Document:

Exhibit 10.1

Exhibit 10.1

FIRST AMENDMENT TO FIRST AMENDED AND RESTATED SECURED TERM LOAN
AGREEMENT

THIS FIRST AMENDMENT TO FIRST AMENDED AND RESTATED SECURED TERM LOAN AGREEMENT
(“Amendment”) is made as of March 31, 2010 (the “Effective Date”), by and among
BIOMED REALTY, L.P., a Maryland limited partnership (“Borrower” or “Operating
Partnership”), KEYBANK NATIONAL ASSOCIATION, a national banking association
(“KeyBank”), each lender whose name is set forth on the signature pages of this Amendment
(collectively, together with KeyBank, the “Lenders” and, individually, a “Lender”)
and KEYBANK NATIONAL ASSOCIATION, not individually but as “Administrative Agent”.

RECITALS

A. Borrower, Administrative Agent, KeyBank and the Lenders entered into that certain First
Amended and Restated Secured Term Loan Agreement dated as of August 1, 2007 (the “Loan
Agreement”) for the purposes described therein, pursuant to which Lenders made a TWO HUNDRED
FIFTY MILLION and NO/100THS DOLLARS ($250,000,000.00) loan (“Loan”) to Borrower. All of
the documents evidencing, securing or executed in connection with the Loan, as the same may be
amended from time to time pursuant to the terms hereof, are collectively referred to as the
“Loan Documents.”

B. Concurrently herewith, pursuant to Section 3.1(e) of the Loan Agreement, Borrower desires
to make a voluntarily prepayment of the Loan, reducing the outstanding balance of the Loan by
$100,000,000.00.

C. In connection with the current voluntary partial prepayment of $100,000,000.00, Borrower
hereby desires that the Lenders agree to remove and release, and the Lenders hereby agree to remove
and release, the following Projects as “Subject Properties” under the Loan Agreement: (i) 3240,
3260, 3280 Bayshore Boulevard, Brisbane, California, (ii) 9885 Towne Centre Drive, San Diego,
California, and (iii) 3450 Monte Villa Parkway, Seattle, Washington.

D. In addition to the removal and release of the above-referenced Projects as Subject
Properties under the Loan Agreement, Borrower and the Lenders hereby desire to further amend the
Loan Agreement to permit future Subject Property Releases (as defined below) provided that certain
conditions precedent are satisfied.

E. The parties hereto desire to provide for an amendment to the Loan Agreement to address such
changes in the removal and release provisions relating to Subject Properties and to make such other
amendments and revisions to the Loan Agreement as are more particularly set forth hereinbelow.

TERMS AND CONDITIONS

NOW, THEREFORE, with reference to the foregoing Recitals, all of which are incorporated herein
by this reference, for valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

1. The following Definition from Article I of the Loan Agreement is hereby deleted in its
entirety:

(a) “Bayshore Project”.

 

 

 

2. Additional Definitions. The following Definitions are hereby added to Article I of
the Loan Agreement:

“Minimum Release Price” for each Subject Property shall have the value ascribed
to each such Subject Property on Schedule 1.3 attached hereto and made a part
hereof.

“Release Price” for each Subject Property shall mean, respectively, a cash
amount reasonably determined by the Administrative Agent that is equal to the greater of:
(i) the Minimum Release Price for each such Subject Property, or (ii) that portion of the
then-current Gross Asset Value attributable to the applicable Subject Property less the
outstanding principal balance of the corresponding Subject Property Indebtedness as of the
end of the most recent Fiscal Quarter for which financial results have been reported.

“Subject Property Release” means the removal and release of an Income-Producing
Project or a Project or any portion thereof as a “Subject Property” under this Agreement.

3. Voluntary Partial Prepayment. Concurrently herewith Borrower has made a voluntary
partial prepayment of the Loan to the Lenders in the aggregate amount of $100,000,000.00. From and
after the date hereof, the current aggregate principal amount of the Loan outstanding is
$150,000,000.00.

4. Subject Property Releases.

(a) As of the Effective Date, the following Projects are hereby released and removed as
“Subject Properties” under the Loan Agreement:

	 	(i)	 	3240, 3260, 3280 Bayshore Boulevard, Brisbane, California,

	 
	 	(ii)	 	9885 Towne Centre Drive, San Diego, California, and

	 
	 	(iii)	 	3450 Monte Villa Parkway, Seattle, Washington.

(b) Concurrently herewith, the Administrative Agent shall execute such documents or
instruments and take all other actions necessary or advisable on behalf of the Lenders to
release the related security interests (including without limitation releases of any pledged
Equity Interests) evidenced by any Security Documents pertaining to the Projects referenced
in Section 4(a)(i)-(iii) above, and to release the corresponding Subsidiary Guarantors
relating to such aforementioned Projects from any continuing obligations under the
Subsidiary Guaranty.

5. Schedule of Subsidiary Guarantors. As of the Effective Date, Schedule 1.2 to the
Loan Agreement (Schedule of Subsidiary Guarantors) is hereby deleted in its entirety and replaced
with the attached Schedule 1.2.

6. Schedule of Subject Properties. As of the Effective Date, Schedule 1.3 to the Loan
Agreement (Schedule of Subject Properties) is hereby deleted in its entirety and replaced with the
attached Schedule 1.3.

 

2

 

7. Schedule of Subsidiaries and Projects. As of the Effective Date, Schedule 4.4
(Subsidiaries) and Schedule 4.19 (Projects) to the Loan Agreement are hereby deleted in their
entirety and replaced with the attached Schedule 4.4 and Schedule 4.19.

8. Sale of a Subject Property. The provisions set forth in Section 2A.3 of the Loan
Agreement are hereby amended, restated and wholly replaced in their entirety by the following:

“2A.3 Sale of a Subject Property. Provided that no Default or Event of Default
shall have occurred hereunder or under the other Loan Documents and be continuing (or would
exist immediately after giving effect to the transactions contemplated by this Section
2A.3), a Subject Property Owner (or Borrower or another applicable Subsidiary) may
engage in a Subject Property Sale upon the following terms and conditions:

(a) Borrower shall deliver to the Administrative Agent written notice of the
desire to consummate such Subject Property Sale on or before the date that is five
(5) Banking Days prior to the date on which the Subject Property Sale is to be
effected;

(b) On the date of the proposed Subject Property Sale, Borrower shall make a
principal prepayment of the Loan to Administrative Agent on behalf of the Lenders
equal to the Release Price for the Project that is the subject of the proposed
Subject Property Sale;

(c) On or before the date that is five (5) Banking Days prior to the date the
Subject Property Sale is to be effected, Borrower shall submit to the Administrative
Agent a Certificate, which shall be subject to the Administrative Agent’s review and
reasonable approval, setting forth the Subject Properties Leverage Ratio on a pro
forma basis as of the date of the Subject Property Sale (the “Pro Forma Subject
Properties Leverage Ratio”), giving effect to (in addition to other changes to
the Subject Properties Leverage Ratio during the intervening period (e.g., any
reductions to the outstanding principal balance of the Subject Property
Indebtedness)): (A) the Subject Property Sale and the corresponding payment to
Administrative Agent on behalf of the Lenders of the applicable Release Price for
such Subject Property being sold, and (B) any other Projects that became or are
becoming a Subject Property prior to the date of the Subject Property Sale;

(d) If the Pro Forma Subject Properties Leverage Ratio exceeds the Target
Subject Properties Leverage Ratio, Borrower shall, concurrently or before the closing
of the Subject Property Sale and in addition to the payment of the Release Price, pay
to the Administrative Agent for the account of the Lenders, which payment shall be
applied to reduce the Outstanding Loan Amount, the amount necessary to make the Pro
Forma Subject Properties Leverage Ratio no greater than the Target Subject Properties
Leverage Ratio; and

(e) Upon the occurrence of the Subject Property Sale, the underlying Project
shall no longer be a Subject Property, and the Administrative Agent shall execute
such documents or instruments and take all other actions necessary or advisable on
behalf of the Lenders to release the related security interests (including without
limitation releases of any pledged Equity Interests) evidenced by any
Security Documents and to release the related Subsidiary Guarantor(s), if
applicable, from any obligations under the Subsidiary Guaranty.”

 

3

 

9. Future Subject Property Release Provisions. The following shall be added as new
Section 2A.5 to the Loan Agreement:

“2A.5 Release of a Subject Property. Provided that no Default or Event of
Default shall have occurred hereunder or under the other Loan Documents and be continuing
(or would exist immediately after giving effect to the transactions contemplated by this
Section 2A.5), a Subject Property Owner (or Borrower or another applicable
Subsidiary) may engage in a Subject Property Release upon the following terms and
conditions:

(a) Borrower shall deliver to the Administrative Agent written notice of the
desire to consummate such Subject Property Release on or before the date that is five
(5) Banking Days prior to the date on which the Subject Property Release is to be
effected;

(b) On the date of the proposed Subject Property Release, Borrower shall make a
principal prepayment of the Loan to Administrative Agent on behalf of the Lenders
equal to the Release Price for the Project that is the subject of the proposed
Subject Property Release;

(c) On or before the date that is five (5) Banking Days prior to the date the
Subject Property Release is to be effected, Borrower shall submit to the
Administrative Agent a Certificate, which shall be subject to the Administrative
Agent’s review and reasonable approval, setting forth the Pro Forma Subject
Properties Leverage Ratio as of the date of the Subject Property Release giving
effect to (in addition to other changes to the Subject Properties Leverage Ratio
during the intervening period (e.g., any reductions to the outstanding principal
balance of the Subject Property Indebtedness)): (A) the Subject Property Release and
the corresponding payment to Administrative Agent on behalf of the Lenders of the
applicable Release Price for such Subject Property being released, and (B) any other
Projects that became or are becoming a Subject Property prior to the date of the
Subject Property Release;

(d) If the Pro Forma Subject Properties Leverage Ratio exceeds the Target
Subject Properties Leverage Ratio, Borrower shall, concurrently or before the closing
of the Subject Property Release and in addition to the payment of the Release Price,
pay to the Administrative Agent for the account of the Lenders, which payment shall
be applied to reduce the Outstanding Loan Amount, the amount necessary to make the
Pro Forma Subject Properties Leverage Ratio no greater than the Target Subject
Properties Leverage Ratio; and

(e) Upon the occurrence of the Subject Property Release, the underlying Project
shall no longer be a Subject Property, and the Administrative Agent shall execute
such documents or instruments and take all other actions necessary or advisable on
behalf of the Lenders to release the related security interests (including without
limitation releases of any pledged Equity Interests) evidenced by any
Security Documents and to release the related Subsidiary Guarantor(s), if
applicable, from any obligations under the Subsidiary Guaranty.”

 

4

 

10. Full Force and Effect. Except as amended hereby, the terms and provisions of the
Loan Agreement and the Loan Documents remain unchanged, are and shall remain in full force and
effect unless and until modified or amended in writing in accordance with their terms, and are
hereby ratified and confirmed. Except as expressly provided herein, this Amendment shall not
constitute an amendment, waiver, consent or release with respect to any provision of any Loan
Document, a waiver of any default or Event of Default under any Loan Document, or a waiver or
release of any of the Lenders’ rights and remedies (all of which are hereby reserved). The
Borrower expressly ratifies and confirms the confession of judgment (if applicable) and waiver of
jury trial provisions contained in the Loan Documents.

11. References to Loan Documents; Capitalized Terms. Any and all references to any
Loan Document in any other Loan Document shall be deemed to refer to such Loan Document as amended
by this Amendment. This Amendment is deemed incorporated into each of the Loan Documents. Any
initially capitalized terms used in this Amendment without definition shall have the meanings
assigned to those terms in the Loan Documents. To the extent that any term or provision of this
Amendment is or may be inconsistent with any term or provision in any Loan Document, the terms and
provisions of this Amendment shall control.

12. Successors and Assigns. This Amendment will be binding upon and inure to the
benefit of the Borrower and the Lenders and their respective heirs, executors, administrators,
successors and assigns.

13. Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York.

14. Counterparts. This Amendment may be executed in any number of counterparts, all of
which taken together shall constitute one agreement, and any of the parties hereto may execute this
Amendment by signing any such counterpart.

[Signature page follows.]

 

5

 

IN WITNESS WHEREOF, the Borrower, the Lenders and the Administrative Agent have executed this
Agreement as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

BIOMED REALTY, L.P., a Maryland limited 

partnership

 	 
	 	By:  	BioMed Realty Trust, Inc., its sole general
 	 
	 	 	partner 	 

	 	 	 	 	 
	 	By:  	                    /s/ Karen A. Sztraicher
 	 
	 	 	Name:  	Karen A. Sztraicher 	 
	 	 	Title:  	Sr. Vice President, Asset Management 	 
	 

	 	 	 	 	 
	 	 	 
	 	Address:  	
 	 
	 	 	 
	 	BioMed Realty, LP 	 
	 	17190 Bernardo Center Drive

San Diego, California 92128 	 

 

Signature Page to Amendment
S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT:

KEYBANK NATIONAL ASSOCIATION, a

national banking association, as Administrative Agent

 	 
	 	By:  	/s/ Michael P. Szuba
 	 
	 	 	Name:  	Michael P. Szuba 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	Address:  	
 	 
	 	 	 
	 	 	KeyBank - Real Estate Capital 	 
	 	 	127 Public Square - 8th Floor

Mail Code: OH-01-27-0839

Cleveland, Ohio 44114

Phone:  216-689-5984

Facsimile:  216-689-5819

Attn:  Michael P. Szuba 	 
	 

	 	 	 	 	 
	 	LENDERS:

KEYBANK NATIONAL ASSOCIATION, a 

national banking association

 	 
	 	By:  	/s/ Michael P. Szuba
 	 
	 	 	Name:  	Michael P. Szuba 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	 Address:  	
 	 
	 	 	KeyBank - Real Estate Capital 	 
	 	 	127 Public Square - 8th Floor

Mail Code: OH-01-27-0839

Cleveland, Ohio 44114

Phone:  216-689-5984

Facsimile:  216-689-5819

Attn:  Michael P. Szuba 	 

 

Signature Page to Amendment
S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

a national banking association

 	 
	 	By:  	/s/ Michael Pavis
 	 
	 	 	Name:  	Michael Pavis 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	 	 
	 	Address:  	
 	 
	 	 	 
	 	U.S. Bank National Association 	 
	 	4747 Executive Drive, 3rd Floor

San Diego, CA 92121

Telephone: 858-334-0703

Fax: 858-334-0798

Attn: Michael Paris

U.S. Bank National Association

4747 Executive Drive, 3rd Floor

San Diego, CA 92121

Telephone: 858-334-0709

Fax: 858-334-0798

Attn: Lancy Kim 	 
	 

 

Signature Page to Amendment
S-3

 

	 	 	 	 	 
	 	SOCIETE GENERALE

 	 
	 	By:  	/s/ Jerry Parisi
 	 
	 	 	Name:  	Jerry Parisi 	 
	 	 	Title:  	Managing director 	 
	 

Address:

2001 Ross Avenue, Suite 4900

Dallas, Texas 75201

Telephone: 214-979-2740

Facsimile: 214-979-2727

Attn: Chuck Butterworth

Signature Page to Amendment

S-4

 

 

 

	 	 	 	 	 
	 	COMPASS BANK, an Alabama banking corporation

 	 
	 	By:  	/s/ Keely W. McGee
 	 
	 	 	Name:  	Keely W. McGee 	 
	 	 	Title:  	Senior Vice President 	 
	 

Address:

BBVA Compass

15 South 20th Street

Suite 1504

Birmingham, Alabama 35233

Telephone: 205-297-5920

Facsimile: 205-297-3901

Attn: Keely W. McGee, Senior Vice President

Signature Page to Amendment

S-5

 

 

 

	 	 	 	 	 
	 	ALLIED IRISH BANKS, p.l.c.

 	 
	 	By:  	/s/ Douglas S. Marron
 	 
	 	 	Name:  	Douglas S. Marron 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	 	 
	 	By:  	                                            /s/ Brian Deegan
 	 
	 	 	Name:  	Brian Deegan 	 
	 	 	Title:  	Vice President 	 
	 

Address:

405 Park Avenue

New York, New York 10022

Telephone: 212-515-6762

Facsimile: 212-339-8325

Attn: Douglas S. Marron

Attn: Brian Deegan

Signature Page to Amendment

S-6

 

 

 

	 	 	 	 	 
	 	RAYMOND JAMES BANK, FSB

 	 
	 	By:  	/s/ Thomas G. Scott
 	 
	 	 	Name:  	Thomas G. Scott 	 
	 	 	Title:  	Senior Vice President 	 
	 

Address:

710 Carillon Parkway

St. Petersburg, Florida 33716

Telephone: 727-567-4196

Facsimile: 727-567-8830

Attn: Thomas Scott, Senior Vice President

Signature Page to Amendment

S-7

 

 

 

	 	 	 	 	 
	 	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

 	 
	 	By:  	Babson Capital Management LLC

Its Authorized Agent 	 
	 	 	 
	 	 	 
	 	By:  	                        /s/ Richard F. McKeever
 	 
	 	 	Title:               Managing Director 	 
	 	 	Name:                Richard F. McKeever 	 
	 

Address:

c/o Babson Capital Management, LLC

1500 Main Street, Floor 21, Tower Square

Springfield, MA 01115

Attn: Richard F. McKeever, Managing Director

Telephone: 413-226-1432

Facsimile: 413-226-2432

Signature Page to Amendment

S-8

 

 

 

	 	 	 	 	 
	 	PB (USA) REALTY CORPORATION

 	 
	 	By:  	/s/ Andrew E. Woodtli
 	 
	 	 	Name:  	Andrew E. Woodtli 	 
	 	 	Title:  	Assistant Vice President 	 
	 
	 	 	 
	 	By:  	                  /s/ Michael J. Rogers
 	 
	 	 	Name:  	Michael J. Rogers 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Address:

c/o PB Capital Corporation

230 Park Avenue

New York, NY 10169

Attn: Andrew E. Woodtli, Assistant Vice President

Telephone: 212-756-5608

Facsimile: 212-765-5536

Signature Page to Amendment

S-9

 

 

 

	 	 	 	 	 
	 	RBS CITIZENS, N.A., a national banking association

(d/b/a Charter One)

 	 
	 	By:  	/s/ Erin L. Mahon
 	 
	 	 	Name:  	Erin L. Mahon 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Address:

RBS Citizens, N.A. d/b/a Charter One

1215 Superior Avenue, OHS675

Cleveland, OH 44114

Phone: 216-277-0051

Facsimile: 216-277-4600

Attn: Erin L. Mahon, Assistant Vice President

Signature Page to Amendment

S-10

 

 

 

	 	 	 	 	 
	 	WELLS FARGO BANK, N.A., successor-by-merger to Wachovia
Bank, N.A.

 	 
	 	By:  	/s/ Mark Cagley
 	 
	 	 	Name:  	Mark Cagley 	 
	 	 	Title:  	Managing Director 	 
	 

Address:

Wells Fargo Bank, N.A.

301 S. College Street, 4th Floor

Mailcode D1053-04R

Charlotte, NC 28202

Telephone: 704-383-4013

Facsimile: 704-383-6205

Attn: Anand Jobanputra, Relationship Manager

Signature Page to Amendment

S-11

 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., a national banking association

 	 
	 	By:  	/s/ Kurt Mathison
 	 
	 	 	Name:  	Kurt Mathison 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	Address:

901 Main St. 64th Floor

Dallas, TX 75202

Telephone: 214-209-9198

Facsimile: 214-209-0995

Attn: Kurt Mathison, Vice President	 

Signature Page to Amendment

S-12

 

 

 

	 	 	 	 	 
	 	SOVEREIGN BANK

 	 
	 	By:  	/s/ James C. Peary
 	 
	 	 	Name:  	James C. Peary 	 
	 	 	Title:  	Vice President 	 
	 

Address:

75 State Street MA1 SST04-11

Boston, Massachusetts 02109

Telephone: 617-757-5578

Facsimile: 617-757-5652

Attn: T. Gregory Donohue, Senior Vice President

Signature Page to Amendment

S-13

 

 

 

	 	 	 	 	 
	 	TD BANK, N.A. (f/k/a TD Banknorth, N.A.)

 	 
	 	By:  	/s/ David Yesue
 	 
	 	 	Name:  	David Yesue 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Address:

TD Bank, N.A.

370 Main Street, 2nd Floor

Worcester, MA 01608

Telephone:: 508-368-6921

Facsimile: 508-368-6520

Attn: David Yesue, Assistant Vice President

Signature Page to Amendment

S-14

 

 

 

	 	 	 	 	 
	 	WESTDEUTSCHE IMMOBILIENBANK AG

 	 
	 	By:  	/s/ Sascha Matheis
 	 
	 	 	Name:  	Sascha Matheis 	 
	 	 	Title:  	Executive Director 	 
	 
	 	 	 
	 	By:  	                                            /s/ Michael Hammes
 	 
	 	 	Name:  	Michael Hammes 	 
	 	 	Title:  	Associate Director 	 
	 

Address:

Grosse Bleiche 46

55116 Mainz, Germany

Phone: +49 6131 9280 7263

Facsimile: +49 6131 9280 7308

Attn: Armin Gemmerich, Executive Director

Signature Page to Amendment

S-15

 

 

 

	 	 	 	 	 
	 	PEOPLE’S UNITED BANK

 	 
	 	By:  	/s/ Maurice Fry
 	 
	 	 	Name:  	Maurice Fry 	 
	 	 	Title:  	Senior Commercial Loan Officer, SVP 	 
	 

Address:

People’s United Bank

850 Main Street, 12th Floor

Bridgeport, CT 06604

Phone: 203-338-7375

Facsimile: 203-338-7344

Attn: Maurice Fry, Vice President

Signature Page to Amendment

S-16

 

 

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, successor to National
City Bank

 	 
	 	By:  	/s/ John E. Intilgus, II
 	 
	 	 	Name:  	John E. Intilgus, II	 
	 	 	Title:  	Senior Vice President 	 

Address:

PNC Real Estate

1900 E. Ninth Street — 22nd Floor

(Mail Stop: B7-YB13-22-1)

Cleveland, OH 44114

Telephone: 216-222-6032

Facsimile: 216-222-6070

Attn: John E. Wilgus, II

 Senior Vice President

 Real Estate Banking

Signature Page to Amendment

S-17

 

 

 

	 	 	 	 	 
	 	MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD., NEW YORK BRANCH

 	 
	 	By:  	/s/ Priscilla Hsing
 	 
	 	 	Name:  	Priscilla Hsing 	 
	 	 	Title:  	Vice President and Deputy General Manager 	 
	 

Address:

65 Liberty Street

New York, NY 10005

Telephone: 212-815-9168

Facsimile: 212-766-5006

Attn: Nae-Yee Lung, Executive Vice President and General Managerexv10w1

Exhibit 10.1

PHH CORPORATION

MANAGEMENT INCENTIVE PLAN

(Under the PHH Corporation Amended and Restated 2005 Equity and Incentive Plan)

I. INTRODUCTION

     1.1. Purpose. The purposes of this PHH Corporation Management Incentive Plan (as
amended from time to time, this “MIP”) are to provide incentives to the officers and other
employees of PHH Corporation (the “Company”) and its Affiliates (as defined below) to
attain the goals established by the Committee (as defined below), to provide such officers and
other employees with incentive compensation that is based on Company and individual performance,
and to align their interests with the interests of the Company’s shareholders.

     1.2. Description. This MIP is a sub-plan under Section 6(c) of the PHH Corporation
Amended and Restated 2005 Equity and Incentive Plan (as amended from time to time, the “2005
EIP”) and is subject to the terms of the 2005 EIP. This MIP is the means by which the
Committee shall determine cash incentives and affect and implement awards for participating
employees hereunder. With respect to Covered Employees (as defined in the 2005 EIP), this MIP is
designed to ensure that the bonuses paid hereunder to eligible participants are deductible under
Section 162(m) of the Code, and the regulations and interpretations promulgated thereunder.

II. DEFINITIONS

     As used in this MIP, the following terms shall have the following meanings:

     “Affiliate” means a Parent (as defined in the 2005 EIP) or Subsidiary (as defined in
the 2005 EIP).

     “Award Agreement” has the meaning ascribed to it in the 2005 EIP.

     “Board” has the meaning ascribed to it in the 2005 EIP.

     “Cash Incentive Award” means an award hereunder with respect to a Plan Year determined
in accordance with Article V hereof and evidenced by an Award Agreement.

     “Cash Incentive Payment” means a payment pursuant to a Cash Incentive Award.

     “Change in Control” has the meaning ascribed to it in the 2005 EIP.

     “Code” has the meaning ascribed to it in the 2005 EIP.

     “Committee” has the meaning ascribed to it in the 2005 EIP, provided that the
Committee shall consist of two or more members of the Board, each of whom shall be an “outside
director” within the meaning of Section 162(m) of the Code.

     “Covered Employee” has the meaning ascribed to it in the 2005 EIP.

 

 

     “Grantee” has the meaning ascribed to it in the 2005 EIP.

     “Performance Goals” has the meaning ascribed to it in the 2005 EIP.

     “Plan Year” has the meaning ascribed to it in the 2005 EIP.

III. ADMINISTRATION

     The administration and operation of this MIP shall be supervised by the Committee with respect
to all matters. The Committee shall interpret and construe any and all provisions of this MIP and
any determination made by the Committee under this MIP shall be final and conclusive. Neither the
Board nor the Committee, nor any member of the Board, nor any employee of the Company or its
Affiliates shall be liable for any act, omission, interpretation, construction or determination
made in connection with this MIP (other than acts of willful misconduct) and the members of the
Board and the Committee and the employees of the Company and its Affiliates shall be entitled to
indemnification and reimbursement by the Company to the maximum extent permitted at law in respect
of any claim, loss, damage or expense (including counsel’s fees) arising from their acts, omissions
and conduct in their official capacity with respect to this MIP. This MIP shall be interpreted in
view of the intention that any grant of compensation to Covered Employees pursuant to this MIP is
intended to qualify as performance-based compensation with the meaning of Code Section 162(m) and
the regulations and interpretations promulgated thereunder. If the terms of this MIP conflict with
the terms of the 2005 EIP in a manner that would make compliance with the terms of both this MIP
and the 2005 EIP impossible, the terms of the 2005 EIP shall control.

IV. PARTICIPATION

     Cash Incentive Awards may be granted to officers and other employees of the Company or its
Affiliates selected in the discretion of the Committee for participation in this MIP for a Plan
Year. Once a person becomes a Grantee under this MIP, the Grantee shall remain a Grantee until any
Cash Incentive Payments payable to such Grantee pursuant to this MIP and any Cash Incentive Awards
granted hereunder have been paid out or forfeited.

V. AWARDS

     5.1. Establishment of Performance Goals or Other Criteria. With respect to Cash
Incentive Awards to Covered Employees, the Committee shall establish the Performance Goals for the
payment under such Cash Incentive Awards no later than the ninetieth (90th) day of each Plan Year.
With respect to other Cash Incentive Awards, the Committee may establish such performance criteria,
if any, that it determines in its sole discretion are necessary or appropriate in such time and
manner as the Committee may determine. Performance Goals and other performance criteria, as
applicable, will be reflected in the applicable Award Agreements for any Cash Incentive Award
hereunder.

     5.2. Cash Incentive Award Limitations and Committee Discretion. The Committee will
establish the maximum Cash Incentive Payment that can be made pursuant to a Cash Incentive

-2-

 

Award; provided that the maximum value of the aggregate Cash Incentive Payments that any Grantee
may receive under this MIP in respect of any Plan Year is $5 million. Subject to Section 5.5,
after establishing the maximum Cash Incentive Payment that can be made pursuant to a Cash Incentive
Award under this Article V for a Plan Year, the Committee may reduce (or, solely in the case of a
Grantee who is not a Covered Employee, increase) the Cash Incentive Payment payable to a Grantee
based upon the Committee’s determination of the individual performance of such Grantee for such
Plan Year and such other factors as the Committee deems appropriate.

     5.3. Determination of Achievement of Performance Goals or Other Measures. The
Committee shall certify the level of achievement of the Performance Goals or such other performance
criteria as soon as practical after the end of the Plan Year for which the determination is being
made, including by certifying that the Performance Goals or such other performance criteria were
not attained, if applicable.

     5.4. Cash Incentive Payments. Unless contrary to applicable law and except as
provided in Section 5.5, no Grantee shall vest in a Cash Incentive Payment unless he or she is
employed by the Company or an Affiliate on the date the Committee certifies the level of
achievement under the Performance Goals or other performance criteria under Section 5.3. Except as
provided in Section 5.5, no Cash Incentive Payment shall be made to a Grantee prior to the
certification by the Committee of the level to which the Performance Goals or other performance
criteria have been attained. Vested Cash Incentive Payments under this Section will be made within
thirty (30) days following such certification, but in no event later than December 31 of the Plan
Year in which such certification occurs. If the Committee exercises discretion in Section 5.2 to
reduce a Grantee’s Cash Incentive Payment to zero dollars, or if the Committee certifies that the
Performance Goals or other performance criteria have not been met (and, solely in the case of an
employee other than a Covered Employee, does not increase the amount of the Cash Incentive
Payment), the Cash Incentive Payment will be deemed paid as of the date such discretion is
exercised or certification is made, as applicable.

     5.5 Change in Control Provisions.

     (a) Unless otherwise determined by the Committee and evidenced in an Award Agreement in
respect of a Cash Incentive Award, in the event of a Change in Control before certification
by the Committee pursuant to Section 5.3 is made, the restrictions, deferral limitations,
payment conditions, and forfeiture conditions applicable to any Cash Incentive Award granted
under this MIP shall lapse and the Cash Incentive Payment in respect of such Cash Incentive
Award shall be deemed fully vested, and any performance conditions (including, without
limitation, Performance Goals) imposed with respect to such Cash Incentive Award shall be
deemed to be fully achieved. Payment of vested Cash Incentive Payments under this Section
will be made as soon as practicable following the Change in Control, but in no event later
than December 31 of the Plan Year in which the Change in Control occurs.

     (b) Unless otherwise determined by the Committee and evidenced in an Award Agreement in
respect of a Cash Incentive Award, if (i) a Change in Control occurs after the Committee
certifies the level of attainment of Performance Goals or other performance

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criteria under Section 5.3 and before any Cash Incentive Payment in respect of such
Cash Incentive Award is paid, and (ii) the Grantee is employed by the Company or an
Affiliate on the date of the Change in Control, then the Committee will not have any
discretion to reduce such Cash Incentive Payment pursuant to Section 5.2 on or after the
effective date of the Change in Control.

VI. GENERAL PROVISIONS

     6.1. Amendment and Termination. The Committee may at any time amend, suspend,
discontinue or terminate this MIP; provided, however, that no such amendment, suspension,
discontinuance or termination shall adversely affect the rights of any Grantee with respect to a
Cash Incentive Award with respect to any Plan Year which has then ended. All determinations
concerning the interpretation and application of this Section 6.1 shall be made by the Committee.

     6.2. Payment on Death. In the event a Grantee dies after a Cash Incentive Payment has
vested under this MIP, such Cash Incentive Payment shall be made to the Grantee’s estate.

     6.3. Rights Unsecured. The right of any Grantee to receive vested Cash Incentive
Payments under this MIP shall constitute an unsecured claim against the general assets of the
Company.

     6.4. Withholding Taxes. The Company shall have the right to deduct from each Cash
Incentive Payment any federal, state and local taxes required by such laws to be withheld with
respect to any payment under this MIP.

     6.5. Miscellaneous.

     (a) No Right of Continued Employment. Nothing in this MIP shall be construed
as conferring upon any Grantee any right to continue in the employment of the Company or any
of its Affiliates.

     (b) No Limitation on Corporate Actions. Nothing contained in this MIP shall be
construed to prevent the Company or any Affiliate from taking any corporate action which is
deemed by it to be appropriate or in its best interest, whether or not such action would
have an adverse effect on this MIP or any awards made under this MIP. No employee, Grantee
or other person shall have any claim against the Company or any of its Affiliates as a
result of any such action.

     (c) Nonalienation of Benefits. Except as expressly provided herein, neither a
Grantee nor his or her heirs, executors, or administrators shall have the power or right to
transfer, hypothecate, alienate, assign, or otherwise encumber the Grantee’s interest under
this MIP. The Company’s obligations under this MIP are not assignable or transferable
except to a corporation which acquires all or substantially all of the assets of the Company
or any corporation into which the Company may be merged or consolidated.

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     (d) Severability. If any provision of this MIP is determined by a court of
competent jurisdiction to be unenforceable, the remainder of this MIP shall continue in full
force and effect without regard to such unenforceable provision and shall be applied as
though the unenforceable provision were not contained in this MIP.

     (e) Governing Law. This MIP shall be construed in accordance with and governed
by the laws of the State of Delaware, without reference to the principles of conflict of
laws.

     (f) Headings. Headings are inserted in this MIP for convenience of reference
only and are to be ignored in a construction of the provisions of this MIP.

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