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alny-ex101_348.htm

EXHIBIT 10.1

ALNYLAM PHARMACEUTICALS, INC. 

AMENDED AND RESTATED 2004 EMPLOYEE STOCK PURCHASE PLAN, AS AMENDED

 

The purpose of this Amended and Restated Employee Stock Purchase Plan, as amended (the “Plan”) is to provide eligible employees of Alnylam Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and certain of its subsidiaries with opportunities to purchase shares of the Company’s common stock, $0.01 par value (the “Common Stock”). This Plan includes two components: a Code Section 423 Component (the “423 Component”) and a Non-Code Section 423 Component (the “Non-423 Component”). It is the intention of the Company to have the 423 Component qualify as an “employee stock purchase plan” as defined in Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations promulgated thereunder, and shall be interpreted consistent therewith. The provisions of the 423 Component, accordingly, shall be construed so as to extend and limit participation in a uniform and non-discriminatory basis consistent with the requirements of Section 423 of the Code. In addition, this Plan authorizes the grant of share purchase rights under the Non-423 Component that do not qualify as an “employee stock purchase plan” under Section 423 of the Code. The share purchase rights granted under the Non-423 Component are granted pursuant to rules, procedures or sub-plans adopted by the Company’s Board of Directors (the “Board”) or by a Committee appointed by the Board (the “Committee”) designed to achieve tax, securities laws or other objectives for eligible employees and the Company. Except as otherwise provided herein, the Non-423 Component will be operated and administered in the same manner as the 423 Component. 

 

An aggregate of 1,215,789 shares of Common Stock have been approved for this Plan. This aggregate limit will apply to purchases of Common Stock under either the 423 Component or the Non-423 Component. 

 

1.Administration. The Plan will be administered by the Board or by the Committee. The Board or the Committee has authority to make rules and regulations for the administration of the Plan and its interpretation and decisions with regard thereto shall be final and conclusive. The Board and the Committee will have full and discretionary authority to construe, interpret and apply the terms of the Plan, to adjudicate all disputed claims made under the Plan, to designate separate Plan Periods (as defined below), to designate subsidiaries as participating in the Plan, to determine eligibility, including which subsidiaries shall be Designated Subsidiaries (as defined below) and whether the employees of the Designated Subsidiary shall participate in the 423 Component or the Non-423 Component. Notwithstanding any provision in this Plan to the contrary, the Board or Committee may adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of local laws and procedures for jurisdictions outside of the United States. Without limiting the generality of the foregoing, the Board or the Committee specifically is authorized to adopt rules, procedures and sub-plans, which, for purposes of the Non-423 Component, may be outside the scope of Section 423 of the Code, regarding, without limitation, eligibility to participate, the definition of Compensation (defined in Section 4), handling of payroll deductions, making of contributions to the Plan (including, in forms other than payroll deductions), establishment of bank or trust accounts to hold payroll deductions, payment of interest, conversion of local currency, obligations to pay payroll tax, withholding procedures and handling of Common Stock issuances, which may vary according to local requirements. 

 

2.Eligibility. All employees of the Company and all employees of any subsidiary of the Company (as defined in Section 424(f) of the Code) designated by the Board or the Committee from time to time (a “Designated Subsidiary”), are eligible to participate in any one or more of the offerings of Purchase Rights (as defined in Section 9) to purchase Common Stock under the Plan provided that: 

 

(a)they are customarily employed by the Company or a Designated Subsidiary for more than twenty (20) hours a week and for more than five (5) months in a calendar year if they are participating in the 423 Component; 

 

(b)they have been employed by the Company or a Designated Subsidiary for at least thirty (30) days prior to enrolling in the Plan; 

(c)they are employees of the Company or a Designated Subsidiary on the first day of the applicable Plan Period; and 

(d)for purposes of the 423 Component, in the case of an executive officer of the Company or a Designated Subsidiary, they are not considered a “highly compensated individual” within the meaning of Section 414(q) of the Code). 

 No employee may be granted a Purchase Right hereunder if such employee, immediately after the Purchase Right is granted, owns 5% or more of the total combined voting power or value of the stock of the Company or any subsidiary. For purposes of the preceding sentence, the attribution rules of Section 424(d) of the Code shall apply in determining the stock ownership of an employee, and all stock which the employee has a contractual right to purchase shall be treated as stock owned by the employee. 

3.Offerings. The Company will make one or more offerings (“Offerings”) to employees to purchase Common Stock under this Plan. Offerings will begin each November 1 or the first business day thereafter (the “Offering Commencement Dates”). Each Offering Commencement Date will begin a twelve-month period (a “Plan Period”) during which payroll deductions will be made and held for the purchase of Common Stock at the end of the Plan Period. The Committee may, at its discretion, decide that an employee may contribute to the Plan by means other than payroll deductions, provided that contributions other than payroll deductions will be permissible only for employees participating in the Non-423 Component. The Board or the Committee also may, at its discretion, choose a different Plan Period of twelve (12) months or less for subsequent Offerings. Notwithstanding any provision in this Plan to the contrary, the first Plan Period shall begin on the later of November 1, 2004 or the first date that the Common Stock is publicly traded following the Company’s IPO (the “IPO Date”), and shall end on October 31, 2005. 

4.Participation. An employee eligible on the Offering Commencement Date of any Offering may participate in such Offering by completing (electronically or otherwise) and forwarding a payroll deduction authorization form or other direct contribution form to the employee’s appropriate payroll office at least five (5) business days prior to the applicable Offering Commencement Date (or other period of time determined by the Company).  The payroll deduction authorization form or other direct contribution form will designate the percentage of Compensation withheld or contributed during the Plan Period. Unless an employee files a new form or withdraws from the Plan, his deductions or contributions and purchases will continue at the same rate for future Offerings under the Plan as long as the Plan remains in effect. For the 423 Component, the term “Compensation” means the amount of money reportable on the employee’s Wage and Tax Statement (the "Form W-2"). For the 423 Component, Compensation shall exclude overtime, shift premium, incentive or bonus awards, allowances and reimbursements for expenses such as relocation allowances for travel expenses, income or gains on the exercise of Company stock options or stock appreciation rights, amounts imputed in respect of benefit programs and similar items, whether or not shown on the employee’s Form W-2, but including, in the case of salespersons, sales commissions to the extent determined by the Company. 

 

5.Deductions or Contributions. The Company will maintain payroll deduction or contribution accounts for all participating employees. With respect to any Offering made under this Plan, an employee may authorize a payroll deduction or contribution in any dollar amount up to a maximum of 15% of the Compensation he or she receives during the Plan Period or such shorter period during which deductions or contributions are made. The minimum payroll deduction is such percentage of Compensation as may be established from time to time by the Company. 

6.Deduction or Contribution Changes. An employee may decrease or discontinue his payroll deductions or contributions once during any Plan Period, by filing a new payroll deduction authorization form or other direct contribution form (electronically or otherwise). However, an employee may not increase his payroll deductions or contributions during a Plan Period. If an employee elects to discontinue his payroll deductions or contributions during a Plan Period but does not elect to withdraw his funds pursuant to Section 8 hereof, funds deducted or contributed prior to his election to discontinue will be applied to the purchase of Common Stock on the Purchase Date (as defined below). 

 

7.Interest. Interest will not be paid on any employee accounts unless otherwise required by local law. 

 

8.Withdrawal of Funds. An employee may at any time prior to the close of business on the last business day in a Plan Period (or other date set by the Company) and for any reason withdraw the balance accumulated in the employee’s account and thereby withdraw from participation in an Offering. Partial withdrawals are not permitted. The employee may not begin participation again during the remainder of the Plan Period. The employee may participate in any subsequent Offering in accordance with terms and conditions established by the Company. 

 

9.Purchase of Shares. On the Offering Commencement Date of each Plan Period, the Company will grant to each eligible employee who is then a participant in the Plan a purchase right (“Purchase Right”) to purchase on the last business day of such Plan Period (the “Purchase Date”), at the Purchase Price (as defined below) hereinafter provided for, the largest number of whole shares of Common Stock of the Company as does not exceed the number of shares determined by dividing $25,000 by the closing price (as defined below) on the Offering Commencement Date of such Plan Period. 

Notwithstanding the above, no employee may be granted a Purchase Right which permits his rights to purchase Common Stock under this Plan and any other employee stock purchase plan (as defined in Section 423(b) of the Code) of the Company and its subsidiaries, to accrue at a rate which exceeds $25,000 of the fair market value of such Common Stock (determined at the Offering Commencement Date of the Plan Period) for each calendar year in which the Purchase Right is outstanding at any time. 

The purchase price for each share of Common Stock purchased will be 85% of the closing price of the Common Stock on (i) the Offering Commencement Date of such Plan Period or (ii) the Purchase Date, whichever closing price shall be less (the “Purchase Price”). Such closing price shall be (a) the closing price on any national securities exchange on which the Common Stock is listed, (b) the closing price of the Common Stock on the NASDAQ Stock Market or (c) the average of the closing bid and asked prices in the over-the-counter-market, whichever is applicable, as published in The Wall Street Journal; provided that, with respect to the first Plan Period, if the first day of such Plan Period is the IPO Date, the closing price of the Common Stock on the first business day of such Plan Period shall be deemed to be the initial public offering price for the Common Stock, as set forth in the final prospectus relating to the IPO. If no sales of Common Stock were made on such a day, the price of the Common Stock for purposes of clauses (a) and (b) 

above shall be the reported price for the next preceding day on which sales were made. 

Each employee who continues to be a participant in the Plan on the Purchase Date shall be deemed to have exercised his Purchase Right at the Purchase Price on such date and shall be deemed to have purchased from the Company the number of full shares of Common Stock reserved for the purpose of the Plan that his accumulated payroll deductions or contributions on such date will pay for, but not in excess of the maximum number determined in the manner set forth above. 

Any balance remaining in an employee’s payroll deduction or contribution account at the end of a Plan Period will be automatically refunded to the employee, except that any balance which is less than the Purchase Price of one share of Common Stock will be carried forward into the employee’s payroll deduction or contribution account for the following Offering, unless the employee elects not to participate in the following Offering under the Plan, in which case the balance in the employee’s account shall be refunded. 

10.Issuance of Certificates. Certificates representing shares of Common Stock purchased under the Plan may be issued only in the name of the employee, in the name of the employee and another person of legal age as joint tenants with rights of survivorship, or (in the Company’s sole discretion) in the name of a brokerage firm, bank or other nominee holder designated by the employee.  The Company may, in its sole discretion and in compliance with applicable laws, authorize the use of book entry registration of shares in lieu of issuing stock certificates. 

11.Rights on Retirement, Death or Termination of Employment. In the event of a participating employee’s termination of employment prior to the last business day of a Plan Period, no payroll deduction or contribution shall be taken from any pay or contribution due and owing to an employee and the balance in the employee’s account shall be paid to the employee or, in the event of the employee’s death, (a) to a beneficiary previously designated in a manner specified by the Company) or (b) in the absence of such a designated beneficiary, to the executor or administrator of the employee’s estate or (c) if no such executor or administrator has been appointed to the knowledge of the Company, to such other person(s) as the Company may, in its discretion, designate. If, prior to the last business day of the Plan Period, the Designated Subsidiary by which an employee is employed shall cease to be a subsidiary of the Company, or if the employee is transferred to a subsidiary of the Company that is not a Designated Subsidiary, the employee shall be deemed to have terminated employment for the purposes of this Plan. 

12.No Stockholder Rights. Neither the granting of a Purchase Right to an employee nor the payroll deductions or contributions shall constitute such employee a stockholder of the shares of Common Stock covered by a Purchase Right under this Plan until such shares have been purchased by and issued to him.

13.Rights Not Transferable. Rights under this Plan are not transferable by a participating employee other than under the laws of descent and distribution, and are exercisable during the employee’s lifetime only by the employee. 

14.Application of Funds. All funds received or held by the Company under this Plan may be combined with other corporate funds and may be used for any corporate purpose unless otherwise required by local law. 

15.Adjustment in Case of Changes Affecting Common Stock. In the event of a subdivision of outstanding shares of Common Stock, or the payment of a dividend in Common Stock, the number of shares approved for this Plan, and the share limitation set forth in Section 9, shall be increased proportionately, and 

such other adjustment shall be made as may be deemed equitable by the Board or the Committee. In the event of any other change affecting the Common Stock, such adjustment shall be made as may be deemed equitable by the Board or the Committee to give proper effect to such event. 

16.Merger. If the Company shall at any time merge or consolidate with another corporation and the holders of the capital stock of the Company immediately prior to such merger or consolidation continue to hold at least a majority by voting power of the capital stock of the surviving corporation (“Continuity of Control”), the holder of each Purchase Right then outstanding will thereafter be entitled to receive at the next Purchase Date upon the exercise of such Purchase Right for each share as to which such Purchase Right shall be exercised the securities or property which a holder of one share of the Common Stock was entitled to upon and at the time of such merger or consolidation, and the Board or the Committee shall take such steps in connection with such merger or consolidation as the Board or the Committee shall deem necessary to assure that the provisions of Section 15 shall thereafter be applicable, as nearly as reasonably may be, in relation to the said securities or property as to which such holder of such Purchase Right might thereafter be entitled to receive thereunder. 

In the event of a merger or consolidation of the Company with or into another corporation which does not involve Continuity of Control, or of a sale of all or substantially all of the assets of the Company while unexercised Purchase Rights remain outstanding under the Plan, (a) subject to the provisions of clauses (b) and (c), after the effective date of such transaction, each holder of an outstanding Purchase Right shall be entitled, upon exercise of such Purchase Right, to receive in lieu of shares of Common Stock, shares of such stock or other securities as the holders of shares of Common Stock received pursuant to the terms of such transaction; or (b) all outstanding Purchase Rights may be cancelled by the Board or the Committee as of a date prior to the effective date of any such transaction and all payroll deductions shall be paid out to the participating employees; or (c) all outstanding Purchase Rights may be cancelled by the Board or the Committee as of the effective date of any such transaction, provided that notice of such cancellation shall be given to each holder of a Purchase Right, and each holder of a Purchase Right shall have the right to exercise such Purchase Right in full based on payroll deductions then credited to his account as of a date determined by the Board or the Committee, which date shall not be less than ten (10) days preceding the effective date of such transaction. 

 

17.Amendment of the Plan. The Board may at any time, and from time to time, amend this Plan in any respect, except that (a) if the approval of any such amendment by the stockholders of the Company is required by Section 423 of the Code, such amendment shall not be effected without such approval, and (b) in no event may any amendment be made which would cause the 423 Component of the Plan to fail to comply with Section 423 of the Code. 

18.Insufficient Shares. In the event that the total number of shares of Common Stock specified in elections to be purchased under any Offering plus the number of shares of Common Stock purchased under previous Offerings under this Plan exceeds the maximum number of shares of Common Stock issuable under this Plan, the Board or the Committee will allot the shares of Common Stock then available on a pro rata basis. 

19.Termination of the Plan. This Plan may be terminated at any time by the Board. Upon termination of this Plan all amounts in the accounts of participating employees shall be promptly refunded. 

20.Governmental Regulations. The Company’s obligation to sell and deliver Common Stock under this Plan is subject to listing on a national stock exchange or quotation on the NASDAQ (to the extent the Common Stock is then so listed or quoted) and the approval of all governmental authorities required in 

connection with the authorization, issuance or sale of such Common Stock. 

21.Governing Law. The Plan shall be governed by Delaware law except to the extent that such law is preempted by federal law. 

22.Issuance of Shares. Common Stock may be issued upon exercise of a Purchase Right from authorized but unissued Common Stock, from Common Stock held in the treasury of the Company, or from any other proper source. 

23.Notification upon Sale of Shares. Each employee agrees, by entering the Plan, to promptly give the Company notice of any disposition of Common Stock purchased under the Plan where such disposition occurs within two (2) years after the date of grant of the Purchase Right pursuant to which such Common Stock was purchased. 

24.Special Provisions for First Plan Period. If the first day of the first Plan Period is the IPO Date, the following provisions of this Section 24 shall apply with respect to the first Plan Period notwithstanding any provision of the Plan to the contrary: 

(a)Every eligible employee shall automatically become a participant in the Plan for the first Plan Period at the highest percentage of Compensation permitted under Section 5. No payroll deductions or contributions shall be required for the first Plan Period; however, a participant may, at any time after the effectiveness of the Plan’s Registration Statement on Form S-8, elect to have payroll deductions or contributions up to the aggregate amount which would have been credited to his account if a deduction or contribution of fifteen percent (15%) of the Compensation which he received on each pay day during the first Plan Period had been made (the “Maximum Amount”) or decline to participate by filing an appropriate subscription agreement. 

(b)Upon the automatic exercise of a participant’s Purchase Right on the Purchase Date for the first Plan Period, a participant shall be permitted to purchase Common Stock with (i) the accumulated payroll deductions or contributions in his account, if any, (ii) a direct payment from the participant, or (iii) a combination thereof; provided, however that the total amount applied to the purchase may not exceed the Maximum Amount. 

25.Withholding. Each employee shall, no later than the date of the event creating the tax liability, make provision satisfactory to the Board for payment of any taxes required by law to be withheld in connection with any transaction related to Purchase Rights granted to or Common Stock acquired by such employee pursuant to the Plan. The Company or Designated Subsidiary may, to the extent permitted by law, deduct any such taxes from any payment of any kind otherwise due to an employee. 

26.Effective Date and Approval of Stockholders. The Plan originally took effect on the IPO Date. The Board amended and restated the Plan on March 6, 2017. The amended and restated Plan became effective on May 2, 2017 following approval by the stockholders of the Company. The Plan was further amended on December 4, 2018.doc2013equityincentivepl

                                                                            Exhibit 10.1                                PHYSICIANS REALTY TRUST                              2013 EQUITY INCENTIVE PLAN        The Physicians Realty Trust 2013 Equity Incentive Plan, as amended and restated, (the “Plan”) was  adopted by the Board of Trustees of Physicians Realty Trust, a Maryland real estate investment trust (the  “Company”), as originally adopted effective as of July 18, 2013 and amended and restated effective as of April 30,  2019 (the “Effective Date”).                                       ARTICLE 1                                       PURPOSE        The purpose of the Plan is to attract and retain the services of key Employees, key Consultants, and  Outside Trustees upon whom, in large measure, the Company’s sustained progress, growth and profitability  depend, to motivate such persons to achieve the long-term goals of the Company and to more closely align such  persons’ interests with those of the Company’s shareholders by providing such persons with a proprietary interest  in the Company’s growth and performance through the granting of Nonqualified Options, Share Appreciation  Rights, Restricted Shares, Common Shares, Restricted Share Units, Performance Awards, Dividend Equivalent  Rights, and Other Awards.        With respect to Reporting Participants, the Plan and all transactions under the Plan are intended to comply  with all applicable conditions of Rule 16b-3 promulgated under the Exchange Act. To the extent any provision of  the Plan or action by the Committee fails to so comply, such provision or action shall be deemed null and void ab  initio, to the extent permitted by law and deemed advisable by the Committee.                                        ARTICLE 2                                     DEFINITIONS        For the purpose of the Plan, unless the context requires otherwise, the following terms shall have the  meanings indicated:        2.1   “Applicable Law” means all legal requirements relating to the administration of equity incentive plans and the issuance and distribution of Common Shares, if any, under applicable corporate laws, applicable securities laws, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, and any other applicable law, rule or restriction.        2.2   “Award” means the grant of any Nonqualified Option, Restricted Shares, Common Shares, SAR, Restricted Share Units, Performance Award, Dividend Equivalent Right or Other Award, whether granted singly or in combination or in tandem (each individually referred to herein as an “Incentive”).        2.3   “Award Agreement” means a written agreement between a Participant and the Company which sets out the terms of the grant of an Award.        2.4   “Award Period” means the period set forth in the Award Agreement during which one or more Incentives granted under an Award may be exercised.       2.5   “Board” means the Board of Trustees of the Company.        2.6   “Change in Control” means the occurrence of the event set forth in any one of the following paragraphs, except as otherwise provided herein:              (a)   any Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the combined voting power of the Company’s then 

 

                                                                            Exhibit 10.1   outstanding securities eligible to vote for the election of the Board (the “Company Voting Securities”); provided,  however, the event described in this paragraph (a) shall not be deemed to be a Change in Control if such event  results from the acquisition of Company Voting Securities pursuant to a Non-Qualifying Transaction (as defined  in paragraph (c) below);             (b)   individuals who, on the Effective Date, constitute the Board (the “Incumbent Trustees”) cease for any reason to constitute at least a majority of the Board; provided, however, that any person becoming a trustee subsequent to the Effective Date, whose election or nomination for election was approved (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for trustee, without written objection to such nomination) by a vote of at least two-thirds of the trustees who were, as of the date of such approval, Incumbent Trustees, shall be an Incumbent Trustee; provided, further, that no individual initially appointed, elected or nominated as a trustee of the Company as a result of an actual or threatened election contest with respect to the election or removal of trustees or as a result of any other actual or threatened solicitation of proxies or consents or pursuant to any proxy access right by or on behalf of any person other than the Board shall be deemed to be an Incumbent Trustee;              (c)   the consummation of a merger, consolidation, statutory share exchange or similar form of corporate transaction involving (A) the Company or (B) any of its wholly owned subsidiaries pursuant to which, in the case of this clause (B), Company Voting Securities are issued or issuable (any event described in the immediately preceding clause (A) or (B), a “Reorganization”) or the sale or other disposition of all or substantially all of the assets of the Company to an entity that is not an Affiliate of the Company (a “Sale”), unless immediately following such Reorganization or Sale: (1) more than fifty percent (50%) of the total voting power (in respect of the election of trustees, or similar officials in the case of an entity other than a trust) of (x) the Company (or, if the Company ceases to exist, the entity resulting from such Reorganization), or, in the case of a Sale, the entity which has acquired all or substantially all of the assets of the Company (in either case, the “Surviving Entity”), or (y) if applicable, the ultimate parent entity that directly or indirectly has Beneficial Ownership of more than fifty percent (50%) of the total voting power (in respect of the election of trustees, or similar officials in the case of an entity other than a trust) of the Surviving Entity (the “Parent Entity”), is represented by Company Voting Securities that were outstanding immediately prior to such Reorganization or Sale (or, if applicable, is represented by shares into which such Company Voting Securities were converted pursuant to such Reorganization or Sale), (2) no Person is or becomes the Beneficial Owner, directly or indirectly, of fifty percent (50%) or more of the total voting power (in respect of the election of trustees, or similar officials in the case of an entity other than a trust) of the outstanding voting securities of the Parent Entity (or, if there is no Parent Entity, the Surviving Entity) and (3) at least a majority of the members of the board of trustees (or similar officials in the case of an entity other than a trust) of the Parent Entity (or, if there is no Parent Entity, the Surviving Entity) following the consummation of the Reorganization or Sale were, at the time of the approval by the Board of the execution of the initial agreement providing for such Reorganization or Sale, Incumbent Trustees (any Reorganization or Sale which satisfies all of the criteria specified in (1), (2) and (3) above being deemed to be a “Non-Qualifying Transaction”); or              (d)   the shareholders of the Company approve a plan of complete liquidation or dissolution of the Company.        Notwithstanding the foregoing, if any Person becomes the Beneficial Owner, directly or indirectly, of fifty percent (50%) or more of the combined voting power of Company Voting Securities solely as a result of the, acquisition of Company Voting Securities by the Company which reduces the number of Company Voting Securities outstanding, such increased amount shall be deemed not to result in a Change in Control; provided, however, that if such Person subsequently becomes the Beneficial Owner, directly or indirectly, of additional Company Voting Securities that increases the percentage of outstanding Company Voting Securities Beneficially 

 

                                                                            Exhibit 10.1   Owned by such Person to a percentage equal to or greater than fifty percent (50%), a Change in Control of the  Company shall then be deemed to occur.        For purposes hereof:              “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under Section 12 of the       Exchange Act.              “Beneficial Owner” shall have the meaning set forth in Rule 13d-3 under the Exchange Act.             “Person” shall have the meaning set forth in Section 3(a)(9) of the Exchange Act, as modified and       used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the Company or any       of its Subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan (or       related trust) sponsored or maintained by the Company or any of its Subsidiaries, (iii) an underwriter       temporarily holding securities pursuant to an offering of such securities, (iv) a corporation owned, directly       or indirectly, by the shareholders of the Company in substantially the same proportions as their ownership       of Common Shares of the Company or (v) the Participant or any group of persons including the       Participant (or any entity controlled by the Participant or any group of persons including the Participant).        Notwithstanding the foregoing provisions of this Section 2.6, if an Award issued under the Plan is subject  to Section 409A of the Code, then an event shall not constitute a Change in Control for purposes of such Award  under the Plan unless such event also constitutes a change in the Company’s ownership, its effective control or the  ownership of a substantial portion of its assets within the meaning of Section 409A of the Code.       2.7   “Code” means the United States Internal Revenue Code of 1986, as amended.        2.8   “Committee” means the committee appointed or designated by the Board to administer the Plan in accordance with Article 3 of this Plan.        2.9   “Common Shares” means the common shares of beneficial interest, par value $0.01 per share, of the Company, or any securities into which or for which the common shares of the Company may be converted or exchanged, as the case may be, pursuant to the terms of this Plan.        2.10  “Company” means Physicians Realty Trust, a Maryland real estate investment trust, and any successor entity.        2.11  “Consultant” means any natural person, who is not an Employee, rendering bona fide services to the Company or a Subsidiary, with compensation, pursuant to a written independent Consultant agreement between such person (or any entity employing such person) and the Company or a Subsidiary, provided that such services are not rendered in connection with the offer or sale of securities in a capital raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.        2.12  “Date of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award Agreement; provided, however, that solely for purposes of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder, the Date of Grant of an Award shall be the date of shareholder approval of the Plan if such date is later than the effective date of such Award as set forth in the Award Agreement.       2.13  “Dividend Equivalent Right” means the right of the holder thereof to receive credits based on the cash dividends that would have been paid on the Common Shares specified in the Award if such shares were held by the Participant to whom the Award is made. 

 

                                                                            Exhibit 10.1        2.14  “Employee” means a common law employee (as defined in accordance with the Regulations and  Revenue Rulings then applicable under Section 3401(c) of the Code) of the Company or any Subsidiary of the  Company.       2.15  “Exchange Act” means the United States Securities Exchange Act of 1934, as amended.        2.16  “Executive Officer” means an officer of the Company or a Subsidiary subject to Section 16 of the  Exchange Act.        2.17  “Fair Market Value” means, as of a particular date, (a) if the Common Shares are listed on any established national securities exchange, the closing sales price per Common Share on the consolidated transaction reporting system for the principal securities exchange for the Common Shares on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (b) if the Common Shares are not so listed, but are quoted on an automated quotation system, the closing sales price per Common Share reported on the automated quotation system on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported; (c) if the Common Shares are not so listed or quoted, the mean between the closing bid and asked price on that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be available, as reported by the OTC Bulletin Board operated by the Financial Industry Regulation Authority, Inc. or the OTC Markets Group Inc., formerly known as Pink OTC Markets Inc.; or (d) if none of the above is applicable, such amount as may be determined by the Committee, in good faith, to be the fair market value per Common Share. The determination of Fair Market Value shall, where applicable, be in compliance with Section 409A of the Code.        2.18  “Incentive” is defined in Section 2.2 hereof.       2.19  “Nonqualified Option” means a nonqualified option, granted pursuant to this Plan, which is not an “incentive stock option” within the meaning of Section 422 of the Code.        2.20  “Option Price” means the price which must be paid by a Participant upon exercise of a Nonqualified Option to purchase a Common Share.        2.21  “Other Award” means an Award issued pursuant to Section 6.8 hereof.        2.22  “Outside Trustee” means a trustee of the Company who is not an Employee or a Consultant.       2.23  “Participant” means an Employee or Consultant of the Company or a Subsidiary or an Outside Trustee to whom an Award is granted under this Plan.        2.24  “Performance Award” means an Award hereunder of cash, Common Shares, units or rights based upon, payable in, or otherwise related to, Common Shares pursuant to Section 6.6 hereof.        2.25  “Performance Goal” means any of the goals set forth in Section 6.9 hereof.        2.26  “Plan” means this Physicians Realty Trust 2013 Equity Incentive Plan, as amended and restated  and as further amended from time to time.       2.27  “Reporting Participant” means a Participant who is subject to the reporting requirements of Section 16 of the Exchange Act. 

 

                                                                            Exhibit 10.1        2.28  “Restricted Shares” means Common Shares issued or transferred to a Participant pursuant to Section 6.3 of this Plan which are subject to restrictions or limitations set forth in this Plan and in the related  Award Agreement.       2.29  “Restricted Share Units” means units awarded to Participants pursuant to Section 6.5 hereof,  which are convertible into Common Shares at such time as such units are no longer subject to restrictions as  established by the Committee.       2.30  “Retirement” means any Termination of Service solely due to retirement upon or after attainment of age sixty-five (65), or permitted early retirement as determined by the Committee.        2.31  “SAR” or “Share Appreciation Right” means the right to receive an amount, in cash and/or Common Shares, equal to the excess of the Fair Market Value of a specified number of Common Shares as of the date the SAR is exercised (or, as provided in the Award Agreement, converted) over the SAR Price for such shares.       2.32  “SAR Price” means the exercise price or conversion price of each Common Share covered by a SAR, determined on the Date of Grant of the SAR.        2.33  “Subsidiary” means (i) any corporation in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described in item (i) above owns a majority of the general partnership interest and limited partnership interests entitled to vote on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership listed in item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships or limited liability companies.        2.34  “Termination of Service” occurs when a Participant who is (i) an Employee of the Company or any Subsidiary ceases to serve as an Employee of the Company and its Subsidiaries, for any reason; (ii) an Outside Trustee of the Company or a Subsidiary ceases to serve as a trustee of the Company for any reason; or (iii) a Consultant of the Company or a Subsidiary ceases to serve as a Consultant of the Company and its Subsidiaries for any reason. Except as may be necessary or desirable to comply with applicable federal or state law, a “Termination of Service” shall not be deemed to have occurred when a Participant who is an Employee becomes an Outside Trustee or Consultant or vice versa. Notwithstanding the foregoing provisions of this Section 2.34, in  the event an Award issued under the Plan is subject to Section 409A of the Code, then, in lieu of the foregoing  definition and to the extent necessary to comply with the requirements of Section 409A of the Code, the definition  of “Termination of Service” for purposes of such Award shall be the definition of “separation from service”  provided for under Section 409A of the Code and the regulations or other guidance issued thereunder.       2.35  “Total and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s or Subsidiary’s disability plan or insurance policy; or, if no such plan or policy is  then in existence or if the Participant is not eligible to participate in such plan or policy, that the Participant,  because of a physical or mental condition resulting from bodily injury, disease, or mental disorder, is unable to  perform his or her duties of employment for a period of six (6) continuous months, as determined in good faith by  the Committee, based upon medical reports or other evidence satisfactory to the Committee. Notwithstanding the  foregoing provisions of this Section 2.35, in the event an Award issued under the Plan is subject to Section 409A  of the Code, then, in lieu of the foregoing definition and to the extent necessary to comply with the requirements  of Section 409A of the Code, the definition of “Total and Permanent Disability” for purposes of such Award shall 

 

                                                                            Exhibit 10.1   be the definition of “disability” provided for under Section 409A of the Code and the regulations or other  guidance issued thereunder.                                        ARTICLE 3                                   ADMINISTRATION        Subject to the terms of this Article 3, the Plan shall be administered by the Board or such committee of  the Board as is designated by the Board to administer the Plan (the “Committee”). The Committee shall consist of not fewer than two persons. Any member of the Committee may be removed at any time, with or without cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the Board. At any time there is no Committee to administer the Plan, any references in this Plan to the Committee shall be deemed to refer to the Board.       If necessary to satisfy the requirements of Rule 16b-3 promulgated under the Exchange Act, membership on the Committee shall be limited to those members of the Board who are “non-employee trustees” as defined in Rule 16b-3 promulgated under the Exchange Act. The Committee shall select one of its members to act as its Chairman. A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the Committee present at a meeting at which a quorum is present shall be the act of the Committee.        The Committee shall determine and designate from time to time the eligible persons to whom Awards will be granted and shall set forth in each related Award Agreement, where applicable, the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan. The Committee shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in combination or two or more Incentives granted in tandem (that is, a joint grant where exercise of one Incentive results in cancellation of all or a portion of the other Incentive). Although the members of the Committee shall be eligible to receive Awards, all decisions with respect to any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall be made solely and exclusively by the other members of the Committee, or by the Board.        The Committee, in its discretion, shall (i) interpret the Plan and Award Agreements, (ii) prescribe, amend, and rescind any rules and regulations, as necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award and certify the extent of their achievement, and (iv) make such other determinations or certifications and take such other action as it deems necessary or advisable in the administration of the Plan. Any interpretation, determination, or other action made or taken by the Committee shall be final, binding, and conclusive on all interested parties.       The Committee may delegate to officers of the Company, pursuant to a written delegation, the authority to perform specified functions under the Plan. Any actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken by the Committee. Notwithstanding the foregoing, to the extent necessary to satisfy the requirements of Rule 16b-3 promulgated under the Exchange Act, any function relating to a Reporting Participant shall be performed solely by the Committee.        With respect to restrictions in the Plan that are based on the requirements of Rule 16b-3 promulgated under the Exchange Act, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or quoted, or any other Applicable Law, to the extent that any such restrictions are no longer required by Applicable Law, the Committee shall have the sole discretion and authority to grant Awards that are not subject to such mandated restrictions and/or to waive any such mandated restrictions with respect to outstanding Awards.                                        ARTICLE 4                                      ELIGIBILITY 

 

                                                                            Exhibit 10.1        Any Employee (including an Employee who is also a trustee or an officer), Consultant or Outside Trustee  of the Company whose judgment, initiative, and efforts contributed or may be expected to contribute to the  successful performance of the Company is eligible to participate in the Plan. The Committee, upon its own action,  may grant, but shall not be required to grant, an Award to any Employee, Consultant or Outside Trustee. Awards  may be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or  to a greater or lesser number of Participants, and may include or exclude previous Participants, as the Committee  shall determine. Except as required by this Plan, Awards need not contain similar provisions. The Committee’s  determinations under the Plan (including without limitation determinations of which Employees, Consultants or  Outside Trustees, if any, are to receive Awards, the form, amount and timing of such Awards, the terms and  provisions of such Awards and the agreements evidencing same) need not be uniform and may be made by it  selectively among Participants who receive, or are eligible to receive, Awards under the Plan.                                        ARTICLE 5                               SHARES SUBJECT TO PLAN       5.1   Number Available for Awards. Subject to adjustment as provided in Articles 11 and 12, the  maximum number of Common Shares that may be delivered pursuant to Awards granted under the Plan is  7,000,000 shares. Subject to adjustment pursuant to Articles 11 and 12, during any one calendar year, the  maximum number of Common Shares with respect to Awards that may be granted to an Executive Officer is Five  Hundred Thousand (500,000) Common Shares and the maximum value with respect to Awards that may be  granted to an Outside Trustee is Five Hundred Thousand Dollars ($500,000). Shares to be issued may be made  available from authorized but unissued Common Shares, Common Shares held by the Company in its treasury, or  Common Shares purchased by the Company on the open market or otherwise. During the term of this Plan, the  Company will at all times reserve and keep available the number of Common Shares that shall be sufficient to  satisfy the requirements of this Plan.        5.2   Reuse of Shares. Except as otherwise expressly provided in this Section 5.2, to the extent that all  or any portion of an Award under this Plan shall be forfeited, shall expire or be canceled, in whole or in part, or  shall be settled or paid in cash, then the number of Common Shares covered by the Award (or portion thereof) so  forfeited, expired or canceled or settled or paid in cash may again be awarded pursuant to the provisions of this  Plan. Common Shares from an Award that are withheld in payment of the exercise price or taxes, and Common  Shares subject to a Stock Appreciation Right not delivered upon exercise shall be deemed to be delivered for  purposes of the Plan and therefore will not be deemed to remain or to become available under the Plan.                                       ARTICLE 6                                  GRANT OF AWARDS        6.1   In General.              (a)   The grant of an Award shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth the type of Incentive or Incentives being granted, the total number of Common Shares subject to the Incentive(s), the Option Price (if applicable), the Award Period, the Date of Grant, and such other terms, provisions, limitations, and performance objectives, as are approved by the Committee, but (i) not inconsistent with the Plan, and (ii) to the extent an Award issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder. The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance of an Award. Any Award granted pursuant to this Plan must be granted within ten (10) years of the Effective Date of this Plan. The Plan shall be submitted to the Company’s shareholders for approval as required by Applicable Law; however, the Committee may grant Awards under the Plan prior to the time of shareholder approval. Any such Award granted prior to such shareholder approval shall be made subject 

 

                                                                            Exhibit 10.1   to such shareholder approval. The grant of an Award to a Participant shall not be deemed either to entitle the  Participant to, or to disqualify the Participant from, receipt of any other Award under the Plan.              (b)   If the Committee establishes a purchase price for an Award, the Participant must accept such Award within a period of thirty (30) days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement and paying such purchase price.              (c)   Any Award under this Plan that is settled in whole or in part in cash on a deferred basis may provide for interest equivalents to be credited with respect to such cash payment. Interest equivalents may be compounded and shall be paid upon such terms and conditions as may be specified by the grant.        6.2   Option Price. The Option Price for any Common Share which may be purchased under a Nonqualified Option for any Common Share may be equal to or greater than the Fair Market Value of the share on the Date of Grant. Except as otherwise provided by Article 11 or Article 12, the Option Price for any  Nonqualified Option may not be reduced, directly or indirectly by cancellation and re-grant or otherwise, without  the prior approval of the shareholders.       6.3   Restricted Shares and Common Shares. If Restricted Shares or Common Shares are granted to  or received by a Participant under an Award (including a Nonqualified Option), the Committee shall set forth in  the related Award Agreement: (i) the number of Common Shares awarded, the price, if any, to be paid by the  Participant for such Common Shares and the method of payment of the price, (iii) the time or times within which  such Award may be subject to forfeiture, if at all, (iv) specified Performance Goals of the Company, a Subsidiary,  any division thereof or any group of Employees of the Company, or other criteria, which the Committee  determines must be met in order to remove any restrictions (including vesting) on such Award, and (v) all other  terms, limitations, restrictions, and conditions of the Common Shares, which shall be consistent with this Plan and,  to the extent Restricted Shares granted under the Plan are subject to Section 409A of the Code, in compliance with  the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder.  The provisions of Restricted Shares need not be the same with respect to each Participant.              (a)   Legend on Shares. The Company shall electronically register the Restricted Shares or Common Shares awarded to a Participant in the name of such Participant, which shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Shares or Common Shares, substantially as provided in Section 15.9 of the Plan. No certificate or certificates in respect of such Restricted  Shares or Common Shares shall be issued with respect to such Common Shares, unless, following the expiration  of the Restriction Period (as defined in Section 6.3(b)(i)) without forfeiture in respect of such Restricted Shares,  the Participant requests delivery of the certificate or certificates by submitting a written request to the Committee  (or such party designated by the Company) requesting delivery of the certificates and the Company, in its sole  discretion, elects to issue such certificates (as opposed to electronic book entry form with respect to its Common  Shares). The Company shall deliver the certificates it elects to issue to the Participant as soon as administratively  practicable following the Company’s receipt of such request.              (b)   Restrictions and Conditions. Restricted Shares shall be subject to the following restrictions and conditions:        (i)   Subject to the other provisions of this Plan and the terms of the particular Award Agreements,             during such period as may be determined by the Committee commencing on the Date of Grant or             the date of exercise of an Award (the “Restriction Period”), the Participant shall not be permitted             to sell, transfer, pledge or assign Restricted Shares. Except for these limitations, the Committee             may in its sole discretion, remove any or all of the restrictions on such Restricted Shares 

 

                                                                            Exhibit 10.1              whenever it may determine that, by reason of changes in Applicable Laws or other changes in             circumstances arising after the date of the Award, such action is appropriate.        (ii)  Except as provided in sub-paragraph (i) above or in the applicable Award Agreement or under             Section 6.6 below, the Participant shall have, with respect to his or her Restricted Shares, all of             the rights of a shareholder of the Company, including the right to vote the shares, and the right to             receive any dividends thereon. Certificates for Common Shares free of restriction under this Plan             shall be, if requested by the Participant in accordance with Section 6.4(a) above and if the             Company elects to issue certificates (as opposed to electronic book entry form with respect to its             Common Shares), delivered to the Participant promptly after, and only after, the Restriction             Period shall expire without forfeiture in respect of such Common Shares or after any other             restrictions imposed on such Common Shares by the applicable Award Agreement or other             agreement have expired. Certificates, if issued, for the Common Shares forfeited under the             provisions of the Plan and the applicable Award Agreement shall be promptly returned to the             Company by the forfeiting Participant.        (iii) The Restriction Period of Restricted Shares shall commence on the Date of Grant or the date of             exercise of an Award, as specified in the Award Agreement, and, subject to Article 12 of the Plan,             unless otherwise established by the Committee in the Award Agreement setting forth the terms of             the Restricted Shares, shall expire upon satisfaction of the conditions set forth in the Award             Agreement; such conditions may provide for vesting based on such Performance Goals, as may be             determined by the Committee in its sole discretion.        (iv)  Except as otherwise provided in the particular Award Agreement, upon Termination of Service             for any reason during the Restriction Period, the nonvested Restricted Shares shall be forfeited by             the Participant. In the event a Participant has paid any consideration to the Company for such             forfeited Restricted Shares, the Committee shall specify in the Award Agreement that either (i)             the Company shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to             the Participant, as soon as practicable after the event causing forfeiture, in cash, an amount equal             to the lesser of the total consideration paid by the Participant for such forfeited shares or the Fair             Market Value of such forfeited shares as of the date of Termination of Service, as the Committee,             in its sole discretion shall select. Upon any forfeiture, all rights of a Participant with respect to the             forfeited Restricted Shares shall cease and terminate, without any further obligation on the part of             the Company.       6.4   SARs. The Committee may grant SARs to any Participant, either as a separate Award or in connection with a Nonqualified Option. SARs shall be subject to such terms and conditions as the Committee shall impose, provided that such terms and conditions are (i) not inconsistent with the Plan, and (ii) to the extent a SAR issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder. The grant of the SAR may provide that the holder may be paid for the value of the SAR either in cash or in Common Shares, or a combination thereof. In the event of the exercise of a SAR payable in Common Shares, the holder of the SAR shall receive that number of whole Common Shares having an aggregate Fair Market Value on the date of exercise equal to the value obtained by multiplying (i) the difference between the Fair Market Value of a Common Share on the date of exercise over the SAR Price as set forth in such SAR (or other value specified in the agreement granting the SAR), by (ii) the number of Common Shares as to which the SAR is exercised, with a cash settlement to be made for any fractional Common Shares. The SAR Price for any Common Share subject to a SAR may be equal to or greater than the Fair Market Value of the share on the Date of Grant. The Committee, in its sole discretion, may place a ceiling on the amount payable upon exercise of a SAR, but any such limitation 

 

                                                                            Exhibit 10.1   shall be specified at the time that the SAR is granted. Except as otherwise provided by Article 11 or Article 12,  the SAR Price for any SAR may not be reduced, directly or indirectly by cancellation and re-grant or otherwise,  without the prior approval of the shareholders.       6.5   Restricted Share Units. Restricted Share Units may be awarded or sold to any Participant under  such terms and conditions as shall be established by the Committee, provided, however, that such terms and  conditions are (i) not inconsistent with the Plan, and (ii) to the extent a Restricted Share Unit issued under the  Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of  the Code and the regulations or other guidance issued thereunder. Restricted Share Units shall be subject to such  restrictions as the Committee determines, including, without limitation, (a) a prohibition against sale, assignment,  transfer, pledge, hypothecation or other encumbrance for a specified period; or (b) a requirement that the holder  forfeit (or in the case of Common Shares or units sold to the Participant, resell to the Company at cost) such  shares or units in the event of Termination of Service during the period of restriction.       6.6   Performance Awards.              (a)   The Committee may grant Performance Awards to one or more Participants. The terms and conditions of Performance Awards shall be specified at the time of the grant and may include provisions establishing the performance period, the Performance Goals to be achieved during a performance period, and the maximum or minimum settlement values, provided that such terms and conditions are (i) not inconsistent with the Plan and (ii) to the extent a Performance Award issued under the Plan is subject to Section 409A of the Code, in compliance with the applicable requirements of Section 409A of the Code and the regulations or other guidance issued thereunder. If the Performance Award is to be in Common Shares, the Performance Award may provide for the issuance of the Common Shares at the time of the grant of the Performance Award or at the time of the determination by the Committee that the Performance Goals for the performance period have been met. The forfeiture of Common Shares issued at the time of the grant of the Performance Award due to failure to achieve the established Performance Goals shall be separate from and in addition to any other restrictions provided for in this Plan that may be applicable to such Common Shares. Each Performance Award granted to one or more Participants shall have its own terms and conditions.        If the Committee determines, in its sole discretion, that the established performance measures or objectives are no longer suitable because of a change in the Company’s business, operations, corporate structure, or for other reasons that the Committee deemed satisfactory, the Committee may modify the performance measures or objectives and/or the performance period.              (b)   Performance Awards may be valued by reference to the Fair Market Value or according to any formula or method deemed appropriate by the Committee, in its sole discretion, including, but not limited to, achievement of Performance Goals or other specific financial, production, sales or cost performance objectives that the Committee believes to be relevant to the Company’s business and/or remaining in the employ of the Company or a Subsidiary for a specified period of time. Performance Awards may be paid in cash, Common Shares, or other consideration, or any combination thereof. If payable in Common Shares, the consideration for the issuance of such shares may be the achievement of the performance objective established at the time of the grant of the Performance Award. Performance Awards may be payable in a single payment or in installments and may be payable at a specified date or dates or upon attaining the performance objective. The extent to which any applicable performance objective has been achieved shall be conclusively determined by the Committee.        6.7   Dividend Equivalent Rights. The Committee may grant a Dividend Equivalent Right to any Participant, either as a component of another Award or as a separate Award, provided, however, that to the extent  any Dividend Equivalent Right granted as a component of a Nonqualified Option or SAR is subject to Section  409A of the Code, both the Dividend Equivalent Right and the Nonqualified Option or SAR, as applicable, must 

 

                                                                            Exhibit 10.1   be granted with terms that are compliant with Section 409A of the Code. The terms and conditions of the  Dividend Equivalent Right shall be specified by the grant. Dividend equivalents credited to the holder of a  Dividend Equivalent Right may be paid currently or may be deemed to be reinvested in additional Common  Shares (which may thereafter accrue additional dividend equivalents). Any such reinvestment shall be at the Fair  Market Value at the time thereof. Dividend Equivalent Rights may be settled in cash or Common Shares, or a  combination thereof, in a single payment or in installments. A Dividend Equivalent Right granted as a component  of another Award may provide that such Dividend Equivalent Right shall be settled upon exercise, settlement, or  payment of, or lapse of restrictions on, such other Award, and that such Dividend Equivalent Right granted as a  component of another Award may also contain terms and conditions different from such other Award.  Notwithstanding anything to the contrary herein, Dividend Equivalent Rights may not be granted as a component  of Restricted Shares.        6.8   Other Awards. The Committee may grant to any Participant other forms of Awards, based upon,  payable in, or otherwise related to, in whole or in part, Common Shares, if the Committee determines that such  other form of Award is consistent with the purpose and restrictions of this Plan. The terms and conditions of such  other form of Award shall be specified by the grant. Such Other Awards may be granted for no cash consideration,  for such minimum consideration as may be required by Applicable Law, or for such other consideration as may be  specified by the grant.        6.9   Performance Goals. Awards of Restricted Shares, Restricted Share Units, Performance Award  and Other Awards (whether relating to cash or Common Shares) under the Plan may be made subject to the  attainment of Performance Goals relating to one or more business criteria that may consist of one or more or any  combination of the following criteria: cash flow; cost; revenues; sales; ratio of debt to debt plus equity; net  borrowing, credit quality or debt ratings; profit before tax; economic profit; earnings before interest and taxes;  earnings before interest, taxes, depreciation and amortization; gross margin; earnings per share (whether on a pre- tax, after-tax, operational or other basis); operating earnings; capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital spending or any other operating ratios; free cash flow; net profit; net sales; net asset value per share; the accomplishment of mergers, acquisitions, dispositions, public offerings or similar extraordinary business transactions; sales growth; price of the Company’s Common Shares; return on assets, equity or shareholders’ equity; market share; inventory levels, inventory turn or shrinkage; total return to shareholders or such other business criteria as the Committee considers appropriate or desirable in light of the business goals of the Company (“Performance Criteria”). Any Performance Criteria may be used to measure the performance of the Company as a whole or any business unit of the Company and may be measured relative to a peer group or index. Any Performance Criteria may include or exclude (i) extraordinary, unusual and/or non-recurring items of gain or loss, (ii) gains or losses on the disposition of a business, (iii) changes in tax or accounting regulations or laws, (iv) the effect of a merger or acquisition, as identified in the Company’s quarterly and annual earnings releases, or (v) other similar occurrences. In all other respects, Performance Criteria shall be calculated in accordance with the Company’s financial statements, under generally accepted accounting principles, or under a methodology established by the Committee prior to the issuance of an Award which is consistently applied and identified in the audited financial statements, including footnotes, or the Compensation Discussion and Analysis section of the Company’s annual report. However, the Committee may not in any event increase the amount of compensation payable to an individual upon the attainment of a Performance Goal.        6.10  Tandem Awards. The Committee may grant two or more Incentives in one Award in the form of a “tandem Award,” so that the right of the Participant to exercise one Incentive shall be canceled if, and to the extent, the other Incentive is exercised. For example, if a Nonqualified Option and a SAR are issued in a tandem Award, and the Participant exercises the SAR with respect to one hundred (100) Common Shares, the right of the 

 

                                                                            Exhibit 10.1   Participant to exercise the related Nonqualified Option shall be canceled to the extent of one hundred (100)  Common Shares.                                        ARTICLE 7                               AWARD PERIOD; VESTING        7.1   Award Period. Subject to the other provisions of this Plan, the Committee may, in its discretion,  provide that an Incentive may not be exercised in whole or in part for any period or periods of time or beyond any  date specified in the Award Agreement. Except as provided in the Award Agreement, an Incentive may be  exercised in whole or in part at any time during its term. The Award Period for an Incentive shall be reduced or  terminated upon Termination of Service. No Incentive granted under the Plan may be exercised at any time after  the end of its Award Period. No portion of any Incentive may be exercised after the expiration of ten (10) years  from its Date of Grant.        7.2   Vesting. Notwithstanding any other provision of the Plan (but except as provided in this Section  7.2), Incentives shall have a minimum vesting period of one (1) year, provided that over the life of the Plan up to  5% of the total number of Common Shares authorized under Section 5.1 subject to Incentives may be issued  without minimum vesting requirements. If the Committee imposes conditions upon vesting, then, subsequent to  the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the  Incentive may be vested in the event of the Participant’s  death, Total and Permanent Disability or Termination of  Service without cause or as otherwise provided in Article 12.                                       ARTICLE 8                        EXERCISE OR CONVERSION OF INCENTIVE        8.1   In General. A vested Incentive may be exercised or converted, during its Award Period, subject to limitations and restrictions set forth in the Award Agreement.        8.2   Securities Law and Exchange Restrictions. In no event may an Incentive be exercised or Common Shares be issued pursuant to an Award if a necessary listing or quotation of the Common Shares on a stock exchange or inter-dealer quotation system or any registration under state or federal securities laws required under the circumstances has not been accomplished.        8.3   Exercise of Nonqualified Option.              (a)   In General. If a Nonqualified Option is exercisable prior to the time it is vested, the Common Shares obtained on the exercise of the Nonqualified Option shall be Restricted Shares which are subject to the applicable provisions of the Plan and the Award Agreement. If the Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Nonqualified Option may be exercised. No Nonqualified Option may be exercised for a fractional Common Share. The granting of a Nonqualified Option shall impose no obligation upon the Participant to exercise that Nonqualified Option.             (b)   Notice and Payment. Subject to such administrative regulations as the Committee may from time to time adopt, a Nonqualified Option may be exercised by the delivery of written notice to the Committee setting forth the number of Common Shares with respect to which the Nonqualified Option is to be exercised and the date of exercise thereof (the “Exercise Date”) which shall be at least three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon. On the Exercise Date, the Participant shall deliver to the Company consideration with a value equal to the total Option Price of the shares to be purchased, payable as provided in the Award Agreement, which may provide for payment in any one or more of the following ways: (a) cash or check, bank draft, or money order payable to the order of the Company, (b) 

 

                                                                            Exhibit 10.1   Common Shares (including Restricted Shares) owned by the Participant on the Exercise Date, valued at its Fair  Market Value on the Exercise Date, and which the Participant has not acquired from the Company within six (6)  months prior to the Exercise Date, (c) by delivery (including by facsimile or other electronic means) to the  Company or its designated agent of an executed irrevocable option exercise form together with irrevocable  instructions from the Participant to a broker or dealer, reasonably acceptable to the Company, to sell certain of the  Common Shares purchased upon exercise of the Nonqualified Option or to pledge such shares as collateral for a  loan and promptly deliver to the Company the amount of sale or loan proceeds necessary to pay such purchase  price, and/or (d) in any other form of valid consideration that is acceptable to the Committee in its sole discretion.  In the event that Restricted Shares are tendered as consideration for the exercise of a Nonqualified Option, a  number of Common Shares issued upon the exercise of the Nonqualified Option equal to the number of Restricted  Shares used as consideration therefor shall be subject to the same restrictions and provisions as the Restricted  Shares so tendered.              (c)   Issuance of Certificate. Except as otherwise provided in Section 6.3 hereof (with respect to Restricted Shares) or in the applicable Award Agreement, upon payment of all amounts due from the Participant, the Company shall cause the Common Shares then being purchased to be registered in the Participant’s name (or the person exercising the Participant’s Option in the event of his or her death), but shall not issue certificates for the Common Shares unless the Participant or such other person requests delivery of the certificates for the Common Shares, in writing in accordance with the procedures established by the Committee, and the Company has elected to issue certificates (as opposed to electronic book entry form with respect to its Common Shares); in which case, the Company shall deliver certificates to the Participant (or the person exercising the Participant’s Option in the event of his or her death) as soon as administratively practicable following the Company’s receipt of a written request from the Participant or such other person for delivery of the certificates. Any obligation of the Company to deliver Common Shares shall, however, be subject to the condition that, if at any time the Committee shall determine in its discretion that the listing, registration, or qualification of the Nonqualified Option or the Common Shares upon any securities exchange or inter-dealer quotation system or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary as a condition of, or in connection with, the Nonqualified Option or the issuance or purchase of Common Shares thereunder, the Nonqualified Option may not be exercised in whole or in part unless such listing, registration, qualification, consent, or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Committee.             (d)   Failure to Pay. Except as may otherwise be provided in an Award Agreement, if the Participant fails to pay for any of the Common Shares specified in such notice or fails to accept delivery thereof, that portion of the Participant’s Nonqualified Option and right to purchase such Common Shares may be forfeited by the Participant.       8.4   SARs. Subject to the conditions of this Section 8.4 and such administrative regulations as the  Committee may from time to time adopt, a SAR may be exercised by the delivery (including by facsimile or other  electronic means) of written notice to the Committee setting forth the number of Common Shares with respect to  which the SAR is to be exercised and the date of exercise thereof (the “Exercise Date”) which shall be at least  three (3) days after giving such notice unless an earlier time shall have been mutually agreed upon. Subject to the  terms of the Award Agreement and only if permissible under Section 409A of the Code and the regulations or  other guidance issued thereunder (or, if not so permissible, at such time as permitted by Section 409A of the Code  and the regulations or other guidance issued thereunder), the Participant shall receive from the Company in  exchange therefor in the discretion of the Committee, and subject to the terms of the Award Agreement: 

 

                                                                            Exhibit 10.1              (a)   cash in an amount equal to the excess (if any) of the Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement, conversion, of the SAR) per Common Share over the SAR Price per share specified in such SAR, multiplied by the total number of Common Shares of the SAR being surrendered;             (b)   that number of Common Shares having an aggregate Fair Market Value (as of the Exercise Date, or if provided in the Award Agreement, conversion, of the SAR) equal to the amount of cash otherwise payable to the Participant, with a cash settlement to be made for any fractional share interests; or             (c)   the Company may settle such obligation in part with Common Shares and in part with cash.        The distribution of any cash or Common Shares pursuant to the foregoing sentence shall be made at such time as set forth in the Award Agreement.                                        ARTICLE 9                           AMENDMENT OR DISCONTINUANCE        Subject to the limitations set forth in this Article 9, the Committee may at any time and from time to time,  without the consent of the Participants, alter, amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment for which shareholder approval is required by any securities exchange or inter-dealer quotation system on which the Common Shares are listed or traded, or by other Applicable Law shall be effective unless such amendment shall be approved by the requisite vote of the shareholders of the Company entitled to vote thereon. Any such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement. In the event of any such amendment to the Plan, the holder of any Incentive outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the Committee to any Award Agreement relating thereto. Notwithstanding anything contained in this Plan to the contrary, unless required by Applicable Law, no action contemplated or permitted by this Article 9 shall adversely affect any rights of  Participants or obligations of the Company to Participants with respect to any Incentive theretofore granted under  the Plan without the consent of the affected Participant.                                       ARTICLE 10                                         TERM       The Plan shall be effective from the date that this Plan is adopted by the Board. Unless sooner terminated by action of the Committee, the Plan will terminate on the tenth anniversary of the Effective Date, but Incentives granted before that date will continue to be effective in accordance with their terms and conditions.                                      ARTICLE 11                                CAPITAL ADJUSTMENTS       In the event that any dividend or other distribution (whether in the form of cash, Common Shares, other securities, or other property), recapitalization, stock split, reverse stock split, rights offering, reorganization, merger, consolidation, split-up, spin-off, split-off, combination, subdivision, repurchase, or exchange of Common Shares or other securities of the Company, issuance of warrants or other rights to purchase Common Shares or other securities of the Company, or other similar corporate transaction or event affects the fair value of an Award, then the Committee shall adjust any or all of the following so that the fair value of the Award immediately after the transaction or event is equal to the fair value of the Award immediately prior to the transaction or event (i) the number of shares and type of Common Shares (or the securities or property) which thereafter may be made the subject of Awards, (ii) the number of shares and type of Common Shares (or other securities or property) subject 

 

                                                                            Exhibit 10.1   to outstanding Awards, (iii) the number of shares and type of Common Shares (or other securities or property)  specified as the annual per-participant limitation under Section 5.1 of the Plan, (iv) the Option Price of each  outstanding Award, (v) the amount, if any, the Company pays for forfeited Common Shares in accordance with  Section 6.3, and (vi) the number of or SAR Price of Common Shares then subject to outstanding SARs previously  granted and unexercised under the Plan, to the end that the same proportion of the Company’s issued and  outstanding Common Shares in each instance shall remain subject to exercise at the same aggregate SAR Price;  provided however, that the number of Common Shares (or other securities or property) subject to any Award shall  always be a whole number. Notwithstanding the foregoing, no such adjustment shall be made or authorized to the  extent that such adjustment would cause the Plan or any Nonqualified Option to violate Section 409A of the Code.  Such adjustments shall be made in accordance with the rules of any securities exchange, stock market, or stock  quotation system to which the Company is subject.        Upon the occurrence of any such adjustment, the Company shall provide notice to each affected Participant of its computation of such adjustment which shall be conclusive and shall be binding upon each such Participant.                                       ARTICLE 12                   RECAPITALIZATION, MERGER AND CONSOLIDATION       12.1  No Effect on Company’s Authority. The existence of this Plan and Incentives granted hereunder shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure and its business, or any Change in Control, or any merger or consolidation of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Shares or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.       12.2  Conversion of Incentives Where Company Survives. Subject to any required action by the  shareholders and except as otherwise provided by Section 12.4 hereof or as may be required to comply with  Section 409A of the Code and the regulations or other guidance issued thereunder, if the Company shall be the  surviving or resulting corporation in any merger, consolidation or share exchange, any Incentive granted  hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets) to which a  holder of the number of Common Shares subject to the Incentive would have been entitled.        12.3  Exchange or Cancellation of Incentives Where Company Does Not Survive. Except as  otherwise provided by Section 12.4 hereof or as may be required to comply with Section 409A of the Code and  the regulations or other guidance issued thereunder, in the event of any merger, consolidation or share exchange  pursuant to which the Company is not the surviving or resulting corporation, there shall be substituted for each  Common Share subject to the unexercised portions of outstanding Incentives, that number of shares of each class  of stock or other securities or that amount of cash, property, or assets of the surviving, resulting or consolidated  company which were distributed or distributable to the shareholders of the Company in respect to each Common  Share held by them, such outstanding Incentives to be thereafter exercisable for such stock, securities, cash, or  property in accordance with their terms.        12.4  Cancellation of Incentives. Notwithstanding the provisions of Sections 12.2 and 12.3 hereof, and  except as may be required to comply with Section 409A of the Code and the regulations or other guidance issued  thereunder, all Incentives granted hereunder may be canceled by the Company, in its sole discretion, as of the  effective date of any Change in Control, merger, consolidation or share exchange, or any issuance of bonds,  debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Shares or the rights 

 

                                                                            Exhibit 10.1   thereof (or any rights, options, or warrants to purchase same), or of any proposed sale of all or substantially all of  the assets of the Company, or of any dissolution or liquidation of the Company, by either:              (a)   giving notice to each holder thereof or his personal representative of its intention to cancel those Incentives for which the issuance of Common Shares involved payment by the Participant for such shares, and permitting the purchase during the thirty (30) day period next preceding such effective date of any or all of the Common Shares subject to such outstanding Incentives, including in the Board’s discretion some or all of the shares as to which such Incentives would not otherwise be vested and exercisable; or             (b)   in the case of Incentives that are either (i) settled only in Common Shares, or (ii) at the election of the Participant, settled in Common Shares, paying the holder thereof an amount equal to a reasonable estimate of the difference between the net amount per share payable in such transaction or as a result of such transaction, and the price per share of such Incentive to be paid by the Participant (hereinafter the “Spread”), multiplied by the number of shares subject to the Incentive. In cases where the shares constitute, or would after exercise, constitute Restricted Shares, the Company, in its discretion, may include some or all of those shares in the calculation of the amount payable hereunder. In estimating the Spread, appropriate adjustments to give effect to the existence of the Incentives shall be made, such as deeming the Incentives to have been exercised, with the Company receiving the exercise price payable thereunder, and treating the shares receivable upon exercise of the Incentives as being outstanding in determining the net amount per share. In cases where the proposed transaction consists of the acquisition of assets of the Company, the net amount per share shall be calculated on the basis of the net amount receivable with respect to Common Shares upon a distribution and liquidation by the Company after giving effect to expenses and charges, including but not limited to taxes, payable by the Company before such liquidation could be completed.       12.5  Change in Control.  In the event of a Change in Control, the acquirer or surviving or resulting corporation has the right to continue, assume or convert into replacement awards any then outstanding Awards to the extent practicable. Outstanding Awards that are not continued, assumed or converted into replacement awards in connection with the Change in Control shall accelerate and vest, be earned or become exercisable in full upon the Change in Control.  With respect to outstanding Awards that are subject to performance-based vesting conditions, the reference to “accelerate and vest” refers to vesting based on the actual level of achievement of the performance goal or goals under the Award as of the date of the Change in Control unless otherwise provided in an employment agreement or in an Award agreement.  An Award that either by its terms or this Section 12.5  would be fully vested or exercisable upon a Change in Control will be considered vested or exercisable for  purposes of Section 12.4 hereof.                                      ARTICLE 13                             LIQUIDATION OR DISSOLUTION       Subject to Section 12.4 hereof, in case the Company shall, at any time while any Incentive under this Plan  shall be in force and remain unexpired, (i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or  wind up its affairs, then each Participant shall be entitled to receive, in lieu of each Common Share of the  Company which such Participant would have been entitled to receive under the Incentive, the same kind and  amount of any securities or assets as may be issuable, distributable, or payable upon any such sale, dissolution,  liquidation, or winding up with respect to each Common Share of the Company. If the Company shall, at any time  prior to the expiration of any Incentive, make any partial distribution of its assets, in the nature of a partial  liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of  earned surplus and designated as such) and an adjustment is determined by the Committee to be appropriate to  prevent the dilution of the benefits or potential benefits intended to be made available under the Plan, then the  Committee shall, in such manner as it may deem equitable, make such adjustment in accordance with the  provisions of Article 11 hereof. 

 

                                                                            Exhibit 10.1                                       ARTICLE 14       INCENTIVES IN SUBSTITUTION FOR INCENTIVES GRANTED BY OTHER ENTITIES        Incentives may be granted under the Plan from time to time in substitution for similar instruments held by employees, independent consultants or trustees of a corporation, partnership, or limited liability company who become or are about to become Employees, Consultants or Outside Trustees of the Company or any Subsidiary as a result of a merger or consolidation of the employing corporation with the Company, the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which the Company becomes the successor employer. The terms and conditions of the substitute Incentives so granted may vary from the terms and conditions set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the Incentives in substitution for which they are granted. To the extent permitted by Applicable Law, any Incentives granted in accordance with this Article 14  shall not reduce the number of Common Shares available for grant under Section 5.1 above.                                      ARTICLE 15                              MISCELLANEOUS PROVISIONS        15.1  Investment Intent. The Company may require that there be presented to and filed with it by any Participant under the Plan, such evidence as it may deem necessary to establish that the Incentives granted or the Common Shares to be purchased or transferred are being acquired for investment and not with a view to their distribution.       15.2  No Right to Continued Employment. Neither the Plan nor any Incentive granted under the Plan shall confer upon any Participant any right with respect to continuance of employment by the Company or any Subsidiary.       15.3  Indemnification of Board and Committee. No member of the Board or the Committee, nor any officer or Employee of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board and the Committee, each officer of the Company, and each Employee of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action, determination, or interpretation.        15.4  Effect of the Plan. Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person any right to be granted an Award or any other rights except as may be evidenced by an Award Agreement, or any amendment thereto, duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein.        15.5  Compliance With Other Laws and Regulations. Notwithstanding anything contained herein to the contrary, the Company shall not be required to sell or issue Common Shares under any Incentive if the issuance thereof would constitute a violation by the Participant or the Company of any Applicable Law; and, as a condition of any sale or issuance of Common Shares under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or advisable to assure compliance with any such Applicable Law. The Plan, the grant and exercise of Incentives hereunder, and the obligation of the Company to sell and deliver Common Shares, shall be subject to all applicable federal and state laws, rules and regulations and to such approvals by any government or regulatory agency as may be required.        15.6  Tax Requirements. The Company or, if applicable, any Subsidiary (for purposes of this Section  15.6, the term “Company” shall be deemed to include any applicable Subsidiary), shall have the right to deduct  from all amounts paid in cash or other form in connection with the Plan, any Federal, state, local, or other taxes 

 

                                                                            Exhibit 10.1   required by law to be withheld in connection with an Award granted under this Plan. The Company may, in its  sole discretion, also require the Participant receiving Common Shares issued under the Plan to pay the Company  the amount of any taxes that the Company is required to withhold in connection with the Participant’s income  arising with respect to the Award. Such payments shall be required to be made when requested by the Company  and may be required to be made prior to the delivery of any certificate representing Common Shares, if such  certificate is requested by the Participant in accordance with Section 6.4(a) or Section 8.3(c) above and the  Company has elected to issue certificates (as opposed to electronic book entry form with respect to its Common  Shares). Such payment may be made (i) by the delivery of cash to the Company in an amount that equals or  exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligations of  the Company; (ii) if the Company, in its sole discretion, so consents in writing, the actual delivery by the  exercising Participant to the Company of Common Shares that the Participant has not acquired from the Company  within six (6) months prior to the date of exercise, which shares so delivered have an aggregate Fair Market Value  that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding  payment; (iii) if the Company, in its sole discretion, so consents in writing, the Company’s withholding of a  number of shares to be delivered upon the exercise of the Nonqualified Option, which shares so withheld have an  aggregate Fair Market Value that equals (but does not exceed) the required tax withholding payment; or (iv) any  combination of (i), (ii), or (iii). The Company may, in its sole discretion, withhold any such taxes from any other  cash remuneration otherwise paid by the Company to the Participant. The Committee may in the Award  Agreement impose any additional tax requirements or provisions that the Committee deems necessary or desirable.        15.7  Assignability. Except as otherwise provided herein, Awards may not be transferred, assigned,  pledged, hypothecated or otherwise conveyed or encumbered other than by will or the laws of descent and  distribution. The Committee may, in its discretion, authorize all or a portion of a Award to be granted to a  Participant on terms which permit transfer by such Participant to (i) the spouse (or former spouse), children or  grandchildren of the Participant (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of  such Immediate Family Members, (iii)  a partnership in which the only partners are (1) such Immediate Family  Members and/or (2) entities which are controlled by Immediate Family Members, (iv) an entity exempt from  federal income tax pursuant to Section 501(c)(3) of the Code or any successor provision, or (v) a split interest  trust or pooled income fund described in Section 2522(c)(2) of the Code or any successor provision, provided that  (x) there shall be no consideration for any such transfer, (y) the Award Agreement pursuant to which such Award  is granted must be approved by the Committee and must expressly provide for transferability in a manner  consistent with this Section 15.7, and (z) subsequent transfers of transferred Awards shall be prohibited except  those by will or the laws of descent and distribution.        Following any transfer, any such Award shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that for purposes of Articles 8, 9, 11, 12, 13 and 15 hereof  the term “Participant” shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect to the original Participant, following which, if such Awards are Nonqualified Options or SARs, such Nonqualified Options and SARs shall be exercisable or convertible by the transferee only to the extent and for the periods specified in the Award Agreement. The Committee and the Company shall have no obligation to inform any transferee of an Award of any expiration, termination, lapse or acceleration of such Award. The Company shall have no obligation to register with any federal or state securities commission or agency any Common Shares issuable or issued under a Nonqualified Option or SAR that has been transferred by a Participant under this Section 15.7.        15.8  Use of Proceeds. Proceeds from the sale of Common Shares pursuant to Incentives granted under  this Plan shall constitute general funds of the Company. 

 

                                                                            Exhibit 10.1        15.9  Legend. Restricted Shares electronically registered in a Participant’s name shall note that the shares are Restricted Shares. If a certificate for Restricted Shares is issued to a Participant, the certificate shall bear the following legend, or a similar legend deemed by the Company to constitute an appropriate notice of the provisions hereof:       On the face of the certificate:              “Transfer of these Common Shares is restricted in accordance with conditions printed on the             reverse of this certificate.”        On the reverse:              “The Common Shares are subject to and transferable only in accordance with that certain             Physicians Realty Trust 2013 Equity Incentive Plan, a copy of which is on file at the principal             office of the Company in Milwaukee, Wisconsin. No transfer or pledge of the shares evidenced             hereby may be made except in accordance with and subject to the provisions of said Plan and             Award Agreement. By acceptance of these Common Shares, any holder, transferee or pledgee             hereof agrees to be bound by all of the provisions of said Plan and Award Agreement.”        If a certificate for Common shares is issued to a Participant, the following legend shall be inserted on a certificate evidencing Common Shares issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws:              “Common Shares represented by this certificate have been acquired by the holder for investment             and not for resale, transfer or distribution, have been issued pursuant to exemptions from the             registration requirements of applicable state and federal securities laws, and may not be offered             for sale, sold or transferred other than pursuant to effective registration under such laws, or in             transactions otherwise in compliance with such laws, and upon evidence satisfactory to the             Company of compliance with such laws, as to which the Company may rely upon an opinion of             counsel satisfactory to the Company.”        A copy of this Plan shall be kept on file in the principal office of the Company.                                      ***************

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