Document:

EXHIBIT 10.1

 

SUBLEASE TERMINATION AGREEMENT

 

                                                THIS SUBLEASE
TERMINATION AGREEMENT (this “Agreement”)
is made and entered into as of August 29, 2003 by and between RADIAN GUARANTY
INC., a Pennsylvania corporation (“Radian”),
and CLICK COMMERCE, INC., a Delaware corporation (“Click”).

 

W  I  T
N  E  S  S  E  T  H:

 

                                                WHEREAS,
Radian, as sublessor, and Click, as sublessee, entered into that certain
Sublease Agreement dated January 14, 2000 (the “Sublease”) pursuant to which Radian subleased to Click certain
premises described therein consisting of 29,520 square feet on the 49th
floor (the “Premises”) within that
certain building commonly known as 200 East Randolph Drive, Chicago, Illinois;
and

 

                                                WHEREAS, as of
the date of this Agreement, Click owes Radian rental payments for the months of
June, July and August, 2003 in the total amount of $213,060.60.

 

                                                WHEREAS, Radian
and Click wish to settle Radian’s actual and potential claims against Click
consensually to avoid the costs of litigation and to terminate their respective
rights, duties and obligations under the Sublease, but only upon the terms and
conditions herein set forth.

 

                                                NOW, THEREFORE,
the parties hereto, in consideration of the foregoing recitals, which are
hereby incorporated as if fully set forth herein, and the mutual agreements
hereinafter set forth and other good and valuable consideration, mutually agree
and covenant as follows:

 

                                                1.                                       Termination of
Sublease.  Except as
expressly set forth herein, the respective rights, duties and obligations of
Radian and Click under the Sublease shall terminate and the Sublease shall be
of no further force or effect as of September 2, 2003 (the “Termination Date”). Click agrees to vacate
and surrender the Premises on or before the Termination Date in a condition
acceptable to Radian.

 

                                                2.                                       Settlement of
Amounts Due.

 

                                                (a)                                  Notwithstanding
anything to the contrary contained herein, this Agreement is expressly made
subject to Radian’s receipt of the sum of $900,000.00 (the “Settlement Amount”) no later than 4:00 p.m.
(Eastern time) on the Termination Date (the “Payment
Deadline”), payable as follows:

 

                                                (i)                                     $700,000 by
wire transfer to the following account:

 

                                                Bank Name:
First Union National Bank

ABA Number: 031-201-467

Bank Account Number: 2030000861563

Company Name: Radian Guaranty Inc.

 

 

(ii)                                  $200,000 by
Radian’s successful exercise of that certain Letter of Credit No. 60751185 with
Bank One, NA (the “Letter of Credit”)
being held as a security deposit under the Sublease. If required, Click will
assist and fully cooperate with Radian in drawing on the full amount of the
Letter of Credit, which assistance shall include, without limitation, issuing a
replacement letter of credit if necessary. If, despite the best efforts of
Radian and Click, Radian has not yet received the full proceeds of the Letter
of Credit by the Payment Deadline, then Click shall cause the payment of
$200,000 to be made within one (1) business day following written request by
Radian for such payment. Radian shall return to Click the original Letter of Credit
promptly upon confirmation that the full amount of the Letter of Credit have
been received by wire transfer pursuant to the directions set forth in Section
2(a)(i) above.

 

                                                (b)                                 As further
consideration for Radian’s agreement to terminate the Sublease, Click hereby
agrees to convey all of its right, title and interest in all moveable furniture
and office equipment located at the Premises as of the date hereof
(collectively, the “Furniture”)
free and clear of any liens, claims or encumbrances by delivering to Radian on
or before the Payment Deadline a Bill of Sale in the form attached hereto as Exhibit
A.

 

                                                (c)                                  Subject to
Click’s obligations under Section 3 below, payment of the complete Settlement
Amount and transfer of the Furniture by Click to Radian shall be in full and
complete satisfaction of Click’s obligations under the Sublease. In the event
that Click fails to pay the Settlement Amount or transfer the Furniture to
Radian by the Payment Deadline (subject to such extensions as Radian may agree
to in writing in its sole discretion with respect to drawing on the Letter of
Credit), this Agreement shall be deemed null and void, the Sublease shall
continue in full force and effect, and Radian shall have all rights and
remedies against Click as provided under the Sublease and at law and equity.

 

                                                3.                                       Waiver and
Release; Indemnity.

 

                                                (a)                                  Click hereby
waives all claims against and releases Radian, its parent company, subsidiaries
and affiliates and the officers, directors, employees, agents, representatives,
successors and assigns of each of them (the “Radian
Parties”) from any and all costs, expenses, claims, actions, causes
of actions, suits, debts, controversies, judgments, obligations, demands,
damages, liens and liabilities whatsoever, in law or equity, known or unknown,
now existing or hereafter arising out of, under, related to, or in connection
with the Premises and the Sublease.

 

                                                (b)                                 Click shall
indemnify, defend and hold harmless the Radian Parties from and against any and
all costs, claims, actions, damages, demands, expenses (including reasonable
attorneys’ and consultants’ fees), injuries, judgments, liabilities, penalties,
losses and suits, suffered, sustained or incurred by the Radian Parties, or any
of them, in connection with, or as a result of, directly or indirectly, in
whole or in part, the use or occupancy of the Premises by Click or any act or
omission of Click, its licensees, servants, agents, employees, invitees,
guests, suppliers or contractors. The scope of this indemnification shall, at Radian’s
option, include, but not be limited to, defending or resisting, with attorneys
reasonably satisfactory to Radian, any

 

 

actions suit, claim, demand or proceeding
that may be filed, instituted or brought against Radian or to which Radian may
be made a party.

 

                                                4.                                       Repayment.  In the event that Radian is required by law
to (i) repay the Settlement Amount, or any portion thereof, or (ii) return the
Furniture or the value thereof, or any portion thereof, to Click, any future
bankruptcy estate of Click, or trustee thereof, or any other party challenging
this Agreement, (x) Radian shall have the right to enforce against Click the
payment obligation set forth in Section 2 above; and (y) this Agreement shall
be deemed null and void and Radian shall have all rights and remedies against
Click at law or in equity.

 

                                                5.                                       Authority.  Click and Radian, by their execution of this
Agreement, each represent and warrant to the other that (i) it is fully
authorized to enter into and perform this Agreement without any further or
other consent or authorization from any person or entity and (ii) that the
person signing on its behalf has authority to bind it to the terms of this
Agreement.

 

                                                6.                                       Successors.  This Agreement and all provisions hereof
shall extend to, be obligatory upon and inure to the benefit of the respective
successors and assigns of the parties hereto.

 

                                                7.                                       Severability.  In, the event that any agreement or covenant
contained in this Agreement shall become unenforceable or void as a matter of
law, all other agreements and covenants contained herein shall continue to be
binding upon Radian and Click.

 

                                                8.                                       Controlling Law.  This Agreement shall be construed in
accordance with and governed by the laws of the State of Illinois.

 

                                                9.                                       Counterparts.  This Agreement may be signed in one or more
counterparts, each of which shall be deemed an original, and all of which, when
taken together, shall constitute one Agreement.

 

 

[Signature
page to follow]

 

 

                                                IN WITNESS
WHEREOF, Radian and Click have caused this Agreement to be executed as of the
day and year first above written.

 

	
   

  	
  RADIAN:

  
	
   

  	
   

  	
   

  
	
   

  	
  RADIAN GUARANTY INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOHN J. CALAMARI

  
	
   

  	
  Name:

  	
  John J. Calamari

  
	
   

  	
  Title:

  	
  Senior Vice President,
  Corporate Controller

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CLICK:

  
	
   

  	
   

  	
   

  
	
   

  	
  CLICK COMMERCE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JUSTIN C. DEARBORN

  
	
   

  	
  Name:

  	
  Justin C. Dearborn

  
	
   

  	
  Title:

  	
  VP Corp. Legal Affairs
  & HR

  

 

 

 

EXHIBIT A

 

BILL
OF SALE

 

                                                Seller, Click
Commerce, Inc., a Delaware corporation (“Seller”),
in consideration of Ten and no/100 ($10.00) Dollars, receipt whereof is hereby
acknowledged, does hereby sell, assign, transfer and set over to Radian
Guaranty Inc., a Pennsylvania corporation (“Buyer”),
any and all existing moveable furniture and office equipment located on the
premises commonly known as 200 East Randolph Drive, 49th Floor,
Chicago, Illinois (the “Property”)
as of the date hereof.

 

                                                Seller hereby
represents and warrants to Buyer that Seller is the absolute owner of the
Property, that the Property is free and clear of all liens, charges and
encumbrances, and that Seller has full right, power and authority to sell said
personal property and to make this bill of sale.  All warranties of quality,
fitness and merchantability are hereby excluded.

 

                                                IN WITNESS
WHEREOF, Seller has caused this bill of sale to be signed in its name by its
officers thereunto duly authorized this 2nd day of September, 2003.

 

	
   

  	
  CLICK COMMERCE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JUSTIN C. DEARBORN

  
	
   

  	
  Name:

  	
  Justin C. Dearborn

  
	
   

  	
  Title:

  	
  VP Corp. Legal Affairs
  & HREXHIBIT 10.7

 

BROOKLINE BANCORP, INC.

 

2003 RECOGNITION AND RETENTION PLAN

 

1.                                      Establishment of
the Plan

 

Brookline Bancorp, Inc. (the “Company”) hereby
establishes the Brookline Bancorp, Inc. 2003 Recognition and Retention Plan
(the “Plan”) upon the terms and conditions hereinafter stated in the Plan.

 

2.                                      Purpose of the
Plan

 

The purpose of the Plan is to advance the interests of
the Company and its stockholders by providing certain current and prospective
Key Employees and Outside Directors of the Company and its Affiliates, upon
whom the continued success of the Company most depends, with a flexible and
comprehensive plan that permits the granting of incentive stock awards as a
means of enhancing and encouraging the recruitment and retention of such individuals.

 

3.                                      Definitions

 

The following words and phrases when used in this Plan
with an initial capital letter, unless the context clearly indicates otherwise,
shall have the meanings set forth below. 
Wherever appropriate, the masculine pronoun shall include the feminine
pronoun and the singular shall include the plural:

 

“Affiliate”
means any “parent corporation” or “subsidiary corporation” of the Company or
the Bank, as such terms are defined in Section 424(e) and (f),
respectively, of the Code, or a successor to a parent corporation or subsidiary
corporation.

 

“Award”
means the grant by the Committee of Restricted Stock, as provided in the Plan.

 

“Bank”
means Brookline Bank, or a successor corporation.

 

“Beneficiary”
means the person or persons designated by a Recipient to receive any benefits
payable under the Plan in the event of such Recipient’s death.  Such person or persons shall be designated
in writing on forms provided for this purpose by the Committee and may be
changed from time to time by similar written notice to the Committee.  In the absence of a written designation, the
Beneficiary shall be the Recipient’s surviving spouse, if any, or if none, his
estate.

 

“Board”
or “Board of Directors” means the
Board of Directors of the Company or an Affiliate, as applicable.  For purposes of Section 4 of the Plan,
“Board” shall refer solely to the Board of the Company.

 

“Cause”
means personal dishonesty, willful misconduct, any breach of fiduciary duty
involving personal profit, intentional failure to perform stated duties, or the
willful violation of any law, rule or regulation (other than traffic violations
or similar offenses) or a final cease-and-desist order, any of which is
committed in connection with the performance by the Key Employee or Director of
his or her duties for the Company or an Affiliate.

 

“Change in Control”
of the Company means a change in control of a nature that: (i) would be
required to be reported in response to Item 1(a) of the current report on Form
8-K, as in effect on the date hereof, pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 (the “Exchange Act”); or (ii) results in a
Change in Control of the Company within the meaning of the Home Owners’ Loan
Act, as amended, and applicable rules and regulations promulgated thereunder
(collectively, the “HOLA”) as in effect at the time of the Change in Control;
or (iii) without limitation such a Change in Control shall be deemed to have
occurred at such time as (a) any “person” (as the term is used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the “beneficial owner” (as

 

 

defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 25% or more
of the combined voting power of the Company’s outstanding securities except for
any securities purchased by the Bank’s employee stock ownership plan or trust;
or (b) individuals who constitute the Board on the date hereof (the “Incumbent
Board”) cease for any reason to constitute at least a majority thereof, provided that any person becoming a
director subsequent to the date hereof whose election was approved by a vote of
at least three-quarters of the directors comprising the Incumbent Board, or
whose nomination for election by the Company’s stockholders was approved by the
same Nominating Committee serving under an Incumbent Board, shall be, for
purposes of this clause (b), considered as though he were a member of the
Incumbent Board; or (c) a plan of reorganization, merger, consolidation, sale
of all or substantially all the assets of the Company or similar transaction in
which the Company is not the surviving institution occurs; or (d) a proxy
statement soliciting proxies from stockholders of the Company, by someone other
than the current management of the Company, seeking stockholder approval of a
plan of reorganization, merger or consolidation of the Company or similar
transaction with one or more corporations as a result of which the outstanding
shares of the class of securities then subject to the Plan are to be exchanged
for or converted into cash or property or securities not issued by the Company;
or (e) a tender offer is made for 25% or more of the voting securities of the
Company and the shareholders owning beneficially or of record 25% or more of the
outstanding securities of the Company have tendered or offered to sell their
shares pursuant to such tender offer and such tendered shares have been
accepted by the tender offeror.

 

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

 

“Committee”
means a Committee of the Board consisting of either (i) at least two
Non-Employee Directors of the Company, or (ii) the entire Board of the Company.

 

“Common Stock”
means shares of the common stock of the Company, par value $.01 per share.

 

“Company”
means Brookline Bancorp, Inc., the stock holding company of the Bank, or a
successor corporation.

 

“Continuous Service”
means employment as a Key Employee and/or service as an Outside Director
without any interruption or termination of such employment and/or service.  Continuous Service shall also mean a
continuation as a member of the Board of Directors following a cessation of
employment as a Key Employee.  In the
case of a Key Employee, employment shall not be considered interrupted in the
case of sick leave, military leave or any other leave of absence approved by
the Bank or in the case of transfers between payroll locations of the Bank or
between the Bank, its parent, its subsidiaries or its successor.

 

“Director”
means a member of the Board.

 

“Disability”
means the permanent and total inability by reason of mental or physical
infirmity, or both, of an employee to perform the work customarily assigned to
him, or of a Director to serve as such. 
Additionally, in the case of an employee, a medical doctor selected or
approved by the Board must advise the Committee that it is either not possible
to determine when such Disability will terminate or that it appears probable
that such Disability will be permanent during the remainder of such employee’s
lifetime.

 

“Effective Date”
means the date of, or a date determined by the Board of Directors following,
approval of the Plan by the Company’s stockholders.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“Key Employee”
means any person who is currently employed by the Company or an Affiliate who
is chosen by the Committee to participate in the Plan.

 

“Non-Employee
Director” means, for purposes of the Plan, a Director who (a) is not
employed by the Company or an Affiliate; (b) does not receive compensation
directly or indirectly as a consultant (or in any other capacity than as a
Director) greater than $60,000; (c) does not have an interest in a transaction
requiring disclosure

 

2

 

under Item 404(a) of Regulation S-K; or (d) is not
engaged in a business relationship for which disclosure would be required
pursuant to Item 404(b) of Regulation S-K.

 

“Normal Retirement”
means for a Key Employee, retirement at the normal or early retirement date set
forth in the Bank’s Employee Stock Ownership Plan, or any successor plan.  Normal Retirement for an Outside Director
means a cessation of service on the Board of Directors for any reason other
than removal for Cause, after reaching 65 years of age and maintaining at least
10 years of Continuous Service.

 

“Outside Director”
means a Director of the Company or an Affiliate who is not an employee of the
Company or an Affiliate.

 

“Recipient”
means a Key Employee or Outside Director of the Company or its Affiliates who
receives or has received an Award under the Plan.

 

“Restricted Period”
means the period of time selected by the Committee for the purpose of
determining when restrictions are in effect under Section 6 with respect
to Restricted Stock awarded under the Plan.

 

“Restricted Stock”
means shares of Common Stock that have been contingently awarded to a Recipient
by the Committee subject to the restrictions referred to in Section 6, so
long as such restrictions are in effect.

 

4.                                      Administration of
the Plan.

 

4.1          Role
of the Committee.  The Plan
shall be administered and interpreted by the Committee, which shall have all of
the powers allocated to it in the Plan. 
The interpretation and construction by the Committee of any provisions
of the Plan or of any Award granted hereunder shall be final and binding.  The Committee shall act by vote or written
consent of a majority of its members. 
Subject to the express provisions and limitations of the Plan, the
Committee may adopt such rules and procedures as it deems appropriate for the
conduct of its affairs.  The Committee
shall report its actions and decisions with respect to the Plan to the Board at
appropriate times.

 

4.2          Role
of the Board.  The members of
the Committee shall be appointed or approved by, and will serve at the pleasure
of, the Board.  The Board may in its
discretion from time to time remove members from, or add members to, the
Committee.  The Board shall have all of
the powers allocated to it in the Plan, may take any action under or with respect
to the Plan that the Committee is authorized to take, and may reverse or
override any action taken or decision made by the Committee under or with
respect to the Plan, provided, however,
that except as provided in Section 6.2, the Board may not revoke any Award
except in the event of revocation for Cause or with respect to unearned Awards
in the event the Recipient of an Award voluntarily terminates employment with
the Bank prior to Normal Retirement.

 

4.3          Plan
Administration Restrictions. All transactions involving an Award
shall:

 

(a)           be
approved by the Company’s full Board or by the Committee; or

 

(b)                                 be
approved, or ratified, in compliance with Section 14 of the Exchange Act,
by either the affirmative vote of the holders of a majority of the shares present,
or represented and entitled to vote at a meeting duly held in accordance with
the laws under which the Company is incorporated or the written consent of the
holders of a majority of the securities of the issuer entitled to vote provided
that such ratification occurs no later than the date of the next annual meeting
of shareholders; or

 

(c)                                  result
in the acquisition of Common Stock that must be held by the Recipient for a
period of six months following the date of such acquisition, unless forfeited sooner.

 

4.4          Limitation
on Liability.  No member of
the Board or the Committee shall be liable for any determination made in good
faith with respect to the Plan or any Awards granted under it.  If a member of the Board or the Committee is
a party or is threatened to be made a party to any threatened, pending or
completed action, suit

 

3

 

or proceeding, whether civil, criminal, administrative
or investigative, by reason of anything done or not done by him in such
capacity under or with respect to the Plan, the Bank or the Company shall
indemnify such member against expense (including attorneys’ fees), judgments,
fines and amounts paid in settlement actually and reasonably incurred by him in  connection with such action, suit or
proceeding if he acted in good faith and in a manner he reasonably believed to
be in the best interests of the Bank and the Company and, with respect to any
criminal action or proceeding, had no reasonable cause to believe his conduct was
unlawful.

 

5.                                      Eligibility;
Awards

 

5.1          Eligibility.  Key Employees and Outside Directors are
eligible to receive Awards.

 

5.2          Awards
to Key Employees and Outside Directors.  The Committee may determine which of the Key Employees and
Outside Directors referenced in Section 5.1 will be granted Awards and the
number of shares covered by each Award; provided,
however, that in no event shall any Awards be made that will violate
the Bank’s Charter and Bylaws, the Company’s Certificate of Incorporation and
Bylaws, or any applicable federal or state law or regulation.  Shares of Restricted Stock that are awarded
by the Committee shall, on the date of the Award, be registered in the name of
the Recipient and transferred to the Recipient, in accordance with the terms
and conditions established under the Plan. 
The aggregate number of shares that shall be issued under the Plan is
1,250,000.  Awards issued under the Plan
may be issued by the Company from authorized but unissued shares, treasury
shares or acquired by the Company in open market purchases.

 

In the event Restricted Stock is forfeited for any
reason, the Committee, from time to time, may determine which of the Key
Employees and Outside Directors will be granted additional Awards to be awarded
from forfeited Restricted Stock.

 

In selecting those Key Employees and Outside Directors
to whom Awards will be granted and the amount of Restricted Stock covered by
such Awards, the Committee shall consider such factors as it deems relevant,
which factors may include, among others, the position and responsibilities of
the Key Employees and Outside Directors, the length and value of their services
to the Bank and its Affiliates, the compensation paid to the Key Employees or
fees paid to the Outside Directors, and the Committee may request the written
recommendation of the Chief Executive Officer and other senior executive
officers of the Bank, the Company and its Affiliates or the recommendation of
the full Board.  All allocations by the
Committee shall be subject to review, and approval or rejection, by the Board.

 

No Restricted Stock shall be earned unless the
Recipient maintains Continuous Service with the Bank or an Affiliate until the
restrictions lapse.

 

5.3          Manner
of Award.  As promptly
as practicable after a determination is made pursuant to Section 5.2 to
grant an Award, the Committee shall notify the Recipient in writing of the
grant of the Award, the number of shares of Restricted Stock covered by the
Award, and the terms upon which the Restricted Stock subject to the Award may
be earned.  Upon notification of an
Award of Restricted Stock, the Recipient shall execute and return to the
Company a restricted stock agreement (the “Restricted Stock Agreement”) setting
forth the terms and conditions under which the Recipient shall earn the
Restricted Stock, together with a stock power or stock powers endorsed in
blank.  Thereafter, the Recipient’s
Restricted Stock and stock power shall be deposited with an escrow agent
specified by the Company (“Escrow Agent”) who shall hold such Restricted Stock
under the terms and conditions set forth in the Restricted Stock
Agreement.  Each certificate in respect
of shares of Restricted Stock Awarded under the Plan shall be registered in the
name of the Recipient.

 

5.4          Treatment
of Forfeited Shares.  In the
event shares of Restricted Stock are forfeited by a Recipient, such shares
shall be returned to the Company and shall be held and accounted for pursuant
to the terms of the Plan until such time as the Restricted Stock is re-awarded
to another Recipient, in accordance with the terms of the Plan and the
applicable state and federal laws, rules and regulations.

 

4

 

6.                                      Terms and
Conditions of Restricted Stock

 

The Committee shall have full and complete authority,
subject to the limitations of the Plan, to grant awards of Restricted Stock to
Key Employees and Outside Directors and, in addition to the terms and
conditions contained in Sections 6.1 through 6.8, to provide such other terms
and conditions (which need not be identical among Recipients) in respect of
such Awards, and the vesting thereof, as the Committee shall determine.

 

6.1          General
Rules.  At the time of an
Award of Restricted Stock, the Committee shall establish for each Participant a
Restricted Period during which or at the expiration of which (as the Committee
shall determine and provide for in the Restricted Stock Agreement referred to
in Section 5.3), the Shares awarded as Restricted Stock shall vest,
including the terms of any acceleration of vesting of Restricted Stock.  The Committee shall have the authority, in
its discretion, to accelerate the time at which any or all of the restrictions
shall lapse with respect to a Restricted Stock Award, or to extend the time
over which such restrictions shall lapse, or to remove any or all of such
restrictions.  Subject to any such other
terms and conditions as the Committee shall provide with respect to Awards,
shares of Restricted Stock may not be sold, assigned, transferred (within the
meaning of Code Section 83), pledged or otherwise encumbered by the
Recipient, except as hereinafter provided, during the Restricted Period.

 

6.2          Continuous
Service; Forfeiture.  Except
as provided in Section 6.3, if a Recipient ceases to maintain Continuous
Service for any reason (other than death, Disability, Change in Control or
Normal Retirement), unless the Committee shall otherwise determine, all shares
of Restricted Stock theretofore awarded to such Recipient and which at the time
of such termination of Continuous Service are subject to the restrictions
imposed by Section 6.1 shall upon such termination of Continuous Service
be forfeited.  Any stock dividends or
declared but unpaid cash dividends attributable to such shares of Restricted
Stock shall also be forfeited.

 

6.3          Exception
for Termination Due to Death, Disability, Normal Retirement or following a
Change in Control. 
Notwithstanding the general rule contained in Section 6.1, unless
otherwise provided in the Restricted Stock Agreement referred to in
Section 5.3, Restricted Stock awarded to a Recipient whose employment
with, or service on the Board of, the Company or an Affiliate terminates due to
death, Disability, Normal Retirement or following a Change in Control shall be
deemed earned as of the Recipient’s last day of employment with the Company or
an Affiliate, or last day of service on the Board of the Company or an
Affiliate; provided that
Restricted Stock awarded to a Key Employee who at any time also serves as a
Director, shall not be deemed earned until both employment and service as a
Director have been terminated.

 

6.4          Revocation
for Cause.  Notwithstanding
anything hereinafter to the contrary, the Board may by resolution immediately
revoke, rescind and terminate any Award, or portion thereof, previously awarded
under the Plan, to the extent Restricted Stock has not been delivered by the
Escrow Agent to the Recipient, whether or not yet earned, in the case of a Key
Employee whose employment is terminated by the Company or an Affiliate or an
Outside Director whose service is terminated by the Company or an Affiliate for
Cause or who is discovered after termination of employment or service on the
Board to have engaged in conduct that would have justified termination for
Cause.

 

6.5          Restricted
Stock Legend.  Each
certificate in respect of shares of Restricted Stock awarded under the Plan
shall be registered in the name of the Recipient and deposited by the
Recipient, together with a stock power endorsed in blank, with the Escrow Agent
and shall bear the following (or a similar) legend:

 

“The transferability of this certificate and the shares of stock
represented hereby are subject to the terms and conditions (including
forfeiture) contained in the Brookline Bancorp, Inc. 2003 Recognition and Retention
Plan.  Copies of such Plan are on file
in the offices of the Secretary of Brookline Bancorp, Inc., 160 Washington
Street, Brookline, Massachusetts 02445.”

 

6.6          Payment
of Dividends and Return of Capital. 
After an Award has been granted but before such Award has been earned,
the Recipient shall receive any cash dividends paid with respect to such
shares, or shall share in any pro-rata return of capital to all shareholders
with respect to the Common Stock.  Stock
dividends declared by the Company and paid on Awards that have not yet been
earned shall be subject to the same restrictions as the Restricted Stock and
the certificate(s) or other instruments representing or evidencing such shares
shall be

 

5

 

legended in the manner provided in Section 6.5
and shall be delivered to the Escrow Agent for distribution to the Recipient
when the Restricted Stock upon which such dividends were paid are earned.  Unless the Recipient has made an election
under Section 83(b) of the Code, cash dividends or other amounts so paid
on shares that have not yet been earned by the Recipient shall be treated as
compensation income to the Recipient when paid.  If dividends are paid with respect to shares of Restricted Stock
under the Plan that have been forfeited and returned to the Company or to a
trust established by the Company to hold issued and unawarded or forfeited
shares, the Committee shall return such dividends to the Company.

 

6.7          Voting
of Restricted Shares.  After
an Award has been granted, the Recipient, as conditional owner of the
Restricted Stock, shall have the right to vote such shares.

 

6.8          Delivery
of Earned Shares.  At the
expiration of the restrictions imposed by Section 6.1, the Escrow Agent
shall redeliver to the Recipient (or where the relevant provision of
Section 6.3 applies in the case of a deceased Recipient, to his
Beneficiary) the certificate(s) and any remaining stock power deposited with it
pursuant to Section 5.3 and the shares represented by such certificate(s)
shall be free of the restrictions referred to in Section 6.1.

 

7.                                      Adjustments Upon
Changes in Capitalization

 

In the event of any change in the outstanding shares
subsequent to the Effective Date by reason of any reorganization, recapitalization,
stock split, stock dividend, combination or exchange of shares, or any merger,
consolidation or any change in the corporate structure or shares of the
Company, without receipt or payment of consideration by the Company, the
maximum aggregate number and class of shares as to which Awards may be granted
under the Plan shall be appropriately adjusted by the Committee, whose
determination shall be conclusive.  Any
shares of stock or other securities received as a result of any of the
foregoing by a Recipient shall be subject to the same restrictions and the
certificate(s) or other instruments representing or evidencing such shares or
securities shall be legended and deposited with the Escrow Agent in the manner
provided in Section 6.5.

 

8.                                      Assignments and Transfers

 

No Award nor any right or interest of a Recipient
under the Plan in any instrument evidencing any Award under the Plan may be
assigned, encumbered or transferred (within the meaning of Code
Section 83) except, in the event of the death of a Recipient, by will or
the laws of descent and distribution until such Award is earned.

 

9.                                      Key Employee
Rights Under the Plan

 

No Key Employee shall have a right to be selected as a
Recipient nor, having been so selected, to be selected again as a Recipient and
no Key Employee or other person shall have any claim or right to be granted an
Award under the Plan or under any other incentive or similar plan of the Bank
or any Affiliate.  Neither the Plan nor
any action taken thereunder shall be construed as giving any Key Employee any
right to be retained in the employ of the Bank or any Affiliate.

 

10.                               Outside Director Rights
Under the Plan

 

Neither the Plan nor any action taken thereunder shall
be construed as giving any Outside Director any right to be retained in the
service of the Bank or any Affiliate.

 

11.                               Withholding Tax

 

Upon the termination of the Restricted Period with
respect to any shares of Restricted Stock (or at any such earlier time that an
election is made by the Recipient under Section 83(b) of the Code, or any
successor provision thereto, to include the value of such shares in taxable
income), the Bank or the Company shall have the right to require the Recipient
or other person receiving such shares to pay the Bank or the Company the amount
of any taxes that the Bank or the Company is required to withhold with respect
to such shares, or, in lieu thereof, to retain or sell without notice, a
sufficient number of shares held by it to cover the minimum amount required to
be withheld.  The

 

6

 

Bank or the Company shall have the right to deduct
from all dividends paid with respect to shares of Restricted Stock the amount
of any taxes which the Bank or the Company is required to withhold with respect
to such dividend payments.

 

12.                               Amendment or Termination

 

The Board of the Company may amend, suspend or
terminate the Plan or any portion thereof at any time, provided, however, that no such amendment,
suspension or termination shall impair the rights of any Recipient, without his
consent, in any Award theretofore made pursuant to the Plan.  Any amendment or modification of the Plan or
an outstanding Award under the Plan, including but not limited to the
acceleration of vesting of an outstanding Award for reasons other than death,
Disability, Normal Retirement or termination following a Change in Control,
shall be approved by the Committee, or the full Board of the Company.

 

13.                               Governing Law

 

The Plan shall be governed by the laws of the State of
Delaware.

 

14.                               Term of Plan

 

The Plan shall become effective on the date of, or a
date determined by the Board of Directors following, approval of the Plan by
the Company’s stockholders.  It shall
continue in effect until the earlier of (i) fifteen years from the Effective
Date unless sooner terminated under Section 12 hereof, or (ii) the
date on which all shares of Common Stock available for award hereunder, have
vested in the Recipients of such Awards.

 

7

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