Document:

Sixth Amendment Extension Agreement dated February 11, 2011

 Exhibit 10.35 
 American Enterprise Park 
 Morris Plains, New Jersey 

Immunomedics, Inc. 
 SIXTH AMENDMENT 
 Extension Agreement 

This Sixth Amendment to Lease made as of this 11th day of February, 2011 between WU/LH 300 American L.L.C., a Delaware limited
liability company, having an office at c/o Lighthouse Real Estate Management, 60 Hempstead Avenue, Suite 718, West Hempstead, New York, 11552 (“Lessor”) and Immunomedics, Inc., having an office at 300 American Road, Morris Plains,
New Jersey 07950 (“Lessee”). 
 WITNESSETH: 
 WHEREAS, Lessor, as successor-in-interest to Baker Properties Limited Partnership, and Lessee, previously entered into a Lease Agreement dated January 16, 1992; which was amended by a First
Addendum dated May 5, 1993, a Second Addendum dated March 29, 1995, a Letter Amendment dated October 5, 1998, a Fourth Addendum dated August 15, 2001 and a Fifth Amendment dated as of June 18, 2009, collectively referred to
as the “Lease”; and 
 WHEREAS, Lessee now desires to extend the term demised in the Lease from
October 31, 2021 to October 31, 2031, upon all of the applicable executory terms, covenants and conditions contained in the Lease, as modified pursuant to the provisions of this Agreement, and Lessor is willing to extend the term demised
in the Lease on the terms set forth in and subject to the provisions of this Agreement; and 
 NOW THEREFORE, in
consideration of the mutual covenants herein set forth and for good and valuable consideration, the parties hereby agree to amend the Lease as follows: 
 1. All capitalized words used herein are as defined in the Lease, if not defined herein. 
 2. The term demised in the Lease is hereby extended upon all of the applicable executory terms, covenants and conditions of the Lease including, but not limited to, the provisions of Section 3(b) and
Article 12 thereof, except as the Lease is amended by this Agreement, for an additional period (referred to as the “Extension Period”) of ten (10) years commencing on November 1, 2021 (the “Extension Commencement
Date”) and ending on October 31, 2031, unless sooner terminated pursuant to any of the provisions of the Lease or pursuant to law. Said date, October 31, 2031, shall hereafter be deemed to be the Expiration Date. 

3. With respect to the leasing of the Demised Premises during the Extension Period, the Basic Rent shall be equal to
(x) with respect to the period from November 1, 2021 through and including October 31, 2026, the sum of $1,043,814.90 per annum ($86,984.58 per month), and (y) with respect to the remainder of the Extension Period, commencing on
November 1, 2026 and on each November 1st
thereafter occurring during the Extension Period, the Basic Rent for the one year period commencing on such date of November 1st shall be an amount equal to the Basic Rent for the immediately preceding one year period increased by the percentage
change in the 

  
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“Consumer Price Index” in effect for the immediately preceding November 1st. As used herein, “Consumer Price Index” shall mean the Consumer Price Index For All Urban Consumers All
Items, United States (CPI-U) (1985-87 = 100) seasonally adjusted as published by the United States Department of Labor, Bureau of Labor Statistics, or any replacement thereof. If the manner in which the Consumer Price Index is determined by the
Department of Labor shall be substantially revised, an adjustment shall be made in such revised index which would have obtained if the Consumer Price Index had not been so revised. If the current yearly average shall no longer be used as an index of
100, such change shall constitute a substantial revision. If the Consumer Price Index shall become unavailable to the public because publication is discontinued, or otherwise. Landlord will substitute therefor a comparable index based upon changes
in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall then be available, a comparable index published by a major bank or other financial institution or by a university
or a recognized financial publication shall be substituted. 
 4. A. Lessee shall accept the Demised Premises in its “As
Is” condition on the Extension Commencement Date and Lessor shall have no obligation to perform any work or make any installations in order to prepare the Demised Premises for Lessee’s continued occupancy, except that, promptly following
the execution and unconditional delivery of this Agreement, Lessor shall cause the following work to be performed in the Additional Space (as such term is defined in the Fifth Amendment), which work is more particularly described on the plans
prepared by RS Granoff and dated November 12, 2010, which have been reviewed and approved by Lessor and Lessee (such plans, the “Extension Work Plans” and such work, as shown on such plans, is referred to herein as
“Lessor’s Extension Work”): 
  

	 	a.	Install carpeting in the carpeted areas of the Additional Space, with it understood that the color and type of such carpeting is designated on the Extension Work Plans;

  

	 	b.	Paint the walls of the Additional Space in Building standard colors selected by Lessee and designated on the Extension Work Plans; 

 

	 	c.	Perform work necessary to enlarge the existing restrooms serving the Additional Space as more particularly shown on the Extension Work Plans; and

  

	 	d.	Construct necessary demising walls as more particularly shown on the Extension Work Plans. 

B. Lessor’s Extension Work shall employ Building-standard materials and finishes and shall be equal to standards
adopted by Lessor for the Building and shall constitute a single, non-recurring obligation on the part of Lessor. In the event the Lease is renewed or extended for a further term by agreement or operation of law, Lessor’s obligation to perform
such work shall not apply to such renewal or extension. Lessor may enter the Demised Premises to perform Lessor’s Extension Work and any so-called “punch-list” items in connection therewith, and entry by Lessor, its agents, servants,
employees or contractors for such purpose shall not constitute an actual or constructive eviction, in whole or in part, or entitle Lessee to any abatement or diminution of rent, or relieve Lessee from any of its obligations under the Lease, or
impose any liability upon Lessor, or its agents, by reason of inconvenience or annoyance to Lessee, or injury to, or interruption of Lessee’s business or otherwise. Lessor agrees, however, to perform said work with reasonable diligence without
any obligation, however, to employ contractors or labor at overtime or other premium pay rates. 

  
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 C. Except as expressly set forth to the contrary in this Paragraph C, Lessor
shall perform Lessor’s Extension Work at Lessor’s sole cost and expense. The parties agree that Lessee shall be obligated to reimburse Lessor for the cost incurred by Lessor in performing items b and d of Lessor’s Extension Work in an
amount equal $117,694.00, which cost is to be amortized over the period (the “Amortization Period”) commencing on November 1, 2011 and ending on October 31, 2021 on a straight-line basis using a 10% interest factor.
Accordingly, effective as of the date hereof, the Basic Rent payable under the Lease with respect to the entire Demised Premises during the Amortization Period shall be increased to the following amounts to account for the reimbursement by Lessee to
Lessor of the amortized cost of such work as contemplated under this Paragraph C: 
 i. for the period from
November 1, 2011 to and including October 31, 2016, the Basic Rent shall be $838,082.11 per annum, payable in equal monthly installments of 69,840.18; and 

ii. for the period from November 1, 2016 to and including October 31, 2021, the Basic Rent shall be $973,862.91
per annum, payable in equal monthly installments of $81,155.24. 
 5. Lessor and Lessee agree and acknowledge that as of the
date hereof, Lessee has exercised its right to lease the Expansion Space pursuant to Article 34 of the Lease, entitled “Right of First Offer” (as restated in the Fourth Amendment), and accordingly such provisions of the Lease shall be of
no further force or effect. Furthermore, Lessor and Lessee agree that Lessee shall continue to have the option to renew the term of the Lease pursuant to Article 32 of the Lease (entitled “Option to Renew,” which provision was restated in
the Fourth Amendment), with it understood that (i) the phrase “as during the twenty (20) year Term hereof” in the first paragraph of Section 4(e) of the Fourth Amendment shall be deemed deleted therefrom, and (ii) the
last sentence of Section 4(e) of the Fourth Amendment shall be deleted and the following shall be inserted in lieu thereof “Notwithstanding the above, in no event shall the Basic Rent during the Renewal Term be less than the Basic Rent in
effect as of the day immediately preceding the commencement date of the Renewal Term.” 
 6. Except as otherwise provided
herein, all other terms and provisions set forth in the Lease shall continue with the same force and effect as if set forth herein at length. 
 7. This Agreement shall be binding upon the parties hereto, their heirs, successors and assigns. 
 8. Each of Lessor and Lessee represents and warrants to the other that Lighthouse Real Estate Management, LLC (“LREM”) is the sole broker with whom such party has negotiated or otherwise
dealt with or engaged in bringing about this Agreement. Lessor and Lessee shall each indemnify and hold the other harmless from all loss, cost, liability, damage and expenses, including, but not limited to, reasonable counsel fees and disbursements,
incurred by the other party in connection with any breach of the foregoing representation and warranty. The terms and conditions of this paragraph shall survive the expiration or sooner termination of the Lease. Lessor shall pay any commission or
compensation owing to LREM in connection with this Agreement pursuant to a separate agreement between Lessor and LREM. In addition, if any commissions or compensation is due to any broker involved with the original Lease or any prior Addendums
thereto (e.g. Resource Realty, Inc. or CB Richard Ellis, Inc.), Lessor shall be solely responsible therefore. 
 [Signature Page
Immediately Follows] 

  
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 Signature Page to Sixth Amendment 
 IN WITNESS WHEREOF, the parties hereto have set their hands and seal the day and year first written above. 
  

													
	AGREED TO AND ACCEPTED BY:	 	AGREED TO AND ACCEPTED BY: 
		
	LESSEE:	 	LESSOR:
		
	IMMUNOMEDICS, INC.	 	WU/LH 300 AMERICAN L.L.C.
		 	       By:   Lighthouse 100 William Operating

                  LLC, its sole manager

					
	By:	 	/s/ Cynthia L. Sullivan	 		 	By:	 	/s/ Paul Cooper
		 	Name:	 	Cynthia L. Sullivan	 		 		 	Name:	 	Paul Cooper
		 	Title:	 	President & CEO	 		 		 	Title:	 	Member
						
		 		 		 		 	By:	 	/s/ Louis Sheinker
		 		 		 		 		 	Name:	 	Louis Sheinker
		 		 		 		 		 	Title:	 	MemberBank of Montreal Qualified Employee Share Purchase Plan

 Exhibit 4.1 
 BANK OF MONTREAL 

QUALIFIED EMPLOYEE SHARE PURCHASE PLAN 

(AMENDED AND RESTATED AS OF APRIL 1,
2010) 

 TABLE OF CONTENTS 

 

							
	SECTION	  	HEADING	  	PAGE	 
		
	 SECTION 1. INTRODUCTION
	  	 	1	  
			
	 Section 1.1.
	  	Purpose	  	 	1	  
	 Section 1.2.
	  	Share Purchase Plan	  	 	1	  
	 Section 1.3.
	  	Effective Date and Term	  	 	1	  
	 Section 1.4.
	  	Participating Subsidiaries	  	 	1	  
	 Section 1.5.
	  	Shares Subject to Plan	  	 	1	  
	 Section 1.6.
	  	Administrative Responsibilities	  	 	2	  
		
	 SECTION 2. DEFINITIONS
	  	 	2	  
		
	 SECTION 3. ENROLLMENT AND
CONTRIBUTIONS
	  	 	4	  
			
	 Section 3.1.
	  	Eligibility for Enrollment	  	 	4	  
	 Section 3.2.
	  	Enrollment Procedure	  	 	4	  
	 Section 3.3.
	  	Deferrals	  	 	4	  
	 Section 3.4.
	  	Payroll Deferral Accounts	  	 	5	  
	 Section 3.5.
	  	No Funding of Accounts	  	 	5	  
		
	 SECTION 4. GRANT AND EXERCISE OF
OPTION
	  	 	5	  
			
	 Section 4.1.
	  	Grant of Option; Terms	  	 	5	  
	 Section 4.2.
	  	Purchase of Shares; Price	  	 	6	  
	 Section 4.3.
	  	Custodial Accounts	  	 	6	  
	 Section 4.4.
	  	No Interest on Account Balances	  	 	6	  
		
	 SECTION 5. CESSATION OF ENROLLMENT
	  	 	7	  
			
	 Section 5.1.
	  	Cessation of Enrollment	  	 	7	  
	 Section 5.2.
	  	Distributions to Employee	  	 	8	  
	 Section 5.3.
	  	Beneficiaries	  	 	8	  
		
	 SECTION 6. PLAN ADMINISTRATION
	  	 	9	  
			
	 Section 6.1.
	  	Committee	  	 	9	  
	 Section 6.2.
	  	Committee Powers	  	 	9	  
	 Section 6.3.
	  	Committee Actions	  	 	9	  
	 Section 6.4.
	  	Member Who Is Participant	  	 	10	  
	 Section 6.5.
	  	Information Required from Employer	  	 	10	  
	 Section 6.6.
	  	Information Required from Employees	  	 	10	  
	 Section 6.7.
	  	Uniform Rules and Administration	  	 	10	  
		
	 SECTION 7. AMENDMENT AND TERMINATION
	  	 	10	  
			
	 Section 7.1.
	  	Amendment	  	 	10	  

  
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	 Section 7.2.
	  	Termination	  	 	11	  
	 Section 7.3.
	  	Rights upon Termination	  	 	11	  
		
	 SECTION 8. GENERAL PROVISIONS
	  	 	11	  
			
	 Section 8.1.
	  	No Transfer or Assignment	  	 	11	  
	 Section 8.2.
	  	Equal Rights and Privileges	  	 	11	  
	 Section 8.3.
	  	Rights as Shareholder	  	 	11	  
	 Section 8.4.
	  	Rights as Employee	  	 	11	  
	 Section 8.5.
	  	Costs	  	 	11	  
	 Section 8.6.
	  	Liability for Taxes	  	 	11	  
	 Section 8.7.
	  	Reports	  	 	12	  
	 Section 8.8.
	  	Governmental Approval	  	 	12	  
	 Section 8.9.
	  	Shareholder Approval	  	 	12	  
	 Section 8.10
	  	Conditions Upon Purchase of Shares	  	 	12	  
	 Section 8.11.
	  	Applicable Law	  	 	12	  
	 Section 8.12.
	  	Gender and Number	  	 	12	  
	 Section 8.13.
	  	Headings	  	 	12	  

  
 - ii -

 BANK OF MONTREAL 

QUALIFIED EMPLOYEE SHARE PURCHASE PLAN 

SECTION 1. INTRODUCTION. 
 Section 1.1. Purpose. Bank of Montreal hereby establishes the Plan to provide eligible Employees the opportunity to acquire a proprietary interest in Bank of Montreal and thereby provide such
Employees with an additional incentive to contribute to the long-term profitability and success of Bank of Montreal and its Subsidiaries. The Plan is for the exclusive benefit of eligible Employees of Bank of Montreal’s Participating
Subsidiaries. The Plan does not cover individuals who are directly employed by Bank of Montreal (whether in the United States or otherwise). 
 Section 1.2. Share Purchase Plan. The Plan is a share purchase plan that is intended to satisfy all requirements of Section 423 of the Internal Revenue Code of 1986, as amended. Any
provision of the Plan inconsistent with Section 423 of the Code will, without further act or amendment by Bank of Montreal, be reformed to comply with Code Section 423. 

Section 1.3. Effective Date and Term. The Plan was effective April 1, 2002, pursuant to approval of the Plan by the
shareholders of Bank of Montreal before such date, and this restatement if effective April 1, 2010. The Plan shall continue in effect until terminated in accordance with Section 7.2. 

Section 1.4. Participating Subsidiaries. Each Subsidiary organized under the laws of the United States as of the Effective
Date will be deemed to have adopted the Plan for its eligible Employees as of the Effective Date. Any corporation (determined in accordance with Section 7701 of the Code) organized under the laws of the United States that becomes a Subsidiary
after the Effective Date will be deemed to have adopted the Plan for its eligible Employees immediately upon becoming a Subsidiary, unless the Committee acts to exclude the Subsidiary and its eligible Employees from participation in the Plan.

 Section 1.5. Shares Subject to Plan. (a) The Shares subject to purchase under the Plan shall be acquired in
the open market by the Custodian. The aggregate number of Shares that may be purchased under the Plan shall not exceed three million (3,000,000) Shares. All Shares purchased under the Plan other than Shares purchased as a result of the
reinvestment of dividends will count towards this limitation. If, on a given Exercise Date, the number of Shares which are to be purchased exceeds the number of Shares then available under the Plan, the Committee shall make a pro-rata allocation of
the Shares remaining available for purchase in as uniform a manner as shall be practicable and as it shall determine to be equitable. 
 (b) In case of a reorganization, recapitalization, stock split, reverse stock split, stock dividend, combination of shares, merger, consolidation, offering of rights or other change in the capital
structure of Bank of Montreal, the Committee shall make such adjustment as it deems appropriate in the number, kind and purchase price of Shares available for purchase under the Plan so that the aggregate consideration payable by the Employers, and
the value of the benefit to Employees, shall not be changed. 

 Section 1.6. Administrative Responsibilities. For all administrative purposes,
the Committee may designate a Subsidiary to perform some or all of the administrative responsibilities under the Plan. 

SECTION 2. DEFINITIONS. 
 For purposes of the Plan, the following words and phrases, whether or not capitalized, have the meanings specified below, unless the context plainly requires a different meaning: 

“Bank of Montreal” means Bank of Montreal and its respective successors and assigns. 

“Beneficiary” means a person (as defined in Section 7701(a)(1) of the Code) to whom all or a portion of the Shares
or cash amounts due to the Employee under the Plan will be paid if the Employee dies before receiving such Shares or cash amounts. 
 “Board” means the Board of Directors from time to time of Bank of Montreal. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and all regulations thereunder. 
 “Committee” means the Benefits Administration Committee of Harris Bank. 
 “Compensation” means the total base pay rate based on a normal work week and shall not include payments for overtime, commissions, bonuses or other remuneration paid to the Employee,
provided however, with respect to an Employee who is paid on a commission basis, “Compensation” means the Employee’s annual base benefits rate of pay based on his normal work week and shall not include overtime, bonuses or other
remuneration paid to the Employee. 
 “Custodial Account” means the non-interest bearing bookkeeping account
maintained on behalf of the Employee to which Shares purchased under Sections 4.2 and 4.3 and dividends (net of withholding) shall be allocated and from which Shares and/or cash shall be distributed in accordance with Section 5.2. 

“Custodian” means the custodian for the Plan appointed by the Committee. 

“Effective Date” means April 1, 2002; or such later date designated by the Committee. 

“Employee” means any common law employee of an Employer who is not an Excluded Employee and who is a Regularly Scheduled
Employee; provided however, such term shall at least include those employees who are customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year by an Employer. 

“Employer” means a Participating Subsidiary. 

  
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 “Excluded Employee” means: (a) a leased employee (as defined below);
(b) an individual who provides services to an Employer pursuant to a contract, agreement or arrangement which designates the individual as an independent contractor or consultant, or which excludes the individual from participation in the plan;
(c) an individual who provides services to an Employer pursuant to a contract, agreement or arrangement between the Employer and a third party; (d) an individual who is compensated, directly or indirectly, by an Employer and whose
compensation is treated by the Employer at the time of payment as not being subject to the Employer’s tax withholding obligations under the Code; and (e) any individual who is directly employed by Bank of Montreal (whether in the United
States or otherwise). For purposes of this definition, a “leased employee” means any person who is not an employee of an Employer, but who has provided services for an Employer under primary direction or control by the Employer, on a
substantially full-time basis for a period of at least one year, pursuant to an agreement between the Employer and a leasing organization. 
 “Exercise Date” means the first day following the Offering Period; provided, however, that if the New York Stock Exchange is not opened on the first day following the Offering
Period, the next following day on which the New York Stock Exchange is opened shall be the Exercise Date. 
 “Fair
Market Value” means, with respect to Shares as of a particular day, the fair market value as determined by the Committee based on the last sales price of the Shares on the New York Stock Exchange as reported in The Wall Street
Journal. 
 “Offering Date” means the first day of the Offering Period. 

“Offering Period” means a quarter of the calendar year: e.g., January, February and March are together an Offering
Period. The Offering Periods shall end in March, June, September and December of each year. 
 “Participating
Subsidiary” means a Subsidiary which is participating in the Plan in accordance with Section 1.4. 

“Payroll Deferral Account” means the non-interest bearing bookkeeping account maintained on behalf of the Employee under
Section 3.4 to which payroll deferrals under the Plan are credited and from which amounts are withdrawn to exercise options as of an Exercise Date. 
 “Plan” means Bank of Montreal Qualified Employee Share Purchase Plan, as described in this document and as amended from time to time. 

“Regularly Scheduled Employee” means any employee who receives a salary computed on an annual, monthly or semi-monthly
basis, or an hourly employee whose compensation is computed on an hourly basis and who is regularly scheduled to work for an Employer. 
 “Shares” mean the Common Shares, without par value, of Bank of Montreal. 

  
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 “Subsidiary” means any corporation (determined in accordance with
Section 7701 of the Code) in an unbroken chain of corporations beginning with Bank of Montreal if, at the time an option is granted, each of the corporations other than the last corporation owns 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in the chain. 
 SECTION 3. ENROLLMENT
AND CONTRIBUTIONS. 
 Section 3.1. Eligibility for Enrollment. (a) An Employee may
enroll in the Plan for an Offering Period unless the Employee would, immediately upon enrollment, own directly or indirectly, or hold options or rights to acquire, an aggregate of 5% or more of the total combined voting power or value of all
outstanding shares of all classes of Bank of Montreal or any Subsidiary, determined in accordance with Section 424(d) of the Code. 
 (b) The Committee or its designee will notify an Employee that the Employee is first eligible to enroll in the Plan within a sufficient time before the Employee must elect to participate in the Plan.

 Section 3.2. Enrollment Procedure. (a) To enroll in the Plan for an Offering Period, an Employee must make
an election with the Employer (or its designee) and elect to make deferrals under the Plan in accordance with Section 3.3 in such form and manner and by such date as determined and communicated by the Committee. 

(b) An Employee whose enrollment in and contributions under the Plan continue throughout an Offering Period will automatically be
enrolled in the Plan for the next Offering Period unless (i) the Employee timely elects to cease participation in the Plan with the Employer (or its designee) before the Offering Date for the next Offering Period in accordance with
Section 5.1(a)(i) hereof, (ii) the Employee elects to cease payroll deferrals during a current Offering Period in accordance with Section 5.1(a)(ii) hereof, (iii) the Employee elects to withdraw payroll deferrals credited to his
Payroll Deferral Account in accordance with Section 5.1(a)(iii) hereof, or (iv) on the Offering Date the Employee is not eligible to participate in accordance with Section 3.1 hereof. The deferral rate for an Employee who is
automatically enrolled for an Offering Period pursuant to this Section will be the deferral rate in effect for the immediately preceding Offering Period, unless the Employee makes an election with the Employer (or its designee) to change the
deferral rate in such manner and by such date that is determined and communicated by the Committee. 
 Section 3.3.
Deferrals. (a) To enroll for the first time in the Plan for an Offering Period, an Employee must elect to make a deferral under the Plan, subject to the terms and conditions prescribed below, by means of payroll deduction for each payroll
period within the Offering Period. 
 (b) An Employee may elect to make payroll deferrals in a whole percentage which is not
less than 1% of Compensation per Offering Period and not more than 15% of Compensation per Offering Period (or such other amount as the Committee may establish from time to time and communicate to Employees before the Offering Date). An Employee
shall not be permitted to make any payments in cash or check or any other form which is not made through payroll deductions. 

  
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 (c) Payroll deductions will commence with the first payroll period that begins within the
Offering Period and will be made in conformity with the Employer’s payroll deduction schedule and practices. 
 (d) Unless
the Committee permits under uniform rules established by the Committee, and except as provided in Section 5.1, an Employee may elect to increase, decrease or discontinue deferrals only as of the beginning of an Offering Period by giving notice
to the Employer (or its designee). 
 Section 3.4. Payroll Deferral Accounts. All payroll deferrals made by an
Employee under the Plan will be credited to a Payroll Deferral Account maintained by the Employer or the Custodian on behalf of the Employee. The Employer will make the credit as soon as is administratively reasonable after the deferrals are
withheld from the Employee’s Compensation. 
 Section 3.5. No Funding of Accounts. No cash or Shares shall be
set aside with respect to a Payroll Deferral Account or Custodial Account. Nothing contained in the Plan and no action taken pursuant to the provisions hereof shall create or be construed to create a trust of any kind, or a fiduciary relationship
between Bank of Montreal or the Employer and any Employee or any other person with respect to a Payroll Deferral Account or Custodial Account. Cash or Shares credited to a Payroll Deferral Account or Custodial Account at any time and from time to
time shall be the general assets of the Employer. To the extent that any person acquires a right to receive the benefit of amounts credited to a Payroll Deferral Account or Custodial Account, such right shall be that of an unsecured general creditor
of the Employer. 
 SECTION 4. GRANT AND EXERCISE OF
OPTION. 
 Section 4.1. Grant of Option; Terms. Enrollment in the Plan for an Offering Period will
constitute the grant by Bank of Montreal of an option to purchase Shares under the Plan for such Offering Period. Enrollment in the Plan (whether initial or continuing) for each Offering Period will constitute a new grant of an option to purchase
Shares under the Plan for that Offering Period. Notwithstanding anything to the contrary in the Plan, all Employees granted options for an Offering Period shall have the same rights and privileges as required by Section 423(b)(5) of the Code.
Each option will be subject to the following terms: 
 (a) The option price will be as specified in
Section 4.2. 
 (b) The option will be exercised automatically as of the Exercise Date for the Offering
Period. 
 (c) The payment by an Employee for the Shares purchased under an option will be made only from amounts
credited to the Employee’s Payroll Deferral Account as a result of payroll deductions in accordance with Section 3.3. 

  
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 (d) No Employee shall be granted an option which permits his right to
purchase Shares under all employee stock purchase plans of Bank of Montreal and its Subsidiaries to accrue at a rate which exceeds twenty-five thousand dollars ($25,000) of fair market value of such Shares (determined at the time such option is
granted) for each calendar year in which such option is outstanding at any time. Any deferral election in effect that would otherwise exceed such limitation shall be given effect only to the maximum extent such limitation would not be violated.

 (e) No Employee shall be granted an option which permits his right to purchase Shares during the Offering
Period to exceed 50,000 Shares. Any deferral election in effect that would otherwise exceed such limitation shall be given effect only to the maximum extent such limitation would not be violated. 

Section 4.2. Purchase of Shares; Price. (a) Subject to Section 4.1, the Custodian will apply to the purchase of
Shares the amounts credited to each Employee’s Payroll Deferral Account as of such Exercise Date. The Employer shall pay to the Custodian on behalf of an Employee any additional amount required to purchase the number of Shares determined in
accordance with Section 4.2(b). The Shares so purchased for each Employee shall be allocated to the Custodial Account for the Employee. The Shares shall be held by the Custodian on behalf of the Employee and registered in the name of a nominee.

 (b) The option price of each Share purchased as of an Exercise Date shall be 85% of the Fair Market Value of the Share on
such Exercise Date; or such other price designated by the Committee in its sole discretion, provided that such other price may not be lower than the lesser of 85% of the Fair Market Value of the Share on the Offering Date or 85% of the Fair
Market Value of the Share on the Exercise Date. 
 Section 4.3. Custodial Accounts. All Shares (whole and
fractional) purchased on behalf of an Employee as of an Exercise Date shall be credited to such Employee’s Custodial Account, as of such Exercise Date. Dividends (net of any withholding taxes) received with respect to Shares held in an
Employee’s Custodial Account will be credited to the Employee’s Custodial Account and reinvested in additional Shares which shall be purchased by the Custodian in the open market as soon as administratively reasonable following receipt of
such net dividend payment by the Custodian. 
 Section 4.4. No Interest on Account Balances. No interest or other
earnings will be credited to any Payroll Deferral Account with respect to (a) amounts credited thereto during an Offering Period or (b) amounts to be returned to the Employee, nor shall interest or other earnings (except dividends as
provided in Section 4.3 above) be credited to any Custodial Account. Neither the Committee nor Bank of Montreal nor any Employer shall have any obligation to invest or otherwise manage amounts credited to a Payroll Deferral Account or a
Custodial Account, other than to apply such amounts to the purchase of Shares in accordance with the terms of the Plan. 

  
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 SECTION 5. CESSATION OF ENROLLMENT.

 Section 5.1. Cessation of Enrollment. (a) Subject to Section 5.2, an Employee’s enrollment in the
Plan will cease under the following circumstances: 
 (i) An Employee’s enrollment will cease as of the
beginning of the next Offering Period that is a specified number of days (as determined and communicated by the Committee) after the Employee makes an election specifying such future cessation of enrollment in the form and manner determined and
communicated by the Committee. 
 (ii) In the Committee’s discretion, based on uniform rules and procedures
established from time to time by the Committee, an Employee’s enrollment will cease during a current Offering Period and for future Offering Periods if the Employee makes an election specifying the cessation of payroll deferrals for such
current Offering Period. As of the Exercise Date of such Offering Period, Shares shall be purchased with payroll deferrals made prior to such cessation of payroll deferrals. 

(iii) In the Committee’s discretion, based on uniform rules and procedures established from time to time by the
Committee, an Employee may withdraw all but not less than all of the payroll deferrals credited to his Payroll Deferral Account and not yet used to purchase Shares at any time by making an election. In such case, all cash credited to the
Employee’s Payroll Deferral Account shall be paid to the Employee as soon as is administratively reasonable and such Employee will cease participation in the Plan. 

(iv) (A) An Employee’s enrollment will cease on termination of employment with the Employer for any reason.

 (B) If the Employee transfers employment from one Participating Subsidiary to another Participating
Subsidiary, the Employee’s enrollment in the Plan will not cease. 
 (C) If the Employee transfers
employment from a Participating Subsidiary to Bank of Montreal or to a Subsidiary which is not a Participating Subsidiary, the Employee’s enrollment will cease, provided however, if the next Exercise Date is three (3) months or less after
the date of such transfer, any amounts previously deferred to the Employee’s Payroll Deferral Account will be used to purchase Shares in accordance with Section 4.2. 

(v) An Employee’s enrollment will cease as of the date on which the Employee would own directly or indirectly, or
hold options or rights to acquire, an aggregate of 5% or more of the total combined voting power or value of all outstanding shares of all classes of Bank of Montreal or any Subsidiary, determined in accordance with Sections 424(d) of the Code.

 (vi) An Employee’s enrollment will cease upon termination of the Plan. 

  
 -7-

 (b) An Employee whose enrollment in the Plan ceases under this Section other than by reason
of termination of the Plan may again enroll in the Plan as of any subsequent Offering Date if the Employee satisfies the eligibility conditions of Section 3.1 as of such date. 

Section 5.2. Distributions to Employee. (a) At such time as determined by the Committee, after an Employee’s
enrollment in the Plan ceases under Section 5.1(a)(iv)(A) or (vi) (provided that a successor plan is not established), the Committee will direct the Custodian to distribute to the Employee the Shares and/or cash then credited to the
Employee’s Custodial Account and any cash held in the Payroll Deferral Account; provided however, if the Employee’s termination occurs after the 15th day of the last month of an Offering Period, the cash held in an Employee’s Payroll
Deferral Account will be used to purchase Shares in accordance with Section 4.2. 
 (b) If an Employee’s enrollment
ceases as a result of death, or if the Employee’s death occurs before the Employee receives a distribution under this Section, all Shares and/or cash amounts payable under this Section to the Employee will be paid to the Employee’s
Beneficiary as soon as is administratively reasonable. 
 (c) An Employee may from time to time request distribution of Shares
and/or cash with respect to that portion of Shares or cash then credited to the Employee’s Custodial Account. Such distribution will be made as soon as is administratively reasonable. 

(d) In the Committee’s discretion, an Employee may request a withdrawal of the cash in the Employee’s Payroll Deferral Account
as permitted in Section 5.1(a)(iii) above. 
 (e) If a distribution of certificates representing the Employee’s Shares
are distributed to the Employee (or the Employee’s Beneficiary), the Committee may determine that a nominal fee be charged to the Employee (or, if applicable, the Employee’s Beneficiary). 

(f) If an Employee requests that distribution be made in cash instead of certificates representing Shares, the Employee shall pay and
authorizes the Employer (or its designee) to withhold any brokerage fee or expense to convert the Shares to cash. 

Section 5.3. Beneficiaries. (a) An Employee may designate one or more persons (as defined in Section 7701(a)(1) of
the Code) (concurrently, contingently or successively) to whom Shares and/or cash amounts credited to the Payroll Deferral Account or Custodial Account will be distributed if the Employee dies before receiving complete payment of such amounts. Any
such designation must be made in such manner provided by the Committee (or its designee) for this purpose, will be effective on the date received by the Committee (or its designee), and may be revoked by the Employee at any time. 

(b) If the Employee fails to designate a beneficiary or if no designated beneficiary survives the Employee, then any Shares and/or cash
amounts shall be distributed to the Employee’s estate. 

  
 -8-

 SECTION 6. PLAN ADMINISTRATION. 

Section 6.1. Committee. The Plan will be administered by the Committee. 

Section 6.2. Committee Powers. (a) The Committee will have all powers appropriate to administer the Plan including, but
not limited to, the following: 
 (i) To determine all questions that may arise under the Plan, including the
power to determine the rights or eligibility of an Employee or the Employee’s Beneficiaries; 
 (ii) To
construe the terms of the Plan and to remedy ambiguities, inconsistencies or omissions; 
 (iii) To adopt such
rules of procedure and prescribe such forms as it considers appropriate for the proper administration of the Plan and are consistent with the Plan; 
 (iv) To enforce the Plan provisions and the rules of procedure which it adopts; 
 (v) To employ agents, attorneys, accountants, actuaries or other persons, and to allocate or delegate to them such powers, rights and duties as it considers appropriate for the proper administration of
the Plan. 
 (b) The Committee will have such further powers and duties as may be elsewhere specified in the Plan. 

Section 6.3. Committee Actions. The actions of the Committee may be taken at a meeting by a majority of its members, in
writing without a meeting if all members of the Committee sign such writing or by the use of a conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other and participation in
such a meeting in this manner shall constitute attendance and presence in person at the meeting of the person or persons so participating for all purposes. In taking action: 

(a) The Committee may allocate authority to a specific member(s) of the Committee to carry out such duties as the
Committee may assign; 
 (b) A member of the Committee may by writing delegate any or all of such member’s
rights, powers, and duties to any other member of the Committee, with the consent of the latter; and 
 (c) The
Committee may delegate to any agents, which may include a Plan Committee, such duties and powers, as it deems appropriate, by an instrument in writing which specifies which duties are so delegated and to whom each such duty is so delegated.

  
 -9-

 Section 6.4. Member Who Is Participant. If a member of the Committee is an
Employee, such member may not decide any matter relating to the member’s participation or Accounts or how the Accounts are to be paid to the member that the member would not have the right to decide in the absence of membership on the
Committee, and no Employee will receive any compensation for services as a member of the Committee. 
 Section 6.5.
Information Required from Employer. The Employer will furnish the Committee with such data and information as the Committee deems appropriate to administer the Plan. The records of the Employer as to an Employee’s Compensation will be
conclusive on all persons unless determined by the Committee to be clearly incorrect. 
 Section 6.6. Information
Required from Employees. Each person entitled to benefits under the Plan must furnish the Employer from time to time such person’s mailing address, each change of mailing address and such other data and information as the Committee deems
appropriate to administer the Plan. Any communication, statement or notice mailed with postage prepaid to any person at the last mailing address filed with the Employer will be binding upon such person for all purposes of the Plan. 

Section 6.7. Uniform Rules and Administration. The Committee will administer the Plan on a nondiscriminatory basis and will
apply uniform rules to all persons similarly situated. 
 SECTION 7. AMENDMENT AND
TERMINATION. 
 Section 7.1. Amendment. (a) Bank of Montreal reserves the right to amend the Plan
from time to time subject to the following limitations: 
 (i) No amendment will be made without the prior
approval of the shareholders of Bank of Montreal if the amendment will (1) increase the number of shares reserved for purchase under the Plan, or (2) materially modify the eligibility conditions or increase the benefits available to
Employees under the Plan. 
 (ii) No amendment will make any change in an option granted previously and
outstanding which adversely affects the rights of an Employee with respect to such option. 
 (iii) No amendment
will reduce the amount of an Employee’s Payroll Deferral Account or Custodial Account balance. 
 (iv) No
amendment will be made which will cause the Plan to not satisfy the requirements under Section 423 of the Code. 
 (b) Bank
of Montreal hereby delegates to the Committee the power to amend the Plan, subject to the limitations of this Section. 

  
 -10-

 Section 7.2. Termination. The Plan is entirely voluntary on the part of Bank of
Montreal and the continuance of the Plan should not be construed as a contractual obligation of Bank of Montreal. Accordingly, Bank of Montreal reserves the right to terminate the Plan at any time and hereby designates to the Committee such right.
Unless sooner terminated by the Committee, the Plan shall terminate on the earlier of: (i) the date all of the Shares specified in Section 1.5(a) are purchased unless additional Shares are authorized for the Plan by the shareholders of
Bank of Montreal; and (ii) the end of the tenth year beginning on or after the Effective Date. No option may be granted under the Plan after the Plan is terminated. 
 Section 7.3. Rights upon Termination. (a) If the Plan terminates, the Committee may elect to terminate all outstanding options to purchase Shares under the Plan either immediately or upon
completion of the purchase of Shares as of the next following Exercise Date. 
 (b) If the Committee terminates an option to
purchase Shares prior to the expiration of the option, all amounts contributed to the Plan which remain in an Employee’s Payroll Deferral Account will be returned to the Employee as soon as is administratively reasonable. 

SECTION 8. GENERAL PROVISIONS. 
 Section 8.1. No Transfer or Assignment. The rights of an Employee under the Plan may not be sold, pledged, assigned or transferred, voluntarily or involuntarily, in any manner other than by
will or the laws of descent and distribution. Any such attempted sale, pledge, assignment or transfer shall be without effect. An Employee’s rights and all options granted under the Plan shall only be exercisable during his or her lifetime by
such Employee. 
 Section 8.2. Equal Rights and Privileges. All Employees who are granted options under the Plan for
the Offering Period will have equal rights and privileges with respect to such option. 
 Section 8.3. Rights as
Shareholder. The grant of an option to purchase Shares under the Plan will not confer upon an Employee any rights as a shareholder of Bank of Montreal with respect to Shares subject to the option. An Employee will become a shareholder with
respect to Shares subject to an option under the Plan only when the purchase of such Shares is completed as of an Exercise Date. 
 Section 8.4. Rights as Employee. The Plan is not a contract of employment, and the grant of an option to purchase Shares under the Plan will not confer upon any Employee the right to be
retained in the employ of Bank of Montreal or any Employer. An Employee’s enrollment in the Plan shall constitute a waiver of any and all rights to compensation or damages relating to the cessation of such Employee’s eligibility to
participate in the Plan upon termination of the Plan or termination of the Employee’s employment for any reason whatsoever. 
 Section 8.5. Costs. All costs and expenses incurred in the administration of the Plan will be paid by the Participating Subsidiaries. Any brokerage fees or expenses for the sale or transfer of
Shares by an Employee will be borne by the Employee. 
 Section 8.6. Liability for Taxes. Each Employee shall be
responsible for, and will indemnify the Employer against, any federal, state or local income or other applicable taxes, including any interest or penalties relating thereto, to which the Employee may be subject as a result of the Employee’s
participation in the Plan or the Employee’s sale of Shares acquired thereunder. 

  
 -11-

 Section 8.7. Reports. The Committee will provide or cause to be provided to each
Employee no less frequently than annually a report of the Employee’s contributions under the Plan for the reporting period, the Shares purchased with such contributions, any dividends received with respect to such Shares, and Shares purchased
with respect to such dividends. 
 Section 8.8. Governmental Approval. The Plan and any offering or sale made to
Employees under the Plan are subject to any governmental requirements, approvals or consents that are or may become applicable in connection herewith. 
 Section 8.9. Shareholder Approval. The Plan is subject to approval by the holders of a majority of the Shares of Bank of Montreal present in person or by proxy and voting at the meeting at
which the Plan is considered and shall not be effective without such approval. 
 Section 8.10. Conditions Upon Purchase
of Shares. Shares shall not be purchased with respect to an option unless the exercise of such option and the purchase and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign,
including without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be
listed. 
 Section 8.11. Applicable Law. The Plan will be governed by the laws of the State of Illinois, without
regard to the law of conflicts of such state, to the extent that federal law does not preempt such laws. 

Section 8.12. Gender and Number. When the context permits, words in the Plan used in the masculine gender include the
feminine gender, words in the singular include the plural and words in the plural include the singular. 
 Section 8.13.
Headings. All headings in the Plan are included solely for ease of reference and do not bear on the interpretation of the text. 

  
 -12-

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