Document:

EX-10.3

Exhibit
10.3

LEXINGTON REALTY TRUST

2007 EQUITY-BASED AWARD PLAN

 

Share Option Award Agreement

 

Award No.                     

     You are hereby awarded the following share option (the “Option”) to purchase Shares of
Lexington Realty Trust (the “Company”), subject to the terms and conditions set forth in
this Share Option Award Agreement (the “Award Agreement”) and in the Lexington Realty Trust
2007 Equity-Based Award Plan (the “Plan”), which is attached hereto as Exhibit A.
A summary of the Plan appears in its Prospectus, which is attached hereto as Exhibit B. You
should carefully review these documents, and consult with your personal financial advisor, before
exercising this Option.

     By executing this Award Agreement, you agree to be bound by all of the Plan’s terms and
conditions as if they had been set out verbatim below. In addition, you recognize and agree that
all determinations, interpretations, or other actions respecting the Plan and this Award Agreement
will be made by the Company’s Board of Trustees or any Committee appointed by the Board to
administer the Plan, and shall (in the absence of material and manifest bad faith or fraud) be
final, conclusive and binding on all parties, including you and your successors in interest. Terms
that begin with initial capital letters have the special meanings set forth in the Plan or in this
Award Agreement (unless the context indicates otherwise).

1. Specific Terms. This Option shall have, and be interpreted according to, the following
terms, subject to the provisions of the Plan in all instances:

	 	 	 	 	 
	Your Name:
	 	 	 	 
	 
	 	 	 	 
	Type
of Share Option:

	 	 

Non-Qualified Stock Option
	 	 
	 
	 	 	 	 
	Number of Shares subject to Option:
	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Option Exercise Price per Share:

	 	$5.60	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Grant Date:

	 	December 31, 2008	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Vesting Schedule:

	 	50% vests upon the twenty consecutive
trading day average closing price of a
Share on the New York Stock Exchange
(“NYSE”) first exceeding $8.00
following the Grant Date and 50% vests
upon the twenty consecutive trading
day average closing price of a Share
on the NYSE first exceeding $10.00
following the Grant Date.	 	 
	 
	 	 	 	 
	Expiration Date:

	 	10 years after Grant Date.	 	 

1

 

2. Accelerated Vesting; Change in Corporate Control. To the extent you have not previously
vested in your rights with respect to this Award, your Award will become —

	 	•	 	100% vested if your Continuous Service ends due to your death or “disability”
within the meaning of Section 409A of the Code; and

	   	•     
    100% vested if your Continuous Service ends due to an Involuntary Termination that
occurs within the one-year period following a Change in Control.

Notwithstanding the foregoing, to the extent you have not previously vested in your rights with
respect to this Award, your Award will become vested in accordance with your Employment Agreement
between you and the Company in effect at such time (“Employment Agreement”).

3. Term of Option. The term of the Option will expire at 5:00 p.m. (E.D.T. or E.S.T., as
applicable) on the Expiration Date.

4. Manner of Exercise. The Option shall be exercised in the manner set forth in the Plan,
using the exercise form attached hereto as Exhibit C. The amount of Shares for which the
Option may be exercised is cumulative; that is, if you fail to exercise the Option for all of the
Shares vested under the Option during any period set forth above, then any Shares subject to the
Option that are not exercised during such period may be exercised during any subsequent period,
until the expiration or termination of the Option pursuant to Sections 2 and 6 of this Award
Agreement and the terms of the Plan. Fractional Shares may not be purchased.

5. Termination of Continuous Service. Except as otherwise provided in your Employment
Agreement, if your Continuous Service with the Company is terminated for any reason, this Option
shall immediately terminate.

6. Designation of Beneficiary. Notwithstanding anything to the contrary contained herein
or in the Plan, following the execution of this Award Agreement, you may expressly designate a
beneficiary (the “Beneficiary”) to your interest in the Option awarded hereby. You shall
designate the Beneficiary by completing and executing a designation of beneficiary agreement
substantially in the form attached hereto as Exhibit D (the “Designation of
Beneficiary”) and delivering an executed copy of the Designation of Beneficiary to the Company.

7. Restrictions on Transfer of Awards. This Award Agreement may not be sold, pledged, or
otherwise transferred without the prior written consent of the Committee. Notwithstanding the
foregoing, you may transfer this Option —

	 	(i)	 	by instrument to an inter vivos or testamentary trust (or
other entity) in which each beneficiary is a permissible gift recipient, as
such is set forth in subsection (ii) of this Section, or
	 
	 	(ii)	 	by gift to charitable institutions or by gift or transfer for
consideration to any of the following relatives of yours (or to an inter vivos
trust, testamentary trust or other entity primarily for the benefit of the
following

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	 	 	 	relatives of yours): any child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, domestic partner, sibling, niece,
nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, and shall include adoptive relationships.

Any transferee of your rights shall succeed and be subject to all of the terms of this Award
Agreement and the Plan.

8. Conditions on Issuance of Shares; Transfer Restrictions. Notwithstanding any other
provision of the Plan or of this Award Agreement: (i) the Committee may condition your receipt of
Shares on your execution of a shareholder agreement imposing terms generally applicable to other
similarly-situated employee-shareholders; and (ii) any Shares issued pursuant to this Award
Agreement shall be non-transferable until the first day of the seventh month following the
termination of your Continuous Service.

9. Taxes. Except to the extent otherwise specifically provided in another document
establishing contractual rights for you, by signing this Award Agreement, you acknowledge that you
shall be solely responsible for the satisfaction of any taxes that may arise pursuant to this Award
(including taxes arising under Sections 409A or 4999 of the Code), and that neither the Company nor
the Administrator shall have any obligation whatsoever to pay such taxes or otherwise indemnify or
hold you harmless from any or all of such taxes.

10. Notices. Any notice or communication required or permitted by any provision of this
Award Agreement to be given to you shall be in writing and shall be delivered electronically,
personally, or by certified mail, return receipt requested, addressed to you at the last address
that the Company had for you on its records. Each party may, from time to time, by notice to the
other party hereto, specify a new e-mail or home address for delivery of notices relating to this
Award Agreement. Any such notice shall be deemed to be given as of the date such notice is
personally delivered or properly mailed.

11. Binding Effect. Except as otherwise provided in this Award Agreement or in the Plan,
every covenant, term, and provision of this Award Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, legatees, legal representatives,
successors, transferees, and assigns.

12. Modifications. This Award Agreement may be modified or amended at any time, in
accordance with Section 15 of the Plan and provided that you must consent in writing to any
modification that adversely and materially affects your rights or obligations under this Award
Agreement (with such an affect being presumed to arise from a modification that would trigger a
violation of Section 409A of the Code).

13. Headings. Section and other headings contained in this Award Agreement are for
reference purposes only and are not intended to describe, interpret, define or limit the scope or
intent of this Award Agreement or any provision hereof.

14. Severability. Every provision of this Award Agreement and of the Plan is intended to
be severable. If any term hereof is illegal or invalid for any reason, such illegality or
invalidity shall not affect the validity or legality of the remaining terms of this Award
Agreement.

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15. Counterparts. This Award Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute one and the same instrument.

16. Plan Governs. By signing this Award Agreement, you acknowledge that you have received
a copy of the Plan and that your Award Agreement is subject to all the provisions contained in the
Plan, the provisions of which are made a part of this Award Agreement and your Award is subject to
all interpretations, amendments, rules and regulations which from time to time may be promulgated
and adopted pursuant to the Plan. In the event of a conflict between the provisions of this Award
Agreement and those of the Plan, the provisions of the Plan shall control.

17. Investment Purposes. By executing this Award Agreement, you represent and warrant that
any Shares issued to you pursuant to your Options will be held for investment purposes only for
your own account, and not with a view to, for resale in connection with, or with an intent in
participating directly or indirectly in, any distribution of such Shares within the meaning of the
Securities Act of 1933, as amended.

18. Not a Contract of Employment. By executing this Award Agreement you acknowledge and
agree that (i) any person who is terminated before full vesting of an award, such as the one
granted to you by this Award Agreement, could claim that he or she was terminated to preclude
vesting; (ii) you promise never to make such a claim; (iii) nothing in this Award Agreement or the
Plan confers on you any right to continue an employment, service or consulting relationship with
the Company, nor shall it affect in any way your right or the Company’s right to terminate your
employment, service, or consulting relationship at any time, with or without Cause; and (iv) the
Company would not have granted this Award to you but for these acknowledgements and agreements.

19. Employment Agreement Provision. By executing this Award, you acknowledge and agree
that your rights upon a termination of employment before full vesting of this Award will be
determined under your Employment Agreement.

20. Recoupment of Awards and Proceeds. By signing this Award Agreement, you agree to forfeit all
or a portion of this Award and to reimburse the Company for any proceeds you receive pursuant to
this Award if and to the extent: (i) the payment, grant, or vesting was predicated upon the
achievement of certain financial results that were subsequently the subject of a material financial
restatement, (ii) if a Court having jurisdiction in the matter in a final adjudication from which there is no further right of appeal determines that you engaged in fraud or misconduct that caused or
partially caused the need for a material financial restatement by the Company or any substantial
affiliate, and (iii) a lower payment, award, or vesting would have occurred based upon the restated
financial results.

The Company will, to the extent practicable and allowable under applicable laws, require
reimbursement or cancellation of this Award in the amount this Award exceeds the amount that would
have been made based on the restated financial results, plus a reasonable rate of interest.

21. Governing Law. The laws of the State of Maryland shall govern the validity of this
Award Agreement, the construction of its terms, and the interpretation of the rights and duties of
the parties hereto.

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     BY YOUR SIGNATURE BELOW, along with the signature of the Company’s representative, you and the
Company agree that the Option is awarded under and governed by the terms and conditions of this
Award Agreement and the Plan.

	 	 	 	 	 	 	 	 	 
	 	 	LEXINGTON REALTY TRUST
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	The undersigned Participant hereby accepts the terms of this
Award Agreement and the Plan.
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Name of Participant:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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Exhibit A

LEXINGTON REALTY TRUST

2007 EQUITY-BASED AWARD PLAN

 

Plan Document

 

[Previously filed as Annex A to the Company’s Definitive Proxy Statement dated April 19, 2007 and
filed with the Securities and Exchange Commission on April 13, 2007.]

6

 

Exhibit B

LEXINGTON REALTY TRUST

2007 EQUITY-BASED AWARD PLAN

 

Plan Prospectus

 

[Previously filed as part of the Company’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on May 16, 2008.]

7

 

Exhibit C

LEXINGTON REALTY TRUST

2007 EQUITY-BASED AWARD PLAN

 

Form of Exercise of Share Option Award Agreement

 

	 	 	 	 	 
	 

	 	Lexington Realty Trust	 	 
	 
	 	 	 	 
	Attention:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Dear Sir or Madam:

     The
undersigned elects to exercise his/her Non-Qualified Share Option to purchase ___ Common
Shares of Lexington Realty Trust (the “Company”) under and pursuant to a Share Option Agreement
dated as of January 2, 2009.

     1. o Delivered herewith is a certified or bank cashier’s or teller’s check and/or shares of
Common Stock held by the undersigned for at least six months, valued at the closing sale price of
the Common Shares on the business day prior to the date of exercise, as follows:

	 	 	 	 	 	 	 	 	 
	 

	 	$
	 	 	 	 	 	in cash or check
	 

	 	 	 	 	 	 	 	 
	 

	 	$
	 	 	 	 	 	in the form of ___ Common Shares,
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	     valued at $                     per share
	 

	 	$
	 	 	 	Total	 	 
	 

	 	 	 	 	 	 	 	 

     2. o Delivered herewith are irrevocable instructions to a broker approved in writing by the Company to
deliver promptly to the Company the amount of sale or loan proceeds to pay the exercise price.

     If
method 1 is chosen, the name or names to be on the Common Share
certificate or certificates, or “book-entry” equivalent, and
the address and Social Security Number of such person(s) is as follows:

	 	 	 
	Name:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 

	 	 	 
	Social Security Number
	 	 
	 

	 	 

Very truly yours,

	 	 	 	 	 
	 

	 	 	 	 
	Date

	 	 	 	Optionee

8

 

Exhibit D

LEXINGTON REALTY TRUST

2007 EQUITY-BASED AWARD PLAN

 

Designation of Beneficiary

 

          In connection with the Awards designated below that I have received pursuant to the Plan, I
hereby designate the person specified below as the beneficiary upon my death of my interest in
Awards as defined in the Company’s 2007 Equity-Based Award Plan (the “Plan”). This
designation shall remain in effect until revoked in writing by me.

	 	 	 	 	 	 	 
	 

	 	Name of Beneficiary:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Social Security No.:	 	 	 	 
	 

	 	 	 	 

	 	 

          This beneficiary designation relates to any and all of my rights under the following Award or
Awards:

	 	o	 	any Award that I have received or ever receive under the Plan.
	 
	 	o	 	the                                          Award that I received pursuant to an
award agreement dated
                     ___, ___ between myself and the Company.

          I understand that this designation operates to entitle the above named beneficiary, in the
event of my death, to any and all of my rights under the Award(s) designated above from the date
this form is delivered to the Company until such date as this designation is revoked in writing by
me, including by delivery to the Company of a written designation of beneficiary executed by me on
a later date.

	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name of Participant
	 	 

Sworn to before me this

___ day of                     , 200_

                                                            

Notary Public

County of                                             

State of                                             

9exv10w1

Exhibit 10.1

AMENDMENT NO. 2

TO

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

between

SUPERIOR ENERGY SERVICES, INC.

and

TERENCE E. HALL

Dated as of December 29, 2008

 

 

AMENDMENT NO. 2

TO

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

     This Amendment No. 2 to Amended and Restated Employment Agreement (this “Amendment”) is
entered into as of December 29, 2008, between Superior Energy Services, Inc., a Delaware
corporation (the “Company”), and Terence E. Hall (the “Executive”).

WITNESSETH:

     WHEREAS, the Company and the Executive entered into an Amended and Restated Employment
Agreement effective as of July 15, 1999, as amended effective November 12, 2004 (as amended, the
“Agreement”);

     WHEREAS, the American Jobs Creation Act of 2004 imposed new requirements on deferred
compensation arrangements via new Internal Revenue Code Section 409A (“Section 409A”); and

     WHEREAS, the Company and Executive desire to amend the Agreement to comply with Section 409A.

     NOW, THEREFORE, the Agreement is amended as follows:

     1. Section 2 of the Agreement is deleted in its entirety and restated as follows:

     2. Term. The employment of Executive by the Company under this
Agreement shall continue, unless terminated in accordance with the terms of this
Agreement, in effect on a rolling three-year basis, such that at any time during the
term of this Agreement there will be three years remaining; provided, however, that
for a thirty (30) day period each year, commencing December 1, 2010, either
Executive or the Company may give written notice to the other that the automatic
extension of Executive’s employment under this Agreement shall cease, in which
event, the term of employment shall become fixed and terminate on December
31st of the third year following the year in which such notice is given.

     2. The second sentence of Section 5(b) of the Agreement is amended to read as follows:

The Bonus shall be paid at such time as Bonuses are paid to Superior’s executives
generally, commencing with the fiscal year ending December 31, 1999.

     3. Section 6(f) of the Agreement is amended by adding the following at the end:

Notwithstanding clauses (ii), (iii), and (iv) of the previous sentence, if a payment
is triggered by a termination of employment of Executive, the Date of Termination
shall be the date of Executive’s “separation from service” pursuant to Treasury
Regulation §1.409A-1(h).

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     4. Section 7(f) of the Agreement is amended to delete the reference to “this Section 6(f)” and
replace it with “this Section 7(f)” and to add the following at the end:

Gross-up payments made pursuant to this Agreement shall be paid no later than the
end of the calendar year following the calendar year in which Executive remits the
related taxes, as required by Treasury Regulation §1.409A-3(i)(1)(v).

     5. New Section 7(g) is added to the Agreement, to read as follows:

          (g) Section 409A. Notwithstanding any provision of the Agreement to
the contrary, in order to comply with Section 409A of the Internal Revenue Code and
applicable Treasury Regulations and guidance thereunder (“Section 409A”), the
following provisions shall apply:

          (i) If Executive is a “specified employee,” as such term is defined in
Section 409A and determined as described below in this Section 7(g)(i), any
payments payable as a result of Executive’s termination that represent
deferred compensation under Section 409A shall not be paid before the
earliest of: (1) the date that is six months after Employee’s Date of
Termination, (2) the date of Executive’s death, or (3) the date that
otherwise complies with the requirements of Section 409A. If this
Section 7(g) applies, all payments that otherwise would have been paid
within six months of Executive’s termination shall be accumulated and paid
at the earliest date that complies with the requirements of Section 409A.
Executive shall be a “specified employee” for the twelve month period
beginning on April 1st of a calendar year if Executive is a “key employee”
as defined in Section 416(i) of the Code (without regard to
Section 416(i)(5)) as of December 31 of the preceding year, or if Executive
is a specified employee as a result of final and binding action taken by the
Board or the Compensation Committee by December 31 of the preceding year, in
accordance with Treasury Regulation §1.409A-1(i).

          (ii) If Section 7(g)(i) applies, then: (1) any taxable benefits
provided to Executive under Section 7(d)(ii) (with the exception of health
insurance benefits) during the six month period following Executive’s Date
of Termination shall be limited to the amount specified by Code
§402(g)(1)(B) for the year of the termination; (2) Executive shall pay
Superior for the costs of any benefits that exceed the amount specified in
the prior clause during the six month period following Executive’s Date of
Termination; and (3) Executive shall be reimbursed for such costs by
Superior during the seventh month after Executive’s Date of Termination.
Furthermore, in-kind benefits and reimbursements shall be provided in
accordance with Treasury Regulation §1.409A-3(i)(l)(iv).

          (iii) Health insurance shall be provided via the Company’s payment of
the monthly cost of COBRA coverage elected by

2

 

the Executive, or an equivalent amount for periods of coverage after
the applicable COBRA period, at such time as the COBRA premiums would be due
under such plan. Such premiums, including any premiums paid on Executive’s
behalf beyond the COBRA period, will be imputed to Executive as income, as
required by law.

          (iv) If any provision of the Agreement is capable of being interpreted
in more than one manner, to the extent feasible, the provision shall be
interpreted in a manner that does not result in an excise tax under
Section 409A.

     6. All capitalized terms used herein but not defined herein shall have the meanings ascribed
to them in the Agreement.

     7. Except as specifically amended by this Amendment, the Agreement shall remain in full force
and effect.

     8. Any reference to the Agreement shall be deemed to be a reference to the Agreement, as
amended hereby.

     9. The validity of this Amendment, the construction of its terms and the determination of the
rights and duties of the parties hereto hereunder shall be governed by and construed in accordance
with the laws of the State of Louisiana.

     10. This Amendment may be executed by the parties in counterparts, all of which shall be
deemed an original, but all of which taken together shall constitute one and the same instrument.

     11. Except as expressly set forth herein, this Amendment shall not by implication or otherwise
alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Agreement, all of which are ratified and affirmed by the Company and
the Executive in all respects and shall continue in full force and effect.

[Signature page follows.]

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     IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	SUPERIOR ENERGY SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kenneth L. Blanchard	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Kenneth L. Blanchard	 	 
	 	 	Title: President and Chief Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Terence E. Hall	 	 
	 	 	 	 	 
	 

	 	 	 	     TERENCE E. HALL

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