Document:

exv4w1

    Exhibit 4.1

 

    AMENDED
    AND RESTATED

    NUANCE COMMUNICATIONS, INC. (FORMERLY KNOWN AS SCANSOFT,
    INC.)

    

    1995 EMPLOYEE STOCK PURCHASE PLAN

 

    The following constitute the provisions of the 1995 Employee
    Stock Purchase Plan of Nuance Communications, Inc (formerly
    known as ScanSoft, Inc.), as proposed to be amended and restated:

 

    1. Purpose.  The purpose of the Plan is to
    provide employees of the Company and its Designated Subsidiaries
    with an opportunity to purchase Common Stock of the Company. It
    is the intention of the Company to have the Plan qualify as an
    “Employee Stock Purchase Plan” under Section 423
    of the Internal Revenue Code of 1986, as amended. The provisions
    of the Plan shall, accordingly, be construed so as to extend and
    limit participation in a manner consistent with the requirements
    of that section of the Code.

 

    2. Definitions.

 

    (a) ‘‘Board” shall mean the Board of
    Directors of the Company.

 

    (b) “Code” shall mean the Internal Revenue
    Code of 1986, as amended.

 

    (c) “Common Stock” shall mean the common
    stock of the Company.

 

    (d) “Company” shall mean Nuance
    Communications, Inc (formerly known as ScanSoft, Inc.), a
    Delaware corporation.

 

    (e) “Compensation” shall mean an
    Employee’s regular straight time gross earnings and shall
    not include payments for overtime, shift premium, incentive
    compensation, incentive payments, commissions, bonuses and other
    compensation.

 

    (f) “Continuous Status as an Employee”
    shall mean the absence of any interruption or termination of
    service as an Employee. Continuous Status as an Employee shall
    not be considered interrupted in the case of a leave of absence
    agreed to in writing by the Company, provided that such leave is
    for a period of not more than ninety (90) days or
    reemployment upon the expiration of such leave is guaranteed by
    contract or statute.

 

    (g) “Contributions” shall mean all amounts
    credited to the account of a participant pursuant to the Plan.

 

    (h) “Designated Subsidiary” shall mean any
    Subsidiary that has been designated by the Board from time to
    time in its sole discretion as eligible to participate in the
    Plan.

 

    (i) “Employee” shall mean any person who
    is an employee of an Employer for tax purposes and is
    customarily employed for at least twenty (20) hours per
    week and more than five (5) months in a calendar year by
    the Employer.

 

    (j) “Employer” shall mean the Company and
    any Designated Subsidiary of the Company.

 

    (k) “Exchange Act” shall mean the
    Securities Exchange Act of 1934, as amended.

 

    (l) “Offering Date” shall mean the first
    Trading Day of each Offering Period.

 

    (m) “Offering Period” shall mean a period
    of approximately twelve (12) months during which an option
    granted pursuant to the Plan may be exercised, commencing on the
    first Trading Day on or after February 16 and August 16 of each
    year and terminating on the last Trading Day in the periods
    ending twelve (12) months later. The duration and timing of
    Offering Periods may be changed pursuant to Section 4
    hereof.

 

    (n) “Plan” shall mean this 1995 Employee
    Stock Purchase Plan.

 

    (o) “Purchase Date” shall mean the last
    Trading Day of each Purchase Period.

    

    1

 

    (p) “Purchase Period” shall mean the
    approximately six (6) month period commencing after one
    Purchase Date and ending with the next Purchase Date, except
    that the first Purchase Period of any Offering Period shall
    commence on the Offering Date and end with the next Purchase
    Date.

 

    (q) “Subsidiary” shall mean a corporation,
    domestic or foreign, of which not less than fifty percent (50%)
    of the voting shares are held by the Company or a Subsidiary,
    whether or not such corporation now exists or is hereafter
    organized or acquired by the Company or a Subsidiary.

 

    (r) “Trading Day” shall mean a day on
    which U.S. national stock exchanges and the Nasdaq System
    are open for trading.

 

    3. Eligibility.

 

    (a) Any person who is an Employee as of the Offering Date
    of a given Offering Period shall be eligible to participate in
    such Offering Period under the Plan, subject to the requirements
    of Section 5(a) hereof and the limitations imposed by
    Section 423(b) of the Code.

 

    (b) Any provisions of the Plan to the contrary
    notwithstanding, no Employee shall be granted an option under
    the Plan (i) if, immediately after the grant, such Employee
    (or any other person whose stock would be attributed to such
    Employee pursuant to Section 424(d) of the Code) would own
    stock and/or
    hold outstanding options to purchase stock possessing five
    percent (5%) or more of the total combined voting power or value
    of all classes of stock of the Company or of any Subsidiary, or
    (ii) if such option would permit his or her rights to
    purchase stock under all employee stock purchase plans
    (described in Section 423 of the Code) of the Company and
    its Subsidiaries to accrue at a rate which exceeds twenty-five
    thousand dollars ($25,000) worth of stock (determined at the
    fair market value of such stock at the time such option is
    granted) for each calendar year in which such option is
    outstanding at any time.

 

    4. Offering Periods.  The Plan shall be
    implemented by a series of consecutive, overlapping Offering
    Periods, with a new Offering Period commencing on the first
    Trading Day on or after February 16 and August 16 of each year
    (or at such other time or times as may be determined by the
    Board), and continuing thereafter until terminated in accordance
    with Section 19 hereof. The Board shall have the power to
    change the duration
    and/or the
    frequency of Offering Periods (including the commencement dates
    thereof) with respect to future offerings without stockholder
    approval if such change is announced at least fifteen
    (15) days prior to the scheduled beginning of the first
    Offering Period to be affected thereafter. Eligible Employees
    may not participate in more than one Offering Period at a time.

 

    5. Participation.

 

    (a) An Employee who is eligible to participate in the Plan
    pursuant to Section 3 hereof may become a participant in
    the Plan by completing an enrollment form provided by the
    Company for such purpose and filing it with the Company’s
    payroll office prior to the applicable Offering Date, unless a
    later time for filing the enrollment form is set by the Board
    for all eligible Employees with respect to a given Offering
    Period.

 

    (b) Payroll deductions for a participant shall commence on
    the first payroll paid following the Offering Date and shall end
    on the last payroll paid in the Offering Period to which the
    enrollment form is applicable, unless sooner terminated by the
    participant as provided in Section 10 hereof.

 

    6. Method of Payment of Contributions.

 

    (a) At the time a participant files his or her enrollment
    form as provided in Section 5 hereof, he or she shall elect to
    have payroll deductions made on each payday during the Offering
    Period in an amount not less than one percent (1%) and not more
    than twelve percent (12%) of such participant’s
    Compensation on each such payday. All payroll deductions made
    for a participant shall be credited to his or her account under
    the Plan and shall be withheld in whole percentages only. A
    participant may not make any additional payments into such
    account.

 

    (b) A participant may discontinue his or her participation
    in the Plan as provided in Section 10 hereof, or, on one
    occasion only during the Offering Period, may decrease the rate
    of his or her Contributions during the Offering Period by
    completing and filing with the Company a new enrollment form
    authorizing the decrease in Contribute rate. The change in rate
    shall be effective as of the beginning of the next calendar
    month following the date of the

    

    2

 

    Company’s receipt of the new enrollment form, if the form
    is received at least ten (10) business days prior to such
    date and, if not, as of the beginning of the next succeeding
    calendar month. A participant’s enrollment form shall
    remain in effect for successive Offering Periods unless
    terminated as provided in Section 10 hereof.

 

    (c) Notwithstanding the foregoing, to the extent necessary
    to comply with Section 423(b)(8) of the Code and
    Section 3(b) hereof, a participant’s Contributions may
    be decreased to zero percent (0%) at any time during a Offering
    Period. Contributions shall recommence at the rate provided in
    such participant’s enrollment form at the beginning of the
    first Purchase Period which is scheduled to end in the following
    calendar year, unless terminated by the participant as provided
    in Section 10 hereof.

 

    (d) At the time the option is exercised, in whole or in
    part, or at the time some or all of the Common Stock issued
    under the Plan is disposed of, the participant must make
    adequate provision for the Company’s federal, state, or
    other tax withholding obligations, if any, which arise upon the
    exercise of the option or the disposition of the Common Stock.
    At any time, the Company may, but shall not be obligated to,
    withhold from the participant’s compensation the amount
    necessary for the Company to meet applicable withholding
    obligations, including any withholding required to make
    available to the Company any tax deductions or benefits
    attributable to the sale or early disposition of Common Stock by
    the participant.

 

    7. Grant of Option.

 

    (a) On the Offering Date of each Offering Period, each
    eligible Employee participating in such Offering Period shall be
    granted an option to purchase on each Purchase Date during such
    Offering Period a number of shares of Common Stock determined by
    dividing such participant’s Contributions accumulated prior
    to such Purchase Date and retained in the participant’s
    account as of the Purchase Date by the purchase price specified
    in Section 7(b) below; provided, however, that the maximum
    number of shares a participant may purchase during each Purchase
    Period shall be two thousand (2,000) shares (subject to any
    adjustment pursuant to Section 18 hereof), and provided
    further that such purchase shall be subject to the limitations
    set forth in Sections 3(b) and 13 hereof. The Board may,
    for future Offering Periods, increase or decrease, in its
    absolute discretion, the maximum number of shares of Common
    Stock that a participant may purchase during each Purchase
    Period of such Offering Period. Exercise of the option shall
    occur as provided in Section 8 hereof, unless the
    participant has withdrawn pursuant to Section 10 hereof.
    The option shall expire on the last day of the Offering Period.

 

    (b) The purchase price per share of Common Stock covered by
    each option granted under the Plan shall be the lower of:
    (i) eighty-five percent (85%) of the fair market value of a
    share of Common Stock on the Offering Date; or
    (ii) eighty-five percent (85%) of the fair market value of
    a share of Common Stock on the Purchase Date. The fair market
    value of the Common Stock on a given date shall be determined by
    the Board in its discretion based on the closing price of the
    Common Stock for such date (or, in the event that the Common
    Stock is not traded on such date, on the immediately preceding
    trading date), as reported by The Nasdaq National Market
    (“Nasdaq”) or, if such price is not reported, the mean
    of the bid and asked prices per share of the Common Stock as
    reported by Nasdaq or, in the event the Common Stock is listed
    on a stock exchange, the fair market value per share shall be
    the closing price on such exchange on such date (or, in the
    event that the Common Stock is not traded on such date, on the
    immediately preceding trading date), as reported in The Wall
    Street Journal.

 

    8. Exercise of Option.

 

    (a) Unless a participant withdraws from the Plan as
    provided in Section 10 hereof, his or her option for the
    purchase of shares of Common Stock will be exercised
    automatically on each Purchase Date of an Offering Period, and
    the maximum number of full shares subject to the option will be
    purchased for such participant at the applicable purchase price
    specified in Section 7(b) hereof with the accumulated
    Contributions in his or her account. The shares purchased upon
    exercise of an option hereunder shall be deemed to be
    transferred to the participant on the Purchase Date. No
    fractional shares of Common Stock shall be purchased; any
    Contributions accumulated in a participant’s account that
    are not sufficient to purchase a full share shall be retained in
    the participant’s account for the subsequent Purchase
    Period or Offering Period, subject to earlier withdrawal by the
    participant as provided in Section 10 hereof. Any other
    cash remaining to the credit of a participant’s account
    under the Plan after the Purchase Date shall be returned to said
    participant. During his or her lifetime, a participant’s
    option to purchase shares hereunder is exercisable only by him
    or her.

    

    3

 

    (b) If the Board determines that, on a given Purchase Date,
    the number of shares with respect to which options are to be
    exercised may exceed (i) the number of shares of Common
    Stock that were available for sale under the Plan on the
    Offering Date of the applicable Offering Period, or
    (ii) the number of shares available for sale under the Plan
    on such Purchase Date, the Board may in its sole discretion
    (x) provide that the Company shall make a pro rata
    allocation of the shares of Common Stock available for purchase
    on such Offering Date or Purchase Date, as applicable, in as
    uniform a manner as shall be practicable and as it shall
    determine in its sole discretion to be equitable among all
    participants exercising options to purchase Common Stock on such
    Purchase Date, and continue all Offering Period then in effect,
    or (y) provide that the Company shall make a pro rata
    allocation of the shares available for purchase on such Offering
    Date or Purchase Date, as applicable, in as uniform a manner as
    shall be practicable and as it shall determine in its sole
    discretion to be equitable among all participants exercising
    options to purchase Common Stock on such Purchase Date, and
    terminate any or all Offering Periods then in effect pursuant to
    Section 19 hereof. The Company may make pro rata allocation of
    the shares available on the Offering Date of any applicable
    Offering Period pursuant to the preceding sentence,
    notwithstanding any authorization of additional shares for
    issuance under the Plan by the Company’s shareholders
    subsequent to such Offering Date.

 

    9. Delivery.  As promptly as practicable
    following each Purchase Date on which a purchase of shares of
    Common Stock occurs, the Company shall arrange the delivery to
    each participant, as appropriate, of a certificate representing
    the shares purchased upon exercise of his or her option. If
    permitted by the Company, the shares will be electronically
    delivered to a brokerage account for the benefit of the
    participant. If the Company designates or approves a stock
    brokerage or other financial services firm (the “ESPP
    Broker”) to hold shares purchased under the Plan for the
    accounts of participants, the following procedures shall apply.
    Promptly following each Purchase Date, the number of shares of
    Common Stock purchased by each participant shall be deposited
    into an account established in the participant’s name with
    the ESPP Broker. Each participant shall be the beneficial owner
    of the Common Stock purchased under the Plan and shall have all
    rights of beneficial ownership in such Common Stock. A
    participant shall be free to undertake a disposition of the
    shares of Common Stock in his or her account at any time, but,
    in the absence of such a disposition, the shares of Common Stock
    must remain in the participant’s account at the ESPP Broker
    until the holding period set forth in Code Section 423 has
    been satisfied. With respect to shares of Common Stock for which
    the holding period set forth above has been satisfied, the
    participant may move those shares of Common Stock to another
    brokerage account of the participant’s choosing or request
    that a stock certificate be issued and delivered to him or her.
    Dividends paid in the form of shares of Common Stock with
    respect to Common Stock in a participant’s account shall be
    credited to such account.

 

    10. Voluntary Withdrawal; Termination of Employment.

 

    (a) A participant may withdraw all but not less than all
    the Contributions credited to his or her account and not yet
    used to exercise his or her option under the Plan at any time
    prior to each Purchase Date by giving written notice to the
    Company. All of the participant’s Contributions credited to
    his or her account will be paid to him or her promptly after the
    Company’s receipt of his or her notice of withdrawal and
    his or her option for the Offering Period will be automatically
    terminated, and no further Contributions for the purchase of
    shares will be made during the Offering Period. If a participant
    withdraws from an Offering Period, Contributions shall not
    resume at the beginning of the succeeding Offering Period unless
    the participant files a new enrollment form in accordance with
    Section 5 hereof.

 

    (b) Upon termination of a participant’s Continuous
    Status as an Employee prior to the Purchase Date of an Offering
    Period for any reason, including retirement or death, he or she
    will be deemed to have elected to withdraw from the Plan and the
    Contributions credited to his or her account but not yet used to
    exercise his or her option under the Plan will be returned to
    him or her or, in the case of his or her death, to the person or
    persons entitled thereto under Section 14 hereof, and his
    or her option will be automatically terminated.

 

    (c) In the event an Employee fails to remain in Continuous
    Status as an Employee for at least twenty (20) hours per
    week during the Offering Period in which the Employee is a
    participant, he or she will be deemed to have elected to
    withdraw from the Plan and the Contributions credited to his or
    her account but not yet used to exercise his or her option under
    the Plan will be returned to him or her, and his or her option
    will be automatically terminated.

    

    4

 

    (d) A participant’s withdrawal from an Offering Period
    will not have any effect upon his or her eligibility to
    participate in a succeeding Offering Period that commences after
    the termination of the Offering Period from which the
    participant withdraws or in any similar plan which may hereafter
    be adopted by the Company.

 

    11. Interest.  No interest shall accrue on
    the Contributions of a participant in the Plan.

 

    12. Stock.

 

    (a) The maximum number of shares of Common Stock which
    shall be made available for sale under the Plan shall be six
    million (6,000,000) shares, subject to adjustment upon changes
    in the capitalization of the Company as provided in
    Section 18 hereof. If the total number of shares which
    otherwise be subject to options granted pursuant to
    Section 7(a) hereof on the Offering Date of an Offering
    Period exceeds the number of shares then available under the
    Plan (after deduction of all shares for which options have been
    exercised or are then outstanding), the Company shall make a pro
    rata allocation of the shares remaining available for option
    grant in as uniform a manner as shall be practicable and as it
    shall determine to be equitable. In such event, the Company
    shall give written notice of such reduction of the number of
    shares subject to the option to each Employee affected thereby
    and shall similarly reduce the rate of Contributions, if
    necessary.

 

    (b) The participant will have no right to vote or receive
    dividends or any other rights as a shareholder of the Company
    with respect to the shares covered by his or her option until
    such option has been exercised and certificates representing
    such shares have been issued, recorded on the records of the
    Company or its transfer agents or registrars, and delivered to
    the participant as provided in Section 9 hereof.

 

    (c) Shares to be delivered to a participant under the Plan
    will be registered in the name of the participant or in the name
    of the participant and his or her spouse.

 

    13. Administration.  The Board, or a
    committee named by the Board, shall supervise and administer the
    Plan, and shall have full and exclusive discretionary power to
    adopt, amend and rescind any rules deemed desirable and
    appropriate for the administration of the Plan and not
    inconsistent with the Plan, to construe, interpret and apply the
    terms of the Plan, to determine eligibility and to adjudicate
    all disputed claims filed under the Plan, and to make all other
    determinations necessary or advisable for the administration of
    the Plan. Every finding, decision and determination made by the
    Board or its committee shall, to the fullest extent permitted by
    law, be final and binding upon all parties.

 

    14. Designation of Beneficiary.  

 

    (a) A participant may file a written designation of a
    beneficiary who is to receive any shares and cash, if any, from
    the participant’s account under the Plan in the event of
    such participant’s death subsequent to a Purchase Date on
    which the option is exercised but prior to delivery to him or
    her of such shares and cash. In addition, a participant may file
    a written designation of a beneficiary who is to receive any
    cash from the participant’s account under the Plan in the
    event of such participant’s death prior to the exercise of
    the option. If a participant is married and the designated
    beneficiary is not the spouse, spousal consent shall be required
    for such designation to be effective.

 

    (b) Such designation of beneficiary may be changed by the
    participant (and his or her spouse, if any) at any time by
    written notice. In the event of the death of a participant and
    in the absence of a beneficiary validly designated under the
    Plan who is living at the time of such participant’s death,
    the Company shall deliver such shares
    and/or cash
    to the executor or administrator of the estate of the
    participant, or if no such executor or administrator has been
    appointed (to the knowledge of the Company), the Company, in its
    discretion, may deliver such shares
    and/or cash
    to the spouse or to any one or more dependents or relatives of
    the participant, or if no spouse, dependent or relative is known
    to the Company, then to such other person as the Company may
    designate.

 

    15. Transferability.  Neither
    Contributions credited to a participant’s account nor any
    rights with regard to the exercise of an option or to receive
    shares under the Plan may be assigned, transferred, pledged or
    otherwise disposed of in any way (other than by will, the laws
    of descent and distribution, or as provided in Section 14
    hereof) by the participant. Any such attempt at assignment,
    transfer, pledge or other disposition shall be without effect,
    except that the Company may treat such act as an election to
    withdraw funds from an Offering Period in accordance with
    Section 10 hereof.

    

    5

 

    16. Use of Funds.  All Contributions
    received or held by the Company under the Plan may be used by
    the Company for any corporate purpose, and the Company shall not
    be obligated to segregate such Contributions.

 

    17. Reports.  Individual accounts will be
    maintained for each participant in the Plan. Statements of
    account will be given to participating Employees promptly
    following the Purchase Date, which statements will set forth the
    amounts of Contributions, the purchase price per share, the
    number of shares purchased and the remaining cash balance, if
    any.

 

    18. Adjustments Upon Changes in Capitalization;
    Corporate Transactions.  

 

    (a) Changes in Capitalization.  Subject to
    any required action by the stockholders of the Company, the
    number of shares of Common Stock covered by each option under
    the Plan which has not yet been exercised and the number of
    shares of Common Stock which have been authorized for issuance
    under the Plan but have not yet been placed under option
    (collectively, the “Reserves”), as well as the
    purchase price per share and the number of shares of Common
    Stock covered by each option under the Plan which has not yet
    been exercised and the maximum number of shares each participant
    may purchase during each Purchase Period (pursuant to
    Section 7 hereof), shall be proportionately adjusted for
    any increase or decrease in the number of issued shares of
    Common Stock resulting from a stock split, reverse stock split,
    stock dividend, combination or reclassification of the Common
    Stock, or any other increase or decrease in the number of shares
    of Common Stock effected without receipt of consideration by the
    Company; provided, however, that conversion of any convertible
    securities of the Company shall not be deemed to have been
    “effected without receipt of consideration.” Such
    adjustment shall be made by the Board, whose determination in
    that respect shall be final, binding and conclusive. Except as
    expressly provided herein, no issuance by the Company of shares
    of stock of any class, or securities convertible into shares of
    stock of any class, shall affect, and no adjustment by reason
    thereof shall be made with respect to, the number or price of
    shares of Common Stock subject to an option.

 

    (b) Corporate Transactions.  In the event
    of the proposed dissolution or liquidation of the Company, the
    Offering Period then in progress will terminate immediately
    prior to the consummation of such proposed action, unless
    otherwise provided by the Board. In the event of a proposed sale
    of all or substantially all of the assets of the Company, or the
    merger of the Company with or into another corporation, each
    outstanding option under the Plan shall be assumed or an
    equivalent option shall be substituted by such successor
    corporation or a parent or subsidiary of such successor
    corporation, unless the Board determines, in the exercise of its
    sole discretion and in lieu of such assumption or substitution,
    to shorten the Offering Period then in progress by setting a new
    Purchase Date (the “New Purchase Date”). If the Board
    shortens the Offering Period then in progress in lieu of
    assumption or substitution in the event of a merger or sale of
    assets, the Board shall notify each participant in writing, at
    least ten (10) days prior to the New Purchase Date, that
    the Purchase Date for his or her option has been changed to the
    New Purchase Date, and that his or her option will be exercised
    automatically on the New Purchase Date, unless prior to such
    date he or she has withdrawn from the Offering Period as
    provided in Section 10 hereof. For purposes of this
    paragraph, an option granted under the Plan shall be deemed to
    be assumed if, following the sale of assets or merger, the
    option confers the right to purchase, for each share of option
    stock subject to the option immediately prior to the sale of
    assets or merger, the consideration (whether stock, cash or
    other securities or property) received in the sale of assets or
    merger by holders of Common Stock for each share of Common Stock
    held on the effective date of the transaction (and if such
    holders were offered a choice of consideration, the type of
    consideration chosen by the holders of a majority of the
    outstanding shares of Common Stock); provided, however, that if
    such consideration received in the sale of assets or merger was
    not solely common stock of the successor corporation or its
    parent (as defined in Section 424(e) of the Code), the
    Board may, with the consent of the successor corporation and the
    participant, provide for the consideration to be received upon
    exercise of the option to be solely common stock of the
    successor corporation or its parent equal in fair market value
    to the per share consideration received by holders of Common
    Stock and the sale of assets or merger. The Board may, if it so
    determines in the exercise of its sole discretion, also make
    provision for adjusting the Reserves, as well as the purchase
    price per share of Common Stock covered by each outstanding
    option, in the event that the Company effects one or more
    reorganizations, recapitalizations, rights offerings or other
    increases or reductions of shares of its outstanding Common
    Stock, and in the event of the Company being consolidated with
    or merged into any other corporation.

    

    6

 

    19. Amendment or Termination.  

 

    (a) The Board may at any time and for any reason terminate
    or amend the Plan. Except as provided in Section 18 and
    this Section 19 hereof, no such termination may affect
    options previously granted, nor may an amendment make any change
    in any option theretofore granted which adversely affects the
    rights of any participant. In addition, to the extent necessary
    to comply with Section 423 of the Code (or any successor
    rule or provision or any applicable law or regulation), the
    Company shall obtain stockholder approval in such a manner and
    to such a degree as so required.

 

    (b) Without stockholder consent and without regard to
    whether any participant rights may be considered to have been
    “adversely affected,” the Board (or its committee)
    shall be entitled to change the Offering Periods, limit the
    frequency
    and/or
    number of changes in the amount withheld during an Offering
    Period, establish the exchange ratio applicable to amounts
    withheld in a currency other than U.S. dollars, permit
    payroll withholding in excess of the amount designated by a
    participant in order to adjust for delays or mistakes in the
    Company’s processing of properly completed withholding
    elections, establish reasonable waiting and adjustment periods
    and/or
    accounting and crediting procedures to ensure that amounts
    applied toward the purchase of Common Stock for each participant
    properly correspond with amounts withheld from the
    participant’s Compensation, and establish such other
    limitations or procedures as the Board (or its committee)
    determines in its sole discretion advisable which are consistent
    with the Plan.

 

    (c) In the event the Board determines that the ongoing
    operation of the Plan may result in unfavorable financial
    accounting consequences, the Board may, in its discretion and,
    to the extent necessary or desirable, modify or amend the Plan
    to reduce or eliminate such accounting consequence including,
    but not limited to:

 

    (i) altering the purchase price per share of the shares
    offered in any Offering Period including an Offering Period
    underway at the time of the change in purchase price;

 

    (ii) shortening any Offering Period so that Offering Period
    ends on a new Purchase Date, including an Offering Period
    underway at the time of the Board action; and

 

    (iii) allocating shares.

 

    Such modifications or amendments shall not require stockholder
    approval or the consent of any Plan participants.

 

    20. Notices.  All notices or other
    communications by a participant to the Company under or in
    connection with the Plan shall be deemed to have been duly given
    when received in the form specified by the Company at the
    location, or by the person, designated by the Company for the
    receipt thereof.

 

    21. Conditions Upon Issuance of
    Shares.  Shares of Common Stock shall not be
    issued with respect to an option under the Plan unless the
    exercise of such option and the issuance and delivery of such
    shares pursuant thereto shall comply with all applicable
    provisions of law, domestic or foreign, including, without
    limitation, the Securities Act of 1933, as amended, the Exchange
    Act, the rules and regulations promulgated thereunder, and the
    requirements of any stock exchange upon which the shares may
    then be listed, and shall be further subject to the approval of
    counsel for the Company with respect to such compliance. As a
    condition to the exercise of an option, the Company may require
    the person exercising such option to represent and warrant at
    the time of any such exercise that the shares are being
    purchased only for investment and without any present intention
    to sell or distribute such shares if, in the opinion of counsel
    for the Company, such a representation is required by any of the
    aforementioned applicable provisions of law.

 

    22. No Effect on Employment.  Nothing in
    the Plan shall be deemed to give any Employee the right to be
    retained in the employ of any Employer or to interfere with the
    right of the Employer to discharge the Employee at any time.

 

    23. Term of Plan; Effective Date.  The
    Plan shall become effective upon the earlier to occur of its
    adoption by the Board or its approval by the stockholders of the
    Company. It shall continue in effect for a term of twenty
    (20) years unless sooner terminated under Section 19
    hereof.

    

    7exv10w1

 

    Exhibit
10.1

 

    THERMO
    FISHER SCIENTIFIC INC.

    

 

    2008 STOCK INCENTIVE PLAN

 

 

    1.     Purpose

 

    The purpose of this 2008 Stock Incentive Plan (the
    “Plan”) of Thermo Fisher Scientific Inc., a Delaware
    corporation (the “Company”), is to advance the
    interests of the Company’s stockholders by enhancing the
    Company’s ability to attract, retain and motivate persons
    who are expected to make important contributions to the Company
    and by providing such persons with equity ownership
    opportunities and performance-based incentives that are intended
    to better align the interests of such persons with those of the
    Company’s stockholders. Except where the context otherwise
    requires, the term “Company” shall include any of the
    Company’s present or future parent or subsidiary
    corporations as defined in Sections 424(e) or (f) of
    the Internal Revenue Code of 1986, as amended, and any
    regulations promulgated thereunder (the “Code”) and
    any other business venture (including, without limitation, joint
    venture or limited liability company) in which the Company has a
    controlling interest.

 

    2.     Eligibility

 

    All of the Company’s employees, officers, directors,
    consultants and advisors are eligible to be granted options,
    stock appreciation rights (“SARs”), restricted stock,
    restricted stock units (“RSUs”) and other stock-based
    awards (each, an “Award”) under the Plan. Each person
    who receives an award under the Plan is deemed a
    “Participant”.

 

    3.     Administration and
    Delegation

 

    (a)     Administration by Board
    of Directors.  The Plan will be administered
    by the Board of Directors of the Company (the
    “Board”). The Board shall have authority to grant
    Awards and to adopt, amend and repeal such administrative rules,
    guidelines and practices relating to the Plan as it shall deem
    advisable. The Board may construe and interpret the terms of the
    Plan and any Award agreements entered into under the Plan. The
    Board may correct any defect, supply any omission or reconcile
    any inconsistency in the Plan or any Award in the manner and to
    the extent it shall deem expedient to carry the Plan into effect
    and it shall be the sole and final judge of such expediency. All
    decisions by the Board shall be made in the Board’s sole
    discretion and shall be final and binding on all persons having
    or claiming any interest in the Plan or in any Award. No
    director or person acting pursuant to the authority delegated by
    the Board shall be liable for any action or determination
    relating to or under the Plan made in good faith.

 

    (b)     Appointment of
    Committees.  To the extent permitted by
    applicable law, the Board may delegate any or all of its powers
    under the Plan to one or more committees or subcommittees of the
    Board (a “Committee”). All references in the Plan to
    the “Board” shall mean the Board or a Committee of the
    Board or the officers referred to in Section 3(c) to the
    extent that the Board’s powers or authority under the Plan
    have been delegated to such Committee or officers.

 

    (c)     Delegation to
    Officers.  To the extent permitted by
    applicable law, the Board may delegate to one or more officers
    of the Company the power to grant Awards (subject to any
    limitations under the Plan) to employees or officers of the
    Company and to exercise such other powers under the Plan as the
    Board may determine, provided that the Board shall fix the terms
    of the Awards to be granted by such officers (including the
    exercise price of such Awards, which may include a formula by
    which the exercise price will be determined) and the maximum
    number of shares subject to Awards that the officers may grant;
    provided further, however, that no officer shall be authorized
    to grant Awards to any “executive officer” of the
    Company (as defined by
    Rule 3b-7
    under the Securities Exchange Act of 1934, as amended (the
    “Exchange Act”)) or to any “officer” of the
    Company (as defined by
    Rule 16a-1
    under the Exchange Act).

 

    2

 

    4.     Stock Available for
    Awards

 

    (a)     Number of Shares; Share
    Counting.

 

    (1)     Authorized Number of
    Shares.  Subject to adjustment under
    Section 9, Awards may be made under the Plan for up to
    25,000,000 shares of common stock, $1.00 par value per
    share, of the Company (the “Common Stock”). Shares
    issued under the Plan may consist in whole or in part of
    authorized but unissued shares or treasury shares.

 

    (2)     Share
    Counting.  For purposes of counting the number
    of shares available for the grant of Awards under the Plan and
    under the sublimits contained in Sections 4(b)(2) and
    4(b)(3), (i) all shares of Common Stock covered by
    independent SARs shall be counted against the number of shares
    available for the grant of Awards; provided, however, that
    independent SARs that may be settled in cash only shall not be
    so counted; (ii) if any Award (A) expires or is
    terminated, surrendered or canceled without having been fully
    exercised or is forfeited in whole or in part (including as the
    result of shares of Common Stock subject to such Award being
    repurchased by the Company at the original issuance price
    pursuant to a contractual repurchase right) or (B) results
    in any Common Stock not being issued (including as a result of
    an independent SAR that was settleable either in cash or in
    stock actually being settled in cash), the unused Common Stock
    covered by such Award shall again be available for the grant of
    Awards; provided, however, in the case of Incentive Stock
    Options (as hereinafter defined), the foregoing shall be subject
    to any limitations under the Code; and provided further, in the
    case of independent SARs, that the full number of shares subject
    to any stock-settled SAR shall be counted against the shares
    available under the Plan and against the sublimit set forth in
    Section 4(b)(2) regardless of the number of shares actually
    used to settle such SAR upon exercise; (iii) shares of
    Common Stock delivered to the Company by a Participant to
    (A) purchase shares of Common Stock upon the exercise of an
    Award or (B) satisfy tax withholding obligations (including
    shares retained from the Award creating the tax obligation)
    shall not be added back to the number of shares available for
    the future grant of Awards; and (iv) shares of Common Stock
    repurchased by the Company on the open market using the proceeds
    from the exercise of an Award shall not increase the number of
    shares available for future grant of Awards.

 

    (b)     Sub-limits.  Subject
    to adjustment under Section 10, the following sub-limits on
    the number of shares subject to Awards shall apply:

 

    (1)     Section 162(m)
    Per-Participant Limit.  The maximum number of
    shares of Common Stock with respect to which Awards may be
    granted to any Participant under the Plan shall be 2,000,000 per
    calendar year. For purposes of the foregoing limit, the
    combination of an Option in tandem with a SAR (as each is
    hereafter defined) shall be treated as a single Award. The
    per-Participant limit described in this Section 4(b)(1)
    shall be construed and applied consistently with
    Section 162(m) of the Code or any successor provision
    thereto, and the regulations thereunder
    (“Section 162(m)”).

 

    (2)     Limit on Awards other
    than Options and SARS.  The maximum number of
    shares with respect to which Awards other than Options and SARs
    may be granted shall be 7,000,000.

 

    (3)     Limit on Awards to
    Directors.  The maximum number of shares with
    respect to which Awards may be granted to directors who are not
    employees of the Company at the time of grant shall be 1,200,000.

 

    (c)     Substitute
    Awards.  In connection with a merger or
    consolidation of an entity with the Company or the acquisition
    by the Company of property or stock of an entity, the Board may
    grant Awards in substitution for any options or other stock or
    stock-based awards granted by such entity or an affiliate
    thereof. Substitute Awards may be granted on such terms as the
    Board deems appropriate in the circumstances, notwithstanding
    any limitations on Awards contained in the Plan. Substitute
    Awards shall not count against the overall share limit set forth
    in Section 4(a)(1) or any sublimits contained in the Plan,
    except as may be required by reason of Section 422 and
    related provisions of the Code.

 

    5.     Stock Options

 

    (a)     General.  The
    Board may grant options to purchase Common Stock (each, an
    “Option”) and determine the number of shares of Common
    Stock to be covered by each Option, the exercise price of each

 

    3

 

    Option and the conditions and limitations applicable to the
    exercise of each Option, including conditions relating to
    applicable federal or state securities laws, as it considers
    necessary or advisable. An Option that is not intended to be an
    Incentive Stock Option (as hereinafter defined) shall be
    designated a “Nonstatutory Stock Option.”

 

    (b)     Incentive Stock
    Options.  An Option that the Board intends to
    be an “incentive stock option” as defined in
    Section 422 of the Code (an “Incentive Stock
    Option”) shall only be granted to employees of Thermo
    Fisher Scientific Inc., any of Thermo Fisher Scientific
    Inc.’s present or future parent or subsidiary corporations
    as defined in Sections 424(e) or (f) of the Code, and
    any other entities the employees of which are eligible to
    receive Incentive Stock Options under the Code, and shall be
    subject to and shall be construed consistently with the
    requirements of Section 422 of the Code. The Company shall
    have no liability to a Participant, or any other party, if an
    Option (or any part thereof) that is intended to be an Incentive
    Stock Option is not an Incentive Stock Option or for any action
    taken by the Board, including without limitation the conversion
    of an Incentive Stock Option to a Nonstatutory Stock Option.

 

    (c)     Exercise
    Price.  The Board shall establish the exercise
    price of each Option and specify the exercise price in the
    applicable option agreement. The exercise price shall be not
    less than 100% of the Fair Market Value (as defined below) on
    the date the Option is granted; provided that if the Board
    approves the grant of an Option with an exercise price to be
    determined on a future date, the exercise price shall be not
    less than 100% of the Fair Market Value on such future date.

 

    (d)     Duration of
    Options.  Each Option shall be exercisable at
    such times and subject to such terms and conditions as the Board
    may specify in the applicable option agreement; provided,
    however, that no Option will be granted with a term in excess of
    10 years.

 

    (e)     Exercise of
    Option.  Options may be exercised by delivery
    to the Company or its designee of a written notice of exercise
    signed by the proper person or by any other form of notice
    (including electronic notice) approved by the Company, together
    with payment in full as specified in Section 5(f) for the
    number of shares for which the Option is exercised. Shares of
    Common Stock subject to the Option will be delivered by the
    Company as soon as practicable following exercise.

 

    (f)     Payment Upon
    Exercise.  Common Stock purchased upon the
    exercise of an Option granted under the Plan shall be paid for
    as follows:

 

    (1)     in cash or by check, payable to
    the order of the Company;

 

    (2)     except as may otherwise be
    provided in the applicable option agreement, by
    (i) delivery of an irrevocable and unconditional
    undertaking by a creditworthy broker to deliver promptly to the
    Company sufficient funds to pay the exercise price and any
    required tax withholding or (ii) delivery by the
    Participant to the Company of a copy of irrevocable and
    unconditional instructions to a creditworthy broker to deliver
    promptly to the Company cash or a check sufficient to pay the
    exercise price and any required tax withholding;

 

    (3)     to the extent provided for in
    the applicable option agreement or approved by the Board, in its
    sole discretion, by delivery (either by actual delivery or
    attestation) of shares of Common Stock owned by the Participant
    valued at their fair market value as determined by (or in a
    manner approved by) the Board (“Fair Market Value”),
    provided (i) such method of payment is then permitted under
    applicable law, (ii) such Common Stock, if acquired
    directly from the Company, was owned by the Participant for such
    minimum period of time, if any, as may be established by the
    Board in its discretion and (iii) such Common Stock is not
    subject to any repurchase, forfeiture, unfulfilled vesting or
    other similar requirements;

 

    (4)     to the extent permitted by
    applicable law and provided for in the applicable option
    agreement or approved by the Board, in its sole discretion, by
    (i) delivery of a promissory note of the Participant to the
    Company on terms determined by the Board, or (ii) payment
    of such other lawful consideration as the Board may
    determine; or

 

    (5)     by any combination of the above
    permitted forms of payment.

 

    4

 

    (g)     Limitation on
    Repricing.  Unless such action is approved by
    the Company’s stockholders: (1) no outstanding Option
    granted under the Plan may be amended to provide an exercise
    price per share that is lower than the then-current exercise
    price per share of such outstanding Option (other than
    adjustments pursuant to Section 9) and (2) the
    Board may not cancel any outstanding option (whether or not
    granted under the Plan) and grant in substitution therefore new
    Awards under the Plan covering the same or a different number of
    shares of Common Stock and having an exercise price per share
    lower than the then-current exercise price per share of the
    cancelled option.

 

    6.     Stock Appreciation
    Rights.

 

    (a)     General.  The
    Board may grant Awards consisting of SARs entitling the holder,
    upon exercise, to receive an amount of Common Stock or cash or a
    combination thereof (such form to be determined by the Board)
    determined in whole or in part by reference to appreciation,
    from and after the date of grant, in the fair market value of a
    share of Common Stock over the exercise price established
    pursuant to Section 6(c). The date as of which such
    appreciation is determined shall be the exercise date.

 

    (b)     Grants.  SARs
    may be granted in tandem with, or independently of, Options
    granted under the Plan.

 

    (1)     Tandem
    Awards.  When SARs are expressly granted in
    tandem with Options, (i) the SAR will be exercisable only
    at such time or times, and to the extent, that the related
    Option is exercisable (except to the extent designated by the
    Board in connection with a Reorganization Event or a Change in
    Control Event) and will be exercisable in accordance with the
    procedure required for exercise of the related Option;
    (ii) the SAR will terminate and no longer be exercisable
    upon the termination or exercise of the related Option, except
    to the extent designated by the Board in connection with a
    Reorganization Event or a Change in Control Event and except
    that a SAR granted with respect to less than the full number of
    shares covered by an Option will not be reduced until the number
    of shares as to which the related Option has been exercised or
    has terminated exceeds the number of shares not covered by the
    SAR; (iii) the Option will terminate and no longer be
    exercisable upon the exercise of the related SAR; and
    (iv) the SAR will be transferable only with the related
    Option.

 

    (2)     Independent
    SARs.  A SAR not expressly granted in tandem
    with an Option will become exercisable at such time or times,
    and on such conditions, as the Board may specify in the SAR
    Award.

 

    (c)     Exercise
    Price.  The Board shall establish the exercise
    price of each SAR and specify it in the applicable SAR
    agreement. The exercise price shall not be less than 100% of the
    Fair Market Value on the date the SAR is granted; provided that
    if the Board approves the grant of a SAR with an exercise price
    to be determined on a future date, the exercise price shall be
    not less than 100% of the Fair Market Value on such future date.

 

    (d)     Duration of
    SARs.  Each SAR shall be exercisable at such
    times and subject to such terms and conditions as the Board may
    specify in the applicable SAR agreement; provided, however, that
    no SAR will be granted with a term in excess of 10 years.

 

    (e)     Exercise of
    SARs.  SARs may be exercised by delivery to
    the Company or its designee of a written notice of exercise
    signed by the proper person or by any other form of notice
    (including electronic notice) approved by the Company, together
    with any other documents required by the Company.

 

    (f)     Limitation on
    Repricing.  Unless such action is approved by
    the Company’s stockholders: (1) no outstanding SAR
    granted under the Plan may be amended to provide an exercise
    price per share that is lower than the then-current exercise
    price per share of such outstanding SAR (other than adjustments
    pursuant to Section 9) and (2) the Board may not
    cancel any outstanding SAR (whether or not granted under the
    Plan) and grant in substitution therefor new Awards under the
    Plan covering the same or a different number of shares of Common
    Stock and having an exercise price per share lower than the
    then-current exercise price per share of the cancelled SAR.

 

    5

 

    7.     Restricted Stock;
    Restricted Stock Units.

 

    (a)     General.  The
    Board may grant Awards entitling recipients to acquire shares of
    Common Stock (“Restricted Stock”), subject to the
    right of the Company to repurchase all or part of such shares at
    their issue price or other stated or formula price (or to
    require forfeiture of such shares if issued at no cost) from the
    recipient in the event that conditions specified by the Board in
    the applicable Award are not satisfied prior to the end of the
    applicable restriction period or periods established by the
    Board for such Award. Instead of granting Awards for Restricted
    Stock, the Board may grant Awards entitling the recipient to
    receive shares of Common Stock or cash to be delivered at the
    time such Award vests or such later time as may be specified in
    such Award (“Restricted Stock Units”) (Restricted
    Stock and Restricted Stock Units are each referred to herein as
    a “Restricted Stock Award”).

 

    (b)     Terms and Conditions for
    All Restricted Stock Awards.  The Board shall
    determine the terms and conditions of a Restricted Stock Award,
    including the conditions for vesting and repurchase (or
    forfeiture) and the issue price, if any. Restricted Stock Awards
    that vest solely based on the passage of time shall be zero
    percent vested prior to the first anniversary of the date of
    grant, no more than one-third vested prior to the second
    anniversary of the date of grant, and no more than two-thirds
    vested prior to the third anniversary of the date of grant.
    Restricted Stock Awards that do not vest solely based on the
    passage of time shall not vest prior to the first anniversary of
    the date of grant. The two foregoing sentences shall not apply
    to (1) Performance Awards granted pursuant to
    Section 10(i) or (2) Restricted Stock Awards and Other
    Stock-Based Awards granted, in the aggregate, for up to
    1,200,000 shares of Common Stock. Notwithstanding any other
    provision of this Plan (other than Section 10(i), if
    applicable), the Board may, in its discretion, either at the
    time a Restricted Stock Award is made or at any time thereafter,
    waive its right to repurchase shares of Common Stock (or waive
    the forfeiture thereof) or remove or modify any part or all of
    the restrictions applicable to the Restricted Stock Award,
    provided that the Board may only exercise such rights in
    extraordinary circumstances which shall include, without
    limitation, death, disability, termination of employment
    (including retirement) of the Participant; or a merger,
    consolidation, sale, reorganization, recapitalization, or change
    in control of the Company.

 

    (c)     Additional Provisions
    Relating to Restricted Stock.

 

    (1)     Dividends.  Participants
    holding shares of Restricted Stock will be entitled to all
    ordinary cash dividends paid with respect to such shares, unless
    otherwise provided by the Board. Unless otherwise provided by
    the Board, if any dividends or distributions are paid in shares,
    or consist of a dividend or distribution to holders of Common
    Stock other than an ordinary cash dividend, the shares, cash or
    other property will be subject to the same restrictions on
    transferability and forfeitability as the shares of Restricted
    Stock with respect to which they were paid. Each dividend
    payment will be made no later than the end of the calendar year
    in which the dividends are paid to shareholders of that class of
    stock or, if later, the 15th day of the third month
    following the date the dividends are paid to shareholders of
    that class of stock.

 

    (2)     Stock
    Certificates.  The Company may require that
    any stock certificates issued in respect of shares of Restricted
    Stock shall be deposited in escrow by the Participant, together
    with a stock power endorsed in blank, with the Company (or its
    designee). At the expiration of the applicable restriction
    periods, the Company (or such designee) shall deliver the
    certificates no longer subject to such restrictions to the
    Participant or if the Participant has died, to the beneficiary
    designated, in a manner determined by the Company, by a
    Participant to receive amounts due or exercise rights of the
    Participant in the event of the Participant’s death (the
    “Designated Beneficiary”). In the absence of an
    effective designation by a Participant, “Designated
    Beneficiary” shall mean the Participant’s estate.

 

    (d)     Additional Provisions
    Relating to Restricted Stock Units.

 

    (1)     Settlement.  Upon
    the vesting of
    and/or
    lapsing of any other restrictions (i.e., settlement) with
    respect to each Restricted Stock Unit, the Participant shall be
    entitled to receive from the Company one share of Common Stock
    or an amount of cash equal to the Fair Market Value of one share
    of Common Stock, as provided in the applicable Award agreement.
    The Board may, in its discretion, provide that

 

    6

 

    settlement of Restricted Stock Units shall be deferred, on a
    mandatory basis or at the election of the Participant.

 

    (2)     Voting
    Rights.  A Participant shall have no voting
    rights with respect to any Restricted Stock Units.

 

    (3)     Dividend
    Equivalents.  To the extent provided by the
    Board, in its sole discretion, a grant of Restricted Stock Units
    may provide Participants with the right to receive an amount
    equal to any dividends or other distributions declared and paid
    on an equal number of outstanding shares of Common Stock
    (“Dividend Equivalents”). Dividend Equivalents may be
    paid currently or credited to an account for the Participants,
    may be settled in cash
    and/or
    shares of Common Stock and may be subject to the same
    restrictions on transfer and forfeitability as the Restricted
    Stock Units with respect to which paid, as determined by the
    Board in its sole discretion, subject in each case to such terms
    and conditions as the Board shall establish, in each case to be
    set forth in the applicable Award agreement.

 

    (e)     Deferred Delivery of
    Shares.  The Board may, at the time any
    Restricted Stock Award is granted, provide that, at the time
    Common Stock would otherwise be delivered pursuant to the Award,
    the Participant shall instead receive an instrument evidencing
    the right to future delivery of Common Stock at such time or
    times, and on such conditions, as the Board shall specify.

 

    8.     Other Stock-Based
    Awards.  

 

    (a)     General.  Other
    Awards of shares of Common Stock, and other Awards that are
    valued in whole or in part by reference to, or are otherwise
    based on, shares of Common Stock or other property, may be
    granted hereunder to Participants (“Other
    Stock-Based-Awards”), including without limitation Awards
    entitling recipients to receive shares of Common Stock to be
    delivered in the future. Such Other Stock-Based Awards shall
    also be available as a form of payment in the settlement of
    other Awards granted under the Plan or as payment in lieu of
    compensation to which a Participant is otherwise entitled. Other
    Stock-Based Awards may be paid in shares of Common Stock or
    cash, as the Board shall determine.

 

    (b)     Terms and
    Conditions.  Subject to the provisions of the
    Plan, the Board shall determine the terms and conditions of each
    Other Stock-Based Award, including any purchase price applicable
    thereto. Other Stock-Based Awards that vest solely based on the
    passage of time shall be zero percent vested prior to the first
    anniversary of the date of grant, no more than one-third vested
    prior to the second anniversary of the date of grant, and no
    more than two-thirds vested prior to the third anniversary of
    the date of grant. Other Stock-Based Awards that do not vest
    solely based on the passage of time shall not vest prior to the
    first anniversary of the date of grant. The two foregoing
    sentences shall not apply to (1) Performance Awards granted
    pursuant to Section 10(i) or (2) Restricted Stock
    Awards and Other Stock-Based Awards granted, in the aggregate,
    for up to 1,200,000 shares of Common Stock. Notwithstanding
    any other provision of this Plan (other than Section 10(i),
    if applicable), the Board may, in its discretion, either at the
    time an Other Stock-Based Award is made or at any time
    thereafter, waive its right to repurchase shares of Common Stock
    (or waive the forfeiture thereof) or remove or modify any part
    or all of the restrictions applicable to the Other Stock-Based
    Award, provided that the Board may only exercise such rights in
    extraordinary circumstances which shall include, without
    limitation, death, disability, termination of employment
    (including retirement) of the Participant; or a merger,
    consolidation, sale, reorganization, recapitalization, or change
    in control of the Company.

 

    9.     Adjustments for Changes in
    Common Stock and Certain Other Events.

 

    (a)     Changes in
    Capitalization.  In the event of any stock
    split, reverse stock split, stock dividend, recapitalization,
    combination of shares, reclassification of shares, spin-off or
    other similar change in capitalization or event, or any dividend
    or distribution to holders of Common Stock other than an
    ordinary cash dividend, (i) the number and class of
    securities available under this Plan, (ii) the sub-limits
    and share counting rules set forth in Sections 4(a), 4(b),
    7(b) and 8(b), (iii) the number and class of securities and
    exercise price per share of each outstanding Option,
    (iv) the share- and per-share provisions and the exercise
    price of each SAR, (v) the number of shares subject to and
    the repurchase price per share subject to each outstanding
    Restricted Stock Award and (vi) the share- and
    per-share-related provisions and the purchase price, if any, of
    each outstanding Other Stock-Based Award, shall be equitably
    adjusted by the Company (or substituted

 

    7

 

    Awards may be made, if applicable) in the manner determined by
    the Board. Without limiting the generality of the foregoing, in
    the event the Company effects a split of the Common Stock by
    means of a stock dividend and the exercise price of and the
    number of shares subject to an outstanding Option are adjusted
    as of the date of the distribution of the dividend (rather than
    as of the record date for such dividend), then an optionee who
    exercises an Option between the record date and the distribution
    date for such stock dividend shall be entitled to receive, on
    the distribution date, the stock dividend with respect to the
    shares of Common Stock acquired upon such Option exercise,
    notwithstanding the fact that such shares were not outstanding
    as of the close of business on the record date for such stock
    dividend.

 

    (b)     Reorganization and Change
    in Control Events

 

    (1)     Definitions

 

    (A)     A “Reorganization
    Event” shall mean:

 

    (i)     any merger or consolidation of
    the Company with or into another entity as a result of which all
    of the Common Stock of the Company is converted into or
    exchanged for the right to receive cash, securities or other
    property or is cancelled;

 

    (ii)     any exchange of all of the
    Common Stock of the Company for cash, securities or other
    property pursuant to a share exchange transaction; or

 

    (iii)     any complete liquidation or
    dissolution of the Company.

 

    (B)     A “Change in Control
    Event” shall mean:

 

    (i)     the acquisition by an
    individual, entity or group (within the meaning of
    Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a
    “Person”) of beneficial ownership of any capital stock
    of the Company if, after such acquisition, such Person
    beneficially owns (within the meaning of
    Rule 13d-3
    promulgated under the Exchange Act) 50% or more of either
    (x) the then-outstanding shares of common stock of the
    Company (the “Outstanding Company Common Stock”) or
    (y) the combined voting power of the then-outstanding
    securities of the Company entitled to vote generally in the
    election of directors (the “Outstanding Company Voting
    Securities”); provided, however, that for purposes of this
    subsection (i), the following acquisitions shall not constitute
    a Change in Control Event: (A) any acquisition directly by
    the Company, (B) any acquisition by any employee benefit
    plan (or related trust) sponsored or maintained by the Company
    or any corporation controlled by the Company, or (C) any
    acquisition by any corporation pursuant to a Business
    Combination (as defined below) which complies with
    clauses (x) and (y) of subsection (iii) of this
    definition; or

 

    (ii)     such time as the Continuing
    Directors (as defined below) do not constitute a majority of the
    Board (or, if applicable, the Board of Directors of a successor
    corporation to the Company), where the term “Continuing
    Director” means at any date a member of the Board
    (x) who was a member of the Board on the date of the
    initial adoption of this Plan by the Board or (y) who was
    nominated or elected subsequent to such date by at least a
    majority of the directors who were Continuing Directors at the
    time of such nomination or election or whose election to the
    Board was recommended or endorsed by at least a majority of the
    directors who were Continuing Directors at the time of such
    nomination or election; provided, however, that there shall be
    excluded from this clause (y) any individual whose initial
    assumption of office occurred 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; or

 

    (iii)     the consummation of a merger,
    consolidation, reorganization, recapitalization or share
    exchange involving the Company or a sale or other disposition of
    all or substantially all of the assets of the Company in one or
    a series of transactions (a “Business Combination”),
    unless, immediately following such Business Combination, each of
    the following two conditions is satisfied: (x) all or
    substantially all of the individuals and entities who were the
    beneficial owners of the Outstanding Company Common Stock and
    Outstanding Company Voting Securities immediately prior to such
    Business Combination beneficially own, directly or indirectly,
    more than 50% of the then-outstanding shares of common stock and
    the combined

 

    8

 

    voting power of the then-outstanding securities entitled to vote
    generally in the election of directors, respectively, of the
    resulting or acquiring corporation in such Business Combination
    (which shall include, without limitation, a corporation which as
    a result of such transaction owns the Company or substantially
    all of the Company’s assets either directly or through one
    or more subsidiaries) (such resulting or acquiring corporation
    is referred to herein as the “Acquiring Corporation”)
    in substantially the same proportions as their ownership of the
    Outstanding Company Common Stock and Outstanding Company Voting
    Securities, respectively, immediately prior to such Business
    Combination and (y) no Person (excluding any employee
    benefit plan (or related trust) maintained or sponsored by the
    Company or by the Acquiring Corporation) beneficially owns,
    directly or indirectly, 50% or more of the then-outstanding
    shares of common stock of the Acquiring Corporation, or of the
    combined voting power of the then-outstanding securities of such
    corporation entitled to vote generally in the election of
    directors; or

 

    (iv)     the approval by the
    stockholders of the Company of the complete liquidation or
    dissolution of the Company.

 

    (C)     “Cause” shall have
    the meaning set forth in the Participant’s employment or
    other agreement with the Company, provided that if the
    Participant is not a party to any such employment or other
    agreement or such employment or other agreement does not contain
    a definition of Cause, then Cause shall mean:

 

    (i)     the willful and continued
    failure of the Participant to perform substantially the
    Participant’s duties with the Company (other than any such
    failure resulting from incapacity due to physical or mental
    illness), after a written demand for substantial performance is
    delivered to the Participant by the Company that specifically
    identifies the alleged manner in which the Participant has not
    substantially performed the Participant’s duties; or

 

    (ii)     the willful engaging by the
    Participant in illegal conduct or gross misconduct that is
    materially and demonstrably injurious to the Company.

 

    For purposes of this definition, no act or failure to act on the
    part of the Participant shall be considered “willful”
    unless it is done, or omitted to be done, by the Participant in
    bad faith or without reasonable belief that the
    Participant’s action or omission was in the best interests
    of the Company.

 

    (D)     “Good Reason” shall
    have the meaning set forth in the Participant’s employment
    or other agreement with the Company, provided that if the
    Participant is not a party to any such employment or other
    agreement or such employment or other agreement does not contain
    a definition of Good Reason, then Good Reason shall mean the
    occurrence, on or after a Change in Control Event and without
    the affected Participant’s written consent, of:

 

    (i)     the assignment to the
    Participant of duties in the aggregate that are inconsistent
    with the Participant’s level of responsibility immediately
    prior to the Change in Control Event (including without
    limitation, in the case of a Participant who was, immediately
    prior to the Change in Control Event, an executive officer of
    the Company, such employee ceasing to be an executive officer of
    the Company);

 

    (ii)     a reduction by the employer in
    the Participant’s annual base salary, annual incentive
    compensation opportunity, or long term incentive compensation
    opportunity (including an adverse change in the performance
    criteria or a decrease in the target amount of annual or long
    term incentive compensation) from that in effect immediately
    prior to the Change in Control Event; or

 

    (iii)     the relocation of the
    Participant’s principal place of employment to a location
    more than fifty (50) miles from the Participant’s
    principal place of employment immediately prior to the Change in
    Control Event, provided, however, such relocation also requires
    a material change in the Participant’s commute.

 

    (2)     Effect of Reorganization
    Event on Options.  Upon the occurrence of a
    Reorganization Event (regardless of whether such event also
    constitutes a Change in Control Event), or the execution by the
    Company of any agreement with respect to a Reorganization Event
    (regardless of whether such event will

 

    9

 

    result in a Change in Control Event), the Board shall provide
    that all outstanding Options shall be assumed, or equivalent
    options shall be substituted, by the acquiring or succeeding
    corporation (or an affiliate thereof). For purposes hereof, an
    Option shall be considered to be assumed if, following
    consummation of the Reorganization Event, the Option confers the
    right to purchase, for each share of Common Stock subject to the
    Option immediately prior to the consummation of the
    Reorganization Event, the consideration (whether cash,
    securities or other property) received as a result of the
    Reorganization Event by holders of Common Stock for each share
    of Common Stock held immediately prior to the consummation of
    the Reorganization Event (and if holders were offered a choice
    of consideration, the type of consideration chosen by the
    holders of a majority of the outstanding shares of Common
    Stock); provided, however, that if the consideration received as
    a result of the Reorganization Event is not solely common stock
    of the acquiring or succeeding corporation (or an affiliate
    thereof), the Company may, with the consent of the acquiring or
    succeeding corporation, provide for the consideration to be
    received upon the exercise of Options to consist solely of
    common stock of the acquiring or succeeding corporation (or an
    affiliate thereof) equivalent in value (as determined by the
    Board) to the per share consideration received by holders of
    outstanding shares of Common Stock as a result of the
    Reorganization Event.

 

    Notwithstanding the foregoing, if the acquiring or succeeding
    corporation (or an affiliate thereof) does not agree to assume,
    or substitute for, such Options, or in the event of a
    liquidation or dissolution of the Company, the Board may take
    any one or more of the following actions as to all or any (or
    any portion of) outstanding Options on such terms as the Board
    determines: (i) upon written notice to a Participant,
    provide that the Participant’s unexercised Options will
    terminate immediately prior to the consummation of such
    Reorganization Event unless exercised by the Participant within
    a specified period following the date of such notice,
    (ii) provide that outstanding Options shall become
    exercisable, realizable, or deliverable, or restrictions
    applicable to an Option shall lapse, in whole or in part prior
    to or upon such Reorganization Event, (iii) in the event of
    a Reorganization Event under the terms of which holders of
    Common Stock will receive upon consummation thereof a cash
    payment for each share surrendered in the Reorganization Event
    (the “Acquisition Price”), make or provide for a cash
    payment to a Participant equal to the excess, if any, of
    (A) the Acquisition Price times the number of shares of
    Common Stock subject to the Participant’s Options (if the
    exercise price does not exceed the Acquisition Price) over
    (B) the aggregate exercise price of all such outstanding
    Options and any applicable tax withholdings, in exchange for the
    termination of such Options, (iv) provide that, in
    connection with a liquidation or dissolution of the Company,
    Options shall convert into the right to receive liquidation
    proceeds (if applicable, net of the exercise price thereof and
    any applicable tax withholdings) and (v) any combination of
    the foregoing. In taking any of the actions permitted under this
    Section 9(b), the Board shall not be obligated by the Plan
    to treat all Options, all Options held by a Participant, or all
    Options of the same type, identically. In the event of a
    Reorganization Event that does not also constitute a Change in
    Control Event, then to the extent all or any portion of an
    Option becomes exercisable solely as a result of the first
    sentence of this paragraph, upon exercise of such Option the
    Participant shall receive shares subject to a right of
    repurchase by the Company or its successor at the Option
    exercise price. Such repurchase right (i) shall lapse at
    the same rate as the Option would have become exercisable under
    its terms and (ii) shall not apply to any shares subject to
    the Option that were exercisable under its terms without regard
    to the first sentence of this paragraph.

 

    (3)     Effect of Reorganization
    Event on Restricted Stock Awards.  Upon the
    occurrence of a Reorganization Event that is not a Change in
    Control Event, the repurchase and other rights of the Company
    under each outstanding Restricted Stock Award shall inure to the
    benefit of the Company’s successor and shall, unless the
    Board determines otherwise, apply to the cash, securities or
    other property which the Common Stock was converted into or
    exchanged for pursuant to such Reorganization Event in the same
    manner and to the same extent as they applied to the Common
    Stock subject to such Restricted Stock Award.

 

    (4)     Effect of Reorganization
    Event on Stock Appreciation Rights and Other Stock Unit
    Awards.  The Board may specify in an Award at
    the time of the grant the effect of a Reorganization Event on
    any SAR and Other Stock Unit Award.

 

    (5)     Effect of Change in
    Control Event on Awards.

 

    10

 

    (A)     Unless otherwise determined by
    the Board at the time of the grant or evidenced in an applicable
    instrument evidencing an Award or employment or other agreement,
    in the event that a Participant’s employment or service is
    terminated by the Company without Cause or by the Participant
    for Good Reason, in each case within eighteen (18) months
    following a Change in Control Event:

 

    (i)     any Award carrying a right to
    exercise that was not previously vested and exercisable shall
    become fully vested and exercisable and all outstanding Awards
    shall remain exercisable for one (1) year following such
    date of termination of employment or service but in no event
    beyond the original term of the Award and shall thereafter
    terminate; and

 

    (ii)     the restrictions, deferral
    limitations, payment conditions, and forfeiture conditions
    applicable to any Award other than an Award described in
    (i) shall lapse and such Awards shall be deemed fully
    vested, and any performance conditions imposed with respect to
    Awards shall be deemed to be achieved at the higher of
    (x) the target level for the applicable performance period
    or (y) the level of achievement of such performance
    conditions for the most recently concluded performance period.

 

    (B)     Notwithstanding subparagraph
    (A) of this Section 9(b)(5), upon a Change in Control
    Event, the Board shall have the discretion to:

 

    (i)     accelerate the vesting or
    payment of any Award effective immediately upon the occurrence
    of a Change in Control Event; or

 

    (ii)     convert the vesting of
    performance-based Awards to a time-based vesting schedule as
    deemed appropriate by the Board;

 

    in each case only to the extent that such action would not cause
    any Award to result in deferred compensation that is subject to
    the additional twenty percent (20%) tax under Section 409A
    of the Code.

 

    (6)     Adjustment for Excise
    Tax.  The Board may, in its sole discretion,
    provide in an instrument evidencing an Award or otherwise for
    specific treatment of any outstanding Award in the event that
    any payment or benefit under this Plan would be subject to the
    excise tax imposed by Section 4999 of the Code (the
    “Excise Tax”) or any interest or penalties with
    respect to such Excise Tax. Such treatment may include the
    payment by the Company of a
    gross-up
    payment in an amount equal to such Excise Tax, interest and
    penalties or the imposition of a cutback in payments or benefits.

 

    10.     General Provisions
    Applicable to Awards

 

    (a)     Transferability of
    Awards.  Awards shall not be sold, assigned,
    transferred, pledged or otherwise encumbered by the person to
    whom they are granted, either voluntarily or by operation of
    law, except by will or the laws of descent and distribution or,
    other than in the case of an Incentive Stock Option, pursuant to
    a qualified domestic relations order, and, during the life of
    the Participant, shall be exercisable only by the Participant;
    provided, however, that the Board may permit or provide in an
    Award for the gratuitous transfer of the Award by the
    Participant to or for the benefit of any immediate family
    member, family trust or other entity established for the benefit
    of the Participant
    and/or an
    immediate family member thereof if, with respect to such
    proposed transferee, the Company would be eligible to use a
    Form S-8
    for the registration of the sale of the Common Stock subject to
    such Award under the Securities Act of 1933, as amended;
    provided, further, that the Company shall not be required to
    recognize any such transfer until such time as the Participant
    and such permitted transferee shall, as a condition to such
    transfer, deliver to the Company a written instrument in form
    and substance satisfactory to the Company confirming that such
    transferee shall be bound by all of the terms and conditions of
    the Award. References to a Participant, to the extent relevant
    in the context, shall include references to authorized
    transferees.

 

    (b)     Documentation.  Each
    Award shall be evidenced on such form, and containing such terms
    and conditions, as the Board shall determine and shall be
    delivered in such manner as the Company shall determine,
    including in writing, electronically or otherwise. The Award may
    be in the form of an agreement signed by the Company and the
    Participant or a written or electronic confirming memorandum to
    the Participant from the Company. Each Award may contain terms
    and conditions in addition to those set forth in the Plan.

 

    11

 

    (c)     Board
    Discretion.  Except as otherwise provided by
    the Plan, each Award may be made alone or in addition or in
    relation to any other Award. The terms of each Award need not be
    identical, and the Board need not treat Participants uniformly.

 

    (d)     Termination of
    Status.  The Board shall determine the effect
    on an Award of the disability, death, termination or other
    cessation of employment, authorized leave of absence or other
    change in the employment or other status of a Participant and
    the extent to which, and the period during which, the
    Participant, or the Participant’s legal representative,
    conservator, guardian or Designated Beneficiary, may exercise
    rights under the Award.

 

    (e)     Withholding.  The
    Participant must satisfy all applicable federal, state, and
    local or other income and employment tax withholding obligations
    before the Company will deliver stock certificates or otherwise
    recognize ownership of Common Stock under an Award. The Company
    may decide to satisfy the withholding obligations through
    additional withholding on salary or wages. If the Company elects
    not to or cannot withhold from other compensation, the
    Participant must pay the Company the full amount, if any,
    required for withholding or have a broker tender to the Company
    cash equal to the withholding obligations. Payment of
    withholding obligations is due before the Company will issue any
    shares on exercise or release from forfeiture of an Award or, if
    the Company so requires, at the same time as is payment of the
    exercise price unless the Company determines otherwise. If
    provided for in an Award or approved by the Company in its sole
    discretion, a Participant may satisfy such tax obligations in
    whole or in part by delivery of shares of Common Stock,
    including shares retained from the Award creating the tax
    obligation, valued at their Fair Market Value; provided,
    however, except as otherwise provided by the Company, that the
    total tax withholding where stock is being used to satisfy such
    tax obligations cannot exceed the Company’s minimum
    statutory withholding obligations (based on minimum statutory
    withholding rates for federal and state tax purposes, including
    payroll taxes, that are applicable to such supplemental taxable
    income). Shares surrendered to satisfy tax withholding
    requirements cannot be subject to any repurchase, forfeiture,
    unfulfilled vesting or other similar requirements.

 

    (f)     Amendment of
    Award.  Except as otherwise provided in
    Section 5(g) with respect to repricings, Section 7(b)
    or 8(b) with respect to the vesting of Restricted Stock Awards
    and Other Stock-Based Awards, Section 10(i) with respect to
    Performance Awards or Section 11(d) with respect to actions
    requiring shareholder approval, the Board may amend, modify or
    terminate any outstanding Award, including but not limited to,
    substituting therefor another Award of the same or a different
    type, changing the date of exercise or realization, and
    converting an Incentive Stock Option to a Nonstatutory Stock
    Option. The Participant’s consent to such action shall be
    required unless (i) the Board determines that the action,
    taking into account any related action, would not materially and
    adversely affect the Participant’s rights under the Plan or
    (ii) the change is permitted under Section 9 hereof.

 

    (g)     Conditions on Delivery of
    Stock.  The Company will not be obligated to
    deliver any shares of Common Stock pursuant to the Plan or to
    remove restrictions from shares previously delivered under the
    Plan until (i) all conditions of the Award have been met or
    removed to the satisfaction of the Company, (ii) in the
    opinion of the Company’s counsel, all other legal matters
    in connection with the issuance and delivery of such shares have
    been satisfied, including any applicable securities laws and any
    applicable stock exchange or stock market rules and regulations,
    and (iii) the Participant has executed and delivered to the
    Company such representations or agreements as the Company may
    consider appropriate to satisfy the requirements of any
    applicable laws, rules or regulations.

 

    (h)     Acceleration.  Except
    as otherwise provided in Sections 7(b) or 8(b), the Board
    may at any time provide that any Award shall become immediately
    exercisable in full or in part, free of some or all restrictions
    or conditions, or otherwise realizable in full or in part, as
    the case may be.

 

    (i)     Performance
    Awards.

 

    (1)     Grants.  Restricted
    Stock Awards and Other Stock-Based Awards under the Plan may be
    made subject to the achievement of performance goals pursuant to
    this Section 10(i) (“Performance Awards”),
    subject to the limit in Section 4(b)(1) on shares covered
    by such grants.

 

    12

 

    (2)     Committee.  Grants
    of Performance Awards to any Covered Employee intended to
    qualify as “performance-based compensation” under
    Section 162(m) (“Performance-Based Compensation”)
    shall be made only by a Committee (or subcommittee of a
    Committee) comprised solely of two or more directors eligible to
    serve on a committee making Awards qualifying as
    “performance-based compensation” under
    Section 162(m). In the case of such Awards granted to
    Covered Employees, references to the Board or to a Committee
    shall be deemed to be references to such Committee or
    subcommittee. “Covered Employee” shall mean any person
    who is, or whom the Committee, in its discretion, determines may
    be, a “covered employee” under Section 162(m)(3)
    of the Code.

 

    (3)     Performance
    Measures.  For any Award that is intended to
    qualify as Performance-Based Compensation, the Committee shall
    specify that the extent of vesting
    and/or
    delivery shall be subject to the achievement of one or more
    objective performance measures established by the Committee,
    which shall be based on the relative or absolute attainment of
    specified levels of one or any combination of the following:
    (a) earnings per share, (b) return on average equity
    or average assets in relation to a peer group of companies
    designated by the Company, (c) earnings, (d) earnings
    growth, (e) earnings before interest, taxes and
    amortization (EBITA), (f) operating income,
    (g) operating margins, (h) revenues,
    (i) expenses, (j) stock price, (k) market share,
    (l) chargeoffs, (m) reductions in non-performing
    assets, (n) return on sales, assets, equity or investment,
    (o) regulatory compliance, (p) satisfactory internal
    or external audits, (q) improvement of financial ratings,
    (r) achievement of balance sheet or income statement
    objectives, (s) net cash provided from continuing
    operations, (t) stock price appreciation, (u) total
    shareholder return, (v) cost control, (w) strategic
    initiatives, (x) net operating profit after tax,
    (y) pre-tax or after-tax income, (z) cash flow, or
    (aa) such other objective goals established by the Committee,
    and may be absolute in their terms or measured against or in
    relationship to other companies comparably, similarly or
    otherwise situated. The Committee may specify that such
    performance measures shall be adjusted to exclude any one or
    more of (i) extraordinary items and any other unusual or
    non-recurring items, (ii) discontinued operations,
    (iii) gains or losses on the dispositions of discontinued
    operations, (iv) the cumulative effects of changes in
    accounting principles, (v) the writedown of any asset, and
    (vi) charges for restructuring and rationalization
    programs. Such performance measures: (i) may vary by
    Participant and may be different for different Awards;
    (ii) may be particular to a Participant or the department,
    branch, line of business, subsidiary or other unit in which the
    Participant works and may cover such period as may be specified
    by the Committee; and (iii) shall be set by the Committee
    within the time period prescribed by, and shall otherwise comply
    with the requirements of, Section 162(m). Awards that are
    not intended to qualify as Performance-Based Compensation may be
    based on these or such other performance measures as the Board
    may determine.

 

    (4)     Adjustments.  Notwithstanding
    any provision of the Plan, with respect to any Performance Award
    that is intended to qualify as Performance-Based Compensation,
    the Committee may adjust downwards, but not upwards, the cash or
    number of Shares payable pursuant to such Award, and the
    Committee may not waive the achievement of the applicable
    performance measures except in the case of the death or
    disability of the Participant or a change in control of the
    Company.

 

    (5)     Other.  The
    Committee shall have the power to impose such other restrictions
    on Performance Awards as it may deem necessary or appropriate to
    ensure that such Awards satisfy all requirements for
    Performance-Based Compensation.

 

    11.     Miscellaneous

 

    (a)     No Right To Employment or
    Other Status.  No person shall have any claim
    or right to be granted an Award, and the grant of an Award shall
    not be construed as giving a Participant the right to continued
    employment or any other relationship with the Company. The
    Company expressly reserves the right at any time to dismiss or
    otherwise terminate its relationship with a Participant free
    from any liability or claim under the Plan, except as expressly
    provided in the applicable Award.

 

    (b)     No Rights As
    Stockholder.  Subject to the provisions of the
    applicable Award, no Participant or Designated Beneficiary shall
    have any rights as a stockholder with respect to any shares of
    Common Stock to be distributed with respect to an Award until
    becoming the record holder of such shares.

 

    13

 

    (c)     Effective Date and Term
    of Plan.  The Plan shall become effective on
    the date the Plan is approved by the Company’s stockholders
    (the “Effective Date”). No Awards shall be granted
    under the Plan after the expiration of 10 years from the
    Effective Date, but Awards previously granted may extend beyond
    that date.

 

    (d)     Amendment of
    Plan.  The Board may amend, suspend or
    terminate the Plan or any portion thereof at any time provided
    that (i) to the extent required by Section 162(m), no
    Award granted to a Participant that is intended to comply with
    Section 162(m) after the date of such amendment shall
    become exercisable, realizable or vested, as applicable to such
    Award, unless and until such amendment shall have been approved
    by the Company’s stockholders if required by
    Section 162(m) (including the vote required under
    Section 162(m)); (ii) no amendment that would require
    stockholder approval under the rules of the New York Stock
    Exchange (“NYSE”) may be made effective unless and
    until such amendment shall have been approved by the
    Company’s stockholders; and (iii) if the NYSE amends
    its corporate governance rules so that such rules no longer
    require stockholder approval of material revisions to equity
    compensation plans, then, from and after the effective date of
    such amendment to the NYSE rules, no amendment to the Plan
    (A) materially increasing the number of shares authorized
    under the Plan (other than pursuant to Section 4(c) or 9),
    (B) expanding the types of Awards that may be granted under
    the Plan, or (C) materially expanding the class of
    participants eligible to participate in the Plan shall be
    effective unless stockholder approval is obtained. In addition,
    if at any time the approval of the Company’s stockholders
    is required as to any other modification or amendment under
    Section 422 of the Code or any successor provision with
    respect to Incentive Stock Options, the Board may not effect
    such modification or amendment without such approval. Unless
    otherwise specified in the amendment, any amendment to the Plan
    adopted in accordance with this Section 11(d) shall apply
    to, and be binding on the holders of, all Awards outstanding
    under the Plan at the time the amendment is adopted, provided
    the Board determines that such amendment does not materially and
    adversely affect the rights of Participants under the Plan.

 

    (e)     Provisions for Foreign
    Participants.  The Board may modify Awards
    granted to Participants who are foreign nationals or employed
    outside the United States or establish subplans or procedures
    under the Plan to recognize differences in laws, rules,
    regulations or customs of such foreign jurisdictions with
    respect to tax, securities, currency, employee benefit or other
    matters.

 

    (f)     Compliance with Code
    Section 409A.  No Award shall provide for
    deferral of compensation that does not comply with
    Section 409A of the Code, unless the Board, at the time of
    grant, specifically provides that the Award is not intended to
    comply with Section 409A of the Code. The Company shall
    have no liability to a Participant, or any other party, if an
    Award that is intended to be exempt from, or compliant with,
    Section 409A is not so exempt or compliant or for any
    action taken by the Board.

 

    (g)     Governing
    Law.  The provisions of the Plan and all
    Awards made hereunder shall be governed by and interpreted in
    accordance with the laws of the State of Delaware, excluding
    choice-of-law principles of the law of such state that would
    require the application of the laws of a jurisdiction other than
    such state.

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