Document:

Exhibit 10.2

 

SECOND AMENDED AND RESTATED

CHRISTOPHER & BANKS CORPORATION

2005 STOCK INCENTIVE PLAN

 

1.             Purpose.  The
purpose of the Second Amended and Restated Christopher & Banks
Corporation 2005 Stock Incentive Plan is to further align the interests of employees,
officers and consultants with those of the stockholders by providing incentive
compensation opportunities tied to the performance of the Common Stock and by
promoting increased ownership of the Common Stock by such individuals. The Plan
is also intended to advance the interests of the Company and its stockholders
by attracting, retaining and motivating key personnel upon whose judgment,
initiative and effort the successful conduct of the Company’s business is
largely dependent.

 

2.             Definitions.  Wherever
the following capitalized terms are used in the Plan, they shall have the
meanings specified below:

 

“Affiliate” means
(i) any entity that would be treated as an “affiliate” of the Company for
purposes of Rule 12b-2 under the Exchange Act and (ii) any joint
venture or other entity in which the Company has a direct or indirect
beneficial ownership interest representing at least one-third (1/3) of the
aggregate voting power of the equity interests of such entity or one-third
(1/3) of the aggregate fair market value of the equity interests of such
entity, as determined by the Committee.

 

“Award” means an award of a
Stock Option, Stock Appreciation Right, Restricted Stock Award or Restricted
Stock Unit Award granted under the Plan.

 

“Award Agreement” means a
written or electronic agreement entered into between the Company and a
Participant setting forth the terms and conditions of an Award granted to a
Participant.

 

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

 

“Code” means the Internal
Revenue Code of 1986, as amended.

 

“Common Stock” means the
Company’s common stock, par value $0.01 per share.

 

“Committee” means the
Compensation Committee of the Board, or such other committee of the Board
appointed by the Board to administer the Plan.

 

“Company” means
Christopher & Banks Corporation, a Delaware corporation.

 

“Date of Grant” means the
date on which an Award under the Plan is made by the Committee, or such later
date as the Committee may specify to be the effective date of an Award.

 

“Disability” means a
Participant being considered “disabled” within the meaning of
Section 409A(a)(2)(C) of the Code, unless otherwise provided in an
Award Agreement.

 

“Eligible Person” means any
person who is an employee, officer or consultant of the Company or any Affiliate,
or any person to whom an offer of employment with the Company or any Affiliate
is extended, as determined by the Committee, but excluding any person who is a
Non-Employee Director.

 

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” of a
share of Common Stock as of a given date shall be the closing sale price of a
share of Common Stock as reported on the New York Stock Exchange on such date
or, if the shares are not traded on the New York Stock Exchange on such date,
on the most recent preceding date when the shares were so traded. If Common
Stock is not listed on the New York Stock Exchange on the date as of which Fair
Market Value is to be determined, the Committee shall determine in good faith
the Fair Market Value in whatever manner it considers appropriate.

 

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“Incentive Stock Option”
means a Stock Option granted under Section 6 hereof that is intended to
meet the requirements of Section 422 of the Code and the regulations
thereunder.

 

“Non-Employee Director” means
any member of the Board who is not an employee of the Company.

 

“Nonqualified Stock Option”
means a Stock Option granted under Section 6 hereof that is not an
Incentive Stock Option.

 

“Participant” means any
Eligible Person who holds an outstanding Award under the Plan.

 

“Performance Award” means a
Restricted Stock Award or Restricted Stock Unit Award that is intended to
qualify as “performance-based compensation” under Section 162(m) of the
Code and described in Section 9 hereof.

 

“Performance Goal” means one
or more of the following performance goals, either individually, alternatively
or in any combination, applied on a corporate, subsidiary or business unit
basis:  revenue, cash flow, gross profit, earnings before interest and
taxes, earnings before interest, taxes, depreciation and amortization and net
earnings, earnings per share, margins (including one or more of gross,
operating and net income margins), returns (including one or more of return on
assets, equity, investment, capital and revenue and total stockholder return),
stock price, economic value added, working capital, market share, cost
reductions, workforce satisfaction and diversity goals, employee retention,
customer satisfaction, completion of key projects and strategic plan
development and implementation.  Such goals may reflect absolute entity or
business unit performance or a relative comparison to the performance of a peer
group of entities or other external measure of the selected performance
criteria.

 

“Plan” means Second Amended
and Restated Christopher & Banks Corporation 2005 Stock Incentive Plan
as set forth herein, as amended from time to time.

 

“Restricted Stock Award”
means a grant of shares of Common Stock to an Eligible Person under
Section 8 hereof that are issued, subject to such vesting and transfer
restrictions as the Committee shall determine and set forth in an Award
Agreement.

 

“Restricted Stock Unit Award”
means a grant of units to an Eligible Person under Section 8 hereof
evidencing the right to receive shares of Common Stock (or a cash payment equal
to the Fair Market Value of a share of Common Stock) at some future date,
subject to such vesting restrictions as the Committee shall determine and set
forth in an Award Agreement.

 

“Service” means a Participant’s
employment with the Company or any Affiliate or a Participant’s service as a
consultant to the Company or any Affiliate, as applicable.

 

“Stock Appreciation Right”
means a contractual right granted to an Eligible Person under Section 7
hereof entitling such Eligible Person to receive a payment, representing the
difference between the base price per share of the right and the Fair Market
Value of a share of Common Stock, at such time, and subject to such conditions,
as are set forth in the Plan and the applicable Award Agreement.

 

“Stock Option” means a
contractual right granted to an Eligible Person under Section 6 hereof to
purchase shares of Common Stock at such time and price, and subject to such
conditions, as are set forth in the Plan and the applicable Award Agreement.

 

“Substantial Risk of Forfeiture”
has the meaning ascribed to that term in Section 409A of the Code and
Department of Treasury guidance issued thereunder.

 

3.             Administration.

 

3.1           Committee
Members.  The Plan shall be administered by a Committee comprised
of no fewer than two members of the Board. Each Committee member shall satisfy
the requirements for (i) an “independent director” under
rules adopted by the New York Stock Exchange, (ii) a “nonemployee
director” for purposes of such Rule 16b-3 under the Exchange Act and
(iii) an “outside director” under Section 162(m) of the Code. No
member of the 

 

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Committee shall be liable for any
action or determination made in good faith by the Committee with respect to the
Plan or any Award thereunder.

 

3.2           Committee
Authority.  The Committee shall have such powers and authority as
may be necessary or appropriate for the Committee to carry out its functions as
described in the Plan. Subject to the express limitations of the Plan, the
Committee shall have authority in its discretion to determine the Eligible
Persons to whom, and the time or times at which, Awards may be granted, the
number of shares, units or other rights subject to each Award, the exercise,
base or purchase price of an Award (if any), the time or times at which an
Award will become vested, exercisable or payable, the performance goals and
other conditions of an Award, the duration of the Award, and all other terms of
the Award. Subject to the terms of the Plan, the Committee shall have the
authority to amend the terms of an Award in any manner that is not inconsistent
with the Plan, provided that no such action shall adversely affect the rights
of a Participant with respect to an outstanding Award without the Participant’s
consent. The Committee shall also have discretionary authority to interpret the
Plan, to make factual determinations under the Plan, and to make all other
determinations necessary or advisable for Plan administration, including,
without limitation, to correct any defect, to supply any omission or to
reconcile any inconsistency in the Plan or any Award Agreement hereunder. The
Committee may prescribe, amend, and rescind rules and regulations relating
to the Plan. The Committee’s determinations under the Plan need not be uniform
and may be made by the Committee selectively among Participants and Eligible
Persons, whether or not such persons are similarly situated. The Committee shall,
in its discretion, consider such factors as it deems relevant in making its
interpretations, determinations and actions under the Plan including, without
limitation, the recommendations or advice of any officer or employee of the
Company or such attorneys, consultants, accountants or other advisors as it may
select. All interpretations, determinations and actions by the Committee shall
be final, conclusive, and binding upon all parties.

 

3.3           Delegation
of Authority.  The Committee shall have the right, from time to
time, to delegate to one or more officers of the Company the authority of the
Committee to grant and determine the terms and conditions of Awards granted
under the Plan, subject to the requirements of Section 157(c) of the
Delaware General Corporation Law (or any successor provision) and such other
limitations as the Committee shall determine. In no event shall any such
delegation of authority be permitted with respect to Awards to any members of
the Board or to any Eligible Person who is subject to Rule 16b-3 under the
Exchange Act or Section 162(m) of the Code. The Committee shall also be
permitted to delegate, to any appropriate officer or employee of the Company,
responsibility for performing certain ministerial functions under the Plan. In
the event that the Committee’s authority is delegated to officers or employees
in accordance with the foregoing, all provisions of the Plan relating to the
Committee shall be interpreted in a manner consistent with the foregoing by
treating any such reference as a reference to such officer or employee for such
purpose. Any action undertaken in accordance with the Committee’s delegation of
authority hereunder shall have the same force and effect as if such action were
undertaken directly by the Committee and shall be deemed for all purposes of
the Plan to have been taken by the Committee.

 

4.             Shares
Subject to the Plan.

 

4.1           Maximum
Share Limitations; Accounting for Awards.  Subject to adjustment
pursuant to Section 4.3 hereof, the maximum aggregate number of shares of
Common Stock that may be issued and sold under all Awards granted under the
Plan shall be 4,975,000 shares.  Of such
aggregate Plan limit, the maximum number of shares of Common Stock that may be
issued as Incentive Stock Options under the Plan shall be limited to 4,975,000
shares.  Each of the foregoing numerical
limitations stated in this Section 4.1 shall be subject to adjustment in
accordance with the provisions of Section 4.3.  Shares of Common Stock issued and sold under
the Plan may be either authorized but unissued shares or shares held in the
Company’s treasury.  To the extent that
any Award involving the issuance of shares of Common Stock is forfeited,
cancelled, returned to the Company for failure to satisfy vesting requirements
or other conditions of the Award, or otherwise terminates without an issuance
of shares of Common Stock being made thereunder, the number of shares of Common
Stock covered thereby, multiplied by the ratio set forth in the next paragraph
of this Section 4.1, to the extent applicable, will no longer be counted
pursuant to this Section 4.1 against the foregoing maximum share limitations
and may again be available for granting Awards under the Plan.  Any Awards or portions thereof that are
settled in cash and not in shares of Common Stock shall not be counted against
the foregoing maximum share limitations.

 

For purposes of this Section 4.1, if
an Award entitles the holder thereof to receive or purchase shares of Common
Stock, the number of shares of Common Stock covered by such Award or to which
such Award relates shall be counted, in accordance with this Section 4.1, on
the date of grant of such Award against the aggregate 

 

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number of shares of Common Stock
available for Awards under the Plan. 
With respect to (i) Stock Options, (ii) Stock Appreciation Rights and
(iii) Restricted Stock and Restricted Stock Units that were granted prior to
the effective date of the Plan specified in Section 13.1, the number of shares
of Common Stock available for Awards under the Plan shall be reduced by one
share of Common Stock for each share of Common Stock covered by such Award or
to which such Award relates. With respect to Restricted Stock and Restricted
Stock Units that are granted after the effective date of the Plan specified in
Section 13.1, the number of shares of Common Stock available for Awards under
the Plan shall be reduced by 1.75 shares of Common Stock for each share of
Common Stock covered by such Award or to which such Award relates.  For Stock Appreciation Rights settled in
shares of Common Stock upon exercise, the aggregate number of shares of Common
Stock with respect to which the Stock Appreciation Right is exercised, rather
than the number of shares of Common Stock actually issued upon exercise, shall
be counted against the number of shares of Common Stock available for Awards
under the Plan.

 

4.2           Individual
Participant Limitations (Code § 162(m)).  The maximum number
of shares of Common Stock with respect to which Stock Options and Stock
Appreciation Rights in the aggregate may be granted to any one Participant
during any calendar year shall be 250,000 shares.  The maximum number of shares of Common Stock
with respect to which Awards of Restricted Stock and Restricted Stock Units in
the aggregate may be granted to any one Participant during any calendar year
shall be 250,000 shares.

 

4.3           Adjustments.  In
the event of an increase or decrease in the number of shares of Common Stock
resulting from a stock dividend, stock split, reverse split, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of
consideration by the Company, the number of shares of Stock reserved under
Section 4.1 hereof, the number of shares of Stock covered by each outstanding
Award and Option and the price per share thereof shall be appropriately
adjusted to reflect such change. 
Additional shares which may become covered by the Award or Option
pursuant to such adjustment shall be subject to the same restrictions as are
applicable to the shares with respect to which the adjustment relates.

 

5.             Participation
and Awards.

 

5.1           Designations
of Participants.  All Eligible Persons are eligible to be designated
by the Committee to receive Awards and become Participants under the Plan. The
Committee has the authority, in its discretion, to determine and designate from
time to time those Eligible Persons who are to be granted Awards, the types of
Awards to be granted and the number of shares of Common Stock or units subject
to Awards granted under the Plan. In selecting Eligible Persons to be
Participants and in determining the type and amount of Awards to be granted
under the Plan, the Committee shall consider any and all factors that it deems
relevant or appropriate.

 

5.2           Determination
of Awards.  The Committee shall determine the terms and
conditions of all Awards granted to Participants in accordance with its
authority under Section 3.2 hereof. An Award may consist of one type of
right or benefit hereunder or of two or more such rights or benefits granted in
tandem or in the alternative. In the case of any fractional share or unit
resulting from the grant, vesting, payment or crediting of dividends or dividend
equivalents under an Award, the Committee shall have the discretionary
authority to (i) disregard such fractional share or unit, (ii) round
such fractional share or unit to the nearest lower or higher whole share or
unit, or (iii) convert such fractional share or unit into a right to
receive a cash payment. To the extent deemed necessary by the Committee, an
Award shall be evidenced by an Award Agreement as described in
Section 12.1 hereof.

 

6.             Stock
Options.

 

6.1           Grant
of Stock Options.  A Stock Option may be granted to any Eligible
Person selected by the Committee. Subject to the provisions of Section 6.8
hereof and Section 422 of the Code, each Stock Option shall be designated,
in the discretion of the Committee, as an Incentive Stock Option or as a
Nonqualified Stock Option.

 

6.2           Exercise
Price.  The exercise price per share of a Stock Option shall not
be less than one hundred percent (100%) of the Fair Market Value of the shares
of Common Stock on the Date of Grant, provided that the Committee may in its
discretion specify for any Stock Option an exercise price per share that is
higher than the Fair Market Value on the Date of Grant.

 

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6.3           Vesting
of Stock Options.  The Committee shall in its discretion
prescribe the time or times at which, or the conditions upon which, a Stock
Option or portion thereof shall become vested and/or exercisable, and may
accelerate the vesting or exercisability of any Stock Option at any time. The
requirements for vesting and exercisability of a Stock Option may be based on
the continued Service of the Participant with the Company or its Affiliates for
a specified time period (or periods) or on the attainment of specified
performance goals established by the Committee in its discretion.

 

6.4           Term
of Stock Options.  The Committee shall in its discretion
prescribe in an Award Agreement the period during which a vested Stock Option
may be exercised, provided that the maximum term of a Stock Option shall be ten
(10) years from the Date of Grant. Except as otherwise provided in this
Section 6 or as otherwise may be provided by the Committee, no Stock
Option may be exercised at any time during the term thereof unless the
Participant is then in the Service of the Company or one of its Affiliates.

 

6.5           Termination
of Service.  Subject to Section 6.8 hereof with respect to
Incentive Stock Options, the Stock Option of any Participant whose Service with
the Company or one of its Affiliates is terminated for any reason shall
terminate on the earlier of (A) the date that the Stock Option expires in
accordance with its terms or (B) unless otherwise provided in an Award
Agreement, and except for termination for cause (as described in
Section 11.2 hereof), the expiration of the applicable time period
following termination of Service, in accordance with the following:
(i) twelve (12) months if Service ceased due to Disability,
(ii) twelve (12) months if the Participant died while in the Service of
the Company or any of its Affiliates, or (iii) three (3) months if
Service ceased for any other reason. During the foregoing applicable period,
except as otherwise specified in the Award Agreement or in the event Service
was terminated by the death of the Participant, the Stock Option may be
exercised by such Participant in respect of the same number of shares of Common
Stock, in the same manner, and to the same extent as if he or she had remained
in the continued Service of the Company or any Affiliate during the first three
(3) months of such period; provided that no additional rights shall vest
after such three (3) months. The Committee shall have authority to
determine in each case whether an authorized leave of absence shall be deemed a
termination of Service for purposes hereof, as well as the effect of a leave of
absence on the vesting and exercisability of a Stock Option. Unless otherwise
provided by the Committee, if an entity ceases to be an Affiliate of the
Company or otherwise ceases to be qualified under the Plan or if all or
substantially all of the assets of an Affiliate of the Company are conveyed
(other than by encumbrance), such cessation or action, as the case may be,
shall be deemed for purposes hereof to be a termination of the Service.

 

6.6           Stock
Option Exercise; Tax Withholding.  Subject to such terms and
conditions as shall be specified in an Award Agreement, a Stock Option may be
exercised in whole or in part at any time during the term thereof by notice in
the form required by the Company, together with payment of the aggregate exercise
price therefor and applicable withholding tax. Payment of the exercise price
shall be made in the manner set forth in the Award Agreement, unless otherwise
provided by the Committee: (i) in cash or by cash equivalent acceptable to
the Committee, (ii) by payment in shares of Common Stock that have been
held by the Participant for at least six (6) months (or such period as the
Committee may deem appropriate, for accounting purposes or otherwise) valued at
the Fair Market Value of such shares on the date of exercise,
(iii) through an open-market, broker-assisted sales transaction pursuant
to which the Company is promptly delivered the amount of proceeds necessary to
satisfy the exercise price, (iv) by a combination of the methods described
above or (v) by such other method as may be approved by the Committee and
set forth in the Award Agreement.  In
addition to and at the time of payment of the exercise price, the Participant
shall pay to the Company the full amount of any and all applicable income tax, employment
tax and other amounts required to be withheld in connection with such exercise,
payable under such of the methods described above for the payment of the
exercise price as may be approved by the Committee and set forth in the Award
Agreement.

 

6.7           Limited
Transferability of Nonqualified Stock Options.  All Stock Options
shall be nontransferable except (i) upon the Participant’s death, in
accordance with Section 12.2 hereof or (ii) in the case of
Nonqualified Stock Options only, for the transfer of all or part of the Stock
Option to a Participant’s “family member” (as defined for purposes of the
Form S-8 registration statement under the Securities Act of 1933), as may
be approved by the Committee in its discretion at the time of proposed
transfer. The transfer of a Nonqualified Stock Option may be subject to such
terms and conditions as the Committee may in its discretion impose from time to
time. Subsequent transfers of a Nonqualified Stock Option shall be prohibited
other than in accordance with Section 12.2 hereof.

 

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6.8           Additional
Rules for Incentive Stock Options.

 

(a)           Eligibility.  An Incentive Stock Option
may only be granted to an Eligible Person who is considered an employee for
purposes of Treasury Regulation §1.421-7(h) with respect to the Company or
any Affiliate that qualifies as a “subsidiary corporation” with respect to the
Company for purposes of Section 424(f) of the Code.

 

(b)           Annual Limits.  No Incentive Stock Option
shall be granted to a Participant as a result of which the aggregate Fair
Market Value (determined as of the Date of Grant) of the stock with respect to
which incentive stock options under Section 422 of the Code are
exercisable for the first time in any calendar year under the Plan and any
other stock option plans of the Company or any subsidiary or parent
corporation, would exceed $100,000, determined in accordance with
Section 422(d) of the Code. This limitation shall be applied by
taking stock options into account in the order in which granted.

 

(c)           Termination of Employment.  An Award of
an Incentive Stock Option may provide that such Stock Option may be exercised
not later than three (3) months following termination of employment of the
Participant with the Company and all Subsidiaries, or not later than one
(1) year following a permanent and total disability within the meaning of
Section 22(e)(3) of the Code, as and to the extent determined by the
Committee to comply with the requirements of Section 422 of the Code.

 

(d)           Other Terms and Conditions; Nontransferability.  Any
Incentive Stock Option granted hereunder shall contain such additional terms
and conditions, not inconsistent with the terms of the Plan, as are deemed
necessary or desirable by the Committee, which terms, together with the terms
of the Plan, shall be intended and interpreted to cause such Incentive Stock
Option to qualify as an “incentive stock option” under Section 422 of the
Code. An Award Agreement for an Incentive Stock Option may provide that such
Stock Option shall be treated as a Nonqualified Stock Option to the extent that
certain requirements applicable to “incentive stock options” under the Code
shall not be satisfied. An Incentive Stock Option shall by its terms be
nontransferable other than by will or by the laws of descent and distribution,
and shall be exercisable during the lifetime of a Participant only by such
Participant.

 

(e)           Disqualifying Dispositions.  If shares of
Common Stock acquired by exercise of an Incentive Stock Option are disposed of
within two (2) years following the Date of Grant or one (1) year
following the transfer of such shares to the Participant upon exercise, the
Participant shall, promptly following such disposition, notify the Company in
writing of the date and terms of such disposition and provide such other
information regarding the disposition as the Company may reasonably require.

 

(f)            Repricing Prohibited.  Subject to the
anti-dilution adjustment provisions contained in Section 4.3 hereof,
without the prior approval of the Company’s stockholders, evidenced by a
majority of votes cast, neither the Committee nor the Board shall cause the
cancellation, substitution or amendment of a Stock Option that would have the
effect of reducing the exercise price of such a Stock Option previously granted
under the Plan, or otherwise approve any modification to such a Stock Option
that would be treated as a “repricing” under the then applicable rules,
regulations or listing requirements adopted by the New York Stock Exchange.

 

7.             Stock
Appreciation Rights.

 

7.1           Grant
of Stock Appreciation Rights.  A Stock Appreciation Right may be
granted to any Eligible Person selected by the Committee. Stock Appreciation
Rights may be granted on a basis that allows for the exercise of the right by
the Participant or that provides for the automatic payment of the right upon a
specified date or event. Stock Appreciation Rights shall be exercisable or
payable at such time or times and upon conditions as may be approved by the
Committee, provided that the Committee may accelerate the exercisability or
payment of a Stock Appreciation Right at any time.

 

7.2           Freestanding
Stock Appreciation Rights.  A Stock Appreciation Right may be
granted without any related Stock Option and may be subject to such vesting and
exercisability requirements as specified by the

 

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Committee in an Award Agreement.
Such vesting and exercisability requirements may be based on the continued
Service of the Participant with the Company or its Affiliates for a specified
time period (or periods) or on the attainment of specified performance goals
established by the Committee in its discretion. A Stock Appreciation Right will
be exercisable or payable at such time or times as determined by the Committee,
provided that the maximum term of a Stock Appreciation Right shall be ten
(10) years from the Date of Grant. The base price of a Stock Appreciation
Right granted without any related Stock Option shall be determined by the
Committee in its sole discretion; provided, however, that the base price per
share of any such freestanding Stock Appreciation Right shall not be less than
one hundred percent (100%) of the Fair Market Value of the shares of Common
Stock on the Date of Grant.

 

7.3           Tandem
Stock Option/Stock Appreciation Rights.  A Stock Appreciation
Right may be granted in tandem with a Stock Option, either at the time of grant
or at any time thereafter during the term of the Stock Option. A tandem Stock
Option/Stock Appreciation Right will entitle the holder to elect, as to all or
any portion of the number of shares subject to such Stock Option/Stock
Appreciation Right, to exercise either the Stock Option or the Stock
Appreciation Right, resulting in the reduction of the corresponding number of
shares subject to the right so exercised as well as the tandem right not so
exercised. A Stock Appreciation Right granted in tandem with a Stock Option
hereunder shall have a base price per share equal to the per share exercise
price of the Stock Option, will be vested and exercisable at the same time or
times that a related Stock Option is vested and exercisable, and will expire no
later than the time at which the related Stock Option expires.

 

7.4           Payment
of Stock Appreciation Rights.  A Stock Appreciation Right will
entitle the holder, upon exercise or other payment of the Stock Appreciation
Right, as applicable, to receive an amount determined by multiplying:
(i) the excess of the Fair Market Value of a share of Common Stock on the
date of exercise or payment of the Stock Appreciation Right over the base price
of such Stock Appreciation Right, by (ii) the number of shares as to which
such Stock Appreciation Right is exercised or paid. Subject to the requirements
of Section 409A of the Code, payment of the amount determined under the
foregoing shall be made solely in shares of Common Stock valued at their Fair
Market Value on the date of exercise or payment, subject to applicable tax
withholding requirements.

 

7.5           Repricing
Prohibited.  Subject to the anti-dilution adjustment provisions
contained in Section 4.3 hereof, without the prior approval of the Company’s
stockholders, evidenced by a majority of votes cast, neither the Committee nor
the Board shall cause the cancellation, substitution or amendment of a Stock
Appreciation Right that would have the effect of reducing the base price of
such a Stock Appreciation Right previously granted under the Plan, or otherwise
approve any modification to such a Stock Appreciation Right that would be
treated as a “repricing” under the then applicable rules, regulations or
listing requirements adopted by the New York Stock Exchange.

 

8.             Restricted
Stock Awards and Restricted Stock Unit Awards.

 

8.1           Grant
of Restricted Stock Awards and Restricted Stock Unit Awards.  Restricted
Stock Awards and Restricted Stock Unit Awards may be granted to any Eligible
Person selected by the Committee. The Committee may require the payment by the
Participant of a specified purchase price in connection with any Restricted
Stock Award or Restricted Stock Unit Award.

 

8.2           Vesting
Requirements.  The restrictions imposed on shares granted under a
Restricted Stock Award or a Restricted Stock Unit Award shall lapse in
accordance with the vesting requirements specified by the Committee in the
Award Agreement, provided that the Committee may accelerate the vesting of a
Restricted Stock Award or Restricted Stock Unit Award at any time. Such vesting
requirements may be based on the continued Service of the Participant with the
Company or its Affiliates for a specified time period (or periods) or on the
attainment of specified performance goals established by the Committee in its
discretion which constitute a Substantial Risk of Forfeiture. If the vesting
requirements of a Restricted Stock Award shall not be satisfied, the Award
shall be forfeited and the shares of Common Stock subject to the Award shall be
returned to the Company. If the vesting requirements of a Restricted Stock Unit
Award shall not be satisfied, the Award shall be forfeited and the shares of
Common Stock underlying such units subject to the Award shall be returned to
the Company.

 

8.3           Issuance
and Delivery of Shares.  Any shares
issued under a Restricted Stock Award granted under the Plan shall be issued at
the time such Awards are granted and may be evidenced in such manner as the 

 

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Committee may deem appropriate,
including book-entry registration or issuance of a stock certificate or
certificates registered in the name of the Participant. The Committee may
require in an Award Agreement that certificates representing the shares granted
under a Restricted Stock Award bear a legend making appropriate reference to
the restrictions imposed, and that certificates representing the shares granted
or sold under a Restricted Stock Award will remain in the physical custody of
an escrow holder until all restrictions are removed or have expired. Shares
granted under any Restricted Stock Award may not be transferred, assigned or
subject to any encumbrance, pledge, or charge until all applicable restrictions
are removed or have expired, unless otherwise allowed by the Committee. Failure
to satisfy any applicable restrictions shall result in the subject shares of
the Restricted Stock Award being forfeited and returned to the Company. Shares
representing a Restricted Stock Award that is no longer subject to restrictions
shall be delivered to the Participant promptly after the applicable
restrictions lapse or are waived.

 

In the case of Restricted Stock Unit
Awards, no shares of Common Stock shall be issued at the time such Awards are
granted. Upon the lapse or waiver of restrictions relating to Restricted Stock
Unit Awards evidencing the right to receive shares of Common Stock, such shares
shall be issued and delivered to the holder of the Restricted Stock Unit Award.

 

8.4           Restrictions.  Shares
granted under Restricted Stock Awards and Restricted Stock Units shall be
subject to such restrictions as the Committee may impose (including, without
limitation, any limitation on the right to vote shares of Common Stock granted
to the Participant under a Restricted Stock Award or Restricted Stock Unit
Award or the right to receive any dividend or other right or property with
respect thereto), which restrictions may lapse separately or in combination at
such time or times, in such installments or otherwise, as the Committee may
deem appropriate. Notwithstanding the foregoing, the Committee may permit
acceleration of vesting of such Awards in the event of the Participant’s death,
disability or retirement or a change in control of the Company.

 

8.5           Section 83(b) Election.  If
a Participant makes an election pursuant to Section 83(b) of the Code
with respect to a Restricted Stock Award, the Participant shall file, within
thirty (30) days following the Date of Grant, a copy of such election with the
Company and with the Internal Revenue Service, in accordance with the
regulations under Section 83 of the Code. The Committee may provide in an
Award Agreement that the Restricted Stock Award is conditioned upon the
Participant’s making or refraining from making an election with respect to the
Award under Section 83(b) of the Code.

 

8.6           Compliance
With Code Section 409A.  Restricted Stock Awards and Restricted
Stock Unit Awards shall be designed and operated in such a manner that they are
either exempt from the application of, or comply with, the requirements of
Section 409A of the Code.

 

9.             Section 162(m)
Performance-Based Awards.

 

9.1           Establishment
of Performance Goals.  For purposes
of Restricted Stock Awards and Restricted Stock Unit Awards granted under the
Plan that are intended to qualify as “performance-based compensation” under
Section 162(m) of the Code  (a “Performance Award”), such Performance
Awards shall, to the extent required by Section 162(m) of the Code, be
conditioned solely on the achievement of one or more objective Performance
Goals.  Subject to the terms of the Plan and any applicable Award
Agreement, the Performance Goals to be achieved during any performance period,
the length of any performance period, the amount of any Performance Award
granted, the amount of any payment or transfer to be made pursuant to any
Performance Award and any other terms and conditions of any Performance Award
shall be determined by the Committee. The applicable Performance Goals and
specific targets thereunder must be established and approved by the Committee
during the first ninety (90) days of the performance period (and, in the case
of performance periods of less than one year, in no event after twenty-five
percent (25%) or more of the performance period has elapsed) and while
performance relating to such target(s) remains substantially uncertain within
the meaning of Section 162(m) of the Code.  Performance Goal targets
shall be adjusted to mitigate the unbudgeted impact of material, unusual or
nonrecurring gains and losses, accounting changes or other extraordinary events
not foreseen at the time the targets were set unless the Committee provides
otherwise at the time of establishing the targets.

 

9.2           Committee
Certification.  Before any
Performance Award under this Section 9 vests, the Committee must certify
in writing that the Performance Goal target(s) and any other material terms of
the Performance Award were in fact timely satisfied.

 

8

 

9.3           Expiration
of Grant Authority.  As required
pursuant to Section 162(m) of the Code and the regulations promulgated
thereunder, the Committee’s authority to grant new Performance Awards shall
terminate upon the first meeting of the Company’s stockholders that occurs in
the fifth (5th) year following the year in which the Company’s stockholders
approve this Plan.

 

10.           Change
in Control.

 

10.1         Effect
of Change in Control.  Except to the extent an Award Agreement
provides for a different result (in which case the Award Agreement will govern
and this Section 10 of the Plan shall not be applicable), notwithstanding
anything elsewhere in the Plan or any rules adopted by the Committee
pursuant to the Plan to the contrary, if a Triggering Event shall occur within
the twelve (12) month period beginning with a Change in Control of the Company,
then, effective immediately prior to such Triggering Event, (i) each
outstanding Stock Option and Stock Appreciation Right, to the extent that it
shall not otherwise have become vested and exercisable, shall automatically
become fully and immediately vested and exercisable, without regard to any
otherwise applicable vesting requirement, and (ii) each Restricted Stock
Award and Restricted Stock Unit Award shall become fully and immediately vested
and all forfeiture and transfer restrictions thereon shall lapse.

 

10.2         Definitions.

 

(a)           Cause.  For purposes of this
Section 10, the term “Cause” shall mean a determination by the Committee
that a Participant (i) has been convicted of, or entered a plea of nolo
contendere to, a crime that constitutes a felony under Federal or state law,
(ii) has engaged in willful gross misconduct in the performance of the
Participant’s duties to the Company or an Affiliate or (iii) has committed
a material breach of any written agreement with the Company or any Affiliate
with respect to confidentiality, noncompetition, nonsolicitation or similar
restrictive covenant. Subject to the first sentence of Section 10.1
hereof, in the event that a Participant is a party to an employment agreement with
the Company or any Affiliate that defines a termination on account of “Cause”
(or a term having similar meaning), such definition shall apply as the
definition of a termination on account of “Cause” for purposes hereof, but only
to the extent that such definition provides the Participant with greater
rights. A termination on account of Cause shall be communicated by written
notice to the Participant, and shall be deemed to occur on the date such notice
is delivered to the Participant.

 

(b)           Change in Control.  For purposes of this
Section 10, a “Change in Control” shall be deemed to have occurred upon:

 

(i)            the occurrence of (A) an
acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of a percentage of the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Company Voting Securities”) (but excluding
(1) any acquisition directly from the Company (other than an acquisition
by virtue of the exercise of a conversion privilege of a security that was not
acquired directly from the Company), (2) any acquisition by the Company or
an Affiliate and (3) any acquisition by an employee benefit plan (or
related trust) sponsored or maintained by the Company or any Affiliate) (an “Acquisition”)
that is thirty percent (30%) or more of the Company Voting Securities; and
(B) the termination of employment, within six (6) months following
the Acquisition, of the individual who is the Chief Executive Officer of the
Company immediately prior to the Acquisition, for any reason other than death,
Disability, Cause, or voluntary resignation (but excluding any termination that
constitutes a Constructive Termination or any resignation that was requested by
the Board or any such Person (or its employees or representatives) that
completes an Acquisition);

 

(ii)           at any time during a period of two
(2) consecutive years or less, individuals who at the beginning of such
period constitute the Board (and any new directors whose election by the Board
or nomination for election by the Company’s stockholders was approved by a vote
of at least two-thirds (2/3) of the directors then still in office who either
were directors at the beginning 

 

9

 

of the period or whose election or
nomination for election was so approved) cease for any reason (except for
death, Disability or voluntary retirement) to constitute a majority thereof;

 

(iii)          an Acquisition that is fifty percent
(50%) or more of the Company Voting Securities;

 

(iv)          the consummation of a merger,
consolidation, reorganization or similar corporate transaction, whether or not
the Company is the surviving company in such transaction, other than a merger,
consolidation, or reorganization that would result in the Persons who are
beneficial owners of the Company Voting Securities outstanding immediately
prior thereto continuing to beneficially own, directly or indirectly, in
substantially the same proportions, at least fifty percent (50%) of the
combined voting power of the Company Voting Securities (or the voting
securities of the surviving entity) outstanding immediately after such merger,
consolidation or reorganization;

 

(v)           the sale or other disposition of all
or substantially all of the assets of the Company;

 

(vi)          the approval by the stockholders of
the Company of a complete liquidation or dissolution of the Company; or

 

(vii)         the occurrence of any transaction or
event, or series of transactions or events, designated by the Board in a duly
adopted resolution as representing a change in the effective control of the
business and affairs of the Company, effective as of the date specified in any
such resolution.

 

(c)           Constructive Termination.  For purposes
of this Section 10, a “Constructive Termination” shall mean a termination
of employment by a Participant within sixty (60) days following the occurrence
of any one or more of the following events without the Participant’s written
consent (i) any reduction in position, title (for Vice Presidents or
above), overall responsibilities, level of authority, level of reporting (for
Vice Presidents or above), base compensation, annual incentive compensation
opportunity, aggregate employee benefits or (ii) a request that the
Participant’s location of employment be relocated by more than fifty (50)
miles. Subject to the first sentence of Section 10.1 hereof, in the event
that a Participant is a party to an employment agreement with the Company or
any Affiliate (or a successor entity) that defines a termination on account of “Constructive
Termination,” “Good Reason” or “Breach of Agreement” (or a term having a similar
meaning), such definition shall apply as the definition of “Constructive
Termination” for purposes hereof in lieu of the foregoing, but only to the
extent that such definition provides the Participant with greater rights. A
Constructive Termination shall be communicated by written notice to the
Committee, and shall be deemed to occur on the date such notice is delivered to
the Committee, unless the circumstances giving rise to the Constructive
Termination are cured within five (5) days of such notice.

 

(d)           Triggering Event.  For purposes of this
Section 10, a “Triggering Event” shall mean (i) the termination of
Service of a Participant by the Company or an Affiliate (or any successor
thereof) other than on account of death, Disability or Cause, (ii) the
occurrence of a Constructive Termination or (iii) any failure by the
Company (or a successor entity) to assume, replace, convert or otherwise
continue any Award in connection with the Change in Control (or another
corporate transaction or other change effecting the Common Stock) on the same
terms and conditions as applied immediately prior to such transaction, except
for equitable adjustments to reflect changes in the Common Stock pursuant to
Section 4.3 hereof.

 

10.3         Excise
Tax Limit.  In the event that the vesting of Awards together with
all other payments and the value of any benefit received or to be received by a
Participant would result in all or a portion of such payment being subject to
the excise tax under Section 4999 of the Code, then the Participant’s
payment shall be either (i) the full payment or (ii) such lesser
amount that would result in no portion of the payment being subject to excise
tax under Section 4999 of the Code (the “Excise Tax”), whichever of the
foregoing amounts, taking into account the applicable Federal, state, and local
employment taxes, income taxes, and the Excise Tax, results in the receipt by
the Participant, on an after-tax basis, of the greatest amount of the payment
notwithstanding that all or some portion of 

 

10

 

the payment may be taxable under
Section 4999 of the Code. All determinations required to be made under
this Section 10 shall be made by a nationally recognized accounting firm
(the “Accounting Firm”). The Company shall cause the Accounting Firm to provide
detailed supporting calculations of its determinations to the Company and the
Participant. All fees and expenses of the Accounting Firm shall be borne solely
by the Company. The Accounting Firm’s determinations must be made with
substantial authority (within the meaning of Section 6662 of the Code).
For the purposes of all calculations under Section 280G of the Code and
the application of this Section 10.3, all determinations as to present
value shall be made using one hundred twenty percent (120%) of the applicable
Federal rate (determined under Section 1274(d) of the Code)
compounded semiannually.

 

11.           Forfeiture
Events.

 

11.1         General.  The
Committee may specify in an Award Agreement at the time of the Award that the
Participant’s rights, payments and benefits with respect to an Award shall be
subject to reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events shall include, but
shall not be limited to, termination of Service for cause, violation of
material Company policies, breach of noncompetition, confidentiality or other
restrictive covenants that may apply to the Participant, or other conduct by
the Participant that is detrimental to the business or reputation of the
Company.

 

11.2         Termination
for Cause.  Unless otherwise provided by the Committee and set
forth in an Award Agreement, if a Participant’s employment with the Company or
any Affiliate shall be terminated for cause, the Company may, in its sole
discretion, immediately terminate such Participant’s right to any further
payments, vesting or exercisability with respect to any Award in its entirety.
In the event a Participant is party to an employment (or similar) agreement
with the Company or any Affiliate that defines the term “cause,” such
definition shall apply for purposes of this Section 11. The Company shall have
the power to determine whether the Participant has been terminated for cause
and the date upon which such termination for cause occurs. Any such
determination shall be final, conclusive and binding upon the Participant. In
addition, if the Company shall reasonably determine that a Participant has committed
or may have committed any act which could constitute the basis for a
termination of such Participant’s employment for cause, the Company may suspend
the Participant’s rights to exercise any option, receive any payment or vest in
any right with respect to any Award pending a determination by the Company of
whether an act has been committed which could constitute the basis for a
termination for “cause” as provided in this Section 11.2.

 

12.           General
Provisions.

 

12.1         Award
Agreement.  To the extent deemed necessary by the Committee, an
Award under the Plan shall be evidenced by an Award Agreement in a written or
electronic form approved by the Committee setting forth the number of shares of
Common Stock or units subject to the Award, the exercise price, base price, or
purchase price of the Award, the time or times at which an Award will become
vested, exercisable or payable and the term of the Award. The Award Agreement
may also set forth the effect on an Award of termination of Service under
certain circumstances. The Award Agreement shall be subject to and incorporate,
by reference or otherwise, all of the applicable terms and conditions of the
Plan, and may also set forth other terms and conditions applicable to the Award
as determined by the Committee consistent with the limitations of the Plan.
Award Agreements evidencing Incentive Stock Options shall contain such terms
and conditions as may be necessary to meet the applicable provisions of
Section 422 of the Code. The grant of an Award under the Plan shall not
confer any rights upon the Participant holding such Award other than such
terms, and subject to such conditions, as are specified in the Plan as being
applicable to such type of Award (or to all Awards) or as are expressly set
forth in the Award Agreement. In the event that any provision of an Award
Agreement conflicts with or is inconsistent in any respect with the terms of
the Plan as set forth herein or subsequently amended, the terms of the Plan
shall control.  The Committee need not require the execution of an Award
Agreement by a Participant, in which case, acceptance of the Award by the
Participant shall constitute agreement by the Participant to the terms,
conditions, restrictions and limitations set forth in the Plan and the Award
Agreement as well as the administrative guidelines of the Company in effect
from time to time.

 

12.2         No
Assignment or Transfer; Beneficiaries.  Except as provided in
Section 6.7 hereof, Awards under the Plan shall not be assignable or
transferable by the Participant, except by will or by the laws of descent and
distribution, and shall not be subject in any manner to assignment, alienation,
pledge, encumbrance or charge. 

 

11

 

Notwithstanding the foregoing, the
Committee may provide in the terms of an Award Agreement that the Participant
shall have the right to designate a beneficiary or beneficiaries who shall be
entitled to any rights, payments or other benefits specified under an Award
following the Participant’s death. During the lifetime of a Participant, an
Award shall be exercised only by such Participant or such Participant’s
guardian or legal representative. In the event of a Participant’s death, an
Award may to the extent permitted by the Award Agreement be exercised by the
Participant’s beneficiary as designated by the Participant in the manner
prescribed by the Committee or, in the absence of an authorized beneficiary
designation, by the legatee of such Award under the Participant’s will or by
the Participant’s estate in accordance with the Participant’s will or the laws
of descent and distribution, in each case in the same manner and to the same
extent that such Award was exercisable by the Participant on the date of the
Participant’s death.

 

12.3         Deferrals
of Payment.  The Committee may in its discretion permit a
Participant to defer the receipt of payment of cash or delivery of shares of
Common Stock that would otherwise be due to the Participant by virtue of the
exercise of a right or the satisfaction of vesting or other conditions with
respect to an Award. If any such deferral is to be permitted by the Committee,
the Committee shall establish rules and procedures relating to such
deferral in a manner intended to comply with the requirements of Section 409A
of the Code, including, without limitation, the time when an election to defer
may be made, the time period of the deferral and the events that would result
in payment of the deferred amount, the interest or other earnings attributable
to the deferral and the method of funding, if any, attributable to the deferred
amount.

 

12.4         Rights
as Stockholder.  A Participant shall have no rights as a holder
of shares of Common Stock with respect to any unissued securities covered by an
Award until the date the Participant becomes the holder of record of such
securities. Except as provided in Section 4.3 hereof, no adjustment or
other provision shall be made for dividends or other stockholder rights, except
to the extent that the Award Agreement provides for dividend payments or
dividend equivalent rights.

 

12.5         Employment
or Service.  Nothing in the Plan, in the grant of any Award or in
any Award Agreement shall confer upon any Eligible Person any right to continue
in the Service of the Company or any of its Affiliates, or interfere in any way
with the right of the Company or any of its Affiliates to terminate the
Participant’s employment or other service relationship for any reason at any
time.

 

12.6         Securities
Laws.  No shares of Common Stock will be issued or transferred
pursuant to an Award unless and until all then applicable requirements imposed
by Federal and state securities and other laws, rules and regulations and
by any regulatory agencies having jurisdiction, and by any exchanges upon which
the shares of Common Stock may be listed, have been fully met. As a condition
precedent to the issuance of shares pursuant to the grant or exercise of an
Award, the Company may require the Participant to take any reasonable action to
meet such requirements. The Committee may impose such conditions on any shares
of Common Stock issuable under the Plan as it may deem advisable, including,
without limitation, restrictions under the Securities Act of 1933, as amended,
under the requirements of any exchange upon which such shares of the same class
are then listed, and under any blue sky or other securities laws applicable to
such shares. The Committee may also require the Participant to represent and
warrant at the time of issuance or transfer that the shares of Common Stock are
being acquired only for investment purposes and without any current intention
to sell or distribute such shares.

 

12.7         Tax
Withholding.  The Participant shall be responsible for payment of
any taxes or similar charges required by law to be withheld from an Award or an
amount paid in satisfaction of an Award, which shall be paid by the Participant
on or prior to the payment or other event that results in taxable income in
respect of an Award. The Award Agreement may specify the manner in which the
withholding obligation shall be satisfied with respect to the particular type
of Award.

 

12.8         Unfunded
Plan.  The adoption of the Plan and any reservation of shares of
Common Stock or cash amounts by the Company to discharge its obligations
hereunder shall not be deemed to create a trust or other funded arrangement.
Except upon the issuance of Common Stock pursuant to an Award, any rights of a
Participant under the Plan shall be those of a general unsecured creditor of
the Company, and neither a Participant nor the Participant’s permitted
transferees or estate shall have any other interest in any assets of the
Company by virtue of the Plan. Notwithstanding the foregoing, the Company shall
have the right to implement or set aside funds in a grantor trust, subject to
the claims of the Company’s creditors or otherwise, to discharge its
obligations under the Plan.

 

12

 

12.9         Other
Compensation and Benefit Plans.  The adoption of the Plan shall
not affect any other share incentive or other compensation plans in effect for
the Company or any Affiliate, nor shall the Plan preclude the Company from
establishing any other forms of share incentive or other compensation or
benefit program for employees of the Company or any Affiliate. The amount of
any compensation deemed to be received by a Participant pursuant to an Award
shall not constitute includable compensation for purposes of determining the
amount of benefits to which a Participant is entitled under any other
compensation or benefit plan or program of the Company or an Affiliate,
including, without limitation, under any pension or severance benefits plan,
except to the extent specifically provided by the terms of any such plan.

 

12.10       Plan Binding on Transferees.  The Plan shall be
binding upon the Company, its transferees and assigns, and the Participant, the
Participant’s executor, administrator and permitted transferees and
beneficiaries.

 

12.11       Severability.  If any provision of the Plan
or any Award Agreement shall be determined to be illegal or unenforceable by
any court of law in any jurisdiction, the remaining provisions hereof and
thereof shall be severable and enforceable in accordance with their terms, and
all provisions shall remain enforceable in any other jurisdiction.

 

12.12       Foreign Jurisdictions.  The Committee may
adopt, amend and terminate such arrangements and grant such Awards, not
inconsistent with the intent of the Plan, as it may deem necessary or desirable
to comply with any tax, securities, regulatory or other laws of other
jurisdictions with respect to Awards that may be subject to such laws. The
terms and conditions of such Awards may vary from the terms and conditions that
would otherwise be required by the Plan solely to the extent the Committee
deems necessary for such purpose. Moreover, the Board may approve such
supplements to or amendments, restatements or alternative versions of the Plan,
not inconsistent with the intent of the Plan, as it may consider necessary or
appropriate for such purposes, without thereby affecting the terms of the Plan
as in effect for any other purpose.

 

12.13       Substitute Awards in Corporate Transactions.  Nothing
contained in the Plan shall be construed to limit the right of the Committee to
grant Awards under the Plan in connection with the acquisition, whether by
purchase, merger, consolidation or other corporate transaction, of the business
or assets of any corporation or other entity. Without limiting the foregoing,
the Committee may grant Awards under the Plan to an employee or director of
another corporation who becomes an Eligible Person by reason of any such
corporate transaction in substitution for awards previously granted by such
corporation or entity to such person. The terms and conditions of the
substitute Awards may vary from the terms and conditions that would otherwise
be required by the Plan solely to the extent the Committee deems necessary for
such purpose.

 

12.14       Governing Law.  The Plan and all rights
hereunder shall be subject to and interpreted in accordance with the laws of
the State of Delaware, without reference to the principles of conflicts of
laws, and to applicable Federal securities laws.

 

13.           Effective
Date; Amendment and Termination.

 

13.1         Effective
Date.  The Plan shall become effective following its adoption by
the Board and its approval by the Company’s stockholders on the date of the
2010 Annual Meeting of Stockholders. The term of the Plan shall be ten
(10) years from the original date of adoption by the Board, subject to
Section 13.3 hereof.

 

13.2         Amendment.  The
Board may at any time and from time to time and in any respect, amend or modify
the Plan. The Board may seek the approval of any amendment or modification by
the Company’s stockholders to the extent it deems necessary or advisable in its
discretion for purposes of compliance with Section 162(m) or
Section 422 of the Code, the listing requirements of the New York Stock
Exchange or other exchange or securities market or for any other purpose. No
amendment or modification of the Plan shall adversely affect any Award
theretofore granted without the consent of the Participant or the permitted
transferee of the Award.

 

13.3         Termination.  The
Plan shall terminate on April 7, 2015, which is the tenth (10th)
anniversary of the date of its original adoption by the Board. The Board may,
in its discretion and at any earlier date, terminate the Plan. Notwithstanding
the foregoing, no termination of the Plan shall adversely affect any Award
theretofore granted without the consent of the Participant or the permitted
transferee of the Award.

 

13Exhibit 10.2

 

EXECUTION COPY

 

AMENDMENT NO. 1 TO MASTER CREDIT FACILITY AGREEMENT

 

THIS
AMENDMENT NO. 1 TO MASTER CREDIT FACILITY AGREEMENT (the “Amendment”) is made as of February 1,
2010 by and among (i) SNH FM FINANCING LLC, a Delaware limited liability
company (“Borrower”); (ii) CITIBANK,
N.A., a national banking association (“Lender”);
and (iii) Fannie Mae, that body corporate duly organized under the Federal
National Mortgage Association Charter Act, as amended, 12 U.S.C. § 1716 et seq.
and duly organized and existing under the laws of the United States, and its
successors and assigns (“Fannie Mae”).

 

RECITALS

 

A.            Borrower and Lender are parties to
that certain Master Credit Facility Agreement dated August 4, 2009 (as the
same may be amended, restated, modified or supplemented from time to time, the “Master Agreement”).

 

B.            Pursuant to the Master Agreement,
Lender provided term loans in the aggregate amount of $512,934,000 to Borrower,
comprised of a $205,174,000 Variable Loan, and a $307,760,000 Fixed Loan.

 

C.            Immediately after the execution of
the Master Agreement, the Lender’s interests under the Master Agreement were
assigned by the Lender to Fannie Mae pursuant to that certain Assignment of
Master Credit Facility Agreement and Other Loan Documents dated as of
August 4, 2009.

 

D.            Borrower has requested and Lender
has consented to the amendment of the Master Agreement. In connection
therewith, Fannie Mae, Lender and Borrower desire to amend the Master Agreement
in certain respects as set forth herein.

 

E.             Fannie Mae, Lender and Borrower
intend these Recitals to be a material part of this Amendment.

 

NOW,
THEREFORE, the parties hereto, in consideration of the mutual promises and
agreements set forth herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, hereby agree as
follows:

 

Section 1.  Capitalized Terms. All
capitalized terms used in this Amendment which are not specifically defined
herein shall have the respective meanings set forth in the Master Agreement.

 

Section 2.  Amendment.

 

(i)            Section 8.03 (b)(i) is hereby deleted in its
entirety and replaced with the following:

 

1

 

Amendment No. 1 to Master Credit Facility
Agreement

(Senior Housing Properties Trust Credit Facility)

 

 

“(i)          Annual Financial Statements. As soon
as available, and in any event within ninety (90) days after the close of its
fiscal year during the Term of this Agreement, the balance sheet showing all
assets and liabilities of Borrower and Key Principal as of the end of such
fiscal year, the statement of income, expenses, equity and retained earnings of
Borrower’s operation and Key Principal’s operation for such fiscal year, and
the statement of changes in financial position and cash flows of Borrower and
Key Principal for such fiscal year, all in reasonable detail and stating in
comparative form the respective figures for the corresponding date and period
in the prior fiscal year, prepared in accordance with GAAP consistently
applied. The Borrower financial statements will be accompanied by a certificate
of an authorized representative of Borrower acceptable to Lender stating that
such financial statements have been prepared in accordance with GAAP,
consistently applied, and fairly present the results of its operations and
financial condition for the periods and dates indicated. The Key Principal’s
financial statements will be accompanied by an audit report of Key Principal’s
independent certified public accountants to the effect that (a) such
financial statements have been audited by such accountants, (b) such
financial statements fairly present the results of its operations and financial
condition for the periods and dates indicated, with such certification to be
free of exceptions and qualifications as to the scope of the audit as to the
going concern nature of the business. As soon as available, and in any event
within ninety (90) days after the close of its fiscal year during the Term of
this Agreement, Key Principal’s Chief Financial Officer will provide to Lender,
a letter as of January 1 of each year, to the effect that such officer has
reviewed the records and systems of the Borrower and the Key Principal and that
Borrower is in compliance with subsections (v), (vi) and (xvi) of the
Single- Purpose requirements (as set forth in the definition of Single-Purpose
herein) (the “Compliance Letter”). If the Key Principal is no longer a publicly
traded entity, such Compliance Letter will be provided by Borrower and Key
Principal’s independent certified public accounting firm or any other
nationally recognized accounting firm and such Compliance Letter will be based
upon agreed upon procedures satisfactory to Lender. All financial statements
required by this subsection (i) with respect to Key Principal shall be
audited, and all financial statements required by this subsection (i) with
respect to Borrower may be unaudited;”

 

Section 3.  Full Force and Effect.  Except as expressly modified hereby, the
Master Agreement and all of the terms, conditions, covenants, agreements and
provisions thereof remain in full force and effect and are hereby ratified and
affirmed.

 

Section 4.  Reserved.

 

Section 5.  Counterparts.  This Amendment may be executed in
counterparts by the parties hereto, and each such counterpart shall be
considered an original and all such counterparts shall constitute one and the
same instrument.

 

Section 6.  Governing Law. The provisions
of Section 15.06 of the Master Agreement (entitled “Choice of Law; Consent
to Jurisdiction; Waiver of Jury Trial”) are hereby incorporated into this
Amendment by this reference to the fullest extent as if the text of such Section were
set forth in its entirety herein.

 

2

 

Amendment No. 1 to Master Credit Facility
Agreement

(Senior Housing Properties Trust Credit Facility)

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day
and year first above written.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  SNH FM Financing LLC, a Delaware

  
	
   

  	
  limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Richard A. Doyle

  	
   

  
	
   

  	
  Name: 

  	
  Richard
  A. Doyle

  	
   

  
	
   

  	
  Title: 

  	
  Treasurer
  and Chief Financial Officer

  	
   

  
							

 

[Signatures continue on following page]

 

S-1

 

Amendment No. 1 to Master Credit Facility
Agreement

(Senior Housing Properties Trust Credit Facility)

 

 

ACKNOWLEDGED AND AGREED TO BY IDOT GUARANTORS

	
   

  	
   

  
	
   

  	
  SNH FM Financing Trust, a Maryland real

  
	
   

  	
  estate
  investment trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Richard A. Doyle

  	
   

  
	
   

  	
  Name: 

  	
  Richard
  A. Doyle

  	
   

  
	
   

  	
  Title: 

  	
  Treasurer
  and Chief Financial Officer

  	
   

  
							

 

	
   

  	
   

  
	
   

  	
  Ellicott City Land I, LLC, a Delaware

  
	
   

  	
  limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Richard A. Doyle

  	
   

  
	
   

  	
  Name: 

  	
  Richard
  A. Doyle

  	
   

  
	
   

  	
  Title: 

  	
  Treasurer
  and Chief Financial Officer

  	
   

  
							

 

[Signatures continue on following page]

 

S-2

 

Amendment No. 1 to Master Credit Facility
Agreement

(Senior Housing Properties Trust Credit Facility)

 

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  Citibank, N.A., a national banking
  association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Kathy Millhouse

  	
   

  
	
   

  	
  Name: 

  	
  Kathy
  Millhouse

  	
   

  
	
   

  	
  Title: 

  	
  Vice
  President

  	
   

  
							

 

S-3

 

Amendment No. 1 to Master Credit Facility
Agreement

(Senior Housing Properties Trust Credit Facility)

 

 

	
   

  	
   

  
	
   

  	
  FANNIE MAE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/
  Michael W. Dick

  	
   

  
	
   

  	
  Name: 

  	
  Michael
  W. Dick

  	
   

  
	
   

  	
  Title: 

  	
  Assistant
  Vice President

  	
   

  
							

 

S-4

 

Amendment No. 1 to Master Credit Facility
Agreement

(Senior Housing Properties Trust Credit Facility)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]