Document:

Long Term Compensation Program

 Exhibit 10.70 
  
 INTERDIGITAL COMMUNICATIONS CORPORATION 
 LONG TERM COMPENSATION PROGRAM 
  
 The Company implemented the Long Term Compensation Program (the “Program”) to
encourage management and executive level employees to continue to exercise their best efforts toward ensuring the success of the Company. All regular full-time or regular part-time employees (as defined in the Employee Handbook) at or above a
manager or technical equivalent level are eligible to participate in the Program. 
  
 Compensation Components. As further described below, the Program consists of two compensation components: (1) a Long-Term Incentive Plan providing performance-based cash bonuses (the “LTIP”), and (2) an award of
restricted stock units (“RSUs”) under the Company’s 1999 Restricted Stock Plan. 
  
 The LTIP component of the Program rewards grantees based on the Company’s achievement of performance goals established/approved by the Compensation Committee of the Board of Directors (the “Compensation
Committee”). 
  
 The RSU awards provide recipients with an opportunity to
share in the growth of the Company’s value in the marketplace. An RSU is a contractual right to receive a share(s) of InterDigital Common Stock after completion of a specified vesting period. 
  
 Program Cycle. The Program operates in cycles (the “Program cycle”).
The first Program cycle began on April 1, 2004 and will end on January 1, 2006. Subsequent Program cycles are intended to be overlapping three-year cycles, beginning January 1, 2005 and recurring every other year thereafter. 
  
 LTIP Cash Bonuses. The LTIP cash bonus targets are established based on a
percentage of annual base salary and a payout under the LTIP is based on the Company’s achievement of certain performance goals associated with each Program cycle, established by the Compensation Committee at the start of each Program cycle.
Your cash LTIP payout may exceed or be less than your targeted amount depending on achievement of the performance goals, or no payout may be made if the Company fails to meet the minimum performance goals for the Program cycle. To be eligible for a
cash payout you must remain continuously employed by the Company (or an Affiliate of the Company) through the end of the Program cycle. For purposes of this Program, an Affiliate means any other individual, corporation, partnership, association,
trust or other entity that, directly or indirectly, is in control of or is controlled by or is under common control with the Company. Payout of the LTIP cash bonus will be made no later than March 15 of the year following the end of each Program
cycle. 
  
 RSU Terms. RSUs will be granted under, and subject to the
terms of, the Company’s 1999 Restricted Stock Plan (the “Plan”). You will receive an RSU Award Agreement setting forth in detail the terms of your RSU grant along with a copy of the prospectus for the Plan. In the event of any
conflict between this summary and your RSU award agreement, the RSU award agreement will govern. 
  
 For all non-executives/officers, the RSUs granted in connection with each Program cycle will vest incrementally based on the duration of the Program cycle. For the first cycle, vesting will 

 
occur over a two-year period with half of the RSUs vesting on January 1, 2005 and half vesting on January 1, 2006, so long as you remain continuously
employed by the Company (or an Affiliate) through the applicable vesting dates. For subsequent Program cycles, currently intended to be three years in duration, vesting will occur 25% at the end of years one and two, and 50% at the end of year
three. For all executive/officer level participants, the RSUs granted in connection with each Program cycle will vest 100% at the end of each cycle, so long as you remain employed by the Company or an Affiliate of the Company through the applicable
vesting date. Settlement for RSUs that become vested will occur, subject to section 8 of the 1999 Restricted Stock Plan, on the first business day following the applicable vest date; provided, however, that in no event will settlement of your RSUs
be made before the date which is six months after the date of your termination of employment if you are a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, or any successor provision.

  
 New Program Participants. If you are promoted to a level which
qualifies you to participate in the Program for the first time or you are newly hired within the first two years of a three-year Program cycle (or within the first year of a two-year cycle), you will be eligible to receive a pro rata LTIP cash bonus
and RSU award. The pro rata target LTIP cash bonus and RSU award will be determined based on the amount of time (number of pay periods) remaining in the first year of the LTCP cycle in which you are hired or promoted to a qualifying level plus the
full amount associated with any ensuing years that remain in such cycle. By way of example, if you are a non-executive employee hired October 1st of the first year of a two year LTCP cycle, you would be eligible to receive 3/12 of that year’s LTCP eligibility in addition to the full-year eligibility for the second year of the LTCP cycle.
The LTIP (cash) and RSU awards will be paid out and vest respectively, as described under the sections entitled “LTIP Cash Bonuses” and “RSU Terms”. 
  
 Promotion during Program Cycle. If you are promoted during a Program cycle and such promotion results in an accompanying
increase in your Program payout target (LTIP target and RSU award), you will realize the benefit of the Program target increase at the beginning of the next applicable Program cycle unless the Compensation Committee, in its sole discretion,
authorizes such an adjustment at a different time. 
  
 Effect of Termination
of Employment. If, during a Program cycle, your employment with the Company terminates due to your death, “disability,” “retirement,” or termination by the Company without “cause” (each as defined below), you
will earn a pro-rata portion of your LTIP cash bonus and RSU award. That pro-rata portion will be determined by multiplying both the amount of the LTIP cash bonus and the number of RSUs awarded to you under the Program by a fraction equal to the
portion of the Program cycle that has transpired prior to the cessation of your employment over the entire Program cycle. Such pro-rata payment and distribution will be made to you (or, if applicable, your estate) at the same time as bonus payments
and share distributions are made to active employees participating in the Program. 
  

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 If your employment ceases for any other reason, all your rights under the Program (other than RSUs that have previously
vested) will be forfeited. This means that if you voluntarily leave the Company, you will forfeit your rights to all compensation under the Program (other than any RSUs which may have previously vested.) 
  
 For purposes of the Program: 
  
 * “cause” means: (a) willful and repeated failure of an employee to perform substantially his or her duties (other
than any such failure resulting from incapacity due to physical or mental illness); (b) an employee’s conviction of, or plea of guilty or nolo contendere to, a felony which is materially and demonstrably injurious to the Company or an
Affiliate; (c) willful misconduct or gross negligence by an employee in connection with his or her employment; or (d) an employee’s breach of any material obligation or duty owed to the Company or an Affiliate. 
  
 * “disability” means: (a) a disability entitling the employee to
long-term disability benefits under the applicable long-term disability plan of the Company (or an Affiliate if employee is employed by such Affiliate); or (b) if the employee is not covered by such a plan, a physical or mental condition or illness
that renders the employee incapable of performing his or her duties for a total of 180 days or more during any consecutive 12-month period. 
  
 * “retirement” means resignation after attaining a combination of age plus years of service at the Company (and Affiliates) equal to 70.

  
 Effect of a Terminating Event. If a Terminating Event (meaning a
Change of Control—as defined in the Plan—or liquidation of the Company) occurs during the Program cycle and while you are actively employed by the Company, then: 
  
 * immediately prior to (but contingent on the occurrence of) that Terminating Event all your RSUs will become fully vested
and you will receive a distribution of InterDigital shares with respect to those RSUs; and 
  
 * you will be entitled to an early payment of your LTIP cash bonus in an amount equal to the greater of (i) your target LTIP cash bonus, or (ii) the LTIP cash bonus that would have been due to you at the end of the
Program cycle (but for the Terminating Event), assuming performance through the remainder of the Program cycle would be consistent with performance in the portion of the Program cycle prior to the Terminating Event. Payment of this amount will be
made not later than 30 days after the Terminating Event. 
  
 Taxation of
Awards. The following is a brief description of the federal income and employment tax treatment of Program awards. The rules governing these awards are complex and their application may vary depending upon your individual circumstances.
Moreover, statutory and regulatory provisions and their interpretations are subject to change. You are therefore encouraged to consult with your personal tax advisor regarding the tax consequences of participation in the Program. 
  
 For federal income and employment tax purposes, the full amount of any LTIP cash bonus will
be taxable to you at the time the cash is paid to you. 
  
 For federal income tax
purposes, you will recognize ordinary income with respect to the value of shares distributed in respect of RSUs at the time the shares are distributed to you based on the value of those shares at that time. For employment tax and possibly state
income tax purposes, you will be taxed on the value of the shares subject to your RSUs at the time those RSUs vest, 

  

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based on the value of those shares at that time. Further information regarding the taxation of your RSUs is contained in the Plan’s prospectus.

  
 Future Program Cycles. While the Company reserves the right to
alter or discontinue the Program at any time, its present intent is to continue the Program for future cycles. The Company expects future Program cycles to include both an LTIP component and an RSU component. If you are eligible to participate in a
future Program cycle, additional information will be distributed to you at the start of that cycle. 
  
 Administration. The Program is administered by the Compensation Committee. The Compensation Committee has the right to terminate or amend the Program and its components at any time for any reason.
The Compensation Committee also has the authority to select employees to receive awards, to create, amend, and rescind rules regarding the operation of the Program, to determine whether LTIP performance goals have been achieved, to reconcile
inconsistencies, to supply omissions and to otherwise make all determinations necessary or desirable for the operation of the Program. 
  
 Election to Defer Settlement of RSUs. Participants who are eligible to defer settlement of their RSUs must make such election in the calendar year preceding
the date of grant of the RSUs to be deferred. Eligibility to defer shall be made by the Company, in its sole discretion. 
  
 No Assignment. You may not assign, pledge or otherwise transfer any right relating to a cash or RSU award under the Program and any attempt to do so will be
void. 
  
 No Right to Continued Employment. Your participation in
the Program does not give you any right to continue in employment or limit in any way the right of the Company to terminate your employment at any time, for any reason. 
  
 Questions. If you have questions regarding the Program, please contact Gary Isaacs, Sr. Human Resources Officer, at
610-878-5721. 
  
 April 2005 
  

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 INTERDIGITAL COMMUNICATIONS CORPORATION

 LONG TERM COMPENSATION PROGRAM 
  
 SUPPLEMENTAL PROGRAM SUMMARY

  
 In addition to the Company’s Long Term Compensation Program (the
“Program”) Terms and Conditions as amended April 2005 (the “Terms and Conditions”), the provisions outlined in this Supplemental Program Summary apply to the Program. Taken together, the Terms and Conditions and this supplemental
document (along with the terms contained in the Company’s 1999 Restricted Stock Plan and associated prospectus (collectively, the “Plan”) as such terms relate to the grant of restricted stock units (“RSU”) made under the
Program), represents a comprehensive written description of the Program. 
  
 Program Goals 
  

	•	 	Introduces a new compensation program to attract, motivate and retain employees; and 

  

	•	 	Ensures alignment with market/industry practices and shareholder interests. 

  
 Program Cycles 
  
 As described in the Terms and Conditions, the initial Program cycle is a two-year cycle commencing April 1, 2004, with subsequent Program cycles occurring in overlapping
three-year cycles. Under the initial two-year Program cycle, all participants will receive two-thirds of a full three-year cycle. The opportunity for non-executive/officer-level participants as well as executive/officer-level participants to receive
the Long-Term Incentive Plan performance-based cash bonus component of the Program (“LTIP”) occurs at the end of each Program cycle. 
  
 On June 30, 2005, the Compensation Committee of the Board of Directors (“Committee”) revised Cycle 2 of the cash award portion of the Program which was
scheduled to cover the period of January 1, 2005 to January 1, 2008 (“Cycle 2”) as follows: 
  

	 	•	 	Effective June 30, 2005, the cash award portion of Program Cycle 2 is revised to cover a 3 1⁄2 year period beginning July 1, 2005 to January 1, 2009 (“New Cycle 2”).
Only persons eligible to participate in the Program and actively employed on or after July 1, 2005 will be eligible to participate in New Cycle 2. 

  

	 	•	 	New performance goals covering New Cycle 2 will be approved by the Compensation Committee. 

  

	 	•	 	Each employee eligible to participate in Cycle 2 at June 30, 2005 and each former employee who was vested in a pro rata portion of the cash award of Cycle 2 at June 30, 2005 will
receive a cash award covering the period of time from January 1, 2005 to June 30, 2005 (“Interim Period”). 

  

	 	•	 	Cash awards covering the Interim Period (“Interim Awards”) will be paid on or before August 1, 2005. 

  

	 	•	 	Interim Awards for each eligible person will be equal to 50% of the Pro Rata Amount. 

  

	 	•	 	Pro Rata Amount = Target Cash Award multiplied by the Applicable Fraction. 

  

	 	•	 	Target Cash Award = the total cash award an individual would have been eligible to receive at the end of Cycle 2 based upon such individual’s target and assuming 100% of
corporate goals had been met. 

  

	 	•	 	Applicable Fraction = the number of pay dates during the Interim Period a person was participating in the Program under Cycle 2, divided by 72 (the total number of pay dates during
Cycle 2). 

  
 Future Program cycles are expected to be overlapping
three-year periods (with the next cash award cycle beginning January 1, 2009) such that performance-based cash award cycles will cover a three year period which begins one calendar year later than the RSU award cycle. 
  
 Program Targets 
  
 The following Program targets are based on organizational levels (or a specific officer
position within the Company) and that organizational level’s (or the specific officer’s) base salary. The percentages are used to calculate the opportunity to receive the LTIP cash bonus component of the Program and the amount of the RSU
award component of the Program: 
  

			
	 •      Manager/Sr. Manager & Technical Equivalent – 40%
	  	 •      Chief Technology Officer – 90%

	 •      Director/Sr. Director & Technical Equivalent – 45%
	  	 •      Sr. Business Development Officer – 90%

	 •      Functional VP – 50%
	  	 •      General Counsel – 80%

	 •      Chief Executive Officer – 120%
	  	 •      Chief Strategic Standards Officer – 80%

	 •      General Patent Counsel – 80%
	  	 •      Sr. Engineering & Programs Officer – 80%

	 •      Chief Financial Officer – 90%
	  	 •      Sr. Human Resources Officer – 80%

	 	  	 •      Fellow, ASIC/DSP – 70%

  
 RSU awards are calculated based on the
target percentage of base salary of an eligible participant divided by the Company’s closing share price on the date of the RSU award (i.e., April 1, 2004 for the initial Program cycle). 
  

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 INTERDIGITAL COMMUNICATIONS CORPORATION 
 RESTRICTED STOCK UNIT AWARD AGREEMENT 
  
 This Restricted Stock Unit Award Agreement (this “Agreement”) is made as of
                     (the “Date of Grant”) by InterDigital Communications Corporation (the “Company”) to
                             (“Grantee”). 
  
 1. Definitions. Capitalized terms shall have the meanings set forth
below or in the Plan. As used herein: 
  
 (a)
“Account” means a bookkeeping account reflecting Grantee’s interest in restricted stock units. 
  
 (b) “Cause” means: (a) willful and repeated failure of Grantee to perform substantially his or her duties (other than any
such failure resulting from incapacity due to physical or mental illness); (b) Grantee’s conviction of, or plea of guilty or nolo contendere to, a felony which is materially and demonstrably injurious to the Company or an Affiliate; (c) willful
misconduct or gross negligence by Grantee in connection with his or her service to the Company; or (d) Grantee’s breach of any material obligation or duty owed to the Company or an affiliate. 
  
 (c) “Change in Control Event” means any
transaction or series of transactions that constitutes both a Change of Control as defined in the Plan and at least one of the following: 
  
 (i) a change in the ownership of the Company, within the meaning of Q&A 12 of IRS Notice 2005-1; 
  
 (ii) a change in effective control of the Company, within
the meaning of Q&A 13 of IRS Notice 2005-1; or 
  
 (iii) a change in the ownership of a substantial portion of the assets of the Company, within the meaning of Q&A 14 of IRS Notice 2005-1. 
  
 (d) “Disability” means a disability entitling Grantee to long-term disability benefits under the applicable long-term
disability plan of the Company (or its Affiliate if Grantee is employed by such Affiliate); or (b) if Grantee is not covered by such a plan, a physical or mental condition or illness that renders Grantee incapable of performing his or her duties for
a total of 180 days or more during any consecutive 12-month period. 
  
 (e) “Dividend Equivalent” means credits arising in respect of dividends paid on Shares, as described in Section 6 herein. 

 (f) “Fair Market Value” means the closing price of a Share on the
exchange or on NASDAQ, as reported in The Wall Street Journal on the relevant valuation date or, if there is no trading on that date, on the next preceding trading date. 
  
 (g) “Plan” means the InterDigital Communications Corporation 1999 Restricted Stock Plan, as
amended. 
  
 (h) “Restricted
Period” means the period beginning on the Date of Grant and ending on                         . 
  
 (i) “Restricted Stock Units” means a right
to receive                          Shares issued pursuant to the Plan. 
  
 (j) “Retirement” means resignation by
Grantee after attaining a combination of age plus years of service at the Company (and Affiliates) equal to 70 with the consent of the Company. 
  
 (k) “Vesting Date” means the earlier of (i)
                         or (ii) the consummation of a Change in Control Event. 
  
 2. Grant of Restricted Stock Units. 
  
 (a) Subject to the terms and conditions set forth herein and
in the Plan, the Company hereby grants to Grantee the Restricted Stock Units. The Company shall maintain an Account for Grantee reflecting the number of Restricted Stock Units credited to Grantee hereunder. 
  
 (b) All of the terms, conditions and other provisions of the
Plan are hereby incorporated by reference into this Agreement. Capitalized terms used in this Agreement but not defined herein shall have the same meanings as in the Plan. If there is any conflict between the provisions of this Agreement and the
provisions of the Plan, the provisions of the Plan shall govern. Grantee acknowledges receipt of the Plan, a copy of which is annexed hereto, represents that he/she is familiar with the terms and provisions thereof and hereby agrees to be bound by
the Plan (as presently in effect or hereafter amended) and this Agreement, and by all decisions and determinations of the Committee thereunder. (For purposes of this provision and other provisions of this Agreement, references to the Committee
include any persons or administrative body to whom the Committee has delegated authority.) 
  
 3. Restrictions on Restricted Stock Units. Subject to the terms and conditions set forth herein and in the Plan, Grantee shall not be permitted to sell, transfer, pledge or assign the Restricted Stock Units
except by will or by the laws of descent and distribution. No such transfer occurring as a result of the Grantee’s death shall be effective to bind the Company unless the Committee shall have been furnished with a 

  

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copy of the applicable will or such other evidence as the Committee may deem necessary to establish the validity of the transfer. 
  
 4. Vesting and Forfeiture. 
  
 (a) Restricted Stock Units granted hereunder shall vest
(meaning that the risk of forfeiture of such Restricted Stock Units shall lapse) on the Vesting Date if Grantee remains continuously employed by the Company through that date. Each Restricted Stock Unit credited under Section 6 in respect of
Dividend Equivalents shall vest at the time of vesting of the Restricted Stock Unit that gives rise, directly or indirectly, to such Dividend Equivalent. 
  
 (b) If Grantee’s service as a director and/or employee of the Company ends prior to the Vesting Date due to a termination for Cause
or a resignation for any reason other than Retirement, all Restricted Stock Units granted hereunder will be forfeited. 
  
 (c) If Grantee’s service or employment with the Company ceases prior to the Vesting Date due to death, Disability, Retirement, or
termination by the Company without Cause, Grantee will become vested in a pro-rata portion of his or her Restricted Stock Units. That pro-rata portion will be determined by multiplying the number of Restricted Stock Units by a fraction equal to the
portion of the Restricted Period that has transpired prior to such cessation of service or employment. Settlement for Restricted Stock Units that become vested pursuant to this Section 4(c) will occur subject to the terms of the Plan on the first
business day following the Vesting Date; provided, however, that in no event will settlement of Grantee’s Restricted Stock Units be made before the date which is six months after the date of Grantee’s termination of employment if Grantee
is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Internal Revenue Code, or any successor provision. 
  
 5. Settlement and Election to Defer Settlement. 
  
 (a) Restricted Stock Units credited hereunder (including Restricted Stock Units credited in respect of Dividend Equivalents) will be
settled by delivery of one share of the Company’s Common Stock for each Restricted Stock Unit being settled. Subject to Section 4(c) of this Agreement, settlement will occur on the first business day following the applicable Vesting Date,
unless Grantee has elected to defer settlement in accordance with Section 5(b). 
  
 (b) By completing, signing and returning Exhibit “A” to this Agreement within 30 days of the date of this Agreement, Grantee may
elect to defer the date of settlement of Restricted Stock Units credited hereunder. If a Grantee elects to defer settlement, such deferred settlement must occur on or after
                                    . Notwithstanding the
foregoing, no deferral election made pursuant to this Section 5(b) will be effective until the first anniversary of the date on which such election was made. 
  

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 6. Dividend Equivalents and Adjustments. Dividend Equivalents shall be credited on Restricted
Stock Units (other than Restricted Stock Units that, at the relevant record date, previously have been settled or forfeited) in accordance with this Section 6: 
  

(a) Cash Dividends. If the Company declares and pays a dividend or distribution on its Shares in the form of cash, then a number
of additional Restricted Stock Units shall be credited to Grantee’s Account as of the payment date for such dividend or distribution equal to the number of Restricted Stock Units credited to the Account as of the record date for such dividend
or distribution, multiplied by the amount of cash actually paid as a dividend or distribution on each outstanding Share at such payment date, divided by the Fair Market Value of a Share as of such payment date. 
  
 (b) Non-Cash Dividends. If the Company declares and
pays a dividend or distribution on Shares in the form of property other than Shares, then a number of additional Restricted Stock Units shall be credited to Grantee’s Account as of the payment date for such dividend or distribution equal to the
number of Restricted Stock Units credited to the Account as of the record date for such dividend or distribution, multiplied by the fair market value of such property actually paid as a dividend or distribution on each outstanding Share at such
payment date, divided by the Fair Market Value of a Share as of such payment date. 
  
 (c) Stock Dividends. If the Company declares and pays a dividend or distribution on Shares in the form of additional Shares, then a
number of additional Restricted Stock Units shall be credited to Grantee’s Account as of the payment date for such dividend or distribution equal to the number of Restricted Stock Units credited to the Account as of the record date for such
dividend or distribution or split, multiplied by the number of additional Shares actually paid as a dividend or distribution or issued in such split in respect of each outstanding Share. 
  
 7. Other Terms Relating to Restricted Stock Units. 
  
 (a) The number of Restricted Stock Units credited to a Grantee’s Account shall include fractional
Restricted Stock Units calculated to at least three decimal places, unless otherwise determined by the Committee. Upon settlement of Restricted Stock Units, Grantee shall be paid, in cash, an amount equal to the value of any fractional Share that
would have otherwise been deliverable in settlement of such Restricted Stock Units. 
  
 (b) It shall be a condition to the Company’s obligation to issue and deliver Shares in settlement of the Restricted Stock Units that
Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution) pay to the Company, upon its demand, such amount as may be required by the Company for the purpose of satisfying any liability to
withhold federal, state, or local income or other taxes. If the amount required is not paid, the Company may refuse to deliver the Shares in settlement of the Restricted Stock Units until such amount is paid. The 

  

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Committee may, in its discretion, permit a Grantee (or the person to whom ownership rights may have passed by will or the laws of descent and distribution)
to pay all or a portion of the amount required by the Company for such tax withholding, at such time and in such manner as the Committee shall deem to be appropriate, including by authorizing the Company to withhold from the Shares to be delivered
in settlement, or by agreeing to surrender to the Company on or about the date such tax liability is determinable, Shares having a Fair Market Value on such date equal to the amount of such tax liability or a specified portion of such tax liability.

  
 8. Absence of Tax Gross-Up Payment. There shall be no
tax gross-up on the Restricted Stock Units. 
  
 9. Notices.
Any notice to the Company under this Agreement shall be made in care of the Committee to the office of the General Counsel, at the Company’s main office in King of Prussia, Pennsylvania. All notices under this Agreement shall be deemed to have
been given when hand-delivered or mailed, first class postage prepaid, and shall be irrevocable once given. 
  
 10. Securities Laws. The Committee may from time to time impose any conditions on the Restricted Stock Units (or the underlying Shares) as it deems
necessary or advisable to comply with applicable securities laws. 
  
 11. Award Not to Affect Service. The award granted hereunder shall not confer upon Grantee any right to continue service as an employee and/or director of the Company 
  
 12. Miscellaneous. 
  
 (a) The address for Grantee to which notice, demands and other communications to be given or delivered under or by reason of the
provisions hereof shall be the Grantee’s address as reflected in the Company’s personnel records. 
  
 (b) Grantee authorizes the Company to withhold in accordance with applicable law from any compensation payable to him/her any taxes
required to be withheld by federal, state or local law in connection with this award. 
  
 (c) Any provision for distribution in settlement of Grantee’s Account hereunder shall be by means of bookkeeping entries on the books
of the Company and shall not create in Grantee or any person to whom ownership right may have passed any right to, or claim against any specific assets of the Company, nor result in the creation of any trust or escrow account for Grantee or any
person to whom ownership rights may have passed. Grantee (or any other person entitled to a distribution hereunder) shall be a general creditor of the Company. 
  

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 (d) To the extent not preempted by federal law, the validity, performance, construction
and effect of this award shall be governed by the laws of the Commonwealth of Pennsylvania, without giving effect to principles of conflicts of law. 
  
 (e) To the extent Grantee elects to defer settlement of Restricted Stock Units pursuant to Section 5(b), this Agreement is intended to
constitute part of a “top-hat” plan described in Section 201(2) of ERISA. 
  
 13. Claims Procedure. 
  
 (a) To initiate a claim with respect to the settlement of Restricted Stock Units deferred in accordance with Section 5(b), Grantee (or the person to whom ownership rights may have passed by will or the laws of descent
and distribution) (the “Claimant”) must file a written request with the Company. Upon receipt of such claim, the Company will advise the Claimant within ninety (90) days of receipt of the claim whether the claim is denied. If special
circumstances require more than ninety (90) days for processing, the Claimant will be notified in writing within ninety (90) days of filing the claims than the Company requires up to an additional ninety (90) days to reply. The notice will explain
what special circumstances make an extension necessary and indicate the date a final decision is expected to be made. 
  
 (b) If the claim is denied in whole or in part, the Claimant will be provided a written opinion, in language calculated to be understood
by the Claimant, setting forth (i) the specific reason(s) for the denial of the claim, or any part of it, (ii) specific reference(s) to pertinent provisions of the Plan or this award upon which such denial was based, (iii) a description of any
additional material or information necessary for the Claimant to perfect the claim, and an explanation of why such material or information is necessary, (iv) an explanation of the claim appeal procedure set forth in Section 13(c), below ; and (v) a
statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse determination upon appeal. 
  
 (c) Within sixty (60) days after receiving a notice from the Company that a claim has been denied, in whole or in part, a Claimant (or the
Claimant’s duly authorized representative) may file with the Company a written request for a review of the denial of the claim. The Claimant or his duly authorized representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Company. If the Claimant does not request a review of the initial determination within such sixty (60) days period, the Claimant will be barred and estopped from challenging the determination.

  
 (d) Within sixty (60) days after the
Company’s receipt of a request for review, it will review the initial determination. After considering all materials presented by the Claimant, without regard to whether such materials were submitted or considered in the initial review, the
Company will render a written opinion. The manner and content of the final decision will include the same information described above in Section 13(b) 

  

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with respect to the initial determination. If special circumstances require that the sixty (60) day time period be extended, the Company will so notify the
Claimant and will render the decision as soon as possible, but no later than one hundred twenty (120) days after receipt of the request for review. The notice will explain what special circumstances make an extension necessary and indicate the date
a final decision is expected to be made. Any decision on appeal will be final, conclusive and binding upon all parties. 
  
 IN WITNESS WHEREOF, the Company has caused this Restricted Stock Unit Award Agreement to be executed by its duly authorized officer, and Grantee has executed this
Restricted Stock Unit Award Agreement, in each case as of the date first above written. 
  

									
	 ATTEST:
	 	 	 	 INTERDIGITAL COMMUNICATIONS
 CORPORATION

					
	 BY:
	 	 	 	 	 	 BY:
	 	 
					
	 Name:
	 	 Adrienne G. Juskalian
	 	 	 	 Name:
	 	 William J. Merritt

			
	 ATTEST:
	 	 	 	 GRANTEE:

					
	 BY:
	 	 	 	 	 	 BY:
	 	 
					
	 Name:
	 	 	 	 	 	 Name: 
	 	 

  

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 EXHIBIT “A” 
  
 INTERDIGITAL COMMUNICATIONS CORPORATION 
 RESTRICTED STOCK UNIT DEFERRAL ELECTION FORM 
  
 Grant Date:                     ,
             
  
                      Restricted Stock Units 
  
 Check Only One [Read Carefully and Refer to Footnotes Below for Instructions]: 
  

	 	 ̈	I hereby elect to defer the settlement of
                                        
of my Restricted Stock Units1 until
                                       
 2, (subject to accelerated settlement upon the consummation of a Change in Control Event3 or my cessation of service as a director and/or employee of the Company). 

  

	 	 ̈	I hereby elect to defer the settlement of
                                        
of my Restricted Stock Units1 until my cessation of service as a director and/or employee of the Company (subject to
accelerated settlement upon the consummation of a Change in Control Event3). 

  

	
	 
	 Name

	
	 
	 Date

	1	Pursuant to the requirements of I.R.C. Section 409A and I.R.B. Notice 2005-1, all of the shares awarded are eligible for deferral. Instruction: Indicate
whether all or a portion of the eligible Restricted Stock Units are to be deferred. 

  

	2	Instruction: Insert a date on or after
                             to correspond with each portion of the Restricted Stock Units being
deferred. 

  

	3	As defined in Section 1(c) of the Restricted Stock Unit Award Agreement. 

  

 82000 Stock Award and Incentive Plan

 Exhibit 10.74 
  
 INTERDIGITAL COMMUNICATIONS CORPORATION 
  

  
 2000 Stock Award and Incentive Plan 
 (as amended through June 1, 2005) 
  

  
  

 INTERDIGITAL COMMUNICATIONS CORPORATION 
  

  
 2000 Stock Award and Incentive Plan 
 (as amended through June 1, 2005)

  

  

					
	 	    	 	  	Page

	 1.
	    	 Purpose
	  	1
			
	 2.
	    	 Definitions
	  	1
			
	 3.
	    	 Administration
	  	3
			
	 4.
	    	 Stock Subject to Plan
	  	4
			
	 5.
	    	 Eligibility; Per-Person Award Limitations
	  	5
			
	 6.
	    	 Specific Terms of Awards
	  	6
			
	 7.
	    	 Performance Awards
	  	9
			
	 8.
	    	 Certain Provisions Applicable to Awards
	  	11
			
	 9.
	    	 Change in Control
	  	12
			
	 10.
	    	 Additional Award Forfeiture Provisions
	  	14
			
	 11.
	    	 General Provisions
	  	15

 INTERDIGITAL COMMUNICATIONS CORPORATION 
  
 2000 Stock Award and Incentive Plan 
  
 1. Purpose. The purpose of this 2000 Stock Award and
Incentive Plan (the “Plan”) is to aid InterDigital Communications Corporation, a Pennsylvania corporation (the “Company”), in attracting, retaining, motivating and rewarding employees, non-employee directors, and other persons
who provide substantial services to the Company or its subsidiaries or affiliates, to provide for equitable and competitive compensation opportunities, to encourage long-term service, to recognize individual contributions and reward achievement of
Company goals, and promote the creation of long-term value for shareholders by closely aligning the interests of Participants with those of shareholders. The Plan authorizes stock-based and cash-based incentives for Participants. 
  
 2. Definitions. In addition to the terms defined in
Section 1 above and elsewhere in the Plan, the following capitalized terms used in the Plan have the respective meanings set forth in this Section: 
  
 (a) “Award” means any Option, SAR, Restricted Stock, Deferred Stock, Stock granted as a bonus or in lieu of another award,
Dividend Equivalent, Other Stock-Based Award, or Performance Award, together with any related right or interest, granted to a Participant under the Plan. 
  
 (b) “Beneficiary” means the legal representatives of the Participant’s estate entitled by will or the laws of descent and
distribution to receive the benefits under a Participant’s Award upon a Participant’s death, provided that, if and to the extent authorized by the Committee, a Participant may be permitted to designate a Beneficiary, in which case the
“Beneficiary” instead shall be the person(s) (if any are then surviving), trust(s) or entity(ies) which have been designated by the Participant in his or her most recent written beneficiary designation filed with the Committee to receive
the benefits specified under the Participant’s Award upon such Participant’s death. 
  
 (c) “Board” means the Company’s Board of Directors. 
  
 (d) “Change in Control” and related terms have the meanings specified in Section 9. 
  
 (e) “Code” means the Internal Revenue Code of
1986, as amended. 
  
 (f) “Committee”
means a committee of two or more directors designated by the Board to administer the Plan; provided, however, that, directors appointed or serving as members of a Board committee designated as the Committee shall not be employees of the Company or
any subsidiary or affiliate. In appointing members of the Committee, the Board will consider whether a member is or will be a Qualified Member, but such members are not required to be Qualified Members at the time of appointment or during their term
of service on the Committee. The full Board may perform any function of the Committee hereunder, in which case the term “Committee” shall refer to the Board. Initially, the Compensation and 

 
Stock Option Committee of the Board of Directors will be designated as the “Committee” under the Plan. 
  
 (g) “Covered Employee” means an Eligible Person
who is a Covered Employee as specified in Section 11(j). 
  
 (h) “Deferred Stock” means a right, granted to a Participant under Section 6(e), to receive Stock or other Awards or a combination thereof at the end of a specified deferral period. 
  
 (i) “Dividend Equivalent” means a right, granted
to a Participant under Section 6(g), to receive cash, Stock, other Awards or other property equal in value to all or a specified portion of the dividends paid with respect to a specified number of shares of Stock. 
  
 (j) “Effective Date” means the effective date
specified in Section 11(r). 
  
 (k)
“Eligible Person” has the meaning specified in Section 5. 
  
 (l) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (m) “Fair Market Value” means the fair market value of Stock, Awards or other property as determined by the Committee or under
procedures established by the Committee. Unless otherwise determined by the Committee, the Fair Market Value of Stock shall be the closing sale price reported on the composite tape of the principal stock exchange on which the Stock is listed on the
day as of which such value is being determined or, if there is no sale on that day, then on the last previous day on which a sale was reported. 
  
 (n) “Incentive Stock Option” or “ISO” means any Option designated as an incentive stock option within the meaning of
Code Section 422 and qualifying thereunder. 
  
 (o) “Non-qualified Stock Option” means any Option designated as a non-qualified stock option and not an Incentive Stock Option within the meaning of Code Section 422. 
  
 (p) “Option” means a right, granted to a Participant under Section 6(b), to purchase Stock or
other Awards at a specified price during specified time periods. 
  
 (q) “Other Stock-Based Awards” means Awards granted to a Participant under Section 6(h). 
  
 (r) “Participant” means a person who has been granted an Award under the Plan which remains outstanding, including a person who
is no longer an Eligible Person. 
  
 (s)
“Performance Award” means a conditional right, granted to a Participant under Sections 6(i) and 7, to receive cash, Stock or other Awards or payments, as determined by the Committee, based upon performance criteria specified by the
Committee. 
  
 (t) “Preexisting Plans”
mean the Company’s Non-Qualified Stock Option Plan, 1992 Non-Qualified Stock Option Plan, 1992 Employee Stock Option Plan, 1995 Employee Stock 

 
Option Plan, 1997 Stock Option Plan for Non-Employee Directors, and any other Company stock option plan under which options are outstanding at the Effective
Date. 
  
 (u) “Qualified Member” means
a member of the Committee who is a “Non-Employee Director” within the meaning of Rule 16b-3(b)(3) and an “outside director” within the meaning of Regulation 1.162-27 under Code Section 162(m). 
  
 (v) “Restricted Stock” means Stock granted to a
Participant under Section 6(d) which is subject to certain restrictions and to a risk of forfeiture. 
  
 (w) “Rule 16b-3” means Rule 16b-3, as from time to time in effect and applicable to Participants, promulgated by the Securities
and Exchange Commission under Section 16 of the Exchange Act. 
  
 (x) “Stock” means the Company’s Common Stock, and any other equity securities of the Company that may be substituted or resubstituted for Stock pursuant to Section 11(c). 
  
 (y) “Stock Appreciation Rights” or “SAR”
means a right granted to a Participant under Section 6(c). 
  
 3.
Administration. 
  
 (a)
Authority of the Committee. The Plan shall be administered by the Committee, which shall have full and final authority, in each case subject to and consistent with the provisions of the Plan, to select Eligible Persons to become Participants;
to grant Awards; to determine the type and number of Awards, the dates on which Awards may be exercised and on which the risk of forfeiture or deferral period relating to Awards shall lapse or terminate, the acceleration of any such dates, the
expiration date of any Award, whether, to what extent, and under what circumstances an Award may be settled, or the exercise price of an Award may be paid, in cash, Stock, other Awards, or other property, and other terms and conditions of, and all
other matters relating to, Awards; to prescribe documents evidencing or setting terms of Awards (such Award documents need not be identical for each Participant), amendments thereto, rules and regulations for the administration of the Plan and
amendments thereto, and standardized terms and conditions of awards and amendments thereto (which, if so specified by the Committee, shall be deemed to be incorporated into and a part of this Plan); to construe and interpret the Plan and Award
documents and correct defects, supply omissions or reconcile inconsistencies therein; and to make all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the Plan. Decisions of the Committee
with respect to the administration and interpretation of the Plan shall be final, conclusive, and binding upon all persons interested in the Plan, including Participants, Beneficiaries, transferees under Section 11(b) and other persons claiming
rights from or through a Participant, and shareholders. The foregoing notwithstanding, the Board shall perform the functions of the Committee for purposes of granting Awards under the Plan to non-employee directors (authority with respect to other
aspects of non-employee director awards is not exclusive to the Board, however). 
  
 (b) Manner of Exercise of Committee Authority. At any time that a member of the Committee is not a Qualified Member, (i) any action
of the Committee relating to an Award 

  

 - 3 - 

 
intended by the Committee to qualify as “performance-based compensation” within the meaning of Code Section 162(m) and regulations thereunder may
be taken by a subcommittee, designated by the Committee or the Board, composed solely of two or more Qualified Members, and (ii) any action relating to an Award granted or to be granted to a Participant who is then subject to Section 16 of the
Exchange Act in respect of the Company may be taken either by such a subcommittee or by the Committee but with each such member who is not a Qualified Member abstaining or recusing himself or herself from such action, provided that, upon such
abstention or recusal, the Committee remains composed of two or more Qualified Members. Such action, authorized by such a subcommittee or by the Committee upon the abstention or recusal of such non-Qualified Member(s), shall be the action of the
Committee for purposes of the Plan. The express grant of any specific power to the Committee, and the taking of any action by the Committee, shall not be construed as limiting any power or authority of the Committee. The Committee may delegate to
officers or managers of the Company or any subsidiary or affiliate, or committees thereof, the authority, subject to such terms as the Committee shall determine, to perform such functions, including administrative functions, as the Committee may
determine, to the extent that such delegation will not result in the loss of an exemption under Rule 16b-3(d) for Awards granted to Participants subject to Section 16 of the Exchange Act in respect of the Company and will not cause Awards intended
to qualify as “performance-based compensation” under Code Section 162(m) to fail to so qualify. 
  
 (c) Limitation of Liability. The Committee and each member thereof, and any person acting pursuant to authority delegated by the
Committee, shall be entitled, in good faith, to rely or act upon any report or other information furnished by any executive officer, other officer or employee of the Company or a subsidiary or affiliate, the Company’s independent auditors,
consultants or any other agents assisting in the administration of the Plan. Members of the Committee, any person acting pursuant to authority delegated by the Committee, and any officer or employee of the Company or a subsidiary or affiliate acting
at the direction or on behalf of the Committee or a delegee shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the extent permitted by law, be fully indemnified and
protected by the Company with respect to any such action or determination. 
  
 4. Stock Subject to Plan. 
  
 (a) Overall Number of Shares Available for Delivery. Subject to adjustment as provided in Section 11(c), the total number of shares of Stock reserved and available for delivery in connection with Awards under
the Plan shall be (i) 2.2 million plus (ii) the number of shares that, immediately prior to the Effective Date, remain available for issuance under the Preexisting Plans plus and (iii) the number of shares subject to awards under the Preexisting
Plans which become available in accordance with Section 4(b) after the Effective Date; provided, however, that shares carried forward from a Preexisting Plan pursuant to clause (ii) shall be available for initial grant only before the time such
Preexisting Plan would have expired in accordance with its terms; and provided further, that the total number of shares which may be issued and delivered in connection with Awards other than Options and SARs shall not exceed 40% of the total number
of shares reserved under the Plan. Any shares of Stock delivered under the Plan shall consist of authorized and unissued shares or treasury shares. 
  
 (b) Share Counting Rules. The Committee may adopt reasonable counting procedures to ensure appropriate counting, avoid double
counting (as, for example, in the case of tandem or substitute awards) and make adjustments if the number of shares of Stock actually delivered differs from the number of shares previously counted in connection with an Award. Shares 

  

 - 4 - 

 
subject to an Award or an award under a Preexisting Plan that is canceled, expired, forfeited, settled in cash or otherwise terminated without a delivery of
shares to the Participant will again be available for Awards, and shares withheld in payment of the exercise price or taxes relating to an Award or Preexisting Plan award and shares equal to the number surrendered in payment of any exercise price or
taxes relating to an Award or Preexisting Plan award shall be deemed to constitute shares not delivered to the Participant and shall be deemed again to be available for Awards under the Plan. In addition, in the case of any Award granted in
substitution for an award of a company or business acquired by the Company or a subsidiary or affiliate, shares issued or issuable in connection with such substitute Award shall not be counted against the number of shares reserved under the Plan,
but shall be available under the Plan by virtue of the Company’s assumption of the plan or arrangement of the acquired company or business. This Section 4(b) shall apply to the number of shares reserved and available for ISOs only to the extent
consistent with applicable regulations relating to ISOs under the Code. The order in which Shares will be deemed to be made subject to Awards under the Plan shall first be Shares resulting from Preexisting Plans (in the order of the expiration date
of such Preexisting Plans) and then the Shares reserved under clause (i) of Section 4(a). 
  
 5. Eligibility; Per-Person Award Limitations. Awards may be granted under the Plan only to Eligible Persons. For purposes of the Plan, an “Eligible Person” means an employee of the
Company or any subsidiary or affiliate, including any executive officer, a non-employee director of the Company, a consultant or other person who provides substantial services to the Company or a subsidiary or affiliate, and any person who has been
offered employment by the Company or a subsidiary or affiliate, provided that such prospective employee may not receive any payment or exercise any right relating to an Award until such person has commenced employment with the Company or a
subsidiary or affiliate. An employee on leave of absence may be considered as still in the employ of the Company or a subsidiary or affiliate for purposes of eligibility for participation in the Plan, if so determined by the Committee. A joint
venture in which the Company or a subsidiary has a substantial direct or indirect equity investment may be deemed an affiliate, if so determined by the Committee, but such determination shall be solely for purposes of this Plan. In each calendar
year during any part of which the Plan is in effect, an Eligible Person may be granted Awards intended to qualify as “performance-based compensation” under Code Section 162(m) under each of Section 6(b), 6(c), 6(d), 6(e), 6(f), 6(g) or
6(h) relating to up to his or her Annual Limit (such Annual Limit to apply separately to the type of Award authorized under each specified subsection, except that the limitation applies to Dividend Equivalents under Section 6(g) only if such
Dividend Equivalents are granted separately from and not as a feature of another Award). A Participant’s Annual Limit, in any year during any part of which the Participant is then eligible under the Plan, shall equal 300,000 shares plus the
amount of the Participant’s unused Annual Limit relating to the same type of Award as of the close of the previous year, subject to adjustment as provided in Section 11(c). In the case of an Award which is not valued in a way in which the
limitation set forth in the preceding sentence would operate as an effective limitation satisfying Treasury Regulation 1.162-27(e)(4) (including a Performance Award under Section 7 not related to an Award specified in Section 6), an Eligible Person
may not be granted Awards authorizing the earning during any calendar year of an amount that exceeds the Participant’s Annual Limit, which for this purpose shall equal $1.5 million plus the amount of the Participant’s unused cash Annual
Limit as of the close of the previous year (this limitation is separate and not affected by the number of Awards granted during such calendar year subject to the limitation in the preceding sentence). For this purpose, (i) “earning” means
satisfying performance conditions so that an amount becomes payable, without regard to whether it is to be paid currently or on a deferred basis or continues to be subject to any service requirement or other non-performance condition, and (ii) a
Participant’s Annual Limit is used to the extent an amount or number of shares may be potentially earned or paid under an Award, regardless of whether such amount or shares are in fact earned or paid. 
  

 - 5 - 

 6. Specific Terms of Awards. 
  
 (a) General. Awards may be granted on the terms and conditions set forth in this Section 6. In
addition, the Committee may impose on any Award or the exercise thereof, at the date of grant or thereafter (subject to Section 11(e)), such additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall
determine, including terms requiring forfeiture of Awards in the event of termination of employment or service by the Participant and terms permitting a Participant to make elections relating to his or her Award. The Committee shall retain full
power and discretion with respect to any term or condition of an Award that is not mandatory under the Plan. The Committee may require payment of consideration for an Award, except as otherwise limited by the Plan. 
  
 (b) Options. The Committee is authorized to grant
Options to Participants on the following terms and conditions: 
  
 (i) Exercise Price. The exercise price per share of Stock purchasable under an Option (including both ISOs and Non-qualified Stock Options) shall be determined by the Committee, but such exercise price shall be
not less than the Fair Market Value of a share of Stock on the date of grant of such Option, subject to Sections 6(f) and 8(a), unless the Committee finds there to exist extraordinary circumstances such that the grant of a Non-Qualified Stock Option
with an exercise price less than such Fair Market Value is appropriate. 
  
 (ii) Option Term; Time and Method of Exercise. The Committee shall determine the term of each Option, provided that in no event shall the term of any ISO or SAR in tandem therewith exceed a period of ten years
from the date of grant. The Committee shall determine the time or times at which or the circumstances under which an Option may be exercised in whole or in part (including based on achievement of performance goals and/or future service
requirements), the methods by which such exercise price may be paid or deemed to be paid and the form of such payment (subject to Section 11(k)), including, without limitation, cash, Stock, other Awards or awards granted under other plans of the
Company or any subsidiary or affiliate, or other property (including notes and other contractual obligations of Participants to make payment on a deferred basis, such as through “cashless exercise” arrangements, to the extent permitted by
applicable law), and the methods by or forms in which Stock will be delivered or deemed to be delivered in satisfaction of Options to Participants (including deferred delivery of shares representing the Option “profit,” at the election of
the Participant or as mandated by the Committee, with such deferred shares subject to any vesting, forfeiture or other terms as the Committee may specify). 
  
 (iii) ISOs. The terms of any ISO granted under the Plan shall comply in all respects with the provisions of Code Section 422,
including but not limited to the requirement that no ISO shall be granted more than ten years after the Effective Date. 
  
 (c) Stock Appreciation Rights. The Committee is authorized to grant SAR’s to Participants on the following terms and
conditions: 
  
 (i) Right to Payment. An
SAR shall confer on the Participant to whom it is granted a right to receive, upon exercise thereof, the excess of (A) the Fair Market Value of one share of Stock on the date of exercise (or, in the case of a “Limited SAR,” the Fair Market
Value determined by reference to the Change in Control Price, as defined under Section 9(d) hereof) over (B) the grant price of the SAR as determined by the Committee. 
  

 - 6 - 

 (ii) Other Terms. The Committee shall determine at the date of grant or
thereafter, the time or times at which and the circumstances under which a SAR may be exercised in whole or in part (including based on achievement of performance goals and/or future service requirements), the method of exercise, method of
settlement, form of consideration payable in settlement, method by or forms in which Stock will be delivered or deemed to be delivered to Participants, and whether or not a SAR shall be free-standing or in tandem or combination with any other Award.
Limited SARs that may only be exercised in connection with a Change in Control or other event as specified by the Committee may be granted on such terms, not inconsistent with this Section 6(c), as the Committee may determine. 
  
 (d) Restricted Stock. The Committee is authorized to
grant Restricted Stock to Participants on the following terms and conditions: 
  
 (i) Grant and Restrictions. Restricted Stock shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose, which restrictions may
lapse separately or in combination at such times, under such circumstances (including based on achievement of performance goals and/or future service requirements), in such installments or otherwise and under such other circumstances as the
Committee may determine at the date of grant or thereafter. Except to the extent restricted under the terms of the Plan and any Award document relating to the Restricted Stock, a Participant granted Restricted Stock shall have all of the rights of a
shareholder, including the right to vote the Restricted Stock and the right to receive dividends thereon (subject to any mandatory reinvestment or other requirement imposed by the Committee). 
  
 (ii) Forfeiture. Except as otherwise determined by
the Committee, upon termination of employment or service during the applicable restriction period, Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by the Company; provided that the Committee may
provide, by rule or regulation or in any Award document, or may determine in any individual case, that restrictions or forfeiture conditions relating to Restricted Stock will lapse in whole or in part, including in the event of terminations
resulting from specified causes. 
  
 (iii)
Certificates for Stock. Restricted Stock granted under the Plan may be evidenced in such manner as the Committee shall determine. If certificates representing Restricted Stock are registered in the name of the Participant, the Committee may
require that such certificates bear an appropriate legend referring to the terms, conditions and restrictions applicable to such Restricted Stock, that the Company retain physical possession of the certificates, and that the Participant deliver a
stock power to the Company, endorsed in blank, relating to the Restricted Stock. 
  
 (iv) Dividends and Splits. As a condition to the grant of an Award of Restricted Stock, the Committee may require that any
dividends paid on a share of Restricted Stock shall be either (A) paid with respect to such Restricted Stock at the dividend payment date in cash, in kind, or in a number of shares of unrestricted Stock having a Fair Market Value equal to the amount
of such dividends, or (B) automatically reinvested in additional Restricted Stock or held in kind, which shall be subject to the same terms as applied to the original Restricted Stock to which it relates, or (C) deferred as to payment, either as a
cash deferral or with the amount or value thereof automatically deemed reinvested in shares of Deferred Stock, other Awards or other investment vehicles, subject to such terms as the Committee shall determine or permit a Participant to elect. Unless
otherwise determined by the Committee, Stock distributed in connection with a Stock split or Stock dividend, and 

  

 - 7 - 

 
other property distributed as a dividend, shall be subject to restrictions and a risk of forfeiture to the same extent as the Restricted Stock with respect
to which such Stock or other property has been distributed. 
  
 (e) Deferred Stock. The Committee is authorized to grant Deferred Stock to Participants, which are rights to receive Stock, other Awards, or a combination thereof at the end of a specified deferral period,
subject to the following terms and conditions: 
  
 (i) Award and Restrictions. Issuance of Stock will occur upon expiration of the deferral period specified for an Award of Deferred Stock by the Committee (or, if permitted by the Committee, as elected by the Participant). In
addition, Deferred Stock shall be subject to such restrictions on transferability, risk of forfeiture and other restrictions, if any, as the Committee may impose, which restrictions may lapse at the expiration of the deferral period or at earlier
specified times (including based on achievement of performance goals and/or future service requirements), separately or in combination, in installments or otherwise, and under such other circumstances as the Committee may determine at the date of
grant or thereafter. Deferred Stock may be satisfied by delivery of Stock, other Awards, or a combination thereof (subject to Section 11(k)), as determined by the Committee at the date of grant or thereafter. 
  
 (ii) Forfeiture. Except as otherwise determined by
the Committee, upon termination of employment or service during the applicable deferral period or portion thereof to which forfeiture conditions apply (as provided in the Award document evidencing the Deferred Stock), all Deferred Stock that is at
that time subject to such forfeiture conditions shall be forfeited; provided that the Committee may provide, by rule or regulation or in any Award document, or may determine in any individual case, that restrictions or forfeiture conditions relating
to Deferred Stock will lapse in whole or in part, including in the event of terminations resulting from specified causes. 
  
 (iii) Dividend Equivalents. Unless otherwise determined by the Committee, Dividend Equivalents on the specified number of shares of
Stock covered by an Award of Deferred Stock shall be either (A) paid with respect to such Deferred Stock at the dividend payment date in cash or in shares of unrestricted Stock having a Fair Market Value equal to the amount of such dividends, or (B)
deferred with respect to such Deferred Stock, either as a cash deferral or with the amount or value thereof automatically deemed reinvested in additional Deferred Stock, other Awards or other investment vehicles having a Fair Market Value equal to
the amount of such dividends, as the Committee shall determine or permit a Participant to elect. 
  
 (f) Bonus Stock and Awards in Lieu of Obligations. The Committee is authorized to grant Stock as a bonus, or to grant Stock or
other Awards in lieu of obligations of the Company or a subsidiary or affiliate to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, subject to such terms as shall be determined by the Committee.

  
 (g) Dividend Equivalents. The
Committee is authorized to grant Dividend Equivalents to a Participant, entitling the Participant to receive cash, Stock, other Awards, or other property equivalent to all or a portion of the dividends paid with respect to a specified number of
shares of Stock. Dividend Equivalents may be awarded on a free-standing basis or in connection with another Award. The Committee may provide that Dividend Equivalents shall be paid or distributed when accrued or shall be deemed to have been
reinvested in additional Stock, Awards, or other investment vehicles, and subject to restrictions on transferability, risks of forfeiture and such other terms as the Committee may specify. 
  

 - 8 - 

 (h) Other Stock-Based Awards. The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Stock or factors that may influence the value of Stock,
including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Stock, purchase rights for Stock, Awards with value and payment contingent upon performance of the Company or business units
thereof or any other factors designated by the Committee, and Awards valued by reference to the book value of Stock or the value of securities of or the performance of specified subsidiaries or affiliates or other business units. The Committee shall
determine the terms and conditions of such Awards. Stock delivered pursuant to an Award in the nature of a purchase right granted under this Section 6(h) shall be purchased for such consideration, paid for at such times, by such methods, and in such
forms, including, without limitation, cash, Stock, other Awards, notes, or other property, as the Committee shall determine. Cash awards, as an element of or supplement to any other Award under the Plan, may also be granted pursuant to this Section
6(h). 
  
 (i) Performance Awards.
Performance Awards, denominated in cash or in Stock or other Awards, may be granted by the Committee in accordance with Section 7. 
  
 7. Performance Awards 
  
 (a) Performance Awards Generally. The Committee is authorized to grant Performance Awards on the terms and conditions specified in
this Section 7. Performance Awards may be denominated as a cash amount, number of shares of Stock, or specified number of other Awards (or a combination) which may be earned upon achievement or satisfaction of performance conditions specified by the
Committee. In addition, the Committee may specify that any other Award shall constitute a Performance Award by conditioning the right of a Participant to exercise the Award or have it settled, and the timing thereof, upon achievement or satisfaction
of such performance conditions as may be specified by the Committee. The Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any performance conditions, and may exercise its
discretion to reduce or increase the amounts payable under any Award subject to performance conditions, except as limited under Sections 7(b) in the case of a Performance Award intended to qualify as “performance-based compensation” under
Code Section 162(m). 
  
 (b) Performance
Awards Granted to Covered Employees. If the Committee determines that a Performance Award to be granted to an Eligible Person who is designated by the Committee as likely to be a Covered Employee should qualify as “performance-based
compensation” for purposes of Code Section 162(m), the grant, exercise and/or settlement of such Performance Award shall be contingent upon achievement of a preestablished performance goal and other terms set forth in this Section 7(b).

  
 (i) Performance Goal Generally. The
performance goal for such Performance Awards shall consist of one or more business criteria and a targeted level or levels of performance with respect to each of such criteria, as specified by the Committee consistent with this Section 7(b). The
performance goal shall be objective and shall otherwise meet the requirements of Code Section 162(m) and regulations thereunder (including Regulation 1.162-27 and successor regulations thereto), including the requirement that the level or levels of
performance targeted by the Committee result in the achievement of performance goals being “substantially uncertain.” The Committee may determine that such Performance Awards shall be granted, exercised and/or settled upon achievement of
any one performance goal or that two or more of the performance goals must be achieved as a 

  

 - 9 - 

 
condition to grant, exercise and/or settlement of such Performance Awards. Performance goals may differ for Performance Awards granted to any one Participant
or to different Participants. 
  
 (ii)
Business Criteria. One or more of the following business criteria for the Company, on a consolidated basis, and/or for specified subsidiaries or affiliates or other business units of the Company shall be used by the Committee in establishing
performance goals for such Performance Awards: (1) net sales; (2) earnings from operations, earnings before or after taxes, earnings before or after interest, depreciation, amortization, or extraordinary or special items; (3) net income or net
income per common share (basic or diluted); (4) return on assets (gross or net), return on investment, return on capital, or return on equity; (5) cash flow, free cash flow, cash flow return on investment (discounted or otherwise), net cash provided
by operations, or cash flow in excess of cost of capital; (6) interest expense after taxes; (7) economic value created; (8) operating margin or profit margin; (9) stock price or total shareholder return; (10) average cash balance or cash position;
and (11) strategic business criteria, consisting of one or more objectives based on meeting specified product development, strategic partnering, licensing, research and development, market penetration, geographic business expansion goals, cost
targets, customer satisfaction, employee satisfaction, management of employment practices and employee benefits, supervision of litigation and information technology, and goals relating to acquisitions or divestitures of subsidiaries, affiliates or
joint ventures. The targeted level or levels of performance with respect to such business criteria may be established at such levels and in such terms as the Committee may determine, in its discretion, including in absolute terms, as a goal relative
to performance in prior periods, or as a goal compared to the performance of one or more comparable companies or an index covering multiple companies. 
  
 (iii) Performance Period; Timing for Establishing Performance Goals; Per-Person Limit. Achievement of performance goals in respect
of such Performance Awards shall be measured over a performance period of up to one year or more than one year, as specified by the Committee. A performance goal shall be established not later than the earlier of (A) 90 days after the beginning of
any performance period applicable to such Performance Award or (B) the time 25% of such performance period has elapsed. In all cases, the maximum Performance Award of any Participant shall be subject to the limitation set forth in Section 5.

  
 (iv) Performance Award Pool. The
Committee may establish a Performance Award pool, which shall be an unfunded pool, for purposes of measuring performance of the Company in connection with Performance Awards. The amount of such Performance Award pool shall be based upon the
achievement of a performance goal or goals based on one or more of the business criteria set forth in Section 7(b)(ii) during the given performance period, as specified by the Committee in accordance with Section 7(b)(iv). The Committee may specify
the amount of the Performance Award pool as a percentage of any of such business criteria, a percentage thereof in excess of a threshold amount, or as another amount which need not bear a strictly mathematical relationship to such business criteria.

  
 (v) Settlement of Performance Awards;
Other Terms. Settlement of such Performance Awards shall be in cash, Stock, other Awards or other property, in the discretion of the Committee. The Committee may not exercise discretion to increase any such amount payable to a Covered Employee
in respect of a Performance Award subject to this Section 7(b). Any settlement which changes the form of payment from that originally specified shall be implemented in a manner such that the Performance Award and other related Awards do 

  

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not, solely for that reason, fail to qualify as “performance-based compensation” for purposes of Code Section 162(m). The Committee shall specify
the circumstances in which such Performance Awards shall be paid or forfeited in the event of termination of employment by the Participant or other event (including a Change in Control) prior to the end of a performance period or settlement of such
Performance Awards. 
  
 (c) Written
Determinations. Determinations by the Committee as to the establishment of performance goals, the amount potentially payable in respect of Performance Awards, the level of actual achievement of the specified performance goals relating to
Performance Awards and the amount of any final Performance Award shall be recorded in writing in the case of Performance Awards intended to qualify under Section 162(m). Specifically, the Committee shall certify in writing, in a manner conforming to
applicable regulations under Section 162(m), prior to settlement of each such Award granted to a Covered Employee, that the performance objective relating to the Performance Award and other material terms of the Award upon which settlement of the
Award was conditioned have been satisfied. 
  
 8. Certain
Provisions Applicable to Awards. 
  
 (a)
Stand-Alone, Additional, Tandem, and Substitute Awards. Awards granted under the Plan may, in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or in substitution or exchange for, any other Award or
any award granted under another plan of the Company, any subsidiary or affiliate, or any business entity to be acquired by the Company or a subsidiary or affiliate, or any other right of a Participant to receive payment from the Company or any
subsidiary or affiliate. Awards granted in addition to or in tandem with other Awards or awards may be granted either as of the same time as or a different time from the grant of such other Awards or awards. Subject to Section 11(k), the Committee
may determine that, in granting a new Award, the in-the-money value of any surrendered Award or award may be applied to reduce the exercise price of any Option, grant price of any SAR, or purchase price of any other Award. 
  
 (b) Term of Awards. The term of each Award shall be
for such period as may be determined by the Committee, subject to the express limitations set forth in Section 6(b)(ii). 
  
 (c) Form and Timing of Payment under Awards; Deferrals. Subject to the terms of the Plan (including Section 11(k)) and any
applicable Award document, payments to be made by the Company or a subsidiary or affiliate upon the exercise of an Option or other Award or settlement of an Award may be made in such forms as the Committee shall determine, including, without
limitation, cash, Stock, other Awards or other property, and may be made in a single payment or transfer, in installments, or on a deferred basis. The settlement of any Award may be accelerated, and cash paid in lieu of Stock in connection with such
settlement, in the discretion of the Committee or upon occurrence of one or more specified events (subject to Section 11(k)). Installment or deferred payments may be required by the Committee (subject to Section 11(e)) or permitted at the election
of the Participant on terms and conditions established by the Committee. Payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of
Dividend Equivalents or other amounts in respect of installment or deferred payments denominated in Stock. 
  
 (d) Exemptions from Section 16(b) Liability. With respect to a Participant who is then subject to the reporting requirements of
Section 16(a) of the Exchange Act in respect of the Company, the Committee shall use its best efforts to implement transactions under the Plan and administer the Plan in a manner that will ensure that each transaction with respect to such a
Participant is exempt from liability under Rule 16b-3 or otherwise not subject to liability under 

  

 - 11 - 

 
Section 16(b)), except that this provision shall not limit sales by such a Participant, and such a Participant may engage in other non-exempt transactions
under the Plan. The Committee may authorize the Company to repurchase any Award or shares of Stock deliverable or delivered in connection with any Award (subject to Section 11(k)) to enable a Participant who is subject to Section 16 of the Exchange
Act to avoid incurring liability under Section 16(b). Unless otherwise specified by the Participant, equity securities or derivative securities acquired under the Plan which are disposed of by a Participant shall be deemed to be disposed of in the
order acquired by the Participant. 
  
 9. Change in
Control. 
  
 (a) Effect of
“Change in Control” on Non-Performance Based Awards. In the event of a “Change in Control,” the following provisions shall apply to non-performance based Awards, including Awards as to which performance conditions previously
have been satisfied or are deemed satisfied under Section 9(b), unless otherwise provided by the Committee in the Award document: 
  
 (i) All deferral of settlement, forfeiture conditions and other restrictions applicable to Awards granted under the Plan shall lapse and
such Awards shall be fully payable as of the time of the Change in Control without regard to deferral and vesting conditions, except to the extent of any waiver by the Participant or other express election to defer beyond a Change in Control and
subject to applicable restrictions set forth in Section 11(a); 
  
 (ii) Any Award carrying a right to exercise that was not previously exercisable and vested shall become fully exercisable and vested as of the time of the Change in Control and shall remain exercisable and vested for
the balance of the stated term of such Award without regard to any termination of employment or service by the Participant other than a termination for “cause” (as defined in any employment or severance agreement between the Company or a
subsidiary or affiliate and the Participant then in effect or, if none, as defined by the Committee and in effect at the time of the Change in Control), subject only to applicable restrictions set forth in Section 11(a); and 
  
 (iii) The Committee may, in its discretion, determine to
extend to any Participant who holds an Option the right to elect, during the 60-day period immediately following the Change in Control, in lieu of acquiring the shares of Stock covered by such Option, to receive in cash the excess of the Change in
Control Price over the exercise price of such Option, multiplied by the number of shares of Stock covered by such Option, and to extend to any Participant who holds other types of Awards denominated in shares the right to elect, during the 60-day
period immediately following the Change in Control, in lieu of receiving the shares of Stock covered by such Award, to receive in cash the Change in Control Price multiplied by the number of shares of Stock covered by such Award. 
  
 (b) Effect of “Change in Control” on
Performance-Based Awards. In the event of a “Change in Control,” with respect to an outstanding Award subject to achievement of performance goals and conditions, such performance goals and conditions shall be deemed to be met or
exceeded if and to the extent so provided by the Committee in the Award document governing such Award or other agreement with the Participant. 
  

 - 12 - 

 (c) Definition of “Change in Control.” A “Change in Control”
shall be deemed to have occurred if, after the Effective Date, there shall have occurred any of the following: 
  
 (i) Any “person,” as such term is used in Section 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or
other fiduciary holding securities under an employee benefit plan of the Company, or any company owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership of stock of the Company),
acquires voting securities of the Company and immediately thereafter is a “50% Beneficial Owner.” For purposes of this provision, a “50% Beneficial Owner” shall mean a person who is the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then-outstanding voting securities; 
  
 (ii) During any period of two consecutive years commencing
on or after the Effective Date, individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person (as defined above) who has entered into an agreement with the Company to effect
a transaction described in subsections (i), (iii), (iv) or (v) of this definition) whose election by the Board or nomination for election by the Company’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors then
still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved (the “Continuing Directors”) cease for any reason to constitute at least a majority thereof;

  
 (iii) The shareholders of the Company have
approved a merger, consolidation, recapitalization, or reorganization of the Company, or a reverse stock split of any class of voting securities of the Company, or the consummation of any such transaction if shareholder approval is not obtained,
other than any such transaction which would result in at least 50% of the combined voting power of the voting securities of the Company or the surviving entity outstanding immediately after such transaction being beneficially owned by the persons
who were shareholders of the Company immediately prior to the transaction in substantially the same proportion as their ownership of the voting power immediately prior to the transaction; provided that, for purposes of this Section 9(c)(iii), such
continuity of ownership (and preservation of relative voting power) shall be deemed to be satisfied if the failure to meet such 50% threshold (or to substantially preserve such relative ownership of the voting securities) is due solely to the
acquisition of voting securities by an employee benefit plan of the Company, such surviving entity or a subsidiary thereof; and provided further, that, if consummation of the corporate transaction referred to in this Section 9(c)(iii) is subject, at
the time of such approval by shareholders, to the consent of any government or governmental agency or approval of the shareholders of another entity or other material contingency, no Change in Control shall occur until such time as such consent and
approval has been obtained and any other material contingency has been satisfied; 
  
 (iv) The shareholders of the Company accept shares in a share exchange in which the shareholders of the Company immediately before such
share exchange do not or will not own directly or indirectly immediately following such share exchange more than 50% of the combined voting power of the outstanding voting securities of the corporation resulting from or surviving such share exchange
in substantially the same proportion as the ownership of the Voting Securities outstanding immediately before such share exchange; 
  
 (v) The shareholders of the Company have approved a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company’s assets (or any transaction having a similar effect); provided that, if consummation of the transaction referred to in this Section 9(c)(v) is subject, at the time of such
approval by shareholders, to the consent of any government or governmental agency or approval of the shareholders of another entity or other material 

  

 - 13 - 

 
contingency, no Change in Control shall occur until such time as such consent and approval has been obtained and any other material contingency has been
satisfied; and 
  
 (vi) any other event which the
Board of Directors of the Company determines shall constitute a Change in Control for purposes of this Plan. 
  
 (d) Definition of “Change in Control Price.” The “Change in Control Price” means an amount in cash equal to the
higher of (i) the amount of cash and fair market value of property that is the highest price per share paid (including extraordinary dividends) in any transaction triggering the Change in Control or any liquidation of shares following a sale of
substantially all assets of the Company, or (ii) the highest Fair Market Value per share at any time during the 60-day period preceding and 60-day period following the Change in Control. 
  
 10. Additional Award Forfeiture Provisions. 
  
 (a) Events Triggering Forfeiture. Notwithstanding any other provision of this Plan, the forfeitures
specified in Section 10(a) will be triggered if the Participant’s employment or engagement is terminated by the Company and the Board makes a determination that the Participant (i) has engaged in any type of disloyalty to the Company, including
without limitation, insubordination, fraud, embezzlement, theft or dishonesty in the course of his employment or engagement, or (ii) has been convicted of a felony, or (iii) has disclosed any confidential or proprietary information without the
consent of the Company or (iv) has breached the terms of any written confidentiality agreement or any non-competition agreement with the Company in any material respect, all unexercised options and awards not yet settled held by such the Participant
shall terminate upon the earlier of the date of termination of employment or engagement for “cause” of the date of such a finding at any time during the Participant’s employment by the Company or a subsidiary or affiliate or during
the one-year period following termination of such employment. 
  
 (b) Committee Discretion. The Committee may, in its discretion, waive in whole or in part the Company’s right to forfeiture under this Section, but no such waiver shall be effective unless evidenced by a
writing signed by a duly authorized officer of the Company. In addition, the Committee may impose additional conditions on Awards, by inclusion of appropriate provisions in the document evidencing or governing any such Award. 
  

 - 14 - 

 11. General Provisions. 
  
 (a) Compliance with Legal and Other Requirements. The Company may, to the extent deemed necessary or
advisable by the Committee, postpone the issuance or delivery of Stock or payment of other benefits under any Award until completion of such registration or qualification of such Stock or other required action under any federal or state law, rule or
regulation, listing or other required action with respect to any stock exchange or automated quotation system upon which the Stock or other securities of the Company are listed or quoted, or compliance with any other obligation of the Company, as
the Committee may consider appropriate, and may require any Participant to make such representations, furnish such information and comply with or be subject to such other conditions as it may consider appropriate in connection with the issuance or
delivery of Stock or payment of other benefits in compliance with applicable laws, rules, and regulations, listing requirements, or other obligations. The foregoing notwithstanding, in connection with a Change in Control, the Company shall take or
cause to be taken no action, and shall undertake or permit to arise no legal or contractual obligation, that results or would result in any postponement of the issuance or delivery of Stock or payment of benefits under any Award or the imposition of
any other conditions on such issuance, delivery or payment, to the extent that such postponement or other condition would represent a greater burden on a Participant than existed on the 90th day preceding the Change in Control. 
  
 (b) Limits on Transferability; Beneficiaries. No
Award or other right or interest of a Participant under the Plan shall be pledged, hypothecated or otherwise encumbered or subject to any lien, obligation or liability of such Participant to any party (other than the Company or a subsidiary or
affiliate thereof), or assigned or transferred by such Participant otherwise than by will or the laws of descent and distribution or to a Beneficiary upon the death of a Participant, and such Awards or rights that may be exercisable shall be
exercised during the lifetime of the Participant only by the Participant or his or her guardian or legal representative, except that Awards and other rights (other than ISOs and SARs in tandem therewith) may be transferred to one or more transferees
during the lifetime of the Participant, and may be exercised by such transferees in accordance with the terms of such Award, but only if and to the extent such transfers are permitted by the Committee, subject to any terms and conditions which the
Committee may impose thereon (including limitations the Committee may deem appropriate in order that offers and sales under the Plan will meet applicable requirements of registration forms under the Securities Act of 1933 specified by the Securities
and Exchange Commission). A Beneficiary, transferee, or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award document applicable to such Participant,
except as otherwise determined by the Committee, and to any additional terms and conditions deemed necessary or appropriate by the Committee. 
  
 (c) Adjustments. In the event that any large, special and non-recurring dividend or other distribution (whether in the form of cash
or property other than Stock), recapitalization, forward or reverse split, Stock dividend, reorganization, merger, consolidation, spin-off, combination, repurchase, share exchange, liquidation, dissolution or other similar corporate transaction or
event affects the Stock such that an adjustment is determined by the Committee to be appropriate under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and kind of shares of Stock which
may be delivered in connection with Awards granted thereafter, (ii) the number and kind of shares of Stock by which annual per-person Award limitations are measured under Section 5, (iii) the number and kind of shares of Stock subject to or
deliverable in respect of outstanding Awards and (iv) the exercise price, grant price or purchase price relating to any Award or, if deemed appropriate, the Committee may make provision for a payment of cash or property to the holder of an
outstanding Option (subject to Section 11(k)). In addition, the Committee is authorized to make adjustments 

  

 - 15 - 

 
in the terms and conditions of, and the criteria included in, Awards (including Performance Awards and performance goals and any hypothetical funding pool
relating thereto) in recognition of unusual or nonrecurring events (including, without limitation, events described in the preceding sentence, as well as acquisitions and dispositions of businesses and assets) affecting the Company, any subsidiary
or affiliate or other business unit, or the financial statements of the Company or any subsidiary or affiliate, or in response to changes in applicable laws, regulations, accounting principles, tax rates and regulations or business conditions or in
view of the Committee’s assessment of the business strategy of the Company, any subsidiary or affiliate or business unit thereof, performance of comparable organizations, economic and business conditions, personal performance of a Participant,
and any other circumstances deemed relevant; provided that no such adjustment shall be authorized or made if and to the extent that the existence of such authority (i) would cause Options, SARs, or Performance Awards granted under Section 8 to
Participants designated by the Committee as Covered Employees and intended to qualify as “performance-based compensation” under Code Section 162(m) and regulations thereunder to otherwise fail to qualify as “performance-based
compensation” under Code Section 162(m) and regulations thereunder, or (ii) would cause the Committee to be deemed to have authority to change the targets, within the meaning of Treasury Regulation 1.162-27(e)(4)(vi), under the performance
goals relating to Options or SARs granted to Covered Employees and intended to qualify as “performance-based compensation” under Code Section 162(m) and regulations thereunder. 
  
 (d) Tax Provisions. 
  
 (i) Withholding. The Company and any subsidiary or affiliate is authorized to withhold from any Award
granted, any payment relating to an Award under the Plan, including from a distribution of Stock, or any payroll or other payment to a Participant, amounts of withholding and other taxes due or potentially payable in connection with any transaction
involving an Award, and to take such other action as the Committee may deem advisable to enable the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority
shall include authority to withhold or receive Stock or other property and to make cash payments in respect thereof in satisfaction of a Participant’s withholding obligations, either on a mandatory or elective basis in the discretion of the
Committee. Other provisions of the Plan notwithstanding, only the minimum amount of Stock deliverable in connection with an Award necessary to satisfy statutory withholding requirements will be withheld. 
  
 (ii) Required Consent to and Notification of Code Section
83(b) Election. No election under Section 83(b) of the Code (to include in gross income in the year of transfer the amounts specified in Code Section 83(b)) or under a similar provision of the laws of a jurisdiction outside the United States may
be made unless expressly permitted by the terms of the Award document or by action of the Committee in writing prior to the making of such election. In any case in which a Participant is permitted to make such an election in connection with an
Award, the Participant shall notify the Company of such election within ten days of filing notice of the election with the Internal Revenue Service or other governmental authority, in addition to any filing and notification required pursuant to
regulations issued under Code Section 83(b) or other applicable provision. 
  
 (iii) Requirement of Notification Upon Disqualifying Disposition Under Code Section 421(b). If any Participant shall make any disposition of shares of Stock delivered pursuant to the exercise of an Incentive
Stock Option under the circumstances described in Code Section 421(b) (relating to certain disqualifying dispositions), such Participant shall notify the Company of such disposition within ten days thereof. 
  

 - 16 - 

 (e) Changes to the Plan. The Board may amend, suspend or terminate the Plan or the
Committee’s authority to grant Awards under the Plan without the consent of shareholders or Participants; provided, however, that any amendment to the Plan shall be submitted to the Company’s shareholders for approval not later than the
earliest annual meeting for which the record date is after the date of such Board action if such shareholder approval is required by any federal or state law or regulation or the rules of any stock exchange or automated quotation system on which the
Stock may then be listed or quoted, and the Board may otherwise, in its discretion, determine to submit other amendments to the Plan to shareholders for approval; and provided further, that, without the consent of an affected Participant, no such
Board action may materially and adversely affect the rights of such Participant under any outstanding Award. Without the approval of shareholders, the Committee will not amend or replace previously granted Options in a transaction that constitutes a
“repricing,” as such term is used in Instruction 3 to Item 402(b)(2)(iv) of Regulation S-K, as promulgated by the Securities and Exchange Commission. With regard to other terms of Awards, the Committee shall have no authority to waive or
modify any such Award term after the Award has been granted to the extent the waived or modified term would be mandatory under the Plan for any Award newly granted at the date of the waiver or modification. 
  
 (f) Right of Setoff. The Company or any subsidiary or
affiliate may, to the extent permitted by applicable law, deduct from and set off against any amounts the Company or a subsidiary or affiliate may owe to the Participant from time to time, including amounts payable in connection with any Award, owed
as wages, fringe benefits, or other compensation owed to the Participant, such amounts as may be owed by the Participant to the Company, including but not limited to amounts owed under Section 10(a), although the Participant shall remain liable for
any part of the Participant’s payment obligation not satisfied through such deduction and setoff. By accepting any Award granted hereunder, the Participant agrees to any deduction or setoff under this Section 11(f). 
  
 (g) Unfunded Status of Awards; Creation of Trusts.
The Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With respect to any payments not yet made to a Participant or obligation to deliver Stock pursuant to an Award, nothing contained in the Plan or
any Award shall give any such Participant any rights that are greater than those of a general creditor of the Company; provided that the Committee may authorize the creation of trusts and deposit therein cash, Stock, other Awards or other property,
or make other arrangements to meet the Company’s obligations under the Plan. Such trusts or other arrangements shall be consistent with the “unfunded” status of the Plan unless the Committee otherwise determines with the consent of
each affected Participant. 
  
 (h)
Nonexclusivity of the Plan. Neither the adoption of the Plan by the Board nor its submission to the shareholders of the Company for approval shall be construed as creating any limitations on the power of the Board or a committee thereof to
adopt such other incentive arrangements, apart from the Plan, as it may deem desirable, including incentive arrangements and awards which do not qualify under Code Section 162(m), and such other arrangements may be either applicable generally or
only in specific cases. 
  
 (i) Payments in
the Event of Forfeitures; Fractional Shares. Unless otherwise determined by the Committee, in the event of a forfeiture of an Award with respect to which a Participant paid cash consideration, the Participant shall be repaid the amount of such
cash consideration. No fractional shares of Stock shall be issued or delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, other Awards or other property shall 

  

 - 17 - 

 
be issued or paid in lieu of such fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated.

  
 (j) Compliance with Code Section
162(m). It is the intent of the Company that Options and SARs granted to Covered Employees and other Awards designated as Awards to Covered Employees subject to Section 7 shall constitute qualified “performance-based compensation”
within the meaning of Code Section 162(m) and regulations thereunder, unless otherwise determined by the Committee at the time of allocation of an Award. Accordingly, the terms of Sections 7(b), and (c), including the definitions of Covered Employee
and other terms used therein, shall be interpreted in a manner consistent with Code Section 162(m) and regulations thereunder. The foregoing notwithstanding, because the Committee cannot determine with certainty whether a given Participant will be a
Covered Employee with respect to a fiscal year that has not yet been completed, the term Covered Employee as used herein shall mean only a person designated by the Committee as likely to be a Covered Employee with respect to a specified fiscal year.
If any provision of the Plan or any Award document relating to a Performance Award that is designated as intended to comply with Code Section 162(m) does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations
thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements, and no provision shall be deemed to confer upon the Committee or any other person discretion to increase the amount of
compensation otherwise payable in connection with any such Award upon attainment of the applicable performance objectives. 
  
 (k) Certain Limitations Relating to Accounting Treatment of Awards. Other provisions of the Plan notwithstanding, the
Committee’s authority under the Plan (including under Sections 8(c), 8(d), 11(c) and 11(d)) is limited to the extent necessary to ensure that any Option or other Award of a type that the Committee has intended to be subject to fixed accounting
with a measurement date at the date of grant or the date performance conditions are satisfied under APB 25 shall not become subject to “variable” accounting solely due to the existence of such authority, unless the Committee specifically
determines that the Award shall remain outstanding despite such “variable” accounting. In addition, other provisions of the Plan notwithstanding, (i) if any right under this Plan would cause a transaction to be ineligible for
pooling-of-interests accounting that would, but for the right hereunder, be eligible for such accounting treatment, such right shall be automatically adjusted so that pooling-of-interests accounting shall be available, including by substituting
Stock or cash having a Fair Market Value equal to any cash or Stock otherwise payable in respect of any right to cash which would cause the transaction to be ineligible for pooling-of-interests accounting, and (ii) if the authority of the Board or
the Continuing Directors under Section 9(c) would cause a transaction to be ineligible for pooling-of-interests accounting that would, but for such authority, be eligible for such accounting treatment, such authority shall be limited to the extent
necessary so that such transaction would be eligible for pooling-of-interests accounting. 
  
 (l) Governing Law. The validity, construction, and effect of the Plan, any rules and regulations relating to the Plan and any Award
document shall be determined in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to principles of conflicts of laws, and applicable provisions of federal law. 
  
 (m) Awards to Participants Outside the United States.
The Committee may modify the terms of any Award under the Plan made to or held by a Participant who is then resident or primarily employed outside of the United States in any manner deemed by the Committee to be necessary or appropriate in order
that such Award shall conform to laws, regulations, and customs of the country in which the Participant is then resident or primarily employed, or so that the value and other benefits of the Award to the Participant, as affected by foreign tax laws
and 

  

 - 18 - 

 
other restrictions applicable as a result of the Participant’s residence or employment abroad shall be comparable to the value of such an Award to a
Participant who is resident or primarily employed in the United States. An Award may be modified under this Section 11(m) in a manner that is inconsistent with the express terms of the Plan, so long as such modifications will not contravene any
applicable law or regulation or result in actual liability under Section 16(b) for the Participant whose Award is modified. 
  
 (n) Limitation on Rights Conferred under Plan. Neither the Plan nor any action taken hereunder shall be construed as (i) giving any
Eligible Person or Participant the right to continue as an Eligible Person or Participant or in the employ or service of the Company or a subsidiary or affiliate, (ii) interfering in any way with the right of the Company or a subsidiary or affiliate
to terminate any Eligible Person’s or Participant’s employment or service at any time, (iii) giving an Eligible Person or Participant any claim to be granted any Award under the Plan or to be treated uniformly with other Participants and
employees, or (iv) conferring on a Participant any of the rights of a shareholder of the Company unless and until the Participant is duly issued or transferred shares of Stock in accordance with the terms of an Award or an Option is duly exercised.
Except as expressly provided in the Plan and an Award document, neither the Plan nor any Award document shall confer on any person other than the Company and the Participant any rights or remedies thereunder. 
  
 (o) Severability; Entire Agreement. If any of the
provisions of this Plan or any Award document is finally held to be invalid, illegal or unenforceable (whether in whole or in part), such provision shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality or
unenforceability, and the remaining provisions shall not be affected thereby; provided, that, if any of such provisions is finally held to be invalid, illegal, or unenforceable because it exceeds the maximum scope determined to be acceptable to
permit such provision to be enforceable, such provision shall be deemed to be modified to the minimum extent necessary to modify such scope in order to make such provision enforceable hereunder. The Plan and any Award documents contain the entire
agreement of the parties with respect to the subject matter thereof and supersede all prior agreements, promises, covenants, arrangements, communications, representations and warranties between them, whether written or oral with respect to the
subject matter thereof. 
  
 (p) Awards under
Preexisting Plans. Upon approval of the Plan by shareholders of the Company as required under Section 11(r), no further awards shall be granted under the Preexisting Plans. Outstanding awards under such Preexisting Plans shall remain subject to
the terms thereof. 
  
 (q) References to Legal
and Regulatory Provisions. References in this Plan to any provision of law, including the Code and the Exchange Act, or rule or regulation (including accounting principles and interpretations) shall include subsequently adopted amendments and
any successor provisions, rules or regulations. 
  
 (r) Plan Effective Date and Termination. The Plan shall become effective if, and at such time as, the shareholders of the Company have approved it by the affirmative votes of the holders of a majority of the voting securities of the
Company present, or represented, and entitled to vote on the subject matter at a duly held meeting of shareholders. Unless earlier terminated by action of the Board of Directors, the Plan will remain in effect until such time as no Stock remains
available for delivery under the Plan and the Company has no further rights or obligations under the Plan with respect to outstanding Awards under the Plan. 
  

 - 19 -

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