Document:

Exhibit
10.2

AMENDMENT
THREE TO THE

DIRECTORS’ DEFERRED COMPENSATION PLAN OF DUKE-WEEKS REALTY CORPORATION

This Amendment
Three to the Directors’ Deferred Compensation Plan of Duke-Weeks Realty
Corporation, as heretofore amended (the “Plan”), is hereby adopted this 26th
day of July, 2006, by Duke Realty Corporation (the “Corporation”). Each
capitalized term not otherwise defined herein has the meaning set forth in the
Plan.

WITNESSETH:

WHEREAS, the
Corporation adopted the Plan for the purposes set forth therein; and

WHEREAS, pursuant
to Section 7.1 of the Plan, the Corporation has the right at any time, by
action of the Board of Directors or its Executive Compensation Committee (the “Committee”),
to amend the Plan in whole or in part; and

WHEREAS, the Board
of Directors, upon recommendation of the Committee, has approved and authorized
this Amendment Three to the Plan;

NOW,
THEREFORE, the Plan is hereby amended, effective as of the date hereof, in the
following particulars:

1.             By
adding a new Section 4.5, which shall read as follows:

“4.5.        Source
of Shares for the Plan. All
distributions of Duke Stock under this Plan from and after July 26, 2006 shall
be made from the Duke Realty Corporation 2005 Long-Term Incentive Plan, or any
subsequent equity compensation plan approved by Duke Realty Corporation’s
stockholders and designated as the Equity Incentive Plan for purposes of this
Plan (the “Equity Incentive Plan”), subject to all of the terms and conditions
of the Equity Incentive Plan. The terms contained in the Equity Incentive Plan
are incorporated into and made a part of this Plan with respect to such shares
of Duke Stock distributed from this Plan. In the event of any actual or alleged
conflict between the provisions of the Equity Incentive Plan and the provisions
of this Plan, the provisions of the Equity Incentive Plan shall be controlling
and determinative. From and after July 26, 2006, this Plan does not constitute
a separate source of shares for the issuance of Duke Stock as described herein.”

2.             By
deleting Section 5.2 and replacing it with the following:

“5.2         Methods of
Distribution. All amounts allocated to a Stock Subaccount (including Stock
Fees deferred under this Plan, Cash Fees 

 

deferred under this Plan allocated to a Stock Subaccount, amounts transferred
hereto from the stock subaccounts under the Weeks Plan, and all adjustments
made to any of the above under Article IV which are attributable to cash or
stock dividends, stock splits or other similar adjustments or distributions
made with respect to such deferrals) shall be distributed solely in the form of
whole shares of Duke Stock with any fractional share interests distributed in
cash. All amounts allocated to an Interest Subaccount under this Plan
(including all amounts transferred hereto from the cash subaccounts under the
Weeks Plan), shall be distributed solely in the form of cash. If distributions
are made in the form of installments, each distribution shall be made prorata
from the Stock Subaccount and the Interest Subaccount. The portion of the Stock
Subaccount that is not distributed shall continue to be allocated to such Stock
Subaccount and the portion of the Interest Subaccount, which is not
distributed, shall continue to be allocated to such Interest Subaccount.”

All other
provisions of the Plan shall remain the same.

 2
 

 

IN WITNESS
WHEREOF, Duke Realty Corporation, by a duly authorized officer, has executed
this Amendment Three to the Directors’ Deferred Compensation Plan of Duke-Weeks
Realty Corporation, this 26th day of July, 2006.

	
  

  	
  DUKE REALTY CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis D. Oklak

  
	
   

  	
   

  	
  Dennis D. Oklak

  
	
   

  	
   

  	
  Chairman of the Board and Chief Executive Officer

  

 

 3Exhibit
10.1

NOTICE OF REDEMPTION

TO THE HOLDERS OF

HF Financial Capital Trust I

10,000 CAPITAL SECURITIES

310 COMMON SECURITIES

(the “Securities”)

Your Securities is hereby called for redemption on December 8, 2006
pursuant to Annex I,  Section 4 of the Amended
and Restated Declaration of Trust dated as of November 28, 2001 between HF
Financial Corp. as the Company, Wilmington Trust Company, as the Institutional
Trustee and Delaware Trustee and the Administrators named therein. The
Securities will be redeemed at the Redemption Price of 100%.

On December 8, 2006, the Securities or portions thereof designated for
redemption will become due and payable. 
Payment will be made upon presentation and surrender to:

	
  BY MAIL:

  	
   

  	
  BY HAND:

  
	
   

  	
   

  	
   

  
	
  Wilmington Trust Company

  	
   

  	
  Wilmington Trust Company

  
	
  Corporate Trust

  	
   

  	
  Corporate Trust

  
	
  1100 North Market Street

  	
   

  	
  301 West 11th
  Street

  
	
  Wilmington, DE 19890

  	
   

  	
  1st Floor

  
	
   

  	
   

  	
  Wilmington, DE

  

 

In the case of Securities designated for partial redemption, a new
Security in the principal face amount equal to the unredeemed portion thereof
will be issued.  On and after December 8,
2006, interest shall cease to accrue on the Securities or portions thereof
designated for redemption.

HF Financial Capital Trust I

Dated:  October 11, 2006Exhibit
10.1

Description of Comfort
Systems USA, Inc. 2006 Incentive

Compensation Plan
for Executive Officers

Effective
April 1, 2006, the Compensation Committee (the “Compensation Committee”) of the
Board of Directors of Comfort Systems USA, Inc. (the “Company”) adopted the
2006 Incentive Compensation Plan for Executive Officers.  Under the plan,
the maximum bonus payable to Messrs., Murdy, George, and Tanner is 100% of
their respective base salaries, and the maximum amount payable to Ms. Shaeff is
50% of her base salary.  Messrs. Murdy, George and Tanner along with Ms.
Shaeff are named executive officers of the Company.  A portion of each
officer’s bonus is based upon a discretionary assessment of such executive’s
performance.  For Messrs. Murdy, George and Tanner, the discretionary
maximum is equal to 10% of their base salary; for Ms. Shaeff, the discretionary
maximum is equal to 20% of her base salary.  The remaining portion of each
officer’s bonus is subject to the Company achieving a minimum cash flow amount
and is then calculated based upon the Company’s earnings before interest,
taxes, depreciation and amortization.  The calculation begins once a
minimum threshold is obtained and is then proportional to the amount by which
the Company exceeds that threshold.  For Messrs. Murdy, George and Tanner,
the calculated amount is equal to up to 90% of their base salary; for Ms.
Shaeff, the calculated amount is equal to up to 30% of her base salary.

Effective April 1,
2006, the Equity Plans Committee of the Board of Directors of the Company
approved awards of restricted stock to certain executive officers (the “2006
Awards”).  The 2006 Awards were granted
pursuant to the 1997 Long-Term Incentive Plan and will vest pursuant to
the positive earning goals stated within the Restricted Stock Award Agreements
over a three year term.

The 2006 Awards
were granted to the following executives for the purpose of providing an
incentive for those individuals to work for the Company’s long term success:

	
  Name/Title

  	
   

  	
  Stock Award Amount

  
	
   

  	
   

  	
   

  
	
  William F. Murdy

  Chairman and Chief Executive Officer

  	
   

  	
  50,000

  
	
   

  	
   

  	
   

  
	
  William George, III

  Executive Vice President and Chief Financial Officer

  	
   

  	
  25,000

  
	
   

  	
   

  	
   

  
	
  Thomas N. Tanner

  Executive Vice President and Chief Operating Officer

  	
   

  	
  25,000

  
	
   

  	
   

  	
   

  
	
  Julie S. Shaeff

  Senior Vice President and Chief Accounting Officer

  	
   

  	
  5,000

  

 

 

 

The exact number
of shares of restricted stock that will be issued to each of the executive
officers listed above will depend upon whether certain  performance thresholds are achieved during
the 12-month periods preceding the scheduled vesting dates in  2006, 2007 and 2008, which vesting
percentages range from 0% to 100% of the target number of shares specified
above.

Effective April 1,
2006, the Compensation Committee increased the base salary of Messrs. Murdy,
George and Tanner and Ms. Shaeff.  Mr.
Murdy’s annual base salary was increased to $525,000.  Messrs. George’s and Tanner’s annual base
salaries were increased to $275,000.  Ms.
Shaeff’s annual base salary was increased to $180,000.Exhibit 10.2

COMFORT SYSTEMS
USA, INC.

2006 EQUITY INCENTIVE
PLAN

1.                                      Purpose; Term

This Comfort Systems
USA, Inc. 2006 Equity Incentive Plan (the “Plan”) provides for the grant
of incentive awards consisting of or based on the Common Stock of the Company. The
purpose of the Plan is to attract and retain key employees, directors and
consultants of the Company and its Affiliates, to provide an incentive for them
to achieve performance goals, and to enable them to participate in the growth
of the Company by granting Awards with respect to the Company’s Common Stock.
No Awards may be granted under the Plan more than ten years after the effective
date of the Plan, but Awards granted prior to that date may continue in
accordance with their terms. Certain capitalized terms used herein are defined
in Section 3 below.

2.                                      Administration

The Plan shall be administered by
the Committee. Except to the extent action by the Committee is required under
Section 162(m) of the Code in the case of Awards intended to qualify for performance-based
compensation exception thereto, the Board may in any instance perform any of
the functions of the Committee hereunder. The Committee shall select the
Participants to receive Awards and shall determine the terms and conditions of
the Awards. The Committee shall have authority, not inconsistent with the
express provisions of the Plan: (a) to administer the issuance of Awards
granted in accordance with the formula set forth in this Plan to such
Participants as are eligible to receive Awards; (b) to prescribe the form
or forms of instruments evidencing Awards and any other instruments required
under the Plan and to change such forms from time to time; (c) to adopt,
amend and rescind rules and regulations for the administration of the Plan; and
(d) to interpret the Plan and to decide any questions and settle all
controversies and disputes that may arise in connection with the Plan. Such
determinations of the Committee shall be conclusive and shall bind all parties.
Notwithstanding anything else, transactions under this Plan, to the extent they
would otherwise be subject to Section 16 of the Securities Exchange Act of
1934, are intended to comply with all applicable conditions of Rule 16b-3
or its successors under Section 16 of the Securities Exchange Act of 1934
(“Rule 16b-3”). To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent
permitted by law and deemed advisable by the Committee. In the case of an Award
intended to be eligible for the performance-based compensation exception
under Section 162(m) of the Code, the Plan and such Award shall be
construed to the maximum extent permitted by law in a manner consistent with
qualifying the Award for such exception. Consistent with the above
requirements, the Committee may delegate such of its duties, powers and
responsibilities as it may determine (and in the event of any such delegation,
references herein to the Committee shall include the person or persons so
delegated to the extent of such delegation).

 

 

In the case of an Award intended
to be eligible for the performance-based compensation exception under
Section 162(m) of the Code, the Committee shall establish in writing
Performance Criteria (in such fashion and with such specificity so that they
qualify as “preestablished objective goals” within the meaning of Treas. Regs.
Section 1-162-27(e)(2)) for any fiscal year not later than 90 days after the commencement of such year
(or such earlier time as is required to qualify Awards as performance-based
under Code Section 162(m) of the Code); provided, however,
that the amount so established by the Committee may be adjusted by the
Committee after the initial determination of the amount to reflect any
significant change of circumstance, including without limitation, the
acquisition or disposition of any business by the Company or any of its
Subsidiaries.

3.                                      Certain Definitions

“Affiliate” means any corporation
or other entity that stands in a relationship to the Company that would result
in the Company and such corporation or other entity being treated as one
employer under Section 414(b) or Section 414(c) of the Code. The
Company may at any time by amendment provide that different ownership
thresholds (consistent with Section 409A of the Code) apply but any such
change shall not be effective for twelve (12) months.

“Award” means any Option, SAR,
Restricted Stock, Unrestricted Stock, Restricted Stock Unit, Unrestricted Stock
Unit), Performance Award (including a cash Performance Award) and other award
convertible into or otherwise based on stock, granted under the Plan.

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

“Code” means the Internal Revenue
Code of 1986, as amended from time to time, or any successor law.

“Committee” means one or more
committees each comprised of not less than two members of the Board appointed
by the Board to administer the Plan or a specified portion thereof. Unless
otherwise determined by the Board, if a Committee is authorized to grant Awards
to a Reporting Person or a Covered Employee, each member shall be a “non-employee
director” within the meaning of Rule 16b-3 under the Exchange Act or,
respectively, an “outside director” within the meaning of Section 162(m)
of the Code, respectively.

“Common Stock” or “Stock” means
the Common Stock, $0.01 par value, of the Company.

“Company” means Comfort Systems
USA, Inc., a Delaware corporation.

“Corporate Transaction” means any
of the following: any sale of all or substantially all of the assets of the Company,
change in the ownership of the capital stock of the

 

 

Company, reorganization, recapitalization, merger
(whether or not the Company is the surviving entity), consolidation, exchange
of capital stock of the Company or other restructuring involving the Company, provided, that, in each case, to the
extent any amount constituting “nonqualified deferred compensation” subject to
Section 409A of the Code would become payable under an Award by reason of
a Corporate Transaction, it shall become payable only if the event or
circumstances constituting the Corporate Transaction would also constitute a
change in the ownership or effective control of the Company, or a change in the
ownership of a substantial portion of the Company’s assets, within the meaning
of subsection (a)(2)(A)(v) of Section 409A of the Code.

“Covered Employee” means a “covered
employee” within the meaning of Section 162(m) of the Code.

“Designated Beneficiary” means
the beneficiary designated by a Participant, in a manner determined by the Committee,
to receive amounts due or exercise rights of the Participant in the event of
the Participant’s death. In the absence of an effective designation by a
Participant, “Designated Beneficiary” means the Participant’s estate.

“Exchange Act” means the Securities
Exchange Act of 1934, as amended from time to time, or any successor law.

“Fair Market Value” means,
(i) with respect to Stock, (A) for so long as such Stock is readily
tradeable on an established securities market (within the meaning of
Section 409A), the closing price on the trading day of the grant, and
(B) otherwise, the fair market value of such Stock determined by the
Committee by a reasonable application of a reasonable valuation method (within
the meaning of Section 409A); and, (ii) with respect to any other
property, the fair market value of such property as determined by the Committee
in good faith in the manner established by the Committee from time to time.

“ISO” has the meaning set forth
in Section 6(a).

“NSO” has the meaning set forth
in Section 6(a).

“Option” has the meaning set
forth in Section 6(a).

“Participant” means a person
selected by the Committee to receive an Award under the Plan.

“Performance Award” means an
Award subject to Performance Criteria. The Committee in its discretion may
grant Performance Awards that are intended to qualify for the performance-based
compensation exception under Section 162(m) of the Code and Performance
Awards that are not intended so to qualify.

“Performance Criteria” means
specified criteria the satisfaction of which is a condition to the grant,
exercisability, vesting, payment or full enjoyment of an Award. For purposes of
Performance Awards that are intended to qualify for the performance-based

 

 

compensation exception under Section 162(m) of the Code,
a Performance Criterion shall mean an objectively determinable measure of
performance relating to any of or to any combination of the following
(determined either on a consolidated basis or, as the context permits, on a
divisional, subsidiary, line of business, project or geographical basis or in
combinations thereof): (i) sales; revenues; assets; expenses; earnings
before or after deduction for all or any portion of interest, taxes,
depreciation, amortization or other items, whether or not on a continuing
operations or an aggregate or per share basis; return on equity, investment,
capital or assets; one or more operating ratios; borrowing levels, leverage
ratios or credit rating; market share; capital expenditures; cash flow; stock
price; stockholder return; network deployment; sales of particular products or
services; customer acquisition, expansion and retention; or any combination of
the foregoing; or (ii) acquisitions and divestitures (in whole or in
part); joint ventures and strategic alliances; spin-offs, split-ups and the
like; reorganizations; recapitalizations, restructurings, financings (issuance
of debt or equity), or refinancings; transactions that would constitute a
change of control; or any combination of the foregoing. A Performance Criterion
measure and targets with respect thereto determined by the Committee need not
be based upon an increase, a positive or improved result or avoidance of loss.
Prior to the grant, exercisability, vesting, payment or full enjoyment of the
Performance Award, as the case may be, the Committee will determine whether the
Performance Criteria have been attained and such determination will be
conclusive. If the Performance Criteria are not attained, no other Award will
be provided in substitution of the Performance Award with respect to which such
Performance Criteria have not been met.

“Reporting Person” means a person
subject to Section 16 of the Exchange Act.

“Restricted Period” has the
meaning set forth in Section 8(a).

“Restricted Stock” has the
meaning set forth in Section 8(a).

“Restricted Stock Unit” has the
meaning set forth in Section 8(b).

“Stock Appreciation Right” or “SAR”
has the meaning set forth in Section 7(a).

“Stock Unit Award” has the
meaning set forth in Section 8(b).

“Unrestricted Stock” has the
meaning set forth in Section 8(a).

“Unrestricted Stock Unit” has the
meaning set forth in Section 8(b).

4.                                      Eligibility

All key employees, all directors
and all consultants of the Company (or of any Affiliate) whom the Committee
considers to be capable of contributing to the successful performance of the
Company are eligible to be Participants in the Plan, provided that, ISOs may be
granted only to employees of the Company or of any parent or subsidiary
corporation of the Company, as those terms are used in Section 424 of the
Code.

 

 

5.                                      Stock Available for Awards

(a)                                  Amount.  Subject to
the other subsections of this Section 5 and to Section 10, no more
than 3,200,000 shares of Common Stock in the aggregate may be delivered under
or in satisfaction of Awards. Shares issued under the Plan may consist of
authorized but unissued shares or treasury shares. No fractional shares will be
issued under the Plan.

(b)                                 Fungible Share Plan.  Each share
of Stock subject to an Award consisting of Options and/or SARs shall be counted
against the limits set forth in Section 5(a) as one (1) share. Each
share of Stock subject to any Award other than an award consisting of Options
and/or SARs shall be counted against the limits set forth in Section 5(a)
as one and six-tenths (1.6) shares.

(c)                                  Reversion to the Plan.  For the
avoidance of doubt, if an outstanding Award for any reason expires or is
terminated or canceled without having been exercised or settled in full, or if
shares of Stock acquired pursuant to an Award subject to forfeiture or
repurchase are forfeited or repurchased by the Company for an amount not
greater than the Participant’s purchase price, the shares of Stock allocable to
the terminated portion of such Award or such forfeited or repurchased shares of
Stock shall again be available for issuance under the Plan. Shares of Stock
shall not be deemed to have been issued pursuant to the Plan with respect to
any portion of an Award that is settled in cash or other property (other than
shares of Stock). Upon payment in shares of Stock pursuant to the exercise of
an SAR, the number of shares available for issuance under the Plan shall be
reduced as provided in Section 7(c).

(d)                                 Certain Other Company Awards.  Common
Stock issued under awards granted by another company (“other company awards”)
and assumed by the Company in connection with a merger, consolidation, stock
purchase or similar transaction, or issued by the Company under awards
substituted for other company awards in connection with a merger,
consolidation, stock purchase or similar transaction, shall not reduce the
shares available for Awards under the Plan; provided,
that the maximum number of shares that may be issued pursuant to ISOs (as
defined below) shall be determined in a manner consistent with Section 422
of the Code and the rules thereunder.

(e)                                  Limit on Individual Grants.  In the
case of an Award intended to be eligible for the performance-based
compensation exception under Section 162(m) of the Code: (i) the
maximum number of shares of Common Stock subject to Options and SARs that may
be granted to any Participant in the aggregate in any calendar year shall not
exceed, in each case, 1,000,000, and the maximum number of shares of Common
Stock that may be granted as Stock Awards pursuant to Section 8 to any
Participant in the aggregate in any calendar year shall not exceed 625,000,
subject in each case to adjustment under Section 10 (for purposes of the
preceding sentence, the repricing of an Option or SAR shall be treated as a new
grant to the extent required under Section 162(m) of the Code).

 

 

6.                                      Stock Options

(a)                                  Grant of Options.  Subject to
the provisions of the Plan, the Committee may grant both (i) options (“Options”)
to purchase shares of Common Stock that are intended to comply with the
requirements of Section 422 of the Code and the rules thereunder (“ISOs”)
and (ii) Options that are not intended to comply with such requirements (“NSOs”).
The Committee shall determine the number of shares subject to each Option and
the exercise price therefor, which shall not be less than 100% of the Fair
Market Value of the Common Stock on the date of grant. An ISO granted to an
employee described in Section 422(b)(6) of the Code must have an exercise
price that is not less than 110% of such fair market value. In no event,
however, shall the exercise price be less, in the case of an original issue of
authorized stock, than par value per share.

(b)                                 Terms and Conditions.  Each
Option shall be exercisable at such times and subject to such terms and
conditions as the Committee may specify in the applicable grant or thereafter.
An ISO may not be exercised after the period provided in Treas. Reg.
Section 1.422-2(a)(2)(iii) and Treas. Reg. Section 1.422-2(d).
The Committee may impose such conditions with respect to the exercise of
Options, including conditions relating to applicable federal or state
securities laws, as it considers necessary or advisable.

(c)                                  Payment.  No shares
shall be delivered pursuant to any exercise of an Option until payment in full
of the exercise price therefor is received by the Company. Such payment may be
made in whole or in part in cash or, to the extent legally permissible and
expressly permitted by the Committee at or after the grant of the Option, by
delivery of other property such as shares of Common Stock that have been owned
by the optionee for at least six months (or such other period as the Committee
may determine), valued at their Fair Market Value on the date of delivery or
such other lawful consideration, including a payment commitment of a financial
or brokerage institution, as the Committee may determine; or any combination of
the foregoing permitted forms of payment.

7.                                      Stock Appreciation Rights

(a)                                  Grant of SARs.  Subject to
the provisions of the Plan, the Committee may grant rights to receive any
excess in value of shares of Common Stock over the exercise price (“Stock
Appreciation Rights” or “SARs”). The Committee shall determine at the time of
grant or thereafter whether SARs are settled in cash, Common Stock or other
securities of the Company, Awards or other property, and may define the manner
of determining the excess in value of the shares of Common Stock. The Committee
shall fix the exercise price of each SAR, which shall not be less than 100% of
the Fair Market Value of the Common Stock at the date of grant.

(b)                                 Terms and Conditions.  Each SAR
shall be exercisable at such times and subject to such terms and conditions as
the Committee may specify in the applicable grant or thereafter. The Committee
may impose such conditions with respect to the exercise of SARs, including
conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable.

 

 

(c)                                  No Net Share Counting.  SARs to be
settled in shares of Common Stock shall be counted in full against the number
of shares available for award under the Plan under Section 5(a),
regardless of the number of shares of Common Stock issued upon settlement of
the SAR.

8.                                      Stock, Units, Other Awards and Performance
Criteria

(a)                                  Restricted or Unrestricted Stock
Awards.  The Committee may grant shares of Common
Stock subject to forfeiture (“Restricted Stock”) and determine the duration of
the period (the “Restricted Period”) during which, and the conditions under
which, the shares may be forfeited to the Company and the other terms and
conditions of such Awards. Shares of Restricted Stock may not be sold,
assigned, transferred, pledged or otherwise encumbered, except as permitted by
the Committee, during the Restricted Period. Shares of Restricted Stock shall be
evidenced in such manner as the Committee may determine. Any certificates
issued in respect of shares of Restricted Stock shall be registered in the name
of the Participant and unless otherwise determined by the Committee, deposited
by the Participant, together with a stock power endorsed in blank, with the
Company. At the expiration of the Restricted Period, the Company shall deliver
such certificates to the Participant or if the Participant has died, to the
Participant’s Designated Beneficiary. The Committee also may make Awards of
shares of Common Stock that are not subject to restrictions or forfeiture, on
such terms and conditions as the Committee may determine from time to time (“Unrestricted
Stock”). Shares of Restricted Stock or Unrestricted Stock may be issued for
such consideration, if any, as the Committee may determine consistent with
applicable law.

(b)                                 Restricted or Unrestricted Stock
Unit Awards.  The Committee may grant Awards (“Stock Unit
Awards”) consisting of units representing shares of Common Stock. Each Stock
Unit Award shall represent the unfunded and unsecured commitment of the Company
to deliver to the Participant at a specified future date or dates one or more
shares of Common Stock (including, if so provided with respect to the Award,
shares of Restricted Stock), subject to the satisfaction of any vesting or
other terms and conditions established with respect to the Award as the
Committee may determine. No Participant or Designated Beneficiary holding a
Stock Unit Award shall be treated as a stockholder with respect to the shares
of Common Stock subject to the Award unless and until such shares are actually
delivered under the Award. Stock Unit Awards may not be sold, assigned,
transferred, pledged or otherwise encumbered except as permitted by the
Committee. The Committee may make Awards of Stock Units that are subject to
restrictions or forfeiture (“Restricted Stock Units”) or Stock Units that are
not subject to such restrictions (“Unrestricted Stock Units”), in each case on
such terms and conditions as the Committee may determine from time to time.

(c)                                  Other Awards.  The
Committee may grant Awards (including Performance Awards) other than Options,
SARs, Restricted Stock, Unrestricted Stock or Stock Unit Awards.

 

 

(d)                                 Performance Goals.  The
Committee may establish Performance Criteria on which the granting of
Performance Awards, Restricted Stock, Unrestricted Stock, or Stock Unit Awards,
or the vesting of Restricted Stock or Restricted Stock Unit Awards, will be
subject. The Committee shall determine whether any Performance Criteria so
established have been achieved, and if so to what extent, and its determination
shall be binding on all persons.

9.                                      General Provisions Applicable to Awards

(a)                                  Documentation and Legal
Conditions on Delivery of Stock.  Each Award shall be evidenced by a writing
delivered to the Participant or agreement executed by the Participant
specifying the terms and conditions thereof and containing such other terms and
conditions not inconsistent with the provisions of the Plan as the Committee
considers necessary or advisable to achieve the purposes of the Plan or to
comply with applicable tax and regulatory laws and accounting principles. The
Company will not be obligated to deliver any shares of Stock pursuant to the
Plan or to remove any restriction from shares of Stock previously delivered
under the Plan until: the Company’s counsel has approved all legal matters in
connection with the issuance and delivery of such shares; if the outstanding
Stock is at the time of delivery listed on any stock exchange or national
market system, the shares to be delivered have been listed or authorized to be
listed on such exchange or system upon official notice of issuance; and all
conditions of the Award have been satisfied or waived. If the sale of Stock has
not been registered under the Securities Act of 1933, as amended, the Company
may require, as a condition to exercise of the Award, such representations or
agreements as counsel for the Company may consider appropriate to avoid
violation of such Act. The Company may require that certificates evidencing
Stock issued under the Plan bear an appropriate legend reflecting any
restriction on transfer applicable to such Stock.

(b)                                 Application of Code
Section 409A.  Awards under the Plan are intended either to
be exempt from the rules of Section 409A of the Code or to satisfy those
rules, and shall be construed accordingly. Granted Awards may be modified at
any time, in the Committee’s discretion, so as to increase the likelihood of exemption
from or compliance with the rules of Section 409A of the Code.

(c)                                  Committee Discretion.  Awards may
be made alone or in combination with other Awards, including Awards of other
types. The terms of Awards of the same type need not be identical, and the
Committee need not treat Participants uniformly (subject to the requirements of
applicable law). Except as otherwise expressly provided by the Plan or a
particular Award, any determination with respect to an Award may be made by the
Committee at the time of grant or at any time thereafter.

(d)                                 Dividends and Cash Awards.  In the
discretion of the Committee, any Award under the Plan may provide the
Participant with (i) dividends or dividend equivalents payable (in cash or
in the form of Awards under the Plan) currently or deferred with or without
interest and (ii) cash payments in lieu of or in addition to an Award.

 

 

(e)                                  Termination of Service.  Unless the
Committee expressly provides otherwise, the following rules shall apply in
connection with the cessation of a Participant’s employment or other service
relationship with the Company and its Affiliates. Immediately upon the
cessation of the Participant’s employment or other service relationship with
the Company and its Affiliates an Award requiring exercise will cease to be
exercisable and all Awards to the extent not already fully vested will be
forfeited, except that:

(i)                                     All Options and SARs held by a Participant
immediately prior to his or her death, to the extent then exercisable, will
remain exercisable by such Participant’s executor or administrator or the
person or persons to whom the Option or SAR is transferred by will or the
applicable laws of descent and distribution, in each case for the lesser of
(i) the one year period ending with the first anniversary of the
Participant’s death or (ii) the period ending on the latest date on which
such Option or SAR could have been exercised without regard to this subsection
(e), and shall thereupon terminate; and

(ii)                                  all Options and SARs held by the Participant
immediately prior to the cessation of the Participant’s employment or other
service relationship for reasons other than death and except as provided in
(iii) below, to the extent then exercisable, will remain exercisable for
the lesser of (1) a period of three months or (2) the period ending
on the latest date on which such Option or SAR could have been exercised
without regard to this subsection (e), and shall thereupon terminate.

(iii)                               Unless the Committee expressly provides otherwise,
a Participant’s “employment or other service relationship with the Company and
its Affiliates” will be deemed to have ceased, in the case of an employee
Participant, upon termination of the Participant’s employment with the Company
and its Affiliates (whether or not the Participant continues in the service of
the Company or its Affiliates in some capacity other than that of an employee
of the Company or its Affiliates), and in the case of any other Participant,
when the service relationship in respect of which the Award was granted
terminates (whether or not the Participant continues in the service of the
Company or its Affiliates in some other capacity).

(f)                                    Transferability.  No Award
may be transferred other than by will or the laws of descent and distribution
and may be exercised, during the life of the Participant, only by the
Participant, except that, as to Awards other than ISOs, the Committee may
permit certain transfers to the Participant’s family members or to certain
entities controlled by the Participant or his or her family members.

(g)                                 Withholding Taxes.  The
Participant shall pay to the Company, or make provision satisfactory to the
Committee for payment of, any taxes or social insurance contributions required
by law to be withheld in respect of Awards under the Plan no later than the
date of the event creating the tax liability. The Company and its Affiliates
may, to the extent permitted by law, deduct any such tax (or social insurance)
obligations from any payment of any kind due to the Participant hereunder or
otherwise. In the Committee’s

 

 

discretion, the minimum tax (or social insurance)
obligations required by law to be withheld in respect of Awards may be paid in
whole or in part in shares of Common Stock, including shares retained from the
Award creating the obligation, valued at their Fair Market Value on the date of
retention or delivery.

(h)                                 Amendment of Award.  Except as
otherwise expressly provided in the Plan, the Committee may amend, modify, or
terminate any outstanding Award, including substituting therefor another Award
of the same or a different type, changing the date of exercise or realization
and converting an ISO to an NSO. Any such action shall require the Participant’s
consent unless the Committee determines that the action would not materially
and adversely affect the Participant.

(i)                                     Foreign Nationals.  The
Committee may take any action consistent with the terms of the Plan, either
before or after an Award has been granted, which the Committee deems necessary
or advisable to comply with government laws or regulatory requirements of any
foreign jurisdiction, including but not limited to modifying or amending the
terms and conditions governing any Awards, establishing sub-plans under the
Plan, or adopting such procedures as the Committee may determine to be
appropriate in response to differences in laws, rules, regulations or customs
of such foreign jurisdictions with respect to tax, securities, currency,
employment, accounting or other matters.

(j)                                     Option or SAR Repricing.  Without
the affirmative vote of holders of a majority of the shares of Stock cast in
person or by proxy at a meeting of the stockholders of the Company at which a
quorum representing a majority of all outstanding shares of Stock is present or
represented by proxy, neither the Board nor the Committee shall approve either
(a) the cancellation of outstanding Options or SARs and the grant in
substitution therefor of new Options or SARs having a lower exercise price or
(b) the amendment of outstanding Options or SARs to reduce the exercise
price thereof. This paragraph shall not be construed to apply to: (i) ”issuing
or assuming a stock option in a transaction to which section 424(a)
applies,” within the meaning of Section 424 of the Code or (ii) the
substitution or assumption of an Award by reason of or pursuant to a corporate
transaction, to the extent such substitution or assumption would not be treated
as a grant of a new stock right or a change in the form of payment for purposes
of Section 409A of the Code within the meaning of Prop. Treas. Reg.
Section 1.409A-1(b)(5)(iii)(D)(3), Notice 2005-1, A-4(d) and any
subsequent Section 409A guidance (whether administrative or regulatory, or
(iii) adjustments made pursuant to Section 10.

10.                               Effect of Certain Transactions

(a)                                  Assumptions or Substitutions.  Except as
otherwise expressly provided in an Award Agreement:

(i)                                     In the event of a Corporate Transaction in which
there is an acquiring or surviving entity, the Committee may, unless the
Committee determines that doing so is inappropriate or unfeasible, provide for
the continuation or assumption of some or all outstanding Awards, or for the
grant of new awards in

 

 

substitution
therefor, by the acquiror or survivor or an entity controlling, controlled by
or under common control with the acquiror or survivor, in each case on such
terms and subject to such conditions (including vesting or other restrictions)
as the Committee determines are appropriate. Unless the Committee determines
otherwise, the continuation or assumption shall be done on terms and conditions
consistent with Section 409A of the Code.

(ii)                                  In the event of a Corporate Transaction (whether
or not there is an acquiring or surviving entity), the Committee may provide
(unless the Committee determines otherwise, on terms and conditions consistent
with Section 409A of the Code) for (A) treating as satisfied any
vesting condition on any such Award or for (B) the accelerated delivery of
shares of Stock issuable under each such Award consisting of Restricted Stock
Units.

(iii)                               Except as otherwise expressly provided in an Award
agreement, each Award (unless assumed pursuant to the
Section 10(a)(i) above), will terminate upon consummation of the
Corporate Transaction, provided that Restricted Stock Units accelerated pursuant
to clause (B) of Section 10(a)(ii) shall be treated in the same
manner as other shares of Stock (subject to Section 10(a)(iv))).

(iv)                              Any share of Stock delivered pursuant to
Section 10(a)(ii) above with respect to an Award may, in the
discretion of the Committee, contain such restrictions, if any, as the
Committee deems appropriate to reflect any performance or other vesting
conditions to which the Award was subject and that did not lapse in connection
with the Corporate Transaction. In the case of Restricted Stock, the Committee
may require that any amounts delivered, exchanged or otherwise paid in respect
of Stock in connection with the Corporate Transaction be placed in escrow or
otherwise made subject to such restrictions as the Committee deems appropriate to
carry out the intent of the Plan.

(v)                                 If the Corporate Transaction is one in which
holders of Stock will receive upon consummation a payment (whether cash,
non-cash or a combination of the foregoing), the Committee may provide for
payment (a “cash-out”), with respect to some or all Awards, equal in the case
of each affected Award to the excess, if any, of (A) the Fair Market Value
of one share of Stock times the number of shares of Stock subject to the Award,
over (B) the aggregate exercise price, if any, under the Award, in each
case on such payment terms (which need not be the same as the terms of payment
to holders of Stock) and other terms, and subject to such conditions, as the
Committee determines.

(b)                                 Changes In, Distributions With
Respect To And Redemptions Of The Stock

(i)                                     In the event of any stock dividend or other
similar distribution of stock or other securities of the Company, stock split
or combination of shares (including a reverse stock split), recapitalization,
conversion, reorganization, consolidation, split-up, spin-off, combination,
merger, exchange of stock,

 

 

redemption
or repurchase of all or part of the shares of any class of stock or any change
in the capital structure of the Company or an Affiliate or other transaction or
event, the Committee may, as appropriate in order to prevent enlargement or
dilution of benefits intended to be made available under the Plan, make
adjustments to the maximum number of shares that may be delivered as per
Section 5 and may also make appropriate adjustments to the number and kind
of shares of stock or securities subject to Awards then outstanding or
subsequently granted, any exercise prices relating to Awards and any other
provision of Awards affected by such change.

(ii)                                  The Committee may also make adjustments of the
type described in Section 10(a) and 10(b)(i) above to take into
account distributions to stockholders other than stock dividends or normal cash
dividends, material changes in accounting practices or principles,
extraordinary dividends, mergers, consolidations, acquisitions, dispositions or
similar transactions involving Stock, or any other event, if the Committee
determines that adjustments are appropriate to avoid distortion in the
operation of the Plan and to preserve the value of Awards made hereunder,
having due regard for: the qualification of ISOs under Section 422 of the
Code, the continued exemption of the Awards from (or satisfaction by the Awards
of the rules of) Section 409A of the Code, where applicable and, in the case
of Awards intended to qualify for the performance-based compensation
exception Section 162(m) of the Code, having due regard continued
qualification for that exception.

(iii)                               References in the Plan to shares of Stock will be
construed to include any stock or securities resulting from an adjustment
pursuant to this Section 10.

11.                               Miscellaneous

(a)                                  No Right To Employment.  No person
shall have any claim or right to be granted an Award. Neither the adoption,
maintenance, nor operation of the Plan nor any Award hereunder shall constitute
a contract of employment or confer upon any employee, director or consultant of
the Company or of any Affiliate any right with respect to the continuance of
his/her employment by or other service with the Company or any such Affiliate nor
shall it or they be construed as affecting the rights of the Company (or
Affiliate) to terminate the service of any person at any time or otherwise
change the terms of such service, including, without limitation, the right to
promote, demote or otherwise re-assign any employee or other service provider
from one position to another within the Company or any Affiliate.

(b)                                 No Rights As Stockholder.  Subject to
the provisions of the applicable Award, no Participant or Designated
Beneficiary shall have any rights as a stockholder with respect to any shares
of Common Stock to be issued under the Plan until he or she becomes the holder
thereof. A Participant to whom Restricted Stock or Unrestricted Stock

 

 

is awarded shall be considered a stockholder of the Company
at the time of the Award except as otherwise expressly provided in the
applicable Award.

(c)                                  Effective Date.  The Plan
shall be effective on the date it is approved by the stockholders.

(d)                                 Amendment of Plan.  The Board
may amend, suspend, or terminate the Plan or any portion thereof at any time,
subject to such stockholder approval as the Board determines to be necessary or
advisable. Further, under all circumstances, the Committee may, but shall not
be required to, make non-substantive administrative changes to the Plan as to
conform with or take advantage of governmental requirements, statutes or
regulations. Except as provided in Section 9(h), no such amendment,
modification or termination will adversely affect the rights of any Participant
(without his or her consent) under any Award previously granted and no
amendment will, without the approval of the stockholders of the Company,
effectuate a change for which stockholder approval is required in order for the
Plan to qualify or to continue to qualify under Rule 16b-3 or for the Plan
to qualify or to continue to qualify under Section 422 of the Code or for
Awards intended to be eligible for the performance-based exception under
Section 162(m) of the Code to qualify as such or continue such eligibility.

(e)                                  Governing Law.  The
provisions of the Plan shall be governed by and interpreted in accordance with
the laws of the State of Delaware.

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