Document:

2007 Stock Option and Incentive Plan

 Exhibit 10.3 
 SALARY.COM, INC. 
 2007 STOCK OPTION AND INCENTIVE PLAN 
 SECTION 1. GENERAL PURPOSE OF THE PLAN; DEFINITIONS 
 The name of the plan is the Salary.com, Inc. 2007 Stock Option and Incentive Plan (the “Plan”). The purpose of the Plan is to encourage and enable the officers, employees, Non-Employee Directors and other key persons (including
consultants and prospective employees) of Salary.com, Inc. (the “Company”) and its Subsidiaries upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business to acquire a proprietary
interest in the Company. It is anticipated that providing such persons with a direct stake in the Company’s welfare will assure a closer identification of their interests with those of the Company and its stockholders, thereby stimulating their
efforts on the Company’s behalf and strengthening their desire to remain with the Company. 
 The following terms shall be defined as
set forth below: 
 “Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 “Award” or “Awards,” except where referring to a particular category of grant under the Plan, shall
include Incentive Stock Options, Non-Qualified Stock Options, Stock Appreciation Rights, Deferred Stock Awards, Restricted Stock Awards, Unrestricted Stock Awards, Cash-based Awards and Dividend Equivalent Rights. 
 “Award Agreement” means a written or electronic agreement setting forth the terms and provisions applicable to an Award granted under
the Plan. Each Award Agreement is subject to the terms and conditions of the Plan. 
 “Board” means the Board of Directors
of the Company. 
 “Cash-based Award” means an Award entitling the recipient to receive a cash-denominated payment.

 “Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and
interpretations. 
 “Committee” means the compensation committee of the Board or a similar committee performing the
functions of the compensation committee and which is comprised of not less than two Non-Employee Directors who are independent. 
 “Covered Employee” means an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code. 
 “Deferred Stock Award” means an Award of phantom stock units to a grantee. 

 “Dividend Equivalent Right” means an Award entitling the grantee to receive credits
based on cash dividends that would have been paid on the shares of Stock specified in the Dividend Equivalent Right (or other award to which it relates) if such shares had been issued to and held by the grantee. 
 “Effective Date” means the date on which the Plan is approved by stockholders as set forth in Section 20. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. 
 “Fair Market Value” of the Stock on any given date means the fair market value of the Stock determined in good faith by the Committee;
provided, however, that if the Stock is admitted to quotation on the NASDAQ Global Market (“NASDAQ”), the determination shall be made by reference to market quotations. If there are no market quotations for such date, the determination
shall be made by reference to the last date preceding such date for which there are market quotations; provided further, however, that if the date for which Fair Market Value is determined is the first day when trading prices for the
Stock are reported on NASDAQ, the Fair Market Value shall be the “Price to the Public” (or equivalent) set forth on the cover page for the final prospectus relating to the Company’s Initial Public Offering. 
 “Incentive Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined in
Section 422 of the Code. 
 “Initial Public Offering” means the consummation of the first fully underwritten, firm
commitment public offering pursuant to an effective registration statement under the Act covering the offer and sale by the Company of its equity securities, or such other event as a result of or following which the Stock shall be publicly held.

 “Non-Employee Director” means a member of the Board who is not also an employee of the Company or any Subsidiary.

 “Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option. 
 “Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5. 

“Performance-based Award” means any Restricted Stock Award, Deferred Stock Award or Cash-based Award granted to a Covered Employee
that is intended to qualify as “performance-based compensation” under Section 162(m) of the Code and the regulations promulgated thereunder. 
 “Performance Criteria” means the criteria that the Committee selects for purposes of establishing the Performance Goal or Performance Goals for an individual for a Performance Cycle. The Performance
Criteria (which shall be applicable to the organizational level specified by the Committee, including, but not limited to, the individual, the Company or a unit, division, group, or Subsidiary of the Company) that will be used to establish
Performance Goals are 

  

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limited to the following: earnings before interest, taxes, depreciation and amortization; net income (loss) (either before or after interest, taxes,
depreciation and/or amortization); changes in the market price of the Stock; economic value-added; funds from operations or similar measures; sales or revenue; acquisitions or strategic transactions; product development or quality; operating income
(loss); cash flow (including, but not limited to, operating cash flow and free cash flow); return on capital, assets, equity, or investment; stockholder returns; return on sales; gross or net profit levels; productivity (including, but not limited
to, employee recruiting or retention, sales or revenue per headcount, costs per headcount and professional services invoicing); expenses; margins; operating efficiency; upsells; customer satisfaction (including, but not limited to, renewal or
retention rates, multi-year subscriptions and results of customer satisfaction surveys); working capital; earnings (loss) per share of Stock; market share; market recognition (including, but not limited to, awards and analyst ratings); and number of
customers, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group. 
 “Performance Cycle” means one or more periods of time, which may be of varying and overlapping durations, as the Committee may select, over which the attainment of one or more Performance Criteria
will be measured for the purpose of determining a grantee’s right to and the payment of a Restricted Stock Award, Deferred Stock Award or Cash-based Award. 
 “Performance Goals” means, for a Performance Cycle, the specific goals established in writing by the Committee for a Performance Cycle based upon the Performance Criteria. 
 “Restricted Stock Award” means an Award entitling the recipient to acquire, at such purchase price (which may be zero) as determined by
the Committee, shares of Stock subject to such restrictions and conditions as the Committee may determine at the time of grant. 
 “Sale Event” shall mean (i) the dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity,
(iii) a merger, reorganization or consolidation in which the outstanding shares of Stock are converted into or exchanged for securities of the successor entity and the holders of the Company’s outstanding voting power immediately prior to
such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or (iv) the sale of all of the Stock of the Company to an unrelated person or entity. 
 “Sale Price” means the value as determined by the Committee of the consideration payable, or otherwise to be received by stockholders,
per share of Stock pursuant to a Sale Event. 
 “Section 409A” means Section 409A of the Code and the regulations and
other guidance promulgated thereunder. 
 “Stock” means the Common Stock, par value $0.0001 per share, of the Company,
subject to adjustments pursuant to Section 3. 
 “Stock Appreciation Right” means an Award entitling the recipient to
receive shares of Stock having a value equal to the excess of the Fair Market Value of the Stock on the date of exercise over the exercise price of the Stock Appreciation Right multiplied by the number of shares of Stock with respect to which the
Stock Appreciation Right shall have been exercised. 
  

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 “Subsidiary” means any corporation or other entity (other than the Company) in which the
Company has at least a fifty percent (50%) interest, either directly or indirectly. 
 “Ten Percent Owner” means an
employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company or any parent or subsidiary
corporation. 
 “Unrestricted Stock Award” means an Award of shares of Stock free of any restrictions. 
 SECTION 2. ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS 
 (a) Committee. The Plan shall be administered by the Committee. 
 (b) Powers of Committee. The Committee shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority: 
 (i) to select the individuals to whom Awards may from time to time be granted; 
 (ii) to determine the time or times of grant, and the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options, Stock
Appreciation Rights, Restricted Stock Awards, Deferred Stock Awards, Unrestricted Stock Awards, Cash-based Awards and Dividend Equivalent Rights, or any combination of the foregoing, granted to any one or more grantees; 
 (iii) to determine the number of shares of Stock to be covered by any Award; 
 (iv) to determine and modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the
Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of written instruments evidencing the Awards; 
 (v) to accelerate at any time the exercisability or vesting of all or any portion of any Award; 
 (vi) subject to the provisions of Section 5(a)(ii), to extend at any time the period in which Stock Options may be exercised; and

 (vii) at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for
its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including related written instruments); to make all determinations it deems advisable for the administration of the Plan; to
decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan. 
  

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 All decisions and interpretations of the Committee shall be binding on all persons, including the Company
and Plan grantees. 
 (c) Delegation of Authority to Grant Options. Subject to applicable law, the Committee, in its discretion, may
delegate to the Chief Executive Officer of the Company all or part of the Committee’s authority and duties with respect to the granting of Options, to individuals who are (i) not subject to the reporting and other provisions of
Section 16 of the Exchange Act and (ii) not Covered Employees. Any such delegation by the Committee shall include a limitation as to the amount of Options that may be granted during the period of the delegation and shall contain guidelines
as to the determination of the exercise price and the vesting criteria. The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s delegate or delegates that
were consistent with the terms of the Plan. 
 (d) Award Agreement. Awards under the Plan shall be evidenced by Award Agreements that
set forth the terms, conditions and limitations for each Award which may include, without limitation, the term of an Award, the provisions applicable in the event employment or service terminates, and the Company’s authority to unilaterally or
bilaterally amend, modify, suspend, cancel or rescind an Award. 
 (e) Indemnification. Neither the Board nor the Committee, nor any
member of either or any delegate thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Committee (and any delegate thereof)
shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent
permitted by law and/or under the Company’s articles or bylaws or any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the
Company. 
 (f) Foreign Award Recipients. Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws
in other countries in which the Company and its Subsidiaries operate or have employees or other individuals eligible for Awards, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries
shall be covered by the Plan; (ii) determine which individuals outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to individuals outside the United States to comply
with applicable foreign laws; (iv) establish subplans and modify exercise procedures and other terms and procedures, to the extent the Committee determines such actions to be necessary or advisable (and such subplans and/or modifications shall
be attached to this Plan as appendices); provided, however, that no such subplans and/or modifications shall increase the share limitations contained in Section 3(a) hereof; and (v) take any action, before or after an Award
is made, that the Committee determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals. Notwithstanding the foregoing, the Committee may not take any actions hereunder, and no
Awards shall be granted, that would violate the Exchange Act or any other applicable United States securities law, the Code, or any other applicable United States governing statute or law. 
  

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 SECTION 3. STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION 
 (a) Stock Issuable. The maximum number of shares of Stock reserved and available for issuance under the Plan shall be the sum of (i) 3,000,000
shares and (ii) such number of shares as equals that number of stock options or awards returned to (A) the Company’s Second Amended and Restated 2000 Stock Option and Incentive Plan, as amended and in effect from time to time, after
the Effective Date and (B) the Company’s First Amended and Restated 2004 Stock Option and Incentive Plan, as amended and in effect from time to time, after the Effective Date, in each case as a result of the expiration, cancellation or
termination of such stock options or awards, subject to adjustment as provided in Section 3(b); provided that not more than 3,000,000 shares shall be issued in the form of Incentive Stock Options. For purposes of this limitation, the shares of
Stock underlying any Awards that are forfeited, canceled or otherwise terminated (other than by exercise) shall be added back to the shares of Stock available for issuance under the Plan. Shares tendered or held back upon exercise of an Option or
settlement of an Award to cover the exercise price or tax withholding shall not be available for future issuance under the Plan. In addition, upon exercise of Stock Appreciation Rights, the gross number of shares exercised shall be deducted from the
total number of shares remaining available for issuance under the Plan. Subject to such overall limitations, shares of Stock may be issued up to such maximum number pursuant to any type or types of Award; provided, however, that Stock
Options or Stock Appreciation Rights with respect to no more than 900,000 of the shares of Stock may be granted to any one individual grantee during any one calendar year period. The shares available for issuance under the Plan may be authorized but
unissued shares of Stock or shares of Stock reacquired by the Company. 
 (b) Changes in Stock. Subject to Section 3(c) hereof,
if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding shares of Stock are increased or decreased or
are exchanged for a different number or kind of shares or other securities of the Company, or additional shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such shares of
Stock or other securities, or, if, as a result of any merger or consolidation, sale of all or substantially all of the assets of the Company, the outstanding shares of Stock are converted into or exchanged for securities of the Company or any
successor entity (or a parent or subsidiary thereof), the Committee shall make an equitable or proportionate adjustment in (i) the maximum number of shares reserved for issuance under the Plan, (ii) the number of Stock Options or Stock
Appreciation Rights that can be granted to any one individual grantee and the maximum number of shares that may be granted under a Performance-based Award, (iii) the number and kind of shares or other securities subject to any then outstanding
Awards under the Plan, (iv) the repurchase price, if any, per share subject to each outstanding Restricted Stock Award, (v) the number of Stock Options automatically granted to Non-Employee Directors, and (vi) the price for each share
subject to any then outstanding Stock Options and Stock Appreciation Rights under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options and Stock Appreciation Rights) as to which
such Stock Options and Stock Appreciation Rights remain exercisable. The Committee shall also make equitable or proportionate adjustments in the number of shares subject to outstanding Awards and the exercise price and the terms of outstanding
Awards to take into consideration cash dividends declared and paid other than in the ordinary course or any other extraordinary corporate event to 

  

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the extent necessary to avoid distortion in the value of Awards. The adjustment by the Committee shall be final, binding and conclusive. No fractional shares
of Stock shall be issued under the Plan resulting from any such adjustment, but the Committee in its discretion may make a cash payment in lieu of fractional shares. 
 No adjustment shall be made under this Section 3(b) in the case of an Option or Stock Appreciation Right, without the consent of the grantee, if it would constitute a modification, extension or renewal of the
Option within the meaning of Section 424(h) of the Code or a modification of the Option or Stock Appreciation Right such that the Option or Stock Appreciation Right becomes treated as “nonqualified deferred compensation” subject to
Section 409A. 
 (c) Mergers and Other Transactions. In the case of and subject to the consummation of a Sale Event, all Options
and Stock Appreciation Rights that are not exercisable immediately prior to the effective time of the Sale Event shall become fully exercisable as of the effective time of the Sale Event and all other Awards shall become fully vested and
nonforfeitable as of the effective time of the Sale Event, except as the Committee may otherwise specify with respect to particular Awards in the relevant Award documentation, and Awards with conditions and restrictions relating to the attainment of
performance goals may become vested and nonforfeitable in connection with a Sale Event in the Committee’s discretion. Upon the effective time of the Sale Event, the Plan and all outstanding Awards granted hereunder shall terminate, unless
provision is made in connection with the Sale Event in the sole discretion of the parties thereto for the assumption or continuation of Awards theretofore granted by the successor entity, or the substitution of such Awards with new Awards of the
successor entity or parent thereof, with appropriate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree (after taking into account any acceleration hereunder). In the event
of such termination, each grantee shall be permitted, within a specified period of time prior to the consummation of the Sale Event as determined by the Committee, to exercise all outstanding Options and Stock Appreciation Rights held by such
grantee, including those that will become exercisable upon the consummation of the Sale Event; provided, however, that the exercise of Options and Stock Appreciation Rights not exercisable prior to the Sale Event shall be subject to
the consummation of the Sale Event. 
 Notwithstanding anything to the contrary in this Section 3(c), in the event of a Sale Event
pursuant to which holders of the Stock of the Company will receive upon consummation thereof a cash payment for each share surrendered in the Sale Event, the Company shall have the right, but not the obligation, to make or provide for a cash payment
to the grantees holding Options and Stock Appreciation Rights, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the Sale Price times the number of shares of Stock subject to outstanding Options and
Stock Appreciation Rights (to the extent then exercisable at prices not in excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding Options and Stock Appreciation Rights. 
 (d) Substitute Awards. The Committee may grant Awards under the Plan in substitution for stock and stock based awards held by employees, directors
or other key persons of another corporation in connection with the merger or consolidation of the employing corporation with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary 

  

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of property or stock of the employing corporation. The Committee may direct that the substitute awards be granted on such terms and conditions as the
Committee considers appropriate in the circumstances. Any substitute Awards granted under the Plan shall not count against the share limitation set forth in Section 3(a). 
 SECTION 4. ELIGIBILITY 
 Grantees under the Plan will be such full or part-time officers and other
employees, Non-Employee Directors and key persons (including consultants and prospective employees) of the Company and its Subsidiaries as are selected from time to time by the Committee in its sole discretion. 
 SECTION 5. STOCK OPTIONS 
 Any Stock Option granted
under the Plan shall be in such form as the Committee may from time to time approve. 
 Stock Options granted under the Plan may be either
Incentive Stock Options or Non-Qualified Stock Options. Incentive Stock Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code. To
the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option. 
 (a) Stock
Options Granted to Employees and Key Persons. The Committee in its discretion may grant Stock Options to eligible employees and key persons of the Company or any Subsidiary. Stock Options granted pursuant to this Section 5(a) shall be
subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable. If the Committee so determines, Stock Options may be granted in
lieu of cash compensation at the optionee’s election, subject to such terms and conditions as the Committee may establish. 
 (i) Exercise Price. The exercise price per share for the Stock covered by a Stock Option granted pursuant to this Section 5(a) shall be determined by the Committee at the time of grant but shall not be less than one hundred
percent (100%) of the Fair Market Value on the date of grant. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the option price of such Incentive Stock Option shall be not less than one hundred ten percent
(110%) of the Fair Market Value on the grant date. 
 (ii) Option Term. The term of each Stock Option shall be
fixed by the Committee, but no Stock Option shall be exercisable more than ten (10) years after the date the Stock Option is granted. In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the term of such Stock Option
shall be no more than five (5) years from the date of grant. 
 (iii) Exercisability; Rights of a Stockholder.
Stock Options shall become exercisable at such time or times, whether or not in installments, as shall be determined by the Committee at or after the grant date. The Committee may at any time accelerate the exercisability of all or any portion of
any Stock Option. An optionee shall have the rights of a 

  

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stockholder only as to shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 (iv) Method of Exercise. Stock Options may be exercised in whole or in part, by giving written notice of exercise to the Company,
specifying the number of shares to be purchased. Payment of the purchase price may be made by one or more of the following methods to the extent provided in the Option Award Agreement: 
 (A) In cash, by certified or bank check or other instrument acceptable to the Committee; 
 (B) Through the delivery (or attestation to the ownership) of shares of Stock that have been purchased by the optionee on the open market
or that are beneficially owned by the optionee and are not then subject to restrictions under any Company plan. Such surrendered shares shall be valued at Fair Market Value on the exercise date. To the extent required to avoid variable accounting
treatment under FAS 123R or other applicable accounting rules, such surrendered shares shall have been owned by the optionee for at least six (6) months; or 
 (C) By the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to
promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply
with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of such payment procedure. 
 Payment instruments will be received subject to collection. The transfer to the optionee on the records of the Company or of the transfer agent of the shares of Stock to be purchased pursuant to the exercise of a Stock Option will be
contingent upon receipt from the optionee (or a purchaser acting in his or her stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such shares and the fulfillment of any other requirements
contained in the Option Award Agreement or applicable provisions of laws (including the satisfaction of any withholding taxes that the Company is obligated to withhold with respect to the optionee). In the event an optionee chooses to pay the
purchase price by previously-owned shares of Stock through the attestation method, the number of shares of Stock transferred to the optionee upon the exercise of the Stock Option shall be net of the number of shares attested to. In the event that
the Company establishes, for itself or using the services of a third party, an automated system for the exercise of Stock Options, such as a system using an internet website or interactive voice response, then the paperless exercise of Stock Options
may be permitted through the use of such an automated system. 
 (v) Annual Limit on Incentive Stock Options. To the
extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the shares of Stock with respect to which Incentive Stock Options granted
under this Plan and any other plan of the Company or its parent and subsidiary corporations become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000. To the extent that any Stock Option exceeds this
limit, it shall constitute a Non-Qualified Stock Option. 
  

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 (b) Stock Options Granted to Non-Employee Directors. 
 (i) Grant of Options. 
 (A) The Committee, in its discretion, may grant Non-Qualified Stock Options to Non-Employee Directors upon their election or re-election to the Board. Any such grant may vary among individual Non-Employee Directors.

 (B) The exercise price per share for the Stock covered by a Stock Option granted under this Section 5(b) shall be
equal to the Fair Market Value of the Stock on the date the Stock Option is granted. 
 (ii) Exercise; Termination.

 (A) Unless otherwise determined by the Committee, an Option granted under Section 5(b) shall be exercisable in three
equal installments commencing on the grant date and thereafter on the first two anniversaries of the grant date. An Option issued under this Section 5(b) shall not be exercisable after the expiration of ten (10) years from the date of
grant. 
 (B) Options granted under this Section 5(b) may be exercised only by written notice to the Company specifying
the number of shares to be purchased. Payment of the full purchase price of the shares to be purchased may be made by one or more of the methods specified in Section 5(a)(iv). An optionee shall have the rights of a stockholder only as to shares
acquired upon the exercise of a Stock Option and not as to unexercised Stock Options. 
 SECTION 6. STOCK APPRECIATION RIGHTS 
 (a) Exercise Price of Stock Appreciation Rights. The exercise price of a Stock Appreciation Right shall not be less than one hundred percent
(100%) of the Fair Market Value of the Stock on the date of grant (or more than the Stock Option exercise price per share, if the Stock Appreciation Right was granted in tandem with a Stock Option). 
 (b) Grant and Exercise of Stock Appreciation Rights. Stock Appreciation Rights may be granted by the Committee in tandem with, or independently
of, any Stock Option granted pursuant to Section 5 of the Plan. In the case of a Stock Appreciation Right granted in tandem with a Non-Qualified Stock Option, such Stock Appreciation Right may be granted either at or after the time of the grant
of such Option. In the case of a Stock Appreciation Right granted in tandem with an Incentive Stock Option, such Stock Appreciation Right may be granted only at the time of the grant of the Option. 
 A Stock Appreciation Right or applicable portion thereof granted in tandem with a Stock Option shall terminate and no longer be exercisable upon the
termination or exercise of the related Option. 
  

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 (c) Terms and Conditions of Stock Appreciation Rights. Stock Appreciation Rights shall be subject
to such terms and conditions as shall be determined from time to time by the Committee, subject to the following: 
 (i) Stock
Appreciation Rights granted in tandem with Options shall be exercisable at such time or times and to the extent that the related Stock Options shall be exercisable. 
 (ii) Upon exercise of a Stock Appreciation Right, the applicable portion of any related Option shall be surrendered. 
 SECTION 7. RESTRICTED STOCK AWARDS 
 (a) Nature of
Restricted Stock Awards. The Committee shall determine the restrictions and conditions applicable to each Restricted Stock Award at the time of grant. Conditions may be based on continuing employment (or other service relationship) and/or
achievement of pre-established performance goals and objectives. The grant of a Restricted Stock Award is contingent on the grantee executing the Restricted Stock Award Agreement. The terms and conditions of each such Award Agreement shall be
determined by the Committee, and such terms and conditions may differ among individual Awards and grantees. 
 (b) Rights as a
Stockholder. Upon execution of the Restricted Stock Award Agreement and payment of any applicable purchase price, a grantee shall have the rights of a stockholder with respect to the voting of the Restricted Stock, subject to such conditions
contained in the Restricted Stock Award Agreement. Unless the Committee shall otherwise determine, (i) uncertificated Restricted Stock shall be accompanied by a notation on the records of the Company or the transfer agent to the effect that
they are subject to forfeiture until such Restricted Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided
in Section 7(d) below, and the grantee shall be required, as a condition of the grant, to deliver to the Company such instruments of transfer as the Committee may prescribe. 
 (c) Restrictions. Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically
provided herein or in the Restricted Stock Award Agreement. Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to Section 17 below, in writing after the Award Agreement is issued, if any, if a
grantee’s employment (or other service relationship) with the Company and its Subsidiaries terminates for any reason, any Restricted Stock that has not vested at the time of termination shall automatically and without any requirement of notice
to such grantee from or other action by or on behalf of, the Company be deemed to have been reacquired by the Company at its original purchase price from such grantee or such grantee’s legal representative simultaneously with such termination
of employment (or other service relationship), and thereafter shall cease to represent any ownership of the Company by the grantee or rights of the grantee as a stockholder. Following such deemed reacquisition of unvested Restricted Stock that are
represented by physical certificates, a grantee shall surrender such certificates to the Company upon request without consideration. 
  

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 (d) Vesting of Restricted Stock. The Committee at the time of grant shall specify the date or
dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the non-transferability of the Restricted Stock and the Company’s right of repurchase or forfeiture shall lapse. Notwithstanding the
foregoing, in the event that any such Restricted Stock shall have a performance-based goal, the restriction period with respect to such shares shall not be less than one (1) year, and in the event any such Restricted Stock shall have a
time-based restriction, the total restriction period with respect to such shares shall not be less than three (3) years; provided, however, that Restricted Stock with a time-based restriction may become vested incrementally over
such three-year period. Subsequent to such date or dates and/or the attainment of such pre-established performance goals, objectives and other conditions, the shares on which all restrictions have lapsed shall no longer be Restricted Stock and shall
be deemed “vested.” Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to Section 17 below, in writing after the Award Agreement is issued, a grantee’s rights in any shares of
Restricted Stock that have not vested shall automatically terminate upon the grantee’s termination of employment (or other service relationship) with the Company and its Subsidiaries and such shares shall be subject to the provisions of
Section 7(c) above. 
 SECTION 8. DEFERRED STOCK AWARDS 
 (a) Nature of Deferred Stock Awards. The Committee shall determine the restrictions and conditions applicable to each Deferred Stock Award at the time of grant. Conditions may be based on continuing employment
(or other service relationship) and/or achievement of pre-established performance goals and objectives. The grant of a Deferred Stock Award is contingent on the grantee executing the Deferred Stock Award Agreement. The terms and conditions of each
such Award Agreement shall be determined by the Committee, and such terms and conditions may differ among individual Awards and grantees. Notwithstanding the foregoing, in the event that any such Deferred Stock Award shall have a performance-based
goal, the restriction period with respect to such Award shall not be less than one (1) year, and in the event any such Deferred Stock Award shall have a time-based restriction, the total restriction period with respect to such Award shall not
be less than three (3) years; provided, however, that any Deferred Stock Award with a time-based restriction may become vested incrementally over such three-year period. At the end of the deferral period, the Deferred Stock Award,
to the extent vested, shall be paid to the grantee in the form of shares of Stock. 
 (b) Election to Receive Deferred Stock Awards in
Lieu of Compensation. The Committee may, in its sole discretion, permit a grantee to elect to receive a portion of future cash compensation otherwise due to such grantee in the form of a Deferred Stock Award. Any such election shall be made in
writing and shall be delivered to the Company no later than the date specified by the Committee and in accordance with Section 409A and such other rules and procedures established by the Committee. The Committee shall have the sole right to
determine whether and under what circumstances to permit such elections and to impose such limitations and other terms and conditions thereon as the Committee deems appropriate. Any such deferred compensation shall be converted to a fixed number of
phantom stock units based on the Fair Market Value of Stock on the date the compensation would otherwise have been paid to the grantee but for the deferral. 
  

 12 

 (c) Rights as a Stockholder. During the deferral period, a grantee shall have no rights as a
stockholder; provided, however, that the grantee may be credited with Dividend Equivalent Rights with respect to the phantom stock units underlying his or her Deferred Stock Award, subject to such terms and conditions as the Committee
may determine. 
 (d) Termination. Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to
Section 17 below, in writing after the Award Agreement is issued, a grantee’s right in all Deferred Stock Awards that have not vested shall automatically terminate upon the grantee’s termination of employment (or cessation of service
relationship) with the Company and its Subsidiaries for any reason. 
 SECTION 9. UNRESTRICTED STOCK AWARDS 
 Grant or Sale of Unrestricted Stock. The Committee may, in its sole discretion, grant (or sell at par value or such higher purchase price
determined by the Committee) an Unrestricted Stock Award under the Plan. Unrestricted Stock Awards may be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such grantee. 
 SECTION 10. CASH-BASED AWARDS 
 Grant of Cash-based
Awards. The Committee may, in its sole discretion, grant Cash-based Awards to any grantee in such number or amount and upon such terms, and subject to such conditions, as the Committee shall determine at the time of grant. The Committee shall
determine the maximum duration of the Cash-based Award, the amount of cash to which the Cash-based Award pertains, the conditions upon which the Cash-based Award shall become vested or payable, and such other provisions as the Committee shall
determine. Each Cash-based Award shall specify a cash-denominated payment amount, formula or payment ranges as determined by the Committee. Payment, if any, with respect to a Cash-based Award shall be made in accordance with the terms of the Award
and may be made in cash or in shares of Stock, as the Committee determines. 
 SECTION 11. PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES 

(a) Performance-based Awards. Any employee or other key person providing services to the Company and who is selected by the Committee may be
granted one or more Performance-based Awards in the form of a Restricted Stock Award, Deferred Stock Award or Cash-based Award payable upon the attainment of Performance Goals that are established by the Committee and relate to one or more of the
Performance Criteria, in each case on a specified date or dates or over any period or periods determined by the Committee. The Committee shall define in an objective fashion the manner of calculating the Performance Criteria it selects to use for
any Performance Period. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or an individual.
The Committee, in its discretion, may adjust or modify the calculation of Performance Goals for such Performance Period in order to prevent the dilution or enlargement of the rights of an individual (i) in the event of, or in anticipation of,
any unusual or extraordinary corporate item, transaction, event or development, or (ii) in recognition of, or in anticipation of, any other unusual or nonrecurring 

  

 13 

 
events affecting the Company, or the financial statements of the Company, or (iii) in response to, or in anticipation of, changes in applicable laws,
regulations, accounting principles, or business conditions provided however, that the Committee may not exercise such discretion in a manner that would increase the Performance-based Award granted to a Covered Employee. Each Performance-based Award
shall comply with the provisions set forth below. 
 (b) Grant of Performance-based Awards. With respect to each Performance-based
Award granted to a Covered Employee, the Committee shall select, within the first ninety (90) days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the Performance Criteria for
such grant, and the Performance Goals with respect to each Performance Criterion (including a threshold level of performance below which no amount will become payable with respect to such Award). Each Performance-based Award will specify the amount
payable, or the formula for determining the amount payable, upon achievement of the various applicable performance targets. The Performance Criteria established by the Committee may be (but need not be) different for each Performance Cycle and
different Performance Goals may be applicable to Performance-based Awards to different Covered Employees. 
 (c) Payment of
Performance-based Awards. Following the completion of a Performance Cycle, the Committee shall meet to review and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to
also calculate and certify in writing the amount of the Performance-based Awards earned for the Performance Cycle. The Committee shall then determine the actual size of each Covered Employee’s Performance-based Award, and, in doing so, may
reduce or eliminate the amount of the Performance-based Award for a Covered Employee if, in its sole judgment, such reduction or elimination is appropriate. 
 (d) Maximum Award Payable. The maximum Performance-based Award payable to any one Covered Employee under the Plan for a Performance Cycle is 1,500,000 Shares (subject to adjustment as provided in
Section 3(b) hereof) or $1,000,000 in the case of a Performance-based Award that is a Cash-based Award. 
 SECTION 12. DIVIDEND EQUIVALENT RIGHTS

 (a) Dividend Equivalent Rights. A Dividend Equivalent Right may be granted hereunder to any grantee as a component of another Award
or as a freestanding award. The terms and conditions of Dividend Equivalent Rights shall be specified in the Award Agreement. Dividend equivalents credited to the holder of a Dividend Equivalent Right may be paid currently or may be deemed to be
reinvested in additional shares of Stock, which may thereafter accrue additional equivalents. Any such reinvestment shall be at Fair Market Value on the date of reinvestment or such other price as may then apply under a dividend reinvestment plan
sponsored by the Company, if any. Dividend Equivalent Rights may be settled in cash or shares of Stock or a combination thereof, in a single installment or installments. A Dividend Equivalent Right granted as a component of another Award may provide
that such Dividend Equivalent Right shall be settled upon exercise, settlement, or payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right shall expire or be forfeited or annulled under the same conditions
as such other Award. A Dividend Equivalent Right granted as a component of another Award may also contain terms and conditions different from such other Award. 
  

 14 

 (b) Interest Equivalents. Any Award under this Plan that is settled in whole or in part in cash on
a deferred basis may provide in the grant for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant.

 (c) Termination. Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to Section 17
below, in writing after the Award Agreement is issued, a grantee’s rights in all Dividend Equivalent Rights or interest equivalents granted as a component of another Award that has not vested shall automatically terminate upon the
grantee’s termination of employment (or cessation of service relationship) with the Company and its Subsidiaries for any reason. 
 SECTION 13.
TRANSFERABILITY OF AWARDS 
 (a) Transferability. Except as provided in Section 13(b) below, during a grantee’s
lifetime, his or her Awards shall be exercisable only by the grantee, or by the grantee’s legal representative or guardian in the event of the grantee’s incapacity. No Awards shall be sold, assigned, transferred or otherwise encumbered or
disposed of by a grantee other than by will or by the laws of descent and distribution. No Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind, and any purported transfer in violation hereof shall be null and
void. 
 (b) Committee Action. Notwithstanding Section 13(a), the Committee, in its discretion, may provide either in the Award
Agreement regarding a given Award or by subsequent written approval that the grantee (who is an employee or director) may transfer his or her Awards (other than any Incentive Stock Options) to his or her immediate family members, to trusts for the
benefit of such family members, or to partnerships in which such family members are the only partners, provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable
Award. 
 (c) Family Member. For purposes of Section 13(b), “family member” shall mean a grantee’s child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing
the grantee’s household (other than a tenant of the grantee), a trust in which these persons (or the grantee) have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the grantee) control the
management of assets, and any other entity in which these persons (or the grantee) own more than fifty percent (50%) of the voting interests. 
 (d) Designation of Beneficiary. Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries to exercise any Award or receive any payment under any Award payable on or after the
grantee’s death. Any such designation shall be on a form provided for that purpose by the Committee and shall not be effective until received by 

  

 15 

 
the Committee. If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary
shall be the grantee’s estate. 
 SECTION 14. TAX WITHHOLDING 
 (a) Payment by Grantee. Each grantee shall, no later than the date as of which the value of an Award or of any Stock or other amounts received thereunder first becomes includable in the gross income of the
grantee for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to such
income. The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee. The Company’s obligation to deliver evidence of book entry (or
stock certificates) to any grantee is subject to and conditioned on tax withholding obligations being satisfied by the grantee. 
 (b)
Payment in Stock. Subject to approval by the Committee, a grantee may elect to have the Company’s minimum required tax withholding obligation satisfied, in whole or in part, by (i) authorizing the Company to withhold from shares of
Stock to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due, or (ii) transferring to the Company shares of Stock
owned by the grantee with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due. 
 SECTION 15. ADDITIONAL CONDITIONS APPLICABLE TO NONQUALIFIED DEFERRED COMPENSATION UNDER SECTION 409A. 
 In the event
any Stock Option or Stock Appreciation Right under the Plan is materially modified and deemed a new grant at a time when the Fair Market Value exceeds the exercise price, or any other Award is otherwise determined to constitute “nonqualified
deferred compensation” within the meaning of Section 409A (a “409A Award”), the following additional conditions shall apply and shall supersede any contrary provisions of this Plan or the terms of any agreement relating to such
409A Award. 
 (a) Exercise and Distribution. Except as provided in Section 15(b) hereof, no 409A Award shall be exercisable or
distributable earlier than upon one of the following: 
 (i) Specified Time. A specified time or a fixed schedule set
forth in the written instrument evidencing the 409A Award. 
 (ii) Separation from Service. Separation from service
(within the meaning of Section 409A) by the 409A Award grantee; provided, however, that if the 409A Award grantee is a “key employee” (as defined in Section 416(i) of the Code without regard to paragraph (5) thereof) and any
of the Company’s Stock is publicly traded on an established securities market or otherwise, exercise or distribution under this Section 15(a)(ii) may not be made before the date that is six (6) months after the date of separation from
service. 
 (iii) Death. The date of death of the 409A Award grantee. 
  

 16 

 (iv) Disability. The date the 409A Award grantee becomes disabled (within the
meaning of Section 15(c)(ii) hereof). 
 (v) Unforeseeable Emergency. The occurrence of an unforeseeable emergency
(within the meaning of Section 15(c)(iii) hereof), but only if the net value (after payment of the exercise price) of the number of shares of Stock that become issuable does not exceed the amounts necessary to satisfy such emergency plus
amounts necessary to pay taxes reasonably anticipated as a result of the exercise, after taking into account the extent to which the emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of
the grantee’s other assets (to the extent such liquidation would not itself cause severe financial hardship). 
 (vi)
Change in Control Event. The occurrence of a Change in Control Event (within the meaning of Section 15(c)(i) hereof), including the Company’s discretionary exercise of the right to accelerate vesting of such grant upon a Change in
Control Event or to terminate the Plan or any 409A Award granted hereunder within twelve (12) months of the Change in Control Event. 
 (b) No Acceleration. A 409A Award may not be accelerated or exercised prior to the time specified in Section 15(a) hereof, except in the case of one of the following events: 
 (i) Domestic Relations Order. The 409A Award may permit the acceleration of the exercise or distribution time or schedule to an
individual other than the grantee as may be necessary to comply with the terms of a domestic relations order (as defined in Section 414(p)(1)(B) of the Code). 
 (ii) Conflicts of Interest. The 409A Award may permit the acceleration of the exercise or distribution time or schedule as may be
necessary to comply with the terms of a certificate of divestiture (as defined in Section 1043(b)(2) of the Code). 
 (iii) Change in Control Event. The Committee may exercise the discretionary right to accelerate the vesting of such 409A Award upon a Change in Control Event or to terminate the Plan or any 409A Award granted thereunder within twelve
(12) months of the Change in Control Event and cancel the 409A Award for compensation. 
 (c) Definitions. Solely for purposes of
this Section 15 and not for other purposes of the Plan, the following terms shall be defined as set forth below: 
 (i)
“Change in Control Event” means the occurrence of a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company (as defined in
Section 1.409A-3(g) of the proposed regulations promulgated under Section 409A by the Department of the Treasury on September 29, 2005 or any subsequent guidance). 
 (ii) “Disabled” means a grantee who (i) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) is, by reason of any medically determinable physical or
mental 

  

 17 

 
impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving
income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company or its Subsidiaries. 
 (iii) “Unforeseeable Emergency” means a severe financial hardship to the grantee resulting from an illness or accident of the
grantee, the grantee’s spouse, or a dependent (as defined in Section 152(a) of the Code) of the grantee, loss of the grantee’s property due to casualty, or similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the grantee. 
 SECTION 16. TRANSFER, LEAVE OF ABSENCE, ETC. 
 For purposes of the Plan, the following events shall not be deemed a termination of employment: 
 (a) a transfer to the employment of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another; or 

(b) an approved leave of absence for military service or sickness, or for any other purpose approved by the Company, if the employee’s right to
re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing. 
 SECTION 17. AMENDMENTS AND TERMINATION 
 The Board
may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights
under any outstanding Award without the holder’s consent. Except as provided in Section 3(b) or 3(c), in no event may the Committee exercise its discretion to reduce the exercise price of outstanding Stock Options or Stock Appreciation
Rights or effect repricing through cancellation and re-grants. Any material Plan amendments (other than amendments that curtail the scope of the Plan), including any Plan amendments that (i) increase the number of shares reserved for issuance
under the Plan, (ii) expand the type of Awards available under, materially expand the eligibility to participate in, or materially extend the term of, the Plan, or (iii) materially change the method of determining Fair Market Value, shall
be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders. In addition, to the extent determined by the Committee to be required by the Code to ensure that Incentive Stock Options granted under the Plan are
qualified under Section 422 of the Code or to ensure that compensation earned under Awards qualifies as performance-based compensation under Section 162(m) of the Code, Plan amendments shall be subject to approval by the Company
stockholders entitled to vote at a meeting of stockholders. Nothing in this Section 17 shall limit the Committee’s authority to take any action permitted pursuant to Section 3(c). 
  

 18 

 SECTION 18. STATUS OF PLAN 
 With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have no rights greater than those of a general
creditor of the Company unless the Committee shall otherwise expressly determine in connection with any Award or Awards. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the Company’s
obligations to deliver Stock or make payments with respect to Awards hereunder, provided that the existence of such trusts or other arrangements is consistent with the foregoing sentence. 
 SECTION 19. GENERAL PROVISIONS 
 (a) No
Distribution. The Committee may require each person acquiring Stock pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the shares without a view to distribution thereof. 
 (b) Delivery of Stock Certificates. Stock certificates to grantees under this Plan shall be deemed delivered for all purposes when the Company or
a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company. Uncertificated Stock shall be deemed delivered for all
purposes when the Company or a Stock transfer agent of the Company shall have given to the grantee by electronic mail (with proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known address on file with
the Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records). Notwithstanding anything herein to the contrary, the Company shall not be required to issue or deliver any
certificates evidencing shares of Stock pursuant to the exercise of any Award, unless and until the Board has determined, with advice of counsel (to the extent the Board deems such advice necessary or advisable), that the issuance and delivery of
such certificates is in compliance with all applicable laws, regulations of governmental authorities and, if applicable, the requirements of any exchange on which the shares of Stock are listed, quoted or traded. All Stock certificates delivered
pursuant to the Plan shall be subject to any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal, state or foreign jurisdiction, securities or other laws, rules and quotation system on
which the Stock is listed, quoted or traded. The Committee may place legends on any Stock certificate to reference restrictions applicable to the Stock. In addition to the terms and conditions provided herein, the Board may require that an
individual make such reasonable covenants, agreements, and representations as the Board, in its discretion, deems necessary or advisable in order to comply with any such laws, regulations, or requirements. The Committee shall have the right to
require any individual to comply with any timing or other restrictions with respect to the settlement or exercise of any Award, including a window-period limitation, as may be imposed in the discretion of the Committee. 
 (c) Stockholder Rights. Until Stock is deemed delivered in accordance with Section 19(b), no right to vote or receive dividends or any other
rights of a stockholder will exist with respect to shares of Stock to be issued in connection with an Award, notwithstanding the exercise of a Stock Option or any other action by the grantee with respect to an Award. 
  

 19 

 (d) Other Compensation Arrangements; No Employment Rights. Nothing contained in this Plan shall
prevent the Board from adopting other or additional compensation arrangements, including trusts, and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of this Plan and the grant of Awards do not
confer upon any employee any right to continued employment with the Company or any Subsidiary. 
 (e) Trading Policy Restrictions.
Option exercises and other Awards under the Plan shall be subject to such Company’s insider trading policy and procedures, as in effect from time to time. 
 (f) Forfeiture of Awards under Sarbanes-Oxley Act. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement under the securities laws, then any grantee who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any Award received
by such individual under the Plan during the 12-month period following the first public issuance or filing with the United States Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting
requirement. 
 SECTION 20. EFFECTIVE DATE OF PLAN 
 This Plan shall become effective upon approval by the holders of a majority of the votes cast at a meeting of stockholders at which a quorum is present. No grants of Stock Options and other Awards may be made
hereunder after the tenth (10th) anniversary of the Effective Date and no grants of Incentive Stock Options may
be made hereunder after the tenth (10th) anniversary of the date the Plan is approved by the Board. 

SECTION 21. GOVERNING LAW 
 This Plan and all
Awards and actions taken thereunder shall be governed by, and construed in accordance with, the laws of the Commonwealth of Massachusetts, applied without regard to conflict of law principles. 
 DATE APPROVED BY BOARD OF DIRECTORS: January 12, 2007 
 DATE APPROVED
BY STOCKHOLDERS: January 17, 2007 
  

 20Form of Emplyoment Agreement with G. Kent Plunkett

 Exhibit 10.13 
 EMPLOYMENT AGREEMENT 
 This Employment Agreement
(“Agreement”) is made as of the 1st day of January , 2007 (“Effective Date”), between
Salary.com, Inc., a Delaware corporation (the “Company”), and Gregory Kent Plunkett (the “Executive”). 
 WHEREAS, the
Company desires to employ the Executive and the Executive desires to be employed by the Company on the terms contained herein; 
 WHEREAS,
the Executive is and has been employed by the Employer and is currently the Company’s Chairman of the Board, President and Chief Executive Officer; 
 WHEREAS, Executive and the Employer entered into an Executive Employment & Compensation Agreement effective as of November 25, 2002 and a First Amendment to Executive Employment & Compensation
Agreement dated December 17, 2004 (collectively, the “Prior Agreement”); and 
 WHEREAS, the Employer and the Executive desire
to amend and restate the Prior Agreement in its entirety as of the Effective Date by entering into this Agreement that will fully supersede the Prior Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows: 
  

 1. Employment. Subject to the termination provisions contained herein, the term of this Agreement
shall extend from the Effective Date until the third anniversary of the Effective Date; provided, however, that the term of this Agreement shall automatically be extended for one additional year on the third anniversary of the Effective Date
and each anniversary thereafter unless, not less than 90 days prior to each such date, either party shall have given notice to the other that it does not wish to extend this Agreement (the “Term”). 
 2. Position and Duties. During the Term, the Executive shall serve as Chief Executive Officer and President of the Company and, to the extent
allowable by law, each of its subsidiaries unless otherwise consented to in writing by the Executive. The Executive shall have supervision and control over and responsibility for the general management of the day-to-day business and affairs and
operations of the Company and each of the subsidiaries of which he serves as Chief Executive Officer and President. Executive shall also have such other powers and duties as may from time to time be prescribed by the Board of Directors of the
Company (the “Board”) or a committee of independent directors of the Board, provided that such duties are consistent with the Executive’s positions or other positions that he may hold from time to time. The Executive shall perform
services for the Company on a full-time basis and devote substantially all of his working time and efforts to the business and affairs of the Company. During the Term, the Company shall nominate the Executive to serve as a member of the Board and,
if he is so elected, he shall serve as Chairman of the Board. Notwithstanding the foregoing, the Executive may serve on other boards of directors, with the approval of the Board, or engage in religious, charitable or other community activities as
long as such services and activities are disclosed to the Board and do not materially interfere with the Executive’s performance of his duties to the Company as provided in this Agreement. 
  

 2 

 3. Compensation and Related Matters. During the Term, Executive shall be entitled to the
following: 
 (a) Base Salary. The Executive’s annual base salary shall be Two Hundred Fifty Thousand Dollars ($250,000), subject
to the redetermination (but not reduction) by the Board or the Compensation Committee of the Board (the “Compensation Committee”). The base salary in effect at any given time is referred to herein as “Base Salary.” The Base
Salary shall be payable in periodic installments in accordance with the Company’s usual practice for senior executives. 
 (b)
Bonus. The Executive shall be eligible to receive cash incentive compensation in the form of an annual bonus based on performance as determined in the sole discretion of the Compensation Committee after consultation with the Executive (the
“Bonus Payment”). The Executive’s target annual Bonus Payment shall be 100% of his Base Salary (the “Target Bonus”). Except as otherwise provided in this Agreement, any Bonus Payment shall be paid at the time annual bonus
payments are paid to other senior executive officers which, except in unusual circumstances, shall be within 90 days of the end of each of the Company’s fiscal years during the Term. 
 (c) Expenses. The Executive shall be entitled to receive prompt reimbursement by the Company for all reasonable expenses incurred by him in
performing services hereunder during the Term, in accordance with the policies and procedures then in effect and established by the Company for its senior executive officers. In addition, the Executive shall be entitled to receive prompt
reimbursement by the Company for all reasonable legal fees and expenses incurred by him (i) in connection with the preparation and negotiation of this 

  

 3 

 
Agreement, and (ii) from time to time during the Term, as Executive reasonably deems necessary or prudent in connection with or arising out of his
services as an executive and/or director of the Company. 
 (d) Vacation. The Executive shall be entitled to twenty-five
(25) paid vacation days in each calendar year, which shall be accrued ratably during the calendar year. The Executive shall also be entitled to all paid holidays given by the Company to its executives. The Executive may not, without the prior
consent of the Board, carry forward more than five (5) days of unused vacation entitlement to a subsequent calendar year. Any vacation entitlement that has not been used by the end of the calendar year or carried forward to the next calendar
year shall be forfeited without pay. Upon termination of his employment for whatever reason he shall, if appropriate, either be entitled to salary in lieu of any accrued but unused vacation or be required to repay to the Company any salary received
in respect of vacation taken in excess of his proportionate vacation entitlement. 
 (e) Other Benefits. During the Term, the
Executive (and in the case of medical insurance, his eligible dependents) shall be entitled to continue to participate in or receive benefits under all of the Company’s Employee Benefit Plans in effect on the date hereof, or under other plans
or arrangements that provide the Executive with benefits, on a benefit by benefit basis, at least substantially equivalent to those provided under such Employee Benefit Plans. As used herein, the term “Employee Benefit Plans” includes,
without limitation, each pension and retirement plan; supplemental pension, retirement and deferred compensation plan; savings and profit-sharing plan; stock ownership plan; stock purchase plan; stock option plan; life insurance plan; medical
insurance plan; disability plan; and health and accident plan or arrangement established and maintained by the Company on the date hereof for employees of the 

  

 4 

 
same status within the hierarchy of the Company. During the Term, the Executive shall be entitled to participate in or receive benefits under any employee
benefit plan or arrangement which may, in the future, be made available by the Company to its executives and key management employees, subject to and on a basis consistent with the terms, conditions and overall administration of such plan or
arrangement. Any payments or benefits payable to the Executive under a plan or arrangement referred to in this Section 3(e) in respect of any calendar year during which the Executive is employed by the Company for less than the whole of such
year shall, unless otherwise provided in the applicable plan or arrangement, be prorated in accordance with the number of days in such calendar year during which he is so employed. Should any such payments or benefits accrue on a fiscal (rather than
calendar) year, then the proration in the preceding sentence shall be on the basis of a fiscal year rather than calendar year. 
 (f)
Taxation of Payments and Benefits. The Employer shall undertake to make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is
required under applicable law to make such deductions, withholdings and tax reports. Payments under this Agreement shall be in amounts net of any such deductions or withholdings. Except as expressly set forth in this Agreement, nothing in this
Agreement shall be construed to require the Employer to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit. 
 (g) Transfer of and Restricted Use of Domain Names: The Company shall transfer to Executive by way of separate instrument, the Domain Name
Transfer and Assignment Agreement dated _____ its rights to domain names “Marketrate.com” and “Marketrates.com” (collectively “Domain Names”) subject to the covenants, representations and warranties 

  

 5 

 
contained in the Domain Name Transfer Agreement, provided however, Executive shall not use the Domain Names or permit the Domain Names to be used:
(i) in a manner that violates Executive’s obligations under this Agreement or, (ii) for a period twenty (20) years after the Effective Date of the Domain Name Transfer Agreement, in connection with a Competing Business (as
hereinafter defined). 
 4. Termination. The Executive’s employment hereunder may be terminated without any breach of this
Agreement under the following circumstances: 
 (a) Death. The Executive’s employment hereunder shall terminate upon his death.

 (b) Disability. If the Executive shall be physically or mentally disabled so as to be unable to perform the essential functions of
the Executive’s then existing position or positions under this Agreement with or without reasonable accommodation, the Board may remove the Executive from any responsibilities and/or reassign the Executive to another position with the Company
for the remainder of the Term or during the period of such disability. Notwithstanding any such removal or reassignment, the Executive shall continue to receive the Executive’s full Base Salary (less any disability pay or sick pay benefits paid
to the Executive under the Company’s plans and policies) and benefits (except to the extent that the Executive is ineligible for one or more such benefits under applicable plan terms) for a period of time equal to the lesser of (i) six
months; or (ii) the remainder of the Term, and the Executive’s employment may be terminated by the Company or the Executive at any time thereafter. If any question shall arise as to whether during any period the Executive is disabled so as
to be unable to perform the essential functions of the Executive’s then existing position or positions under this Agreement 

  

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with or without reasonable accommodation, the Executive may, and at the request of the Company shall, submit to the Company a certification in reasonable
detail by a physician selected by the Company to whom the Executive or the Executive’s guardian has no reasonable objection as to whether the Executive is so disabled or how long such disability is expected to continue, and such certification
shall for the purposes of this Agreement be conclusive of the issue. The Executive shall cooperate with any reasonable request of the physician in connection with such certification. If such question shall arise and the Executive shall fail to
submit such certification, the Company’s determination of such issue shall be binding on the Executive. Nothing in this Section 4(b) shall be construed to waive the Executive’s rights, if any, under existing law including, without
limitation, the Family and Medical Leave Act of 1993, 29 U.S.C. §2601 et seq. and the Americans with Disabilities Act, 42 U.S.C. §12101 et seq. 
 (c) Termination by Company for Cause. At any time during the Term, the Company may terminate the Executive’s employment hereunder for Cause
in accordance with the terms of this subsection (c). For purposes of this Agreement, “Cause” shall mean: (A) conduct by the Executive constituting gross negligence or an act of willful misconduct in connection with the performance of
his duties, including, without limitation, misappropriation of funds or property of the Company or any of its subsidiaries or affiliates other than the occasional, customary and de minimis use of Company property for personal purposes; (B) the
Executive’s commission of any felony or a misdemeanor involving deceit, dishonesty or fraud, or any conduct by the Executive that would reasonably be expected to result in material injury to the Company or any of its subsidiaries if he were
retained in his positions; (C) willful and deliberate refusal by the Executive to perform his duties hereunder which has continued following written notice of such refusal from the Board; (D) a breach by the Executive of any of his
obligations 

  

 7 

 
under this Agreement which has continued following written notice of such breach from the Board; (E) a violation by the Executive of the Company’s
written employment policies which has continued following written notice of such violation from the Board, or (F) willful failure to cooperate in any reasonable respect with a bona fide internal investigation or an investigation by regulatory
or law enforcement authorities, after being instructed by the Board to so cooperate, or (G) the willful destruction or willful failure to preserve documents or other materials known by the Executive to be relevant to such investigation or the
willful inducement of others to fail to cooperate in any reasonable respect or to preserve such documents or other materials. Anything to the contrary notwithstanding, (1) the Executive shall not be terminated for “Cause” within the
meaning of clauses (C), (D), (E) or (F) of this subsection (c) unless written notice stating the basis for termination is provided to the Executive and he is given 15 days to cure the basis for such claim and, if he fails to cure such
basis, the Executive has an opportunity to be heard in person before the Board at a time and venue selected by the Board and after such opportunity to be heard there is a vote of not less than a majority of the Board, at a meeting of the Board
called and held for such purpose, to terminate Executive for “Cause”, and (2) the Executive shall not be terminated for “Cause” within the meaning of clauses (A), (B) or (G) of this subsection (c) unless the
Executive has an opportunity to be heard before the Board at a time and venue selected by the Board and after such opportunity to be heard there is a vote of not less than a majority of the Board, at a meeting of the Board called and held for such
purpose, to terminate Executive for “Cause”. No action or inaction by the Executive shall be deemed to be “willful” under this Section 4(c) if such action or inaction was undertaken by the Executive in the good faith and
reasonable belief that such act or omission was in, or not opposed to, the best interests of the Company. 
  

 8 

 (d) Termination Without Cause. At any time during the Term, the Company may terminate the
Executive’s employment hereunder without Cause if such termination is approved by a majority of the Board at a meeting of the Board called and held for such purpose. 
 (e) Termination by the Executive for Good Reason. At any time during the Term, the Executive may terminate his employment hereunder for Good Reason. For purposes of this Agreement, “Good Reason” shall
mean that the Executive has complied with the “Good Reason Process” (hereinafter defined) following the occurrence of any of the following events: (A) a substantial diminution or other substantial adverse change in, or substantial
interference with, the nature or scope of the Executive’s responsibilities, authorities, powers, functions or duties that is not consented to in writing by the Executive; (B) any removal, during the Term, from the Executive of any of his
titles of Chief Executive Officer and President that is not consented to in writing by the Executive; (C) a material breach by the Company of any of its material obligations under this Agreement; (D) the involuntary relocation of the
Company’s offices at which the Executive is principally employed or the involuntary relocation of the offices of the Executive’s primary workgroup to a location more than 50 miles from such offices, or the requirement by the Company that
the Executive be based anywhere other than the Company’s offices at such location, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business travel obligations; (E) a
reduction in the Executive’s Base Salary or Target Bonus opportunities, (F) the failure of the Company to obtain the assumption in writing of its obligations hereunder by any successor to all or substantially all of the business or assets
of the Company; or (G) the failure to nominate the Executive for election to the Board, and if elected to the Board, the failure of the Executive to be appointed Chairman of the Board. “Good Reason Process” shall mean that
(i) the Executive reasonably 

  

 9 

 
determines in good faith that a “Good Reason” event has occurred; (ii) the Executive notifies the Company in writing of the occurrence of the
Good Reason event; (iii) the Executive cooperates in good faith with the Company’s efforts, for a period not less than 30 days following such notice, to cure the Good Reason event; and (iv) notwithstanding such efforts, one or
more of the Good Reason events continues to exist. If the Company cures the Good Reason event during the 30-day period, Good Reason shall be deemed not to have occurred. 
 (f) Termination by the Executive Without Good Reason. At any time during the Term, the Executive may terminate his employment hereunder without Good Reason by written notice to the Board at least 60 days prior
to such termination. Any such termination shall not constitute a breach of this Agreement by the Executive. 
 (g) Notice of
Termination. Except for termination as specified in Section 4(a), any termination of the Executive’s employment by the Company or any such termination by the Executive shall be communicated by written notice (a “Notice of
Termination”) to the other party hereto. 
 (h) Date of Termination. “Date of Termination” shall mean: (A) if the
Executive’s employment is terminated by his death, the date of his death; (B) if the Executive’s employment is terminated on account of disability under Section 4(b) or by the Company for Cause under Section 4(c), the date
on which Notice of Termination is given; (C) if the Executive’s employment is terminated by the Company without Cause under Section 4(d) or by the Executive for Good Reason under 4(e), 30 days after the date on which a Notice of
Termination is given; and (D) if the Executive’s employment is terminated by the Executive Without Good Reason under Section 4(f), 60 days after the date on which a Notice of 

  

 10 

 
Termination is given. Notwithstanding the foregoing, in the event that the Executive gives a Notice of Termination to the Company, the Company may
unilaterally, by notice in writing to the Executive, accelerate the Date of Termination and such acceleration shall not result in a termination by the Company for purposes of this Agreement. 
 5. Compensation Upon Termination. 
 (a) Termination Generally. If the Executive’s employment with the Company is terminated for any reason during the Term, the Company shall pay or provide to the Executive (or to his authorized representative or estate):
(i) any earned but unpaid Base Salary, (ii) unpaid expense reimbursements for which acceptable documentation has been submitted, (iii) accrued but unused vacation that has not been forfeited, (iv) any vested benefits the
Executive may have under any employee benefit plan of the Company, consistent with plan terms, and (v) any annual Bonus Payment earned but unpaid for any completed fiscal year (collectively, the “Accrued Benefit”). The Company shall
pay or provide the Accrued Benefit to Executive promptly, but in any event within 30 days of the Date of Termination, provided however, Executive’s earned but unpaid annual Bonus Payment for a completed fiscal year, if any, shall be made
on or before the date the Executive would have received such annual Bonus Payment had his employment not terminated. In the event Executive’s employment is terminated due to death or disability, the Accrued Benefit will also include a Bonus
Payment based upon the Target Bonus and performance objectives achieved with respect to the current fiscal year, prorated in accordance with the number of days in such fiscal year the Executive actually performed services for the Company
(“Prorated Bonus Payment”). Such Prorated Bonus Payment shall be made on or before the date the Executive would have received the full annual Bonus Payment had his employment not terminated. 
  

 11 

 (b) Termination by the Company Without Cause or by the Executive with Good Reason. If the
Executive’s employment is terminated by the Company without Cause as provided in Section 4(d), or the Executive terminates his employment for Good Reason as provided in Section 4(e), then the Company shall, through the Date of
Termination, pay the Executive his Accrued Benefit. In addition, subject to the Executive entering into and not revoking a separation agreement in a form reasonably agreeable to the Company (“Separation Agreement”) pursuant to which
Executive’s obligations shall be limited to: (1) agreeing to not disparage the Releasees, (2) reaffirming Executive’s post-employment obligations pursuant to Section 7 of this Agreement, and (3) generally releasing the
Company and related entities and persons (“Releasees”) from all claims through the later of the Date of Termination, or the date the Executive enters into the Separation Agreement except that Executive shall not be required to release his
rights under (i) the Company’s employee benefit plans, (ii) this Agreement, (iii) the Indemnification Agreement , (iv) the Domain Transfer and Assignment Agreement, ( v) any directors & officers insurance policies,
or (vi) any rights of contribution from the Company or any Releasees arising under applicable law where the Executive, on the one hand, and the Company or any Releasees, on the other hand, are held jointly liability (“General
Release”), Executive will be entitled to the following: 
 (i) the Company shall pay the Executive an amount equal to one and one half
(1.5) times the sum of the Executive’s Base Salary and his Average Bonus Compensation (the “Severance Amount”). Subject to subsection (iv) below, the Severance Amount shall be paid out in equal monthly installments over
eighteen months commencing with the month after which the Date of Termination occurs, provided however, the Company shall not be obligated to pay Executive any part of the Severance 

  

 12 

 
Amount until the General Release becomes fully effective. For purposes of this Agreement, “Average Bonus Compensation” shall mean the average of
the Bonus Payments under Section 3(b) received by the Executive for the two immediately preceding fiscal years. In no event shall “Average Bonus Compensation” include any sign-on bonus, retention bonus or any other special bonus.
Notwithstanding the foregoing, if the Executive materially breaches any of the provisions contained in Section 7 of this Agreement, in addition to any other legal or equitable remedies it may have for such breach, the Company shall have the
right to terminate or suspend the Severance Amount payments under this Agreement. The termination or suspension of such payments in the event of a breach by the Executive will not affect Executive’s continuing obligations under this Agreement.
Furthermore, in the event the Executive terminates his employment for Good Reason as provided in Section 4(e), he shall be entitled to the Severance Amount only if he provides the Notice of Termination provided for in Section 4(f) within
60 days after the Executive obtains knowledge of the occurrence of the event or events which constitute such Good Reason as specified in Section 4(e); 
 (ii) upon the date the General Release becomes fully effective, (1) all stock options and other stock-based awards then held by the Executive and granted to the Executive prior to December 31, 2006 shall
immediately vest and become exercisable and nonforfeitable, and (2) all stock options and other stock-based awards then held by the Executive and granted to the Executive on or after January 1, 2007 in which the Executive would have vested
if he had remained employed for 18 months following the Date of Termination shall vest and become exercisable and nonforfeitable; 
  

 13 

 (iii) subject to the Executive’s election to continue health benefits and co-payment of premium
amounts at the active employees’ rate, the Executive and his eligible dependents shall continue to participate in the Company’s group health, dental and vision program for 18 months at the Company’s expense; provided,
however, that the continuation of health benefits under this Section shall reduce and count against the Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”); 
 (iv) anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s termination of employment, the Executive is
considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and if any payment that the Executive becomes entitled to under this Agreement
is considered deferred compensation subject to interest and additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior
to the date that is the earliest of (i) six months after the Executive’s Date of Termination, (ii) the Executive’s death, or (iii) such other date as will cause such payment not to be subject to such interest and additional
tax, and the initial payment shall include a catch-up amount covering amounts that would otherwise have been paid during the first six-month period but for the application of this Section 5(b)(iv). 
 6. Change in Control The provisions of this Section 6 set forth certain terms reached between the Executive and the Company regarding the
Executive’s rights and obligations upon the occurrence of a Change in Control of the Company. These provisions are intended to assure and encourage in advance the Executive’s continued attention and dedication to his assigned 

  

 14 

 
duties and his objectivity during the pendency and after the occurrence of any such event. These provisions shall apply in lieu of, and expressly supersede,
the provisions of Section 5(b) regarding Severance Amount, enhanced equity opportunities and benefits upon a termination of employment. 
 (a) Definition. For purposes of this Agreement, “Change of Control” shall mean the occurrence of any of the following events: 
 (i) Any transaction or series of transactions, as a result of which any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act and the rules and regulations thereunder) (other than
(i) the Company, (ii) a person that directly or indirectly controls the Company on the date of this Agreement, (iii) a person that is controlled by or is under common control with the Company, or (iv) any one or more employee
benefit plans or related trusts established for the benefit of the employees of the Company or any affiliate of the Company) becomes a “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; or 
 (ii) A change in the composition of the Board occurring within a 24 month period, as a result of which fewer than a sixty-five percent of the directors
are Incumbent Directors. “Incumbent Directors” shall mean directors who either (i) are directors of the Company as of the date hereof, or (ii) are elected, or nominated for election, to the Board of Directors of the Company with
the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall 

  

 15 

 
not include an individual not otherwise an Incumbent Director whose election or nomination is in connection with an actual or threatened proxy contest
relating to the election of directors to the Company); or 
 (iii) The consummation of a merger or consolidation of the Company with any
other corporation or entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving entity) more than fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the
approval by the stockholders of the Company of an agreement for the sale or disposition by the Company and/or its subsidiaries of all or substantially all the Company’s consolidated assets. 
 (b) Change in Control Payment. 
 (i)
If within 24 months after the occurrence of the first event constituting a Change in Control, the Executive’s employment is terminated by the Company without Cause as provided in Section 4(d) or the Executive terminates his employment for
Good Reason as provided in Section 4(e), then the Company shall pay the Executive within thirty (30) days of the Date of Termination, a lump sum in cash in an amount equal to two times the sum of (A) the Executive’s current Base
Salary, plus (B) the Executive’s Average Bonus Compensation as defined in Section 5(b)(i); 
 (ii) notwithstanding anything
to the contrary in any applicable option agreement or stock-based award agreement, upon a Change in Control, all stock options 

  

 16 

 
and other stock-based awards granted to the Executive by the Company shall immediately accelerate and become exercisable and non-forfeitable as of the
effective date of such Change in Control; 
 (iii) subject to the Executive’s election to continue health benefits and co-payment of
premium amounts at the active employees’ rate, the Executive and his eligible dependents shall continue to participate in the Company’s group health, dental and vision program for 18 months at the Company’s expense; provided,
however, that the continuation of health benefits under this Section shall reduce and count against the Executive’s rights under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”); 
 (iv) anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s termination of employment, the Executive is
considered a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, and if any payment that the Executive becomes entitled to under this Agreement is considered deferred compensation subject to interest and
additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, then no such payment shall be payable prior to the date that is the earliest of (i) six months
after the Executive’s Date of Termination, (ii) the Executive’s death, or (iii) such other date as will cause such payment not to be subject to such interest and additional tax, and the initial payment shall include a catch-up
amount covering amounts that would otherwise have been paid during the first six-month period but for the application of this Section (b)(iv). 
  

 17 

 (c) Gross-Up Payment. 
 (i) anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any compensation, payment or distribution by
the Company to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (the “Severance Payments”), would be subject to the excise tax imposed by
Section 4999 of the Code, or any interest or penalties are incurred by the Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise
Tax”), then the Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”) such that the net amount retained by the Executive, after deduction of any Excise Tax on the Severance Payments, any Federal, state,
and local income tax, employment tax and Excise Tax upon the payment provided by this Section 6(c), and any interest and/or penalties assessed with respect to such Excise Tax, shall be equal to the Severance Payments. 
 (ii) subject to the provisions of Section 6(c)(iii) below, all determinations required to be made under this Section 6(c)(ii), including
whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by a nationally recognized accounting firm selected by the Company and which has not rendered services to the Company within two years prior to its
engagement (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the Date of Termination, if applicable, or at such earlier time as is reasonably
requested by the Company or the Executive. For purposes of determining the amount of the Gross-Up Payment, the 

  

 18 

 
Executive shall be deemed to pay federal income taxes at the highest marginal rate of federal income taxation applicable to individuals for the calendar year
in which the Gross-Up Payment is to be made, and state and local income taxes at the highest marginal rates of individual taxation in the state and locality of the Executive’s residence on the Date of Termination, net of the maximum reduction
in federal income taxes which would be obtained from deduction of such state and local taxes. The initial Gross-Up Payment, if any, as determined pursuant to this Section 6(c)(ii), shall be paid to the Executive within five business days of the
receipt of the Accounting Firm’s determination. If the Accounting Firm determines that no Excise Tax is payable by the Executive, the Company shall furnish the Executive with an opinion of the Accounting Firm that failure to report the Excise
Tax on the Executive’s applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon the Company and the Executive. As a result of the
uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by the Company should have been made (an
“Underpayment”). In the event that the Company exhausts its remedies pursuant to Section 6(c)(iii) below and the Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of
the Underpayment that has occurred, consistent with the calculations required to be made hereunder, and any such Underpayment, and any interest and penalties imposed on the Underpayment and required to be paid by the Executive in connection with the
proceedings described in 

  

 19 

 
Section 6(c)(iii) below, shall be promptly paid by the Company to or for the benefit of the Executive. 
 (iii) The Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-up Payment. Such notification shall be given as soon as practicable but no later than ten business days after the Executive knows of such claim and shall apprise the Company of the nature of such claim and the date on which
such claim is requested to be paid. The Executive shall not pay such claim prior to the expiration of the 30-day period following the date on which he gives such notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to the expiration of such period that it desires to contest such claim, provided that the Company has set aside adequate reserves to cover the
Underpayment and any interest and penalties thereon that may accrue, the Executive shall: 
 (A) give the Company any
information in his possession reasonably requested by the Company relating to such claim, 
 (B) take such action in
connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by a law firm of nationally recognized standing in
the area of business law selected by the Company, 
 (C) cooperate with the Company in good faith in order to 

  

 20 

 
effectively contest such claim, and 
 (D) permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including all attorneys’ fees and additional interest and
penalties) incurred by the Company or the Executive in connection with such contest and shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax, including interest and penalties with respect thereto,
imposed as a result of such contest, representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 6(c)(iii), the Company shall control all proceedings taken in connection with such contest in
a professional and diligent manner and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, contest the
claim in any permissible manner, and the Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall reasonably
determine, provided that the Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Executive shall be entitled to settle or contest, as the case may be, any other
issues raised by the Internal Revenue Service or any other taxing authority. 
  

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 7. Confidential Information, Noncompetition and Cooperation. 
 (a) Confidential Information. As used in this Agreement, “Confidential Information” means information belonging to the Company which is
of value to the Company in the course of conducting its business as then conducted or as then actively considered and the disclosure of which could reasonably be expected to result in a competitive or other disadvantage to the Company. Confidential
Information includes, without limitation, financial information, reports, and forecasts; inventions, improvements and other intellectual property in the areas in which the Company is then conducting business or is actively considering conducting
business; trade secrets; know-how; designs, processes or formulae; software; market or sales information or plans; customer lists; and business plans, prospects and opportunities in the areas in which the Company is then conducting business or is
actively considering conducting business (including, without limitation, possible acquisitions or dispositions of businesses or facilities which have been actively discussed and considered by the senior management of the Company). Confidential
Information includes, without limitation, information concerning the business the Company is then conducting or the business the Company is actively considering conducting that is developed by the Executive in the course of or in connection with the
Executive’s employment by the Company. Confidential Information also includes the confidential information of others with which the Company has a business relationship and which the Executive knows or has reason to know is confidential
information of such others. Notwithstanding the foregoing, Confidential Information does not include information in the public domain, unless due to breach of the Executive’s duties under Section 7(b). 
 (b) Confidentiality. The Executive understands and agrees that the Executive’s employment creates a relationship of confidence and trust
between the Executive 

  

 22 

 
and the Company with respect to all Confidential Information. At all times, both during the Executive’s employment with the Company hereunder and after
its termination, the Executive will keep in confidence and trust all such Confidential Information, and will not use or disclose any such Confidential Information without the written consent of the Company, except as may be necessary in the ordinary
course of performing the Executive’s duties to the Company. Anything herein to the contrary notwithstanding, the provisions of this subsection (b) shall not apply (i) when disclosure is required by law or by any court, arbitrator,
mediator or administrative or legislative body (including any committee thereof) with apparent jurisdiction to order the Executive to disclose or make accessible any information, provided that, unless otherwise prohibited by law, the Executive shall
provide Company with prompt notice of any such requested or required disclosure and shall cooperate in all reasonable respects with the Company in any effort by the Company to prevent or otherwise contest such disclosure, or (ii) with respect
to any other litigation, arbitration or mediation involving this Agreement, including, but not limited to, the enforcement of this Agreement. 
 (c) Documents, Records, etc. All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Confidential Information, which are furnished to the Executive by the Company or are produced
by the Executive in connection with the Executive’s employment by the Company hereunder and which concern the business that the Company is then conducting or is actively considering conducting will be and remain the sole property of the
Company. The Executive will return to the Company all such materials and property as and when requested by the Company. In any event, the Executive will return all such materials and property promptly following termination of the Executive’s
employment for any reason. The Executive will not retain any such material or property or any 

  

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copies thereof after such termination. Anything herein to the contrary notwithstanding, the Executive shall be entitled to retain, subject to his obligations
set forth in this Section 7, copies of: (i) papers and other materials of a personal nature, including, but not limited to, photographs, correspondence, personal diaries, calendars and rolodexes, personal files and phone books, and:
(ii) information showing his compensation or relating to reimbursement of expenses, (ii) information that he reasonably believes may be needed for tax purposes, (iii) plans, programs and agreements relating to his employment, or
termination thereof, with the Company, and (iv) minutes, presentation materials and personal notes from any meeting of the Board, or any committee thereof, while he was a member of the Board. 
 (d) Noncompetition and Nonsolicitation. During the Term and for 12 months thereafter (the “Restricted Period”), the Executive
(i) will not, directly or indirectly, whether as owner, partner, shareholder, consultant, agent, employee, co-venturer or otherwise, engage, participate, assist or invest in any Competing Business (as hereinafter defined); (ii) will
refrain from directly or indirectly employing, attempting to employ, recruiting or otherwise soliciting, inducing or influencing any person to leave employment with the Company (other than terminations of employment of subordinate employees
undertaken in the course of the Executive’s employment with the Company); and (iii) will refrain from soliciting or encouraging any customer or supplier to terminate or otherwise modify adversely its business relationship with the Company.
The Executive understands that the restrictions set forth in this Section 7(d) are intended to protect the Company’s interest in its Confidential Information and established employee, customer and supplier relationships and goodwill, and
agrees that such restrictions are reasonable and appropriate for this purpose. For purposes of this Agreement, the term “Competing Business” shall mean a business conducted anywhere in world which is competitive 

  

 24 

 
with any business which the Company or any of its subsidiaries is then conducting or is actively considering conducting at the applicable time of
determination, provided however, a business shall not be deemed a “Competing Business” merely because it engages in online advertising, online sales or online advertising related syndication. Executive acknowledges and agrees that
if he violates any of the provisions of this Section 7, the running of the Restricted Period will be extended by the time during which he engages in such violations. Executive understands that his obligations under this Section 7 will
continue in accordance with its express terms regardless of any changes in title, position, duties, salary, compensation or benefits or other terms and conditions of employment. Executive further understands that his obligations under this
Section 7 will continue following the termination of employment regardless of the manner of such termination. Executive expressly consents to be bound by the provisions of this Section 7 for the benefit of the Company or any parent,
subsidiary, successor or permitted assign to whose employ Executive may be transferred in accordance with the terms and conditions hereof without the necessity that this Section 7 be resigned at the time of such transfer. Notwithstanding the
foregoing, the Executive may own up to two percent (2%) of the outstanding securities of a publicly held entity which constitutes or is affiliated with a Competing Business. 
 (e) Third-Party Agreements and Rights. The Executive hereby confirms that the Executive is not bound by the terms of any agreement with any
previous employer or other party which restricts in any way the Executive’s use or disclosure of information or the Executive’s engagement in any business. The Executive represents to the Company that the Executive’s execution of this
Agreement, the Executive’s employment with the Company and the performance of the Executive’s proposed duties for the Company will not violate any obligations the Executive may have to any such previous employer or other party. In the

  

 25 

 
Executive’s work for the Company, the Executive will not disclose or make use of any information in violation of any agreements with or rights of any
such previous employer or other party, and the Executive will not bring to the premises of the Company any copies or other tangible embodiments of non-public information belonging to or obtained from any such previous employment or other party.

 (f) Litigation and Regulatory Cooperation. During and after the Executive’s employment, upon reasonable prior notice and, to
the extent practicable, during normal business hours, the Executive shall cooperate in all reasonably respects with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or
on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company. The Executive’s reasonable cooperation in connection with such claims or actions shall include, but not be limited
to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times. During and after the Executive’s employment, upon reasonable prior notice, the Executive
also shall cooperate in all reasonable respects with the Company in connection with any investigation or review by any federal, state or local regulatory authority to the extent that any such investigation or review relates to events or occurrences
that transpired while the Executive was employed by the Company. The Company shall promptly reimburse the Executive for all reasonable out-of-pocket expenses reasonably incurred in connection with the Executive’s performance of obligations
pursuant to this Section 7(f). Such expenses shall include, but not limited to, travel costs consistent with the Company’s travel reimbursement policy then in effect, and reasonable legal fees to the extent that the Executive reasonably
and in good faith believes that there is or will be a conflict between his interests and 

  

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the interests of the Company in connection with the matter about which the Company has requested cooperation and that, therefore, separate representation is
warranted. In addition, following the Term, for all time the Executive reasonably expends in cooperating pursuant to this Section 7(f), the Company shall compensate Executive at the rate of $120.00 per hour provided however,
Executive’s right to compensation shall not apply to time spent in activities that could have been compelled pursuant to a subpoena, including testimony and related attendance at depositions, hearings or trials. The Executive’s entitlement
to reimbursement of such expenses, including reasonable legal fees, shall in no way limit or affect the Executive’s rights to be indemnified and/or advanced expenses in accordance with the Company’s corporate documents, any applicable
insurance policy and/or in accordance with the Indemnification Agreement between the Executive and the Company dated ___________, 2007 (the “Indemnification Agreement”). 
 (g) Injunction. The Executive agrees that it would be difficult to measure any damages caused to the Company which might result from any breach by
the Executive of any of the promises set forth in this Section 7, and that in any event money damages would be an inadequate remedy for any such breach. Accordingly, the Executive agrees that if the Executive breaches, or proposes to breach,
any portion of this Section 7, the Company shall be entitled, in addition to all other remedies that it may have, to an injunction or other appropriate equitable relief to restrain any such breach without showing or proving any actual damage to
the Company. 
 8. Resolution of Disputes. Any claim or controversy arising out of or relating to this Agreement or the
Executive’s employment with the Company or the termination thereof (including, without limitation, any claims of unlawful employment discrimination whether based 

  

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on age or otherwise) (collectively, “Covered Claims”) shall, to the fullest extent provided by law, be resolved by binding arbitration to be held,
unless otherwise agreed, in Boston, Massachusetts under the auspices of the American Arbitration Association (“AAA”), in accordance with the National Rules for the Resolution of Employment Disputes including, but not limited to, the rules
and procedures applicable to the selection of arbitrators. In the event that any person or entity other than the Executive or the Company may be a party with regard to any such controversy or claim, such controversy or claim, to the extent involving
such third party, shall be submitted to arbitration subject to such other person or entity’s agreement. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. This Section 8 shall be
specifically enforceable. The foregoing notwithstanding, in the event of any actual or threatened breach by the Executive of any of the provisions of Section 7 of this Agreement, the Company shall be entitled to obtain injunctive and such other
equitable relief with respect to such breach by pursuing a court action. 
 9. Waiver of Rights Severance Plan Rights.
Executive acknowledges and agrees that that if the Company has any agreement, policy, program or plan (other than any qualified retirement plan) or other arrangement for paying amounts to employees in connection with terminations
of employment. (“Company Severance Plan”) under which Executive is eligible for payments under the terms of such Company Severance Plan, Executive’s right to payments, benefits and enhanced equity
opportunities in connection with the termination of his employment under this Agreement is contingent on Executive expressly waiving any and all rights under the Company Severance Plan.
 10. Consent to Jurisdiction. The parties hereby consent to the jurisdiction of the Superior Court of the Commonwealth of Massachusetts and the
United States District Court for 

  

 28 

 
the District of Massachusetts. Accordingly, with respect to any permitted court action, each of the Executive and the Company (a) submits to the
personal jurisdiction of such courts; (b) consents to service of process by notice in accordance with Section 15 below; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to
personal jurisdiction or service of process. 
 11. Integration. This Agreement, together with the Indemnification Agreement, and the
Domain Name Transfer and Assignment Agreement constitute the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements between the parties concerning such subject matter, including without
limitation the Prior Agreement. 
 12. Assignment; Successors and Assigns, etc. Neither the Company nor the Executive may make any
assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other party; provided that the Company may assign its rights under this Agreement without the consent of the Executive in
the event that the Company shall consolidate with or merge into any other corporation, partnership, organization or other entity, or transfer all or substantially all of its properties or assets to any other corporation, partnership, organization or
other entity. This Agreement shall inure to the benefit of and be binding upon the Company and the Executive, their respective successors, executors, administrators, heirs and permitted assigns. 
 13. Enforceability. If any portion or provision of this Agreement (including, without limitation, any portion or provision of any section of this
Agreement) shall to any extent be declared illegal or unenforceable by a court of competent jurisdiction, then the remainder of this Agreement, or the application of such portion or provision in circumstances other than those as 

  

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to which it is so declared illegal or unenforceable, shall not be affected thereby, and each portion and provision of this Agreement shall be valid and
enforceable to the fullest extent permitted by law. 
 14. Waiver. No waiver of any provision hereof shall be effective unless made in
writing and signed by the waiving party. The failure of any party to require the performance of any term or obligation of this Agreement, or the waiver by any party of any breach of this Agreement, shall not prevent any subsequent enforcement of
such term or obligation or be deemed a waiver of any subsequent breach. 
 15. 409A. All benefits and payments to the Executive
hereunder and intended to be in accordance with Section 409A of the Code, and the Company shall have the right, acting reasonably, in good faith and upon prior notice to the Executive and/or when requested by the Executive, to amend or modify
this Agreement, but only to the extent necessary to avoid the imposition of additional taxes, penalties and interest under such Section 409A; provided that such amendment or modification substantially preserves the value to the Executive of the
affected benefit or payment. 
 16. Notices. Any notices, requests, demands and other communications provided for by this Agreement
shall be sufficient if in writing and delivered in person or sent by a nationally recognized overnight courier service or by registered or certified mail, postage prepaid, return receipt requested, to the Executive at the last address the Executive
has filed in writing with the Company or, in the case of the Company, at its main offices, attention of the Board. Any notice so sent shall be deemed to be given upon receipt. 
  

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 17. Amendment. This Agreement may be amended or modified only by a written instrument signed by
the Executive and by a duly authorized representative of the Company. 
 18. Governing Law. This is a Massachusetts contract and shall
be construed under and be governed in all respects by the laws of the Commonwealth of Massachusetts, without giving effect to the conflict of laws principles of such Commonwealth. With respect to any disputes concerning federal law, such disputes
shall be determined in accordance with the law as it would be interpreted and applied by the United States Court of Appeals for the First Circuit. 
 19. Counterparts. This Agreement may be executed in any number of counterparts, including by facsimile or pdf, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together
constitute one and the same document. 
 20. Survivorship. Except as otherwise expressly set forth in this Agreement, to the extent
necessary to carry out the intentions of the parties hereunder, the respective rights and obligations of the parties hereunder shall survive any termination of the Executive’s employment. 
 *** 
  

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 IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date and year first above
written. 
 SALARY.COM, INC. 
 By:______________________________________________ 
 Its: ______________________________________________ 
 Gregory Kent Plunkett 
 _________________________________________________ 
  

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