Document:

exv10w7

 

Exhibit 10.7

FORM OF

BRANDYWINE REALTY TRUST

RESTRICTED SHARE AWARD

     This is a Restricted Share Award dated as of May 9, 2007, from Brandywine Realty Trust, a
Maryland real estate investment trust (the “Company”) to ___(“Grantee”). Terms used
herein as defined terms and not defined herein have the meanings assigned to them in the Amended
and Restated Brandywine Realty Trust 1997 Long-Term Incentive Plan, as amended from time to time
(the “Plan”).

     1. Definitions. As used herein:

          (a) “Award” means the award of Restricted Shares hereby granted.

          (b) “Board” means the Board of Trustees of the Company, as constituted from time to
time.

          (c) “Change of Control” means “Change of Control” as defined in the Plan.

          (d) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
any successor thereto.

          (e) “Committee” means the Committee appointed by the Board in accordance with Section
2 of the Plan, if one is appointed and in existence at the time of reference. If no Committee has
been appointed pursuant to Section 2, or if such a Committee is not in existence at the time of
reference, “Committee” means the Board.

          (f) “Date of Grant” means May 9, 2007, the date on which the Company awarded the
Restricted Shares.

          (g) “Disability” means “Disability” as defined in the Plan.

          (h) “Fair Market Value” means “Fair Market Value” as defined in the Plan.

          (i) “Restricted Period” means, with respect to each Restricted Share, the period
beginning on the Date of Grant and ending on the applicable Vesting Date for such Restricted Share.

          (j)
“Restricted Shares” means the 1,209 Shares which are subject to vesting and
forfeiture in accordance with the terms of this Award.

 

 

          (k) “Rule 16b-3” means Rule 16b-3 promulgated under the 1934 Act, as in effect from
time to time.

          (l) “Share” means a common share of beneficial interest, $.01 par value per share, of
the Company, subject to substitution or adjustment as provided in Section 3(c) of the Plan.

          (m) “Trustee” means a member of the Board.

          (n) “Vesting Date” means the date on which the restrictions imposed under Paragraph 3
on a Restricted Share lapse, as provided in Paragraph 4.

     2. Grant of Restricted Shares. Subject to the terms and conditions set forth herein
and in the Plan, the Company hereby grants to Grantee the Restricted Shares.

     3. Restrictions on Restricted Share. Subject to the terms and conditions set forth
herein and in the Plan, prior to the Vesting Date in respect of Restricted Shares, Grantee shall
not be permitted to sell, transfer, pledge or assign such Restricted Shares. Share certificates
evidencing Restricted Shares shall be held in custody by the Company until the restrictions thereon
have lapsed. Concurrently herewith, Grantee shall deliver to the Company a share power, endorsed
in blank, relating to the Restricted Shares covered by the Award. During the Restricted Period,
share certificates evidencing Restricted Shares shall bear a legend 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 BRANDYWINE REALTY TRUST AMENDED AND RESTATED 1997
LONG-TERM INCENTIVE PLAN, AS AMENDED, AND AN AGREEMENT ENTERED INTO
BETWEEN THE REGISTERED OWNER AND BRANDYWINE REALTY TRUST. COPIES OF
SUCH PLAN AND AGREEMENT ARE ON FILE IN THE PRINCIPAL OFFICES OF
BRANDYWINE REALTY TRUST AND WILL BE MADE AVAILABLE TO ANY
SHAREHOLDER WITHOUT CHARGE UPON REQUEST TO THE SECRETARY OF THE
COMPANY.

     4. Lapse of Restrictions for Restricted Shares.

          (a) Subject to the terms and conditions set forth herein and in the Plan, the restrictions set
forth in Paragraph 3 on each Restricted Share that has not been forfeited as provided in Paragraph
5 shall lapse on the earlier of: (i) the applicable Vesting Date in respect of such Restricted
Share; (ii) Grantee’s termination of service as a Trustee before the applicable Vesting Date
because of Grantee’s death or Disability; or (iii) upon the occurrence of a Change of Control.

          (b) Subject to Paragraph 4(a), a Vesting Date for Restricted Shares subject to the Award shall
occur in accordance with the following schedule:

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	 	(i)	 	One-third of the Restricted
Shares will vest on May 9, 2008;
	 
	 	(ii)	 	An additional one-third of the
Restricted Shares will vest on May 9, 2009;
	 
	 	(iii)	 	An additional one-third of the
Restricted Shares will vest on May 9, 2010.

     5. Forfeiture of Restricted Shares.

          (a) Subject to the terms and conditions set forth herein, if Grantee terminates service as a
Trustee prior to the Vesting Date for a Restricted Share for reasons other than death or Disability
or a Change of Control, Grantee shall forfeit any such Restricted Share which has not vested as of
such termination of service. Upon a forfeiture of the Restricted Shares as provided in this
Paragraph 5, the Restricted Shares shall be deemed canceled.

          (b) The provisions of this Paragraph 5 shall not apply to Restricted Shares as to which the
restrictions of Paragraph 3 have lapsed.

     6. Rights of Grantee. During the Restricted Period, with respect to the Restricted
Shares, Grantee shall have all of the rights of a shareholder of the Company, including the right
to vote the Restricted Shares and the right to receive any distributions or dividends payable on
Shares.

     7. Notices. Any notice to the Company under this Award shall be made to:

Brandywine Realty Trust

555 East Lancaster Avenue

Suite 100

Radnor, PA 19087

Attention: Chief Financial Officer

or such other address as may be provided to Grantee by written notice. Any notice to Grantee under
this Award shall be made to Grantee at the address listed in the Company’s records. All notices
under this Award shall be deemed to have been given when hand-delivered, telecopied or delivered by
first class mail, postage prepaid, and shall be irrevocable once given.

     8. Securities Laws. The Committee may from time to time impose any conditions on the
Restricted Shares as it deems necessary or advisable to ensure that the Plan satisfies the
conditions of Rule 16b-3, and that Shares are issued and resold in compliance with the Securities
Act of 1933, as amended.

     9. Delivery of Shares. Upon a Vesting Date, the Company shall notify Grantee (or
Grantee’s legal representatives, estate or heirs, in the event of Grantee’s death before a Vesting
Date) that the restrictions on the Restricted Shares have lapsed. Within ten (10) business days of
a Vesting Date, the Company shall, without payment from Grantee for the Restricted Shares, deliver
to Grantee a certificate for the Restricted Shares without any legend or

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restrictions, except for such restrictions as may be imposed by the Committee, in its sole
judgment, under Paragraph 8, provided that no certificates for Shares will be delivered to Grantee
until appropriate arrangements have been made with Company for the withholding of taxes (if any)
which may be due with respect to such Shares. The Company is authorized to cancel a number of
Shares for which the restrictions have lapsed having an aggregate Fair Market Value equal to the
required tax withholdings (if any). The Company may condition delivery of certificates for Shares
upon the prior receipt from Grantee of any undertakings which it may determine are required to
assure that the certificates are being issued in compliance with federal and state securities laws.
The right to payment of any fractional Shares shall be satisfied in cash, measured by the product
of the fractional amount times the Fair Market Value of a Share on the Vesting Date, as determined
by the Committee.

     10. Award Not to Create Board Entitlement. The Award granted hereunder shall not
confer upon Grantee any right to continue on the Board.

     11. Miscellaneous.

          (a) The address for Grantee to which notice, demands and other communications are to be given
or delivered under or by reason of the provisions hereof shall be the Grantee’s address as
reflected in the Company’s records.

          (b) This Award and all questions relating to its validity, interpretation, performance and
enforcement shall be governed by and construed in accordance with the laws of Pennsylvania.

	 	 	 	 	 
	 	 	BRANDYWINE REALTY TRUST
	 
	 	 	 	 
	 

	 	BY:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	TITLE: President and Chief Executive Officer
	 
	 	 	 	 
	Accepted:
	 	 	 	 
	 
	 	 	 	 
	 	 	 	 	 

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EXHIBIT 10.1

DELPHI FINANCIAL GROUP, INC.

SECOND AMENDED AND RESTATED DIRECTORS STOCK PLAN

          Delphi Financial Group, Inc. (the “Company”) has adopted the Second Amended and Restated
Delphi Financial Group, Inc. Directors Stock Plan effective April 1, 2003, subject to the approval
of the stockholders of the Company. This Plan amends and restates the Company’s Amended and
Restated Directors Plan, as amended.

     1. PURPOSE

          This Amended and Restated Directors Stock Plan (the “Plan”) is intended to increase the
proprietary interest in Delphi Financial Group, Inc. (the “Company”) of outside directors of the
Company, i.e., directors who are not officers or employees of the Company or its
subsidiaries, whose continued services are important to the continued success of the Company,
thereby providing them with additional incentive to continue to serve as directors. The Plan
provides for the issuance of nonqualified stock options (“Options”) and Restricted Shares, as set
forth below. The Plan shall be effective upon its approval by the stockholders of the Company (as
provided in Section 10 below).

     2. ADMINISTRATION

          Except as to discretionary grants of Options pursuant to Section 5(B), the Plan shall be
substantially self-executing. Such discretionary grants, and any administrative determinations
regarding the Plan that may be required to be made, shall be made pursuant to the affirmative vote
of a majority of the members of a committee consisting of the members of the Company’s Board of
Directors (the “Committee”). All ministerial matters relating to the Plan shall be performed by or
at the direction of the Committee.

     3. ELIGIBILITY

          The persons who shall receive Options or Restricted Shares (the “Participants”) shall be
members of the Company’s Board of Directors who are not officers or employees of the Company or any
of its subsidiaries (“Subsidiaries”), as that term is defined by Section 424(f) of the Internal
Revenue Code of 1986, as amended from time to time (the “Code”). Persons eligible to be
Participants are sometimes referred to herein as “Outside Directors.”

     4. STOCK

          The stock subject to the Options and Restricted Shares (collectively, the “Awards”) shall be
shares (the “Shares”) of the Company’s authorized but unissued or reacquired

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Class A common stock, par value $.01 per share. The aggregate number of Shares as to which
Awards may be granted shall not exceed 450,000. The limitation established by the preceding
sentence shall be subject to adjustment as provided in Section 5(F) of the Plan. In the event that
any outstanding Award under the Plan for any reason expires, terminates or is cancelled, the Shares
allocable to the unexercised portion of an Option or the unvested portion of Restricted Shares will
again be available for Awards thereafter made under the Plan.

     5. TERMS AND CONDITIONS OF AWARDS

          A. Option Grants. Options shall automatically be granted under the Plan as follows:

               (i) On the first business day immediately following each date on which the Company holds its
annual meeting of stockholders (commencing with the 2007 meeting), each Outside Director then in
office will automatically be awarded as of such date Options exercisable for a number of Shares
determined pursuant to the following formula: Number of Option Shares = ($100,000 multiplied by 3)
divided by (Fair Market Value, as that term is defined in Section 5(C)(ii) hereof, as of the award
date).

               (ii) Each Outside Director shall, on the first business day following each date on which such
director is elected, re-elected or appointed, as applicable, to the Company’s Board of Directors
(such following day, the “Award Date”), commencing with the elections to occur at the 2003 annual
meeting of stockholders, be awarded Options in lieu of the cash amount (the “Retainer Amount”) that
such director would be entitled to receive for serving as such in the period from the Award Date up
to the date of the Company’s next following annual meeting of stockholders, exclusive of meeting
fees, fees for serving on any committee of the Board, or fees associated with any other services
provided to the Company or its Subsidiaries. Such Options will be exercisable for the nearest
number of whole Shares determined pursuant to the following formula: Number of Option Shares =
(Retainer Amount multiplied by 3), divided by (Fair Market Value, as that term is defined in
Section 5(C)(ii) hereof, as of the award date). Notwithstanding the foregoing, Options will not be
awarded pursuant to this Section 5(A)(ii) if the Outside Director files with the Secretary of the
Company, on or prior to the commencement of the calendar year in which the applicable Award Date is
to occur, a written election not to receive Options in lieu of the Retainer Amount (other than the
first Award Date following approval of the Plan and the Award Date following the date on which such
director is first elected or appointed, in which case such election may be made at any time prior
to such Award Date) and instead to receive either cash or Restricted Shares, as set forth below.
The number of Restricted Shares credited to an Outside Director who elects such Awards shall be the
nearest number of whole Shares determined by dividing the Retainer Amount (or, in the case of an
Outside Director who has elected to receive cash, the Retainer Amount to the extent it exceeds the
maximum cash payable) by the Fair Market Value of a Share on the Award Date.

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          B. Discretionary Option Grants. Without limiting the operation of Section 5(A)
hereof, the Committee may also make discretionary Option grants to Outside Directors hereunder.
The Committee may determine in its discretion the Outside Directors to whom any such Options are to
be granted under this Plan, the number of Shares to be subject to each such Option and the other
terms and conditions of such Options, consistent with the terms of the Plan.

          C. Terms of Options. Promptly after each award pursuant to Section 5(A) or Section
5(B) hereof, a Notice of Award of Stock Option (an “Option Notice”) shall be given to each
Optionee, which notice shall comply with and be subject to the following terms and conditions:

               (i) Number of Shares. Each Option Notice shall state the number of
Shares to which it
pertains.

               (ii) Option Price. Each Option Notice shall state the Option price
per Share, which
shall be 100% of the Fair Market Value of a Share on the date of the grant of the Option (the
“Option Price”). For purposes hereof, “Fair Market Value” shall be the closing price on the
applicable date of a Share, as reported on the New York Stock Exchange (the “NYSE”), or, if the
Shares are not then listed for trading on the NYSE, the closing price of the Shares as reported on
another recognized securities exchange or on the NASDAQ National Market System if the Shares shall
then be listed on such exchange or system. If the Shares did not trade on the award date on the
NYSE or such other applicable exchange or system, the Fair Market Value for purposes hereof shall
be the reported closing price on the last business day on which the Shares were traded preceding
the award date.

               (iii) Payment of Option Price. The Option Notice may provide that
the Optionee may
make payment of the Option Price in cash, Shares or such other consideration as may be specified
therein or as may be acceptable to the Committee, or any combination thereof, in an amount or
having an aggregate value, as the case may be, equal to the total Option Price. Such payment shall
be made upon exercise of the Option.

               (iv) Term, Transferability and Exercisability of Options.

                    (a) Each Option Notice shall state the date on which the Option shall
expire (the “Expiration
Date”), which shall be ten years from the date on which the Option is awarded. Options are not
assignable or transferable by an Optionee other than by will or the laws of descent and
distribution, or pursuant to a qualified domestic relations order as defined by the Code or by
Title I of the Employee Retirement Income Security Act, or the rules thereunder. Notwithstanding
the foregoing, if provided in the applicable Option Notice (at the time of grant or at any time
thereafter), an Option granted hereunder may be transferred for no consideration by the Optionee to
members of his or her immediate family, to a trust or trusts established for the exclusive benefit
only of one or more members of his or her immediate family or to a partnership or other entity in
which his or her immediate family members are the only partners or owners. Any Option held by the
transferee will continue to be subject to the same terms and conditions that were applicable to the
Option immediately prior to the transfer, except that the Option will be transferable by the
transferee only by will or the laws of descent and distribution. For

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purposes hereof, “immediate family” means the Optionee’s children, stepchildren, grandchildren,
parents, stepparents, grandparents, spouse, siblings (including half brothers and sisters),
in-laws, and relationships arising because of legal adoption.

                    (b) Options granted pursuant to Section 5(A)(i) hereof shall
become exercisable in three equal
annual installments of thirty-three and one-third percent (33 1/3%) each, beginning on the first
day of May of ther year following the year in which the grant is made. Options granted pursuant to
Section 5(A)(ii) hereof shall become exercisable in four substantially equal installments (without
taking into account any fractional share) on the dates which follow the date of the grant by 90,
180, 270 and 360 days, respectively. Options granted pursuant to Section 5(B) hereof shall become
exercisable on such terms and conditions as are established by the Committee and set forth in the
Option Notice. Once Options with respect to Shares become exercisable as aforesaid, they may be
exercised in whole or in part from time to time through the applicable Expiration Date, subject to
the terms and conditions hereof. Upon or in connection with a Change of Ownership, each Optionee
shall have the right, immediately prior to such Change of Ownership, to exercise his or her Options
without regard to the foregoing installment provisions as to exercisability. For purposes of this
Plan, a “Change of Ownership” shall be deemed to have occurred (1) if individuals who, as of the
effective date of this Plan, constitute the Board of Directors of the Company (the “Board of
Directors” generally and as of the date hereof the “Incumbent Board”) cease for any reason to
constitute at least a majority of the directors constituting the Board of Directors, provided that
any person becoming a director subsequent to the effective date of this Plan whose election, or
nomination for election by the Company’s shareholders, was approved by a vote of at least
three-quarters (3/4) of the then directors who are members of the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is (A) in connection
with the acquisition by a third person, including a “group” as such term is used in Section
13(d)(3) of the Securities and Exchange Act of 1934, as amended (the “1934 Act”), of beneficial
ownership, directly or indirectly, of 20% or more of the combined voting securities ordinarily
having the right to vote for the election of directors of the Company (unless such acquisition of
beneficial ownership was approved by a majority of the Board of Directors who are members of the
Incumbent Board), or (B) in connection with an actual or threatened election contest relating to
the election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the 1934 Act) shall be, for purposes of this Plan, considered as though such
person were a member of the Incumbent Board; or (2) if the stockholders of the Company approve a
merger, consolidation, recapitalization or reorganization of the Company, reverse split of any
class of voting securities of the Company, or an acquisition of securities or assets by the
Company, or the sale or disposition by the Company of all or substantially all of the Company’s
assets, or if any such transaction is consummated without stockholder approval, other than any such
transaction in which the holders of outstanding Company voting securities immediately prior to the
transaction receive, with respect to such Company voting securities, voting securities of the
surviving or transferee entity representing more than 60 percent of the total voting power
outstanding immediately after such transaction, with the voting power of each such continuing
holder relative to other such continuing holders not substantially altered in the transaction; or
(3) if the stockholders of the Company approve a plan of complete liquidation of the Company.

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                    (c) At any time and from time to time when any Option or portion
thereof is exercisable, such
Option or portion thereof may be exercised in whole or in part, as applicable; provided, however,
that the Company shall not be required to issue fractional Shares.

               (v) Termination of Service Except by Death, Disability, Retirement or Removal for
Cause. In the event that the Optionee shall cease to be an Outside Director for any reason
other than death, disability, retirement or removal for cause as further provided herein, Options
granted pursuant to Section 5(A)(i) and Section 5(B) hereof may be exercised only within three (3)
months after such termination of service or such longer period as may be established by the
Committee at the time of grant or thereafter. Sections 5(C)(vi) and 5(C)(viii) hereof shall not be
construed to limit the right of an Optionee (or, in the case of the death of an Optionee, the
persons referenced in the second sentence of Section 5(C)(vi)) to exercise Options granted pursuant
to Section 5(A)(ii) hereof prior to their Expiration Date. Notwithstanding anything contained in
this Plan to the contrary, any Option that is not exercisable on the last day on which an Optionee
is an Outside Director shall, unless otherwise determined by the Committee in its discretion in any
particular instance, expire immediately, and in no event shall any Option be exercised after its
Expiration Date.

               (vi) Death or Disability of Optionee. In the event an Optionee
shall die or become
disabled while a director of the Company, all of such Optionee’s outstanding Options shall become
exercisable, and all of such outstanding Options may be exercised at any time within one (1) year
after the Optionee’s death or disability or such longer period as may be established by the
Committee at the time of grant or thereafter, but in no event may an Option be exercised after its
Expiration Date. During such one-year period, the Option may be exercised by the Optionee or a
representative, or in the case of death, by the executors or administrators of the Optionee or by
any person or persons who shall have acquired the Option directly from the Optionee by bequest or
inheritance. Whether an Optionee shall have become disabled for the purposes of the Plan shall be
determined by the Committee, which determination shall be final and conclusive.

               (vii) Removal for Cause. If an Optionee is removed as a director of
the Company on
account of any act of (a) fraud or intentional misrepresentation or (b) embezzlement,
misappropriation or conversion of assets or opportunities of the Company, or any unauthorized
disclosure of confidential information or trade secrets of the Company, all unexercised Options
shall terminate as of the date of such Optionee’s removal.

               (viii) Retirement. To the extent an Option was exercisable on the
last date of
service as a director of the Company, such Option may be exercised up to one (1) year following the
Optionee’s retirement at or after age 75 or such longer period as may be established by the
Committee at the time of grant or thereafter, but in no event may an Option be exercised after its
Expiration Date.

               (ix) Modification, Extension and Renewal of Options. Subject to the
terms and
conditions and within the limitations of the Plan, the Committee may modify, extend

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or renew outstanding Options granted under the Plan, or accept the surrender of outstanding
Options (to the extent not theretofore exercised). Notwithstanding the foregoing, however, no
modification of an Option shall, without the consent of the Optionee, alter or impair any rights or
obligations under any Option theretofore granted under the Plan.

          D. Restricted Shares. Restricted Shares issued hereunder will vest in four equal
installments on the dates which follow the date of grant by 90, 180, 270 and 360 days,
respectively. From and after the date of grant, the Participant will be entitled to vote and
receive dividends, if any, on the Restricted Shares. In the event the Participant’s service on the
Board of Directors ceases for any reason prior to a vesting date, the unvested Restricted Shares
shall be forfeited to the Company. Notwithstanding the foregoing, the Restricted Shares shall vest
in full upon a Change of Ownership (as defined above). Prior to vesting, the Restricted Shares
shall not be transferable other than by will or the laws of descent and distribution or pursuant to
a qualified domestic relations order, as defined by the Code.

          E. Recapitalization, Reorganization, Etc., of Company.

               (i) Subject to any required action by the stockholders, the number of Shares covered by each
outstanding Award, and the price per Share of any Option so covered, shall automatically be
proportionately adjusted for any increase or decrease in the number of issued shares of Class A
Common Stock of the Company resulting from a subdivision or consolidation of Shares or the payment
of a stock dividend or any other increase or decrease in the number of such shares effected without
receipt of consideration by the Company.

               (ii) If, pursuant to any reorganization, recapitalization, sale or exchange of assets,
consolidation or merger, outstanding Class A Common Stock of the Company is or would be exchanged
for other securities of the Company or of another corporation which is a party to such transaction,
or for property, whether or not any such transaction gives rise to a Change of Ownership, any
Awards under the Plan theretofore granted shall apply to the securities or property into which the
Class A Common Stock covered thereby shall be so changed or for which such Class A Common Stock
shall be exchanged. In any of such events, the total number and class of Shares then remaining
available for issuance under the Plan (including Shares reserved for outstanding Awards and Shares
available for future grant of Awards under the Plan) shall likewise be adjusted so that the Plan
shall thereafter cover the number and class of shares equivalent to the Shares covered by the Plan
immediately prior to such event.

               (iii) In the event of a change in the Class A Common Stock of the Company as presently
constituted, which is limited to a change of all of its authorized shares with par value into the
same number of shares with a different par value or without par value, the shares resulting from
any such change shall be deemed to be the Class A Common Stock within the meaning of the Plan.

               (iv) Adjustments pursuant to Section 5(F)(ii) hereof shall be made by the Committee, whose
determination as to which shall be final, binding and conclusive.

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               (v) Except as hereinbefore expressly provided in this Section 5(F), a Participant shall
have
no rights by reason of any subdivision or consolidation of shares of stock of any class or the
payment of any stock dividend or any other increase or decrease in the number of shares of stock of
any class or by reason of any dissolution, liquidation, merger or consolidation or spin-off of
assets or stock of another corporation, and any class, or securities convertible into shares of
stock of any class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Class A Common Stock subject to the Award.

               (vi) The grant of an Award pursuant to the Plan shall not affect in any way the right or power
of the Company to make adjustments, reclassifications, mergers, reorganizations or changes of its
capital or business structure, to merge or to consolidate, to dissolve or liquidate or to sell or
transfer all or any part of its business or assets.

          F. Rights as a Stockholder. No person shall have any rights as a stockholder with
respect to any Shares covered by an Option until the date of the issuance of the Shares to such
person. No adjustments shall be made to outstanding Options for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or distributions or other rights,
except as provided in Section 5(F) hereof.

          G. Investment Purpose. Each Award made under the Plan shall be granted on the
condition that any purchases of Shares hereunder shall be for investment purposes and not with a
view to resale or distribution, except that in the event the Shares are registered under the
Securities Act of 1933, as amended (the “Act”), or in the event a resale of such Shares without
such registration would otherwise be permissible, such condition shall be inoperative if, in the
opinion of counsel for the Company, such condition is not required under the Act, or any other
applicable law, regulation or rule of any governmental agency.

          H. Other Provisions. The Option Notice and the terms of other Awards shall comply
with and be subject to the terms and conditions of the Plan, and shall contain such other terms,
conditions and provisions as the Committee shall deem advisable.

     6. TERM OF PLAN

          Awards shall be granted pursuant to the Plan from time to time within the period of ten years
from the earlier of the date of adoption of the Plan and the date on which the Plan is approved by
the stockholders of the Company.

     7. AMENDMENT OF THE PLAN

          The Board of Directors may, insofar as permitted by law, from time to time, with respect to
any Shares not then subject to Awards, suspend or discontinue the Plan or revise or amend it in any
respect whatsoever, subject to the approval of the stockholders of the Company where such approval
is required by law or regulation or pursuant to the rules of the NYSE or, if the Shares are not
listed on the NYSE, the rules of any other exchange or market on which the

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Shares may be traded.

     8. APPLICATION OF FUNDS

          The proceeds received by the Company from the sale of shares pursuant to Options will be used
for general corporate purposes.

     9. NO OBLIGATION TO EXERCISE OPTION

          The granting of an Option shall impose no obligation upon the Optionee to exercise such
Option.

     10. APPROVAL OF STOCKHOLDERS

          This Plan shall be effective upon its approval by the stockholders of the Company.

     11. NO RIGHT TO NOMINATION

          Neither the Plan nor any action taken hereunder shall be construed as giving any director any
right to be nominated for reelection to the Company’s Board of Directors.

     12. EFFECT OF PLAN UPON OTHER OPTIONS AND COMPENSATION PLANS

          The adoption of this Plan shall not affect any other compensation or incentive plans in effect
for the Company or any Subsidiary. Nothing in this Plan shall be construed to limit the right of
the Company or any Subsidiary to (a) establish any other forms of incentives or compensation for
employees or directors of or persons associated with the Company or any Subsidiary, or (b) grant or
assume options otherwise than under this Plan in connection with any proper corporate purpose,
including, but not by way of limitation, the grant or assumption of options in connection with the
acquisition by purchase, lease, merger, consolidation or otherwise, of the business, stock or
assets of any corporation, firm or association.

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