Document:

Exhibit
10.2

 

BEST BUY CO., INC.

 

2000 RESTRICTED STOCK AWARD PLAN

 

 

2005 Amendment and Restatement

 

 

TABLE OF CONTENTS

 

	
  Section
  1.

  	
  Purpose
  of Plan

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section
  2.

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  
	
  Section
  3.

  	
  Plan
  Administration

  	
  2

  
	
   

  	
  (a)

  	
  The
  Committee

  	
  2

  
	
   

  	
  (b)

  	
  Authority
  of the Committee

  	
  2

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  4.

  	
  Shares
  Available for Issuance

  	
  3

  
	
   

  	
  (a)

  	
  Maximum
  Number of Shares Available

  	
  3

  
	
   

  	
  (b)

  	
  Accounting
  for Restricted Stock Awards

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  5.

  	
  Participation

  	
  3

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  6.

  	
  Restricted
  Stock Awards

  	
  3

  
	
   

  	
  (a)

  	
  Grant

  	
  3

  
	
   

  	
  (b)

  	
  Vesting
  of Restricted Stock Awards

  	
  3

  
	
   

  	
  (c)

  	
  Rights
  as a Shareholder

  	
  4

  
	
   

  	
  (d)

  	
  Dividends
  and Distributions

  	
  4

  
	
   

  	
  (e)

  	
  Restrictions
  on Transfer

  	
  4

  
	
   

  	
  (f)

  	
  Enforcement
  of Restrictions

  	
  4

  
	
   

  	
  (g)

  	
  Certificates

  	
  5

  
	
   

  	
  (h)

  	
  Gifts,
  Etc.

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  7.

  	
  Agreements

  	
  5

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  8.

  	
  Effect
  of Termination of Employment or Other Service

  	
  5

  
	
   

  	
  (a)

  	
  Termination
  Due to Death, Disability or Retirement

  	
  5

  
	
   

  	
  (b)

  	
  Termination
  for Reasons Other than Death, Disability or Retirement

  	
  5

  
	
   

  	
  (c)

  	
  Modification
  of Rights Upon Termination

  	
  5

  
	
   

  	
  (d)

  	
  Date
  of Termination of Employment or Other Service

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  9.

  	
  Payment
  of Withholding Taxes

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  10.

  	
  Change
  in Control

  	
  6

  
	
   

  	
  (a)

  	
  Change
  in Control

  	
  6

  
	
   

  	
  (b)

  	
  Incumbent
  Directors

  	
  7

  
	
   

  	
  (c)

  	
  Acceleration
  of Vesting

  	
  7

  
	
   

  	
  (d)

  	
  Limitation
  on Change in Control Payments

  	
  7

  

 

i

 

	
  Section
  11.

  	
  Rights
  of Eligible Recipients and Participants

  	
  8

  
	
   

  	
  (a)

  	
  Employment
  or Service

  	
  8

  
	
   

  	
  (b)

  	
  Non-Exclusivity
  of the Plan

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  12.

  	
  Securities
  Law and Other Restrictions

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  13.

  	
  Plan
  Amendment, Modification and Termination

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  14.

  	
  Shareholder
  Approval

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  15.

  	
  Effective
  Date and Duration of the Plan

  	
  8

  
	
   

  	
   

  	
   

  	
   

  
	
  Section
  16.

  	
  Miscellaneous

  	
  9

  
	
   

  	
  (a)

  	
  Governing
  Law

  	
  9

  
	
   

  	
  (b)

  	
  Successors
  and Assigns

  	
  9

  

 

ii

 

BEST BUY CO., INC.

2000 RESTRICTED STOCK AWARD PLAN

 

2005 Amendment and Restatement

 

Section
1.              Purpose of Plan.  The
purpose of the Best Buy Co., Inc. 2000 Restricted Stock Award Plan (the “Plan”)
is to advance the interests of Best Buy Co., Inc. (the “Company”) and its
shareholders by enabling the Company and its Affiliates to attract and retain
persons of ability to perform services for the Company and its Affiliates by
providing an incentive to such individuals through equity participation in the
Company and by rewarding such individuals who contribute to the achievement by
the Company and its Affiliates of their respective economic objectives.

 

Section
2.              Certain Definitions.  The
following terms will have the meanings set forth below, unless the context
clearly otherwise requires:

 

(a)           “Affiliate” means any “parent
corporation” or “subsidiary corporation” of the Company as defined by Sections
424(e) and 424(f) of the Code.

 

(b)           “Board” means the Board of Directors
of the Company.

 

(c)           “Change in Control” means an event
described in Section 10(a) of the Plan.

 

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

 

(e)           “Committee” means the group of
individuals administering the Plan, as provided in Section 3 of the Plan.

 

(f)            “Common Stock” means the common stock
of the Company, par value $.10 per share.

 

(g)           “Disability” means the inability of
the Participant to perform any of his or her material and substantial duties
for the Company or its Affiliates as a result of sickness or injury, and such
inability to perform continues for at least six (6) consecutive months.

 

(h)           “Eligible Recipients” means all
employees of the Company or any Affiliate and any directors, consultants and
independent contractors of the Company or any Affiliate.

 

(i)            “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

(j)            “Participant” means an Eligible
Recipient who receives one or more Restricted Stock Awards under the Plan.

 

(k)           “Restricted Stock Award” means an
award of Common Stock granted to an Eligible Recipient pursuant to Section 6 of
the Plan that is subject to the restrictions on transferability and the risk of
forfeiture imposed by the provisions of such Section 6.

 

(l)            “Retirement” means termination of employment
or service with the Company or any of its Affiliates on or after age 60 so long
as the employee has served the Company or any of its Affiliates continuously
for at least the three (3) years immediately preceding retirement.

 

(m)          “Securities Act” means the Securities
Act of 1933, as amended.

 

Section
3.              Plan Administration.

 

(a)           The Committee.  The
Plan shall be administered by the Compensation and Human Resources Committee
(the “Committee”) of the Board. 
Restricted Stock Awards may not be granted to any person while serving
on the Committee unless approved by a majority of the disinterested members of
the Board.  To the extent consistent with
corporate law, the Committee may delegate to any officers of the Company the
duties, power and authority of the Committee under the Plan pursuant to such
conditions or limitations as the Committee may establish; provided, however,
that only the Committee

 

1

 

or the entire Board, may exercise such
duties, power and authority with respect to Eligible Recipients who are subject
to Section 16 of the Exchange Act.

 

(b)           Authority of the Committee.

 

(i)            In accordance with and subject to the
provisions of the Plan, the Committee will have the authority to determine all
provisions of Restricted Stock Awards as the Committee may deem necessary or
desirable and as consistent with the terms of the Plan, including, without
limitation, the following: (A) the Eligible Recipients to be selected as
Participants; (B) the nature and extent of the Restricted Stock Awards to be
made to each Participant (including the number of shares of Common Stock to be
subject to each Restricted Stock Award) and the form of written agreement
evidencing such Restricted Stock Award; (C) the time or times when Restricted
Stock Awards will be granted; and (D) the restrictions and other conditions to
which the vesting of Restricted Stock Awards may be subject.  The Committee’s determinations need not be
uniform, and may be made by it selectively among Eligible Recipients, whether
or not such persons are similarly situated. 
Each determination, interpretation or other action made or taken by the
Committee pursuant to the provisions of the Plan will be conclusive and binding
for all purposes and on all persons, and no member of the Committee or the
Board, as applicable, will be liable for any action or determination made in
good faith with respect to the Plan or any Restricted Stock Award granted under
the Plan.

 

(ii)           The Committee will have the authority under
the Plan to amend or modify the terms of any outstanding Restricted Stock Award
in any manner, including, without limitation, the authority to modify the
number of shares or other terms and conditions of a Restricted Stock Award or
accelerate the vesting or otherwise terminate any restrictions relating to a
Restricted Stock Award; provided, however that the amended or modified terms
are permitted by the Plan as then in effect and that any Participant adversely
affected by such amended or modified terms has consented to such amendment or
modification.

 

Section
4.              Shares Available for Issuance.

 

(a)           Maximum Number of Shares Available.  The
maximum aggregate number of shares of Common Stock that will be available for
issuance under the Plan will be One Million (1,000,000) shares of the
authorized, but unissued, Common Stock. 
Such number and kind of shares shall be appropriately adjusted in the
event of any one or more stock splits, reverse stock splits or stock dividends
hereafter paid or declared with respect to such stock.

 

(b)           Accounting for Restricted Stock Awards. 
Shares of Common Stock that are issued under the Plan or that are
subject to outstanding Restricted Stock Awards will be applied to reduce the
maximum number of shares of Common Stock remaining available for issuance under
the Plan.  Any shares of Common Stock
that constitute any portion of a Restricted Stock Award that remains unvested
and is forfeited for any reason will automatically again become available for
issuance under the Plan.

 

Section
5.              Participation. 
Participants in the Plan will be those Eligible Recipients who, in the
judgment of the Committee, have contributed, are contributing or are expected
to contribute to the achievement of economic objectives of the Company or its
Affiliates.  Restricted Stock Awards will
be deemed to be granted as of the date specified in the grant resolution of the
Committee.

 

Section
6.              Restricted Stock Awards.

 

(a)           Grant.  An Eligible Recipient may be
granted one or more Restricted Stock Awards under the Plan, and such Restricted
Stock Awards will be subject to such terms and conditions, consistent with the
other provisions of the Plan, as may be determined by the Committee in its sole
discretion.

 

(b)           Vesting of Restricted Stock Awards.  The
shares of Common Stock subject to a Restricted Stock Award shall vest, and the
forfeiture provisions and restrictions on transfer set forth in this Plan shall
terminate, as determined by the Committee in its sole discretion, subject to
the following:

 

(i)
           No more than twenty-five percent (25%) of the shares will vest upon
grant of the Restricted Stock Award;

 

2

 

(ii)           No more than an additional twenty-five
percent (25%) of the shares will vest on the first anniversary of the date of
grant of the Restricted Stock Award, if the Participant has remained in the
continuous employ or service of the Company or one of its Affiliates;

 

(iii)          No more than an additional twenty-five
percent (25%) of the shares will vest on the second anniversary of the date of
grant of the Restricted Stock Award, if the Participant has remained in the
continuous employ or service of the Company or one of its Affiliates;

 

(iv)          No more than an additional twenty-five
percent (25%) of the shares will vest on the third anniversary of the date of
grant of the Restricted Stock Award, if the Participant has remained in the
continuous employ or service of the Company or one of its Affiliates;

 

The Committee may impose such restrictions or conditions, not
inconsistent with the provisions of the Plan, to the vesting of such Restricted
Stock Awards as it deems appropriate.

 

(c)           Rights as a Shareholder. 
Except as provided in Sections 6(a), 6(d) and 6(e) of the Plan or under
the terms of any agreement evidencing a Restricted Stock Award, a Participant
will have all voting, dividend, liquidation and other rights with respect to
shares of Common Stock issued to the Participant as a Restricted Stock Award
under this Section 6 upon the Participant becoming the holder of record of
such shares as if such Participant were a holder of record of shares of
unrestricted Common Stock.

 

(d)           Dividends and Distributions. 
Unless the Committee determines otherwise in its sole discretion (either
in the agreement evidencing the Restricted Stock Award at the time of grant or
at any time after the grant of the Restricted Stock Award), any dividends or
distributions (including regular quarterly cash dividends, if any) paid with
respect to shares of Common Stock subject to the unvested portion of a
Restricted Stock Award will be subject to the same restrictions as the shares
to which such dividends or distributions relate.  In the event the Committee determines not to
pay such dividends or distributions currently, the Committee will determine in
its sole discretion whether any interest will be paid on such dividends or
distributions.  In addition, the
Committee in its sole discretion may require such dividends and distributions
to be reinvested (and in such case the Participants consent to such
reinvestment) in shares of Common Stock that will be subject to the same
restrictions as the shares to which such dividends or distributions
relate.  All stock dividends, stock
rights, and stock issued upon split-ups or reclassifications of shares of
Common Stock shall be subject to the same restrictions as the shares with
respect to which such stock dividends, rights, or additional shares are issued,
and may be held in custody as provided in Section 6(f).

 

(e)            Restrictions on Transfer.  Except pursuant to testamentary will or the
laws of descent and distribution or as otherwise expressly permitted by the
Plan or agreement evidencing a Restricted Stock Award, no right or interest of
any Participant in a Restricted Stock Award prior to the vesting of such
Restricted Stock Award will be assignable or transferable, or subjected to any
lien, during the lifetime of the Participant, either voluntarily or
involuntarily, directly or indirectly, by operation of law or otherwise.

 

(f)            Enforcement of Restrictions.  To
enforce the restrictions referred to in this Section 6, the Committee may
require the Participant, until the restrictions have lapsed, to keep the stock
certificates, together with duly endorsed stock powers, in the custody of the
Company or its transfer agent or to maintain evidence of stock ownership,
together with duly endorsed stock powers, in a non-certificated book-entry
stock account with the Company’s transfer agent.

 

(g)           Certificates. 
Except as otherwise provided herein, a recipient of a Restricted Stock
Award shall be issued a certificate or certificates evidencing the shares
subject to such Restricted Stock Award. 
Such certificates shall be registered in the name of the Participant,
and may bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Restricted Stock Award, which legend shall be
in substantially the following form:

 

“The transferability of this certificate and the shares represented
hereby are subject to the terms and conditions (including forfeiture) of the
Best Buy Co., Inc. 2000 Restricted Stock Award Plan and an Agreement entered
into between the registered owner and Best Buy Co., Inc.  Copies of such Plan and Agreement are on file
in the corporate offices of Best Buy Co., Inc.”

 

(h)           Gifts, Etc.   Notwithstanding any other
provision of this Section 6, the Committee may permit a gift of shares subject
to a Restricted Stock Award to the holder’s spouse, child, stepchild,
grandchild or legal dependent, or to a trust whose sole beneficiary or
beneficiaries shall be the holder and/or any one or more of such persons;
provided, that the

 

3

 

donee shall have entered into an agreement
with the Company pursuant to which it agrees that such shares shall be subject
to the same restrictions in the hands of such donee as it was in the hands of
the donor.

 

Section
7.              Agreements.  Each
Restricted Stock Award granted pursuant to the Plan shall be evidenced by an
agreement setting forth the terms and conditions upon which it is granted.  Subject to the limitations set forth in the
Plan, the Committee may amend any such agreement to modify the terms or
conditions governing the Restricted Stock Award evidenced thereby.

 

Section
8.              Effect of Termination of Employment
or Other Service.

 

(a)           Termination Due to Death, Disability or
Retirement.  Except as provided in any agreement
evidencing an Restricted Stock Award, in the event a Participant’s employment
or other service with the Company and all Affiliates is terminated by reason of
death, Disability or Retirement, all Restricted Stock Awards then held by the
Participant will become fully vested.

 

(b)           Termination for Reasons Other than Death,
Disability or Retirement.
Except as provided in any agreement evidencing an Restricted Stock Award, in
the event a Participant’s employment or other service is terminated with the
Company and all Affiliates for any reason other than death, Disability or
Retirement, all Restricted Stock Awards then held by the Participant that have
not vested will be terminated and forfeited.

 

(c)           Modification of Rights Upon Termination. 
Notwithstanding the other provisions of this Section 8, upon a
Participant’s termination of employment or other service with the Company and
all Affiliates, the Committee may, in its sole discretion (which may be
exercised at any time on or after the date of grant, including following such
termination), cause Restricted Stock Awards then held by such Participant to
vest and/or continue to vest following such termination of employment or
service, in each case in the manner determined by the Committee.

 

(d)            Date of Termination of Employment or
Other Service.  Unless the Committee
otherwise determines in its sole discretion, a Participant’s employment or
other service will, for purposes of the Plan, be deemed to have terminated on
the date recorded on the personnel or other records of the Company or the
Affiliate for which the Participant provides employment or other service, as
determined by the Committee in its sole discretion based upon such records.

 

Section
9.              Payment of Withholding Taxes.

 

The
Company is entitled to (i) withhold and deduct from future wages of the
Participant (or from other amounts that may be due and owing to the Participant
from the Company or a Affiliate), or make other arrangements for the collection
of, all legally required amounts necessary to satisfy any and all federal,
state and local withholding and employment-related tax requirements
attributable to a Restricted Stock Award, including, without limitation, the
grant, vesting of, or payment of dividends with respect to, a Restricted Stock
Award, or (ii) require the Participant promptly to remit the amount of such
withholding to the Company before taking any action, including issuing any
shares of Common Stock, with respect to a Restricted Stock Award.

 

Section
10.            Change in Control.

 

(a)           Change in Control.  For
purposes of this Section 10, a “Change in Control” of the Company will mean the
following:

 

(i)            the sale, lease, exchange or other transfer,
directly or indirectly, of substantially all of the assets of the Company (in
one transaction or in a series of related transactions) to a person or entity
that is not controlled by the Company,

 

(ii)           the approval by the shareholders of the Company of any plan or proposal
for the liquidation or dissolution of the Company;

 

(iii)          a merger or consolidation to which the Company is a party if the
shareholders of the Company immediately prior to effective date of such merger
or consolidation have “beneficial ownership” (as defined in Rule 13d-3
under the Exchange Act), immediately following the effective date of such
merger or consolidation, of securities of the surviving corporation
representing (A) more than 50%, but not more than 80%, of the combined voting
power of the surviving corporation’s then outstanding securities ordinarily
having the right to

 

4

 

vote at elections of directors, unless such merger or consolidation has
been approved in advance by the Incumbent Directors (as defined in Section
10(b) below), or (B) 50% or less of the combined voting power of the
surviving corporation’s then outstanding securities ordinarily having the right
to vote at elections of directors (regardless of any approval by the Incumbent
Directors);

 

(iv)          any person becomes after the effective date of the Plan the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of (A) 20% or more, but not 50% or more, of the combined voting
power of the Company’s outstanding securities ordinarily having the right to
vote at elections of directors, unless the transaction resulting in such
ownership has been approved in advance by the Incumbent Directors, or (B) 50%
or more of the combined voting power of the Company’s outstanding securities
ordinarily having the right to vote at elections of directors (regardless of
any approval by the Incumbent Directors); or

 

(v)           the Incumbent Directors cease for any reason to constitute at least a
majority of the Board.

 

(b)           Incumbent Directors .  For
purposes of this Section 10, “Incumbent Directors” of the Company will mean any
individuals who are members of the Board on the effective date of the Plan and
any individual who subsequently becomes a member of the Board whose election,
or nomination for election by the Company’s shareholders, was approved by a
vote of at least a majority of the Incumbent Directors (either by specific vote
or by approval of the Company’s proxy statement in which such individual is
named as a nominee for director without objection to such nomination).

 

(c)           Acceleration of Vesting . 
Without limiting the authority of the Committee under Section 3(b) of
the Plan, if a Change in Control of the Company occurs, then, unless otherwise
provided by the Committee in its sole discretion either in an agreement
evidencing a Restricted Stock Award at the time of grant or at any time after
the grant of a Restricted Stock Award, all outstanding Restricted Stock Awards
will become immediately fully vested.

 

(d)            Limitation on Change in Control Payments .  Notwithstanding anything in
Section 10(c) of the Plan to the contrary, if, with respect to a
Participant, the acceleration of the vesting of an Restricted Stock Award as
provided in Section 10(c) (which acceleration could be deemed a “payment”
within the meaning of Section 280G(b)(2) of the Code), together with any
other “payments” which such Participant has the right to receive from the
Company or any corporation that is a member of an “affiliated group” (as
defined in Section 1504(a) of the Code without regard to
Section 1504(b) of the Code) of which the Company is a member, would
constitute a “parachute payment” (as defined in Section 280G(b)(2) of the
Code), then the “payments” to such Participant pursuant to Section 10(c) of the
Plan will be reduced to the largest amount as will result in no portion of such
“payments” being subject to the excise tax imposed by Section 4999 of the Code;
provided, however, that if a Participant is subject to a separate agreement
with the Company or a Affiliate that expressly addresses the potential
application of Sections 280G or 4999 of the Code (including, without
limitation, that “payments” under such agreement or otherwise will not be
reduced or that the Participant will have the discretion to determine which “payments”
will be reduced), then the limitations of this Section 10(d) will not apply,
and any “payments” to a Participant pursuant to Section 10(c) of the Plan will
be treated as “payments” arising under such separate agreement.

 

Section
11.            Rights of Eligible Recipients and
Participants.

 

(a)           Employment or Service. 
Nothing in the Plan will interfere with or limit in any way the right of
the Company or any Affiliate to terminate the employment or service of any
Eligible Recipient or Participant at any time, nor confer upon any Eligible
Recipient or Participant any right to continue in the employ or service of the
Company or any Affiliate.

 

(b)            Non-Exclusivity of the Plan.  Nothing contained in the Plan is intended to
modify or rescind any previously approved compensation plans or programs of the
Company or create any limitations on the power or authority of the Board to
adopt such additional or other compensation arrangements as the Board may deem
necessary or desirable.

 

Section
12.            Securities Law and Other
Restrictions.  Notwithstanding any other provision of the
Plan or any agreements entered into pursuant to the Plan, the Company will not
be required to issue any shares of Common Stock under this Plan, and a
Participant may not sell, assign, transfer or otherwise dispose of shares of
Common Stock issued pursuant to Restricted Stock Awards granted under the Plan,
unless (i) there is in effect with respect to such shares a registration
statement under the Securities Act and any applicable state securities laws or
an exemption from such registration under the Securities Act and applicable
state securities laws, and (ii) there has been obtained any other consent,
approval or permit from any other regulatory body which the Committee, in its
sole discretion, deems necessary or advisable. 
The Company may

 

5

 

condition such issuance, sale or transfer upon the receipt of any
representations or agreements from the parties involved, and the placement of
any legends on certificates representing shares of Common Stock, as may be
deemed necessary or advisable by the Company in order to comply with such
securities laws or other restrictions.

 

Section
13.            Plan Amendment, Modification and
Termination.  The Board may suspend or terminate the Plan
or any portion thereof at any time, and may amend the Plan from time to time in
such respects as the Board may deem advisable in order that Restricted Stock
Awards under the Plan will conform to any change in applicable laws or
regulations or in any other respect the Board may deem to be in the best
interests of the Company; provided, however, that no amendments to the Plan
will be effective without approval of the shareholders of the Company if
shareholder approval of the amendment is then required under the Exchange Act
or the rules of any stock exchange on which the Company’s securities are
listed.  No termination, suspension or
amendment of the Plan may adversely affect any outstanding Restricted Stock
Award without the consent of the affected Participant.

 

Section
14.            Shareholder Approval.  Any
Restricted Stock Award granted under the Plan prior to the date on which the
Plan is approved by shareholders holding at least a majority of the voting
stock of the Company represented in person or by proxy at a duly held
shareholders’ meeting shall be contingent upon such approval.

 

Section
15.            Effective Date and Duration of
the Plan.  The effective date of the Plan shall be the
date the Plan is approved by the shareholders of the Company.  The Plan will terminate at midnight on the
tenth anniversary of the date prior to such effective date and may be
terminated prior to such time by Board action. 
No Restricted Stock Award will be granted after such termination.  Restricted Stock Awards outstanding upon
termination of the Plan may continue to become free of restrictions, in
accordance with their terms.

 

Section 16.            Miscellaneous.

 

(a)           Governing Law.  The
validity, construction, interpretation, administration and effect of the Plan
and any rules, regulations and actions relating to the Plan will be governed by
and construed exclusively in accordance with the laws of the State of
Minnesota.

 

(b)           Successors and Assigns.  The
Plan will be binding upon and inure to the benefit of the successors and
permitted assigns of the Company and the Participants.

 

6Exhibit 4.1

 

FOURTH AMENDMENT TO RIGHTS AGREEMENT

 

This Fourth
Amendment to Rights Agreement (this “Fourth Amendment”), made and
entered into as of the 6th day of October 2005, is by and between CRIIMI
MAE INC., a Maryland corporation (the “Company”), and REGISTRAR AND
TRANSFER COMPANY, a New Jersey corporation, as Rights Agent (the “Rights
Agent”).

 

RECITALS

 

A.  The Company and the Rights Agent are party to
a Rights Agreement dated as of January 23, 2002, as amended by Amended and
Restated First Amendment to Rights Agreement dated as of June 10, 2002,
the Second Amendment to Rights Agreement dated as of November 14, 2002 and
the Third Amendment to Rights Agreement dated as of January 3, 2003 (as so
amended, the “Rights Agreement”).

 

B.  The Company, CDP Capital-Financing Inc., a Quebec
charter corporation (“Parent”), and Cadim W.F. Co., a Maryland corporation
(“Sub”), have proposed to enter into an Agreement and Plan of Merger to
be dated the date hereof (the “Merger Agreement”).

 

C.  BREF One, LLC—Series A, a Delaware
limited liability company, has proposed to enter into an agreement to be dated
the date hereof (the “Voting Agreement”) pursuant to which it will agree
to vote in favor of the Merger (as defined in the Merger Agreement) and will
grant a proxy to Parent in connection therewith.

 

D.  The Company desires to amend the Rights
Agreement to render the Rights (as defined in the Rights Agreement)
inapplicable to the Merger (as defined in the Merger Agreement) and the other
transactions contemplated by the Merger Agreement and the Voting Agreement.

 

E.  Pursuant to Section 27 of the Rights
Agreement, the Company may amend the Rights Agreement without the approval of
any holders of Rights Certificates (as defined in the Rights Agreement) as the Company
may deem necessary or desirable until such time as the Rights are no longer
redeemable.

 

F.  The Rights are currently redeemable.

 

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements herein contained and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree
as follows:

 

SECTION 1.      Amendment of Section 1.  Section 1 of the Rights Agreement is
supplemented to add the following definitions in the appropriate locations:

 

“CDP Capital-Financing
Inc.” shall mean CDP Capital-Financing Inc., a Quebec charter corporation.

 

“Merger Agreement”
shall mean the Agreement and Plan of Merger dated as of October 6, 2005,
among the Company, CDP Capital-Financing Inc. and Merger Sub, as it may be
amended from time to time.

 

“Sub” shall mean Cadim
W.F. Co., a Maryland corporation and an indirect, wholly-owned subsidiary of CDP Capital-Financing Inc.

 

“Voting Agreement”
shall mean the Voting Agreement, dated as of October 6, 2005, among the
Company, CDP Capital-Financing Inc. and BREF One, LLC—Series A, a
Delaware limited liability company.

 

SECTION 2.      Amendment of the Definition of “Acquiring
Person”.  The definition of “Acquiring
Person” in Section 1 (a) of the Rights Agreement is amended by adding
the following sentence at the end thereof:

 

“Notwithstanding anything in
this Rights Agreement to the contrary, none of CDP Capital-Financing Inc., Sub
or any of their respective Affiliates, individually or collectively, shall be
deemed to be an Acquiring Person solely by virtue of (i) the execution and
delivery of the Merger Agreement or the Voting Agreement or (ii) the
consummation of the transactions contemplated by the Merger Agreement or the Voting
Agreement.”

 

SECTION 3.      Amendment of Section 3.  Section 3(a) of the Rights
Agreement is amended and supplemented by adding the following sentence at the
end thereof:

 

“Notwithstanding
anything in this Rights Agreement to the contrary, a Distribution Date shall
not be deemed to have occurred, no Rights shall separate from the Common Shares
outstanding or otherwise become exerciseable pursuant to Section 7, and no
adjustments shall be made pursuant to Section 11, in each case solely as a
result of (i) the execution and delivery of the Merger Agreement or the Voting
Agreement or (ii) the consummation of the transactions contemplated by the
Merger Agreement or the Voting Agreement.”

 

2

 

Furthermore, Section 3
of the Rights Agreement is amended to add the following sentence at the end
thereof as new Section 3(d):

 

“Nothing in
this Rights Agreement shall be construed to give any   holder of Rights or any other Person any
legal or equitable rights, remedies or claims under this Rights Agreement solely
as a result of (i) the execution and delivery of the Merger Agreement or
the Voting Agreement or (ii) any of the transactions contemplated by the
Merger Agreement or the Voting Agreement, including without limitation, the
consummation of such transactions.”

 

SECTION 4.      Amendment of Section 13.  Section 13 is amended and supplemented
by adding the following sentence at the end thereof as new Section 13(b):

 

“(b) Notwithstanding
anything in this Rights Agreement to the contrary, none of the events described
in Sections 13(a)(i), (ii) or (iii) shall be deemed have occurred
solely as a result of (i) the execution and delivery of the Merger
Agreement or the Voting Agreement or (ii) the transactions contemplated by
the Merger Agreement or the Voting Agreement, including without limitation the
consummation of such transactions, and no holder of Rights or any other Person
shall have any legal or equitable rights, remedies or claims under the Merger
Agreement or the Voting Agreement.”

 

SECTION 5.      Existing Agreement.  Except as expressly amended hereby, all of
the terms, covenants and conditions of the Rights Agreement (i) are
ratified and confirmed; (ii) shall remain unamended and not waived; and (iii) shall
continue in full force and effect.

 

SECTION 6.      Governing Law.  This Fourth Amendment shall be governed by
the internal laws of the State of Maryland without giving effect to the principles
of conflict of laws thereof.

 

SECTION 7.      Counterparts.  This Fourth Amendment may be executed in counterparts,
each of which shall be deemed an original, and all of which taken together,
shall constitute one and the same instrument.

 

SECTION 8.      Enforceability.  If any provision of this Fourth Amendment
shall be held to be illegal, invalid or unenforceable under any applicable law,
then such contravention or invalidity shall not invalidate the entire Fourth
Amendment or the Rights Agreement.  Such provision
shall be deemed to be modified to the extent necessary to render it legal, valid
and enforceable, and if no such modification shall render it legal, valid and enforceable,
then this Fourth Amendment and the Rights Agreement shall be construed as if
not containing the provision held to be invalid, and the rights and obligations
of the parties shall be construed and enforced accordingly.

 

3

 

SECTION 9.      Waiver of Notice.  The Rights Agent and the Company hereby waive
any notice requirement under the Rights Agreement pertaining to the matters
covered by this Fourth Amendment.

 

[SIGNATURE PAGE FOLLOWS]

 

4

 

IN WITNESS
WHEREOF, the parties hereto have caused this Fourth Amendment to be duly
executed and attested, all as of the day and year first above written.

 

	
   

  	
  CRIIMI MAE INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Mark R. Jarrell

  	
   

  
	
   

  	
   

  	
  Name: Mark R.
  Jarrell

  
	
   

  	
   

  	
  Title: President and Chief Operating

  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
    /s/
  Susan Railey

  	
   

  
	
   

  	
   

  	
  Name: Susan
  Railey

  
	
   

  	
   

  	
  Title:   Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  REGISTRAR AND
  TRANSFER

  COMPANY, as Rights Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Rose
  Cascaes

  	
   

  
	
   

  	
   

  	
  Name: Mary Rose
  Cascaes

  
	
   

  	
   

  	
  Title:   Executive Vice President and

  Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ William P.
  Tatler

  	
   

  
	
   

  	
   

  	
  Name: William P.
  Tatler

  
	
   

  	
   

  	
  Title:   Vice President and Assistant

  Secretary

  

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]