Document:

Exhibit
10.1

 

EXECUTION VERSION

 

OMNIBUS AMENDMENT TO SECOND AMENDED
AND RESTATED

MASTER REPURCHASE AGREEMENT

 

THIS OMNIBUS  AMENDMENT
TO SECOND AMENDED AND RESTATED MASTER REPURCHASE AGREEMENT, dated as of August 29,
2008  (this “Amendment”) by and
among Goldman Sachs Mortgage Company, as buyer (“GSMC”), Gramercy
Warehouse Funding II LLC, as a seller (“Gramercy”), GKK Trading
Warehouse II LLC, as a seller (“GKK” and together with Gramercy,
collectively, “Seller”), Gramercy Capital Corp., as a guarantor, GKK
Capital LP, as a guarantor, Gramercy Investment Trust, as a guarantor and GKK
Trading Corp., as a guarantor, (together with Gramercy Capital Corp., GKK
Capital LP and Gramercy Investment Trust, “Guarantor”) amends (i) that
certain Second Amended and Restated Master Repurchase Agreement, dated as of June 28,
2007, (as amended from time to time, the “Repurchase Agreement”) and (ii) that
certain Second Amended and Restated Guaranty, dated as of June 28, 2007,
(as amended from time to time, the “Guaranty”). Capitalized terms used
but not defined herein shall have the meanings set forth in the Repurchase
Agreement.

 

RECITAL

 

WHEREAS, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Seller, GSMC and Guarantor have agreed to amend the Repurchase
Agreement, Fee Letter and Guaranty as provided herein;

 

NOW, THEREFORE, IT IS
AGREED AS FOLLOWS:

 

1.             Schedule 1.  Footnote 1 to Schedule 1 to Annex I to the
Repurchase Agreement is hereby deleted.

 

2.             Pricing Rate.
The definition of “Pricing Rate” in Section 2(b) of Annex I to
the Repurchase Agreement is hereby deleted in its entirety and replaced with
the following:

 

“‘Pricing
Rate’ shall mean, for any Purchased Loan and any Pricing Rate Period, an
annual rate equal to the LIBOR Rate for such Pricing Rate Period plus the
Applicable Spread for the applicable Loan Type and shall be subject to
adjustment and/or conversion as provided in Sections 3(j) and 3(k) of
this Annex I.  The Pricing Rate shall be
computed on the basis of a 360-day year and the actual number of days elapsed.”

 

3.             Facility Amount.  The definition of “Facility Amount” in Section 2(c) of
Annex I to the Repurchase Agreement is hereby deleted in its entirety and
replaced with the following:

 

“‘Facility
Amount’ shall mean $200,000,000.”

 

4.             Extended
Repurchase Monthly Amount.  The
definition of “Extended Repurchase Monthly Amount” in Section 2(c) of
Annex I to the Repurchase Agreement is hereby deleted in its entirety.

 

5.             Future Advance
Facility Amount.

 

 

a.               The
definition of “Future Advance Facility Amount” in Section 2(c) of
Annex I to the Repurchase Agreement is hereby deleted in its entirety.

 

b.              The
definition of “Securities Aggregate Repurchase Price” is hereby deleted in its
entirety.

 

c.               Section 3(f)(ii) is
hereby modified by the deletion of all but the first sentence.

 

d.              Section 3(s) is
hereby deleted in its entirety.

 

6.             Facility
Termination Date.  Section 3(q) of
Annex I to the Repurchase Agreement is hereby deleted in its entirety and
replaced with the following:

 

“The
facility under the Agreement shall terminate on September 13, 2009, unless
extended as provided herein. Provided that (i) no Event of Default has
occurred and is continuing and (ii) Seller shall have paid to Buyer the
applicable fees in accordance with the Fee Letter, Seller may elect by written
notice not later than 45 days prior to such Facility Termination Date to extend
the Facility Termination Date for a period ending on the Remittance Date that
is fifteen months after the initial Facility Termination Date (such period, the
“Facility Extension Period”). Upon commencement of the Facility
Extension Period, the Purchase Percentage and Applicable Spread with respect to
each Transaction shall be adjusted in accordance with Schedule 3.”

 

7.             Income Payments.  Section 5(b) of Annex I to the
Repurchase Agreement is hereby deleted in its entirety and replaced with the
following:

 

“So
long as no Event of Default shall have occurred and be continuing, all Income
on deposit in the Blocked Account in respect of the Portfolio Loans and the
associated Hedging Transactions during each Collection Period shall be applied
by the Buyer on the related Remittance Date as follows:

 

(i)            first, to Buyer an amount equal to the
Price Differential which has accrued and is outstanding in respect of the
Transactions as of such Business Day;

 

(ii)           second, to Buyer an amount equal to all
Costs and other amounts payable by Seller and outstanding hereunder and under
the other Transaction Documents (other than the Repurchase Price);

 

(iii)          third,
if a Principal Payment in respect of any Purchased Loan has been made during
such Collection Period, to Buyer in respect of the Repurchase Price an amount
equal to the greater of (i) the product of the amount of such Principal
Payment multiplied by the Purchase Percentage and (ii) such greater
amount, such that after giving effect to such payment of the applicable
Repurchase Price, the aggregate Repurchase Price of the Portfolio Loans is less
than or equal to the Asset Base, as determined by Buyer after giving effect to
such payment; and

 

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(iv)          fourth, to remit to Seller the remainder,
if any.

 

If on
any Remittance Date, the amounts deposited in the Blocked Account shall be
insufficient to make the payments required under clauses (i) through (iii) of
this Section 5(b), the same shall constitute an Event of Default
hereunder.”

 

8.             Facility Extension.  Annex I to the Repurchase Agreement is hereby
supplemented by the addition of Schedule 3 annexed to this Amendment as Exhibit I.

 

9.             Guaranty.  Section 1.2(a) of
the Guaranty is hereby deleted in its entirety and replaced with the
following:

 

“the
prompt and complete payment of the Aggregate Repurchase Price with respect to
the Purchased Loans on the Repurchase Date and all other amounts due under the
Transaction Documents, all amounts in respect of all obligations and
indemnities of Seller provided for in the Transaction Documents, and all
damages provided for in the Transaction Documents in respect of a failure or
refusal by Seller to make any such payment, voluntary or involuntary, whether
direct or indirect, absolute or contingent, now or hereafter existing or owing
to Buyer; provided, however, notwithstanding any other provision herein, the
aggregate sum of the Guaranteed Obligations paid by the Guarantors under this Section 1.2(a) of
this Guaranty shall not exceed an amount equal to thirty-five percent (35%) of
the sum of (i) the Aggregate Repurchase Price under the Repurchase Agreement
and (ii) the Securities Aggregate Repurchase Price under the Securities
Repurchase Agreement; provided that, upon payment in full of the Repurchase
Price for the asset known as “666 Fifth Avenue Mezzanine Loan,” the aggregate
sum of the Guaranteed Obligations paid by the Guarantors under this Section 1.2(a) of
this Guaranty shall not exceed an amount equal to thirty percent (30%) of the
sum of (i) and (ii) above.”

 

10.           Fee Letter.  Section 3 of the Fee Letter is hereby
deleted in its entirety and replaced with the following:

 

“In the event we elect to extend the Facility
Termination Date pursuant to Section 3(q) of the Loan Repurchase
Agreement, we shall pay you an additional nonrefundable commitment fee in an
amount equal to $1,500,000.”

 

11.           Continuing Effect.  Except as expressly amended by this
Amendment, the Repurchase Agreement and the other Transaction Documents remain
in full force and effect in accordance with their respective terms, and are
hereby in all respects ratified and confirmed.

 

12.           References to
Repurchase Agreement.  All references
to the Repurchase Agreement in any Transaction Document or in any other
document executed or delivered in connection therewith shall, from and after
the execution and delivery of this Amendment, be deemed a reference to the
Repurchase Agreement as amended hereby, unless the context expressly requires
otherwise.

 

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13.           Governing Law.  This Amendment shall be governed by and
construed and interpreted in accordance with the laws of the State of New York.

 

14.           Counterparts.  This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.

 

[Signatures appear
on the next page.]

 

4

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered in their names as of the date first above written.

 

	
  GOLDMAN
  SACHS MORTGAGE COMPANY,

  a New York limited partnership

  	
   

  
	
   

  	
   

  
	
  By: Goldman
  Sachs Real Estate Funding Corp.,

  its general partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GRAMERCY
  WAREHOUSE FUNDING II LLC,

  a Delaware limited liability company 

  	
  GKK
  TRADING WAREHOUSE II LLC,

  a Delaware limited liability company 

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name: 

  	
  Name: 

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
  GKK
  TRADING CORP.,

  a Delaware corporation

  	
  GRAMERCY
  CAPITAL CORP.,

  a Maryland corporation 

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name: 

  	
  Name: 

  
	
  Title:

  	
  Title:

  
	
   

  	
   

  
	
  GKK
  CAPITAL, L.P.,

  a Delaware limited partnership

  	
  GRAMERCY
  INVESTMENT TRUST,

  a Maryland real estate investment trust

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name: 

  	
  Name: 

  
	
  Title:

  	
  Title:Exhibit 10.1

 

AGILENT TECHNOLOGIES, INC.

EMPLOYEE STOCK PURCHASE PLAN

 

(Amended and Restated, Effective November 1,
2008)

 

1.                                      PURPOSE.

 

                                                The
purpose of this Plan is to provide an opportunity for Employees of Agilent
Technologies, Inc. (the “Corporation”) and its Designated Subsidiaries, to
purchase Common Stock of the Corporation and thereby to have an additional
incentive to contribute to the prosperity of the Corporation.  It is the intention of the Corporation that
the Plan qualifies as an “Employee Stock Purchase Plan” under Section 423
of the Internal Revenue Code of 1986, as amended.

 

2.                                      DEFINITIONS.

 

(a)                                  “Board”
shall mean the Board of Directors of the Corporation.

 

(b)                                 “Code”
shall mean the Internal Revenue Code of 1986, of the USA, as amended.  Any reference to a Section of the Code
herein shall be a reference to any successor or amended Section of the
Code.

 

(c)                                  “Committee”
shall mean the committee appointed by the Board in accordance with Section 14
of the Plan.

 

(d)                                 “Common
Stock” shall mean the Common Stock of the Corporation, or any stock
into which such Common Stock may be converted.

 

(e)                                  “Compensation”
shall mean an Employee’s base cash compensation, commissions and shift premiums
paid on account of personal services rendered by the Employee to the
Corporation or a Designated Subsidiary, which, effective as of November 1,
2005, shall be determined prior to deduction of deferrals of base pay under the
Agilent Technologies, Inc. 2005 Deferred Compensation Plan, or any
successor plan thereto, but shall exclude payments for overtime, incentive
compensation, incentive payments and bonuses, with any modifications determined
by the Committee.  The Committee shall
have the authority to determine and approve all forms of pay to be included in
the definition of Compensation and may change the definition on a prospective
basis.

 

(f)                                    “Corporation”
shall mean Agilent Technologies, Inc., a Delaware corporation.

 

(g)                                 “Designated
Subsidiary” shall mean a Subsidiary that has been designated by the
Committee as eligible to participate in the Plan with respect to its Employees.

 

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(h)                                 “Employee”
shall mean an individual classified as an employee (within the meaning of Code Section 3401(c) and
the regulations thereunder) by the Corporation or a Designated Subsidiary on
the Corporation’s or such Designated Subsidiary’s payroll records during the
relevant participation period.  Employees
shall not include individuals classified as independent contractors.

 

(i)                                     “Entry
Date” shall mean the first Trading Day of the Offering Period or, for
new Participants, the first Trading Day of their first Purchase Period.

 

(j)                                     “Fair Market Value” shall be the closing sales price
for the Common Stock (or the closing bid, if no sales were reported) as quoted
in The Wall Street Journal or such other
source as the Committee deems reliable, on the date of determination if that
date is a Trading Day, or if that day is not a trading day, for the last market
Trading Day prior to the date of determination.

 

(k)                                  “Offering
Period” shall mean the period of up to twenty-four (24) months
during which an option granted pursuant to the Plan may be exercised.  Notwithstanding the foregoing, unless changed
by the Committee, effective with respect to the first Offering Period
commencing after November 1, 2008, “Offering Period” shall mean a period
of approximately six (6) months. 
After November 1, 2008, unless changed by the Committee, Offering
Periods shall commence on the first Trading Day on or after November 1 and
May 1 of each year and terminate on the last Trading Day, respectively, of
the subsequent April and October.  The
duration and timing of Offering Periods may be changed or modified by the
Committee.

 

(l)                                     “Participant”
shall mean a participant in the Plan as described in Section 5 of the
Plan.

 

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

 

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

 

(o)                                 “Purchase Period” shall mean the period of six (6) months
commencing after one Purchase Date and ending with the next Purchase Date.  Purchase Periods may, run consecutively after
the termination of the preceding Purchase Period. Notwithstanding the foregoing,
subject to the Committee’s discretion to modify Offering and Purchase Periods,
effective November 1, 2008, “Purchase Period” shall mean the six (6) month
period commencing on the first day of an Offering Period and ending on the last
day of such Offering Period.

 

(p)                                 “Purchase
Price” shall mean eighty-five percent (85%) of the Fair Market
Value of a share of Common Stock on the Purchase Date, provided, however, that
the Committee may elect with respect to future Offering Periods to establish
the Purchase Price as eighty-five percent (85%) of the Fair Market Value of a share
of Common Stock

 

2

 

on the Entry Date or the Purchase Date,
whichever is lower; provided however, that the Purchase Price may be adjusted
by the Committee pursuant to Section 7.4.

 

(q)                                 “Shareholder”
shall mean a record holder of shares entitled to vote shares of Common Stock
under the Corporation’s by-laws.

 

(r)                                    “Subsidiary”
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, as described in Code Section 424(f).

 

(s)                                  “Trading
Day” shall mean a day on which U.S. national stock exchanges and
the New York Stock Exchange are open for trading.

 

3.                                      ELIGIBILITY.

 

Any Employee regularly employed by the Corporation or by any Designated
Subsidiary on an Entry Date shall be eligible to participate in the Plan with
respect to the Purchase Period commencing on such Entry Date, provided that the
Committee may establish administrative rules requiring that employment
commence some minimum period (e.g., one pay
period) prior to an Entry Date to be eligible to participate with respect to
the Purchase Period beginning on that Entry Date.  The Committee may also determine that a
designated group of highly compensated Employees are ineligible to participate
in the Plan so long as the excluded category fits within the definition of “highly
compensated employee” in Code Section 414(q).  No Employee may participate in the Plan if
immediately after an option is granted the Employee owns or is considered to
own (within the meaning of Code Section 424(d)), shares of stock,
including stock which the Employee may purchase by conversion of convertible
securities or under outstanding options granted by the Corporation, possessing
five percent (5%) or more of the total combined voting power or value of all
classes of stock of the Corporation or of any of its Subsidiaries.  All Employees who participate in the Plan
shall have the same rights and privileges under the Plan except for differences
which may be mandated by local law and which are consistent with Code Section 423(b)(5);
provided, however, that Employees participating in a sub-plan adopted pursuant
to Section 15 which is not designed to qualify under Code Section 423
need not have the same rights and privileges as Employees participating in the
Code Section 423 Plan.  The Board
may impose restrictions on eligibility and participation of Employees who are
officers and directors to facilitate compliance with federal or state
securities laws or foreign laws.

 

4.                                      OFFERING
PERIODS.

 

Effective November 1, 2008, the Plan shall have Offering
Periods of approximately six (6) months duration which shall commence on
the first Trading Day on or after November 1 and May 1.  Each of these Offering Periods shall
terminate with a Purchase Date on the last Trading Day, respectively, on or
before April 30 and October 31. 
Notwithstanding the foregoing, the Committee shall retain the authority
to

 

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implement consecutive Offering Periods with a new Offering Period
commencing on the first Trading Day on or after the date twenty-four (24)
months from the first date of the immediately preceding Offering Period, or on
such other date as the Committee shall determine, and continuing thereafter for
twenty-four (24) months or until terminated pursuant to Section 13
hereof.

 

The Committee
shall have the authority to change the duration of Offering Periods (including
the commencement dates thereof) with respect to future offerings without
Shareholder approval if such change is announced at least five (5) days
prior to the scheduled beginning of the first Offering Period to be affected
thereafter.

 

5.                                      PARTICIPATION.

 

5.1                                 An Employee who is
eligible to participate in the Plan in accordance with Section 3 may
become a Participant by completing and submitting, on a date prescribed by the
Committee prior to an applicable Entry Date, a completed payroll deduction
authorization and Plan enrollment form provided by the Corporation or by
following an electronic or other enrollment process as prescribed by the
Committee.  An eligible Employee may
authorize payroll deductions at the rate of any whole percentage of the
Employee’s Compensation, not to exceed ten percent (10%) of the Employee’s
Compensation.  All payroll deductions may
be held by the Corporation and commingled with its other corporate funds where
administratively appropriate.  No
interest shall be paid or credited to the Participant with respect to such payroll
deductions.  The Corporation shall maintain
a separate bookkeeping account for each Participant under the Plan and the
amount of each Participant’s payroll deductions shall be credited to such
account.  A Participant may not make any
additional payments into such account.

 

5.2                                 Under procedures
established by the Committee, a Participant may withdraw from the Plan during a
Purchase Period, by completing and filing a new payroll deduction authorization
and Plan enrollment form with the Corporation or by following electronic or
other procedures prescribed by the Committee, prior to the fifth business day
preceding the Purchase Date. If a Participant withdraws from the Plan during a
Purchase Period, his or her accumulated payroll deductions will be refunded to
the Participant without interest.  The
Committee may establish rules limiting the frequency with which
Participants may withdraw and re-enroll in the Plan and may impose a waiting
period on Participants wishing to re-enroll following withdrawal.

 

5.3                                 A Participant may
change his or her rate of payroll deductions at any time by filing a new
payroll deduction authorization and Plan enrollment form or by following
electronic or other procedures prescribed by the Committee.  If a Participant has not followed such
procedures to change the rate of payroll deductions, the rate of payroll
deductions shall continue at the originally elected rate throughout the
Purchase Period and future Purchase Periods (including Purchase Periods of
subsequent Offering Periods).  In
accordance with Section 423(b)(8) of the Code, the Committee may
reduce a Participant’s payroll deductions to zero percent (0%) at any time
during a Purchase Period.

 

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6.                                      TERMINATION
OF EMPLOYMENT.

 

In the event any Participant terminates employment with the Corporation
or any of its Designated Subsidiaries for any reason (including death) prior to
the expiration of a Purchase Period, the Participant’s participation in the
Plan shall terminate and all amounts credited to the Participant’s account
shall be paid to the Participant or, in the case of death, to the Participant’s
heirs or estate, without interest. 
Whether a termination of employment has occurred shall be determined by
the Committee.  The Committee may also
establish rules regarding when leaves of absence or changes of employment
status will be considered to be a termination of employment, including rules regarding
transfer of employment among Designated Subsidiaries, Subsidiaries and the
Corporation, and the Committee may establish termination of employment
procedures for this Plan which are independent of similar rules established
under other benefit plans of the Corporation and its Subsidiaries.

 

7.                                      OFFERING.

 

7.1                                 Subject
to adjustment as set forth in Section 10, the maximum number of shares of
Common Stock which may be issued pursuant to the Plan shall be twenty-five (25)
million shares plus an annual increase to be added on the first day of each
fiscal year of the Corporation beginning in 2001, equal to one percent (1%) of
the outstanding shares of the Corporation on such date or a lesser amount
determined by the Committee, provided that the maximum number of shares of
Common Stock that may be issued pursuant to the Plan shall be seventy-five (75)
million.  If, on a given Purchase Date,
the number of shares with respect to which options are to be exercised exceeds
the number of shares then available under the Plan, the Corporation shall make
a pro rata allocation of the shares remaining available for purchase in as
uniform a manner as shall be practicable and as it shall determine to be
equitable.

 

7.2                                 Each
Purchase Period shall be determined by the Committee.  Unless otherwise determined by the Committee,
the Plan will operate with successive six (6) month Purchase Periods
commencing at the beginning of each fiscal year half (November 1 and May 1).  The Committee shall have the power to change
the duration of future Purchase Periods, without Shareholder approval, and
without regard to the expectations of any Participants.

 

7.3                                 Each
eligible Employee who has elected to participate as provided in Section 5.1
shall be granted an option to purchase that number of whole and fractional
shares of Common Stock (not to exceed 5,000 shares) which may be purchased with
the payroll deductions accumulated on behalf of such Employee during each
Purchase Period at the purchase price specified in Section 7.4 below,
subject to the additional limitation that no Employee participating in the Section 423
Plan shall be granted an option to purchase Common Stock under the Plan at a
rate which exceeds U.S. twenty-five thousand dollars (U.S. $25,000) of the Fair
Market Value of such Common Stock (determined at the time such option is granted)
for each calendar year in which such 

 

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option is outstanding at any time. 
The foregoing sentence shall be interpreted so as to comply with Code Section 423(b)(8).

 

7.4                                 The
Committee has the right to establish that the Purchase Price under each option
shall be the lower of: (i) a percentage (not less than eighty-five percent
(85%)) established by the Committee (“Designated Percentage”) of the Fair
Market Value of the Common Stock on the Entry Date on which an option is
granted, or (ii) the Designated Percentage of the Fair Market Value on the
Purchase Date on which the Common Stock is purchased.  The Committee may change the Designated
Percentage with respect to any future Offering Period, but not below
eighty-five percent (85%), and the Committee may determine with respect to any
prospective Offering Period that the option price shall be the Designated
Percentage of the Fair Market Value of the Common Stock on the Purchase Date.  Notwithstanding the foregoing, however, unless
the Committee exercises its discretion to change the manner in which the
Purchase Price is determined, with respect to any Offering Period commencing on
or after November 1, 2008, the Purchase Price shall equal eighty-five
percent (85%) of the Fair Market Value of a share of Common Stock on each
Purchase Date.

 

8.                                      PURCHASE
OF STOCK.

 

Upon the expiration of each Purchase Period, a Participant’s option
shall be exercised automatically for the purchase of that number of whole and
fractional shares of Common Stock which the accumulated payroll deductions credited
to the Participant’s account at that time shall purchase at the applicable
price specified in Section 7.4. 
Notwithstanding the foregoing, the Corporation or its designee may make
such provisions and take such action as it deems necessary or appropriate for
the withholding of taxes and/or social insurance which the Corporation or its
Designated Subsidiary is required by law or regulation of any governmental
authority to withhold.  Each Participant,
however, shall be responsible for payment of all individual tax liabilities
arising under the Plan.

 

9.                                      PAYMENT
AND DELIVERY.

 

As soon as practicable after the exercise of an option, the Corporation
shall deliver to the Participant a record of the Common Stock purchased and the
balance of any amount of payroll deductions credited to the Participant’s
account not used for the purchase, except as specified below.  The Committee may permit or require that
shares be deposited directly with a broker designated by the Committee or to a
designated agent of the Corporation, and the Committee may utilize electronic
or automated methods of share transfer. 
The Committee may require that shares be retained with such broker or
agent for a designated period of time and/or may establish other procedures as
it deems appropriate to permit tracking of disqualifying dispositions of such
shares or for other purposes determined by the Committee.  The Corporation shall retain the amount of
payroll deductions used to purchase Common Stock as full payment for the Common
Stock and the Common Stock shall then be fully paid and non-assessable.  No Participant shall have any voting,
dividend, or other Shareholder

 

6

 

rights with respect to shares subject to any option granted under the
Plan until the shares subject to the option have been purchased and delivered
to the Participant as provided in this Section 9.

 

10.                               RECAPITALIZATION.

 

If after the grant of an option, but prior to the purchase of Common
Stock under the option, there is any increase or decrease in the number of
outstanding shares of Common Stock because of a stock split, stock dividend,
combination or recapitalization of shares subject to options, the number of
shares to be purchased pursuant to an option, the price per share of Common
Stock covered by an option and the maximum number of shares specified in Section 7.1
may be appropriately adjusted by the Board, and the Board shall take any
further actions which, in the exercise of its discretion, may be necessary or
appropriate under the circumstances.

 

The Board’s determinations under this Section 10
shall be conclusive and binding on all parties.

 

11.                               MERGER,
LIQUIDATION, OTHER CORPORATION TRANSACTIONS.

 

In the event of the proposed liquidation or
dissolution of the Corporation, the Offering Period will terminate immediately
prior to the consummation of such proposed transaction, unless otherwise
provided by the Board in its sole discretion, and all outstanding options shall
automatically terminate and the amounts of all payroll deductions will be
refunded without interest to the Participants.

 

In the event of a proposed sale of all or
substantially all of the assets of the Corporation, or the merger or
consolidation of the Corporation with or into another corporation, then in the
sole discretion of the Board, (1) each option shall be assumed or an
equivalent option shall be substituted by the successor corporation or parent
or subsidiary of such successor corporation, (2) a date established by the
Board on or before the date of consummation of such merger, consolidation or
sale shall be treated as a Purchase Date, and all outstanding options shall be
exercised on such date, or (3) all outstanding options shall terminate and
the accumulated payroll deductions will be refunded without interest to the
Participants.

 

12.                               TRANSFERABILITY.

 

Options granted to Participants may not be
voluntarily or involuntarily assigned, transferred, pledged, or otherwise
disposed of in any way, and any attempted assignment, transfer, pledge, or
other disposition shall be null and void and without effect.  If a Participant in any manner attempts to
transfer, assign or otherwise encumber his or her rights or interests under the
Plan, other than as permitted by the Code, such act shall be treated as an
election by the Participant to discontinue participation in the Plan pursuant
to Section 5.2.

 

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13.                               AMENDMENT
OR TERMINATION OF THE PLAN.

 

13.1                           The
Plan shall continue until November 1, 2020 unless otherwise terminated
in accordance with Section 13.2.

 

13.2                           The
Board may, in its sole discretion, insofar as permitted by law, terminate or
suspend the Plan, or revise or amend it in any respect whatsoever, except that,
without approval of the Shareholders, no such revision or amendment shall
materially increase the number of shares subject to the Plan, other than an
adjustment under Section 10 of the Plan. 
Effective November 1, 2008, the Board has delegated its powers
under this Section 13.2 to the Committee unless and until the Board
revokes such delegation.

 

14.                               ADMINISTRATION.

 

The Board shall appoint a Committee consisting of at least two members
who will serve for such period of time as the Board may specify and whom the
Board may remove at any time.  The
Committee will have the authority and responsibility for the day-to-day
administration of the Plan, the authority and responsibility specifically
provided in this Plan and any additional duty, responsibility and authority
delegated to the Committee by the Board, which may include any of the functions
assigned to the Board in this Plan.  The
Committee may delegate to one or more individuals the day-to-day administration
of the Plan.  The Committee shall have
full power and authority to promulgate any rules and regulations which it
deems necessary for the proper administration of the Plan, to interpret the
provisions and supervise the administration of the Plan, to make factual
determinations relevant to Plan entitlements and to take all action in
connection with administration of the Plan as it deems necessary or advisable,
consistent with the delegation from the Board. 
Decisions of the Board and the Committee shall be final and binding upon
all participants.  Any decision reduced
to writing and signed by a majority of the members of the Committee shall be
fully effective as if it had been made at a meeting of the Committee duly
held.  The Corporation shall pay all
expenses incurred in the administration of the Plan.  No Board or Committee member shall be liable
for any action or determination made in good faith with respect to the Plan or
any option granted hereunder.

 

15.                               COMMITTEE
RULES FOR FOREIGN JURISDICTIONS.

 

The Committee may adopt rules or procedures relating to the
operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures. 
Without limiting the generality of the foregoing, the Committee is
specifically authorized to adopt rules and procedures regarding handling
of payroll deductions, payment of interest, conversion of local currency,
payroll tax, withholding procedures and handling of stock certificates which
vary with local requirements.

 

The Committee may also adopt sub-plans applicable to particular
Subsidiaries or locations, which sub-plans may be designed to be outside the
scope of Code Section   

 

8

 

423. The rules of such sub-plans may take precedence over other
provisions of this Plan, with the exception of Section 7.1, but unless
otherwise superseded by the terms of such sub-plan, the provisions of this Plan
shall govern the operation of such sub-plan.

 

16.                               SECURITIES
LAWS REQUIREMENTS.

 

The Corporation shall not be under any obligation to issue Common Stock
upon the exercise of any option unless and until the Corporation has determined
that: (i) it and the Participant have taken all actions required to
register the Common Stock under the Securities Act of 1933, or to perfect an
exemption from the registration requirements thereof; (ii) any applicable
listing requirement of any stock exchange on which the Common Stock is listed
has been satisfied; and (iii) all other applicable provisions of state,
federal and applicable foreign law have been satisfied.

 

17.                               GOVERNMENTAL
REGULATIONS.

 

This Plan and the Corporation’s obligation to
sell and deliver shares of its stock under the Plan shall be subject to the
approval of any governmental authority required in connection with the Plan or
the authorization, issuance, sale, or delivery of stock hereunder.

 

18.                               NO
ENLARGEMENT OF EMPLOYEE RIGHTS.

 

Nothing contained in this Plan shall be
deemed to give any Employee the right to be retained in the employ of the
Corporation or any Designated Subsidiary or to interfere with the right of the
Corporation or Designated Subsidiary to discharge any Employee at any time.

 

19.                               GOVERNING
LAW.

 

This Plan shall be governed by Delaware law,
without regard to that State’s choice of law rules.

 

20.                               EFFECTIVE
DATE.

 

This Plan became effective November 1, 2000.

 

21.                               REPORTS.

 

Individual accounts shall be maintained for
each Participant in the Plan.  Statements
of account shall be given to Participants at least annually.

 

22.                               DESIGNATION
OF BENEFICIARY FOR OWNED SHARES.

 

With respect to shares of Common Stock
purchased by the Participant pursuant to the Plan and held in an account
maintained by the Corporation or its assignee on the

 

9

 

Participant’s behalf, the
Participant may be permitted to file a written designation of beneficiary.  The Participant may change such designation
of beneficiary at any time by written notice. 
Subject to local legal requirements, in the event of a Participant’s
death, the Corporation or its assignee shall deliver such shares of Common
Stock to the designated beneficiary.

 

Subject to local law, in the event of the
death of a Participant and in the absence of a beneficiary validly designated
who is living at the time of such Participant’s death, the Corporation shall
deliver such shares of Common Stock to the executor or administrator of the
estate of the Participant, or if no such executor or administrator has been
appointed (to the knowledge of the Corporation), the Corporation in its sole
discretion, may deliver (or cause its assignee to deliver) such shares of Common
Stock to the spouse, dependent or relative of the Participant, or if no spouse,
dependent or relative is known to the Corporation, then to such other person as
the Corporation may determine.

 

10

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