Document:

Exhibit
10.42

 

CELLDEX THERAPEUTICS, INC.

 

RESTRICTED STOCK AWARD AGREEMENT

 

This Restricted Stock Award Agreement (the “Agreement”), dated as of
the “Award Date” set forth in the attached Exhibit A, is entered
into between Celldex Therapeutics, Inc., a Delaware corporation (the “Company”), and the individual  identified in Exhibit A (the “Awardee”).

 

WHEREAS, the Company desires to provide the Awardee an
incentive to participate in the success and growth of the Company through the
holding of a proprietatry interest in the Company; and

 

WHEREAS, to give effect to the foregoing intentions, the Company
desires to grant the Awardee a restricted stock
award of shares of the Company’s common stock, par value $0.001
(the “Common Stock”) pursuant to the Celldex Therapeutics, Inc. 2008 Stock
Option and Incentive Plan (the “Plan”);

 

NOW, THEREFORE, in consideration of the mutual covenants hereinafter
set forth and for other good and valuable consideration, the parties hereto
agree as follows:

 

1.             Grant.  The Company hereby grants the
Awardee a restricted stock award (the “Award”) with respect to the number of
shares of Common Stock set forth in Exhibit A (such shares being
referred to herein as the “Restricted Shares”). 
The Award and the Restricted Shares shall be subject to the terms and
conditions set forth in this Agreement and the provisions of the Plan, the
terms of which are incorporated herein by reference.  Capitalized terms used but
not otherwise defined herein shall have the meanings as set forth in the Plan.

 

2.             Lapsing Forfeiture
Provisions.  Subject to
the terms of this Agreement, the Awardee shall forfeit the Restricted Shares to
the extent that the Awardee does not satisfy the applicable vesting
requirements set forth in Exhibit A.

 

3.             Transfer
Restrictions. 
Prior to the satisfaction of the conditions set forth in Exhibit A,
the Awardee shall not sell, assign, pledge or otherwise transfer (voluntarily
or involuntarily) any of the Restricted Shares. 
Upon satisfaction of the conditions set forth in Exhibit A
with respect to Restricted Shares, the transfer restrictions set forth in this Section shall
lapse with respect to the Restricted Shares for which such conditions are
satisfied.  As a condition of the grant
of this award, Awardee may be required to execute a stock power in blank in the
form of Exhibit B hereto with respect to any shares issued pursuant
to this Agreement.

 

4.             Adjustment of Shares.  Notwithstanding anything
contained herein to the contrary, in the event of any change in
the Company’s Common Stock resulting from a corporate transaction including,
but not limited to, a subdivision or consolidation, reorganization,
recapitalization, merger, share split, reverse share split, share distribution,
combination of shares or the payment of a share dividend, the Restricted Shares
shall be treated in the same manner in any such transaction as other Common
Stock.  Any Common Stock or other
securities received by the Awardee as a
result of such transaction with respect to the

 

 

Restricted
Shares shall be subject to the restrictions and conditions set forth herein and
in the attached Exhibit A.

 

5.             Rights as Stockholder.  Except as provided by Section 3 hereof,
the Awardee shall be entitled to all of the rights of a stockholder with
respect to the Restricted Shares as of the Award Date, including, but not
limited to, the right to vote such shares and receive dividends and other
distributions payable with respect to same.

 

6.             Recording; Escrow of Share
Certificates. 
As soon as reasonably practicable after the Award Date, the Company
shall issue stock certificates in the Awardee’s name that correspond to the
Restricted Shares (the “Certificates”), and shall hold such Certificates in
escrow for the Awardee’s benefit, properly endorsed for transfer, until such time
as the Restricted Shares are forfeited to the Company or all restrictions
thereon lapse, or, rather, arrange for the recording of such grant on its (or
its delegate’s) books, with such Certificates to be issued upon the lapsing of
restrictions on such Restricted Shares. 
The Company shall not be liable for any act it may do or fail to do with
respect to the holding of the Certificates in escrow hereunder or the recording
of such Restricted Shares on its (or its delegate’s) books, provided it acts or
fails to act in good faith and in the exercise of its sound judgment.

 

7.             Legend.  To the extent the Company issues
Certificates prior to the lapse of the restrictions on an Awardee’s Restricted
Shares, the Certificates shall bear the following legend:

 

THE SHARES OF STOCK REPRESENTED HEREBY ARE SUBJECT TO THE
TERMS AND CONDITIONS (INCLUDING FORFEITURE CONDITIONS AND TRANSFER
RESTRICTIONS) CONTAINED IN A RESTRICTED STOCK AWARD AGREEMENT BETWEEN CELLDEX
THERAPEUTICS, INC. AND THE HOLDER AND THE TERMS OF THE CELLDEX
THERAPEUTICS, INC. 2008 STOCK OPTION AND INCENTIVE PLAN, AS EACH MAY BE AMENDED FROM TIME TO TIME.  A COPY OF SUCH AGREEMENT IS ON FILE IN THE
OFFICE OF THE SECRETARY OF CELLDEX THERAPEUTICS, INC.

 

8.             Section 83(b) Election.  The Awardee
hereby acknowledges that the Awardee has been informed that, with respect to
the Restricted Shares, the Awardee may
file an election with the Internal Revenue Service, within 30 days of the Award
Date, electing pursuant to Section 83(b) of the Internal Revenue Code
of 1986, as amended, (the “Code”) to be taxed currently on any difference
between the purchase price of the Restricted
Shares and their fair market value on the date of purchase.  Absent such an election, taxable income will
be measured and recognized by the Awardee
at the time or times at which the forfeiture restrictions on the Restricted Shares lapse.  The Awardee
is strongly encouraged to seek the advice of Awardee’s own tax consultants in
connection with the issuance of the Restricted Shares and the advisability of
filing of the election under Section 83(b) of the Code.  A form of Election under Section 83(b) is
attached hereto as Exhibit C for reference.

 

2

 

THE
AWARDEE ACKNOWLEDGES THAT IT IS NOT THE COMPANY’S, BUT RATHER THE AWARDEE’S
SOLE RESPONSIBILITY TO FILE THE ELECTION UNDER SECTION 83(b) TIMELY.

 

Circular 230 Disclaimer:  Nothing contained in this
discussion of certain federal income tax considerations is intended or written
to be used, and cannot be used, for the purpose of (i) avoiding
tax-related penalties under the Internal Revenue Code or (ii) promoting,
marketing, or recommending to another party any transactions or tax-related
matters addressed herein.

 

9.             Government Regulations.  Notwithstanding anything
contained herein to the contrary, the Company’s obligation to issue or deliver
certificates evidencing the Restricted Shares and/or recording of the grant of
such Restricted Shares shall be subject to the terms of all applicable laws, rules and
regulations and to such approvals by any governmental agencies or national
securities exchanges as may be required; provided that the Company shall use
commercially reasonable best efforts to ensure that the terms of all applicable
laws, rules and regulations and approvals by any governmental agencies or
national securities exchanges as may be required are timely satisfied or
obtained, as applicable.

 

10.           Withholding Taxes.  The Company shall have the right
to require the Awardee to remit to the Company, or to withhold from amounts
payable to the Awardee, as compensation or otherwise, an amount sufficient to
satisfy all federal, state and local withholding tax requirements (including,
without limitation, any tax resulting from (i) the expiration of restrictions
set forth hereunder that are applicable to any particular Restricted Shares or (ii) an
election made by the Awardee under Section 83(b) of the Code).

 

11.           Investment Purpose.  The Awardee agrees not to sell,
transfer or otherwise dispose of such shares unless they are either (1) registered
under the Securities Act of 1933 and all applicable state securities laws, or (2) exempt
from such registration in the opinion of Company counsel, and consents to the
Company’s placing of the legend set forth in Section 7 above on the
certificates, if any, summarizing such securities law restrictions; provided
that the Company shall use commercially reasonable best efforts to ensure that
the requirements of either (1) or (2) above are timely satisfied.

 

12.           Awardee Representations.  The Awardee has reviewed with the
Awardee’s own tax advisors the federal, state, local and foreign tax
consequences of the transactions contemplated by this Agreement.  The Awardee is relying solely on such
advisors and not on any statements or representations of the Company or any of
its agents, if any, made to the Awardee. 
The Awardee understands that the Awardee (and not the Company) shall be
responsible for the Awardee’s own tax liability arising as a result of the
transactions contemplated by this Agreement.

 

13.           Service.  Neither this Agreement nor any
action taken hereunder shall be construed as giving the Awardee any right of
continuing service with the Company.

 

14.           Notices.  Notices or communications to be
made hereunder shall be in writing and shall be delivered in person, by
registered mail, by confirmed facsimile or by a reputable overnight courier
service to the Company at its principal office or to the Awardee at Awardee’s
address contained in the records of the Company.

 

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15.           Governing Law.  This Agreement shall be construed
under the laws of the State of Delaware, without regard to conflict of laws
principles.

 

16.           Entire Agreement.  This Agreement constitutes the
entire agreement between the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings relating to the
subject matter of this Agreement.

 

17.           Binding Effect.  This Agreement shall be binding
upon and inure to the benefit of the Company and the Awardee and their
respective permitted successors, assigns, heirs, beneficiaries and
representatives.  This Agreement is
personal to the Awardee and may not be assigned by the Awardee without the
prior consent of the Company.  Any
attempted assignment in violation of this Section shall be null and void.

 

18.           Amendment.  This Agreement may be amended or
modified only by a written instrument executed by both the Company and the
Awardee.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement or caused their duly authorized officer to execute this
Agreement as of the date first written above.

 

	
   

  	
  CELLDEX THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AWARDEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  

 

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EXHIBIT A

 

	
  1.

  	
  (a).

  	
  Awardee’s Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (b).

  	
  Awardee’s Social Security Number:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (c).

  	
  Award Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (d).

  	
  Number of Restricted Shares Granted:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (e).

  	
  Vesting Requirements:

  	
   

  
									

 

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EXHIBIT B

 

STOCK POWER

 

FOR VALUE RECEIVED,
                                    ,
hereby sells, assigns, and transfers unto Celldex Therapeutics, Inc.                        
shares of Common Stock of Celldex Therapeutics, Inc. issued pursuant to,
and subject to the terms of, that certain Restricted Stock Award Agreement by
and between the Company and
                                
dated
                      
    , 20     standing in his/her name
on the books of said corporation [represented
by Certificate No.        herewith], and does hereby irrevocably constitute
and appoint
                                          
as his/her attorney to transfer the said stock on the books of said corporation
with full power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  In
  the presence of:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

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EXHIBIT C

 

ELECTION UNDER SECTION 83(b)

 

OF THE INTERNAL REVENUE CODE OF 1986

 

The undersigned taxpayer
hereby makes an election pursuant to section 83(b) of the Internal Revenue
Code of 1986, as amended, and the regulations thereunder (the “Regulations”),
and in connection with this election supplies the following information:

 

1.             The name, address and taxpayer identification number
of the undersigned are:

 

[Name]

[Address]

Social
Security Number: 
      -    -

 

2.             The election is being made with respect to
                
shares of common stock,
$           par value per
share (the “Stock”), of
                                              ,
a
                                
corporation (the “Company”).

 

3.             The date on which the Stock was transferred to the
undersigned was
                                .  The taxable year for which this election is
being made is calendar year
            .

 

4.             The property is subject to the following restrictions:

 

The above-mentioned shares may not be
transferred and are subject to forfeiture under the terms of
                                                              .  These restrictions lapse                                                             .

 

Disposition
of the Stock is also subject to restrictions imposed under applicable federal
and state securities laws regulating the transfer of unregistered securities.

 

5.             The fair market value of the Stock at the time of
transfer (determined without regard to any lapse restriction, as defined in
§1.83-3(i) of the Regulations) was $      
per share, for an aggregate fair market value of
$                    .

 

6.             The undersigned paid $        
for the Stock.  Therefore,
$                      
(the difference between the full fair market value of the Stock stated above
and the amount paid by the undersigned, if any) is includible in the
undersigned’s gross income as compensation for services.

 

7.             A copy of this election has been furnished to the
Company as required by §1.83-2(d) of the Regulations.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [taxpayer signature]

  

 

7

 

INSTRUCTIONS FOR FILING SECTION 83(B) ELECTION

 

Attached is a form of
election under section 83(b) of the Internal Revenue Code.  You should consult your tax advisor to
determine whether you wish to make an election under section 83(b).  If, after consultation with your tax
advisor, you wish to make such an election, you should complete, sign and
date the election and then proceed as follows:

 

1.             Execute three counterparts of your completed election
(plus one extra counterpart for each person other than you, if any, who
receives property that is the subject of your election), retaining at least one
photocopy for your records.

 

2.             Send one counterpart to the Internal Revenue Service
Center with which you will file your federal income tax return for the current
year via certified mail, return receipt requested.  THE ELECTION SHOULD BE SENT IMMEDIATELY, AS YOU
ONLY HAVE 30 DAYS FROM THE GRANT DATE WITHIN WHICH TO MAKE THE ELECTION —
NO WAIVERS, LATE FILINGS, OR EXTENSIONS ARE PERMITTED.

 

3.             Deliver one counterpart of the completed election to
the Company for its files.

 

4.             If anyone other than you (e.g., one of your family members) will receive property that
is the subject of your election, deliver one counterpart of the completed
election to each such person.

 

5.             Attach one counterpart of the completed election to
your federal income tax return for this year when you file that return next
year.

 

8Exhibit 10.1(a)

 

DYAX CORP.

 

AMENDED AND RESTATED 1995 EQUITY INCENTIVE PLAN

 

Section 1.  Purpose

 

The
purpose of the Dyax Corp. 1995 Equity Incentive Plan (the “Plan”) is to attract
and retain key employees and directors and consultants of the Company and its
Affiliates, to provide an incentive for them to assist the Company to achieve
long-range performance goals, and to enable them to participate in the
long-term growth of the Company.

 

Section 2.  Definitions

 

“Affiliate”
means any business entity in which the Company owns directly or indirectly 50%
or more of the total combined voting power or has a significant financial
interest as determined by the Committee.

 

“Award”
means any Option, Stock Appreciation Right, Performance Share, Restricted
Stock, Stock Unit or Other Stock-Based Award awarded under the Plan.

 

“Board”
means the Board of Directors of the Company.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any
successor to such Code.

 

“Committee”
means the Compensation Committee of the Board or such other committee of the
Board appointed by the Board to administer the Plan or a specified portion
thereof; provided, however, that in any instance the Board of Directors may
take away any action delegated to the Committee hereunder.  If a Committee is authorized to grant Awards
to a Reporting Person or a “covered employee” within the meaning of Section 162(m) of
the Code, each member shall be a “Non-Employee Director” or the equivalent
within the meaning of Rule 16b-3 under the Exchange Act or an “outside
director” or the equivalent within the meaning of Section 162(m) of
the Code, respectively.

 

“Common
Stock” or “Stock” means the Common Stock, $0.01 par value, of the Company.

 

“Company”
means Dyax Corp., a Delaware corporation.

 

“Designated
Beneficiary” means the beneficiary designated by a Participant, in a manner
determined by the Committee, to receive amounts due or exercise rights of the
Participant in the event of the Participant’s death.  In the absence of an effective designation by
a Participant, “Designated Beneficiary” shall mean the Participant’s estate.

 

 

“Effective
Date” means July 13, 1995.

 

“Fair
Market Value” means, with respect to Common Stock or any other property, the
fair market value of such property as determined by the Committee in good faith
or in the manner established by the Committee from time to time.  Unless otherwise determined by the Committee
in good faith, the per share Fair Market Value of the Common Stock as of any
date shall mean (i) if the Common Stock is then listed or admitted to
trading on a national securities exchange, the last reported sale price on such
date on the principal national securities exchange on which the Common Stock is
then listed or admitted to trading or, if no such reported sale takes place on
such date, the average of the closing bid and asked prices on such exchange on
such date or (ii) if the Common Stock is then traded in the
over-the-counter market, the average of the closing bid and asked prices on
such date, as reported by The Wall Street Journal or other appropriate
publication selected by the Committee, for the over-the-counter market.

 

“Incentive
Stock Option” means an option to purchase shares of Common Stock awarded to a
Participant under Section 6 that is intended to meet the requirements of Section 422
of the Code or any successor provision, and any regulation thereunder.

 

“Nonstatutory
Stock Option” means an option to purchase shares of Common Stock awarded to a
Participant under Section 6 that is not intended to be an Incentive Stock
Option.

 

“Option”
means an Incentive Stock Option or a Nonstatutory Stock Option.

 

“Other
Stock-Based Award” means an Award, other than an Option, Stock Appreciation
Right, Performance Share, Restricted Stock or Stock Unit, having a Common Stock
element and awarded to a Participant under Section 11.

 

“Participant”
means a person selected by the Committee to receive an Award under the Plan.

 

“Performance
Cycle” or “Cycle” means the period of time selected by the Committee during
which performance is measured for the purpose of determining the extent to
which an award of Performance Shares has been earned.

 

“Performance
Goals” means with respect to any Performance Cycle, one or more objective
performance goals based on one or more of the following objective criteria
established by the Committee prior to the beginning of such Performance Cycle
or within such period after the beginning of the Performance Cycle as shall
meet the requirements to be considered “pre-established performance goals” for
purposes of Code Section 162(m):  (i) increases
in the price of the Common Stock, (ii) product or service sales or market
share, (iii) revenues, (iv) return on equity, assets, or capital, (v) economic
profit (economic value added), (vi) total shareholder return, (vii) costs,
(viii) expenses, (ix) margins, (x) earnings or earnings per
share, (xi) cash flow, (xii) cash balances (xiii) customer satisfaction, (xiv)
operating profit, (xv) research and development progress, (xvi) clinical trial
progress, (xvii) licensing, (xviii) product development, (xix) manufacturing,
or (xx) any combination of the foregoing, including without limitation, goals
based on any of such measures relative to appropriate peer groups or market
indices.  Such Performance Goals may be
particular to a Participant or may be based, in whole or in part, on the
performance of the division, department, line of business, subsidiary, or other
business unit, 

 

2

 

whether
or not legally constituted, in which the Participant works or on the
performance of the Company generally.

 

“Performance
Shares” mean shares of Common Stock, which may be earned by the achievement of
performance goals, awarded to a Participant under Section 8.

 

“Reporting
Person” means a person subject to Section 16 of the Securities Exchange
Act of 1934 or any successor provision.

 

“Restricted
Period” means the period of time selected by the Committee during which an
Award may be forfeited to the Company pursuant to the terms and conditions of
such Award.

 

“Restricted
Stock” means shares of Common Stock subject to forfeiture awarded to a
Participant under Section 9.

 

“Stock
Appreciation Right” or “SAR” means a right to receive any excess in value of
shares of Common Stock over the exercise price awarded to a Participant under Section 7.

 

“Stock
Unit” means an award of Common Stock or units, including without limitation
units of Restricted Stock, that are valued in whole or in part by reference to,
or otherwise based on, the value of Common Stock, awarded to a Participant
under Section 10.

 

“Transferable
for value” means a transfer on terms that would prevent the Company from
relying on Securities and Exchange Commission Form S-8 (or any successor
form) with respect to the issuance of the Common Stock underlying the
respective Award.

 

Section 3.  Administration

 

The
Plan shall be administered by the Committee; provided, however, that in any
instance the Board of Directors may take any action delegated hereunder to the
Committee.  The Committee shall have
authority to adopt, alter and repeal such administrative rules, guidelines and
practices governing the operation of the Plan as it shall from time to time
consider advisable, and to interpret the provisions of the Plan.  The Committee’s decisions shall be final and
binding.  To the extent permitted by
applicable law, the Committee may delegate to one or more executive officers of
the Company the power to make Awards to Participants who are not Reporting
Persons or covered employees and all determinations under the Plan with respect
thereto, provided that the Committee shall fix the maximum amount of such
Awards for all such Participants and a maximum for any one Participant.

 

Section 4.  Eligibility

 

All
employees and, in the case of Awards other than Incentive Stock Options,
directors and consultants of the Company or any Affiliate, capable of
contributing significantly to the successful performance of the Company, other
than a person who has irrevocably elected not to be eligible, are eligible to
be Participants in the Plan.  Incentive
Stock Options may be awarded only to persons eligible to receive such Options
under the Code.

 

3

 

Section 5.  Stock Available for Awards

 

(a)           Subject to
adjustment under subsection (b), and after giving effect to the 0.652-for-one
reverse stock split of the Company’s Common Stock affected in March 1998,
Awards may be made under the Plan for up to Eight Million Three Hundred Fifty
Thousand (18,350,000) shares of Common Stock, which number includes shares
previously issued upon exercise of options granted under the Plan.  The maximum number of shares of Common Stock
subject to Awards that may be granted to any Participant shall not exceed
225,000 shares in the aggregate in any calendar year, except that for grants to
a new employee during the calendar year in which his or her service as an
employee first commences such number shall not exceed 450,000 shares, and that
both limits are subject to adjustment under subsection (b).  If any Award in respect of shares of Common
Stock expires or is terminated unexercised or is forfeited, the shares subject
to such Award, to the extent of such expiration, termination or forfeiture,
shall again be available for award under the Plan.  Common Stock issued through the assumption or
substitution of outstanding grants from an acquired company shall not reduce
the shares available for Awards under the Plan. 
Shares issued under the Plan may consist in whole or in part of
authorized but unissued shares or treasury shares.

 

(b)           In the event that any stock
dividend, extraordinary cash dividend, creation of a class of equity
securities, recapitalization, reorganization, merger, consolidation, split-up,
spin-off, combination, exchange of shares, warrants or rights offering to
purchase Common Stock at a price substantially below fair market value, or
other similar transaction affects the Common Stock then an equitable adjustment
shall be made (subject, in the case of Incentive Stock Options, to any
limitation required under the Code) to any or all of (i) the number and
kind of shares in respect of which Awards may be made under the Plan, (ii) the
number and kind of shares subject to outstanding Awards, and (iii) the
award, exercise or conversion price with respect to any of the foregoing as
determined by the Committee to be appropriate, and if considered appropriate,
the Committee may make provision for a cash payment with respect to an
outstanding Award, provided that the number of shares subject to any Award
shall always be a whole number.

 

Section 6.  Stock Options

 

(a)           Subject to the
provisions of the Plan, the Committee may award Incentive Stock Options and
Nonstatutory Stock Options and determine the number of shares to be covered by
each Option, the option price therefor and the conditions and limitations
applicable to the exercise of the Option. 
The terms and conditions of Incentive Stock Options shall be subject to
and comply with Section 422 of the Code or any successor provision and any
regulations thereunder.  No Incentive
Stock Option may be granted hereunder more than ten years after the last date
on which the Plan was approved for purposes of Section 422 of the Code.

 

(b)           The Committee
shall establish the option price at the time each Option is awarded, which
price shall not be less than 100% of the Fair Market Value of the Common Stock
on the date of award.

 

(c)           Each Option
shall be exercisable at such times and subject to such terms and conditions as
the Committee may specify in the applicable Award or thereafter.  The Committee

 

4

 

may
impose such conditions with respect to the exercise of Options, including
conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable.

 

(d)           No shares shall
be delivered pursuant to any exercise of an Option until payment in full of the
option price therefor is received by the Company.  Such payment may be made in whole or in part
in cash or, to the extent permitted by the Committee at or after the award of
the Option, by delivery of a note or shares of Common Stock owned by the
optionee, including Restricted Stock, or by retaining shares otherwise issuable
pursuant to the Option, in each case valued at their Fair Market Value on the
date of delivery or retention, or such other lawful consideration as the
Committee may determine.

 

(e)           The Committee
may provide that, subject to such conditions as it considers appropriate, upon
the delivery or retention of shares to the Company in payment of an Option, the
Participant automatically be awarded an Option for up to the number of shares
so delivered.

 

Section 7.  Stock Appreciation Rights

 

(a)           Subject to the
provisions of the Plan, the Committee may award SARs in tandem with an Option
(at or after the award of the Option), or alone and unrelated to an
Option.  SARs in tandem with an Option
shall terminate to the extent that the related Option is exercised, and the
related Option shall terminate to the extent that the tandem SARs are
exercised.  SARs granted in tandem with
Options shall have an exercise price not less than the exercise price of the
related Option.  SARs granted alone and
unrelated to an Option shall
have an exercise price not less than 100% of the Fair Market Value of the
Common Stock on the date of award may be granted at such exercise prices as the
Committee may determine.  The Committee
shall determine the manner of calculating the excess in value of the shares of
Common Stock over the exercise price of a Stock Appreciation Right.

 

(b)           An SAR related
to an Option, which SAR can only be exercised upon or during limited periods
following a change in control of the Company, may entitle the Participant to
receive an amount based upon the highest price paid or offered for Common Stock
in any transaction relating to the change in control or paid during the
thirty-day period immediately preceding the occurrence of the change in control
in any transaction reported in any stock market in which the Common Stock is
usually traded.

 

Section 8.  Performance Shares

 

(a)           Subject to the
provisions of the Plan, the Committee may award Performance Shares and
determine the number of such shares for each Performance Cycle and the duration
of each Performance Cycle.  There may be
more than one Performance Cycle in existence at any one time, and the duration
of Performance Cycles may differ from each other.  The payment value of Performance Shares shall
be equal to the Fair Market Value of the Common Stock on the date the
Performance Shares are earned or, in the discretion of the Committee, on the
date the Committee determines that the Performance Shares have been earned.

 

(b)           The Committee
shall establish Performance Goals for each Cycle, for the purpose of determining
the extent to which Performance Shares awarded for such Cycle are earned, on
the basis of such criteria and to accomplish such objectives as the Committee
may from time to

 

5

 

time select.  During any Cycle,
the Committee may adjust the performance goals for such Cycle as it deems
equitable in recognition of unusual or non-recurring events affecting the
Company, changes in applicable tax laws or accounting principles, or such other
factors as the Committee may determine.

 

(c)           As soon as
practicable after the end of a Performance Cycle, the Committee shall determine
the number of Performance Shares that have been earned on the basis of
performance in relation to the established performance goals.  The payment values of earned Performance
Shares shall be distributed to the Participant or, if the Participant has died,
to the Participant’s Designated Beneficiary, as soon as practicable
thereafter.  The Committee shall
determine, at or after the time of award, whether payment values will be
settled in whole or in part in cash or other property, including Common Stock
or Awards.

 

Section 9.  Restricted Stock

 

(a)           Subject to the
provisions of the Plan, the Committee may award shares of Restricted Stock and
determine the duration of the Restricted Period during which, and the
conditions under which, the shares may be forfeited to the Company and the
other terms and conditions of such Awards. 
Shares of Restricted Stock may be issued for no cash consideration or such
minimum consideration as may be required by applicable law.

 

(b)           Shares of
Restricted Stock may not be sold, assigned, transferred, pledged or otherwise
encumbered, except as permitted by the Committee, during the Restricted
Period.  Shares of Restricted Stock shall
be evidenced in such manner as the Committee may determine.  Any certificates issued in respect of shares
of Restricted Stock shall be registered in the name of the Participant and
unless otherwise determined by the Committee, deposited by the Participant,
together with a stock power endorsed in blank, with the Company.  At the expiration of the Restricted Period,
the Company shall deliver such certificates to the Participant or if the
Participant has died, to the Participant’s Designated Beneficiary.

 

Section 10.  Stock Units

 

(a)           Subject to the
provisions of the Plan, the Committee may award Stock Units subject to such
terms, restrictions, conditions, performance criteria, vesting requirements and
payment rules as the Committee shall determine.

 

(b)           Shares of
Common Stock awarded in connection with a Stock Unit Award shall be issued for
no cash consideration or such minimum consideration as may be required by
applicable law.

 

Section 11.            Other
Stock-Based Awards

 

(a)           Subject to the
provisions of the Plan, the Committee may make other awards of Common Stock and
other awards that are valued in whole or in part by reference to, or are
otherwise based on, Common Stock, including without limitation convertible
preferred stock, convertible debentures, exchangeable securities and Common
Stock awards or options.  Other
Stock-Based Awards may be granted either alone or in tandem with other Awards
granted under the Plan and/or cash awards made outside of the Plan.

 

6

 

(b)           The Committee
may establish performance goals, which may be based on performance goals
related to book value, subsidiary performance or such other criteria as the
Committee may determine, Restricted Periods, Performance Cycles, conversion prices,
maturities and security, if any, for any Other Stock-Based Award.  Other Stock-Based Awards may be sold to
Participants at the face value thereof or any discount therefrom or awarded for
no consideration or such minimum consideration as may be required by applicable
law.

 

Section 12.  General Provisions Applicable to Awards

 

(a)           Documentation.  Each Award under the Plan shall be evidenced
by a writing delivered to the Participant specifying the terms and conditions
thereof and containing such other terms and conditions not inconsistent with
the provisions of the Plan as the Committee considers necessary or advisable to
achieve the purposes of the Plan or to comply with applicable tax and
regulatory laws and accounting principles.

 

(b)           Committee
Discretion.  Each type of
Award may be made alone, in addition to or in relation to any other type of
Award, in the discretion of the Committee. 
The terms of each type of Award need not be identical, and the Committee
need not treat Participants uniformly.  
Except as otherwise provided by the Plan or a particular Award, any
determination with respect to an Award may be made by the Committee at the time
of award or at any time thereafter, including without limitation any
determination regarding the achievement or satisfaction of any Performance
Goals, restrictions or other conditions to vesting, exercise, or settlement of
an Award.

 

(c)           Settlement.  The Committee shall determine whether Awards
are settled in whole or in part in cash, Common Stock, other securities of the
Company, Awards or other property, and the manner of determining the amount or
value thereof.   Without limiting the
foregoing, the Committee may, subject to applicable law, permit such payment to
be made in whole or in part in cash or by surrender of shares of Common Stock
(which may be shares retained from the respective Award) valued at their Fair
Market Value on the date of surrender, or such other lawful consideration,
including a payment commitment of a financial or brokerage institution, as the
Committee may determine.  The Company may
accept, in lieu of actual delivery of stock certificates, an attestation by the
Participant in form acceptable to the Committee that he or she owns of record
the shares to be tendered free and clear of claims and other encumbrances.  The Committee may permit a Participant to
defer all or any portion of a payment under the Plan, including the crediting
of interest on deferred amounts denominated in cash and dividend equivalents on
amounts denominated in Common Stock.

 

(d)           Dividends
and Cash Awards.  In the
discretion of the Committee, any Award under the Plan may provide the
Participant with (i) dividends or dividend equivalents payable currently
or deferred with or without interest, and (ii) cash payments in lieu of or
in addition to an Award.

 

(e)           Termination of Service.  The Committee shall determine the effect on
an Award of the disability, death, retirement or other termination of
employment or other service of a Participant and the extent to which, and the period
during which, the Participant’s legal representative, guardian or Designated
Beneficiary may receive payment of an Award or

 

7

 

exercise rights thereunder.  Unless the Committee otherwise provides in any
case, a Participant’s employment or other service shall have terminated for
purposes of this Plan at the time the entity by which the Participant is
employed or to which he or she renders such service ceases to be an Affiliate
of the Company.

 

(f)           Change
in Control.  In order to
preserve a Participant’s rights under an Award in the event of a change in
control of the Company (as defined by the Committee), the Committee in its
discretion may, at the time an Award is made or at any time thereafter, take
one or more of the following actions: (i) provide for the acceleration of
any time period relating to the exercise or realization of the Award, (ii) provide
for the purchase of the Award upon the Participant’s request for an amount of
cash or other property that could have been received upon the exercise or
realization of the Award had the Award been currently exercisable or payable, (iii) adjust
the terms of the Award in a manner determined by the Committee to reflect the
change in control, (iv) cause the Award to be assumed, or new rights
substituted therefor, by another entity, or (v) make such other provision
as the Committee may consider equitable and in the best interests of the
Company.

 

(g)           Loans.  The Committee may authorize the making of
loans or cash payments to Participants in connection with any Award under the
Plan, which loans may be secured by any security, including Common Stock,
underlying or related to such Award (provided that such Loan shall not exceed
the Fair Market Value of the security subject to such Award), and which may be
forgiven upon such terms and conditions as the Committee may establish at the
time of such loan or at any time thereafter.

 

(h)           Withholding
Taxes.  The Participant shall pay to
the Company, or make provision satisfactory to the Committee for payment of,
any taxes required by law to be withheld in respect of Awards under the Plan no
later than the date of the event creating the tax liability.  In the Committee’s discretion, such tax
obligations may be paid in whole or in part in shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their Fair Market Value on the date of delivery.  The Company and its Affiliates may, to the
extent permitted by law, deduct any such tax obligations from any payment of
any kind otherwise due to the Participant.

 

(i)            Foreign
Nationals.  Awards may
be made to Participants who are foreign nationals or employed outside the
United States on such terms and conditions different from those specified in
the Plan as the Committee considers necessary or advisable to achieve the
purposes of the Plan or to comply with applicable laws.

 

(j)            Amendment
of Award.  The
Committee may amend, modify or terminate any outstanding Award, including
changing the date of vesting, exercise or settlement, causing the Award to be
assumed by another entity, and converting an Incentive Stock Option to a
Nonstatutory Stock Option, provided that the Participant’s consent to such
action shall be required unless the Committee determines that the action,
taking into account any related action, would not materially and adversely
affect the Participant.  The foregoing
notwithstanding, without further approval of the stockholders of the Company,
the Committee shall not authorize the amendment of any outstanding Option or
Stock Appreciation Right to reduce the exercise

 

8

 

price and no Option or Stock Appreciation Right shall be canceled and
replaced with an Award exercisable for Common Stock at a lower exercise price.

 

(k)           Limitations
on  Transferability of Awards.  No Award shall be transferable
except upon such terms and conditions and to such extent as the Committee
determines, provided that no Award shall be transferable for value and Incentive
Stock Options may be transferable only to the extent permitted by the Code.

 

(l)            Section 409A.       No Award to any Participant subject to United States
income taxation shall provide for the deferral of compensation that does not
comply with Section 409A of the Code and any regulations thereunder.

 

Section 13.  Miscellaneous

 

(a)           No
Right To Employment.  No person
shall have any claim or right to be granted an Award, and the grant of an Award
shall not be construed as giving a Participant the right to continued
employment  Neither the adoption,
maintenance, or operation of the Plan nor any Award hereunder shall confer upon
any person any right with respect to the continuance of his or her employment
by or other service with the Company or any Affiliate nor shall they interfere
with the rights of the Company or any Affiliate to terminate or otherwise
change the terms of such service at any time, including, without limitation,
the right to promote, demote or otherwise re-assign any person from one position
to another within the Company or any Affiliate. 
Unless the Committee otherwise provides in any case, the service of a
Participant with an Affiliate shall be deemed to terminate for purposes of the
Plan when such Affiliate ceases to be an Affiliate of the Company.

 

(b)           No
Rights As Stockholder. 
Subject to the provisions of the applicable Award, no Participant or
Designated Beneficiary shall have any rights as a stockholder with respect to
any shares of Common Stock to be distributed under the Plan until he or she
becomes the holder thereof.  A
Participant to whom Common Stock is awarded shall be considered the holder of
the Stock at the time of the Award except as otherwise provided in the
applicable Award.

 

(c)           Effective
Date.  Subject to the approval of the
stockholders of the Company, the Plan shall be effective on the Effective
Date.  Before such approval, Awards may
be made under the Plan expressly subject to such approval.

 

(d)           Amendment
of Plan.  The
Committee may amend, suspend or terminate the Plan or any portion thereof at
any time, subject to any stockholder approval that the Committee determines to
be necessary or advisable.

 

(e)           Governing
Law.  The provisions of the Plan
shall be governed by and interpreted in accordance with the laws of the State
of Delaware.

 

 

This Plan was approved by the Board of Directors on July 13,
1995.

 

This Plan was approved by the stockholders on August 8,
1995.

 

9

 

This Plan was amended by the Board of Directors on October 17,
1996, and such amendment was approved by the stockholders effective as of October 23,
1996.

 

This Plan was further amended by the Board of
Directors on October 22, 1997 and on January 28, 1998, and such
amendments were approved by the stockholders effective as of March 23,
1998.

 

This Plan was further amended by the Board of
Directors on August 13, 1998, and such amendment was approved by the
stockholders effective as of August 28, 1998.

 

This Plan was further amended by the Board of
Directors on August 5, 1999, and such amendment was approved by the
stockholders effective as of October 29, 1999.

 

This Plan was further amended by the Board of
Directors on March 16, 2000, and such amendment was approved by the
stockholders effective as of March 20, 2000.

 

This Plan was further amended by the Board of
Directors on October 26, 2001.

 

This Plan was further amended by the Board of
Directors on February 7, 2002, and such amendment was approved by the
stockholders effective as of May 16, 2002.

 

This Plan was further amended by the Board of
Directors on March 2, 2005, and such amendment was approved by the
stockholders effective as of May 19, 2005.

 

This Plan was further amended by the Compensation Committee
of the Board of Directors on April 4, 2007 and such amendment was approved
by the stockholders effective as of May 17, 2007.

 

This Plan was further amended by the Compensation Committee
of the Board of Directors on March 25, 2009 and such amendment was
approved by the stockholders effective as of May 14, 2009.

 

10

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