Document:

2001 KEY EMPLOYEES STOCK INCENTIVE PLAN

 

EX 10.15

    4

KEY EMPLOYEES’ STOCK INCENTIVE PLAN

Exhibit 10.15

2001 MOODY’S CORPORATION

KEY EMPLOYEES’ STOCK INCENTIVE PLAN

1. Purpose of the Plan

         The purpose of the Plan is to aid the Company and its Subsidiaries in
securing and retaining key employees of outstanding ability and to motivate
such employees to exert their best efforts on behalf of the Company and its
Subsidiaries by providing incentives through the granting of Awards. The
Company expects that it will benefit from the added interest which such key
employees will have in the welfare of the Company as a result of their
proprietary interest in the Company’s success.

2. Definitions

         The following capitalized terms used in the Plan have the respective
meanings set forth in this Section:

Act: The Securities Exchange Act of 1934, as amended, or any successor
thereto.

Award: An Option, Stock Appreciation Right or Other Stock-Based Award granted
pursuant to the Plan.

Beneficial Owner: As such term is defined in Rule 13d-3 under the Act (or any
successor rule thereto).

Board: The Board of Directors of the Company.

Change in Control: The occurrence of any of the following events:

(i)  any “Person” as such term is used in Section 13(d) and 14(d) of the Act
(other than the Company, any trustee or other fiduciary holding securities
under an employee benefit plan of the Company, or any company owned, directly
or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company), becomes the Beneficial
Owner, directly or indirectly, of securities of the Company representing 20% or
more of the combined voting power of the Company’s then outstanding securities;

(ii)  during any period of twenty-four months (not including any period prior to
the Effective Date), individuals who at the beginning of such period constitute
the Board, and any new director (other than (A) a director nominated by a
Person who has entered into an agreement with the Company to effect a
transaction described in Sections 2(e)(i), (iii) or (iv) of the Plan, (B) a
director nominated by any Person (including the Company) who publicly announces
an intention to take or to consider taking actions (including, but not limited
to, an actual or threatened proxy contest) which if consummated would
constitute a Change in Control or (C) a director designated by any Person who
is the Beneficial Owner, directly or indirectly, of securities of the Company
representing 10% or more of the combined voting power of the Company’s
securities) whose election by the Board or nomination for election by the
Company’s stockholders was approved in advance by a vote of at least two-thirds
(2/3) of the directors then still in office who either were directors at the
beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute at least a majority
thereof;

 

 

(iii)  the stockholders of the Company approve a merger or consolidation of the
Company with any other corporation, other than a merger or consolidation (A)
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) more than 50% of the combined voting power of the voting securities of
the Company or such surviving entity outstanding immediately after such merger
or consolidation and (B) after which no Person would hold 20% or more of the
combined voting power of the then outstanding securities of the Company or such
surviving entity; or

(iv)  the stockholders of the Company 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.

Code: The Internal Revenue Code of 1986, as amended, or any successor thereto.

Committee: The Compensation and Benefits Committee of the Board, or any
successor thereto or other committee designated by the Board to assume the
obligations of the Committee hereunder.

Company: Moody’s Corporation, a Delaware corporation.

Disability: Inability to engage in any substantial gainful activity by reason
of a medically determinable physical or mental impairment which constitutes a
permanent and total disability, as defined in Section 22(e)(3) of the Code (or
any successor section thereto). The determination whether a Participant has
suffered a Disability shall be made by the Committee based upon such evidence
as it deems necessary and appropriate. A Participant shall not be considered
disabled unless he or she furnishes such medical or other evidence of the
existence of the Disability as the Committee, in its sole discretion, may
require.

Effective Date: The date on which the Plan takes effect, as defined pursuant
to Section 17 of the Plan.

Fair Market Value: On a given date, the arithmetic mean of the high and low
prices of the Shares as reported on such date on the Composite Tape of the
principal national securities exchange on which such Shares are listed or
admitted to trading, or, if no Composite Tape exists for such national
securities exchange on such date, then on the principal national securities
exchange on which such Shares are listed or admitted to trading, or, if the
Shares are not listed or admitted on a national securities exchange, the
arithmetic mean of the per Share closing bid price and per Share closing asked
price on such date as quoted on the National Association of Securities Dealers
Automated Quotation System (or such market in which such prices are regularly
quoted), or, if there is no market on which the Shares are regularly quoted,
the Fair Market Value shall be the value established by the Committee in good
faith. If no sale of Shares shall have been reported on such Composite Tape or
such national securities exchange on such date or quoted on the National
Association of Securities Dealers Automated Quotation System on such date, then
the immediately preceding date on which sales of the Shares have been so
reported or quoted shall be used.

ISO: An Option that is also an incentive stock option granted pursuant to
Section 7(d) of the Plan.

LSAR: A limited stock appreciation right granted pursuant to Section 8(d) of
the Plan.

Other Stock-Based Awards: Awards granted pursuant to Section 9 of the Plan.

Option: A stock option granted pursuant to Section 7 of the Plan.

Option Price: The purchase price per Share of an Option, as determined
pursuant to Section 7(a) of the Plan.

 

 

Participant: An individual who is selected by the Committee to participate in
the Plan pursuant to Section 5 of the Plan.

Performance-Based Awards: Other Stock-Based Awards granted pursuant to Section
9(b) of the Plan.

Person: As such term is used for purposes of Section 13(d) or 14(d) of the Act
(or any successor section thereto).

Plan: The 2001 Moody’s Corporation Key Employees’ Stock Incentive Plan.

Post-Retirement Exercise Period: As such term is defined in Section 7(f) of
the Plan.

Retirement: Termination of employment with the Company or a Subsidiary after
such Participant has attained age 55 and five years of service with the
Company; or, with the prior written consent of the Committee that such
termination be treated as a Retirement hereunder, termination of employment
under other circumstances.

Shares: Shares of common stock, par value $0.01 per Share, of the Company.

Special Exercise Period: As such term is defined in Section 7(f) of the Plan.

Stock Appreciation Right: A stock appreciation right granted pursuant to
Section 8 of the Plan.

Subsidiary: A subsidiary corporation, as defined in Section 424(f) of the Code
(or any successor section thereto).

Termination of Employment: A Participant’s termination of employment with the
Company or a Subsidiary, as the case may be.

3. Shares Subject to the Plan

         The total number of Shares which may be issued under the Plan is
5,800,000, whether pursuant to ISOs or otherwise. The maximum number of Shares
for which Awards may be granted during a calendar year to any Participant shall
be 400,000. The Shares may consist, in whole or in part, of unissued Shares or
treasury Shares. The issuance of Shares or the payment of cash upon the
exercise of an Award shall reduce the total number of Shares available under
the Plan, as applicable. Shares which are subject to Awards which terminate or
lapse may be granted again under the Plan.

4. Administration

         The Plan shall be administered by the Committee, which may delegate its
duties and powers in whole or in part to any subcommittee thereof consisting
solely of at least two individuals who are each “non-employee directors” within
the meaning of Rule 16b-3 under the Act (or any successor rule thereto) and
“outside directors” within the meaning of Section 162(m) of the Code (or any
successor section thereto); provided, however, that any action permitted to be
taken by the Committee may be taken by the Board, in its discretion. The
Committee is authorized to interpret the Plan, to establish, amend and rescind
any rules and regulations relating to the Plan, and to make any other
determinations that it deems necessary or desirable for the administration of
the Plan. The Committee may correct any defect or omission or reconcile any
inconsistency in the Plan in the manner and to the extent the Committee deems
necessary or desirable. Any decision of the Committee in the interpretation
and administration of the Plan, as described herein, shall lie within its sole
and absolute discretion and shall be final, conclusive and binding on all
parties concerned (including, but not limited to, Participants and their
beneficiaries or successors). Determinations made by the Committee under the
Plan need not be uniform and may be made selectively among Participants,
whether or not such Participants are similarly situated. The Committee shall
require payment of

 

 

 any amount it may determine to be necessary to withhold for federal,
state, local or other taxes as a result of the exercise of an Award. Unless
the Committee specifies otherwise, the Participant may elect to pay a portion
or all of such withholding taxes by (a) delivery in Shares or (b) having Shares
withheld by the Company from any Shares that would have otherwise been received
by the Participant. The number of Shares so delivered or withheld shall have
an aggregate Fair Market Value on the date of the exercise of an Award
sufficient to satisfy the applicable withholding taxes. If the chief executive
officer of the Company is a member of the Board, the Board by specific
resolution may constitute such chief executive officer as a committee of one
which shall have the authority to grant Awards of up to an aggregate of 100,000
Shares in each calendar year to Participants who are not subject to the rules
promulgated under Section 16 of the Act (or any successor section thereto);
provided, however, that such chief executive officer shall notify the Committee
of any such grants made pursuant to this Section 4.

5. Eligibility

         Key employees (but not members of the Committee or any person who serves
only as a director) of the Company and its Subsidiaries, who are from time to
time responsible for the management, growth and protection of the business of
the Company and its Subsidiaries, and consultants to the Company and its
Subsidiaries, are eligible to be granted Awards under the Plan. Participants
shall be selected from time to time by the Committee, in its sole discretion,
from among those eligible, and the Committee shall determine, in its sole
discretion, the number of Shares to be covered by the Awards granted to each
Participant.

6. Limitations

         No Award may be granted under the Plan after the tenth anniversary of the
Effective Date, but Awards theretofore granted may extend beyond that date.

7. Terms and Conditions of Options

         Options granted under the Plan shall be, as determined by the Committee,
non-qualified, incentive or other stock options for federal income tax
purposes, as evidenced by the related Award agreements, and shall be subject to
the foregoing and the following terms and conditions and to such other terms
and conditions, not inconsistent therewith, as the Committee shall determine:

Option Price. The Option Price per Share shall be determined by the Committee,
but shall not be less than 100% of the Fair Market Value of the Shares on the
date an Option is granted.

Exercisability. Options granted under the Plan shall be exercisable at such
time and upon such terms and conditions as may be determined by the Committee,
but in no event shall an Option be exercisable more than ten years after the
date it is granted.

Exercise of Options. Except as otherwise provided in the Plan or in an Award
agreement, an Option may be exercised for all, or from time to time any part,
of the Shares for which it is then exercisable. For purposes of Section 7 of
the Plan, the exercise date of an Option shall be the later of the date a
notice of exercise is received by the Company and, if applicable, the date
payment is received by the Company pursuant to clauses (i), (ii) or (iii) in
the following sentence. The purchase price for the Shares as to which an
Option is exercised shall be paid to the Company in full at the time of
exercise at the election of the Participant (i) in cash, (ii) in Shares having
a Fair Market Value equal to the aggregate Option Price for the Shares being
purchased and satisfying such other requirements as may be imposed by the
Committee; provided, that such shares of Common Stock have been held by the
Participant for no less than six months, (iii) partly in cash and partly in
such Shares, or (iv) through the delivery of irrevocable instructions to a
broker to deliver promptly to the Company an amount equal to the aggregate
Option Price for the Shares being purchased. No Participant shall have any
rights to dividends or other rights of a stockholder with respect to Shares
subject to an Option until the

 

 

occurrence of the exercise date (determined as set forth above) and, if
applicable, the satisfaction of any other conditions imposed by the Committee
pursuant to the Plan.

ISOs. The Committee may grant Options under the Plan that are intended to be
ISOs. Such ISOs shall comply with the requirements of Section 422 of the Code
(or any successor section thereto). Unless otherwise permitted under Section
422 of the Code (or any successor section thereto), no ISO may be granted to
any Participant who at the time of such grant, owns more than ten percent of
the total combined voting power of all classes of stock of the Company or of
any Subsidiary, unless (i) the Option Price for such ISO is at least 110% of
the Fair Market Value of a Share on the date the ISO is granted and (ii) the
date on which such ISO terminates is a date not later than the day preceding
the fifth anniversary of the date on which the ISO is granted. Any Participant
who disposes of Shares acquired upon the exercise of an ISO either (i) within
two years after the date of grant of such ISO or (ii) within one year after the
transfer of such Shares to the Participant, shall notify the Company of such
disposition and of the amount realized upon such disposition. Notwithstanding
Section 5 hereof, ISOs may be granted solely to employees of the Company and
its Subsidiaries.

Exercisability Upon Termination of Employment by Death or Disability. Upon a
Termination of Employment by reason of death or Disability after the first
anniversary of the date of grant of an Option, (i) the unexercised portion of
such Option shall immediately vest in full and (ii) such portion may thereafter
be exercised during the shorter of (A) the remaining stated term of the Option
or (B) five years after the date of death or Disability.

Exercisability Upon Termination of Employment by Retirement. Upon a
Termination of Employment by reason of Retirement after the first anniversary
of the date of grant of an Option, an unexercised Option may thereafter be
exercised during the shorter of (i) the remaining stated term of the Option or
(ii) five years after the date of such Termination of Employment (the
“Post-Retirement Exercise Period”), but only to
the extent to which such Option was exercisable at the time of such Termination
of Employment or becomes exercisable during the Post-Retirement Exercise Period
as if such Participant were still employed by the Company or a Subsidiary;
provided, however, that if a Participant dies within a period of five years
after such Termination of Employment, an unexercised Option may thereafter be
exercised, during the shorter of (i) the remaining stated term of the Option or
(ii) the period that is the longer of (A) five years after the date of such
Termination of Employment or (B) one year after the date of death (the “Special
Exercise Period”), but only to the extent to which such Option was exercisable
at the time of such Termination of Employment or becomes exercisable during the
Special Exercise Period.

Effect of Other Termination of Employment. Upon a Termination of Employment
for any reason (other than death, Disability or Retirement after the first
anniversary of the date of grant of an Option as described above), an
unexercised Option may thereafter be exercised during the period ending 30 days
after the date of such Termination of Employment, but only to the extent to
which such Option was exercisable at the time of such Termination of
Employment. Notwithstanding the foregoing, the Committee may, in its sole
discretion, accelerate the vesting of unvested Options held by a Participant if
such Participant’s Termination of Employment is without “cause” (as such term
is defined by the Committee in its sole discretion) by the Company.

Nontransferability of Stock Options. Except as otherwise provided in this
Section 7(h), a stock option shall not be transferable by the Participant
otherwise than by will or by the laws of descent and distribution, and during
the lifetime of a Participant an option shall be exercisable only by the
Participant. An option exercisable after the death of a Participant or a
transferee pursuant to the following sentence may be exercised by the legatees,
personal representatives or distributees of the Participant or such transferee.
The Committee may, in its discretion, authorize all or a portion of the
options previously granted or to be granted to a Participant, other than ISOs,
to be on terms which permit irrevocable transfer for no consideration by such
Participant to any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece,

 

 

nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, of the
Participant, any trust in which these persons have more than 50% of the
beneficial interest, any foundation in which these persons (or the Participant)
control the management of assets, and any other entity in which these persons
(or the Participant) own more than 50% of the voting interests (“Eligible
Transferees”), provided that (i) the stock option agreement pursuant to which
such options are granted must be approved by the Committee, and must expressly
provide for transferability in a manner consistent with this Section and (ii)
subsequent transfers of transferred options shall be prohibited except those in
accordance with the first sentence of this Section 7(h). The Committee may, in
its discretion, amend the definition of Eligible Transferees to conform to the
coverage rules of Form S-8 under the Securities Act of 1933 or any comparable
Form from time to time in effect. Following transfer, any such options shall
continue to be subject to the same terms and conditions as were applicable
immediately prior to transfer. The events of Termination of Employment of
Sections 7(e), 7(f) and 7(g) hereof shall continue to be applied with respect
to the original Participant, following which the options shall be exercisable
by the transferee only to the extent, and for the periods specified, in
Sections 7(e), 7(f) and 7(g). The Committee may delegate to a committee
consisting of employees of the Company the authority to authorize transfers,
establish terms and conditions upon which transfers may be made and establish
classes of options eligible to transfer options, as well as to make other
determinations with respect to option transfers.

(i)  Elective Deferral. (i) Notwithstanding anything herein to the contrary, the
Committee, in its sole discretion, may provide that a Participant may elect to
defer delivery of the proceeds of exercise of an unexercised Option, provided
that such election is in accordance with rules which may be established by the
Committee, is irrevocable and is made (A) at least two years (or such shorter
period as may be determined by the Committee) prior to the date that such
Option otherwise would expire and (B) at least one year (or such shorter period
as may be determined by the Committee) prior to the date such Option is
exercised. Upon such exercise, the amount deferred shall be credited, at the
date of exercise, to a deferred
compensation account pursuant to a deferred compensation agreement between the
Participant and the Company, and shall be payable at such time or times and in
such manner as shall be provided in such agreement, provided that the date as
of which payment shall be made or payments shall commence shall be not less
than two years (or such shorter period as may be determined by the Committee)
subsequent to the date of exercise, but not later than the first day of the
third month following the Participant’s Termination of Employment.

(ii)  Each Participant shall have the status of a general unsecured creditor of
the Company with respect to his or her deferred compensation account, and such
account constitutes a mere promise by the Company to make payments with respect
thereto.

(iii)  A Participant’s right to benefit payments under the Plan with respect to
his or her deferred compensation account may not be anticipated, alienated,
sold, transferred, assigned, pledged, encumbered, attached or garnished by
creditors of the Participant or the Participant’s beneficiary and any attempt
to do so shall be void.

8. Terms and Conditions of Stock Appreciation Rights

Grants. The Committee also may grant (i) a Stock Appreciation Right
independent of an Option or (ii) a Stock Appreciation Right in connection with
an Option, or a portion thereof. A Stock Appreciation Right granted pursuant
to clause (ii) of the preceding sentence (A) may be granted at the time the
related Option is granted or at any time prior to the exercise or cancellation
of the related Option, (B) shall cover the same Shares covered by an Option (or
such lesser number of Shares as the Committee may determine) and (C) shall be
subject to the same terms and conditions as such Option except for such
additional limitations as are contemplated by this Section 8 (or such
additional limitations as may be included in an Award agreement).

 

 

Terms. The exercise price per Share of a Stock Appreciation Right shall be an
amount determined by the Committee but in no event shall such amount be less
than the greater of (i) the Fair Market Value of a Share on the date the Stock
Appreciation Right is granted or, in the case of a Stock Appreciation Right
granted in conjunction with an Option, or a portion thereof, the Option Price
of the related Option and (ii) an amount permitted by applicable laws, rules,
by-laws or policies of regulatory authorities or stock exchanges. Each Stock
Appreciation Right granted independent of an Option shall entitle a Participant
upon exercise to an amount equal to (i) the excess of (A) the Fair Market Value
on the exercise date of one Share over (B) the exercise price per Share, times
(ii) the number of Shares covered by the Stock Appreciation Right. Each Stock
Appreciation Right granted in conjunction with an Option, or a portion thereof,
shall entitle a Participant to surrender to the Company the unexercised Option,
or any portion thereof, and to receive from the Company in exchange therefor an
amount equal to (i) the excess of (A) the Fair Market Value on the exercise
date of one Share over (B) the Option Price per Share, times (ii) the number of
Shares covered by the Option, or portion thereof, which is surrendered. The
date a notice of exercise is received by the Company shall be the exercise
date. Payment shall be made in Shares or in cash, or partly in Shares and
partly in cash, valued at such Fair Market Value, all as shall be determined by
the Committee. Stock Appreciation Rights may be exercised from time to time
upon actual receipt by the Company of written notice of exercise stating the
number of Shares with respect to which the Stock Appreciation Right is being
exercised. No fractional Shares will be issued in payment for Stock
Appreciation Rights, but instead cash will be paid for a fraction or, if the
Committee should so determine, the number of Shares will be rounded downward to
the next whole Share.

Limitations. The Committee may impose, in its discretion, such conditions upon
the exercisability or transferability of Stock Appreciation Rights as it may
deem fit.

Limited Stock Appreciation Rights. The Committee may grant LSARs that are
exercisable upon the occurrence of specified contingent events. Such LSARs may
provide for a different method of determining appreciation, may specify that
payment
will be made only in cash and may provide that any related Awards are not
exercisable while such LSARs are exercisable. Unless the context otherwise
requires, whenever the term “Stock Appreciation Right” is used in the Plan,
such term shall include LSARs.

9. Other Stock-Based Awards

Generally. The Committee, in its sole discretion, may grant Awards of Shares,
Awards of restricted Shares and Awards that are valued in whole or in part by
reference to, or are otherwise based on the Fair Market Value of, Shares
(“Other Stock-Based Awards”). Such Other Stock-Based Awards shall be in such
form, and dependent on such conditions, as the Committee shall determine,
including, without limitation, the right to receive one or more Shares (or the
equivalent cash value of such Shares) upon the completion of a specified period
of service, the occurrence of an event and/or the attainment of performance
objectives. Other Stock-Based Awards may be granted alone or in addition to
any other Awards granted under the Plan. Subject to the provisions of the
Plan, the Committee shall determine to whom and when Other Stock-Based Awards
will be made; the number of Shares to be awarded under (or otherwise related
to) such Other Stock-Based Awards; whether such Other Stock-Based Awards shall
be settled in cash, Shares or a combination of cash and Shares; and all other
terms and conditions of such Awards (including, without limitation, the vesting
provisions thereof).

Performance-Based Awards. Notwithstanding anything to the contrary herein,
certain Other Stock-Based Awards granted under this Section 9 may be granted in
a manner that will enable the Company to deduct any amount paid by the Company
under Section 162(m) of the Code (or any successor section thereto)
(“Performance-Based Awards”). A Participant’s Performance-Based Award shall be
determined based on the attainment of written performance goals approved by the
Committee for a performance period established by the Committee (i) while the
outcome for that performance period is substantially uncertain and (ii) no more
than 90 days after the commencement of the performance period to which the
performance goal relates or, if less, the number of

 

 

days which is equal to 25% of the relevant performance period. The performance
goals, which must be objective, shall be based upon one or more of the
following criteria: (i) earnings before or after taxes (including earnings
before interest, taxes, depreciation and amortization); (ii) net income; (iii)
operating income; (iv) earnings per Share; (v) book value per Share; (vi)
return on stockholders’ equity; (vii) return on investment before or after the
cost of capital; (viii) profitability of an identifiable business unit or
product; (ix) maintenance or improvement of profit margins; (x) stock price;
(xi) market share; (xii) revenues or sales; (xiii) costs; (xiv) cash flow; (xv)
working capital; (xvi) changes in net assets (whether or not multiplied by a
constant percentage intended to represent the cost of capital); and (xvii)
return on assets. The foregoing criteria may relate to the Company, one or more
of its Subsidiaries or one or more of its divisions, units, minority
investments, partnerships, joint ventures, product lines or products or any
combination of the foregoing, and may be applied on an absolute basis and/or be
relative to one or more peer group companies or indices, or any combination
thereof, all as the Committee shall determine. In addition, to the degree
consistent with Section 162(m) of the Code (or any successor section thereto),
the performance goals may be calculated without regard to extraordinary items
or accounting changes. The maximum amount of a Performance-Based Award to any
Participant with respect to a fiscal year of the Company shall be $5,000,000.
The Committee shall determine whether, with respect to a performance period,
the applicable performance goals have been met with respect to a given
Participant and, if they have, to so certify and ascertain the amount of the
applicable Performance-Based Award. No Performance-Based Awards will be paid
for such performance period until such certification is made by the Committee.
The amount of the Performance-Based Award actually paid to a given Participant
may be less than the amount determined by the applicable performance goal
formula, at the discretion of the Committee. The amount of the
Performance-Based Award determined by the Committee for a performance period
shall be paid to the Participant at such time as determined by the Committee in
its sole discretion after the end of such performance period; provided,
however, that a Participant may, if and to the extent permitted by the
Committee and consistent with the provisions of Section 162(m) of the Code,
elect prior to the commencement of the relevant services to defer payment of a
Performance-Based Award.

10. Adjustments Upon Certain Events

         Notwithstanding any other provisions in the Plan to the contrary, the
following provisions shall apply to all Awards granted under the Plan:

Generally. In the event of any change in the outstanding Shares after the
Effective Date by reason of any Share dividend or split, reorganization,
recapitalization, merger, consolidation, spin-off, combination or exchange of
Shares or other corporate exchange, or any distribution to stockholders of
Shares other than regular cash dividends, the Committee shall make such
substitution or adjustment, if any, as it, in its sole discretion and without
liability to any person, deems to be equitable, as to (i) the number or kind of
Shares or other securities issued or reserved for issuance pursuant to the Plan
or pursuant to outstanding Awards, (ii) the Option Price and/or (iii) any other
affected terms of such Awards.

Change in Control. In the event of a Change in Control, Awards granted under
the Plan shall accelerate as follows: (i) each Option and Stock Appreciation
Right shall become immediately vested and exercisable; provided, however, that
if such Awards are not exercised prior to the date of the consummation of the
Change in Control, the Committee, in its sole discretion and without liability
to any person, may provide for (A) the payment of a cash amount in exchange for
the cancellation of such Award and/or (B) the issuance of substitute Awards
that will substantially preserve the value, rights and benefits of any affected
Awards (previously granted hereunder) as of the date of the consummation of the
Change in Control; (ii) restrictions on Awards of restricted shares shall
lapse; and (iii) Other Stock-Based Awards shall become payable as if targets
for the current period were satisfied at 100%.

 

 

11. No Right to Employment

         The granting of an Award under the Plan shall impose no obligation on the
Company or any Subsidiary to continue the employment of a Participant and shall
not lessen or affect the Company’s or Subsidiary’s right to terminate the
employment of such Participant.

12. Successors and Assigns

         The Plan shall be binding on all successors and assigns of the Company and
a Participant, including, without limitation, the estate of such Participant
and the executor, administrator or trustee of such estate, or any receiver or
trustee in bankruptcy or representative of the Participant’s creditors.

13. Nontransferability of Awards

         Except as provided in Section 7(h) of the Plan, an Award shall not be
transferable or assignable by the Participant otherwise than by will or by the
laws of descent and distribution. During the lifetime of a Participant, an
Award shall be exercisable only by such Participant. An Award exercisable
after the death of a Participant may be exercised by the legatees, personal
representatives or distributees of the Participant. Notwithstanding anything
to the contrary herein, the Committee, in its sole discretion, shall have the
authority to waive this Section 13 or any part thereof (except with respect to
ISOs) to the extent that this Section 13 or any part thereof is not required
under the rules promulgated under any law, rule or regulation applicable to the
Company.

14. Amendments or Termination

         The Board or the Committee may amend, alter or discontinue the Plan, but
no amendment, alteration or discontinuation shall be made which, (a) without
the approval of the stockholders of the Company, would (except as is provided
in Section 10 of the Plan), increase the total number of Shares reserved for
the purposes of the Plan or change the maximum number of Shares for which
Awards may be granted to any Participant or (b) without the consent of a
Participant, would impair any of the rights or obligations under any Award
theretofore granted to such Participant under
the Plan; provided, however, that the Board or the Committee may amend the
Plan in such manner as it deems necessary to permit the granting of Awards
meeting the requirements of the Code or other applicable laws. Notwithstanding
anything to the contrary herein, neither the Committee nor the Board may amend,
alter or discontinue the provisions relating to Section 10(b) of the Plan after
the occurrence of a Change in Control.

15. International Participants

         With respect to Participants who reside or work outside the United States
of America and who are not (and who are not expected to be) “covered employees”
within the meaning of Section 162(m) of the Code (or any successor section
thereto), the Committee may, in its sole discretion, amend the terms of the
Plan or Awards with respect to such Participants in order to conform such terms
with the requirements of local law.

16. Choice of Law

         The Plan shall be governed by and construed in accordance with the laws of
the State of Delaware applicable to contracts made and to be performed in the
State of Delaware.

17. Effectiveness of the Plan

         The Plan shall be effective as of April 23, 2001, upon its approval by the
stockholders at the 2001 Annual Meeting.EX-4.1: SPECIMEN SHARE OF COMMON STOCK

 

	 	 	 
	NUMBER	 	Exhibit 4.1

	 	 	 
	See Reverse for certain
definitions

INCORPORATED UNDER THE LAWS OF THE STATE OF NEW
JERSEY

1ST CONSTITUTION BANCORP

 

	 	 	 
		TOTAL AUTHORIZED
ISSUE	See Reverse for
		10,000,000 SHARES WITHOUT PAR VALUE

COMMON STOCK	Certain Definitions

 

 

 

 

 

This is to Certify
that __________________________________________________________ is
the owner of

______________________________________________________________________________ fully paid and

non-assessable shares of the above Corporation transferrable only on
the books of the Corporation by the holder hereof in person or by
duly authorized Attorney upon surrender of this Certificate properly
endorsed.

Witness, the seal of the Corporation and the signatures of its
duly authorized officers.

Dated

 

	 	 	 
	SECRETARY		PRESIDENT

 

     
The following abbreviations, when used in the
inscription on the face of this certificate, shall be construed
as though they were written out in full according to applicable
laws or regulations:

	 	 	 	 	 
	
        
        TEN COM

        	 	
        • as tenants in common	 	
        UNIF GIFT MIN ACT- ...................... Custodian

......................
                                            (Cust)

                           (Minor)
	
        
        TEN ENT

        	 	
        • as tenants by the
        entireties	 	
        under Uniform Gifts to Minors Act

....................
                                                            (State)
	 
	
        
        JT TEN

        	 	
        • as joint tenants with right of

        survivorship and not as tenants in common	 	 
	 	 	
        Additional abbreviations may also be used
        though not in the above list

For value received
              
hereby sell, assign and transfer unto

PLEASE INSERT SOCIAL SECURITY OR
OTHER

IDENTIFYING NUMBER OF ASSIGNEE

(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS
INCLUDING POSTAL ZIP CODE OF ASSIGNEE)

       
           
           
           
           
           
           
           
           
           
           
           
            Shares

represented by the within Certificate, and
do hereby irrevocably constitute and appoint

       
           
           
           
           
           
           
           
           
           
           
           
            Attorney

to transfer the said Shares on the books of
the within named Corporation with full power of substitution in
the premises.

      Dated             
                     
             

        
            
                   In
presence of

NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST
CORRESPOND WITH THE

NAME AS WRITTEN UPON THE FACE OF THE
CERTIFICATE IN EVERY PARTICULAR

WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATEVER.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00035-of-00352.parquet"}]]