Document:

exv4w3

 

Exhibit 4.3

FIRST SUPPLEMENTAL INDENTURE

     This FIRST SUPPLEMENTAL INDENTURE dated as of December 31, 1998 (this
“First Supplemental Indenture”) is between COLONIAL REALTY LIMITED PARTNERSHIP,
a Delaware limited partnership (the “Company”) having its principal executive
office at 2101 Sixth Avenue North, Suite 750, Birmingham, Alabama 35203, and
BANKERS TRUST COMPANY, a New York banking corporation, as trustee under the
Indenture referred to below (in such capacity, the “Trustee”).

WITNESSETH:

     WHEREAS, the Trustee and the Company are parties to the Indenture dated
as of July 22, 1996 (the “Indenture”), pursuant to which the Company may issue
from time to time its unsecured debt securities (the “Securities”) in unlimited
principal amount;

     WHEREAS, in connection with the Agreement and Articles of Merger dated
as of December 31, 1998 by and between Colonial Properties Holding Company,
Inc., an Alabama corporation and the sole general partner of the Company
(“CPHC”), and Colonial Properties Trust, an Alabama real estate investment trust
(“Colonial”), which provides for the merger effective December 31, 1998 of CPHC
with and into Colonial, with Colonial being the surviving entity of such merger
(the “Merger”), the Company desires to supplement the Indenture in accordance
therewith to evidence Colonial’s succession, through the Merger, to CPHC’s
interest as the sole general partner of the Company and to conform certain
definitions used in the Indenture;

     WHEREAS, Section 9.01(9) of the Indenture permits the Company and the
Trustee to cure any ambiguity or correct or supplement any provision in the
Indenture which may be defective or inconsistent with any other provision
thereof, or to make any other provisions with respect to matters or questions
arising under the Indenture which shall not be inconsistent with the provisions
of the Indenture, provided such provisions shall not adversely affect the
interests of any of the Holders (as defined in the Indenture) of Securities of
any series or any related coupons in any material respect;

     WHEREAS, in the opinion of the Board of Directors of CPHC, as evidenced
by a Board Resolution delivered to the Trustee on the date hereof, the
provisions in this First Supplemental Indenture will not modify any provision of
the Indenture so as to deprive the Holders of any Security Outstanding of any
benefit provided by the Indenture or otherwise adversely affect the interests of
any of the Holders in any respect;

NOW, THEREFORE, in consideration of the premises and mutual agreements set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Trustee
mutually covenant and agree, for the equal and proportionate benefit of all
Holders of the Securities, as follows:

ARTICLE ONE

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

SECTION 101. DEFINITIONS

(a) For all purposes of this First Supplemental Indenture, except as otherwise
expressly provided or unless the context otherwise requires:

 

 

the terms defined in this Article have the meanings assigned to them in this
Article, and include the plural as well as the singular;

the words “herein,” “hereof,” “hereto” and “hereunder” and other words of
similar import refer to the Indenture and this First Supplemental Indenture as a
whole and not to any particular Article, Section or other subdivision; and
capitalized terms are used herein as they are defined in the Indenture.

(b) The term “Board of Directors” and the definition thereof are hereby deleted
from Section 101 of the Indenture.

(c) The term “CPHC” and the definition thereof are hereby deleted from Section
101 of the Indenture.

(d) The following defined term is hereby added to Section 101 of the Indenture:

“Board of Trustees” means the board of trustees of Colonial, the executive
committee or any committee of that board authorized to act hereunder, as the
case may be.

(e) The following capitalized, boldface terms appearing in Section 101 of the
Indenture are hereby redefined as follows:

(1) “Board Resolution” means a copy of a resolution of Colonial, certified by
the Secretary or an Assistant Secretary of Colonial to have been duly adopted by
the Board of Trustees and to be in full force and effect on the date of such
certification, and delivered to the Trustee.

(2) “Colonial” means Colonial Properties Trust, an Alabama real estate
investment trust and the sole general partner of the Company.

(3) “Company Request” and “Company Order” mean, respectively, a written request
or order signed in the name of and on behalf of the Company by the Chairman of
the Board, the President or a Vice President, and by the Treasurer or an
Assistant Treasurer, the Secretary or an Assistant Secretary of Colonial, as
general partner of the Company, and delivered to the Trustee.

(4) “Officers’ Certificate” means a certificate signed by the Chairman of the
Board, the President or a Vice President and by the Treasurer, an Assistant
Treasurer, the Secretary or an Assistant Secretary of Colonial, as general
partner of the Company, and delivered to the Trustee.

(5) “Opinion of Counsel” means a written opinion of counsel, who may be counsel
for the Company or who may be an employee of or other counsel for Colonial or
the Company and who shall be reasonably satisfactory to the Trustee.

SECTION 102. EFFECT OF HEADINGS AND TABLE OF CONTENTS.

          The Article and Section headings herein are for convenience only and shall
not affect the construction hereof.

SECTION 103. SUCCESSORS AND ASSIGNS.

          
All stipulations, promises and agreements in this First Supplemental Indenture
shall bind the successors and assigns of the Company and the Trustee, whether so
expressed or not.

 

 

SECTION 104. SEPARABILITY CLAUSE.

          
In case any provision in this First Supplemental Indenture shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

SECTION 105. BENEFITS OF INDENTURE.

          
Nothing in this First Supplemental Indenture, express or implied, shall give
to any Person, other than the parties hereto and their successors and assigns
hereunder and the Holders of Securities, any benefit or legal or equitable
right, remedy or claim under this First Supplemental Indenture.

SECTION 106. GOVERNING LAW.

          
This First Supplemental Indenture shall be governed by and construed in
accordance with the laws of the State of New York.

SECTION 107. EFFECTIVENESS.

          
This First Supplemental Indenture shall take effect at the effective time of
the Merger.

ARTICLE TWO

The first sentence of Section 111 of the Indenture is hereby amended and
restated to read as follows:

          SECTION 111. NON-RECOURSE. Notwithstanding anything contained
herein to the contrary, no recourse under or upon any obligation, covenant or
agreement contained in this Indenture, in any Security or coupon appertaining
thereto, or because of any indebtedness evidenced thereby (including, without
limitation, any obligation or indebtedness relating to the principal of, or
premium or Make-Whole Amount, if any, interest or any other amounts due, or
claimed to be due, on any Security issued hereunder), or for any claim based
thereon or otherwise in respect thereof, shall be had (i) against Colonial or
any other partner in the Company, (ii) against Colonial or any other Person
which owns an interest, directly or indirectly, in any partner in the Company or
(iii) against any promoter, as such, or against any past, present or future
shareholder, officer, director or partner, as such, of the Company or Colonial
or of any successor, either directly or through the Company or Colonial or any
successor, under any rule of law, statute or constitutional provision or by the
enforcement of any assessment or by any legal or equitable proceeding or
otherwise, all such liability being expressly waived and released by the
acceptance of the Securities by the Holders thereof and as part of the
consideration for the issue of the Securities.

ARTICLE THREE

THE SECURITIES

     SECTION 301. The last sentence of Section 301 of the Indenture is
hereby amended and restated to read as follows:

If any of the terms of the Securities of any series are established by action
taken pursuant to one or more Board Resolutions, a copy of an appropriate record
of such action(s) shall be certified by the Secretary or an Assistant Secretary
of Colonial on behalf of the Company and delivered to the Trustee at or prior to
the delivery of the Officers’ Certificate setting forth the terms of the
Securities of such series.

 

 

SECTION 302. The first two paragraphs of Section 303 of the Indenture are hereby
amended and restated to read as follows:

The Securities and any coupons appertaining thereto shall be executed by the
Chairman of the Board, the President or one of the Vice Presidents, and the
Chief Financial Officer of Colonial, as general partner of the Company. The
signature of any of these officers on the Securities and coupons may be manual
or facsimile signatures of the present or any future such authorized officer and
may be imprinted or otherwise reproduced on the Securities.

Securities or coupons bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of Colonial or any predecessor general
partner of the Company, including, without limitation, Colonial Properties
Holding Company, Inc., shall bind the Company, notwithstanding that such
individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities and did not hold such offices at
the date of such Securities or coupons.

ARTICLE FOUR

THE TRUSTEE

     Section 602(2) of the Indenture is hereby amended and restated to read
as follows:

(2) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order (other than
delivery of any Security, together with any coupons appertaining thereto, to the
Trustee for authentication and delivery pursuant to Section 303 which shall be
sufficiently evidenced as provided therein) and any resolution of the Board of
Trustees may be sufficiently evidenced by a Board Resolution.

          This First Supplemental Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

          IN WITNESS WHEREOF, the Company and the Trustee have caused
this First Supplemental Indenture to be duly executed as of the day and year
first above written.

COLONIAL REALTY LIMITED PARTNERSHIP

By: Colonial Properties Holding Company, Inc.,

its general partner

By: /s/ Howard B. Nelson, Jr

Name: Howard B. Nelson, Jr.

Title: Chief Financial Officer and Secretaryexv10w01

 

Exhibit 10.01

1996 EMPLOYEES STOCK OPTION PLAN

OF

NETWORK SPECIALISTS, INC.

As Amended January 31, 2000

1. PURPOSE OF THE PLAN

     The purpose of the 1996 Employees Stock Option Plan (the “Plan”) of Network Specialists, Inc.
(the “Company”) is to provide an incentive to employees whose present and potential contributions
to the Company and its Subsidiaries (as such term is defined in Section 2 below) are or will be
important to the success of the Company by affording them an opportunity to acquire a proprietary
interest in the Company. It is intended that this purpose will be effected through the issuance of
stock options to purchase shares of Common Stock, $.001 par value per share, of the Company
(“Common Stock”) (such options are sometimes referred to herein as “Awards”). Stock options may be
granted under the Plan which qualify as “Incentive Stock Options” under Section 422A of the
Internal Revenue Code of 1986, as it may be hereafter amended (the “Code”). Such options are
sometimes referred to as an “ISO” or collectively as “ISOs.”

2. ELIGIBILITY

     Awards may be made or granted to employees of the Company or its Subsidiaries who are deemed
to have the potential to have a significant effect on the future success of the Company (such
eligible persons being referred to herein as “Eligible Participants”). The term “employees” shall
include officers of the Company or of a Subsidiary. A director of the Company or of any Subsidiary
who is not also an employee of the Company or of one of its Subsidiaries will not be eligible to
receive any Awards under the Plan. No ISO shall be granted to an employee who, at the time the
option is granted, owns stock possessing more than 10% of the total combined voting power of all
classes of capital stock of the employer corporation (as such term is used in the Code) or any
Parent or Subsidiary of the employer corporation, provided, however, that an ISO may be granted to
such an employee if at the time such ISO is granted the option price is at least one hundred ten
percent (110%) of the fair market value of stock subject to the ISO on the date of grant (as
determined pursuant to Subsection 8(a) hereof) and such ISO is by its terms not exercisable after
the expiration of five (5) years from the date such option is granted. The terms “Subsidiary” and
“Parent” as used herein shall have the meanings given them in Section 425 of the Code. Awards may
be made to personnel who hold or have held options or shares under the Plan or any other plans of
the Company.

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3. STOCK SUBJECT TO THE PLAN

     The shares that may be issued upon exercise of options under the Plan shall not exceed in the
aggregate 5,000,000 shares of the Common Stock, as adjusted to give effect to the anti-dilution
provisions contained in Section 7 hereof. Such shares may be authorized and unissued shares, or
shares purchased by the Company and reserved for issuance under the Plan. If a stock option for
any reason expires or is terminated without having been exercised in full, those shares relating to
an unexercised stock option shall again become available for grant and/or sale under the Plan.

4. ADMINISTRATION

     (a) Procedure. The Plan shall be administered by the Board of Directors or by a Committee of
the Board of Directors, if one is appointed for this purpose (the “Committee”). Committee members
shall serve for such term as the Board of Directors may in each case determine, and shall be
subject to removal at any time by the Board of Directors. Members of the Board of Directors who
are either eligible for awards or have been granted awards may not vote on any matters affecting
the administration of the Plan or the grant of any Award pursuant to the Plan.

     (b) Powers of the Board or Committee. As used herein, except as the Committee’s powers are
specifically limited in Sections 4, 5, 15 and 16 hereof, reference to the Board of Directors shall
mean such Board or the Committee, whichever is then acting with respect to the Plan. Subject to
the provisions of the Plan, the Board of Directors shall have the authority in its discretion: (i)
to determine, upon review of relevant information, the fair market value of the Common Stock; (ii)
to determine the exercise price per share of stock options to be granted; (iii) to determine the
Eligible Participants to whom, and time or times at which, Awards shall be granted and the number
of shares to be issuable upon exercise of each stock option; (iv) to construe and interpret the
Plan; (v) to prescribe, amend and rescind rules and regulations relating to the Plan; (vi) to
determine the terms and provisions of each Award (which need not be identical); and (vii) to make
all other determinations necessary to or advisable for the administration of the Plan.
Notwithstanding the foregoing, in the event any employee of the Company or any of its Subsidiaries
granted an Award under the Plan is, at the time of such grant, a member of the Board of Directors
of the Company, the grant of such Award shall, in the event the Board of Directors at the time such
award is granted is not deemed to satisfy the requirement of Rule 16(b)-3(b)(2)(i) or (ii)
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), be subject
to the approval of an auxiliary committee consisting of not less than two persons all of whom
qualify as “disinterested persons” within the meaning of Rule 16(b)-3(d)(3) promulgated under the
Exchange Act. In the event the Board of Directors deems it impractical to form a committee of
disinterested persons, the Board of Directors is authorized to approve any award under the Plan.

5. DURATION OF THE PLAN

     The Plan shall become effective upon the approval of the requisite vote of the stockholders of
the Company, and upon the approvals, if required, of any other public authorities. The Plan shall
remain in effect for a term of ten (10) years from the date of adoption by the

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Board unless sooner terminated under Section 15 hereof. Notwithstanding any of the foregoing
to the contrary, the Board of Directors (but not the Committee) shall have the authority to amend
the Plan pursuant to Section 15 hereof; provided, however, that Awards already made shall remain in
full force and effect as if the Plan had not been amended or terminated.

6. OPTIONS

     Options shall be evidenced by stock option agreements in such form, and not inconsistent with
the Plan, as the Board of Directors shall approve from time to time, which agreements shall contain
in substance the following terms and conditions:

     (a) Option Price; Number of Shares. The option price, which shall be approved by the Board of
Directors, shall in no event be less than one hundred percent (100%) in the case of ISOs, and
eighty-five percent (85%) in the case of other options, of the fair market value of the Company’s
Common Stock at the time the option is granted. The fair market value of the Common Stock, for the
purposes of the Plan, shall mean: (i) if the Common Stock is traded on a national securities
exchange or on the NASDAQ National Market System (“NMS”), the per share closing price of the Common
Stock on the principal securities exchange on which they are listed or on NMS, as the case may be,
on the date of grant (or if there is no closing price for such date of grant, then the last
preceding business day on which there was a closing price); or (ii) if the Common Stock is traded
in the over-the-counter market and quotations are published on the NASDAQ quotation system (but not
on NMS), the closing bid price of the Common Stock on the date of grant as reported by NASDAQ (or
if there are no closing bid prices for such date of grant, then the last preceding business day on
which there was a closing bid price); or (iii) if the Common Stock is traded in the
over-the-counter market but bid quotations are not published on NASDAQ, the closing bid price per
share for the Common Stock as furnished by a broker-dealer which regularly furnishes price
quotations for the Common Stock.

     The option agreement shall specify the total number of shares to which it pertains and whether
such options are ISOs or are not ISOs. With respect to ISOs granted under the Plan, the aggregate
fair market value (determined at the time an ISO is granted) of the shares of Common Stock with
respect to which ISOs are exercisable for the first time by such employee during ay calendar year
shall not exceed $100,000 under all plans of the employer corporation or its Parent or
Subsidiaries.

     (b) Waiting Period and Exercise Dates. At the time an option is granted, the Board of
Directors will determine the terms and conditions to be satisfied before shares may be purchased,
including the dates on which shares subject to the option may first be purchased. (The period from
the date of grant of an option until the date on which such option may first be exercised, if not
immediately exercisable, is referred to herein as the “waiting period”). At the time an option is
granted, the Board of Directors shall fix the period within which it may be exercised which shall
not be less than one (1) year nor more than ten (10) years from the date of grant. (Any of such
periods is referred to herein as the “exercise period”).

     (c) Form and Time of Payment. Stock purchased pursuant to an option agreement shall be paid
for at the time of purchase either in cash or by certified check or, in the discretion of the Board
of Directors, as set forth in the stock option agreement (i) in a combination of cash

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and a promissory note, (ii) through the delivery of shares of Common Stock, or (iii) in a
combination of the methods described above. Upon receipt of payment, the Company shall, without
transfer or issue tax to the option holder or other person entitled to exercise the option, deliver
to the option holder (or such other person) a certificate or certificates for the shares so
purchased.

     (d) Effect of Termination or Death. In the event that an option holder ceases to be an
employee of the Company or of any Subsidiary for any reason other than permanent disability (as
determined by the Board of Directors) and death, any option, including any unexercised portion
thereof, which was otherwise exercisable on the date of termination, shall expire unless exercised
within a period of three months from the date on which the option holder ceased to be so employed,
but in no event after the expiration of the exercise period. In the event of the death of an
option holder during this three month period, the option shall be exercisable by his or her
personal representatives, heirs or legatees to the same extent that the option holder could have
exercised the option if he or she had not died, for the three months from the date of death, but in
no event after the expiration of the exercise period. In the event of the permanent disability of
an option holder while an employee of the Company or of any Subsidiary, any option granted to such
employee shall be exercisable for twelve (12) months after the date of permanent disability, but in
no event after the expiration of the exercise period. In the event of the death of an option
holder while an employee of the Company or any Subsidiary, or during the twelve (12) month period
after the date of permanent disability of the option holder, that portion of the option which had
become exercisable on the date of death shall be exercisable by his or her personal
representatives, heirs or legatees at any time prior to the expiration of one (1) year from the
date of the death of the option holder, but in no event after the expiration of the exercise
period. Except as the Board of Directors shall provide otherwise, in the event an option holder
ceases to be an employee of the Company or of any Subsidiary for any reason, including death, prior
to the lapse of the waiting period, his or her option shall terminate and be null and void.

     (e) Other Provisions. Each option granted under the Plan may contain such other terms,
provisions, and conditions not inconsistent with the Plan as may be determined by the Board of
Directors.

7. RECAPITALIZATION

     In the event that dividends are payable in Common Stock or in the event there are splits,
subdivisions or combinations of shares of Common Stock, the number of shares available under the
Plan shall be increased or decreased proportionately, as the case may be, and the number of shares
delivered upon the exercise thereafter of any stock option theretofore granted or issued shall be
increased or decreased proportionately, as the case may be, without change in the aggregate
purchase price.

8. ACCELERATION

     (a) Notwithstanding any contrary waiting period in any stock option agreement issued pursuant
to the Plan, but subject to any determination by the Board of Directors to provide otherwise at the
time such Award is granted or subsequent thereto, each outstanding option granted under the Plan
shall, except as otherwise provided in the stock option agreement, become

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exercisable in full for the aggregate number of shares covered thereby shall vest
unconditionally on the first day following the occurrence of any of the following: (a) the
approval by the stockholders of the Company of an Approved Transaction; (b) a Control Purchase; or
(c) a Board Change.

     (b) For purposes of this Section 8:

          (i) An “Approved Transaction” shall mean (A) any consolidation or merger of the Company in
which the Company is not the continuing or surviving corporation or pursuant to which shares of
Common Stock would be converted into cash, securities or other property, other than a merger of the
Company in which the holders of Common Stock immediately prior to the merger have the same
proportionate ownership of common stock of the surviving corporation immediately after the merger,
or (B) any sale, lease, exchange, or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of the Company, or (C) the adoption of
any plan or proposal for the liquidation or dissolution of the Company.

          (ii) A “Control Purchase” shall mean circumstances in which any person (as such term is
defined in Sections l3(d)(3) and 14(d)(2) of the Exchange Act, corporation or other entity (other
than the Company or any employee benefit plan sponsored by the Company or any Subsidiary) (A) shall
purchase any Common Stock of the Company (or securities convertible into the Company’s Common
Stock) for cash, securities or any other consideration pursuant to a tender offer or exchange
offer, without the prior consent of the Board of Directors, or (B) shall become the “beneficial
owner” (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing twenty-five percent (25%) or more of the combined voting
power of the then outstanding securities of the Company ordinarily (and apart from rights accruing
under special circumstances) having the right to vote in the election of directors (calculated as
provided in paragraph (d) of such Rule 13d-3 in the case of rights to acquire the Company’s
securities).

          (iii) A “Board Change” shall mean circumstances in which, during any period of two consecutive
years or less, individuals who at the beginning of such period constitute the entire Board shall
cease for any reason to constitute a majority thereof unless the election, or the nomination for
election by the Company’s stockholders, of each new director was approved by a vote of at least a
majority of the directors then still in office.

9. CONTINUATION OF RELATIONSHIP; LEAVE OF ABSENCE

     (a) Nothing in the Plan or any Award made hereunder shall interfere with or limit in any way,
the right of the Company or of any Subsidiary to terminate any Eligible Participant’s employment at
any time, nor confer upon any Eligible Participant any right to continue any such relationship with
the Company or Subsidiary.

     (b) For purposes of the Plan, a transfer of a recipient of options hereunder from the Company
to a Subsidiary or vice versa, or from one Subsidiary to another, or a leave of absence duly
authorized by the Company shall not be deemed a termination of employment or a break in the
incentive, waiting or exercise period, as the case may be. In the case of any employee on an

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approved leave of absence, the Board of Directors may make such provisions with respect to
continuance of stock rights, options or restricted shares previously granted while on leave from
the employ of the Company or a Subsidiary as it may deem equitable.

10. GENERAL RESTRICTION

     Each Award made under the Plan shall be subject to the requirement that, if at any time the
Board of Directors shall determine, in its sole and subjective discretion, that the registration,
qualification or listing of the shares subject to such Award upon a securities exchange or under
any state or federal law, or the consent or approval of any government regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting or exercise of such
Award, the Company shall not be required to issue such shares unless such registration,
qualification, listing, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Board of Directors. Nothing in the Plan or any agreement or grant
hereunder shall obligate the Company to effect any such registration, qualification or listing.

11. RIGHTS AS A STOCKHOLDER

     The holder of a stock option shall have no rights as a stockholder with respect to any shares
covered by the stock option, until the date of issuance of a stock certificate to him for such
shares related to the exercise thereof. No adjustment shall be made for the dividends or other
rights for which the record date is prior to the date such stock certificate is issued.

12. NONASSIGNABILITY OF AWARDS

     No stock option shall be assignable or transferable by an Eligible Participant except by will
or by the laws of descent and distribution, or as otherwise permitted by the Code and during the
lifetime of an Eligible Participant may only be exercised by him.

13. WITHHOLDING TAXES

     Whenever under the Plan shares are to be issued in satisfaction of stock options granted
hereunder, the Company shall have the right to require the Eligible Participant to remit to the
Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior
to the delivery of any certificate or certificates for such shares or at such later time as when
the Company may determine that such taxes are due. Whenever under the Plan payments are to be made
in cash, such payment shall be net of an amount sufficient to satisfy federal, state and local
withholding tax requirements.

14. NONEXCLUSIVITY OF THE PLAN

     Neither the adoption of the Plan by the Board of Directors nor any provision of the Plan shall
be construed as creating any limitations on the power of the Board (but not the Committee) to adopt
such additional compensation agreements as it may deem desirable, including, without limitation,
the granting of stock options otherwise than under the Plan, and such arrangements may be either
generally applicable or applicable only in specific cases.

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15. AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN

     The Board of Directors (but not the Committee) may at any time amend, alter, suspend or
discontinue the Plan, but no amendment, alteration, suspension or discontinuation shall be made
which would impair the rights of any recipient of a stock option under any agreement theretofore
entered into hereunder, without his consent, or which, without the requisite vote of the
stockholders of the Company approving such action, would:

     (a) except as is provided in Section 7 of the Plan, increase the total number of shares of
stock reserved for the purposes of the Plan; or

     (b) extend the duration of the Plan; or

     (c) materially increase the benefits accruing to participants under the Plan; or

     (d) change the category of persons who can be Eligible Participants under the Plan. Without
limiting the foregoing, the Board of Directors may, any time or from time to time, authorize the
Company, without the consent of the respective recipients, to issue new options in exchange for the
surrender and cancellation of any or all outstanding options.

16. LIMITATIONS ON EXERCISE.

     Notwithstanding anything to the contrary contained in the Plan, any agreement evidencing any
Award hereunder may contain such provisions as the Board deems appropriate to ensure that the
penalty provisions of Section 4999 of the Code, or any successor thereto, will not apply to any
stock received by the holder from the Company.

17. GOVERNING LAW

     The Plan shall be governed by, and construed in accordance with, the laws of the State of New
Jersey.

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