Document:

Ex-10.1 Long-Term Incentive Program

 

Exhibit 10.1

HEALTHCARE REALTY TRUST INCORPORATED

LONG-TERM INCENTIVE PROGRAM

1.     Purpose.     The 2007 Employees Stock Incentive Plan (the “Plan”) was adopted to promote the
interests of HR and its stockholders by strengthening HR’s ability to attract, motivate, and retain
personnel upon whose judgment, initiative, and efforts the financial success and growth of the
business of HR largely depend; to offer such personnel additional incentives to put forth maximum
efforts for the success of the business; and to afford them an opportunity to acquire a proprietary
interest in HR through stock ownership and other performance-based rights. This program is being
adopted by the Committee in accordance with the Plan and is intended to further the purposes of the
Plan by establishing measurement criteria and other terms and provisions for long-term incentive
awards under the Plan (the “Long-Term Incentive Program”).

2.     Definitions.     Whenever the following capitalized terms are used in this Long-Term
Incentive Program, they shall have the meanings specified below:

     “FAD” means funds available for distribution as reported to the public by HR in its
earnings and results of operations news releases, or if not reported to the public, calculated in a
manner consistent with its reporting for the quarter ended September 30, 2007.

     “FFO” means funds from operations, as reported to the public by HR in its earnings and
results of operations news releases and in its periodic reports filed with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended, or if not reported to
the public, calculated in a manner consistent with its reporting for the quarter ended September
30, 2007.

     “NOI” means net operating income, normalized for items that would otherwise inhibit a
meaningful comparison of NOI period to period.

     Other capitalized terms used herein, but not defined, shall have the meanings attributed to
such terms in the Plan.

3.     Participation.     The Participants in this Long-Term Incentive Program are those employees
who have been selected by the Committee as those capable of having a significant impact on the
overall operations of HR, and shall include all officers of HR and any Subsidiary having the title
of Secretary, Associate Vice President, Vice President, Senior Vice President, President or Chief
Executive Officer.

4.     Memorandum Account.     There shall be a memorandum account (the “Memorandum Account”)
maintained for each Participant, which shall include as an initial balance, the amounts credited to
the memorandum accounts pursuant to the Fourth Implementation under the Healthcare Realty Trust
Incorporated 2003 Employees Stock Incentive Plan, which has been superseded by the Plan. Beginning
on January 1, 2008 and each year thereafter until the termination of the Long Term Incentive
Program, each Participant will have an additional amount credited to his or her Memorandum Account
that is equal to 25% of such Participant’s Base Salary. The balance of the Memorandum Account will
be reduced by the amount applied to any Award granted to the Participant in accordance with Section
5 below. Any balance remaining in the Participant’s Memorandum Account shall be available for
application with respect to future Awards. However, the Committee may make Awards having a value
in excess of a Participant’s Memorandum Account when exceptional performance has been demonstrated.

     The amounts set forth in each Memorandum Account will be non-book memorandum account balances,
employed for reference purposes only and shall create no claim upon the assets of HR. HR shall not
be liable for payment of interest upon the balance of any Memorandum Account or upon any Award.

 

 

5.     Awards.     Awards may be granted to each Participant upon the Committee’s determination and
in its discretion and shall be subject to such vesting periods and requirements as the Committee
determines. Management of HR may annually propose Awards under the Long-Term Incentive Program to
the Committee.

     If management proposes Awards under the Long-Term Incentive Program, such proposal shall
include: the aggregate size and amount of the Awards; a schedule of Participants and the allocation
of Awards by Participant; and an analysis of HR’s performance for the previous year. The
measurement of HR’s performance shall be based on performance for the twelve month period ended
September 30, or such other period as may be appropriate, and shall include an analysis of the
following criteria:

	 	•	 	Portfolio performance, which shall include an evaluation of occupancy,
NOI improvement and asset management;
	 
	 	•	 	Investment performance, which shall include an evaluation of the
portfolio suitability, accretive effect and long-term attributes of investments;
	 
	 	•	 	Cash flow performance, which shall include an evaluation of HR’s FAD
dollars, FFO dollars, FAD per share, FFO per share and cash flow from operations;
and
	 
	 	•	 	Affordability, which shall include an evaluation of the effects of the
proposed Awards on future earnings.

     In determining whether to grant Awards under the Long-Term Incentive Program, the Committee
shall consider management’s proposals and analysis and any and all other information that the
Committee deems relevant to its determination. The Committee shall have the sole discretion to
accept, reject or modify management’s proposed Awards. The Committee shall also have the discretion
to designate an aggregate amount of Awards for a group of Participants, other than named executive
officers, to be allocated to individual Participants at the discretion of the Chief Executive
Officer.

6.     Elective Restricted Stock Award.

     In addition to any Award made available pursuant to Section 5 above, each year a
Participant shall be entitled (i) to reduce Base Salary for the succeeding year (the “Reduction
Year”) by a percentage amount which shall be applied to the acquisition of Restricted Stock (the
“Acquisition Shares”), and (ii) to receive an Award based upon a multiple of the Acquisition Shares
determined by the restriction period selected by the Participant (the “Restriction Multiple”).

     6.1     Acquisition Shares. The percentage of Base Salary that Participant may elect to be
reduced and applied to Acquisition Shares must be minimum of 5% and may be increased by increments
of 5% to a maximum of 40% of Base Salary. The elected percentage of Base Salary shall be divided
by the closing market price of the Company’s stock on the last business day of the year to
determine the number of Acquisition Shares. The amount of Base Salary applied to the acquisition
of Restricted Stock shall reduce Base Salary of Participant for the Reduction Year.

     6.2     Restriction Multiple. The Restriction Multiple shall be determined by
Participant’s selection of a restriction period of three, five or eight years. The Restriction
Multiple shall be: 1.3 for a restriction period of three years; 1.5 for a restriction period of
five years; or 2.0 for a restriction period of eight years.

 

 

     6.3.     Election Notice. Each Participant must deliver written notice of Participant’s
election to obtain an Award pursuant to this Section 6 to the Director of Human Resources of the
Company no later than the last business day prior to the beginning of the Reduction Year. The
notice shall contain the percentage reduction in Base Salary and the restriction period selected by
Participant. Unless otherwise approved by the Director of Human Resources, the election shall be
irrevocable by Participant.

     6.4     The Award. The product of the Restriction Multiple times the Acquisition Shares
shall be the number of shares constituting an Award pursuant to this Section 6. Awards determined
pursuant to this Section 6 shall be delivered to each Participant as soon as practicable, but prior
to the record date for payment of the dividend declared in January of the Reduction Year. Each
Participant must be an employee of the Company at the date of the delivery of the Award to receive
the Award. In the event that a Participant ceases to be an employee of the Company subsequent to
delivery of the election described in 6.3 and the date of delivery of the Award, the Participant
shall be entitled to receive the amount by which Base Salary had been reduced pursuant to Section
6.1, but no other amount or Award.

7.     Termination of Employment. In the event of termination of a Participant’s employment,
the disposition of any unvested Awards will be determined in accordance with such Participant’s
written employment agreement. If a Participant is not employed pursuant to a written employment
agreement and voluntarily terminates his or her employment, or is terminated for Cause (as such
term is defined in the Plan), such Participant will forfeit any unvested Awards. If a Participant
is not employed pursuant to a written employment agreement and such employment is terminated by HR
without Cause, or by reason of Participant’s retirement (upon attainment of eligibility to retire
in accordance with any applicable Company policy then in effect) all unvested Awards will
immediately vest. The provisions of Section 10 of the Plan will govern in the event of a Change of
Control and are not intended to be altered by this Section 7.

8.     Amendments. The Committee may from time to time amend or modify this Long-Term Incentive
Program, provided that no such action shall adversely affect Awards previously granted hereunder.

9.     Survival.     The Long-Term Incentive Program shall continue in effect as long as the Plan
is in effect or until terminated by the Committee.

Adopted by the Committee on December 10, 2007.

	 	 	 	 	 
	 	  	/s/
Edwin B. Morris III

 	 
	 	 	Edwin B. Morris III, Chairman 	 
	 	 	 	 

	 	 	 	 	 
	 	  	/s/ J. Knox Singleton
 	 
	 	 	J. Knox Singleton 	 
	 	 	 	 

	 	 	 	 	 
	 	  	/s/ C. Raymond Fernandez, M.D.

 	 
	 	 	C. Raymond Fernandez, M.D.EX-10(Z)

 

Exhibit 10(z)

KEITHLEY INSTRUMENTS, INC.

2005 EMPLOYEE STOCK PURCHASE AND DIVIDEND REINVESTMENT PLAN

(As Amended August 2007)

Section I — Purpose

          This 2005 Employee Stock Purchase and Dividend Reinvestment Plan (the “Plan”) is adopted and
established by Keithley Instruments, Inc., an Ohio corporation (the “Company”), effective as of
June 1, 2005, subject only to appropriate approval by its shareholders, for the general benefit of
the employees of the Company and certain of the Company’s subsidiary corporations. The purpose of
the Plan is to facilitate the purchase by eligible employees of common shares, without par value,
of Keithley Instruments, Inc. (“Stock”). The Plan is intended to meet the requirements of Section
423 of the Internal Revenue Code of 1986, as amended (the “Code”).

Section II — Agent

          National City Bank, Cleveland, Ohio, is hereby appointed to act as agent of the Company and of
the participants under this Plan (the “Agent”).

Section III — Eligible Employees

          (a) In General. All employees of the Company, and all employees of those subsidiary
corporations (as defined in Section 424 of the Code) identified and listed in Attachment A hereto
(as modified by the Chief Financial Officer of the Company, no more frequently than annually), are
eligible to participate in the Plan, other than temporary employees of the Company or any
such subsidiary corporation who (i) customarily are employed for less than five (5) months in any
calendar year, or (ii) customarily work twenty (20) hours or less per week. All individuals who
satisfy the requirements set forth in the preceding sentence (individually, an “Eligible Employee,”
and collectively, “Eligible Employees”) shall be granted rights to purchase Stock hereunder, so
long as they continue to satisfy such requirements, and shall have the same rights and privileges
as every other such Eligible Employee.

          (b) Limitations on Rights. An Eligible Employee shall not be entitled to purchase
Stock under the Plan if (i) such purchase would cause such Eligible Employee to own Stock
(including any shares of Stock which would be owned if such Eligible Employee purchased all of the
Stock made available for purchase by such Eligible Employee under all options or rights then held
by such Eligible Employee, whether or not then exercisable) representing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the Company or any
subsidiary corporation; or (ii) such purchase would cause such Eligible Employee to have rights to
purchase more than $25,000 of Stock under the Plan (and under all other stock purchase plans of the
Company and its subsidiary corporations which satisfy the requirements of Section 423 of the Code)
for any calendar year in which such rights are outstanding (based on the fair market value of such
Stock, determined as of the commencement date of the Subscription Period and otherwise in
accordance with Section IV(b) hereof). For purposes of clause (i) of this subparagraph (b), the
attribution rules set forth in Section 424(d) of the Code and related regulations shall apply. For
purposes of applying the $25,000 limitation of clause (ii) of this subparagraph (b), the number of
shares of Stock eligible for purchase in one Plan Year may not be carried over to any other Plan
Year; provided, that the $25,000 limitation will be determined on a calendar year basis and
not a Plan Year basis. In applying the limitation of clause (ii) of this subparagraph (b), in the
event an option to purchase shares of Stock is outstanding in more than one calendar year because
the Subscription Period extends across two calendar years, an Eligible Employee shall have the
right to

 

 

purchase up to $50,000 of Stock under the Plan for such Subscription Period, but applying such
limit first to the first calendar year in which such option is outstanding and after taking into
account all other stock purchased for such Eligible Employee hereunder. In the event more than one
Subscription Period is in affect with respect to an Eligible Employee during the course of a given
calendar year, the $25,000 limitation of clause (ii) of this subparagraph (b) shall be applied
first to that Subscription Period with the earliest commencement date.

Section IV — Enrollment and Subscription Periods

          (a) Enrolling in the Plan. To participate in the Plan, an Eligible Employee must
enroll in the Plan. Enrollment for a given Plan Year, and for each Subscription Period commencing
during such Plan Year, will take place during the “Enrollment Period,” which shall consist of no
less than a thirty (30)-day period and no greater than a forty-five (45) day period and be held
within the ninety (90-day period immediately preceding the commencement of the Subscription Period
to which such Enrollment Period relates. The initial Enrollment Period shall commence June 1, 2005
and end June 30, 2005 (inclusive), and apply with respect to the rights granted under the Plan for
the Plan Year commencing July 1, 2005 (or if later, the effective date of the registration
statement to be filed in accordance with Section XIX(a) hereof).

          (b) The Subscription Period. There shall be at least one subscription period (a
“Subscription Period”) each and every 12 months during the term of this Plan. The duration of each
Subscription Period shall be established by the Board of Directors of the Company (the “Board”), or
by a standing committee of the Board as the Board’s delegee, but in any event acting in the Board’s
(or such delegee’s) discretion. If not otherwise established by the Board, the Subscription Period
for a Plan Year shall commence on the first day of July and ending on the following June 30th
.

          (c) Subscription Agreement. Any employee who is an Eligible Employee and desires to
subscribe to purchase Stock under the Plan must make and file with the Company a subscription
agreement that complies with Section VIII hereof during the applicable Enrollment Period. Such
agreement shall be effective solely for the Subscription Period immediately following such
Enrollment Period. A new subscription agreement must be submitted to the Company for each
Subscription Period.

Section V — Term of Plan

          This Plan shall be in effect from the date of its adoption until it is terminated by action of
the Board. The Plan shall be submitted to the shareholders of the Company for approval as soon as
practical, but in any event not later than 12 months after the date of its adoption by the Board.

Section VI — Number of Shares of Stock to be Made Available

     The total number of shares of Stock made available for purchase by Eligible Employees
hereunder is Five Hundred Thousand (500,000), which may be authorized but unissued shares, treasury
shares, or shares purchased for or on behalf of the Plan in the open market. When such shares of
Stock are fully subscribed, the Plan shall either be continued through additional authorizations of
shares made by the Board, or shall be terminated in accordance with Section XVII hereof.

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Section VII — Subscription Price

          (a) Presumptive Subscription Price. Unless modified by the Board in accordance with
Section VII(b), the “Subscription Price” for each share of Stock purchased for an Eligible Employee
during a Subscription Period shall be 95% of the fair market value of the Stock, determined as of
the last day of such Subscription Period. The fair market value of the Stock will be determined in
accordance with Section VII(c) hereof.

          (b) Modification of Subscription Price. The Board, in its discretion, may modify the
Subscription Price set forth in Section VII(a) above by written action taken prior to the beginning
of the Subscription Period for which such modification is to be effective. In the event the Board
adopts a modified Subscription Price, such Subscription Price shall not be less than the lowest
fair market value of a share of such Stock within the twelve (12) month period immediately
preceding the first day of the applicable Subscription Period, and shall not be greater than the
highest fair market value of a share of such Stock within the twelve month period immediately
preceding the first day of the applicable Subscription Period. Notwithstanding the preceding
sentence to the contrary, in no event will the Subscription Price of a share of Stock be the lesser
of (i) 85% of the fair market value of a share of such Stock on the last trading day before the
first day of each Subscription Period (which for Plan purposes shall be considered the date the
right to purchase such Stock is granted to, and first exercisable by a Participant); or (ii) 85% of
the fair market value of such share of such Stock on the last trading day of such Subscription
Period (which for Plan purposes shall be considered the date each such right to purchase such Stock
is actually exercised).

          (c) Determining The Price of Stock. For purposes of this Section, the fair market
value of a share shall be the last reported sale price on the New York Stock Exchange or such other
stock exchange on which a share of Stock is listed on the day in question (or if there is no
reported sale on that day, on the most recent previous trading day).

Section VIII — Amount of Contribution; Method of Payment

          (a) Payroll Withholding. Except as otherwise specifically provided herein, the
Subscription Price will be payable by each Participant by means of payroll withholding. The
minimum withholding shall be equal to twenty dollars ($20.00) per month from a Participant’s Base
Pay; the maximum withholding shall be an amount equal to one hundred percent (100%) of a
Participant’s Base Pay (rounded to the nearest dollar), subject to any applicable tax or other
withholding limitations. In any event, the total withholding permitted to be made by any
Participant for a Subscription Period or Subscription Periods shall not exceed $23,750 for each
calendar year as prescribed by Section 423(b)(8) of the Code. The actual amount of Base Pay to be
deducted shall be specified by a Participant in his or her authorization for payroll withholding.
For any Participant not maintained on the Company’s payroll, such Participant shall be required to
satisfy the Subscription Price by tendering to the Company (or its delegee) an amount, by wire,
money order or check drawn against an account with sufficient funds, that satisfies such
Participant’s Subscription Price.

          (b) Base Pay. For purposes of paragraph (a), above, “Base Pay” means the regular
compensation which a Participant is entitled to receive on a pay day. Base Pay shall not include
overtime, bonuses, or other items which are not considered to be regular earnings.

          (c) Application of Withholding Rules. Payroll withholding will commence with the
first paycheck issued during the Subscription Period and will continue with each paycheck
throughout the entire Subscription Period, except for pay periods for which a Participant receives
no compensation (i.e., uncompensated personal leave, leave of absence, etc.). Any pay
period which overlaps two Subscription

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Periods will be credited in its entirety to the Subscription Period in which it is paid.
Payroll withholding shall be retained by the employer or other party responsible for making payment
to the Participant, until applied to the purchase of shares as described in Section IX and the
satisfaction of any related federal, state or local withholding obligations (including any
employment tax obligations), or until returned to such Participant in connection with a withdrawal
from the Plan or a revocation of authorization described in Section XIII. Any amounts held by an
employer or other party in connection with or as a result of payroll withholding made pursuant to
the Plan and pending the purchase of shares hereunder shall be considered non-interest bearing,
unsecured indebtedness extended to such employer or other party by such Participant.

          (d) Contribution Adjustments for Uncompensated Leaves. If a Participant has an
uncompensated personal leave or other leave of absence such that no payroll withholding is made and
takes no further action, the contribution for the applicable Subscription Period for such
Participant will be adjusted accordingly. Upon a Participant’s return from an uncompensated
leave, such Participant may elect to (a) make additional contributions or (b) adjust the amount of
payroll withholding once the Participant returns to active employment, so long as the aggregate
amount credited to such Participant’s Plan Account (defined below) does not exceed the limitation
set forth in Section III (b) or the amount originally indicated in the Subscription Agreement.

Section IX — Purchasing, Transferring Stock

          (a) Maintenance of Plan Account. The Company shall maintain a “Plan Account” in the
name of each Participant. At the close of each pay period, the amount deducted and retained by the
employer or other party from a Participant’s Base Pay will, for bookkeeping purposes only, be
credited by the Company to such Participant’s Plan Account. As of the last day of each
Subscription Period (unless a Participant has given written notice to the Company of his or her
withdrawal or revocation of authorization), such Participant’s right to purchase Stock will be
exercised automatically for him or her; upon such automatic exercise, the amount then credited to
such Participant’s Plan Account for the purpose of purchasing shares will be divided by the
Subscription Price for such Subscription Period (using the applicable discount determined pursuant
to Section VII(a) hereof), and there shall be transferred to such Participant’s Plan Account by the
Agent the number of shares of Stock which results. Participants shall not receive any interest on
amounts held by an employer, the Company, or any other party (including the Agent) and credited to
Plan Accounts established and maintained under this Plan.

          (b) Insufficient Number of Available Shares. In the event the number of shares of
Stock subscribed for any Subscription Period exceeds the number of shares of Stock available for
sale under the Plan for such Period, the number of shares of Stock actually available for sale
hereunder shall be allocated by the Agent among the Participants in proportion to that portion of
their Plan Account balances committed to the purchase of Stock for such Subscription Period.

          (c) Handling Excess Shares. In the event that the number of shares of Stock which
would be credited to any Participant’s Plan Account in any Subscription Period exceeds the limit
specified in Section III(b) hereof, such Participant’s Account shall be credited with the maximum
number of shares permissible, and all remaining amounts will be refunded in cash.

          (d) Status Reports. As soon as practical following the close of each Subscription
Period but in no event more than thirty (30) days following the close of such Subscription Period,
the Agent shall report to each Participant the number of shares of Stock purchased on his or her
behalf for such Subscription Period, and the total shares held on behalf of such Participant in his
or her Plan Account. The Agent shall hold in its name or in the name of its nominee all shares so
purchased and allocated. No certificate will be issued to a Participant for shares held in his or
her Plan Account unless

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he or she so requests in writing, or unless such Participant’s active participation in the
Plan is terminated due to death, separation from service or retirement.

          (e) In Service Stock Withdrawals. A Participant may request that a certificate for
all or part of the full shares of Stock held in his or her Plan Account be sent to him or her after
the relevant shares of Stock have been purchased and allocated. All such requests must be
submitted in writing to the Agent. No certificate for a fractional share will be issued. The fair
market value of any fractional shares, as determined pursuant to Section VII on the date of
withdrawal of all shares credited to a Participant’s Plan Account, shall be paid in cash to such
Participant. Any Participant requesting issuance of a Stock certificate prior to the date active
participation ceases shall be solely responsible for paying and discharging all applicable fees and
other associated with such issuance prior to the date any distribution of a certificate evidencing
ownership of such shares occurs.

Section X — Dividends and Other Distributions

          (a) Reinvestment of Dividends. Cash dividends and other cash distributions received
by the Agent on shares held in its custody hereunder will be credited to the Plan Accounts of
individual Participants in accordance with their interests in the shares of Stock with respect to
which such dividends or distributions are paid or made, less any applicable withholding, and will
be applied, as soon as practical after the receipt thereof by the Agent, to the purchase in the
open market at prevailing market prices (without any adjustment or discount otherwise provided for
under Section VII hereof) of the number of whole shares of Stock capable of being purchased with
such funds, after deduction of any bank service fees, brokerage charges and transfer taxes payable
in connection with the purchase of such shares that are not otherwise paid by the Company.

          (b) Stock to Be Held in Agent’s Name. All purchases of shares of Stock made pursuant
to this Section will be made in the name of the Agent or its nominee, shall be held as provided in
Section IX hereof, and shall be transferred and credited (to the nearest one one-thousandth of a
share) to the Plan Accounts of the individual Participant(s) to which such dividends or other
distributions were credited. Dividends paid in the form of Stock will be allocated by the Agent,
as and when received, with respect to shares held in its custody hereunder to the Plan Accounts of
individual Participants (to the nearest one one-thousandth of a share) in accordance with such
Participants’ interests in such shares with respect to which such dividends were paid. Property,
other than shares of Stock or cash, received by the Agent as a distribution on shares held in its
custody hereunder, shall be sold by the Agent for the accounts of those Participants to whom such
property is attributable or allocable, and the Agent shall treat the proceeds of such sale in the
same manner as cash dividends received by the Agent on shares held in its custody hereunder.

          (c) Tax Responsibilities. It is understood that the automatic reinvestment of
dividends under the Plan will not relieve a Participant or other employee of any federal, state,
local, or foreign income or other tax which may be due on or with respect to such dividends. The
Agent shall report to each Participant the amount of dividends credited to his or her Plan Account.

          (d) Withholding on Payments Made to Non-Resident Aliens. The Agent shall be
authorized and empowered to comply with any and all federal withholding laws relating to the
payment of income items to non-resident aliens.

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Section XI — Voting of Stock

          Shares of Stock held for a Participant in his or her Plan Account will be voted in accordance
with such Participant’s express written directions. In the absence of any such directions, such
Stock will not be voted.

Section XII — Sale of Stock

          Subject to the provisions of Section XIX, a Participant may direct the Agent to sell all or
part of the shares held on behalf of such Participant at any time, without having to first withdraw
any shares of Stock from the Plan, by giving written notice to the Agent. Upon receipt of such a
notice, the Agent shall, as soon as practical thereafter, sell such shares in the open market at
the prevailing market price and transmit the net proceeds of such sale (less any bank service fees,
brokerage charges and transfer taxes) to such Participant, but only so long as such Participant’s
signature is guaranteed by a bank or trust company.

Section XIII — Withdrawals from the Plan

          (a) General Rule. By giving written notice to the Company, a Participant may at any
time withdraw from the Plan or, without withdrawing from the Plan but by giving written notice to
the Company, revoke his or her authorization for payroll deduction for the Subscription Period in
which such revocation is made. In the event a Participant withdraws from the Plan or revokes such
authorization, such Participant may withdraw the amount credited to such Participant’s Plan Account
which has not previously been used to purchase shares of Stock.

          (b) Refund of Amounts Not Used to Purchase Shares. At the time of any withdrawal or
revocation under this Section, the amount credited to a Participant’s Plan Account which has not
previously been used to purchase shares of Stock will be refunded in cash.

          (c) Withdrawal of Shares. Upon any withdrawal under this Section, a Participant, in
his or her notice of withdrawal election, may elect to receive either shares of Stock or cash for
the full number of shares of Stock then being held in his or her Plan Account. If a Participant
elects cash, the Agent shall sell such shares (whether in the open market, or otherwise) and send
the net proceeds (less any bank service fees, brokerage charges and transfer taxes) to such
Participant, but only if such Participant’s signature on such election has been guaranteed by a
bank or trust company. If no election is made in a notice of withdrawal, a certificate shall be
issued for all full shares of Stock held in such Participant’s Account. In every case of
withdrawal from the Plan, fractional shares allocated to a Participant’s Plan Account will be paid
in cash at the market value of such Stock on the date such withdrawal becomes effective, as
determined pursuant to Section VII.

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Section XIV — Separation from Employment

          Separation from employment for any reason, including death, disability, a termination of
employment (regardless of the reason(s) therefore) shall be treated as a withdrawal from the Plan
as described in Section XIII. For purposes of this Section XIV, an Eligible Employee will not be
deemed to have terminated employment or failed to remain in the continuous employ of the Company,
or to have ceased to qualify as an Eligible Employee, in the event such employee is absent from
active employment due to sick leave, military leave of absence, a leave of absence required to be
provided pursuant to the Family and Medical Leave Act of 1993 or any other leave of absence
approved by the Committee or required by applicable federal, state, or local law; provided, that
such leave is for a period of not more than ninety (90) consecutive days or such Employee holds
reemployment rights with the Company that are protected by state or federal statute. A service
fee will not be charged for any withdrawal attributable to a separation from employment.

Section XV — Assignment

          No Eligible Employee, Participant, or other person, may assign, alienate, or otherwise
transfer his or her right or rights to purchase Stock under this Plan to any other person or party;
any attempt to so assign, alienate or transfer shall be void. A Participant’s right to purchase
Stock under this Plan may be exercisable during such Participant’s lifetime only by that
Participant.

Section XVI — Adjustment of and Changes in Stock

          In the event that the shares of Stock are changed or converted into, or exchanged for, a
different number or kind of shares of stock or other securities of the Company or of another
corporation (whether by reason of merger, consolidation, recapitalization, split-up, combination of
shares, or otherwise), or the number of shares of Stock are changed through a stock split or the
payment of a stock dividend, there shall be substituted for or added to each share of Stock
theretofore reserved for sale and/or issuance under the Plan, the number and kind of shares of
stock or other securities into which each outstanding share of Stock shall be so changed or
converted, or for which each such share shall be exchanged, or to which each such share shall be
entitled, as the case may be.

Section XVII — Amendment or Termination of the Plan

          The Board shall have the right to amend, modify or terminate the Plan at any time without
notice; however, no Participant’s existing rights shall be adversely affected by any such
amendment, modification or termination. In any event, any such amendment or modification that
materially increases the benefits accruing to Participants under the Plan; or increases in any
respect the number of shares of Stock permitted to be issued under the Plan; or materially modifies
the eligibility requirements for Plan participation; or changes the designation of those
corporations whose employees are eligible to participate in the Plan (other than another parent or
subsidiary of the Company); shall not take affect, or otherwise become effective, until after such
amendment or modification has received the approval of the holders of a majority of the voting
power of the shares of Stock.

Section XVIII — Administration

          (a) Committee To Administer. The Plan shall be administered by a Committee, which
shall be appointed by the Company’s president and consist of at least two employees of the Company
or of a subsidiary corporation. The Committee shall be responsible for the administration of all
matters under the Plan which have not been delegated to the Agent.

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          (b) Specific Responsibilities. The Committee’s responsibilities shall include, but
shall not be limited to,

          (i) interpreting the Plan (including issues relating to the definition and
application of “Base Pay”);

          (ii) identifying and compiling a list of persons who are Eligible Employees for a
Plan Year;

          (iii) identifying those Eligible Employees not entitled to be granted options or
other rights for a Plan Year on account of the limitations described in Section
III(b) hereof; and

          (iv) providing prompt notice to the Agent of the enrollment of Eligible Employees,
the amounts to be credited to Participants’ Plan Accounts, and any written notices
of withdrawal or revocation of any authorization filed with the Committee by
individual Participants.

The Committee may from time to time adopt rules and regulations for carrying out the Plan.
Interpretation or construction of any provision of the Plan by the Committee shall be final,
conclusive and binding on all persons, absent specific and contrary action taken by the Board. Any
interpretation or construction of any provision of the Plan by the Board or a committee thereof
shall be final, conclusive and binding.

Section XIX — Securities Law Restrictions

          Notwithstanding any provision of the Plan to the contrary:

          (a) Need For Registration Statement. No shares of Stock shall be purchased or issued
under the Plan until a registration statement has been filed and become effective with respect to
the issuance of the Stock covered by the Plan under the Securities Act of 1933, as amended (the
“Act”). Prior to the effectiveness of such registration statement, Stock subject to purchase under
the Plan may be offered to Eligible Employees only pursuant to an exemption from the registration
requirements of the Act.

          (b) Compliance With Blue Sky Laws. No payroll deduction shall take place and no
shares of Stock shall be purchased or issued under the Plan with respect to Eligible Employees
resident in any state unless such shares of Stock are exempt from registration under the securities
laws of such state, or such purchase or issuance constitutes an exempt transaction under the
securities laws of such state or comprises part of a purchase or issuance that has been registered
by description, qualification, coordination or otherwise under the securities laws of such state.

Section XX — No Independent Employment Rights

          Nothing in the Plan shall be construed to form, or to constitute evidence of, a contract of
employment between the Company and any employee, or any group or category of employees (whether for
a definite or specific duration or otherwise), or to prevent the Company, its parent or any
subsidiary from terminating any employee’s employment at any time, without notice or recompense.
No employee shall have any rights as a shareholder until the right to purchase Stock has been
exercised as of the last trading day of a Subscription Period.

Page 8

 

Section XXI — Agent Powers and Duties

          (a) Acceptance. The Agent accepts the agency created under this Plan and agrees to
perform the obligations imposed hereunder.

          (b) Receipt of Shares and Dividends. The Agent shall be accountable to each
Participant for shares of Stock held in such Participant’s Plan Account, and for dividends received
with respect thereto.

          (c) Records and Statements. The records of the Agent pertaining to the Plan shall be
open to the inspection of the Company at all reasonable times and may be audited from time to time
by any person or parties specified by the Company in writing. The Agent shall furnish the Company
with whatever information relating to the Plan Accounts the Company considers necessary, including,
without limitation, any information required to be furnished to Participants each January 31
pursuant to Section 6039(a)(2) of the Code and related regulations.

          (d) Fees and Expenses. The Agent shall receive from the Company reasonable annual
compensation as may be agreed upon from time to time between the Company and the Agent.

          (e) Resignation. The Agent may resign at any time as Agent of the Plan by giving
sixty (60) days written notice in advance to the Company.

          (f) Removal. The Company, by giving sixty (60) days written notice in advance to the
Agent, may remove the Agent. In the event of the resignation or removal of an Agent, the Company
shall promptly appoint a successor Agent, so long as it intends to continue the Plan.

          (g) Interim Duties and Successor Agent. Each successor Agent shall succeed to the
title of the Agent vested in its predecessor by accepting in writing its appointment as successor
Agent and filing the acceptance with the former Agent and the Company without the signing or filing
of any further statement. The resigning or removed Agent, upon receipt of acceptance in writing of
the agency by the successor Agent, shall execute all documents and do all acts necessary to vest
the title in any successor Agent. Each successor Agent shall have and enjoy all of the powers
conferred under this Plan upon its predecessor. No successor Agent shall be personably liable for
any act or failure to act of any predecessor Agent. With the approval of the Company, a successor
Agent, with respect to the Plan, may accept the account rendered and the property delivered to it
by a predecessor Agent without incurring any liability or responsibility for so doing.

          (h) Limitation of Liability to Participants. The Agent shall not be liable hereunder
for any act or failure to act, including without limitation, any claim of liability (i) arising out
of a failure to terminate a Participant’s Plan Account upon such Participant’s death or
adjudication of incompetency, prior to the receipt by the Agent of notice in writing of such death
or incompetency; or (ii) with respect to the price(s) at which shares of Stock are purchased or
sold for a Participant’s Plan Account, or the timing of any such purchase(s) or sale(s).

Section XXII — Applicable Law

          The Plan shall be construed, administered and governed in all respects under the laws of the
State of Ohio.

Page 9

 

Attachment A

to

KEITHLEY INSTRUMENTS, INC.

1993 EMPLOYEE STOCK PURCHASE AND DIVIDEND REINVESTMENT PLAN

 List of Participating Subsidiary Corporations

Keithley Instruments, GMBH

Keithley Instruments, Ltd.

Keithley Instruments, SARL

Keithley Instruments, BV

Keithley Instruments, Srl

Keithley Instruments, KK

Keithley Instruments, SA

Keithley Instruments International Corporation

Keithley Instruments Sdn Bhd

Page 10

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