Document:

2003 Stock-Based Incentive Compensation Plan

 Exhibit 10.10 
  
 ADOLOR CORPORATION 
  
 2003 STOCK-BASED INCENTIVE COMPENSATION PLAN 
  
 Adopted February 27, 2003 
 Amended
January 6, 2004 
  

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 ADOLOR CORPORATION 
  
 2003 STOCK-BASED INCENTIVE COMPENSATION PLAN 
  
 1. Purpose of the Plan 
  
 The purpose of the Plan is to assist the Company, its Subsidiaries and Affiliates in attracting and retaining valued
Employees, Consultants and Directors by offering them a greater stake in the Company’s success and a closer identification with it, and to encourage ownership of the Company’s stock by such Employees, Consultants and Directors. 

 
 2. Definitions 
  
 2.1. “Affiliate” means any entity other than the Subsidiaries in
which the Company has a substantial direct or indirect equity interest, as determined by the Board. 
  
 2.2. “Award” means an award of Deferred Stock, Restricted Stock or Options under the Plan. 
  
 2.3. “Board” means the Board of Directors of the Company.

  
 2.4. “Cause” means the Participant’s (i)
conviction for committing a felony under federal law or of the state in which such action occurred, (ii) dishonesty in the course of fulfilling his or her employment or consulting duties or (iii) willful and deliberate failure to perform his or her
employment or consulting duties in any material respect, or such other similar events as shall be determined by the Committee. The Committee shall have the sole discretion to determine whether “Cause” as set forth in (i), (ii) or (iii)
above exists, and its determination shall be final. 
  
 2.5.
“Change of Control” means the happening of any of the following: 
  
 (i) any Person, other than (a) the Company or any of its Subsidiaries, (b) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries, (c) an underwriter
temporarily holding securities pursuant to an offering of such securities, (d) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, or (e) a
Holder or any “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) which includes such Holder, becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Subsidiaries) representing more than 20% of either the then outstanding shares of Stock of the
Company or the combined voting power of the Company’s then outstanding securities; 
  
 (ii) the individuals who serve on the Board as of the effective date hereof (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however,
any Person who becomes a director subsequent to the effective date hereof, whose election or nomination for election was approved by a vote of at least a majority of the directors then constituting the Incumbent Board, shall for purposes of this
clause (ii) be considered an Incumbent Director; 
  
 (iii) the
consummation of a merger or consolidation of the Company in which the stockholders of the Company immediately prior to such merger or consolidation, would not, immediately after the merger or consolidation, beneficially own (as such term is defined
in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the securities of the corporation issuing cash or securities in the merger or consolidation (or of its
ultimate parent corporation, if any); or 
  

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 (iv) the stockholders of the Company approve a plan of complete liquidation or dissolution of the
Company, or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s
assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by Persons in substantially the same proportion as their ownership of the Company immediately prior to such sale. 
  
 If an event set forth in clause (i)(e) of the definition of “Change of Control”
occurs, a Change of Control shall be deemed to have occurred for each Holder other than any Holder who alone or as part of any “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its
Subsidiaries) representing more than 20% of either the then outstanding shares of Stock of the Company or the combined voting power of the Company’s then outstanding securities. 
  
 2.6. “Code” means the Internal Revenue Code of 1986, as amended. 
  
 2.7. “Common Stock” means the common stock of the Company, par
value $.0001 per share, or such other class or kind of shares or other securities resulting from the application of Section 9. 
  
 2.8. “Company” means Adolor Corporation, a Delaware corporation, or any successor corporation. 
  
 2.9. “Committee” means the committee designated by the Board to
administer the Plan under Section 4. The Committee shall have at least two members, each of whom shall be a member of the Board, a Non-Employee Director and an Outside Director. 
  
 2.10. “Consultant” means a key consultant or advisor to the Company, its Subsidiaries or Affiliates who is not an
Employee. 
  
 2.11. “Deferred Stock” means an Award made
under Section 6 of the Plan to receive Common Stock at the end of a specified Deferral Period. 
  
 2.12. “Deferral Period” means the period during which the receipt of a Deferred Stock Award under Section 6 of the Plan will be deferred. 
  
 2.13. “Director” means a member of the Board. 
  
 2.14. “Disability” means disabled within the meaning of section 22(e)(3) of the Code. 
  
 2.15. “Employee” means an officer or other employee of the Company,
a Subsidiary or an Affiliate including a director who is such an employee. 
  
 2.16. “Fair Market Value” means, on any given date (i) if shares of Common Stock are then listed on a national stock exchange, the closing sales price per share of Common Stock on the exchange for the last
preceding date on which there was a sale of shares of Common Stock on such exchange, as determined by the Committee, (ii) if shares of Common Stock are then listed on the Nasdaq National Market or the Nasdaq SmallCap Market, the closing sales price
(or the closing bid price if no sales were reported) per share of Common 
  

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 Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, for the last preceding date on which
there was a sale of shares of Common Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, as determined by the Committee, (iii) if shares of Common Stock are not then listed on a national stock exchange, the Nasdaq
National Market or the Nasdaq Small Cap Market but are then traded on an over-the-counter market, the average of the closing bid and asked prices for the shares of Common Stock in such over-the-counter market for the last preceding date on which
there was a sale of such shares of Common Stock in such market, as determined by the Committee, or (iv) if shares of Common Stock are not then listed on a national stock exchange or traded on an over-the-counter market, or if the Committee
determines that the value as determined pursuant to Section (i), (ii) or (iii) above does not reflect fair market value, the Committee shall determine fair market value after taking into account such factors that it deems appropriate. 
  
 2.17. “Holder” means a Participant to whom an Award is made.

  
 2.18. “Incentive Stock Option” means an Option
intended to meet the requirements of an incentive stock option as defined in section 422 of the Code and designated as an Incentive Stock Option. 
  
 2.19. “1934 Act” means the Securities Exchange Act of 1934, as amended. 
  
 2.20. “Non-Employee Director” means a member of the Board who meets the definition of a “non-employee
director” under Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act. 
  
 2.21. “Non-Qualified Option” means an Option not intended to be an Incentive Stock Option, and designated as a Non-Qualified Option. 

 
 2.22. “Option” means any stock option granted from time to time
under Section 8 of the Plan. 
  
 2.23. “Outside
Director” means a member of the Board who meets the definition of an “outside director” under Treasury Regulation § 1.162-27(e)(3)(i). 
  
 2.24. “Participant” means a Consultant, Director or Employee. 
  
 2.25. “Performance Goal” means a goal that must be met by the end of a period specified by the Committee (but that
is substantially uncertain to be met before the grant of an Award) based upon: (i) the price of Common Stock, (ii) the market share of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (iii) sales by the Company, its
Subsidiaries or Affiliates (or any business unit thereof), (iv) earnings per share of Common Stock, (v) return on shareholder equity of the Company, (vi) costs of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (vii) cash
flow of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (viii) return on total assets of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (ix) return on invested capital of the Company, its
Subsidiaries or Affiliates (or any business unit thereof), (x) return on net assets of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (xi) operating income of the Company, its Subsidiaries or Affiliates (or any business
unit thereof), (xii) net income of the Company, its Subsidiaries or Affiliates (or any business unit thereof), or (xiii) any other goal the Committee deems appropriate. 
  
 2.26. “Person” means any individual, partnership, corporation, company, limited liability company, association,
trust, joint venture, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 
  
 2.27. “Plan” means the Adolor Corporation 2003 Stock-Based Incentive Compensation Plan herein set forth, as amended from time to time.

  

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 2.28. “Restricted Stock” means Common Stock awarded by the Committee under Section 7 of the
Plan. 
  
 2.29. “Restriction Period” means the period
during which Restricted Stock awarded under Section 7 of the Plan is subject to forfeiture. 
  
 2.30. “Retirement” means retirement from the active employment of the Company, a Subsidiary or an Affiliate pursuant to the relevant provisions of the applicable pension plan of such entity or as otherwise
determined by the Board. 
  
 2.31. “Subsidiary” means
any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company (or any subsequent parent of the Company) if each of the corporations other than the last corporation in the unbroken chain owns stock
possession 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 2.32. “Ten Percent Shareholder” means a Person who on any given date owns, either directly or indirectly (taking into account the attribution
rules contained in section 424(d) of the Code), stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary. 
  
 3. Eligibility 
  
 Any Participant is eligible to receive an Award. 
  
 4. Administration and Implementation of Plan 
  
 4.1. The Plan shall be administered by the Committee, which shall have full power to interpret and administer the Plan and full authority to act in
selecting the Participants to whom Awards will be granted, in determining the type and amount of Awards to be granted to each such Participant, the terms and conditions of Awards granted under the Plan and the terms of agreements which will be
entered into with Holders. Notwithstanding the foregoing, the Board may designate one or more of its members or officers of the Company to serve as a secondary committee and delegate to the secondary committee authority to grant Awards to eligible
individuals who are not subject to the requirements of Rule 16b-3 under the 1934 Act or section 162(m) of the Code. The secondary committee shall have the same authority with respect to selecting the individuals to whom such Awards are granted and
establishing the terms and conditions of such Awards as the Committee has under the terms of the Plan. 
  
 4.2. The Committee’s powers shall include, but not be limited to, the power to determine whether, to what extent and under what circumstances an
Option may be exchanged for cash, Restricted Stock, Deferred Stock or some combination thereof; to determine whether, to what extent and under what circumstances an Award is made and operates on a tandem basis with other Awards made hereunder; to
determine whether, to what extent and under what circumstances Common Stock or cash payable with respect to an Award shall be deferred, either automatically or at the election of the Holder (including the power to add deemed earnings to any such
deferral); to grant Awards (other than Incentive Stock Options) that are transferable by the Holder; and to determine the effect, if any, of a change in control of the Company upon outstanding Awards. 
  
 4.3. The Committee shall have the power to adopt regulations for carrying out
the Plan and to make changes in such regulations as it shall, from time to time, deem advisable. The Committee shall have the power unilaterally and without approval of a Holder to amend an existing Award in order to carry out the purposes of the
Plan so long as such an amendment does not take away any benefit granted to a Holder by the Award and as long as the amended Award comports with the terms of the Plan. Any interpretation by the Committee of the terms and provisions of the Plan and
the administration thereof, and all action taken by the Committee, shall be final and binding on Holders. 
  

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 4.4. The Committee may condition the grant of any Award or the lapse of any Deferral or Restriction
Period (or any combination thereof) upon the Holder’s achievement of a Performance Goal that is established by the Committee before the grant of the Award. The Committee shall have discretion to determine the specific targets with respect to
each Performance Goal. Before granting an Award or permitting the lapse of any Deferral or Restriction Period subject to this Section, the Committee shall certify that an individual has satisfied the applicable Performance Goal. 
  
 5. Shares of Stock Subject to the Plan 
  
 5.1. Subject to adjustment as provided in Section 9, the total number of
shares of Common Stock available for Awards under the Plan shall be 3,500,000 shares. 
  
 5.2. The maximum number of shares of Common Stock subject to Awards that may be granted to any Participant shall not exceed 500,000 during any calendar year (the “Individual Limit”). Subject to Section 5.3,
Section 9 and Section 12.7, any Award that is canceled or repriced by the Committee shall count against the Individual Limit. Notwithstanding the foregoing, the Individual Limit may be adjusted to reflect the effect on Awards of any transaction or
event described in Section 9. 
  
 5.3. Any shares issued by the
Company through the assumption or substitution of outstanding grants from an acquired company shall not (i) reduce the shares available for Awards under the Plan, or (ii) be counted against the Individual Limit. Any shares issued hereunder may
consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares subject to any Award granted hereunder are forfeited or such Award otherwise terminates without the issuance of such shares or the payment of other
consideration in lieu of such shares, the shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for Awards under the Plan. 
  
 6. Deferred Stock 
  
 An Award of Deferred Stock is an agreement by the Company to deliver to the recipient a specified number of shares of Common Stock at the end of a
specified deferral period or periods. Such an Award shall be subject to the following terms and conditions: 
  
 6.1. Deferred Stock Awards shall be evidenced by Deferred Stock agreements. Such agreements shall conform to the requirements of the Plan and may contain
such other provisions as the Committee shall deem advisable. 
  
 6.2. Upon determination of the number of shares of Deferred Stock to be awarded to a Holder, the Committee shall direct that the same be credited to the Holder’s account on the books of the Company but that issuance and delivery of the
same shall be deferred until the date or dates provided in Section 6.5 hereof. Prior to issuance and delivery hereunder the Holder shall have no rights as a stockholder with respect to any shares of Deferred Stock credited to the Holder’s
account. 
  
 6.3. Subject to the provisions of Section 6.4
concerning Deferred Stock Awards that are subject to the achievement of Performance Goals, amounts equal to any dividends declared during the Deferral Period with respect to the number of shares covered by a Deferred Stock Award will be paid to the
Holder currently, or deferred and deemed to be reinvested in additional Deferred Stock, or otherwise reinvested on such terms as are determined at the time of the Award by the Committee, in its sole discretion, and specified in the Deferred Stock
agreement. 
  

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 6.4. The Committee may condition the grant of an Award of Deferred Stock or the expiration of the
Deferral Period upon the Holder’s achievement of one or more Performance Goal(s) specified in the Deferred Stock agreement. Unless otherwise specified in a Deferred Stock agreement, if the Holder fails to achieve the specified Performance
Goal(s), the Committee shall not grant the Deferred Stock Award to the Holder, or the Holder shall forfeit the Award and no Common Stock shall be transferred to him pursuant to the Deferred Stock Award. Dividends paid during the Deferral Period on
Deferred Stock subject to a Performance Goal shall be reinvested in additional Deferred Stock and the expiration of the Deferral Period for such Deferred Stock shall be subject to the Performance Goal(s) previously established by the Committee.

  
 6.5. The Deferred Stock agreement shall specify the duration
of the Deferral Period, taking into account termination of employment or service on account of death, Disability, Retirement or other cause. The Deferral Period may consist of one or more installments. At the end of the Deferral Period or any
installment thereof the shares of Deferred Stock applicable to such installment credited to the account of a Holder shall be issued and delivered to the Holder (or, where appropriate, the Holder’s legal representative) in accordance with the
terms of the Deferred Stock agreement. The Committee may, in its sole discretion, accelerate the delivery of all or any part of a Deferred Stock Award or waive the deferral limitations for all or any part of a Deferred Stock Award. 
  
 7. Restricted Stock 
  
 An Award of Restricted Stock is a grant by the Company of a specified number
of shares of Common Stock to the Participant, which shares are subject to forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions: 
  
 7.1. Restricted Stock shall be evidenced by Restricted Stock agreements.
Such agreements shall conform to the requirements of the Plan and may contain such other provisions as the Committee shall deem advisable. 
  
 7.2. Upon determination of the number of shares of Restricted Stock to be granted to the Holder, the Committee shall direct that a certificate or
certificates representing the number of shares of Common Stock be issued to the Holder with the Holder designated as the registered owner. The certificate(s) representing such shares shall be legended as to sale, transfer, assignment, pledge or
other encumbrances during the Restriction Period and deposited by the Holder, together with a stock power endorsed in blank, with the Company, to be held in escrow during the Restriction Period. 
  
 7.3. During the Restriction Period the Holder shall have the right to vote
the shares of Restricted Stock. Subject to the provisions of Section 7.4 concerning Restricted Stock Awards that are subject to the achievement of Performance Goals, amounts equal to any dividends declared during the Restriction Period with respect
to the number of shares covered by a Restricted Stock Award will be paid to the Holder currently, or deferred and deemed to be reinvested in additional Restricted Stock, or otherwise reinvested on such terms as are determined at the time of the
Award by the Committee, in its sole discretion, and specified in the Restricted Stock agreement. 
  
 7.4. The Committee may condition the grant of an Award of Restricted Stock or the expiration of the Restriction Period upon the Holder’s achievement
of one or more Performance Goal(s) specified in the Restricted Stock Agreement. Unless otherwise specified in a Restricted Stock Agreement, if the Holder fails to achieve the specified Performance Goal(s), the Committee shall not grant the
Restricted Stock to the Holder, or the Holder shall forfeit the Award of Restricted Stock and the Common Stock shall be forfeited to the Company. Dividends paid during the Restriction Period on Restricted Stock subject to a Performance Goal shall be
reinvested in additional Restricted Stock and the expiration of the Restriction Period for such Restricted Stock shall be subject to the Performance Goal(s) previously established by the Committee. 
  

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 7.5. The Restricted Stock agreement shall specify the duration of the Restriction Period and the
performance, employment or other conditions (including termination of employment or service on account of death, Disability, Retirement or other cause) under which the Restricted Stock may be forfeited to the Company. At the end of the Restriction
Period the restrictions imposed hereunder shall lapse with respect to the number of shares of Restricted Stock as determined by the Committee, and the legend shall be removed and such number of shares delivered to the Holder (or, where appropriate,
the Holder’s legal representative). The Committee may, in its sole discretion, modify or accelerate the vesting and delivery of shares of Restricted Stock. 
  

8. Options 
  
 Options give a Participant the right to purchase a specified number of shares of Common Stock from the Company for a specified time period at a fixed
price. Options may be either Incentive Stock Options or Non-Qualified Stock Options. The grant of Options shall be subject to the following terms and conditions: 
  
 8.1. Option Grants: Options shall be evidenced by Option agreements. Such agreements shall conform to the requirements of
the Plan, and may contain such other provisions as the Committee shall deem advisable. 
  
 8.2. Specific Option Grants to Directors: Each Director who is not an employee of the Company shall receive an Option to purchase 15,000 shares of Common Stock upon his or her initial election to the Board, and the
shares of Common Stock underlying such Options shall vest one-third (1/3) per year that such Director remains a Director for three years beginning on the first anniversary of the grant. Beginning at the 2003 annual meeting of the stockholders of the
Company and at each annual meeting of the stockholders of the Company held thereafter while the Plan is in effect, each Director continuing as such after such meeting who is not an employee of the Company shall receive an Option to purchase 15,000
shares of Common Stock, and the shares of Common Stock underlying such Options shall vest in full on the first anniversary of the grant; provided, however, that in the event a Director resigns from the Board other than for Cause prior
to such one-year anniversary, the vesting of such Option shall accelerate so that such Option becomes immediately exercisable with respect to one-twelfth (1/12) of the shares of Common Stock underlying such Option for each full month that has
elapsed between the date of the grant of such Option and the date of such resignation. Notwithstanding anything to the contrary in the Plan, the price per share at which Common Stock may be purchased upon the exercise of an Option granted pursuant
to this Section 8.2 shall be not less than the Fair Market Value of a share of Common Stock on the date of grant. 
  
 8.3. Option Price: The price per share at which Common Stock may be purchased upon exercise of an Option shall be determined by the Committee, but, in the
case of grants of Incentive Stock Options, shall be not less than the Fair Market Value of a share of Common Stock on the date of grant. In the case of any Incentive Stock Option granted to a Ten Percent Shareholder, the option price per share shall
not be less than 110% of the Fair Market Value of a share of Common Stock on the date of grant. The option price per share for Non-Qualified Options may be less than the Fair Market Value of a share of Common Stock on the date of grant. 

 
 8.4. Term of Options: The Option agreements shall specify when an Option
may be exercisable and the terms and conditions applicable thereto. The term of an Option shall in no event be greater than ten years (five years in the case of an Incentive Stock Option granted to a Ten Percent Shareholder and ten years in the case
of all other Incentive Stock Options). The Committee may, in its sole discretion, accelerate the time at which an Option vests. The Committee may, in its sole discretion, extend the period of exercise for Options that have vested. 
  
 8.5. Incentive Stock Options: Each provision of the Plan and each Option
agreement relating to an Incentive Stock Option shall be construed so that each Incentive Stock Option shall be an incentive stock option as defined in section 422 of the Code, and any provisions of the Option agreement thereof that cannot be so
construed shall be disregarded. In no event may a Holder be granted an Incentive Stock Option which does 
  

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 not comply with such grant and vesting limitations as may be prescribed by section 422(b) of the Code. Incentive Stock
Options may only be granted to Employees; provided, however, that they may not be granted to employees of Affiliates. Without limiting the foregoing, the aggregate Fair Market Value (determined as of the time the Option is granted) of
the Common Stock with respect to which an Incentive Stock Option may first become exercisable by a Participant in any one calendar year under the Plan shall not exceed $100,000. 
  
 8.6. Restrictions on Transferability of Incentive Stock Options: No Incentive Stock Option shall be transferable otherwise
than by will or the laws of descent and distribution and, during the lifetime of the Holder, shall be exercisable only by the Holder. Upon the death of a Holder, the Person to whom the rights have passed by will or by the laws of descent and
distribution may exercise an Incentive Stock Option only in accordance with this Section 8. 
  
 8.7. Payment of Option Price: The option price of the shares of Common Stock upon the exercise of an Option shall be paid: (i) in full in cash at the time of the exercise or, (ii) with the consent of the Committee, in
whole or in part in Common Stock held by the Holder for at least six months valued at Fair Market Value on the date of exercise. With the consent of the Committee, payment upon the exercise of a Non-Qualified Option may be made in whole or in part
by Restricted Stock which has been held by the Holder for at least six months (based on the fair market value of the Restricted Stock on the date the Option is exercised, as determined by the Committee). In such case the Common Stock to which the
Option relates shall be subject to the same forfeiture restrictions originally imposed on the Restricted Stock exchanged therefor. 
  
 8.8. Termination by Death: Unless otherwise provided in an Option agreement, if a Holder’s employment or service by the Company, a Subsidiary or
Affiliate terminates by reason of death, any Option granted to such Holder may thereafter be exercised (to the extent such Option was exercisable at the time of death) by, where appropriate, the Holder’s transferee or by the Holder’s legal
representative, for a period of 12 months from the date of death or until the expiration of the stated term of the Option, whichever period is shorter. 
  
 8.9. Termination by Reason of Disability: Unless otherwise provided in an Option agreement, if a Holder’s employment or service by the Company, a
Subsidiary or Affiliate terminates by reason of Disability, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was
exercisable at the time of termination, for a period of 12 months from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
  
 8.10. Termination by Reason of Retirement: If a Holder’s employment by
or service with the Company, a Subsidiary or Affiliate terminates by reason of Retirement, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal
representative), to the extent it was exercisable at the time of termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter.

  
 8.11. Termination Not for Cause: If a Holder’s employment
by or service with the Company, a Subsidiary or Affiliate is terminated by the Company, the Subsidiary or Affiliate not for Cause, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the
Holder’s transferee or legal representative), to the extent it was exercisable at the time of termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the
Option, whichever period is shorter. 
  
 8.12. Termination for
Cause: If a Holder’s employment or service with the Company, a Subsidiary or Affiliate is terminated by the Company, the Subsidiary or Affiliate for Cause, all unexercised Options awarded to the Holder shall terminate on the date of such
termination. 
  

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 8.13. Termination for Other Reason: If a Holder’s employment or service with the Company, a
Subsidiary or Affiliate terminates for any reason not specified in this Section 8 (including voluntary termination), any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s
transferee or legal representative), to the extent it was exercisable at the time of termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever
period is shorter. 
  
 8.14. Continuation of Service:
Notwithstanding anything to the contrary in this Section 8, a Holder’s cessation of service as an Employee, Director or Consultant other than for Cause shall not be treated as a termination under this Section 8 if the Holder continues without
interruption to serve thereafter in a material manner in one (or more) of such other capacities, as determined by the Committee in its sole discretion. 
  
 9. Changes in Capitalization; Change of Control 
  
 9.1. In the event of a reorganization, recapitalization, stock split, spin-off, split-off, split-up, stock dividend, issuance of stock rights, combination
of shares, merger, consolidation or any other change in the corporate structure of the Company affecting Common Stock, or any distribution to stockholders of the Company other than a cash dividend, the Board shall make appropriate adjustment in the
number and kind of shares authorized by the Plan and any other adjustments to outstanding Awards as it determines appropriate. No fractional shares of Common Stock shall be issued pursuant to such an adjustment. The Fair Market Value of any
fractional shares resulting from adjustments pursuant to this Section shall, where appropriate, be paid in cash to the Holder. 
  
 9.2. Upon a Change of Control, the Committee shall fully vest all Awards made under the Plan. In addition, upon a Change of Control, the Committee may, at
its discretion (i) cancel any outstanding Awards in exchange for a cash payment of an amount equal to the difference between the then Fair Market Value of the Award less the option or base price of the Award, (ii) after having given the Award Holder
a chance to exercise any outstanding Options, terminate any or all of the Award Holder’s unexercised Options, or (iii) where the Company is not the surviving corporation, cause the surviving corporation to assume or replace all outstanding
Awards with comparable awards. 
  
 9.3. The judgment of the
Committee with respect to any matter referred to in this Section 9 shall be conclusive and binding upon each Holder without the need for any amendment to the Plan. 
  
 10. Effective Date, Termination and Amendment 
  
 The Plan shall become effective on February 27, 2003, subject to shareholder approval. Options granted under the Plan prior
to such shareholder approval shall expressly not be exercisable prior to such approval. The Plan shall remain in full force and effect until the earlier of ten years from the date of its adoption by the Board, or the date it is terminated by the
Board. The Board shall have the power to amend, suspend or terminate the Plan at any time, provided that no such amendment shall be made without shareholder approval which shall (i) increase (except as provided in Section 9) the total number of
shares available for issuance pursuant to the Plan; (ii) change the class of Participants eligible to be Holders; (iii) modify the Individual Limit (except as provided Section 9) or the categories of Performance Goals set forth in Section 4.4; or
(iv) change the provisions of this Section 10. Termination of the Plan pursuant to this Section 10 shall not affect Awards outstanding under the Plan at the time of termination. 
  
 11. Transferability 
  

Except as provided in Section 8.6 and this Section 11, Awards may not be pledged, assigned or transferred for any reason during the Holder’s
lifetime, and any attempt to do so shall be void and the relevant Award shall be forfeited. The Committee may grant Awards (except Incentive Stock Options) that are transferable by the Holder during his lifetime, but such Awards shall be
transferable only to the extent specifically provided in the agreement entered into with the Holder. The transferee of the Holder shall, in all cases, be subject to the provisions of the agreement between the Company and the Holder. 
  

 B-10 

 12. General Provisions 
  
 12.1. Nothing contained in the Plan, or any Award granted pursuant to the Plan, shall confer upon any Employee or Consultant
any right with respect to continuance of employment or service by the Company, a Subsidiary or Affiliate, nor interfere in any way with the right of the Company, a Subsidiary or Affiliate to terminate the employment or service of any Employee or
Consultant at any time. 
  
 12.2. Nothing contained in the Plan,
and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their officers or the Committee, on the one hand,
and any Participant, the Company, its Subsidiaries or any other Person or entity, on the other. 
  
 12.3. For purposes of this Plan, neither (i) transfer of employment between the Company and its Subsidiaries and Affiliates nor (ii) transfer of status
from Employee to Consultant shall be deemed termination of employment. 
  
 12.4. Holders shall be responsible to make appropriate provision for all taxes required to be withheld in connection with any Award, the exercise thereof and the transfer of shares of Common Stock pursuant to this Plan. Such responsibility
shall extend to all applicable Federal, state, local or foreign withholding taxes. In the case of the payment of Awards in the form of Common Stock, or the exercise of Options, the Company shall have the right to retain the number of shares of
Common Stock whose Fair Market Value equals the amount to be withheld in satisfaction of the applicable withholding taxes. Agreements evidencing such Awards shall contain appropriate provisions to effect withholding in this manner. 
  
 12.5. Without amending the Plan, Awards may be granted to Participants who
are foreign nationals or employed outside the United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose of the Plan.

  
 12.6. To the extent that Federal laws (such as the 1934 Act,
the Code or the Employee Retirement Income Security Act of 1974) do not otherwise control, the Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the State of Delaware and construed accordingly.

  
 12.7. The Committee may amend any outstanding Awards to the
extent it deems appropriate; provided, however, except as provided in Section 9, no Award may be repriced, replaced, regranted through cancellation, or modified without shareholder approval if the effect would be to reduce the exercise
price for the shares underlying the Award. The Committee may amend Awards without the consent of the Holder, except in the case of amendments adverse to the Holder, in which case the Holder’s consent is required to any such amendment.

  
 12.8. All shares of Common Stock purchased upon the exercise
of an Option or issued pursuant to an Award of Deferred Stock or Restricted Stock shall be subject to restrictions on transfer pursuant to applicable securities laws and such other agreements as the Committee shall deem appropriate and shall bear a
legend subjecting such shares to those restrictions on transfer in accordance with the applicable Award. The certificates shall also bear a legend referring to any restrictions on transfer arising hereunder or under any other applicable law,
regulation, rule or agreement. 
  
 12.9. The Plan and each Award
under the Plan shall be subject to the requirement that if at any time the Committee shall determine that (i) the listing, registration or qualification of the shares of 
  

 B-11 

 Common Stock purchased upon the exercise of an Option or issued pursuant to an Award of Deferred Stock or Restricted
Stock upon any securities exchange or under any state or federal law, (ii) the consent or approval of any government regulatory body or (iii) an agreement by the recipient of an Award with respect to the disposition of such shares is necessary or
desirable as a condition of, or in connection with, the Plan or the granting of such Award or the issue or purchase of such shares thereunder, the Award may not be consummated in whole or in part until such listing, registration, qualification,
consent, approval or agreement shall have been effected or obtained free of any conditions not acceptable to the Committee. 
  

 B-122004 Employee Stock Purchase Plan

 Exhibit 4.1 
  

WESTERN WIRELESS CORPORATION 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 Western Wireless Corporation (the “Company”) does hereby establish its 2004 Employee Stock Purchase Plan (the “Plan”) as follows:

  
 1. Purpose of the Plan. The Plan is intended to provide
a method whereby eligible employees of the Company and its Subsidiaries will have an opportunity to acquire a proprietary interest in the Company through the purchase of shares of Class A Common Stock of the Company. The Company believes that
employee participation in the ownership of the Company will be of benefit to both the employees and the Company. The Company intends to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. The
provisions of the Plan, accordingly, shall be construed so as to extend and limit participation in a manner that is consistent with the requirements of that Section of the Code. 
  
 2. Definitions. 
  
 “Account” shall mean the funds that are accumulated with respect to each individual Participant as a result of payroll
deductions for the purpose of purchasing Shares under the Plan. The funds that are allocated to a Participant’s account shall at all times remain the property of that Participant, but such funds may be commingled with the general funds of the
Company. No interest will be paid to Participants on any funds in the Accounts. 
  
 The “Board” means the Board of Directors of the Company. 
  
 “Business Day” means a day on which the Nasdaq National Market is accepting trades.

  
 The “Code” means the
Internal Revenue Code of 1986, as amended. 
  
 The “Commencement Date” means the January 1 or July 1, as the case may be, on which the particular Offering begins. Notwithstanding the foregoing, the “Commencement Date” for the first Offering under this Plan
shall be March 1, 2004. 
  
 The
“Committee” means the Compensation Committee of the Board (or any other committee of the Board comprised to comply with Rule 16b-3 promulgated under the Exchange Act and designated by the Board to administer the Plan). Notwithstanding any
delegation of authority to the Committee, the Board may also take any action under the Plan in its discretion at any time, and any reference in this Plan document to the rights and obligations of the Committee shall be construed to apply equally to
the Board. 

 The “Company” means Western Wireless Corporation, a Washington
corporation. 
  
 The “Ending
Date” means the June 30 or December 31, as the case may be, on which the particular Offering concludes. 
  
 The “ESPP Broker” is a qualified stock brokerage or other financial services firm that has been designated by the
Committee to establish accounts for Shares purchased under the Plan by Participants. 
  
 The “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 The “Holding Period” shall mean the holding
period that is set forth in Section 423(a) of the Code, which, as of the date that the Company’s Board of Directors adopted this Plan, is both (a) that two (2) year period after the Commencement Date, or, if applicable, a Purchase Date with
respect to any Offering, and (b) that one (1) year period after transfer to a Participant of any Shares under the Plan. 
  
 “Offerings” means an initial offering between March 1, 2004 and June 30, 2004, followed by nineteen separate consecutive
six-month offerings, for the purchase and sale of Shares under the Plan. Each one of the Offerings shall be referred to as an “Offering.” 
  
 “Participant” means an employee who, pursuant to Section 3, is eligible to participate in the Plan and has complied with
the requirements of Section 7. 
  
 “Purchase Date” means a date during an Offering, as determined from time to time by the Committee, on which a Participant shall be deemed to have carried out its right of purchase pursuant to Section 10. The Committee may
designate that there shall be one or more Purchase Dates during an Offering. In the absence of any other determination by the Committee, the Purchase Date will be the last Business Day of each month. “Purchase Date” shall include the last
Business Day of June and the last Business Day of December. 
  
 The “Plan” means this Western Wireless Corporation 2004 Employee Stock Purchase Plan. 
  
 “Shares” means shares of the Company’s Class A Common Stock, no par value per share. 
  
 “Subsidiaries” shall mean any present or
future domestic or foreign corporation that: (a) would be a “subsidiary corporation” of the Company as that term is defined in Section 424 of the Code, and (b) whose employees have been designated by the Committee to be eligible, subject
to Section 3, to be Participants under the Plan. The Committee shall have complete discretion to designate from time to time the subsidiary corporations whose employees will be eligible, subject to Section 3, to be Participants under the Plan, and
the Committee’s designation or change in designation to add or remove a corporation from the list of participating subsidiary corporations shall not require the consideration or approval of the Company’s shareholders. 
  

 -2- 

 “Total Annual Compensation” means an employee’s regular straight
time salary or earnings, plus review cycle bonuses and overtime payments, payments for incentive compensation, commissions and other special payments except to the extent any such item is excluded specifically by the Committee. Total Annual
Compensation includes employee elective deferrals or contributions made on the foregoing amounts to a 401(k) plan, a cafeteria plan, or a qualified transportation fringe plan or other plan, if any, that are not includible in the employee’s
gross income at the time of deferral or contribution. 
  
 “Withdrawal Notice” means a notice, in a form designated by the Committee, that must be submitted to the Company pursuant to Section 22 by any Participant who wishes to withdraw from an Offering. 
  
 3. Employees Eligible to Participate. Any employee of the Company or
any of its Subsidiaries who is in the employ of the Company or any of its Subsidiaries on the Commencement Date. With respect to any employee subject to Section 16(b) of the Exchange Act, the Company may impose such conditions on the grant or
exercise of any rights hereunder necessary to satisfy the requirements of the Exchange Act or applicable regulations promulgated thereunder. 
  
 4. Offerings. The Plan shall consist of an initial offering between March 1, 2004 and June 30, 2004, followed by nineteen separate consecutive
six-month Offerings. The first Offering shall commence on March 1, 2004 and end on June 30, 2004. Thereafter, Offerings shall commence on each subsequent July 1 and January 1. The final Offering under the Plan shall commence on July 1, 2013 and
terminate on December 31, 2013. 
  
 5. Price. The purchase
price per share shall be as established by the Committee, but in no event shall the purchase price per share be less than the lower of (a) 85 percent of the fair market value of the Shares on the Commencement Date, or the nearest subsequent Business
Day, or (b) 85 percent of the fair market value of the Shares on the Purchase Date. Fair market value shall mean the closing bid price as reported on the National Association of Securities Dealers Automated Quotation System or, if the Shares are
traded on a stock exchange, the closing price for the Shares on the principal of such exchange, or, if the Shares are purchased by the ESPP Broker, the price paid for such Shares by the ESPP Broker. In the absence of any other determination by the
Committee, the purchase price will be 85 percent of the fair market value of the Shares on the Purchase Date. 
  
 6. Number of Shares Reserved Under the Plan. The maximum number of Shares that will be offered under the Plan is one million (1,000,000). If for
any reason not all of the Shares offered to a Participant under an option grant are purchased (e.g., due to a withdrawal pursuant to Section 13), the Shares not purchased shall again become available to be offered under the Plan. If, on any date,
the total number of Shares for which purchase rights are to be granted pursuant to Section 9 exceeds the number of Shares then available under this Section (after deduction of all Shares that have been purchased under the Plan and for which rights
to purchase are then outstanding), the Committee shall make a pro rata allocation of the Shares that remain available in as nearly a uniform manner as shall be practicable and as it shall determine to be equitable. In such event, each
Participant’s payroll deductions shall be reduced accordingly and the Company shall give to each Participant a written notice of such reduction. 
  

 -3- 

 7. Participation. An eligible employee may become a Participant by completing the Enrollment
Agreement that shall be provided by the Company and filing it with the Company on or before a date prior to the Commencement Date of the Offering to which it relates, as established by the Committee. Participation in one Offering under the Plan
shall neither limit, nor require, participation in any other Offering. A Participant who has not withdrawn from an Offering pursuant to Section 13 shall automatically participate in subsequent Offerings at the same payroll deduction rate until the
Participant ceases to be eligible to participate under Section 3, terminates employment, or submits a Withdrawal Notice or a request to change his or her payroll deduction rate. Any request to change a payroll deduction rate shall not become
effective until the Offering that begins after the request has been properly submitted to the Company. 
  
 8. Payroll Deductions. 
  
 8.1 At the time the Enrollment Agreement is filed and for so long as a Participant participates in the Plan, each Participant shall
authorize the Company to make payroll deductions of a whole percentage (not partial or fractional) of Total Annual Compensation; provided, however, that no payroll deduction shall exceed 10 percent of Total Annual Compensation. 
  
 8.2 Each Participant’s payroll deductions shall be
credited to that Participant’s Account. A Participant may not make a separate cash payment into such Account nor may payment for Shares be made from other than the Participant’s Account. 
  
 8.3 A Participant’s payroll deductions with respect to
an Offering shall begin on the Commencement Date, and shall end on the Ending Date unless the Participant elects to withdraw pursuant to Section 13. 
  
 8.4 A Participant may discontinue participation in the Plan as provided in Section 13, but no other change may be made during an Offering
and, specifically, a Participant may not alter the percentage rate of payroll deductions during an Offering. 
  
 9. Granting of Right to Purchase. On the Commencement Date, the Plan shall be deemed to have granted to each Participant a right to purchase as
many full and fractional Shares as may be purchased with such Participant’s Account. All Participants who participate in an Offering shall have the same rights and privileges with respect to that Offering in accordance with Code Section
423(b)(5). The maximum amount of payroll deductions during any Offering that any Participant may have withheld under this Plan shall be determined from time to time by the Committee and shall be communicated to Participants prior to an Offering. In
the absence of any other determination by the Committee, no Participant may have withheld payroll deductions in excess of $6,500 during any single Offering. In addition to the foregoing limit and the limit set forth in Section 20, no Participant may
purchase more than 2,000 Shares during any single Offering. The 2,000 Share limit may be adjusted as permitted pursuant to Section 19 of the Plan. Any cash in a Participant’s account on the Ending Date (e.g., because the foregoing dollar or
Share limitations prevent full use of the Account balance to purchase Shares) shall be returned to the Participant as soon as practicable, without interest being paid on the amount returned. 
  

 -4- 

 10. Purchase of Shares. On each of one or more Purchase Dates during an Offering, but in no event
later than the Ending Date, each Participant who has not otherwise withdrawn from an Offering pursuant to Section 13 shall be deemed to have carried out the right to purchase, and shall be deemed to have purchased from the Company at the purchase
price set forth in Section 5, the number of full and fractional Shares that may be purchased with such Participant’s Account as of the date of such purchase. In order to complete a Participant’s purchase of Shares under this Plan, the
Company may issue new Shares to the Participant, or the Company may purchase shares on the open market and resell such Shares to the Participant. All such Shares issued or sold to Participants under this Plan (including those purchased on the open
market) shall reduce the number of Shares available to be offered under this Plan. 
  
 11. Participant’s Rights as a Shareholder. No Participant shall have any rights of a shareholder with respect to any Shares until the Shares have been purchased in accordance with Section 10 and issued by
the Company. 
  
 12. Evidence of Ownership of Shares.

  
 12.1 Promptly following each Purchase Date,
the Shares that are purchased by each Participant shall be deposited into an account that is established in the Participant’s name with the ESPP Broker. 
  
 12.2 A Participant may direct, by written notice to the Company prior to any Purchase Date of the pertinent
Offering, that the ESPP Broker account be established in the names of the Participant and one such other person as may be designated by the Participant as joint tenants with right of survivorship, tenants in common, or community property, to the
extent and in the manner permitted by applicable law. Any Shares purchased after such a request is properly submitted to the Company shall be placed in such jointly-owned account. 
  
 12.3 A Participant shall be free to undertake a disposition, as that term is defined in Section 424(c) of
the Code (which generally includes any sale, exchange, gift or transfer of legal title), of Shares in the Participant’s ESPP Broker account at any time, whether by sale, exchange, gift or other transfer of title. In the absence of such a
disposition of the Shares, however, the Shares must remain in the Participant’s account at the ESPP Broker until the Holding Period has been satisfied. With respect to Shares for which the Holding Period has been satisfied, a Participant may
move such Shares to an account at another brokerage firm of the Participant’s choosing or request that a certificate that represents the Shares be issued and delivered to the Participant. 
  

 -5- 

 12.4 A Participant who is not subject to United States taxation, at any time and without
regard to the Holding Period, may move its Shares to an account at another brokerage firm of the Participant’s choosing or request that a certificate that represents the Shares be issued and delivered to the Participant. 
  
 13. Withdrawal. 
  
 13.1 A Participant may withdraw from an Offering, in whole
but not in part, at any time by delivering a Withdrawal Notice to the Company. Such Withdrawal Notice shall be effective not later than the first day of the second pay period following the pay period in which the Withdrawal Notice was delivered
(e.g., if a Participant submits a Withdrawal Notice during the pay period of February 16 through February 28, the withdrawal will be effective not later than the pay period that commences on March 16). Until such notice is effective, such
withdrawing Participant shall be deemed to be a Participant with respect to all terms and conditions of the Plan, including, without limitation, the right to purchase Shares pursuant to Section 10. Upon effectiveness of the Withdrawal Notice, the
Company shall refund the Participant’s entire Account as soon as practicable thereafter. No interest will be paid on the amount refunded. 
  
 13.2 An employee who has previously withdrawn from the Plan may re-enter by complying with the requirements of Section 7. An
employee’s re-entry into the Plan will become effective on the Commencement Date of the next Offering following withdrawal, and, if the withdrawing employee is an officer of the Company within the meaning of Section 16 of the Exchange Act, such
employee may not re-enter the Plan before the beginning of the second Offering following such withdrawal. 
  
 14. Carryover of Account. At the conclusion of each Offering, the Company automatically shall re-enroll each Participant in the next Offering at
the same rate of payroll deduction. Upon termination of the Plan, the balance of each Participant’s Account shall be refunded to the respective Participant. 
  
 15. Interest. No interest shall be paid or allowed on a Participant’s Account. 
  
 16. Rights Not Transferable. No Participant shall be permitted to
sell, assign, transfer, pledge, or otherwise dispose of or encumber such Participant’s Account or any rights to purchase or to receive Shares under the Plan other than by will or the laws of descent and distribution, and such rights and
interests shall not be liable for, or subject to, a Participant’s debts, contracts, or liabilities. If a Participant purports to make a transfer, or a third party makes a claim in respect of a Participant’s rights or interests, whether by
garnishment, levy, attachment or otherwise, such purported transfer or claim shall be treated as a withdrawal election under Section 13. Only the Participant may elect to participate in or withdraw from the Plan, and such election rights may not be
transferred. 
  
 17. Termination of Employment. Upon
termination of a Participant’s employment for any reason whatsoever, including but not limited to death or retirement, amounts in the Participant’s Account shall be used to purchase Shares as of the next Purchase Date immediately following
the Participant’s termination of employment. Notwithstanding the foregoing, if there is not a Purchase Date within 3 months after the Participant’s termination of employment, amounts in the Participant’s Account shall be returned to
the Participant (or to his or her estate, as applicable) and the Participant (or his or her estate, as applicable) shall not be permitted to make any further purchases under this Plan. 
  

 -6- 

 18. Amendment or Discontinuance of the Plan. The Committee shall have the right to amend, modify,
or terminate the Plan at any time without notice, provided that (a) subject to Sections 19 and 23.1(b), no Participant’s existing rights under any Offering that is in progress may be adversely affected thereby, and (b) subject to Section 19, in
the event that the Committee desires to retain the favorable tax treatment under Sections 421 and 423 of the Code, no such amendment of the Plan shall increase the number of Shares that were reserved for issuance hereunder unless the Company’s
shareholders approve such an increase. 
  
 19. Changes in
Capitalization. In the event of reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, offerings of rights, or any other change in the capital structure of the Company, the Committee may make
such adjustment, if any, as it may deem appropriate in the number, kind, and the price of the Shares that are authorized to be offered and available for purchase under the Plan, and in the number of Shares that an employee is entitled to purchase.

  
 20. Share Ownership. Notwithstanding anything herein to
the contrary, no Participant shall be permitted to subscribe for any Shares under the Plan if such Participant, immediately after such subscription, owns shares that account for (including all shares that may be purchased under outstanding
subscriptions under the Plan) five percent (5%) or more of the total combined voting power or value of all classes of shares of the Company or its Subsidiaries. For the foregoing purposes the rules of Section 424(d) of the Code shall apply in
determining share ownership. In addition, no Participant shall be allowed to subscribe for any Shares under the Plan that permit such Participant’s rights to purchase Shares under all “employee stock purchase plans” of the Company and
its Subsidiaries formed pursuant to Section 423 of the Code to accrue at a rate that exceeds $25,000 of the fair market value of such shares (determined at the time such right to subscribe is granted) for each calendar year in which such right to
subscribe is outstanding at any time. 
  
 21.
Administration. The Plan shall be administered by the Committee which may engage the ESPP Broker to assist in the administration of the Plan. The Committee shall be vested with full authority to interpret the Plan and make, administer, and
interpret such rules and regulations as it deems necessary to administer the Plan, and any determination, decision, or action of the Committee in connection with the construction, interpretation, administration, or application of the Plan shall be
final, conclusive, and binding upon all Participants and any and all persons that claim rights or interests under or through a Participant. 
  
 22. Notices. All notices or other communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been
duly given when received in the form specified by the Company at the location, or by the person, that is designated by the Company from time to time for the receipt thereof, and, in the absence of such a designation, the Company’s Vice
President of Human Resources shall be authorized to receive such notices. 
  

 -7- 

 23. Termination of the Plan. 
  
 23.1 This Plan shall terminate at the earliest of the following: 
  
 (a) December 31, 2013. 
  
 (b) The date of the filing of a Statement of Intent to
Dissolve by the Company or the effective date of a merger or consolidation wherein the Company is not to be the surviving corporation, which merger or consolidation is not between or among corporations related to the Company. Prior to the occurrence
of either of such events, on such date as the Company may determine, the Company may permit a Participant to carryout the right to purchase, and to purchase at the purchase price set forth in Section 5, the number of full and fractional Shares that
may be purchased with that Participant’s Account. In such an event, the Company shall refund to the Participant the funds that remain in the Participant’s Account after such purchase. 
  
 (c) The date the Committee acts to terminate the Plan in
accordance with Section 18 above. 
  
 (d) The
date when all of the Shares that were reserved for issuance hereunder have been purchased. 
  
 23.2 Upon termination of the Plan, the Company shall refund to each Participant the balance of each Participant’s Account. No
interest will be paid on the amounts refunded. 
  
 24.
Limitations on Sale of Shares Purchased Under the Plan. The Plan is intended to provide Shares for investment and not for resale. The Company, however, does not intend to restrict or influence the conduct of any employee’s affairs.
Consequently, an employee may sell Shares that are purchased under the Plan at any time, subject to compliance with any applicable federal or state securities laws. THE EMPLOYEE ASSUMES THE RISK OF ANY MARKET FLUCTUATIONS IN THE PRICE OF THE SHARES.

  
 25. Governmental Regulation. The Company’s
obligation to sell and deliver Shares under this Plan is subject to any governmental approval that is required in connection with the authorization, issuance, or sale of such Shares. 
  
 26. No Employment Rights. The Plan does not create, directly or indirectly, any right for the benefit of any employee
or class of employees to purchase any Shares under the Plan, or create in any employee or class of employees any right with respect to continuation of employment by the Company, and it shall not be deemed to interfere in any way with the
Company’s right to terminate, or otherwise modify, an employee’s employment at any time. 
  

 -8- 

 27. Dates. All references in the Plan to a date are intended to refer to dates in the United
States. 
  
 28. Governing Law. The law of the state of
Washington shall govern all matters that relate to this Plan except to the extent it is superseded by the laws of the United States. 
  
 29. Savings Clause. It is intended that this Plan conform to Section 423 of the Code, all regulations promulgated thereunder and all rules adopted
with respect thereto. Any provision of this Plan that does not conform to such Code section, regulations and rules, or is in violation thereof, shall be of no force or effect. 
  

 -9-

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