Document:

exv10waw2

 

Exhibit 10-a.2

ADVANTA CORP.

NON-QUALIFIED STOCK OPTION 

NON-EMPLOYEE DIRECTOR

     THIS NON-QUALIFIED STOCK OPTION (the “Option”) is granted as of «Date» (the “Date of Grant”)
by Advanta Corp., a Delaware corporation (the “Company”), to «Name» (the “Optionee”) pursuant to
the Advanta Corp. 2000 Omnibus Stock Incentive Plan (the “Plan”). All capitalized terms contained
in this Option shall have the meaning set forth in the Plan unless otherwise required by the
context.

W I T N E S S E T H:

          1. Grant. The Company hereby grants to the Optionee an Option to purchase, subject to
the terms and conditions hereinafter set forth, all or any part of an aggregate of «Shares» Shares
of the Company’s Class B Common Stock, par value $0.01 per share (the “Option Shares”), at the
purchase price of «Price» (the “Option Price”), that being the Fair Market Value of the Option
Shares as of the close of business on the Date of Grant. This Option is not intended to be an
“incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

          2. Term. The Option granted hereunder shall expire at 5:00 p.m. (local Philadelphia,
Pennsylvania time) on the earliest to occur of the following:

                (a) «Term» (the “Expiration Date”);

                (b) The last day of the Optionee’s service with the Company or its Affiliates, where such
service is terminated by the Optionee’s resignation and such resignation has not been solicited by
the Company;

                (c) Expiration of ninety (90) days from the date the Optionee’s service as a Non-employee
Director terminates for any reason other than retirement, disability or death;

                (d) Expiration of two (2) years from the date the Optionee’s service with the Company or
its Affiliates terminates due to the Optionee’s retirement, or expiration of one hundred eighty
(180) days from the date the Optionee’s service with the Company as a Non-employee Director
terminates due to the Optionee’s disability or death.

          3. Vesting. This Option shall vest over a period of four years, beginning from the
Date of Grant. This Option may be exercised only to the extent that it has vested. Beginning on
the first anniversary Date of Grant, 25% of the Option shall vest, (i.e. 25% of the Option Shares
covered by the Option shall become eligible for purchase). Beginning on each of the second through
fourth anniversaries of the Date of Grant, an additional 25% of the Option shall vest, so that on
the fourth anniversary of the Date of Grant, this Option shall be 100% vested. In the event of the
Optionee’s retirement prior to the date on which the option has become fully vested, there shall be
a partial year pro rata vesting of the Option in an amount equal to 1/12th of the Option shares
which would have become vested on the next anniversary of

 

 

the Date of Grant of the Option, for each full 30 day period which has elapsed between the most
recent anniversary of the Date of Grant and the date of the Optionee’s retirement. Notwithstanding
the foregoing, in the event of a Change in Control, the Option shall be 100% vested.

          4. General Rules. To the extent otherwise exercisable, this Option may be exercised
in whole or in part except that this Option may in no event be exercised (a) with respect to
fractional shares or (b) after the expiration of the Option term set forth under paragraph 2
hereof.

          5. Transfers. The Option is not transferable by the Optionee otherwise than by will
or pursuant to the laws of descent and distribution in the event of the Optionee’s death, in which
event the Option may be exercised by the heirs or legal representatives of the Optionee. The
Option may be exercised during the lifetime of the Optionee only by the Optionee. Any attempt at
assignment, transfer, pledge or disposition of the Option contrary to the provisions hereof or the
levy of any execution, attachment or similar process upon the Option shall be null and void and
without effect. Notwithstanding the foregoing, (i) the Option may be transferred pursuant to the
terms of a “qualified domestic relations order,” within the meaning of Sections 401(a)(13) and
414(p) of the Code or within the meaning of Title I of the Employee Retirement Income Security Act
of 1974, as amended, and (ii) the Optionee may transfer the Option to his or her children,
grandchildren or spouse or to one or more trusts for the benefit of such family members or to
partnerships in which such family members are the only partners (a “Family Transfer”), provided
that the Optionee receives no consideration for a Family Transfer. Any exercise of the Option by a
person other than the Optionee shall be accompanied by appropriate proofs of the right of such
person to exercise the Option.

          6. Method of Exercise and Payment.

                (a) When exercisable under Paragraphs 2, 3 and 4, the Option may be exercised by written
notice, pursuant to Paragraph 10, to the Company’s Secretary specifying the number of Option Shares
to be purchased and, unless the Option Shares are covered by a then current registration statement
or a Notification under Regulation A under the Securities Act of 1933 (the “Act”), containing the
Optionee’s acknowledgment, in form and substance satisfactory to the Company, that (i) such Option
Shares are being purchased for investment and not for distribution or resale (other than a
distribution or resale which, in the opinion of counsel satisfactory to the Company, may be made
without violating the registration provisions of the Act), (ii) the Optionee has been advised and
understands that (A) the Option Shares have not been registered under the Act and are “restricted
securities” within the meaning of Rule 144 under the Act and are subject to restrictions on
transfer and (B) the Company is under no obligation to register the Option Shares under the Act or
to take any action which would make available to the Optionee any exemption from such registration,
(iii) such Option Shares may not be transferred without compliance with all applicable federal and
state securities laws, and (iv) an appropriate legend referring to the foregoing restrictions on
transfer and any other restrictions imposed under the Option may be endorsed on the certificates.
Notwithstanding the foregoing, if the Company determines that issuance of the Option Shares should
be delayed pending (A) registration under federal or state securities laws, (B) the receipt of an
opinion that an appropriate

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exemption from such registration is available, (C) the listing or inclusion of the Option Shares on
any securities exchange or an automated quotation system or (D) the consent or approval of any
governmental regulatory body whose consent or approval is necessary in connection with the issuance
of such Shares, the Company may defer exercise of any Option granted hereunder until any of the
events described in this Subsection 6(a) has occurred.

                (b) The notice shall be accompanied by payment of the aggregate Option Price of the Option
Shares being purchased (i) in cash, (ii) by certified or cashier’s check payable to the order of
the Company, (iii) by payment through a broker in accordance with procedures permitted by
Regulation T of the Federal Reserve Board, (iv) in shares of Class A Common Stock or Class B Common
Stock held by the Optionee for at least six months, or (v) by any combination of the foregoing or
by such other mode of payment as of Committee may approve; provided further, that shares of Class A
Common Stock or Class B Common Stock may not be utilized to purchase Option Shares if such method
of payment would cause the Optionee to incur liability under Section 16(b) of the Securities
Exchange Act of 1934, as amended. Such exercise shall be effective upon the actual receipt by the
Company’s Secretary of such written notice and payment.

                (c) In the event that the Company is obligated to withhold any federal, state, and/or local
withholding or other tax in connection with the exercise of this Option, the Company shall have the
right to require the Optionee to remit or otherwise make available to the Company an amount
sufficient to satisfy any federal, state and/or local withholding tax requirements prior to the
delivery or transfer of any certificate or certificates for Option Shares. The Company’s
obligation to make any delivery or transfer of Option Shares shall be conditioned on the Optionee’s
compliance with any withholding requirement to the Company’s satisfaction.

          7. Adjustments Upon Changes in Common Stock. In the event that, prior to the delivery
by the Company of all of the Option Shares in respect of which the Option is granted, there shall
be a stock dividend, stock split, recapitalization or other change in the number or class of issued
and outstanding equity securities of the Company resulting from a subdivision or consolidation of
the Common Stock and/or, if appropriate, other outstanding equity securities or a recapitalization
or other capital adjustment affecting the Common Stock which is effected without receipt of
consideration by the Company, the Committee designated under the Plan shall make appropriate
adjustments with respect to the aggregate number of shares and class or classes of shares issuable
upon exercise of the Option in lieu of the remaining number of Option Shares and with respect to
the Option Price hereunder. The Committee shall have the authority to determine the adjustments to
be made pursuant to this Section, and any such determination by the Committee shall be final,
binding and conclusive.

          8. Change of Control. In the event of a Change of Control, the Committee may take
whatever action it deems necessary or desirable with respect to the Option, including, without
limitation, accelerating the expiration or termination date of the Option to a date no earlier than
30 days after notice of acceleration is given to the Optionee.

          A “Change of Control” shall be deemed to have occurred upon the earliest to occur of the
following events: (i) the date the stockholders of the Company (or the Board of

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Directors, if stockholder action is not required) approve a plan or other arrangement pursuant to
which the Company will be dissolved or liquidated, or (ii) the date the stockholders of the Company
(or the Board of Directors, if stockholder action is not required) approve a definitive agreement
to sell or otherwise dispose of substantially all of the assets of the Company, or (iii) the date
the stockholders of the Company (or the Board of Directors, if stockholder action is not required)
and the stockholders of the other constituent corporation (or its Board of Directors, if
stockholder action is not required) have approved a definitive agreement to merge or consolidate
the Company with or into such other corporation, other than, in either case, a merger or
consolidation of the Company in which holders of shares of the Company’s Class A Common Stock
immediately prior to the merger or consolidation will have at least a majority of the voting power
of the surviving corporation’s voting securities immediately after the merger or consolidation,
which voting securities are to be held in the same proportion as such holders’ ownership of Class A
Common Stock of the Company immediately before the merger or consolidation, or (iv) the date any
entity, person or group, within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Securities Exchange Act of 1934, as amended, (other than (A) the Company or any of its subsidiaries
or any employee benefit plan (or related trust) sponsored or maintained by the Company or any of
its subsidiaries or (B) any person who, on the date the Plan is effective, shall have been the
beneficial owner of or have voting control over shares of Common Stock of the Company possessing
more than twenty-five percent (25%) of the aggregate voting power of the Company’s Common Stock)
shall have become the beneficial owner of, or shall have obtained voting control over, more than
twenty five percent (25%) of the outstanding shares of the Company’s Class A Common Stock, or (v)
the first day after the date this Plan is effective when directors are elected such that a majority
of the Board of Directors shall have been members of the Board of Directors for less than two (2)
years, unless the nomination for election of each new director who was not a director at the
beginning of such two (2) year period was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such period.

          9. Administration. This Option has been granted pursuant to the Company’s 2000
Omnibus Stock Incentive Plan, and is subject to the terms and provisions thereof. Capitalized
terms herein which are not otherwise defined have the meaning specified in the Plan. All questions
of interpretation and application of the Plan and this Option shall be determined by the Committee
designated under the Plan, and such determination shall be final, binding and conclusive.

          10. Notices. Any notice to be given to the Company shall be addressed to the
Secretary of the Company at its principal operating office, and any notice to be given to the
Optionee shall be addressed to the Optionee at the address then appearing on the records of the
Company, or at such other address as either party hereafter may designate in writing to the other.
Any such notice shall be deemed to have been duly given only when actually received by the Company.

          11. Continued Service. Nothing herein contained shall affect the right of the Company
to terminate the Optionee’s services, responsibilities, duties, or authority to represent the
Company as a member of its Board of Directors, or to discontinue the Optionee’s services to the
Company in any capacity at any time for any reason whatsoever.

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          IN WITNESS WHEREOF, the Company has granted this Option as of the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	ADVANTA CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Dennis Alter	 	 
	 
	 	 	 	 	 	 
	 

	 	Attest:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Elizabeth H. Mai, Secretary	 	 

5exv10waw3

 

Exhibit 10-a.3

Amended and Restated

ADVANTA MANAGEMENT INCENTIVE PROGRAM VI

(Effective as of December 6, 2007)

     1. Purpose. The Amended and Restated Advanta Management Incentive Program VI (“AMIP
VI”) is being established by Advanta Corp., a Delaware corporation for the benefit of those of its
employees who are designated as eligible to participate in AMIP VI, and for the benefit of those
employees of certain Eligible Affiliates (as hereinafter defined) of Advanta Corp. who are
designated as eligible to participate in AMIP VI (such employees of Advanta Corp. or of its
Eligible Affiliates being referred to herein as “Eligible Employees”). AMIP VI is intended to
operate in conjunction with the Advanta Corp. Senior Management Incentive Plan (“SMIP”) or any
other bonus program, plan or arrangement to provide Eligible Employees with incentive to devote
themselves to the success of Advanta Corp. and its affiliates through compensation arrangements
that provide opportunities for Eligible Employees to receive bonus compensation and to acquire, in
connection with such bonus compensation, shares of Advanta Corp. Class B Common Stock, par value
$0.01 per share (the “Common Stock”). Through this program, those Eligible Employees who elect to
participate in AMIP VI (“Participants”) may benefit from the successful performance of Advanta
Corp. and its affiliates through the payment of discretionary bonuses, and from increases in the
value of the Common Stock on a cumulative basis. The term “Eligible Affiliate” as used herein
means any entity other than Advanta Corp. whose employees are eligible to receive grants under
Advanta Corp.’s 2000 Omnibus Stock Incentive Plan (the “Omnibus Plan”). The term “Company” as used
herein refers collectively to Advanta Corp. and its Eligible Affiliates. Capitalized terms that
are not otherwise defined herein shall have the meanings ascribed to them in the Omnibus Plan.

     2. Program to Operate in Conjunction with Omnibus Plan. The grants of Common Stock
made under AMIP VI are to be granted under the Omnibus Plan. Any such grants of Common Stock shall
be made pursuant to the provisions set forth herein and in any applicable Grant Document. No
Shares may be granted pursuant to the terms of AMIP VI except to the extent such grant is
permissible and within the applicable limitations of the Omnibus Plan.

     3. Annual and Other Bonus Programs.

          (a) Discretionary Bonus Programs. AMIP VI, SMIP and any other bonus program, plan or
arrangement that may be established by Advanta Corp. from time to time, are intended to constitute
discretionary bonus arrangements for the purpose of motivating individual performance of Eligible
Employees. For purposes of AMIP VI, SMIP or any other bonus programs that may be established from
time to time, the Company may set a “target” bonus for each Eligible Employee (the “Target Bonus”)
for a performance period (which can be the calendar year or such other period that the Committee
(as defined herein) deems appropriate, any such period being referred to herein as a “Performance
Period”).

          (b) Election to Participate in AMIP VI. Subject to all of the terms and conditions of
this AMIP VI and any applicable Grant Document, an Eligible Employee may become a Participant by
electing to receive all or a portion of his or her Target Bonus (if any is awarded under SMIP or
other applicable bonus program designated by the Committee) in Shares in lieu of cash.

          (c) Bonus Awards. The Committee shall make all determinations as to whether a
Participant should receive all or only a portion (or none) of his or her Target Bonus,

 

 

and may also determine at its discretion to pay a bonus that is in excess of a Participant’s
Target Bonus based on the bonus criteria established by the Committee and any other facts and
circumstances the Committee determines to be relevant for these purposes. A Participant may
receive from 0% up to a maximum of 200% of his or her Target Bonus based on the Committee’s
determination of the extent to which the Company and the Participant have met the performance goals
established by the Committee for the applicable Performance Period.

     4. Administration.

          (a) Establishment of Committee to Administer the Program. AMIP VI shall be
administered by one or more committees charged with responsibility for the administration of the
Omnibus Plan (referred to as the “Committee”). For these purposes, the term “Committee” shall have
the same meaning as that term is given in the Omnibus Plan. References herein to the Committee
shall be deemed to be references to the Board of Directors in circumstances where the Board of
Directors is acting as the Committee, as required by the context.

          (b) Committee Meetings and Actions. The Committee shall hold meetings at such times
and places as it may determine. Acts approved at a meeting by a majority of the members of the
Committee and acts approved in writing by the unanimous consent of the members of the Committee or
by such other means as the Committee determines to be valid shall be valid acts of the Committee.
The interpretation and construction by the Committee of any provision of AMIP VI or of any grant
awarded in connection with AMIP VI shall be final, binding and conclusive.

          (c) Administrative Procedures and Rules. The Committee shall have the authority to
establish any procedures, rules and regulations it deems necessary or appropriate for the
administration and interpretation of AMIP VI, which may include rules and procedures to enable the
Company to: discharge any obligations it may have with respect to federal, state or local tax
withholding; comply with applicable laws, including federal securities laws and the Sarbanes-Oxley
Act of 2002; and cause, to the extent possible, any transactions by Participants pursuant to the
terms of AMIP VI to be exempt from potential liability under the short-swing profit rules of
Section 16 of the Securities Exchange Act of 1934 (the “Exchange Act”), pursuant to Rule 16b-3, or
otherwise. The Committee may also delegate its responsibilities with respect to AMIP VI as the
Committee determines to be necessary or appropriate, at its discretion.

     5. Eligibility to Participate. Each of the Company’s Section 16 Officers shall be
eligible to participate in AMIP VI. In addition, those employees of the Company who are designated
as Eligible Employees by a member of the Office of the Chairman shall be eligible to participate in
AMIP VI. The Committee may, from time to time establish guidelines to be used for purposes of
determining which employees should be designated as Eligible Employees for purposes of AMIP VI.

     6. Grants of Restricted Stock Awards.

          (a) Discretionary Grants of Restricted Stock Awards to Participants. Eligible
Employees who elect to participate in AMIP VI will receive a grant of nonvested, restricted Shares
(a “Restricted Stock Award”). Under the Omnibus Plan, the Committee has the authority to make
grants of Restricted Stock to Eligible Employees on such terms and conditions as the

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Committee, at its discretion, deems appropriate in order to take into account any facts and
circumstances that influence the effectiveness of AMIP VI and any other programs or compensation
plans or arrangements of the Company, as a means by which the Company may provide appropriate
performance incentives for Eligible Employees. Such facts and circumstances shall include, but are
not limited to, any facts and circumstances related to levels of compensation and bonuses paid by
other similarly situated employers and the needs of the Company to encourage the retention of
valued employees and to reward high levels of performance by such employees. Nothing contained in
this Section 6(a) shall, however, constitute authorization to grant more Shares under AMIP VI than
are authorized in the aggregate for grants under the Omnibus Plan.

          (b) Documents. Restricted Stock Awards shall be granted under the provisions of the
Omnibus Plan and shall be evidenced by stock certificates and, if applicable, Grant Documents in
such form as the Committee shall approve from time to time. The Committee shall have the right to
amend the Grant Documents issued to a Participant from time to time at its discretion; provided,
however, that any such amendment shall, to the extent materially adverse to the Participant, be
effective only with the Participant’s consent. Notwithstanding the foregoing, the Committee shall
have the absolute right to amend any Grant Documents in order to conform the terms thereof to the
original intent of the Committee, and to correct any inadvertent operational errors or errors in
calculation and documentation that may arise in the implementation of AMIP VI or any grants made
hereunder.

     7. Terms and Conditions of Restricted Stock Awards Under AMIP VI. Restricted Stock
Awards shall be granted pursuant to the Omnibus Plan and shall be subject to such terms and
conditions as are established by the Committee with respect to each such Restricted Stock Award
(which may be set out in a Grant Document). Except to the extent the Committee determines to
establish other terms and conditions for one or more Restricted Stock Awards, the terms and
conditions applicable to each Restricted Stock Award, and the basis on which Restricted Stock
Awards are made hereunder, shall be as set forth in this Section 7.

          (a) Elections by Participants. Each Eligible Employee shall be permitted to elect
(which election shall be irrevocable) to receive Common Stock pursuant to AMIP VI and to designate
a percentage (0%, 25%, 50%, 75% or 100%) of such employee’s Target Bonus for each Performance
Period to be received in the form of Common Stock. If an election (other than 0%) is made, the
Participant shall be granted a Restricted Stock Award in lieu of all or a portion of the
Participant’s Target Bonuses potentially payable with respect to the Performance Periods that make
up the Election Period. Any election by a Participant under this Section 7(a) shall be made by
completing the election form or forms that may be established for this purpose by the Committee and
filing such form(s) at the time and in the manner required by the Committee, all as determined by
the Committee at its discretion.

               (i) A Participant making an election to receive Common Stock for more than one Performance
Period during the Election Period may establish a separate percentage with respect to each
Performance Period.

               (ii) Except as otherwise provided herein, for purposes of AMIP VI the “Election Period” means
a period of four Performance Periods, consisting of the 2006, 2007, 2008 and 2009 calendar years,
with respect to which Restricted Stock Awards may be made as a

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means of paying all or a portion of the Target Bonuses that may be payable for those
Performance Periods.

          (b) Determination of Shares Subject to Restricted Stock Award. In the event a
Participant elects a percentage (other than 0%) under Section 7(a), such Participant shall be
granted a Restricted Stock Award for a number of Shares that is determined by applying such
election percentage to the Target Bonus to which it applies and then dividing that amount by the
amount that the Committee determines to be representative of the value of a share of Common Stock
at the time such Restricted Stock Award is made (the “Set Aside Price”). For purposes of AMIP VI,
the Set Aside Price shall be the closing price of the Common Stock on the date of grant, unless the
Committee determines another value to be applicable to any Restricted Stock Award. For purposes of
AMIP VI, the closing price of the Common Stock means the last reported trade price, as reported by
Nasdaq. This calculation is performed for each Performance Period in the Election Period and then
aggregated to determine the Participant’s total Restricted Stock Award. For example,

               (i) Assume that a Participant has a Target Bonus established at the beginning of that Election
Period that is 20% of his or her base compensation (which is $90,000) so that the Participant’s
Target Bonus is $18,000;

               (ii) Assume further that this Participant has elected 50% as the election percentage with
respect to the first two Performance Periods and 75% with respect to the last two Performance
Periods; and

               (iii) Assume finally that the Set Aside Price is $30.

Applying the election percentage to each of the Target Bonuses covered by the Election Period, the
aggregate amount calculated would be $45,000 (50% of $18,000, or $9,000, for each of the first two
Target Bonuses, and 75% of $18,000, or $13,500, for each of the last two Target Bonuses). The
Restricted Stock Award to this Participant for the Election Period will be 1,500 Shares ($45,000
divided by $30).

          (c) Establish Requirements or Limits. The Committee may establish minimum or maximum
election percentages for all Participants or any subgroup of Participants for each of the
Performance Periods within the Election Period.

          (d) Pro Rata Participation for New Participants During the Election Period. In the
event an employee becomes an Eligible Employee for any reason (including promotion or being newly
hired) subsequent to the time Restricted Stock Awards are initially made under AMIP VI:

               (i) If the Committee has not prescribed an election percentage for the Eligible Employee, he
or she will be permitted to elect (which election shall be irrevocable) to become a Participant by
completing the election form or forms that may be established for this purpose by the Committee and
filing the form(s) at the time and in the manner required by the Committee, all as determined by
the Committee at its discretion.

               (ii) If the Eligible Employee elects to become a Participant under this Section 7(d) by
electing to receive more than 0% of his or her Target Bonuses for one or more

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subsequent Performance Periods in Common Stock, such Participant shall be granted a Restricted
Stock Award for a number of Shares that is determined by taking the Participant’s applicable Target
Bonus for each Performance Period of the remainder of the Election Period (which will, unless
otherwise determined by the Committee at its discretion, be a pro-rata portion of a particular
Target Bonus if a particular Performance Period is only a portion of the Performance Period that
would otherwise apply), divided by the Set Aside Price, as determined in accordance with Section
7(b), at the time such Restricted Stock Award is made, and then applying the election percentages
to the number of shares for each Performance Period. For example, assume a Participant has a
Target Bonus that is equal to $40,000 and that this Participant first becomes eligible to
participate in AMIP VI at the beginning of 2007 (and can, therefore, only potentially receive
Target Bonuses for 2007, 2008 and 2009). Assume further that this Participant has elected 50% as
the election percentage for each of the 2007, 2008 and 2009 Performance Periods and that the Set
Aside Price is $40. The Restricted Stock Award to this Participant would be for 1,500 Shares
(Target Bonus of $40,000 for each Performance Period, or $120,000, divided by $40 multiplied by
election percentage of 50%. This results in 500 shares for each of the three Performance Periods,
or an aggregate of 1,500 shares.).

          (e) Modification for Additional Performance Periods. Except as may otherwise be
determined by the Committee, if AMIP VI is modified such that the Election Period is extended to
cover one or more additional Performance Periods other than those specified in Section 7(a) hereof:

                  (i) Election by Existing Participants. Except as otherwise provided herein, each
employee who is a Participant as of the time of the extension shall be permitted to elect (which
election shall be irrevocable) to receive Common Stock pursuant to AMIP VI and to designate a
percentage (0%, 25%, 50%, 75% or 100%) of such employee’s Target Bonus for each additional
Performance Period to be received in the form of Common Stock. If a Participant elects to receive
more than 0% of his or her Target Bonus for one or more additional Performance Periods in Common
Stock, such Participant shall be granted a Restricted Stock Award for a number of Shares that is
determined by taking the Participant’s applicable Target Bonus for each additional Performance
Period, and then dividing that amount by the Set Aside Price, as determined in accordance with
Section 7(b), at the time such Restricted Stock Award is made, then applying the election
percentages to the number of shares for each additional Performance Period. Any Restricted Stock
Award(s) granted pursuant to this Section 7(e)(i) shall remain subject to all of the terms and
conditions of AMIP VI in all other respects. For example, assume AMIP VI is extended to include
calendar year 2010 as an additional Performance Period and that an existing Participant has a
Target Bonus for 2010 that is equal to $40,000. Assume further that this Participant has elected
50% as the election percentage for the 2010 Performance Period and that the Set Aside Price is $10.
The Restricted Stock Award to this Participant would be for 2,000 Shares (Target Bonus of $40,000
for the 2010 Performance Period, divided by $10, then multiplied by election percentage of 50%).
Except to the extent expressly permitted by the Committee, no Participant can make more than one
election with respect to any particular Performance Period.  Therefore, no Participant who has
already been given the opportunity to elect under AMIP VI with respect to any Performance Period is
eligible to make an election for the same Performance Period under this Section 7(e)(i).

                  (ii) Election by New Participants. Unless otherwise provided herein, with respect to
an employee who becomes an Eligible Employee for any reason subsequent to

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the effective date of an extension, the definition of “Election Period” in Section 7(a)(ii)
hereof shall be deemed to be amended to include the additional Performance Period(s) for all
purposes.

          (f) Modification for Increases in Target Bonus Percentage. Except as may otherwise be
determined by the Committee, if a Participant has an increase in his or her Target Bonus percentage
(whether as a consequence of receiving a promotion or of other action by the Committee), such
Participant’s previous election to receive a percentage of the Target Bonuses for the applicable
Performance Periods in Common Stock shall be applied to the difference between (x) his or her old
Target Bonus and (y) the increased Target Bonus after applying the increased Target Bonus
percentage for the remaining portion of any current Performance Period (if the Target Bonus
percentage is increased during a Performance Period) and for any subsequent Performance Periods.
Except as may otherwise be determined by the Committee, for purposes of this Section 7(f) the
number of additional Shares to be granted to the Participant as an additional Restricted Stock
Award is to be calculated based on the closing price of the Common Stock on the date of the new
grant, or as otherwise determined by the Committee under Section 7(b) hereof.

          (g) Committee Adjustments to Restricted Stock Awards. Notwithstanding anything
contained herein to the contrary and in addition to any discretionary authority of the Committee
under any other provision of AMIP VI, the Omnibus Plan or any applicable Grant Document, the
Committee shall have the authority to make adjustments to any of the determinations used in
calculating the number of Shares that are subject to Restricted Stock Awards hereunder. The
Committee shall have authority to determine the adjustments to be made under this Section 7(g), and
any such determination by the Committee shall be final, binding and conclusive.

     8. Vesting.

          (a) Vesting Date — General. Except to the extent alternative vesting provisions are
established by the Committee, either by incorporation in the terms of a Grant Document or by other
action taken by the Committee, each Restricted Stock Award granted under the Omnibus Plan pursuant
to the provisions set forth herein shall become fully vested on the tenth anniversary of the date
of grant of such Restricted Stock Award, provided that on such date the Participant is, and has
continuously been, during the period from the date of grant until the tenth anniversary thereof, an
employee of the Company. Notwithstanding the foregoing, consistent with the terms and conditions
of AMIP VI and the Omnibus Plan, the Committee may determine, at its discretion, to accelerate the
vesting of all or a portion of the Shares upon the occurrence of certain events or conditions,
including without limitation as provided below in Sections 8(b), 8(c), 8(d), 8(e) and 8(f).

          (b) Accelerated Vesting as Payment of Target Bonus. In the event the Committee, in
accordance with the provisions of Section 3(c) hereof, determines that a Participant should receive
a bonus (either below, at or in excess of the Participant’s Target Bonus), the Committee may
provide for accelerated vesting of all or any portion of a Restricted Stock Award in lieu of
payment of the applicable portion of the Participant’s Target Bonus that would, but for the
arrangements established hereunder, have been paid to a Participant as a cash bonus for the
applicable Performance Periods occurring during the Election Period. If the Committee accelerates
the vesting of less than all of the Shares related to a Performance Period,

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the Committee may at any time, at its discretion, accelerate the vesting of the remaining
nonvested Shares prior to the date on which they otherwise would vest under Section 8(a) hereof.

               (i) For example, assume a Participant has a Target Bonus that is equal to $36,000 and has
elected 50% as the election percentage to determine the portion of his or her Restricted Stock
Award for the second of four Performance Periods that make up the Election Period. Assume also
that the Set Aside Price was $30. The Restricted Stock Award to this Participant corresponding to
the second Performance Period would be 600 Shares ($36,000 divided by $30, multiplied by 50%).
Since this portion of the Participant’s Restricted Stock Award represents a conversion of 50% of
his $36,000 Target Bonus from a cash benefit to a stock benefit, the Committee may determine to
vest at the time cash bonus payments are to be distributed with respect to the second Performance
Period all or a portion of the 600 Shares. The extent to which those Shares are vested would be
determined at the discretion of the Committee which could, for example, vest all 600 Shares if the
Committee determines that the Participant is entitled to receive 100% or more of his Target Bonus
for that Performance Period, but could, in the alternative, vest only 400 of those Shares if the
Committee were to determine that the Participant should be paid only 2/3 of his or her Target Bonus
for that Performance Period. In this situation (i.e., where a portion of the Shares granted with
respect to a particular Performance Period remain nonvested after the bonuses for that Performance
Period are paid), the Committee may, at its discretion, choose to accelerate these otherwise
nonvested Shares prior to the date on which they would otherwise become vested (i.e., prior to the
tenth anniversary of the date of grant), as provided in Section 8(b) above, including without
limitation in connection with the Committee’s determination to pay all or a portion of a later
bonus award.

               (ii) Using the example set out above, the benefit of participation in the Common Stock grant
aspect of AMIP VI is illustrated if it is assumed that, at the time the Target Bonuses for the
second Performance Period are paid, the value of a share of Common Stock has increased to $40 (from
the $30 Set Aside Price). If the Participant is determined to have earned 100% of his or her
Target Bonus for that Performance Period, the cash bonus would have been a payment of $36,000. If
the 600 Shares of Common Stock corresponding to the Participant’s 50% stock election for this
Target Bonus are fully vested by the Committee, the Participant’s benefit would consist of a 50%
cash payment of $18,000, plus an economic benefit from fully vesting in the 600 Shares that is
valued at $24,000 (600 Shares x $40), effectively increasing the Participant’s bonus from $36,000
to $42,000 as a result of the increased value of the Common Stock.

          (c) Requirement of Continued Employment. Except as otherwise provided herein, a
Participant generally shall not become vested in and shall forfeit and have no further rights in
his or her Restricted Stock Award if, as of the date the bonus for the applicable Performance
Period would have become payable, the Participant has ceased to be employed by the Company even if
the Participant was employed by the Company through the last day of the Performance Period.
Similarly, the Participant generally shall not be entitled to receive the cash portion of his or
her bonus (whether under SMIP or any other bonus program), if any, if he or she has ceased to be
employed by the Company as of the date the bonus for the applicable Performance Period would have
become payable even if the Participant was employed by the Company through the last day of the
Performance Period. Notwithstanding the foregoing, the Committee may, at its discretion, after
considering any relevant facts and circumstances regarding the Company, the Participant’s
performance and anything else deemed relevant by the

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Committee, accelerate the vesting of all or a portion of the Participant’s Restricted Stock
Award with respect to a Participant who has ceased to be employed by the Company.

          (d) Acceleration of Vesting on Retirement. In the event a Participant terminates
employment with the Company by reason of his or her retirement, the Committee may, after
considering any relevant facts or circumstances regarding the Company, the performance of the
Participant and anything else deemed relevant by the Committee, accelerate the vesting of a portion
of such Participant’s Restricted Stock Award so as to approximate the benefit such Participant
would have received had he or she continued to be employed through the end of all or a portion of
the Performance Period, then pro-rated for the portion of the Performance Period through the
Participant’s termination of employment; provided, however, that the Committee, at its discretion,
may, after considering any relevant facts or circumstances regarding the Company, the performance
of the Participant and anything else deemed relevant by the Committee, accelerate the vesting of
more or less than such pro-rated portion of the Restricted Stock Award. For these purposes, the
Committee may determine, at its discretion, whether a Participant’s termination of employment is to
be treated as a “retirement” or otherwise.

          (e) Acceleration of Vesting on Death or Disability. In the event a Participant
terminates employment with the Company by reason of his or her death or disability, the Committee
may accelerate the vesting of a portion of such Participant’s Restricted Stock Award so as to
approximate the benefit such Participant would have received had he or she continued to be employed
through the end of all or a portion of the Performance Period, then pro-rated for the portion of
the Performance Period through the Participant’s termination of employment; provided, however, that
the Committee, at its discretion, may, after considering any relevant facts or circumstances
regarding the Company, the performance of the Participant and anything else deemed relevant by the
Committee, accelerate the vesting of more or less than such pro-rated portion of the Restricted
Stock Award. For these purposes, the Committee may determine, at its discretion, whether a
Participant’s termination of employment is by reason of his or her disability.

          (f) Occurrence of a Change of Control. If there is a Change of Control (as defined in
this Section 8(f)), a Participant’s Restricted Stock Award granted pursuant hereto shall, to the
extent not otherwise previously vested, be forfeited, and the Participant shall have no further
rights with respect to any such Restricted Stock Award, unless the Committee otherwise determines,
at its discretion, to accelerate the vesting of all or a portion of a Participant’s Restricted
Stock Award upon the occurrence of, or otherwise in connection with, a Change of Control. For
these purposes, the term “Change of Control” shall have the meaning set forth in the Omnibus Plan;
provided, however, that, in the event a transaction constitutes a Change of Control for these
purposes, the forfeiture of the nonvested portion of a Participant’s Restricted Stock Award or such
other action as the Committee determines shall occur by reason of the Change of Control shall only
occur as of the date the transaction that constitutes or gives rise to a Change of Control is
consummated.

     9. Forfeiture of Shares and Bonuses. All Shares subject to a Participant’s Restricted
Stock Award which have not vested shall be forfeited without the receipt of any payment by the
Participant upon the last day of the Participant’s employment or service with the Company or upon a
Change of Control, except to the extent the Committee otherwise determines to establish

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a vesting date for all or a portion of the nonvested Shares subject to the Restricted Stock
Award, including without limitation as set forth in Section 8 hereof.

     10. Transfer of Shares. No Shares that are subject to a Restricted Stock Award
granted hereunder may be transferred, pledged, or encumbered until such time as such Shares become
vested.

     11. Amendment and Termination of AMIP VI. The Committee may amend AMIP VI from time
to time in such manner as it deems advisable or appropriate, and may terminate AMIP VI at any time;
provided, however, that no amendment to AMIP VI shall, nor shall the termination of AMIP VI,
materially adversely affect any previously granted Restricted Stock Award without the consent of
the affected Participant except to the extent expressly permitted under Section 6(b) hereof.

     12. No Continued Employment. The grant of a Restricted Stock Award pursuant hereto
shall not be construed to imply or to constitute evidence of any agreement, express or implied, on
the part of the Company to retain the Participant in the employ or service of the Company, and each
Participant shall remain subject to discharge to the same extent as if AMIP VI had not been
adopted.

     13. Taxes.

          (a) Withholding of Taxes. Whenever Shares subject to a Restricted Stock Award vest
or, if sooner, whenever a Participant must include the Shares in income for federal, state or local
income and/or other tax purposes, the Company shall have the right to (a) require the Participant
to remit or otherwise make available to the Company an amount sufficient to satisfy all of the
Company’s applicable federal, state and/or local withholding tax requirements prior to the delivery
or transfer of any certificate or certificates for such Shares, (b) withhold a portion of any
Shares which are deliverable pursuant to AMIP VI or any other bonus program, plan or arrangement
that have a then fair market value sufficient to satisfy all of the Company’s applicable federal,
state and/or local withholding tax requirements or (c) take whatever action it deems necessary to
protect the Company’s interests with respect to its applicable federal, state and/or local
withholding tax requirements or obligations. Advanta Corp.’s obligation to make any delivery or
transfer of vested Shares shall be conditioned on the Participant’s compliance with all applicable
withholding requirements to the Company’s satisfaction. In addition to the foregoing, the
Committee may impose such requirements as it deems necessary or appropriate in order to arrange for
the Company’s withholding obligations to be handled properly, which may include imposing a
forfeiture of all or any portion of a Participant’s Restricted Stock Award and/or any cash bonus
payable hereunder or under any other bonus program, plan or arrangement if such Participant does
not comply with such requirements or deadlines the Committee may establish from time to time.

          (b) Section 83(b) Elections. In the event any Participant makes an election under
Section 83(b) of the Code to take into income the value of a Restricted Stock Award granted
hereunder without regard to the existence of a substantial risk of forfeiture with respect to such
Restricted Stock Award, but fails to make adequate arrangements for payment of the tax withholding
liabilities applicable by reason of such election, such Participant’s Restricted Stock Award shall
be immediately forfeited in its entirety.

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     14. Dividend and Other Rights. Except to the extent otherwise determined by the
Committee or as expressly provided herein, each Participant shall be entitled to receive dividends
paid, if any, with respect to the Shares that are subject to any Restricted Stock Award granted to
such Participant, and shall be entitled to all other rights, if any, of a holder of such Shares
until such Shares are forfeited pursuant to the terms of AMIP VI or the applicable Grant Document.

     15. Stock Certificates. The stock certificate(s) evidencing a Restricted Stock Award
shall be registered in the name of the Participant to whom such Restricted Stock Award is granted
and shall bear a legend referring to the terms, conditions and restrictions applicable to the
Shares subject thereto. The Committee may direct Advanta Corp. to either retain physical
possession or custody of or place into escrow any such certificate(s) until such time as such
Shares are vested.

     16. No Fractional Shares. In the event that any calculation of a number of shares
hereunder (including the calculations of the number of shares to be granted to a Participant or to
be vested upon the awarding of a bonus to a Participant) shall result in a number of shares that
includes a fractional share, the number of shares shall be rounded down to the nearest whole number
of shares.

     17. Special Rules Applicable by reason of Internal Revenue Code Section 409A. AMIP VI
is intended to provide bonus compensation and is not intended to provide benefits that are in the
nature of nonqualified deferred compensation. AMIP VI is to be interpreted and implemented by the
Committee, to the extent possible, so that benefits to Participants are not deemed to be
nonqualified deferred compensation for purposes of Section 409A of the Internal Revenue Code (the
“Code”) and applicable regulations promulgated thereunder. In general, it is anticipated that
benefits payable under AMIP VI will not be considered to be a form of nonqualified deferred
compensation by reason of the exemption available for payments that are considered to be only a
“short-term” deferral of compensation, as defined in Q&A 4 of IRS Notice 2005-1, and Proposed
Treasury Regulation Section 1.409A-1(b)(4), and such other guidance as may be issued by the
Treasury Department or the IRS under Code Section 409A in the future. Notwithstanding such
anticipated exemption from Code Section 409A, in the event benefits payable under AMIP VI are
determined to constitute a form of nonqualified deferred compensation to which Code Section 409A is
applicable, the Committee shall take such steps as it deems to be necessary or appropriate in order
to provide for payment of benefits under AMIP VI at such time and in such manner as the Committee
determines to be compliant with the requirements of Code Section 409A.

     18. Miscellaneous.

          (a) Governing Law. The provisions of AMIP VI and all questions relating to the
validity, interpretation and performance of AMIP VI, shall be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania (notwithstanding any conflict-of-law
doctrines of any state or other jurisdiction to the contrary).

          (b) Provisions Separable. The provisions of AMIP VI are independent of and separable
from each other, and no provision shall be affected or rendered invalid or unenforceable by virtue
of the fact that for any reason any other or others of them may be invalid or unenforceable in
whole or in part.

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