Document:

Forms of director stock option and restricted stock agreements

  
 Exhibit 10.32 
  
 FORMS OF DIRECTOR STOCK OPTION AND RESTRICTED STOCK AGREEMENTS 
  
 The PNC Financial Services Group, Inc. 
 1997 Long-Term Incentive Award Plan 
  
 ****** 
  
 200     Non-Employee Director 
 Nonstatutory Stock Option
Agreement 
  

			
		
	 Optionee:
	  	<Name>
		
	 Grant Date:
	  	April     , 200  
		
	 Option Price:
	  	$             per share
		
	 Covered Shares:
	  	<Shares>

  
 Terms defined in The PNC Financial
Services Group, Inc. 1997 Long-Term Incentive Award Plan as amended (“Plan”) of The PNC Financial Services Group, Inc. are used in this non-employee director nonstatutory stock option agreement (“Agreement”) as defined in the
Plan unless otherwise defined in the Agreement or an Annex thereto. In the Agreement and Annexes, “PNC” means The PNC Financial Services Group, Inc. and “Corporation” means PNC and its Subsidiaries. For certain definitions, see
Annex A attached hereto and incorporated herein by reference. 
  
 Headings used in
the Agreement and in the Annexes hereto are provided for reference and convenience only, are not considered part of the Agreement and Annexes, and will not be employed in the construction of the Agreement and Annexes. 
  
 1. Grant of Option. Pursuant to the Plan and subject to the terms of the Plan and the
Agreement, PNC, as authorized by the Nominating and Governance Committee of the PNC Board of Directors (“Committee”), hereby grants Optionee an Option to purchase from PNC that number of shares of PNC common stock specified above as the
“Covered Shares,” exercisable at the Option Price. 
  
 2. Terms of
the Option. 
  
 2.1 Type of Option. The Option is intended to be a
Nonstatutory Stock Option without Rights. 
  
 2.2 Option Period. Once the
Option has become exercisable as provided in Section 2.3 (“vested”), it may be exercised in whole or in part as to any of the Covered Shares to which it relates and as to which the Option is outstanding at any time and from time to time
through the tenth (10th) anniversary of the Grant Date. 
  
 2.3 Vesting; Termination of Unvested Option. To the extent that the Option is
otherwise outstanding, the Option will become exercisable (“vest”) with respect to all Covered Shares on the first to occur of the following: (a) the first (1st) anniversary of the Grant Date; (b) Optionee’s death; (c) Optionee’s disability; or (d) the day immediately preceding the date a Change in Control
occurs or, if earlier, the date of a CIC Triggering Event; provided, however, that if Optionee’s service as a director of PNC 

  

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terminates prior to the first to occur of the events specified in subsections (a), (b), (c) and (d) above for any reason other than a Board policy which
requires Optionee’s retirement or resignation from service as a director of PNC or Optionee’s voluntary decision not to stand for election or re-election upon the completion of Optionee’s term of office beginning on the Grant Date,
then the Option will not vest and will terminate as of the date on which Optionee last serves as a director of PNC. 
  
 2.4 Nontransferability; Designation of Beneficiary. The Option is not transferable or assignable by Optionee other than by transfer to a properly designated
beneficiary in the event of death, or by will or the laws of descent and distribution. 
  
 During Optionee’s lifetime, the Option is exercisable only by Optionee or, in the event of Optionee’s legal incapacity, by Optionee’s legal representative. 
  
 During Optionee’s lifetime, Optionee may file with PNC, at such address and in such manner as PNC may from time to time direct, on a
form to be provided by PNC on request, a designation of a beneficiary or beneficiaries (a “properly designated beneficiary”) to hold and exercise Optionee’s stock options, to the extent outstanding and exercisable, in accordance with
their respective stock option agreements and the Plan in the event of Optionee’s death. In the absence of a properly designated beneficiary, the Option will be held and may be exercised by the person or persons entitled to do so under
Optionee’s will or under the applicable laws of descent and distribution. 
  
 3. Capital Adjustments. The number and class of Covered Shares as to which the Option is outstanding and has not yet been exercised and the Option Price will be subject to such adjustment, if any, as the Committee in its sole
discretion deems appropriate to reflect corporate transactions including, without limitation, stock dividends, stock splits, spin-offs, split-offs, recapitalizations, mergers, consolidations or reorganizations of or by PNC (each, a “Corporate
Transaction”), including without limitation cancellation of the Option immediately prior to the effective time of the Corporate Transaction and payment, in cash, in consideration therefor, of an amount equal to the product of (a) the excess, if
any, of the per share value of the consideration payable to a PNC common shareholder in connection with such Corporate Transaction over the Option Price and (b) the total number of Covered Shares subject to the Option that were outstanding and
unexercised immediately prior to the effective time of the Corporate Transaction. 
  
 All determinations hereunder will be made by the Committee in its sole discretion and will be final, binding and conclusive for all purposes on all parties, including without limitation the holder of the Option. 
  
 No fractional shares will be issued on exercise of the Option. PNC will determine the manner
in which any fractional shares will be treated. 
  
 4. Option Exercise.

  
 4.1 Notice and Effective Date. The Option may be exercised, in whole or
in part, by delivering to PNC written notice of such exercise in such form as PNC may from time to time prescribe, accompanied by full payment of the Option Price with respect to that portion of the Option being exercised. 
  
 In addition, notwithstanding Sections 4.2 and 4.3, Optionee may elect to complete his or her
Option exercise through a brokerage service/margin account pursuant to the broker-assisted cashless option exercise procedure under Regulation T of the Board of Governors of the Federal Reserve System and in such manner as may be permitted by PNC
from time to time consistent with said Regulation T. 
  
 The effective date of
such exercise will be the Exercise Date. Until PNC notifies Optionee to the contrary, the form attached to the Agreement as Annex B will be used to exercise the Option. 
  

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 In the event that the Option is exercised, pursuant to Section 2.4, by any person or persons other than Optionee, such
notice of exercise must be accompanied by appropriate proof, satisfactory to PNC, of the derivative right of such person or persons to exercise the Option. 
  
 4.2 Payment of Option Price. Upon exercise of the Option, in whole or in part, Optionee may pay the aggregate Option Price (a) in cash, (b) using whole shares of
PNC common stock (either by physical delivery to PNC of certificates for the shares or through PNC’s share attestation procedure) having an aggregate Fair Market Value on the Exercise Date not exceeding that portion of the aggregate Option
Price being paid using such shares, or (c) through a combination of cash and shares of PNC common stock; provided, however, that shares of PNC common stock used to pay all or any portion of the aggregate Option Price may not subject to any
contractual restriction, pledge or other encumbrance and must be shares that have been owned by Optionee for at least six (6) months prior to the Exercise Date and, in the case of restricted stock, for which it has been at least six (6) months since
the restrictions lapsed, or, in either case, for such other period as may be specified or permitted by PNC. 
  
 4.3 Payment of Taxes. If and to the extent required by applicable law or regulation, Optionee must arrange with PNC for the payment of any federal, state or local income or other tax applicable to any delivery
of stock or any payment hereunder before PNC will be required to issue such shares or to make such payment. 
  
 4.4 Effect. The exercise, in whole or in part, of the Option will cause a reduction in the number of unexercised Covered Shares as to which the Option is outstanding equal to the number of shares of PNC common
stock with respect to which the Option is exercised. 
  
 5. Plan;
Restrictions. In all respects, the Agreement and the Option granted herein and the exercise of the Option are subject to the terms and conditions of the Plan, which has been made available to Optionee and is incorporated by reference herein and
made a part hereof; provided, however, that the terms of the Plan will not be considered an enlargement of any benefits under the Agreement. Accordingly, the rights of Optionee under the Agreement and the shares of PNC common stock that
Optionee may purchase hereunder are or may be subject to certain restrictions as set forth in the Plan. Further, the Option and the Agreement are subject to any interpretation of, and any rules and regulations issued by or under the authority of,
the Committee, whether made or issued before or after the Grant Date. 
  
 6. No
Shareholder Rights Prior to Exercise of Option. Optionee will have no rights as a shareholder with respect to the shares of stock subject to the Option until the Exercise Date, and then only with respect to those shares of PNC common stock
issued upon such exercise of the Option. 
  
 7. Termination of the Plan; No
Right to Future Grants. By entering into the Agreement, Optionee acknowledges that: (a) the Plan is discretionary in nature and may be amended, suspended or terminated at any time in the manner provided in the Plan; (b) the grant of the Option
is a compensatory benefit which does not create any contractual or other right to receive future grants of options or benefits in lieu of options; and (c) all determinations with respect to future grants, if any, including but not limited to the
times when options are granted, the number of shares subject to each option, the option price, and the time or times when each option will be exercisable, will be at the sole discretion of the Committee, subject to the terms of the Plan. 

 
 8. Restrictions on Exercise and on Shares Issued on Exercise. Notwithstanding any
other provision of the Agreement, the Option may not be exercised at any time that PNC does not have in effect a registration statement under the Securities Act of 1933 as amended relating to the offer of shares of PNC common stock under the Plan
unless PNC agrees to permit such exercise. 
  
 Upon the issuance of any shares of
PNC common stock pursuant to exercise of the Option at a time when such registration statement is not in effect, Optionee will, upon the request of PNC, agree in writing that Optionee is acquiring such shares for investment only and not with a view
to resale and that Optionee will not sell, pledge, or otherwise dispose of such shares unless and until (a) PNC is 

  

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furnished with an opinion of counsel to the effect that registration of such shares pursuant to the Securities Act of 1933 as amended is not required by that
Act or by rules and regulations promulgated thereunder, (b) the staff of the SEC has issued a no-action letter with respect to such disposition, or (c) such registration or notification as is, in the opinion of counsel for PNC, required for the
lawful disposition of such shares has been filed and has become effective; provided, however, that PNC is not obligated hereby to file any such registration or notification. PNC may place a legend embodying such restrictions on the
certificate(s) evidencing such shares. 
  
 9. Retention. Neither the
granting of the Option evidenced by the Agreement nor any term or provision of the Agreement will interfere with or limit in any way the removal of Optionee from the Board as permitted by law, the PNC Articles of Incorporation or By-Laws, or Board
policy, nor confer on Optionee any right to continue in the service of PNC or any Subsidiary for any period. 
  
 10. Applicable Law. Notwithstanding anything in the Agreement, PNC will not be required to comply with any term, covenant or condition of the Agreement if and to the extent prohibited by law, including but not
limited to federal banking and securities regulations, or as otherwise directed by one or more regulatory agencies having jurisdiction over PNC or any of its subsidiaries. The Agreement is governed by and construed under the laws of the Commonwealth
of Pennsylvania, without regard to its conflict of laws rules. 
  
 11.
Effective Date. Upon execution and delivery of the Agreement by both PNC and Optionee, the Option and the Agreement are effective as of the Grant Date. 
  

IN WITNESS WHEREOF, PNC has caused the Agreement to be signed on its behalf effective as of the Grant Date. 
  

			
	THE PNC FINANCIAL SERVICES GROUP, INC.
		
	By:	 	 
	 	 	 Chairman and Chief Executive Officer

  

			
	ATTEST:
		
	By:	 	 
	 	 	 Corporate Secretary

  

			
	Accepted and agreed to as of the Grant Date.
	
	 
	 Optionee

  

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 Annex A - Certain Definitions 
 Annex B - Notice of Exercise 
  

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 ANNEX A 
  
 THE PNC FINANCIAL SERVICES GROUP, INC. 
 1997 LONG-TERM INCENTIVE AWARD PLAN 
  
 200     Non-Employee Director 
 Nonstatutory Stock Option Agreement 
  

  
 Except where the context otherwise indicates, the following definitions apply to the
Non-Employee Director Nonstatutory Stock Option Agreement dated April     , 200     (“Agreement”) to which this Annex A is attached. 
  
 A.1 “Board” means the Board of Directors of PNC. 
  
 A.2 “Change in Control” means a change of control of PNC of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Exchange Act, whether or not PNC is then subject to such reporting
requirement; provided, however, that without limitation, a Change in Control will be deemed to have occurred if: 
  
 (a) any Person, excluding employee benefit plans of the Corporation, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act or any
successor provisions thereto), directly or indirectly, of securities of PNC representing twenty percent (20%) or more of the combined voting power of PNC’s then outstanding securities; provided, however, that such an acquisition of
beneficial ownership representing between twenty percent (20%) and forty percent (40%), inclusive, of such voting power will not be considered a Change in Control if the Board approves such acquisition either prior to or immediately after its
occurrence; 
  
 (b) PNC consummates a merger, consolidation, share exchange,
division or other reorganization or transaction of PNC (a “Fundamental Transaction”) with any other corporation, other than a Fundamental Transaction that results in the voting securities of PNC outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least sixty percent (60%) of the combined voting power immediately after such Fundamental Transaction of (i) PNC’s
outstanding securities, (ii) the surviving entity’s outstanding securities, or (iii) in the case of a division, the outstanding securities of each entity resulting from the division; 
  
 (c) the shareholders of PNC approve a plan of complete liquidation or winding-up of PNC or an agreement for the sale or disposition (in one
transaction or a series of transactions) of all or substantially all of PNC’s assets; 
  
 (d) as a result of a proxy contest, individuals who prior to the conclusion thereof constituted the Board (including for this purpose any new director whose election or nomination for election by PNC’s
shareholders in connection with such proxy contest was approved by a vote of at least two-thirds (2/3rds) of the directors then still in office who were directors prior to such proxy contest) cease to constitute at least a majority of the Board
(excluding any Board seat that is vacant or otherwise unoccupied); 
  
 (e) during
any period of twenty-four (24) consecutive months, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by PNC’s shareholders was approved
by a vote of at least two-thirds (2/3rds) of the directors then still in office who were directors at the beginning of such period) cease for any 

  

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reason to constitute at least a majority of the Board (excluding any Board seat that is vacant or otherwise unoccupied); or 
  
 (f) the Board determines that a Change in Control has occurred. 
  
 Notwithstanding anything to the contrary herein, a divestiture or spin-off of a subsidiary or
division of PNC or any of its Subsidiaries will not by itself constitute a Change in Control. 
  
 A.3 “CIC Triggering Event” means the occurrence of either of the following: 
  
 (a) the Board or PNC’s shareholders approve a transaction described in Subsection (b) of the definition of Change in Control contained in Section A.2; or 

 
 (b) the commencement of a proxy contest in which any Person seeks to replace or remove a
majority of the members of the Board. 
  
 A.4 “Corporation” means PNC
and its Subsidiaries. 
  
 A.5 “Exchange Act” means the Securities
Exchange Act of 1934 as amended and the rules and regulations promulgated thereunder. 
  
 A.6 “Exercise Date” means the date on which PNC receives written notice, in such form as PNC may from time to time prescribe, of the exercise, in whole or in part, of the Option pursuant to the terms of the Agreement, subject to
full payment of the aggregate Option Price and, if and to the extent required by applicable law or regulation, of any related taxes as provided in Sections 4.2 and 4.3 of the Agreement. 
  
 A.7 “Fair Market Value” of a share means the amount equal to the fair market value of a share as determined pursuant to a
reasonable method adopted by PNC in good faith for such purpose. 
  
 A.8
“Grant Date” means the date set forth as the Date of Grant on page 1 of the Agreement. 
  
 A.9 “Option” means the Nonstatutory Stock Option granted to Optionee in Section 1 of the Agreement pursuant to which Optionee may purchase shares of PNC common stock as provided in the Agreement. 

 
 A.10 “Option Price” means the dollar amount per share of PNC common stock set
forth as the Option Price on page 1 of the Agreement. 
  
 A.11
“Optionee” means the person identified as Optionee on page 1 of the Agreement. 
  
 A.12 “Person” has the meaning given in Section 3(a)(9) of the Exchange Act and also includes any syndicate or group deemed to be a person under Section 13(d)(3) of the Exchange Act. 
  
 A.13 “PNC” means The PNC Financial Services Group, Inc. 
  
 A.14 “Right(s)” means stock appreciation right(s) in accordance with the terms of
Article 7 of the Plan. 
  
 A.15 “SEC” means the U.S. Securities and
Exchange Commission. 
  

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 Directors Restricted Shares Grant and
Issuance 
 Continued Director Service Goals 
 Restricted Period:
One year (50%); Two years (50%) 
  
 THE PNC FINANCIAL SERVICES
GROUP, INC. 
 1997 LONG-TERM INCENTIVE AWARD PLAN 
 Non-Employee Director Restricted Stock Agreement 
  

			
		
	 GRANTEE:
	  	<Name>
		
	 DATE OF GRANT:
	  	April     , 200    
		
	 SHARES:
	  	<Shares>

  
 Terms defined in the 1997 Long-Term
Incentive Award Plan, as amended (“Plan”), of The PNC Financial Services Group, Inc. (“Corporation” or “PNC”) are used in this Restricted Stock Agreement (“Agreement”) as defined in the Plan unless otherwise
defined in the Agreement. For certain definitions, see Annex A attached hereto and incorporated herein by reference. Headings used in the Agreement and in the Annex hereto are for convenience only and are not part of the Agreement and Annex.

  
 1. Grant of Restricted Shares. Pursuant to Article 12 of the Plan and
subject to the terms and conditions of the Agreement, the Corporation, as authorized by the Committee on Corporate Governance of the Corporation’s Board of Directors (“Committee”), hereby grants to Grantee an Incentive Share Award (as
defined in the Plan) of the number of shares of PNC Common Stock set forth above, and will cause the issuance of said shares to Grantee subject to the terms and conditions of the Agreement. The shares issued to Grantee as an Incentive Share Award
are subject to the terms and conditions of the Agreement and the Plan, as provided in Section 11 below, and are hereafter referred to as the “Restricted Shares.” 
  
 2. Terms of Grant. The Grant will be subject to the following terms and conditions. 
  
 2.1 Restricted Shares will be subject to a Restricted Period as provided in Section A.10 of
Annex A. Restricted Shares will be deposited with the Corporation or its designee during the term of the applicable Restricted Period, unless released and reissued sooner as provided in Section 2.2 below, and any certificates representing such
Restricted Shares will contain the following legend: 
  
 “This certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture and restrictions against transfer) contained in The PNC Financial Services Group, Inc. 1997 Long-Term Incentive
Award Plan, as amended, and an Agreement entered into between the registered owner and The PNC Financial Services Group, Inc. (“PNC”). Release from such terms and conditions will be made only in accordance with the provisions of such Plan
and such Agreement, a copy of each of which is on file in the office of the Corporate Secretary of PNC.” 
  
 If a book-entry system is used with respect to Restricted Shares, appropriate notation of such forfeiture possibility and transfer restrictions will be made on the system with respect to the account or accounts to
which the Restricted Shares are credited. 
  
 Restricted Shares deposited with the
Corporation or its designee during the term of the Restricted Period that become Awarded Shares will be released and reissued to Grantee as soon as administratively practicable following the end of the Restricted Period applicable to such Restricted
Shares pursuant to Section 6 below. 
  
 2.2 Notwithstanding anything in the
Agreement to the contrary, the Performance Goals will be deemed to have been achieved and the Restricted Period with respect to Unvested Shares will terminate on: (a) the day immediately preceding the date of a Change in Control, or, if earlier, the
date of a CIC Triggering Event; or (b) the date of Grantee’s death, whichever first occurs. The Restricted Shares which thereby become Awarded Shares will be released and reissued to Grantee, or Grantee’s legal representative, as soon as
administratively practicable following such date pursuant to Section 6 below. 
  
 3. Rights as Shareholder. Except as provided in Section 4 below, Grantee will have all the rights and privileges of a shareholder with respect to the Restricted Shares including, but not limited to, the right to vote the Restricted
Shares and the right to receive dividends thereon, if and when declared by the Corporation’s Board of Directors. With respect to Unvested Shares, all such rights and privileges will cease immediately upon any forfeiture of such Unvested Shares.

  

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 4. Prohibitions Against Sale, Assignment, etc. Unvested Shares may not be sold, assigned, transferred, exchanged,
pledged, hypothecated or otherwise encumbered, other than by will or the laws of descent and distribution, unless and until the applicable Restricted Period terminates and the Awarded Shares are released by the Corporation pursuant to Section 6
below. 
  
 5. Forfeiture. Awarded Shares are not subject to forfeiture.
Unvested Shares will be subject to forfeiture as follows. 
  
 5.1 Except as set
forth in Section 2.2 or in Section 5.2 or 5.3 below, all Unvested Shares will be forfeited by Grantee to the Corporation without payment of any consideration by the Corporation in the event that Grantee’s service as a director of the
Corporation terminates prior to the termination of the Restricted Period. Neither Grantee nor any successors, heirs, assigns or legal representatives of Grantee will thereafter have any further rights or interest in such Unvested Shares or the
certificates representing Unvested Shares. 
  
 5.2 In the event Grantee’s
service as a director of the Corporation terminates during the Restricted Period due to (a) disability or (b) pursuant to a Board policy that requires Grantee’s retirement or resignation as a director, Unvested Shares will not be forfeited but
instead will become Awarded Shares and will be released and reissued to Grantee or Grantee’s legal representative at the end of the Restricted Period pursuant to Section 6 below. 
  
 5.3 The Committee or the Board may in its discretion: (a) deem the Performance Goal to have been satisfied at the time Grantee’s
service as a director of the Corporation terminates other than due to death, disability or pursuant to a Board policy that requires Grantee’s retirement or resignation as a director; and/or (b) accelerate the termination of the Restricted
Period and thus the vesting of some or all of the Unvested Shares. 
  
 6.
Termination of Prohibitions. Following the termination of the applicable Restricted Period, the Corporation will release and reissue the certificate representing such Awarded Shares without the legend referred to in Section 2.1 above, and
will deliver such certificate to, or at the proper direction of, Grantee or Grantee’s legal representative. 
  
 7. Payment of Taxes. 
  
 7.1 To the extent required by applicable law or regulation, Grantee must arrange with the Corporation for the payment of any federal, state or local income or other tax applicable to any delivery of stock or any
payment hereunder before the Corporation will be required to issue, deliver or redeliver such shares or make such payment. 
  
 7.2 Grantee may elect to satisfy any or all applicable federal or state tax liabilities incurred in connection with the release and reissuance of Awarded Shares hereunder
(a) by payment of cash or, subject to such terms and conditions as PNC may from time to time establish, (b) through the retention by PNC of whole Restricted Shares, subject to the limitation set forth in the last sentence of this Section 7.2, or (c)
through the surrender (including by means of an attestation procedure) of whole shares of PNC Common Stock that are not subject to any contractual restriction, pledge or other encumbrance and that have been owned by Grantee for at least six (6)
months and, in the case of restricted stock, for which it has been at least six (6) months since the restrictions lapsed. Any such tax election shall be made pursuant to a form to be provided to Grantee by PNC on request. For purposes of this
Section 7.2, shares of PNC Common Stock that are retained or surrendered to satisfy applicable taxes will be valued at their Fair Market Value on the date the tax withholding obligation arises or would have arisen in connection with the release and
reissuance of the restricted shares to an employee. In no event will the Fair Market Value of the Restricted Shares retained pursuant to this Section 7.2 exceed the minimum amount of taxes that would have been required to be withheld in connection
with the release and reissuance of the restricted shares to an employee. 
  
 8.
No Assurance of Future Grants. Neither the granting of the Restricted Shares evidenced by the Agreement nor any term or provision of the Agreement or the Plan shall constitute or be evidence of any understanding, expressed or implied, on the
part of the Corporation or the Committee to provide any future grants of Restricted Shares except as may be determined by the Committee, in its sole discretion, from time to time. 
  
 9. Capital Adjustments. Restricted Shares awarded hereunder will be subject to such adjustment as may be necessary to reflect such
events as stock dividends, stock splits, recapitalizations, mergers, consolidations, or reorganizations of or by the Corporation; provided, however, that any shares received as a distributions on or in exchange for Restricted Shares
will be subject to the terms and conditions of the Agreement as if they were Restricted Shares. 
  
 10. Retention. Nothing herein contained shall interfere with or limit in any way the removal of Grantee from the Board as permitted by law, the Corporation’s Articles of Incorporation or By-Laws, or Board
policy, nor confer on Grantee any right to continue in the service of the Corporation or any Subsidiary. 
  
 11. Subject to the Plan and the Committee. In all respects, the Grant and the Agreement are subject to the terms and provisions of the Plan, which has been made available to Grantee and is incorporated herein
by reference; provided, that the terms of the Plan shall not be considered an enlargement of any benefits under the Agreement. Further, the Grant and the Agreement are subject to any 

  

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interpretation of, and any rules and regulations issued by, the Committee, whether made or issued before or after the Award Date. 
  
 IN WITNESS WHEREOF, the Corporation has caused
the Agreement to be signed on its behalf as of the Award Date. 
  

			
	THE PNC FINANCIAL SERVICES GROUP, INC.
		
	By:	 	 
	 	 	 Chief Executive Officer

  

			
	ATTEST:
		
	By:	 	 
	 	 	 Corporate Secretary

  

			
	Accepted and agreed to as of the Date of Grant set forth above.
	
	 
	 Grantee

  
 Annex A - Certain Definitions

  

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 ANNEX A 
 TO THE PNC FINANCIAL SERVICES GROUP, INC. 1997 LONG-TERM INCENTIVE AWARD PLAN 
 Non-Employee Director Restricted Stock Agreement 
 Dated April     ,
200     
  

  
 Except where the context otherwise indicates, the following definitions apply to the Non-Employee Director Restricted Stock Agreement
(“Agreement”) to which this Annex A is attached. 
  
 A.1 “Award
Date” means the Date of Grant set forth on page 1 of the Agreement. 
  
 A.2
“Awarded Shares” mean any and all Restricted Shares granted and issued to Grantee pursuant to Section 1 of the Agreement and (a) not forfeited pursuant to Section 5 of the Agreement and (b) with respect to which the Performance Goal has
been achieved and the applicable Restricted Period has terminated. 
  
 A.3
“Change in Control” means a change of control of the Corporation of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or
form) promulgated under the Exchange Act, whether or not the Corporation is then subject to such reporting requirement; provided, however, that without limitation, a Change in Control shall be deemed to have occurred if: 
  
 (a) any Person, excluding employee benefit plans of the Corporation and its Subsidiaries, is
or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act or any successor provisions thereto), directly or indirectly, of securities of the Corporation representing twenty percent (20%) or more of the combined
voting power of the Corporation’s then outstanding securities; provided, however, that such an acquisition of beneficial ownership representing between twenty percent (20%) and forty percent (40%), inclusive, of such voting power shall
not be considered a Change in Control if the Board of Directors of the Corporation (“Board”) approves such acquisition either prior to or immediately after its occurrence; 
  
 (b) the Corporation consummates a merger, consolidation, share exchange, division or other reorganization or transaction of the Corporation
(a “Fundamental Transaction”) with any other corporation, other than a Fundamental Transaction that results in the voting securities of the Corporation outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) at least sixty percent (60%) of the combined voting power immediately after such Fundamental Transaction of (i) the Corporation’s outstanding securities, (ii) the
surviving entity’s outstanding securities, or (iii) in the case of a division, the outstanding securities of each entity resulting from the division; 
  
 (c) the shareholders of the Corporation approve a plan of complete liquidation or winding-up of the Corporation or an agreement for the sale or disposition (in one
transaction or a series of transactions) of all or substantially all of the Corporation’s assets; 
  
 (d) as a result of a proxy contest, individuals who prior to the conclusion thereof constituted the Board (including for this purpose any new director whose election or nomination for election by the
Corporation’s shareholders in connection with such proxy contest was approved by a vote of at least two-thirds (2/3) of the directors then still in office who were directors prior to such proxy contest) cease to constitute at least a majority
of the Board (excluding any Board seat that is vacant or otherwise unoccupied); 
  
 (e) during any period of twenty-four consecutive months, individuals who at the beginning of such period constituted the Board (including for this purpose any new director whose election or nomination for election by the Corporation’s
shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board (excluding any Board seat
that is vacant or otherwise unoccupied); or 
  
 (f) the Board determines that a
Change in Control has occurred. 
  
 Notwithstanding anything to the contrary
herein, a divestiture or spin-off of a subsidiary or division of the Corporation shall not by itself constitute a Change in Control. 
  
 A.4 “CIC Triggering Event” means the occurrence of either of the following: 
  
 (a) the Board or the Corporation’s shareholders approve a transaction described in Subsection (b) of the definition of Change in
Control contained in Section A.3 hereof; or 
  
 (b) the commencement of a proxy
contest in which any Person seeks to replace or remove a majority of the members of the Board. 
  

 -4- 

 A.5 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 A.6 “Grant” means the total number of Restricted Shares granted and issued to
Grantee pursuant to Section 1 of the Agreement. 
  
 A.7 “One-Year Continued
Board Service Performance Goal” means, subject to Section 2.2 and Sections 5.2 and 5.3 of the Agreement, that Grantee has served continuously as a director of the Corporation for the period from the Award Date through (and including) the
earlier of the day immediately preceding: (a) the date of the 200     annual meeting of the Corporation’s shareholders; (b) the date Grantee ceases to serve as a director of the Corporation due to disability or
pursuant to a Board policy that requires Grantee’s retirement or resignation as a director; and (c) the date of Grantee’s death. 
  
 A.8 “Performance Goal” means either of the One-Year Continued Board Service Performance Goal or the Two-Year Continued Board Service Performance Goal.

  
 A.9 “Person” has the meaning given in Section 3(a)(9) of the
Exchange Act and also includes any syndicate or group deemed to be a person under Section 13(d)(3) of the Exchange Act. 
  
 A.10 “Restricted Period” means, subject to early termination pursuant to Section 2.2, Section 5.2 or Section 5.3 of the Agreement: (a) with respect to fifty
percent (50%) of the Restricted Shares, the period that begins on the Award Date and ends on the day immediately preceding the date of the 200     annual meeting of the Corporation’s shareholders; and (b) with respect
to the remaining fifty percent (50%) of the Restricted Shares, the period that begins on the Award Date and ends on the day immediately preceding the date of the 200     annual meeting of the Corporation’s
shareholders. 
  
 A.11 “Two-Year Continued Board Service Performance
Goal” means, subject to Section 2.2 and Sections 5.2 and 5.3 of the Agreement, that Grantee has served continuously as a director of the Corporation for the period from the Award Date through (and including) the earlier of the day immediately
preceding: (a) the date of the 200     annual meeting of the Corporation’s shareholders; (b) the date Grantee ceases to serve as a director of the Corporation due to disability or pursuant to a Board policy that
requires Grantee’s retirement or resignation as a director; and (c) the date of Grantee’s death. 
  
 A.12 “Unvested Shares” means any Restricted Shares that are not Awarded Shares. 
  

 -5-1997 Employee Stock Purchase Plan

 EXHIBIT 10.15 
  
 INCYTE CORPORATION 
  
 1997 EMPLOYEE STOCK PURCHASE PLAN 
 (as
amended July 28, 2004) 
  
 The following constitute the provisions
of the 1997 Employee Stock Purchase Plan of Incyte Corporation, as amended July 28, 2004. 
  
 1. Purpose. The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions. It
is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as amended. The provisions of the Plan, accordingly, shall be construed so as to extend
and limit participation in a manner consistent with the requirements of that section of the Code. 
  
 2. Definitions. 
  
 (a) “Board” shall mean the Board of Directors of the Company. 
  
 (b) “Code” shall mean the Internal Revenue
Code of 1986, as amended. 
  
 (c) “Common
Stock” shall mean the Common Stock, $.001 par value, of Incyte Corporation. 
  
 (d) “Company” shall mean Incyte Corporation and any Designated Subsidiary of the Company. 
  
 (e) “Compensation” shall mean all cash
salary, wages, commissions and bonuses, but shall not include any imputed income or income arising from the exercise or disposition of equity compensation. 
  
 (f) “Effective Date” shall mean April 15, 2003. 
  
 (g) “Designated Subsidiary” shall mean any Subsidiary which has been designated by the
Board from time to time in its sole discretion as eligible to participate in the Plan. 
  
 (h) “Employee” shall mean any individual who is an Employee of the Company for tax purposes whose customary employment
with the Company is at least twenty (20) hours per week and more than five (5) months in any calendar year. For purposes of the Plan, the employment relationship shall be treated as continuing intact while the individual is on sick leave or other
leave of absence approved by the Company. Where the period of leave exceeds 90 days and the individual’s right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated on
the 91st day of such leave. 
  

 -1- 

 (i) “Enrollment Date” shall mean the first day of each Offering Period.

  
 (j) “Exercise Date” shall
mean the last Trading Day of each Purchase Period. 
  
 (k) “Fair Market Value” shall mean, as of any date, the value of Common Stock determined as follows: 
  
 (1) If the Common Stock is listed on any established stock exchange or a national market system, including without limitation The Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the date of
determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or 
  
 (2) If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean of the closing bid and asked prices for the Common Stock on the date of such determination, as reported in The Wall Street Journal or such other source as the Board deems reliable; or 
  
 (3) In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the Board. 
  
 (l) “Offering Periods” shall mean the periods of approximately twenty-four (24) months during which an option granted
pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 1 and November 1 of each year and terminating on the last Trading Day in the periods ending twenty-four months later. The duration and timing of Offering
Periods may be changed pursuant to Section 4 of this Plan. 
  
 (m) “Plan” shall mean this Employee Stock Purchase Plan. 
  
 (n) “Purchase Price” shall mean an amount equal to 85% of the Fair Market Value of a share of Common Stock on the
Enrollment Date or on the Exercise Date, whichever is lower. 
  
 (o) “Purchase Period” shall mean the approximately six-month period commencing after one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any Offering
Period shall commence on the Enrollment Date and end with the next Exercise Date. 
  
 (p) “Reserves” shall mean the number of shares of Common Stock covered by each option under the Plan which have not yet
been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 
  
 (q) “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held
by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary. 
  

 -2- 

 (r) “Trading Day” shall mean a day on which national stock exchanges and
The Nasdaq National Market (or any successor market system) are open for trading. 
  
 3. Eligibility. 
  
 (a) Any Employee who has been employed by the Company for one month or more on a given Enrollment Date shall be eligible to participate in the Plan. 
  

(b) Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) to the extent
that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company and/or hold outstanding options to purchase such
stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Subsidiary, or (ii) to the extent that his or her rights to purchase stock under all employee stock
purchase plans of the Company and its subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of stock (determined at the fair market value of the shares at the time such option is granted) for each calendar year in
which such option is outstanding at any time. 
  
 4. Offering
Periods. The Plan shall be implemented by consecutive, overlapping Offering Periods with a new Offering Period commencing on the first Trading Day on or after May 1 and November 1 each year, or on such other dates as the Board shall determine,
and continuing thereafter until terminated in accordance with Section 19 hereof. The Board or a committee thereof shall have the power to change the duration of Offering Periods (including the commencement dates thereof) and Purchase Periods
thereunder with respect to future offerings without stockholder approval if such change is announced at least five (5) days prior to the scheduled beginning of the first Offering Period to be affected thereafter. 
  
 5. Participation. 
  
 (a) An eligible Employee may become a participant in the
Plan by completing a subscription agreement authorizing payroll deductions in the form of Exhibit A to this Plan and filing it with the Company’s stock administrator not later than ten (10) business days prior to the applicable Enrollment Date.

  
 (b) Payroll deductions for a participant
shall commence on the first payroll following the Enrollment Date and shall end on the last payroll in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in Section 10 hereof.

  
 6. Payroll Deductions. 
  
 (a) At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day during the Offering Period in an amount not less than one percent (1%) and not more than ten percent (10%) of the participant’s Compensation, with such amount
designated in integral multiples of one percent (1%); provided, however, that the aggregate of such payroll deductions during any Offering Period shall not 

  

 -3- 

 
exceed ten percent (10%) of the participant’s aggregate Compensation during such Offering Period. 
  
 (b) All payroll deductions made for a participant shall be
credited to his or her account under the Plan and shall be withheld in whole percentages only. A participant may not make any additional payments into such account. 
  
 (c) A participant may discontinue his or her participation in the Plan as provided in Section 10, or may
increase or decrease the rate of his or her payroll deductions as provided in this Section 6(c). A participant may increase the rate of his or her payroll deductions only as of the beginning of a Purchase Period. Such increase shall take effect with
the first payroll following the beginning of the new Purchase Period provided the participant has completed and delivered to the Company’s stock administrator a new subscription agreement authorizing the increase in the payroll deduction rate
at least ten (10) business days prior to the beginning of the new Purchase Period. A participant may decrease the rate of his or her payroll deductions each month. Any decrease shall become effective as of the first payroll of the next calendar
month following the date that the participant completes and delivers to the Company’s stock administrator a new subscription agreement authorizing the decrease in the payroll deduction rate. However, if the subscription agreement is not
received at least five (5) business days prior to such payroll, the decrease shall become effective as of the first payroll of the second succeeding calendar month. The Board may, in its discretion, limit the number of participation rate changes
during any Offering Period. Subject to the foregoing, a participant’s subscription agreement shall remain in effect for successive Offering Periods unless terminated as provided in Section 10 hereof. 
  
 (d) Notwithstanding the foregoing, to the extent necessary
to comply with Section 423(b)(8) of the Code and Section 3(b) hereof, a participant’s payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Such a decrease shall not be treated as a withdrawal from the
Plan subject to Section 10, unless the participant elects to withdraw pursuant to Section 10. Payroll deductions shall recommence at the rate provided in such participant’s subscription agreement at the beginning of the first Purchase Period
which is scheduled to end in the following calendar year, unless the participant elects to withdraw from the Plan as provided in Section 10 hereof. 
  
 (e) At the time the option is exercised, in whole or in part, or at the time some or all of the Common Stock issued under the Plan is
disposed of, the participant must make adequate provision for the Company’s federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the
Company may, but shall not be obligated to, withhold from the participant’s compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any
tax deductions or benefits attributable to sale or early disposition of Common Stock by the Employee. 
  
 7. Grant of Option. On the Enrollment Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted
an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of 

  

 -4- 

 
shares of Common Stock determined by dividing such Employee’s payroll deductions accumulated prior to such Exercise Date and retained in the
Participant’s account as of the Exercise Date by the applicable Purchase Price; provided that in no event shall an Employee be permitted to purchase during each Purchase Period more than eight thousand (8,000) shares of Common Stock (subject to
any adjustment pursuant to Section 18) on the Enrollment Date, and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 13 hereof. Exercise of the option shall occur as provided in Section 8 hereof,
unless the participant has withdrawn pursuant to Section 10 hereof. The option shall expire on the last day of the Offering Period. 
  
 8. Exercise of Option. Unless a participant withdraws from the Plan as provided in Section 10 hereof, his or her option for the purchase of shares
of Common Stock shall be exercised automatically on the Exercise Date, and the maximum number of full shares of Common Stock subject to option shall be purchased for such participant at the applicable Purchase Price with the accumulated payroll
deductions in his or her account. No fractional shares shall be purchased; any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full share shall be retained in the participant’s account for
the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 hereof. Any other monies left over in a participant’s account after the Exercise Date shall be returned to the
participant. During a participant’s lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her. 
  
 9. Delivery. As promptly as practicable after each Exercise Date on which a purchase of shares occurs, a share certificate or certificates
representing the number of shares of Common Stock so purchased shall be delivered to a brokerage account designated by the Company and kept in such account pursuant to a subscription agreement between each participant and the Company and subject to
the conditions described therein which may include a requirement that shares be held and not sold for certain time periods, or the Company shall establish some other means for such participants to receive ownership of the shares. 
  
 10. Discontinuation; Withdrawal. 
  
 (a) A participant may discontinue his or her participation
in the Plan only by withdrawing from the Plan as provided in this Section 10. A participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan by
giving written notice to the Company in the form of Exhibit B to this Plan. Such notice must be received by the Company no later than 2:00 p.m. Pacific Standard Time on the second Trading Day preceding the Exercise Date. All of the
participant’s payroll deductions credited to his or her account shall be paid to such participant promptly after receipt of notice of withdrawal and such participant’s option for the Offering Period shall be automatically terminated, and
no further payroll deductions for the purchase of shares shall be made for such Offering Period. If a participant withdraws from an Offering Period, payroll deductions shall not resume at the beginning of the succeeding Offering Period unless the
participant delivers to the Company a new subscription agreement in accordance with Section 5(a) . 
  

 -5- 

 (b) A participant’s withdrawal from an Offering Period shall not have any effect
upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the participant withdraws from the Plan, subject to compliance with Section 5(a).

  
 11. Termination of Employment. 
  
 Upon a participant’s ceasing to be an Employee, for any reason, he or
she shall be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant’s account during the Offering Period but not yet used to exercise the option shall be returned to such participant or, in the
case of his or her death, to the person or persons entitled thereto under Section 15 hereof, and such participant’s option shall be automatically terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of
notice of termination of employment shall be treated as continuing to be an Employee for the participant’s customary number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice.

  
 12. Interest. No interest shall accrue on the payroll
deductions of a participant in the Plan. 
  
 13. Stock.

  
 (a) The maximum number of shares of the
Company’s Common Stock which shall be made available for sale under the Plan shall be three million one hundred thousand (3,100,000) shares, subject to adjustment upon changes in capitalization of the Company as provided in Section 18 hereof.
If, on a given Exercise Date, the number of shares with respect to which options are to be exercised exceeds the number of shares then available under the Plan, the Company shall make a pro rata allocation of the shares remaining available for
purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable. 
  
 (b) The participant shall have no interest or voting right in shares covered by his option until such option has been exercised.

  
 (c) Shares purchased by a participant under
the Plan shall be registered in the name of the participant or in the name of the participant and his or her spouse. 
  
 14. Administration. The Plan shall be administered by the Board or a committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility and to adjudicate all disputed claims filed under the Plan. Every finding, decision and determination
made by the Board or its committee shall, to the full extent permitted by law, be final and binding upon all parties. 
  
 15. Designation of Beneficiary. 
  
 (a) A participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the
participant’s account under the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but 

  

 -6- 

 
prior to delivery to such participant of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive
any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse, spousal consent shall be
required for such designation to be effective. 
  
 (b) Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time
of such participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company
may designate. 
  
 16. Transferability. Neither payroll
deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws
of descent and distribution or as provided in Section 15 hereof) by the participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof. 
  
 17. Use of Funds. All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions. 
  
 18. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation,
Merger or Asset Sale. 
  
 (a) Changes in
Capitalization. Subject to any required action by the stockholders of the Company, the Reserves, the maximum number of shares each participant may purchase each Purchase Period (pursuant to Section 7), as well as the Purchase Price per share and
the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the number of outstanding shares of Common Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration”. Such adjustment shall be made by the Board, whose determination in that respect shall be
final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number or price of shares of Common Stock subject to an option. 
  

 -7- 

 (b) Dissolution or Liquidation. In the event of the proposed dissolution or
liquidation of the Company, the Offering Periods shall terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. 
  
 (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets
of the Company, or the merger of the Company with or into another corporation, limited liability company or other entity, the Plan shall terminate upon the date of the consummation of such transaction unless the plan of merger, consolidation or
reorganization provides otherwise, and any Purchase Periods then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall end on the New Exercise Date. The New
Exercise Date shall be before the date of the Company’s proposed sale or merger. The Board shall notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the
participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as
provided in Section 10 hereof. The Plan shall in no event be construed to restrict the Company’s right to undertake any liquidation, dissolution, merger, consolidation or other reorganization. 
  
 19. Amendment or Termination. 
  
 (a) The Board of Directors of the Company may at any time
and for any reason terminate or amend the Plan. Except as provided in Section 18 hereof, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Board of Directors on any Exercise Date if
the Board determines that the termination of the Plan is in the best interests of the Company and its stockholders. Except as provided in Section 18 hereof, no amendment may make any change in any option theretofore granted which adversely affects
the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval in such
a manner and to such a degree as required. 
  
 (b) Without stockholder consent and without regard to whether any participant rights may be considered to have been “adversely affected,” the Board (or its committee) shall be entitled to change the Offering Periods, limit the
frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by
a participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that
amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan. 
  
 20. Notices. All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in 

  

 -8- 

 
the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof. 
  
 21. Conditions Upon Issuance of Shares. Shares shall not be issued
with respect to an option unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of
1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment
and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
  
 22. Term of Plan. The Plan, as amended and restated, shall become
effective upon the Effective Date. It shall continue until February 27, 2007 unless sooner terminated under Section 19 hereof. 
  
 23. Automatic Transfer to Low Price Offering Period. To the extent permitted by any applicable laws, regulations, or stock exchange rules, if the
Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all participants in such Offering Period shall be
automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period as of the first day thereof. 
  
 24. Execution. To record the amendment and restatement of the Plan by
the Board of Directors as of the Effective Date, the Company has caused its authorized officer to execute the same. 
  

			
	INCYTE CORPORATION
		
	By	 	/s/    PATRICIA SCHRECK        
	 Its
	 	Executive Vice President

  

 -9- 

  
 EXHIBIT A

  
 INCYTE CORPORATION 
  
 1997 EMPLOYEE STOCK PURCHASE PLAN 
  
 SUBSCRIPTION AGREEMENT 
  
 Enrollment Date:
                                 
  
  ̈ Original Application 
  
  ̈ Change in Payroll Deduction Rate 
  
  ̈ Change of Beneficiary(ies) 
  

	(1)	                                      
                   hereby elects to participate in the Incyte Corporation 1997 Employee Stock Purchase Plan (the “Employee Stock Purchase Plan”)
and subscribes to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and the Employee Stock Purchase Plan. 

  

	(2)	I hereby authorize payroll deductions from each paycheck in the amount of         % of my Compensation (as defined in the Employee
Stock Purchase Plan) on each payday (from 1 to 10%) during the Offering Period in accordance with the Employee Stock Purchase Plan. (Please note that no fractional percentages are permitted.) 

  

	(3)	I understand that these payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the Employee
Stock Purchase Plan. I understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option to purchase shares. 

  

	(4)	I have received a copy of the complete Employee Stock Purchase Plan. I understand that my participation in the Employee Stock Purchase Plan is in all respects subject to the terms
of such Plan. I understand that my ability to exercise the option under this Subscription Agreement is subject to stockholder approval of the Employee Stock Purchase Plan. 

  

	(5)	Shares purchased for me under the Employee Stock Purchase Plan should be deposited in my brokerage account
with                                       
       [name of broker], or issued in the name(s) of (Employee or Employee and Spouse only): 

  
                                       
                                        
                      . 
  

	(6)	 I understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Enrollment Date (the first day of the Offering Period
during which I purchased such shares) or one year after the Exercise Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value
of the shares at the time such shares were purchased by me over the price which I paid for the shares. I hereby agree to 

  

 A-1 

	 	 
notify the Company in writing within 30 days after the date of any disposition of my shares and I will make adequate provision for Federal, state or other
tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be obligated to, withhold from any compensation the amount necessary to meet any applicable withholding obligation including
any withholding necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such shares at any time after the expiration of the 2-year and 1-year holding
periods, I understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition, and that such income will be taxed as ordinary income only to the extent of an amount equal to the lesser of
(1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares; or (2) 15% of the fair market value of the shares on the first day of the Offering Period. The remainder of
the gain, if any, recognized on such disposition will be taxed as capital gain. 

  

	(7)	I hereby agree to be bound by the terms of the Employee Stock Purchase Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the
Employee Stock Purchase Plan. 

  

	(8)	In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and shares due me under the Employee Stock Purchase Plan:

  

							
	NAME: (Please print)	  	 
	 	  	 (First)
	  	 (Middle)
	  	 (Last)

  

					
			
	  	 	 	 	  
	(Relationship)	 	 	 	 
			
	  	 	 	 	  
	 	 	 	 	(Address)

  
 Employee’s Social Security Number:                            
                                        
                                        
                                        
                                      
  
 Employee’s Address:                                 
                                        
                                        
                                        
                                        
                       
  
 I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME. I HAVE RECEIVED A COPY OF THE
COMPLETE EMPLOYEE STOCK PURCHASE PLAN AND UNDERSTAND THAT MY PARTICIPATION IN SUCH PLAN IS IN ALL RESPECTS SUBJECT TO THE TERMS OF SUCH PLAN. 
  

							
				
	Dated:	 	  	 	 	 	  
	 	 	 	 	 	 	Signature of Employee
				
	  	 	  	 	 	 	  
	 	 	 	 	 	 	 Spouse’s Signature
 (If beneficiary other than spouse)

  

 A-2 

  
 EXHIBIT B

  
 INCYTE CORPORATION 
  
 1997 EMPLOYEE STOCK PURCHASE PLAN 
  
 NOTICE OF WITHDRAWAL 
  
 The undersigned participant in the Offering Period of the Incyte Corporation 1997 Employee
Stock Purchase Plan which began on                                 ,
             (the “Enrollment Date”) hereby notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to
the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to the Offering Period. The undersigned understands and agrees that his or her option for such Offering Period will be automatically
terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current Offering Period and the undersigned shall be eligible to participate in succeeding Offering Periods only by
delivering to the Company a new Subscription Agreement. The undersigned has received a copy of the complete Employee Stock Purchase Plan, and understands that his or her participation in the Employee Stock Purchase Plan is in all respects subject to
the terms of such Plan. 
  

			
	 Name and Address of Participant:

	
	 
	
	 
	
	 
	
	 Signature:

	
	 
		
	 Date:
	 	 

  

 B-1 

  
 APPENDIX A

  
 EMPLOYEES OF INCYTE CORPORATION LTD 

 
 Gains on options exercised under the Plan by Employees who are employed by
Incyte Corporation Ltd (“Limited”) are subject to National Insurance Contributions under United Kingdom Social Security Contributions and Benefits Act 1992, section 4(4)(a) (“Secondary Contributions”). Secondary Contributions are
payable by Limited unless Limited and the Employee enter into a joint election in the form attached hereto as Exhibit A to transfer liability for payment of the Secondary Contributions to the Employee (the “Joint Election”). Effective
January 1, 2001, any Employee of Limited who wishes to exercise options granted pursuant to the Plan must enter into a Joint Election in accordance with the following provisions: 
  
 A.1 Filing Date for Current Participants. Employees of Limited who enrolled in the Plan prior to October 31,
2001 and who have not withdrawn from the Plan must file the Joint Election with the Company’s stock administrator not later than ten (10) business days prior to October 31, 2001. Any such Employee who fails to file the Joint Election in a
timely manner will be deemed to have withdrawn from the Plan prior to October 31, 2001 and his or her option or options will not be exercised on the Exercise Date falling on October 31, 2001. 
  
 A.2 New Participants. An eligible Employee of Limited who
wishes to become a participant in the Plan on or after November 1, 2001 must file a Joint Election with the Company’s stock administrator at least ten (10) business days prior to the applicable Enrollment Date. An eligible Employee who does not
file a Joint Election will not be granted an option under the Plan. 
  
 A.3 Amendment of the Joint Election; Approval. The form for the Joint Election, as it may be amended by the Company from time to time, shall be submitted to the Board of Inland Revenue for approval and such approval shall be
obtained before the Company and an eligible Employee enter into a particular Joint Election. A Joint Election may be amended in a writing signed by both the Company and the Employee, provided that any such amendment must be approved by the Board of
Inland Revenue before it takes effect. 
  
 A.4 Effect of
Withdrawal from the Plan. If a participant withdraws from the Plan, the Joint Election shall continue to apply in the event that the Employee re-enrolls in the Plan.  
  

 Appendix-1

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