Document:

exv10w1

Exhibit 10.1

 

    Appendix A

 

    Invesco
    Ltd. 

    

 

    2011
    Global Equity Incentive Plan

 

		
	
    1.  
	
    Purpose

 

    The purpose of the Plan is to give the Company a competitive
    advantage in attracting, retaining and motivating officers,
    employees, directors
    and/or
    consultants and to provide the Company and its Subsidiaries and
    Affiliates with a long-term incentive plan providing incentives
    directly linked to Shareholder value.

 

		
	
    2.  
	
    Effective
    Date and Term of Plan

 

    The Plan was adopted by the Board on February 17, 2011 and
    is effective as of the date that it is approved by the
    shareholders of the Company (the “Effective Date”). No
    awards will be made under the Invesco Ltd. 2008 Global Equity
    Incentive Plan after the Effective Date. Awards may be granted
    under the Plan until the date that is ten years after the
    Effective Date, unless the Plan is discontinued earlier pursuant
    to Section 14.

 

		
	
    3.  
	
    Types of
    Awards

 

    Options, Stock Appreciation Rights, Restricted Stock, Restricted
    Stock Units and Other Stock-Based Awards may be granted under
    the Plan.

 

		
	
    4.  
	
    Definitions

 

    Except as otherwise specifically provided in an Award Agreement,
    each capitalized word, term or phrase used in the Plan shall
    have the meaning set forth in this Section 4 or, if not
    defined in this Section, the first place that it appears in the
    Plan.

 

    “Affiliate” means a corporation or other entity
    controlled by, controlling or under common control with, the
    Company; provided, however, that solely for purposes of
    determining whether a Participant has a Termination of Service
    that is a “separation from service” within the meaning
    of Section 409A of the Code, an “Affiliate” of a
    corporation or other entity means all other entities with which
    such corporation or other entity would be considered a single
    employer under Sections 414(b) or 414(c) of the Code.

 

    “Applicable Exchange” means the New York Stock
    Exchange or such other securities exchange as may at the
    applicable time be the principal market for the Shares.

 

    “Award” means an Option, Stock Appreciation
    Right, Restricted Stock, Restricted Stock Unit or Other
    Stock-Based Award granted pursuant to the terms of the Plan.

 

    “Award Agreement” means a written document or
    agreement setting forth the terms and conditions of a specific
    Award and any addendum thereto.

 

    “Beneficiary” means the person(s) or trust(s)
    designated by a Participant in the Participant’s most
    recent written beneficiary designation filed with the Company or
    its agent to receive any amounts payable or exercise any
    applicable rights under the Participant’s Awards after the
    Participant’s death. If there is no surviving designated
    beneficiary at the time of the Participant’s death, the
    Beneficiary shall be the person(s) or trust(s) entitled by will
    or the laws of decent and distribution to receive such benefits.

 

    “Board” means the Board of Directors of the
    Company.

 

    “Cause” means, with respect to a Participant,
    (i) if such Participant is a party to an Individual
    Agreement at the time of the Termination of Service that defines
    such term (or word(s) of similar meaning), the meaning given in
    such Individual Agreement or (ii) if there is no such
    Individual Agreement or if it does not define Cause (or word(s)
    of similar meaning): (A) the Participant’s plea of
    guilty or nolo contendere to, or conviction of,
    (1) a felony (or its equivalent in a
    non-United
    States jurisdiction) or (2) other conduct of a criminal
    nature that has or is likely to have a material adverse effect
    on the reputation or standing in the community of the

    

    A-1

 

    Company or any of its Affiliates, as determined by the Committee
    in its sole discretion, or that legally prohibits the
    Participant from working for the Company or any of its
    Affiliates; (B) a breach by the Participant of a regulatory
    rule that adversely affects the Participant’s ability to
    perform the Participant’s employment duties to the Company
    or any of its Affiliates in any material respect; or
    (C) the Participant’s failure, in each case in any
    material respect, to (1) perform the Participant’s
    employment duties, (2) comply with the applicable policies
    of the Company or any of its Affiliates, (3) follow
    reasonable directions received from the Company or any of its
    Affiliates or (4) comply with covenants contained in any
    Individual Agreement or Award Agreement to which the Participant
    is a party. With respect to a Participant’s termination of
    directorship, “Cause” shall include only an act or
    failure to act that constitutes cause for removal of a director
    under the Company’s Bye-Laws.

 

    “Change in Control” means any of the following
    events:

 

    (i) the acquisition by any 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
    (within the meaning of
    Rule 13d-3
    promulgated under the Exchange Act) of twenty-five percent (25%)
    or more of either (A) the then outstanding shares of the
    Company (the “Outstanding Company Shares”) or
    (B) the combined voting power of the then outstanding
    voting 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: (1) any
    acquisition directly from the Company; (2) any acquisition
    by the Company; (3) any acquisition by any employee benefit
    plan (or related trust) sponsored or maintained by the Company
    or any corporation controlled by the Company; or (4) any
    acquisition pursuant to a transaction which complies with
    clauses (A), (B) and (C) of subsection (iii)
    below; or

 

    (ii) individuals who, as of January 1, 2011,
    constitute the Board (the “Incumbent Board”) cease for
    any reason to constitute at least a majority of the Board;
    provided, however, that any individual becoming a
    director subsequent to January 1, 2011 whose election, or
    nomination for election by the Company’s Shareholders, was
    approved by a vote of at least two-thirds (2/3) of the directors
    then comprising the Incumbent Board shall be considered as
    though such individual were a member of the Incumbent Board, but
    excluding, for this purpose, any such individual whose initial
    assumption of office occurs as a result of an actual or
    threatened election contest with respect to the election or
    removal of directors or other actual or threatened solicitation
    of proxies or consents by or on behalf of a Person other than
    the Board; or

 

    (iii) consummation of a reorganization, merger or
    consolidation or sale or other disposition of all or
    substantially all of the assets of the Company or the
    acquisition of assets of another entity (each, a “Corporate
    Transaction”), in each case, unless, following such
    Corporate Transaction, (A) all or substantially all of the
    individuals and entities who were the beneficial owners,
    respectively, of the Outstanding Company Shares and Outstanding
    Company Voting Securities immediately prior to such Corporate
    Transaction beneficially own, directly or indirectly, more than
    fifty percent (50%) of, respectively, the then outstanding
    shares and the combined voting power of the then outstanding
    voting securities entitled to vote generally in the election of
    directors, as the case may be, of the corporation or other
    entity resulting from such Corporate Transaction (including,
    without limitation, a corporation which as a result of such
    transaction owns the Company or all or substantially all of the
    Company’s assets either directly or through one or more
    subsidiaries) in substantially the same proportions as their
    ownership, immediately prior to such Corporate Transaction of
    the Outstanding Company Shares and Outstanding Company Voting
    Securities, as the case may be, (B) no Person (excluding
    any employee benefit plan or related trust of the Company or
    such corporation resulting from such Corporate Transaction)
    beneficially owns, directly or indirectly, twenty-five percent
    (25%) or more of, respectively, the then outstanding shares of
    the corporation resulting from such Corporate Transaction or the
    combined voting power of the then outstanding voting securities
    of such corporation except to the extent that such ownership
    existed prior to the Corporate Transaction and (C) at least
    a majority of the members of the board of directors of the
    corporation (or other governing board of a non-corporate entity)
    resulting from such Corporate

    

    A-2

 

    Transaction were members of the Incumbent Board at the time of
    the execution of the initial agreement, or of the action of the
    Board, providing for such Corporate Transaction; or

 

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

 

    Notwithstanding the foregoing, an event described above shall be
    a Change in Control with respect to an Award that constitutes a
    “nonqualified deferred compensation plan” within the
    meaning of Section 409A of the Code only if such event is
    also a change in the ownership or effective control of the
    Company or a change in the ownership of a substantial portion of
    the assets of the Company within the meaning of
    Section 409A of the Code to the extent necessary to avoid
    the imposition of any tax or interest or the inclusion of any
    amount in income thereunder.

 

    “Code” means the Internal Revenue Code of 1986,
    as amended from time to time, and any successor thereto, the
    Treasury Regulations thereunder and other relevant interpretive
    guidance issued by the Internal Revenue Service or the Treasury
    Department. Reference to any specific section of the Code shall
    be deemed to include such regulations and guidance, as well as
    any successor section, regulations and guidance.

 

    “Committee” means the Compensation Committee of
    the Board or such other committee or subcommittee of the Board
    as may be appointed by the Board to act as the Committee under
    the Plan. If at any time there is no such Compensation Committee
    or other committee or subcommittee appointed by the Board, the
    Board shall be the Committee. The Committee shall consist of two
    or more directors, each of whom is intended to be, to the extent
    required by
    Rule 16b-3
    of the Exchange Act, a “non-employee director” as
    defined in
    Rule 16b-3
    of the Exchange Act and, to the extent required by
    Section 162(m) of the Code, an “outside director”
    as defined under Section 162(m) of the Code. Any member of
    the Committee who does not meet the foregoing requirements shall
    abstain from any decision regarding an Award and shall not be
    considered a member of the Committee to the extent required to
    comply with
    Rule 16b-3
    of the Exchange Act or Section 162(m) of the Code.

 

    “Company” means Invesco Ltd., a Bermuda
    exempted company.

 

    “Disability” means, with respect to a
    Participant, (i) a “disability” (or words of
    similar meaning) as defined in any Individual Agreement to which
    the Participant is a party or (ii) if there is no such
    Individual Agreement or it does not define
    “disability” (or words of similar meaning), (A) a
    permanent and total disability as determined under the
    Company’s long-term disability plan applicable to the
    Participant or (B) if there is no such plan applicable to
    the Participant, “Disability” as determined by the
    Committee in its sole discretion. The Committee may require such
    medical or other evidence as it deems necessary to judge the
    nature and permanency of the Participant’s condition.
    Notwithstanding the foregoing, with respect to an Incentive
    Stock Option, “Disability” shall mean a
    “Permanent and Total Disability” as defined in
    Section 22(e)(3) of the Code and, with respect to any Award
    that constitutes a “nonqualified deferred compensation
    plan” within the meaning of Section 409A of the Code,
    “Disability” shall mean a “disability” as
    defined under Section 409A of the Code to the extent
    necessary to avoid the imposition of any tax or interest or the
    inclusion of any amount in income thereunder.

 

    “Disaffiliation” means a Subsidiary’s,
    Affiliate’s or business segment’s ceasing to be a
    Subsidiary, Affiliate or business segment for any reason
    (including, without limitation, as a result of a public
    offering, or a spinoff or sale by the Company, of the stock of
    the Subsidiary or Affiliate or a sale of a business segment of
    the Company and its Affiliates).

 

    “Eligible Individuals” means non-employee
    directors, officers, employees and consultants of the Company or
    any of its Subsidiaries or Affiliates, and prospective officers,
    employees and consultants who have accepted offers of employment
    or consultancy from the Company or its Subsidiaries or
    Affiliates.

 

    “Exchange Act” means the Securities Exchange
    Act of 1934, as amended from time to time, and any successor
    thereto. Reference to any specific section of the Exchange Act
    shall be deemed to include such regulations and guidance issued
    thereunder, as well as any successor section, regulations and
    guidance.

    

    A-3

 

    “Fair Market Value” means, unless otherwise
    determined by the Committee, the closing price of a Share on the
    Applicable Exchange on the date of measurement or, if Shares are
    not traded on the Applicable Exchange on such measurement date,
    then on the next preceding date on which Shares are traded, all
    as reported by such source as the Committee may select. If the
    Shares are not listed on a national securities exchange, Fair
    Market Value shall be determined by the Committee in its good
    faith discretion.

 

    “Good Reason” means, with respect to a
    Participant, during the
    24-month
    period following a Change in Control, actions taken by the
    Company or any of its Affiliates resulting in a material
    negative change in the employment relationship of the
    Participant who is an officer or an employee including, without
    limitation:

 

    (i) the assignment to the Participant of duties materially
    inconsistent with the Participant’s position (including
    status, offices, titles and reporting requirements), authority,
    duties or responsibilities, or a material diminution in such
    position, authority, duties or responsibilities, in each case
    from those in effect immediately prior to the Change in Control;

 

    (ii) a material reduction of the Participant’s
    aggregate annual compensation, including, without limitation,
    base salary and annual bonus opportunity, from that in effect
    immediately prior to the Change in Control;

 

    (iii) a change in the Participant’s principal place of
    employment that increases the Participant’s commute by 40
    or more miles or materially increases the time of the
    Participant’s commute as compared to the Participant’s
    commute immediately prior to the Change in Control; or

 

    (iv) any other action or inaction that constitutes a
    material breach by the Company or an Affiliate of any Individual
    Agreement.

 

    In order to invoke a Termination of Service for Good Reason, a
    Participant must provide written notice to the Company or
    Affiliate with respect to which the Participant is employed or
    providing services of the existence of one or more of the
    conditions constituting Good Reason within ninety (90) days
    following the Participant’s knowledge of the initial
    existence of such condition or conditions, specifying in
    reasonable detail the conditions constituting Good Reason, and
    the Company shall have thirty (30) days following receipt
    of such written notice (the “Cure Period”) during
    which it may remedy the condition. In the event that the Company
    or Affiliate fails to remedy the condition constituting Good
    Reason during the applicable Cure Period, the Participant’s
    Termination of Service must occur, if at all, within ninety
    (90) days following such Cure Period in order for such
    termination as a result of such condition to constitute a
    Termination of Service for Good Reason.

 

    “Grant Date” means (i) the date on which
    the Committee by resolution selects an Eligible Individual to
    receive a grant of an Award, establishes the number of Shares to
    be subject to such Award and, in the case of an Option or Stock
    Appreciation Right, establishes the exercise price of such Award
    or (ii) such later date as the Committee shall provide in
    such resolution.

 

    “Incentive Stock Option” means any Option that
    is designated in the applicable Award Agreement as an
    “incentive stock option” within the meaning of
    Section 422 of the Code and otherwise meets the
    requirements to be an “incentive stock option” set
    forth in Section 422 of the Code.

 

    “Individual Agreement” means a written
    employment, consulting or similar agreement between a
    Participant and the Company or one of its Subsidiaries or
    Affiliates.

 

    “ISO Eligible Employees” means an employee of
    the Company, any subsidiary corporation (within the meaning of
    Section 424(f) of the Code) or parent corporation (within
    the meaning of Section 424(e) of the Code).

 

    “Nonqualified Option” means any Option that is
    not an Incentive Stock Option.

 

    “Option” means an Incentive Stock Option or
    Nonqualified Option granted under Section 8.

    

    A-4

 

    “Other Stock-Based Award” means an Award of
    Shares or any other Award that is valued in whole or in part by
    reference to, or is otherwise based upon, Shares, including
    (without limitation) unrestricted stock, dividend equivalents
    and convertible debentures.

 

    “Participant” means an Eligible Individual to
    whom an Award is or has been granted.

 

    “Performance Goals” means the performance goals
    established by the Committee in connection with the grant of
    Awards. In the case of Qualified Performance-Based Awards,
    (i) such goals shall be based on the attainment of
    specified levels of one or more of the following objective
    measures with regard to the Company (or a Subsidiary, business
    segment or other operational unit of the Company): operating
    revenues, annual revenues, net revenues, clients’ assets
    under management (“AUM”), gross sales, net sales, net
    asset flows, revenue weighted net asset flows, cross selling of
    investment products across regions and distribution channels,
    investment performance by account or weighted by AUM (relative
    and absolute performance), investment performance ratings as
    measured by recognized third parties, risk adjusted investment
    performance (information ratio, sharpe ratio), expense
    efficiency ratios, expense management, operating margin,
    adjusted operating margin, net revenue yield on AUM, client
    redemption rates and new account wins and size of pipeline,
    market share, customer service measures or indices, success of
    new product launches as measured by revenues, asset flows, AUM
    and investment performance, profit margin, operating profit
    margin, earnings (including earnings before taxes, earnings
    before interest and taxes or earnings before interest, taxes,
    depreciation and amortization), earnings per share, adjusted
    earnings per share, diluted earnings per share growth, adjusted
    earnings per share growth, operating income (including pre-cash
    bonus operating income), adjusted operating income (including
    pre-cash bonus adjusted operating income), cash bonus expense,
    incentive expense, pre- or after-tax income, net income,
    adjusted net income, free cash flow (operating cash flow less
    capital expenditures), cash flow per share, return on equity (or
    return on equity adjusted for goodwill), return on capital
    (including return on total capital or return on invested
    capital), return on investment, stock price appreciation, total
    shareholder return (measured in terms of stock price
    appreciation and dividend growth), cost control, business
    expansion or consolidation, diversification of AUM by investment
    objectives, growth in global position (AUM domiciled outside of
    United States), diversified distribution channels, successful
    integration of acquisitions, market value of a business or group
    based on independent third-party valuation, or change in working
    capital, and (ii) such Performance Goals shall be set by
    the Committee within the time period prescribed by
    Section 162(m) of the Code.

 

    “Performance Period” means that period
    established by the Committee during which any Performance Goals
    specified by the Committee with respect to such Award are to be
    measured.

 

    “Plan” means this Invesco Ltd. 2011 Global
    Equity Incentive Plan, as set forth herein and as hereafter
    amended from time to time.

 

    “Qualified Performance-Based Award” means an
    Award intended to qualify for the Section 162(m) Exemption,
    as provided in Section 13.

 

    “Restricted Stock” means an Award granted under
    Section 9.

 

    “Restricted Stock Unit” means an Award granted
    under Section 10.

 

    “Restriction Period” means, with respect to
    Restricted Stock and Restricted Stock Units, the period
    commencing on the date of such Award to which vesting
    restrictions apply and ending upon the expiration of the
    applicable vesting conditions
    and/or the
    achievement of the applicable Performance Goals (it being
    understood that the Committee may provide that restrictions
    shall lapse with respect to portions of the applicable Award
    during the Restriction Period).

 

    “Section 162(m) Exemption” means the
    exemption from the limitation on deductibility imposed by
    Section 162(m) of the Code that is set forth in
    Section 162(m)(4)(C) of the Code.

 

    “Share” or “Shares” means
    common shares, par value $0.20 each, of the Company or such
    other equity securities that may become subject to an Award.

 

    “Shareholder” has the same meaning as the term
    “Member” in the Companies Act 1981 of Bermuda.

    

    A-5

 

    “Stock Appreciation Right” means an Award
    granted under Section 8(b).

 

    “Subsidiary” means any corporation,
    partnership, joint venture, limited liability company or other
    entity during any period in which at least a fifty percent (50%)
    voting or profits interest is owned, directly or indirectly, by
    the Company or any successor to the Company.

 

    “Term” means the maximum period during which an
    Option, Stock Appreciation Right or, if applicable, Other
    Stock-Based Award may remain outstanding as specified in the
    applicable Award Agreement.

 

    “Termination of Service” means the termination
    of the Participant’s employment or consultancy with, or
    performance of services (including as a director) for, the
    Company and any of its Subsidiaries or Affiliates. Temporary
    absences from employment because of illness, vacation or leave
    of absence and transfers among the Company and its Subsidiaries
    and Affiliates shall not be considered Terminations of Service.
    With respect to any Award that constitutes a “nonqualified
    deferred compensation plan” within the meaning of
    Section 409A of the Code, “Termination of
    Service” shall mean a “separation from service”
    as defined under Section 409A of the Code to the extent
    required by Section 409A of the Code to avoid the
    imposition of any tax or interest or the inclusion of any amount
    in income thereunder. A Participant has a separation from
    service within the meaning of Section 409A of the Code if
    the Participant terminates employment with the Company and all
    Affiliates for any reason. A Participant will generally be
    treated as having terminated employment with the Company and all
    Affiliates as of a certain date if the Participant and the
    Company or Affiliate that employs the Participant reasonably
    anticipate that the Participant will perform no further services
    for the Company or any Affiliate after such date or that the
    level of bona fide services that the Participant will perform
    after such date (whether as an employee or an independent
    contractor) will permanently decrease to no more than
    20 percent of the average level of bona fide services
    performed (whether as an employee or an independent contractor)
    over the immediately preceding
    36-month
    period (or the full period of services if the Participant has
    been providing services for fewer than 36 months);
    provided, however, that the employment relationship is
    treated as continuing while the Participant is on military
    leave, sick leave or other bona fide leave of absence if the
    period of leave does not exceed six months or, if longer, so
    long as the Participant retains the right to reemployment with
    the Company or any Affiliate.

 

		
	
    5.  
	
    Administration

 

    (a) Committee.  The Plan shall be
    administered by the Committee. The Committee shall, subject to
    Section 13, have plenary authority to grant Awards pursuant
    to the terms of the Plan to Eligible Individuals. Among other
    things, the Committee shall have the authority, subject to the
    terms and conditions of the Plan:

 

    (i) to select the Eligible Individuals to whom Awards may
    from time to time be granted;

 

    (ii) to determine whether and to what extent Awards are to
    be granted hereunder;

 

    (iii) to determine the number of Shares to be covered by
    each Award granted hereunder;

 

    (iv) to determine the terms and conditions of each Award
    granted hereunder, based on such factors as the Committee shall
    determine;

 

    (v) to adopt
    sub-plans
    and special provisions applicable to Awards regulated by the
    laws of a jurisdiction outside of the United States, which
    sub-plans
    and special provisions may take precedence over other provisions
    of the Plan;

 

    (vi) subject to Sections 6(e)(iii), 8(d), 13 and 14,
    to modify, amend or adjust the terms and conditions of any Award;

 

    (vii) to adopt, alter and repeal such administrative rules,
    guidelines and practices governing the Plan as it shall from
    time to time deem advisable;

 

    (viii) to interpret the terms and provisions of the Plan
    and any Award issued under the Plan (and any Award Agreement
    relating thereto);

    

    A-6

 

    (ix) subject to Section 13, to accelerate the vesting
    or lapse of restrictions of any outstanding Award, based in each
    case on such considerations as the Committee in its sole
    discretion determines;

 

    (x) to decide all other matters to be determined in
    connection with an Award;

 

    (xi) to determine whether, to what extent and under what
    circumstances cash, Shares and other property and other amounts
    payable with respect to an Award under the Plan shall be
    deferred either automatically or at the election of the
    Participant;

 

    (xii) to establish any “blackout” period that the
    Committee in its sole discretion deems necessary or
    advisable; and

 

    (xiii) to otherwise administer the Plan.

 

    (b) Delegation of Authority.  To the
    extent permitted under applicable law and Section 13, the
    Committee may delegate any of its authority to administer the
    Plan to any person or persons selected by the Committee,
    including one or more members of the Committee, and such person
    or persons shall be deemed to be the Committee with respect to,
    and to the extent of, its or their authority.

 

    (c) Procedures.

 

    (i) The Committee may act by a majority of its members then
    in office and, except to the extent prohibited by applicable law
    or the listing standards of the Applicable Exchange and subject
    to Section 13, through any person or persons to whom it has
    delegated its authority pursuant to Section 5(b).

 

    (ii) Any authority granted to the Committee may also be
    exercised by the full Board. To the extent that any permitted
    action taken by the Board conflicts with action taken by the
    Committee, the Board action shall control.

 

    (d) Discretion of Committee and Binding
    Effect.  Any determination made by the Committee
    or an appropriately delegated person or persons with respect to
    the Plan or any Award shall be made in the sole discretion of
    the Committee or such delegate, unless in contravention of any
    express term of the Plan, including, without limitation, any
    determination involving the appropriateness or equitableness of
    any action. All decisions made by the Committee or any
    appropriately delegated person or persons shall be final and
    binding on all persons, including the Company, Participants and
    Eligible Individuals. Notwithstanding the foregoing, following a
    Change in Control, any determination by the Committee as to
    whether “Cause” or “Good Reason” exists
    shall be subject to de novo review.

 

    (e) Cancellation or Suspension.  Subject
    to Section 8(d), the Committee or an appropriately
    delegated person or persons shall have full power and authority
    to determine whether, to what extent and under what
    circumstances any Award shall be canceled or suspended. In
    particular, but without limitation, all outstanding Awards to
    any Participant may be canceled if the Participant, without the
    consent of the Committee, while employed by, or providing
    services to, the Company or after a Termination of Service,
    becomes associated with, employed by, renders services to, or
    owns any interest in (other than any nonsubstantial interest, as
    determined by the Committee or any appropriately delegated
    person or persons), any business that is in competition with the
    Company or its Affiliates or with any business in which the
    Company or its Affiliates has a substantial interest, as
    determined by the Committee or any appropriately delegated
    person or persons.

 

    (f) Award Agreements.  The terms and
    conditions of each Award, as determined by the Committee, shall
    be set forth in a written (including electronic) Award
    Agreement, which shall be delivered to the Participant receiving
    such Award upon, or as promptly as is reasonably practicable
    following, the grant of such Award. Unless otherwise specified
    by the Committee, in its sole discretion, or otherwise provided
    in the Award Agreement, an Award shall not be effective unless
    the Award Agreement is signed or otherwise accepted by the
    Company and the Participant receiving the Award (including by
    electronic delivery). The Committee, in its sole discretion, may
    deliver any documents related to an Award or Award Agreement by
    electronic means. Award Agreements may be amended only in
    accordance with Section 14.

    

    A-7

 

		
	
    6.  
	
    Shares Subject
    to Plan

 

    (a) Plan Maximums.  Subject to adjustment
    as described in Section 6(e), the maximum number of Shares
    that may be issued pursuant to Awards under the Plan shall be
    28,000,000.

 

    (b) Individual and Award Limits.  Subject
    to adjustment as described in Section 6(e),

 

    (i) no Participant shall be granted Qualified Performance
    Based-Awards covering more than 2,000,000 Shares during any
    calendar year; and

 

    (ii) the maximum number of Shares that may be issued
    pursuant to Options intended to be Incentive Stock Options shall
    be 6,000,000 Shares.

 

    (c) Source of Shares.  Shares subject to
    Awards under the Plan may be authorized but unissued Shares or
    Shares held by the Company as treasury shares.

 

    (d) Rules for Calculating
    Shares Issued.  Shares that are subject to
    Awards granted under the Plan shall be deemed not to have been
    issued for purposes of the Plan maximums set forth in
    Section 6(a) and 6(b)(ii) to the extent that:

 

    (i) the Award is forfeited, exercised or canceled or the
    Award terminates, expires or lapses for any reason without
    Shares having been delivered;

 

    (ii) the Award is settled in cash; or

 

    (iii) the Shares are tendered or withheld by the Company in
    payment of the exercise price of an Option or Other Stock-Based
    Award, if applicable, or to satisfy all or part of any tax
    withholding obligation related to an Award.

 

    (e) Adjustment Provision.

 

    (i) In the event of a merger, consolidation, stock rights
    offering, liquidation, or similar event affecting the Company or
    any of its Subsidiaries (each, a “Corporate Event”) or
    a stock dividend, stock split, reverse stock split, separation,
    spinoff, Disaffiliation, reorganization, extraordinary dividend
    of cash or other property, share combination, or
    recapitalization or similar event affecting the capital
    structure of the Company (each, a “Share Change”), the
    Committee or the Board shall make such equitable and appropriate
    substitutions or adjustments to (A) the aggregate number
    and kind of Shares or other securities reserved for issuance and
    delivery under the Plan, (B) the various maximum
    limitations set forth in Sections 6(a) and 6(b) upon
    certain types of Awards and upon the grants to individuals of
    certain types of Awards, (C) the number and kind of Shares
    or other securities subject to outstanding Awards and
    (D) the exercise price of outstanding Awards.

 

    (ii) In the case of Corporate Events, such adjustments may
    include, without limitation, (A) the cancellation of
    outstanding Awards in exchange for payments of cash, securities
    or other property or a combination thereof having an aggregate
    value equal to the value of such Awards, as determined by the
    Committee or the Board in its sole discretion (it being
    understood that in the case of a Corporate Event with respect to
    which Shareholders receive consideration other than publicly
    traded equity securities of the ultimate surviving entity, any
    such determination by the Committee that the value of an Option
    or Stock Appreciation Right shall for this purpose be deemed to
    equal the excess, if any, of the value of the consideration
    being paid for each Share pursuant to such Corporate Event over
    the exercise price of such Option or Stock Appreciation Right
    shall conclusively be deemed valid), (B) the substitution
    of securities or other property (including, without limitation,
    cash or other securities of the Company and securities of
    entities other than the Company) for the Shares subject to
    outstanding Awards and (C) in connection with any
    Disaffiliation, arranging for the assumption of Awards, or
    replacement of Awards with new awards based on securities or
    other property (including, without limitation, other securities
    of the Company and securities of entities other than the
    Company), by the affected Subsidiary, Affiliate, or business
    segment or by the entity that controls such Subsidiary,
    Affiliate, or business segment following such Disaffiliation (as
    well as any corresponding adjustments to Awards that remain
    based upon Company securities).

    

    A-8

 

    (iii) The Committee may, in its discretion, adjust the
    Performance Goals applicable to any Awards to reflect any
    unusual or non-recurring events and other extraordinary items,
    impact of charges for restructurings, discontinued operations
    and the cumulative effects of accounting or tax changes, each as
    defined by generally accepted accounting principles or as
    identified in the Company’s financial statements, notes to
    the financial statements, management’s discussion and
    analysis or other Company filings with the Securities and
    Exchange Commission; provided, however, that no such
    modification shall be made if the effect would be to cause an
    Award that is intended to be a Qualified Performance-Based Award
    to no longer constitute a Qualified Performance-Based Award. If
    the Committee determines that a change in the business,
    operations, corporate structure or capital structure of the
    Company or the applicable subsidiary, business segment or other
    operational unit of, or the manner in which any of the foregoing
    conducts its business, or other events or circumstances render
    the Performance Goals to be unsuitable, the Committee may modify
    such Performance Goals or the related minimum acceptable level
    of achievement, in whole or in part, as the Committee deems
    appropriate and equitable; provided, however, that no
    such modification shall be made if the effect would be to cause
    an Award that is intended to be a Qualified Performance-Based
    Award to no longer constitute a Qualified Performance-Based
    Award.

 

    (f) Section 409A.  Notwithstanding
    the foregoing: (i) any adjustments made pursuant to
    Section 6(e) to Awards that are considered “deferred
    compensation” within the meaning of Section 409A of
    the Code shall be made in compliance with the requirements of
    Section 409A of the Code; (ii) any adjustments made
    pursuant to Section 6(e) to Awards that are not considered
    “deferred compensation” subject to Section 409A
    of the Code shall be made in such a manner as to ensure that
    after such adjustment, the Awards either (A) continue not
    to be subject to Section 409A of the Code or
    (B) comply with the requirements of Section 409A of
    the Code; and (iii) in any event, neither the Committee nor
    the Board shall have the authority to make any adjustments
    pursuant to Section 6(e) to the extent the existence of
    such authority would cause an Award that is not intended to be
    subject to Section 409A of the Code at the Grant Date to be
    subject thereto.

 

		
	
    7.  
	
    Eligibility

 

    Awards may be granted under the Plan to Eligible Individuals;
    provided, however, that Incentive Stock Options
    may be granted only to ISO Eligible Employees.

 

		
	
    8.  
	
    Options
    and Stock Appreciation Rights

 

    (a) Options.  An Option is a right to
    purchase a specified number of Shares at a specified price that
    continues for a stated period of time. Options granted under the
    Plan may be Incentive Stock Options or Nonqualified Options, and
    the Award Agreement for an Option shall indicate whether the
    Option is intended to be an Incentive Stock Option or a
    Nonqualified Option.

 

    (b) Stock Appreciation Rights.  A Stock
    Appreciation Right is a right to receive upon exercise of the
    Stock Appreciation Right an amount in cash, Shares or both, in
    value equal to the product of (i) the excess of the Fair
    Market Value of one Share over the exercise price per Share
    subject to the applicable Stock Appreciation Right, multiplied
    by (ii) the number of Shares in respect of which the Stock
    Appreciation Right has been exercised. The applicable Award
    Agreement shall specify whether such payment is to be made in
    cash or Shares or both, or shall reserve to the Committee or the
    Participant the right to make that determination prior to or
    upon the exercise of the Stock Appreciation Right.

 

    (c) Exercise Price; Not Less Than Fair Market
    Value.  The exercise price per Share subject to an
    Option or Stock Appreciation Right shall be determined by the
    Committee and set forth in the applicable Award Agreement, and
    shall not be less than the Fair Market Value of a Share on the
    Grant Date, except as provided under Section 6(e) or with
    respect to Options or Stock Appreciation Rights that are granted
    in substitution of similar types of awards of a company acquired
    by the Company or an Affiliate or with which the Company or an
    Affiliate combines (whether in connection with a corporate
    transaction, such as a merger, combination, consolidation or
    acquisition of property or stock, or otherwise) to preserve the
    intrinsic value of such awards.

    

    A-9

 

    (d) Prohibition on Repricing.  Except as
    provided in Section 6(e) relating to adjustments due to
    certain corporate events, the exercise price of outstanding
    Options or Stock Appreciation Rights may not be amended to
    reduce the exercise price of such Options or Stock Appreciation
    Rights, nor may outstanding Options or Stock Appreciation Rights
    be canceled in exchange for (i) cash, (ii) Options or
    Stock Appreciation Rights with an exercise price that is less
    than the exercise price of the original outstanding Options or
    Stock Appreciation Rights or (iii) other Awards, unless in
    each case such action is approved by the Company’s
    Shareholders.

 

    (e) Prohibition on Reloads.  Options shall
    not be granted under the Plan in consideration for and shall not
    be conditioned on delivery of Shares to the Company in payment
    of the exercise price or any tax withholding obligation under
    any other stock option, stock appreciation right or other Award.

 

    (f) Term.  The Term of each Option and
    Stock Appreciation Right shall be fixed by the Committee and set
    forth in the applicable Award Agreement but shall not exceed ten
    (10) years from the Grant Date.

 

    (g) Vesting and Exercisability.  Except as
    otherwise provided herein, Options and Stock Appreciation Rights
    shall be exercisable at such time or times and subject to such
    terms and conditions as shall be determined by the Committee.

 

    (h) Termination of Service.  Except as
    provided in the applicable Award Agreement, to the extent an
    Option or Stock Appreciation Right is not vested and
    exercisable, a Participant’s Options and Stock Appreciation
    Rights shall be forfeited upon his or her Termination of Service.

 

    (i) Method of Exercise and
    Payment.  Subject to the provisions of this
    Section 8 and the terms of the applicable Award Agreement,
    Options and Stock Appreciation Rights may be exercised, in whole
    or in part, by giving written notice of exercise specifying the
    number of Shares as to which such Options or Stock Appreciation
    Rights are being exercised and paying, or making arrangements
    satisfactory to the Company for the payment of, all applicable
    taxes pursuant to Section 16(d). In the case of the
    exercise of an Option, such notice shall be accompanied by
    payment in full of the exercise price by (i) certified or
    bank check (ii) delivery of unrestricted Shares of the same
    class as the Shares subject to the Option already owned by the
    Participant (based on the Fair Market Value of the Shares on the
    date the Option is exercised), provided that the Shares have
    been held by the Participant for such period as may established
    by the Committee to comply with applicable law or avoid adverse
    accounting treatment or (iii) such other method as the
    Committee shall permit in its sole discretion (including a
    broker-assisted cashless exercise or netting of Shares).

 

    (j) No Shareholder Rights.  Except as
    otherwise provided in an applicable Award Agreement, a
    Participant shall have no right to dividends or any other rights
    as a Shareholder with respect to Shares subject to an Option or
    Stock Appreciation Right until such Shares are issued to the
    Participant pursuant to the terms of the Award Agreement.

 

		
	
    9.  
	
    Restricted
    Stock

 

    (a) Nature of Awards and
    Certificates.  Shares of Restricted Stock are
    actual Shares that are issued to a Participant subject to
    forfeiture under certain circumstances and shall be evidenced in
    such manner as the Committee may deem appropriate, including
    book-entry registration.

 

    (b) Vesting.  The Committee shall, prior
    to or at the time of grant, condition the grant or vesting of an
    Award of Restricted Stock upon (A) the continued service of
    the Participant, (B) the attainment of Performance Goals or
    (C) the attainment of Performance Goals and the continued
    service of the Participant. In the event that the Committee
    conditions the grant or vesting of an Award of Restricted Stock
    upon the attainment of Performance Goals or the attainment of
    Performance Goals and the continued service of the Participant,
    the Committee may, prior to or at the time of grant, designate
    an Award of Restricted Stock as a Qualified Performance-Based
    Award. The conditions for grant or vesting and the other
    provisions of Restricted Stock Awards (including, without
    limitation, any applicable Performance Goals) need not be the
    same with respect to each Participant.

    

    A-10

 

    (c) Restricted
    Shares Non-Transferrable.  Subject
    to the provisions of the Plan and the applicable Award
    Agreement, during the Restriction Period, the Participant shall
    not be permitted to sell, assign, transfer, pledge or otherwise
    encumber Shares of Restricted Stock.

 

    (d) Rights of a Shareholder.  Except as
    otherwise provided in this Section 9 or in the applicable
    Award Agreement, the Participant shall have, with respect to the
    Shares of Restricted Stock, all of the rights of a Shareholder
    of the Company holding the class or series of Shares that is the
    subject of the Restricted Stock, including, if applicable, the
    right to vote the Shares.

 

    (e) Dividends.  Unless otherwise provided
    in the applicable Award Agreement, cash dividends with respect
    to the Restricted Stock will be currently paid to the
    Participant and, subject to Section 16(e) of the Plan,
    dividends payable in Shares shall be paid in the form of
    Restricted Stock of the same class as the Shares with which such
    dividend was paid, held subject to the vesting of the underlying
    Restricted Stock; provided, however, that no dividends
    shall be paid with respect to Restricted Stock that is
    designated as a Qualified Performance-Based Award unless and
    until the Committee has certified that the applicable
    Performance Goals for such award have been met. If any Shares of
    Restricted Stock are forfeited, the Participant shall have no
    right to future cash dividends with respect to such Restricted
    Stock, withheld stock dividends or earnings with respect to such
    Shares of Restricted Stock.

 

    (f) Delivery of Shares.  If and when any
    applicable Performance Goals are satisfied
    and/or the
    Restriction Period expires without a prior forfeiture of the
    Shares of Restricted Stock, unrestricted Shares shall be
    delivered to the Participant as soon as administratively
    practicable.

 

    (g) Termination of Service.  Except as
    otherwise provided in the applicable Award Agreement, a
    Participant’s Shares of Restricted Stock shall be forfeited
    upon his or her Termination of Service.

 

		
	
    10.  
	
    Restricted
    Stock Units

 

    (a) Nature of Awards.  Restricted Stock
    Units represent a contractual obligation by the Company to
    deliver a number of Shares, an amount in cash or a combination
    of Shares and cash equal to the specified number of Shares
    subject to the Award, or the Fair Market Value thereof, in
    accordance with the terms and conditions set forth in the Plan
    and any applicable Award Agreement.

 

    (b) Vesting.  The Committee shall, prior
    to or at the time of grant, condition the grant or vesting of an
    Award of Restricted Stock Units upon (A) the continued
    service of the Participant, (B) the attainment of
    Performance Goals or (C) the attainment of Performance
    Goals and the continued service of the Participant. In the event
    that the Committee conditions the grant or vesting of Restricted
    Stock Units upon the attainment of Performance Goals or the
    attainment of Performance Goals and the continued service of the
    Participant, the Committee may, prior to or at the time of
    grant, designate the Restricted Stock Units as a Qualified
    Performance-Based Award. The conditions for grant or vesting and
    the other provisions of Restricted Stock Units (including,
    without limitation, any applicable Performance Goals) need not
    be the same with respect to each recipient. An Award of
    Restricted Stock Units shall be settled as and when the
    Restricted Stock Units vest or at a later time specified in the
    Award Agreement or in accordance with an election of the
    Participant, if the Committee so permits, that meets the
    requirements of Section 409A of the Code.

 

    (c) Dividend Equivalents.  The Committee
    may, in its discretion, provide for current or deferred payments
    of cash, Shares or other property corresponding to the dividends
    payable on the Shares (subject to Section 16(e) below), as
    set forth in an applicable Award Agreement; provided,
    however, that no such dividend equivalents shall be paid
    with respect to Restricted Stock Units that are designated as a
    Qualified Performance-Based Awards unless and until the
    Committee has certified that the applicable Performance Goals
    for such award have been met.

 

    (d) Termination of Service.  Except as
    provided in the applicable Award Agreement, a Participant’s
    Restricted Stock Units shall be forfeited upon his or her
    Termination of Service.

    

    A-11

 

    (e) Payment.  Shares, cash or a
    combination of Shares and cash, as applicable, payable in
    settlement of Restricted Stock Units shall be delivered to the
    Participant as soon as administratively practicable, but no
    later than 60 days, after the date on which payment is due
    under the terms of an Award Agreement.

 

    (f) No Shareholder Rights.  Except as
    otherwise provided in an applicable Award Agreement, a
    Participant shall have no rights as a Shareholder with respect
    to Shares subject to Restricted Stock Units until such Shares
    are issued to the Participant pursuant to the terms of the Award
    Agreement.

 

		
	
    11.  
	
    Other
    Stock-Based Awards

 

    Other Stock-Based Awards may be granted under the Plan;
    provided, that any Other Stock-Based Awards that are
    Awards of Shares that are unrestricted shall only be granted in
    lieu of other compensation due and payable to the Participant.

 

		
	
    12.  
	
    Change in
    Control Provisions

 

    (a) Impact of Event.  Unless otherwise
    provided in the applicable Award Agreement, unless Awards are
    not assumed, converted or replaced in connection with a
    transaction that constitutes a Change in Control (in which case
    such Awards shall vest immediately prior to the Change in
    Control), notwithstanding any other provision of the Plan to the
    contrary, upon a Participant’s Termination of Service
    during the twenty-four (24) month period following a Change
    in Control, (x) by the Company other than for Cause or
    Disability or (y) by the Participant for Good Reason:

 

    (i) any Options and Stock Appreciation Rights outstanding
    which are not then exercisable and vested shall become fully
    exercisable and vested;

 

    (ii) the restrictions and deferral limitations applicable
    to any Shares of Restricted Stock shall lapse and such Shares of
    Restricted Stock shall become free of all restrictions and
    become fully vested and transferable;

 

    (iii) all Restricted Stock Units shall be considered to be
    earned and payable in full, and any deferral or other
    restriction shall lapse, and any Restriction Period shall
    terminate, and such Restricted Stock Units shall be settled in
    cash or Shares (consistent with the terms of the Award Agreement
    after taking into account the effect of the Change in Control
    transaction on the Shares) as promptly as is practicable;

 

    (iv) subject to Section 14, the Committee may also
    make additional adjustments
    and/or
    settlements of outstanding Awards as it deems appropriate and
    consistent with the Plan’s purposes; and

 

    (v) each outstanding Award shall be deemed to satisfy any
    applicable Performance Goals as set forth in the applicable
    Award Agreement.

 

    (b) Special Change in Control Post-Termination Exercise
    Rights.  Unless otherwise provided in the
    applicable Award Agreement, notwithstanding any other provision
    of the Plan to the contrary, upon the Termination of Service of
    a Participant without Cause or due to Disability or for Good
    Reason during the twenty-four (24) month period following a
    Change in Control, any Option or Stock Appreciation Right held
    by the Participant as of the date of the Change in Control that
    remains outstanding as of the date of such Termination of
    Service may thereafter be exercised until the later of
    (i) the last date on which such Option or Stock
    Appreciation Right would be exercisable in the absence of this
    Section 12(b) (taking into account the applicable terms of
    any Individual Agreement or Award Agreement) and (ii) the
    earlier of (A) the third anniversary of such Change in
    Control and (B) expiration of the Term of such Option or
    Stock Appreciation Right.

 

    (c) Notwithstanding the foregoing, if any Award is
    considered a “nonqualified deferred compensation plan”
    within the meaning of Section 409A of the Code, this
    Section 12 shall apply to such Award only to the extent
    that its application would not result in the imposition of any
    tax or interest or the inclusion of any amount in income under
    Section 409A of the Code.

    

    A-12

 

    (d) In the event of a Change in Control, the Committee may
    in its discretion and upon at least ten (10) days’
    advance notice to the affected Participants, cancel any
    outstanding Awards and pay to the holders thereof, in cash or
    Shares, or any combination thereof, the value of such Awards
    based upon the price per Share received or to be received by
    other Shareholders of the Company as a result of the Change in
    Control.

 

		
	
    13.  
	
    Qualified
    Performance-Based Awards; Section 16(b);
    Section 409A

 

    (a) The provisions of the Plan are intended to ensure that
    all Options and Stock Appreciation Rights granted hereunder to
    any Participant who is or may be a “covered employee”
    (within the meaning of Section 162(m)(3) of the Code) in
    the tax year in which such Option or Stock Appreciation Right is
    expected to be deductible to the Company qualify for the
    Section 162(m) Exemption, and all such Awards shall
    therefore be considered Qualified Performance-Based Awards, and
    the Plan shall be interpreted and operated consistent with that
    intention. When granting any Award other than an Option or Stock
    Appreciation Right, the Committee may designate such Award as a
    Qualified Performance-Based Award, based upon a determination
    that (i) the recipient is or may be a “covered
    employee” (within the meaning of Section 162(m)(3) of
    the Code) with respect to such Award and (ii) the Committee
    wishes such Award to qualify for the Section 162(m)
    Exemption, and the terms of any such Award (and of the grant
    thereof) shall be consistent with such designation (including,
    without limitation, that all such Awards be granted by a
    committee composed solely of “outside directors”
    (within the meaning of Section 162(m) of the Code)).

 

    (b) The Committee shall determine whether the applicable
    Performance Goals for a Qualified Performance-Based Award have
    been met with respect to a Participant for a Performance Period
    and, if they have been met, shall so certify and ascertain the
    amount of the applicable Qualified Performance-Based Award. No
    Qualified Performance-Based Awards will be paid or granted for a
    Performance Period until such certification is made by the
    Committee. The amount of a Qualified Performance-Based Award
    actually paid or granted to a Participant may be less than the
    amount determined by the applicable Performance Goal formula, at
    the discretion of the Committee, subject to the terms and
    conditions of the applicable Award Agreement, and shall be paid
    to the Participant at the time set forth in the applicable Award
    Agreement.

 

    (c) Performance Goals may be applied on a per share or
    absolute basis and relative to one or more peer group companies
    or indices, or any combination thereof, and may be measured
    pursuant to U.S. GAAP, non-GAAP or other objective
    standards in a manner consistent with the Company’s
    established accounting policies, all as the Committee shall
    determine at the time the Performance Goals for a Performance
    Period are established. In addition, to the extent consistent
    with the requirements of the Section 162(m) Exemption, the
    Committee may provide at the time Performance Goals are
    established for Qualified Performance-Based Awards that the
    manner in which such Performance Goals are to be calculated or
    measured may take into account, or ignore, capital costs,
    interest, taxes, depreciation and amortization and other factors
    over which the Participant has no (or limited) control
    including, but not limited to, restructurings, discontinued
    operations, impairments, changes in foreign currency exchange
    rates, extraordinary items, certain identified expenses
    (including cash bonus expenses, incentive expenses and
    acquisition-related transaction and integration expenses), the
    consolidation of investment products, other unusual
    non-recurring items, industry margins, general economic
    conditions, interest rate movements and the cumulative effects
    of tax or accounting changes.

 

    (d) No delegate of the Committee shall exercise authority
    granted to the Committee to the extent that the exercise of such
    authority would cause an Award designated as a Qualified
    Performance-Based Award not to qualify for, or to cease to
    qualify for, the Section 162(m) Exemption.

 

    (e) The provisions of the Plan are intended to ensure that
    transactions under the Plan are not subject to (or are exempt
    from) the short-swing recovery rules of Section 16(b) of
    the Exchange Act and shall be construed and interpreted in a
    manner so as to comply with such rules.

 

    (f) Notwithstanding any other provision of the Plan to the
    contrary, if for any reason the appointed Committee does not
    meet the requirements of
    Rule 16b-3
    of the Exchange Act or Section 162(m) of the Code, such
    noncompliance with the requirements of
    Rule 16b-3
    of the Exchange Act and Section 162(m) of the Code shall
    not affect the validity of Awards, grants, interpretations or
    other actions of the Committee.

    

    A-13

 

    (g) It is the intention of the Company that any Award that
    constitutes a “nonqualified deferred compensation
    plan” within the meaning of Section 409A of the Code
    shall comply in all respects with the requirements of
    Section 409A of the Code to avoid the imposition of any tax
    or interest or the inclusion of any amount in income thereunder,
    and the terms of each such Award shall be interpreted,
    administered and deemed amended, if applicable, in a manner
    consistent with this intention. Notwithstanding the foregoing,
    neither the Company nor any of its Affiliates nor any of its or
    their directors, officers, employees, agents or other service
    providers will be liable for any taxes, penalties or interest
    imposed on any Participant, Beneficiary or other person with
    respect to any amounts paid or payable (whether in cash, Shares
    or other property) under any Award, including any taxes,
    penalties or interest imposed under or as a result of
    Section 409A of the Code. Notwithstanding any other
    provision of the Plan to the contrary, with respect to any Award
    that constitutes a “nonqualified deferred compensation
    plan” within the meaning of Section 409A of the Code,
    any payments (whether in cash, Shares or other property) to be
    made with respect to the Award upon the Participant’s
    Termination of Service that would otherwise be paid within six
    months after the Participant’s Termination of Service shall
    be accumulated (without interest, to the extent applicable) and
    paid on the first day of the seventh month following the
    Participant’s Termination of Service if the Participant is
    a “specified employee” within the meaning of
    Section 409A of the Code (as determined in accordance with
    the uniform policy adopted by the Committee with respect to all
    of the arrangements subject to Section 409A of the Code
    maintained by the Company and its Affiliates).

 

		
	
    14.  
	
    Amendment
    and Discontinuance

 

    (a) Amendment and Discontinuance of the
    Plan.  The Board or the Committee may amend, alter
    or discontinue the Plan, but no amendment, alteration or
    discontinuation shall be made which would materially impair the
    rights of a Participant with respect to a previously granted
    Award without such Participant’s consent, except such an
    amendment made to comply with applicable law or Applicable
    Exchange rule or to prevent adverse tax or accounting
    consequences to the Company or Participants. Notwithstanding the
    foregoing, no such amendment shall be made without the approval
    of the Company’s Shareholders (i) to the extent such
    approval is required (A) by applicable law or Applicable
    Exchange rule as in effect as of the date hereof or
    (B) under applicable law or Applicable Exchange rule as may
    be required after the date hereof, (ii) to the extent such
    amendment would materially increase the benefits accruing to
    Participants under the Plan, (iii) to the extent such
    amendment would materially increase the number of securities
    which may be issued under the Plan or to a Participant or
    (iv) to the extent such amendment would materially expand
    the eligibility for participation in the Plan.

 

    (b) Amendment of Awards.  Subject to
    Section 8(d), the Committee may unilaterally amend the
    terms of any Award theretofore granted, but no such amendment
    shall materially impair the rights of any Participant with
    respect to an Award without the Participant’s consent,
    except such an amendment made to cause the Plan or Award to
    comply with applicable law, Applicable Exchange rule or to
    prevent adverse tax or accounting consequences for the
    Participant or the Company or any of its Affiliates.

 

		
	
    15.  
	
    Unfunded
    Status of Plan

 

    It is currently intended that the Plan constitute an
    “unfunded” plan. The Committee may authorize the
    creation of trusts or other arrangements to meet the obligations
    created under the Plan to deliver Shares or make payments;
    provided, however, that unless the Committee
    otherwise determines, the existence of such trusts or other
    arrangements is consistent with the “unfunded” status
    of the Plan.

 

		
	
    16.  
	
    General
    Provisions

 

    (a) Conditions for Issuance.  The
    Committee may require each person purchasing or receiving Shares
    pursuant to an Award to represent to and agree with the Company
    in writing that such person is acquiring the Shares without a
    view to the distribution thereof. The certificates or book entry
    for such Shares may include any legend or appropriate notation
    that the Committee deems appropriate to reflect any restrictions
    on transfer, and the Committee may take such other steps as it
    deems necessary or desirable to restrict the transfer of Shares
    issuable under the Plan to comply with applicable law or
    Applicable Exchange rules. Notwithstanding

    

    A-14

 

    any other provision of the Plan or agreements made pursuant
    thereto, the Company shall not be required to issue or deliver
    Shares under the Plan unless such issuance or delivery complies
    with all applicable laws, rules and regulations, including the
    requirements of any Applicable Exchange or similar entity and
    the Company has obtained any consent, approval or permit from
    any federal, state or foreign governmental authority that the
    Committee determines to be necessary or advisable.

 

    (b) Additional Compensation
    Arrangements.  Nothing contained in the Plan shall
    prevent the Company or any Subsidiary or Affiliate from adopting
    other or additional compensation arrangements for its employees.

 

    (c) No Contract of Employment.  Neither
    the Plan nor any Award Agreement shall constitute a contract of
    employment, and neither the adoption of the Plan nor the
    granting of any Award shall confer upon any employee any right
    to continued employment. Neither the Plan nor any Award
    Agreement shall interfere in any way with the right of the
    Company or any Subsidiary or Affiliate to terminate the
    employment of any employee at any time.

 

    (d) Required Taxes.  No later than the
    date as of which an amount first becomes includible in the gross
    income of a Participant for federal, state, local or foreign
    income or employment or other tax purposes with respect to any
    Award under the Plan, such Participant shall pay to the Company,
    or make arrangements satisfactory to the Company regarding the
    payment of, any federal, state, local or foreign taxes of any
    kind required by law to be withheld with respect to such amount.
    Unless otherwise determined by the Company, withholding
    obligations may be settled with Shares, including Shares that
    are part of the Award that gives rise to the withholding
    requirement, having a Fair Market Value on the date of
    withholding equal to the minimum amount (and not any greater
    amount) required to be withheld for tax purposes, all in
    accordance with such procedures as the Committee establishes.
    The obligations of the Company under the Plan shall be
    conditional on such payment or arrangements, and the Company and
    its Affiliates shall, to the extent permitted by law, have the
    right to deduct any such taxes from any payment otherwise due to
    such Participant. The Committee may establish such procedures as
    it deems appropriate, including making irrevocable elections,
    for the settlement of withholding obligations with Shares.

 

    (e) Limitation on Dividend Reinvestment and Dividend
    Equivalents.  Reinvestment of dividends in
    additional Restricted Stock at the time of any dividend payment,
    and the payment of Shares with respect to dividends to
    Participants holding Awards of Restricted Stock Units, shall
    only be permissible if sufficient Shares are available under
    Section 6 for such reinvestment or payment (taking into
    account then outstanding Awards). In the event that sufficient
    Shares are not available for such reinvestment or payment, such
    reinvestment or payment shall be made in the form of a grant of
    Restricted Stock Units equal in number to the Shares that would
    have been obtained by such payment or reinvestment, the terms of
    which Restricted Stock Units shall provide for settlement in
    cash and for dividend equivalent reinvestment in further
    Restricted Stock Units on the terms contemplated by this
    Section 16(e).

 

    (f) Rights of a Beneficiary.  Any amounts
    payable and any rights exercisable under an Award after a
    Participant’s death shall be paid to and exercised by the
    Participant’s Beneficiary, except to the extent prohibited
    by applicable law, Applicable Exchange rule or the terms of an
    applicable Award Agreement.

 

    (g) Subsidiary or Affiliate Employees.  In
    the case of a grant of an Award to an employee of any Subsidiary
    or Affiliate, the Company may, if the Committee so directs,
    issue or transfer the Shares, if any, covered by the Award to
    the Subsidiary or Affiliate, for such lawful consideration as
    the Committee may specify, upon the condition or understanding
    that the Subsidiary or Affiliate will transfer the Shares to the
    employee in accordance with the terms of the Award specified by
    the Committee pursuant to the provisions of the Plan. All Shares
    underlying Awards that are forfeited or canceled shall revert to
    the Company.

 

    (h) Governing Law and Interpretation.  The
    Plan and all Awards made and actions taken thereunder shall be
    governed by and construed in accordance with the laws of the
    State of Georgia, without reference to principles of conflict of
    laws. The captions of the Plan are not part of the provisions
    hereof and shall have no force or effect.

 

    (i) Non-Transferability.  Awards under the
    Plan cannot be sold, assigned, transferred, pledged or otherwise
    encumbered, except as provided in Section 6(e).

    

    A-15

 

    (j) Foreign Employees and Foreign Law
    Considerations.  The Committee may grant Awards to
    Eligible Individuals who are foreign nationals, who are located
    outside the United States or who are not compensated from a
    payroll maintained in the United States, or who are otherwise
    subject to (or could cause the Company to be subject to) tax,
    legal or regulatory provisions of countries or jurisdictions
    outside the United States, on such terms and conditions
    different from those specified in the Plan as may, in the
    judgment of the Committee, be necessary or desirable to foster
    and promote achievement of the purposes of the Plan.
    Notwithstanding any other provision of the Plan or an Award
    Agreement, Awards that are regulated by the laws of a
    jurisdiction outside of the United States shall be subject to
    the terms and conditions of Appendix A, as applicable, or
    such other terms and conditions as the Committee shall establish
    and set forth in an applicable Award Agreement, which may negate
    the provisions of Appendix A if so specifically provided
    therein.

 

    (k) Use of English Language.  The Plan,
    each Award Agreement, and all other documents, notices and legal
    proceedings entered into, given or instituted pursuant to an
    Award shall be written in English, unless otherwise determined
    by the Committee. If a Participant receives an Award Agreement,
    a copy of the Plan or any other documents related to an Award
    translated into a language other than English, and if the
    meaning of the translated version is different from the English
    version, the English version shall control.

 

    (l) Recovery of Amounts Paid.  All Awards
    granted under the Plan shall be subject to any policy
    established by the Committee under which the Company may recover
    from current and former Participants any amounts paid or Shares
    issued under an Award and any proceeds therefrom under such
    circumstances as the Committee determines appropriate. The
    Committee may apply such policy to Awards granted before the
    policy is adopted to the extent required by applicable law or
    Applicable Exchange rule, as determined by the Committee in its
    sole discretion.

 

    (m) Notices.  A notice or other
    communication to the Committee shall be valid only if given in
    the form and to the location specified by the Committee.

    

    A-16

 

    Appendix A

 

    Notwithstanding any other provision of the Plan or an Award
    Agreement, Awards that are regulated by the laws of a
    jurisdiction outside of the United States shall be subject to
    the terms and conditions of this Appendix A, as applicable,
    and any other terms and conditions established by the Committee
    and set forth in a Participant’s Award Agreement, including
    any addendum thereto, which may negate the provisions of
    Appendix A if so specifically provided therein.

 

    The Committee reserves the right to impose other requirements on
    any Award, any Shares acquired pursuant to an Award and any
    Participant’s participation in the Plan to the extent the
    Committee determines, in its sole discretion, that such other
    requirements are necessary or advisable in order to comply with
    local law or to facilitate the administration of the Plan. Such
    requirements may include (but are not limited to) requiring a
    Participant to sign any agreements or undertakings that may be
    necessary to accomplish the foregoing.

    

    A-17

 

    European
    Union

 

    1.  Compliance
    with Age Discrimination Rules.

 

    If a Participant is a local national of and employed in a
    country that is a member of the European Union, the grant of any
    Award and the terms and conditions governing each Award are
    intended to comply with the age discrimination provisions of the
    EU Equal Treatment Framework Directive, as implemented into
    local law (the “Age Discrimination Rules”). To
    the extent a court or tribunal of competent jurisdiction
    determines that any provision of an Award is invalid or
    unenforceable, in whole or in part, under the
    Age Discrimination Rules, the Committee shall have the
    power and authority to revise or strike such provision to the
    minimum extent necessary to make it valid and enforceable to the
    full extent permitted under local law.

    

    A-18

 

    Australia

 

		
	
    1.  
	
    Application

 

    The provisions of this Australia section of Appendix A
    shall apply to Awards granted to Participants who are Australian
    residents for the purposes of Australian income tax laws at the
    time of grant.

 

		
	
    2.  
	
    Operative
    Provisions

 

    Notwithstanding anything in the Plan and in the Award Agreement
    to the contrary:

 

    (a) the Committee shall have no power to accelerate vesting
    of the Restricted Stock Units granted to Participants in the
    first 12 months of the relevant Award;

 

    (b) no Restricted Stock Units shall vest automatically upon
    a Participant’s Termination of Service due to
    retirement; and

 

    (c) a Termination of Service will be deemed to have
    occurred where a recipient ceases employment with their
    employer, a holding company of their employer, a subsidiary of
    their employer or a subsidiary of a holding company for the
    purposes of Subdivision 83A of the Income Tax Assessment Act
    1997 (Cth).

    

    A-19Exhibit 10.1

Exhibit 10.1

May 26, 2011

Steven Kalin

39 David Hill Road

Summit, NJ 07901

Dear Steve:

This letter confirms our agreement (“Agreement”) regarding your employment at Westwood One, Inc.
and/or its Related Entities (“Westwood” or the “Company”). Capitalized terms used but not defined
herein shall have the meaning set forth in your employment agreement with Westwood One, Inc., dated
as of May 8, 2008 (“Employment Agreement”).

1. This confirms the termination of your employment with Westwood for Good Reason effective May 27,
2011 (the “Termination Date”), the termination of your Employment Agreement effective on the
Termination Date and your resignation from all offices and directorships of Westwood. In
connection with the foregoing and contingent upon your execution of this Agreement, Westwood shall
provide you with the following:

	 	(a)	 	subject to Section 17 of your Employment Agreement,
payment of an amount equal to your current annual base salary ($425,000)
payable in equal installments over a period beginning on May 28, 2011 and
continuing through May 27, 2012 on a schedule that mirrors the Company’s
normal payroll practices;

	 	(b)	 	subject to Section 17 of your Employment Agreement,
payment of a bonus equal to $225,000 on July 26, 2012; and

	 	(b)	 	one-third (1/3) of the stock options granted to you on
February 12, 2010 shall immediately vest as of the Termination Date and
shall be exercisable through the period that is three (3) months from the
Termination Date.

Any payments provided to you herein shall be reduced by appropriate deductions for federal, state,
local taxes and all other appropriate deductions and shall be paid in accordance with Westwood’s
normal payroll policies and policies and practices regarding the payment of commissions. You
acknowledge that you have been paid all compensation, in cash or otherwise, due to you from
Westwood, and except as set forth above, you shall not receive any other compensation in cash,
salary, commission, draw or bonus, or otherwise. Your right to receive, and the Company’s
obligation to pay, the payments contained in this Section 1 shall not arise until the Effective
Date of this Agreement and shall further depend upon your compliance with this Agreement including
your returning of the Company’s property as described in Section 9 herein.

2. For good and valuable consideration received in connection with your termination of employment
with the Company, you do hereby release and forever discharge and covenant not to sue the Company,
the Related Entities and their respective subsidiaries and affiliates and their respective
directors, members, partners, officers, managers, employees, agents, stockholders, successors and
assigns (both individually and in their official capacities) and its and their predecessors or
successors (collectively, the “Releasees”), from any and all actions, causes of action, covenants,
contracts, claims, demands, suits, and liabilities whatsoever, which you ever had or now have or
which you or any of your heirs, executors, administrators and assigns hereafter can, shall or may
have by reason of or relating to your employment with the Company as of the effective date of this
Agreement.

 

 

 

Steven Kalin

May 26, 2011

Page 2

By signing this Agreement, you are providing a complete waiver of all claims against the
Releasees that may have arisen, whether known or unknown, up until the effective date of this
Agreement. This includes, but is not limited to, claims based on Title VII of the Civil Rights Act
of 1964, the Civil Rights Act of 1866, the Age Discrimination in Employment Act of 1967 (including
the Older Workers Benefit Protection Act) (the “ADEA”), the Americans With Disabilities
Act, the Fair Labor Standards Act, the Equal Pay Act, the Family and Medical Leave Act, the
Sarbanes-Oxley Act of 2002, the New York State Human Rights Law, the New York City Human Rights
Law, the Employee Retirement Income Security Act of 1974 (“ERISA”) (except as to claims
pertaining to vested benefits under employee benefit plans covered by ERISA and maintained by the
Releasees), and all applicable amendments to the foregoing acts and laws, or any common law, public
policy, contract (whether oral or written, express or implied) or tort law, and any other local,
state or Federal law, regulation or ordinance having any bearing whatsoever on the terms and
conditions of your employment. This Agreement shall not, however, constitute a waiver of: (a)
your rights under any employee benefit plan currently maintained by the Company; (b) your rights
under the Employment Agreement intended to survive your termination of employment; (c) your rights
under the Company’s certificate of incorporation, By-Laws, insurance policies or other written
agreements with respect to indemnification; or (d) any claims to enforce rights arising under the
ADEA or other civil rights statute after the effective date of this Agreement.

3. For good and valuable consideration provided herein, you hereby (a) reaffirm your obligations
under Section 7 (No Conflict of Interest; Proper Conduct), Section 8 (Confidential Information and
the Results of Services), Section 9 (Work for Hire) and Section 10 (Communications Act of 1934) of
the Employment Agreement, including that you specifically acknowledge and agree that the time
period during which you will be paid severance by the Company after the Employment Period shall
continue through and including May 27, 2012, (b) the cessation of your employment hereunder shall
be considered a termination of employment for Good Reason under Section 6(e) of your Employment
Agreement, (c) acknowledge that such obligations shall remain in full force and effect, and (d)
understand that such provisions shall be fully enforceable in accordance with the terms and
conditions of the Employment Agreement following your termination of employment with the Company.
By your signature hereto you acknowledge that you have reviewed such paragraphs in connection with
your review of this Agreement and understand the restrictions contained therein. You agree that
the limitations set forth therein on your rights are reasonable and necessary for the protection of
Westwood. In this regard, you specifically agree that the limitations as to period of time and
geographic area, as well as all other restrictions on your activities specified therein, are
reasonable and necessary for the protection of Westwood. The parties hereto agree that the remedy
at law for any breach of your obligations under those Sections of the Employment Agreement would be
inadequate and that Westwood shall be entitled to injunctive or other equitable relief (without
bond or undertaking) in any proceeding which may be brought to enforce any provisions of those
Sections.

4. You further agree, promise and covenant that, to the maximum extent permitted by law neither,
you, nor any person, organization, or other entity acting on your behalf has or will file, charge,
claim, sue, or cause or permit to be filed, charged or claimed, any action for damages or other
relief (including injunctive, declaratory, monetary or other relief) against the Releasees
involving any matter occurring in the past up to the date of this Agreement, or involving or based
upon any claims, demands, causes of action, obligations, damages or liabilities which are the
subject of this Agreement. This Agreement shall not affect your rights under the Older Workers
Benefit Protection Act to have a judicial determination of the validity of this Agreement and does
not purport to limit any right you may have to file a charge under the ADEA
or other civil rights statute or to participate in an investigation or proceeding conducted by the
Equal Employment Opportunity Commission or other investigative agency. This Agreement does,
however, waive and release any right to recover damages under the ADEA or other civil rights
statute.

 

 

 

Steven Kalin

May 26, 2011

Page 3

5. You have been given 21 days to review this Agreement and have been given the opportunity to
consult with legal counsel, and you are signing this Agreement knowingly, voluntarily and with full
understanding of its terms and effects, and your voluntarily accept the consideration contained
herein for the purpose of making full and final settlement of all claims referred to above. If you
have signed this Agreement prior to the expiration of the 21 day period, you have done so
voluntarily. You also understand that you have seven (7) days after executing to revoke this
Agreement, and that this Agreement will not become effective if you exercise your right to revoke
your signature within seven (7) days of execution. The terms of this Agreement shall not become
effective or enforceable until seven (7) days following the date of its execution by both parties
(the “Effective Date”). You understand and acknowledge that your right to receive the
consideration hereunder, however, is conditioned upon your execution and non-revocation of this
Agreement.

6. Upon the receipt of reasonable notice from the Company (including the Company’s outside
counsel), you agree to respond and provide information with regard to matters in which you had
knowledge as a result of your employment with the Company, and provide reasonable assistance to the
Company and its Related Entities and their respective representatives in defense of any claims that
may be made against the Company or any of its Related Entities, and assist the Company and its
Related Entities in the prosecution of any claims that may be made by the Company or any of its
Related Entities, to the extent that such claims may relate to the period of your employment with
the Company. You further agree to promptly inform the Company if you become aware of any lawsuits
involving such claims that may be filed or threatened against the Company or any of its Related
Entities. You also agree to promptly inform the Company (to the extent you are legally permitted
to do so) if you are asked to assist in any investigation of the Company or any of its Related
Entities or its or their actions, regardless of whether a lawsuit or other proceeding has then been
filed with respect to such investigation, and you shall not do so unless legally required. The
Company shall reimburse you for all of your reasonable out-of-pocket expenses incurred in
connection with your cooperation and assistance under this Section 6.

7. You acknowledge that you have not relied on any representations or statements not set forth in
this Agreement.

8. In consideration of the consideration described in Section 1 above and for other good and
valuable consideration, you also hereby specifically waive any and all rights or claims that you
have, or may hereafter have, to reinstatement or reemployment with Westwood. Any reemployment
shall be at the sole and absolute discretion of Westwood.

9. You represent and warrant that to the best of your knowledge you have returned to Westwood all
Westwood property and tangible confidential information in your possession and requested by
Westwood One (“Property”) including, but not limited to, keys, computers, pagers, files,
agreements, documents, telephones, fax machines and credentials. To the extent that Westwood
believes and/or discovers that you have not returned any such Property to Westwood, Westwood shall
notify you of such in writing and provide you with a reasonable period of time to return such
Property to Westwood.

 

 

 

Steven Kalin

May 26, 2011

Page 4

10. By signing this Release, you understand and agree that neither you nor anyone acting on your
behalf will publish, publicize, disseminate, communicate or cause to be published, publicized,
disseminated or communicated, to any entity or person whatsoever, directly or indirectly,
non-public or confidential information concerning the Company or your employment with the Company,
provided, however, that you may describe and/or communicate your duties, responsibilities and job
title(s). You agree not to make any statement or take any actions which in any way disparage or
which could harm the reputation and/or goodwill of Westwood, or in any way, directly or indirectly,
cause or encourage the making of such statements or the taking of such actions by anyone else.
Nothing in this paragraph shall prohibit you from responding truthfully to a lawfully issued
subpoena, court order, or other lawful request by any regulatory agency or government authority.

11. The terms of this Agreement, including all facts, circumstances, statements and documents
relating thereto, shall not be admissible or submitted as evidence in any litigation in any forum
except as required by law for any purpose other than to secure enforcement of the terms and
conditions of this Agreement.

12. This Agreement will be governed by and construed in accordance with the laws of the State of
New York, without regard to the choice of law principles thereof. If any provision in this
Agreement is held invalid or unenforceable for any reason, the remaining provisions shall be
construed as if the invalid or unenforceable provision had not been included. The parties agree
that any dispute, controversy or claim arising out of this Agreement, except for any injunctive or
equitable relief, shall be finally settled by arbitration in New York, New York in accordance with
the JAMS Employment Arbitration Rules and Procedures in effect on the date of this Agreement and
judgment upon the award may be entered in any court having jurisdiction thereof.

13. Except as otherwise set forth herein and covenants you agreed that survive the termination of
your employment, this Agreement sets forth the terms and conditions of your separation of
employment with Westwood, and supersedes any and all prior oral and written agreements between you
and Westwood, including your Employment Agreement. This Agreement may not be altered, amended or
modified except by a further writing signed by you and Westwood.

14. This Agreement may be executed in counterparts, including via facsimile or electronic
mail/scanned copy, each of which shall constitute an original, but all of which together shall
constitute one agreement.

15. The failure of any party to insist upon strict adherence to any term of this Agreement on any
occasion shall not be considered a waiver thereof or deprive that party of the right thereafter to
insist upon strict adherence to that term or any other term of the Agreement.

 

 

 

Steven Kalin

May 26, 2011

Page 5

16. If any of the provisions, terms or clauses of this Agreement are declared illegal,
unenforceable or ineffective in a legal forum, those provisions, terms and clauses shall be deemed
severable, such that all other provisions, terms and clauses of this Agreement shall remain valid
and binding upon the parties.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	WESTWOOD ONE, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	Date: May 27, 2011	 	By:	 	/s/ David Hillman	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	David Hillman	 	 
	 

	 	 	 	Title:
	 	CAO & GC	 	 

By signing this Agreement below, you agree to and accept the provisions contained herein. You
certify and acknowledge that you (i) have been advised to consult with an attorney about this
Agreement prior to executing same, (ii) have read the Agreement, (iii) understand its contents,
(iv) are voluntarily entering into this Agreement free from coercion or duress and (v) agree to be
bound by its terms.

	 	 	 	 	 
	Date: May 27, 2011

	 	/s/ Steven Kalin
 

Steven Kalin

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