Document:

exv10w02

 

Exhibit 10.02

WGL Holdings, Inc.

1999 Incentive Compensation Plan

Performance Share Award Agreement

TO: __________________(Participant)

     You have been selected to be a Participant in the WGL Holdings, Inc. 1999
Incentive Compensation Plan As Amended and Restated on March 5, 2003 (the
“Plan”).* In accordance with the Plan, you have been awarded certain
Performance Shares, as specified below:

Target Number of Performance Shares: _______________(the “Performance Shares”)

Performance Period:_____to______, (the “Performance Period”)

Performance Measure: Annualized Relative Increase in the Total Shareholder
Return (as determined below) compared to the Peer Group shown on Exhibit A to
this Agreement (the “Performance Measure”).

     THIS AGREEMENT, effective _________, provides terms and conditions of an award of
Performance Shares (the “Award”) to you, the Participant named above, pursuant
to the provisions of the Plan, and subject to terms and conditions of this
Agreement.

     The Plan provides a complete description of the terms and conditions
governing the Performance Shares. If there is any inconsistency between the
terms of this Agreement and the terms of the Plan, the Plan’s terms shall
completely supersede and replace the conflicting terms of this Agreement. All
capitalized terms have the meanings ascribed to them in the Plan, unless
otherwise indicated in this Agreement.

     In accordance with this Award and the Plan, the parties hereto agree as follows:

     1. Performance Period. The Performance Period commences on
_________, and ends on _________.

*NOTE: Effective November 1, 2000, WGL Holdings, Inc. assumed all the
obligations of Washington Gas Light Company under the Plan.

This document constitutes part of a prospectus covering securities which have
been registered under the Securities Act of 1933.           [date]

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     2. Value of Performance Shares. Each Performance Share represents and has a
value equal to one share of common stock (the “Shares” or “Stock”) of WGL
Holdings, Inc. (the “Company”).

     3. Performance Shares and Achievement of Total Shareholder Return Performance
Measure. The number of Performance Shares to be earned under this Agreement is
based upon the Company’s Total Shareholder Return as compared to the Total
Shareholder Return of the Company’s Peer Group (as identified in Exhibit A)
during the Performance Period.

     For this purpose, Total Shareholder Return shall be determined as follows:

	 	 	 	 	 
	Total Shareholder

Return

	 	=
	 	Change in Stock Price + Dividends Paid

Beginning Stock Price

     Beginning Stock Price means the average closing prices as reported on New
York Stock Exchange of one share of the Company’s common stock for the thirty
(30) trading days ending immediately prior to the first calendar day of the
Performance Period; Ending Stock Price means the average of the closing prices
on the New York Stock Exchange of one share of the Company’s common stock for
the thirty (30) trading days prior to the end of the Performance Period;
Change in Stock Price means the difference between the Beginning Stock Price
and the Ending Stock Price; and Dividends Paid means the total of all dividends
paid on one (1) share of stock during the Performance Period, provided that
dividends shall be treated as though they are reinvested at the end of each
calendar quarter.

     Following the Total Shareholder Return determination, the Company’s
Percentile Rank shall be determined as follows:

	 	 	 	 	 
	Percentile

Rank

	 	=
	 	                         Company Rank                         

Total number of companies in Peer Group

including the Company

     Company Rank shall be determined by listing from highest Total Shareholder
Return to lowest Total Shareholder Return each company in the Peer Group
(including the Company) and counting up from the company with the lowest Total
Shareholder Return.

     The percent of Target Number of Performance Shares earned shall then be
determined based on the following chart:

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	 	 	Company's	 	Percent of
	 	 	Percentile Rank	 	Target Award
	 	 	 	 	Earned
	 	 	
 
	 
	 	90th	 	200%
	 
	 	70th	 	150%
	Target Rank
	 	50th	 	100%
	 
	 	30th	 	50%
	 
	 	Below 30th	 	0%
	 	 	
 

     Interpolation shall be used to determine the percent of Target Number of
Performance Shares Earned in the event the Company’s Percentile Rank does not
fall directly on one of the ranks listed in the above chart.

     4. Termination
of Employment or Service. Except as provided below, a
Participant is eligible for payment of earned Performance Shares, as specified
in Section 3, only if the Participant’s employment or service with the Company
or its affiliates continues through the end of the Performance Period.

     Retirement, Disability or Death: If a Participant retires, suffers
a Disability, or dies during the Performance Period, the Committee, in its sole
discretion, may determine that the Participant shall be eligible for that
proportion of the number of Performance Shares earned under Section 3 for such
Performance Period that his or her number of full months of participation
during the Performance Period bears to the total number of months in the
Performance Period. In the event of the death of the Participant, the
Participant’s designated beneficiary or estate shall be entitled to the
Performance Shares under the same conditions as would have been applicable to
the Participant. For this purpose, “retirement” shall be defined as
“Retirement” under the Washington Gas Light Company Employees’ Pension Plan.

     “Disability” for purposes of this Award means “Disability” as determined
under the Washington Gas Light Company Employees’ Pension Plan.

     Other Causes of Termination: Unless otherwise provided by the
Committee, termination of employment or service for any reason other than
Retirement, Disability, or death during the Performance Period results in
forfeiture of this entire Award, with no payment to the Participant.

     5. Change of Control. In the event of a Change of Control, as defined in the
Plan, and subject to the limitations of Section 7(f) of the Plan, the Target
Number of Performance Shares shall automatically vest as of the effective date
of the Change of Control, and shall be settled in Stock within as soon as
practicable following the effective date of the Change of Control.

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     6. Dividends. The Participant has no right to any dividends with respect to the
Performance Shares until the Performance Shares are issued by the Company and
delivered to the Participant following the completion of the Performance Period
and achievement of the Performance Measure.

     7. Rights as a Stockholder. The Participant shall have no rights as a
stockholder of the Company with respect to the Performance Shares until the
Performance Shares have been issued and delivered to the Participant.

     8. Form and Timing of Delivery of Performance Shares. Delivery of the earned
Performance Shares to the Participant shall be made in an equal number of
shares of Company Stock. Performance Shares shall be issued to the Participant
as promptly as practicable following the close of the Performance Period if the
applicable Performance Measure is achieved.

     9. Adjustments. Subject to Section 4(c) and 8(e) of the Plan, if the Committee
determines that any recapitalization, forward or reverse split, reorganization,
merger, consolidation, spin-off, combination, repurchase, exchange of stock,
stock or cash dividend, other distribution, liquidation, dissolution or other
similar corporate transaction or event affects the Stock such that an
adjustment is appropriate in order to prevent dilution or enlargement of the
rights of Participants, then the Committee shall, in such manner as it may deem
equitable, adjust any of all of the certain specified terms of Awards,
including this Award. These adjustments may include, among other adjustments,
adjustments to the number and kind of shares of stock relating to this Award
(or, if deemed appropriate, the Committee may make provisions for a cash
payment with respect to this Award). In addition, the Committee is authorized
to make adjustments in the terms and conditions of, and the criteria included
in this Award (including, without limitation, cancellation of outstanding
Awards or substitution of Awards using stock of a successor or other entity) in
recognition of unusual or nonrecurring events (including, among other matters,
events constituting a Change of Control) affecting the Company or any
Subsidiary or the financial statements of the Company or any Subsidiary, or in
response to changes in applicable laws, regulations or accounting principles.

     10. Tax Withholding. The Company may deduct or withhold, or require the
Participant or beneficiary to remit to the Company or its affiliates, an amount
sufficient to satisfy federal, state, and local taxes, domestic or foreign,
required by law or regulation to be withheld with respect to any taxable event
arising as a result of this Agreement.

     11. Share Withholding. Participants may elect to satisfy the tax withholding
requirement, in whole or in part, by having the Company or its affiliates
withhold Shares having a Fair Market Value equal to taxes required to be
withheld on the transaction. All such elections shall be irrevocable, made in
writing, signed by the Participant, and shall be subject to any restrictions or
limitations that the Committee, in its sole discretion, deems appropriate.

     12. Limitations on Transferability. Except as otherwise provided by the Plan or
by the Committee, the Participant’s rights under this Agreement and the right
to Performance Shares under this Agreement may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will
or by the laws of descent and distribution. The

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Participant’s rights under the Plan and this Agreement shall be exercisable
during the Participant’s lifetime only by the Participant or the Participant’s
legal representative.

     13. Beneficiary Designation. The Participant may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under this Agreement is to be distributed in case of his or
her death before he or she receives any or all of such benefit. Each such
designation shall revoke all prior designations by the Participant, shall be in
a form prescribed by the Company, and will be effective only when filed by the
Participant in writing with the Secretary of the Company during the
Participant’s lifetime. In the absence of any such designation, benefits
remaining unpaid at the Participant’s death shall be paid to the Participant’s
estate.

     14. No Right to Continued Employment or Service. Neither the Plan, this Award
nor any action taken hereunder shall be construed as giving the Participant or
any employee or any person the right to be retained in the employ or service of
the Company or any Subsidiary, nor shall it interfere in any way with the right
of the Company or any Subsidiary to terminate the Participant’s employment or
service at any time.

     15. Successors
and Assigns. All obligations of the Company and its affiliates
under the Plan and this Agreement, with respect to this Award, shall be binding
on any successor to the Company, whether the existence of such successor is the
result of a direct or indirect purchase, merger, consolidation or otherwise of
all of the business and/or assets of the Company. See Paragraph 9 of this
Agreement and Sections 4(c) and 8(e) of the Plan regarding certain adjustments
the Committee may make to this Award in the event there is a successor to the
Company.

     16. Administration. This Agreement and the rights of the Participant hereunder
are subject to all the terms and conditions of the Plan, as the Plan may be
amended from time to time, as well as to such rules and regulations as the
Committee may adopt for administration of the Plan. The Committee may impose
such restrictions on any shares delivered pursuant to this Agreement, as it may
deem advisable including, without limitation, restrictions under applicable
Federal or State securities laws and requirements of any stock exchange where
the Stock is traded. The Committee is authorized to administer, construe, and
make all determinations necessary or appropriate to the administration of the
Plan and this Agreement, all of which shall be binding upon the Participant.
Any inconsistency between the Agreement and the Plan shall be resolved in favor
of the Plan.

     17. Amendment
and Termination of the Plan. The Plan may be amended or
terminated by the Board of Directors without stockholder approval unless the
Board seeks to increase the number of shares of Common Stock subject to the
Plan or stockholder approved is required by law or regulation or under the
rules of any stock exchange or automated quotation system on which the Common
Stock is then listed or quoted. Stockholder approval will not be deemed to be
required under laws or regulations that condition favorable tax treatment on
such approval, although the Board may, in its discretion, seek stockholder
approval in any circumstances in which it deems such approval advisable.

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     18. Miscellaneous:

	 	(a)	 	If the Performance Period under this Agreement ends on a
non-trading day, the Performance Period will be deemed to end on
the immediately preceding trading day. If the day for any other
action to be taken under this Agreement falls on a non-business day
for the Company, the period for taking such action will extend
through the Company’s next business day.
	 
	 	(b)	 	The Participant agrees to take all steps necessary to comply
with all applicable provisions of federal and state securities law
in exercising his or her rights under this Agreement.
	 
	 	(c)	 	This Agreement is subject to all applicable laws, rules, and
regulations, and any required approvals by any governmental agencies
or national securities exchanges.
	 
	 	(d)	 	To the extent not preempted by federal law, this Agreement
shall be governed by, and construed in accordance with, the laws of
the State of Virginia.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
effective as of _______________.

	 	 	 	 	 	 	 
	 	 	 	 	WGL Holdings, Inc.	 	 
	Participant	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	
By:	 	 	 	 
	

	 	 	 	

 	 	 
	 	 	
 
	 	 	 	 

Attachment: Exhibit A: Peer Group List

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Exhibit 10.01

 

 

 

 

GUILFORD PHARMACEUTICALS INC.

COMPENSATION PLAN FOR OUTSIDE DIRECTORS

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page
	1.	 	DEFINITIONS	 	1
	2.	 	PURPOSE	 	2
	3.	 	SHARES SUBJECT TO THE PLAN	 	2
	4.	 	DIRECTOR FEES	 	2
	 	 	4.1.	 	Annual Retainer	 	2
	 	 	4.2.	 	Meeting Fees	 	3
	 
	 	 	 	4.2.1.	 	Meetings of Board 	 	3
	 
	 	 	 	4.2.2.	 	Meetings of Committees of Independent Directors 	 	3
	 
	 	 	 	4.2.3.	 	Meetings of the Science Committee 	 	3
	 	 	4.3.	 	Committee Chairman Retainers	 	4
	 	 	4.4.	 	Lead Director Fee	 	4
	5.	 	PAYMENTS IN STOCK UNITS	 	5
	6.	 	VESTING IN STOCK UNITS	 	5
	7.	 	ADMINISTRATION	 	5
	 	 	7.1.	 	Committee	 	5
	 	 	7.2.	 	Rules for Administration	 	5
	 	 	7.3.	 	Committee Action	 	6
	 	 	7.4.	 	Delegation	 	6
	 	 	7.5.	 	Services	 	6
	 	 	7.6.	 	Indemnification	 	6
	8.	 	AMENDMENT AND TERMINATION	 	6
	9.	 	GENERAL PROVISIONS	 	6
	 	 	9.1.	 	Limitation of Rights	 	6
	 	 	9.2.	 	No Rights as Stockholders	 	7
	 	 	9.3.	 	Rights as a Non-Employee Director	 	7
	 	 	9.4.	 	Assignment, Pledge or Encumbrance	 	7
	 	 	9.5.	 	Binding Provisions	 	7
	 	 	9.6.	 	Notices	 	7
	 	 	9.7.	 	Governing Law	 	7
	 	 	9.8.	 	Withholding	 	7
	 	 	9.9.	 	Effective Date	 	8

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1. DEFINITIONS

               To the extent any capitalized words used in this Plan are not defined,
they shall have the definitions stated for them in the Guilford Pharmaceuticals
Inc. 2002 Stock Award and Incentive Plan

	1.1	 	“Board of Directors” or “Board” means the Board of
Directors of the Company.
	 
	1.2	 	“Chairman of the Board” means that member of the Board of
Directors designated by the Board of Directors to be the Chairman.
	 
	1.3	 	“Committee” means the committee comprised of certain designated
members of the Company’s management, which administers the Plan.
	 
	1.4	 	“Common Stock” means the common stock, par value $0.01 per share,
of the Company.
	 
	1.5	 	“Company” means Guilford Pharmaceuticals Inc., a Delaware
corporation, or any successor thereto.
	 
	1.6	 	“Eligible Director” for each Plan Year means a member of the Board
of Directors who is not an employee of the Company or any Subsidiary and
who qualifies as Independent.
	 
	1.7	 	“Fair Market Value” means the closing price of a share of Common
Stock reported on the NASDAQ National Market (“NASDAQ”) on the date Fair
Market Value is being determined, provided that if there is no closing
price reported on such date, the Fair Market Value of a share of Common
Stock on such date shall be deemed equal to the closing price as reported
by NASDAQ for the last preceding date on which sales of shares of Common
Stock were reported. Notwithstanding the foregoing, in the event that the shares
of Common Stock are listed upon more than one established stock
exchange, “Fair Market Value” means the closing price of the shares of
Common Stock reported on the exchange that trades the largest volume of shares
of Common Stock on the date Fair Market Value is being determined.
If the Common Stock is not at the time listed or admitted to trading on a
stock exchange, Fair Market Value means the mean between the lowest
reported bid price and highest reported asked price of the Common Stock on
the date in question in the over-the-counter market, as such prices are
reported in a publication of general circulation selected by the Board and
regularly reporting the market price of Common Stock in such market. If
the Common Stock is not listed or admitted to trading on any stock
exchange or traded in the over-the-counter market, Fair Market Value shall
be as determined in good faith by the Board.

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	1.8	 	“Independent” shall have the meaning it is given under applicable
NASDAQ National Market rules, as amended from time to time.
	 
	1.9	 	“Lead Director” means the Director designated by the Independent
members of the Board of Directors to be their lead director. If the
Chairman of the Board is Independent, then there shall not be a Lead
Director.
	 
	1.10	 	“Payment Period” means each fiscal quarter of the Company.
	 
	1.11	 	“Plan” means the Guilford Pharmaceuticals Inc. Compensation Plan
for Outside Directors as set forth herein and as amended from time to
time.
	 
	1.12	 	“Plan Year” means each fiscal year of the Company.
	 
	1.13	 	“Stock Unit” means a Stock Unit granted pursuant to the Guilford
Pharmaceuticals Inc. 2002 Stock Award and Incentive Plan.
	 
	1.14	 	“Stock Unit Agreement” means the written agreement between the
Company and the Eligible Director that evidences and sets out the terms
and conditions of the Stock Unit.
	 
	1.15	 	“Subsidiary” means any “subsidiary corporation” of the Company
within the meaning of Section 424(f) of the Internal Revenue Code of 1986,
as amended.
	 

	2.	 	PURPOSE

               The purpose of the Plan is to provide reasonable compensation for Eligible
Directors and to increase their equity holdings in the Company so that the
financial interests of the Eligible Directors shall be more closely aligned
with the financial interests of the Company’s stockholders.

	3.	 	SHARES SUBJECT TO THE PLAN

               The shares of Common Stock issuable under the Plan shall be issued
pursuant to the Guilford Pharmaceuticals Inc. 2002 Stock Award and Incentive
Plan.

	4.	 	DIRECTOR FEES

	 	4.1.	 	Annual Retainer

               Each Eligible Director shall be entitled to an annual fee as a retainer
(the “Annual Director Fee”), which is equal in value to twenty-four thousand
dollars ($24,000), and shall be paid in equal quarterly installments. The
Annual Director

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Fee shall be provided in the form of Stock Units for shares of Stock having a
Fair Market Value equal to the Annual Director Fee determined on the last day
of each Payment Period. If an Eligible Director serves on the Board for less
than a full Plan Year, such Eligible Director shall be entitled to a pro-rated
portion of the Annual Director Fee based upon the portion of the Plan Year
during which he or she serves as an Eligible Director. Six months after the
termination of an Eligible Director’s service on the Board of Directors, a
stock certificate for all shares covered by Stock Units granted to the Eligible
Director shall be delivered, free of all restrictions, to the Eligible Director
or the Eligible Director’s beneficiary or estate, as the case may be.

	 	4.2.	 	Meeting Fees

	 	4.2.1.	 	Meetings of Board

               Each Eligible Director shall be entitled to a meeting fee of $2,000 for
each meeting of the Board of Directors attended in person. Each Eligible
Director shall be entitled to a meeting fee of $1,000 for each meeting of the
Board of Directors attended by telephone, including regular monthly telephonic
update meetings, provided, however, that if a meeting attended by telephone
relates to a major corporate action, as designated by the Chairman of the Board
of Directors or the Lead Director, each Eligible Director shall be entitled to
a meeting fee of $2,000 for such meeting attended.

	 	4.2.2.	 	Meetings of Committees of Independent Directors

               Each Eligible Director who is a member of the committees of the Board of
Director set forth below shall be entitled to the following meeting fee for
each committee meeting attended in person or by telephone:

	 	 	 	 	 
	Audit

	 	$	1,500	 
	Compensation

	 	 	1,200	 
	Nominatingand Governance

	 	 	1,200	 

	 	4.2.3.	 	Meetings of the Science Committee

               Each Eligible Director who is a member of the Science Committee shall be
entitled to a meeting fee of $7,500 for each meeting of the Science Committee
attended in person or by telephone. Fifty percent of the Science Committee
meeting fee shall be paid in cash and fifty percent of the Science Committee
meeting fee shall be paid in the form of Stock Units for shares of Stock. Each
Stock Unit shall have a Fair Market Value equal to the Fair Market Value of the
Stock on the last day of the Payment Period during which a Science Committee
meeting occurs. Six

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months after the termination of a member of the Science Committee’s service on the
Board of Directors, a stock certificate for all shares covered by Stock Units
granted to the member as the Science Committee meeting fee shall be delivered,
free of all restrictions, to the member or the member’s beneficiary or estate,
as the case may be.

	 	4.3.	 	Committee Chairman Retainers

               Each Eligible Director who is chairman of a committee of the Board shall
be entitled to an annual committee chairman fee as a retainer in the following
amounts (the “Annual Committee Chairman Fee”):

	 	 	 	 	 
	Audit

	 	$	7,000	 
	Compensation

	 	 	5,000	 
	Nominating and Governance

	 	 	5,000	 

               The Annual Committee Chairman Fee shall be provided in the form of Stock
Units for shares of Stock having a Fair Market Value equal to the Annual
Committee Chairman Fee determined on the last day of the Payment Period during
which the annual meeting of stockholders occurs. If an Eligible Director
becomes a chairman other than immediately following an annual meeting of
stockholders, such Eligible Director shall be entitled to a pro-rated portion
of the Annual Committee Chairman Fee based upon the period of time until the
next annual meeting of stockholders and the Fair Market Value of the shares of
Stock subject to the Stock Units shall be determined on the last day of the
Payment Period during which the Eligible Director became a committee chairman.
Six months after the termination of an Eligible Director’s service on the Board
of Directors, a stock certificate for all shares covered by Stock Units granted
to the Eligible Director as the Annual Committee Chairman Fee shall be
delivered, free of all restrictions, to the Eligible Director or the Eligible
Director’s beneficiary or estate, as the case may be.

	 	4.4.	 	Lead Director Fee

               If an Eligible Director is designated the Lead Director or Chairman of the
Board, then he or she shall be entitled to a fee as a retainer in the amount of
$7,000 (the “Lead Director Fee”). The Annual Committee Chairman Fee shall be
paid in the form of Stock Units for shares of Stock having a Fair Market Value
equal to the Lead Director Fee determined on the last day of the Payment Period
during which the annual meeting of stockholders occurs. If an Eligible
Director serves as the Lead Director, or Chairman, as the case may be, for less
than a full Plan Year, such Eligible Director shall be entitled to a pro-rated
portion of the Lead Director Fee based upon the portion of the Plan Year that
he or she serves as Lead Director or Chairman of the Board, and the Fair Market
Value of the shares of Stock subject to

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the Stock Units shall be determined on the last day of the Payment Period during
which the Eligible Director became the Lead Director or Chairman. Six months
after the termination of an Eligible Director’s service on the Board of
Directors, a stock certificate for all shares covered by Stock Units granted to
the Eligible Director as the Lead Director Fee shall be delivered, free of all
restrictions, to the Eligible Director or the Eligible Director’s beneficiary
or estate, as the case may be.

	5.	 	PAYMENTS IN STOCK UNITS

     Payments prescribed by this Plan that are to be made in cash may instead
be made in Stock Units. If an Eligible Director want to receive the cash
payments to which he or she may be entitled under the Plan in Stock Units, the
Eligible Director shall inform the Committee of this election in a manner
determined by the Committee (the “Stock Unit Election”), provided that, the
Stock Unit Election shall (1) be made only once during each Plan Year and (2)
be made with respect to all, but not less than all, of the cash payments to
which an Eligible Director may be entitled to receive. Stock Units issued
pursuant to this Section 5 shall have a Fair Market Value equal to the Fair
Market Value of the Stock on the last day of the Payment Period for which the
particular payment is being made. Six months after the termination of an
Eligible Director’s service on the Board of Directors, a stock certificate for
all shares covered by Stock Units granted to the Eligible Director shall be
delivered, free of all restrictions, to the Eligible Director or the Eligible
Director’s beneficiary or estate, as the case may be.

	6.	 	VESTING IN STOCK UNITS

               Stock Units shall be 100% vested at all times.

	7.	 	ADMINISTRATION

	 	7.1.	 	Committee

               The general administration of the Plan and the responsibility for carrying
out its provisions shall be placed in the Committee. The Committee shall
consist of at least two members appointed from time to time by the Compensation
Committee of the Board of Directors to serve at the pleasure thereof. The
initial members of the Committee shall consist of the Chief Financial Officer
and the General Counsel of the Company. Any member of the Committee may resign
by delivering a written resignation to the Company, and may be removed at any
time by action of the Board of Directors.

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	 	7.2.	 	Rules for Administration

               Subject to the limitations of the Plan, the Committee may from time to
time establish such rules and procedures for the administration and
interpretation of the Plan and the transaction of its business as the Committee
may deem necessary or appropriate. The determination of the Committee as to
any disputed question relating to the administration and interpretation of the Plan shall be
conclusive.

	 	7.3.	 	Committee Action

               Any act which the Plan authorizes or requires the Committee to do may be
done by a majority of its members. The action of such majority, expressed from
time to time by a vote at a meeting (i) in person, (ii) by telephone or other
means by which all members can hear one another or (iii) in writing without a
meeting shall constitute the action of the Committee and shall have the same
effect for all purposes as if assented to by all members of the Committee at
the time in office.

	 	7.4.	 	Delegation

               The members of the Committee may authorize one or more of their number to
execute or deliver any instrument, make any payment or perform any other act
which the Plan authorizes or requires the Committee to do.

	 	7.5.	 	Services

               The Committee may employ or retain agents to perform such clerical,
accounting and other services as it may require in carrying out the provisions
of the Plan.

	 	7.6.	 	Indemnification

               The Company shall indemnify and save harmless each member of the Committee
against all expenses and liabilities arising out of membership on the
Committee, other than expenses and liabilities arising from the such member’s
own gross negligence or willful misconduct, as determined by the Board of
Directors.

	 	8.	 	AMENDMENT AND TERMINATION

               The Company, by action of the Board of Directors or the Administrative
Committee, may at any time or from time to time modify or amend any or all of
the provisions of the Plan, or may at any time terminate the Plan. No such
action shall adversely affect the accrued rights of any Eligible Director or
Science Committee member hereunder without that person’s consent thereto.

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9. GENERAL PROVISIONS

	 	9.1.	 	Limitation of Rights

               No Eligible Director shall have any right to any payment or benefit
hereunder except to the extent provided in the Plan.

	 	9.2.	 	No Rights as Stockholders

               Nothing contained in this Plan shall be construed as giving any Eligible
Director or Science Committee member rights as a stockholder of the Company.

	 	9.3.	 	Rights as a Non-Employee Director

               Nothing contained in this Plan shall be construed as giving any Eligible
Director or Science Committee member a right to be retained in such capacity by
the Company.

	 	9.4.	 	Assignment, Pledge or Encumbrance

               No assignment, pledge or other encumbrance of any payments or benefits
under the Plan shall be permitted or recognized and, to the extent permitted by
law, no such payments or benefits shall be subject to legal process or
attachment for the payment of any claim of any person entitled to receive the
same, except to the extent such assignment, pledge or other encumbrance is in
favor of the Company .

	 	9.5.	 	Binding Provisions

               The provisions of this Plan shall be binding upon each Eligible Director
and Science Committee member, upon the Company, upon the Eligible Director’s
and Science Committee member’s heirs, executors and administrators and upon the
successors and assigns of the Eligible Director, the Science Committee member
and the Company.

	 	9.6.	 	Notices

               Any notice given by an Eligible Director or Science Committee member
pursuant to the Plan shall be in writing to the Committee or to such
representative thereof as may be designated by the Committee for such purpose
and shall be deemed to have been made or given on the date received by the
Committee or its representative.

7

 

	 	9.7.	 	Governing Law

               The validity and interpretation of the Plan and of any of its provisions
shall be construed under the laws of the State of Delaware without giving
effect to the choice of law provisions thereof.

	 	9.8.	 	Withholding

               The Company shall have the right to deduct from the amounts distributable
hereunder any federal, state or local taxes required by law to be withheld with
respect to such distributions, and such additional amounts of
withholding as are reasonably requested by the Eligible Director or Science
Committee member.

	 	9.9.	 	Effective Date

               This Plan shall be effective commencing with the calendar quarter ending
September 30, 2004.

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