Document:

ex10-1.htm

    
      
Exhibit
10.1

    

    

    

    

    

    

    

    

    

    WHITESTONE
REIT

    

    2008
LONG-TERM EQUITY INCENTIVE OWNERSHIP PLAN

    

     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
OF CONTENTS

    

     

    
      	 
      	 
      	
              Tab

            
	 	 	 
	
              Section
      1.

            	
              Purpose.

            	
              1

            
	
              Section
      2.

            	
              Definitions.

            	
              1

            
	
              Section
      3.

            	
              Administration.

            	
              5

            
	
              Section
      4.

            	
              Common
      Shares Available For Awards.

            	
              6

            
	
              Section
      5.

            	
              Eligibility.

            	
              7

            
	
              Section
      6.

            	
              Stock
      Options And Stock Appreciation Rights.

            	
              7

            
	
              Section
      7.

            	
              Restricted
      Common Shares And Restricted Common Share Units.

            	
              9

            
	
              Section
      8.

            	
              Performance
      Awards.

            	
              11

            
	
              Section
      9.

            	
              Other
      Share-Based Awards.

            	
              11

            
	
              Section
      10.

            	
              Non-Employee
      Trustee Awards.

            	
              11

            
	
              Section
      11.

            	
              Provisions
      Applicable To Covered Officers And Performance Awards.

            	
              12

            
	
              Section
      12.

            	
              Termination
      Of Employment.

            	
              13

            
	
              Section
      13.

            	
              Change
      In Control.

            	
              14

            
	
              Section
      14.

            	
              Amendment
      And Termination.

            	
              14

            
	
              Section
      15.

            	
              General
      Provisions.

            	
              14

            
	
              Section
      16.

            	
              Term
      Of The Plan.

            	
              17

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    WHITESTONE
REIT

    2008
LONG-TERM EQUITY INCENTIVE OWNERSHIP PLAN

    

    
      	
              Section 1.

            	
              Purpose.

            

    

    

    This plan shall be known as the
“Whitestone REIT 2008 Long-Term Equity Incentive Ownership Plan” (the “Plan”).  The
purpose of the Plan is to promote the interests of Whitestone REIT, a Maryland
real estate investment trust (the “Company”), its Subsidiaries and its
shareholders by (i) attracting and retaining key officers, employees, and
trustees of, and consultants to, the Company and its Subsidiaries and
Affiliates; (ii) motivating such individuals by means of
performance-related incentives to achieve long-range performance goals; (iii)
enabling such individuals to participate in the long-term growth and financial
success of the Company; (iv) encouraging ownership of equity in the Company
by such individuals; and (v) linking their compensation to the long-term
interests of the Company and its shareholders.  With respect to any
awards granted under the Plan that are intended to comply with the requirements
of “performance-based compensation” under Section 162(m) of the Code, the
Plan shall be interpreted in a manner consistent with such
requirements.

    

    
      	
              Section
      2.

            	
              Definitions.

            

    

    

    As used in the Plan, the following
terms shall have the meanings set forth below:

     

    (a)           “Affiliate” shall mean (i) any
entity that, directly or indirectly, is controlled by the Company, (ii) any
entity in which the Company has a significant equity interest, (iii) an
affiliate of the Company, as defined in Rule 12b-2 promulgated under
Section 12 of the Exchange Act, and (iv) any entity in which the
Company has at least twenty percent (20%) of the combined voting power of the
entity’s outstanding voting securities, in each case as designated by the Board
as being a participating employer in the Plan.

     

    (b)           “Award” shall mean any Option, Stock
Appreciation Right, Restricted Common Share Award, Restricted Common Share Unit,
Restricted Unit Award, Performance Award, Other Share-Based Award or other award
granted under the Plan, whether singly, in combination or in tandem, to a
Participant by the Committee (or the Board) pursuant to such terms, conditions,
restrictions and/or limitations, if any, as the Committee (or the Board) may
establish or which are required by applicable legal requirements.

    

    (c)           “Award
Agreement” shall
mean any written agreement, contract or other instrument or document evidencing
any Award, which may, but need not, be executed or acknowledged by a
Participant.

    

    (d)           “Board” shall mean the Board of
Trustees of the
Company.

    

    (e)           “Change in
Control” shall
mean, unless otherwise defined in the applicable Award Agreement, any of the
following events:

    

    (i)     any
person or entity, including a “group” as defined in Section 13(d)(3) of the
Exchange Act, other than the Company or a wholly-owned subsidiary thereof or any
employee benefit plan of the Company or any of its Subsidiaries, becomes the
beneficial owner of the Company’s securities having 35% or more of the combined
voting power of the then outstanding securities of the Company that may be cast
for the election of trustees of the Company (other than as a result of an
issuance of securities initiated by the Company in the ordinary course of
business);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii)   as the
result of, or in connection with, any cash tender or exchange offer, merger or
other business combination or contested election, or any combination of the
foregoing transactions, less than a majority of the combined voting power of the
then outstanding securities of the Company or any successor company or entity
entitled to vote generally in the election of the trustees of the Company or
such other corporation or entity after such transaction are held in the
aggregate by the holders of the Company’s securities entitled to vote generally
in the election of trustees of the Company immediately prior to such
transaction;

    

    (iii) 
   during any
period of two (2) consecutive years, individuals who at the beginning of any
such period constitute the Board cease for any reason to constitute at least a
majority thereof, unless the election, or the nomination for election by the
Company’s shareholders, of each Trustee of the Company first elected during such
period was approved by a vote of at least two-thirds (2/3rds) of the Trustees of
the Company then still in office who were (a) Trustees of the Company at the
beginning of any such period, and (b) not initially (1) appointed or elected to
office as result of either an actual or threatened election and/or proxy contest
by or on behalf of a Person other than the Board, or (2) designated by a Person
who has entered into an agreement with the Company to effect a transaction
described in (i) or (ii) above or (iv) or (v) below;

     

    (iv)   a complete
liquidation or dissolution of the Company;

     

    (v)    the
sale or other disposition of all or substantially all of the assets of the
Company to any Person (other than a transfer to a Subsidiary); or

     

    (vi)   with respect
to Award Agreements for the chief executive officer, the chief operating officer
and the chief financial officer only, a termination of the chief executive
officer without cause, excluding non-appealable determinations by a court of law
for fraud, gross negligence, or willful neglect, which would be considered
termination for cause.

     

    (f)           
“Code” shall mean the Internal
Revenue Code of 1986, as amended from time to time.

    

    (g)           “Committee” shall mean a committee of
the Board composed of not less than two Non-Employee Trustees, at least two of
whom shall be (i) a “non-employee director” for purposes of Section 16 of the
Exchange Act and Rule 16b-3 thereunder, (ii) an “outside director” for
purposes of Section 162(m) and the regulations promulgated under the Code,
and each of whom shall be “independent” within the meaning of the listing
standards of the Nasdaq Stock Market.  To the extent that compensation
realized in respect of Awards is intended to be “performance based” under
Section 162(m) of the Code and the Committee is not comprised solely of
individuals who are “outside directors” within the meaning of
Section 162(m) of the Code, the Committee may from time to time delegate
some or all of its functions under the Plan to a committee or subcommittee
composed of members that meet the relevant requirements.

     

    (h)           “Common
Shares” or “Shares” shall mean the common shares
of beneficial interest, par value $0.001 per share, of the Company.

    

    (i)           “Consultant” shall mean any consultant to
the Company or its Subsidiaries or Affiliates.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (j)           “Covered
Officer” shall
mean at any date (i) any individual who, with respect to the previous
taxable year of the Company, was a “covered employee” of the Company within the
meaning of Section 162(m); provided, however, that the term “Covered
Officer” shall not include any such individual who is designated by the
Committee, in its discretion, at the time of any Award or at any subsequent
time, as reasonably expected not to be such a “covered employee” with respect to
the current taxable year of the Company and (ii) any individual who is
designated by the Committee, in its discretion, at the time of any Award or at
any subsequent time, as reasonably expected to be such a “covered employee” with
respect to the current taxable year of the Company or with respect to the
taxable year of the Company in which any applicable Award will be paid or
vested.

    

    (k)           “Disability” shall mean, unless otherwise
defined in the applicable Award Agreement, a disability that would qualify as a
total and permanent disability under the Company’s then current long-term
disability plan.

     

    (l)           
“Employee” shall mean a current or
prospective officer or employee of the Company or of any Subsidiary or
Affiliate.

    

    (m)          “Exchange
Act” shall mean
the Securities Exchange Act of 1934, as amended from time to time.

    

    (n)           “Fair Market
Value” with
respect to the Common Shares, shall mean, for purposes of a grant of an Award as
of any date, (i) the average of the closing sales prices of the Common
Shares on all national securities exchanges on which the Common Shares may at
the time be listed, or any other such exchange on which the Common Shares are
traded, on such date, or in the absence of reported sales on such date, the
average closing sales prices on the immediately preceding date on which sales
were reported, (ii) if on any day the Common Shares shall not be quoted on a
national securities exchange, the average of the high and low bid and asked
prices on such day in the over-the-counter market as reported by National
Quotation Bureau Incorporated, or any similar successor organization, or
(iii) in the event there is no public market or over-the-counter market for
the Common Shares on such date, the fair market value as determined, in good
faith, by the Board or Committee in its sole discretion, and for purposes of a
sale of a Common Share as of any date, the actual sales price on that
date.

    

    (o)           “Incentive Stock
Option” shall
mean an option to purchase Common Shares from the Company that is granted under
Section 6
of the Plan and that is intended to meet the requirements of Section 422 of
the Code or any successor provision thereto.

    

    (p)           “Non-Qualified
Stock Option”
shall mean an option to purchase Common Shares from the Company that is granted
under Sections 6 or
10 of the Plan
and is not intended to be an Incentive Stock Option.

    

    (q)           “Non-Employee
Trustee” shall
mean a member of the Board who is not an officer or employee of the Company or
any Subsidiary or Affiliate.

    

     

    (r)           “Operating
Partnership” means Whitestone REIT Operating Partnership,
L.P.

    

    (s)           “Option” shall mean an Incentive
Stock Option or a Non-Qualified Stock Option.

    

    (t)           
“Option
Price” shall mean
the purchase price payable to purchase one Common Share upon the exercise of an
Option.

     

    
      
        
        

      

      
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    (u)           “Other Share-Based
Award” shall mean
any Award granted under Sections 9 or
10 of the
Plan.

    

    (v)           
“Participant” shall mean any Employee,
Trustee, Consultant or other person who receives an Award under the
Plan.

    

    (w)           “Performance
Award” shall mean
any Award granted under Section 8 of the
Plan.

    

    (x)    “Person”
shall mean any individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, government
or political subdivision thereof or other entity.

    

    (y)           “Restricted Common
Share” shall mean
any Common Share granted under Sections 7 or
10 of the
Plan.

    

    (z)           “Restricted Common
Share Unit” shall
mean any unit granted under Sections 7 or
10 of the
Plan.

     

    (aa)         “Restricted Unit
Award” means an award of units in the Operating Partnership granted to a
Participant under this Plan whereby the Participant has immediate rights of
ownership in the units underlying the award, but such units are subject to
restrictions in accordance with the terms and provisions of this Plan and the
limited partnership agreement of the Operating Partnership, as amended, and may
be subject to additional restrictions in accordance with the terms of an Award
Agreement pertaining to the Award, including provisions causing the units to be
subject to forfeiture by the individual until the earlier of (a) the time such
restrictions lapse or are satisfied, or (b) the time such shares are forfeited,
pursuant to the terms and provisions of any Award Agreement pertaining to the
Award.

    

    (bb)         “Retirement” shall mean, unless otherwise
defined in the applicable Award Agreement, retirement of a Participant from the
employ or service of the Company or any of its Subsidiaries or Affiliates in
accordance with the terms of the applicable Company retirement plan or, if a
Participant is not covered by any such plan, retirement on or after such
Participant’s 65th birthday.

    

    (cc)         “SEC” shall mean the Securities
and Exchange Commission or any successor thereto.

    

    (dd)         “Section 16” shall mean Section 16
of the Exchange Act and the rules promulgated thereunder and any successor
provision thereto as in effect from time to time.

    

    (ee)         “Section 162(m)”
shall mean Section 162(m) of the Code and the regulations promulgated
thereunder and any successor provision thereto as in effect from time to
time.

    

    (ff)          “Stock
Appreciation Right”
or “SAR” shall mean a stock
appreciation right granted under Sections 6 or
10 of the Plan
that entitles the holder to receive, with respect to each Common Share
encompassed by the exercise of such SAR, the amount determined by the Committee
and specified in an Award Agreement.  In the absence of such a
determination, the holder shall be entitled to receive, with respect to each
Common Share encompassed by the exercise of such SAR, the excess of the Fair
Market Value on
the date of exercise over the Fair Market Value on the date of
grant.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (gg)         “Subsidiary” shall mean any Person (other
than the Company) of which a majority of its voting power or its equity
securities or equity interest is owned directly or indirectly by the
Company.

    

    (hh)         “Substitute
Awards” shall
mean Awards granted solely in assumption of, or in substitution for, outstanding
awards previously granted by a company acquired by the Company or with which the
Company combines.

     

    (ii)          
“Trustee” shall mean a member of the
Board.

    

    
      	
              Section
      3.

            	
              Administration.

            

    

    

    3.1           Authority of
Committee.  The Plan shall be administered by the Committee,
which shall be appointed by and serve at the pleasure of the Board; provided,
however, with respect to Awards to Non-Employee Trustees, all references in the
Plan to the Committee shall be deemed to be references to the
Board.  Subject to the terms of the Plan and applicable law, and in
addition to other express powers and authorizations conferred on the Committee
by the Plan, the Committee shall have full power and authority in its discretion
to: (i) designate Participants; (ii) determine the type or types of Awards
to be granted to a Participant; (iii) determine the number of Common Shares
to be covered by, or with respect to which payments, rights or other matters are
to be calculated in connection with Awards; (iv) determine the timing,
terms, and conditions of any Award; (v) accelerate the time at which all or
any part of an Award may be settled or exercised; (vi) determine whether,
to what extent, and under what circumstances, Awards may be settled or exercised
in cash, Common Shares, other securities, other Awards or other property, or
canceled, forfeited or suspended and the method or methods by which Awards may
be settled, exercised, canceled, forfeited or suspended; (vii) determine
whether, to what extent, and under what circumstances cash, Common Shares, other
securities, other Awards, other property, and other amounts payable with respect
to an Award shall be deferred either automatically or at the election of the
holder thereof or of the Committee; (viii) interpret and administer the
Plan and any instrument or agreement relating to, or Award made under, the Plan;
(ix) except to the extent prohibited by Section 6.2,
amend or modify the terms of any Award at or after grant with the consent of the
holder of the Award; (x) establish, amend, suspend or waive such rules and
regulations and appoint such agents as it shall deem appropriate for the proper
administration of the Plan; and (xi) make any other determination and take
any other action that the Committee deems necessary or desirable for the
administration of the Plan, subject to the exclusive authority of the Board
under Section 14
hereunder to amend or terminate the Plan.  The exercise of an Option
or receipt of an Award shall be effective only if an Award Agreement shall have
been duly executed and delivered on behalf of the Company following the grant of
the Option or other Award.

    

    3.2          Committee Discretion
Binding.  Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the
Committee, may be made at any time and shall be final, conclusive, and binding
upon all Persons, including the Company, any Subsidiary or Affiliate, any
Participant and any holder or beneficiary of any Award.

    

    3.3          Delegation.  Subject
to the terms of the Plan, the Committee’s charter and applicable law, the
Committee may delegate to one or more officers or managers of the Company or of
any Subsidiary or Affiliate, or to a Committee of such officers or managers, the
authority, subject to such terms and limitations as the Committee shall
determine, to grant Awards to or to cancel, modify or waive rights with respect
to, or to alter, discontinue, suspend or terminate Awards held by Participants
who are not officers or trustees of the Company for purposes of Section 16
of the Exchange Act or who are otherwise not subject to such
section.

     

    
      
        
        

      

      
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              Section
      4.

            	
              Common
      Shares Available For Awards.

            

    

    

    4.1           Common Shares
Available.  Subject to the provisions of Section 4.2 hereof,
the maximum aggregate number of Common Shares that may be issued to Participants
and their beneficiaries under the Plan shall be 2,063,885 Common Shares as of
the Effective Date.  The maximum aggregate number of Common Shares
that may be issued under the Plan will be increased upon each issuance of Common
Shares by the Company (including issuances pursuant to the Plan) so that at any
time the maximum number of shares that may be issued under the Plan shall equal
12.5% of the aggregate number of Common Shares and units of the Operating
Partnership issued and outstanding (other than treasury shares and/or units
issued to or held by the Company).  Notwithstanding the foregoing and
subject to adjustment as provided in Section 4.2 hereof,
(i) no Participant may receive Options or SARs under the Plan in any calendar
year that, taken together, relate to more than 500,000 Common Shares and (ii)
the maximum number of Common Shares that may be issued by Options intended to be
Incentive Stock Options shall be 2,063,885 Common Shares. If, after the
Effective Date of the Plan, any Common Shares covered by an Award granted under
this Plan, or to which such an Award relates, are forfeited, or if such an Award
otherwise terminates, expires unexercised or is canceled, then the Common Shares
covered by such Award, or to which such Award relates, or the number of Common
Shares otherwise counted against the aggregate number of Common Shares with
respect to which Awards may be granted, to the extent of any such forfeiture,
termination, expiration or cancellation, shall again become Common Shares with
respect to which Awards may be granted in accordance with the formula described
above.  In addition, Common Shares that are canceled, tendered or
withheld in payment of all or part of the Option Price or exercise price of an
Award or in satisfaction of withholding tax obligations, and Common Shares that
are reacquired with cash tendered in payment of the Option Price or exercise
price of an Award, will be included in or added to the number of Common Shares
available for grant under the Plan.

    

    4.2          Adjustments.  In
the event that any unusual or non-recurring transactions, including an unusual
or non-recurring dividend or other distribution (whether in the form of an
extraordinary cash dividend, dividend of Common Shares, other securities or
other property), recapitalization, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Common Shares or other securities of the Company,
issuance of warrants or other rights to purchase Common Shares or other
securities of the Company, or other similar corporate transaction or event
affects the Common Shares, then the Committee shall in an equitable and
proportionate manner (and, as applicable, in such equitable and proportionate
manner as is consistent with Sections 422 and 409A of the Code and the
regulations thereunder and with Section 162(m) of the Code) either:
(i) adjust any or all of (1) the aggregate number of Common Shares or
other securities of the Company (or number and kind of other securities or
property) with respect to which Awards may be granted under the Plan;
(2) the number of Common Shares or other securities of the Company (or
number and kind of other securities or property) subject to outstanding Awards
under the Plan, provided that the number of Common Shares subject to any Award
shall always be a whole number; (3) the grant or exercise price with
respect to any Award under the Plan; and (4) the limits on the number of Common
Shares that may be granted to Participants under the Plan in any calendar year;
(ii) provide for an equivalent award in respect of securities of the
surviving entity of any merger, consolidation or other transaction or event
having a similar effect; or (iii) make provision for a cash payment to the
holder of an outstanding Award.

    

    4.3          Substitute
Awards.  Any Common Shares issued by the Company as Substitute
Awards in connection with the assumption or substitution of outstanding grants
from any acquired corporation shall not reduce the Common Shares available for
Awards under the Plan.

    

    4.4          Sources of Common Shares Deliverable
Under Awards.  Any Common Shares delivered pursuant to an Award
may consist, in whole or in part, of authorized and unissued Common Shares or of
issued Common Shares which have been reacquired by the Company.

     

    
      
        
        

      

      
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              Section
      5.

            	
              Eligibility.

            

    

    

    Any Employee, Trustee or Consultant
shall be eligible to be designated a Participant; provided, however, that
Non-Employee Trustees shall only be eligible to receive Awards granted
consistent with Section 10.

    

    
      	
              Section
      6.

            	
              Stock
      Options And Stock Appreciation
Rights.

            

    

    

    6.1          Grant.  Subject to
the provisions of the Plan including, without limitation, Section 3.3 above and
other applicable legal requirements, the Committee shall have sole and complete
authority to determine the Participants to whom Options and SARs shall be
granted, the number of Common Shares subject to each Award, the exercise price
and the conditions and limitations applicable to the exercise of each Option and
SAR.  An Option may be granted with or without a related
SAR.  A SAR may be granted with or without a related
Option.  The Committee shall have the authority to grant Incentive
Stock Options, and to grant Non-Qualified Stock Options.  In the case
of Incentive Stock Options, the terms and conditions of such grants shall be
subject to and comply with Section 422 of the Code, as from time to time
amended, and any regulations implementing such statute.  A person who
has been granted an Option or SAR under this Plan may be granted additional
Options or SARs under the Plan if the Committee shall so determine; provided,
however, that to the extent the aggregate Fair Market Value (determined at the
time the Incentive Stock Option is granted) of the Common Shares with respect to
which all Incentive Stock Options are exercisable for the first time by an
Employee during any calendar year (under all plans described in of
Section 422(d) of the Code of the Employee’s employer corporation and its
parent and Subsidiaries) exceeds $100,000, such Options shall be treated as
Non-Qualified Stock Options.

    

    6.2          Price.  The
Committee in its sole discretion shall establish the Option Price at the time
each Option is granted.  Except in the case of Substitute Awards, the
Option Price of an Option may not be less than one hundred percent (100%) of the
Fair Market Value of the Common Shares with respect to which the Option is
granted on the date of grant of such Option.  Notwithstanding the
foregoing and except as permitted by the provisions of Section 4.2 and
Section 14
hereof, the Committee shall not have the power to (i) amend the terms of
previously granted Options to reduce the Option Price of such Options, or
(ii) cancel such Options and grant substitute Options with a lower Option
Price than the canceled Options.  Except with respect to Substitute
Awards, SARs may not be granted at a price less than the Fair Market Value of a
Common Share on the date of grant.

    

    6.3          Term.  Subject to
the Committee’s authority under Section 3.1 and
the provisions of Section 6.6,
each Option and SAR and all rights and obligations thereunder shall expire on
the date determined by the Committee and specified in the Award
Agreement.  The Committee shall be under no duty to provide terms of
like duration for Options or SARs granted under the
Plan.  Notwithstanding the foregoing, no Option or SAR shall be
exercisable after the expiration of ten (10) years from the date such
Option or SAR was granted.

    

    6.4          Exercise.

    

    
      (a)    Each
Option and SAR shall be exercisable at such times and subject to such terms and
conditions as the Committee may, in its sole discretion, specify in the
applicable Award Agreement or thereafter.  The Committee shall have
full and complete authority to determine, subject to Section 6.6
herein, whether an Option or SAR will be exercisable in full at any time or from
time to time during the term of the Option or SAR, or to provide for the
exercise thereof in such installments, upon the occurrence of such events and at
such times during the term of the Option or SAR as the Committee may
determine.

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      (b)    The
Committee may impose such conditions with respect to the exercise of Options,
including without limitation, any relating to the application of federal, state
or foreign securities laws or the Code, as it may deem necessary or
advisable.  The exercise of any Option granted hereunder shall be
effective only at such time as the sale of Common Shares pursuant to such
exercise will not violate any state or federal securities or other
laws.

    

    

    
      (c)    An Option
or SAR may be exercised in whole or in part at any time, with respect to whole
Common Shares only, within the period permitted thereunder for the exercise
thereof, and shall be exercised by written notice of intent to exercise the
Option or SAR, delivered to the Company at its principal office, and payment in
full to the Company at the direction of the Committee of the amount of the
Option Price for the number of Common Shares with respect to which the Option is
then being exercised.

    

    

    
      (d)    Payment
of the Option Price shall be made in cash or cash equivalents, or, at the
discretion of the Committee, (i) by transfer, either actually or by
attestation, to the Company of Common Shares that have been held by the
Participant for at least six (6) months (or such lesser period as may be
permitted by the Committee), valued at the Fair Market Value of such Common
Shares on the date of exercise (or next succeeding trading date, if the date of
exercise is not a trading date), together with any applicable withholding taxes,
such transfer to be upon such terms and conditions as determined by the
Committee, or (ii) by a combination of such cash (or cash equivalents) and
such Common Shares; provided, however, that the optionee shall not be entitled
to tender Common Shares pursuant to successive, substantially simultaneous
exercises of an Option or any other stock option of the Company.  In
addition, if permitted by the Committee in its sole discretion, payment may also
be made in whole or in part in the form of an option to acquire Common Shares or
in the form of another Award hereunder (based, in each case, on the Fair Market
Value of such option or Award on the date the Option is exercised, as determined
by the Committee).  Subject to applicable securities laws, an Option
may also be exercised by delivering a notice of exercise of the Option and
simultaneously selling the Common Shares thereby acquired, pursuant to a
brokerage or similar agreement approved in advance by proper officers of the
Company, using the proceeds of such sale as payment of the Option Price,
together with any applicable withholding taxes.  Until the optionee
has been issued the Common Shares subject to such exercise, he or she shall
possess no rights as a shareholder with respect to such Common
Shares.

    

    

    
      (e)    At the
Committee’s discretion, the amount payable as a result of the exercise of an SAR
may be settled in cash, Common Shares or a combination of cash and Common
Shares.  A fractional Common Share shall not be deliverable upon the
exercise of a SAR but a cash payment will be made in lieu
thereof.

    

    

    6.5          Ten Percent Stock
Rule.  Notwithstanding any other provisions in the Plan, if at
the time an Option is otherwise to be granted pursuant to the Plan, the optionee
or rights holder owns directly or indirectly (within the meaning of
Section 424(d) of the Code) Common Shares of the Company possessing more
than ten percent (10%) of the total combined voting power of all classes of
Common Shares of the Company or its parent or Subsidiary or Affiliate
corporations (within the meaning of Section 422(b)(6) of the Code), then
any Incentive Stock Option to be granted to such optionee or rights holder
pursuant to the Plan shall satisfy the requirement of Section 422(c)(5) of
the Code, and the Option Price shall be not less than one hundred ten percent
(110%) of the Fair Market Value of the Common Shares of the Company, and such
Option by its terms shall not be exercisable after the expiration of five
(5) years from the date such Option is granted.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    6.6          Transferability of
Options.  An Option shall not be transferable or assignable
except by will or by the laws of descent and distribution and shall be
exercisable, during the Participant’s lifetime, only by the Participant;
provided, however, that in the event the Participant is incapacitated and unable
to exercise his or her Option, if such Option is a Non-Qualified Option, such
Option may be exercised by such Participant’s legal guardian, legal
representative, or other representative whom the Board deems appropriate based
on applicable facts and circumstances.

    

    
      	
              Section
      7.

            	
              Restricted
      Common Shares, Restricted Common Share Units and Restricted Unit
      Awards.

            

    

    

    7.1          Grant.

    

    
      (a)    Subject
to the provisions of the Plan and other applicable legal requirements, the
Committee shall have sole and complete authority to determine the Participants
to whom Restricted Common Shares and Restricted Common Share Units shall be
granted, the number of Restricted Common Shares and/or the number of Restricted
Common Share Units to be granted to each Participant, the duration of the period
during which, and the conditions under which, the Restricted Common Shares and
Restricted Common Share Units may be forfeited to the Company, and the other
terms and conditions of such Awards. The Restricted Common Share and Restricted
Common Share Unit Awards shall be evidenced by Award Agreements in such form as
the Committee shall from time to time approve, which agreements shall comply
with and be subject to the terms and conditions provided hereunder and any
additional terms and conditions established by the Committee that are consistent
with the terms of the Plan.

    

    

    
      (b)    Each
Restricted Common Share and Restricted Common Share Unit Award made under the
Plan shall be for such number of Common Shares as shall be determined by the
Committee and set forth in the Award Agreement containing the terms of such
Restricted Common Share or Restricted Common Share Unit Award.  Such
agreement shall set forth a period of time during which the grantee must remain
in the continuous employment of the Company in order for the forfeiture and
transfer restrictions to lapse.  If the Committee so determines, the
restrictions may lapse during such restricted period in installments with
respect to specified portions of the Common Shares covered by the Restricted
Common Share or Restricted Common Share Unit Award.  The Award
Agreement may also, in the discretion of the Committee, set forth performance or
other conditions under which restrictions on the Common Shares may lapse or that
will subject the Common Shares to forfeiture and transfer restrictions,
including by reference to those performance goals enumerated in Section 11
hereof.  The Committee may, at its discretion, waive all or any part
of the restrictions applicable to any or all outstanding Restricted Common Share
and Restricted Common Share Unit Awards.

    

    

    
      (c)    Subject
to the provisions of the Plan and other applicable legal requirements, the
Committee shall have sole and complete authority to determine the Participants
to whom Restricted Unit Awards shall be granted, the number of units in the
Operating Partnership to be granted to each Participant, and the other terms and
conditions of such Awards. Units in the Operating Partnership awarded pursuant
to a Restricted Unit Award may be subject to such terms, conditions and
restrictions as determined by the Committee for periods determined by the
Committee in addition to the terms, conditions and restrictions as contained in
the limited partnership agreement of the Operating
Partnership.

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    7.2          Delivery of Common Shares and
Transfer Restrictions.  At the time of a Restricted Common
Share Award, a certificate representing the number of Common Shares awarded
thereunder shall be registered in the name of the grantee.  Such
certificate shall be held by the Company or any custodian appointed by the
Company for the account of the grantee subject to the terms and conditions of
the Plan, and shall bear such a legend setting forth the restrictions imposed
thereon as the Committee, in its discretion, may determine.  The
applicable Award Agreement will specify whether a grantee has the right to
receive dividends and/or the right to vote with respect to the Restricted Common
Shares prior to the lapsing of transfer restrictions.  Unless
otherwise provided in the applicable Award Agreement, the grantee shall have all
other rights of a shareholder with respect to the Restricted Common Shares,
subject to the following restrictions: (i) the grantee shall not be
entitled to delivery of the stock certificate until the expiration of the
restricted period and the fulfillment of any other restrictive conditions set
forth in the Award Agreement with respect to such Common Shares; (ii) none
of the Common Shares may be sold, assigned, transferred, pledged, hypothecated
or otherwise encumbered or disposed of during such restricted period or until
after the fulfillment of any such other restrictive conditions; and
(iii) except as otherwise determined by the Committee at or after grant,
all of the Common Shares shall be forfeited and all rights of the grantee to
such Common Shares shall terminate, without further obligation on the part of
the Company, unless the grantee remains in the continuous employment of the
Company for the entire restricted period in relation to which such Common Shares
were granted and unless any other restrictive conditions relating to the
Restricted Common Share Award are met.  Unless otherwise provided in
the applicable Award Agreement, any Common Shares, any other securities of the
Company and any other property (except for cash dividends) distributed with
respect to the Common Shares subject to Restricted Common Share Awards shall be
subject to the same restrictions, terms and conditions as such restricted Common
Shares.

    

    7.3          Termination of
Restrictions.  At the end of the restricted period and provided
that any other restrictive conditions of the Restricted Common Share Award are
met, or at such earlier time as otherwise determined by the Committee, all
restrictions set forth in the Award Agreement relating to the Restricted Common
Share Award or in the Plan shall lapse as to the restricted Common Shares
subject thereto, and a stock certificate for the appropriate number of Common
Shares, free of the restrictions and restricted stock legend, shall be delivered
to the Participant or the Participant’s beneficiary or estate, as the case may
be.

    

    7.4          Payment of Restricted Common Share
Units.  Each Restricted Common Share Unit shall have a value
equal to the Fair Market Value of a Common Share.  Restricted Common
Share Units shall be paid in cash, Common Shares, other securities or other
property, as determined in the sole discretion of the Committee, upon the lapse
of the restrictions applicable thereto, or otherwise in accordance with the
applicable Award Agreement.  The applicable Award Agreement will
specify whether a Participant will be entitled to receive dividend rights in
respect of Restricted Stock Units at the time of any payment of dividends to
shareholders on Common Shares.  If the applicable Award Agreement
specifies that a Participant will be entitled to receive dividend rights, (i)
the amount of any such dividend right shall equal the amount that would be
payable to the Participant as a shareholder in respect of a number of Common
Shares equal to the number of Restricted Stock Units then credited to the
Participant, (ii) any such dividend right shall be paid in accordance with the
Company’s payment practices as may be established from time to time and as of
the date on which such dividend would have been payable in respect of
outstanding Common Shares, and (iii) the applicable Award Agreement will specify
whether dividend equivalents shall be paid in respect of Restricted Common Share
Units that are not yet vested.  Except as otherwise determined by the
Committee at or after grant, Restricted Common Share Units may not be sold,
assigned, transferred, pledged, hypothecated or otherwise encumbered or disposed
of, and all Restricted Common Share Units and all rights of the grantee to such
Restricted Common Share Units shall terminate, without further obligation on the
part of the Company, unless the grantee remains in continuous employment of the
Company for the entire restricted period in relation to which such Restricted
Common Share Units were granted and unless any other restrictive conditions
relating to the Restricted Common Share Unit Award are met.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              
                Section
      8.

              

            	Performance Awards.

    

     

    8.1          Grant.  The
Committee shall have sole and complete authority to determine the Participants
who shall receive a Performance Award, which shall consist of a right that is
(i) denominated in cash or Common Shares (including but not limited to
Restricted Common Shares and Restricted Common Share Units), (ii) valued,
as determined by the Committee, in accordance with the achievement of such
performance goals during such performance periods as the Committee shall
establish, and (iii) payable at such time and in such form as the Committee
shall determine.

    

    8.2          Terms and
Conditions.  Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine the performance goals
to be achieved during any performance period, the length of any performance
period, the amount of any Performance Award and the amount and kind of any
payment or transfer to be made pursuant to any Performance Award, and may amend
specific provisions of the Performance Award; provided, however, that such
amendment may not adversely affect existing Performance Awards made within a
performance period commencing prior to implementation of the
amendment.

    

    8.3          Payment of Performance
Awards.  Performance Awards may be paid in a lump sum or in
installments following the close of the performance period or, in accordance
with the procedures established by the Committee, on a deferred
basis.  Termination of employment prior to the end of any performance
period, other than for reasons of death or Disability, will result in the
forfeiture of the Performance Award, and no payments will be made.  A
Participant’s rights to any Performance Award may not be sold, assigned,
transferred, pledged, hypothecated or otherwise encumbered or disposed of in any
manner, except by will or the laws of descent and distribution, and/or except as
the Committee may determine at or after grant.

    

    
      	
              Section
      9.

            	
              Other
      Share-Based Awards.

            

    

    

    The Committee shall have the
authority to determine the Participants who shall receive an Other Share-Based
Award, which shall consist of any right that is (i) not an Award described
in Sections 6 or
7 above and
(ii) an Award of Common Shares or an Award denominated or payable in,
valued in whole or in part by reference to, or otherwise based on or related to,
Common Shares (including, without limitation, securities convertible into Common
Shares), as deemed by the Committee to be consistent with the purposes of the
Plan.  Subject to the terms of the Plan and any applicable Award
Agreement, the Committee shall determine the terms and conditions of any such
Other Share-Based Award.

    

    
      	
              Section
      10.

            	
              Non-Employee
      Trustee Awards.

            

    

    

    10.1         The
Board may provide that all or a portion of a Non-Employee Trustee’s annual
retainer, meeting fees and/or other awards or compensation as determined by the
Board, be payable (either automatically or at the election of a Non-Employee
Trustee) in the form of Non-Qualified Stock Options, Restricted Common Shares,
Restricted Common Share Units and/or Other Share-Based Awards, including
unrestricted Common Shares.  The Board shall determine the terms and
conditions of any such Awards, including the terms and conditions which shall
apply upon a termination of the Non-Employee Trustee’s service as a member of
the Board, and shall have full power and authority in its discretion to
administer such Awards, subject to the terms of the Plan and applicable
law.

    

    10.2         Subject
to applicable legal requirements, the Board may also grant Awards to
Non-Employee Trustees pursuant to the terms of the Plan, including any Award
described in Sections 6,
7 or 9 above.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
      11.

            	
              Provisions
      Applicable To Covered Officers And Performance
  Awards.

            

    

    

    11.1         Notwithstanding
anything in the Plan to the contrary, unless the Committee determines that a
Performance Award to be granted to a Covered Officer should not qualify as
“performance-based compensation” for purposes of Section 162(m), Performance
Awards granted to Covered Officers shall be subject to the terms and provisions
of this Section 11.  Accordingly,
unless otherwise determined by the Committee, if any provision of the Plan or
any Award Agreement relating to such an Award does not comply or is inconsistent
with Section 162(m), such provision shall be construed or deemed amended to
the extent necessary to conform to such requirements, and no provision shall be
deemed to confer upon the Committee discretion to increase the amount of
compensation otherwise payable to a Covered Officer in connection with any such
Award upon the attainment of the performance criteria established by the
Committee.

    

    11.2         The
Committee may grant Performance Awards to Covered Officers based solely upon the
attainment of performance targets related to one or more performance goals
selected by the Committee from among the goals specified below.  For
the purposes of this Section 11,
performance goals shall be limited to one or more of the following Company,
Subsidiary, operating unit, business segment or division financial performance
measures:

    

    
      	 
      	
              (a)

            	
              earnings
      before interest, taxes, depreciation and/or
  amortization;

            
	 
      	 
      	 
      
	 
      	
              (b)

            	
              operating
      income or profit;

            
	 
      	 
      	 
      
	 
      	
              (c)

            	
              operating
      efficiencies;

            
	 
      	 
      	 
      
	 
      	
              (d)

            	
              return
      on equity, assets, capital, capital employed or
  investment;

            
	 
      	 
      	 
      
	 
      	
              (e)

            	
              net
      income;

            
	 
      	 
      	 
      
	 
      	
              (f)

            	
              earnings
      per share;

            
	 
      	 
      	 
      
	 
      	
              (g)

            	
              utilization;

            
	 
      	 
      	 
      
	 
      	
              (h)

            	
              net
      investment income;

            
	 
      	 
      	 
      
	 
      	
              (i)

            	
              gross
      profit;

            
	 
      	 
      	 
      
	 
      	
              (j)

            	
              loan
      loss ratios;

            
	 
      	 
      	 
      
	 
      	
              (k)

            	
              stock
      price or total shareholder return;

            
	 
      	 
      	 
      
	 
      	
              (l)

            	
              net
      asset growth;

            
	 
      	 
      	 
      
	 
      	
              (m)

            	
              debt
      reduction;

            
	 
      	 
      	 
      
	 
      	
              (n)

            	
              funds
      from operations;

            
	 
      	 
      	 
      
	 
      	
              (o)

            	
              strategic
      business objectives, consisting of one or more objectives based on meeting
      specified cost targets, business expansion goals and goals relating to
      acquisitions or divestitures;

            

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
      	 
      	
              (p)

            	
              property
      acquisitions;

            
	 
      	 
      	 
      
	 
      	
              (q)

            	
              corporate
      acquisitions and mergers;

            
	 
      	 
      	 
      
	 
      	
              (r)

            	
              equity
      offerings; or

            
	 
      	 
      	 
      
	 
      	
              (s)

            	
              any
      combination thereof.

            

    

    

    Each goal
may be expressed on an absolute and/or relative basis, may be based on or
otherwise employ comparisons based on internal targets, the past performance of
the Company or any Subsidiary, operating unit, business segment or division of
the Company and/or the past or current performance of other companies, and in
the case of earnings-based measures, may use or employ comparisons relating to
capital, shareholders’ equity and/or Common Shares outstanding, or to assets or
net assets.  The Committee may appropriately adjust any evaluation of
performance under criteria set forth in this Section 11.2 to
exclude any of the following events that occurs during a performance
period:  (i) asset write-downs, (ii) litigation or claim judgments or
settlements, (iii) the effect of changes in tax law, accounting principles or
other such laws or provisions affecting reported results, (iv) accruals for
reorganization and restructuring programs and (v) any extraordinary
non-recurring items as described in Financial Accounting Standard 144 and/or in
management’s discussion and analysis of financial condition and results of
operations appearing in the Company’s annual report to shareholders for the
applicable year.

    

    11.3         With
respect to any Covered Officer, the maximum annual number of Common Shares in
respect of which all Performance Awards may be granted under Section 8 of the
Plan is 500,000 and the maximum amount of all Performance Awards that are
settled in cash and that may be granted under Section 8 of the Plan
in any year is $5,000,000.

    

    11.4         To
the extent necessary to comply with Section 162(m), with respect to grants
of Performance Awards, no later than 90 days following the commencement of
each performance period (or such other time as may be required or permitted by
Section 162(m) of the Code), the Committee shall, in writing,
(1) select the performance goal or goals applicable to the performance
period, (2) establish the various targets and bonus amounts which may be
earned for such performance period, and (3) specify the relationship
between performance goals and targets and the amounts to be earned by each
Covered Officer for such performance period.  Following the completion
of each performance period, the Committee shall certify in writing whether the
applicable performance targets have been achieved and the amounts, if any,
payable to Covered Officers for such performance period.  In
determining the amount earned by a Covered Officer for a given performance
period, subject to any applicable Award Agreement, the Committee shall have the
right to reduce (but not increase) the amount payable at a given level of
performance to take into account additional factors that the Committee may deem
relevant in its sole discretion to the assessment of individual or corporate
performance for the performance period.

    

    
      	
              Section
      12.

            	
              Termination
      Of Employment.

            

    

    

    The Committee shall have the full
power and authority to determine the terms and conditions that shall apply to
any Award upon a termination of employment with the Company, its Subsidiaries
and Affiliates, including a termination by the Company, by a Participant
voluntarily, or by reason of death, Disability or Retirement, and may provide
such terms and conditions in the Award Agreement or in such rules and
regulations as it may prescribe.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	
              Section
      13.

            	
              Change
      In Control.

            

    

    

    The Committee may specify in the
applicable Award Agreement at or after grant, or otherwise by resolution prior
to a Change in Control, that all or a portion of the outstanding Awards shall
vest, become immediately exercisable or payable and have all restrictions lifted
upon a Change in Control.

    

    
      	
              Section
      14.

            	
              Amendment
      And Termination.

            

    

    

    14.1         Amendments to the
Plan.  The Board may amend, alter, suspend, discontinue or
terminate the Plan or any portion thereof at any time; provided that no such
amendment, alteration, suspension, discontinuation or termination shall be made
without shareholder approval if (a) such approval is necessary to comply with
any tax or regulatory requirement for which or with which the Board deems it
necessary or desirable to comply or (b) if such amendment, alteration,
suspension, discontinuation or termination constitutes a material revision to
the Plan. For the purpose of the foregoing, a material revision shall be deemed
to include (but shall not be limited to): (i) a material increase in the number
of shares subject to the Plan under Section 4; (ii) an
expansion of the types of Awards under the Plan; (iii) a material expansion of
the class of employees, trustees or other Participants eligible to participate
in the Plan; (iv) a material extension of the term of the Plan; (v) a material
change to the method of determining the Option Price under the Plan; and (vi) an
amendment to Section
6.2 of the Plan. A material revision shall not include any revision that
curtails rather than expands the scope of the Plan.

    

    14.2         Amendments to
Awards.  Subject to the restrictions of Section 6.2, the
Committee may waive any conditions or rights under, amend any terms of or alter,
suspend, discontinue, cancel or terminate, any Award theretofore granted,
prospectively or retroactively; provided that any such waiver, amendment,
alteration, suspension, discontinuance, cancellation or termination that would
materially and adversely affect the rights of any Participant or any holder or
beneficiary of any Award theretofore granted shall not to that extent be
effective without the consent of the affected Participant, holder or
beneficiary.

    

    14.3         Adjustments of Awards Upon the
Occurrence of Certain Unusual or Nonrecurring Events.  The
Committee is hereby authorized to make equitable and proportionate adjustments
in the terms and conditions of, and the criteria included in, Awards in
recognition of unusual or nonrecurring events (and shall make such adjustments
for events described in Section 4.2
hereof) affecting the Company, any Subsidiary or Affiliate, or the financial
statements of the Company or any Subsidiary or Affiliate, or of changes in
applicable laws, regulations or accounting principles.

    

    14.4          Section 409A
Compliance.  No Award (or modification thereof) shall provide
for deferral of compensation that does not comply with Section 409A of the Code
unless the Committee, at the time of grant, specifically provides that the Award
is not intended to comply with Section 409A of the
Code.  Notwithstanding any provision of this Plan to the contrary, if
one or more of the payments or benefits received or to be received by a
Participant pursuant to an Award would cause the Participant to incur any
additional tax or interest under Section 409A of the Code, the Committee may
reform such provision to maintain to the maximum extent practicable the original
intent of the applicable provision without violating the provisions of Section
409A of the Code.

    

    
      	
              Section
      15.

            	
              General
      Provisions.

            

    

    

    15.1         Limited Transferability of Awards.
Except as otherwise provided in the Plan, no Award shall be assigned,
alienated, pledged, attached, sold or otherwise transferred or encumbered by a
Participant, except by will or the laws of descent and
distribution.  No transfer of an Award by will or by laws of descent
and distribution shall be effective to bind the Company unless the Company shall
have been furnished with written notice thereof and an authenticated copy of the
will and/or such other evidence as the Committee may deem necessary or
appropriate to establish the validity of the transfer.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    15.2         Dividend
Equivalents.  In the sole and complete discretion of the
Committee, an Award may provide the Participant with dividends or dividend
equivalents, payable in cash, Common Shares, other securities or other property
on a current or deferred basis.  All dividend or dividend equivalents
which are not paid currently may, at the Committee’s discretion, accrue
interest, be reinvested into additional Common Shares, or, in the case of
dividends or dividend equivalents credited in connection with Performance
Awards, be credited as additional Performance Awards and paid to the Participant
if and when, and to the extent that, payment is made pursuant to such
Award.  The total number of Common Shares available for grant under
Section 4
shall not be reduced to reflect any dividends or dividend equivalents that are
reinvested into additional Common Shares or credited as Performance
Awards.

    

    15.3         No Rights to
Awards.  No Person shall have any claim to be granted any
Award, and there is no obligation for uniformity of treatment of Participants or
holders or beneficiaries of Awards.  The terms and conditions of
Awards need not be the same with respect to each Participant.

    

    15.4         Common Share
Certificates.  All certificates for Common Shares or other
securities of the Company or any Subsidiary or Affiliate delivered under the
Plan pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under
the Plan or the rules, regulations and other requirements of the SEC or any
state securities commission or regulatory authority, any stock exchange or other
market upon which such Common Shares or other securities are then listed, and
any applicable federal or state laws, and the Committee may cause a legend or
legends to be put on any such certificates to make appropriate reference to such
restrictions.

    

    15.5         Withholding.  A
Participant may be required to pay to the Company or any Subsidiary or Affiliate
and the Company or any Subsidiary or Affiliate shall have the right and is
hereby authorized to withhold from any Award, from any payment due or transfer
made under any Award or under the Plan, or from any compensation or other amount
owing to a Participant the amount (in cash, Common Shares, other securities,
other Awards or other property) of any applicable withholding or other
tax-related obligations in respect of an Award, its exercise or any other
transaction involving an Award, or any payment or transfer under an Award or
under the Plan and to take such other action as may be necessary in the opinion
of the Company to satisfy all obligations for the payment of such
taxes.  The Committee may provide for additional cash payments to
holders to defray or offset any tax arising from the grant, vesting, exercise or
payment of any Award.

    

    15.6         Award
Agreements.  Each Award hereunder shall be evidenced by an
Award Agreement that shall be delivered to the Participant and may specify the
terms and conditions of the Award and any rules applicable
thereto.  In the event of a conflict between the terms of the Plan and
any Award Agreement, the terms of the Plan shall prevail.  The
Committee shall, subject to applicable law, determine the date an Award is
deemed to be granted.  The Committee or, except to the extent
prohibited under applicable law, its delegate(s) may establish the terms of
agreements or other documents evidencing Awards under this Plan and may, but
need not, require as a condition to any such agreement’s or document’s
effectiveness that such agreement or document be executed by the Participant,
including by electronic signature or other electronic indication of acceptance,
and that such Participant agree to such further terms and conditions as
specified in such agreement or document.  The grant of an Award under
this Plan shall not confer any rights upon the Participant holding such Award
other than such terms, and subject to such conditions, as are specified in this
Plan as being applicable to such type of Award (or to all Awards) or as are
expressly set forth in the agreement or other document evidencing such
Award.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    15.7         No Limit on Other Compensation
Arrangements.  Nothing contained in the Plan shall prevent the
Company or any Subsidiary or Affiliate from adopting or continuing in effect
other compensation arrangements, which may, but need not, provide for the grant
of Options, Restricted Common Shares, Restricted Common Share Units, Other
Share-Based Awards or other types of Awards provided for hereunder.

    

    15.8         No Right to
Employment.  The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or
any Subsidiary or Affiliate.  Further, the Company or a Subsidiary or
Affiliate may at any time dismiss a Participant from employment, free from any
liability or any claim under the Plan, unless otherwise expressly provided in an
Award Agreement.

    

    15.9         No Rights as
Shareholder.  Subject to the provisions of the Plan and the
applicable Award Agreement, no Participant or holder or beneficiary of any Award
shall have any rights as a shareholder with respect to any Common Shares to be
distributed under the Plan until such person has become a holder of such Common
Shares.  Notwithstanding the foregoing, in connection with each grant
of Restricted Common Shares hereunder, the applicable Award Agreement shall
specify if and to what extent the Participant shall not be entitled to the
rights of a shareholder in respect of such Restricted Common
Shares.

    

    15.10       Governing Law.  The
validity, construction and effect of the Plan and any rules and regulations
relating to the Plan and any Award Agreement shall be determined in accordance
with the laws of the State of Maryland without giving effect to conflicts of
laws principles.

    

    15.11       Severability.  If
any provision of the Plan or any Award is, or becomes, or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or as to any Person or
Award, or would disqualify the Plan or any Award under any law deemed applicable
by the Committee, such provision shall be construed or deemed amended to conform
to the applicable laws, or if it cannot be construed or deemed amended without,
in the determination of the Committee, materially altering the intent of the
Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award and the remainder of the Plan and any such Award shall remain in
full force and effect.

    

    15.12       Other Laws.  The
Committee may refuse to issue or transfer any Common Shares or other
consideration under an Award if, acting in its sole discretion, it determines
that the issuance or transfer of such Common Shares or such other consideration
might violate any applicable law or regulation (including applicable non-U.S.
laws or regulations) or entitle the Company to recover the same under Exchange
Act Section 16(b), and any payment tendered to the Company by a
Participant, other holder or beneficiary in connection with the exercise of such
Award shall be promptly refunded to the relevant Participant, holder or
beneficiary.

    

    15.13       No Trust or Fund
Created.  Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary
relationship between the Company or any Subsidiary or Affiliate and a
Participant or any other Person.  To the extent that any Person
acquires a right to receive payments from the Company or any Subsidiary or
Affiliate pursuant to an Award, such right shall be no greater than the right of
any unsecured general creditor of the Company or any Subsidiary or
Affiliate.

    

    15.14      
No Fractional Common
Shares.  No fractional Common Shares shall be issued or
delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred in
lieu of any fractional Common Shares or whether such fractional Common Shares or
any rights thereto shall be canceled, terminated or otherwise
eliminated.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    15.15        Headings.  Headings
are given to the sections and subsections of the Plan solely as a convenience to
facilitate reference.  Such headings shall not be deemed in any way
material or relevant to the construction or interpretation of the Plan or any
provision thereof.

    

    
      	
              Section
      16.

            	
              Term
      Of The Plan.

            

    

    

    16.1          Effective Date. Subject to
the approval of the shareholders of the Company at the Company’s 2008 annual
meeting of its shareholders, the Plan shall be effective as of July 29, 2008
(the “Effective
Date”); provided, however, that to the extent that Awards are granted
under the Plan prior to its approval by shareholders, the Awards shall be
contingent on approval of the Plan by the shareholders of the Company at such
annual meeting.

    

    16.2         Expiration
Date.  No new Awards shall be granted under the Plan after the
tenth anniversary of the Effective Date.  Unless otherwise expressly
provided in the Plan or in an applicable Award Agreement, any Award granted
hereunder may, and the authority of the Board or the Committee to amend, alter,
adjust, suspend, discontinue or terminate any such Award or to waive any
conditions or rights under any such Award shall, continue after the tenth
anniversary of the Effective Date.

     

     

     

    17ex10-1.htm

    
      
        

      

    

    Exhibit
10.1

    

    EMPLOYMENT
AGREEMENT

    

    THIS EMPLOYMENT AGREEMENT (the
“Agreement”) is dated as of July 28, 2008 between NeedleTech Products, Inc., a
Massachusetts corporation (the “Company”), and Ronald Routhier (the
“Employee”).

    

    INTRODUCTION

    

    The Company and the Employee desire to
enter into an employment agreement embodying the terms and conditions of the
Employee’s employment, effective as of, and contingent upon, the closing of the
purchase and sale transaction contemplated by the Stock Purchase Agreement dated
as of July 16, 2008 with respect to NeedleTech Products, Inc., by and among
Theragenics Corporation, Ronald Routhier, Richard Routhier, Russell Small, and
Rockland Trust Company as special fiduciary and trustee of the NeedleTech
Products, Inc. Employee Stock Ownership Plan.

    

    NOW, THEREFORE, the parties agree as
follows:

    

    1.           Definitions

    

    (a)           “Affiliate” means any person, firm, corporation,
partnership, association or entity that, directly or indirectly or through one
or more intermediaries, controls, is controlled by or is under common control
with the Company. For these purposes, “control” shall mean the direct or
indirect ownership of equity securities of the applicable entity possessing the
right to more than fifty percent (50%) of the combined ordinary voting power of
the outstanding voting equity securities of such entity.

    

    (b)           “Applicable
Period” means the period of
the Employee’s employment hereunder and for two (2) years after termination of
employment.

    

    (c)           “Area” means the United
States.

    

    (d)           “ Board of
Directors” means the Board
of Directors of Theragenics Corporation.

    

    (e)           “Business of
the Company” means any
business that involves the manufacture, production, sale, marketing, promotion,
exploitation, development and distribution of wound closure medical devices
(including but not limited to sutures, cassettes, and glues), cardiac pacing
cables, brachytherapy needles, brachytherapy seed spacers, brachytherapy
sleeves, palladium-l03, temporary or permanently implantable devices for use in
the treatment of cancer, restenosis or macular degeneration, vascular access
devices, specialty medical needles, needle systems and related hand-held single
use medical devices or other medical products manufactured or sold by the
Company or any of its Affiliates, but only to the extent that such devices and
products are the same as or similar to a product manufactured, produced, sold,
marketed, promoted, exploited, developed or distributed by the Company or any of
its Affiliates at any time during the period of the Employee’s employment under
this Agreement, or is in an active state of development by the Company or any of
its Affiliates as evidenced by establishment of a design history file at any
time during the period of the Employee’s employment under this
Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (f)           “Cause” means the occurrence of any of the
following events: (i) willful and continued failure (other than such failure
resulting from the Employee’s incapacity during physical or mental illness) by
the Employee to substantially perform the Employee’s duties with the Company or
an Affiliate; (ii) conduct by the Employee that amounts to willful misconduct or
gross negligence; (iii) any act by the Employee of fraud, misappropriation,
dishonesty, embezzlement or similar conduct against the Company or an Affiliate;
(iv) commission by the Employee of a felony or any other crime involving
dishonesty; (v) illegal use by the Employee of alcohol or drugs; or (vi) a
material breach of the Agreement by the Employee.

    

    (g)           “Change in
Control”
means

    

    (1)           the acquisition by any individual,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d­3 promulgated under
the Exchange Act) of voting securities of Theragenics Corporation where such
acquisition causes such person to own thirty-five percent (35%) or more of the
combined voting power of the then outstanding voting securities of Theragenics
Corporation entitled to vote generally in the election of directors (the
“Outstanding Voting Securities”); provided, however, that for purposes of this
Subsection (1), the following acquisitions shall not be deemed to result in a
Change of Control: (i) any acquisition directly from Theragenics Corporation,
(ii) any acquisition by Theragenics Corporation, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by Theragenics
Corporation or any corporation controlled by Theragenics Corporation or (iv) any
acquisition by any corporation pursuant to a transaction that complies with
clauses (i), (ii) and (iii) of Subsection (3) below; and provided, further, that
if any Person’s beneficial ownership of the Outstanding Voting Securities
reaches or exceeds thirty-five percent (35%) as a result of a transaction
described in clause (i) or (ii) above, and such Person subsequently acquires
beneficial ownership of additional voting securities of Theragenics Corporation,
such subsequent acquisition shall be treated as an acquisition that causes such
Person to own thirty-five percent (35%) or more of the Outstanding Voting
Securities; or

    

    (2)            individuals who as of the date hereof,
constitute the Board of Directors (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board of Directors; provided, however,
that any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the shareholders of Theragenics
Corporation, was approved by a vote of at least two-thirds of the directors then
comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of an actual or
threatened election contest with respect to the election or removal of directors
or other actual or threatened solicitation of proxies or consents by or on
behalf of a Person other than the Board of Directors; or

    

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    (3)            the approval by the shareholders of
Theragenics Corporation of a reorganization, merger or consolidation or sale or
other disposition of all or substantially all of the assets of Theragenics
Corporation (“Business Combination”) or, if consummation of such Business
Combination is subject, at the time of such approval by shareholders, to the
consent of any government or governmental agency, the obtaining of such consent
(either explicitly or implicitly by consummation); excluding, however, such a
Business Combination pursuant to which (i) all or substantially all of the
individuals and entities who were the beneficial owners of the Outstanding
Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 60% of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation that as a result of
such transaction owns Theragenics Corporation or all or substantially all of
Theragenics Corporation’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Voting
Securities, (ii) no Person (excluding any employee benefit plan (or related
trust) of Theragenics Corporation or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly, thirty-five
percent (35%) or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the
combined voting power of the then outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination and (iii) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

    

    (4)            approval by the shareholders of
Theragenics Corporation of a complete liquidation or dissolution of Theragenics
Corporation.

    

    Notwithstanding the foregoing, no Change
of Control shall be deemed to have occurred for purposes of this Agreement by
reason of any actions or events in which the Employee participates in a capacity
other than in the Employee’s capacity as an employee.

    

    (h)           “Company
Invention” means any
Invention which is conceived by the Employee alone or in a joint effort with
others during the period of the Employee’s employment hereunder or prior thereto
while an employee of or consultant to the Company or an Affiliate which (i) may
be reasonably expected to be used in a product of the Company or an Affiliate,
or a product similar to a product of the Company or an Affiliate, (ii) results
from work that the Employee has been assigned as part of the Employee’s duties
as an employee of or consultant to the Company or an Affiliate, (iii) is in an
area of technology which is the same or substantially related to the areas of
technology with which the Employee is involved in the performance of the
Employee’s duties as an employee of the Company or an Affiliate, or (iv) is
useful, or which the Employee reasonably expects may be useful, in any
manufacturing or product design process of the Company or an
Affiliate.

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    (i)           “Competing
Business” means any person,
firm, corporation, joint venture or other business entity which is engaged in
the Business of the Company (or any aspect thereof) within the
Area.

    

    (j)           “Confidential
Information” means data and
information relating to the business of the Company or an Affiliate which is or
has been disclosed to the Employee or of which the Employee became aware as a
consequence of or through the Employee’s relationship to the Company or an
Affiliate and which has value to the Company or an Affiliate and is not
generally known to its competitors. Confidential Information shall not include
any data or information that has been voluntarily disclosed to the public by the
Company or an Affiliate (except where such public disclosure has been made by
the Employee without authorization) or that has been independently developed and
disclosed by others, or that otherwise enters the public domain through lawful
means.

    

    (k)           “Disability” means the inability of the Employee to
perform any of the Employee’s duties hereunder due to a physical, mental, or
emotional impairment, as determined by an independent qualified physician (who
may be engaged by the Company), for a ninety (90) consecutive day period or for
an aggregate of one hundred eighty (180) days during any three hundred
sixty-five (365) day period.

    

    (l)           “Good
Reason” means the
occurrence of any of the following events which is not corrected by the Company
within thirty (30) days after the Employee’s written notice to the Company of
the same: (i) the nature of the Employee’s duties or the scope of the Employee’s
responsibilities are materially modified, without the Employee’s consent, to
duties or responsibilities that are consistent with a lower level position in
the Company, (ii) the Employee is required to report, without the Employee’s
consent, to a supervisor in a different and lower level position than is set
forth in Section 2(a) in the Company, (iii) the Company changes the location of
the Employee’s place of employment, without the Employee’s consent, to more than
fifty (50) miles from its present location, (iv) a material breach of this
Agreement by the Company; provided that with respect to any of the foregoing
events, the Employee gives the Company notice of the event within thirty (30)
days of the date of the event, the Company fails to cure the event within thirty
(30) days after receipt of such notice, and the Employee resigns effective upon
not less than fourteen (14) days, and not more than thirty (30) days notice to
the Company after the expiration of the Company’s thirty (30) day cure
period.

    

    (m)           “Invention” means any discovery, whether or not
patentable, including, but not limited to, any useful process, method, formula,
technique, machine, manufacture, composition of matter, algorithm or computer
program, as well as improvements thereto, which is new or which the Employee has
a reasonable basis to believe may be new.

    

    (n)           “Stock
Purchase Agreement” means
the stock purchase agreement referred to in the Introduction to this
Agreement.

    

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (o)           “Termination
Date” means the date which
corresponds to the first to occur of (i) the death or Disability of the
Employee, (ii) the last day of the Term as provided in Section 4(a) below or
(iii) the date set forth in a notice given pursuant to Section 4(b)
below.

    

    (p)           “Trade
Secrets” means information
relating to the business of the Company or an Affiliate, including, but not
limited to, technical or nontechnical data, formulas, patterns, compilations,
programs, devices, methods, techniques, drawings, processes, financial data,
financial plans, product plans or lists of actual or potential customers or
suppliers which (i) derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by,
other persons who can obtain economic value from its disclosure or use, and (ii)
is the subject of efforts that are reasonable under the circumstances to
maintain its secrecy.

    

    (q)           “Work” means a copyrightable work of
authorship, including without limitation, any technical descriptions for
products, user’s guides, illustrations, advertising materials, computer programs
(including the contents of read only memories) and any contribution to such
materials.

    

     

    
      	 2.	 	Terms and Conditions of
      Employment.

    

     

    (a)           Employment. The Company hereby employs the Employee
as its President and the Employee accepts such employment with the Company in
such capacity and agrees to serve as President of the Company as long as the
Employee is appointed to such position, subject to the terms and conditions
hereof. The Employee shall report to the Chief Executive Officer of Theragenics
Corporation and shall have such authority and responsibilities not inconsistent
with the Employee’s position as shall reasonably be assigned to the Employee
from time to time.

    

    (b)           Exclusivity. Throughout the Employee’s employment
hereunder, the Employee shall devote substantially all the Employee’s time,
energy and skill during regular business hours to the performance of the duties
of the Employee’s employment (vacations and reasonable absences due to illness
excepted), shall faithfully and industriously perform such duties, and shall
diligently follow and implement all management policies and decisions of the
Company.

    

     

    
      	 3.	 	 Compensation.

    

           

    (a)           Base
Salary. In consideration
for the Employee’s services hereunder, the Company shall pay to the Employee an
annual base salary in the amount of $205,000. The Employee’s annual base salary
shall be reviewed at least annually by the Compensation Committee of the Board
of Directors of Theragenics Corporation (the “Compensation Committee”) and the
Board of Directors of Theragenics Corporation or the Compensation Committee may
approve an increase in the Employee’s annual base salary from time to time. The
Company shall pay annual base salary in accordance with the normal payroll
payment practices of the Company and subject to such deductions and withholdings
as law or policies of the Company, from time to time in effect,
require.

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    (b)           Short-Term
Incentive Plan. Beginning
as of January 1, 2009, the Employee shall be entitled to participate in
short-term incentive plans or programs applicable generally to similarly
situated management employees of the Company, subject to the terms of the plan
or program and the conditions established by the Compensation Committee or the
Board of Directors of Theragenics Corporation, and subject to the Company’s or
Theragenics Corporation’s right to amend or terminate the plan or program at any
time.

    

    (c)           Stock Based
Compensation. Stock options
or other stock-based compensation will be awarded to the Employee at the
discretion of the Compensation Committee or the Board of Directors of
Theragenics Corporation, and pursuant to the stock incentive plan, of the
Company or Theragenics Corporation.

    

    (d)           Vacation. The Employee shall be entitled to
vacation in accordance with Company policy, but in no event will the Employee be
entitled to more than four (4) weeks of vacation per year. Vacation shall be
taken at times mutually convenient to the Company and the
Employee.

    

    (e)           Memberships. The Company will reimburse the Employee
for one professional membership which has a business related purpose and is
approved by the Company.

    

    (f)           Licenses. The Company will reimburse the
Employee for the costs associated with keeping in full force the professional
licenses the Employee possessed prior to the date of this Agreement, provided
that the licenses have a business-related purpose. This benefit shall include
reimbursement for costs associated with up to two (2) trips per year to attend
professional meetings necessary for maintaining the licenses and
credentials.

    

    (g)           Financial,
Tax and Estate Planning.
The Company will reimburse the Employee for the cost of personal financial, tax,
and estate planning and services in an amount not to exceed $1,000 per
year.

    

    (h)           Annual
Physical. The Company will
pay the expenses associated with an annual physical examination for the Employee
for each year during the Term.

    

    (i)           Life
Insurance. During the term
of this Agreement, the Company will provide the Employee with term life
insurance coverage in accordance with its group term life insurance program.
Subject to the availability of supplemental coverage under the terms of the
Company’s program, the Company will reimburse the Employee for the Employee’s
cost of premiums under its group term life insurance program for additional
optional coverage up to the lesser of an additional $200,000 death benefit or an
aggregate death benefit up to $450,000.

    

    (j)           Expenses. The Employee shall be entitled to be
reimbursed in accordance with the policies of the Company, as adopted and
amended from time to time, for all reasonable and necessary expenses incurred by
the Employee in connection with the performance of the Employee’s duties of
employment hereunder; provided, however, the Employee shall, as a condition of
such reimbursement, submit verification of the nature and amount of such
expenses in accordance with the reimbursement policies from time to time adopted
by the Company.

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    (k)           Automobile
Allowance.  The
Company will reimburse the Employee for the business use of an automobile,
including lease cost, maintenance, and repairs, not to exceed $500 per
month.

    

    (l)           Benefits. In addition to the benefits payable to
the Employee specifically described herein, the Employee shall be entitled to
such benefits as generally may be made available to all similarly situated
management employees of the Company from time to time; provided, however, that
nothing contained herein shall require the establishment or continuation of any
particular plan or program.

     

    
      	 4.	 	 Term, Termination and Termination
      Payments.

    

     

    (a)           Term.  The term of this Agreement
(the “Term”) shall commence as of the date of this Agreement (the “Commencement
Date”) and shall expire on the third (3rd) anniversary of the Commencement Date,
with automatic extensions for successive additional one-year terms, as provided
herein. Ninety (90) days before the third (3rd) anniversary of the Commencement
Date and ninety (90) days before each subsequent anniversary of the Commencement
Date, the Agreement is extended for an additional one year period unless either
party gives prior notice of termination. In the event prior notice of
termination is given, this Agreement shall terminate at the end of the remaining
Term then in effect.

    

    (b)           Termination.  The Employee’s employment
by the Company hereunder may only be terminated before expiration of the Term
(i) by mutual agreement of the Employee and the Company; (ii) by the Employee
with Good Reason; (iii) by the Employee without Good Reason upon not less than
thirty (30) days written prior notice to the Company; (iv) by the Company
without Cause; (v) by the Company for Cause; or (vi) by the Company or the
Employee due to the Disability of the Employee. This Agreement shall also
terminate immediately upon the death of the Employee. Notice of termination by
either the Company or the Employee shall be given in writing and shall specify
the basis for termination and the effective date of
termination.

    

    (c)           Effect of
Termination.  Upon termination of the
Employee’s employment hereunder, the Company and its Affiliates shall have no
further obligation to the Employee or the Employee’s estate with respect to this
Agreement, except for payment of salary and bonus amounts, if any, accrued
pursuant to Section 3(a) or 3(b) hereof and unpaid at the Termination Date, and
termination payments, if any, set forth in Section 4(e) or 4(f) hereof, as
applicable, subject to the provisions of Section 11 hereof. Neither Section 4(e)
nor 4(f) applies to a Termination due to the Employee’s Disability or death.
Nothing contained herein shall limit or impinge any other rights or remedies of
the Company, its Affiliates or the Employee under any other agreement or plan to
which the Employee is a party or of which the Employee is a
beneficiary.

    

    (d)           Survival.  The covenants of the
Employee in Sections 5, 6, 7, 8 and 9 hereof shall survive the termination of
the Employee’s employment hereunder and shall not be extinguished
thereby.

    

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    (e)           Certain
Terminations not in Connection with a Change in Control.  If either the Company
terminates the Employee’s employment without Cause or the Employee terminates
the Employee’s employment for Good Reason, and in either event a Change in
Control has not occurred within the one year preceding the termination of
employment and does not occur within ninety (90) days after the termination of
employment, the Company shall be obligated to continue to pay the Employee the
Employee’s annual base salary at the time of termination of employment for two
(2) years after termination of employment. Payments made under this Section 4(e)
shall be paid as a salary continuation on the same schedule that applied while
the Employee was employed, provided, however, that no payment hereunder shall be
paid until sixty (60) days after the Employee’s termination of employment, at
which time the Employee shall be paid a lump sum equal to the payments
accumulated to such date, and thereafter payment of the unpaid balance shall
continue on what would have otherwise been the original payment schedule for
such unpaid balance. Notwithstanding the foregoing, if the payment of severance
hereunder would fail to meet the requirements of Section 409A(a)(l) of the
Internal Revenue Code because the Employee is a “specified employee” (within the
meaning of Section 409A of the Internal Revenue Code), no payment hereunder
shall be made until six months after the Employee’s termination of employment,
at which time the Employee shall be paid a lump sum equal to what would
otherwise have been the first six months’ of such payments, and thereafter
payment of the unpaid balance shall continue on what would otherwise have been
the original payment schedule for such unpaid balance.

    

    (f)           Certain
Terminations in Connection with a Change in Control.  If, within ninety (90) days
preceding or within one year following a Change in Control, either the Company
terminates the Employee’s employment without Cause or the Employee terminates
the Employee’s employment for Good Reason, the Company shall be obligated to pay
the Employee an amount equal to whichever of the following results in the
Employee receiving a larger after­ tax amount: (i) two (2) times the
Employee’s annual base salary at the time of termination of employment or (ii)
if less than two (2) times the Employee’s annual base salary at the time of
termination of employment, then the largest amount that could be paid to the
Employee, which will not result in a nondeductible “parachute payment” under
Section 280G of the Internal Revenue Code. Payments made under this Section 4(f)
shall be paid as a salary continuation on the same schedule that applied while
the Employee was employed, provided, however, that no payment hereunder shall be
paid until sixty (60) days after the Employee’s termination of employment, at
which time the Employee shall be paid a lump sum equal to the payments
accumulated to such date, and thereafter payment of the unpaid balance shall
continue on what would have otherwise been the original payment schedule for
such unpaid balance. Notwithstanding the foregoing, if the payment of severance
hereunder would fail to meet the requirements of Section 409A(a)(l) of the
Internal Revenue Code because the Employee is a “specified employee” (within the
meaning of Section 409A of the Internal Revenue Code), no payment hereunder
shall be made until six months after the Employee’s termination of employment,
at which time the Employee shall be paid a lump sum equal to what would
otherwise have been the first six months’ of such payments, and thereafter
payment of the unpaid balance shall continue on what would otherwise have been
the original payment schedule for such unpaid balance.

    

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    (g)           Notwithstanding any other provision
hereof, the Company’s obligation to pay the severance benefit set forth in
Section 4(e) or 4(f), if applicable, will be contingent upon the Employee
executing and providing to the Company (and not revoking within the revocation
period, if any, provided pursuant to the applicable release agreement) the form
of release agreement attached hereto as  Exhibit
A, Exhibit
B, or Exhibit
C, whichever is determined
by the Company to be appropriate. The Employee shall execute the release within
such period as is provided for in the applicable release agreement, following
the Company’s provision of such release agreement to the Employee in connection
with the Employee’s termination of employment.

    

     

    
      	 5.	 	 Agreement Not to Compete and Not to
      Solicit Customers.

    

     

    (a)           Agreement
Not to Compete. The
Employee agrees that commencing on the Commencement Date and continuing through
the Applicable Period, the Employee will not (except on behalf of or with the
prior written consent of the Company, which consent may be withheld in Company’s
sole discretion), within the Area, either directly or indirectly, on the
Employee’s own behalf, or in the service of or on behalf of others, provide
services of a similar type or nature as the Employee performs for the Company to
any Competing Business. For purposes of this Section 5, the Employee
acknowledges and agrees that the Business of the Company is conducted in the
Area.

    

    (b)           Agreement
Not to Solicit Customers.
The Employee further agrees that beginning on the Commencement Date and
throughout the Applicable Period within the Area, the Employee will not,
directly or indirectly, on the Employee’s own behalf, or on behalf of any third
party, entity or business, divert, solicit, or attempt to divert or solicit to a
Competing Business for the purpose of providing products or services in
competition with the Business of the Company, any individual or entity (a) who
is a Customer at any time during the last twelve (12)-month period of the
Employee’s employment with the Company, or who was within such period a
Prospective Customer, and (b) in either case, with whom the Employee had
material contact on the Company’s or an Affiliate’s behalf. For purposes of this
Agreement, “material contact” exists between the Employee and each Customer or
actively sought Prospective Customer with whom the Employee dealt or with whom
the Employee had a business relationship on behalf of Company or an
Affiliate.  For purposes of this Agreement, “Customer” means any
individual or entity from whom the Company or an Affiliate has solicited sales
or provided targeted marketing or other services, and a “Prospective Customer”
means any individual or entity the Company or an Affiliate has identified as a
potential Customer as part of any long-term or strategic
plan.

     

    
      	6. 	 	  Agreement
      Not to Solicit Employees.

    

     

    The Employee agrees that commencing on
the Commencement Date and continuing through the Applicable Period, the Employee
will not, either directly or indirectly, on the Employee’s own behalf or in the
service of or on behalf of others, solicit, divert or hire, or attempt to
solicit, divert or hire, to any Competing Business in the Area any person
employed by the Company or an Affiliate with whom the Employee has had material
contact during the Employee’s employment, whether or not such employee is a
full-time employee or a temporary employee of the Company or an Affiliate and
whether or not such employment is pursuant to written agreement and whether or
not such employment is for a determined period or is at
will.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    
      	7.	 	  Ownership
      and Protection of Proprietary
  Information.

    

     

    (a)           Confidentiality. All Confidential Information and Trade
Secrets and all physical embodiments thereof received or developed by the
Employee while employed by the Company are confidential to and are and will
remain the sole and exclusive property of the Company. Except to the extent
necessary to perform the duties assigned to the Employee by the Company, the
Employee will hold such Confidential Information and Trade Secrets in trust and
strictest confidence, and will not use, reproduce, distribute, disclose or
otherwise disseminate the Confidential Information and Trade Secrets or any
physical embodiments thereof and may in no event take any action causing or fail
to take the action necessary in order to prevent, any Confidential Information
and Trade Secrets disclosed to or developed by the Employee to lose its
character or cease to qualify as Confidential Information or Trade
Secrets.

    

    (b)           Return of
Company Property. Upon
request by the Company, and in any event upon termination of the employment of
the Employee with the Company for any reason, as a prior condition to receiving
any final compensation hereunder (including payments pursuant to Section 4(e) or
4(f) hereof), the Employee will promptly deliver to the Company all property
belonging to the Company, including, without limitation, all Confidential
Information and Trade Secrets (and all embodiments thereof) then in the
Employee’s custody, control or possession.

    

    (c)           Survival. The covenants of confidentiality set
forth herein will apply on and after the date hereof to any Confidential
Information and Trade Secrets disclosed by the Company or developed by the
Employee prior to or after the date hereof. The covenants restricting the use of
Confidential Information will continue and be maintained by the Employee for a
period of two (2) years following the termination of this Agreement. The
covenants restricting the use of Trade Secrets will continue and be maintained
by the Employee following termination of this Agreement for so long as permitted
by the Georgia Trade Secrets Act of 1990,  O.C.G.A.  § 10-1-760, et seq. and as
amended hereafter.

     

    
      	8. 	 	 Inventions.

    

     

    (a)           Company
Inventions. The Employee
agrees that all Company Inventions conceived or first reduced to practice by the
Employee during the Term or prior to the Term while an employee of or consultant
of the Company, and all patent rights and copyrights to such Company Inventions
shall become and remain the property of the Company, and the Employee hereby
irrevocably and unconditionally sells, transfers, conveys, assigns and delivers
to Company (i) Employee’s entire worldwide right, title and interest in and to
the Company Inventions, any continuations, continuations-in-part, divisionals,
reissues, re-exams, or extensions thereof; together with the right to sue for
and recover and retain damages with respect to past infringements of the Company
Inventions by third parties, both foreign and domestic, the same to be held and
enjoyed by Company for the Company’s own use and enjoyment, and for the use and
enjoyment of its successors, assigns or other legal representatives as fully and
entirely as the same would have been held and enjoyed by Employee if this
assignment had not been made, (ii) all applications for industrial property
protection, including, without limitation, all applications for patents, utility
models and designs which may heretofore have been filed or may hereafter be
filed for said inventions in any country, together with the right to file such
applications and the right to claim the same priority rights derived from said
patent applications under the patent laws of the United States, the
International Convention for the Protection of Industrial Property, or any
international agreement or the domestic laws of the country in which any such
application is filed, as may be applicable, and (iii) all forms of industrial
property protection, including, without limitation, patents, utility models and
designs which may heretofore have been granted or may hereafter be granted for
said inventions in any country and all extensions, renewals and reissues
thereof. If the Employee conceives an Invention during the Term of this
Agreement for which there is a reasonable basis to believe that the conceived
Invention is a Company Invention, the Employee shall promptly provide a written
description of the conceived Invention to the Company adequate to allow
evaluation thereof for a determination by the Company as to whether the
Invention is a Company Invention. Notwithstanding the foregoing, the provisions
of this Section 8(a) shall not apply to any Invention that the Employee may
develop without using the Company’s equipment, supplies, facilities, or trade
secret information, except for any Inventions that either (A) relate at the time
of conception or reduction to practice of the Invention to the Business of the
Company, or to actual or demonstrably anticipated research or development of the
Company; or (B) result from any work performed by the Employee for the
Company.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    (b)           Prior
Inventions. If prior to the
Commencement Date the Employee conceived any Invention or acquired any ownership
interest in any Invention which (i) is the property of the Employee, or of which
the Employee is a joint owner with another person or entity, (ii) is not
described in any issued patent as of the Commencement Date, and (iii) would be a
Company Invention if such Invention were made during the Term of this Agreement,
then (A) with respect to any such Invention described in Exhibit
D attached hereto, the
Employee hereby agrees that such written description (but no rights to the
Invention) is and shall remain the property of the Company and (B) with respect
to any such Invention not described in  Exhibit
D attached hereto, the
Employee hereby grants to the Company a nonexclusive, paid up, royalty-free
license to use and practice such Invention, including a license under all
patents to issue in any country which pertain to such
Invention.

    

    (c)           Prior
Patents. The Employee
represents to the Company that the Employee owns or has rights to no patents or
copyrights, individually or jointly with others, except those described in
Exhibit
D attached
hereto.

    

    (d)           Patent
Applications. The Employee
agrees that should the Company elect to file an application for patent
protection, either in the United States or in any foreign country, on a Company
Invention of which the Employee was an inventor, the Employee for the Employee
and the Employee’s successors, heirs and assigns, but at Company’s expense,
shall execute all applications, amended specifications, deeds or other
instruments, and to do all acts necessary or proper to secure the grant of
Letters Patent in the United States and in all other countries to the Company,
with specifications and claims in such form as shall be approved by the counsel
of the Company and to vest and confirm in Company its successors and assigns,
the legal title to all such patents. The Employee further agrees to cooperate
with any attorneys or other persons designated by the Company by explaining the
nature of any Company Invention for which the Company elects to file an
application for patent protection, reviewing applications and other papers and
providing any other cooperation reasonably required for orderly prosecution of
such patent applications; provided, however, that if the Employee is required to
provide such assistance after the Employee has left employment with the Company,
the Company shall pay the Employee an hourly rate for the Employee’s assistance,
which shall be determined by converting the Employee’s annual salary as in
effect upon termination of the Employee’s employment with the Company into an
hourly rate of pay. The Company shall be responsible for all expenses incurred
for the preparation and prosecution of all patent applications on Company
Inventions filed by the Company. Employee agrees, and Employee further
authorizes and grants a limited power of attorney to the Company or its
designee, to execute on Employee’s behalf any documents necessary to evidence
the assignments granted herein for the United States or any other country
without further notice to Employee.

    

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    
      	9. 	 	 Copyrights.

    

              

    (a)           Ownership
and Assignment. The
Employee acknowledges and agrees that any Works created by the Employee in the
course of the Employee’s employment during the Term or prior to the Term while
an employee of or consultant to the Company, are subject to the “Work for Hire”
provisions contained in Sections 101 and 201 of the United States Copyright Law,
Title 17 of the United States Code, and that all right, title and interest to
copyrights in all Works which have been or will be prepared by the Employee
within the scope of the Employee’s employment hereunder shall be the property of
the Company. The Employee further acknowledges and agrees that, to the extent
the provisions of Title 17 of the United States Code do not vest in the Company
the copyrights to any Works, the Employee hereby assigns to the Company all
right, title and interest to copyrights which the Employee may have in such
Works, including the right to sue for and recover and retain damages with
respect to past infringement.

    

    (b)           Registration. The Employee agrees to disclose to the
Company all Works referred to in the immediately preceding paragraph and execute
and deliver all applications for registration, registrations, and other
documents relating to the copyrights to the Works and provide such additional
assistance, as the Company may deem necessary and desirable to secure the
Company’s title to the copyrights in the Works. The Company shall be responsible
for all expenses incurred in connection with the registration of all such
copyrights.

    

    (c)           Prior
Works. The Employee claims
no ownership rights in any Works, except as described in Exhibit
D attached
hereto.

     

    
      	10.	 	 Contracts or Other Agreements with
      Former Employer or Business.

    

     

    The Employee hereby represents and
warrants that the Employee is not subject to any employment agreement or similar
document, except as previously disclosed and delivered to the Company, with a
former employer or any business with which the Employee has been associated,
which on its face prohibits the Employee during a period of time which extends
through the Commencement Date from any of the following: (i) competing with, or
in any way participating in a business which competes with the Employee’s former
employer or business; (ii) soliciting personnel of such former employer or
business to leave such former employer’s employment or to leave such business;
or (iii) soliciting customers of such former employer or business on behalf of
another business. The Employee hereby further represents and warrants that the
Employee has not executed any agreement with any other party which, on its face,
purports to require the Employee to assign any Work or any Invention created,
conceived or first reduced to practice by the Employee during a period of time
which extends through the Commencement Date except as previously disclosed in
writing to the Company.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

     

    
      	11. 	 	 Remedies.

    

     

    (a)           The Employee agrees that the covenants
and agreements contained in Sections 5, 6, 7, 8 and 9 hereof are of the essence
of this Agreement; that each of such covenants is reasonable and necessary to
protect and preserve the interests and properties of the Company and the
Business of the Company; that the Company is engaged in and throughout the Area
in the Business of the Company; that the Employee has access to and knowledge of
the Company’s business and financial plans; that irreparable loss and damage
will be suffered by the Company should the Employee breach any of such covenants
and agreements; that each of such covenants and agreements is separate, distinct
and severable not only from the other of such covenants and agreements but also
from the other and remaining provisions of this Agreement; that the
unenforceability of any such covenant or agreement shall not affect the validity
or enforceability of any other such covenant or agreements or any other
provision or provisions of this Agreement; and that, in addition to other
remedies available to it, the Company shall be entitled to specific performance
of this Agreement and to both temporary and permanent injunctions to prevent a
breach or contemplated breach by the Employee of any of such covenants or
agreements.

    

    (b)           In addition to any other rights the
Company may have pursuant to this Agreement, if the Employee engages in or
provides managerial, supervisory, sales, marketing, financial, management
information, administrative or consulting services or assistance (collectively
“Prohibited Services”) to, or owns (other than ownership of less than five
percent (5%) of the outstanding voting securities of an entity whose voting
securities are traded on a national securities exchange or quoted on the
National Association of Securities Dealers, Inc. Automated Quotation System) a
beneficial or legal interest in, any Competing Business within the Area during
the Applicable Period, the Employee will forfeit any amounts owed to the
Employee under Section 4(e) or 4(f), as applicable, which have not been paid to
the Employee by the Company and the Employee shall immediately repay to the
Company all amounts previously paid to the Employee pursuant to Section 4(e) or
4(f), as applicable.

     

    
      	12. 	 	 No
  Set-Off.

    

     

    The existence of any claim, demand,
action or cause of action by the Employee against the Company, or any Affiliate,
whether predicated upon this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of any of its rights hereunder. The
existence of any claim, demand, action or cause of action by the Company or any
Affiliate against the Employee, whether predicated upon this Agreement or
otherwise, shall not constitute a defense to the enforcement by the Employee of
any of the Employee’s rights hereunder.

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    
      	13.	 	 Notice.

    

     

    All notices, requests, demands and other
communications required hereunder shall be in writing and shall be deemed to
have been duly given if delivered or if mailed, by United States certified or
registered mail, prepaid to the party to which the same is directed at the
following addresses (or at such other addresses as shall be given in writing by
the parties to one another):

     

    
      	
              If to the
      Company:

            	
              Theragenics
      Corporation

            
	 
      	
              5203 Bristol Industrial
      Way

              Buford, Georgia
      30518

            
	 
      	
              Attn: Chief Financial
      Officer

            
	 
      	 
      
	
              If to the
      Employee:

            	
              The most recent address that the
      Company has on file for the
Employee.

            

    

    

    Notices delivered in person shall be
effective on the date of delivery. Notices delivered by mail as aforesaid shall
be effective upon the third calendar day subsequent to the postmark date
thereof.

     

    
      	14.	 	 Miscellaneous.

    

    

    (a)           Assignment. Neither this Agreement nor any right of
the parties hereunder may be assigned or delegated by any party hereto without
the prior written consent of the other party.

    

    (b)           Waiver. The waiver by the Company of any
breach of this Agreement by the Employee shall not be effective unless in
writing, and no such waiver shall constitute the waiver of the same or another
breach on a subsequent occasion.

    

    (c)           Arbitration. Any controversy or claim arising out
of or relating to this Agreement, or the breach thereof, shall be adjudicated
through binding arbitration before a single arbitrator in accordance with the
Commercial Arbitration Rules of the American Arbitration Association (“AAA”) in
Atlanta, Georgia, with the Company bearing responsibility for the filing costs
charged by the AAA for such arbitration. However the provisions of this Section
will not prevent the Company from instituting an action in a court of law under
this Agreement for specific performance of this Agreement or temporary or
permanent injunctive relief as provided in Section 11 hereof. The parties hereto
agree that the exclusive venue for any such lawsuit will be Gwinnett County,
Georgia and the Employee consents to the exercise of personal jurisdiction by
the Superior Court of Gwinnett County for the purposes of such
lawsuit.

    

    Any party who desires to submit a claim
to arbitration in accordance with this Section shall file its demand for
arbitration with AAA within thirty (30) days of the event or incident giving
rise to the claim. A copy of said demand shall be served on the other party in
accordance with the notice provisions in Section 13 of this Agreement. The
parties agree that they shall attempt in good faith to select an arbitrator by
mutual agreement within twenty (20) days after the responding party’s receipt of
the demand for arbitration. If the parties do not agree on the selection of an
arbitrator within that timeframe, the selection shall be made pursuant to the
rules from the panels of arbitrators maintained by the AAA. If the Employee
prevails in the dispute, the Company will pay and be financially responsible for
all costs, expenses, reasonable attorneys’ fees and reasonable expenses of the
arbitrator incurred by the Employee (or the Employee’s estate in the event of
the Employee’s death) in connection with the dispute. Any award rendered by the
arbitrator shall be accompanied by a written opinion providing the reasons for
the award.

    

    
      
        
        

      

      
        -14-

        
          

        

      

      
        
        

      

    

     

    By initialing below, the Company and the
Employee indicate their agreement to this Section 14(c).

    

    By the Company  /s/
MCJ (initials of Company
representative)

    By Employee  /s/
RR (initials of
Employee)

    

    The arbitrator’s award shall be final
and non-appealable. Nothing in this Subsection shall prevent the parties from
settling any dispute or controversy by mutual agreement at any
time.

    

    (d)           Applicable
Law. This Agreement shall
be construed and enforced under and in accordance with the laws of the State of
Georgia.

    

    (e)           Entire
Agreement. This Agreement
embodies the entire agreement of the parties hereto relating to the subject
matter hereof and supersedes all oral agreements, and to the extent inconsistent
with the terms hereof, all other written agreements.  This Agreement
does not, however, supersede any provision of the Stock Purchase Agreement or
the Noncompetition Agreement dated July 28, 2008, between Theragenics
Corporation and the Employee.

    

    (f)           Amendment. This Agreement may not be modified,
amended, supplemented or terminated except by a written instrument executed by
the parties hereto.

    

    (g)           Severability. Each of the covenants and agreements
hereinabove contained shall be deemed separate, severable and independent
covenants, and in the event that any covenant shall be declared invalid by any
court of competent jurisdiction, such invalidity shall not in any manner affect
or impair the validity or enforceability of any other part or provision of such
covenant or of any other covenant contained herein.

    

    (h)           Captions and
Section Headings. Except as
set forth in Section 1 hereof, captions and section headings used herein are for
convenience only and are not a part of this Agreement and shall not be used in
construing it.

    

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, the Company and the
Employee have each executed and delivered this Agreement as of the date first
shown above.

    

    

    THE COMPANY

    

    NEEDLETECH PRODUCTS,
INC.

    

    By: /s/ M.
Christine Jacobs

          M.
Christine Jacobs, Chairman

    ATTEST:

    

    /s/ Bruce W.
Smith

    

    Title:  Assistant
Secretary

    

    (CORPORATE SEAL)

    THE EMPLOYEE:

    

    /s/ Ronald
Routhier

    Ronald Routhier

    

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    
      Employee

      Under 40

       

    

     

    EXHIBIT
A

    

    RELEASE AGREEMENT

    

    This Release Agreement (this
“Agreement”) is made this __ day of ___________by NeedleTech Products, Inc. (the
“Employer”) and Ronald Routhier (the “Employee”).

    

    Introduction

    

    Employee and the Employer entered into
an Employment Agreement dated ______ (the “Severance Agreement”) which provides
certain severance benefits.

    

    The Severance Agreement requires that as
a condition to the payment of severance benefits under the Severance Agreement
(the “Severance Benefits”), the Employee must provide a release and agree to
certain other conditions.

    

    NOW, THEREFORE, the parties agree as
follows:

    

    1.           The effective date of this Agreement
shall be the date on which Employee signs this Agreement (“the Effective Date”),
at which time this Agreement shall be fully effective and enforceable. Employee
has been offered twenty-one (21) days from receipt of this Agreement within
which to consider this Agreement. Employee understands that the Employee may
sign this Agreement at any time before the expiration of the twenty-one (21) day
review. To the degree Employee chooses not to wait twenty-one (21) days to
execute this Agreement, it is because Employee freely and unilaterally chooses
to execute this Agreement before that time.

    

    2.           In exchange for Employee’s execution of
this Agreement and in full and complete settlement of any and all claims, the
Employer will provide Employee with the Severance Benefits.

    

    3.           The release given by Employee in this
Agreement is given solely in exchange for the consideration set forth in this
Agreement and such consideration is in addition to anything of value that
Employee was entitled to receive prior to entering into this
Agreement.

    

    Employee has been advised to consult an
attorney prior to entering into this Agreement.

    

    By entering into this Agreement,
Employee does not waive rights or claims that may arise after the date this
Agreement is executed.

    

    4.           This Agreement shall in no way be
construed as an admission by the Employer that it has acted wrongfully with
respect to Employee or any other person or that Employee has any rights
whatsoever against the Employer. The Employer specifically disclaims any
liability to or wrongful acts against Employee or any other person on the part
of itself, its employees or its agents.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.           As a material inducement to the Employer
to enter into this Agreement, Employee hereby irrevocably releases the Employer
and each of the owners, stockholders, predecessors, successors, directors,
officers, employees, representatives, attorneys, and affiliates (and agents,
directors, officers, employees, representatives and attorneys of such
affiliates) of the Employer, and all persons acting by, through, under or in
concert with them (collectively “Releasees”), from any and all charges, claims,
liabilities, agreements, damages, causes of action, suits, costs, losses, debts
and expenses (including attorneys’ fees and costs actually incurred) of any
nature whatsoever, known or unknown, including, but not limited to, rights
arising out of alleged violations of any contracts, express or implied, any
covenant of good faith and fair dealing, express or implied, or any tort, or any
legal restrictions on the Employer’s right to terminate employees, or any
federal, state or other governmental statute, regulation, or ordinance,
including, without limitation: (1) Title VII of the Civil Rights Act of 1964, as
amended by the Civil Rights Act of 1991 (race, color, religion, sex, and
national origin discrimination); (2) the Employee Retirement Income Security Act
(“ERISA”); (3) 42 U.S.C. § 1981 (discrimination); (4) the Americans with
Disabilities Act (disability discrimination); (5) the Equal Pay Act; (6)
Executive Order 11246 (race, color, religion, sex, and national origin
discrimination); (7) Executive Order 11141 (age discrimination); (8) Section 503
of the Rehabilitation Act of 1973 (disability discrimination); (9) negligence;
(10) negligent hiring and/or negligent retention; (11) intentional or negligent
infliction of emotional distress or outrage; (12) defamation; (13) interference
with employment; (14) wrongful discharge; (15) invasion of privacy; or (16)
violation of any other legal or contractual duty arising under the laws of the
State of Georgia or the laws of the United States (“Claim” or “Claims”), which
Employee now has, or claims to have, or which Employee at any time heretofore
had, or claimed to have, or which Employee at any time hereinafter may have, or
claim to have, against each or any of the Releasees, in each case as to acts or
omissions by each or any of the Releasees occurring up to and including the
Effective Date. Employee covenants and agrees not to institute, or participate
in any way in anyone else’s actions involved in instituting any action against
any of the Releasees with respect to any Claim released
herein.

    

    Notwithstanding the foregoing, this
Agreement shall not release any claims the Employee has (i) to any unpaid
benefits under any employee benefit plan (within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
(ii) to Employee’s right to exercise vested stock options, if any, pursuant to
any stock option agreements provided by the Employer to
Employee.

    

    6.           The Employer and Employee agree that the
terms of this Agreement shall be final and binding and that this Agreement shall
be interpreted, enforced and governed under the laws of the State of Georgia.
The provisions of this Agreement can be severed, and if any part of this
Agreement is found to be unenforceable, the remainder of this Agreement will
continue to be valid and effective.

    

    7.           This Agreement sets forth the entire
agreement between the Employer and Employee and fully supersedes any and all
prior agreements or understandings, written and/or oral, between the Employer
and Employee pertaining to the subject matter of this
Agreement.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    8.           Employee is solely responsible for the
payment of any fees incurred as the result of an attorney reviewing this
agreement.

    

    Your signature below indicates your
understanding and agreement with all of the terms in this
Agreement.

    

    Please take this Agreement home and
carefully consider all of its provisions before signing it. Again, you are free
and encouraged to discuss the contents and advisability of signing this
Agreement with an attorney of your choosing.

    

    PLEASE READ CAREFULLY. THIS AGREEMENT
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. YOU ARE STRONGLY ADVISED TO
CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS DOCUMENT.

    

    IN WITNESS WHEREOF, Employee and
Employer have executed this Agreement effective as of the date first written
above.

    

    

    
       

      
        	 	 EMPLOYEE
	 	 
	 	 
	 	Print Name
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Date Signed
	 	 
	 	 
	 	NEEDLETECH PRODUCTS,
      INC.
	 	 
	 	By: 	 
	 	 	 
	 	Title: 	 

      

       

      
        
          
          

        

        
          -3-

          
            

          

        

        
          
          

        

      

    

    Employee

    40 and
Over

    EXHIBIT B

    RELEASE AGREEMENT

    

    This Release Agreement (this
“Agreement”) is made this _____ day of______________ by NeedleTech Products,
Inc. (the “Employer”) and Ronald Routhier (the “Employee”).

    

    Introduction

    

    Employee and the Employer entered into
an Employment Agreement dated __________________ (the “Severance Agreement”)
which provides certain severance benefits.

    

    The Severance Agreement requires that as
a condition to the payment of severance benefits under the Severance Agreement
(the “Severance Benefits”), the Employee must provide a release and agree to
certain other conditions.

    

    NOW, THEREFORE, the parties agree as
follows:

    

    1.           Employee has been offered twenty-one
(21) days from receipt of this Agreement within which to consider this
Agreement. The effective date of this Agreement shall be the date eight (8) days
after the date on which Employee signs this Agreement (“the Effective Date”).
For a period of seven (7) days following Employee’s execution of this Agreement,
Employee may revoke this Agreement, and this Agreement shall not become
effective or enforceable until such seven (7) day period has expired. Employee
must communicate the desire to revoke this Agreement in writing. Employee
understands that the Employee may sign the Agreement at any time before the
expiration of the twenty-one (21) day review period. To the degree Employee
chooses not to wait twenty-one (21) days to execute this Agreement, it is
because Employee freely and unilaterally chooses to execute this Agreement
before that time. Employee’s signing of the Agreement triggers the commencement
of the seven (7) day revocation period.

    

    2.           In exchange for Employee’s execution of
this Agreement and in full and complete settlement of any and all claims, the
Employer will provide Employee with the Severance Benefits.

    

    3.           Employee acknowledges and agrees that
this Agreement is in compliance with the Age Discrimination in Employment Act
and the Older Workers Benefit Protection Act and that the releases set forth in
this Agreement shall be applicable, without limitation, to any claims brought
under these Acts.

    

    The release given by Employee in this
Agreement is given solely in exchange for the consideration set forth in this
Agreement and such consideration is in addition to anything of value that
Employee was entitled to receive prior to entering into this
Agreement.

    

    Employee has been advised to consult an
attorney prior to entering into this Agreement, and this provision of the
Agreement satisfies the requirement of the Older Workers Benefit Protection Act
that Employee be so advised in writing.

    

    By entering into this Agreement,
Employee does not waive rights or claims that may arise after the date this
Agreement is executed.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    4.           This Agreement shall in no way be
construed as an admission by the Employer that it has acted wrongfully with
respect to Employee or any other person or that Employee has any rights
whatsoever against the Employer. The Employer specifically disclaims any
liability to or wrongful acts against Employee or any other person on the part
of itself, its employees or its agents.

    

    5.           As a material inducement to the Employer
to enter into this Agreement, Employee hereby irrevocably releases the Employer
and each of the owners, stockholders, predecessors, successors, directors,
officers, employees, representatives, attorneys, and affiliates (and agents,
directors, officers, employees, representatives and attorneys of such
affiliates) of the Employer, and all persons acting by, through, under or in
concert with them (collectively “Releasees”), from any and all charges, claims,
liabilities, agreements, damages, causes of action, suits, costs, losses, debts
and expenses (including attorneys’ fees and costs actually incurred) of any
nature whatsoever, known or unknown, including, but not limited to, rights
arising out of alleged violations of any contracts, express or implied, any
covenant of good faith and fair dealing, express or implied, or any tort, or any
legal restrictions on the Employer’s right to terminate employees, or any
federal, state or other governmental statute, regulation, or ordinance,
including, without limitation: (1) Title VII of the Civil Rights Act of 1964, as
amended by the Civil Rights Act of 1991 (race, color, religion, sex, and
national origin discrimination); (2) the Employee Retirement Income Security Act
(“ERISA”); (3) 42 U.S.C. § 1981 (discrimination); (4) the Americans with
Disabilities Act (disability discrimination); (5) the Age Discrimination in
Employment Act; (6) the Older Workers Benefit Protection Act; (7) the Equal Pay
Act; (8) Executive Order 11246 (race, color, religion, sex, and national origin
discrimination); (9) Executive Order 11141 (age discrimination); (10) Section
503 of the Rehabilitation Act of 1973 (disability discrimination); (11)
negligence; (12) negligent hiring and/or negligent retention; (13) intentional
or negligent infliction of emotional distress or outrage; (14) defamation; (15)
interference with employment; (16) wrongful discharge; (17) invasion of privacy;
or (18) violation of any other legal or contractual duty arising under the laws
of the State of Georgia or the laws of the United States (“Claim” or “Claims”),
which Employee now has, or claims to have, or which Employee at any time
heretofore had, or claimed to have, or which Employee at any time hereinafter
may have, or claim to have, against each or any of the Releasees, in each case
as to acts or omissions by each or any of the Releasees occurring up to and
including the Effective Date. Employee covenants and agrees not to institute, or
participate in any way in anyone else’s actions involved in instituting, any
action against any of the Releasees with respect to any Claim released
herein.

    

    Notwithstanding the foregoing, this
Agreement shall not release any claims the Employee has (i) to any unpaid
benefits under any employee benefit plan (within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
(ii) to Employee’s right to exercise vested stock options, if any, pursuant to
any stock option agreements provided by the Employer to
Employee.

    

    6.           The Employer and Employee agree that the
terms of this Agreement shall be final and binding and that this Agreement shall
be interpreted, enforced and governed under the laws of the State of Georgia.
The provisions of this Agreement can be severed, and if any part of this
Agreement is found to be unenforceable, the remainder of this Agreement will
continue to be valid and effective.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    7.           This Agreement sets forth the entire
agreement between the Employer and Employee and fully supersedes any and all
prior agreements or understandings, written and/or oral, between the Employer
and Employee pertaining to the subject matter of this
Agreement.

    

    8.           Employee is solely responsible for the
payment of any fees incurred as the result of an attorney reviewing this
agreement.

    

    Your signature below indicates your
understanding and agreement with all of the terms in this
Agreement.

    

    Please take this Agreement home and
carefully consider all of its provisions before signing it. You may take up to
twenty-one (21) days to decide whether you want to accept and sign this
Agreement. Also, if you sign this Agreement, you will then have an additional
seven (7) days in which to revoke your acceptance of this
Agreement  after  you have signed it. This
Agreement will not be effective or enforceable, nor will any consideration be
paid, until after the seven (7) day revocation period has expired. Again, you
are free and encouraged to discuss the contents and advisability of signing this
Agreement with an attorney of your choosing.

    

    PLEASE READ CAREFULLY. THIS AGREEMENT
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. YOU ARE STRONGLY ADVISED TO
CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS DOCUMENT.

     

    IN WITNESS WHEREOF, Employee and
Employer have executed this Agreement effective as of the date first written
above.

     

    
      	
            	 EMPLOYEE
	 	 
	 	 
	 	Print Name
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Date Signed
	 	 
	 	 
	 	NEEDLETECH PRODUCTS,
      INC.
	 	 
	 	By: 	 
	 	 	 
	 	Title: 	 

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    
                                                                     Employee 40 and over
-­

    Group of
terminations

    

    

    EXHIBIT
C

    

    RELEASE AGREEMENT

    

    This Release Agreement (this
“Agreement”) is made this _______day of_____________ by NeedleTech Products,
Inc. (the “Employer”) and Ronald Routhier (the “Employee”).

    

    Introduction

    

    Employee and the Employer entered into
an Employment Agreement dated ______________ (the “Severance Agreement”) which
provides certain severance benefits.

    

    The Severance Agreement requires that as
a condition to the payment of severance benefits under the Severance Agreement
(the “Severance Benefits”), the Employee must provide a release and agree to
certain other conditions.

    

    NOW, THEREFORE, the parties agree as
follows:

    

    1.           Employee has been offered forty-five
(45) days from receipt of this Agreement within which to consider this
Agreement. The effective date of this Agreement shall be the date eight (8) days
after the date on which Employee signs this Agreement (“the Effective Date”).
For a period of seven (7) days following Employee’s execution of this Agreement,
Employee may revoke this Agreement, and this Agreement shall not become
effective or enforceable until such seven (7) day period has expired. Employee
must communicate the desire to revoke this Agreement in writing. Employee
understands that the Employee may sign the Agreement at any time before the
expiration of the forty-five (45) day review period. To the degree Employee
chooses not to wait forty-five (45) days to execute this Agreement, it is
because Employee freely and unilaterally chooses to execute this Agreement
before that time. Employee’s signing of the Agreement triggers the commencement
of the seven (7) day revocation period.

    

    2.           In exchange for Employee’s execution of
this Agreement and in full and complete settlement of any and all claims, the
Employer will provide Employee with the Severance Benefits.

    

    3.           Employee acknowledges and agrees that
this Agreement is in compliance with the Age Discrimination in Employment Act
and the Older Workers Benefit Protection Act and that the releases set forth in
this Agreement shall be applicable, without limitation, to any claims brought
under these Acts.

    

    The release given by Employee in this
Agreement is given solely in exchange for the consideration set forth in this
Agreement and such consideration is in addition to anything of value that
Employee was entitled to receive prior to entering into this
Agreement.

     

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

      

    

     

    Employee has been advised to consult an
attorney prior to entering into this Agreement, and this provision of the
Agreement satisfies the requirement of the Older Workers Benefit Protection Act
that Employee be so advised in writing.

    

    By entering into this Agreement,
Employee does not waive rights or claims that may arise after the date this
Agreement is executed.

    

    4.           The Employer has

    
      
        	 

      

       

    

    

    [Employer to describe
class, unit, or group of individuals covered by termination program, any
eligibility factors, and time limits applicable]  and such employees comprise
the “Decisional Unit.” Attached as “Attachment 1” to this Agreement is a list of
ages and job titles of persons in the Decisional Unit who were and who were not
selected for termination and the offer of consideration for signing the
Agreement.

    

    5.           This Agreement shall in no way be
construed as an admission by the Employer that it has acted wrongfully with
respect to Employee or any other person or that Employee has any rights
whatsoever against the Employer. The Employer specifically disclaims any
liability to or wrongful acts against Employee or any other person on the part
of itself, its employees or its agents.

    

    6.           As a material inducement to the Employer
to enter into this Agreement, Employee hereby irrevocably releases the Employer
and each of the owners, stockholders, predecessors, successors, directors,
officers, employees, representatives, attorneys, and affiliates (and agents,
directors, officers, employees, representatives and. attorneys of such
affiliates) of the Employer, and all persons acting by, through, under or in
concert with them (collectively “Releasees”), from any and all charges, claims,
liabilities, agreements, damages, causes of action, suits, costs, losses, debts
and expenses (including attorneys’ fees and costs actually incurred) of any
nature whatsoever, known or unknown, including, but not limited to, rights
arising out of alleged violations of any contracts, express or implied, any
covenant of good faith and fair dealing, express or implied, or any tort, or any
legal restrictions on the Employer’s right to terminate employees, or any
federal, state or other governmental statute, regulation, or ordinance,
including, without limitation: (1) Title VII of the Civil Rights Act of 1964, as
amended by the Civil Rights Act of 1991 (race, color, religion, sex, and
national origin discrimination); (2) the Employee Retirement Income Security Act
(“ERISA”); (3) 42 U.S.C. § 1981 (discrimination); (4) the Americans with
Disabilities Act (disability discrimination); (5) the Age Discrimination in
Employment Act; (6) the Older Workers Benefit Protection Act; (7) the Equal Pay
Act; (8) Executive Order 11246 (race, color, religion, sex, and national origin
discrimination); (9) Executive Order 11141 (age discrimination); (10) Section
503 of the Rehabilitation Act. of 1973 (disability discrimination); (11)
negligence; (12) negligent hiring and/or negligent retention; (13) intentional
or negligent infliction of emotional distress or outrage; (14) defamation; (15)
interference with employment; (16) wrongful discharge; (17) invasion of privacy;
or (18) violation of any other legal or contractual duty arising under the laws
of the State of Georgia or the laws of the United States (“Claim” or “Claims”),
which Employee now has, or claims to have, or which Employee at any time
heretofore had, or claimed to have, or which Employee at any time hereinafter
may have, or claim to have, against each or any of the Releasees, in each case
as to acts or omissions by each or any of the Releasees occurring up to and
including the Effective Date. Employee covenants and agrees not to institute, or
participate in any way in anyone else’s actions involved in instituting, any
action against any of the Releasees with respect to any Claim released
herein.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    Notwithstanding the foregoing, this
Agreement shall not release any claims the Employee has (i) to any unpaid
benefits under any employee benefit plan (within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or
(ii) to Employee’s right to exercise vested stock options, if any, pursuant to
any stock option agreements provided by the Employer to
Employee.

    

    7.           The Employer and Employee agree that the
terms of this Agreement shall be final and binding and that this Agreement shall
be interpreted, enforced and governed under the laws of the State of Georgia.
The provisions of this Agreement can be severed, and if any part of this
Agreement is found to be unenforceable, the remainder of this Agreement will
continue to be valid and effective.

    

    8.           This Agreement sets forth the entire
agreement between the Employer and Employee and fully supersedes any and all
prior agreements or understandings, written and/or oral, between the Employer
and Employee pertaining to the subject matter of this
Agreement.

    

    9.           Employee is solely responsible for the
payment of any fees incurred as the result of an attorney reviewing this
agreement.

    

    Your signature below indicates your
understanding and agreement with all of the terms in this
Agreement.

    

    Please take this Agreement home and
carefully consider all of its provisions before signing it. You may take up to
forty-five (45) days to decide whether you want to accept and sign this
Agreement. Also, if you sign this Agreement, you will then have an additional
seven (7) days in which to revoke your acceptance of this Agreement after you
have signed it. This Agreement will not be effective or enforceable, nor will
any consideration be paid, until after the seven (7) day revocation period has
expired. Again, you are free and encouraged to discuss the contents and
advisability of signing this Agreement with an attorney of your
choosing.

    

    PLEASE READ CAREFULLY. THIS AGREEMENT
INCLUDES A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. YOU ARE STRONGLY ADVISED TO
CONSULT WITH AN ATTORNEY BEFORE EXECUTING THIS DOCUMENT.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, Employee and
Employer have executed this Agreement effective as of the date first written
above.

     

    
      	
            	 EMPLOYEE
	 	 
	 	 
	 	Print Name
	 	 
	 	 
	 	Signature
	 	 
	 	 
	 	Date Signed
	 	 
	 	 
	 	NEEDLETECH PRODUCTS,
      INC.
	 	 
	 	By: 	 
	 	 	 
	 	Title: 	 

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

                                         

    ATTACHMENT I

    

    

    Employees
Comprising the “Decisional Unit”

    

    
      	
              Job Title:

            	
              Age:

            	
              Participating:

            	
              Not
      Participating:

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
D

    

    

    Inventions, Patents and
Copyrights

    

    

    1.           Previously
Conceived Inventions

    

    [DESCRIBE ANY INVENTIONS WHICH THE
EMPLOYEE DEVELOPED OR HAS AN OWNERSHIP INTEREST IN. IF NONE, INSERT ‘‘NONE’’.
_Note: With respect to any such Inventions not described herein, the Company
shall have a nonexclusive, paid up, royalty-free license to use and practice
such Invention, including a license under all patents to issue in any country
which pertain to such Invention.]

     

     

     

     

     

     

    2.           Patents

     

    [LIST OR DESCRIBE ALL PATENTS WHICH THE
EMPLOYEE OWNS INDIVIDUALLY, WITH OTHERS, OR FOR WHICH APPLICATIONS ARE PENDING.
IF NONE, INSERT ‘‘NONE’’.]

     

     

     

     

     

     

    3.           Copyrights

     

    [DESCRIBE ANY WORKS FOR WHICH THE
EMPLOYEE CLAIMS THE COPYRIGHT EITHER INDIVIDUALLY OR WITH OTHERS. IF NONE,
INSERT ‘‘NONE’’.]

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