Document:

Directors Stock Award Plan

 

EXHIBIT 10.5(b)

RYDER SYSTEM, INC.

BOARD OF DIRECTORS STOCK AWARD PLAN

As amended through February 10, 2005

 

 

RYDER SYSTEM, INC.

BOARD OF DIRECTORS STOCK AWARD PLAN

1. Purpose of this Plan

The purpose of the Ryder System, Inc. Board of Directors Stock Award Plan (this “Plan”) is to
attract and retain persons of outstanding competence to serve as directors of Ryder System, Inc.
(the “Company”) and to provide a mutuality of interest between the directors and shareholders by
increasing the proportion of directors’ compensation which is stock based.

2. Effective Date and Term of this Plan

This Plan became effective on May 2, 1997, with the approval of the shareholders of the Company.
Unless previously terminated in accordance with Section 13 of this Plan, this Plan shall terminate
on the close of business on May 1, 2007, after which no awards shall be granted under this Plan.
Such termination shall not affect any awards granted prior to such termination.

3. Administration of this Plan

A. Duties of the Committee. The Plan shall be administered by the Compensation Committee
(the “Committee”). The Committee shall have full authority to interpret the Plan and to decide any
questions and settle all controversies and disputes that may arise in connection with the Plan; to
establish, amend and rescind rules for carrying out the Plan; to administer the Plan, subject to
its provisions; to prescribe the form or forms of instruments evidencing grants made hereunder and
any other instruments required under the Plan and to change such forms from time to time; and to
make all other determinations and to take all such steps in connection with the Plan and the grants
as the Committee, in its sole discretion, deems necessary or desirable. Any determination, action
or conclusion of the Committee shall be final, conclusive and binding on all parties.

B. Advisors. The Committee may employ such legal counsel, consultants and agents as it may
deem desirable for the administration of the Plan, and may rely upon any advice or opinion received
from any such counsel or consultant and any computation received from any such consultant or agent.
Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be
paid by the Company.

C. Determinations. Each determination, interpretation or other action made or taken
pursuant to the provisions of this Plan by the Committee shall be final, conclusive and binding for
all purposes and upon all persons, including, without limitation, the Participants, the Company,
directors, officers and other employees of the Company, and the respective heirs, executors,
administrators, personal representatives and other successors in interest of each of the foregoing.

D. Disinterested or Non-Employee Directors. Notwithstanding anything herein to the
contrary and solely to the extent required under Section 16(b) of the Act, the Committee may not

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take any action which would cause any director to cease to be a “disinterested person” or
“non-employee director” for purposes of Rule 16b-3 promulgated under the Act, as then in effect or
any successor provisions (“Rule 16b-3”), with regard to any equity plan of the Company.

4. Common Stock Subject to this Plan

A. Number of Shares. The shares of common stock of the Company, par value $.50 per share
(“Common Stock”), to be issued in connection with an award under this Plan may be made available
from authorized but unissued Common Stock, or Common Stock purchased on the open market or
otherwise. Subject to the provisions of the next succeeding paragraph, the maximum aggregate
number of shares of Common Stock for which awards may be granted under this Plan shall be 500,000
shares. If a Unit (as defined in Section 7) awarded under this Plan fails to become vested, any
share allocable to that Unit shall become available for grant to other Participants (as defined in
Section 5). If an Option (as defined in Section 9) granted under this Plan expires or is
terminated without having been exercised in full, the unpurchased or forfeited shares or rights to
receive shares shall become available for grant to other Participants.

B. Adjustments; Recapitalization, etc. The existence of this Plan and the grants made
hereunder shall not affect in any way the right or power of the Board or the shareholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or other change in
the Company’s capital structure or its business, any merger or consolidation of the Company, any
issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting Common
Stock, the dissolution or liquidation of the Company or any sale or transfer of all or part of its
assets or business, or any other corporate act or proceeding, in which case the provisions of this
Section 4.B. shall govern outstanding grants:

     (i) The shares with respect to which Options or Units may be granted are shares of Common
Stock as presently constituted, but, if and whenever the Company shall effect a subdivision,
recapitalization or consolidation of shares or the payment of a stock dividend on shares without
receipt of consideration, the aggregate number and kind of shares of capital stock issuable under
this Plan shall be proportionately adjusted, and each holder of a then outstanding Option shall
have the right to purchase under such Option, in lieu of the number of shares as to which the
Option was then exercisable but on the same terms and conditions of exercise set forth in such
Option, the number and kind of shares of capital stock which he or she would have owned after such
sub-division, recapitalization, consolidation or dividend if immediately prior thereto he had been
the holder of record of the number of shares as to which such Option was then exercisable.
Similarly, regarding shares with respect to Units that may be granted, the number of Units shall be
appropriately adjusted to reflect the foregoing types of transactions.

     (ii) If the Company merges or consolidates with one or more corporations and the Company shall
be the surviving corporation, thereafter upon exercise of an Option theretofore granted, the
Participant shall be entitled to purchase under such Option in lieu of the number of Shares as to
which such Option shall then be exercisable, but on the same terms and conditions of exercise set
forth in such Option, the number and kind of shares of capital stock or other property to which the
Participant would have been entitled pursuant to the terms of the agreement of merger or
consolidation if, immediately prior to such merger or consolidation, the Participant had been the

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holder of record of the number of shares as to which such Option was then exercisable. Similarly,
regarding shares with respect to Units that may be granted, the number of Units shall be
appropriately adjusted to reflect the foregoing types of transactions.

     (iii) If as a result of any adjustment made pursuant to the preceding paragraphs of this
Section 4.B., any Participant shall become entitled upon exercise of an Option or vesting of a Unit
to receive any shares of capital stock other than Common Stock, then the number and kind of shares
of capital stock so receivable thereafter shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the
Common Stock set forth in this Section 4.B.

     (iv) Except as hereinbefore expressly provided, the issuance by the Company of shares of stock
of any class or securities convertible into shares of stock of any class, for cash, property, labor
or services, upon direct sale, upon the exercise of rights or warrants to subscribe therefor, or
upon conversion of shares or other securities, and in any case whether or not for fair value, shall
not affect, and no adjustment by reason thereof shall be made with respect to, the number of shares
subject to Options or Units theretofore granted or the purchase price per share.

     (v) Any adjustment made by the Committee pursuant to this paragraph shall be conclusive and
binding upon the Participant, the Company and any other related person.

5. Eligible Persons

Participation in this Plan shall be limited to those members of the Board who, at the time an award
is made hereunder, are not employees of the Company or any of its subsidiaries or affiliates within
the meaning of the Employee Retirement Income Security Act of 1974, as amended (a “Participant”).
A member of the Board who is an employee and who retires or resigns from employment with the
Company or any of its subsidiaries or affiliates, but remains a member of the Board, shall become a
Participant at the time of such termination of employment.

6. Awards

The Committee may grant the following types of awards under this Plan: Units pursuant to Section 7
hereof and Options pursuant to Section 9 hereof.

7. Units

Effective as of May 2, 1997, the Company discontinued its prior retirement plan for the Board. The
retirement compensation which would have otherwise been payable at retirement to those individuals
who were Participants on May 2, 1997, was converted to a present value dollar amount, based on
actuarial assumptions satisfactory to the Committee. Such dollar amount was converted into a
number of restricted stock units (“Units”) by dividing such dollar amount by the average of the
Fair Market Values of the Common Stock on the last business day of each of the three (3) months
preceding May 2, 1997. “Fair Market Value” as used in this Plan shall mean the average of the high
and low price of a share of Common Stock as reported by the composite
transaction reporting system for securities listed on the New York Stock Exchange on the applicable
date.

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On the date of the Company’s annual shareholders meeting (the “Grant Date”), each Participant shall
be granted additional Units. The number of Units which shall be granted will be the number of
whole shares of Common Stock that can be purchased for $80,000 based on the Fair Market Value of
the Common Stock on the Grant Date. Fractional shares shall not be granted. “Fair Market Value”
will be the average of the highest and lowest sales price for the Common Stock as reported on the
New York Stock Exchange Composite Transaction Reporting System on the Grant Date.

In addition, from time to time, the Committee may award additional Units to Participants pursuant
to this Section 7 and the other terms and conditions of this Plan. Such Units may be granted as
initial grants upon a Participant’s appointment to the Board, and/or annually.

The Company shall maintain an individual book account under this Plan for each Participant awarded
Units pursuant to this Section 7. Such account shall be credited with the number of Units awarded
to each Participant and shall continue to be expressed in Units until such Participant has vested
in such Units. Any dividends or other distributions paid on the Common Stock shall be credited on
an annual basis to each Participant’s account in respect of each Unit and shall be deemed to be
reinvested in additional Units based on the Fair Market Value of a share of Common Stock on the
dividend payment or distribution date. Any accrued and unpaid dividends will be credited to each
Participant’s account upon termination of their service on the Board. In addition, the number of
Units allocated to each Participant’s account shall be adjusted to reflect stock dividends, stock
splits and similar transactions affecting the value of Common Stock as described more fully in
Section 4.B. hereof.

With respect to Units in each Participant’s account that are made as annual grants by the
Committee, such Units shall vest on the date of such Participant’s cessation of service as a
Director and shall be paid to such Participant, in an equivalent number of shares of Common Stock,
in accordance with such Participant’s payment election described below in Section 8. With respect
to Units in each Participant’s account that are made as an initial grant by the Committee upon a
director’s election to the Board, such Units shall vest on the date of such Participant’s cessation
of service as a Director, provided the director has served for at least one year and shall be paid
to such Participant, in an equivalent number of shares of Common Stock, in accordance with such
Participant’s payment election described below in Section 8. With respect to Units in each
Participant’s account that were made in connection with the termination of the prior retirement
plan described in the first paragraph of this Section 7, such Units shall vest on the date of such
Participant’s retirement from the Board after age 65 with at least ten years of service, and shall
be paid to such Participant, in an equivalent number of shares of Common Stock, in accordance with
such Participant’s payment election described below in Section 8. Prior to vesting, no Units in a
Participant’s account shall be assignable or transferable by such Participant and no right or
interest of any Participant shall be subject to any lien, obligation or liability.

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8. Payment Elections for Units

In connection with the commencement of participation in this Plan, each Participant eligible to
receive an award of Units hereunder shall make an election (the “Payment Election”) concerning the
timing of distribution of the amounts credited to such Participant’s account. Any payment from
such account shall commence following such Participant’s retirement from, or cessation of service
with, the Board, but in no event prior to one year after receipt by the Committee of such
Participant’s initial Payment Election, except for Participants who retired from, or ceased service
with, the Board in calendar year 1997 who received payment in a lump sum as soon as practicable
following their retirement or cessation of service. The forms of payment available to all other
Participants shall be a lump sum payment of the shares or annual installments of the shares over a
period not to exceed ten (10) years from the earliest date the Participant may commence receiving
payments hereunder. Subsequent Payment Elections which shall supersede the Initial Payment
Election may be made by a Participant, but any subsequent Payment Election shall not be valid
unless it is made at least one year prior to the date that the commencement of payments to the
Participant hereunder is otherwise due to commence.

In the event of a Participant’s death before the balance from such Participant’s account is fully
paid, payment of the balance of such Participant’s account shall be made to such Participant’s
estate in accordance with the manner selected by the Participant prior to death; provided, however,
the Committee may, upon consideration of the application of the duly appointed administrator or
executor of such Participant’s estate, direct that the balance of such Participant’s account be
paid to the estate in a single payment.

9. Stock Options

On the date of the Company’s annual shareholders’ meeting, the Company may, during the term of this
Plan, grant Participants a non-qualified stock option (an “Option”) to purchase a number of shares
of Common Stock determined by the Committee, provided the Participant will continue to serve as a
member of the Board following the meeting. The purchase price for each share of Common Stock
issuable under an Option shall not be less than 100 percent (100%) of the Fair Market Value of a
share of Common Stock on the date of grant. Each Option shall be for such term (but, in no event
for greater than ten years) and shall be exercisable in such installments as shall be determined by
the Committee at the time of grant of the Option. No Option granted under this Plan shall be
assignable or transferable by a Participant except by will or the laws of descent and distribution.
A Participant shall forfeit any Option assigned or transferred, voluntarily or involuntarily, other
than as permitted under this Section 9. Each Option shall be exercised during the Participant’s
lifetime only by the Participant or the Participant’s guardian or legal representative. Each
Option granted shall be evidenced by an Option Agreement entered into between the Participant and
the Committee.

10. Exercise of Options

Subject to the provisions of this Section 10, each Option may be exercised in whole or, from time
to time, in part with respect to the number of then exercisable shares in any sequence desired by
the Participant. To exercise an Option, the Participant shall (i) give written notice to

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the Company in form satisfactory to the Committee indicating the number of shares of Common Stock
which the Participant elects to purchase, (ii) deliver to the Company payment of the full purchase
price of the shares being purchased (A) in cash or a certified or bank cashier’s check payable to
the order of the Company, or (B) with the approval of the Committee, in shares of Common Stock
having a Fair Market Value on the date of exercise equal to the purchase price, or (C) a
combination of the foregoing having an aggregate Fair Market Value equal to such purchase price,
and (iii) deliver to the Secretary of the Company such written representations, warranties and
covenants as the Company may require to permit this Plan and any Options or shares of Common Stock
granted or issued hereunder to comply with any applicable blue sky or other federal or state
securities laws. A Participant shall not have any rights as a shareholder with respect to shares
subject to an Option until the close of business on the date on which the Option has been
exercised.

11. Cessation of Service on the Board

If a Participant’s service on the Board ceases for any reason, other than as specified in the
subsequent paragraphs of this Section 11, any Option held by such Participant shall terminate three
(3) months after the date of such cessation of service; provided, however, that in the event of the
death of the Participant during such three-month period, such Option shall, to the extent it was
exercisable on the date of cessation of service, be exercisable by the Participant’s legal
representatives, heirs or legatees for a period of one (1) year commencing on the date of the
Participant’s death and shall terminate at the expiration of such period. Except as provided in
subsequent paragraphs of this Section 11, Options that were not exercisable during the period a
person served as a director shall not become exercisable upon a termination of service for any
reason, and such Options shall terminate and become null and void upon the termination of service.

If the cessation of service on the Board is due to the Participant’s death, any Option shall, to
the extent it was exercisable on the date of death, continue to be exercisable by such
Participant’s legal representatives, heirs or legatees for the term of such Option.

If the cessation of service is due to the Participant’s retirement or disability, any Option not
previously exercised or expired shall continue to vest and be exercisable during the three (3) year
period following the date of cessation of service, and to the extent it is exercisable at the
expiration of such three (3) year period, it shall continue to be exercisable by such Participant
or such Participant’s legal representatives, heirs or legatees for the term of such Option.

12. Change of Control

Notwithstanding any other provision of this Plan, in the event of a Change of Control (as defined
below), the Units in each Participant’s account shall become immediately vested and shall be paid
in full in a lump sum of equivalent shares of Common Stock to each Participant as soon as
practicable following the Change of Control. In addition, in the event of a Change of Control, each
Option not previously exercised or expired under the terms of this Plan shall become immediately
exercisable in full and shall remain exercisable to the full extent of the shares of
Common Stock available thereunder, regardless of any installment provisions applicable thereto, for
the remainder of its term.

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A “Change of Control” shall be deemed to have occurred if:

     (i) any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “1934 Act”)) (a “Person”) becomes the beneficial
owner, directly or indirectly, of twenty percent (20%) or more of the combined voting power of the
Company’s outstanding voting securities ordinarily having the right to vote for the election of
directors of the Company; provided, however, that for purposes of this subparagraph (i), the
following acquisitions shall not constitute a Change of Control: (A) any acquisition by any
employee benefit plan or plans (or related trust) of the Company and its subsidiaries and
affiliates or (B) any acquisition by any corporation pursuant to a transaction which complies with
clauses (A), (B) and (C) of subparagraph (iii) of this Section 12; or

     (ii) the individuals who, as of August 18, 1995, constituted the Board (and as of August 18,
1995, the “Incumbent Board”) cease for any reason to constitute at least two-thirds (2/3) of the
Board, provided, that any person becoming a director subsequent to August 18, 1995 whose election,
or nomination for election, was approved by a vote of the persons comprising at least two-thirds
(2/3) of the Incumbent Board (other than an election or nomination of an individual whose initial
assumption of office is in connection with an actual or threatened election contest, 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

     (iii) there is a reorganization, merger or consolidation of the Company (a “Business
Combination”), in each case, unless, following such Business Combination, (A) all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the Company’s
outstanding Common Stock and outstanding voting securities ordinarily having the right to vote for
the election of directors of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then
outstanding shares of common stock and the combined voting power of the then outstanding voting
securities ordinarily having the right to vote for the election of directors, as the case may be,
of the corporation resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business Combination, of the Company’s
outstanding Common Stock and outstanding voting securities ordinarily having the right to vote for
the election of directors of the Company, as the case may be, (B) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit plan or plans (or
related trust) of the Company or such corporation resulting from such Business Combination and
their subsidiaries and affiliates) beneficially owns, directly or indirectly, 20% or more of the
combined voting power of the then outstanding voting securities of the corporation resulting from
such Business Combination and (C) at least two-thirds (2/3) of the members of the board of
directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such Business Combination; or

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     (iv) there is a liquidation or dissolution of the Company approved by the shareholders; or

     (v) there is a sale of all or substantially all of the assets of the Company.

13. Amendments to this Plan

The Committee may at any time (i) terminate this Plan or (ii) modify or amend this Plan in any
respect, except that, to the extent required to maintain the qualification of this Plan under
Section 16 of the 1934 Act, or as otherwise required to comply with applicable law or the
regulations of any stock exchange on which the Common Stock is listed, the Committee may not,
without the shareholders’ approval, (A) materially increase the benefits accruing to Participants
under this Plan; (B) materially increase the number of securities which may be issued under this
Plan; or (C) materially modify the requirements as to eligibility for participation in this Plan.
Should this Plan require amendment to maintain full legal compliance because of rules, regulations,
opinions or statutes issued by the Securities and Exchange Commission, the U.S. Department of the
Treasury or any other governmental or governing body, then the Committee or the Board may take
whatever action, including but not limited to amending or modifying this Plan, is necessary to
maintain such compliance. The termination or any modification or amendment of this Plan shall not,
without the consent of any Participant involved, adversely affect rights under a Unit or an Option
previously awarded to such Participant.

Transactions under this Plan are intended to comply with all applicable conditions of Rule 16b-3 or
its successors under the 1934 Act. To the extent any provision of this Plan or action by the
Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Committee. Moreover, in the event this Plan does not include a provision
required by Rule 16b-3 to be stated herein, such provision (other than one relating to eligibility
requirements, or the price and amount of Options) shall be deemed automatically to be incorporated
by reference into this Plan.

14. General Provisions

A. Sale Proceeds. The proceeds of the sale of shares subject to Options under the Plan are
to be added to the general funds of the Company and used for its general corporate purposes, as the
Board shall determine.

B. Right to Terminate Directorship. This Plan shall not impose any obligations on the
Company to retain any Participant as a director nor shall it impose any obligation on the part of
any Participant to remain as a director of the Company.

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C. Trusts, etc. Nothing contained in the Plan and no action taken pursuant to the Plan
(including, without limitation, the grant of any Option or Unit thereunder) shall create or be
construed to create a trust of any kind, or a fiduciary relationship, between the Company and any
Participant or the executor, administrator or other personal representative or designated
beneficiary of such Participant, or any other persons. If and to the extent that any Participant
or such Participant’s executor, administrator or other personal representative, as the case may be,
acquires a right to receive any payment from the Company pursuant to the Plan, such right shall be
no greater than the right of an unsecured general creditor of the Company.

D. Notices. Any notice to the Company required by or in respect of this Plan will be
addressed to the Company at 3600 N.W. 82nd Street, Miami, Florida 33166-6623; Attention: General
Counsel, or such other place of business as shall become the Company’s principal executive offices
from time to time. Each Participant shall be responsible for furnishing the Committee with the
current and proper address for the mailing to such Participant of notices and the delivery to such
Participant of agreements, shares and payments. Any such notice to the Participant will, if the
Company has received notice that the Participant is then deceased, be given to the Participant’s
personal representative if such representative has previously informed the Company of his or her
status and address (and has provided such reasonable substantiating information as the Company may
request) by written notice under this Section. Any notice required by or in respect of this Plan
will be deemed to have been duly given when delivered in person or when dispatched by telecopy or,
in the case of notice to the Company, by facsimile as described above, or one business day after
having been dispatched by a nationally recognized overnight courier service or three business days
after having been mailed by United States registered or certified mail, return receipt requested,
postage prepaid. The Company assumes no responsibility or obligation to deliver any item mailed to
such address that is returned as undeliverable to the addressee and any further mailings will be
suspended until the Participant furnishes the proper address.

E. Severability of Provisions. If any provisions of the Plan shall be held invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provisions of the
Plan, and the Plan shall be construed and enforced as if such provisions had not been included.

F. Payment to Minors, Etc. Any benefit payable to or for the benefit of a minor, an
incompetent person or other person incapable of receipt thereof shall be deemed paid when paid to
such person’s guardian or to the party providing or reasonably appearing to provide for the care of
such person, and such payment shall fully discharge the Committee, the Company and their employees,
agents and representatives with respect thereto.

G. Headings and Captions. The headings and captions herein are provided for reference and
convenience only. They shall not be considered part of the Plan and shall not be employed in the
construction of the Plan.

H. Controlling Law. The Plan shall be construed and enforced according to the laws of the
State of Florida, without giving effect to rules governing the conflict of laws.

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I. Section 16(b) of the Act. All elections and transactions under the Plan by persons
subject to Section 16 of the Act involving shares of Common Stock are intended to comply with any
applicable condition under Rule 16b-3. To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void. The Committee may establish and
adopt written administrative guidelines, designed to facilitate compliance with Section 16(b) of
the Act, as it may deem necessary or proper for the administration and operation of the Plan and
the transaction of business thereunder.

J. Listing of Shares. If at any time the Board or the Committee shall determine in its
sole discretion that the listing, registration or qualification of the shares covered by the Plan
upon any national securities exchange or under any state or federal law, or the consent or approval
of any governmental regulatory body, is necessary or desirable as a condition of, or in connection
with, the grant of Options or Units or the award or sale of shares under the Plan, no Option or
Unit grant shall be effective and no shares will be delivered, as the case may be, unless and until
such listing, registration, qualification, consent or approval shall have been effected or
obtained, or otherwise provided for, free of any conditions not acceptable to the Board.

K. Withholding. The Company shall have the right to require, prior to the issuance or
delivery of any shares of Common Stock, payment by the Participant of any federal, state or local
taxes required by law to be withheld.

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EXHIBIT 10.5(c)

RYDER SYSTEM, INC.

DIRECTORS STOCK PLAN

(As amended through
May 7, 2004)

 

 

RYDER SYSTEM, INC.

DIRECTORS STOCK PLAN

SECTION I

PURPOSES OF THE PLAN

The Ryder System, Inc. Directors Stock Plan (the “Plan”) is intended to enable Ryder System, Inc.
(the “Company”) to attract and retain persons of outstanding competence to serve as members of the
Board of Directors of the Company and to provide a direct link between Directors’ compensation and
shareholder value.

SECTION II

ADMINISTRATION OF THE PLAN

A. Committee — The Plan shall be administered by the Compensation Committee of the Board of
Directors of the Company (the “Committee”), which shall consist of not less than three members of
the Board of Directors, each of whom shall be a “disinterested person” as that term is used in Rule
16b-3 under the Securities Exchange Act of 1934, as amended. Grants of stock to eligible
participants under the Plan and the amount, nature and timing of the grants shall be automatically
determined as described in Sections IV and V and shall not be subject to the determination of the
Committee.

B. Authority of the Committee — Subject to certain specific limitations and restrictions set forth
in the Plan, the Committee shall have full and final authority to interpret the Plan; to prescribe,
amend and rescind rules and regulations, if any, relating to the Plan; and to make all
determinations necessary or advisable for the administration of the Plan. No member of the
Committee shall be liable for anything done or omitted to be done by him or by any other member of
the Committee in connection with the Plan, except for his own willful misconduct or gross
negligence. All decisions which are made by the Committee with respect to interpretation of the
terms of the Plan and with respect to any questions or disputes arising under the Plan shall be
final and binding on the Company and the participants, their heirs or beneficiaries. The Committee
shall not be empowered to take any action, whether or not otherwise authorized under the Plan,
which would result in any Director failing to qualify as a “disinterested person”.

C. Acts of the Committee — A majority of the Committee will constitute a quorum and the acts of a
majority of the members present at any meeting at which a quorum is present, or acts approved in
writing by all members of the Committee without a meeting, will be the acts of the Committee.

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SECTION III

STOCK SUBJECT TO THE PLAN

A. Common Stock — The stock which is the subject of grants under the Plan shall be the Company’s
Common Stock, par value $ .50 per share (“Common Stock”), which shares shall be subject to the
terms, conditions and restrictions described in the Plan.

B. Maximum Number Of Shares That May Be Granted — There may be granted under the Plan an aggregate
of not more than one hundred thousand (100,000) shares of Common Stock, subject to adjustment as
provided in Section VII hereof. Shares of Common Stock granted pursuant to the Plan may be either
authorized, but unissued, shares or reacquired shares, or both.

C. Rights With Respect To Shares — A Director to whom a grant of Common Stock has been made shall
have absolute beneficial ownership of the shares of Common Stock granted to that Director,
including the right to vote the shares and to receive dividends thereunder; subject, however, to
the terms, conditions and restrictions described in the Plan, including, but not limited to,
Section V. The certificate(s) for such shares shall be held by the Company (or by an agent
designated by the Secretary of the Company) for the Director’s benefit until the terms, conditions
and restrictions lapse, whereupon the certificates shall be delivered to the Director.

SECTION IV

PARTICIPATION

A. Directors — Participation in the Plan shall be limited to persons who serve as members of the
Board of Directors of the Company and who, at the time of grant, are not “employees” of the Company
and/or any of its subsidiaries, within the meaning of the Employee Retirement Income Security Act
of 1974 (“ERISA”). A Director who is an employee and who retires or resigns from employment with
the Company and/or any of its subsidiaries, but remains, a Director of the Company, shall become
eligible to participate in the Plan at the time of such termination of employment.

B. Elections — Any eligible Director may elect to participate in the Plan and receive grants of
Common Stock as set out in Paragraph C of this Section IV by delivering to the Committee a written
notice to such effect. Such election shall be made on or before December 31st of the
year immediately preceding the Grant Date (as defined below) and shall remain in effect until
changed by the Director in writing. Any such change shall become effective on January
1st of the following year.

C. Grants — Each participating Director who has made an election pursuant to Paragraph B of this
Section IV shall be eligible to receive, on the first New York Stock Exchange trading day of the
year immediately following the date on which such Director made an election pursuant to Paragraph B
of this Section IV to participate in the Plan, and thereafter annually on the first New York Stock
Exchange trading day of each year (each such date referred to herein as the “Grant

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Date”) until such time as the Director changes his/her election in accordance with Paragraph B of
this Section IV, a grant of Common Stock in lieu of all or a portion (as set forth in the
Director’s written election) of the Director’s annual retainer for service as a director of the
Company. The amount of common Stock which shall be granted to a participating Director will be the
number of whole shares which can be purchased for that portion of the Director’s annual retainer
which the Director has elected to receive in Common Stock based on the Fair Market Value of the
shares on the Grant Date. Fractional shares shall not be granted. “Fair Market Value” will be the
average of the highest and lowest sale price for the Common Stock as reported on the New York Stock
Exchange Composite Transaction Reporting System on the Grant Date.

SECTION V

TERMS AND CONDITIONS OF STOCK GRANTS

A. Vesting — Each grant of Common Stock to a participating Director in accordance with the Plan
shall be vested on the six-month anniversary of the Grant Date, so long as the Director has served
continuously as a director of the Company during the intervening six-month period. In the event a
Director’s service to the Company terminates before the shares have vested, then all shares granted
to such Director which have not vested shall be cancelled and the shares forfeited and
retransferred to the Company, with the Director having no further right or interest in such
forfeited and retransferred shares.

B. Restrictions on Transfer — Shares of Common Stock granted to a participating Director may not
be assigned, (transferred, pledged, hypothecated or otherwise disposed of (i) before they have
vested in accordance with (i) Paragraph A of this Section V and (ii) until six (6) months after the
termination of the Director’s service to the Company as a director.

SECTION VI

COMPLIANCE WITH LAW AND OTHER CONDITIONS

A. Restrictions Upon Grant Of Common Stock — The listing upon the New York Stock Exchange or the
registration or qualification under any federal or state law of any shares of Common Stock to be
granted pursuant to the Plan may be necessary or desirable as a condition of, or in connection
with, such grant and, in any such event, delivery of the certificates for such shares of Common
Stock shall, if the Committee, in its sole discretion, shall determine, not be made until such
listing, registration or qualification shall have been completed.

B. Restrictions Upon Resale Of Unregistered Stock — If the issuances of the shares of Common Stock
that have been granted to a participating Director pursuant to the terms of the Plan are not
registered under the Securities Act of 1933, as amended, pursuant to an effective registration
statement, such Director, if the Committee shall deem it advisable, may be required to represent
and agree in writing.

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     (i) that any shares of Common Stock acquired by such Director pursuant to the Plan will not be
sold, except pursuant to an effective registration statement under the Securities Act of 1933, as
amended, or pursuant to an exemption from registration under such Act, and

     (ii) that such Director is acquiring such shares of Common Stock for his own account and not
with a view to the distribution thereof.

SECTION VII

ADJUSTMENTS

The number of shares of Common Stock of the Company reserved for grants under the Plan shall be
subject to appropriate adjustment by the Committee, as necessary, to reflect any stock split, stock
dividend, recapitalization, merger, consolidation, reorganization, combination or exchange of
shares or similar event.

SECTION VIII

MISCELLANEOUS PROVISIONS

A. Nothing in the Plan shall be construed to give any Director of the Company any right to a grant
of Common Stock under the Plan unless all conditions described within the Plan are met as
determined in the sole discretion of the Committee.

B. Neither the Plan, nor the granting of Common Stock nor any other action taken pursuant to the
Plan, shall constitute or be evidence of any agreement or understanding, express or implied, that
the Company will retain a Director for any period of time. Nothing in the Plan shall in any manner
be construed to limit in any way the right of the Company or its shareholders to reelect or not
reelect or renominate or not renominate a participating Director.

C. Any shares of Common Stock of the Company issued as a stock dividend, or as a result of stock
splits, combinations, exchanges of shares, reorganizations, mergers, consolidations or otherwise
with respect to shares of Common Stock granted pursuant to the Plan shall have the same status and
be subject to the same restrictions as the shares granted.

D. The costs and expenses of administering the Plan shall be borne by the Company and not charged
to any grant of Common Stock nor to any participating Director.

E. The Company may make such provisions and take such steps as it may deem necessary or appropriate
for the withholding of any taxes which the Company is required by any law or regulation of any
governmental authority, whether federal, state or local, to withhold in connection with any event
or action under the Plan.

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SECTION IX

AMENDMENT

The Committee or the Board of Directors of the Company may suspend or discontinue the Plan, or
revise or amend it in any respect whatsoever; except that, without shareholder approval, the
Committee or the Board of Directors may not (a) materially increase the benefits accruing to
participants under the Plan, (b) increase the number of shares of Common Stock available for grants
under the Plan, or (c) materially modify the requirements as to eligibility for participation in
the Plan. Additionally, should the Plan require amendment to maintain full legal compliance because
of rules, regulations, opinions or statutes issued by the SEC, the U.S. Department of the Treasury
or any other governmental or governing body, then the Committee or the Board of Directors may take
whatever action, including but not limited to amending or modifying the Plan, is necessary to
maintain such compliance. The termination or any modification or amendment of the Plan shall not,
without the consent of any participant involved, adversely affect rights under a previous grant of
Common Stock. In no event shall Plan provisions dealing with the eligibility of participants to
receive grants, the amount and price of securities to be granted, or the timing of the grants be
amended more than once every six months, other than to comport with changes in the Internal Revenue
Code, ERISA, or the rules thereunder.

SECTION X

GOVERNING LAW

The Plan and all determinations made and actions taken pursuant thereto shall be governed by the
laws of the State of Florida and construed accordingly.

SECTION XI

APPROVAL BY SHAREHOLDERS

The Plan shall become effective only upon approval by the shareholders of the Company.

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