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Exhibit 10.22
IDEXX Laboratories, Inc. 
 
DIRECTOR DEFERRED COMPENSATION PLAN 
 
Restated Effective as of October 13, 2021
 
The Director Deferred Compensation Plan of IDEXX Laboratories, Inc. (the “Plan”) was initially established effective July 1, 2003 to provide an additional mechanism for satisfying stock ownership guidelines, as well as to provide a vehicle for non-employee Directors to defer the receipt of taxable income. The Plan is intended to be an “unfunded” plan maintained for the purpose of providing deferred compensation to non-employee members of the Board of Directors for purposes of Title I of the Employee Retirement Income Security Act of 1974.  The Plan was amended and restated in its entirety, effective January 1, 2005, primarily for the purpose of complying with the applicable requirements of Section 409A of the Internal Revenue Code of 1986 (the “Code”), and Proposed Regulations §§ 1.409A-1 et seq., and the Company operated the Plan in good faith compliance with Code Section 409A and the restated Plan document since that time.  The Plan was also amended and restated in its entirety, effective January 1, 2008, for the purpose of continuing compliance with Section 409A of the Code and Final Regulations §§1.409A-1 et seq., and effective May 6, 2009, for the purpose of replacing a reference to the 2003 Stock Incentive Plan with the 2009 Stock Incentive Plan, which superseded the 2003 Stock Incentive Plan on May 6, 2009, and effective as of July 14, 2010 for the purpose of modifying certain provisions relating to the payment of benefits. The Plan is now amended and restated for the purpose of replacing a reference to the 2009 Stock Incentive Plan with the 2018 Stock Incentive Plan, which superseded the 2009 Stock Incentive Plan on May 9, 2018, and revising the deferral features relating to Director’s annual equity grants.
 
ARTICLE I 
DEFINITIONS 
 
Unless the context otherwise requires, the following words and phrases as used herein shall have the following meanings:  
 
Section 1.1 “ACCOUNT” means the bookkeeping Account maintained for a Participant to which Deferrals (including all Deferrals denominated as Deferred Stock Units) and Annual Grants, plus any earnings thereon, are credited.  
 
Section 1.2 “ANNUAL EQUITY GRANT” means the equity award of a number of restricted stock units having a specified dollar value granted by the Company to Directors on an annual basis as part of their annual compensation for serving as a Director, such number of restricted stock units being determined by dividing the closing price of IDEXX Stock on the grant date by the specified dollar value.

Section 1.3 “ANNUAL RETAINER” means the annual cash retainer paid by the Company to Directors. 
 
Section 1.4 “BENEFICIARY” means the person that the Participant designates to receive any unpaid portion of the Participant's Account balance should the Participant's death occur before the Participant receives the entire Account balance. If the Participant does not designate a beneficiary, his Beneficiary shall be his spouse if he is married at the time of his death, or his estate if he is unmarried at the time of his death.  
 
Section 1.5 “BOARD OF DIRECTORS” means the Board of Directors of IDEXX Laboratories, Inc.  
 
Section 1.6 “CHANGE IN CONTROL” means, solely for purposes of this Plan, the occurrence of one or more of the following events with respect to the Company: 
 
(a) Any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) beneficial ownership, directly or indirectly, of stock of the Company possessing 35% or more of the total voting power of the stock of the Company; or 
 
(b) Individuals constituting a majority of the members of the Company’s Board of Directors are replaced during any 12-month period by new directors whose appointment or election is not approved by a majority of the members of the Company’s Board of Directors serving immediately before the appointment or election of any such new directors; or 
 
(c) A change in the ownership of a substantial portion of the Company’s assets occurs on the date that any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions.  For this purpose, gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. 

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For purposes of determining whether a Change in Control has occurred, the term "person" shall have the meaning given in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the term "beneficial owner" shall have the meaning given in Rule 13d-3 under the Exchange Act. 
 
Section 1.7 “CODE” means the Internal Revenue Code of 1986, as amended.  
 
Section 1.8 “COMPANY” means IDEXX Laboratories, Inc. and any subsidiary designated as a participating entity by the Plan Administrator. 
 
Section 1.9 “DEFERRALS” means amounts deferred under the Plan pursuant to Article III and allocated to a Participant's Account. No money or other assets will actually be contributed to such Accounts.  
 
Section 1.10 “DEFERRED STOCK UNIT” means a notional interest in one share of IDEXX Stock.  Each Deferred Stock Unit shall be equivalent in value to one share of IDEXX Stock and shall be subject to the terms of the 2018 Stock Incentive Plan. 
 
Section 1.11 “DIRECTOR” means a non-employee member of the Board of Directors.   
 
Section 1.12 “DISABLED” means that a Participant:  (a) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, or (b) is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months.  
 
Section 1.13 “EFFECTIVE DATE” means the effective date of this restated plan document, generally January 1, 2005.  
 
Section 1.14 “EQUITY GRANT DEFERRAL ELECTION” means an election to receive a grant of a number of Deferred Stock Units in lieu of an Annual Equity Grant for a particular calendar year, which number of Deferred Stock Units shall be equal to the number of restricted stock units that would have been granted to the Participant as the Annual Equity Grant absent such election.

Section 1.15 “IDEXX STOCK” means Common Stock of IDEXX Laboratories, Inc.  
 
Section 1.16 “OTHER COMPENSATION” means cash compensation paid to a Director, other than the Annual Retainer, including (without limitation) meeting fees, and annual fees for committee memberships and committee chairs. 
 
Section 1.17 “PARTICIPANT” means a Director who participates in the Plan.  
 
Section 1.18 “PLAN” means this Director Deferred Compensation Plan, as it may be amended from time to time.  
 
Section 1.19 “PLAN ADMINISTRATOR” means the Chief Human Resources Officer of IDEXX Laboratories, Inc. or any person or entity designated by the Chief Human Resources Officer.  
 
Section 1.20 “PLAN YEAR” means the 12-month period beginning January 1 and ending December 31.  
 
Section 1.21 “RETAINER DEFERRAL ELECTION” means a deferral election of all or any portion of the Participant’s Annual Retainer and/or Other Compensation.

Section 1.22 “UNFORESEEABLE EMERGENCY” means a severe financial hardship to the Participant, the Participant’s spouse or a dependent (as defined in Code Section 152(a)) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. 
 
ARTICLE II
ELIGIBILITY AND PARTICIPATION 
 
Section 2.1 ELIGIBILITY. Each Director shall be eligible to become a Participant in the Plan immediately upon the commencement of his or her membership on the Board. 
 
Section 2.2 PARTICIPATION. A Director may become a Participant in the Plan by making the applicable election described in Section 3.1 and/or Section 3.2(b) below (as applicable).  A Director’s participation will commence with the first quarterly payment of the Annual Retainer paid, or the first Annual Equity Grant, after the completion of the Participant’s deferral election (as applicable). Each Director shall remain a Participant under the Plan until all amounts credited to the Participant's Account Balance have been distributed to the Participant or the Participant's Beneficiary.  
 

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ARTICLE III 
DEFERRALS; ANNUAL GRANTS; VESTING 
 
Section 3.1 DEFERRALS OF ANNUAL RETAINER AND OTHER COMPENSATION
 
(a) General.  A Participant who elects to defer a portion of the Participant’s Annual Retainer and/or Other Compensation shall make, subject, to Sections 3.1(b) - (d) below, a Retainer Deferral Election by completing and returning to the Plan Administrator (or his or her designee) a written election on the form prescribed by the Plan Administrator.  In general, a Participant’s Retainer Deferral Election shall be made between December 1 and December 31 of the year immediately preceding the year in which the Annual Retainer and/or Other Compensation (as applicable) will be earned, and shall become irrevocable with respect to a Plan Year as of December 31 of such preceding year.  However, a Director who shall first become eligible to participate in the Plan or any similar non-qualified deferred compensation plan of the Company after the time specified for making a Retainer Deferral Election under the Plan for the Plan Year as provided in the preceding sentence may make his or her initial Retainer Deferral Election within 30 days after first becoming eligible, such election to apply only to the Annual Retainer and/or Other Compensation (as applicable) to be earned for services provided during the remainder of such Plan Year.
 
A Participant’s Retainer Deferral Election shall remain in effect until the date on which such Participant ceases to be a Director, or until he or she modifies such election on a prospective basis with respect to a subsequent Plan Year (in accordance with the requirements of subsection (a) above and any applicable procedures prescribed by the Plan Administrator, which may include, without limitation, the Plan Administrator periodically confirming the status of prior Retainer Deferral Elections with the Participant).  Notwithstanding the foregoing, the Retainer Deferral Election of a Participant who shall receive a distribution from the Plan on account of an Unforeseeable Emergency shall be canceled for the remainder of the Plan Year, as soon as administratively practicable following the approval of such distribution, and may not resume unless and until the Participant shall make a new Retainer Deferral Election for a future Plan Year. 
 
(b) Plan Years Ending On or Before December 31, 2005. For Plan Years ending on or before December 31, 2005, a Participant shall be required to defer 50% of his or her Annual Retainer, which shall be credited to his or her Account in the form of Deferred Stock Units.  For such Plan Years, a Participant may elect to defer any or all of the remaining portion of such Annual Retainer and any or all of his or her Other Compensation for a Plan Year. 
 
(c) Plan Years Beginning On or After January 1, 2006.  For Plan Years beginning on and after January 1, 2006, a Participant may elect to defer receipt of all, but not less than all, of his or her Annual Retainer payable for any Plan Year, and a Participant shall not be permitted to defer the receipt of any Other Compensation under the Plan. 
 
(d)  Plan Years Beginning On and After January 1, 2007.  For Plan Years beginning on and after January 1, 2007, a Participant may elect to defer receipt of all or any portion of his or her Annual Retainer and/or Other Compensation payable for any Plan Year, in accordance with subsection (a) of this Section. 
 
Section 3.2 ANNUAL GRANTS.  

(a)  For Plan Years Beginning on January 1, 2006 and Ending with the Plan Year Beginning January 1, 2021. For Plan Years beginning on January 1, 2006 and ending with the Plan Year beginning January 1, 2021, the Board may make an annual grant to Directors of a number of Deferred Stock Units having a specified dollar value.  The number of Deferred Stock Units granted to a Director shall be determined by dividing the closing price of IDEXX Stock on the grant date by such specified dollar value. 

(b)   For Plan Years Beginning on or After January 1, 2022. For Plan Years Beginning on or after January 1, 2022, a Participant who elects to defer the Participant’s Annual Equity Grant, shall make an Equity Grant Deferral Election by completing and returning to the Plan Administrator (or his or her designee) a written election on the form prescribed by the Plan Administrator. In general, a Participant’s Equity Grant Deferral Election shall be made between December 1 and December 31 of the year immediately preceding the year in which the Annual Equity Grant is granted to Directors, and shall become irrevocable with respect to a Plan Year as of December 31 of such preceding year.  A Participant’s Equity Grant Deferral Election shall be made each year for each subsequent Plan Year (in accordance with the requirements of this subsection (b) and any applicable procedures prescribed by the Plan Administrator). Notwithstanding the foregoing, the Equity Grant Deferral Election of a Participant who shall receive a distribution from the Plan prior to the grant date of the Annual Equity Grant in that Plan Year on account of an Unforeseeable Emergency shall be canceled for that Plan Year,
 
Section 3.3 VESTING.   
 
(a) Retainer and Other Compensation Deferrals.  A Participant’s interest in Deferrals made under Section 3.1 of the Plan shall be fully vested and non-forfeitable at all times. 
 
(b) Annual Grants Deferrals.  Each grant of Deferred Stock Units, including pursuant to an Equity Grant Deferral Election made on or after December 1, 2021, shall vest on the first anniversary of the grant date of the Deferred Stock Units, if 
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the Participant subject to the grant shall then be a member of the Board of Directors; provided, however, that a Participant’s interest in his or her unvested Deferred Stock Units shall vest upon the earliest to occur of a Change in Control, the Participant’s death, or the Participant’s Disability.
 
ARTICLE IV 
INVESTMENT OF DEFERRALS; DISTRIBUTIONS 
 
Section 4.1 INVESTMENT OF DEFERRALS.  All amounts deferred under the Plan shall be credited to the Participant’s Account and shall be deemed to be invested in notional shares of IDEXX Stock, denominated as Deferred Stock Units.  The number of Deferred Stock Units credited to a Participant’s Account with respect to any elective or mandatory deferral shall be determined by dividing the amount of the deferral by the closing price of one share of IDEXX Stock on the conversion date established by the Plan Administrator with respect to any deferral period, which conversion date shall not be later than 30 days after the end of the deferral period.   
 
Section 4.2 DISTRIBUTIONS.  
 
(a)(a)    Subject to the limitations set forth in this Section, a Participant shall be permitted to elect the form or timing of the distribution of his or her benefits under the Plan.  A Participant shall make a distribution election with respect to deferrals pursuant to a Retainer Deferral Election and/or an Equity Grant Deferral Election for any Plan Year by completing and returning to the Plan Administrator (or his or her designee) a written election on the form prescribed by the Plan Administrator.  A Participant’s election shall be made at the same time as he or she makes a Retainer Deferral Election and/or an Equity Grant Deferral Election under Sections 3.1(a) and 3.2(b), respectively, above.  

    
(b)    A Participant may choose to receive his or her benefits under the Plan at the time and in the form selected from the following alternatives:

(i)    with respect to deferrals before January 1, 2022, (x) a single lump sum as soon as practicable on or after the first business day following the first anniversary of his or her last day of service on the Board of Directors; or (y) with respect to deferrals on and after January 1, 2011, on a nondiscretionary and objectively determinable date (a “Fixed Date”) in a single lump sum payable as soon as practicable on or after the Fixed Date or in equal annual installments over a period of four (4) years commencing as soon as practicable on or after the Fixed Date; and

(ii)    with respect to deferrals on or after January 1, 2022, (x) a single lump sum as soon as practicable on or after the first business day following his or her last day of service on the Board of Directors; or (y) on a Fixed Date in a single lump sum payable as soon as practicable on or after the Fixed Date or in equal annual installments over a period of four (4) years commencing as soon as practicable on or after the Fixed Date 
  
If no timely election is returned to the Plan Administrator, a Participant’s benefits shall be distributed in a single lump sum as soon as practicable on or after (i) in respect of Deferred Stock Units credited to the Participant’s Account prior to January 1, 2022, the first business day following the first anniversary of his or her last day of service on the Board of Directors; and (ii) in respect of Deferred Stock Units credited to the Participant’s Account on or after January 1, 2022, the first business day following his or her last day of service on the Board of Directors.    Notwithstanding the foregoing:  (x) the Participant’s benefit shall be distributed in a single lump sum as soon as practicable on or after a Change in Control of the Company; and (y) a Participant’s benefit shall be distributed to his or her personal representative if the Participant should die prior to the otherwise elected or scheduled distribution date as set forth herein.

(c)    A Participant’s election as to the distribution of benefits previously deferred under the Plan may be modified only subject to the following requirements: 
 
(i)    such change in a distribution election shall be made in writing using such forms and in accordance with such procedures as the Plan Administrator shall prescribe;

(ii)    no change in a distribution election may take effect until 12 months after the date on which the change in election is made;  
 
(iii)    a Participant may not modify an election to receive a fixed schedule of payments within 12 months of the first scheduled payment date, and  
 
(iv)    a change in a Participant’s distribution election must defer the date of the distribution by at least 5 years from the date the distribution would otherwise have been made. 

An installment form of distribution shall be treated as an entitlement to receive a single payment, as described in Treasury Regulations § 1.409A-2(b)(2)(iii), for purposes of applying the requirements relating to the timing and effect of subsequent change in a distribution election.
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(d)    Upon application by the Participant, if the Plan Administrator determines that a Participant has experienced an Unforeseeable Emergency, the Plan Administrator may authorize the distribution of all or a portion of the Participant’s benefits under the Plan.  The amount distributed with respect to the Unforeseeable Emergency must not exceed the amounts necessary to satisfy such emergency plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution, after taking into account the extent to which such hardship is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe financial hardship). 

(e)    All benefit distributions shall be made in the form of shares of IDEXX Stock equal to the number of Deferred Stock Units credited to the Account of the Participant (in the case of a lump sum distribution), or equal to the number of Deferred Stock Units subject to distribution as of the applicable distribution date (in the case of distributions to be made in installments). 
 
ARTICLE V 
ADMINISTRATIVE PROCEDURES 
 
Section 5.1 GENERAL. The Plan shall be administered by the Plan Administrator. The Plan Administrator shall establish such procedures and rules as he or she, in his or her sole discretion, shall deem appropriate regarding the making of deferral elections and distributions, and all other administrative items for this Plan, in all events consistent with the written terms of the Plan and Section 409A of the Code.  
 
Section 5.2 PLAN INTERPRETATION. The Plan Administrator shall have the authority and responsibility to interpret and construe the Plan and to decide all questions arising thereunder, including without limitation, questions of eligibility for participation, eligibility for deferrals, Account status, and the timing of the distribution thereof, and shall have the authority to deviate from the literal terms of the Plan only to the extent the Plan Administrator shall determine, in his or her sole discretion, to be necessary or appropriate to operate the Plan in compliance with the provisions of applicable law, including, without limitation, Code Section 409A.  In no event shall the Plan Administrator use its authority or discretion to accelerate the timing of benefit distributions under the Plan. 
 
Section 5.3 RESPONSIBILITIES AND REPORTS. The Plan Administrator may, pursuant to a written instruction, name other persons to carry out specific responsibilities. The Plan Administrator shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports that are furnished by any accountant, controller, counsel, or other person who is employed or engaged for such purposes.  

ARTICLE VI
CLAIMS PROCEDURE 
 
Section 6.1 DENIAL OF CLAIM FOR BENEFITS. Any denial by the Plan Administrator of any claim for benefits under the Plan by a Participant or Beneficiary shall be stated in writing by the Plan Administrator and delivered or mailed to the Participant or Beneficiary. The Plan Administrator shall furnish the claimant with notice of the decision not later than 90 days after receipt of the claim, unless special circumstances require an extension of time for processing the claim. If such an extension of time for processing is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period. In no event shall such extension exceed a period of 90 days from the end of such initial period. The extension notice shall indicate the special circumstances requiring an extension of time and the date by which the Plan Administrator expects to render the final decision. The notice of the Plan Administrator's decision shall be written in a manner calculated to be understood by the claimant and shall include (i) the specific reasons for the denial, including, where appropriate, references to the Plan, (ii) any additional information necessary to perfect the claim with an explanation of why the information is necessary, and (iii) an explanation of the procedure for perfecting the claim.  
 
Section 6.2 APPEAL OF DENIAL. The claimant shall have 60 days after receipt of written notification of denial of his or her claim in which to file a written appeal with the Plan Administrator. As a part of any such appeal, the claimant may submit issues and comments in writing and shall, on request, be afforded an opportunity to review any documents pertinent to the perfection of his or her claim. The Plan Administrator shall render a written decision on the claimant's appeal ordinarily within 60 days of receipt of notice thereof but, in no case, later than 120 days.  
 
ARTICLE VII 
FUNDING 
 
Section 7.1 FUNDING. The Company shall not segregate or hold separately from its general assets any amounts credited to Participant Accounts, and shall be under no obligation whatsoever to fund in advance any amounts under the Plan, including Deferrals and earnings thereon.  
 
Section 7.2 INSOLVENCY. In the event that the Company becomes insolvent, all Participants and Beneficiaries shall be treated as general, unsecured creditors of the Company with respect to any amounts credited to Participant Accounts.  
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ARTICLE VIII 
AMENDMENT AND TERMINATION 
 
The Company reserves the right to amend or terminate the Plan at any time by action of the Board or the Compensation Committee thereof; provided, however, that the Chief Human Resources Officer may approve amendments to the Plan that are primarily technical or administrative in nature (such as amendments that are necessary to bring the Plan into formal compliance with applicable law and do not materially alter the design or benefit structure of the Plan).  Notwithstanding the foregoing, no such amendment or termination shall reduce any Participant's Account Balance as of the date of such amendment or termination, or accelerate the distribution of benefits to any Participant.  Any distributions made in connection with the termination of the Plan shall be made:  (a) not sooner than the last day of the 12th month after the termination date, (b) not later than the 24th month after the termination date, and (c) in all other ways in accordance with all applicable requirements of Section 409A of the Code.   
 
ARTICLE IX 
MISCELLANEOUS 
 
Section 9.1 NO EMPLOYMENT CONTRACT. The establishment or existence of the Plan shall not confer upon any individual the right to be continued as a Director.  
 
Section 9.2 NON-ALIENATION. No amounts payable under the Plan shall be subject in any manner to anticipation, assignment, or voluntary or involuntary alienation.  
 
Section 9.3 GOVERNING LAW. The Plan shall be governed by and construed in accordance with the laws of the State of Maine to the extent not preempted by federal law.  
 
Section 9.4 INCAPACITY. If the Plan Administrator, in his or her sole discretion, deems a Participant or Beneficiary who is eligible to receive any payment hereunder to be incompetent to receive the same by reason of illness or any infirmity or incapacity of any kind, the Plan Administrator may direct the Company to apply such payment directly for the benefit of such person, or to make payment to any person selected by the Plan Administrator to disburse the same for the benefit of the Participant or Beneficiary. Payments made pursuant to this Section shall operate as a discharge, to the extent thereof, of all liabilities of the Company, the Plan Administrator and the Plan to the person for whose benefit the payments are made.  
 
Section 9.5 CONSTRUCTION OF TERMS. For purposes of the Plan, the singular shall include the plural, and vice versa and the masculine shall include the feminine.  
 
Section 9.6 BINDING UPON SUCCESSORS. The liabilities under the Plan shall be binding upon any successor, assign or purchaser of the Company or any purchaser of substantially all of the assets of the Company.  
 
Section 9.7 NO TRUST ARRANGEMENT. All benefits under the Plan represent an unsecured promise to pay by the Company. The Plan shall be unfunded and the benefits hereunder shall be paid only from the general assets of the Company resulting in the Participants having no greater rights than the Company's other general creditors. Nothing herein shall prevent or prohibit the Company from establishing a trust or other arrangement for the purpose of providing for the payment of the benefits payable under the Plan.  
 
 
Approved May 21, 2003 
Restated on February 22, 2006 
Restated on January 1, 2008 
Restated on May 6, 2009
Restated on July 14, 2010 
Restated on October 13, 2021

 

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Exhibit 10.28
Director Stock Option Agreement                    
Granted Under IDEXX Laboratories, Inc. 2018 Stock Incentive Plan

1.  Grant of Option. 

    IDEXX Laboratories, Inc., a Delaware corporation (the “Company”), hereby grants to the member of the Board named on the opposite side of this Agreement (the “Optionee”), an option, pursuant to the Company’s 2018 Stock Incentive Plan (the “Plan”), to purchase, in whole or in part, the number of shares of common stock, par value $0.10 per share, of the Company (“Shares”) at a price per Share as noted on the opposite side of this Agreement, subject to the terms and conditions of this Agreement, the Plan and the description of the Plan set forth in the Plan Prospectus.  The Plan and the Plan Prospectus are provided to the Optionee with this Agreement.  Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in the Plan or the Plan Prospectus.

2.  Type of Stock Option.  

    This Option is a “Non-Qualified Stock Option” and shall not be considered an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).

3.  Exercise of Option and Provisions for Termination.

    (a) Vesting Schedule and Expiration.  Except as otherwise provided in this Agreement, this Option shall expire at 4:00 p.m., Eastern time, on the Expiration Date indicated on the opposite side of this Agreement.  This Option will become exercisable (“vest”) in installments as to the number of Shares and during the respective installment periods set forth on the opposite side of this Agreement.  The right of exercise shall be cumulative so that if the Option is not exercised to the maximum extent permissible during an exercise period, it shall continue to be exercisable, in whole or in part, with respect to all Shares not so purchased at any time prior to the Expiration Date or the earlier termination of this Option.  This Option may not be exercised at any time after the Expiration Date.  

    (b) Exercise Procedure.  Subject to the conditions set forth in this Agreement, this Option shall be exercised by the Optionee’s delivery of written notice of exercise through the online service designated by the Company (currently E*TRADE OptionsLink), specifying the number of Shares to be purchased and the purchase price to be paid therefor and accompanied by payment in full in accordance with Section 4.  Such exercise shall be effective upon receipt by such online service of such written notice together with the required payment.  The Optionee may purchase less than the number of Shares covered hereby, provided that no partial exercise of this Option may be for any fractional share.  

    (c) Continuous Relationship with the Company Required.  Except as otherwise provided in this Section 3, this Option may not be exercised unless the Optionee, at the time he or she exercises this option, is, and has been at all times since the Grant Date indicated on the opposite side of this Agreement, a Director (an “Eligible Optionee”).  
 
    (d) Exercise Period Upon Termination of Relationship with the Company.  If the Optionee ceases to be an Eligible Optionee for any reason, then, except as provided in paragraphs (e), (f) and (g) below, the right to exercise this Option shall terminate 3 months after such cessation (but in no event after the Expiration Date), provided that this Option shall be exercisable only to the extent that the Optionee was entitled to exercise this option on the date of such cessation.   Notwithstanding the foregoing, if the Optionee, prior to the Expiration Date, violates any legal duty to the Company or violates any agreement between the Optionee and the Company, the right to exercise this Option shall terminate immediately upon such violation. Notwithstanding any provision in this Agreement that may be to the contrary, if, following the Optionee’s cessation of being an Eligible Optionee for any reason, except as provided in paragraphs (e), (f) and (g) below, all or a portion of the three-month exercise period applicable to the Option as described above occurs during a time when the Optionee is prohibited from trading in securities of the Company without violating applicable federal or state securities laws or the rules related to a blackout period or quiet period declared by the Company pursuant to its insider trading or similar policy, the three-month exercise period applicable to the Option will be tolled for the number of days that such prohibitions or restrictions apply, such that the three-month exercise period will be extended by the same number of days as were subject to the prohibitions or restrictions; provided, however, that such three-month exercise period may not be extended due to such tolling past the Expiration Date of the Option.

    (e) Exercise Period Upon Death or Disability; Immediate Vesting Upon Death or Disability.  If the Optionee dies or becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Expiration Date while he or she is an Eligible Optionee, or if the Optionee dies within 3 months after the Optionee ceases to be an Eligible Optionee, and the Company has not terminated such relationship for “cause” as specified in paragraph (g) below, this Option shall be exercisable until the 1 year anniversary date following the date of death or disability of the Optionee, by the Optionee or by the person to whom this Option is transferred by will or the laws of descent and distribution, provided that this Option shall be exercisable only to the extent that this 

Option was exercisable by the Optionee on the date he or she ceased to be an Eligible Optionee.  Notwithstanding anything in this Agreement that may be to the contrary, in the event the Optionee dies or becomes disabled (as defined above) at a time when the Optionee is an Eligible Optionee, then this Option shall immediately vest and become exercisable with respect to all Shares underlying this Option as of the date of the Optionee’s death or disability.  

    (f) Exercise Period Upon Retirement.  If the Optionee retires (as defined below) prior to the Expiration Date while he or she is an Eligible Optionee, and the Company or its Affiliate has not terminated such relationship for “cause” as specified in paragraph (g) below, this Option shall, to the extent vested, remain exercisable until the 3 year anniversary date following the date of retirement of the Optionee (but in no event after the Expiration Date). “Retire” and “retirement” shall mean retirement from the Board, provided that the Optionee has been a Director for at least 5 years, not including any years during which the Optionee was a director of a company that was acquired by or merged with the Company.

    (g)  Discharge for Cause.  If the Optionee, prior to the Expiration Date, ceases his or her relationship with the Company because he or she is discharged for “cause” (as defined below), the right to exercise this Option shall terminate immediately upon such cessation of employment.  “Cause” shall mean willful misconduct in connection with the Optionee’s director responsibilities or willful failure to perform his or her director responsibilities in the best interests of the Company (including, without limitation, breach by the Optionee of any legal duty to the Company or breach of any r agreement between the Optionee and the Company), as determined by the Company, which determination shall be conclusive.  The Optionee shall be considered to have been discharged for “cause” if the Company determines, within 30 days of the Optionee’s resignation, that discharge for cause was warranted.
    
4.  Payment of Purchase Price.

    (a) Method of Payment.  Payment of the purchase price for Shares purchased upon exercise of this Option shall be made (i) by delivery to the Company, or to the online service designated by the Company, of an amount equal to the purchase price of such Shares, (ii) by delivery to the Company of Shares (either actually or by attestation) then owned by the Optionee for at least 6 months (or any shorter period sufficient to avoid a charge to the Company’s earnings for financial reporting purposes) or delivery of other consideration having a fair market value equal in amount to the purchase price of such shares, (iii) to the extent permitted by the Board, in its sole discretion, by delivery of an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the purchase price and any required Tax-Related Items (as defined below) or delivery by the Optionee to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the purchase price and any required Tax-Related Items; or (iv) by any combination of cash, Shares, and other consideration as the Board may specify.  

    (b) Valuation of Shares or Other Non-Cash Consideration Tendered in Payment of Purchase Price.  For the purposes hereof, the fair market value of any Shares or other non-cash consideration which may be delivered to the Company in exercise of this Option shall be determined as provided in the Plan.

    (c) Delivery of Shares Tendered in Payment of Purchase Price.  If the Optionee exercises Options by delivery Shares, any certificate or certificates representing the Shares to be delivered shall be duly executed in blank by the Optionee or shall be accompanied by a stock power duly executed in blank suitable for purposes of transferring such Shares, and any electronic delivery of Shares shall be in a manner sufficient for purposes of transferring such Shares.  Fractional Shares of Common Stock of the Company will not be accepted in payment of the purchase price of Shares acquired upon exercise of this Option.

5.  Delivery of Shares; Compliance with Securities Laws, Etc.   
 
    (a) General.  The Company shall, upon payment of the Option price for the number of Shares purchased and paid for, make prompt delivery of such Shares to the Optionee, provided that if any law or regulation requires the Company to take any action with respect to such Shares before the issuance thereof, then the date of delivery of such Shares shall be extended for the period necessary to complete such action.

    (b) Listing, Qualification, Etc.  This Option shall be subject to the requirement that if, at any time, counsel to the Company shall determine that the listing, registration or qualification of Shares subject hereto upon any securities exchange or under any state, federal or foreign law, or the consent or approval of any governmental or regulatory body, or that the disclosure of non-public information or the satisfaction of any other condition is necessary as a condition of, or in connection with, the issuance or purchase of Shares hereunder, this Option may not be exercised, in whole or part, unless such listing, registration, qualification, consent or approval, disclosure or 

satisfaction of such other condition shall have been effected or obtained on terms acceptable to the Board.  Nothing herein shall be deemed to require the Company to apply for, effect disclosure, or to satisfy such other condition.

6.  Nontransferability of Option.

    Except as provided in paragraph (e) of Section 3, this Option is personal and no rights granted hereunder may be sold, assigned, transferred, pledged or otherwise encumbered by the Optionee (whether by operation of law or otherwise).   During the lifetime of the Optionee, this Option shall be exercised only by the Optionee.

7.  No Special Service Rights.

    Nothing contained in the Plan, the Plan Prospectus or this Agreement shall be construed or deemed to constitute a service contract or confer or be deemed to confer on the Optionee any right to continue in the service of, or to continue any other relationship with, the Company or limit in any way any right of the Company to terminate the Optionee’s service or other relationship at any time, with or without cause.

8.  Rights as a Shareholder.

    The Optionee shall have no rights as a shareholder with respect to any Shares which may be purchased by exercise of this Option (including, without limitation, any rights to receive dividends or non-cash distributions with respect to such Shares) unless and until a certificate representing such Shares, or electronic equivalent, is duly issued and delivered to the Optionee.  No adjustment shall be made for dividends or other rights for which the record date is prior to the date such stock certificate or electronic equivalent is issued.

9.  Taxes.

    (a) Responsibility for Taxes. The Optionee acknowledges that, regardless of any action taken by the Company, the ultimate liability for all income tax (whether foreign, federal, state or local), social insurance, payroll tax, fringe benefits tax, payment on account and other tax-related items related to the Optionee’s participation in the Plan and legally applicable to the Optionee (the “Tax-Related Items”) is and remains the Optionee’s responsibility as it may come due and may exceed the amount actually withheld by the Company.  The Optionee further acknowledges that the Company (i) makes no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Option, and (ii) does not commit to and is under no obligation to structure the terms of the grant or any aspect of the Option to reduce or eliminate the Optionee’s liability for Tax-Related Items or achieve any particular tax result.  Further, if the Optionee is subject to Tax-Related Items in more than one jurisdiction, the Optionee acknowledges that the Company may be required to withhold or account for Tax-Related Items in more than one jurisdiction. In addition, the Optionee further acknowledges that Tax-Related Items may be incurred at different times.

    (b) Withholding. The Optionee acknowledges and agrees to make arrangements satisfactory to the Company with respect to any withholding obligation the Company may have for Tax-Related Items.  Without limitation to the foregoing, the Optionee acknowledges and agrees that to satisfy any such withholding obligation for Tax-Related Items, the Company may (i) withhold from the Optionee's wages or other cash compensation paid to the Optionee by the Company, (ii) withhold from proceeds of the sale of Shares acquired upon exercise of the Option, either through a voluntary sale or through a mandatory sale arranged by the Company (on the Optionee’s behalf pursuant to this authorization), or (iii) withhold by any other method permitted under the Plan and applicable law.  Depending on the withholding method, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates, including up to the maximum applicable rate in the Optionee's jurisdiction (in which case, the Optionee may receive a refund of any over-withheld amount in cash and will have no entitlement to the equivalent amount in Shares). The Company may refuse to deliver the Shares or the proceeds of the sale of Shares, if the Optionee fails to comply with his or her obligations in connection with the Tax-Related Items.

    (c)  Tax Consequences.  The Optionee has reviewed with his or her own tax advisors the applicable tax consequences of this investment and the transactions contemplated by this Agreement.  With respect to such matters, the Optionee relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral.    
    
10.  Data Privacy.

    The Optionee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Optionee’s personal data as described in this Agreement and any other Option grant materials by and among, as applicable, the Company and its Subsidiaries and 

Affiliates for the exclusive purpose of implementing, administering and managing the Optionee’s participation in the Plan.

    The Optionee understands that the Company may hold certain personal information about the Optionee, including, but not limited to, the Optionee’s name, home address, email address and telephone number, date of birth, social insurance number, passport or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in the Optionee’s favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan. 

    The Optionee understands that Data will be transferred to E*TRADE, or such other stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan.  The Optionee understands that the recipients of the Data may be located in the United States or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the Optionee’s country.

    The Optionee authorizes the Company, E*TRADE and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purposes of implementing, administering and managing the Optionee’s participation in the Plan.

11.  Miscellaneous.

    (a)    This Agreement and the Plan constitute the entire agreement between the parties, and supersedes all prior agreements and understandings, relating to the subject matter of this Agreement.

    (b)   Except as provided herein, this Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Optionee. Any provision for the benefit of the Company contained in this Agreement may be waived, either generally or in any particular instance, by the Board.  The Board may amend, alter, suspend, discontinue or terminate the Plan, or any portion thereof, at any time, subject to the requirements for certain amendments or alterations set forth in the Plan.

    (c)    This Agreement shall be binding upon and inure to the benefit of the Company and the Optionee and their respective heirs, executors, administrators, representatives, successors and assigns, subject to the restrictions on transfer set forth in Section 6 hereof.

    (d)    The Option and the provisions of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware and applicable federal law, without regard to applicable conflict of laws principles.  

    (e)    The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.

    (f)    The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Optionee’s participation in the Plan, or the Optionee’s acquisition or sale of the underlying Shares. 
 
(g)   All notices under this Agreement shall be mailed or delivered by hand to the parties at their respective addresses set forth in this Agreement or at such other address as may be designated in writing by either of the parties to one another.

    (h)  The Company may, in its sole discretion, decide to deliver any documents related to current or future participation in the Plan by electronic means.  The Optionee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company. 

    (j)   The Company reserves the right to impose other requirements on the Optionee’s participation in the Plan, on the Option and on any Shares acquired under the Plan, to the extent the Company determines it is necessary or advisable for legal or administrative reasons, and to require the Optionee to sign any additional agreements or undertakings that may be necessary to accomplish the foregoing.

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