Document:

exhibit10khatibzadeh.htm

    Exhibit 10.2

    

    Mr. M.
Ali
Khatibzadeh                                                                                                                                                            January 27, 2009

    Senior
Vice President, General Manager of Wireless Business

     

    Subject:  Employment
Agreement

     

    Dear
Ali,

     

    The Board
of Directors discussed in January and approved on January 15, 2009 entering into
new employment agreements with the executives of ANADIGICS, Inc., a Delaware
corporation (the “Corporation”).  This agreement is made and entered
into effective as of the 27th day of January 2009, by and between the
Corporation and Mohammad Ali Khatibzadeh, an executive employee of the
Corporation, and replaces in all respects the employment agreement between the
Corporation and Mohammad Ali Khatibzadeh, dated as of July 25, 2000, as amended
from time to time.

     

    In order
for the Corporation to attract and retain as executives and officers the most
capable persons available, the Corporation and executive employee do hereby
agree as follows:

     

    1. Employment
with the Corporation is at-will and may be terminated at any time with or
without cause or notice by the executive employee or the
Corporation.  No person is authorized to provide any employee with an
employment contract or special arrangement concerning terms or conditions of
employment unless the contract or arrangement is in writing and signed by the
Chief Executive Officer of the Corporation.

     

    2. In
addition to the provisions set forth in this document, the executive employee’s
employment will be governed by the policies and procedures outlined in the
Employee Handbook, as amended from time to time.

     

    3. In the
event your employment with the Corporation is terminated at any time by the
Corporation without “Cause” (as defined below) or in the event of a “Change in
Control” (as defined in Annex A hereto) which results in either the involuntary
termination without Cause of your employment with the Corporation or your
voluntary resignation from the Corporation due to a reduction in
responsibilities and duties associated with your position, or reduction in
compensation (base salary, plus bonus at target) without your prior express
written consent, the Corporation agrees that following such termination without
Cause or such termination following a Change in Control you shall receive (a) an
amount equal to 200% of the sum of (1) the highest annualized rate of your base
salary in effect at any point during the twelve months preceding the date of
termination of employment under this Agreement, plus (2) your bonus at target of
110% of the highest annualized rate of your base salary in effect at any point
during the twelve months preceding the date of termination of employment under
this Agreement, to be paid on the date that is sixty (60) days after the date of
termination of your employment under this Agreement; (b) payment of the
semi-annual bonus (at 100% of target prorated for the number of months worked in
that period), to be paid on the date that is sixty (60) days after the date of
termination of your employment under this Agreement; (c) continuation of all
current medical and dental insurance benefits until the first to occur of one
year from the date of termination of employment under this Agreement or the
commencement of employment at another employer offering similar benefits; (d)
executive outplacement services for up to six months; and (e) immediate vesting
of all stock options and shares of restricted stock previously or hereafter
granted under any stock or stock option plan of the Corporation, including but
not limited to, the Corporation’s 2005 Long Term Incentive and Share Award Plan,
1997 Long Term Incentive and Share Award Plan for Employees, and 1995 Long Term
Incentive and Share Award Plan, as the same may be amended from time to time, to
the extent such stock options or shares of restricted stock have not vested as
of such date; any such options shall continue to be exercisable, with respect to
options granted prior to October 31, 1998 for 90 days, and for options granted
subsequent to October 31, 1998, for twelve (12) months following the date of
involuntary or voluntary termination of employment under this Agreement as
described above, but not beyond the original term of the option.  For
purposes of this Section 3:

     

    “Cause”
shall mean (w) unauthorized use or disclosure of confidential information of the
Corporation in violation of Section 4(c) hereof; (x) conviction of, or a plea of
“guilty” or “no contest” to, a felony under the laws of the United States of
America or any state thereof; (y) embezzlement or misappropriation of the assets
of the Corporation; or (z) misconduct or gross negligence in the performance of
duties assigned to the executive employee under this Agreement.

     

    Payment
of any compensation and benefits under your Employment Agreement as amended is
contingent upon execution of the ANADIGICS standard Separation and Release
Agreement between the Corporation and the Executive which shall be executed and
delivered to the Corporation on or before the date that is 50 days following the
date of termination of employment.

     

    4.  

     

    (a)  During
your employment with the Corporation, you may not perform any work for any
company that competes with us in the manufacture and sales of RF integrated
circuits in the wireless, cable and broadband, or fiber optics markets, whether
directly or indirectly.  This includes any business set up on your own
or by you with others.  You must disclose any intention to engage in
any form of business activity outside your activities with the Corporation to
the Chief Executive Officer, which must be approved in writing prior to
commencement of those activities.

     

              (b) For a
period of twelve (12) months after termination of your employment with the
Corporation, either by the Corporation or by your resignation, you agree not to
hire, solicit to hire, or be involved in the solicitation of any employees of
the Corporation or any of its subsidiaries.

     

              (c) During
and after your employment with the Corporation you are required to protect the
confidentiality of information you use or become party to.  You may
not disclose confidential information to any unauthorized third
party.  This includes but is not limited to information related to
technology, intellectual property, strategic business plans, transformation
initiatives, suppliers, and clients.  Your dealings with suppliers and
clients must always be managed in the best interest of the
Corporation.  Any confidential information you are a party to may only
be used in the interest of the Corporation in the context of the Corporation’s
legitimate relationships with suppliers, clients and any authorized third
party.  Such information must not be used for any other purpose,
including personal gain.  In addition, you are reminded of the
restrictions and conditions of employment described in the Proprietary
Information Agreement signed by you and on file in the Human Resources
Department.  Any breach of confidentiality will subject you to
immediate termination.

     

                (d) Failure
to comply with the provisions of this Section 4 shall subject you to the
immediate termination of any of your unexercised stock options.

     

    5. The
following additional new benefits are provided to the executive employee as part
of this agreement:

     

               (a) A
confidential annual physical exam through the Corporation’s contracted vendor,
Executive Health Group.  The physical exams are scheduled during the
executive’s month of birth each year at no cost to the executive.

     

                    (b) In order
to provide for financial peace of mind, an allowance of up to $2,000 per year
for financial planning.

     

                    (c) Indemnification
protection for any lawsuit brought against the Corporation as detailed in
Article VII, Section 4 of the Corporation bylaws.

     

    6. Confidentiality:  The
terms and conditions of this Agreement are to be private and confidential, and
you agree not to disclose any of these terms and conditions to any person except
your spouse, your attorney or your tax advisor, unless disclosure is necessary
to carry out the terms of this Agreement, or to supply information to any taxing
authority, or is otherwise required by law.

     

    7. Disputes:  You
agree that any dispute or claim with respect to any provision of this agreement
or your employment must be presented to the Chief Executive Officer within three
(3) months of the occurrence.

     

    8. 

     

    (a)           It
is intended that this Agreement will comply with Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and any regulations and guidelines
promulgated thereunder (collectively, “Section 409A”), to the extent the
Agreement is subject thereto, and the Agreement shall be interpreted on a basis
consistent with such intent.  If an amendment of the Agreement is
necessary in order for it to comply with Section 409A, the parties hereto will
negotiate in good faith to amend the Agreement in a manner that preserves the
original intent of the parties to the extent reasonably possible.  No
action or failure to act pursuant to this Section 10 shall subject the
Corporation to any claim, liability, or expense, and the Corporation shall not
have any obligation to indemnify or otherwise protect Executive from the
obligation to pay any taxes, interest or penalties pursuant to Section
409A.

     

    (b)           Notwithstanding
any provision to the contrary in this Agreement, if Executive is deemed on the
date of his “separation from service” (within the meaning of Treas. Reg.
Section 1.409A-1(h)) with the Corporation to be a “specified employee”
(within the meaning of Treas. Reg. Section 1.409A-1(i)), then with regard
to any payment or benefit that is considered deferred compensation under Section
409A payable on account of a “separation from service” that is required to be
delayed pursuant to Section 409A(a)(2)(B) of the Code (after taking into account
any applicable exceptions to such requirement), such payment or benefit shall be
made or provided on the date that is the earlier of (i) the expiration of the
six (6)-month period measured from the date of Executive’s “separation from
service,” or (ii) the date of Executive’s death (the “Delay
Period”).  Upon the expiration of the Delay Period, all payments and
benefits delayed pursuant to this Section 10 (whether they would have otherwise
been payable in a single sum or in installments in the absence of such delay)
shall be paid or reimbursed to Executive in a lump sum and any remaining
payments and benefits due under this Agreement shall be paid or provided in
accordance with the normal payment dates specified for them
herein.  Notwithstanding any provision of this Agreement to the
contrary, for purposes of any provision of this Agreement providing for the
payment of any amounts or benefits upon or following a termination of
employment, references to Executive’s “termination of employment” (and corollary
terms) with the Corporation shall be construed to refer to Executive’s
“separation from service” (within the meaning of Treas. Reg. Section
1.409A-1(h)) with the Corporation.

     

    (c)           With
respect to any reimbursement or in-kind benefit arrangements of the Corporation
and its subsidiaries that constitute deferred compensation for purposes of
Section 409A, except as otherwise permitted by Section 409A, the following
conditions shall be applicable: (i) the amount eligible for reimbursement,
or in-kind benefits provided, under any such arrangement in one calendar year
may not affect the amount eligible for reimbursement, or in-kind benefits to be
provided, under such arrangement in any other calendar year (except that the
health and dental plans may impose a limit on the amount that may be reimbursed
or paid), (ii) any reimbursement must be made on or before the last day of
the calendar year following the calendar year in which the expense was incurred,
and (iii) the right to reimbursement or in-kind benefits is not subject to
liquidation or exchange for another benefit.  Whenever a payment under
this Agreement specifies a payment period with reference to a number of days
(e.g., “payment
shall be made within thirty (30) days after termination of employment”), the
actual date of payment within the specified period shall be within the sole
discretion of the Corporation.  Whenever payments under this Agreement
are to be made in installments, each such installment shall be deemed to be a
separate payment for purposes of Section 409A.

     

    

     

    
      	
              Signatures:

               

            	 
      
	
              /s/ Gilles
      Delfassy                                                                

              ANADIGICS,
      Inc.

              By:
      Gilles Delfassy

              President
      and CEO

            	
              /s/ Mohammad Ali Khatibzadeh

              Mohammad
      Ali Khatibzadeh

              Senior
      Vice President, General Manager of Wireless Business

            
	
              January 27,
      2009                                                                

            	
              January 27,
      2009                                                                

            
	
              Date

            	
              Date

            

    

    

    
      
        
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    ANNEX
A

     

    Change
In Control

     

    Change in
Control.  A Change in Control of the Corporation shall be
deemed to have occurred if (i) any “Person” as such term is used in Section
13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Corporation, any trustee or other fiduciary
holding securities under an employee benefit plan of the Corporation, or any
corporation owned, directly or indirectly, by the stockholders of the
Corporation in substantially the same proportions as their ownership of stock of
the Corporation), is or 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, (ii) during any 12-month period (not
including any period prior to the execution of this Agreement), individuals who
at the beginning of such period constituted the Board, and any new director
(other than a director designated by a person who has entered into an agreement
with the Corporation to effect a transaction described in subclauses (i), (iii)
or (iv) of this paragraph) whose election by the Board or nomination for
election by the Corporation’s stockholders was approved by a vote of at least
66-2/3% of the members of the Board 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, cease for any reason to constitute at least
a majority thereof, (iii) the Corporation’s stockholders approve a merger or
consolidation of the Corporation with any other corporation, other than (A) a
merger or consolidation which would result in the voting securities of the
Corporation outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of
the surviving entity) more than 50% of the combined voting power of the voting
securities of the Corporation or such surviving entity outstanding immediately
after such merger or consolidation or (B) a merger or consolidation effected to
implement a recapitalization of the Corporation (or similar transaction) in
which no “person” (as defined above) acquires more than 50% of the combined
voting power of the Corporation’s then outstanding securities, or (iv) the
stockholders of the Corporation approve a plan of complete liquidation of the
Corporation or an agreement for the sale or disposition by the Corporation of
all or substantially all of the Corporation’s assets.EX-10.1

Exhibit 10.1

Confidential Communication to: «First_name» «Last_name»

As we complete this fiscal year and begin another, I would like to take a moment to congratulate
you and to thank you for your performance and commitment to our goals both in the past and most
importantly looking forward. You play an important role in the future performance of our Company.

One of the priorities of our management compensation program is to provide you with the opportunity
to share in the long-term success of Air Products. As a result, I am pleased to present your 2009
stock awards under the Company’s Long-Term Incentive Plan. These awards make up the long-term
component of your total pay package and link your personal wealth to the performance of the
Company.

In 2008, we were tracking another record year and, as you know, we ended the year on a
disappointing note. While these circumstances are unsettling to all of us, we have learned from
our experience that we can weather these times by being smart about our choices. It is extremely
important that we balance our long-term growth goals with a steadfast resolve to improve our
margins by managing our costs, improving pricing and acting with an unwavering commitment to
continuously improving our processes. Our shareholders demand this and we must expect no less of
ourselves. Over the next few years, our focus and priority to achieve our goals of growth
and margin improvement will have the greatest impact on delivering EPS growth which will
enhance the value of our stock price and hence, your award. I appreciate your hard work and I know
you understand that through the actions of your teams and you, we will make the difference for our
customers, employees and shareholders.

Your 2009 awards are valued at $<Tot Value> and include:

	•	 	A Nonstatutory Stock Option to purchase «Stock_Option» shares of Common Stock at a purchase
price of $66.90 per share, which is the 1 October 2008 closing sale price of a share of Common
Stock, valued at $<SO Value>; and
	 
	•	 	An award of «RSU» 4-Year Restricted Shares of Company Common Stock issued to you as of 2
October 2008 valued at $<RS Value>; and
	 
	•	 	«Perf_Share» Deferred Stock Units with a three year performance period valued at $<PS
Value>, each Unit (a “Performance Share”) being equivalent in value to one share of Common
Stock. Please note the performance share Earnout Schedule which is part of this Awards
Agreement will be sent to you in a separate communication after finalization by the Management
Development and Compensation Committee of the Company’s Board of Directors (the “Committee”).
The Schedule will display how the growth and return measures will define payout opportunities.

We are committed to offering long-term incentive awards for our employees who contribute to our
success — both now and in the future. Thank you again for your dedication and on-going
contributions to Air Products.

Your 2009 Awards are subject to and contingent upon your agreement to the attached conditions
described in Exhibit A. Please read these conditions carefully, particularly the descriptions of
“Prohibited Activities”. This letter, together with its Exhibit, constitutes the agreement
governing your

 

 

2009 Awards (“Awards Agreement”). Your 2009 Awards are also at all times subject to the applicable
provisions of the Long-Term Incentive Plan (the “Plan”) and to any determinations made by the
Committee (or its delegate) with respect to your 2009 Awards as contemplated or permitted by the
Plan or the Conditions. In addition, the Committee has established a one-year holding period for a
portion of your Nonstatutory Stock Option. You are expected to hold, for one year, 50% of the net
shares (after taxes and commissions) that you receive upon an exercise of the Stock Option.

Neither your 2009 Awards, this Awards Agreement or the Plan constitute a contract of employment;
nor do they guarantee your continued employment for any period required for all or any of your 2009
Awards to vest, become exercisable, be earned or be paid out. Except as otherwise indicated all
capitalized words used in this Awards Agreement have the meanings described in the Plan.

WITNESSETH the due execution of this Awards Agreement at Allentown, Pennsylvania effective as of
the 1st day of October 2008 intending to be legally bound hereby.

	 	 	 	 	 
	 	AIR PRODUCTS AND CHEMICALS, INC.

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

Exhibit

 

 

EXHIBIT A

AIR PRODUCTS AND CHEMICALS, INC. (the “Company”)

LONG-TERM INCENTIVE PLAN

FY2009 AWARD AGREEMENT

	1.	 	As described in the foregoing grant letter, you are hereby granted FY2009 Awards consisting
of Stock Options (“Options”), Restricted Shares of Company Common Stock (“Restricted
Shares”), and Deferred Stock Units to be called “Performance Shares” under the Air Products
and Chemicals, Inc. Long-Term Incentive Plan (the “Plan”). The Options are “Nonstatutory
Stock Options” as described in Section 6 of the Plan. The Restricted Shares are described in
Section 8 of the Plan. The Deferred Stock Units are described in Section 9 of the Plan. The
Management Development and Compensation Committee of the Company’s Board of Directors has
approved these Awards subject to the applicable provisions of the Plan and the terms of this
Agreement, and contingent upon your execution of this Agreement. Except as noted herein, all
capitalized terms used in this Agreement have the meaning ascribed to them in the Plan. A
copy of the Plan is available from the Corporate Secretary’s Office of the Company, 7201
Hamilton Boulevard, Allentown, PA 18195-1501.
	 
	2.	 	Each Option entitles you to purchase one share of Company Common Stock (“Share”) at a
purchase price of $66.90 (the “Grant Price”) as described below. You can first purchase
Shares as follows: (i) up to one-third of the Shares may be purchased on or after 1 October
2009 and (ii) up to an additional one-third of such Shares may be purchased on or after 1
October 2010 and 2011, respectively. The Options are granted as of 1 October 2008 and will
continue for a period of ten (10) years from such grant date and will expire and no longer be
exercisable after 1 October 2018.
	 
	3.	 	You may purchase Shares covered by an Option by providing to the Company’s agent, Fidelity
Stock Plan Services, LLC (“Fidelity”), notice of exercise of the Option in a form designated
by Fidelity and the Grant Price of the Shares. Payment of the Grant Price and applicable
taxes may be made in cash or by providing an irrevocable exercise notice coupled with
irrevocable instructions to Fidelity to simultaneously sell the Shares and deliver to the
Company on the settlement date the portion of the proceeds representing the Grant Price and
any taxes to be withheld. Payment of the Grant Price may also be made by delivery or
attestation of ownership of other Shares of Common Stock owned by you, in which case the
number of Shares acquired in the exercise will be reduced by an amount equal in value to the
amount of any taxes required to be withheld and by any Shares attested.
	 
	4.	 	Your Options terminate as of the close of business on the last day of your employment with
the Company and all its Subsidiaries, unless your employment ends due to your death,
Disability or Retirement on or after 30 September 2009. Upon your, death, Disability or
Retirement on or after 30 September 2009, any unexercisable portion of the Options will be
extended for the remaining term of the award (that is, will become exercisable) as if you
have continued to be an active employee of the Company or a Subsidiary. Notwithstanding the
above, if your employment with the Company or a Subsidiary is involuntarily terminated by the
Company on or after 30 September 2009 due to action necessitated by business conditions,
including, but not limited to, job eliminations, workforce reductions, divestitures of
facilities, assets or businesses, sale by the Company of a Subsidiary or plant closing, your
exercisable Options will not be

 

 

	 	 	terminated but will continue to be exercisable in accordance with their terms for six months
following your last day of employment with the Company or a Subsidiary.
	 
	5.	 	In the event of a Change in Control, the Options become exercisable on the later of the
Change in Control or the first date more than six months from grant. In the event of any
other change in the outstanding shares of the Common Stock of the Company or the occurrence
of certain other awards described in Section 12 of the Plan, an equitable adjustment shall be
made in the number or kind of Shares or the Grant Price for Shares covered by your Options.
	 
	6.	 	Options are nonassignable and nontransferable except to your Designated Beneficiary, by
will or the laws of descent and distribution, or by gift to family members or to trusts of
which only family members are beneficiaries. Transfers by gift can be made only after the
Option has become exercisable and subject to such administrative procedures and to such
restrictions and conditions as the officers of the Company shall determine to be consistent
with the purposes of the Plan and the interests of the Company and/or to be necessary or
appropriate for compliance with all applicable tax and other legal requirements. Subject to
the foregoing, you may transfer Options by gift only by delivering to the Company at its
principal offices in Allentown, Pennsylvania, written notice of the intent to transfer the
Options on forms to be provided by the Company.
	 
	7.	 	The Restricted Shares shall be issued to you, contingent upon your execution of this
Agreement, as of 2 October 2008. Upon issuance of the Restricted Shares, you shall have all
the rights of a shareholder with respect to the Restricted Shares, including the right to
vote such Restricted Shares and receive all dividends or other distributions paid with
respect to the Restricted Shares, subject to the restrictions contained in Paragraph 8 below.
In the event of any change in the outstanding shares of Common Stock of the Company or the
occurrence of certain other events described in Section 12 of the Plan, an equitable
adjustment of the number of Restricted Shares covered by this Agreement shall be made
consistent with the impact of such change or event upon the rights of the Company’s other
shareholders, and any additional Shares of Common Stock issued to you as a result of such
adjustment shall be Restricted Shares subject to this Agreement, including, without
limitation, the restrictions contained in Paragraph 8.
	 
	8.	 	The “Restriction Period” with respect to the Restricted Shares shall be the period
beginning 2 October 2008 and ending on the earliest of 1 October 2012; your death, Disability
or Retirement on or after 30 September 2009, or a Change in Control of the Company. During
the Restriction Period, the Restricted Shares may not be sold, assigned, transferred,
encumbered, or otherwise disposed of by you; provided however, that such Restricted Shares
may be used to pay the Grant Price by attestation upon your exercise of Stock Options, with
the stipulation that the Restricted Shares attested will remain subject to the restrictions
of this Paragraph 8 and the terms of this Agreement. If your employment by the Company and
all its Subsidiaries is terminated for any reason prior to 30 September 2009, or for any
reason other than death, Disability or Retirement prior to 1 October 2012, the Restricted
Shares shall be forfeited in their entirety; provided that, in the event of a Change in
Control of the Company, your rights to the Restricted Shares shall become immediately
transferable and nonforfeitable. At the end of the Restriction Period, all nonforfeited
Restricted Shares shall become transferable and otherwise be regular Shares.
	 
	9.	 	At the end of the Restriction Period, and, if earlier, upon your election to include the
value of the Restricted Shares in your federal taxable income pursuant to Internal Revenue
Code Section 83(b), payment of taxes required to be withheld by the Company must be made.
When taxation occurs at the end of the Restriction Period, applicable taxes will be withheld
by reducing

 

 

	 	 	the number of the Restricted Shares issued to you by an amount equal in market
value to the taxes
required to be withheld. In the event you make a Section 83(b) election, applicable taxes
must be paid in cash to the Company at the time the election is filed with the Internal
Revenue Service.
	 
	10.	 	In the event your employment is terminated due to your death on or after 30 September 2009,
the Restricted Shares shall be transferred free of restriction, reduced by any applicable
taxes, to your Designated Beneficiary or, if none, to your legal representative.
	 
	11.	 	The Performance Shares granted to you are associated with a three year performance cycle
ending 30 September 2011. The final version of the performance share payout schedule will be
sent to you in a separate communication. The schedule will display how the growth and return
measures will define payout opportunities. Subject to the forfeiture conditions contained in
Paragraph 12, each earned Performance Share will entitle you to receive, at the end of the
Deferral Period (as defined below), one Share.
	 
	12.	 	The Deferral Period will begin on the date of this Agreement and will end on 1 October 2011.
If your employment by the Company and all its affiliates is terminated for any reason prior to
30 September 2009, all your Performance Shares will be automatically forfeited in their
entirety. If your employment by the Company and all its affiliates terminates on or after 30
September 2009, but during the Deferral Period, other than due to death, Disability or
Retirement, you will forfeit all of your Performance Shares. If your employment by the
Company and all its affiliates is terminated on or after 30 September 2009, but during the
Deferral Period, due to death, Disability or Retirement, you will forfeit a pro-rata portion
of your earned Performance Shares which portion in each case shall be based on the number of
full months you worked following 30 September 2008.
	 
	13.	 	Performance Shares earned and not forfeited shall be paid, reduced by the number of Shares
equal in market value to any applicable taxes, as soon as administratively practical after the
end of the Deferral Period, in Shares. No cash dividends or other amounts shall be payable
with respect to the Performance Shares during the Deferral Period. At the end of the Deferral
Period, for each earned and nonforfeited Performance Share, the Company will also pay to you a
cash payment equal to the dividends which would have been paid on a Share during the Deferral
Period (“Dividend Equivalents”), net of applicable taxes.
	 
	14.	 	If your employment by the Company or a Subsidiary terminates during the Deferral Period due
to death, payment in respect of earned Performance Shares that are not forfeited and of
related Dividend Equivalents shall be made, as soon as practical after the Deferral Period, to
your Designated Beneficiary or, if none, your legal representative, net of applicable taxes.
	 
	15.	 	In the event of any change in the outstanding Shares of Common Stock of the Company or the
occurrence of certain other events as described in Section 12 of the Plan, an equitable
adjustment of the number of Performance Shares covered by this Agreement shall be made as
provided in the Plan.
	 
	16.	 	Notwithstanding anything to the contrary above, any Performance Shares earned or paid and any
related Dividend Equivalents paid to you may be rescinded within three years of their payment
in the event: the earning of such Performance Shares is predicated upon the achievement of
financial results that are subsequently the subject of a restatement; the Committee determines
in its sole discretion that you engaged in misconduct that caused or partially caused the need
for the restatement; and the Performance Shares would not have been earned or a lesser amount
of

 

 

	 	 	Performance Shares would have been earned based upon the restated financial results. In
the event of any such rescission, you shall pay to the Company the amount of any gain realized
or
payment received as a result of any rescinded payment, in such manner and on such terms as may
be required, and the Company shall be entitled to set off against the amount of any such gain
or payment any amount owed to you by the Company or any Subsidiary.
	 
	17.	 	In the event the Company determines, in its sole discretion, that you have engaged in a
“Prohibited Activity” (as defined below), at any time during your employment, or within one
year after termination of your employment from the Company or any Subsidiary, the Company may
forfeit, cancel, modify, rescind, suspend, withhold, or otherwise limit or restrict any
unexpired, unpaid, unexercised, or deferred Awards outstanding under this Agreement, and any
exercise, payment, or delivery of an Award or Shares pursuant to an Award may be rescinded
within six months after such exercise, payment, or delivery. In the event of any such
rescission, you shall pay to the Company the amount of any gain realized or payment received
as a result of the rescinded exercise, payment, or delivery, in such manner and on such terms
as may be required, and the Company shall be entitled to set off against the amount of any
such gain or payment any amount owed to you by the Company or any Subsidiary.

The Prohibited Activities are:

	 	(a)	 	Nondisparagement — making any statement, written or verbal, in any forum or media,
or taking any action in disparagement of the Company or any Subsidiary or affiliate
thereof (hereinafter, the “Company”), including but not limited to negative references to
the Company or its products, services, corporate policies, current or former officers or
employees, customers, suppliers, or business partners or associates;
	 
	 	(b)	 	No Publicity — publishing any opinion, fact, or material, delivering any lecture
or address, participating in the making of any film, radio broadcast, or television
transmission; or communicating with any representative of the media relating to
confidential matters regarding the business or affairs of the Company which you were
involved with during your employment;
	 
	 	(c)	 	Nondisclosure of Trade Secrets — failure to hold in confidence all Trade Secrets
of the Company that came into your knowledge during your employment by the Company, or
disclosing, publishing, or making use of at any time such Trade Secrets, where the term
“Trade Secret” means any technical or nontechnical data, formula, pattern, compilation,
program, device, method, technique, drawing, process, financial data, financial plan,
product plan, list of actual or potential customers or suppliers, or other information
similar to any of the foregoing, which (i) derives economic value, actual or potential,
from not being generally known to and not being readily ascertainable by proper means by,
other persons who can derive economic value from its disclosure or use, and (ii) is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy;
	 
	 	(d)	 	Nondisclosure of Confidential Information — failure to hold in confidence all
Confidential Information of the Company that came into your knowledge during your
employment by the Company, or disclosing, publishing, or making use of such Confidential
Information, where the term “Confidential Information” means any data or information,
other than Trade Secrets, that is valuable to the Company and not generally known to the
public or to competitors of the Company;

 

 

	 	(e)	 	Return of Materials — your failure, in the event of your termination of employment
for any reason, promptly to deliver to the Company all memoranda, notes, records,
manuals, or other documents, including all electronic or other copies of such materials
and all
documentation prepared or produced in connection therewith, containing Trade Secrets or
Confidential Information regarding the Company’s business, whether made or compiled by
you or furnished to you by virtue of your employment with the Company; or your failure
promptly to deliver to the Company all vehicles, computers, credit cards, telephones,
handheld electronic devices, office equipment, and other property furnished to you by
virtue of your employment with the Company;
	 
	 	(f)	 	Noncompete and Nonsolicitation — rendering services for any organization as an
employee, officer, director, consultant, advisor, agent, broker, independent contractor,
principal, or partner, or engaging directly or indirectly in any business which, in the
sole judgment of the Company, is or becomes competitive with the Company during the one
(1) year period following the termination of your employment; or directly or indirectly
soliciting any customer, supplier, contractor, employee, agent, or consultant of the
Company with whom you had contact during the last two years of your employment with the
Company or became aware of through your employment with the Company, to cease doing
business with, or to terminate their employment or business relationship with, the
Company; or
	 
	 	(g)	 	Violation of Company Policies — violating any written policies of the Company
applicable to you, including, without limitation, the Company’s insider trading policy.

	 	 	The provisions of this Section 17 are in addition to, and shall not supersede, the terms of
your Employee Patent and Confidential Information Agreement entered at the time you were
employed by the Company.
	 
	 	 	You expressly acknowledge and affirm that the foregoing provisions of this Section 17 are
material and important terms of this Agreement and that your agreement to be bound by the
terms of this Section 17 is a condition precedent to your FY2009 Awards.
	 
	18.	 	All determinations regarding the interpretation, construction, enforcement, waiver, or
modification of this Agreement and/or the Plan shall be made in the Company’s sole discretion
or, in the case of Executive Officer Awards, by the Committee in its sole discretion and shall
be final and binding on you and the Company. Determinations made under this Agreement and the
Plan need not be uniform and may be made selectively among individuals, whether or not such
individuals are similarly situated.
	 
	19.	 	If any of the terms of this Agreement in the opinion of the Company conflict or are
inconsistent with any applicable law or regulation of any governmental agency having
jurisdiction, the Company reserves the right to modify this Agreement to be consistent with
applicable laws or regulations.
	 
	20.	 	You understand and acknowledge that the Company holds certain personal information about you,
including but not limited to your name, home address, telephone number, date of birth, social
security number, salary, nationality, job title, and details of all Shares awarded, cancelled,
vested, unvested, or outstanding (the “personal data”). Certain personal data may also
constitute “sensitive personal data” within the meaning of applicable local law. Such data
include but are not limited to the information provided above and any changes thereto and
other appropriate personal and financial data about you. You hereby provide explicit consent
to the Company and any Subsidiary to process any such personal data and sensitive personal
data. You also hereby

 

 

	 	 	provide explicit consent to the Company and any Subsidiary to transfer
any such personal data and sensitive personal data outside the country in which you are
employed, and to the United
States. The legal persons for whom such personal data are intended are the Company and any
third party providing services to the Company in connection with the administration of the
Plan.
	 
	21.	 	By accepting this award, you acknowledge having received and read the Plan Prospectus, and
you consent to receiving information and materials in connection with this Award or any
subsequent awards under the Company’s long-term performance plans, including without
limitation any prospectuses and plan documents, by any means of electronic delivery available
now and/or in the future (including without limitation by e-mail, by Website access, and/or by
facsimile), such consent to remain in effect unless and until revoked in writing by you. This
Agreement and the Plan, which is incorporated herein by reference, constitute the entire
agreement between you and the Company regarding the terms and conditions of this Award.
	 
	22.	 	You submit to the exclusive jurisdiction and venue of the federal or state courts of the
Commonwealth of Pennsylvania to resolve all issues that may arise out of or relate to and all
determinations made under this Agreement. This Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania, without regard to conflicts or choice of law rules or
principles.
	 
	23.	 	If any court of competent jurisdiction finds any provision of this Agreement, or portion
thereof, to be unenforceable, that provision shall be enforced to the maximum extent
permissible so as to effect the intent of the parties, and the remainder of this Agreement
shall continue in full force and effect.
	 
	24.	 	Neither your FY2009 Awards, this Award Agreement, nor the Plan constitute a contract of
employment; nor do they guarantee your continued employment for any period required for all or
any of your Options to vest or become exercisable.

 

 

SUPPLEMENT TO EXHIBIT A OF

THE 2009 LONG-TERM INCENTIVE PLAN AWARDS AGREEMENT

As noted in the agreement governing your 2009 awards under the Long-Term Incentive Plan, which was
offered to you via an email dated 13 October 2008 and must be accepted by you no later than 31
December 2008 (“Awards Agreement”), Performance Shares granted to you will be earned based on
certain performance metrics which were not finalized by the Management Development and Compensation
Committee of the Board of Directors at the time the Awards Agreement was transmitted to you. At
its November meeting, the Committee approved the Performance Shares payout schedule (attached) for
the 1 October 2008 to 30 September 2011 measurement period. After the conclusion of the
performance cycle, the Committee will determine the level of performance and approve the payout
percentage of the Performance Shares based on the weighted average of the Payout Factors in the
schedule below. The payout percentage will be multiplied by the number of Performance Shares
indicated in your Awards Agreement to determine the number of shares you will receive.

The measurements for this three-year period will emphasize both growth and returns. Growth will be
measured by the change in Earnings per Share (EPS growth) over the prior year and will be weighted
at 33%. Return will be measured based on the spread between the Return on Capital Employed (ROCE)
over the Company’s cost of capital as calculated by Corporate Treasury, and will be weighted at
67%. Each of these metrics will be measured on an annual basis, totaled, then divided by three to
determine the average performance for the measurement period.

 

 

Fiscal Year 2009 Performance Share Awards Payout Schedule

(33% Growth and 67% Return)

	 	 	 
	EPS Growth
	 	Payout
	 
	 	 
	-10%
	 	    0%
	  0%
	 	  35%
	  4%
	 	  50%
	  7%
	 	  80%
	  9%
	 	100%
	10%
	 	120%
	11%
	 	130%
	13%
	 	160%
	15%
	 	180%
	16%
	 	200%

	 	 	 
	ROCE Spread

(ROCE over Cost of Capital)
	 	Payout
	 
	 	 
	< 0%
	 	    0%
	   0%
	 	  50%
	+1%
	 	  75%
	+2%
	 	100%
	+3%
	 	150%
	+4%
	 	200%

This Supplement shall be incorporated into Exhibit A of the Awards Agreement and shall be part of
the Awards Agreement.

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