Document:

exv10w1

Exhibit 10.1

SERACARE LIFE SCIENCES, INC.

AMENDED
AND RESTATED 2001 STOCK INCENTIVE PLAN
(Amended and Restated as of
February 27, 2008)

	 	 	 	 	 	 	 
	THE PLAN	 	 	1	 
	1.1

	 	Purpose
	 	 	1	 
	1.2

	 	Administration and Authorization; Power and Procedure
	 	 	1	 
	1.3

	 	Participation
	 	 	2	 
	1.4

	 	Shares Available for Awards; Share Limits
	 	 	2	 
	1.5

	 	Grant of Awards
	 	 	2	 
	1.6

	 	Award Period
	 	 	3	 
	1.7

	 	Limitations on Exercise and Vesting of Awards
	 	 	3	 
	1.8

	 	No Transferability; Limited Exception to Transfer Restrictions
	 	 	3	 
	 
	 	 	 	 	 	 
	OPTIONS	 	 	4	 
	2.1

	 	Grants
	 	 	4	 
	2.2

	 	Option Price; Vesting
	 	 	4	 
	2.3

	 	Limitations on Grant and Terms of Incentive Stock Options
	 	 	4	 
	2.4

	 	Limits on 10% Holders
	 	 	4	 
	2.5

	 	Waiver of Restrictions
	 	 	5	 
	2.6

	 	Effects of Termination of Employment or Service
	 	 	5	 
	2.7

	 	Options and Rights in Substitution for Stock Options Granted by Other Corporations
	 	 	5	 
	 
	 	 	 	 	 	 
	RESTRICTED STOCK AND STOCK UNIT AWARDS	 	 	6	 
	3.1

	 	Grants
	 	 	6	 
	3.2

	 	Restrictions
	 	 	6	 
	3.3

	 	Return to the Corporation
	 	 	6	 
	 
	 	 	 	 	 	 
	NON-EMPLOYEE DIRECTOR OPTIONS	 	 	7	 
	4.1

	 	Participation
	 	 	7	 
	4.2

	 	Annual Option Grants
	 	 	7	 
	4.3

	 	Option Price
	 	 	7	 
	4.4

	 	Option Period and Exercisability
	 	 	7	 
	4.5

	 	Termination of Directorship
	 	 	7	 
	4.6

	 	Adjustments
	 	 	8	 
	4.7

	 	Termination Upon a Change in Control or Other Event
	 	 	8	 
	 
	 	 	 	 	 	 
	OTHER PROVISIONS	 	 	8	 
	5.1

	 	Rights of Eligible Persons, Participants and Beneficiaries
	 	 	8	 
	5.2

	 	Adjustments; Acceleration
	 	 	8	 
	5.3

	 	Effect of Termination of Service on Awards
	 	 	10	 
	5.4

	 	Compliance with Laws
	 	 	10	 
	5.5

	 	Tax Matters
	 	 	11	 
	5.6

	 	Plan and Award Amendments, Termination and Suspension
	 	 	11	 
	5.7

	 	Privileges of Stock Ownership
	 	 	12	 
	5.8

	 	Effective Date of the Plan
	 	 	12	 
	5.9

	 	Term of the Plan
	 	 	12	 
	5.10

	 	Governing Law/Construction/Severability
	 	 	12	 
	5.11

	 	Captions
	 	 	13	 
	5.12

	 	Effect of Change of Subsidiary Status
	 	 	13	 
	5.13

	 	Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other Corporation
	 	 	13	 

 

 

	 	 	 	 	 	 	 
	5.14

	 	Non-Exclusivity of Plan
	 	 	13	 
	5.15

	 	No Corporate Action Restriction
	 	 	13	 
	5.16

	 	Other Company Benefit and Compensation Program
	 	 	13	 
	 
	 	 	 	 	 	 
	DEFINITIONS	 	 	13	 
	6.1

	 	Definitions
	 	 	13	 

 

 

SERACARE LIFE SCIENCES, INC.

AMENDED AND RESTATED 2001 STOCK INCENTIVE PLAN

(Amended and Restated as of February 27, 2008)

	1.	 	THE PLAN

     1.1 Purpose

     The purpose of this Plan is to promote the success of the Company by providing an additional
means through the grant of Awards to attract, motivate, retain and reward eligible persons with
awards and incentives for high levels of individual performance and improved financial performance
of the Company. “Corporation” means SeraCare Life Sciences, Inc. and “Company” means the
Corporation and its Subsidiaries, collectively. These terms and other capitalized terms are defined
in Article 6.

     1.2 Administration and Authorization; Power and Procedure.

     (a) Committee. This Plan shall be administered by and all Awards to Eligible Persons shall be
authorized by the Committee. Action of the Committee with respect to the administration of this
Plan shall be taken pursuant to a majority vote or by written consent of its members.

     (b) Plan Awards; Interpretation; Powers of Committee. Subject to the express provisions of
this Plan, the Committee shall have the authority:

     (i) to determine eligibility and, from among those persons determined to be eligible, the
particular Eligible Persons who will receive Awards;

     (ii) to grant Awards to Eligible Persons, determine the price at which securities will be
offered or awarded and the amount of securities to be offered or awarded to any of such persons,
and determine the other specific terms and conditions of such Awards consistent with the express
limits of this Plan, and establish the installments (if any) in which such Awards shall become
exercisable or shall vest, or determine that no delayed exercisability or vesting is required, and
establish the events of termination or reversion of such Awards;

     (iii) to approve the forms of Award Agreements (which need not be identical either as to type
of award or among Participants);

     (iv) to construe and interpret this Plan and any agreements defining the rights and
obligations of the Company and Participants under this Plan, further define the terms used in this
Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this
Plan;

     (v) to cancel, modify, or waive the Corporation’s rights with respect to, or modify,
discontinue, suspend, or terminate any or all outstanding Awards held by Eligible Employees,
subject to any required consent under Section 5.6;

     (vi) to accelerate or extend the exercisability or extend the term of any or all such
outstanding Awards within the maximum ten-year term of Awards under Section 1.6; and

     (vii) to make all other determinations and take such other action as contemplated by this Plan
or as may be necessary or advisable for the administration of this Plan and the effectuation of its
purposes.

     The provisions of Section 4 relating to Non-Employee Director Options shall be automatic and, to
the maximum extent possible, self-effectuating. Although the discretion of the Committee extends to
such Options, Board approval or ratification shall be required for any material amendment to any
such Option.

     (c) Binding Determinations/Liability Limitation. Any action taken by, or inaction of, the
Corporation, any

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Subsidiary, the Board or the Committee relating or pursuant to this Plan and within its
authority hereunder or under applicable law shall be within the absolute discretion of that entity
or body and shall be conclusive and binding upon all persons. Neither the Board nor any Committee,
nor any member thereof or person acting at the direction thereof shall be liable for any act,
omission, interpretation, construction or determination made in good faith in connection with this
Plan (or any Award made under this Plan), and all such persons shall be entitled to indemnification
and reimbursement by the Company in respect of any claim, loss, damage or expense (including,
without limitation, attorneys’ fees) arising or resulting therefrom to the fullest extent permitted
by law and/or under any directors and officers liability insurance coverage that may be in effect
from time to time.

     (d) Reliance on Experts. In making any determination or in taking or not taking any action
under this Plan, the Committee or the Board, as the case may be, may obtain and may rely upon the
advice of experts, including professional advisors to the Corporation. No director, officer or
agent of the Company shall be liable for any such action or determination taken or made or omitted
in good faith.

     (e) Delegation. The Committee, to the extent permissible under applicable law, may delegate
such of its powers with respect to this Plan as it determines to one or more individuals (including
committees of individuals) who are officers or employees of the Company. In the case of any such
delegation, the term “Committee” shall be deemed to include the person or persons to whom such
delegation has been made, to the extent of such delegation.

     1.3 Participation

     Awards may be granted by the Committee only to those persons that the Committee determines to
be Eligible Persons. An Eligible Person who has been granted an Award may, if otherwise eligible,
be granted additional Awards if the Committee shall so determine.

     1.4 Shares Available for Awards; Share Limits.

     (a) Shares Available. Subject to the provisions of Section 5.2, the capital stock that may be
delivered under this Plan shall be shares of the Corporation’s authorized but unissued Common Stock
and any shares of its Common Stock held as treasury shares. The shares may be delivered for any
lawful consideration.

     (b) Share Limits. The maximum number of shares of Common Stock that may be delivered pursuant
to Awards granted to Eligible Persons under this Plan shall not exceed 1,800,000 shares (the “Share
Limit”). The maximum number of shares of Common Stock that may be delivered pursuant to options
qualified as Incentive Stock Options granted under this Plan is 1,000,000 shares. The maximum
number of shares subject to those options and stock appreciation rights that are granted during any
calendar year to any individual shall, in the case of each such type of Award, be limited to
1,350,000 and the maximum individual limit on the number of shares in the aggregate subject to all
Awards (other than options and stock appreciation rights) that during any calendar year are granted
under this Plan to any individual shall be 1,350,000. Each of the foregoing numerical limits shall
be subject to adjustment as contemplated by this Section 1.4 and Section 5.2.

     (c) Share Reservation; Replenishment and Reissue of Unvested Awards. No Award may be granted
under this Plan unless, on the date of grant, the sum of (i) the maximum number of shares issuable
at any time pursuant to such Award, plus (ii) the number of shares that have previously been issued
pursuant to Awards granted under this Plan, other than reacquired shares available for reissue
consistent with any applicable legal limitations, plus (iii) the maximum number of shares that may
be issued at any time after such date of grant pursuant to Awards that are outstanding on such
date, does not exceed the Share Limit. Shares that are subject to or underlie Awards which expire
or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason
are not paid or delivered under this Plan, as well as reacquired shares, shall again, except to the
extent prohibited by law, be available for subsequent Awards under the Plan. Except as limited by
law, if an Award is or may be settled only in cash, such Award need not be counted against any of
the limits under this Section 1.4.

     1.5 Grant of Awards.

     Subject to the express provisions of this Plan, the Committee shall determine the number of
shares of Common Stock subject to each Award, the price (if any) to be paid for the shares or the
Award and, in the case of

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performance share awards, in addition to matters addressed in Section 1.2(b), the specific
objectives, goals and performance criteria (such as an increase in sales, market value, earnings or
book value over a base period, the years of service before vesting, the relevant job classification
or level of responsibility or other factors) that further define the terms of the performance share
award. Each Award shall be evidenced by an Award Agreement signed by the Corporation and, if
required by the Committee, by the Participant. The Award Agreement shall set forth the material
terms and conditions of the Award established by the Committee consistent with the specific
provisions of this Plan.

     1.6 Award Period.

     Each Award and all executory rights or obligations under the related Award Agreement shall
expire on such date (if any) as shall be determined by the Committee, but not later than ten (10)
years after the Award Date.

     1.7 Limitations on Exercise and Vesting of Awards.

     (a) Provisions for Exercise. Unless the Committee otherwise expressly provides, no Award
shall be exercisable or shall vest until at least six months after the initial Award Date, and once
exercisable an Award shall remain exercisable until the expiration or earlier termination of the
Award.

     (b) Procedure. Any exercisable Award shall be deemed to be exercised when the Secretary of
the Corporation receives written notice of such exercise from the Participant, together with any
required payment made in accordance with Section 2.2.

     (c) Fractional Shares/Minimum Issue. Fractional share interests shall be disregarded, but may
be accumulated. The Committee, however, may determine in the case of Eligible Persons that cash,
other securities, or other property will be paid or transferred in lieu of any fractional share
interests.

     1.8 No Transferability; Limited Exception to Transfer Restrictions.

     (a) Limit On Exercise and Transfer. Unless otherwise expressly provided in (or pursuant to)
this Section 1.8, by applicable law and by the Award Agreement, as the same may be amended, (i) all
Awards are non-transferable and shall not be subject in any manner to sale, transfer, anticipation,
alienation, assignment, pledge, encumbrance or charge, (ii) Awards shall be exercised only by the
Participant, and (iii) amounts payable or shares issuable pursuant to an Award shall be delivered
only to (or for the account of) the Participant.

     (b) Exceptions. The Committee may permit Awards to be exercised by and paid only to certain
persons or entities related to the Participant, including but not limited to members of the
Participant’s immediate family, charitable institutions, or trusts or other entities whose
beneficiaries or beneficial owners are members of the Participant’s immediate family or charitable
institutions, or to such other related persons or entities as may be approved by the Committee,
pursuant to such conditions and procedures as the Committee may establish. Any permitted transfer
shall be subject to the condition that the Committee receive evidence satisfactory to it that the
transfer is being made for essentially estate or tax planning purposes on a gratuitous or donative
basis and without consideration (other than nominal consideration or in exchange for an interest in
a qualified transferee).

     (c) Further Exceptions to Limits On Transfer. The exercise and transfer restrictions in
Section 1.8(a) shall not apply to:

     (i) transfers to the Corporation,

     (ii) the designation of a beneficiary to receive benefits in the event of the Participant’s
death or, if the Participant has died, transfers to or exercise by the Participant’s beneficiary,
or, in the absence of a validly designated beneficiary, transfers by will or the laws of descent
and distribution,

     (iii) transfers pursuant to a QDRO order if approved or ratified by the Committee,

     (iv) if the Participant has suffered a disability, permitted transfers or exercises on behalf
of the Participant by

3

 

his or her legal representative, or

     (v) the authorization by the Committee of “cashless exercise” procedures with third parties
who provide financing for the purpose of (or who otherwise facilitate) the exercise of Awards
consistent with applicable laws and the express authorization of the Committee.

Notwithstanding the foregoing or anything in Section 1.8(b) to the contrary, an ISO may be
transferred only by will or the laws of descent and distribution, and during the lifetime of the
Eligible Person to whom it was granted it may be exercised only by such Eligible Person.

	2.	 	OPTIONS.

     2.1 Grants.

     One or more Options may be granted under this Article to any Eligible Person. Each Option
granted shall be deemed to be designated by the Committee, on the date of grant, as a Nonqualified
Stock Option, unless affirmatively designated in the applicable Award Agreement as an Incentive
Stock Option.

     2.2 Option Price; Vesting.

     (a) Pricing Limits. The purchase price per share of the Common Stock covered by each Option
shall be determined by the Committee at the time of the Award, but in no case shall it be less than
100% (110% in the case of an Incentive Stock Option granted to a Participant described in Section
2.4) of the Fair Market Value of the Common Stock on the date of grant.

     (b) Payment Provisions. The purchase price of any shares purchased on exercise of an Option
granted under this Article shall be paid in full at the time of each purchase in one or a
combination of the following methods: (i) in cash or by electronic funds transfer; (ii) by check
payable to the order of the Corporation; (iii) if authorized by the Committee, by a cashless
exercise or net exercise pursuant to such rules as the Committee may adopt; (iv) by notice and
third party payment in such manner as may be authorized by the Committee; (v) by the delivery of
shares of Common Stock of the Corporation already owned by the Participant, or (vi) by any other
means acceptable to the Corporation, provided, however, that the Committee may in its absolute
discretion limit the Participant’s ability to exercise an Award by a cashless or net exercise or by
delivering such shares; and further provided, however, that the Corporation shall not, directly or
indirectly, extend or maintain credit, or arrange for the extension of credit, in the form of a
personal loan to or for any director or executive officer of the Corporation, under any exercise
method sanctioned above or otherwise, in violation of Section 402 of the Sarbanes-Oxley Act of
2002. Shares of Common Stock used to satisfy the exercise price of an Option shall be valued at
their Fair Market Value on the date of exercise.

     (c) Vesting. Unless otherwise provided by the Committee in the applicable Award Agreement,
each Option shall vest as to one-third of the number of shares subject thereto on each of the
first, second, and third anniversaries of the Award Date of the Option, subject to earlier
termination pursuant to Section 2.6 and Section 5.2.

     2.3 Limitations on Grant and Terms of Incentive Stock Options.

     (a) Option Period. Each Option and all rights thereunder shall expire no later than 10 years
after the Award Date.

     (b) Other Code Limits. Incentive Stock Options may only be granted to Eligible Employees of
the Corporation or a Subsidiary that satisfies the other eligibility requirements of the Code.
There shall be imposed in any Award Agreement relating to Incentive Stock Options such other terms
and conditions as from time to time are required in order that the Option be an “incentive stock
option” as that term is defined in Section 422 of the Code.

     2.4 Limits on 10% Holders.

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     No Incentive Stock Option may be granted to any person who, at the time the Option is granted,
owns (or is deemed to own under Section 424(d) of the Code) shares of outstanding Common Stock
possessing more than 10% of the total combined voting power of all classes of stock of the
Corporation, unless the exercise price of such Option is at least 110% of the Fair Market Value of
the stock subject to the Option and such Option by its terms is not exercisable after the
expiration of five years from the date such Option is granted.

     2.5 Waiver of Restrictions.

     Subject to Section 1.4 and Section 5.6 and the specific limitations on Awards contained in
this Plan, the Committee from time to time may authorize, generally or in specific cases only, for
the benefit of any Eligible Person any adjustment in the vesting schedule, the restrictions upon or
(subject to Section 2.3(b)) the term of, an Award granted under this Article by cancellation of an
outstanding Award and a subsequent regranting of an Award, by amendment, by substitution of an
outstanding Award, by waiver or by other legally valid means.

     2.6 Effects of Termination of Employment or Service.

     (a) Options — Resignation or Dismissal. If the Participant’s employment by (or other service
specified in the Award Agreement to) the Company terminates for any reason (the date of such
termination being referred to as the “Severance Date”) other than Retirement, Total Disability or
death, or for Cause (as determined in the discretion of the Committee), the Participant shall have,
unless otherwise provided in the Award Agreement, three months after the Severance Date to exercise
any Option to the extent it shall have become exercisable on the Severance Date. In the case of a
termination for Cause, the Option shall terminate on the Severance Date. In other cases, the
Option, to the extent not exercisable on the Severance Date, shall terminate.

     (b) Options — Death or Disability. If the Participant’s employment by (or specified service
to) the Company terminates as a result of Total Disability or death, the Participant, Participant’s
Personal Representative or his or her Beneficiary, as the case may be, shall have, unless otherwise
provided in the Award Agreement, until 12 months after the Severance Date to exercise any Option to
the extent it shall have become exercisable by the Severance Date. Any Option to the extent not
exercisable on the Severance Date shall terminate.

     (c) Options — Retirement. If the Participant’s employment by (or specified service to) the
Company terminates as a result of Retirement, the Participant, Participant’s Personal
Representative or his or her Beneficiary, as the case may be, shall have, unless otherwise provided
in the Award Agreement, until 12 months after the Severance Date to exercise any Nonqualified Stock
Option (three months after the Severance Date in the case of an Incentive Stock Option) to the
extent it shall have become exercisable by the Severance Date. The Option, to the extent not
exercisable on the Severance Date, shall terminate.

     (d) Committee Discretion. Notwithstanding the foregoing provisions of this Section 2.6, in
the event of, or in anticipation of, a termination of employment or service with the Company for
any reason, other than discharge for Cause, the Committee may, in its discretion, increase the
portion of the Participant’s Award available to the Participant, or Participant’s Beneficiary or
Personal Representative, as the case may be, or, subject to the provisions of Section 1.6, extend
the exercisability period, upon such terms as the Committee shall determine and expressly set forth
in or by amendment to the Award Agreement; provided, however, that the Committee shall take due
consideration of the implications of any such amendment under Section 409A of the Code and under
Generally Accepted Accounting Principles applicable to the Company.

     2.7 Options and Rights in Substitution for Stock Options Granted by Other Corporations

     Options and Stock Appreciation Rights may be granted to Eligible Persons under this Plan in
substitution for employee stock options granted by other entities to persons who are or who will
become Eligible Persons in respect of the Company, in connection with a distribution, merger or
reorganization by or with the granting entity or an affiliated entity, or the acquisition by the
Company, directly or indirectly, of all or a substantial part of the stock or assets of the other
entity.

5

 

3. RESTRICTED STOCK AND STOCK UNIT AWARDS.

     Subject to any applicable limitations under law and to such rules and procedures as the
Committee may establish from time to time:

     3.1 Grants.

     (a) Restricted Stock. The Committee may, in its discretion, grant one or more Restricted
Stock Awards to any Eligible Person. Each Restricted Stock Award Agreement shall specify the number
of shares of Common Stock to be issued to the Participant, the date of such issuance, the
consideration for such shares (but not less than the minimum lawful consideration under applicable
state law) by the Participant, the extent (if any) to which dividends or other distributions with
respect to, or amounts exchanged for, such shares shall be subject to restriction, and the
restrictions (which may be based on performance criteria, passage of time or other factors or any
combination thereof) imposed on such shares and the conditions of release or lapse of such
restrictions. Such restrictions shall not lapse earlier than six months after the Award Date,
except to the extent the Committee may otherwise provide in its sole discretion. Stock certificates
or book entries evidencing shares of Restricted Stock pending the lapse of the restrictions
(“Restricted Shares”) shall bear a legend or notation making appropriate reference to the
restrictions imposed hereunder and (if in certificate form) shall be held by the Corporation or by
a third party designated by the Committee until the restrictions on such shares shall have lapsed
and the shares shall have vested in accordance with the provisions of the Award and Section 1.7.
Upon issuance of the Restricted Stock Award, the Participant may be required to provide such
further assurance and documents as the Committee may require to enforce the restrictions.

     (b) Stock Units. The Committee may, in its discretion, authorize and grant to any Eligible
Person a Stock Unit Award or the crediting of Stock Units for services rendered or to be rendered
or in lieu of other compensation, consistent with other applicable terms of this Plan, may permit
an Eligible Person to irrevocably elect to defer by means of Stock Units or receive in Stock Units
all or a portion of any Award hereunder, or may grant Stock Units in lieu of, in exchange for, in
respect of, or in addition to any other Compensation or Award under this Plan. The specific terms,
conditions, and provisions relating to each Stock Unit grant or election, including the applicable
vesting and payout provisions of the Stock Units and the form of payment to be made at or following
the vesting thereof, shall be set forth in or pursuant to the applicable agreement or Award and any
relevant Company deferred compensation plan, in form substantially as approved by the Committee.

     (c) Payouts. The Committee in the applicable Award Agreement or the relevant Company deferred
compensation plan may permit the Participant to elect the form and time of payout of vested Stock
Units on such conditions or subject to such procedures as the Committee may impose, and may permit
Restricted Stock or Stock Unit offsets or other provision for payment of any applicable taxes that
may be due on the crediting, vesting or payment in respect of the Stock Units.

     3.2 Restrictions.

     (a) Pre-Vesting Restraints. Except as provided in Section 3.1 and 1.8, Restricted Shares
comprising any Restricted Stock Award and rights in respect of Stock Unit Awards may not be sold,
assigned, transferred, pledged or otherwise disposed of or encumbered, either voluntarily or
involuntarily, until the restrictions on Restricted Shares have lapsed and the shares issuable
pursuant to the Stock Unit Award have been issued.

     (b) Dividend and Voting Rights. Unless otherwise provided in the applicable Award Agreement,
a Participant receiving a Restricted Stock Award shall be entitled to vote such shares but shall
not be entitled to dividends on any of the shares until the shares have vested. Such dividends
shall be retained in a restricted account until the shares have vested and shall revert to the
Corporation if they fail to vest.

     (c) Cash Payments. If the Participant shall have paid or received cash (including any
payments in respect of dividends) in connection with the Restricted Stock Award or Stock Unit
Award, the Award Agreement shall specify the extent (if any) to which such amounts shall be
returned (with or without an earnings factor) as to any Restricted Shares or Stock Unit Awards
which cease to be eligible for vesting.

     3.3 Return to the Corporation.

     Unless the Committee otherwise expressly provides, Restricted Shares or Stock Units that
remain subject to conditions to vesting upon restrictions at the time of termination of employment
or service or are subject to other

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conditions to vesting that have not been satisfied by the time specified in the applicable
Award Agreement shall not vest and shall be returned to the Corporation or cancelled, as the case
may be, unless the Committee otherwise provides in the applicable terms of the Award.

4. NON-EMPLOYEE DIRECTOR OPTIONS

     4.1 Participation.

     Options under this Article 4 shall be made only to Non-Employee Directors and shall be
evidenced by award agreements between the recipients and the Company.

     4.2 Annual Option Grants.

     (a) Annual Awards. Commencing with the Corporation’s annual meeting of stockholders held in
2008, on the date of, but immediately following, each of the Corporation’s annual meeting of
stockholders in each year during the term of the Plan there shall be automatically granted (without
any action by the Committee or the Board) the following Nonqualified Stock Options (the Award Date
of which shall be the date of such annual meeting): (i) an Option to purchase 15,000 shares of
Common Stock to each Non-Employee Director, except the Chairman of the Board; (ii) an Option to
purchase 25,000 shares of Common Stock to the Chairman of the Board, provided the Chairman is also
a Non-Employee Director; (iii) an Option to purchase 2,500 shares of Common Stock to each member of
the Audit Committee of the Board who is also a Non-Employee Director other than the Chairman of the
Audit Committee; and (iv) an Option to purchase 5,000 shares of Common Stock to the Chairman of the
Audit Committee of the Board, provided the Chairman is also a Non-Employee Director.

     (b) Maximum Number of Shares. Annual grants that would otherwise exceed the maximum number of
shares under Section 1.4(a) shall be prorated within such limitation. A Non-Employee Director shall
not receive more than one Nonqualified Stock Option under this Section 4.2 in any calendar year.

     4.3 Option Price.

     The purchase price per share of the Common Stock covered by each Option granted pursuant to
Section 4.2 hereof shall be 100 percent of the Fair Market Value of the Common Stock on the Award
Date. The exercise price of any Option granted under this Article 4 shall be paid in full at the
time of each purchase in one or a combination of the following methods: (i) in cash or by
electronic funds transfer; (ii) by check payable to the order of the Corporation; (iii) if
authorized by the Committee, by a cashless exercise or net exercise pursuant to such rules as the
Committee may adopt; (iv) by notice and third party payment in such manner as may be authorized by
the Committee; (v) by the delivery of shares of Common Stock of the Corporation already owned by
the Participant, or (vi) by any other means acceptable to the Committee, provided, however, that
the Committee may in its absolute discretion limit the Participant’s ability to exercise an Option
by a cashless or net exercise or by delivering such shares; and further provided, however, that the
Corporation shall not, directly or indirectly, extend or maintain credit, or arrange for the
extension of credit, in the form of a personal loan to or for any director or executive officer of
the Corporation, under any exercise method sanctioned above or otherwise, in violation of Section
402 of the Sarbanes-Oxley Act of 2002. Shares of Common Stock used to satisfy the exercise price of
an Option shall be valued at their Fair Market Value on the date of exercise.

     4.4 Option Period and Exercisability.

     Each Option granted under this Article 4 and all rights or obligations thereunder shall expire
five years after the Award Date and shall be subject to earlier termination as provided below. Each
Option granted under Section 4.2 shall be fully vested and exercisable as of the applicable Award
Date.

     4.5 Termination of Directorship.

     Unless otherwise provided in the Award Agreement, if a Non-Employee Director’s services as a
member of the Board of Directors terminate for any reason, an Option granted pursuant to this
Article held by such Participant

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shall remain exercisable for six months after the date of such termination or until the
expiration of the stated term of such Option, whichever first occurs.

     4.6 Adjustments.

     Options granted under this Article 4 shall be subject to adjustment as provided in Section
5.2.

     4.7 Termination Upon a Change in Control or Other Event.

     Each Option granted under this Article 4 is subject to termination in accordance with Section
5.2.

5. OTHER PROVISIONS

     5.1 Rights of Eligible Persons, Participants and Beneficiaries.

     (a) Employment Status. Status as an Eligible Person shall not be construed as a commitment
that any Award will be made under this Plan to an Eligible Person or to Eligible Persons generally.

     (b) No Employment/Service Contract. Nothing contained in this Plan (or in any other documents
under this Plan or in any Award) shall confer upon any Eligible Employee or other Participant any
right to continue in the employ or other service of the Company, constitute any contract or
agreement of employment or other service or affect an employee’s status as an employee at will, nor
shall interfere in any way with the right of the Company to change a person’s compensation or other
benefits, or to terminate his or her employment or other service, with or without cause. Nothing in
this Section, however, is intended to adversely affect any express independent right of such person
under a separate employment or service contract other than an Award Agreement.

     (c) Plan Not Funded. Awards payable under this Plan shall be payable in shares or from the
general assets of the Corporation, and (except as provided in Section 1.4(c)) no special or
separate reserve, fund or deposit shall be made to assure payment of such Awards. No Participant,
Beneficiary or other person shall have any right, title or interest in any fund or in any specific
asset (including shares of Common Stock, except as expressly otherwise provided) of the Company by
reason of any Award hereunder. Neither the provisions of this Plan (or of any related documents),
nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this
Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship
between the Company and any Participant, Beneficiary or other person. To the extent that a
Participant, Beneficiary or other person acquires a right to receive payment pursuant to any Award
hereunder, such right shall be no greater than the right of any unsecured general creditor of the
Company.

     5.2 Adjustments; Acceleration.

     (a) Adjustments. Upon or in contemplation of any reclassification, recapitalization, stock
split (including a stock split in the form of a stock dividend) or reverse stock split; any merger,
combination, consolidation, or other reorganization; any spin-off, split-up, or similar
extraordinary dividend distribution (“spin-off”) in respect of the Common Stock (whether in the
form of securities or property); any exchange of Common Stock or other securities of the
Corporation, or any similar, unusual or extraordinary corporate transaction in respect of the
Common Stock; or a sale of all or substantially all of the Common Stock or assets of the
Corporation as an entirety (“asset sale”); then the Committee shall, in such manner, to such extent
(if any) and at such time as it deems appropriate and equitable in the circumstances:

     (1) proportionately adjust any or all of (a) the number and type of shares of Common Stock (or
other securities) that thereafter may be made the subject of Awards (including the specific maximum
number of shares subject to Awards granted to any one person in any year and such other maxima and
numbers of shares set forth elsewhere in this Plan), (b) the number, amount and type of shares of
Common Stock (or other securities or property) subject to any or all outstanding Awards, (c) the
grant, purchase, or exercise price of any or all outstanding Awards, (d) the securities, cash or
other property deliverable upon exercise of any outstanding Awards, or (e) (subject to limitations
under Section 5.10(c)) the performance standards appropriate to any outstanding Awards, or

8

 

     (2) make provision for a cash payment or for the assumption, substitution or exchange of any
or all outstanding share-based Awards or the cash, securities or property deliverable to the holder
of any or all outstanding share-based Awards, based upon the distribution or consideration payable
to holders of the Common Stock upon or in respect of such event.

     The Committee may adopt such valuation methodologies for outstanding Awards as it deems
reasonable in the event of a cash or property settlement and, in the case of Options, Stock
Appreciation Rights or similar rights, but without limitation on other methodologies, may base such
settlement solely upon the excess if any of the per share amount payable upon or in respect of such
event over the exercise or strike price of the Award.

     In any of such events, the Committee may take such action prior to such event to the extent
that the Committee deems the action necessary to permit the Participant to realize the benefits
intended to be conveyed with respect to the underlying shares in the same manner as is or will be
available to shareholders generally.

     (b) Possible Early Termination of Accelerated Awards. Any Option or other right to acquire
Common Stock under this Plan that remains outstanding immediately prior to (1) a dissolution of the
Company, or (2) an event described in Section 5.2(a) in which the Company does not survive,
survives as a subsidiary of another company, or is acquired, or (3) the consummation of a Change of
Control Event shall terminate upon the consummation of such event, subject to any provision that
has been expressly made by the Board or the Committee, through a plan of reorganization or
otherwise, for the survival, substitution, assumption, exchange or other settlement of such Option
or right.

     (c) Acceleration of Awards Upon Change in Control. Unless prior to a Change in Control Event
the Committee determines that, upon its occurrence, benefits under any or all Awards shall not be
accelerated or determines that only certain or limited benefits under any or all Awards shall be
accelerated and the extent to which they shall be accelerated, or establishes a different time in
respect of such Event for such acceleration, then upon the occurrence of a Change in Control Event:

     (1) each Option shall become immediately exercisable, and

     (2) Restricted Stock shall immediately vest free of restrictions.

Any discretion with respect to these events shall be limited to the extent required by applicable
accounting requirements in the case of a transaction intended to be accounted for as a pooling of
interests transaction.

     The Committee may override the limitations on acceleration in this Section 5.2(c) by express
provision in the Award Agreement and may accord any Eligible Person a right to refuse any
acceleration, whether pursuant to the Award Agreement or otherwise, in such circumstances as the
Committee may approve. Any acceleration of Awards shall comply with applicable legal requirements
and, if necessary to accomplish the purposes of the acceleration or if the circumstances require,
may be deemed by the Committee to occur (subject to Section 5.2(d)), a limited period of time not
greater than 30 days before the event. Without limiting the generality of the foregoing, the
Committee may deem an acceleration to occur immediately prior to the applicable event and/or
reinstate the original terms of an Award if an event giving rise to an acceleration does not occur.

     (d) Possible Rescission of Acceleration. If the vesting of an Award has been accelerated
expressly in anticipation of an event or upon shareholder approval of an event and the Committee or
the Board later determines that the event will not occur, the Committee may rescind the effect of
the acceleration as to any then outstanding and unexercised or otherwise unvested Awards.

     (e) Committee Discretion to Accelerate Vesting and Cancel Awards. Notwithstanding anything
herein to the contrary, in anticipation of a Change in Control Event, the Committee may, in its
sole discretion and contrary to what may otherwise be provided herein, while taking into
consideration the accounting implications, if any, (i) accelerate the vesting and exercisability,
as applicable, of any or all outstanding Awards to any date within 30 days prior to or concurrent
with the occurrence of such Change in Control Event, (ii) shorten the term of

9

 

outstanding Awards to the date of the occurrence of such Change in Control Event or (iii) cancel any
outstanding Awards and pay to the holders thereof, in cash or shares of Common Stock, the value of
such Awards based upon the price per share of Common Stock received or to be received by other
stockholders of the Corporation in the Change in Control Event.

     5.3 Effect of Termination of Service on Awards.

     (a) General. The Committee shall establish the effect of a termination of employment or
service on the rights and benefits under each Award under this Plan and in so doing may make
distinctions based upon, inter alia, the cause of termination and type of Award. Unless otherwise
specified, the date of termination shall be (1) the date of termination (for any reason whatsoever)
of the Participant’s employment by the Company, in the case of an Award granted to an employee; (2)
the date of termination of directorship in the case of an Award granted to or held by a director
(or former employee continuing in service as a director); or (3) the date of termination of
services to the Company, as determined by the Committee, in the case of an Other Eligible Person.
Notwithstanding the foregoing, the Committee may authorize by express provision in or amendment to
an Award an extension of the date of termination if a person’s status after grant changes from one
eligible category to another, or in other circumstances that the Committee deems appropriate.

     (b) Termination of Consulting or Affiliate Services. If the Participant is not an Eligible
Employee or director and provides services as an Other Eligible Person, the Committee shall be the
sole judge of whether the Participant continues to render services to the Company, unless a
contract or the Award otherwise provides. If in these circumstances the Company notifies the
Participant in writing that a termination of services of the Participant for purposes of this Plan
has occurred, then (unless the contract or Award otherwise expressly provides), the Participant’s
termination of services for purposes of this Plan shall be the date which is 10 days after the
Company’s mailing of the notice or, in the case of a termination for Cause, the date of the mailing
of the notice.

     (c) Effect on Unvested Awards. Unless otherwise provided in the applicable Award Agreement
and subject to the other provisions of this Plan, a Restricted Stock Award or Stock Unit Award, to
the extent such Award has not vested as of the applicable Severance Date shall terminate on the
Severance Date without further payment or benefit of any kind; and any Option theretofore
outstanding and not vested shall terminate. Vested Options are subject to the provisions of Section
2.6.

     (d) Events Not Deemed Terminations of Service. Unless Company policy or the Committee
otherwise provides, the employment relationship shall not be considered terminated in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of absence authorized by the Company
or the Committee; provided that unless reemployment upon the expiration of such leave is guaranteed
by contract or law, such leave is for a period of not more than 90 days. In the case of any
Eligible Employee on an approved leave of absence, continued vesting of the Award while on leave
from the employ of the Company may be suspended until the employee returns to service, unless the
Committee otherwise provides or applicable law otherwise requires. In no event shall an Award be
exercised after the expiration of the term set forth in the Award Agreement.

     (e) Effect of Change of Subsidiary Status. For purposes of this Plan and any Award, if an
entity ceases to be a Subsidiary a termination of employment or service shall be deemed to have
occurred with respect to each Eligible Person in respect of the Subsidiary who does not continue as
an Eligible Person in respect of another entity within the Company.

     5.4 Compliance with Laws.

     This Plan, the granting and vesting of Awards under this Plan, the offer, issuance and
delivery of shares of Common Stock, the acceptance of promissory notes and the payment of money
under this Plan or under Awards are subject to compliance with all applicable federal and state
laws, rules and regulations (including but not limited to state and federal securities law, federal
margin requirements) and to such approvals by any listing, regulatory or governmental authority as
may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith.
In addition, any securities delivered under this Plan may be subject to any special restrictions
that the Committee may require to preserve a pooling of interests under generally accepted
accounting principles. The

10

 

person acquiring any securities under this Plan will, if requested by the Company, provide
such assurances and representations to the Company as the Committee may deem necessary or desirable
to assure compliance with all applicable legal and accounting
requirements.

     The obligation of the Corporation to make payment of Awards in shares of Common Stock or
otherwise shall be subject to all applicable laws, rules and regulations, and to such approvals by
governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to
the contrary, the Corporation shall be under no obligation to offer to sell or to sell and shall be
prohibited from offering to sell or selling any shares of Common Stock pursuant to an Award unless
such shares have been properly registered for sale pursuant to the Securities Act with the
Commission and any applicable state securities laws or unless the Corporation has received the
advice of counsel, satisfactory to the Corporation, that such shares may be offered or sold without
such registration pursuant to an available exemption therefrom and the terms and conditions of such
exemption have been fully complied with. If the shares of Common Stock offered for sale or sold
under the Plan are offered or sold pursuant to an exemption from registration under the Securities
Act or any applicable state securities laws, the Corporation may restrict the transfer of such
shares and may legend the stock certificates representing such shares in such manner as it deems
advisable to ensure the availability of any such exemption.

     5.5 Tax Matters.

     Upon any exercise, vesting, or payment of any Award or upon the disposition of shares of
Common Stock acquired pursuant to the exercise of an Incentive Stock Option prior to satisfaction
of the holding period requirements of Section 422 of the Code, the Company shall have the right at
its option to (i) require the Participant (or Personal Representative or Beneficiary, as the case
may be) to pay or provide for payment of at least the minimum amount of any taxes which the Company
may be required to withhold with respect to such Award event or payment or (ii) deduct from any
amount payable in cash the minimum amount of any taxes which the Company may be required to
withhold with respect to such cash payment. In any case where a tax is required to be withheld in
connection with the delivery of shares of Common Stock under this Plan, the Committee may in its
sole discretion (subject to Section 5.4) grant (either at the time of grant of the Award or
thereafter) to the Participant the right to elect or may require, pursuant to such rules and
subject to such conditions as the Committee may establish, to have the Corporation reduce the
number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares,
valued in a consistent manner at their Fair Market Value or at the sales price in accordance with
authorized procedures for cashless exercises, necessary to satisfy the minimum applicable
withholding obligation on exercise, vesting or payment. Shares in no event shall be withheld in
excess of the minimum number required for tax withholding under applicable law.

     5.6 Plan and Award Amendments, Termination and Suspension.

     (a) Board Authorization. The Board may, at any time, terminate or, from time to time, amend,
modify or suspend this Plan, in whole or in part. No Awards may be granted during any suspension of
this Plan or after termination of this Plan, but the Committee shall retain jurisdiction as to
Awards then outstanding in accordance with the terms of this Plan.

     (b) Shareholder Approval. To the extent then required under Sections 162, 422 or 424 of the
Code or any other applicable law, or deemed necessary or advisable by the Board, any amendment to
this Plan shall be subject to shareholder approval.

     (c) Amendments to Awards. Without limiting any other express authority of the Committee under
(but subject to) the express limits of this Plan, the Committee by agreement or resolution may
waive conditions of or limitations on Awards to Participants that the Committee in the prior
exercise of its discretion has imposed, without the consent of a Participant, and (subject to the
requirements of Sections 1.2(b) and 5.6(d)) may make other changes to the terms and conditions of
Awards.

     (d) Limitations on Amendments to Plan and Awards. No amendment, suspension or termination of
this Plan or change affecting any outstanding Award shall, without written consent of the
Participant, affect in any manner materially adverse to the Participant any rights or benefits of
the Participant or obligations of the Company under any Award granted under this Plan prior to the
effective date of such change. Changes contemplated by Section 5.2

11

 

shall not be deemed to constitute changes or amendments for purposes of this Section 5.6.

     (e) Section 409A Compliance. To the extent that any payments or benefits provided hereunder
are considered deferred compensation subject to Section 409A of the Code, the Corporation intends
for all such payments and benefits provided or credited hereunder to comply with the standards for
nonqualified deferred compensation established by Section 409A of the Code (the “409A Standards”).
Notwithstanding anything herein or in any Award Agreement to the contrary, (i) to the extent that
any terms of this Plan would subject Participants to gross income inclusion, interest or an
additional tax pursuant to Section 409A of the Code, those terms are to that extent superseded by
the 409A Standards and (ii) the Corporation reserves the right to amend any Award granted or
credited hereunder, without the Participant’s consent, to cause such Awards to comply with or be
exempt from Section 409A of the Code.

     5.7 Privileges of Stock Ownership.

     Except as otherwise expressly authorized by the Committee or this Plan, a Participant shall
not be entitled to any privilege of stock ownership as to any shares of Common Stock not actually
delivered to and held of record by the Participant. No adjustment will be made for dividends or
other rights as a shareholder for which a record date is prior to such date of delivery.

     5.8 Effective Date of the Plan.

     This Plan is effective as of September 24, 2001.

     5.9 Term of the Plan.

     No Award will be granted under this Plan after September 24, 2011 (the “termination date”).
Unless otherwise expressly provided in this Plan or in an applicable Award Agreement, any Award
granted prior to the termination date may extend beyond such date, and all authority of the
Committee with respect to Awards hereunder, including the authority to amend an Award, shall
continue during any suspension of this Plan and in respect of Awards outstanding on the termination
date.

     5.10 Governing Law/Construction/Severability.

     (a) Choice of Law. This Plan, the Awards, all documents evidencing Awards and all other
related documents shall be governed by, and construed in accordance with the laws of the State of
Delaware.

     (b) Severability. If a court of competent jurisdiction holds any provision invalid and
unenforceable, the remaining provisions of this Plan shall continue in effect.

     (c) Plan Construction.

     (1) Rule 16b-3. It is the intent of the Corporation that the Awards and transactions
permitted by Awards be interpreted in a manner that, in the case of Participants who are or may be
subject to Section 16 of the Exchange Act, satisfies the applicable requirements for exemptions
under Rule 16b-3. The exemption will not be available if the authorization of actions by any
Committee of the Board with respect to such Awards does not satisfy the applicable conditions of
Rule 16b-3. Notwithstanding the foregoing, the Corporation shall have no liability to any
Participant for Section 16 consequences of Awards or events under Awards.

     (2) Section 162(m). It is the further intent of the Corporation that (to the extent the
Corporation or Awards under this Plan may be or become subject to limitations on deductibility
under Section 162(m) of the Code), Options or SARs be granted with an exercise or base price not
less than Fair Market Value on the date of grant and performance-based awards under Section 5.2 of
this Plan that are granted to or held by a person subject to Section 162(m) of the Code will
qualify as performance-based compensation or otherwise be exempt from deductibility limitations
under Section 162(m) of the Code, to the extent that the authorization of the Award (or the payment
thereof, as the case may be) satisfies any applicable administrative requirements thereof.

12

 

     5.11 Captions.

     Captions and headings are given to the sections and subsections of this Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of this Plan or any provision thereof.

     5.12 Effect of Change of Subsidiary Status.

     For purposes of this Plan and any Award hereunder, if an entity ceases to be a Subsidiary, a
termination of employment and service shall be deemed to have occurred with respect to each
Eligible Person in respect of such Subsidiary who does not continue as an Eligible Person in
respect of another entity within the Company.

     5.13 Stock-Based Awards in Substitution for Stock Options or Awards Granted by Other
Corporation.

     Awards may be granted to Eligible Persons under this Plan in substitution for employee stock
options, Stock Appreciation Rights, restricted stock or other stock-based awards granted by other
entities to persons who are or who will become Eligible Persons in respect of the Company, in
connection with a distribution, merger or other reorganization by or with the granting entity or an
affiliated entity, or the acquisition by the Company, directly or indirectly, or all or a
substantial part of the stock or assets of the employing entity.

     5.14 Non-Exclusivity of Plan.

     Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the
Committee to grant awards or authorize any other compensation, with or without reference to the
Common Stock, under any other plan or authority.

     5.15 No Corporate Action Restriction.

     The existence of the Plan, the Award Agreements and the Awards granted hereunder shall not
limit, affect or restrict in any way the right or power of the Board or the shareholders of the
Corporation to make or authorize: (a) any adjustment, recapitalization, reorganization or other
change in the Corporation’s or any Subsidiary’s capital structure or its business, (b) any merger,
amalgamation, consolidation or change in the ownership of the Corporation or any subsidiary, (c)
any issue of bonds, debentures, capital, preferred or prior preference stock ahead of or affecting
the Corporation’s or any Subsidiary’s capital stock or the rights thereof, (d) any dissolution or
liquidation of the Corporation or any Subsidiary, (e) any sale or transfer of all or any part of
the Corporation or any Subsidiary’s assets or business, or (f) any other corporate act or
proceeding by the Corporation or any Subsidiary. No participant, beneficiary or any other person
shall have any claim under any Award or Award Agreement against any member of the Board or the
Committee, or the Corporation or any employees, officers or agents of the Corporation or any
Subsidiary, as a result of any such action.

     5.16 Other Company Benefit and Compensation Program.

     Payments and other benefits received by a Participant under an Award made pursuant to this
Plan shall not be deemed a part of a Participant’s compensation for purposes of the determination
of benefits under any other employee welfare or benefit plans or arrangements, if any, provided by
the Corporation or any Subsidiary, except where the Committee or the Board expressly otherwise
provides or authorizes in writing. Awards under this Plan may be made in addition to, in
combination with, as alternatives to or in payment of grants, awards or commitments under any other
plans or arrangements of the Company or the Subsidiaries.

6. DEFINITIONS.

     6.1 Definitions.

     (a) “Award” means an award of any Option, Stock Appreciation Right, Restricted Stock, Stock
Unit, Stock

13

 

Bonus, dividend equivalent or deferred payment right or other right or security that would
constitute a “derivative security” under Rule 16a-1(c) of the Exchange Act, or any combination
thereof, whether alternative or cumulative, authorized by and granted under this Plan.

     (b) “Award Agreement” means any writing setting forth the terms of an Award that has been
authorized by the Committee.

     (c) “Award Date” means the date upon which the Committee took the action granting an Award or
such later date as the Committee designates as the Award Date at the time of the Award.

     (d) “Award Period” means the period beginning on an Award Date and ending on the expiration
date of such Award.

     (e) “Beneficiary” means the person, persons, trust or trusts designated by a Participant or,
in the absence of a designation, entitled by will or the laws of descent and distribution, to
receive the benefits specified in the Award Agreement and under this Plan in the event of a
Participant’s death, and shall mean the Participant’s executor or administrator if no other
Beneficiary is designated and able to act under the circumstances.

     (f) “Board” means the Board of Directors of the Corporation.

     (g) “Cause” with respect to a Participant means (unless otherwise expressly provided in the
applicable Award Agreement or another applicable contract with the Participant) a termination of
service based upon a finding by the Committee acting in good faith and based on its reasonable
belief at the time, that the Participant:

     (1) has been negligent in the discharge of his or her duties to the Company, has refused to
perform stated or assigned duties or is incompetent in or incapable of performing those duties; or

     (2) has been dishonest or committed or engaged in an act of theft, embezzlement or fraud, a
breach of confidentiality, an unauthorized disclosure or use of inside information, customer lists,
trade secrets or other confidential information; has breached a fiduciary duty, or willfully and
materially violated any other duty, law, rule, regulation or policy of the Company or an affiliate;
or has been convicted of a felony or misdemeanor (other than minor traffic violations or similar
offenses); or

     (3) has materially breached any of the provisions of any agreement with the Company or an
affiliated entity; or

     (4) has engaged in unfair competition with, or otherwise acted intentionally in a manner
injurious to the reputation, business or assets of, the Company or an affiliate; has improperly
induced a vendor or customer to break or terminate any contract with the Company or an affiliate or
induced a principal for whom the Company or an affiliate acts as agent to terminate such agency
relationship.

A termination for Cause shall be deemed to occur (subject to reinstatement upon a contrary final
determination by the Committee) on the date on which the Company first delivers written notice to
the Participant of a finding of termination for Cause.

     (h) “Change in Control Event” means any of the following:

     (1) The dissolution or liquidation of the Corporation, other than in the context of a
transaction that does not constitute a Change in Control Event under clause (2) below.

     (2) Consummation of a merger, consolidation, or other reorganization, with or into, or the
sale of all or substantially all of the Corporation’s business and/or assets as an entirety to, one
or more entities that are not Subsidiaries (a “Business Combination”), unless (A) as a result of
the Business Combination at least 50% of the outstanding securities voting generally in the
election of directors of the surviving or resulting entity or a parent thereof (the “Successor
Entity”) immediately after the reorganization are, or will be, owned, directly or indirectly, in

14

 

substantially the same proportions, by shareholders of the Corporation immediately before the
Business Combination; and (B) no person (as defined in clause (h)(3) below, but excluding the
Successor Entity or an Excluded Person) beneficially owns, directly or indirectly, more than 50% of
the outstanding shares of the combined voting power of the outstanding voting securities of the
Successor Entity, after giving effect to the Business Combination, except to the extent that such
ownership existed prior to the Business Combination; and (C) at least 50% of the members of the
board of directors of the entity resulting from the Business Combination were members of the Board
at the time of the execution of the initial agreement or of the action of the Board approving the
Business Combination.

     (3) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) other
than an Excluded Person becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Corporation representing more than 50% of the
combined voting power of the Corporation’s then outstanding securities entitled to then vote
generally in the election of directors of the Corporation, other than as a result of (A) an
acquisition directly from the Company, (B) an acquisition by the Company, (C) an acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or a Successor
Entity, or an acquisition by any entity pursuant to a transaction which is expressly excluded under
clause (h)(2) above.

     (4) During any period not longer than two consecutive years, individuals who at the beginning
of such period constituted the Board cease to constitute at least a majority thereof, unless the
election, or the nomination for election by the Corporation’s shareholders, of each new Board
member was approved by a vote of at least two-thirds of the Board members then still in office who
were Board members at the beginning of such period (including for these purposes, new members whose
election or nomination was so approved), but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a person other than the Board.

     (i) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     (j) “Commission” means the Securities and Exchange Commission.

     (k) “Committee” means the Board or one or more committees appointed by the Board to administer
all or certain aspects of this Plan, each committee to be comprised solely of one or more directors
or such number as may be required under applicable law. Each member of a Committee in respect of
his or her participation in any decision with respect to an Award intended to satisfy the
requirements of Section 162(m) of the Code must satisfy the requirements of “outside director”
status within the meaning of Section 162(m) of the Code; provided, however, that the failure to
satisfy such requirement shall not affect the validity of the action of any committee otherwise
duly authorized and acting in the matter. As to Awards, grants or other transactions that are
authorized only by a committee and that are intended to be exempt under Rule 16b-3, the
requirements of Rule 16b-3(d)(1) with respect to committee action must also be satisfied.

     (l) “Common Stock” means the Common Stock of the Corporation and such other securities or
property as may become the subject of Awards, or become subject to Awards, pursuant to an
adjustment made under Section 5.2 of this Plan.

     (m) “Company” means, collectively, the Corporation and its Subsidiaries.

     (n) “Corporation” means SeraCare Life Sciences, Inc., a California corporation, and its
successors.

     (o) “Eligible Employee” means an officer (whether or not a director) or employee of the
Company.

     (p) “Eligible Person” means an Eligible Employee, Non-Employee Director or any Other Eligible
Person designated by the Committee in its discretion.

     (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time.

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     (r) “Excluded Person” means (1) any person described in and satisfying the conditions of Rule
13d-1(b)(1) under the Exchange Act, (2) the Company, or (3) an employee benefit plan (or related
trust) sponsored or maintained by the Company or the Successor Entity.

     (s) “Fair Market Value” on any date means (1) if the stock is listed or admitted to trade on a
national securities exchange, the closing price of the stock on the Composite Tape, as published in
the Western Edition of The Wall Street Journal, of the principal national securities exchange on
which the stock is so listed or admitted to trade, on such date, or, if there is no trading of the
stock on such date (or if the market has not closed at the applicable time), then the closing price
of the stock as quoted on such Composite Tape on the next preceding date on which there was trading
in such shares; or (2) if the stock is not listed or admitted to trade on a national securities
exchange and representative quotes are not otherwise available, the value as established by the
Committee to be the fair market value based upon a good faith attempt to value the Common Stock
accurately for purposes of this Plan.

     (t) “Incentive Stock Option” means an Option which is intended, as evidenced by its
designation, as an incentive stock option within the meaning of Section 422 of the Code, the award
of which contains such provisions (including but not limited to the receipt of shareholder approval
of this Plan, if the Award is made prior to such approval) and is made under such circumstances and
to such persons as may be necessary to comply with that section.

     (u) “Nonqualified Stock Option” means an Option that is designated as a Nonqualified Stock
Option and shall include any Option intended as an Incentive Stock Option that fails to meet the
applicable legal requirements thereof. Any Option granted hereunder that is not designated as an
incentive stock option shall be deemed to be designated a nonqualified stock option under this Plan
and not an incentive stock option under the Code.

     (v) “Non-Employee Director” means a member of the Board of Directors of the Corporation who is
not an officer or employee of the Company.

     (w) “Option” means an option to purchase Common Stock granted under this Plan. The Committee
shall designate any Option granted to an Eligible Person as a Nonqualified Stock Option or an
Incentive Stock Option.

     (x) “Other Eligible Person” means any Non-Employee Director or any individual consultant or
advisor who renders or has rendered bona fide services (other than services in connection with the
offering or sale of securities of the Company in a capital raising transaction or as a market maker
or promoter of the Company’s securities) to the Company, and who is selected to participate in this
Plan by the Committee. An advisor or consultant may be selected as an Other Eligible Person only if
such person’s participation in this Plan would not adversely affect (1) the Corporation’s
eligibility to use Form S-8 to register under the Securities Act of 1933, as amended, the offering
of shares issuable under this Plan by the Company or (2) the Corporation’s compliance with any
other applicable laws.

     (y) “Participant” means an Eligible Person who has been granted an Award under this Plan.

     (z) “Personal Representative” means the person or persons who, upon the disability or
incompetence of a Participant, shall have acquired on behalf of the Participant, by legal
proceeding or otherwise, the power to exercise the rights or receive benefits under this Plan and
who shall have become the legal representative of the Participant.

     (aa) “Plan” means this 2001 Stock Incentive Plan, as it may be amended from time to time.

     (bb) “QDRO” means a qualified domestic relations order.

     (cc) “Restricted Shares” or “Restricted Stock” means shares of Common Stock awarded to a
Participant under this Plan, subject to payment of such consideration, if any, and such conditions
on vesting (which may include, among others, the passage of time, specified performance objectives
or other factors) and such transfer and other restrictions as are established in or pursuant to
this Plan and the related Award Agreement, for so long as such shares remain unvested under the
terms of the applicable Award Agreement.

16

 

     (dd) “Retirement” means retirement with the consent of the Company or, from active service as
an employee
or officer of the Company on or after attaining age 55 with 10 or more years of service or
after age 65.

     (ee) “Rule 16b-3” means Rule 16b-3 as promulgated by the Commission pursuant to the Exchange
Act, as amended from time to time.

     (ff) “Section 16 Person” means a person subject to Section 16(a) of the Exchange Act.

     (gg) “Securities Act” means the Securities Act of 1933, as amended from time to time.

     (hh) “Severance Date” means the date of termination of employment or service as further
defined in Section 5.3.

     (ii) “Stock Appreciation Right” means a right authorized under this Plan to receive a number
of shares of Common Stock or an amount of cash, or a combination of shares and cash, the aggregate
amount or value of which is determined by reference to a change in the Fair Market Value of the
Common Stock.

     (jj) “Stock Bonus” means an Award of shares of Common Stock granted under this Plan for no
consideration other than past services and without restriction other than such transfer or other
restrictions as the Committee may deem advisable to assure compliance with law.

     (kk) “Stock Unit” means a bookkeeping entry which serves as a unit of measurement relative to
a share of Common Stock for purposes of determining the payment, in Common Stock or cash, of an
Award, including a deferred benefit or right under this Plan. Stock Units are not outstanding
shares and do not entitle a Participant to any dividend, voting or other rights in respect of any
Common Stock represented thereby or acquirable thereunder. Stock Units, may, however, by express
provision in the applicable Award Agreement, entitle a Participant to dividend equivalent rights,
as defined by the Committee.

     (ll) “Subsidiary” means any corporation or other entity a majority of whose outstanding voting
stock or voting power is beneficially owned directly or indirectly by the Corporation.

     (mm) “Total Disability” means a “permanent and total disability” within the meaning of Section
22(e)(3) of the Code and such other disabilities, infirmities, afflictions or conditions as the
Committee by rule may include.

17exv10w1

Exhibit 10.1

	 	 	 	 	 
	

	 	Idenix Pharmaceuticals, Inc.	 	 
	 

	 	One Kendall Square
	 	Main Tel: 617.995.9800
	 

	 	Building 1400
	 	Main Fax: 617.995.9030
	 

	 	Cambridge, MA 02139
	 	www.idenix.com

May 14, 2008

David
Standring, Ph.D.

205 Gun Hill St

Milton, MA 02186

Dear David:

This letter confirms your employment status and the specific benefits you are entitled to as
Executive Vice President of Biology. The following terms and conditions are effective
immediately:

Title: Executive Vice President, Biology

Base Salary: Your semi-monthly salary will be $10,833.34 (equivalent to an annual rate of
$260,000), subject to applicable withholding and payable in accordance with normal payroll
practices of Idenix. The Base Salary shall be reviewed annually for additional increases, if any,
which is the sole discretion of the Idenix Compensation Committee. After any such increase, the
term “Base Salary” as utilized herein shall thereafter refer to the increased amount.

Equity: You shall have annual performance targets and opportunities to be awarded
additional equity awards and incentives. Such awards may include stock options, restricted stock
grants and other equity linked incentives. The actual type of award and number of shares to be
awarded under such target equity opportunity shall be subject to annual approval by the Board and
conditioned upon the achievement of annual performance targets established by the Board. Currently,
it is anticipated that the target equity award would be comprised of an annual grant of options to
purchase 30,000 shares of Idenix’s common stock.

Benefits: You will continue to be eligible to participate in all benefit plans Idenix
provides its employees.

Location: Your position will continue to be based at Idenix’ offices in Cambridge,
Massachusetts.

Incentive based compensation: You will continue to be eligible for an annual target cash
bonus (“Target Bonus”) equal to 35% of your Base Salary. The actual cash bonus may range from 0%
to a maximum aggregate amount of 200% of the target bonus. Your Target Bonus as a percentage of
Base Salary may, at the discretion of the Board, be periodically reviewed for increase.

Termination: You and Idenix each agree that your employment with Idenix is that of an
employee at will. Both you and Idenix have the right to terminate your employment at any time for
any or no reason, subject to the consequences provided herein.

In the event Idenix terminates your employment for reasons other than Cause (as defined in Appendix
A hereto), you will be entitled to receive the following:

 

 

David Standring, Ph.D.

May 14th,
2008

Page 2 of 5

	1.	 	Lump sum payment equivalent to one year of Base Salary and the greater of: (i) the
Target bonus; or (ii) the bonus you earned in the preceding year in which the termination
of your employment occurs,, less any and all applicable taxes and withholdings;
	 
	2.	 	Immediate vesting and exercisability of all outstanding equity awards; and
	 
	3.	 	Provided you timely elect and remain eligible for benefits continuation pursuant to the
federal “COBRA” laws, continued payment by Idenix of premiums for you (and your covered
dependents) under the group health, dental and life insurance coverage at the active
employee rates for a period of 12 months subsequent to the date of your termination.
	 
	 	 	Termination Within One Year After a Change in Control. If your employment is
terminated by Idenix (or any successor to Idenix) without Cause, in each case within one (1)
year following a Change in Control (as defined in Appendix A hereto) you shall be entitled
to an additional lump-sum amount equivalent to one year of Base Salary and the greater of
your Target Bonus or the actual bonus for the year preceding the year in which termination
of employment occurs, payable as soon as practicable following the termination of
employment.
	 
	 	 	Excise Tax Provision. Anything herein to the contrary notwithstanding, to the extent
that any payment, entitlement or benefit provided under this Agreement or any other
agreement, plan, policy, program or arrangement of the Company (the “Payments”) would be
subject to the imposition of the excise tax imposed under Section 4999 of the Internal
Revenue Code of 1986, as amended (the “Code”), or any similar Federal or state law (an
“Excise Tax”), the Payments shall be reduced (but not below zero) to the maximum amount as
will result in no portion of the Payments being subject to such Excise Tax (the “Safe Harbor
Cap”), but only if the net after-tax amount that would be received by the Employee, taking
into account all applicable Federal, state and local income taxes and the imposition of the
Excise Tax, is greater than the net after-tax amount, similarly determined, that would be
received by the Employee if Payments are not reduced to the Safe Harbor Cap. Unless the
Employee has given prior written notice specifying a different order to the Company to
effectuate the reductions described in the preceding sentence, the Company shall reduce or
eliminate the Payments to the Safe Harbor Cap, by first reducing or eliminating those
payments or benefits which are not payable in cash and then by reducing or eliminating cash
payments. Any notice given by the Employee pursuant to the preceding sentence shall take
precedence over the provisions of any other plan, arrangement or agreement governing the
Employee’s rights and entitlements to any benefit, entitlement or compensation.
	 
	 	 	Section 409 A Treatment: If any payment, compensation or other benefits provided to
you in connection with your employment termination is determined, in whole or in part, to
constitute “nonqualified deferred compensation” within the meaning of Section 409A of the
Code and you are a specified employee as defined in Section 409A(2)(B)(i), no part of such
payments shall be paid before the day that is six (6) months plus one (1) day after the date
of termination (the “New Payment Date”) if necessary to avoid adverse treatment under Section
409A of the Code. The aggregate of any payments that otherwise would have been paid to you
during the period between the date of termination and the New Payment Date shall be paid to
you in a lump sum on such New Payment Date. Thereafter, any payments that remain outstanding
as of the day immediately following the New Payment Date shall be paid without delay over the
time period originally scheduled, in accordance with the terms of this letter agreement.

	 	 	 
	

	 	One Kendall Square, Building 1400 • Cambridge MA 02139 • Main Tel: 617.995.9800 • Main
Fax: 617.995.9030 • www.idenix.com

 

 

David Standring, Ph.D.

May 14th,
2008

Page 3 of 5

Separation Agreement and Release of Claims A Condition Precedent. The obligation of
Idenix to make any of the payments or provide any of the benefits described above upon a
termination of employment, including upon a termination without cause or a termination
following a change of control, is expressly conditioned upon the execution, delivery and
honor by you of a Separation Agreement and Release of Claims in the form then used by the
Company. Such document shall include, without limitation, a complete release of all claims
by you, affirmance of your obligations of confidentiality, non-compete, non-solicit and
ownership of inventions, and covenants by you of confidentiality, cooperation and
non-disparagement.

Disclosure of Inventions: In consideration of your employment by the Company, you will make
full and prompt disclosure to Idenix of all inventions, improvements, modifications, discoveries,
creations, methods, processes and developments which are created, made, or reduced to practice by
you alone, under your direction or with others in connection with or relating to Idenix’s then
present or planned business or research and development activities during the term of your
employment, whether or not such developments are patentable or protected as confidential
information, and whether or not such developments are made or conceived during normal working hours
or on or off the premises of Idenix (all of which are hereinafter collectively termed
“Developments”).

Assignment of Inventions: In consideration of your employment by the Company, you agree to
assign and do hereby assign to Idenix all your title, interests and rights, including, without
limitation, intellectual property rights, in and to any and all Developments, and you agree to
assign to Idenix any and all patents and patent applications arising from such Developments, and to
execute and deliver such assignments, patents and patent applications and other documents
(including, without limitation, power of attorney) as Idenix may direct. Additionally, you agree to
cooperate fully with Idenix both during and after the term of your employment, to enable Idenix to
secure and maintain rights in said Developments assigned to Idenix in any and all countries. In the
event that any of such Developments are by operation of applicable law excluded from this
assignment, you agree that Idenix shall have a non-exclusive, fully paid license to use for all
purposes any such Developments not assigned to Idenix.

No Conflict: In consideration of your employment by the Company, you hereby represent that
you are not bound by the terms of any agreement with any previous employer or other party to
refrain from competing, directly or indirectly, with the business of such previous employer or any
other party. You further represent that your acceptance of this offer of employment and employment
by Idenix does not and will not breach any agreement to keep in confidence proprietary information,
knowledge or data acquired by you in confidence or in trust prior to your employment with Idenix.

Nonsolicitation of employees: In consideration of your employment by the Company you shall
not, without the express prior written approval of the Company, either directly or indirectly,
knowingly solicit any employee of the Company or it’s affiliates (or any employee who was employed
by the Company or any of it’s affiliates) at any time within your employment with the Company and a
period of one year following the termination of your employment.

Noncompetition: In consideration of your employment by the Company, you shall not, without
the express written approval of the Company, engage in a “Competitive Business”, directly or
indirectly, as an individual, partner, shareholder, director, officer, principal, agent, employee,
trustee, consultant, or in any relationship or capacity, in any geographic location in which the
Company or any of it’s Affiliates is engaged in business during your employment and a period of one
(1) year after termination in the event Idenix terminates your employment for reasons other than
Cause. For purposes of clarification, the noncompetition provision shall not apply at any time

	 	 	 
	

	 	One Kendall Square, Building
1400 • Cambridge MA 02139 • Main Tel:
617.995.9800 • Main Fax: 617.995.9030 • www.idenix.com

 

 

David Standring, Ph.D.

May 14th,
2008

Page 4 of 5

during which the company is not paying severance in accordance with the termination section of
this agreement. The term “Competitive Business” shall mean a commercial, for profit entity that
discovers, develops and commercializes therapeutics for the treatment of HBV, HCV and HIV.

Enforcement: If you breach any provision of the non-solicitation or non-competition
sections, the Company will suffer irreparable injury. It is therefore agreed that the Company shall
have the right, if permitted by a court of the applicable jurisdiction, to enjoin any such breach,
without posting any bond. You agree to waive the adequacy of a remedy at law as a defense to such
relief. The existence of this right to injunctive, or other equitable relief, shall not limit any
other rights or remedies which the Company may have at law or in equity including, without
limitation, the right to monetary, compensatory and punitive damages. You acknowledge and agree
that the provisions of this section are reasonable and necessary for the successful operation of
the Company. In the event a court of competent jurisdiction determines that you have breached your
obligations in any material respect under this section (other than through the issuance of an
injunction issued without a determination on the merits), the Company, in addition to pursuing all
available remedies, at law or otherwise, and without limiting its right to pursue the same, shall
be entitled to cease all payments due to you according to this agreement as of the date of such
determination.

Please sign both copies of this letter indicating your acceptance and return one copy to me at
your earliest convenience but in any event no later than May 16, 2008. The second copy of this
letter is for your records.

Very truly
yours,

/s/ Jean-Pierre Sommadossi

Jean-Pierre
Sommadossi

Chairman
and Chief Executive Officer

ACCEPTED
as of this 14th day of May, 2008

David Standring

/s/ David Standring

	 	 	 
	

	 	One Kendall Square, Building 1400 • Cambridge MA 02139 • Main Tel: 617.995.9800 • Main Fax: 617.995.9030 • www.idenix.com

 

 

David Standring,
Ph.D. 
May
14th, 2008

Page 5 of 5

Appendix A

“Change in Control” shall mean:

     (i) any “person,” as such term is used in Sections 3(a)(9) and 13(d) of the
Securities Exchange Act of 1934, becomes a “beneficial owner,” as such term is used
in Rule 13d-3 promulgated under that act, of fifty percent (50%) or more of the
Voting Stock of the Company, or Novartis Pharma AG disposes of its entire interest
in the Company’s Voting Stock;

     (ii) the Company adopts any plan of liquidation providing for the
distribution of all or substantially all of its assets;

     (iii) all or substantially all of the assets or business of the Company is
disposed of pursuant to a merger, consolidation or other transaction (unless the
shareholders of the Company immediately prior to such merger, consolidation or other
transaction beneficially own, directly or indirectly, at least fifty percent (50%)
of the Voting Stock or other ownership interests of the entity or entities, if any,
that succeed to the business of the Company); or

     (iv) the Company combines with another company and is the surviving
corporation but, immediately after the combination, the shareholders of the Company
immediately prior to the combination hold, directly or indirectly, fifty percent
(50%) or less of the Voting Stock of the combined company (there being excluded
from the number of shares held by such shareholders, but not from the Voting Stock
of the combined company, any shares received by affiliates of such other company in
exchange for stock of such other company).

     For purposes of this definition of “Change in Control” the “Company” shall include any entity
that succeeds to all or substantially all of the business of the Company and “Voting Stock” shall
mean securities of any class or classes having general voting power under ordinary circumstances,
in the absence of contingencies, to elect the directors of a corporation.

“Termination for Cause” shall be the result of:

(i) willful fraud or willful material dishonesty in connection with the Employee’s employment by
the Company; (ii) intentional failure by the Employee to substantially perform the Employee’s
duties hereunder or gross neglect in the performance of such duties; (iii) gross misconduct by the
Employee that is materially detrimental to the Company’s reputation, goodwill or business
operations; (iv) a breach of any of the Employee’s covenants; or (v) the conviction of, or plea of
nolo contendere to, a charge of commission of a felony; provided that prior to any Termination for
Cause Employee is given written
notice with specificity of any such reasons and a reasonable opportunity to cure if such a cure is
reasonably possible.

	 	 	 
	

	 	One Kendall Square, Building 1400 • Cambridge MA 02139 • Main Tel: 617.995.9800 • Main Fax: 617.995.9030 • www.idenix.com

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