Document:

Guaranty

 Exhibit 10(r) 
  
 GUARANTY 
  
 THIS GUARANTY is made and entered into as of the 1st day of February, 2005 by SAUL CENTERS, INC., a Maryland corporation, having an address
at 7501 Wisconsin Avenue, Suite 1500, Bethesda, Maryland 20814 (“Guarantor”), in favor of U.S. BANK NATIONAL ASSOCIATION, a national banking association, whose address is 800 Nicollet Mall, BC-MN-H03A, Minneapolis, Minnesota
55402-7020, Attention: Real Estate Banking Group, Division Head (“Agent”) as administrative agent and sole lead arranger for itself and for the other financial institutions (collectively, the “Lenders”) which are or
may become parties to the Credit Agreement (as herein defined). 
  
 WITNESSETH THAT: 
  
 WHEREAS, the Lenders have
agreed upon certain conditions to make a revolving loan to SAUL HOLDINGS LIMITED PARTNERSHIP, a Maryland limited partnership (“Borrower”), in the aggregate principal amount of up to One Hundred Fifty Million and 00/100ths
Dollars ($150,000,000.00) (“Loan”), as such amount may be increased from time to time, pursuant to that certain Revolving Credit Agreement of even date herewith between Agent, Lenders and Borrower (as amended from time to time, the
“Credit Agreement”), which Loan shall be evidenced by one or more Unsecured Revolving Promissory Notes of even date herewith (whether one or more, as modified, amended, restated or replaced from time to time, the
“Note”) in the aggregate face amount of $150,000,000.00 (as may be increased pursuant to the Credit Agreement); and 
  
 WHEREAS, Borrower has on this date executed and delivered to Agent the Note, the Credit Agreement, and certain other Loan Documents more
particularly defined in the Credit Agreement; 
  
 WHEREAS,
the Guarantor is the sole general partner of Borrower; and 
  
 WHEREAS, in order to induce Lenders to make the Loan, and as additional security for the Loan and for all sums advanced under the Note, the Credit Agreement, and the other Loan Documents, and for the payment and performance by
Borrower of its obligations under the Note, the Credit Agreement and the other Loan Documents, Borrower has agreed to obtain, and Guarantor has agreed to execute, deliver and perform, this Guaranty; and 
  
 WHEREAS, Lenders have refused to make the Loan to Borrower or to make
any advances under the Loan Documents unless this Guaranty is executed by Guarantor and is delivered to Agent on behalf of Lenders. 
  

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 NOW, THEREFORE, in consideration of the Lenders’ agreement to make the Loan to Borrower in
accordance with the terms of the Loan Documents, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by Guarantor, Guarantor hereby covenants and agrees with Agent and Lenders as follows:

  
 1. Guarantor, for itself, its heirs, executors,
administrators, personal representatives, legal representatives, successors and assigns, hereby primarily, unconditionally, absolutely and irrevocably, guaranties to Agent and Lenders and to their respective successors and assigns that all payments
due and payable under the Note, including, but not limited to, payments of principal, interest (including, but not limited to, interest accruing under the Note after the filing of any petition under applicable federal bankruptcy laws and any amounts
paid by Borrower to Agent or Lenders and required to be disgorged by Lenders or Agent as preferential payments under any applicable bankruptcy laws) and all other amounts owing under the Loan Documents, shall be fully and punctually paid in
accordance with the terms of the Note, as and when due, and whether or not accelerated pursuant to the terms of the Note, that Borrower shall fully and punctually pay, comply with and perform all of the obligations, terms, covenants and conditions
of the Loan Documents to be by it paid, complied with and performed, and that all warranties and representations made by Borrower in the Loan Documents and/or in connection therewith are true and correct in all material respects; and, if the
payments due and payable under the Loan Documents shall not be so paid, and/or if Borrower shall fail or refuse to so pay, comply with or perform said obligations, terms, covenants and conditions of the Loan Documents, Guarantor shall fully and
punctually so pay such payments and shall so pay, comply with and perform the obligations, terms, covenants and conditions with respect to which Borrower has failed or refused to pay, comply with or perform, whether or not the Note has been
accelerated pursuant to the terms thereof, shall pay the attorneys’ fees and court costs incurred by Agent and Lenders in enforcing or protecting, or obtaining the right to enforce or protect, whether in bankruptcy court, probate court or
otherwise, any of the rights, remedies or recourses of Agent hereunder or thereunder (prior to trial, at trial and on appeal and whether or not Agent prevails therein), and shall reimburse Agent and the Lenders for all damages suffered thereby as
the result of the incorrectness or untruthfulness of said warranties and representations, all without cost or expense to Agent and Lenders. The obligations and liabilities of Guarantor hereunder shall be primary and not secondary. In addition to all
other rights of Agent and Lenders to accelerate the indebtedness evidenced by the Note, if (a) an event of default shall occur which, pursuant to the terms of the Note, would entitle Agent to accelerate said indebtedness, but (b) there shall be
filed with respect to Borrower a petition in bankruptcy or similar relief under the United States Bankruptcy Code or any similar law, and by reason of such filing or as a result of any order of court, Agent shall be prevented from accelerating or
collecting said indebtedness, then Agent shall have the right, on behalf of Lenders, to demand from Guarantor payment in full of, and Guarantor shall pay in full, all indebtedness evidenced or secured by the Loan Documents, including all principal,
interest, costs, expenses, fees and charges, whether or not then due and payable by Borrower. This is a guaranty of payment and performance and not of collection only. 
  
 2. The Note, the Credit Agreement, and all other Loan Documents are hereby made a part of this Guaranty by reference thereto
with the same force and effect as if fully set forth herein. Guarantor hereby acknowledges having received a true, correct and complete copy of each of the Loan Documents. 
  
 3. Guarantor hereby agrees that Agent may take other guaranties, collateral or security to further secure the Loan
Documents, or any of them, and consents that any of the obligations, terms, covenants and conditions contained in the Loan Documents may be 

  

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renewed, altered, extended, changed, modified or released at the written direction of or with the written consent of Agent on behalf of Lenders, without in
any manner affecting this Guaranty or releasing Guarantor herefrom, and without the further consent of or notice to Guarantor, and Guarantor shall continue to be liable hereunder to pay and perform pursuant hereto and to the Loan Documents, as so
renewed, altered, extended, changed, modified or released, and notwithstanding the taking of such other guaranties, collateral or security. This Guaranty is additional and supplemental to any and all other guaranties heretofore or hereafter executed
by Guarantor, or by any other person, party or entity for the benefit of Agent, Borrower or any other person, party or entity, in connection with the Loan, or any property, or relating to the Loan Documents or any other loan documents, and shall not
supersede or be superseded by any other document or guaranty executed by Guarantor, or by any other person, party or entity, for any purpose. Guarantor hereby agrees that (a) all or any part of any collateral may be released from, and any new or
additional security may be added to, the lien and security interest of the Loan Documents; (b) Borrower, Guarantor and any additional parties who are or may become liable for payment or performance of the Loan Documents may hereafter be released
from its or their liability hereunder and/or under the Loan Documents; and (c) Agent may perfect or fail to perfect, or to continue the perfection of, any lien or security interest; and Agent may take, or delay in taking, or refuse to take, any and
all action with reference to the Loan Documents (regardless of whether the same might vary the risk or alter the rights, remedies or recourses of Guarantor), including specifically the settlement or compromise of any amount allegedly due thereunder,
all without notice to, consideration to or the consent of Guarantor, and without in any way releasing, diminishing or affecting the absolute nature of Guarantor’s obligations and liabilities hereunder. 
  
 4. Guarantor hereby waives any and all legal requirements that Agent, on
behalf of Lenders, or their respective successors or assigns, must institute any action or proceeding at law or in equity or exhaust their rights, remedies and/or recourses against Borrower or anyone else with respect to the Loan Documents, as a
condition precedent to bringing an action against Guarantor under this Guaranty. Guarantor agrees that Agent, on behalf of Lenders, may simultaneously maintain an action upon this Guaranty and an action or proceeding upon the Note or the Credit
Agreement, and/or to foreclose or otherwise enforce the other Loan Documents. All remedies afforded to Agent and Lenders, and their successors or assigns, by reason of this Guaranty and the Loan Documents, are separate and cumulative remedies, and
no one of such remedies, whether exercised by Agent, Lenders, or their respective successors or assigns, or not, shall be deemed an exclusion of any of the other remedies available to Agent, Lenders or their respective successors or assigns, at law,
in equity, by statute, under the Loan Documents, hereunder or otherwise, and shall in no way limit or prejudice any such other remedies which Agent, Lenders, or their respective successors or assigns, may have. Guarantor further waives any
requirement that Agent demand or seek payment or performance by Borrower or by any other party of the amounts owing or the covenants to be performed under the Loan Documents, as a condition precedent to bringing any action against Guarantor under
this Guaranty, it being agreed that a failure to pay, comply with or perform the obligations, terms, covenants and conditions herein guarantied, or any breach of a representation or warranty herein guarantied, shall, without further act, make
Guarantor liable as herein set forth. All payments made by Borrower, by Guarantor or by any other party, and/or the proceeds of any security, may be applied by Agent upon such items of indebtedness owed to Agent pursuant to the Loan Documents in
such order as Agent may determine, whether the same be due or not. 
  

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 5. Guarantor specifically agrees that, in the event of the foreclosure of any collateral for the Loan or
sale of any property, and in the event the proceeds thereof are not sufficient to pay in full the indebtedness secured thereby, Guarantor shall be and hereby is expressly made liable to Agent for the amount of the deficiency, notwithstanding any
provision of any law or contract which may prevent Agent from enforcing such deficiency against, or collecting such deficiency from, Borrower, or its successors or assigns, or which provides that the indebtedness has been satisfied as the result of
the foreclosure thereof. 
  
 6. Until the indebtedness evidenced
and secured by the Loan Documents is indefeasibly paid in full, and until each and all of the terms, covenants and conditions of the Loan Documents and of this Guaranty are fully performed, Guarantor shall not be released by any act, omission or
thing which might, but for this provision of this Guaranty, be deemed a legal or equitable discharge of a surety or guarantor, or by reason of any waiver, extension, modification, forbearance or delay by Agent, Lenders, or their respective
successors or assigns, or its or their failure to proceed promptly or otherwise, or by reason of any further obligation or agreement between Borrower and/or the then owner of any collateral for the Loan and Lenders, relating to the payment of any
sum evidenced thereby or to any of the other terms, covenants and conditions contained therein or in the other Loan Documents, and Guarantor hereby expressly waives and surrenders any defense to liability hereunder based upon the foregoing acts,
omissions, things, waivers, extensions, modifications, forbearances, delays, obligations, agreements, or any of them. Guarantor also waives any defense arising by virtue of any disability, insolvency, bankruptcy, lack of authority or power, death,
insanity, incompetence, liquidation or dissolution of Borrower, Guarantor or any other surety, co–maker, endorser or guarantor, even though rendering the Note or any of the other Loan Documents invalid, void, unenforceable or otherwise
uncollectible, it being agreed that Guarantor shall remain liable hereunder, regardless of whether Borrower, any other guarantor or any other person, firm or entity be found not to be liable thereunder or hereunder for any reason, and regardless of
any claim which Guarantor might otherwise have against Agent and Lenders by virtue of Agent’s or any Lender’s invocation of or failure to invoke any right, remedy or recourse given to it hereunder or under the Loan Documents. No change in
the ownership of Borrower or Guarantor shall affect or change the terms of this Guaranty or in any way change or reduce the liability of Guarantor hereunder. 
  
 7. Guarantor hereby waives diligence in collection, presentment for payment, demand, protest, notice of nonpayment, notice of protest and of dishonor,
notice of extension of time for payment, notice of acceptance hereof, notice of future advances, notice of default, notice of acceleration, notice of intent to accelerate, notice of intent to proceed against any collateral and all other notices now
or hereafter provided for by law. 
  
 8. In the event that
Guarantor shall advance or become obligated to pay any sums hereunder, or in the event that for any reason Borrower and/or any subsequent owner of collateral for the Loan is now or shall hereafter become indebted or obligated to Guarantor, the
amount of such sums and of such indebtedness and obligation and interest thereon shall at all times be subordinate as to lien, time of payment and in all other 
  

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respects to the amounts owing to Lenders under the Loan Documents. Guarantor shall have no right to participate in any way in the Note, in the Credit
Agreement, in the other Loan Documents or in the right, title or interest of Agent in any collateral for the Loan, or to receive payments from Borrower upon any such indebtedness or obligation, notwithstanding any payments made by Guarantor
hereunder, all rights of reimbursement, indemnification, subrogation and participation being hereby expressly subordinated, unless and until the entire indebtedness owing to Lenders under the Loan Documents has been paid in full and all other
obligations of Borrower under the Loan Documents have been fully performed, discharged and satisfied. Guarantor agrees that, following any default or event of default under the Loan Documents, and until the indebtedness evidenced and secured by the
Loan Documents shall have been paid in full, Guarantor will not accept any payment or satisfaction of any kind of any indebtedness or obligation of Borrower to Guarantor, and Guarantor hereby assigns to Agent on behalf of the Lenders all right,
title and interest in such indebtedness and obligations, including the right to file proof of claim and to vote thereon in connection with any bankruptcy, insolvency or reorganization proceeding, and including the right to vote on any plan of
arrangement or reorganization. Further, Guarantor agrees that following any default or event of default under the Loan Documents, and until the indebtedness evidenced and secured thereby shall have been paid in full, (a) Guarantor shall not accept
payment from any other guarantor or surety by way of contribution on account of any payment made hereunder by Guarantor to Agent, (b) Guarantor will not take any action to exercise or enforce any rights to such contribution, and (c), if Guarantor
should receive any payment, satisfaction or security for any indebtedness or obligation of Borrower to Guarantor or for any contribution by any other guarantor or surety for payment made hereunder by Guarantor to Agent, the same shall be delivered
to Agent on behalf of Lenders in the form received, endorsed or assigned as may be appropriate, for application on account of or as security for the indebtedness evidenced and secured by the Loan Documents, and, until so delivered, shall be held in
trust for Agent as security for said indebtedness. 
  
 9.
Guarantor hereby warrants and represents unto Agent and Lenders that (a) any and all balance sheets, net worth statements and other financial statements and data which have heretofore been given to Agent with respect to Guarantor more particularly
described on Exhibit A hereto fairly and accurately represent the financial condition of Guarantor as of the dates thereof, and, since the dates thereof, there has been no material adverse change in the financial condition of Guarantor; (b)
except as may be set out on Exhibit B attached hereto, (i) there are no legal proceedings, material claims or demands pending against, or to the knowledge of Guarantor threatened in writing against, Guarantor or any of Guarantor’s
assets, in which an adverse result would have a material adverse effect upon Guarantor, (ii) Guarantor is not in breach or default of any obligation to pay money, and (iii) no event (including specifically Guarantor’s execution and delivery of
this Guaranty) has occurred which, with or without the lapse of time or action by a third party, constitutes or could constitute a material breach or material default under any document evidencing or securing any obligation to pay money or under any
other contract or agreement to which Guarantor is a party; (c) Guarantor has knowledge of Borrower’s financial condition and affairs and of all other circumstances which bear upon the risk assumed by Guarantor under this Guaranty; (d) Guarantor
is duly organized, validly existing and in good standing under the laws of its jurisdiction or incorporation or organization and is duly qualified and in good standing in every other jurisdiction where it 

  

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is doing business except where the failure to so qualify would not have a material adverse effect and has all power, authority, permits, consents,
authorizations and licenses necessary to carry on its business and to execute, deliver and perform this Guaranty; and this Guaranty has been duly authorized, executed and delivered by Guarantor so as to constitute this Guaranty the valid and binding
obligation of Guarantor, enforceable in accordance with its terms; (e) Guarantor shall at all times maintain its existence and shall cause its shares to be listed and admitted to trading on the New York Stock Exchange; (f) Guarantor meets the
requirements of the United States Internal Revenue Code of 1986, as amended, and any applicable regulations thereunder and rulings with respect thereto, for qualification as a real estate investment trust; (g) Guarantor shall not, without the prior
written consent of Agent, amend, supplement or modify the terms of its Articles of Incorporation or other charter or enabling documents which would impair Guarantor’s ability to perform its obligations hereunder; and (h) Guarantor shall
maintain its qualification to transact business in its state of organization, in each state in which failure so to qualify would permanently preclude Guarantor from enforcing its rights with respect to any material asset or would expose Guarantor to
any material liability. (Guarantor hereby agrees to continue to keep itself informed thereof while this Guaranty is in force and agrees that neither Agent nor Lenders have or will have any obligation to investigate the financial condition or affairs
of Borrower for the benefit of Guarantor or to advise Guarantor of any fact respecting, or any change in, the financial condition or affairs of Borrower or any other circumstances which may bear upon Guarantor’s risk hereunder which come to the
knowledge of Agent or Lenders, their respective directors, officers, employees or agents at any time, whether or not Agent or Lenders know, believe or have reason to know or to believe that any such fact or change is unknown to Guarantor or might or
does materially increase the risk of Guarantor hereunder.) Guarantor shall not transfer any of its assets for the purpose of preventing Agent from satisfying any judgment rendered under this Guaranty therefrom, either before or after the entry of
any such judgment. Guarantor shall promptly deliver to Borrower all financial statements of Guarantor which Borrower is required by the Credit Agreement to deliver to Agent on behalf of Lenders in time for Borrower to deliver the same to Agent on or
before the date provided for the delivery thereof under the Credit Agreement. 
  
 10. Any notice, demand or request by Agent or its successors or assigns to Guarantor shall be in writing and shall be deemed to have been duly given or made if mailed by registered or certified mail, return receipt
requested, to Guarantor at the address set forth for it in the caption hereof, or at such other address as Guarantor may notify Agent in writing, at least ten (10) days prior to the effective date of any such change of address, by registered or
certified mail, return receipt requested, at the address set forth in the caption hereof, or at such other address of which Agent shall have so notified Guarantor, at least ten (10) days prior to the effective date of any such change of address.
Notice so mailed shall be deemed given and made upon deposit in the United States mail. 
  
 11. This Guaranty, for all purposes, shall be interpreted and construed in accordance with the laws of the State of Maryland, in which state it is to be performed. The unenforceability or invalidity of any provision
or provisions of this Guaranty as to any persons or circumstance shall not render that provision nor any other provision or provisions herein contained unenforceable or invalid as to any other persons or circumstance, and all provisions hereof, in
all other respects, shall remain valid and enforceable. 
  

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 12. Agent and Lenders may divulge all information received by them from Guarantor or any other source,
including, but not limited to, information relating to the Loan, to Borrower, to any collateral for the Loan and to Guarantor, to any Lender or prospective lender or participant, and Guarantor shall cooperate with Agent and Lenders in satisfying the
requirements of any such other lender for consummating such a purchase or participation. 
  
 13. Notwithstanding any other provision or provisions herein contained, no provision of this Guaranty shall require or permit the collection from Guarantor of interest in excess of the maximum rate or amount, if any,
which Guarantor may be required or permitted to pay by any applicable law. 
  
 14. Guarantor hereby agrees that, at the option of Agent, any action to enforce this Guaranty may be brought and venued in the courts of the State of Maryland, and Guarantor hereby consents thereto and submits itself
to the jurisdiction of said courts with respect to any such action. Guarantor hereby waives any right which Guarantor may have to a trial by jury in any action relating to this Guaranty. 
  
 15. This instrument shall inure to the benefit of Agent, Lenders and their successors and assigns, and shall bind Guarantor
and Guarantor’s heirs, executors, administrators, personal representatives, legal representatives, successors and assigns. The obligations of Guarantor under this Guaranty shall be enforceable in all events against Guarantor, its successors and
assigns, as a claim against its estate or otherwise against the representatives of its estate, its heirs at law, the devisees and beneficiaries of its total estate and each of them. The use of any gender herein shall include all other genders.

  
 16. Notwithstanding anything herein contained, this Guaranty
shall become null and void in the event that any person or entity shall pay, in full, the amount of principal, interest and all other sums and payments which may be then owing under the Loan Documents in accordance with the terms thereof and shall
comply with and perform all of the other obligations of Borrower under the Loan Documents. 
  
 17. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement. 
  

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 IN WITNESS WHEREOF, Guarantor has duly executed this Guaranty under seal as of the day and year first
above written, intending to be legally bound. 
  

							
	 	 	 	 	 GUARANTOR:

			
	 WITNESS/ATTEST:
	 	 	 	 SAUL CENTERS, INC., a Maryland corporation

				
	 /s/ Scott Schneider

	 	 	 	 By:
	 	 /s/ B. Francis Saul II

	 	 	 	 	 	 	 B. Francis Saul II

	 	 	 	 	 	 	 Chairman

	 STATE OF MARYLAND                  )
	 	 	 	 	 	 
	 COUNTY OF MONTGOMERY        )
	 	 	 	 ss:
	 	 

  
 I, a Notary Public in
and for the aforesaid jurisdiction, do hereby certify that B. F. Saul II, who is personally well known to me as, or satisfactorily proven to be, the person named as Chairman of Saul Centers, Inc. in the foregoing Guaranty, bearing date as of the 1st
day of February, 2005, personally appeared before me in the said jurisdiction, and acknowledged the same to be the act and deed of Saul Centers, Inc., party thereto, and delivered the same as such. 
  
 GIVEN under my hand and official seal this 1st day of February, 2005.

  

	
	 /s/ Linda R. Geimer

	 Notary Public

  
 My Commission Expires: July 14,
2008 
  

 - 8 -Form of Stock Option Award Agreement

 EXHIBIT 10.1 
  
 CORINTHIAN COLLEGES, INC. 
 2004 NEW-HIRE AWARD PLAN 
 STOCK OPTION AGREEMENT 
  
 THIS STOCK OPTION AGREEMENT (this “Option Agreement”)
by and between CORINTHIAN COLLEGES, INC., a Delaware corporation (the “Corporation”), and
                             (the “Participant”) evidences the stock option (the
“Option”) granted by the Corporation to the Participant as to the number of shares of the Corporation’s Common Stock first set forth below. 
  

							
	 Number of Shares of Common Stock:1
	  	                                      
            	  	Award Date:	  	                                      
         
	 			 
	 Exercise Price per Share:1
	  	$            	  	Expiration Date:1, 2	  	                                      
            
	 
	Vesting1,2  The Option shall become vested as to 25% of the total number of shares of Common Stock subject to the Option on
the first anniversary of the Award Date. The remaining 75% of the total number of shares of Common Stock subject to the Option shall vest in three substantially equal installments on each of second, third and fourth anniversaries of the Award
Date.

  
 The Option is granted
under the Corinthian Colleges, Inc. 2004 New-Hire Award Plan (the “Plan”) and subject to the Terms and Conditions of Management Stock Option (the “Terms”) attached to this Option Agreement (incorporated herein by
this reference) and to the Plan. The Option was approved by the Corporation’s Compensation Committee (the “Committee”) as an inducement material to the Participant’s entering into employment with the Corporation or one of
its Subsidiaries. The Option has been granted to the Participant in addition to, and not in lieu of, any other form of compensation otherwise payable or to be paid to the Participant. Capitalized terms are defined in the Plan if not defined herein.
The parties agree to the terms of the Option set forth herein. The Participant acknowledges receipt of a copy of the Terms and the Plan. 
  

					
	“PARTICIPANT”	    	CORINTHIAN COLLEGES, INC.,
a Delaware corporation  

	 	    	By:	  	 
			
	Signature	    	Its:	  	 
			
	 	    	 	  	 
	Print Name	    	 	  	 

  
  
  
  

	1	Subject to adjustment under Section 6.3 of the Plan. 

	2	Subject to earlier termination as provided in Section 4 of the Terms. 

 CORINTHIAN COLLEGES, INC. 
 2004 NEW-HIRE AWARD PLAN 
 TERMS AND CONDITIONS OF MANAGEMENT STOCK OPTION

  
 1. Vesting; Limits on Exercise. 
  
 As set forth on the cover page of this Option Agreement, the Option shall
vest and become exercisable in percentage installments of the aggregate number of shares of Common Stock subject to the Option. The Option may be exercised only to the extent the Option is vested and exercisable. 
  

	 	•	 	Cumulative Exercisability. To the extent that the Option is vested and exercisable, the Participant has the right to exercise the Option (to the extent not previously
exercised), and such right shall continue until the expiration or earlier termination of the Option. 

  

	 	•	 	No Fractional Shares. Fractional share interests shall be disregarded, but may be cumulated. 

  

	 	•	 	Minimum Exercise. No fewer than 1001
shares of Common Stock may be purchased at any one time, unless the number purchased is the total number at the time exercisable under the Option. 

  

	 	•	 	Incentive Stock Option Status. The Option is not and shall not be deemed to be an incentive stock option within the meaning of Section 422 of the Code.

  
 2. Continuance of Employment/Service Required; No
Employment/Service Commitment. 
  
 Except as expressly
provided in Section 4 below, the vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable installment of the Option and the rights and benefits under this Option
Agreement. Employment or service for only a portion of the vesting period, even if a substantial portion, will not entitle the Participant to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a
termination of employment or services as provided in Section 4 below or under the Plan. 
  
 Nothing contained in this Option Agreement or the Plan constitutes an employment or service commitment by the Corporation or any of its Subsidiaries, affects the Participant’s status as an employee at will who is
subject to termination without cause, confers upon the Participant any right to remain employed by or in service to the Corporation or any Subsidiary, interferes in any way with the right of the Corporation or any Subsidiary at any time to terminate
such employment or service, or affects the right of the Corporation or any Subsidiary to increase or decrease the Participant’s other compensation. 
  
 3. Method of Exercise of Option. 
  
 The Option shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Committee may require pursuant to such
administrative exercise procedures as the Committee may implement from time to time) of: 

	 	•	 	a written notice stating the number of shares of Common Stock to be purchased pursuant to the Option or by the completion of such other administrative exercise procedures as the
Committee may require from time to time, 

  

	 	•	 	payment in full for the Exercise Price of the shares to be purchased in cash, check or by electronic funds transfer to the Corporation, or (subject to compliance with all applicable
laws, rules, regulations and listing requirements) in shares of Common Stock already owned by the Participant, valued at their Fair Market Value on the exercise date, provided, however, that any shares initially acquired upon exercise
of a stock option or otherwise from the Corporation must have been owned by the Participant for at least six (6) months before the date of such exercise; 

  

	 	•	 	any written statements or agreements required pursuant to Section 6.4 of the Plan; and 

  

	 	•	 	satisfaction of the tax withholding provisions of Section 6.5 of the Plan. 

  
 The Committee also may, but is not required to, authorize a non-cash payment alternative by notice and third party payment in such manner as may be authorized by the
Committee. 
  
 4. Early Termination of Option; Change in Control Event.

  
 4.1 General. The Option, to the extent not
previously exercised, and all other rights hereunder, whether vested and exercisable or not, shall terminate and become null and void prior to the Expiration Date in the event of: 
  

	 	•	 	the termination of the Participant’s employment or services as provided in Section 6.2 of the Plan, or 

  

	 	•	 	the termination of the Option pursuant to Section 6.3 of the Plan. 

  
 4.2 Possible Acceleration upon Certain Terminations. Notwithstanding any other provision of this Option Agreement or of the Plan, if a Change in
Control Event (as defined in the Plan) occurs and the Option does not accelerate and become fully vested in connection with such event as contemplated by Section 6.3.2 of the Plan, the Option shall automatically accelerate and become fully vested
upon a termination of the Participant’s employment or services with the Corporation and its Subsidiaries if such termination of employment or services (a) is by the Corporation or a Subsidiary for any reason other than for Cause (as defined
below) or by the Participant for Good Reason (as defined below), and (b) occurs in anticipation of (but in no event more than three months prior to) the date of the Change in Control Event or within two years following the date of the Change in
Control Event. (In the event that the Participant’s employment occurs prior to the date of the Change in Control Event and it is subsequently determined that a Change in Control Event requires an acceleration of vesting pursuant to the
preceding sentence, the Option shall be deemed to have been fully vested on the date that the Participant’s employment terminated.) The following definitions shall apply solely for purposes of this Section 4.2: 
  

	 	•	 	Cause. “Cause” means that the Participant has been convicted of a felony (other than drunk driving), or has engaged in gross misconduct materially and demonstrably
injurious to the Corporation or a Subsidiary. However, no act or failure to act, on the Participant’s part shall be considered “willful” unless done, or omitted to be done, by the Participant not in good faith and without reasonable
belief that his action or omission was in the best interest of the Corporation and its Subsidiaries. 

	 	•	 	Good Reason. “Good Reason” means that, without the Participant’s express written consent, the occurrence of any one or more of the following: (a) the
assignment of the Participant to duties materially inconsistent with the Participant’s authorities, duties, responsibilities, and status (including titles and reporting requirements) as an employee of the Corporation or one of its Subsidiaries,
or a material reduction or alteration in the nature or status of the Participant’s authorities, duties, or responsibilities, other than an insubstantial and inadvertent act that is remedied by the Company promptly after receipt of notice
thereof given by the Participant; (b) a reduction by the Corporation or a Subsidiary in the Participant’s base salary; (c) a material reduction in the Participant’s level of participation in any of the Company’s short and/or long-term
incentive compensation plans, employee benefit or retirement plans, or policies, practices, or arrangements in which the Participant participates (provided, however, that reductions in the levels of participation in any such plan, policy, practice
or arrangement shall not be deemed to be “Good Reason” if the Participant’s reduced level of participation in each such plan, policy, practice or arrangement remains substantially consistent with the average level of participation of
other employees who have positions commensurate with the Participant’s position); or (d) the relocation of the Participant’s offices, as assigned to him by the Company, by more than fifty (50) miles. 

  
 5. Non-Transferability. 
  
 The Option and any other rights of the Participant under this Option
Agreement or the Plan are nontransferable and exercisable only by the Participant, except as set forth in Section 1.8 of the Plan. 
  
 6. Notices. 
  
 Any notice to be given under the terms of this Option Agreement shall be in writing and addressed to the Corporation at its principal office to the
attention of the Secretary, and to the Participant at the address given beneath the Participant’s signature hereto, or at such other address as either party may hereafter designate in writing to the other. Any such notice shall be delivered in
person or shall be enclosed in a properly sealed envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United
States Government. Any such notice shall be given only when received, but if the Participant is no longer an Eligible Employee, shall be deemed to have been duly given as of the date mailed in accordance with the foregoing provisions of this Section
6. 
  
 7. Plan. 
  
 The Option and all rights of the Participant under this Option Agreement are
subject to, and the Participant agrees to be bound by, all of the terms and conditions of the Plan, incorporated herein by this reference. In the event of a conflict or inconsistency between the terms and conditions of this Option Agreement and of
the Plan, the terms and conditions of the Plan shall govern. The Participant acknowledges receipt of a copy of the Plan and agrees to be bound by the terms thereof and of this Option Agreement. The Participant acknowledges reading and understanding
the Plan and this Option Agreement. Unless otherwise expressly provided in other sections of this Option Agreement, provisions of the Plan that confer discretionary authority on the Board or the Committee do not and shall not be deemed to create any
rights in the Participant unless such rights are expressly set forth herein or are otherwise in 

 
the sole discretion of the Board or the Committee so conferred by appropriate action of the Board or the Committee under the Plan after the date
hereof. 
  
 8. Entire Agreement. 
  
 This Option Agreement (including these Terms) and the Plan together
constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Option Agreement may be amended pursuant to Section 6.6 of the
Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Participant hereunder,
but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof. 
  
 9. Governing Law; Limited Rights. 
  
 9.1. Delaware Law. This Option Agreement shall be governed by and construed and enforced in accordance with the laws of the State of
Delaware without regard to conflict of law principles thereunder. 
  
 9.2. Limited Rights. The Participant has no rights as a stockholder of the Corporation with respect to the Option as set forth in Section 6.7 of the Plan. 
  
 10. Effect of this Agreement. 
  
 Subject to the Corporation’s right to terminate the Option pursuant to Section 6.3 of the Plan, this Option Agreement shall be assumed by, be binding
upon and inure to the benefit of any successor or successors to the Corporation. 
  
 11. Counterparts. 
  
 This Option
Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 12. Section Headings. 
  
 The section headings of this Option Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

  
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