exv10w7






Exhibit 10.7




AMENDED AND RESTATED




ARBOR REALTY TRUST, INC.




2003 OMNIBUS STOCK INCENTIVE PLAN




Approved by the Company’s Stockholders on June 18, 2009




Section 1. General Purpose of Plan; Definitions.




          The name of this plan is the Arbor Realty Trust, Inc. 2003 Omnibus Stock Incentive Plan, as
amended and restated (the “Plan”).




          The purpose of the Plan is to enable the Company to attract and retain highly qualified
personnel who will contribute to the Company’s success and to provide incentives to Participants
(defined below) that are linked directly to stockholder value and will therefore inure to the
benefit of all stockholders of the Company.




          For purposes of the Plan, the following terms shall be defined as set forth below:




          (a) “Administrator” means the Board, or if and to the extent the Board does not
administer the Plan, the Committee in accordance with Section 2 below.




          (b) “Award” means any award under the Plan.




          (c) “Award Agreement” means, with respect to each Award, the signed written agreement
between the Company and the Participant setting forth the terms and conditions of the Award.




          (d) “Board” means the Board of Directors of the Company.




          (e) “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor thereto.




          (f) “Committee” means any committee the Board may appoint to administer the Plan. If
at any time or to any extent the Board shall not administer the Plan, then the functions of the
Board specified in the Plan shall be exercised by the Committee.




          (g) “Common Stock” means the common stock, par value $.01 per share, of the Company.




          (h) “Company” means Arbor Realty Trust, Inc., a Maryland corporation (or any successor
corporation).




 









 








          (i) “Disability” means the inability of a Participant to perform substantially his or
her duties and responsibilities to the Company or to any Parent or Subsidiary by reason of a
physical or mental disability or infirmity (i) for a continuous period of six months, or (ii) at
such earlier time as the Participant submits medical evidence satisfactory to the Administrator
that the Participant has a physical or mental disability or infirmity that will likely prevent the
Participant from returning to the performance of the Participant’s work duties for six months or
longer. The date of such Disability shall be the last day of such six-month period or the day on
which the Participant submits such satisfactory medical evidence, as the case may be.




          (j) “Eligible Recipient” means an officer, director, employee, consultant (including
employees of the Manager who provide services to the Company) or advisor of the Company or of any
Parent or Subsidiary.




          (k) “Exercise Price” means the per share price, if any, at which a holder of an Option
may purchase the Shares issuable upon exercise of the Option.




          (l) “Fair Market Value” as of a particular date shall mean the fair market value of a
share of Common Stock as determined by the Administrator in its sole discretion; provided,
however, that (i) if the Common Stock is admitted to trading on a national securities
exchange, fair market value of a share of Common Stock on any date shall be the closing sale price
reported for such share on such exchange on such date or, if no sale was reported on such date, on
the last date preceding such date on which a sale was reported, (ii) if the Common Stock is
admitted to quotation on the National Association of Securities Dealers Automated Quotation
(“Nasdaq”) System or other comparable quotation system and has been designated as a National Market
System (“NMS”) security, fair market value of a share of Common Stock on any date shall be the
closing sale price reported for such share on such system on such date or, if no sale was reported
on such date, on the last date preceding such date on which a sale was reported, or (iii) if the
Common Stock is admitted to quotation on the Nasdaq System but has not been designated as an NMS
security, fair market value of a share of Common Stock on any date shall be the average of the
highest bid and lowest asked prices of such share on such system on such date or, if no bid and ask
prices were reported on such date, on the last date preceding such date on which both bid and ask
prices were reported.




          (m) “Incentive Stock Option” means any Option intended to be designated as an
“incentive stock option” within the meaning of Section 422 of the Code.




          (n) “Manager” means Arbor Commercial Mortgage, LLC, a New York limited liability
company.




          (o) “Nonqualified Stock Option” means any Option that is not an Incentive Stock
Option, including any Option that provides (as of the time such Option is granted) that it will not
be treated as an Incentive Stock Option.




          (p) “Option” means an option to purchase Shares granted pursuant to Section 6 below.




2









 








          (q) “Parent” means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations in the chain (other than the
Company) owns stock possessing 50% or more of the combined voting power of all classes of stock in
one of the other corporations in the chain.




          (r) “Participant” means any Eligible Recipient selected by the Administrator, pursuant
to the Administrator’s authority in Section 2 below, to receive grants of Options and/or awards of
Restricted Stock.




          (s) “Restricted Stock” means Shares subject to certain restrictions granted pursuant
to Section 6 below.




          (t) “Shares” means shares of Common Stock reserved for issuance under the Plan, as
adjusted pursuant to Sections 3 and 4, and any successor security.




          (u) “Subsidiary” means any corporation (other than the Company) in an unbroken chain
of corporations beginning with the Company, if each of the corporations (other than the last
corporation) in the unbroken chain owns stock possessing 50% or more of the total combined voting
power of all classes of stock in one of the other corporations in the chain.




Section 2. Administration.




          The Plan shall be administered by the Board or, at the Board’s sole discretion, by the
Committee, which shall be appointed by the Board, and which shall serve at the pleasure of the
Board. Pursuant to the terms of the Plan, the Administrator shall have the power and authority:




          (a) to select those Eligible Recipients who shall be Participants;




          (b) to determine whether and to what extent Options or awards of Restricted Stock are to be
granted hereunder to Participants;




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




          (d) to determine the terms and conditions, not inconsistent with the terms of the Plan, of
each Award granted hereunder; and




          (e) to determine the terms and conditions, not inconsistent with the terms of the Plan, which
shall govern all written instruments evidencing Options or awards of Restricted Stock granted
hereunder.




3









 








          The Administrator shall have the authority, in its sole discretion, to adopt, alter and repeal
such administrative rules, guidelines and practices governing the Plan as it shall from time to
time deem advisable; to interpret the terms and provisions of the Plan and any Award issued under
the Plan (and any Award Agreement relating thereto); and to otherwise supervise the administration
of the Plan.




          All decisions made by the Administrator pursuant to the provisions of the Plan shall be final,
conclusive and binding on all persons, including the Company and the Participants.




Section 3. Shares Subject to Plan.




          The total number of shares of Common Stock reserved and available for issuance under the Plan
shall be 2,385,000 shares. Such shares may consist, in whole or in part, of authorized and
unissued shares or treasury shares.




          To the extent that (i) an Option expires or is otherwise terminated without being exercised,
or (ii) any Shares subject to any award of Restricted Stock are forfeited, such Shares shall again
be available for issuance in connection with future Awards granted under the Plan.




Section 4. Corporate Transactions.




          In the event of any merger, reorganization, consolidation, recapitalization, stock dividend or
other change in corporate structure affecting the Common Stock, an equitable substitution or
proportionate adjustment shall be made in (i) the aggregate number of Shares reserved for issuance
under the Plan, (ii) the kind, number and Exercise Price of Shares subject to outstanding Options
granted under the Plan, and (iii) the kind, number and purchase price of Shares subject to
outstanding awards of Restricted Stock granted under the Plan, in each case as may be determined by
the Administrator, in its sole discretion. Such other substitutions or adjustments shall be made
as may be determined by the Administrator, in its sole discretion. In connection with any event
described in this paragraph, the Administrator may provide, in its sole discretion, for the
cancellation of any outstanding awards and payment in cash or other property therefor.




Section 5. Eligibility.




          Eligible Recipients may be granted Options and/or awards of Restricted Stock.




4









 







The Participants under the Plan shall be selected from time to time by the Administrator, in
its sole discretion, from among the Eligible Recipients.




          The Administrator shall have the authority to grant to any Eligible Recipient who is an
employee of the Company or of any Parent or Subsidiary (including directors who are also officers
of the Company) Incentive Stock Options, Nonqualified Stock Options, or both types of Options,
and/or Restricted Stock. Non-employee Directors of the Company or of any Parent or Subsidiary,
consultants (including employees of the Manager who provide services to the Company) or advisors
who are not also employees of the Company or of any Parent or Subsidiary may only be granted
Options that are Nonqualified Stock Options and/or Restricted Stock.




Section 6. Options.




          Options may be granted alone or in addition to other awards of Restricted Stock granted under
the Plan. Any Option granted under the Plan shall be in such form as the Administrator may from
time to time approve, and the provisions of each Option need not be the same with respect to each
Participant. Participants who are granted Options shall enter into an Award Agreement with the
Company, in such form as the Administrator shall determine, which Award Agreement shall set forth,
among other things, the Exercise Price of the Option, the term of the Option and provisions
regarding exercisability of the Option granted thereunder.




          The Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii)
Nonqualified Stock Options. To the extent that any Option does not qualify as an Incentive Stock
Option, it shall constitute a separate Nonqualified Stock Option. More than one Option may be
granted to the same Participant and be outstanding concurrently hereunder.




          Options granted under the Plan shall be subject to the following terms and conditions and
shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as
the Administrator shall deem desirable:





	 	(a)	 	Option Exercise Price. The per share Exercise Price of Shares
purchasable under an Option shall be determined by the Administrator in its sole
discretion at the time of grant but shall not, (i) in the case of Incentive Stock
Options, be less than 100% of the Fair Market Value of the Common Stock on such date
(110% of the Fair Market Value per Share on such date if, on such date, the Eligible
Recipient owns (or is deemed to own under Section 424(d) of the Code) stock possessing
more than ten percent of the total combined voting power of all classes of stock of the
Company, or any Parent or Subsidiary), and (ii) in the case of Nonqualified Stock
Options, be less than 100% of the Fair Market Value of the Common Stock on such date.




5









 






	 	(b)	 	Option Term. The term of each Option shall be fixed by the
Administrator, but no Option shall be exercisable more than ten years after the date
such Option is granted; provided, however, that if an employee owns or
is deemed to own (by reason of the attribution rules of Section 424(d) of the Code)
more than 10% of the combined voting power of all classes of stock of the Company or of
any Parent or Subsidiary and an Incentive Stock Option is granted to such employee, the
term of such Incentive Stock Option (to the extent required by the Code at the time of
grant) shall be no more than five years from the date of grant.
	 
	 	(c)	 	Exercisability. Options shall be exercisable at such time or times and
subject to such terms and conditions as shall be determined by the Administrator at or
after the time of grant. The Administrator may also provide that any Option shall be
exercisable only in installments, and the Administrator may waive such installment
exercise provisions at any time, in whole or in part, based on such factors as the
Administrator may determine, in its sole discretion.
	 
	 	(d)	 	Method of Exercise. Subject to Section 6(c), Options may be exercised
in whole or in part at any time during the Option period, by giving written notice of
exercise to the Company specifying the number of Shares to be purchased, accompanied by
(i) payment in full of the aggregate Exercise Price of the Shares so purchased in cash,
(ii) delivery of outstanding shares of Common Stock with a Fair Market Value on the
date of exercise equal to the aggregate Exercise Price payable with respect to the
Options’ exercise or (iii) simultaneous sale through a broker reasonably acceptable to
the Administrator of Shares acquired on exercise, as permitted under Regulation T of
the Federal Reserve Board.
	 
	 	 	 	In the event a grantee elects to pay the Exercise Price payable with respect to an
Option pursuant to clause (ii) above: (A) only a whole number of share(s) of Common
Stock (and not fractional shares of Common Stock) may be tendered in payment, (B)
such grantee must present evidence acceptable to the Company that he or she has
owned any such shares of Common Stock tendered in payment of the Exercise Price (and
that such tendered shares of Common Stock have not been subject to any substantial
risk of forfeiture) for at least six months prior to the date of exercise, and (C)
Common Stock must be delivered to the Company. Delivery for this purpose may, at
the election of the grantee, be made either by (i) physical delivery of the
certificate(s) for all such shares of Common Stock tendered in payment of the
Exercise Price, accompanied by duly executed instruments of transfer in a form
acceptable to the Company, or (ii) direction to the grantee’s broker to transfer, by
book entry, of such shares of Common Stock from a brokerage account of the grantee
to a brokerage account specified by the Company. When payment of the Exercise Price
is made by delivery of Common Stock, the difference, if any, between the aggregate
Exercise Price payable with respect to the Option being exercised and the Fair
Market Value of the shares of Common Stock tendered in payment (plus any applicable
taxes) shall be paid in




6









 







	 	 	 	cash. No grantee may tender shares of Common Stock having a Fair Market Value
exceeding the aggregate Exercise Price payable with respect to the Option being
exercised (plus any applicable taxes).
	 
	 	(e)	 	Non-Transferability of Options. Except as otherwise provided by the
Administrator or in the Award Agreement, Options may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the
laws of descent or distribution.
	 
	 	(f)	 	Termination of Employment or Service. The rights of Participants
granted Options upon termination of employment or service as a director, consultant or
advisor to the Company or to any Parent or Subsidiary for any reason prior to the
exercise of such Options shall be set forth in the Award Agreement governing such
Options.
	 
	 	(g)	 	Annual Limit on Incentive Stock Options. To the extent that the
aggregate Fair Market Value (determined as of the date the Incentive Stock Option is
granted) of Shares with respect to which Incentive Stock Options granted to a
Participant under this Plan and all other option plans of the Company or of any Parent
or Subsidiary become exercisable for the first time by the Participant during any
calendar year exceeds $100,000 (as determined in accordance with Section 422(d) of the
Code), the portion of such Incentive Stock Options in excess of $100,000 shall be
treated as Nonqualified Stock Options.
	 
	 	(h)	 	Rights as Stockholder. An Optionee shall have no rights to dividends
or any other rights of a stockholder with respect to the Shares subject to the Option
until the Optionee has given written notice of exercise, has paid in full for such
Shares, has satisfied the requirements of Section 10(d) hereof and, if requested, has
given the representation described in Section 10(b) hereof.





Section 7. Restricted Stock.




          Awards of Restricted Stock may be issued either alone or in addition to Options granted under
the Plan. The Administrator shall determine the Eligible Recipients to whom, and the time or times
at which, awards of Restricted Stock shall be made; the number of Shares to be awarded; the price,
if any, to be paid by the Participant for the acquisition of Restricted Stock; the Restricted
Period (as defined in Section 7(b)) applicable to awards of Restricted Stock. The Administrator
may also condition the grant of the award of Restricted Stock upon the exercise of Options or upon
such other criteria as the Administrator may determine, in its sole discretion. The provisions of
the awards of Restricted Stock need not be the same with respect to each Participant.




7









 








          (a) Awards and Certificates. The prospective recipient of awards of Restricted Stock
shall not have any rights with respect to any such Award, unless and until such recipient has
executed an Award Agreement evidencing the Award (a “Restricted Stock Award Agreement”) and
delivered a fully executed copy thereof to the Company, within a period of sixty days (or such
other period as the Administrator may specify) after the award date. Except as otherwise provided
below in Section 7(b), each Participant who is granted an award of Restricted Stock shall be issued
a stock certificate in respect of such shares of Restricted Stock, which certificate shall be
registered in the name of the Participant and shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to any such Award.




          The Company may require that the stock certificates evidencing Restricted Stock granted
hereunder be held in the custody of the Company until the restrictions thereon shall have lapsed,
and that, as a condition of any award of Restricted Stock, the Participant shall have delivered a
stock power, endorsed in blank, relating to the Shares covered by such Award.




          (b) Restrictions and Conditions. The awards of Restricted Stock granted pursuant to
this Section 7 shall be subject to the following restrictions and conditions:





          (i) Subject to the provisions of the Plan and the Restricted Stock Award
Agreement governing any such Award, during such period as may be set by the
Administrator commencing on the date of grant (the “Restricted Period”), the
Participant shall not be permitted to sell, transfer, pledge or assign shares of
Restricted Stock awarded under the Plan; provided, however, that the
Administrator may, in its sole discretion, provide for the lapse of such
restrictions in installments and may accelerate or waive such restrictions in whole
or in part based on such factors and such circumstances as the Administrator may
determine, in its sole discretion.




          (ii) Except as provided in Section 7(b)(i), the Participant shall generally
have the rights of a stockholder of the Company with respect to Restricted Stock
during the Restricted Period. Certificates for unrestricted Shares shall be
delivered to the Participant promptly after, and only after, the Restricted Period
shall expire without forfeiture in respect of such awards of Restricted Stock
except as the Administrator, in its sole discretion, shall otherwise determine.




          (iii) The rights of Participants granted awards of Restricted Stock upon
termination of employment or service as a director, consultant or advisor to the
Company or to any Parent or Subsidiary for any reason during the Restricted Period
shall be set forth in the Restricted Stock Award Agreement governing such Awards.



Section 8. Amendment and Termination.




8









 








          The Board may amend, alter or discontinue the Plan, but no amendment, alteration, or
discontinuation shall be made that would impair the rights of a Participant under any Award
theretofore granted without such Participant’s consent. To the extent necessary and desirable, the
Board shall obtain approval of the stockholders (as described below), for any amendment that would:




          (a) except as provided in Sections 3 or 4 of the Plan, increase the total number of Shares
reserved for issuance under the Plan;




          (b) change the class of officers, directors, employees, consultants and advisors eligible to
participate in the Plan; or




          (c) extend the maximum Option term under Section 6(b) of the Plan.




     The Administrator may amend the terms of any Award theretofore granted, prospectively or
retroactively, but, subject to Section 4 of the Plan, no such amendment shall impair the rights of
any Participant without his or her consent.



Section 9. Unfunded Status of Plan.




          The Plan is intended to constitute an “unfunded” plan for incentive compensation. With
respect to any payments not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a general creditor of the
Company.




Section 10. General Provisions.




          (a) Shares shall not be issued pursuant to any Award granted hereunder unless such Award and
the issuance and delivery of such Shares pursuant thereto shall comply with all relevant provisions
of law, including, without limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, and the requirements of any stock exchange upon which the Common
Stock may then be listed, and shall be further subject to the approval of counsel for the Company
with respect to such compliance.




          (b) The Administrator may require each person acquiring Shares to represent to and agree with
the Company in writing that such person is acquiring the Shares without a view to distribution
thereof. The certificates for such Shares may include any legend which the Administrator deems
appropriate to reflect any restrictions on transfer.




9









 








          All certificates for Shares delivered under the Plan shall be subject to such stock-transfer
orders and other restrictions as the Administrator may deem advisable under the rules, regulations,
and other requirements of the Securities and Exchange Commission, any stock exchange upon which the
Common Stock is then listed, and any applicable Federal or state securities law, and the
Administrator may cause a legend or legends to be placed on any such certificates to make
appropriate reference to such restrictions.




          (c) Nothing contained in the Plan shall prevent the Board from adopting other or additional
compensation arrangements, subject to stockholder approval, if such approval is required; and such
arrangements may be either generally applicable or applicable only in specific cases. The adoption
of the Plan shall not confer upon any Eligible Recipient any right to continued employment or
service with the Company or any Parent or Subsidiary, as the case may be, nor shall it interfere in
any way with the right of the Company or any Parent or Subsidiary to terminate the employment or
service of any of its Eligible Recipients at any time.




          (d) Unless otherwise determined by the Administrator, a Participant may elect to deliver
shares of Common Stock (or have the Company withhold shares) to satisfy, in whole or in part, the
amount the Company is required to withhold for taxes in connection with the exercise of an Option
or the delivery of Restricted Stock upon grant or vesting, as the case may be. Such election must
be made on or before the date the amount of tax to be withheld is determined. Once made, the
election shall be irrevocable. The fair market value of the Shares to be withheld or delivered
will be the Fair Market Value as of the date the amount of tax to be withheld is determined. In
the event a Participant elects to deliver or have the Company withhold Shares of Common Stock
pursuant to this Section 10(d), such delivery or withholding must be made subject to the conditions
and pursuant to the procedures set forth in Section 6(d) with respect to the delivery or
withholding of Common Stock in payment of the Exercise Price of Options.




          (e) No member of the Board or the Administrator, nor any officer or employee of the Company
acting on behalf of the Board or the Administrator, shall be personally liable for any action,
determination, or interpretation taken or made in good faith with respect to the Plan, and all
members of the Board or the Administrator and each and any officer or employee of the Company
acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected by
the Company in respect of any such action, determination or interpretation.




Section 11. Effective Date of Plan.




          (a) The Plan was originally adopted by the Board on June 25, 2003 (the “Effective Date”).




10









 








          (b) The Plan is amended and restated effective upon the Board’s approval on April 30, 2009,
subject to the approval by the stockholders of the Company.




Section 12. Term of Plan.




          No Award shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date, but Awards theretofore granted may extend beyond that date.




Section 13. Governing Law.




          This Plan and all questions relating to its validity, interpretation, performance and
enforcement shall be governed by and construed, interpreted and enforced in accordance with the
laws of the State of New York, notwithstanding any New York or other conflict-of-law provisions to
the contrary.





11