Document:

Exhibit 10.5

 Exhibit 10.5 
  
 SECOND AMENDMENT TO 
 CARRAMERICA REALTY CORPORATION 
 1995 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN 
  
 CarrAmerica Realty Corporation, a Maryland corporation (the
“Company”), hereby certifies as follows: 
  
 1. The
Company deems it appropriate to execute this certificate to evidence adoption of an amendment to its 1995 Non-Employee Director Stock Option Plan (the “Plan”) that increased the number of options issued annually to continuing non-employee
directors under the Plan from 5,000 to 7,500 (the “Amendment”). 
  
 2. The Board of Directors of the Company authorized and approved the Amendment, subject to approval of the Company’s stockholders, and directed that the Amendment be submitted to the stockholders for approval.

  
 3. The Amendment was submitted to the stockholders for
approval at the annual meeting of stockholders of the Company held on May 6, 1999, and was approved by the stockholders. 
  
 4. Section 4.7 of the Plan therefore has been amended, effective as of May 6, 1999, and now reads as follows: 
  
 “7. GRANTS OF OPTIONS. 
  
 On the Effective Date, each Director then serving on the Board shall receive
an Option to purchase 3,000 shares of Stock. Each Director whose Commencement of Service is at any time thereafter shall be granted an Option, as of the date of the Director’s Commencement of Service, to purchase 3,000 shares of Stock.
Thereafter, subject to the availability of shares of Stock, immediately following each annual election of Directors, each Director then serving as a Director on the Board, other than a Director who is first elected to the Board at such annual
election of Directors, shall be granted an Option to purchase 7,500 shares of Stock.” 
  
 IN WITNESS WHEREOF, the Company has caused this certificate to be signed by the undersigned, a duly authorized officer of the Company, as of May 6, 1995. 
  

									
	 	 	 	 	 CarrAmerica Realty Corporation

					
	 	 	 	 	 	 	 By: 
	 	 /s/ Linda A. Madrid

	 	 	 	 	 	 	 	 	 Linda A. Madrid

	 	 	 	 	 	 	 	 	 Managing Director

					
	 Attest: 
	 	 /s/ Ann Marie Pulsch
	 	 	 	 	 	 
	 	 	 Ann Marie Pulsch
	 	 	 	 	 	 
	 	 	 Assistant SecretaryExhibit 10.6

 Exhibit 10.6 
  
 CARRAMERICA REALTY CORPORATION 
  
 1997 STOCK OPTION AND INCENTIVE PLAN 
  
 CarrAmerica Realty Corporation, a Maryland corporation (the “Company”), sets forth herein the terms of its 1997
Stock Option and Incentive Plan (the “Plan”) as follows: 
  
 1. PURPOSE 
  
 The Plan is intended to enhance the
Company’s ability to attract and retain highly qualified officers, key employees, and other persons to advance the interests of the Company by providing such persons with stronger incentives to continue to serve the Company and its affiliates
(as defined herein) and to expend maximum effort to improve the business results and earnings of the Company. The Plan is intended to accomplish this objective by providing to eligible persons an opportunity to acquire or increase a direct
proprietary interest in the operations and future success of the Company. To this end, the Plan provides for the grant of stock options, restricted stock and restricted stock units in accordance with the terms hereof. Stock options granted under the
Plan may be non-qualified stock options or incentive stock options, as provided herein. 
  
 2. DEFINITIONS 
  
 For purposes of
interpreting the Plan and related documents (including Award Agreements), the following definitions shall apply: 
  
 2.1 “affiliate” of, or person “affiliated” with, a person means any company or other trade or business that controls, is controlled by
or is under common control with such person within the meaning of Rule 405 of Regulation C under the Securities Act (as defined herein). 
  
 2.2 “Award Agreement” means the stock option agreement, restricted stock agreement, restricted stock unit agreement or other written agreement
between the Company and a Grantee that evidences and sets out the terms and conditions of a Grant. 
  
 2.3 “Benefit Arrangement” shall have the meaning set forth in Section 14 hereof. 
  
 2.4 “Board” means the Board of Directors of the Company.

  
 2.5 “Code” means the Internal Revenue Code of 1986,
as now in effect or as hereafter amended. 
  
 2.6
“Committee” means a Committee of, and designated from time to time by resolution of, the Board, which shall consist of no fewer than two members of the Board, none of whom shall be an officer or other salaried employee of the Company or
any affiliate, and each of whom shall qualify in all respects as a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act or any successor rule or regulation. Commencing on the Effective Date, and until such time
as the Board shall determine otherwise, the Committee shall be the Executive Compensation Committee of the Board. 
  
 2.7 “Company” means CarrAmerica Realty Corporation. 

 2.8 “Effective Date” means
                                        ,
1997, the date on which the Plan was adopted by the Board. 
  
 2.9
“Exchange Act” means the Securities Exchange Act of 1934, as now in effect or as hereafter amended. 
  
 2.10 “Fair Market Value” means the value of a share of Stock, determined as follows: if on the Grant Date or other determination date the Stock
is listed on an established national or regional stock exchange, is admitted to quotation on the Nasdaq National Market, or is publicly traded on an established securities market, the Fair Market Value of a share of Stock shall be the closing price
of the Stock on such exchange or in such market (the highest such closing price if there is more than one such exchange or market) on the Grant Date or such other determination date (or if there is no such reported closing price, the Fair Market
Value shall be the mean between the highest bid and lowest asked prices or between the high and low sale prices on such trading day) or, if no sale of Stock is reported for such trading day, on the next preceding day on which any sale shall have
been reported. If the Stock is not listed on such an exchange, quoted on such system or traded on such a market, Fair Market Value shall be the value of the Stock as determined by the Committee in good faith. 
  
 2.11 “Grant” means an award of an Option, Restricted Stock or
Restricted Stock Units under the Plan. 
  
 2.12 “Grant
Date” means the date as of which the Committee approves a Grant. 
  
 2.13 “Grantee” means a person who receives or holds an Option, Restricted Stock or Restricted Stock Units under the Plan. 
  
 2.14 “Incentive Stock Option” means an “incentive stock option” within the meaning of Section 422 of the Code, or the
corresponding provision of any subsequently enacted tax statute, as amended from time to time. 
  
 2.15 “Option” means an option to purchase one or more shares of Stock pursuant to the Plan. 
  
 2.16 “Option Period” means the period during which Options may be exercised as set forth in Section 11 hereof. 
  
 2.17 “Option Price” means the purchase price for each share of
Stock subject to an Option. 
  
 2.18 “Other Agreement”
shall have the meaning set forth in Section 13 hereof. 
  
 2.19 “Plan” means the CarrAmerica Realty Corporation 1997 Stock Option and Incentive Plan. 
  
 2.20 “Reporting Person” means a person who is required to file reports under Section 16(a) of the Exchange Act. 
  
 2.21 “Restricted Period” means the period during which Restricted
Stock or Restricted Stock Units are subject to restrictions or conditions pursuant to Section 12.2 hereof. 
  

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 2.22 “Restricted Stock” means shares of Stock, awarded to a Grantee pursuant to Section 12
hereof, that are subject to restrictions and to a risk of forfeiture. 
  
 2.23 “Restricted Stock Unit” means a unit awarded to a Grantee pursuant to Section 12 hereof, which represents a conditional right to receive a share of Stock in the future, and which is subject to restrictions and to a risk
of forfeiture. 
  
 2.24 “Securities Act” means the
Securities Act of 1933, as now in effect or as hereafter amended. 
  
 2.25 “Service Provider” means a consultant or adviser to the Company, a manager of the Company’s properties or affairs, or other similar service provider or affiliate of the Company, and employees of any of the foregoing, as
such persons may be designated from time to time by the Committee pursuant to Section 6 hereof. 
  
 2.26 “Stock” means the common stock, par value $0.10 per share, of the Company. 
  
 2.27 “Subsidiary” means Carr Realty, L.P., CarrAmerica Realty, L.P., CarrAmerica Realty Services, Inc.,
CarrAmerica Realty LP Holdings, Inc., CarrAmerica Realty GP Holdings, Inc. and any “subsidiary corporation” of the Company within the meaning of Section 425(f) of the Code. 
  
 2.28 “Termination Date” shall be the date upon which an Option shall terminate or expire, as set forth in
Section 11.2 hereof. 
  
 3. ADMINISTRATION OF THE PLAN

  
 3.1 General. The Plan shall be administered by the Committee.
The Board may remove members, add members, and fill vacancies on the Committee from time to time, all in accordance with the Company’s articles of incorporation and by-laws and applicable law; provided, however, that each member of the
Committee shall at all times qualify in all respects as a “non-employee director” within the meaning of Rule 16b-3 under the Exchange Act or any successor rule or regulation. Notwithstanding the foregoing, to the extent that shares of
Stock are then available for grant and issuance under the Plan, the President of the Company, acting on behalf of the Board of Directors, shall have the authority to grant to employees of or consultants to the Company options to purchase such number
of shares of Stock as determined by the Committee from time to time, at such times and on such terms as are set forth in or determined pursuant to the Plan. 
  
 3.2 Plenary Authority of the Committee. The Committee shall have such powers and authorities related to the administration of the Plan as are consistent
with the Company’s articles of incorporation and by-laws and applicable law. The Committee shall have full power and authority to take all actions and to make all determinations required or provided for under the Plan, any Grant or any Award
Agreement, and shall have full power and authority to take all such other actions and determinations not inconsistent with the specific terms and provisions of the Plan that the Committee deems to be necessary or appropriate to the administration of
the Plan, any Grant or any Award Agreement. All such actions and determinations shall be by the affirmative vote of a majority of the members of the Committee present at a meeting or by unanimous consent of the Committee executed in writing in
accordance with the Company’s articles of incorporation and by-laws and applicable law. The interpretation and construction by the Committee of any provision of the Plan, any Grant or any Award Agreement shall be final and conclusive.

  
 3.3 Grants. Subject to the other terms and conditions of the
Plan, the Committee shall have full and final authority (i) to designate Grantees, (ii) to determine the type or types of Grant to be made to a Grantee, (iii) to determine the number of shares of Stock to be subject to a Grant,
(iv) to establish the terms and conditions of each Grant (including, but not limited to, the exercise price of any Option, 

  

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the nature and duration of any restriction or condition (or provision for lapse thereof) relating to the vesting, exercise, transfer, or forfeiture of a
Grant or the shares of Stock subject thereto, and any terms or conditions that may be necessary to qualify Options as Incentive Stock Options), (v) to prescribe the form of each Award Agreement evidencing a Grant, and (vi) to amend,
modify, or supplement the terms of any outstanding Grant. Such authority specifically includes the authority, in order to effectuate the purposes of the Plan but without amending the Plan, to modify Grants to eligible individuals who are foreign
nationals or are individuals who are employed outside the United States to recognize differences in local law, tax policy, or custom. As a condition to any subsequent Grant, the Committee shall have the right, at its discretion, to require Grantees
to return to the Company Grants previously awarded under the Plan. Subject to the terms and conditions of the Plan, any such new Grant shall be upon such terms and conditions as are specified by the Committee at the time the new Grant is made.

  
 3.4 No Liability. No member of the Board or of the Committee
shall be liable for any action or determination made in good faith with respect to the Plan or any Grant or Award Agreement. 
  
 3.5 Applicability of Rule 16b-3. Those provisions of the Plan that make express reference to Rule 16b-3 under the Exchange Act shall apply only to
Reporting Persons. 
  
 4. STOCK SUBJECT TO THE PLAN 
  
 Subject to adjustment as provided in Section 16 hereof, the number of
shares of Stock available for issuance under the Plan shall be 3,000,000. Stock issued or to be issued under the Plan shall be authorized but unissued shares. If any shares covered by a Grant are not purchased or are forfeited, or if a Grant
otherwise terminates without delivery of any Stock subject thereto, then the number of shares of Stock counted against the aggregate number of shares available under the Plan with respect to such Grant shall, to the extent of any such forfeiture or
termination, again be available for making Grants under the Plan. 
  
 5. EFFECTIVE DATE AND TERM OF THE PLAN 
  
 5.1 Effective
Date. The Plan shall be effective as of the Effective Date, subject to approval of the Plan within one year of the Effective Date, by a majority of the votes cast on the proposal at a meeting of shareholders, provided that the total votes cast
represent a majority of all shares entitled to vote. Upon approval of the Plan by the shareholders of the Company as set forth above, all Grants made under the Plan on or after the Effective Date shall be fully effective as if the shareholders of
the Company had approved the Plan on the Effective Date. If the shareholders fail to approve the Plan within one year after the Effective Date, any Grants made hereunder shall be null and void and of no effect. 
  
 5.2 Term. The Plan has no termination date; however, no Incentive Stock
Option may be granted on or after the tenth anniversary of the Effective Date. 
  
 6. OPTION GRANTS 
  
 6.1 Company
or Subsidiary Employees. Grants (including Grants of Incentive Stock Options) may be made under the Plan to any employee of the Company or of any Subsidiary, including any such employee who is an officer or director of the Company or of any
Subsidiary, as the Committee shall determine and designate from time to time. 
  
 6.2 Successive Grants. An eligible person may receive more than one Grant, subject to such restrictions as are provided herein. 
  

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 7. LIMITATIONS ON GRANTS 
  
 7.1 Limitation on Shares of Stock Subject to Grants. The maximum number of shares of Stock subject to Options that can be
awarded under the Plan to any person eligible for a Grant under Section 6 hereof is 500,000 per year. The maximum number of shares of Restricted Stock that can be awarded under the Plan (including for this purpose any shares of Stock
represented by Restricted Stock Units) to any person eligible for a Grant under Section 6 hereof is 500,000 per year. 
  
 7.2 Limitations on Incentive Stock Options. An Option shall constitute an Incentive Stock Option only (i) if the Grantee of such Option is an
employee of the Company or any Subsidiary of the Company; (ii) to the extent specifically provided in the related Award Agreement; and (iii) to the extent that the aggregate Fair Market Value (determined at the time the Option is granted)
of the shares of Stock with respect to which all Incentive Stock Options held by such Grantee become exercisable for the first time during any calendar year (under the Plan and all other plans of the Grantee’s employer and its affiliates) does
not exceed $100,000. This limitation shall be applied by taking Options into account in the order in which they were granted. 
  
 8. AWARD AGREEMENT 
  
 Each Grant pursuant to the Plan shall be evidenced by an Award Agreement, to be executed by the Company and by the Grantee, in such form or forms as the
Committee shall from time to time determine. Award Agreements granted from time to time or at the same time need not contain similar provisions but shall be consistent with the terms of the Plan. Each Award Agreement evidencing a Grant of Options
shall specify whether such Options are intended to be non-qualified stock options or Incentive Stock Options. 
  
 9. OPTION PRICE 
  
 The Option Price of each Option shall be fixed by the Committee and stated in the Award Agreement evidencing such Option. The Option Price shall be the
aggregate Fair Market Value on the Grant Date of the shares of Stock subject to the Option or such other price as the Committee, in its discretion, shall determine; provided, however, that in the event that a Grantee would otherwise be ineligible to
receive an Incentive Stock Option by reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent of the Company’s outstanding Stock), the Option Price of an Option granted to such
Grantee that is intended to be an Incentive Stock Option shall be not less than the greater of the par value of a share of Stock or 110 percent of the Fair Market Value of a share of Stock on the Grant Date. In no case shall the Option Price of any
Option be less than the par value of a share of Stock. 
  
 10.
VESTING, TERM AND EXERCISE OF OPTIONS 
  
 10.1 Vesting and Option
Period. Subject to Section 10.2 hereof, each Option granted under the Plan shall become exercisable at such times and under such conditions as shall be determined by the Committee and stated in the Award Agreement. For purposes of this
Section 10.1, fractional numbers of shares of Stock subject to an Option shall be rounded down to the next nearest whole number. The period during which any Option shall be exercisable shall constitute the “Option Period” with respect
to such Option. 
  
 10.2 Term. Each Option granted under the Plan
shall terminate, and all rights to purchase shares of Stock thereunder shall cease, upon the expiration of ten years from the date such Option is granted, or under such circumstances and on such date prior thereto as is set forth in the Plan or as
may be fixed by the Committee and stated in the Award Agreement relating to such Option (the “Termination Date”); provided, however, that in the event that the Grantee would otherwise be ineligible to receive an Incentive Stock Option by
reason of the provisions of Sections 422(b)(6) and 424(d) of the Code (relating to ownership of more than ten percent of the outstanding Stock), an Option 

  

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granted to such Grantee that is intended to be an Incentive Stock Option shall not be exercisable after the expiration of five years from its Grant Date.

  
 10.3 Acceleration. Any limitation on the exercise of an Option
contained in any Award Agreement may be rescinded, modified or waived by the Committee, in its sole discretion, at any time and from time to time after the Grant Date of such Option, so as to accelerate the time at which the Option may be exercised.
Notwithstanding any other provision of the Plan, no Option shall be exercisable in whole or in part prior to the date the Plan is approved by the shareholders of the Company as provided in Section 5.1 hereof. 
  
 10.4 Termination of Employment or Other Relationship. Upon the termination of
a Grantee’s employment with the Company other than by reason of death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), any Option or portion thereof held by such Grantee that has not
vested in accordance with the provisions of Section 10.1 hereof shall terminate immediately, and any Option or portion thereof that has vested in accordance with the provisions of Section 10.1 hereof but has not been exercised shall
terminate at the close of business on the 365th day following the Grantee’s termination of employment, unless the Committee, in its discretion, extends the period during which the Option may be exercised (which period may not be extended beyond
the original term of the Option). Upon termination of an Option or portion thereof, the Grantee shall have no further right to purchase shares of Stock pursuant to such Option or portion thereof. Whether a leave of absence or leave on military or
government service shall constitute a termination of employment for purposes of the Plan shall be determined by the Committee, which determination shall be final and conclusive. For purposes of the Plan, a termination of employment, service or other
relationship shall not be deemed to occur if the Grantee is immediately thereafter a director of the Company. 
  
 10.5 Rights in the Event of Death. If a Grantee dies while employed by the Company, all Options granted to such Grantee shall fully vest on the date of
death, and the executors or administrators or legatees or distributees of such Grantee’s estate shall have the right, at any time within one year after the date of such Grantee’s death (or such longer period as the Committee, in its
discretion, may determine prior to the expiration of such one-year period) and prior to termination of the Option pursuant to Section 10.2 above, to exercise any Option held by such Grantee at the date of such Grantee’s death. 

 
 10.6 Rights in the Event of Disability. If a Grantee terminates employment
with the Company by reason of the “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) of such Grantee, such Grantee’s Options shall continue to vest, and shall be exercisable to the extent that
they are vested, for a period of one year after such termination of employment or service (or such longer period as the Committee, in its discretion, may determine prior to the expiration of such one-year period), subject to earlier termination of
the Option as provided in Section 10.2 above. Whether a termination of employment or service is to be considered by reason of “permanent and total disability” for purposes of the Plan shall be determined by the Committee, which
determination shall be final and conclusive. 
  
 10.7 Limitations
on Exercise of Option. Notwithstanding any other provision of the Plan, in no event may any Option be exercised, in whole or in part, prior to the date the Plan is approved by the shareholders of the Company as provided herein, or after ten years
following the date upon which the Option is granted, or after the occurrence of an event referred to in Section 16 hereof which results in termination of the Option. 
  
 10.8 Method of Exercise. An Option that is exercisable may be exercised by the Grantee’s delivery to the Company of
written notice of exercise on any business day, at the Company’s principal office, addressed to the attention of the Committee. Such notice shall specify the number of shares of Stock with respect to which the Option is being exercised and
shall be accompanied by payment in full 

  

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of the Option Price of the shares for which the Option is being exercised. The minimum number of shares of Stock with respect to which an Option may be
exercised, in whole or in part, at any time shall be the lesser of (i) 100 shares or such lesser number set forth in the applicable Award Agreement and (ii) the maximum number of shares available for purchase under the Option at the time
of exercise. Payment of the Option Price for the shares purchased pursuant to the exercise of an Option shall be made (i) in cash or in cash equivalents; (ii) through the tender to the Company of shares of Stock, which shares shall be valued,
for purposes of determining the extent to which the Option Price has been paid thereby, at their Fair Market Value on the date of exercise; or (iii) by a combination of the methods described in (i) and (ii). The Committee may provide, by
inclusion of appropriate language in an Award Agreement, that payment in full of the Option Price need not accompany the written notice of exercise provided that the notice of exercise directs that the certificate or certificates for the shares of
Stock for which the Option is exercised be delivered to a licensed broker acceptable to the Company as the agent for the individual exercising the Option and, at the time such certificate or certificates are delivered, the broker tenders to the
Company cash (or cash equivalents acceptable to the Company) equal to the Option Price for the shares of Stock purchased pursuant to the exercise of the Option plus the amount (if any) of federal and/or other taxes which the Company may in its
judgment, be required to withhold with respect to the exercise of the Option. An attempt to exercise any Option granted hereunder other than as set forth above shall be invalid and of no force and effect. Unless otherwise stated in the applicable
Award Agreement, an individual holding or exercising an Option shall have none of the rights of a shareholder (for example, the right to receive cash or dividend payments or distributions attributable to the subject shares of Stock or to direct the
voting of the subject shares of Stock) until the shares of Stock covered thereby are fully paid and issued to him. Except as provided in Section 16 hereof, no adjustment shall be made for dividends, distributions or other rights for which the
record date is prior to the date of such issuance. 
  
 10.9
Delivery of Stock Certificates. Promptly after the exercise of an Option by a Grantee and the payment in full of the Option Price, such Grantee shall be entitled to the issuance of a stock certificate or certificates evidencing his or her ownership
of the shares of Stock subject to the Option. 
  
 11.
TRANSFERABILITY OF OPTIONS 
  
 Each Option granted pursuant to
this Plan shall, during a Grantee’s lifetime, be exercisable only by the Grantee or his or her permitted transferees, and neither the Option nor any right thereunder shall be transferable by the Grantee, by operation of law or otherwise, other
than as may be provided in the Award Agreement evidencing such Option or as may be provided by will or the laws of descent and distribution. Except as may be provided in the Award Agreement evidencing an Option, no Option shall be pledged or
hypothecated (by operation of law or otherwise) or subject to execution, attachment or similar processes. 
  
 12. RESTRICTED STOCK 
  
 12.1 Grant of Restricted Stock or Restricted Stock Units. The Committee may from time to time grant Restricted Stock or Restricted Stock Units to persons
eligible to receive Grants under Section 6 hereof, subject to such restrictions, conditions and other terms as the Committee may determine. 
  
 12.2 Restrictions. At the time a Grant of Restricted Stock or Restricted Stock Units is made, the Committee shall establish a period of time (the
“Restricted Period”) applicable to such Restricted Stock or Restricted Stock Units. Each Grant of Restricted Stock or Restricted Stock Units may be subject to a different Restricted Period. The Committee may, in its sole discretion, at the
time a Grant of Restricted Stock or Restricted Stock Units is made, prescribe restrictions in addition to or other than the expiration of the Restricted Period, including the satisfaction of corporate or individual performance objectives, which may
be applicable to all or any portion of the Restricted Stock or Restricted Stock Units. Such performance objectives shall be established in writing by the Committee prior to the 

  

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ninetieth day of the year in which the Grant is made and while the outcome is substantially uncertain. Performance objectives shall be based on Stock price,
market share, sales, earnings per share, return on equity or costs. Performance objectives may include positive results, maintaining the status quo or limiting economic losses. Subject to the second sentence of this Section 12.2, the Committee
also may, in its sole discretion, shorten or terminate the Restricted Period or waive any other restrictions applicable to all or a portion of the Restricted Stock or Restricted Stock Units. Neither Restricted Stock nor Restricted Stock Units may be
sold, transferred, assigned, pledged or otherwise encumbered or disposed of during the Restricted Period or prior to the satisfaction of any other restrictions prescribed by the Committee with respect to such Restricted Stock or Restricted Stock
Units. 
  
 12.3 Restricted Stock Certificates. The Company shall
issue, in the name of each Grantee to whom Restricted Stock has been granted, stock certificates representing the total number of shares of Restricted Stock granted to the Grantee, as soon as reasonably practicable after the Grant Date. The
Secretary of the Company shall hold such certificates for the Grantee’s benefit until such time as the Restricted Stock is forfeited to the Company, or the restrictions lapse. 
  
 12.4 Rights of Holders of Restricted Stock. Unless the Committee otherwise provides in an Award Agreement, holders of
Restricted Stock shall have the right to vote such Stock and the right to receive any dividends declared or paid with respect to such Stock. The Committee may provide that any dividends paid on Restricted Stock must be reinvested in shares of Stock,
which may or may not be subject to the same vesting conditions and restrictions applicable to such Restricted Stock. All distributions, if any, received by a Grantee with respect to Restricted Stock as a result of any stock split, stock dividend,
combination of shares, or other similar transaction shall be subject to the restrictions applicable to the original Grant. 
  
 12.5 Rights of Holders of Restricted Stock Units. Unless the Committee otherwise provides in an Award Agreement, holders of Restricted Stock Units shall
have no rights as stockholders of the Company. The Committee may provide in an Award Agreement evidencing a Grant of Restricted Stock Units that the holder of such Restricted Stock Units shall be entitled to receive, upon the Company’s payment
of a cash dividend on its outstanding Stock, a cash payment for each Restricted Stock Unit held equal to the per-share dividend paid on the Stock. Such Award Agreement may also provide that such cash payment will be deemed reinvested in additional
Restricted Stock Units at a price per unit equal to the Fair Market Value of a share of Stock on the date that such dividend is paid. 
  
 12.6 Termination of Employment. Upon the termination of a Grantee’s employment with the Company other than by reason of death or “permanent and
total disability” (within the meaning of Section 22(e)(3) of the Code), any Restricted Stock or Restricted Stock Units held by such Grantee that has not vested, or with respect to which all applicable restrictions and conditions have not
lapsed, shall immediately be deemed forfeited, unless the Committee, in its discretion, determines otherwise. Upon forfeiture of Restricted Stock or Restricted Stock Units, the Grantee shall have no further rights with respect to such Grant,
including but not limited to any right to vote Restricted Stock or any right to receive dividends with respect to shares of Restricted Stock or Restricted Stock Units. Whether a leave of absence or leave on military or government service shall
constitute a termination of employment for purposes of the Plan shall be determined by the Committee, which determination shall be final and conclusive. For purposes of the Plan, a termination of employment, service or other relationship shall not
be deemed to occur if the Grantee is immediately thereafter a director of the Company. 
  
 12.7 Rights in the Event of Death. If a Grantee dies while employed by the Company, all Restricted Stock or Restricted Stock Units granted to such Grantee shall fully vest on the date of death, and the shares of Stock
represented thereby shall be deliverable in accordance with the terms of the Plan to the executors, administrators, legatees or distributees of the Grantee’s estate. 
  
 12.8 Rights in the Event of Disability. If a Grantee terminates employment with the Company by reason of the “permanent
and total disability” (within the meaning of Section 22(e)(3) of 

  

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the Code) of such Grantee, such Grantee’s Restricted Stock or Restricted Stock Units shall continue to vest in accordance with the applicable Award
Agreement for a period of one year after such termination of employment or service (or such longer period as the Committee, in its discretion, may determine prior to the expiration of such one-year period), subject to the earlier forfeiture of such
Restricted Stock or Restricted Stock Units in accordance with the terms of the applicable Award Agreement. Whether a termination of employment or service is to be considered by reason of “permanent and total disability” for purposes of the
Plan shall be determined by the Committee, which determination shall be final and conclusive. 
  
 12.9 Delivery of Stock and Payment Therefor. Upon the expiration or termination of the Restricted Period and the satisfaction of any other conditions prescribed by the Committee, the restrictions applicable to shares
of Restricted Stock or Restricted Stock Units shall lapse, and, upon payment by the Grantee to the Company, in cash or by check, of the aggregate par value of the shares of Stock represented by such Restricted Stock or Restricted Stock Units, a
stock certificate for such shares shall be delivered, free of all such restrictions, to the Grantee or the Grantee’s beneficiary or estate, as the case may be. 
  
 13. PARACHUTE LIMITATIONS 
  
 Notwithstanding any other provision of this Plan or of any other agreement, contract, or understanding heretofore or hereafter entered into by a Grantee
with the Company or any Subsidiary, except an agreement, contract, or understanding hereafter entered into that expressly modifies or excludes application of this paragraph (an “Other Agreement”), and notwithstanding any formal or informal
plan or other arrangement for the direct or indirect provision of compensation to the Grantee (including groups or classes of participants or beneficiaries of which the Grantee is a member), whether or not such compensation is deferred, is in cash,
or is in the form of a benefit to or for the Grantee (a “Benefit Arrangement”), if the Grantee is a “disqualified individual,” as defined in Section 280G(c) of the Code, any Option, Restricted Stock or Restricted Stock Unit
held by that Grantee and any right to receive any payment or other benefit under this Plan shall not become exercisable or vested (i) to the extent that such right to exercise, vesting, payment, or benefit, taking into account all other rights,
payments, or benefits to or for the Grantee under this Plan, all Other Agreements, and all Benefit Arrangements, would cause any payment or benefit to the Grantee under this Plan to be considered a “parachute payment” within the meaning of
Section 280G(b)(2) of the Code as then in effect (a “Parachute Payment”) and (ii) if, as a result of receiving a Parachute Payment, the aggregate after-tax amounts received by the Grantee from the Company under this Plan, all
Other Agreements, and all Benefit Arrangements would be less than the maximum after-tax amount that could be received by the Grantee without causing any such payment or benefit to be considered a Parachute Payment. In the event that the receipt of
any such right to exercise, vesting, payment, or benefit under this Plan, in conjunction with all other rights, payments, or benefits to or for the Grantee under any Other Agreement or any Benefit Arrangement would cause the Grantee to be considered
to have received a Parachute Payment under this Plan that would have the effect of decreasing the after-tax amount received by the Grantee as described in clause (ii) of the preceding sentence, then the Grantee shall have the right, in the
Grantee’s sole discretion, to designate those rights, payments, or benefits under this Plan, any Other Agreements, and any Benefit Arrangements that should be reduced or eliminated so as to avoid having the payment or benefit to the Grantee
under this Plan be deemed to be a Parachute Payment. 
  
 14.
REQUIREMENTS OF LAW 
  
 14.1 General. The Company shall not be
required to sell or issue any shares of Stock under any Grant if the sale or issuance of such shares would constitute a violation by the Grantee, any other individual exercising an Option, or the Company of any provision of any law or regulation of
any governmental authority, including without limitation any federal or state securities laws or regulations. If at any time the Company shall determine, in its discretion, that the listing, registration or 

  

 9 

 
qualification of any shares subject to a Grant upon any securities exchange or under any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the issuance or purchase of shares hereunder, no shares of Stock may be issued or sold to the Grantee or any other individual exercising an Option pursuant to such Grant unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company, and any delay caused thereby shall in no way affect the date of termination of the Grant. Specifically, in connection with
the Securities Act, upon the exercise of any Option or the delivery of any shares of Restricted Stock or Stock underlying Restricted Stock Units, unless a registration statement under such Act is in effect with respect to the shares of Stock covered
by such Grant, the Company shall not be required to sell or issue such shares unless the Committee has received evidence satisfactory to it that the Grantee or any other individual exercising an Option may acquire such shares pursuant to an
exemption from registration under the Securities Act. Any determination in this connection by the Committee shall be final, binding, and conclusive. The Company may, but shall in no event be obligated to, register any securities covered hereby
pursuant to the Securities Act. The Company shall not be obligated to take any affirmative action in order to cause the exercise of an Option or the issuance of shares of Stock pursuant to the Plan to comply with any law or regulation of any
governmental authority. As to any jurisdiction that expressly imposes the requirement that an Option shall not be exercisable until the shares of Stock covered by such Option are registered or are exempt from registration, the exercise of such
Option (under circumstances in which the laws of such jurisdiction apply) shall be deemed conditioned upon the effectiveness of such registration or the availability of such an exemption. 
  
 14.2 Rule 16b-3. It is the intent of the Company that Grants pursuant to the Plan and the exercise of Options granted
hereunder will qualify for the exemption provided by Rule 16b-3 under the Exchange Act. To the extent that any provision of the Plan or action by the Committee does not comply with the requirements of Rule 16b-3, it shall be deemed inoperative to
the extent permitted by law and deemed advisable by the Committee, and shall not affect the validity of the Plan. In the event that Rule 16b-3 is revised or replaced, the Board may exercise its discretion to modify this Plan in any respect necessary
to satisfy the requirements of, or to take advantage of any features of, the revised exemption or its replacement. 
  
 15. AMENDMENT AND TERMINATION OF THE PLAN 
  
 The Board may, at any time and from time to time, amend, suspend, or terminate the Plan as to any shares of Stock as to which Grants have not been made;
provided, however, that the Board shall not, without approval of the Company’s shareholders, amend the Plan such that it does not comply with the Code. The Company may retain the right in an Award Agreement to cause a forfeiture of the gain
realized by a Grantee on account of the Grantee taking actions in “competition with the Company,” as defined in the applicable Award Agreement. Furthermore, the Company may annul a Grant if the Grantee is an employee of the Company or an
affiliate and is terminated “for cause” as defined in the applicable Award Agreement. Except as permitted under this Section 15 or Section 16 hereof, no amendment, suspension, or termination of the Plan shall, without the consent
of the Grantee, alter or impair rights or obligations under any Grant theretofore awarded under the Plan. 
  

 10 

 16. EFFECT OF CHANGES IN CAPITALIZATION 
  
 16.1 Changes in Stock. If the number of outstanding shares of Stock is increased or decreased or the shares of Stock are
changed into or exchanged for a different number or kind of shares or other securities of the Company on account of any recapitalization, reclassification, stock split, reverse split, combination of shares, exchange of shares, stock dividend or
other distribution payable in capital stock, or other increase or decrease in such shares effected without receipt of consideration by the Company occurring after the Effective Date, the number and kinds of shares for which Grants of Options,
Restricted Stock and Restricted Stock Units may be made under the Plan shall be adjusted proportionately and accordingly by the Company. In addition, the number and kind of shares for which Grants are outstanding shall be adjusted proportionately
and accordingly so that the proportionate interest of the Grantee immediately following such event shall, to the extent practicable, be the same as immediately before such event. Any such adjustment in outstanding Options shall not change the
aggregate Option Price payable with respect to shares that are subject to the unexercised portion of an Option outstanding but shall include a corresponding proportionate adjustment in the Option Price per share. 
  
 16.2 Reorganization in Which the Company Is the Surviving Entity and in Which
No Change of Control Occurs. Subject to Section 16.3 hereof, if the Company shall be the surviving entity in any reorganization, merger, or consolidation of the Company with one or more other entities, any Option theretofore granted pursuant to
the Plan shall pertain to and apply to the securities to which a holder of the number of shares of Stock subject to such Option would have been entitled immediately following such reorganization, merger, or consolidation, with a corresponding
proportionate adjustment of the Option Price per share so that the aggregate Option Price thereafter shall be the same as the aggregate Option Price of the shares remaining subject to the Option immediately prior to such reorganization, merger, or
consolidation. Subject to any contrary language in an Award Agreement evidencing a Grant of Restricted Stock, any restrictions applicable to such Restricted Stock shall apply as well to any replacement shares received by the Grantee as a result of
the reorganization, merger or consolidation. 
  
 16.3
Reorganization, Sale of Assets or Sale of Stock Which Involves a Change of Control. Upon the dissolution or liquidation of the Company or upon a merger, consolidation, or reorganization of the Company with one or more other entities in which the
Company is not the surviving entity, or upon a sale of substantially all of the assets of the Company to another entity, or upon any transaction (including, without limitation, a merger or reorganization in which the Company is the surviving entity)
approved by the Board that results in any person or entity (or person or entities acting as a group or otherwise in concert, owning [fifty percent] or more of the combined voting power of all classes of securities of the Company, (i) all
outstanding shares of Restricted Stock and Restricted Stock Units shall be deemed to have vested, and all restrictions and conditions applicable to such shares of Restricted Stock and Restricted Stock Units shall be deemed to have lapsed,
immediately prior to the occurrence of such event, and (ii) all Options outstanding hereunder shall become immediately exercisable for a period of fifteen days immediately prior to the scheduled consummation of the event. Any exercise of an
Option during such fifteen-day period shall be conditioned upon the consummation of the event and shall be effective only immediately before the consummation of the event. Upon consummation of any such event, the Plan and all outstanding but
unexercised Options shall terminate, except to the extent provision is made in writing in connection with such transaction for the continuation of the Plan or the assumption of such Options theretofore granted, or for the substitution for such
Options of new options covering the stock of a successor Company, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kinds of shares or units and exercise prices, in which event the Plan and Options theretofore
granted shall continue in the manner and under the terms so provided. The Committee shall send written notice of an event that will result in such a termination to all individuals who hold Options not later than the time at which the Company gives
notice thereof to its shareholders. 
  

 11 

 16.4 Adjustments. Adjustments under this Section 16 related to shares of Stock or securities of the
Company shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. No fractional shares or other securities shall be issued pursuant to any such adjustment, and any fractions resulting from any such
adjustment shall be eliminated in each case by rounding downward to the nearest whole share. 
  
 16.5 No Limitations on Company. The making of Grants pursuant to the Plan shall not affect or limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations, or changes of
its capital or business structure or to merge, consolidate, dissolve, or liquidate, or to sell or transfer all or any part of its business or assets. 
  
 17. DISCLAIMER OF RIGHTS 
  
 No provision in the Plan or in any Grant or Award Agreement shall be construed to confer upon any individual the right to remain in the employ or service
of the Company or any affiliate, or to interfere in any way with any contractual or other right or authority of the Company either to increase or decrease the compensation or other payments to any individual at any time, or to terminate any
employment or other relationship between any individual and the Company. In addition, notwithstanding anything contained in the Plan to the contrary, unless otherwise stated in the applicable Award Agreement, no Grant awarded under the Plan shall be
affected by any change of duties or position of the Optionee, so long as such Grantee continues to be a director, officer, consultant or employee of the Company. The obligation of the Company to pay any benefits pursuant to this Plan shall be
interpreted as a contractual obligation to pay only those amounts described herein, in the manner and under the conditions prescribed herein. The Plan shall in no way be interpreted to require the Company to transfer any amounts to a third party
trustee or otherwise hold any amounts in trust or escrow for payment to any participant or beneficiary under the terms of the Plan. No Grantee shall have any of the rights of a shareholder with respect to the shares of Stock subject to an Option
except to the extent the certificates for such shares of Stock shall have been issued upon the exercise of the Option. 
  
 18. NONEXCLUSIVITY OF THE PLAN 
  
 Neither the adoption of the Plan nor the submission of the Plan to the shareholders of the Company for approval shall be construed as creating any
limitations upon the right and authority of the Board to adopt such other incentive compensation arrangements (which arrangements may be applicable either generally to a class or classes of individuals or specifically to a particular individual or
particular individuals) as the Board in its discretion determines desirable, including, without limitation, the granting of stock options otherwise than under the Plan. 
  
 19. WITHHOLDING TAXES 
  
 The Company or a Subsidiary, as the case may be, shall have the right to deduct from payments of any kind otherwise due to a Grantee any Federal, state,
or local taxes of any kind required by law to be withheld with respect to the vesting of or other lapse of restrictions applicable to Restricted Stock or Restricted Stock Units or upon the issuance of any shares of Stock upon the exercise of an
Option. At the time of such vesting, lapse, or exercise, the Grantee shall pay to the Company or the Subsidiary, as the case may be, any amount that the Company or the Subsidiary may reasonably determine to be necessary to satisfy such withholding
obligation. Subject to the prior approval of the Company or the Subsidiary, which may be withheld by the Company or the Subsidiary, as the case may be, in its sole discretion, the Grantee may elect to satisfy such obligations, in whole or in part,
(i) by causing the Company or the Subsidiary to withhold shares of Stock otherwise issuable to the Grantee or (ii) by delivering to the Company or the Subsidiary shares of Stock already owned by the Grantee. The shares of Stock so delivered or
withheld shall have an aggregate Fair Market Value equal to such withholding obligations. The Fair Market Value of the shares of Stock used to satisfy such withholding obligation 

  

 12 

 
shall be determined by the Company or the Subsidiary as of the date that the amount of tax to be withheld is to be determined. A Grantee who has made an
election pursuant to this Section 19 may satisfy his or her withholding obligation only with shares of Stock that are not subject to any repurchase, forfeiture, unfulfilled vesting, or other similar requirements. 
  
 20. CAPTIONS 
  
 The use of captions in this Plan or any Award Agreement is for the convenience of reference only and shall not affect the
meaning of any provision of the Plan or such Award Agreement. 
  
 21. OTHER PROVISIONS 
  
 Each Grant awarded under the
Plan may contain such other terms and conditions not inconsistent with the Plan as may be determined by the Committee, in its sole discretion. 
  
 22. NUMBER AND GENDER 
  
 With respect to words used in this Plan, the singular form shall include the plural form, the masculine gender shall include the feminine gender, etc., as
the context requires. 
  
 23. SEVERABILITY 
  
 If any provision of the Plan or any Award Agreement shall be determined to be
illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other jurisdiction.

  
 24. GOVERNING LAW 
  
 The validity and construction of this Plan and the instruments evidencing the
Grants awarded hereunder shall be governed by the laws of the State of Maryland. 
  
 * * * 
  
 The Plan was duly
adopted and approved by the Board of Directors of the Company as of the              day of
                            , 1997. 
  

	
	
	 /S/

	 [Name]

	 [Title]

  
 The Plan was
duly approved by the shareholders of the Company on the              day of
                            , 1997. 
  

	
	
	 /S/

	 [Name]

	 [Title]

  

 13

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