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Exhibit 4.1  

 
 

CIBER, INC.
  SCB EMPLOYMENT INDUCEMENT AWARD PLAN
  (Effective as of March 1, 2004)    
    

SECTION 1

INTRODUCTION  

        1.1   Establishment. CIBER, Inc. hereby establishes the CIBER, Inc. SCB Employment Inducement Award Plan (the
"Plan"). 

        1.2   Purpose. The purpose of the Plan is to promote the long-term success of the Company and the creation of
stockholder value by providing new Employees who join the Company as a result of the merger with SCB Computer Technology, Inc. ("SCB") with an appropriate and material inducement to accept
employment. The Plan seeks to achieve this purpose by providing for Awards in the form of Options. All Awards under the Plan are intended to qualify as "employment inducement awards" within the
meaning of Section 303A.08 of the New York Stock Exchange's Listed Company Manual or any successor provision. 

SECTION 2

DEFINITIONS  

        2.1   Definitions. The following terms shall have the meanings set forth below: 

        (a)   "Administrator" means (i) the Board, or (ii) one or more committees of the Board to whom the Board has
delegated all or part of its authority under this Plan. Any committee under clause (ii) hereof which makes grants to "officers" of the Company (as that term is defined in
Rule 16a-1(f) promulgated under the Exchange Act) shall be composed of not less than the minimum number of persons from time to time required by
Rule 16b-3, each of whom, to the extent necessary to comply with Rule 16b-3 only, shall be a Nonemployee Director. For purposes of the preceding provisions, if
one or more members of the Administrator is not a Nonemployee Director, but recuses himself or herself or abstains from voting with respect to a particular action taken by the Administrator, then the
Administrator, with respect to the action, will be deemed to consist only of the members of the Administrator who have not recused themselves or abstained from voting. 

        (b)   "Affiliated Corporation" means (i) any corporation or other entity (including but not limited to a partnership)
that directly, or through one or more intermediaries controls, is controlled by, or is under common control with, CIBER, Inc., or (ii) any entity in which the Company has a significant
equity interest, as determined by the Administrator. 

        (c)   "Award" means a grant made under this Plan in the form of Options. 

        (d)   "Board" means the board of directors of the Company. 

        (e)   "Company" means CIBER, Inc., a Delaware corporation, together with its Affiliated Corporations except where the
context otherwise requires. 

        (f)    "Director" means a member of the Board. 

        (g)   "Effective Date" means March 1, 2004. 

        (h)   "Employee" means any person who is a full or part-time employee (including, without limitation, an officer or
Director who is also an employee but not a Nonemployee Director) of the Company or any Affiliated Corporation or any division thereof. The term also includes future employees who have received a
formal offer of employment. 

        (i)    "Exchange Act" shall mean the Securities Exchange Act of 1934, as amended.

 

        (j)    "Executive Officer" shall mean an officer as defined in Exchange Act Rule 16a-1(f) and any
person deemed to be an "executive officer" within the scope of Section 13(k) of the Exchange Act. 

        (k)   "Fair Market Value" means, as of any date, the value of the Stock determined as follows: 

        (i)    If
the Stock is listed on any established stock exchange or a national market system, its Fair Market Value shall be the closing sales price for such Stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other
source as the Administrator deems reliable; 

        (ii)   If
the Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share shall be the mean between the
high bid and low asked prices for the Stock on the last market trading day prior to the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems
reliable; 

        (iii)  In
the absence of an established market for the Stock, the Fair Market Value shall be determined in good faith by the Administrator. 

        (l)    "Internal Revenue Code" means the Internal Revenue Code of 1986, as it may be amended from time to time, and the rules
and regulations promulgated thereunder. 

        (m)  "Nonemployee Director" means a Director who is a "nonemployee director" within the meaning of
Rule 16b-3 promulgated under the Exchange Act. 

        (n)   "Option" means a right to purchase Stock at a stated price for a specified period of time. 

        (o)   "Option Price" means the price at which shares of Stock subject to an Option may be purchased, determined in accordance
with Section 7.2(b). 

        (p)   "Participant" means an Employee designated by the Administrator from time to time during the term of the Plan to receive
one or more Awards under the Plan. 

        (q)   "Plan Year" means each 12-month period beginning January 1 and ending the following
December 31, except that for the first year of the Plan it shall begin on the Effective Date and extend to December 31 of that year. 

        (r)   "Share" means a share of Stock. 

        (s)   "Stock" means the common stock, $.01 par value, of the Company. 

        (t)    "Stock Option Agreement" means a written document delivered to the recipient of an Option specifying the terms of such
Option. Such document must specify, at a minimum, the number of Shares subject to the Option, the exercise price, any vesting schedule, and any terms which vary from the default provisions provided in
the Plan. Any such document must be signed by the Administrator or an Executive Officer of the Company. Such document need not be signed by the Option recipient. 

        2.2   Gender and Number. Except when otherwise indicated by the context, the masculine gender shall also include the feminine
gender, and the definition of any term herein in the singular shall also include the plural.

 

SECTION 3

PLAN ADMINISTRATION  

        3.1   Authority of Administrator. The Plan shall be administered by the Administrator. Subject to the terms of the Plan and
applicable law, and in addition to other express powers and authorizations conferred on the Administrator by the Plan, the Administrator shall have full power and authority to: (i) designate
Participants; (ii) determine the type or types of Awards to be granted to eligible Participants; (iii) determine the number of Shares to be covered by, or with respect to which payments,
rights, or other matters are to be calculated in connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine whether, to what extent, and under what
circumstances Awards may be settled or exercised in cash, Shares, other securities, or other property, or canceled, forfeited, or suspended and the method or methods by which Awards may be settled,
exercised, canceled, forfeited, or suspended; (vi) determine whether, to what extent, and under what circumstances cash, shares, other securities, other property, and other amounts payable with
respect to an Award shall be deferred either automatically or at the election of the holder thereof or of the Administrator; (vii) determine whether, to what extent, and under what
circumstances to accelerate the exercisability of any Award; (viii) correct any defect, supply any omission, reconcile any inconsistency and otherwise interpret and administer the Plan and any
instrument or agreement relating to the Plan or any Award hereunder; (ix) establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for
the proper administration of the Plan; and (x) make any other determination and take any other action that the Administrator deems necessary or desirable for the administration of the Plan. To
the extent necessary or appropriate, the Administrator may adopt sub-plans consistent with the Plan to conform to applicable state or foreign securities or tax laws. 

        3.2   Determinations Under the Plan. Unless otherwise expressly provided in the Plan all designations, determinations,
interpretations, and other decisions under or with respect to the Plan or any Award shall be within the sole discretion of the Administrator, may be made at any time and shall be final, conclusive,
and binding upon all persons, including the Company, any Affiliated Corporation, any Participant, any holder or beneficiary of any Award, and any stockholder. No member of the Administrator shall be
liable, in the absence of bad faith, for any act or omission with respect to his or her services as an Administrator. Service on a committee acting as the Administrator shall constitute service as a
Director of the Company entitling members to any indemnification of liability benefits applicable to Directors with respect to their services as Administrator. 

        3.3   Delegation of Certain Responsibilities. The Administrator may, in its sole discretion, delegate to appropriate officers
of the Company the administration of the Plan under this Section 3; provided, however, that no such delegation by the Administrator shall be made (i) if such delegation would not be
permitted under applicable law or (ii) with respect to the administration of the Plan as it affects Executive Officers or Directors of the Company, and provided further that the Administrator
may not delegate its authority to correct errors, omissions or inconsistencies in the Plan. Subject to the above limitations, the Administrator may delegate to the Chief Executive Officer of the
Company its authority under this Section 3 to grant Awards to Employees who are not Executive Officers or Directors of the Company. All authority delegated by the Administrator under this
Section 3.3 shall be exercised in accordance with the provisions of the Plan and any guidelines for, conditions on, or limitations to the exercise of such authority that may from time to time
be established by the Administrator. 

SECTION 4

STOCK SUBJECT TO THE PLAN  

        4.1   Number of Shares. Subject to adjustment as provided in Section 4.3, 300,000 Shares are initially authorized for
issuance under the Plan in accordance with the provisions of the Plan and subject to such restrictions or other provisions as the Administrator may from time to time deem necessary. Shares which may
be issued upon the exercise of Options shall be applied to reduce the

 
maximum number of Shares remaining available for use under the Plan. The Company shall at all times during the term of the Plan and while any Options are outstanding retain as authorized and unissued
Stock, or as treasury Stock, at least the number of Shares from time to time required under the provisions of the Plan, or otherwise assure itself of its ability to perform its obligations hereunder. 

        4.2   Unused and Forfeited Stock. Any Shares that are subject to an Award under this Plan which are not used because the terms
and conditions of the Award are not met, including any Shares that are subject to an Option which expires or is terminated for any reason, any Shares which are used for full or partial payment of the
purchase price of Shares with respect to which an Option is exercised and any Shares retained by the Company pursuant to Section 13.2 shall automatically become available for use under the
Plan. 

        4.3   Adjustments for Stock Split, Stock Dividend, etc. If the Company shall at any time increase or decrease the number of its
outstanding Shares of Stock or change in any way the rights and privileges of such Shares by means of the payment of a stock dividend or any other distribution upon such Shares payable in Stock, or
through a stock split, subdivision, consolidation, combination, reclassification or recapitalization involving the Stock, then in relation to the Stock that is affected by one or more of the above
events, the numbers, rights and privileges of (i) the shares of Stock as to which Awards may be granted under the Plan, and (ii) the Shares of Stock then included in each outstanding
Option granted hereunder, shall be increased, decreased or changed in like manner as if they had been issued and outstanding, fully paid and nonassessable at the time of such occurrence. 

        4.4   Dividend Payable in Stock of Another Corporation, etc. Except as set forth in Section 4.5 below, if the Company
shall at any time pay or make any dividend or other distribution upon the Stock payable in securities of another corporation or other property (except money or Stock), a proportionate part of such
securities or other property shall be set aside and delivered to any Participant then holding an Award for the particular type of Stock for which the dividend or other distribution was made, upon
exercise thereof. Prior to the time that any such securities or other property are delivered to a Participant in accordance with the foregoing, the Company shall be the owner of such securities or
other property and shall have the right to vote the securities, receive any dividends payable on such securities, and in all other respects shall be treated as the owner. If securities or other
property which have been set aside by the Company in accordance with this Section are not delivered to a Participant because an Award is not exercised, then such securities or other property
shall remain the property of the Company and shall be dealt with by the Company as it shall determine in its sole discretion. 

        4.5   Spin-offs. If the Company shall at any time pay or make any dividend or other distribution upon the Stock in
the nature of a spin-off, for example a dividend payable in securities of an Affiliated Corporation, the Administrator shall in its discretion determine what changes are equitably required
to outstanding Awards to effect the spin-off, including but not limited to treating Awards of Employees remaining with the Company differently from Awards to Employees of the newly
spun-off entity, substituting Awards for Company Stock for Awards of stock in the spun-off entity, and allowing either the Company, the spun-off entity or both to
hold the securities or property set aside for Participants. 

        4.6   Other Changes in Stock. In the event there shall be any change, other than as specified in Sections 4.3, 4.4 and
4.5, in the number or kind of outstanding shares of Stock or of any stock or other securities into which the Stock shall be changed or for which it shall have been exchanged, and if the Administrator
shall in its discretion determine that such change equitably requires an adjustment in the number or kind of Shares subject to outstanding Awards or which have been reserved for issuance pursuant to
the Plan but are not then subject to an Award, then such adjustments shall be made by the Administrator and shall be effective for all purposes of the Plan and on each outstanding Award that involves
the particular type of stock for which a change was effected. 

        4.7   General Adjustment Rules. If any adjustment or substitution provided for in this Section 4 shall result in the
creation of a fractional Share under any Award, the Company shall, in lieu of selling or

 
otherwise issuing such fractional Share, pay to the Participant a cash sum in an amount equal to the product of such fraction multiplied by the Fair Market Value of a Share on the date the fractional
Share would otherwise have been issued. In the case of any such substitution or adjustment affecting an Option, the total Option Price for the shares of Stock then subject to an Option shall remain
unchanged but the Option Price per share under each such Option shall be equitably adjusted by the Administrator to reflect the greater or lesser number of shares of Stock or other securities into
which the Stock subject to the Option may have been changed. 

        4.8   Determination by Administrator. Adjustments under this Section 4 shall be made by the Administrator, whose
determinations with regard thereto shall be final and binding upon all persons. 

SECTION 5

REORGANIZATION OR LIQUIDATION  

        In the event that the Company is merged or consolidated with another corporation (other than a merger or consolidation in which the Company is the continuing
corporation and which does not result in any reclassification or change of outstanding Shares), or if all or substantially all of the assets or more than 50% of the outstanding voting stock of the
Company is acquired by any other corporation, business entity or person (other than a sale or conveyance in which the Company continues as a holding company of an entity or entities that conduct the
business or businesses formerly conducted by the Company), or in case of a reorganization (other than a reorganization under the United States Bankruptcy Code) or liquidation of the Company, and if
the provisions of Section 8 do not apply, the Administrator, or the board of directors of any corporation assuming the obligations of the Company, shall, have the power and discretion to
prescribe the terms and conditions for the exercise, or modification, of any outstanding Awards granted hereunder. By way of illustration, and not by way of limitation, the Administrator may provide
for the complete or partial acceleration of the dates of exercise of the Options, or may provide that such Options will be exchanged or converted into options to acquire securities of the surviving or
acquiring corporation, or may provide for a payment or distribution in respect of outstanding Options (or the portion thereof that is currently exercisable) in cancellation thereof. The Administrator
may provide that Awards granted hereunder must be exercised in connection with the closing of such transaction, and that if not so exercised such Awards will expire. Any such determinations by the
Administrator may be made generally with respect to all Participants, or may be made on a case-by-case basis with respect to particular Participants. The provisions of this
Section 5 shall not apply to any transaction undertaken for the purpose of reincorporating the Company under the laws of another jurisdiction, if such transaction does not materially affect the
beneficial ownership of the Company's capital stock. 

SECTION 6

PARTICIPATION  

        Participants in the Plan shall be those Employees who are former employees of SCB and its affiliates that, in the judgment of the Administrator, during the term
of their incentive arrangement will perform, important services in the management, operation and development of the Company, and are expected to significantly contribute, to the achievement of
long-term corporate economic objectives of the Company and who qualify to receive "employment inducement awards" within the meaning of Section 303A.08 of the New York Stock
Exchange's Listed Company Manual or any successor provision. Participants may be granted from time to time one or more Awards; provided, however, that the grant of each such Award shall be separately
approved by the Administrator, receipt of one such Award shall not result in automatic receipt of any other Award, and written notice shall be given to such person, specifying the terms, conditions,
rights and duties related thereto. Each Participant shall enter into an agreement with the Company, in such form as the Administrator shall determine and which is consistent with the provisions of the
Plan, specifying such terms, conditions, rights and duties.

 
Awards shall be deemed to be granted as of the date specified in the grant resolution of the Administrator, which date shall be the date of any related agreement with the Participant. In the event of
any inconsistency between the provisions of the Plan and any such agreement entered into hereunder, the provisions of the Plan shall govern. 

SECTION 7

STOCK OPTIONS  

        7.1   Grant of Options to Employees. Coincident with or following designation for participation in the Plan, a Participant may
be granted one or more Options. In no event shall the exercise of one Option affect the right to exercise any other Option or affect the number of Shares for which any other Option may be exercised. 

        7.2   Option Agreements. Each Option granted under the Plan shall be evidenced by a Stock Option Agreement which shall be
delivered by the Company to the Participant to whom the Option is granted (the "Option Holder"). Except as otherwise set forth in a Stock Option Agreement delivered to the Participant, each Option
shall be governed by the following terms and conditions, as well as such other terms and conditions not inconsistent therewith as the Administrator may consider appropriate in each case. 

        (a)   Number of Shares. Each Stock Option Agreement shall state that it covers a specified number of Shares, as determined by
the Administrator. 

        (b)   Price. The price at which each Share covered by an Option may be purchased shall be determined in each case by the
Administrator and set forth in the Stock Option Agreement. The Option Price for each Share covered by an Option may be granted at any price less than Fair Market Value, in the sole discretion of the
Administrator. 

        (c)   Duration of Options. The Administrator shall determine the period of time within which the Option may be exercised by the
Option Holder (the "Option Period"). The Option Period must expire, in all cases, not more than ten years from the date an Option is granted. Any Option Period determined by the Administrator
to be shorter than the ten-year term set forth above, must be set forth in a Stock Option Agreement. Each Stock Option Agreement shall also state the periods of time, if any, as determined
by the Administrator, when incremental portions of each Option shall vest. If any Option is not exercised during its Option Period, it shall be deemed to have been forfeited and of no further force or
effect. 

        (d)   Termination of Service, Retirement, Death or Disability. Except as otherwise determined by the Administrator, each Option
shall be governed by the following terms with respect to the exercise of the Option if an Option Holder ceases to be an Employee: 

        (i)    If
the Option Holder ceases to be an Employee within the Option Period for cause, as determined by the Company, the Option shall thereafter be void for all purposes. As
used in this Section 7.2(d), "cause" shall mean (A) if applicable, "cause" as defined on a written contract between the Option Holder and the Company, or (B) in any other case, a
gross violation, as determined by the Company, of the Company's established policies and procedures. The effect of this Section 7.2(d)(i) shall be limited to determining the consequences
of a termination, and nothing in this Section 7.2(d)(i) shall restrict or otherwise interfere with the Company's discretion with respect to the termination of an Employee. 

        (ii)   If
the Option Holder ceases to be an Employee with the Company in a manner determined by the Board, in its sole discretion, to constitute retirement (which
determination shall be communicated to the Option Holder within 10 days of such termination), the Option may be exercised by the Option Holder, or in the case of death, by the persons specified
in clause (iii) of this Section 7.2(d), within twelve months following his or her retirement,

 
provided that such exercise must occur within the Option Period but not thereafter. In any such case, the Option may be exercised only as to the Shares as to which the Option had become exercisable on
or before the date the Option Holder ceases to be an Employee. 

        (iii)  If
the Option Holder dies (A) while he or she is an Employee, (B) within the three-month period referred to in clause (v) below, or
(C) within the three or twelve-month period referred to in clause (ii) above, the Option may be exercised by those entitled to do so under the Option Holder's will or by the laws
of descent and distribution within twelve months following the Option Holder's death (provided that such exercise must occur within the Option Period), but not thereafter. In any such case, the
Option may be exercised only as to the Shares as to which the Option had become exercisable on or before the date the Option Holder ceased to be an Employee. 

        (iv)  If
the Option Holder becomes disabled (within the meaning of Section 22(e) of the Internal Revenue Code) while an Employee or within three-month period referred
to in clause (v) below or within the twelve-month period following his or her retirement as provided in clause (ii) above, Options held by the Option Holder may be
exercised by the Option Holder within twelve months following the date of the Option Holder's disability (provided that such exercise must occur within the Option Period), but not thereafter.
In any such case, the Option may be exercised only as to the Shares as to which the Option had become exercisable on or before the date the Option Holder ceased to be an Employee. 

        (v)   If
the Option Holder ceases to be an Employee within the Option Period for any reason other than cause, retirement as provided in clause (ii) above, disability as
provided in clause (iv) above or the Option Holder's death, the Option may be exercised by the Option Holder within three months following the date of such cessation (provided
that such exercise must occur within the Option Period), but not thereafter. In any such case, the Option may be exercised only as to the Shares as to which the Option had become exercisable on or
before the date that the Option Holder ceases to be an Employee 

        (e)   Exercise, Payments, etc.

        (i)    The
method for exercising each Option granted under the Plan shall be by delivery to the Corporate Secretary of the Company or an agent designated pursuant to
Section 14 of a notice specifying the number of Shares with respect to which such Option is exercised and payment of the Option Price. Such notice shall be in a form satisfactory to the
Administrator and shall specify the particular Option (or portion thereof) which is being exercised and the number of Shares with respect to which the Option is being exercised. The exercise of the
Option shall be deemed effective upon receipt of such notice by the Corporate Secretary or a designated agent and payment to the Company. The purchase of such Stock shall be deemed to take place at
the principal office of the Company upon delivery of such notice, at which time the purchase price of the Stock shall be paid in full by any of the methods or any combination of the methods set forth
in (ii) below. A properly executed certificate or certificates representing the Stock shall be issued by the Company and delivered to the Option Holder. If certificates representing Stock are
used to pay all or part of the Option Price, separate certificates for the same number of shares of Stock shall be issued by the Company and delivered to the Option Holder representing each
certificate used to pay the Option Price, and an additional certificate shall be issued by the Company and delivered to the Option Holder representing the additional shares, in excess of the Option
Price, to which the Option Holder is entitled as a result of the exercise of the Option.

 

        (ii)   The
exercise price shall be paid by any of the following methods or any combination of the following methods: 

        (A)  in
cash; 

        (B)  by
cashier's check payable to the order of the Company; 

        (C)  if
authorized by the Administrator, in its sole discretion, by delivery to the Company of certificates representing the number of Shares then owned by the Option Holder,
the Fair Market Value of which equals the purchase price of the Stock purchased pursuant to the Option, properly endorsed for transfer to the Company; provided however, that Shares used for this
purpose must have been held by the Option Holder for more than six months; and provided further that the Fair Market Value of any Shares delivered in payment of the purchase price upon exercise
of the Option shall be the Fair Market Value as of the exercise date, which shall be the date of delivery of the certificates for the Stock used as payment of the Option Price; 

        (D)  if
authorized by the Administrator, in its sole discretion, and subject to applicable law, including Section 402 of the Sarbanes-Oxley Act, by delivery by a
Participant to the Company of a properly executed notice of exercise together with irrevocable instructions to a broker to deliver to the Company promptly the amount of the proceeds of the sale of all
or a portion of the Stock or of a loan from the broker to the Option Holder necessary to pay the exercise price; or 

        (E)  if
authorized by the Administrator, in its sole discretion, any combination of these methods. 

        (iii)  In
the sole discretion of the Administrator, the Company may, subject to applicable law, including Section 402 of the Sarbanes-Oxley Act, guaranty a third-party
loan obtained by a Participant to pay part or all of the Option Price of the Shares provided that such loan or the Company's guaranty is secured by the Shares and the loan bears interest at a market
rate. 

        (f)    Date of Grant. An option shall be considered as having been granted on the date specified in the grant resolution of the
Administrator. 

        (g)   Adjustment of Options. Subject to the limitations contained in Sections 7 and 12, the Administrator may make any
adjustment in the Option Price, the number of shares subject to, or the terms of, an outstanding Option and a subsequent granting of an Option by amendment or by substitution of an outstanding Option.
Such amendment, substitution, or re-grant may result in terms and conditions (including Option Price, number of shares covered, vesting schedule or exercise period) that differ from the
terms and conditions of the original Option. This provision specifically authorizes the Administrator to reprice outstanding Options. The Administrator may not, however, adversely affect the rights of
any Participant to previously granted Options without the consent of such Participant. If such action is affected by amendment, the effective date of such amendment shall be the date of the original
grant. 

SECTION 8

CHANGE IN CONTROL  

        8.1   Options. In the event of a change in control of the Company as defined in Section 8.2, then the Administrator may,
in its sole discretion, without obtaining stockholder approval, to the extent permitted in Section 12, take any or all of the following actions: (a) accelerate the exercise dates of any
outstanding Options or make all such Options fully vested and exercisable; (b) grant a cash bonus award to any Option Holder in an amount necessary to pay the Option Price of all or any portion
of the Options then held by such Option Holder; (c) pay cash to any or all Option Holders in exchange

 
for the cancellation of their outstanding Options in an amount equal to the difference between the Option Price of such Options and the greater of the tender offer price for the underlying Stock or
the Fair Market Value of the Stock on the date of the cancellation of the Options; and (d) make any other adjustments or amendments to the outstanding Options. 

        8.2   Definition. For purposes of the Plan, a "change in control" shall be deemed to have occurred if: (a) any "person"
or "group" (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act), other than Bobby G. Stevenson or a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or under a trust, the grantor of which is Bobby G. Stevenson, is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of more than 331/3% of the then outstanding voting stock of the Company; or (b) at any time during any period of three consecutive years (not
including any period prior to the Effective Date), individuals who at the beginning of such period constitute the Board (and any new Director whose election by the Board or whose nomination for
election by the Company's stockholders was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of such period or
whose election or nomination for election was previously so approved) cease for any reason to constitute a majority thereof; or (c) the stockholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 80% of the combined voting power of the voting securities of the
Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders approve a plan of complete liquidation of the Company or an agreement for the sale or
disposition by the Company of all or substantially all of the Company's assets. 

SECTION 9

CONTINUATION OF SERVICES; TRANSFERABILITY  

        9.1   Continuation of Services. Nothing contained in the Plan or in any Award granted under the Plan shall confer upon any
Participant any right with respect to the continuation of his or her services as an Employee, or interfere in any way with the right of the Company, subject to the terms of any separate employment or
consulting agreement to the contrary, at any time to terminate such services or to increase or decrease the compensation of the Participant from the rate in existence at the time of the grant of an
Award. Whether an authorized leave of absence, or absence in military or government service, shall constitute a termination of Participant's services as an Employee shall be determined by the
Administrator at the time of such leave in accordance with then current laws and regulations. 

        9.2   Nontransferability. Except as provided in Section 9.3, no right or interest of any Participant in an Award granted
pursuant to the Plan shall be assignable or transferable during the lifetime of the Participant, except (if otherwise permitted under Section 9.4) pursuant to a domestic relations order, either
voluntarily or involuntarily, or be subjected to any lien, directly or indirectly, by operation of law, or otherwise, including execution, levy, garnishment, attachment, pledge or bankruptcy. In the
event of a Participant's death, a Participant's rights and interests in Options shall, if otherwise permitted under Section 9.4, be transferable by testamentary will or the laws of descent and
distribution, and payment of any amounts due under the Plan shall be made to, and exercise of any Options may be made by, the Participant's legal representatives, heirs or legatees. If, in the opinion
of the Administrator, a person entitled to payments or to exercise rights with respect to the Plan is disabled from caring for his or her affairs because of mental condition, physical condition or
age, payment due such person may be made to, and such rights shall be exercised by, such person's guardian, conservator or other legal personal representative upon furnishing the Administrator with
evidence satisfactory to the Administrator of such status. Transfers shall not be deemed to include transfers to the Company or "cashless exercise"

 
procedures with third parties who provide financing for the purpose of (or who otherwise facilitate) the exercise of Awards consistent with applicable laws and the authorization of the Administrator. 

        9.3   Permitted Transfers. Pursuant to conditions and procedures established by the Administrator from time to time, the
Administrator may permit Options to be transferred to, exercised by and paid to certain persons or entities related to a Participant, including but not limited to members of the Participant's
immediate family, charitable institutions, or trusts or other entities whose beneficiaries or beneficial owners are members of the Participant's immediate family and/or charitable institutions. In the
case of initial Awards, at the request of the Participant, the Administrator may permit the naming of the related person or entity as the Award recipient. Any permitted transfer shall be subject to
the condition that the Administrator receive evidence satisfactory to it that the transfer is being made for estate and/or tax planning purposes on a gratuitous or donative basis and without
consideration (other than nominal consideration). 

SECTION 10

GENERAL RESTRICTIONS  

        10.1 Investment Representations. The Company may require any person to whom an Option is granted, as a condition of
exercising such Option, to give written assurances in substance and form satisfactory to the Company and its counsel to the effect that such person is acquiring the Stock subject to the Option or the
Award for his own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Company deems necessary or appropriate in
order to comply with federal and applicable state securities laws. Legends evidencing such restrictions may be placed on the certificates evidencing the Stock. 

        10.2 Compliance with Securities Laws. Each Award shall be subject to the requirement that, if at any time counsel to the
Company shall determine that the listing, registration or qualification of the Shares subject to such Award upon any securities exchange or under any state or federal law, or the consent or approval
of any governmental or regulatory body, is necessary as a condition of, or in connection with, the issuance or purchase of Shares thereunder, such Award may not be accepted or exercised in whole or in
part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Administrator. Nothing herein shall be deemed to require
the Company to apply for or to obtain such listing, registration or qualification. 

        10.3 Stockholder Privileges. No Option Holder shall have any rights as a stockholder with respect to any Shares covered by an
Option until the Option Holder becomes the holder of record of such Stock, and no adjustments shall be made for dividends or other distributions or other rights as to which there is a record date
preceding the date such Option Holder becomes the holder of record of such Stock, except as provided in Section 4. 

SECTION 11

OTHER EMPLOYEE BENEFITS  

        The amount of any compensation deemed to be received by a Participant as a result of the exercise of an Option shall not constitute "earnings" with respect to
which any other benefits of such Participant are determined, including without limitation benefits under any pension, profit sharing, life insurance or salary continuation plan. 

SECTION 12

PLAN AMENDMENT, MODIFICATION AND TERMINATION  

        The Board may at any time terminate, and from time-to-time may amend or modify, the Plan; provided, however, that no amendment or
modification may become effective without approval of the amendment or modification by the stockholders if stockholder approval is required to enable the Plan

 
to satisfy any applicable statutory or regulatory requirements, or if the Company, on the advice of counsel, determines that stockholder approval is otherwise necessary or desirable. 

        No
amendment, modification or termination of the Plan shall in any manner adversely affect any Awards theretofore granted under the Plan, without the consent of the Participant holding
such Awards. 

SECTION 13

WITHHOLDING  

        13.1 Withholding Requirement. The Company's obligations to deliver Shares upon the exercise of an Option, shall be subject to
the Participant's satisfaction of all applicable federal, state and local income and other tax withholding requirements. The Company may defer exercise of an Award unless indemnified by the
Participants to the Administrator's satisfaction against the payment of any such amount. Further, the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any
payment of any kind due to the Participant by the Company. 

        13.2 Withholding with Stock. At the time the Administrator grants an Award, it may, in its sole discretion, grant the
Participant an election to pay all such amounts of tax withholding, or any part thereof, by electing to transfer to the Company, or to have the Company withhold from Shares otherwise issuable to the
Participant, Shares having a value equal to the amount required to be withheld or such lesser amount as may be elected by the Participant. All elections shall be subject to the approval or disapproval
of the Administrator. The value of Shares to be withheld shall be based on the Fair Market Value of the Stock on the date that the amount of tax to be withheld is to be determined (the "Tax Date").
Any such elections by Participants to have Shares withheld for this purpose will be subject to the following restrictions: 

        (a)   All
elections must be made prior to the Tax Date; 

        (b)   All
elections shall be irrevocable; and 

        (c)   If
the Participant is an "officer" or "director" of the Company within the meaning of Section 16 of the Exchange Act, the Participant must satisfy the
requirements of such Section 16 and any applicable rules thereunder with respect to the use of Stock to satisfy such tax withholding obligation. 

SECTION 14

BROKERAGE ARRANGEMENTS  

        The Administrator, in its discretion, may enter into arrangements with one or more banks, brokers or other financial institutions to facilitate the exercise of
Options or the disposition of Shares acquired upon exercise of Options, including, without limitation, arrangements for the simultaneous exercise of Options and sale of the Shares acquired upon such
exercise. 

SECTION 15

NONEXCLUSIVITY OF THE PLAN  

        The adoption of the Plan by the Board shall not be construed as creating any limitations on the power or authority of the Board to adopt such other or additional
incentive or other compensation arrangements of whatever nature as the Board may deem necessary or desirable or preclude or limit the continuation of any other plan, practice or arrangement for the
payment of compensation or fringe benefits to Employees or other persons generally, or to any class or group of Employees or other persons, which the Company or any Affiliated Corporation now has
lawfully put into effect, including, without limitation, any retirement, pension, savings and stock purchase plan, insurance, death and disability benefits and executive short-term
incentive plans.

 

SECTION 16

REQUIREMENTS OF LAW  

        16.1 Requirements of Law. The issuance of Stock and the payment of cash pursuant to the Plan shall be subject to all
applicable laws, rules and regulations. 

        16.2 Rule 16b-3. Transactions under the Plan and within the scope of Rule 16b-3 of the
Exchange Act are intended to comply with all applicable conditions of Rule 16b-3. To the extent any provision of the Plan or any action by the Administrator under the Plan fails to
so comply, such provision or action shall, without further action by any person, be deemed to be automatically amended to the extent necessary to effect compliance with Rule 16b-3;
provided, however, that if such provision or action cannot be amended to effect such compliance, such provision or action shall be deemed null and void to the extent permitted by law and deemed
advisable by the Administrator. 

        16.3 Governing Law. The Plan and all agreements hereunder shall be construed in accordance with and governed by the laws of
the State of Delaware. 

SECTION 17

DURATION OF THE PLAN  

        No Award shall be granted under the Plan after ten years from the Effective Date; provided, however, that any Award theretofore granted may, and the
authority of the Board or the Administrator to amend, alter, adjust, suspend, discontinue, or terminate any such Award or to waive any conditions or rights under any such Award shall, extend beyond
such date. 

Dated:
March 1, 2004 

	

 	
 	

CIBER, Inc.
	

 	
 	

By:	
 	

/s/  MAC J. SLINGERLEND      
 Mac J. Slingerlend

President and Chief Executive Officer

QuickLinks

CIBER, INC. SCB EMPLOYMENT INDUCEMENT AWARD PLAN (Effective as of March 1, 2004)Exhibit
10.68

EXECUTION COPY

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of November 17,
2003 by and between VORNADO REALTY TRUST, a Maryland real estate investment
trust (the “Company”), on the one hand, and Bel Holdings LLC (together with
permitted successors and assigns who acquire Registrable Securities from time
to time, in each case as long as such person is a record holder of any
Registrable Securities, each individually, a “Holder”, and collectively, the
“Holders”) on the other hand.

 

WHEREAS, the Holder is
receiving on the date hereof Series D-10 Preferred Units of limited partnership
interest (“Units”) in Vornado Realty L.P., a Delaware limited partnership (the
“Partnership”);

 

WHEREAS, in connection
therewith, the Company has agreed to grant to the Holder the Registration
Rights (as defined in Section 1 hereof);

 

NOW, THEREFORE, the
parties hereto, in consideration of the foregoing and the mutual covenants and
agreements hereinafter set forth, hereby agree as follows:

 

SECTION 1.         REGISTRATION RIGHTS

 

If
a Holder receives 7.00% Series D-10 Cumulative Redeemable Preferred Shares of
Beneficial Interest, liquidation preference $25.00 per share, of the Company
(“Preferred Shares”) upon redemption of Units (the “Redemption Shares”)
pursuant to the terms of the Second Amended and Restated Agreement of Limited
Partnership of the Partnership, as the same may be amended from time to time
(the “Partnership Agreement”), then, unless such Redemption Shares are issued
to such Holder pursuant to an Issuer Registration Statement as provided in
Section 2 below, such Holder shall be entitled to offer for sale pursuant
to a shelf registration statement, the Redemption Shares, subject to the terms
and conditions set forth in Section 3 hereof (the “Registration Rights”).

 

SECTION 2.         ISSUER REGISTRATION STATEMENT

 

Anything
contained herein to the contrary notwithstanding, in the event that the
Redemption Shares are issued by the Company to a Holder pursuant to an
effective registration statement (an “Issuer Registration Statement”) filed
with the Securities and Exchange Commission (the “Commission”), the Company
shall be deemed to have satisfied all of its registration obligations under
this Agreement with respect to such Holder.

 

SECTION 3.         DEMAND REGISTRATION RIGHTS

 

3.1  (a) 
Registration
Procedure.  Unless such Redemption Shares are issued
pursuant to an Issuer Registration Statement as provided in Section 2
hereof, then

 

 

subject to Sections
3.1(c) and 3.2 hereof, if any Holder desires to exercise its Registration
Rights with respect to the Redemption Shares held by such Holder, such Holder
(a “Notice Holder”) shall deliver to the Company written notice (a
“Registration Notice”) informing the Company of such exercise and specifying
the number of shares to be offered by such Notice Holder (such shares to be
offered being referred to herein as the “Registrable Securities”), which shares
shall not be less than (a) 1,000,000 shares or (b) all of the shares held by
such Holder.  Such notice may be given
at any time on or after the date a notice of redemption is delivered by the
Notice Holder to the Partnership pursuant to the Partnership Agreement, but
must be given at least fifteen (15) Business Days prior to the consummation of
the sale of Registrable Securities.  As
used in this Agreement, a “Business Day” is any Monday, Tuesday, Wednesday,
Thursday or Friday other than a day on which banks and other financial institutions
are authorized or required to be closed for business in the State of New York
or Maryland.  Upon receipt of the
Registration Notice, the Company, if it has not already caused the Registrable
Securities of the Notice Holder to be included as part of an existing shelf
registration statement (prior to the filing of which the Company shall have
given ten (10) Business Days’ notice to the Holders) and related prospectus
that the Company then has on file with the Commission (the “Shelf Registration
Statement”) (in which event the Company shall be deemed to have satisfied its
registration obligation under this Section 3), will cause to be filed with
the Commission as soon as reasonably practicable after receiving the
Registration Notice a new registration statement and related prospectus (a “New
Registration Statement”) that complies as to form in all material respects with
applicable Commission rules providing for the sale by the Notice Holder of the
Registrable Securities, and agrees (subject to Section 3.2 hereof) to use
its best efforts to cause such New Registration Statement to be declared
effective by the Commission as soon as practicable.  (As used herein, “Registration Statement” and “Prospectus” refer
to the Shelf Registration Statement and related prospectus (including any
preliminary prospectus) or the New Registration Statement and related
prospectus (including any preliminary prospectus), whichever is utilized by the
Company to satisfy the Notice Holder’s Registration Rights pursuant to this
Section 3, including in each case any documents incorporated therein by
reference.)  Upon receipt of a
Registration Notice, the Company will provide notice to each other Holder with
respect to which it has not already satisfied its registration obligation of
its receipt of the Registration Notice and its obligations (such notice, a
“Company Notice”).  Each other Holder
shall have 10 days from the mailing of the Company Notice to such Holder to
provide to the Company notice of its intention to include all, but not less
than all, of its Registrable Securities in a Registration Statement (such other
Holder, a “Piggyback Holder” and together with the Notice Holder, a “Selling
Holder”).  In no event may a
Registration Notice be delivered more than once in any calendar year but there
shall be no other limit on the number of Registration Notices delivered or
registrations effected pursuant to this Section 3.1.  Each Holder agrees to provide in a timely
manner information regarding the proposed distribution by such Holder of the
Registrable Securities and such other information reasonably requested by the
Company in connection with the preparation of and for inclusion in the
Registration Statement.  The Company
agrees (subject to Section 3.2 hereof) to use its best efforts to keep the
Registration Statement effective (including the

 

2

 

preparation and filing of
any amendments and supplements necessary for that purpose) until the earlier of
(i) the date on which the Selling Holders consummate the sale of all of
the Registrable Securities under the Registration Statement or (ii) the date on
which all of the Registrable Securities registered under the Registration
Statement registered are eligible for sale pursuant to Rule 144(k) (or any
successor provision) or in a single transaction pursuant to Rule 144(e) (or any
successor provision) under the Securities Act of 1933, as amended (the
“Act”).  The Company agrees to provide
to each Selling Holder a reasonable number of copies of the final Prospectus
and any amendments or supplements thereto. 
Notwithstanding the foregoing, the Company may at any time, in its sole
discretion and prior to receiving any Registration Notice from a Holder,
include all of a Holder’s Redemption Shares or any portion thereof in any Shelf
Registration Statement.  In connection
with any Registration Statement utilized by the Company to satisfy a Holder’s
Registration Rights pursuant to this Section 3, each Holder agrees that it
will respond within ten (10) Business Days to any request by the Company to
provide or verify information regarding such Holder or such Holder’s
Registrable Securities as may be required to be included in such Registration
Statement pursuant to the rules and regulations of the Commission.

 

(b)           Offers and Sales.  All
offers and sales by a Holder under the Registration Statement referred to in
this Section 3 shall be completed within the period during which the
Registration Statement is required to remain effective pursuant to
Section 3.1(a) of this Section 3, and upon expiration of such period
a Holder will not offer or sell any Registrable Securities under the
Registration Statement.  If directed by
the Company, a Holder will return all undistributed copies of the Prospectus in
its possession upon the expiration of such period.

 

(c)           Limitations on Registration
Rights.  Each exercise of a Registration Right shall
be with respect to a minimum of the lesser of (i) one million (1,000,000)
Preferred Shares or (ii) the total number of Redemption Shares held by the
exercising Holder or Holders at such time plus the number of Redemption Shares
that may be issued upon redemption of Units by such Holder or Holders.  The right of a Holder to deliver a
Registration Notice commences upon the first date such Holder is permitted to
redeem Units pursuant to the Partnership Agreement and such Holder’s Limited
Partner Acceptance of Partnership Agreement. 
The right of a Holder to deliver a Registration Notice shall expire on
the date on which all of the Redemption Shares held by such Holder or issuable
upon redemption of Units held by such Holder are eligible for sale pursuant to
Rule 144(k) (or any successor provision) or in a single transaction pursuant to
Rule 144(e) (or any successor provision) under the Act.  Upon the exercise of the Registration Rights
granted pursuant to this Section 3.1, the holder may request an
underwritten public offering; provided,
that the Company shall have the right to select the underwriter or underwriters
in connection with such public offering, which shall be subject to the
reasonable approval of the Holder.

 

3.2  Suspension
of Offering.  Upon any notice
by the Company, either before or after a Holder has delivered a Registration
Notice, that a negotiation or

 

3

 

consummation of a
transaction by the Company or any of its subsidiaries is pending or an event
has occurred, which negotiation, consummation or event would require additional
disclosure by the Company in a Registration Statement of material information which
the Company has a bona fide business purpose for keeping confidential and the
nondisclosure of which in the Registration Statement might cause the
Registration Statement to fail to comply with applicable disclosure
requirements (a “Materiality Notice”), a Holder agrees that it will immediately
discontinue offers and sales of the Registrable Securities under the
Registration Statement until such Holder receives copies of a supplemented or
amended Prospectus that corrects the misstatement(s) or omission(s) referred to
above and receives notice that any post-effective amendment has become
effective; provided, that the
Company may delay, suspend or withdraw the Registration Statement for such
reason for no more than sixty (60) days after delivery of the Materiality
Notice at any one time. If so directed by the Company, a Holder will deliver to
the Company all copies of the Prospectus covering the Registrable Securities
current at the time of receipt of any Materiality Notice.

 

3.3  Qualification.  The Company agrees to use its
best efforts to register or qualify the Registrable Securities by the time the
applicable Registration Statement is declared effective by the Commission under
all applicable state securities or “blue sky” laws of such jurisdictions as the
Selling Holders shall reasonably request in writing, to keep each such
registration or qualification effective during the period such Registration
Statement is required to be kept effective or during the period offers or sales
are being made by such Holder after delivery of a Registration Notice to the
Company, whichever is shorter, and to do any and all other acts and things
which may be reasonably necessary or advisable to enable the Selling Holder to
consummate the disposition in each such jurisdiction of the Registrable
Securities owned by such Holder; provided,
however, that the Company shall not be required to (x) qualify
generally to do business in any jurisdiction or to register as a broker or
dealer in such jurisdiction where it would not otherwise be required to qualify
but for this Section 3.3, (y) subject itself to taxation in any such
jurisdiction or (z) submit to the general service of process in any such
jurisdiction.

 

3.4  Registration Procedures.  Whenever the Company is required to effect the
registration of Redemption Shares under the Act pursuant to Section 3.1 of
this Agreement, subject to Section 3.2 hereof, the Company shall:

 

(a)           prepare and file with the Commission (as soon as reasonably practicable
after receiving the Registration Notice, and in any event within 60 days after
receipt of such Registration Notice) the requisite Registration Statement to
effect such registration, which Registration Statement shall comply as to form
in all material respects with the requirements of the applicable form and
include all financial statements required by the Commission to be filed
therewith, and the Company shall use its reasonable best efforts to cause such
Registration Statement to become effective; provided,
however, that before filing a Registration
Statement or Prospectus or any amendments or supplements thereto, or comparable
statements under securities or blue sky laws of any jurisdiction,

 

4

 

the Company shall (i)
provide a Selling Holder with an adequate and appropriate opportunity to
participate in the preparation of such Registration Statement and each
Prospectus included therein (and each amendment or supplement thereto or
comparable statement) to be filed with the Commission and (ii) not file any
such Registration Statement or Prospectus (or amendment or supplement thereto
or comparable statement) with the Commission to which such Holder’s counsel or
any underwriter shall have reasonably objected on the grounds that such filing
does not comply in all material respects with the requirements of the Act or of
the rules or regulations thereunder;

 

(b)           prepare and file with the Commission such amendments and supplements to
such Registration Statement and the Prospectus used in connection therewith as
may be necessary (i) to keep such Registration Statement effective and (ii) to
comply with the provisions of the Act with respect to the disposition of the
Redemption Shares covered by such Registration Statement, in each case until
such time as all of such Redemption Shares have been disposed of in accordance
with the intended methods of disposition by the seller(s) thereof set forth in
such Registration Statement; provided,
that except with respect to any Shelf Registration, such period need not extend
beyond nine months after the effective date of the Registration Statement; and provided  further,
that with respect to any Shelf Registration, such period need not extend beyond
the time period provided in Section 3.1(a), and which periods, in any event,
shall terminate when all the Redemption Shares covered by such Registration
Statement have been sold (but not before the expiration of the time period
referred to in Section 4(3) of the Act and Rule 174 thereunder, if
applicable);

 

(c)           furnish, without
charge, to each Selling Holder and each underwriter, if any, of the securities
covered by such Registration Statement, such number of copies of such
Registration Statement, each amendment and supplement thereto (in each case
including all exhibits), and the Prospectus included in such Registration
Statement (including each preliminary Prospectus) in conformity with the
requirements of the Act, and other documents, as such Holder and such
underwriter may reasonably request in order to facilitate the public sale or
other disposition of the Redemption Shares owned by the Holder;

 

(d)           prior to any public offering of Redemption Shares, use its reasonable
best efforts to register or qualify the Redemption Shares covered by such
Registration Statement under such other securities or blue sky laws of such
jurisdictions as a Selling Holder or the sole or lead managing underwriter, if
any, may reasonably request to enable such Holder to consummate the disposition
in such jurisdictions of the Redemption Shares owned by such Holder and to
continue such registration or qualification in effect in each such jurisdiction
for as long as such Registration Statement remains in effect (including through
new filings or amendments or renewals), and do any and all other acts and things
which may be necessary or advisable to enable the Holder to consummate the
disposition in such jurisdictions of the Redemption Shares owned by it; provided,  however,
that the Company shall not be required to (i) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for

 

5

 

this Section, (ii)
subject itself to taxation in any such jurisdiction or (iii) consent to general
service of process in any such jurisdiction;

 

(e)           promptly notify each Selling Holder and the sole or lead managing
underwriter, if any: (i) when the Registration Statement, any pre-effective
amendment, the Prospectus or any prospectus supplement related thereto or
post-effective amendment to the Registration Statement has been filed, and,
with respect to the Registration Statement or any post-effective amendment,
when the same has become effective, (ii) of any request by the Commission
or any state securities or blue sky authority for amendments or supplements to
the Registration Statement or the Prospectus related thereto or for additional
information, (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or the initiation or
threat of any proceedings for that purpose, (iv) of the receipt by the Company
of any notification with respect to the suspension of the qualification of any
Redemption Shares for sale under the securities or blue sky laws of any
jurisdiction or the initiation of any proceeding for such purpose, (v) of the
existence of any fact of which the Company becomes aware or the happening of
any event which results in (A) the Registration Statement containing an untrue
statement of a material fact or omitting to state a material fact required to
be stated therein or necessary to make any statements therein not misleading or
(B) the Prospectus included in such Registration Statement containing an untrue
statement of a material fact or omitting to state a material fact required to
be stated therein or necessary to make any statements therein, in the light of
the circumstances under which they were made, not misleading and (vi) of the
Company’s reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate or that there exist circumstances
not yet disclosed to the public which make further sales under such
Registration Statement inadvisable pending such disclosure and post-effective
amendment; and, if the notification relates to an event described in any of the
clauses (v) or (vi) of this Section 3.4(e), subject to Section 3.2,
the Company shall promptly prepare a supplement or post-effective amendment to
such Registration Statement or related Prospectus or any document incorporated
therein by reference or file any other required document so that (1) such
Registration Statement shall not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading and (2) as thereafter
delivered to the purchasers of the Redemption Shares being sold thereunder,
such Prospectus shall not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading (and shall furnish to the Selling Holder and each
underwriter, if any, a reasonable number of copies of such Prospectus so supplemented
or amended); and if the notification relates to an event described in clauses
(ii) through (iv) of this Section 3.4(e), the Company shall use its
reasonable best efforts to remedy such matters;

 

(f)            make reasonably available for inspection by
each Selling Holder, any sole or lead managing underwriter participating in any
disposition pursuant to such Registration Statement, such Holder’s counsel and
any attorney, accountant or other

 

6

 

agent retained by any
such seller or any underwriter material financial and other relevant
information concerning the business and operations of the Company and the
properties of the Company and any subsidiaries thereof as may be in existence
at such time as shall be necessary, in the reasonable opinion of such Holder’s
and such underwriters’ respective counsel, to enable them to conduct a
reasonable investigation within the meaning of the Act, and cause the Company’s
and any subsidiaries’ officers, directors and employees, and the independent
public accountants of the Company, to supply such information as may be
reasonably requested by any such parties in connection with such Registration
Statement;

 

(g)           obtain an opinion from the Company’s counsel and a “cold comfort” letter
from the Company’s independent public accountants who have certified the
Company’s financial statements included or incorporated by reference in such
Registration Statement in customary form and covering such matters as are
customarily covered by such opinions and “cold comfort” letters delivered to
underwriters in underwritten public offerings, which opinion and letter shall
be reasonably satisfactory to the sole or lead managing underwriter, if any,
and to each Selling Holder, and furnish to such Selling Holder participating in
the offering and to each underwriter, if any, a copy of such opinion and letter
addressed to the Holder (in the case of the opinion) and underwriter (in the
case of the opinion and the “cold comfort” letter);

 

(h)           in the case of an underwritten offering, make generally available to
its security holders as soon as practicable, but in any event not later than
eighteen months after the effective date of the Registration Statement (as
defined in Rule 158(c)), an earnings statement of the Company and its
subsidiaries (which need not be audited) complying with Section 11(a) of
the Act and the rules and regulations of the Commission thereunder (including,
at the option of the Company, Rule 158);

 

(i)            furnish to each Selling Holder and the sole
or lead managing underwriter, if any, without charge, at least one manually
signed copy of the Registration Statement and any post-effective amendments
thereto, including financial statements and schedules, all documents
incorporated therein by reference and all exhibits (including those deemed to
be incorporated by reference);

 

(j)            if requested by the sole or lead managing
underwriter or a Selling Holder, incorporate in a prospectus supplement or
post-effective amendment such information concerning such Holder, the
underwriters or the intended method of distribution as the sole or lead
managing underwriter or such Holder reasonably requests to be included therein
and as is appropriate in the reasonable judgment of the Company, including,
without limitation, information with respect to the number of Redemption Shares
being sold to the underwriters, the purchase price being paid therefor by such
underwriters and any other terms of the underwritten offering of the Redemption
Shares to be sold in such offering; and

 

7

 

(k)           use its reasonable best efforts to take all other steps necessary to
expedite or facilitate the registration and disposition of the Redemption
Shares contemplated hereby, including obtaining necessary governmental
approvals and effecting required filings; entering into customary agreements
(including customary underwriting agreements, if the public offering is
underwritten); cooperating with the Holder and any underwriters in connection with
any filings required by the National Association of Securities Dealers, Inc.
(the “NASD”); providing appropriate certificates not bearing restrictive
legends representing the Redemption Shares; and providing a CUSIP number and
maintaining a transfer agent and registrar for the Redemption Shares.

 

3.5  Indemnification
by the Company.  The Company
agrees to indemnify and hold harmless each Selling Holder and each person, if
any, who controls such Holder within the meaning of Section 15 of the Act
or Section 20 of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), as follows:

 

(i)            against any and all loss, liability, claim,
damage and expense whatsoever, as incurred, arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in
any Registration Statement (or any amendment thereto) pursuant to which the
Registrable Securities were registered under the Act, including all documents
incorporated therein by reference, or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading or arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in
any Prospectus (or any amendment or supplement thereto), including all
documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading;

 

(ii)           against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, if such settlement is effected with the
written consent of the Company; and

 

(iii)          against any and all
expense whatsoever, as incurred (including reasonable fees and disbursements of
counsel), reasonably incurred in investigating, preparing or defending against
any litigation, or investigation or proceeding by any governmental agency or
body, commenced or threatened, in each case whether or not a party, or any
claim whatsoever based upon any such untrue statement or omission, or

 

8

 

any such alleged untrue
statement or omission, to the extent that any such expense is not paid under
subparagraph (i) or (ii) above;

 

provided,
however, that the
indemnity provided pursuant to this Section 3.5 does not apply with
respect to any loss, liability, claim, damage or expense to the extent arising
out of (A) any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with written information
furnished to the Company by a Holder expressly for use in the Registration
Statement (or any amendment thereto) or the Prospectus (or any amendment or
supplement thereto) or (B) a Holder’s failure to deliver an amended or
supplemental Prospectus provided to such Holder by the Company if such loss,
liability, claim, damage or expense would not have arisen had such delivery
occurred.

 

3.6  Indemnification
by the Holder.  Each Holder
(and each permitted assignee of the Holder, on a several basis) agrees to
indemnify and hold harmless the Company, and each of its trustees/directors and
officers (including each trustee/director and officer of the Company who signed
a Registration Statement), and each person, if any, who controls the Company
within the meaning of Section 15 of the Act or Section 20 of the
Exchange Act, as follows:

 

(i)            against any and all loss, liability, claim, damage
and expense whatsoever, as incurred, arising out of or based upon any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) pursuant to which the
Registrable Securities were registered under the Act, including all documents
incorporated therein by reference, or the omission or alleged omission
therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading or arising out of or based upon any
untrue statement or alleged untrue statement of a material fact contained in
any Prospectus (or any amendment or supplement thereto), including all
documents incorporated therein by reference, or the omission or alleged
omission therefrom of a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading;

 

(ii)           against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in
settlement of any litigation, or investigation or proceeding by any
governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such
alleged untrue statement or omission, if such settlement is effected with the
written consent of such Holder; and

 

(iii)          against any and all expense whatsoever, as incurred (including
reasonable fees and disbursements of counsel), reasonably incurred in
investigating, preparing or defending against any litigation, or investigation
or proceeding by any governmental agency or body,

 

9

 

commenced
or threatened, in each case whether or not a party, or any claim whatsoever
based upon any such untrue statement or omission, or any such alleged untrue
statement or omission, to the extent that any such expense is not paid under
subparagraph (i) or (ii) above;

 

provided,
however, that the
indemnity provided pursuant to this Section 3.6 shall only apply with
respect to any loss, liability, claim, damage or expense to the extent arising
out of (A) any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with written information
furnished to the Company by such Holder expressly for use in the Registration
Statement (or any amendment thereto) or the Prospectus (or any amendment or
supplement thereto) or (B) such Holder’s failure to deliver an amended or
supplemental Prospectus provided to such Holder by the Company if such loss,
liability, claim, damage or expense would not have arisen had such delivery
occurred.  Notwithstanding the
provisions of this Section 3.6, a Holder and any permitted assignee shall
not be required to indemnify the Company, its officers, trustees/directors or
control persons with respect to any amount in excess of the amount of the total
proceeds to such Holder or such permitted assignee, as the case may be, from
sales of the Registrable Securities of such Holder under the Registration
Statement.

 

3.7  Conduct
of Indemnification Proceedings. 
An indemnified party hereunder shall give reasonably prompt notice to
the indemnifying  party of any action or
proceeding commenced against it in respect of which indemnity may be sought
hereunder, but failure to so notify the indemnifying party (i) shall not
relieve it from any liability which it may have under the indemnity agreement
provided in Section 3.5 or 3.6 above, unless and to the extent it did not
otherwise learn of such action and the lack of notice by the indemnified party
results in the forfeiture by the indemnifying party of substantial rights and
defenses, and (ii) shall not, in any event, relieve the indemnifying party from
any obligations to the indemnified party other than the indemnification
obligation provided under Section 3.5 or 3.6 above.  If the indemnifying party so elects within a
reasonable time after receipt of such notice, the indemnifying party may assume
the defense of such action or proceeding at such indemnifying party’s own
expense with counsel chosen by the indemnifying party and approved by the
indemnified party, which approval shall not be unreasonably withheld; provided, however, that the indemnifying
party will not settle any such action or proceeding without the written consent
of the indemnified party unless, as a condition to such settlement, the
indemnifying party secures the unconditional release of the indemnified party;
and provided further, that if the
indemnified party reasonably determines that a conflict of interest exists
where it is advisable for the indemnified party to be represented by separate
counsel or that, upon advice of counsel, there may be legal defenses available
to it which are different from or in addition to those available to the
indemnifying party, then the indemnifying party shall not be entitled to assume
such defense and the indemnified party shall be entitled to separate counsel at
the indemnifying party’s expense.  If
the indemnifying party is not entitled to assume the defense of such action or proceeding
as a result of the second proviso to the preceding sentence, the indemnifying
party’s counsel shall be entitled to conduct the indemnifying party’s defense
and counsel for the indemnified party shall be entitled to conduct the defense
of the indemnified party, it being understood that both such counsel will
cooperate with each other to conduct the defense of such action or

 

10

 

proceeding as efficiently
as possible.  If the indemnifying party
is not so entitled to assume the defense of such action or does not assume such
defense, after having received the notice referred to in the first sentence of
this paragraph, the indemnifying party will pay the reasonable fees and
expenses of counsel for the indemnified party. 
In such event, however, the indemnifying party will not be liable for
any settlement effected without the written consent of the indemnifying party.  If an indemnifying party is entitled to
assume, and assumes, the defense of such action or proceeding in accordance
with this paragraph, the indemnifying party shall not be liable for any fees
and expenses of counsel for the indemnified party incurred thereafter in
connection with such action or proceeding.

 

3.8  Contribution.  In order to provide for just and equitable
contribution in circumstances in which the indemnity agreement provided for in
Sections 3.5 and 3.6 above is for any reason held to be unenforceable by the
indemnified party although applicable in accordance with its terms, the Company
and each Holder shall contribute to the aggregate losses, liabilities, claims,
damages and expenses of the nature contemplated by such indemnity agreement
incurred by the Company and the Holders (i) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and
the Holders on the other, in connection with the statements or omissions which
resulted in such losses, claims, damages, liabilities or expenses or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law, in
such proportion as is appropriate to reflect not only the relative fault of,
but also the relative benefits to, the Company on the one hand and the Holders
on the other, in connection with the statements or omissions which resulted in
such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
relative benefits to the indemnifying party and indemnified party shall be
determined by reference to, among other things, the total proceeds received by
the indemnifying party and indemnified party in connection with the offering to
which such losses, claims, damages, liabilities or expenses relate.  The relative fault of the indemnifying party
and indemnified party shall be determined by reference to, among other things,
whether the action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a
material fact, has been made by, or relates to information supplied by, the
indemnifying party or the indemnified party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action.

 

The
parties hereto agree that it would not be just or equitable if contribution
pursuant to this Section 3.8 were determined by pro rata allocation or by
any other method of allocation which does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  Notwithstanding the provisions of this
Section 3.8, no Holder shall be required to contribute any amount in
excess of the amount of the total proceeds to such Holder from sales of the
Registrable Securities of such Holder under the Registration Statement.

 

Notwithstanding
the foregoing, no person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation.

 

11

 

For purposes of this
Section 3.8, each person, if any, who controls a Holder within the meaning
of Section 15 of the Act shall have the same rights to contribution as the
Holder controlled by such persons, and each trustee/director of the Company,
each officer of the Company who signed a Registration Statement and each
person, if any, who controls the Company within the meaning of Section 15
of the Act shall have the same rights to contribution as the Company.

 

SECTION 4.         EXPENSES

 

The
Company shall pay all expenses incident to the performance by the company of
the Company’s registration obligations under Section 2 and 3 hereof,
including, without limitation, (i) all Commission and state securities
registration, listing and filing fees; (ii) all expenses incurred in connection
with the preparation, printing and distribution of any Issuer Registration
Statement or Registration Statement and Prospectus; (iii) all fees and
disbursements of counsel for the Company and of the independent accountants of
the Company (including, without limitation, the expenses of any annual or
special audit and comfort letters reasonably required by the underwriters in an
underwritten offering), but excluding underwriting discounts and commissions
and transfer taxes, if any, relating to the sale or disposition of Registrable
Securities by a Holder and (iv) fees and expenses of any other persons retained
by the Company in connection with the registration, including any experts,
transfer agent or registrar, retained by the Company.

 

SECTION 5.         RULE 144 COMPLIANCE

 

The
Company covenants that it will use its best efforts to timely file the reports
required to be filed by the Company under the Act and the Exchange Act so as to
enable a Holder to sell Registrable Securities pursuant to Rule 144 under the
Act.  In connection with any sale,
transfer or other disposition by a Holder of any Registrable Securities
pursuant to Rule 144 under the Act, the Company shall cooperate with such
Holder to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold and not bearing any Act legend,
and enable certificates for such Registrable Securities to be for such number
of shares and registered in such names as such Holder may reasonably request at
least ten (10) Business Days prior to any sale of Registrable Securities
hereunder.

 

SECTION 6.         MISCELLANEOUS

 

6.1  Integration;
Amendment.  This Agreement
constitutes the entire agreement among the parties hereto with respect to the
matters set forth herein and supersedes and renders of no force and effect all
prior oral or written agreements, commitments and understandings among the
parties with respect to the matters set forth herein. Except as otherwise
expressly provided in this Agreement, no amendment, modification or discharge
of this Agreement shall be valid or binding unless set forth in writing and
duly executed by the Company and a majority of the Holders.

 

12

 

6.2  Waivers.  No waiver by a party hereto shall be
effective unless made in a written instrument duly executed by the party
against whom such waiver is sought to be enforced, and only to the extent set
forth in such instrument.  Neither the
waiver by any of the parties hereto of a breach or a default under any of the
provisions of this Agreement, nor the failure of any of the parties, on one or
more occasions, to enforce any of the provisions of this Agreement or to
exercise any right or privilege hereunder shall thereafter be construed as a
waiver of any subsequent breach or default of a similar nature, or as a waiver
of any such provisions, rights or privileges hereunder.

 

6.3  Assignment;
Successors and Assigns.  This
Agreement and the rights granted hereunder may not be assigned by a Holder
without the written consent of the Company; provided,
however, that a Holder may assign its rights and obligations
hereunder without the consent of the Company, following at least ten (10) days’
prior written notice to the Company, (i) to not more than ten direct equity
owners (e.g., partners or
members) or beneficiaries in connection with a distribution of such Holder’s
Units to its equity owners or beneficiaries and (ii) to a permitted transferee
in connection with a transfer of all or a portion of the Holder’s Units in
accordance with the terms of the Partnership Agreement, if, in the case of (i)
and (ii) above, such persons agree in writing to be bound by all of the
provisions hereof.  This Agreement shall
inure to the benefit of and be binding upon the successors and permitted
assigns of all of the parties hereto.

 

6.4  Burden
and Benefit.  This Agreement
shall be binding upon and inure to the benefit of the parties hereto and their
respective heirs, executors, personal and legal representatives, successors
and, subject to Section 6.3 above, assigns.

 

6.5  Notices.  All notices called for under this Agreement
shall be in writing and shall be deemed given upon receipt if delivered
personally or by facsimile transmission and followed promptly by mail, or
mailed by registered or certified mail (return receipt requested), postage
prepaid, to the parties at the addresses set forth below their names in
Schedule A hereto, or to any other address or addressee as any party entitled
to receive notice under this Agreement shall designate, from time to time, to
the others in the manner provided in this Section 6.5 for the service of
notices; provided, however, that
notices of a change of address shall be effective only upon receipt thereof.  Any notice delivered to the party hereto to
whom it is addressed shall be deemed to have been given and received on the day
it was received; provided, however,
that if such day is not a Business Day then the notice shall be deemed to have
been given and received on the Business Day next following such day and if any
party rejects delivery of any notice attempted to be given hereunder, delivery
shall be deemed given on the date of such rejection.  Any notice sent by facsimile transmission shall be deemed to have
been given and received on the Business Day next following the transmission.

 

6.6  Specific
Performance.  The parties
hereto acknowledge that the obligations undertaken by them hereunder are unique
and that there would be no adequate remedy at law if either party fails to
perform any of its obligations hereunder,

 

13

 

and accordingly agree
that each party, in addition to any other remedy to which it may be entitled at
law or in equity, shall be entitled to (i) compel specific performance of the
obligations, covenants and agreements of the other party under this Agreement
in accordance with the terms and conditions of this Agreement and (ii) obtain
preliminary injunctive relief to secure specific performance and to prevent a
breach or contemplated breach of this Agreement in any court of the United
States or any State thereof having jurisdiction.

 

6.7  Governing
Law.  This Agreement, the
rights and obligations of the parties hereto, and any claims or disputes
relating thereto, shall be governed by and construed in accordance with the
laws of the State of New York, but not including the choice of law rules
thereof.

 

6.8  Headings.  Section and subsection headings
contained in this Agreement are inserted for convenience of reference only,
shall not be deemed to be a part of this Agreement for any purpose, and shall
not in any way define or affect the meaning, construction or scope of any of
the provisions hereof.

 

6.9  Pronouns.  All pronouns and any variations thereof
shall be deemed to refer to the masculine, feminine, neuter, singular or
plural, as the identity of the person or entity may require.

 

6.10  Execution
in Counterparts.  To
facilitate execution, this Agreement may be executed in as many counterparts as
may be required.  It shall not be
necessary that the signature of or on behalf of each party appears on each
counterpart, but it shall be sufficient that the signature of or on behalf of
each party appears on one or more of the counterparts.  All counterparts shall collectively
constitute a single agreement.  It shall
not be necessary in any proof of this Agreement to produce or account for more
than a number of counterparts containing the respective signatures of or on
behalf of both of the parties.

 

6.11  Severability.  If fulfillment of any provision of this
Agreement, at the time such fulfillment shall be due, shall transcend the limit
of validity prescribed by law, then the obligation to be fulfilled shall be
reduced to the limit of such validity; and if any clause or provision contained
in this Agreement operates or would operate to invalidate this Agreement, in
whole or in part, then such clause or provision only shall be held ineffective,
as though not herein contained, and the remainder of this Agreement shall
remain operative and in full force and effect.

 

14

 

IN
WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
duly executed on its behalf as of the date first hereinabove set forth.

 

 

	
   

  	
  VORNADO REALTY TRUST

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ Joseph
  Macnow

  
	
   

  	
   

  	
  Name:

  	
  Joseph Macnow

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice
  President –

  Finance and Administration and

  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  BEL HOLDINGS LLC

  
	
   

  	
   

  
	
   

  	
  By

  	
    /s/ William
  R. Cross

  
	
   

  	
   

  	
  Name:

  	
  William R. Cross

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 

Schedule A

 

	
  Vornado Realty Trust

  
	
  888 Seventh Avenue

  
	
  New York, New York
  10014

  
	
  Attention:

  	
  Executive Vice
  President – Finance and Administration

  and Chief Financial Officer

  
	
  Facsimile:

  	
  (212) 894-9000

  
	
   

  
	
  Bel Holdings LLC

  
	
   

  
	
  c/o Eaton Vance
  Management

  
	
  The Eaton Vance
  Building

  
	
  255 State Street

  
	
  Boston, Massachusetts
  02109

  
	
  Attention:

  	
  Mr. William R. Cross

  
	
  Facsimile:

  	
  (617) 338-8054

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