Document:

Exhibit 10.2

 

EXECUTIVE CONSULTING AGREEMENT

 

THIS EXECUTIVE CONSULTING AGREEMENT (this “Agreement”), dated as of November 3, 2014 (the “Effective Date”), is entered into by and between Lpath, Inc., a Delaware corporation (the “Company”), and Michael Lack (“Consultant”).

 

RECITALS

 

WHEREAS, the Company agrees to retain Consultant to serve as its Interim Chief Executive Officer and to provide the Services described on Exhibit A, and Consultant agrees to serve as Interim Chief Executive Officer and to provide such Services, on the terms and conditions provided herein.

 

WHEREAS, during the Term, Consultant’s Services shall include serving as the Company’s Principal Executive Officer with respect to all filings the Company is required to make with the Securities and Exchange Commission.

 

NOW, THEREFORE, IT IS AGREED:

 

1.                                      Duties and Services.  Consultant is hereby appointed as the Company’s Interim Chief Executive Officer and Principal Executive Officer.  Consultant agrees to provide the services described on Exhibit A, and such other services as may be mutually agreed upon by the parties from time to time (collectively, the “Services”).  Performance of the Services shall be governed by the terms and conditions of this Agreement.

 

2.                                      Term and Termination.

 

2.1                               Term.  The term of this Agreement (the “Term”) will begin on the Effective Date and will continue until termination as provided in Section 2.2 of this Agreement.

 

2.2                               Termination.  Either party may terminate this Agreement at its convenience and without any breach by giving the other party five (5) business days’ prior written notice of such termination pursuant to Section 10(b) of this Agreement.  The Company may also terminate this Agreement immediately in its sole discretion for Cause (as defined in Exhibit B) upon providing written notice of such termination for Cause pursuant to Section 10(b) of this Agreement.

 

2.3                               Minimum Consulting Compensation.  If the Company terminates this Agreement other than for Cause and if Consultant has provided less than four (4) months of Services at the time of the termination, the Company will pay Consultant on the last day of his Services to the Company, subject to the terms and conditions of this Agreement, an amount that is equal to $150,000.00 less Consultant’s compensation accrued through the last day of his Services to the Company.

 

2.4                               Effect of Termination of Agreement.  Upon the termination of the Agreement by Consultant or by the Company (for any or no reason), the Consultant shall be deemed to have resigned as the Company’s Interim Chief Executive Officer and Principal Executive Officer, effective as of the last day of Consultant’s Services to the Company following the termination.

 

3.                                      Compensation.  As compensation for the Services to be provided hereunder, and conditioned upon Consultant’s performance of such services, Consultant shall be entitled to the Compensation as set forth on Exhibit B.

 

 

4.                                      Independent Contractor.  Consultant’s relationship with the Company is that of an independent contractor, and nothing in this Agreement is intended to, or should be construed to, create a partnership, agency, joint venture or employment relationship.  Accordingly, Consultant will not be entitled to any of the benefits that Company may make available to its employees; and Consultant is solely responsible for, and will file, on a timely basis, all tax returns and payments required to be filed with, or made to, any federal, state or local tax authority with respect to the performance of services and receipt of fees under this Agreement.

 

5.                                      Inventions.

 

(a)                                 Company Inventions.  All designs, artwork, improvements, inventions, works of authorship, information fixed in any tangible medium of expression, moral rights, trademarks, know-how, ideas, and all other subject matter protectable under patent, copyright moral right, mask work, trademark, trade secret or other laws (“Inventions”), made, conceived or developed by Consultant, alone or with others, which result from the Services or any other services provided by Consultant from the first day of engagement by the Company, together with all related intellectual property rights, shall be the sole property of the Company (“Company Inventions”).

 

(b)                                 Out-of-Scope Inventions.  If Consultant incorporates any Inventions relating in any way to the Company’s business or demonstrably anticipated research or development that were conceived, reduced to practice, created, derived, developed or made by Consultant either outside the scope of Consultant’s Services for the Company under this Agreement or prior to the execution of this Agreement (collectively, the “Out-of-Scope Inventions”) into any of the Company Inventions, Consultant hereby grants to the Company a royalty-free, irrevocable, worldwide, fully paid-up license (with rights to sublicense through multiple tiers of sublicensees) to practice all applicable patent, copyright, moral right, mask work, trade secret and other intellectual property rights relating to any Out-of-Scope Inventions that Consultant incorporates, or permits to be incorporated, in any Company Inventions.  Consultant agrees that Consultant will not incorporate, or permit to be incorporated, any Inventions conceived, reduced to practice, created, derived, developed or made by others or any Out-of-Scope Inventions into any Company Inventions without the Company’s prior written consent.

 

(c)                                  Assignment, Disclosure and Assistance.  Consultant agrees to promptly disclose to the Company every Company Invention.  Consultant hereby assigns and agrees to assign to the Company or its designee its entire right, title and interest worldwide in all such Company Inventions and any associated intellectual property rights.  Consultant agrees to assist the Company in any reasonable manner to obtain and enforce for the Company’s benefit patents, copyrights, maskworks, and other property rights in such Company Inventions in any and all countries, and Consultant agrees to execute, when requested, patent, copyright or similar applications and assignments to the Company and any other lawful documents deemed necessary by the Company to carry out the purpose of this Agreement.

 

2

 

6.                                      Confidential Information.

 

(a)                                 Definition of Confidential Information.  “Confidential Information” as used in this Agreement shall mean any and all technical and non-technical information including or relating to financial information and projections, regulatory matters, clinical and preclinical trial designs and results, business strategies and plans, financing plans, potential mergers or acquisitions, or the sale of Company assets, partnering agreements, commercial contracts and relationships, stockholders, employees, officers and directors, litigation (whether actual or threatened), intellectual property, trade secrets, and proprietary information, techniques, know-how, processes, designs, apparatus, equipment, manufacturing, and the current, future and proposed business, research, development and potential product candidates of the Company.  Confidential Company information also includes information that, if disclosed, may be useful to the Company’s competitors or harmful to the Company, its customers, suppliers and partners.  “Confidential Information” also includes proprietary or confidential information of any third party who may disclose such information to the Company or Consultant in the course of the Company’s business.

 

(b)                                 Nondisclosure and Nonuse Obligations.  Except as permitted in this paragraph, Consultant shall not use, disclose or disseminate any Confidential Information of the Company.  Consultant may use the Confidential Information of the Company solely to perform its obligations under this Agreement for the benefit of the Company.  Consultant will exercise the same degree of care as it takes to protect its own confidential information, but in no event less than reasonable care.

 

(c)                                  Injunctive Relief.  It is understood and agreed that money damages would not be a sufficient remedy for a breach of Consultant’s confidentiality obligations under this Agreement and that the Company shall be entitled to injunctive relief as a remedy for any such breach.  Such remedy shall not be deemed to be the exclusive remedy for the breach of Consultant’s obligations under this Section 6(c), but will be in addition to all other available legal or equitable remedies.

 

(d)                                 Exclusions from Nondisclosure and Nonuse Obligations.  Consultant’s obligations under this Section 6 with respect to any portion of the Confidential Information of the Company shall not apply to any such portion that Consultant can demonstrate (i) was in the public domain at or subsequent to the time such portion was communicated to Consultant by the Company through no fault of Consultant, or (ii) was rightfully in Consultant’s possession free of any obligation of confidence at or subsequent to the time such portion was communicated to Consultant by the Company.  A disclosure of Confidential Information by Consultant either in response to a valid order by a court or other governmental body, otherwise required by law, or necessary to establish the rights of either party under this Agreement shall not be considered a breach of this Agreement or a waiver of confidentiality for other purposes, provided, however, that Consultant shall provide prompt prior written notice thereof to the Company to enable the Company to seek a protective order or otherwise prevent such disclosure.

 

7.                                      Ownership and Return of Company Property.  All materials furnished to Consultant by the Company, whether delivered to Consultant by the Company or made by Consultant in the performance of services under this Agreement (collectively, the “Company Property”) are the sole and exclusive property of the Company, and Consultant hereby does and will assign to the Company all rights, title and interest Consultant may have or acquire in the Company Property.  At the Company’s request and no later than five (5) days after such request, Consultant shall, at the Company’s option, destroy or deliver to the Company (i) all Company Property, (ii) all tangible media of expression in Consultant’s possession or control that incorporate or in which are fixed any Confidential Information of the Company, and (iii) written certification of Consultant’s compliance with Consultant’s obligations under this Agreement.

 

3

 

8.                                      No Violation of Third Party Rights.  Consultant shall not communicate any information to the Company in violation of the proprietary rights of third parties.

 

9.                                      Warranty.  Consultant shall perform the Services under this Agreement in a workmanlike and commercially reasonable manner, with a standard of diligence and care normally employed by qualified persons in the performance of comparable work in the same or similar locality.  Consultant shall devote sufficient effort and resources to the performance of the Services and shall be responsive to the Company’s reasonable needs and requests in so doing.  Consultant warrants that there is no other contract or duty on Consultant’s part that conflicts with or is inconsistent with this Agreement.  Consultant will comply with all applicable specifications, laws, ordinances, rules, regulations, orders, licenses, permits and other contractual or governmental requirements.

 

10.                               Miscellaneous.

 

(a)                                 Successors and Assigns.  Consultant may not subcontract or otherwise delegate Consultant’s obligations under this Agreement.  Subject to the foregoing, this Agreement will be for the benefit of the Company’s successors and assigns, and will be binding on Consultant’s assignees.

 

(b)                                 Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows, with notice deemed given as indicated: (a) by personal delivery, when delivered personally; (b) by overnight courier, upon written verification of receipt; (c) by telecopy or facsimile transmission, upon acknowledgement of receipt of electronic transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to the addresses set forth in this Agreement or to such other address as either party may specify in writing.

 

(c)                                  Governing Law.  This Agreement shall be governed in all respects by the laws of the state of California, without giving effect to conflicts of law principles.  Venue for any dispute arising under this Agreement will lie exclusively in the state or federal courts located in the County of San Diego of the state of California.

 

(d)                                 Severability.  If any provision of this Agreement is held by a court of law to be illegal, invalid or unenforceable, that provision shall be deemed amended to achieve as nearly as possible the same economic effect as the original provision, and the legality, validity and enforceability of the remaining provisions of this Agreement shall not be affected or impaired thereby.

 

(e)                                  Entire Agreement.  This Agreement constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof, and is not intended to confer upon any party other than the parties hereto any rights or remedies hereunder.

 

(f)                                   Waiver; Amendment; Modification.  No term or provision hereof will be considered waived by the Company, and no breach excused by the Company, unless such waiver or consent is in writing signed by the Company.  Any such waiver by the Company of, or consent by the Company to, a breach of any provision of this Agreement by Consultant, shall not operate or be construed as a waiver of, consent to, or excuse of any other or subsequent breach by Consultant.  This Agreement may be amended or modified only by mutual agreement of duly authorized representatives of the parties in writing.

 

(g)                                  Survival.  The rights and obligations contained in this Agreement, which by their nature require performance following termination, shall survive any termination or expiration of this Agreement.

 

(h)                                 Counterparts.  This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one instrument.

 

4

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the Effective Date.

 

 

	
 
    	
“CONSULTANT”
    
	
 
    	
 
    
	
 
    	
MICHAEL   LACK
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:   November 3, 2014
    	
/s/   Michael Lack
    
	
 
    	
Michael Lack
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
“COMPANY”
    
	
 
    	
 
    
	
 
    	
LPATH, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:   November 3, 2014
    	
By:
    	
/s/   Daniel Petree
    
	
 
    	
 
    	
Daniel   Petree, Chairman of the Board
    

 

5

 

EXHIBIT A

 

Services

 

Consultant shall serve as the Company’s Interim Chief Executive Officer and Principal Executive Officer.  Subject to the supervisory powers of the Board of Directors (the “Board”), Consultant shall perform such duties as shall be incident to the office of Chief Executive Officer and such other duties as may be reasonably prescribed by the Board from time to time.  Consultant shall have general charge of the business and affairs of the Company.  Consultant shall keep the Board fully informed with respect to his duties, and shall freely consult with the Board concerning the business of the Company.  Consultant may sign, with the Secretary or any other officer of the Company thereunto authorized by the Board, certificates for shares of the Company, any deeds, mortgages, bonds, contracts, or other instruments that the Board has authorized to be executed, except in cases where the signing and execution thereof shall be expressly delegated by the Board or by the Company’s Bylaws to some other officer or agent of the Company, or shall be required by law to be otherwise signed or executed.

 

Consultant will perform his services from the Company’s headquarters located in San Diego, California.

 

6

 

EXHIBIT B

 

Compensation

 

The parties agree that the compensation payable to Consultant for the Services set forth in Exhibit A and any subsequently agreed upon Services to be provided by Consultant shall be as follows:

 

1.                     Cash Compensation.  Consultant will be entitled to cash compensation equal to $37,500.00 per month, payable in two equal semi-monthly installments for each month that Consultant is retained by the Company.

 

2.                     Equity Compensation.  In addition, Consultant will receive restricted stock units (“RSUs”) for 15,000 shares of Company common stock under the Company’s Amended and Restated 2005 Equity Incentive Plan (the “Plan”), which shall vest in full upon the earlier of (a) twelve (12) months service from the Effective Date or (b) Consultant’s departure from the Company.  However, if Consultant is terminated with Cause, Consultant shall not be entitled to retain any Company stock contemplated by this paragraph unless Consultant’s termination for Cause occurs more than 12 months from the Effective Date.

 

4.                     Definition of Cause.  For purposes of this Agreement, “Cause” is defined as:  (a) acts or omissions constituting gross negligence, recklessness or willful misconduct on the part of Consultant with respect to the performance of the Services or otherwise relating to the business of Company; (b) any acts or conduct by Consultant that are materially adverse to Company’s interests; (c) Consultant’s material breach of this Agreement; (d) Consultant’s conviction or entry of a plea of nolo contendere for fraud, misappropriation or embezzlement, or any felony or crime of moral turpitude or that otherwise negatively impacts Consultant’s ability to provide Services to the Company; or (e) Consultant’s willful failure to comply with the lawful directions of the Board.

 

7Exhibit 10.3

 

LPATH, INC.

 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

NOTICE OF GRANT OF RESTRICTED STOCK UNITS

(Deferred Settlement Date)

 

Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Notice of Grant.

 

Name:

 

You have been granted                  Restricted Stock Units.  Each such Restricted Stock Unit is equivalent to one share of Common Stock of the Corporation (a “Share”) for purposes of determining the number of Shares subject to this award.  No Share subject to this award of Restricted Stock Units will be issued (nor will you have the rights of a stockholder with respect to the underlying Shares) until the vesting conditions and the settlement date described below are satisfied.  Additional terms of this grant are as follows:

 

	
Date   of Grant
    
	
 
    
	
Expiration Date:
    
	
 
    
	
Vesting Commencement Date:
    

 

	
Vesting   Schedule:
    	
 
    	
The   Restricted Stock Units will vest in accordance with Exhibit B, subject   to your continuing to provide Service (as defined in the Restricted Stock   Unit Agreement attached as Exhibit A hereto (the “Agreement”)) through   the applicable vesting date.
    
	
 
    	
 
    	
 
    
	
Settlement   Date:
    	
 
    	
To   the extent vested, Restricted Stock Units will be settled through the   issuance of shares of Common Stock, on the date the Restricted Stock Units   have vested.
    

 

 

You acknowledge and agree that this Notice of Grant and the vesting schedule set forth herein does not constitute an express or implied promise of continued Service for the vesting period, for any period, or at all, and shall not interfere with your right or the Corporation’s right to terminate your Service at any time, with or without cause.

 

This grant has been authorized by the Corporation’s Board of Directors.  If any number in this Notice is inconsistent with that which was authorized by the Board, then it is an error and the Corporation reserves the right to replace this Notice with a corrected version.

 

You hereby agree to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions relating to the Plan and this Award.

 

By your signature and the signature of the Corporation’s representative below, you and the Corporation agree that this Notice of Grant, the form of Restricted Stock Unit Agreement attached as Exhibit A hereto, and the Lpath, Inc. Amended and Restated 2005 Equity Incentive Plan constitute your entire agreement with respect to this Award and may not be modified adversely except by means of a writing signed by the Corporation and you.

 

	
GRANTEE:
    	
 
    	
LPATH, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature
    	
 
    	
By
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Print   Name
    	
 
    	
Title
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Taxpayer   I.D. Number
    	
 
    	
 
    

 

2

 

EXHIBIT A

 

LPATH, INC.

 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT AGREEMENT

(Deferred Settlement Date)

 

1.             Grant.  The Corporation hereby grants to the Participant an award of Restricted Stock Units (“RSUs”), as set forth in the Notice of Grant of Restricted Stock Units and subject to the terms and conditions in this Agreement and the Corporation’s Amended and Restated 2005 Equity Incentive Plan (the “Plan”).  Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Restricted Stock Unit Agreement (the “Agreement”).

 

2.             Corporation’s Obligation.  Each RSU represents the right to receive a Share, to the extent vested, on the Settlement Date.  Unless and until the RSUs vest and the Settlement Date has occurred, the Participant will have no right to receive Shares under such RSUs.  Prior to actual distribution of Shares pursuant to any vested RSUs, such RSUs will represent an unsecured obligation of the Corporation, payable (if at all) only from the general assets of the Corporation.

 

3.             Vesting Schedule.  Subject to paragraph 4, the RSUs awarded by this Agreement will vest according to the vesting schedule specified in the Notice of Grant.

 

4.             Forfeiture upon Termination of Service.  Notwithstanding any contrary provision of this Agreement or the Notice of Grant, if the Participant’s Service terminates for Cause (as defined in Participant’s consulting agreement with the Company) prior to vesting, the unvested RSUs awarded by this Agreement will thereupon be forfeited at no cost to the Corporation.  For the purposes of this Award, the term “Service” shall be defined as follows: the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity of (i) a full-time Employee, or (ii) a consultant.

 

5.             Payment after Vesting.  Any RSUs that vest in accordance with paragraph 3 will be paid to the Participant (or in the event of the Participant’s death, to his or her estate) in Shares on the applicable Settlement Date; provided that to the extent determined appropriate by the Administrator, pursuant to paragraph 12, the minimum statutorily required federal, state and local withholding taxes with respect to such RSUs will be paid by reducing the number of vested Shares actually paid to the Participant.  For the purposes of this Award, the term “Disability” shall be defined as follows: a Participant shall be considered disabled if the Participant is, by reason of any medically determined physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under a disability plan covering Employee’s of the Corporation.

 

 

6.             Payments after Death.  Any distribution or delivery to be made to the Participant under this Agreement will, if the Participant is then deceased, be made to the administrator or executor of the Participant’s estate.  Any such administrator or executor must furnish the Corporation with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to the Corporation to establish the validity of the transfer and compliance with any laws or regulations pertaining to said transfer.

 

7.             Rights as Stockholder.  Neither the Participant nor any person claiming under or through the Participant will have any of the rights or privileges of a stockholder of the Corporation in respect of any Shares deliverable hereunder unless and until certificates representing such Shares will have been issued, recorded on the records of the Corporation or its transfer agents or registrars, and delivered to the Participant or Participant’s broker.

 

8.             No Effect on Employment.  The Participant’s employment with the Corporation and its Subsidiaries is on an at-will basis only.  Accordingly, the terms of the Participant’s employment with the Corporation and its Subsidiaries will be determined from time to time by the Corporation or the Subsidiary employing the Participant (as the case may be), and the Corporation or the Subsidiary will have the right, which is hereby expressly reserved, to terminate or change the terms of the employment of the Participant at any time for any reason whatsoever, with or without good cause or notice.

 

9.             Address for Notices.  Any notice to be given to the Corporation under the terms of this Agreement will be addressed to the Corporation at 4025 Sorrento Valley Blvd., San Diego, California 92121, Attn: Stock Administration, or at such other address as the Corporation may hereafter designate in writing or electronically.

 

10.          Grant is Not Transferable.  Except to the limited extent provided in paragraph 6, this grant and the rights and privileges conferred hereby will not be transferred, assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this grant, or any right or privilege conferred hereby, or upon any attempted sale under any execution, attachment or similar process, this grant and the rights and privileges conferred hereby immediately will become null and void.

 

11.          Binding Agreement.  Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and inure to the benefit of the heirs, legatees, legal representatives, successors and assigns of the parties hereto.

 

12.          Withholding of Taxes.  When the Shares are issued as payment for vested RSUs, the Participant will recognize immediate U.S. taxable income if the Participant is a U.S. taxpayer.  In addition, at each vesting date Participant will be subject to applicable employment taxes on the value of the RSUs that become vested on that date.  If the Participant is a non-U.S. taxpayer, the Participant will be subject to applicable taxes in his or her jurisdiction.  The Corporation will withhold a portion of the Shares otherwise issuable in payment for vested RSUs that have an aggregate market value sufficient to pay the minimum federal, state and local income, employment and any other applicable taxes required to be withheld by the Corporation with respect to the Shares.  No fractional Shares will be withheld or issued pursuant to the grant

 

2

 

of RSUs and the issuance of Shares hereunder.  The Corporation may instead, in its discretion, either (i) withhold any amount necessary to pay the applicable taxes from the Participant’s salary or other amounts payable to the Participant, with no withholding in Shares, or (ii) arrange for the appropriate number of Shares subject to the vested portion of the Award to be sold on the open market, if permitted by all applicable law, with the proceeds of such sale remitted to the Corporation in an amount necessary to satisfy the minimum tax withholding obligation of the Corporation.  In the event the withholding requirements are not satisfied through the withholding Shares (or, through the Participant’s salary or other amounts payable to the Participant or through the sale of Share on the open market), no Shares will be issued to the Participant (or his or her estate) in settlement of the RSU unless and until satisfactory arrangements (as determined by the Administrator) have been made by the Participant with respect to the payment of any income and other taxes which the Corporation determines must be withheld or collected with respect to such RSUs.  By accepting this RSU, the Participant expressly consents to the withholding of Shares and/or cash as provided for in this paragraph 12.  All income and other taxes related to the RSU and any Shares delivered in payment thereof are the sole responsibility of the Participant.

 

13.          Additional Conditions to Issuance of Stock.  If at any time the Corporation will determine, in its discretion, that the listing, registration or qualification of the Shares upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory authority is necessary or desirable as a condition to the issuance of Shares to the Participant (or his or her estate), such issuance will not occur unless and until such listing, registration, qualification, consent or approval will have been effected or obtained free of any conditions not acceptable to the Corporation.  The Corporation will make all reasonable efforts to meet the requirements of any such state or federal law or securities exchange and to obtain any such consent or approval of any such governmental authority.

 

14.          Plan Governs.  This Agreement and the Notice of Grant are subject to all terms and provisions of the Plan.  In the event of a conflict between one or more provisions of this Agreement or the Notice of Grant and one or more provisions of the Plan, the provisions of the Plan will govern.

 

15.          Administrator Authority.  The Administrator will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or revoke any such rules (including, but not limited to, the determination of whether or not any RSUs have vested).  All actions taken and all interpretations and determinations made by the Administrator in good faith will be final and binding upon Participant, the Corporation and all other interested persons.  No member of the Administrator will be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement.

 

3

 

16.          Modifications to the Agreement.  The Participant expressly warrants that he or she is not accepting this Agreement in reliance on any promises, representations, or inducements other than those contained herein.  Modifications to this Agreement or the Plan can be made only in an express written amendment executed by a duly authorized officer of the Corporation.  Notwithstanding anything to the contrary in the Plan or this Agreement, the Corporation reserves the right to revise the Agreement as it deems necessary or advisable, in its sole discretion and without the consent of the Participant, to comply with Section 409A of the Code or to otherwise avoid imposition of any additional tax or income recognition under Section 409A of the Code prior to the actual payment of Shares pursuant to this award of RSUs.

 

17.          Notice of Governing Law.  This grant of RSUs shall be governed by, and construed in accordance with, the laws of the State of California without regard to principles of conflict of laws.

 

4

 

EXHIBIT B

 

AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNIT VESTING

(Deferred Settlement Date)

 

The Restricted Stock Unit (“RSU”) Shares shall initially be unvested.  Grantee shall acquire a vested interest in the RSU Shares as follows:

 

1.              No RSU Shares shall vest until the earlier of (i) the Grantee has completed 12 months of Service (as defined in the Plan) measured from the Vesting Commencement Date (“Initial Service Period”), or (ii) the date of Grantee’s cessation of Service.

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]