Document:

EX-10.48

Exhibit 10.48

FIRST AMENDMENT TO

AMENDED AND RESTATED LICENSE AGREEMENT

     This First Amendment to Amended and Restated License Agreement (the “Amendment”) is
entered into as of December 29, 2008 (the “Amendment Date”) by and between GTx, Inc., a
Delaware corporation, located at 3 N. Dunlap Street, Memphis, Tennessee 38163 (“GTx”), and
University of Tennessee Research Foundation, a Tennessee corporation, having an office at
UT Conference Center, Suite 211, 600 Henley Street, Knoxville, Tennessee 37996-4122 (“UTRF”), for
the purpose of amending that certain Amended and Restated License Agreement, dated September 24,
2007, between GTx and UTRF (the “Original Agreement” and, collectively with this Amendment, the
“Agreement”).

Capitalized terms used but not defined herein shall have the respective meanings ascribed to such
terms in the Original Agreement.

RECITALS

     Whereas, the Parties desire to amend the Original Agreement to clarify GTx’s payment
obligations to UTRF for consideration received by GTx from its Sublicensees.

     Now, Therefore, in consideration of the foregoing and the covenants and promises
contained in this Amendment and other good and valuable consideration, the Parties agree as
follows:

	1.	 	Amendment of “Sublicense Revenue” Definition. Section 1.36 of the Original Agreement is
hereby amended and restated to read in its entirety as follows:

	 	 	“1.36 “Sublicense Revenue” shall mean all payments actually received by GTx pursuant
to and in connection with each Sublicense, including, without limitation, up-front license
fees, milestone payments, license maintenance fees, election fees, and all other fees and
payments received by GTx under each Sublicense agreement, subject to the following:

	 	A.	 	Deductions. There shall be deducted from Sublicense
Revenue payments received by GTx as reimbursement for actual, otherwise
unreimbursed, out-of-pocket expenses as set out in the applicable Sublicense
agreement, provided that only reimbursements for expenses incurred in the
development of one or more Licensed Products covered by such Sublicense
agreement may be deducted from Sublicense Revenue and then only to the extent
of expenses incurred from and after the date of the Sublicense agreement for
pre-clinical or clinical research and development, including development of the
formulation and manufacturing process, manufacturing of preclinical and
clinical supplies and analytical and stability testing as required by the Food
and Drug Administration to support a New Drug Application filing for the
Licensed Product. However, no part of any reimbursement received by GTx from
Ipsen for actual out-of-pocket pre-clinical and clinical research and
development expenses incurred by GTx for the PIN Indication (as defined in the
Ipsen Sublicense) will be considered Sublicense Revenue, although the amount of
any premium on Ipsen’s share of Past Initial Development Expenses (as defined
in the Ipsen Sublicense) for the PIN Indication paid to GTx by Ipsen under
subsection (ii) of Section 4.2(e)(iii) of the Ipsen Sublicense will be
considered Sublicense Revenue. Additionally, Sublicense Revenue will not
include any payments made to Third Parties by or on behalf of a Sublicensee for
conducting clinical trials, filing new drug applications, commercially
launching a product and/or

 

 

	 	 	 	marketing and selling a product, since these are not payments received by GTx
from a Sublicensee on account of the Sublicense.
	 
	 	B.	 	Exclusions. Sublicense Revenue will not include:

	 	(a)	 	running royalties received by GTx that are calculated
as a percentage of Sublicensee’s Net Sales;
	 
	 	(b)	 	consideration paid to GTx in exchange for securities of
GTx up to the “fair market value” (as hereinafter defined) of such
securities;
	 
	 	(c)	 	any milestone payment received by GTx from Ipsen on
account of Regulatory Approval (as defined in the Ipsen Sublicense) being
obtained in a Major Country (as defined in the Ipsen Sublicense) for a
diagnostic test for the PIN Indication or prostate cancer, as provided in
Section 3.2 (8) of the Ipsen Sublicense; and
	 
	 	(d)	 	in the event the Sublicense of Licensed Subject Matter
is granted in conjunction with a license of distinct GTx technology that is
not Licensed Subject Matter (“Other Technology”), amounts allocable to such
Other Technology as reasonably established by GTx and the Sublicensee and
set out in the Sublicense agreement; provided that if no such allocation is
made in the Sublicense agreement, then the prorated portion of any fees or
payments (not otherwise excluded or deducted pursuant to this Section 1.36)
made to GTx under such Sublicense agreement in consideration for such Other
Technology shall be excluded.

	 	 	 	For purposes of this Section 1.36 (B), “fair market value” shall mean (1) with
respect to the Common Stock of GTx, the closing price of the Common Stock as quoted
or traded on the NASDAQ Global Market (or other applicable exchange or public
market) on the day of closing of such stock sale, or if the closing of such stock
sale does not take place on a trading day, the closing price on the last trading day
prior to the day of closing of such stock sale; and (2) with respect to any other
security of GTx other than Common Stock, the parties shall seek in good faith to
agree on the fair market value of such security and in the event the parties cannot
mutually agree on such value, the determination of fair market value shall be
submitted to dispute resolution pursuant to Section 11.1. Also for clarity, in the
case of the purchase of securities of GTx by a Sublicensee or an Affiliate of
Sublicensee, (i) if such securities are acquired in connection with the receipt of
rights under Licensed Subject Matter, then any amounts paid in excess of the fair
market value of such securities shall be included as an element of Sublicense
Revenue, (ii) if such securities are acquired by a Sublicensee in a transaction not
in connection with the grant of rights (or the grant of further rights) under
Licensed Subject Matter, then no portion of the purchase price of such securities
shall constitute Sublicense Revenue, regardless of the relationship between purchase
price and fair market value, and (iii) if GTx were to be acquired by a Sublicensee
or an Affiliate of a Sublicensee, no portion of the purchase price in any form shall
be Sublicense Revenue.

2. Amendment to Dispute Resolution. Section 11.1 of the Original Agreement is hereby amended and
restated to read in its entirety as follows:

	 	 	“11.1 Except for the right of either party to apply to a court of competent jurisdiction for
a

2

 

	 	 	temporary restraining order, a preliminary injunction, or other equitable relief to preserve
the status quo or to prevent irreparable harm, any and all claims, disputes or controversies
arising under, out of, or in connection with this Agreement, including without limitation
any dispute with respect to the scope of this Section 11, shall be resolved upon thirty (30)
days written notice of either party to the other by final and binding arbitration in
Knoxville, Tennessee (or other site acceptable to both Parties) under the Commercial
Arbitration Rules of the American Arbitration Association, or the Patent Arbitration Rules
if applicable, then in effect. The arbitrator(s) shall have no power to add to, subtract
from or modify any of the terms or conditions of this Agreement, nor to award punitive
damages. The prevailing party in any such arbitration shall, in addition to recovering
reasonable out-of-pocket costs of the arbitration, be entitled to an award of reasonable
attorneys fees incurred in connection with the arbitration and any action necessary to
perfect the arbitration award as a judgment, and for any collection action required to
secure payment of any arbitration award. Any award rendered in such arbitration may be
entered and enforced by either party in either the courts of the State of Tennessee or in
the United States District Court for the Eastern District of Tennessee, to whose
jurisdiction for such purposes UTRF and GTx each hereby irrevocably consents and submits, or
in any other United States court having jurisdiction.”

	3.	 	Amendment to Assignability. Section 13.1 of the Original Agreement is hereby amended and
restated to read in its entirety as follows:
	 
	 	 	“13.1 This Agreement shall be binding upon and shall inure to the benefit of UTRF and its
assigns and successors, and shall be binding upon and shall inure to the benefit of GTx and
its assigns provided that prior written approval by UTRF is first obtained, which approval
shall not be unreasonably withheld. Notwithstanding the foregoing, no prior written approval
from UTRF shall be required for any assignment by GTx to (i) an Affiliate of GTx (or any
entity into which GTx shall have been merged or consolidated, provided that at least 51% of
such merged or consolidated entity is owed by shareholders holding at least 51% of GTx
immediately prior to such merger or consolidation) or (ii) a Third Party which acquires all
or substantially all of GTx’s assets or a Controlling interest in the business to which this
Agreement relates if, but only if, the Third Party can reasonably demonstrate prior to such
transaction, either: (I) a financial net worth or market cap equal to or better than the
financial net worth of GTx existing prior to the acquisition, but not less than a net worth
of One Hundred Million Dollars ($100,000,000); or (II) a market cap of Five Hundred Million
Dollars ($500,000,000). No assignment shall be deemed effective unless such assignee has
agreed in writing to be bound by the terms and provisions of this Agreement. Any attempt to
assign or assignment made in violation of this Section 13.1 shall be void ab initio. GTx
shall give notice to UTRF of any assignment of this Agreement within thirty (30) days
thereafter, such notice to include a copy of assignee’s written agreement to be bound by the
terms and provisions of this Agreement. For the avoidance of doubt, any consideration
received by GTx from a permitted assignee in consideration of an assignment pursuant to this
Section 13.1 shall not be deemed Sublicense Revenue.”
	 
	4.	 	Clarification of the Treatment of Other Payments Under The Ipsen Sublicense. For the
avoidance of doubt, the Parties desire to confirm the treatment of payments received to date
and which may be received in the future under the Ipsen Sublicense, as follows:

	 	(a)	 	Election Fee. Any payment received by GTx from Ipsen pursuant to Section
3.1(c) of the Ipsen Sublicense shall be treated as Sublicense Revenue under the
Agreement.
	 
	 	(b)	 	Milestone Events. Any payment received by GTx from Ipsen pursuant to

3

 

	 	 	 	Section 3.2 of the Ipsen Sublicense for Milestone Events numbered 1, 4 or 6 shall
not be treated as Sublicense Revenue under the Agreement to the extent such payments
are made with respect to the ADT Indication (as defined in the Ipsen Sublicense) and
any payment received by GTx from Ipsen for Milestone Events numbered 2, 3 and 5
shall be treated as Sublicense Revenue under the Agreement to the extent such
payments are made with respect to the PIN Indication. Any payment received by GTx
from Ipsen pursuant to Milestone Event number 7 will be considered Sublicense
Revenue if, but only if and to the extent that, the required milestone payment is
paid on account of a Licensed Product for the PIN Indication, and if and only if and
to the extent that payments are made under such Milestone Event on account of a
Licensed Product for the ADT indication, then such payment shall not be Sublicense
Revenue.

	 	(c)	 	Royalty Payments Under Ipsen Sublicense.

	 	1.	 	UTRF shall be paid Running Royalties on Ipsen’s receipts from
sales of Licensed Product (as defined in the Ipsen Sublicense) solely to the
extent such payments are made with respect to the PIN Indication.
	 
	 	2.	 	For purposes of calculating Running Royalties on Net Sales
pursuant to Section 4.1B. of the Agreement, all deferrals pursuant to Section
3.9 of the Ipsen Sublicense of Royalty Payments (as defined in the Ipsen
Sublicense) on Ipsen’s Net Sales with respect to the PIN Indication shall
result in the deferral of Running Royalties to be paid to UTRF by GTx or its
Sublicensee, Ipsen, on the same Net Sales of Ipsen until such deferred payment
is made by Ipsen in accordance with the terms of Section 3.9 of the Ipsen
Sublicense, at which time both the Running Royalties, and any interest
attributable thereto (paid pursuant to Section 3.9 of the Ipsen Sublicense),
shall be paid to UTRF by GTx or Ipsen.
	 
	 	3.	 	Any interest payments received by GTx from Ipsen pursuant to
Section 3.7 of the Ipsen Sublicense shall not be treated as Sublicense Revenue
or Running Royalty under the Agreement.

	 	(d)	 	Sales by Sublicensees of Ipsen. Any payment received by GTx from Ipsen
pursuant to Section 3.5 of the Ipsen Sublicense as royalties on Net Sales of Licensed
Products by Ipsen’s Sublicensees shall not be treated as Sublicense Revenue under the
Agreement to the extent such payment is calculated as a percentage of such
Sublicensees’ Net Sales.
	 
	 	(e)	 	Initial Development Expenses. Any payment received by GTx from Ipsen pursuant
to Section 4.2(f)(iii) shall not be treated as Sublicense Revenue under the Agreement.
	 
	 	(f)	 	Calculation of the Opt-in Payment. Any payment received by GTx from Ipsen
pursuant to Section 4.3(c)(iii)(3) of the Ipsen Sublicense shall not be treated as
Sublicense Revenue under the Agreement.
	 
	 	(g)	 	Intellectual Property. Any payment received by GTx from Ipsen pursuant to
Article 9 of the Ipsen Sublicense for shared costs and expenses of patent prosecution,
maintenance, enforcement and defense shall not be treated as Sublicense Revenue under
the Agreement, provided that such costs and expenses are incurred after the Effective
Date of the Ipsen Sublicense.
	 
	 	(h)	 	Effect of Termination. The treatment of any payments received by GTx from
Ipsen pursuant to Ipsen’s continuing payment obligations under Article 12 of the Ipsen

4

 

	 	 	 	Sublicense shall be based on whether or not such payments would have constituted
Sublicense Revenue if they had been paid prior to the date of termination of the
Ipsen Sublicense.
	 
	 	(i)	 	Indemnification. Any payment received by GTx from Ipsen pursuant to Article 13
of the Ipsen Sublicense shall not be treated as Sublicense Revenue under the Agreement.
	 
	 	(j)	 	Up-Front Fees. The up-front fee GTx has already received from Ipsen in October
2006 upon its entering into the Ipsen Sublicense and the up-front fee payment received
from Ipsen in 2007 and 2008 and the up front fee payment it will receive in 2009
pursuant to the Ipsen Sublicense shall not be considered Sublicense Revenue.

	5.	 	Governing Law; Jurisdiction. This Amendment shall be governed by and construed in accordance
with the laws of Tennessee, without regard to conflicts of laws provisions.
	 
	6.	 	Entire Agreement. This Amendment and the Original Agreement (except to the extent expressly
amended by this Amendment) collectively embody the entire, final and complete agreement and
understanding between the parties and replace and supersede all prior discussions and
agreements between the parties with respect to the subject matter hereof or thereof. The
Agreement, as hereby amended, remains in full force and effect.
	 
	7.	 	Counterparts. This Amendment may be executed in two counterparts (which may be delivered by
facsimile or PDF), each of which shall be an original and both of which together shall
constitute the same document.

          In Witness Whereof, the Parties hereto have duly executed this Amendment as of the
Amendment Date.

	 	 	 	 	 	 	 
	GTx, Inc.	 	University of Tennessee Research Foundation
	 
	 	 	 	 	 	 
	By:

	 	/s/ Henry P. Doggrell
	 	By:
	 	/s/ Fred D. Tompkins
	 

	 	 
	 	 	 	 
	Name:

	 	Henry P. Doggrell
	 	Name:
	 	Fred D. Tompkins
	 

	 	 
	 	 	 	 
	Title:

	 	VP, General Counsel
	 	Title:
	 	President
	 

	 	 
	 	 	 	 

5EX-10.49

Exhibit 10.49

GTx, INC.

DIRECTORS’ DEFERRED COMPENSATION PLAN

(AMENDED AND RESTATED

EFFECTIVE NOVEMBER 4, 2008)

 

 

GTX, INC.

DIRECTORS’ DEFERRED COMPENSATION PLAN

Table of Contents

	 	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	Definitions
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	Election to Defer
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	Deferred Compensation Accounts
	 	 	3	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	Payment of Deferred Compensation
	 	 	4	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	Administration
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	Amendment of Plan
	 	 	5	 

 

 

ARTICLE I

DEFINITIONS

     1.1 “Board” shall mean the Board of Directors of GTx, Inc.

     1.2 “Cash Account” shall mean the account created by the Company pursuant to Article III
of this Plan in accordance with an election by a Director to receive deferred cash compensation
under Article II hereof.

     1.3 “Common Stock” shall mean the Common Stock of the Company.

     1.4 “Company” means GTx, Inc.

     1.5 “Director” shall mean a member of the Board of Directors of the Company who is not
an employee of the Company or any of its subsidiaries.

     1.6 “Fees” shall mean amounts earned for serving as a member of the Board, including any
committees of the Board.

     1.7 “He”, “Him” or “His” shall apply equally to male and female members of the Board.

     1.8 “Plan” shall mean the GTx, Inc. Directors’ Deferred Compensation Plan, as it may be
amended from time to time.

     1.9 “Stock Account” shall mean the account created by the Company pursuant to Article
III of this Plan in accordance with an election by a Director to receive stock compensation under
Article II hereof.

     1.10 “Stock Value” shall mean, for any given day, the closing price of the Company’s Common
Stock as reported on the Nasdaq Stock Market (“Nasdaq”) on the business day immediately preceding
such day, except as otherwise provided in the Plan. If the closing price is not available from
Nasdaq for the Common stock on a business day immediately preceding the date in question, then the
immediately preceding practicable date for which such closing price is available shall be used.

     1.11 “Year” shall mean calendar year.

ARTICLE II

ELECTION TO DEFER

     2.1 A Director may elect, on or before December 31 of any Year, to defer payment of all
or a specified part of all Fees earned during the Year following such election. Any person who
shall become a Director during any Year, and who was not a Director of the

2

 

Company on the preceding December 31, may elect, within thirty (30) days after becoming a
Director, to defer payment of all or a specified part of such Fees earned during the remainder of
such Year.

     2.2 The election to participate in the Plan and defer payments under the Plan shall be
designated by submitting a letter in the form attached hereto as Appendix A to the Secretary of the
Company by the applicable date under Paragraph 2.3.

     2.3 The election is irrevocable with respect to the Year to which it relates upon the
submission of such election to the Secretary of the Company. The election first submitted by a
Director shall remain effective with respect to Fees earned during subsequent Years, unless the
Director terminates it by written request delivered to the Secretary of the Company prior to the
commencement of the Year for which the termination is first effective.

ARTICLE III

DEFERRED COMPENSATION ACCOUNTS

     3.1 The Company shall maintain separate memorandum accounts for the Fees deferred by
each Director. Each Director shall be fully vested at all times in any amounts credited to his
Cash Account and Stock Account.

     3.2 The Company shall credit, on the date Fees become payable, to the Cash Account of
each Director the deferred portion of any Fees due the Director as to which an election to receive
cash has been made. Fees deferred in the form of cash (and interest thereon) shall be held in the
general funds of the Company.

     3.3 On the first day of each quarter, the Company shall credit the Cash Account of each
Director with interest calculated on the basis of the balance in such account on the first day of
each month of the preceding quarter at the prime rate of interest then in effect at First Horizon
National Bank, Memphis, Tennessee, or if no such rate shall be available, then such rate of
interest as is then published in the Wall Street Journal as the prevailing prime rate of interest.

     3.4 The Company shall credit the Stock Account of each Director who has elected to receive
deferred compensation in the form of Common Stock with the number of shares of Common Stock equal
in value to (i) the deferred portion of any Fees due the Director as to which an election to
receive Common Stock has been made, divided by the Stock Value on the date such Fees otherwise
would have been paid, (ii) any cash dividends (or the fair market value of dividends paid in
property other than dividends payable in Common Stock) payable on the number of shares of Common
Stock represented in each Director’s Stock Account, divided by the Stock Value on the date such
cash dividends are paid, and (iii) any stock dividends payable on the number of shares of Common
Stock represented in each Director’s Stock Account, equal in value to the Stock Value of such stock
dividends on the date such stock dividends are paid. Credits that are made to each Director’s
Stock Account pursuant to the preceding sentence shall be made, with respect to any Fees, on the
date that such Fees become payable and, with respect to any dividends, on the date that such
dividends are paid on Common Stock. If adjustments are

3

 

made to the outstanding shares of Common Stock as a result of stock-splits, recapitalizations,
mergers, consolidations and the like, an appropriate adjustment also will be made in the number of
shares of Common Stock credited to the Director’s Stock Account.

     3.5 Common Stock shall be computed to three decimal places.

     3.6 The right to receive Common Stock at a later date shall not entitle any person to rights
of a stockholder with respect to such Common Stock unless and until shares of Common Stock have
been issued to such person pursuant to Article IV hereof.

     3.7 The Company shall not be required to acquire, reserve, segregate, or otherwise set aside
shares of Common Stock for the payment of its obligations under the Plan, but shall make available
as and when required a sufficient number of shares of Common Stock to meet the needs of the Plan,
provided that the Company shall not be required to issue any fractional shares of Common Stock, and
any fractional share amounts shall be paid in cash to the Director, at the time the shares of
Common Stock are issued to such Director, based on the Stock Value of such Common Stock on the
payment date.

     3.8 Nothing contained herein shall be deemed to create a trust of any kind or any fiduciary
relationship. To the extent that any person acquires a right to receive payments from the Company
under the Plan, such right shall be no greater than the right of any unsecured general creditor of
the Company.

ARTICLE IV

PAYMENT OF DEFERRED COMPENSATION

     4.1 Amounts credited to a Director’s Cash Account and Stock Account shall be distributed in a
single lump sum to the Director on the date, if any, selected by the Director pursuant to the
Director’s election (made pursuant to Paragraph 2.2 of Article II) (or as soon as administratively
practicable thereafter); provided, however, that if the Director has not selected a distribution
date or the Director’s selected distribution date is after his ”separation from service” (as
defined in Treasury Regulation Section 1.409A-1(h)), then distribution shall be made on the date of
the “separation from service” in the form of a single lump sum. Notwithstanding the foregoing, if
the Director is a “specified employee” (as such term is defined in Internal Revenue Code Section
409A(a)(2)(B)(i)) of the Company or any successor entity thereto upon his or her “separation from
service”, then, solely to the extent necessary to avoid the incurrence of the adverse personal tax
consequences under Code Section 409A as a result of the payment of deferred compensation upon his
“separation from service”, the distribution shall be delayed until the earlier to occur of (i) the
date that is six months and one day after the date of the “separation from service” or (ii) the
date of the Director’s death. Amounts credited to a Director’s Cash Account shall be paid in cash.
Amounts credited to a Director’s Stock Account shall be paid in shares of Common Stock, subject to
Paragraph 3.7 hereof.

     4.2 Each Director shall have the right to designate a beneficiary who is to succeed to his
right to receive payments hereunder in the event of death. Any designated beneficiary shall

4

 

receive payments in the same manner as the Director if he had lived. In case of a failure of
designation or the death of a designated beneficiary without a designated successor, the balance of
the amounts contained in the Director’s Cash Account and/or Stock Account shall be payable in
accordance with Paragraph 4.1 to the Director’s or former Directors’ estate. No designation of
beneficiary or change in beneficiary shall be valid unless in writing signed by the Director and
filed with the Secretary of the Company.

ARTICLE V

ADMINISTRATION

     5.1 The Company shall administer the Plan at its expense. The Company has the exclusive
discretion and authority to construe and interpret the Plan, and to decide any and all questions of
fact, interpretation, definition, computation or administration arising in connection with the
operation of the Plan, including, without limitation, eligibility to participate in the Plan and
amount of benefits to be paid under the Plan. The rules, interpretations, computations and other
actions of the Company shall be final and binding on all parties.

     5.2
Except to the extent required by law, the right of any Director or any beneficiary to
any benefit or to any payment hereunder shall not be subject in any manner to attachment or other
legal process for the debts of such Director or beneficiary; and any such benefit or payment shall
not be subject to alienation, sale, transfer, assignment or encumbrance.

ARTICLE VI

AMENDMENT OF PLAN

     6.1
The Plan may be amended, suspended or terminated in whole or in part from time to
time by the Board, except that no amendment, suspension, or termination shall apply to the payment
to any Director or beneficiary of a deceased Director of any amounts previously credited to a
Director’s Cash Account or Stock Account without such Director’s (or beneficiary’s, if applicable)
express written consent.

5

 

APPENDIX A

Date: ____________

_____________________

Corporate Secretary

GTx, Inc.

_____________________

Dear Mr. ____________:

     Pursuant to the GTx, Inc. Directors’ Deferred Compensation Plan, as amended to date (the
“Plan”), I hereby elect to defer receipt of all or a portion of my Director’s fees for the calendar
year commencing on January 1, 20___in accordance with the percentages indicated below.

     [Insert the following paragraph for election forms completed in November or December 2008
only:] I hereby also elect to make this election effective for all of my Director’s fees previously
deferred under the Plan and any other amounts previously credited to my Cash Account and Stock
Account under the Plan. I understand that this election will supersede all my previous elections
under the Plan.

     I acknowledge and agree that this election is irrevocable and shall remain effective with
respect to my Director’s fees earned during subsequent calendar years, unless I terminate it by
written request to the Secretary of the Company prior to the commencement of the year for which the
termination is to be effective.

     I elect to have my Director’s fees (and committee fees, if any) credited as follows (fill in
appropriate percentages for options a, b and c, below).

     (a) ______% of the aggregate Director’s fees shall be credited to my Cash Account (as
defined in the Plan);

     (b) ______% of the aggregate Director’s fees shall be credited to my Stock Account (as
defined in the Plan);

     (c) ______% of the aggregate Director’s fees shall not be deferred, but shall be paid
to me directly as they accrue.

     Optional: I elect to receive a distribution of the amount credited to my Cash Account and
Stock Account on the following date (or as soon as administratively practicable thereafter):
____________.

     I understand that if I do not select a distribution date for the amount credited to my Cash
Account and Stock Account OR the distribution date I select is after my “separation from service”
(as defined in Treasury Regulation Section 1.409A-1(h)), then notwithstanding my

Appendix A

 

 

selected distribution date, the amount credited to my Cash Account and Stock Account will be
distributed to me on the date of my “separation from service” in the form of a single lump sum.

     Notwithstanding the foregoing, if I am a “specified employee” (as such term is defined in
Internal Revenue Code Section 409A(a)(2)(B)(i)) of the Company or any successor entity thereto upon
my “separation from service”, then, solely to the extent necessary to avoid the incurrence of the
adverse personal tax consequences under Code Section 409A as a result of the payment of deferred
compensation upon my “separation from service”, the distribution shall be delayed until the earlier
to occur of (i) the date that is six months and one day after the date of my “separation from
service” or (ii) the date of my death.

     In the event of my death prior to receipt of the amounts credited to my Cash Account and/or
Stock Account, I designate
__________________ as my beneficiary to receive the amounts so credited.

Very truly yours,

__________________

Appendix A

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