be canceled for each performance unit or performance
share paid out under the award. 
 (2) Option Price. The purchase price per share of Common Stock purchasable under an
option will be determined by the Committee but will be not less than the Fair Market Value of a share of Common Stock on the date of the grant of such option. 
  

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 (3) Option Period. The period of each option shall be fixed by the Committee, but no
option shall be exercisable after the expiration of ten years from the date the option is granted. 
 (4) Consideration. Each optionee, as consideration for the grant of an option, shall remain in the continuous employ of the Company or of one of its Subsidiaries or Affiliates for at least one year or such lesser period as
the Committee shall so determine in its sole discretion from the date of the granting of such option, and no option shall be exercisable until after the completion of such one year or lesser period of employment by the optionee. 
 (5) Exercise of Option. An option may be exercised in whole or in part from time to time during the option period (or, if determined by
the Committee, in specified installments during the option period) by giving written notice of exercise to the Company specifying the number of shares to be purchased, such notice to be accompanied by payment in full of the purchase price and
Withholding Taxes (as defined in Section 11 hereof), unless an election to defer receipt of shares is made under Section 12, due either by (i) certified or bank check (2) in shares of Common Stock of the Company owned by the
optionee having a Fair Market Value at the date of exercise equal to such purchase price, or in a combination of the foregoing; provided, however, that payment in shares of Common Stock of the Company will not be permitted unless at least 100 shares
of Common Stock are required and delivered for such purpose, (iii) in any combination of the foregoing, or (iv) by any other method authorized by the Committee. At its discretion, the Committee may modify or suspend any method for the
exercise of stock options, including any of the methods specified in the previous sentence. Delivery of shares for exercising an option shall be made either through the physical delivery of shares or through an appropriate certification or
attestation of valid ownership. No shares shall be issued until full payment therefor has been made. An optionee shall have the rights of a stockholder only with respect to shares of stock for which certificates have been issued to the optionee.

 Notwithstanding anything in the Plan to the contrary, the Company may, in its sole discretion, allow the exercise of a lapsed grant if the
Company determines that: (i) the lapse was solely the result of the Company’s inability to execute the exercise of an option award due to conditions beyond the Company’s control and (ii) the optionee made valid and reasonable
efforts to exercise the award. In the event the Company makes such a determination, the Company shall allow the exercise to occur as promptly as possible following its receipt of exercise instructions subsequent to such determination. 
 (6) Nontransferability of Options. No option or stock appreciation right granted under the Plan shall be transferable by the optionee
otherwise than by will or by the laws of descent and distribution, and such option or stock appreciation right shall be exercisable, during the optionee’s lifetime, only by the optionee. Notwithstanding the foregoing, the Committee may set
forth in a Stock Option Agreement at the time of grant or thereafter, that the options (other than Incentive Stock Options) may be transferred to members of the optionee’s immediate family, to trusts solely for the benefit of such immediate
family members and to partnerships in which such family members and/or trusts are the only partners. For this purpose, immediate family means the optionee’s spouse, parents, children, stepchildren, grandchildren and legal dependants. Any
transfer of options made under this provision will not be effective until notice of such transfer is delivered to the Company. 
 (7) Retirement and Termination of Employment Other than by Death or Disability. If an optionee shall cease to be employed by the Company or any of its Subsidiaries or Affiliates for any reason (other than termination of
employment by reason of death or Disability) after the optionee shall have been continuously so employed for one year after the granting of the option, the option shall be exercisable only to the extent that the optionee was otherwise entitled to
exercise it at the time of such cessation of employment with the Company, Subsidiary or Affiliate, but in no event after the expiration of the option period set forth therein except that in the case of cessation of employment other than by reason of
Retirement or death, the option shall in no event be exercisable after the date three months next succeeding such cessation of employment. 
  

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 The Plan does not confer upon any optionee any right with respect to continuation of employment by the Company or any of
its Subsidiaries or Affiliates. 
 (8) Disability of Optionee. An optionee who ceases to be employed by reason of Disability
shall be treated as though the optionee remained in the employ of the Company or a Subsidiary or Affiliate until the earlier of (i) cessation of payments under a disability pay plan of the Company, Subsidiary or Affiliate, (ii) the
optionee’s death, or (iii) the optionee’s 65th birthday. 
 (9) Death of Optionee. Except as otherwise
provided in subsection (13), in the event of the optionee’s death (i) while in the employ of the Company or any of its Subsidiaries or Affiliates, (ii) while Disabled as described in subsection (8) or (iii) after cessation
of employment due to Retirement, the option shall be fully exercisable by the executors, administrators, legatees or distributees of the optionee’s estate, as the case may be, at any time following such death. In the event of the
optionee’s death after cessation of employment for any reason other than Disability or Retirement, the option shall be exercisable by the executors, administrators, legatees or distributees of the optionee’s estate, as the case may be, at
any time during the twelve month period following such death. Notwithstanding the foregoing, in no event shall an option be exercisable unless the optionee shall have been continuously employed by the Company or any of its Subsidiaries or Affiliates
for a period of at least one year after the option grant, and no option shall be exercisable after the expiration of the option period set forth in the Stock Option Agreement. In the event any option is exercised by the executors, administrators,
legatees or distributees of the estate of a deceased optionee, the Company shall be under no obligation to issue stock thereunder unless and until the Company is satisfied that the person or persons exercising the option are the duly appointed legal
representatives of the deceased optionee’s estate or the proper legatees or distributees thereof. 
 (10) Long-Term Performance
Awards. The Committee may from time to time grant nonqualified stock options under the Plan in conjunction with and related to an award of performance units or performance shares made under a Long-Term Performance Award as set forth in
Section 7(b)(11). In such event, notwithstanding any other provision hereof, (i) the number of shares to which the Associated Option applies shall initially be equal to the number of performance units or performance shares granted by the
award, but such number of shares shall be reduced on a one-share-for-one unit or share basis to the extent that the Committee determines pursuant to the terms of the award, to pay to the optionee or the optionee’s beneficiary the performance
units or performance shares granted pursuant to such award; and (ii) such Associated Option shall be cancelable in the discretion of the Committee, without the consent of the optionee, under the conditions and to the extent specified in the
award. 
 (11) Stock Appreciation Rights. In the case of any option granted under the Plan, either at the time of grant or
by amendment of such option at any time after such grant there may be included a stock appreciation right which shall be subject to such terms and conditions, not inconsistent with the Plan, as the Committee shall impose, including the following:

 (A) A stock appreciation right shall be exercisable to the extent, and only to the extent, that the option in which it is included is
at the time exercisable, and may be exercised within such period only at such time or times as may be determined by the Committee; 
 (B) A stock appreciation right shall entitle the optionee (or any person entitled to act under the provisions of subsection (9) hereof) to surrender unexercised the option in which the stock appreciation right is included (or any
portion of such option) to the Company and to receive from the Company in exchange therefor that number of shares having an aggregate value equal to (or, in the discretion of the Committee, less than) the excess of the value of one share (provided
such value does not exceed such multiple of the option price per share as may be specified by the Committee) over the option price per share specified in such option times the number of shares called for by the option, or 

  

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portion thereof, which is so surrendered. The Committee shall be entitled to cause the Company to settle its obligation, arising out of the exercise of a
stock appreciation right, by the payment of cash equal to the aggregate value of the shares the Company would otherwise be obligated to deliver or partly by the payment of cash and partly by the delivery of shares. Any such election shall be made
within 30 business days after the receipt by the Committee of written notice of the exercise of the stock appreciation right. The value of a share for this purpose shall be the Fair Market Value thereof on the last business day preceding the date of
the election to exercise the stock appreciation right; 
 (C) No fractional shares shall be delivered under this subsection
(11) but in lieu thereof a cash adjustment shall be made; 
 (D) If a stock appreciation right included in an option is exercised,
such option shall be deemed to have been exercised to the extent of the number of shares called for by the option or portion thereof which is surrendered on exercise of the stock appreciation right and no new option may be granted covering such
shares under this Plan; and 
 (E) If an option which includes a stock appreciation right is exercised, such stock appreciation right
shall be deemed to have been canceled to the extent of the number of shares called for by the option or portion thereof is exercised and no new stock appreciation rights may be granted covering such shares under this Plan. 
 (12) Incentive Stock Options. In the case of any incentive stock option granted under the Plan, the aggregate Fair Market Value of the
shares of Common Stock of the Company (determined at the time of grant of each option) with respect to which incentive stock options granted under the Plan and any other plan of the Company or its parent or a Subsidiary which are exercisable for the
first time by an employee during any calendar year shall not exceed $100,000 or such other amount as may be required by the Code. In any year, the maximum number of shares with respect to which incentive stock options may be granted shall not exceed
8,000,000 shares, as adjusted to reflect the February 5, 1999 two-for-one stock split and subject to further adjustment pursuant to Section 10. 
 (13) Rights of Transferee. Notwithstanding anything to the contrary herein, if an option has been transferred in accordance with Section 6(b)(6), the option shall be exercisable solely by the
transferee. The option shall remain subject to the provisions of the Plan, including that it will be exercisable only to the extent that the optionee or optionee’s estate would have been entitled to exercise it if the optionee had not
transferred the option. In the event of the death of the optionee prior to the expiration of the right to exercise the transferred option, the period during which the option shall be exercisable will terminate on the date one year following the date
of the optionee’s death. In the event of the death of the transferee prior to the expiration of the right to exercise the option, the period during which the option shall be exercisable by the executors, administrators, legatees and
distributees of the transferee’s estate, as the case may be, will terminate on the date one year following the date of the transferee’s death. In no event will be the option be exercisable after the expiration of the option period set
forth in the Stock Option Agreement. The option shall be subject to such other rules as the Committee shall determine. 
 (14) Change
in Control. In the event an optionee’s employment with the Company terminates for a qualifying reason during the three (3) year period following a change in control of the Company and prior to the exercise of options granted under
this Plan, all outstanding options shall become immediately fully vested and exercisable notwithstanding any provisions of the Plan or of the applicable stock option agreement to the contrary. 
 (A) For the purpose of this Plan a change in control shall be deemed to have occurred on the earlier of the following dates: 
  

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 (1) The date any Person (as defined in Section 13(d)(3) of the Securities and Exchange Act)
shall have become the direct or indirect beneficial owner of twenty percent (20%) or more of the then outstanding common shares of the Company; 
 (2) The date the shareholders of the Company approve a merger or consolidation of the Company with any other corporation other than (i) a merger or consolidation which would result in the voting securities
of the company outstanding immediately prior thereto continuing to represent at least 75% of the combined voting power of the voting securities of the Company or the surviving entity outstanding immediately after such merger or consolidation, or
(ii) a merger or consolidation effected to implement a recapitalization of the Company in which no Person acquires more than 50% of the combined voting power of the Company’s then outstanding securities; 
 (3) The date the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by
the Company of all or substantially all the Company’s assets; 
 (4) The date there shall have been a change in a majority of the
Board of Directors of the Company within a two (2) year period unless the nomination for election by the Company’s shareholders of each new director was approved by the vote of two-thirds of the directors then still in office who were in
office at the beginning of the two (2) year period. 
 (B) For purposes of this Plan provision, a qualifying termination shall be
deemed to have occurred under the following circumstances: 
 (1) A Company initiated termination for reason other than the
employee’s death, disability, resignation without good cause, willful misconduct or activity deemed detrimental to the interests of the Company provided the optionee executes a general release and, where applicable, a non-solicitation and/or
non-compete agreement with the Company; 
 (2) The optionee resigns with good cause, which includes (i) a substantial adverse
alternation in the nature or status of the optionee’s responsibilities, (ii) a reduction in the optionee’s base salary and/or levels of entitlement or participation under any incentive plan, award program or employee benefit program
without the substitution or implementation of an alternative arrangement of substantially equal value, or, (iii) the Company requiring the optionee to relocate to a work location more than fifty (50) miles from his/her work location prior
to the change in control. 
 7. Long-term Performance Awards: Awards under the Plan shall consist of the conditional grant
to the participants of a specified number of performance units or performance shares. The conditional grant of a performance unit to a participant will entitle the participant to receive a specified dollar value, variable under conditions specified
in the award, if the performance objectives specified in the award are achieved and the other terms and conditions thereof are satisfied. The conditional grant of a performance share to a participant will entitle the participant to receive a
specified number of shares of Common Stock of the Company, or the equivalent cash value, if the objective(s) specified in the award are achieved and the other terms and conditions thereof are satisfied. 
 Each award will be subject to the following terms and conditions: 
 (a) Grant of Awards. The Committee shall (1) select the officers and key executives of the Company and its 

  

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Subsidiaries and Affiliates to whom awards may from time to time be granted, (2) determine the number of performance units or performance shares covered
by each award, (3) determine the terms and conditions of each performance unit or performance share awarded and the award period and performance objectives with respect to each award, (4) determine the periods during which a participant
may request the Committee to approve deferred payment of a percentage (not less than 25%) of an award (the “Deferred Portion”) and the interest or rate of return thereon or the basis on which such interest or rate of return thereon is to
be determined, (5) determine whether payment with respect to the portion of an award which has not been deferred (the “Current Portion”) and the payment with respect to the Deferred Portion of an award shall be made entirely in cash,
entirely in Common Stock or partially in cash and partially in Common Stock, (6) determine whether the award is to be made independently of or in conjunction with a nonqualified stock option granted under the Plan, and (7) prescribe the
form of the instruments necessary or advisable in the administration of the awards. 
 (b) Terms and Conditions of
Award. Any award conditionally granting performance units or performance shares to a participant shall be evidenced by a Performance Unit Agreement or Performance Share Agreement, as applicable, executed by the Company and the participant,
in such form as the Committee shall approve, which Agreement shall contain in substance the following terms and conditions applicable to the award and such additional terms and conditions as the Committee shall prescribe: 
 (1) Number and Value of Performance Units. The Performance Unit Agreement shall specify the number of performance units conditionally
granted to the participant. If the award has been made in conjunction with the grant of an Associated Option, the number of performance units granted shall initially be equal to the number of shares which the participant is granted the right to
purchase pursuant to the Associated Option, but one performance unit shall be canceled for each share of the Company’s Common Stock purchased upon exercise of the Associated Option or for each stock appreciation right included in such option
that has been exercised. The Performance Unit Agreement shall specify the threshold, target and maximum dollar values of each performance unit and corresponding performance objectives as provided under Section 6(b)(5). No payout under a
performance unit award to an individual Participant may exceed 0.15% of the pre-tax earnings of the Company for the fiscal year which coincides with the final year of the performance unit period. 
 (2) Number and Value of Performance Shares. The Performance Share Agreement shall specify the number of performance shares conditionally
granted to the participant. If the award has been made in conjunction with the grant of an Associated Option, the number of performance shares granted shall initially be equal to the number of shares which the participant is granted the right to
purchase pursuant to the Associated Option, but one performance share shall be canceled for each share of the Company’s Common Stock purchased upon exercise of the Associated Option or for each stock appreciation right included in such option
that has been exercised. The Performance Share Agreement shall specify that each Performance Share will have a value equal to one (1) share of Common Stock of the Company. 
 (3) Award Periods. For each award, the Committee shall designate an award period with a duration to be determined by the Committee in
its discretion but in no event less than three calendar years within which specified performance objectives are to be attained. There may be several award periods in existence at any one time and the duration of performance objectives may differ
from each other. 
 (4) Consideration. Each participant, as consideration for the award of performance units or performance
shares, shall remain in the continuous employ of the Company or of one of its Subsidiaries or Affiliates for at least one year or such lesser period as the Committee shall so determine in its sole discretion after the date of the making of such
award, and no award shall be payable until after the completion of such one year or lesser period of employment by the participant. 
 (5) Performance Objectives. The Committee shall establish performance objectives with respect to the 

  

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Company for each award period on the basis of such criteria and to accomplish such objectives as the Committee may from time to time determine. Performance
criteria for awards under the Plan may include one or more of the following measures of the operating performance: 
  

							
		  	a. Earnings	  	d. Financial return ratios	 	
		  	b. Revenue	  	e. Total Shareholder Return	 	
		  	c. Operating or net cash flows	  	f. Market share	 	

 The Committee shall establish the specific targets for the selected criteria. These targets may be set at a
specific level or may be expressed as relative to the comparable measure at comparison companies or a defined index. These targets may be based upon the total Company or upon a defined business unit which the executive has responsibility for or
influence over. 
 (6) Determination and Payment of Performance Units or Performance Shares Earned. As soon as practicable
after the end of an award period, the Committee shall determine the extent to which awards have been earned on the basis of the Company’s actual performance in relation to the established performance objectives as set forth in the Performance
Unit Agreement or Performance Share Agreement and certify these results in writing. The Performance Unit Agreement or Performance Share Agreement shall specify that as soon as practicable after the end of each award period, the Committee shall
determine whether the conditions of Sections 7(b)(4) and 7(b)(5) hereof have been met and, if so, shall ascertain the amount payable or shares which should be distributed to the participant in respect of the performance units or performance shares.
As promptly as practicable after it has determined that an amount is payable or should be distributed in respect of an award, the Committee shall cause the Current Portion of such award to be paid or distributed to the participant or the
participant’s beneficiaries, as the case may be, in the Committee’s discretion, either entirely in cash, entirely in Common Stock or partially in cash and partially in Common Stock. The Deferred Portion of an award shall be contingently
credited and payable to the participant over a deferred period and shall be credited with interest, rate of return, or other valuation as determined by the Committee. The Committee, in its discretion, shall determine the conditions upon, and method
of, payment of such Deferred Portions and whether such payment will be made entirely in cash, entirely in Common Stock or partially in cash and partially in Common Stock. 
 In making the payment of an award in Common Stock hereunder, the cash equivalent of such Common Stock shall be determined by the Fair Market Value of the Common Stock on the day the Committee designates the
performance units shall be payable. 
 (7) Nontransferability of Awards and Designation of Beneficiaries. No award under
this Section of the Plan shall be transferable by the participant other than by will or by the laws of descent and distribution, except that a participant may designate a beneficiary pursuant to the provisions hereof. 
 If any participant or the participant’s beneficiary shall attempt to assign the participant’s rights under the Plan in violation of the
provisions thereof, the Company’s obligation to make any further payments to such participant or the participant’s beneficiaries shall forthwith terminate. 
 A participant may name one or more beneficiaries to receive any payment of an award to which the participant may be entitled under the Plan in the event of the participant’s death, on a form to be provided by the
Committee. A participant may change the participant’s beneficiary designation from time to time in the same manner. 
 If no designated
beneficiary is living on the date on which any payment becomes payable to a participant’s beneficiary, or if no beneficiary has been specified by the participant, such payment will be payable to the person or persons in the first of the
following classes of successive preference: 
 (i) Widow or widower, if then living, 
  

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 (ii) Surviving children, equally, 
 (iii) Surviving parents, equally, 
 (iv) Surviving brothers and sisters, equally, 
 (v) Executors or administrators 
 and the term “beneficiary” as used in the Plan shall include such person or persons. 
 (8) Retirement and Termination of Employment Other Than by Death or Disability. In the event of the Retirement prior to the end of an
award period of a participant who has satisfied the one year employment requirement of Section 7(b)(4) with respect to an award prior to Retirement, the participant, or his estate, shall be entitled to a payment of such award at the end of the
award period, pursuant to the terms of the Plan and the participant’s Performance Unit Agreement or Performance Share Agreement, provided, however, that the participant shall be deemed to have earned that proportion (to the nearest whole unit
or share) of the value of the performance units or performance shares granted to the participant under such award as the number of months of the award period which have elapsed since the first day of the calendar year in which the award was made to
the end of the month in which the participant’s Retirement occurs, bears to the total number of months in the award period, subject to the attainment of performance objectives associated with the award as certified by the Committee. The
participant’s right to receive any remaining performance units or performance shares shall be canceled and forfeited. The Committee may, in its discretion, waive, in whole or in part, such cancellation and forfeiture of any performance units or
performance shares provided that any such action does not affect the award of any person covered by Section 162(m) of the Code. 
 Subject to Section 7(b)(6) hereof, the Performance Unit Agreement or Performance Share Agreement shall specify that the right to receive the performance units or performance shares granted to such participant shall be conditional and
shall be canceled, forfeited and surrendered if the participant’s continuous employment with the Company and its Subsidiaries and Affiliates shall terminate for any reason, other than the participant’s death, Disability or Retirement prior
to the end of the award period. 
 (9) Disability of Participant. For the purposes of any award a participant who becomes
Disabled shall be deemed to have suspended active employment by reason of Disability commencing on the date the participant becomes entitled to receive payments under a disability pay plan of the Company or any Subsidiary or Affiliate and continuing
until the date the participant is no longer entitled to receive such payments. In the event a participant becomes Disabled during an award period but only if the participant has satisfied the one year employment requirement of Section 7(b)(4)
with respect to an award prior to becoming Disabled, upon the determination by the Committee of the extent to which an award has been earned pursuant to Section 7(b)(6) the participant shall be deemed to have earned that proportion (to the
nearest whole unit) of the value of the performance units granted to the participants under such award as the number of months of the award period in which the participant was not Disabled bears to the total number of months in the award period
subject to the attainment of the performance objectives associated with the award as certified by the Committee. The participant’s right to receive any remaining performance units shall be canceled and forfeited. The Committee may, in its
discretion, waive, in whole or in part, such cancellation and forfeiture of any performance units or performance shares provided that any such action does not affect the award of any person covered by Section 162(m) of the Code. 
 (10) Death of Participant. In the event of the death prior to the end of an award period of a participant who has satisfied the one year
employment requirement with respect to an award prior to the date of death, the participant’s beneficiaries or estate, as the case may be, shall be entitled to a payment of such award upon the end of the award period, pursuant to the terms of
the Plan and the participant’s Performance Unit Agreement or Performance Share Agreement, provided, however, that the participant shall be deemed to have earned that proportion (to the nearest whole unit or share) of the value of the
performance units or performance shares granted to the participant under such award as the number of months of the award period 

  

 10 

 
which have elapsed since the first day of the calendar year in which the award was made to the end of the month in which the participant’s death occurs,
bears to the total number of months in the award period. The participant’s right to receive any remaining performance units or performance shares shall be canceled and forfeited. 
 The Committee may, in its discretion, waive, in whole or in part, such cancellation and forfeiture of any performance units or performance shares.

 (11) Grant of Associated Option. If the Committee determines that the conditional grant of performance units or
performance shares under the Plan is to be made to a participant in conjunction with the grant of a nonqualified stock option under the Plan, the Committee shall grant the participant an Associated Option under the Plan subject to the terms and
conditions of this subsection (11). In such event, such award under the Plan shall be contingent upon the participant’s being granted such an Associated Option pursuant to which: (i) the number of shares the optionee may purchase shall
initially be equal to the number of performance units or performance shares conditionally granted by the award, (ii) such number of shares shall be reduced on a one-share-for-one-unit or share basis to the extent that the Committee determines,
pursuant to Section 7(b)(6) hereof, to pay to the participant or the participant’s beneficiaries the performance units or performance shares conditionally granted pursuant to the award, and (iii) the Associated Option shall be
cancelable in the discretion of the Committee, without the consent of the participant, under the conditions and to the extent specified herein and in Section 7(b)(6) hereof. 
 If no amount is payable in respect of the conditionally granted performance units or performance shares, the award and such performance units or
performance shares shall be deemed to have been canceled, forfeited and surrendered, and the Associated Option, if any, shall continue in effect in accordance with its terms. If any amount is payable in respect of the performance units or
performance shares and such units or shares were granted in conjunction with an Associated Option, the Committee shall, within 30 days after the determination of the Committee referred to in the first sentence of Section 7(b)(6), determine, in
its sole discretion, either: 
 (A) to cancel in full the Associated Option, in which event the value of the performance units or
performance shares payable pursuant to Sections 7(b)(5) and (6) shall be paid or the performance shares shall be distributed; 
 (B) to cancel in full the performance units or performance shares, in which event no amount shall be paid to the participant in respect thereof and no shares shall be distributed but the Associated Option shall continue in effect in
accordance with its terms; or 
 (C) to cancel some, but not all, of the performance units or performance shares, in which event the
value of the performance units payable pursuant to Sections 7(b)(5) and (6) which have not been canceled shall be paid and/or the performance shares shall be distributed and the Associated Option shall be canceled with respect to that number of
shares equal to the number of conditionally granted performance units or performance shares that remain payable. 
 Any action taken by the
Committee pursuant to the preceding sentence shall be uniform with respect to all awards having the same award period. If the Committee takes no such action, it shall be deemed to have determined to cancel in full the award in accordance with clause
(b) above. 
 8. Restricted Stock: Restricted stock awards under the Plan shall consist of grants of shares of Common
Stock of the Issuer subject to the terms and conditions hereinafter provided. 
 (a) Grant of Awards: The Committee shall
(i) select the officers and key employees to whom Restricted Stock 

  

 11 

 
may from time to time be granted, (ii) determine the number of shares to be covered by each award granted, (iii) determine the terms and conditions
(not inconsistent with the Plan) of any award granted hereunder, and (iv) prescribe the form of the agreement, legend or other instrument necessary or advisable in the administration of awards under the Plan. 
 (b) Terms and Conditions of Awards: Any restricted stock award granted under the Plan shall be evidenced by a Restricted Stock Agreement
executed by the Issuer and the recipient, in such form as the Committee shall approve, which agreement shall be subject to the following terms and conditions and shall contain such additional terms and conditions not inconsistent with the Plan as
the Committee shall prescribe: 
 (1) Number of Shares Subject to an Award: The Restricted Stock Agreement shall specify the
number of shares of Common Stock subject to the Award. 
 (2) Restriction Period: The period of restriction applicable to
each Award shall be established by the Committee but may not be less than one year. The Restriction Period applicable to each Award shall commence on the Award Date. 
 (3) Consideration: Each recipient, as consideration for the grant of an award, shall remain in the continuous employ of the Company for at least one year or such lesser period as the Committee shall
so determine in its sole discretion from the date of the granting of such award, and any shares covered by such an award shall lapse if the recipient does not remain in the continuous employ of the Company for at least one year or lesser period from
the date of the granting of the award. 
 (4) Restriction Criteria: The Committee shall establish the criteria upon which
the restriction period shall be based. Restrictions may be based upon either the continued employment of the recipient or upon the attainment by the Company of one or more of the following measures of the operating performance: 
  

							
		 	a. Earnings	  	d. Financial return ratios	 	
		 	b. Revenue	  	e. Total Shareholder Return	 	
		 	c. Operating or net cash flows	  	f. Market share	 	

 The Committee shall establish the specific targets for the selected criteria. These targets may be
set at a specific level or may be expressed as relative to the comparable measure at comparison companies or a defined index. Performance objectives may be established in combination with restrictions based upon the continued employment of the
recipient. These targets may be based upon the total Company or upon a defined business unit which the executive has responsibility for or influence over. 
 In cases where objective performance criteria are established, the Committee shall determine the extent to which the criteria have been achieved and the corresponding level to which restrictions will be removed from
the Award or the extent to which a participant’s right to receive an Award should be lapsed in cases where the performance criteria have not been met and shall certify these determinations in writing. The Committee may provide for the
determination of the attainment of such restrictions in installments where deemed appropriate. 
 (c) Terms and Conditions of
Restrictions and Forfeitures: The shares of Common Stock awarded pursuant to the Plan shall be subject to the following restrictions and conditions: 
 (1) During the Restriction Period, the participant will not be permitted to sell, transfer, pledge or assign Restricted Stock awarded under this Plan. 
 (2) Except as provided in Section 8(c)(i), or as the Committee may otherwise determine, the participant shall have all of the rights of a
stockholder of the Issuer, including the right to vote the shares and receive 

  

 12 

 
dividends and other distributions provided that distributions in the form of stock shall be subject to the same restrictions as the underlying Restricted
Stock. 
 (3) In the event of a participant’s retirement, death or disability prior to the end of the Restriction Period for a
participant who has satisfied the one year employment requirement of Section 7(c)(iii) with respect to an award prior to Retirement, death or Disability, the participant, or his/her estate, shall be entitled to receive that proportion (to the
nearest whole share) of the number of shares subject to the Award granted as the number of months of the Restriction Period which have elapsed since the Award date to the date at which the participant’s retirement, death or disability occurs,
bears to the total number of months in the Restriction Period. The participant’s right to receive any remaining shares shall be canceled and forfeited and the shares will be deemed to be reacquired by the Issuer. 
 (4) In the event of a participant’s retirement, death, disability or in cases of special circumstances as determined by the Committee, the
Committee may, in its sole discretion when it finds that such an action would be in the best interests of the Company, accelerate or waive in whole or in part any or all remaining time based restrictions with respect to all or part of such
participant’s Restricted Stock. 
 (5) Upon termination of employment for any reason during the restriction period, subject to the
provisions of paragraph (iii) above or in the event that the participant fails promptly to pay or make satisfactory arrangements as to the withholding taxes as provided in the following paragraph, all shares still subject to restriction shall
be forfeited by the participant and will be deemed to be reacquired by the Company. 
 (6) A participant may, at any time prior to the
expiration of the Restriction Period, waive all right to receive all or some of the shares of a Restricted Stock Award by delivering to the Company a written notice of such waiver. 
 (7) Notwithstanding the other provisions of this Section 7, the Committee may adopt rules which would permit a gift by a participant of
restricted shares to members of his/her immediate family (spouse, parents, children, stepchildren, grandchildren or legal dependants) or to a Trust whose beneficiary or beneficiaries shall be either such a person or persons or the participant.

 (8) Any attempt to dispose of Restricted Stock in a manner contrary to the restrictions shall be ineffective. 
 (9) Notwithstanding any provisions of this Plan or of the applicable Restricted Stock Agreement to the contrary, in the event a participant’s
employment with the company terminates for a qualifying reason (as defined in Section 6(14)(B) of this Plan) during the three (3) year period following a change in control of the Company (as defined in Section 6(14)(A) of this Plan),
all restrictions shall immediately lapse and the Restricted Stock shall become fully vested, including restricted stock hold less than one year. 
 9. Determination of Breach of Conditions: The determination of the Committee as to whether an event has occurred resulting in a forfeiture or a termination or reduction of the Company’s obligations in accordance with
the provisions of the Plan shall be conclusive. 
 10. Adjustment in the Event of Change in Stock: In the event of changes
in the outstanding Common Shares of the Company (including but not limited to changes in either the number of shares or the value of shares) by reason of any stock split, reverse stock split, dividend or other distribution (whether in the form of
cash, shares, other securities or other property), extraordinary cash dividend, recapitalization, merger, consolidation, split-up, spin-off, reorganization, combination, repurchase or exchange of shares or other securities, the issuance of warrants
or other rights to purchase shares or other securities, or other similar corporate transaction or event, if the Committee shall determine, in its sole discretion, that, in order to prevent dilution or enlargement of benefits or potential benefits
intended to be made available 
  

 13 

 
under the Plan, such transaction or event equitably requires an adjustment in the aggregate number and/or class of shares available under the Plan, in the
number, class and/or price of shares subject to outstanding options and/or awards, or in the number of performance units and/or dollar value of each such unit, such adjustment shall be made by the Committee and shall be conclusive and binding for
all purposes under the Plan. Notwithstanding the foregoing, no adjustments shall be made with respect to an award granted to an employee covered under Section 162(M) of the Code to the extent such adjustment would cause the award to fail to
qualify as performance-based compensation under that Section. 
 11. Taxes: Each participant shall, no later than the Tax
Date (as defined below), pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any Withholding Tax (as defined below) with respect to an Option or Award, and the Company shall, to the extent permitted by law,
have the right to deduct such amount from any payment of any kind otherwise due to the participant. The Company shall also have the right to retain or sell without notice, or to demand surrender of, shares of Common Stock in value sufficient to
cover the amount of any Withholding Tax (that is that portion of any Applicable Tax, as defined below, required by any governmental entity to be withheld or otherwise deducted and paid with respect to such Award), and to make payment (or to
reimburse itself for payment made) to the appropriate taxing authority of an amount in cash equal to the amount of such Withholding Tax, remitting any balance to the participant. For purposes of the paragraph, the value of shares of Common Stock so
retained or surrendered shall be the average of the high and low sales prices per share on the New York Stock Exchange composite tape on the date that the amount of the Withholding Tax is to be determined (the “Tax Date”) and the value of
shares of Common Stock so sold shall be the actual net sale price per share (after deduction of commissions) received by the Company. Notwithstanding the foregoing, if the stock options have been transferred, the optionee shall provide the Company
with funds sufficient to pay such Withholding Tax or Applicable Tax. Furthermore, if such optionee does not satisfy his tax payment obligation and the stock options have been transferred, the transferee may provide the funds sufficient to enable the
Company to pay such taxes. However, if the stock options have been transferred, the Company shall have no right to retain or sell without notice, or to demand surrender from the transferee of, shares of Common Stock in order to pay such Withholding
Tax or Applicable Tax. 
 Notwithstanding the foregoing, the participant shall be entitled to satisfy the obligation to pay any Withholding
Tax or to satisfy the obligation to pay any tax to any governmental entity in respect of such Award, including any Federal, state or local income tax up to an amount determined on the basis of the highest marginal tax rate applicable to such
participant, Federal Insurance Contribution Act taxes or other governmental impost or levy (an “Applicable Tax”), in whole or in part, by providing the Company with funds sufficient to enable the Company to pay such Withholding Tax or
Applicable Tax or by requiring the Company to retain or to accept upon delivery thereof by the participant shares of Common Stock having a Fair Market Value sufficient to cover the amount of such Withholding Tax or Applicable Tax or in a greater
amount as deemed appropriate by the Company. Each election by a participant to have shares retained or to deliver shares for this purpose shall be subject to the following restrictions: (i) the election must be in writing and be made on or
prior to the Tax Date; (ii) the election must be irrevocable; (iii) the election shall be subject to the disapproval of the Committee. 
 12. Deferral Election: Notwithstanding the provisions of Section 11, any optionee or participant may elect, with the concurrence of the Committee and consistent with any rules and regulations established by the
Committee, to defer the delivery of the proceeds of the exercise of any stock option not transferred under the provisions of Section 6(b)(6) or stock appreciation rights. 
 (a) Election Timing: The election to defer the delivery of the proceeds from any eligible award must be made at least six months prior
to the date such award is exercised or at such other time as the Committee may specify. Deferrals will only be allowed for exercises which occur while the optionee or participant is an active employee of the Company. Any election to defer the
delivery of proceeds from an eligible award shall be irrevocable as long as the optionee or participant remains an employee of the Company. 
 (b) Stock Option Deferral: The deferral of the proceeds of stock options may be elected by an optionee subject to the Regulations established by the Committee. The proceeds from such an exercise shall be credited to the

  

 14 

 
optionee’s deferred stock option account as the number of deferred share units equivalent in value to those proceeds. Deferred share units shall be
valued at the Fair Market Value on the date of exercise. Subsequent to exercise, the deferred share units shall be valued at the Fair Market Value of Common Stock of the Company. Deferred share units shall accrue dividends at the rate paid upon the
Company’s Common Stock credited in the form of additional deferred share units. Deferred share units shall be distributed in shares of Company Stock upon the termination of employment of the participant or at such other date as may be approved
by the Committee over a period of no more than 10 years. 
 (c) Stock Appreciation Right Deferral: Upon such exercise, the
Company will credit the optionee’s deferred stock option account with the number of deferred share units equivalent in value to the difference between the Fair Market Value of a share of Common Stock on the exercise date and the exercise price
of the Stock Appreciation Right multiplied by the number of shares exercised. Deferred share units shall be valued at the Fair Market Value on the date of exercise. Subsequent to exercise, the deferred share units shall be valued at the Fair Market
Value of Common Stock of the Company. Deferred share units shall accrue dividends at the rate paid upon the Company’s Common Stock credited in the form of additional deferred share units. Deferred share units shall be distributed in shares of
Common Stock upon the termination of employment of the participant or at such other date as may be approved by the Committee over a period of no more than 10 years. 
 (d) Accelerated Distributions: The Committee may, at its sole discretion, allow for the early payment of an optionee’s or participant’s deferred share units account in the event of an
“unforeseeable emergency” or in the event of the death or disability of the optionee or participant. An “unforeseeable emergency” is defined as an unanticipated emergency caused by an event beyond the control of the optionee or
participant that would result in severe financial hardship if the distribution were not permitted. Such distributions shall be limited to the amount necessary to sufficiently address the financial hardship. Any distributions under this provision
shall be consistent with the Regulations established under the Code. Additionally, the Committee may use its discretion to cause deferred share unit accounts to be distributed when continuing the Program is no longer in the best interest of the
Company. 
 (e) Assignability: No rights to deferred share unit accounts may be assigned or subject to any encumbrance,
pledge or charge of any nature except that an optionee or participant may designate a beneficiary pursuant to any rules established by the Committee. 
 13. Amendment of the Plan: The Board of Directors may amend or suspend the Plan at any time and from time to time. No such amendment of the Plan may, however, increase the maximum number of shares to
be offered under options or awards, or change the manner of determining the option price, or change the designation of employees or class of employees eligible to receive options or awards, or permit the transfer or issue of stock before payment
therefor in full, or, without the written consent of the optionee or participant, alter or impair any option or award previously granted under the Plan or Prior Plan. Notwithstanding the foregoing, if an option has been transferred in accordance
with Section 6(b)(6), written consent of the transferee (and not the optionee) shall be necessary to alter or impair any option or award previously granted under the Plan. 
 14. Miscellaneous: 
 (a) By accepting any benefits under the Plan, each optionee or participant
and each person claiming under or through such optionee or participant shall be conclusively deemed to have indicated acceptance and ratification of, and consent to, any action taken or made to be taken or made under the Plan by the Company, the
Board, the Committee or any other Committee appointed by the Board. 
 (b) No participant or any person claiming under or through him
shall have any right or interest, whether vested or otherwise, in the Plan or in any option, or stock appreciation right or award thereunder, contingent or otherwise, unless and until all of the terms, conditions and provisions of the Plan and the
Agreement that affect such participant or such other person shall have been complied with. 
  

 15 

 (c) Nothing contained in the Plan or in any Agreement shall require the Company to segregate or
earmark any cash or other property. 
 (d) Neither the adoption of the Plan nor its operation shall in any way affect the rights and
powers of the Company or any of its Subsidiaries or Affiliates to dismiss and/or discharge any employee at any time. 
 (e) Notwithstanding anything to the contrary in the Plan, neither the Board nor the Committee shall have any authority to take any action under the Plan where such action would affect the Company’s ability to account for any
business combination as a “pooling of interests.” 
 15. Term of the Plan: The Plan, if approved by stockholders,
will be effective May 6, 1997. The Plan shall expire on May 31, 2002 unless suspended or discontinued by action of the Board of Directors. The expiration of the Plan, however, shall not affect the rights of Optionees under options
theretofore granted to them or the rights of participants under awards theretofore granted to them, and all unexpired options and awards shall continue in force and operation after termination of the Plan except as they may lapse or be terminated by
their own terms and conditions. 
 16. Employees Based Outside of the United States: Notwithstanding any provision of the
Plan to the contrary, in order to foster and promote achievement of the purposes of the Plan or to comply with provisions of laws in other countries in which the Company, its Affiliates and its Subsidiaries operate or have Employees, the Committee,
in its sole discretion, shall have the power and authority to (i) determine which Employees employed outside the United States are eligible to participate in the Plan, (ii) modify the terms and conditions of options granted to Employees
who are employed outside the United States, (iii) establish subplans, modified option exercise procedures and other terms and procedures to the extent such actions may be necessary or advisable, and (iv) grant to Employees employed in
countries wherein the granting of stock options is impossible or impracticable, as determined by the Committee, stock appreciation rights with terms and conditions that, to the fullest extent possible, are substantially identical to the stock
options granted hereunder. 
  

 16Amended Employment Agreement

 Exhibit 10.1 
 

 
 September 24, 2008 
 Mr. Carlos A. Riva 
 P.O. Box 137 
 Hamilton,
MA 01936 
 Dear Carlos: 
 We are pleased to
confirm the continued compensation and employment agreement between you and Verenium Corporation (the “Company”). In consideration of the covenants and agreements set forth below, the Company hereby continues to employ you,
and you hereby agree to be employed by the Company, on the following terms and conditions: 
 1. Term. This letter
agreement (the “Agreement”) shall become effective as of September 24, 2008, (the “Effective Date”) and shall continue until it is terminated by you or the Company in accordance with, and subject
to the obligations set forth in, the provisions of Section 5 below (the “Term”). 
 2. Duties and
Responsibilities. During the Term of this Agreement, you shall have, and you agree to carry out to the best of your ability, the duties and responsibilities of President and Chief Executive Officer. You shall have such executive
responsibilities and duties as are assigned by the Board of Directors of the Company (the “Board”) and are consistent with the positions of President and Chief Executive Officer. In the performance of your duties and
responsibilities hereunder, you shall regularly report to the Board. You agree to devote your full business time, attention and energies to the business and interests of the Company during the Term of this Agreement and you will not accept any
outside position without the prior written consent of the Board, except that you may serve on up to a maximum of two boards of directors provided that you have approval of the Board’s Compensation Committee and provided that your time spent in
such service is reasonable and does not detract from the performance of your duties to the Company. You warrant that you are free to enter into and fully perform this Agreement and are not subject to any employment, confidentiality, non-competition
or other agreement which would restrict your performance under this Agreement. You have been previously appointed to serve in the class of directors whose terms expire at the Company’s 2010 annual stockholders’ meeting. In connection with
the termination of your employment by the Company as President and Chief Executive Officer, you shall resign from the Board effective simultaneously with the effective date of such termination. 
 You shall fulfill your duties and responsibilities to the Company hereunder primarily from the Company’s corporate office located in Cambridge, MA,
or, in the event the Company relocates its principal office, from such future location, provided that the Company shall not require you to maintain your principal place of work in any location that is more than fifty (50) miles outside of
Boston, MA without your prior consent, provided, however that the Company may from time to time require you to travel temporarily to other locations in connection with the Company’s business. 

 3. Compensation and Benefits. Subject to your adherence to all of your
responsibilities under this Agreement, during the Term of this Agreement you shall be entitled to receive the following compensation and benefits. 
 (a) Base Salary. Commencing on the Effective Date, and during the Term of this Agreement, the Company will pay you a base salary at not less than the monthly rate of $41,250.00 (“Base
Salary”), minus withholdings as required by law or other deductions authorized by you, which amount shall be paid to you in periodic installments in accordance with the Company’s payroll practices then in effect. Your Base Salary
shall be subject to review and upward adjustment on an annual basis by the Board of Directors or its Compensation Committee; provided, however, that subject to the provisions of Section 5(f), your Base Salary may be reduced at any time in
connection with an across-the-board reduction of all senior executives’ annual base salaries. 
 (b)
Incentive Bonus. For each calendar year during the Term of this Agreement, you will be eligible to receive an annual performance-based incentive bonus, based upon the achievement of milestones set by the Board, with a target bonus of
sixty percent (60%) of the Base Salary earned during such period (the “Bonus”). Any incentive bonus earned by you will be paid in accordance with the Company’s standard practices and policies regarding bonuses, and
which shall be paid in the calendar year following the year for which the Bonus was earned. The milestones required to achieve payment of the bonus will be established by the Board of Directors, after consultation with you. Except as otherwise
provided in this Agreement, to be eligible to have earned a Bonus for a calendar year, you must be employed through the last date of such calendar year. 
 (c) Benefits. During the Term of this Agreement, you shall be entitled to participate, to the extent you are otherwise eligible, in all group insurance programs or other fringe benefit plans which
the Company shall make available to similarly situated employees. The Company may alter, modify, add to or delete its employee benefit plans at any time as it, in its sole judgment, determines to be appropriate, without recourse by you. 

(d) Vacation. You will be entitled to four (4) weeks of vacation per calendar year, in accordance with the
Company’s vacation policy as in effect from time to time. 
 (e) Stock Options. In connection with your original compensation agreement with the Company dated June 20, 2007, you have been granted an option to purchase one million (1,000,000) shares of the Company’s
common stock (the “Initial Grant”) which you and the Company agree shall vest as follows: i) 624,146 shares of Company common stock underlying the Initial Grant (the “Time Based Options”) shall
vest over four (4) years for so long as you are employed by the Company on these designated vesting dates: x) on September 30, 2008 one-twelfth (1/12th) of the Time Based Option shares shall vest; and y) an additional 1/12th of the Time Based Option shares shall
vest on the final day of each quarter of each calendar year thereafter; and (ii) 375,854 shares of Company common stock underlying the Initial Grant that are non-qualified stock options (the “Performance Based Options”)
will vest on the seventh annual anniversary of the date of grant so long as you are employed by the Company on such vesting date, subject to acceleration of vesting based on achievement (as determined by the Compensation 

  

 2 

 
Committee of the Board of Directors) of performance goals to be established by the Committee (the “Performance Goals “). Upon
achievement of a specific Performance Goal, vesting of the number of shares of the Performance Based Options associated with achievement of such Performance Goal shall be accelerated so that such number of shares shall vest (or be deemed to have
vested, as applicable) over a period of four (4) years on a pro rata basis monthly, commencing from the date of the Initial Grant. If a Performance Goals is achieved prior to the four year anniversary of the date of the Initial Grant, the
remaining unvested shares of Performance Based Options associated with achievement of such Performance Goal shall continue to vest on a pro rata monthly basis over the remainder of such four year period subject to your continued service with the
Company through the applicable vesting dates. In addition, in July 2007 you were granted a non-qualified stock option to purchase 289,496 shares of the Company’s common stock subject to the same vesting terms as the Performance Based Options
(the “July 2007 Performance Based Options”). 
 (f) Change in Control Acceleration of
Vesting. Upon a Change in Control (as defined below), the vesting of stock options and any other equity awards to purchase Company stock held by you will automatically accelerate as follows: 
 (i) effective immediately prior to such Change in Control, all stock options, restricted stock, and any other equity awards except
your “Undetermined Performance Based Options” (as defined below), shall accelerate vesting and no longer be subject to a risk of forfeiture or a right to repurchase by the Company, if applicable, as if you had been employed by the Company
for an additional period of twenty four (24) months as of the date of the Change in Control. Subject to your continued service with the Company following the Change in Control, any remaining unvested portion of such accelerated equity awards
will continue to vest according to the terms of the applicable equity award agreements, but on the schedule and at the rate of number of shares as such awards would have vested if the original vesting schedule applicable to such options had been
accelerated by twenty-four (24 months. For example, if at the time of the Change in Control the unvested portion of your equity award is 3,600 shares, which would otherwise continue to vest in 36 equal monthly installments of 100 shares each, then
(A) 2,400 shares shall become vested immediately upon the Change in Control and (ii) the remaining 1,200 shares will vest during your continued service following the Change in Control in twelve monthly installments of 100 shares, with the
result being that your award will be fully vested twenty-four months earlier than it would have been had no Change in Control occurred. 
 (ii) for those Performance Based Options for which, at the time of the Change in Control, performance assessments have not yet been made by the Board or Compensation Committee that the Performance Goals
applicable to such awards have been achieved (the “Undetermined Performance Based Options”) vesting of the Undetermined Performance Based Options shall be accelerated so that such options shall vest on a pro rata basis
monthly, commencing from the date of the Change in Control until the earlier of (x) the original vesting date of such options, or (y) the date which is four (4) years after the Change in Control. Following a Change in Control, the
Undetermined Performance Based Options that accelerate vesting pursuant to this provision shall remain subject to acceleration of vesting as provided in Section 3(e) based on achievement of the Performance Goals. 
  

 3 

 (iii) In the event that the Company agrees to, approves, enters, or is required to
enter into a transaction, a series of related transactions, or a proceeding, or nominates one or more directors such that any of the foregoing would result in a Change in Control, the Board will assess whether any additional accelerated vesting of
your equity awards should occur. 
 (iv) In addition, all equity awards shall be subject to accelerated vesting
pursuant to Section 5(c)(iii) of this Agreement, if applicable. 
 (g) Change in Control. For
purposes of this Agreement, “Change in Control” means the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 
 (i) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
(A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of related transactions the primary purpose of which is to obtain
financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated percentage threshold of the
outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur (but for the operation of this sentence)
as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or other acquisition had not occurred,
increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur; 
 (ii) there is consummated a merger, consolidation or similar transaction involving (directly or indirectly) the Company and,
immediately after the consummation of such merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting securities representing more
than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power of the parent
of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company immediately prior to such transaction;

 (iii) the stockholders of the Company approve or the Board approves a plan of complete dissolution or liquidation of
the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation; 
  

 4 

 (iv) there is consummated a sale, lease, exclusive license or other disposition of
all or substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity,
more than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by stockholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or 
 (v) individuals who, on the date this Plan
is adopted by the Board, are members of the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or nomination for
election) of any new Board member was approved or recommended by a majority vote of the members of the Incumbent Board then still in office, such new member shall, for purposes of this Plan, be considered as a member of the Incumbent Board.

 For the avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively
for the purpose of changing the domicile of the Company. Capitalized terms utilized in the foregoing definition of Change in Control shall have the following meanings: 
 (vi) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of
Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (“Exchange Act”)), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any
employee benefit plan of the Company or any Subsidiary of the Company or any trustee or other fiduciary holding securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, (iv) an Entity Owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their Ownership of stock of the Company; or (v) any natural
person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company representing more than fifty percent
(50%) of the combined voting power of the Company’s then outstanding securities. 
 (vii)
“Entity” means a corporation, partnership, limited liability company or other entity. 
 (viii)
“Own,” “Owned,” “Owner,” “Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of
securities if such person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such
securities. 
 (ix) “Subsidiary” means, with respect to the Company, (i) any corporation
of which more than fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of
such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the
Company has a direct or indirect interest (whether in the form of voting or participation in profits or capital) of more than fifty percent (50%). 
  

 5 

 (h) Business Expense Reimbursement. The Company shall reimburse you
for the travel, entertainment and all other business related expenses reasonably incurred by you in the performance of your duties hereunder in accordance with the Company’s policies as in effect from time to time for senior executives

 (i) Indemnification. The Company agrees that you shall be entitled to indemnification to the fullest
extent permitted under the Company’s Articles of Incorporation and Bylaws, and as required by law. In addition, the Company will also provide you with an Indemnity Agreement, in the form attached hereto as Exhibit A. 
 4. Confidential and Proprietary Information; Restrictive Covenants; Non-solicitation; Indemnification. 
 (a) Covenant not to Compete. You acknowledge that by virtue of your employment pursuant to this Agreement, you will
have access to valuable trade secrets and other confidential business and proprietary information of the Company. Except with the prior written consent of the Board you will not, during your employment by the Company, engage in competition with the
Company and/or any of its Affiliates, either directly or indirectly in any manner or capacity, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant, or otherwise, in any
phase of the business of researching, developing, manufacturing, or marketing of products or services which are in the same field of use or which otherwise compete with the products or services or proposed products or services of the Company and/or
any of its Affiliates. For purposes of this Agreement, “Affiliate” means any subsidiary of the Company or any other entity that is controlled by or is under common control with the Company. Except with the prior written
consent of the Board, you shall not, during your employment by the Company and for a period of one (1) year thereafter (the “Restricted Period”), engage in competition with the Company or any of its Affiliates, either
directly or indirectly, as adviser, principal, agent, affiliate, promoter, partner, officer, director, employee, stockholder, owner, co-owner, consultant, or otherwise, in any phase of the business of the research, development, manufacturing,
production, sales, or marketing of biofuels. Ownership by you, as a passive investment, of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a
national securities exchange or publicly traded on the Nasdaq Stock Market or in the over-the-counter market shall not constitute a breach of this paragraph. 
 (b) Agreement not to Participate in Company’s Competitors. During any period during which you are receiving
compensation or consideration from the Company, you will not acquire, assume, or participate in, directly or indirectly, any position, investment, or interest known by you at the time of such position, investment or interest to be adverse or
antagonistic to the Company, its business, or prospects, financial or otherwise, or in any company, person, or entity that is, directly or indirectly, in competition with the business of the Company or any of its Affiliates. Ownership by you, as a
passive investment, of less than two percent (2%) of the outstanding shares of capital stock of any corporation with one or more classes of its capital stock listed on a national securities exchange or publicly traded on the Nasdaq Stock Market
or in the over-the-counter market shall not constitute a breach of this paragraph. 
  

 6 

 (c) Non-solicitation. During the Restricted Period you shall not,
either directly, or through others: (1) hire or participate in the hiring of any individual who is at that time an employee, consultant or independent contractor of the Company or any Affiliate; (2) solicit or attempt to solicit any
individual who is at that time an employee, consultant or independent contractor of the Company or any Affiliate to terminate his or her relationship with the Company or any Affiliate in order to become an employee, consultant or independent
contractor to or for any person or business entity; or (3) solicit or attempt to solicit the business of any client, customer, supplier, service provider, vendor, or distributor of the Company or any Affiliate that is at that time, or that was
during the one (1) year immediately prior thereto, doing business with the Company or any Affiliate for the purpose of engaging in competition with the Company or any of its Affiliates, provided that the foregoing prohibitions shall not apply
to any employee who responds to a general solicitation or advertisement regarding employment with the Company or its affiliates. 
 (d) Employee Invention and Non-Disclosure Agreement. As a condition of employment, you agree to execute and abide by the Company’s standard Employee Invention and Non-Disclosure Agreement, a copy of which is
attached hereto as Exhibit B. 
 5. Termination. You and the Company shall be free to terminate this Agreement as
follows and subject to the payment obligations set forth herein: 
 (a) By the Company for Cause. The
Company shall have the right to terminate your employment hereunder at any time for “Cause.” For purposes of this Agreement only, “Cause” shall be defined to include (1) material misconduct in the performance of your duties
and responsibilities hereunder, (2) your material failure, refusal or inability (other than for reasons of disability) to perform your duties and responsibilities hereunder or to carry out any lawful direction of the Board, (3) breach by
you of a material term of this Agreement, the Employee Invention and Non-Disclosure Agreement, or any other agreement between you and the Company, (4) conviction of or plea of nolo contendere to, a felony or other crime involving moral
turpitude, or imprisonment for any crime; (5) your material failure to comply with Company written policies, including but not limited to Equal Employment Opportunity and Harassment policies, Professional Conduct policy, and/or Code of Business
Conduct and Ethics policy; and (6) your violation of any statutory or fiduciary duty owed to the Company; provided, however, that in the event of a potential termination under subclauses 2, 3, or 5 above, such termination may not occur until at
least thirty (30) days after the Company has provided you with a detailed written notice of the ground(s) for such potential termination, and then only if in the reasonable determination of the Board you have failed to correct the behavior
giving rise to such potential termination. Notwithstanding any other provision of this Agreement, in the event of a termination for Cause pursuant to this paragraph, the Company shall only be obligated to pay you (i) your Base Salary through
the date of your termination, (ii) your accrued but unused vacation, (iii) any earned, but unpaid, Bonus described in Section 3(b) with respect to the calendar year immediately preceding the year in which your employment is
terminated, based on the achievement of the performance milestones established for such calendar year in accordance with Section 3(b), as determined by the Board of Directors, which determination may occur either before or after your
termination of employment so that you may have earned a Bonus described in Section 3(b) notwithstanding your termination of employment following the calendar year for which the Bonus was earned but prior to the date such determination (or an
associated bonus payment) is made (the “Unpaid Bonus”), and (iv) such other benefits and payments to which you may be entitled by law or pursuant to the benefit plans of the Company then in effect (collectively, the
“Accrued Obligations”). Any Accrued Obligations other than Unpaid Bonus shall be paid to you either upon, 

  

 7 

 
or as soon as administratively practicable following, your termination of employment. Any Unpaid Bonus will be paid to you as soon as administratively
practicable following the later of: (i) your termination of employment, or (ii) the determination by the Board of Directors that one or more of the performance milestones applicable to such Bonus amounts have been achieved, provided that
following a Change in Control, if the Board of Directors has at any time determined (whether such determination is made before or after a Change in Control) that one or more pre-established performance milestones (if any) applicable to such Bonus
amount have been achieved, any determination by the Board of Directors of the amount of Bonus payable shall be made without any exercise of negative discretion by the Board of Directors to reduce the Bonus amount. 
 (b) Death; Disability. Your employment hereunder shall terminate in the event of your death and in the event that you
shall be prevented, by illness, accident, disability or any other physical or mental condition (to be determined by means of a written opinion of a competent medical doctor chosen by mutual agreement of the Company and you or your personal
representative), from substantially performing your duties and responsibilities hereunder, with or without a reasonable accommodation, for one or more periods totaling ninety (90) days in any twelve (12) month period. In the event of a
termination of your employment pursuant to this paragraph, you or your estate, as applicable, shall be entitled to receive payment of the Accrued Obligations. You shall also be eligible to receive any disability-related benefits provided by the
Company at the time of such disability, in accordance with the terms and conditions of such benefit plans. 
 (c)
Termination by the Company Other Than for Cause. The Company shall have the right to terminate your employment hereunder at any time other than for Cause. In the event of a termination by Company pursuant to this paragraph, you shall
be entitled to receive payment of the Accrued Obligations and the following severance pay and related benefits: 
 (i)
the Company will pay you severance pay in the amount of (A) your then-current annual Base Salary plus (B) the higher of (i) your Bonus for the year in which the termination occurs or (ii) the average percentage of your Base
Salary paid to you as Bonus in the two fiscal years prior to the termination date, in each case pro -rated by the number of days you were employed in the calendar year of the termination, provided however, that if the termination date occurs during
the first year of employment, the pro-rated amount of the Bonus, if any, shall be determined in the sole discretion of the Board or the Compensation Committee (A and B, collectively are the “Severance Pay”). Your Severance
Pay shall be paid in equal installments over a period of twelve (12) months commencing with the first payroll period following the effective date of the Release required by Section 5(e), minus required withholdings, which severance
payments will be made to you on the Company’s normal payroll cycle; 
 (ii) should you elect to continue your
group health and dental insurance benefits in accordance with the provisions of COBRA following the date of your termination, the Company shall pay the full premium for such health and dental insurance continuation benefits for a period of twelve
(12) months after the termination date; provided, however, that any such payments will cease if you voluntarily enroll in a health insurance plan offered by another employer or entity during the period in which the Company is paying such
premiums. You agree to immediately notify the Company in writing of any such enrollment. 
  

 8 

 (iii) notwithstanding the terms of any stock option grants and/or restricted stock
awards, the vesting of all options to purchase Company stock held by you will automatically accelerate such that, in addition to any vesting acceleration earned by you pursuant to Section 3(e) or 3(f) of this Agreement prior to the effective
date of such termination, effective on the date of such termination you will be deemed vested in shares subject to all equity awards except for any Undetermined Performance Based Options as if you had remained employed by the Company for an
additional period of twenty four (24) months as of the date of termination and all restricted stock held by you that would otherwise vest as if you had been employed by the Company for an additional twenty four (24) months as of the date
of termination shall automatically and immediately vest and no longer be subject to forfeiture or a right to repurchase by the Company as of the date of termination. The Board or the Compensation Committee shall determine which portion, if any of
the Undermined Performance Based Options to treat as Determined Performance Based Options for purposes of this subparagraph (iii) using the following guidelines: (A) if the termination date occurs following the second annual anniversary of
your employment with the Company, the amount of then Undetermined Performance Based Options to be treated as Determined Performance Based options shall be not less than the average percentage of Performance Based Options which became Determined
Performance Based Options in the prior two years as described in Section 3(e); or (B) if the termination date occurs prior to the second annual anniversary of your employment with the Company and/ or if no Performance Based Options have
been “Determined” as of your termination date, the Board, in its sole discretion and based on your performance up to the termination date, shall determine what percentage, if any, of the Performance Based Options shall be deemed Determined
Performance Based Options. For purposes of the foregoing provisions “Determined Performance Based Options” are Performance Based Options for which the Board or Compensation Committee has determined that the applicable performance goals
have been achieved. 
 (d) Termination by the Company Other Than for Cause or by the Executive for Good Reason
Following a Change in Control. In the event that within fifteen (15) months following the effective date of a Change in Control the Company shall terminate your employment other than for Cause, or you shall resign from employment for
Good Reason, you shall receive all of the benefits specified in Section 5(c) of this Agreement, and, additionally, all equity awards except any Undetermined Performance Based Options that are unvested as of the effective date of such
termination shall be immediately accelerated such that they shall be fully vested and exercisable as of the effective date of such termination. 
 (e) Release and Non-disclosure. Your right to receive such severance pay, stock and/or option accelerated vesting benefits, and related benefits as set forth in Sections 5(c) and (d) shall be
contingent upon (x) your compliance with all of your obligations under this Agreement and the Employee Invention and Non-Disclosure Agreement, and (y) your delivery to the Company of a general release of all claims against the Company and
its affiliates in the form attached hereto as Exhibit A or in such other form as may be specified by the Company (the “Release”), within the applicable time period set forth therein but in no event later than forty-five
(45) days following your termination of employment, and permitting such release to become fully effective in accordance with its terms. 
  

 9 

 (f) Termination by You for Good Reason. You shall have the right to
terminate your employment hereunder at any time for “Good Reason” (as defined below). In the event that you resign your employment with “Good Reason,” your resignation shall be deemed to be a
termination of your employment by the Company other than for Cause pursuant to paragraph 5(c) above, in which event both you and the Company shall have your respective rights and obligations under such paragraph 5(c) above in the event of such a
termination. In the event that you do not send the Company a written notice of your intent to resign pursuant to this paragraph within ninety (90) days following an event constituting Good Reason, your rights under this paragraph 5(d) shall
cease as to such event. For purposes of this Agreement, the phrase “Good Reason” shall mean any one of the following events which occurs without your consent on or after the commencement of your employment, provided that you
have first provided written notice to any member of the Board (or the surviving corporation, as applicable) within 90 days of the first such occurrence of such condition specifying the event(s) constituting Good Reason and specifying that you intend
to terminate your employment not earlier than 30 days after providing such notice, and the Company (or surviving corporation) has not cured such event(s) within 30 days (or such longer period as may be specified by you in such notice) after your
written notice is received by such member of the Board (or by the surviving corporation) (the “Cure Period”), and you resign within thirty (30) days following the end of the Cure Period: (i) a material reduction in your duties,
authority or responsibilities as described in Section 2 of this Agreement, (ii) a material reduction in your Base Salary, provided, however, that a reduction in your Base Salary shall not constitute Good Reason if it (A) is made in
connection with an across-the-board reduction of all senior executives’ annual base salaries, and (B) does not occur within the fifteen (15) month period following the effective date of a Change in Control, (iii) material
reduction of your ability to participate in the Company’s fringe and benefit plans that effectively constitutes your “involuntary separation from service” for purposes of Treas. Reg. Section 1.409A-1(n), other than any reduction
that (A) is part of a general reduction or other concessionary arrangement affecting all senior officers, and (B) does not occur within the fifteen (15) month period following the effective date of a Change in Control, (it being
understood that, solely for purposes of this paragraph 5(f), such a reduction in the ability to participate in the Company’s fringe and benefit plans is considered a material breach of this Agreement), (iv) the Company requires you to
permanently relocate your office to a location outside the geographic area described in Section 2 of this Agreement which requires a one-way increase in your driving distance of more than twenty-five (25) miles, or (v) any other
conduct that constitutes a material breach by the Company of a material term of this Agreement, or any other written agreement between the Company and you. 
 (g) Termination by You for Any Other Reason. You shall have the right to terminate your employment hereunder at any time for any reason not otherwise covered by paragraph 5(d) by providing ninety
(90) days’ prior written notice to the Company. In the event of a termination by you pursuant to the preceding sentence, the Company shall only be obligated to pay you the Accrued Obligations. The Company shall be obligated, however, to
continue to pay your full compensation as described in Section 3 hereof up to and through the expiration of the ninety (90) day notice period. 
 6. Specific Performance. You recognize and agree that the Company’s remedy at law for breach of the Employee Invention and Non-Disclosure Agreement would be inadequate, and further agree
that, for breach of such provisions, the Company shall be entitled to seek injunctive relief and to enforce its rights by an action for specific performance. 
  

 10 

 7. Payment of Legal Fees; Certain Tax Issues. 
 (a) Legal Fees. The Company shall reimburse you for reasonable documented legal fees incurred by you in connection
with the execution and negotiation of this Agreement, up to a maximum of $15,000, subject to your provision of reasonable documentation of the applicable expenses within 90 days following execution of this Agreement. The Company shall provide such
payment, subject to applicable tax withholding, within 30 days following the date that you submit such documentation. 
 (b) Withholding. All payments made to you pursuant to this Agreement or otherwise in connection with your employment shall be subject to the usual withholding practices of the Company and will be made in compliance with
existing federal and state requirements regarding the withholding of tax. 
 (c) Application of Internal Revenue
Code Section 409A. Notwithstanding anything to the contrary set forth herein, any Severance Pay amounts that constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code shall not
commence in connection with your termination of employment unless and until you have also incurred a “separation from service” within the meaning of Section 409A of the Code, unless the Company reasonably determines that such amounts
may be provided to you without causing you to incur the additional 20% tax under Section 409A. To the extent any payments or benefits pursuant to Section 5 above (a) are paid following the date of termination of your employment
through March 15 of the calendar year following such termination, such severance benefits are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations and thus payable pursuant to the
“short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations; (b) are paid following said March 15, such Severance Benefits are intended to constitute separate payments for purposes of
Section 1.409A-2(b)(2) of the Treasury Regulations made upon an involuntary separation from service and payable pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations, to the maximum extent permitted by said provision, and
(c) are in excess of the amounts specified in clauses (a) and (b) of this paragraph, shall (unless otherwise exempt under Treasury Regulations) be considered separate payments subject to the distribution requirements of
Section 409A(a)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”), including, without limitation, the requirement of Section 409A(a)(2)(B)(i) of the Code that payments or benefits be delayed until
6 months after your separation from service if you are a “specified employee” within the meaning of the aforesaid section of the Code at the time of such separation from service. In the event that a six month delay of any such separation
payments or benefits is required, on the first regularly scheduled pay date following the conclusion of the delay period you shall receive a lump sum payment or benefit in an amount equal to the separation payments and benefits that were so delayed,
and any remaining separation payments or benefits shall be paid on the same basis and at the same time as otherwise specified pursuant to this Agreement (subject to applicable tax withholdings and deductions). 
 (d) Parachute Payment. In the event the benefits provided by this Agreement, when aggregated with any other payments
or benefits received by you, would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be reduced to the Reduced Amount. The “Reduced Amount” shall be either (x) the largest portion of the Payment that would result in no portion of the
Payment being subject to the Excise Tax or (y) the largest portion, up to and including the 

  

 11 

 
total, of the Payment, whichever amount, after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax
(all computed at the highest applicable marginal rate), results in your receipt, on an after-tax basis, of the greater amount of the Payment notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in
payments or benefits constituting “parachute payments” is necessary so that the Payment equals the Reduced Amount, reduction shall occur in the following order unless you elect in writing a different order (provided, however, that such
election shall be subject to Company approval if made on or after the effective date of the event that triggers the Payment): reduction of cash payments; cancellation of accelerated vesting of stock awards; reduction of employee benefits. In the
event that acceleration of vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of your stock awards unless you elect in writing a different order for
cancellation. 
 The accounting firm engaged by the Company for general audit purposes as of the day prior to the effective
date of the Change in Control shall perform the foregoing calculations. If the accounting firm so engaged by the Company is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, then the Company shall
appoint a nationally recognized accounting firm to make the determinations required hereunder. The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder. 
 The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting
documentation, to you and the Company within fifteen (15) calendar days after the date on which your right to a Payment is triggered (if requested at that time by you or the Company) or such other time as requested by you or the Company. If the
accounting firm determines that no Excise Tax is payable with respect to a Payment, either before or after the application of the Reduced Amount, it shall furnish you and the Company with an opinion reasonably acceptable to you that no Excise Tax
will be imposed with respect to such Payment. Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon you and the Company. 
 8. Continuation of Employment. You understand, acknowledge and agree that this Agreement does not create an obligation for the
Company or any other person to continue your employment and, subject to your right to receive compensation and benefits as provided in Section 5, you will be an at-will employee and the Company may terminate your employment at any time subject
to any notice provisions set forth in this Agreement. 
 9. Choice of Law. This Agreement, and all disputes arising
under or related to it, shall be governed by the law of the Commonwealth of Massachusetts. 
 10. Arbitration. All
disputes arising out of this Agreement (other than initial applications for injunctive relief under the Employee Invention Agreement) shall be resolved by final and binding arbitration. The arbitration shall be conducted in Boston, Massachusetts
under the American Arbitration Association’s (“AAA”) National Rules for the Resolution of Employment Disputes employing a single arbitrator selected upon mutual agreement of the parties. The arbitrator will have the
power to award any types of legal or equitable relief that would be available in a court of competent jurisdiction, including an award of attorneys’ fee and costs to the prevailing party. Each party will be responsible for their own costs and
attorney’s fees, other than the costs for AAA and the single arbitrator, which shall be borne by the Company. 
  

 12 

 11. Assignment. This Agreement, and the rights and obligations of you and the
Company hereunder, shall inure to the benefit of and shall be binding upon, you, your heirs and representatives, and upon the Company and the Company’s successors and assigns. This Agreement may not be assigned by you. Any assignment in
contravention of this Section 12 shall be null and void. 
 12. Severability. In the event that any one or more of
the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Moreover, if any one or more of the
provisions contained in this Agreement shall be held to be excessively broad as to duration, activity or subject, such provision shall be construed by limiting or reducing them so as to be enforceable to the maximum extent compatible with applicable
law. 
 13. Consultation with Counsel; No Representations. You agree and acknowledge that you have had a full and
complete opportunity to consult with counsel of your own choosing concerning the terms, enforceability and implications of this Agreement. Both you and the Company acknowledge that neither party has made any representations or warranties to the
other party concerning the terms, enforceability or implications of this Agreement other than as are reflected in this Agreement. 
 14. No Mitigation; No Set Off. In the event of any termination of employment hereunder, you shall be under no obligation to seek other employment and there shall be no offset against any amounts due to you under this
Agreement on account of any remuneration attributable to any subsequent employment that you may obtain. 
 15. Company
Representations. The Company represents and warrants that it is duly authorized to enter into this Agreement, that there is no law, agreement or other legal restriction on its entering into this Agreement, that its Board has approved this
Agreement and that the officer signing this Agreement is duly authorized and empowered to sign this Agreement on behalf of the Company 
 16. Effect of Agreement on Other Benefits. Except as specifically provided in this Agreement, the existence of this Agreement shall not prohibit or restrict your entitlement to full participation in the employee benefit
and other plans or programs in which comparable senior executives of the Company are eligible to participate. 
 17.
Integration. This Agreement, the documents and Exhibits attached hereto (all of which are incorporated herein by reference), and the documents associated with your stock option grants described in Section 3(e) of this Agreement,
set forth the entire agreement of the parties hereto in respect of the subject matter contained herein and therein and supersede all prior and contemporaneous conflicting agreements, promises, covenants, arrangements, understandings, communications,
representations or warranties, whether oral or written, by any party hereto (or representative of either party hereto). 
  

 13 

 18. Modification; Waiver. No provision of this Agreement may be modified, amended,
waived or discharged unless such waiver, modification, amendment or discharge is agreed to in writing and signed by you and the Chairman of the Board. No waiver by either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
 19. Notices. All notices required by this Agreement shall be in writing and shall be deemed to have been duly delivered when
delivered in person or when mailed by certified mail, return receipt requested, as follows: 
  

	 	(a)	If to you: 

 Carlos A. Riva 
 P.O. Box 137 
 Hamilton, MA 01936 

With a copy to: 
 John T.
McCarthy, Esq. 
 Sanzone & McCarthy, LLP 
 888 Worcester Street, Suite 110 
 Wellesley, MA 02482 
  

	 	(b)	If to Company: 

 Verenium
Corporation 
 55 Cambridge Parkway 
 Cambridge, MA 02142 
 Attn: Board of Directors 
 With a copy to: 
 Wain Fishburn 
 Cooley Godward Kronish LLP 
 4401 Eastgate Mall 
 San Diego, CA 92121-1909 
 or to such other
address as a party hereto shall specify in writing given in accordance with this section. 
 If the foregoing correctly conforms to your
understanding of the agreement between you and Company, please sign and date the enclosed copy of this letter and return it to us. 
  

 14 

			
	Very truly yours,
	
	VERENIUM CORPORATION
		
	By:	 	/s/ Gerald M. Haines II
	Name:	 	Gerald M. Haines II
	Title:	 	Executive Vice President & CLO

  

	
	Agreement Confirmed:
	
	/s/ Carlos A. Riva
	Carlos A. Riva

 Enclosures 
  

			
	 Exhibit A:
	    	Indemnity Agreement
	 Exhibit B:
	    	Employee Invention and Non-Disclosure Agreement
	 Exhibit C:
	    	Release and Waiver of Claims

  

 15

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