Document:

gogo-ex10146_184.htm

Exhibit 10.1.46

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

THE USE OF THE FOLLOWING NOTATION IN THIS EXHIBIT INDICATES THAT THE CONFIDENTIAL PORTION HAS BEEN OMITTED PURSUANT TO ITEM 601(b)(10)(iv) WHEREBY CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED: [***]

AMENDED AND RESTATED AMENDMENT THREE (TO Unified In-Flight Connectivity Hardware, 

Services and Maintenance Agreement)

This Amended and Restated Amendment Three (this “Amendment”) to the Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement, dated as of February 1, 2017, as previously amended (as so amended, the “Original Agreement”), by and between American Airlines, Inc. (“American”) and Gogo LLC (“Gogo”) (collectively the “Parties” and individually a “Party”), is entered into on April 15, 2020 (the “Execution Date”), and made effective as of October 1, 2019 (the “Amendment and Restatement Effective Date”). 

Whereas, American desires to continue to provide IPTV Services on Retrofit A/C in the 2Ku Fleet to provide live television programming to passengers on such aircraft; 

Whereas, American and DISH Network LLC (“Dish”) have entered into an agreement under which American has been granted rights by Dish to receive, distribute, transmit, exhibit and display certain live television programming on the Retrofit A/C in the 2Ku Fleet (the “AA-Dish Agreement”); 

Whereas, Gogo, American, and Dish have entered into an agreement under which Dish granted all licenses to Gogo that are required for Gogo to provide the IPTV Services to American (the “Gogo-American-Dish Agreement”); 

Whereas, Gogo and American have previously amended the Original Agreement to reflect the addition of IPTV Services on the Retrofit A/C in the 2Ku Fleet pursuant to that certain Amendment Three to the Original Agreement between the Parties dated September 4, 2018 (the “Prior IPTV Amendment”) and IPTV Services have been provided pursuant to the Prior IPTV Amendment from the September 4, 2018 (the “Prior IPTV Amendment Effective Date”) through the Amendment and Restatement Effective Date; and

Whereas, the Parties desire to amend and restate the Prior IPTV Amendment to the Original Agreement to reflect the continued provision of the IPTV Services on IPTV A/C as of the Amendment and Restatement Effective Date.

Now, Therefore, in consideration of the foregoing premises and the covenants contained herein, American and Gogo agree as follows:

 

American Airlines Confidential and Proprietary

NY: 1199493-24

Page 1

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
1.
	
Amendments to Original Agreement.

	
 
	
A.
	
Section 9.4.4 of the Original Agreement is deleted in its entirety and replaced with the following:

	
 
	
9.4.4
	
IPTV Services. Gogo shall provision IPTV Services to the Retrofit A/C in the 2Ku Fleet as described in Exhibit R (the “IPTV A/C”), at pricing set forth in Exhibit D.

	
 
	
B.
	
The following shall be added to Section 17 of the Original Agreement:

	
 
	
17.2.9
	
Gogo shall provide notice to American in the event of any (i) actual or alleged breach of the Gogo-American-Dish Agreement, or (ii) actual, or threat of, early termination of the Gogo-American-Dish Agreement, in each case (i) and (ii), by either Gogo or Dish. In the event of any occurrence of subpart (i) or (ii), Gogo shall work with American in good faith in an attempt to resolve the issues between Gogo and Dish leading to such occurrence (including by allowing American to cure any default). In the event that the breach cannot be cured, Gogo retains its right to terminate the Gogo-American-Dish Agreement as set forth therein. In no event will Gogo disrupt or suspend the IPTV Services due to an actual or alleged breach of the Gogo-American-Dish Agreement by Dish without first giving Dish and American a [***] to cure such breach, provided that the breach is curable within such period.

	
 
	
17.2.10
	
Gogo will use best efforts to maintain the Gogo-American-Dish Agreement.

	
 
	
C.
	
The following is added as Section 21.1(g) of the Original Agreement:

(g) in addition to the indemnification obligations under the Gogo-American-Dish Agreement, a breach of Section 1(a) of the Gogo-American-Dish Agreement; provided that for purposes of this Section 21.1(g), Dish will not be considered a third party. 

	
 
	
D.
	
Section 2.3 of Exhibit D is deleted in its entirety and replaced with:

	
 
	
2.3
	
Fees for the IPTV Services during the IPTV Term are as follows (collectively, the “IPTV Service Fees”):

[***]

	
 
	
E.
	
Item 9 of the table in Section 1.2 of Exhibit I is deleted in its entirety and replaced with:

[***]

American Airlines Confidential and Proprietary

 

Page 2

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
 
	
F.
	
The following shall be added to the end of the table in Section 1.2 of Exhibit I:

[***]

	
 
	
G.
	
Section 5 of Exhibit J-1 is deleted in its entirety and replaced with the following:

	
 
	
a.
	
[***]

	
 
	
b.
	
[***]

	
 
	
c.
	
[***] 

	
 
	
ii.
	
i.

	
 
	
d.
	
[***] 

	
 
	
i.
	

	
 
	
e.
	
[***] 

	
 
	
f.
	
[***]

	
 
	
g.
	
[***]

	
 
	
H.
	
A new Section 6 is added to Exhibit K as follows: 

	
 
	
6.
	
IPTV Services Dashboard

General. IPTV Services Dashboard: Gogo shall provide American a Dashboard that shall include analytics for the IPTV Services (the “IPTV Services Dashboard”) substantially in the form set forth in Figure K-1. 

	
 
	
6.1.
	
At a minimum, the IPTV Services Dashboard shall include the following information updated at least once daily. The Parties shall discuss in good faith the addition of additional metrics to the IPTV Services Dashboard.

	
 
	
6.1.1.
	
Number of IPTV Users and views on a per IPTV Channel and per flight basis.

	
 
	
6.1.2.
	
The click through rate and IPTV take rate for the channels presented in the IPTV EPG, where “take rate” refers to the ratio, expressed as a percentage, of Users viewing a particular channel to the number of passengers on a particular flight”.

American Airlines Confidential and Proprietary

 

Page 3

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
 
	
6.1.3.
	
Availability and media quality of the IPTV multicast stream as measured on each IPTV A/C, including Channel Availability, EPG Availability and Average IPTV Video Quality information.

	
 
	
6.1.4.
	
The number of active IPTV A/C on which the IPTV Services are deployed.

	
 
	
6.2.
	
Within [***] of the end of each calendar month, Gogo shall provide to American a report in Microsoft Excel format that includes (a) the Output IPTV Availability, and (b) Output eMOS information for the preceding calendar month. Gogo shall use its best efforts to make the Output IPTV Availability and Output eMOS available on a minute-by-minute basis and within the IPTV Services Dashboard.  

	
 
	
6.3
	
Gogo will report on applicable metrics on a gate-to-gate basis provided that Gogo’s obligations pertaining to IPTV metrics and IPTV SLC are limited to IPTV Services above 10,000 feet for all IPTV A/C.  

	
 
	
I.
	
Exhibit R is deleted in its entirety and replaced with Exhibit R attached to this Amendment.

	
2.
	
Entire Agreement/Amendment. This Amendment constitutes the full and complete understanding of the Parties, as of the Amendment and Restatement Effective Date, with respect to the subject matter of this Amendment and supersedes all prior agreements, including, subject to the next sentence, the Prior IPTV Amendment, and understandings between the Parties with respect to the subject matter. This Amendment will control from the Amendment and Restatement Effective Date on a prospective basis only and the Prior IPTV Amendment will control with respect to obligations therein for the period from the Prior IPTV Amendment Effective Date to the Amendment and Restatement Effective Date. This Amendment may be modified only by written agreement signed by an authorized representative of each Party. 

	
3.
	
Effectiveness of Agreement/Definitions. Except as specifically amended by this Amendment, the Original Agreement remains in full force and effect. All capitalized terms used but not defined herein shall have the respective meanings applied to them in the Original Agreement.

American Airlines Confidential and Proprietary

 

Page 4

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
4.
	
Counterparts. This Amendment may be executed in counterparts, each of which shall constitute an original but all of which together shall constitute one and the same instrument, and if so executed in counterparts will be enforceable and effective upon the exchange of executed counterparts or the exchange of facsimile transmissions of executed counterparts. Each Party agrees that any electronic signatures of the Parties, in any form or format, included in this Amendment are intended to authenticate this writing and to have the same force and effect as manual signatures. For the purposes of this provision, 'electronic signature' means any electronic sound, symbol or process attached to or logically associated with a record and executed and adopted by a Party with the intent to sign such record, including e-mail signatures and processes developed by electronic signature services (e.g., DocuSign). 

 

[Signatures appear on the next page]

 

 

 

American Airlines Confidential and Proprietary

 

Page 5

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment as of the Execution Date.

 

					
	
GOGO LLC
	
 
	
AMERICAN AIRLINES, INC.

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Ben Murphy
	
 
	
By:
	
/s/ Kevin Brickner

	
 
	
 
	
 
	
 
	
 

	
Name:
	
Ben Murphy
	
 
	
Name:
	
Kevin Brickner

	
 
	
 
	
 
	
 
	
 

	
Title:
	
V.P., Accounts
	
 
	
Title:
	
SVP – Tech Ops

	
 
	
 
	
 
	
 
	
 

	
Date:
	
5/29/2020
	
 
	
Date:
	
4/28/2020

 

 

 

American Airlines Confidential and Proprietary

 

Signature Page to Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

Figure K-1

IPTV Dashboard

 

[***]

 

[***]

 

[***]

 

 

 

American Airlines Confidential and Proprietary

 

Figure K-1 Page 1

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

Exhibit R:

IPTV Services

This Exhibit R is intended to set forth the Parties’ respective rights and obligations with respect to IPTV Services. For the avoidance of doubt, except where the context of the Original Agreement otherwise requires, the equipment, software and services described herein shall constitute Equipment, Software and IPTV Services, respectively, as such terms are defined in the Original Agreement.

	
1.
	
Provision of IPTV Services.

	
 
	
1.1
	
Subject to Section 3 below, Gogo shall make the IPTV Services available to User’s PEDs on all Retrofit A/C equipped with the 2Ku Solution. The Parties acknowledge that the IPTV Services will not be available for any IPTV A/C operating in Unauthorized Airspace.  For any A/C to be added as a Retrofit A/C after the Execution Date, the Parties shall negotiate in good faith to add the IPTV Services to such A/C. 

	
 
	
1.2
	
In consideration of the fees set forth in Section 2.3 of Exhibit D, as between the Parties, Gogo is responsible for the acquisition or development, installation and maintenance of all Gogo provided hardware and software specifically required for the provision of the IPTV Services, and monitoring equipment (e.g., a Tektronix box). As between the Parties, Gogo shall house all SmartBox(es) within its facilities and shall be responsible for assisting with the maintenance and upkeep of the SmartBox(es), including notifying American and Dish of issues related to the SmartBox(es) of which it has become aware.

	
 
	
1.3
	
As between the Parties, American is responsible for obtaining the rights to provide audiovisual content to Users in connection with the IPTV Services. As of the Amendment and Restatement Effective Date, American has been granted the rights to receive, distribute, transmit, exhibit and display the television channels listed below on IPTV A/C (“IPTV Channels”). As of the Amendment and Restatement Effective Date, the IPTV Channels are as follows:

	
 
	
1.3.1
	
IPTV Channels:

 

	
 
	
1.
	
USA

	
 
	
2.
	
Disney Channel

	
 
	
3.
	
TNT

	
 
	
4.
	
Bravo

	
 
	
5.
	
WNBC

	
 
	
6.
	
WNYW

	
 
	
7.
	
CNBC

	
 
	
8.
	
Telemundo (National)

	
 
	
9.
	
ESPN

	
 
	
10.
	
CNN

	
 
	
11.
	
NFL Network

	
 
	
12.
	
WCBS

 

American Airlines Confidential and Proprietary

 

Exhibit R Page 1

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
 
	
1.4
	
American may provision the IPTV Services to its passengers for [***]. American’s sole payment obligations to Gogo for IPTV Services are set forth in Exhibit D, Exhibit R, related SOWs (if any) and amendments to any of the foregoing, regardless of any fee American may charge its passengers for the IPTV Services. 

 

	
2.
	
IPTV Services Term and Termination.

	
 
	
2.1
	
The term during which Gogo shall provide the IPTV Services (the “IPTV Term”) began on the Prior IPTV Amendment Effective Date and will continue until [***] for IPTV A/C, unless earlier terminated in accordance with the provisions of Section 18 of the Original Agreement or this Section 2 of Exhibit R.

	
 
	
2.2
	
American may terminate the IPTV Services at any time for any reason or no reason whatsoever on written notice to Gogo, to be effective no earlier than [***] following the delivery of such written notice to Gogo.

	
 
	
2.3
	
Upon any termination of the IPTV Services under this Section 2 of Exhibit R, the Parties will use commercially reasonable efforts and work together in good faith to develop a reasonable plan for the wind-down of the IPTV Services. For the avoidance of doubt, any termination of the IPTV Services under this Section 2 of Exhibit R will have no impact on any obligations either Party may have with respect to other portions of the Gogo Services.

	
3.
	
Geofencing.

	
 
	
3.1
	
As between the Parties, Gogo is responsible for ensuring that the IPTV Channels are not received, distributed, exhibited or displayed on any IPTV A/C located outside of the continental United States airspace for IPTV A/C departing from or arriving at destinations outside the continental United States (including the District of Columbia) or in airspace that precludes the transmission or receipt of IPTV Services due to applicable laws or regulations (the “Unauthorized Airspace”). The operation of the IPTV Services in order to receive, distribute, exhibit or display the IPTV Channels on IPTV A/C while such IPTV A/C is within the Unauthorized Airspace (“Unauthorized Exhibition”) is not authorized under this Amendment or the Original Agreement. Notwithstanding the foregoing, for the purposes of this section, the reception, distribution, exhibition and/or display of the IPTV Channels on flights flying city-pair routes between destinations within the continental United States (including the District of Columbia) shall be deemed within United States airspace unless such IPTV A/C enters Unauthorized Airspace during the applicable flight.

American Airlines Confidential and Proprietary

 

Exhibit R Page 2

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
4.
	
IPTV EPG Implementation.

	
 
	
4.1
	
Gogo shall ensure that the Portal includes an IPTV EPG that is substantially similar to the user interface illustrated in Figure R-1. The IPTV EPG shall include American Marks at American’s sole discretion. Gogo shall ensure that the IPTV EPG includes a Dish mark at all times, and the size, placement and display of such Dish mark shall remain consistent with the size, placement and display of such mark on the IPTV EPG as of the Amendment and Restatement Effective Date unless and until a change to size, placement or display of the Dish mark is requested by American in its reasonable discretion and agreed in a MCP executed by the Parties, provided that American represents and warrants it maintains the right to modify the Dish mark as requested. Figure R-1 provides an example of an acceptable use of a Dish mark. As between the Parties, Gogo shall be responsible for the development and implementation of the IPTV EPG as set forth in this Section 4.

	
 
	
4.2
	
Upon execution of a related MCP, Gogo shall include proximate to any link or icon included within the Portal where a User can directly access the IPTV EPG, text substantially similar to “Live TV by DISH” provided that the specific design, size, placement and display of such text will be in American’s reasonable discretion, provided that American represents and warrants it maintains the right to incorporate the subject text as proposed in the MCP. 

	
 
	
4.3
	
Subject to the execution of an MCP therefor, Gogo shall ensure that the IPTV EPG does not automatically direct any User to any IPTV Channel upon launch of the IPTV EPG or direct any User to any IPTV Channel other than the IPTV Channel selected by the User. The IPTV EPG may exhibit and display any and all IPTV content in a partial screen mode or obscure portions of such IPTV content to display: (a) a banner insertion constituting no more than the top 1/8 of the screen displaying only the American name and logo, the remaining flight time and weather conditions for the destination city; (b) messages required by the Federal Aviation Administration; (c) messages pertaining to and appearing during an American crew member’s use of an IPTV A/C’s intercom; (d) any other messages pertaining to the safety of the IPTV A/C, and (e) other content or information agreed by the Parties in writing (collectively, the “Permitted Information”) and/or any User Initiated UI Search. At all other times, Gogo shall ensure that the exhibition and display of any and all IPTV Channels are in full screen mode. As used herein, the term “User Initiated UI Search” means a User’s switching the display of IPTV content into partial screen mode in order to access the IPTV EPG or to exit the IPTV Services; provided that no other information or visual images may appear on the IPTV EPG while an IPTV Channel is being displayed in partial screen mode other than the Permitted Information, the names and logos of the channels, a Dish mark and the upcoming schedule of programming.

American Airlines Confidential and Proprietary

 

Exhibit R Page 3

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

	
 
	
4.4
	
In the event that: (i) an IPTV A/C flight itinerary has a departure or an arrival destination outside the continental United States (e.g., a flight from Dallas, Texas to Cancun, Mexico), then Gogo shall ensure that the IPTV EPG, or any screen containing any IPTV Channel, displays a message substantially similar to “Live television no longer available due to the aircraft’s departure from United States airspace” while such IPTV A/C is within the Unauthorized Airspace; and (ii) the IPTV Service is experiencing technical difficulties affecting the display of any IPTV Channel, then Gogo shall ensure that the IPTV EPG, or any screen containing any IPTV Channel, displays a message as agreed to by the Parties in a MCP.

	
 
	
4.5
	
Notwithstanding anything to the contrary in the Original Agreement or this Amendment, [***], Gogo shall deploy any and all visual and link changes in the IPTV EPG and portions of the Portal related to the IPTV Services requested by American (including any changes to links, color schemes, graphics, icons, logos, text, and sizes and placements of any of the foregoing) subject to the execution of a MCP by the Parties, which may be a no cost MCP depending on the nature and scope of the work contemplated.

	
5.
	
Technical Requirements. 

	
 
	
5.1
	
[***]

 

 

American Airlines Confidential and Proprietary

 

Exhibit R Page 4

 

	
	
Amended and Restated Amendment Three (to Unified In-Flight Connectivity Hardware, Services and Maintenance Agreement)

 

Figure R-1:

IPTV EPG Illustration

 

 

 

 

Figure R-1 Page 1gogo-ex1091_183.htm

Exhibit 10.9.1

 

STOCK OPTION AGREEMENT

STOCK OPTION AGREEMENT (the “Agreement”), dated as of the Grant Date set forth in the Notice of Grant (as defined below), between Gogo Inc., a Delaware corporation (the “Company”), and the Eligible Director whose name appears in the Notice of Grant (the “Participant”), pursuant to the Amended and Restated Gogo Inc. 2016 Omnibus Incentive Plan, as in effect and as amended from time to time (the “Plan”).  Capitalized terms that are not defined herein shall have the meanings given to such terms in the Plan.

	
1.
	
Confirmation of Grant, Option Price.

(a)Confirmation of Grant.  The Company hereby evidences and confirms the grant to the Participant of options to purchase the number of shares of Stock (the “Options”) set forth in the Amended and Restated Gogo Inc. 2016 Omnibus Incentive Plan Stock Option Grant Notice delivered by the Company to the Participant (the “Notice of Grant”).  The Options are not intended to be incentive stock options under the U.S. Internal Revenue Code of 1986, as amended.  This Agreement is entered into pursuant to, and the terms of the Options are subject to, the terms and conditions of the Plan, which is incorporated by reference herein.  If there is any inconsistency between this Agreement and the terms of the Plan, the terms of the Plan shall govern.  The Options shall be considered a Service Award under the Plan.

(b)Exercise Price.  The Options shall have the Exercise Price set forth in the Notice of Grant.

	
2.
	
Vesting, Exercisability and Exercise.

(a)Vesting.  The Options shall vest and become exercisable on the vesting date set forth in the Notice of Grant, subject to the continuous Service of the Participant until such vesting date. 

 

 

(b)Exercise; Condition to Exercise.  Once vested and exercisable in accordance with the provisions of this Agreement, the Options may be exercised at any time and from time to time prior to the date such Options terminate pursuant to Section 3.  The Participant may exercise all or a portion of the Options by giving notice to the Company or a brokerage firm designated or approved by the Company, in form and substance satisfactory to the Company, which will state the Participant’s election to exercise the Options and the number of shares of Stock for which the Participant is exercising Options.  The notice must be accompanied by full payment of the exercise price for the number of shares of Stock the Participant is purchasing.  The Participant may make this payment in any combination of the following: (i) by cash; (ii) by check acceptable to the Company; (iii) by tendering (either actually or by attestation) shares of Stock the Participant has owned for at least six months (if such holding period is necessary to avoid a charge to the Company’s earnings); (iv) to the extent permitted by law, by instructing a broker to deliver to the Company the total payment required in accordance with procedures established by the Company; or (v) by any other method permitted by the Committee.

(c)Cashless Exercise.  In lieu of tendering the exercise price to the Company in accordance with Section 2(b), the Participant may elect to perform a “Cashless Exercise” of the Options, in whole or in part, by surrendering the Options to the Company, marked “Cashless Exercise” and designating the number of shares of Stock desired by the Participant out of the total for which Options are exercisable.  The Participant shall thereupon be entitled to receive the number of shares of Stock having a Fair Market Value equal to (i) the then Fair Market Value per share of Stock multiplied by the number of the shares of Stock into which the Options designated by the Participant would have been exercisable pursuant to Section 2(b) upon payment of the exercise price by the Participant, less (ii) the exercise price the Participant would have been required to pay under Section 2(b) in respect of such an exercise.

	
3.
	
Termination of Options

(a)Normal Expiration Date.  Unless earlier terminated pursuant to Section 3(b), the Options shall terminate on the tenth anniversary of the Grant Date (the “Normal Expiration Date”), if not exercised prior to such date.

2

 

(b)Termination of Service. 

(i)Death, Disability or Retirement.  If the Participant’s Service on the Board terminates due to death, Disability or Retirement (as defined below), any Options that are vested as of such Termination of Service may be exercised by the Participant or the Participant’s executor, administrator, legal representative, guardian or similar person until and including the earlier to occur of (x) the date which is five years after the date of the Participant’s death or the effective date of the Participant’s Termination of Service due to Disability or Retirement, as the case may be, and (y) the Normal Expiration Date; provided, however, that in the case of any voluntary Retirement by the Participant that occurs prior to April 29, 2021 (it being understood and agreed that no retirement by the Participant at the request of the Board or following a decision by the Board not to re-nominate the Participant to the Board shall be considered voluntary for this purpose) “five years” in clause (x) above shall be replaced with “one year”.  Any Options that are not vested as of the Participant’s Termination of Service shall be terminated immediately upon such Termination of Service.  For purposes of the foregoing, the term “Retirement” shall mean the Participant’s voluntary or involuntary Termination of Service, other than by reason of death, Disability or removal for Cause, occurring on or after the date on which either (A) the Participant reaches the age of 65 or (B) the Participant’s age plus years of Service on the Company’s Board equal seventy-five (75).

(ii)Removal for Cause.  If the Participant’s Service on the Board is terminated by the Board for Cause, all Options, whether vested or unvested, shall terminate immediately upon such Termination of Service. 

(iii)Other Reasons.  If the Participant’s Service on the Board is terminated due to circumstances other than as set forth in Sections 3(b)(i) or (ii), such as resignation, any Options that are vested as of the effective date of the Participant’s Termination of Service may thereafter be exercised by the Participant until and including the earliest to occur of (x) the date which is 90 days after the effective date of the Participant’s Termination of Service and (y) the Normal Expiration Date.  All Options that are unvested as of the Participant’s Termination of Service shall immediately terminate upon such Termination of Service.

3

 

(iv)Death Following Termination.  If the Participant dies during the period set forth in Section 3(b)(i) or (iii), the vested Options may thereafter be exercised by the Participant’s executor, administrator, legal representative, guardian or similar person until and including the earlier to occur of (x) the date which is one year after the date of death (or, if later, five years after the date of the Participant’s Disability or Retirement, as applicable) and (y) the Normal Expiration Date.

(c)Change in Control.  In the event of a Change in Control, the Options shall continue and shall have such treatment as set forth in the Plan.

	
4.
	
Securities Law Compliance.  Notwithstanding any other provision of this Agreement, the Participant may not sell the shares of Stock acquired upon exercise of the Options unless such shares are registered under the Securities Act of 1933, as amended (the “Securities Act”), or, if such shares are not then so registered, such sale would be exempt from the registration requirements of the Securities Act.  The sale of such shares must also comply with other applicable laws and regulations governing the shares and Participant may not sell the shares of Stock if the Company determines that such sale would not be in material compliance with such laws and regulations.

	
5.
	
Participant’s Rights with Respect to the Options.

(a)Restrictions on Transferability.  The Options granted hereby are not assignable or transferable, in whole or in part, and may not, directly or indirectly, be offered, transferred, sold, pledged, hedged, assigned, alienated, hypothecated or otherwise disposed of or encumbered (including without limitation by gift, operation of law or otherwise) other than by will or by the laws of descent and distribution to the estate of the Participant upon the Participant’s death; provided that the deceased Participant’s beneficiary or representative of the Participant’s estate shall acknowledge and agree in writing, in a form reasonably acceptable to the Company, to be bound by the provisions of this Agreement and the Plan as if such beneficiary or the estate were the Participant.

(b)No Rights as Stockholder.  The Participant shall not have any rights as a stockholder including any voting, dividend or other rights or privileges as a stockholder of the Company with respect to any Stock underlying the Options unless and until shares of Stock are issued to the Participant upon exercise thereof.  

	
6.
	
Adjustments.  The number, class and Exercise Price of the shares of Stock covered by the Options shall be adjusted by the Committee to reflect any extraordinary dividend, stock dividend, stock split or share combination or any recapitalization, business combination, merger, consolidation, spin-off, exchange of shares, liquidation or dissolution of the Company or other similar transaction affecting the Stock in such manner as the Board determines in its sole discretion.

4

 

	
7.
	
Miscellaneous.

(a)Binding Effect; Benefits.  This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and assigns.  Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.

(b)No Right to Continued Service.  Nothing in the Plan or this Agreement shall interfere with or limit in any way any right  to terminate the Participant’s Service on the Board.

(c)Interpretation.  The Committee shall have full power and discretion to construe and interpret the Plan (and any rules and regulations issued thereunder) and this Award.  Any determination or interpretation by the Committee under or pursuant to the Plan or this Award shall be final and binding and conclusive on all persons affected hereby.

(d)[RESERVED]

(e)Applicable Law.  This Agreement shall be governed by and construed in accordance with the law of the State of Delaware regardless of the application of rules of conflict of law that would apply the laws of any other jurisdiction.

(f)Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation.  By entering into this Agreement and accepting the Options evidenced hereby, the Participant acknowledges: (i) that the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (ii) that the Award does not create any contractual or other right to receive future grants of Awards; (iii) that participation in the Plan is voluntary; and (iv) that the future value of the Stock is unknown and cannot be predicted with certainty.

(g)Participant Data Privacy.  By entering into this Agreement and accepting the Options evidenced hereby, the Participant: (i) authorizes the Company, the Participant’s employer, if different, and any agent of the Company administering the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its affiliates any information and data the Company requests in order to facilitate the grant of the Award and the administration of the Plan; (ii) waives any data privacy rights the Participant may have with respect to such information; and (iii) authorizes the Company and its agents to store and transmit such information in electronic form.

5

 

(h)Consent to Electronic Delivery.  By entering into this Agreement and accepting the Options evidenced hereby, the Participant hereby consents to the delivery of information (including, without limitation, information required to be delivered to the Participant pursuant to applicable securities laws) regarding the Company and the Subsidiaries, the Plan, this Agreement and the Options via Company website, email or other electronic delivery.

(i)Headings and Captions.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of this Agreement, and shall not be employed in the construction of this Agreement.

(j)Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument. 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]