Document:

Guidelines for Named Executive Officer Compensation Program

 Exhibit 10.1 
  

			
	Business Sensitive	 	 

  
 CarrAmerica Realty
Corporation 
  
 Guidelines for Named Executive Officer
Compensation 
 Program 
  
 Reviewed and Approved by Executive Compensation Committee 
 January 27, 2005 
  
 I. Overview

  
 The purpose of the Named Executive Officer Compensation Program (the
“Program”) is to attract, motivate, and retain highly qualified and experienced executives who will perform in the long-term interests of CarrAmerica Realty Corporation (the “Company”) and its stockholders. The Program applies to
the five named executive officers (“NEOs”) of the Company—the Chairman of the Board & Chief Executive Officer, the President & Chief Operating Officer, the Chief Financial Officer, the Chief Investment Officer and the General
Counsel. The Program, as it may be amended from time to time by the Executive Compensation Committee (the “ECC”) established by the Board of Directors of the Company (the “Board”), will remain in effect until such time as the ECC
determines that the Program is no longer in the best interests of the Company and its stockholders. Nothing in the Program shall result in the formation of any employment contract for any term; all NEOs are considered at-will employees, unless an
express written employment contract has been entered into and fully executed by both the NEO and a duly authorized representative of the Company. The Program is subject to amendment or termination by the ECC at any time and without notice.

  
 The Program will benefit the Company by: 
  

	 	•	 	providing a compensation philosophy to guide the assessment, design and administration of the NEO compensation program; 

  

	 	•	 	minimizing to the extent practical the subjective element of individual performance ratings; 

  

	 	•	 	increasing the transparency of incentive compensation opportunities and payouts; 

  

	 	•	 	providing differentiation in incentive awards based on differing performance; 

  

	 	•	 	integrating annual compensation planning with the process for developing the annual business plan; 

  

	 	•	 	delineating the roles and responsibilities of the Board of Directors, the ECC, and Company management; and 

  

	 	•	 	providing stock ownership guidelines for NEOs.  

 Guidelines for Named Executive Officer Compensation Program 
  
 II. Program Design 
  
 A well-designed compensation strategy is critical to the Company’s ability to attract
and retain a highly motivated, performance-oriented executive management team. With that in mind, the Program has been structured to (i) ensure that the NEOs are rewarded commensurate with the Company’s performance, (ii) provide competitive
compensation opportunities that recognize individual performance and responsibility, and (iii) motivate the NEOs to strive to enhance stockholders’ long- and short-term value. To achieve these goals, each NEO’s total direct compensation
(“TDC”) package will be based on three components: 
  

	 	1.	Base Salary 

  

	 	2.	Short-term Incentives 

  

	 	3.	Long-term Incentives 

  
 Base Salaries reflect job requirements and accountability, incumbent tenure, and experience. Adjustments may be considered based upon internal equity, as appropriate. 
  
 Short-term Incentives are annual cash awards that reward NEOs based on both the
individual’s and the Company’s annual performance. Three primary annual performance criteria have been established for short-term incentives: 
  

	 	•	 	attainment of a specific target for funds from operations (FFO) per share; 

  

	 	•	 	achievement of individualized quantitative financial and operational goals related to the activities managed by that individual; and 

  

	 	•	 	a qualitative evaluation of each individual’s performance that takes into account factors such as quality of leadership, decision-making and long-term strategic planning.

  
 Short-term incentive targets equal to a percentage of each
NEO’s base salary are set by the ECC early in the fiscal year, and awarded in the first quarter following release of prior fiscal year earnings. 
  
 Long-term Incentives are designed to align the financial interests of the NEOs with those of the Company’s stockholders, and to reward NEOs based on
the Company’s longer-term performance. Long-term incentive targets are established by the ECC early in the fiscal year. Long-term incentives are awarded on an annual basis based on the ECC’s evaluation of several criteria, including
shareholder return over time and achievement of long-term goals. The ECC may utilize various forms of long-term incentives (e.g., stock options, stock value units, restricted stock units, or restricted stock) as components of the long-term incentive
award. Each year, the ECC will evaluate the type of incentives that the NEOs will be eligible to receive; currently, the ECC favors the use of restricted stock to minimize the potential dilution of the Company’s earnings. 
  
 When setting the target value of the TDC for each of the NEOs under the Program, the ECC
generally seeks to ensure that target TDC packages are competitive with those for executive officers of peer group REITs and, where appropriate, with general market peer group public companies (based on total market capitalization). The ECC reviews
the TDC packages of each NEO on at least a biennial basis. In these reviews, the ECC generally retains an outside compensation consultant to advise and make recommendations to the ECC, including analyses of peer group compensation data. 

 Guidelines for Named Executive Officer Compensation Program 
  
 III. Incentive Performance Measurement Guidelines 
  
 Each NEO is expected to fully earn and be awarded their target incentives if they meet
corporate financial objectives and the other established performance criteria. NEOs who exceed performance expectations will be awarded incentives in excess of targets, and conversely NEOs who fail to meet targeted performance criteria will be
awarded incentives below targeted amounts. 
  
 The ECC will consider the following
general guidelines when determining the amounts of incentive awards; however, all incentive awards are made at the discretion and based on the judgment of the ECC: 
  

					
	 	  	 Level of Performance

	  	 Incentive Range

	Below Threshold	  	Failure to meet minimum Company performance targets	  	None
			
	Threshold	  	Adequate performance in the judgment of the ECC, but fell short of meeting objectives	  	50% -99% of target incentive
			
	Target	  	On balance, met the business objectives set by the Company and approved by the Board.	  	100% of target incentive
			
	Superior	  	Above average to exceptional performance by industry standards.	  	101% - 150% of target incentive

  
 IV. Stock Ownership
Guidelines 
  
 The ECC has adopted the following guidelines for ownership
of stock of the Company by each of the NEOs: 
  

			
	 NEO

	  	 Multiple of
 Base Salary

	COB/CEO	  	4 – 5 times
	President/COO	  	3 – 4 times
	CIO	  	2 – 3 times
	CFO	  	2 – 3 times
	GC	  	2 – 3 times

  
 NEOs will be allowed five years from
the approval by the ECC of stock ownership guidelines in January 2003 to reach guideline levels. 
  
 Consideration will be made for an individual’s personal financial circumstances in evaluating adherence to these guidelines. Relevant financial circumstances may include investments for education or property or
other investments as the CEO deems warrant an exception. 

 Guidelines for Named Executive Officer Compensation Program 
  
 V. Authority to Make Revisions and Changes to the Program and Practices

  
 The ECC has the authority to make revisions and changes to the Program as
it deems appropriate. 
  

			
	 /s/ Thomas Carr

	 	 /s/ Timothy Howard

	 Thomas Carr
 Chairman of the Board and Chief Executive
Officer
  
 Date: January 27, 2005
	 	 Timothy Howard
 Chairman of the Executive Compensation
Committee
  
 Date: January 27, 2005Summary of Compensation for Named Executive Officers

 Exhibit 10.2 
  
 Summary of Compensation for Named Executive Officers 
  

							
	 Recipient

	  	2005 Base Salary

	  	2004 Short-Term Incentive
Award

	 Thomas A. Carr
 Chairman of the Board and
 Chief Executive Officer
	  	$	495,000	  	$	550,000
			
	 Philip L. Hawkins
 President and Chief
 Operating Officer
	  	$	440,000	  	$	440,000
			
	 Stephen E. Riffee
 Chief Financial Officer
	  	$	320,000	  	$	190,000
			
	 Karen B. Dorigan
 Chief Investment Officer
	  	$	312,000	  	$	185,000
			
	 Linda A. Madrid
 Managing Director,
 General Counsel and
 Corporate Secretary
	  	$	293,500	  	$	165,000Amendment No. 4 to Loan and Security Agreement

 Exhibit 10.1 
  
 FOURTH AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
  
 This Fourth Amendment to Loan and Security Agreement (the “Amendment”) is entered into as of January 28, 2005, by and between COMERICA BANK (“Bank”)
and ALIGN TECHNOLOGY, INC. (“Borrower”). 
  
 RECITALS

  
 Borrower and Bank are parties to that certain Loan and
Security Agreement dated as of December 20, 2002, (as amended from time to time, including without limitation that certain Amendment No. 1 to Loan and Security Agreement with Limited Waiver dated as of August 4, 2003, that certain Second Amendment
to Loan and Security Agreement dated as of September 29, 2003, and that certain Amendment No. 3 to Loan and Security Agreement dated December 17, 2003, together with any related agreements, the “Agreement”). Hereinafter, all indebtedness
owing by Borrower to Bank shall be referred to as the “Indebtedness.” The parties desire to amend the Agreement in accordance with the terms of this Amendment. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows: 
  
 AGREEMENT 
  

	I.	Incorporation by Reference. The Recitals and the documents referred to therein are incorporated herein by this reference. Except as otherwise noted, the terms not
defined herein shall have the meaning set forth in the Agreement. 

  

	II.	Amendment to the Agreement. Subject to the satisfaction of the conditions precedent as set forth in Article IV hereof, the Agreement is hereby amended as set forth
below. 

  

	 	A.	The minimum EBITDA amount for the fiscal quarter ending 12/31/04 in Section 6.7(c) of the Agreement is hereby changed from “$5,000,000” to “$3,000,000”.

  

	 	B.	Borrower’s and Bank’s addresses for notices set forth in Section 10 of the Agreement are hereby amended in their entirety to read as follows: 

  

			
	“If to Borrower:	  	Align Technology, Inc.
	 	  	851 Martin Avenue
	 	  	Santa Clara, CA 95050
	 	  	Attn: Roger E. George
	 	  	FAX: (408) 727-1393
		
	If to Bank:	  	Comerica Bank
	 	  	2321 Rosecrans Ave., Suite 5000
	 	  	El Segundo, CA 90245
	 	  	Attn: Manager
	 	  	FAX: (310) 297-2290
		
	With a copy to:	  	Comerica Bank
	 	  	5 Palo Alto Square, Suite 800
	 	  	3000 El Camino Real
	 	  	Palo Alto, CA 94306
	 	  	Attn: Rob Ways
	 	  	FAX: (650) 213-1710”

  

 AMENDMENT 
 PAGE 1 OF 4 

	 	C.	A new Section 13 is hereby added to the Agreement to read as follows: 

  

	 	“13.	Reference Provision. 

  
 The parties prefer that any dispute between them be resolved in litigation subject to a Jury Trial Waiver as set forth in the Loan
Documents (defined below), but the availability of that process is in doubt because of the opinion of the California Court of Appeal in Grafton Partners LP v. Superior Court, 9 Cal.Rptr.3d 511. This Reference Provision will be applicable until the
California Supreme Court completes its review of that case, and will continue to be applicable if either that court or a California Court of Appeal publishes a decision holding that a pre-dispute Jury Trial Waiver provision similar to that contained
in the Loan Documents is invalid or unenforceable. Delay in requesting appointment of a referee pending review of any such decision, or participation in litigation pending review, will not be deemed a waiver of this Reference Provision. 

 
 Other than (i) nonjudicial foreclosure of security
interests in real or personal property, (ii) the appointment of a receiver or (iii) the exercise of other provisional remedies (any of which may be initiated pursuant to applicable law), any controversy, dispute or claim (each, a “Claim”)
between the parties arising out of or relating to this Agreement or any other document, instrument or agreement between the Bank and the undersigned (collectively in this Section, the “Loan Documents”), will be resolved by a reference
proceeding in California in accordance with the provisions of Section 638 et seq. of the California Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy for the resolution of any
Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be in the Superior Court or Federal District Court in the County or District where
venue is otherwise appropriate under applicable law (the “Court”). 
  
 The referee shall be a retired Judge or Justice selected by mutual written agreement of the parties. If the parties do not agree, the referee shall be selected by the Presiding Judge of the Court (or his or her
representative). A request for appointment of a referee may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. The referee shall be appointed to sit
with all the powers provided by law. Each party shall have one peremptory challenge pursuant to CCP §170.6. Pending appointment of the referee, the Court has power to issue temporary or provisional remedies. 
  
 The parties agree that time is of the essence in conducting
the reference proceedings. Accordingly, the referee shall be requested to (a) set the matter for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (b) if practicable, try all issues of law or
fact within ninety (90) days after the date of the conference and (c) report a statement of decision within twenty (20) days after the matter has been submitted for decision. Any decision rendered by the referee will be final, binding and
conclusive, and judgment shall be entered pursuant to CCP §644. 
  
 The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested
discovery for any reason whatsoever. Unless otherwise ordered, no party shall be entitled to “priority” in conducting discovery, depositions may be taken by either 

  

 AMENDMENT 
 PAGE 2 OF 4 

 
party upon seven (7) days written notice, and all other discovery shall be responded to within fifteen (15) days after service. All disputes relating to
discovery which cannot be resolved by the parties shall be submitted to the referee whose decision shall be final and binding. 
  
 Except as expressly set forth in this Agreement, the referee shall determine the manner in which the reference proceeding is conducted
including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial,
shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such
a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial.

  
 The referee shall be required to determine
all issues in accordance with existing case law and the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference proceeding. The referee shall be
empowered to enter equitable as well as legal relief, provide all temporary or provisional remedies, enter equitable orders that will be binding on the parties and rule on any motion which would be authorized in a trial, including without limitation
motions for summary judgment or summary adjudication . The referee shall issue a decision at the close of the reference proceeding which disposes of all claims of the parties that are the subject of the reference. The referee’s decision shall
be entered by the Court as a judgment or an order in the same manner as if the action had been tried by the Court. The parties reserve the right to appeal from the final judgment or order or from any appealable decision or order entered by the
referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference proceeding under
this provision. 
  
 If the enabling legislation
which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration. The arbitration
will be conducted by a retired judge or Justice, in accordance with the California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall apply to any
such arbitration proceeding. 
  
 THE PARTIES
RECOGNIZE AND AGREE THAT ALL DISPUTES RESOLVED UNDER THIS REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY, AND THAT THEY ARE IN EFFECT WAIVING THEIR RIGHT TO TRIAL BY JURY IN AGREEING TO THIS REFERENCE PROVISION. AFTER CONSULTING
(OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY AND FOR THEIR MUTUAL BENEFIT AGREES THAT THIS REFERENCE PROVISION WILL APPLY TO ANY DISPUTE BETWEEN THEM WHICH ARISES OUT OF OR IS
RELATED TO THIS AGREEMENT OR THE LOAN DOCUMENTS.” 
  

	III.	Legal Effect. 

  

	 	A.	The Agreement is hereby amended wherever necessary to reflect the changes described above. Borrower agrees that it has no defenses against the obligations to pay any amounts under
the Indebtedness. 

  

 AMENDMENT 
 PAGE 3 OF 4 

	 	B.	Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the
Agreement. Except as expressly modified pursuant to this Amendment, the terms of the Agreement remain unchanged, and in full force and effect. Bank’s agreement to modifications to the existing Indebtedness pursuant to this Amendment in no way
shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this Amendment shall constitute a satisfaction of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties, all makers and endorsers
of Agreement, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be released by virtue of this Amendment. The terms of this paragraph apply not only to this Amendment, but also to all subsequent loan
modification requests. 

  

	 	C.	This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. This is an
integrated Amendment and supersedes all prior negotiations and agreements regarding the subject matter hereof. All modifications hereto must be in writing and signed by the parties. 

  

	IV.	Conditions Precedent. Except as specifically set forth in this Amendment, all of the terms and conditions of the Agreement remain in full force and effect. The
effectiveness of this Agreement is conditioned upon receipt by Bank of this Amendment, and any other documents which Bank may require to carry out the terms hereof, including but not limited to the following: 

  

	 	A.	This Amendment, duly executed by Borrower; 

  

	 	B.	Corporation Resolutions and Incumbency Certification, duly executed by Borrower; and 

  

	 	C.	Such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

  
 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above
written. 
  

			
	ALIGN TECHNOLOGY, INC.
		
	By:	 	 /s/ Eldon M. Bullington

	Title:	 	Chief Financial Officer
	
	COMERICA BANK
		
	By:	 	 /s/ Rob Way

	Title:	 	Vice President - Technology & Life Sciences Division

  

 AMENDMENT 
 PAGE 4 OF 4

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