Document:

Exhibit 10.01

 

 

[Citigroup letterhead]

 

 

February 23, 2007

Mr. Gary Crittenden

 

 

Dear Gary:

 

We are delighted to extend to you an offer to join
Citigroup Inc. (the “Company”) as
Chief Financial Officer of the Company. 
This letter shall become an effective binding agreement upon the
Company’s receipt of a signed copy, together with the Principles of Employment
and CMC Policy (both referenced below), which may be sent by e-mail to
murraym@citigroup.com or fax to Mike Murray, 212-793-3830, followed by hard copies
delivered to Mike Murray, Citigroup Inc., 399 Park Avenue, 7th
Floor, New York, NY 10022.  Your
employment will then commence on March 12, 2007 (the “Commencement
Date”) and will continue until terminated by you, by the Company, or
by reason of your death or Disability (as defined below).

If you accept, you will be joining a family of
companies that serves over 200 million customers in more than 100 countries and
is bound together by a steady focus on growth, a workforce committed to
excellence, and a workplace based on mutual respect, where every employee can
make a difference.

In your capacity as Chief Financial Officer, you
will report directly to the Chief Executive Officer of the Company; you will be
a member of the Company’s senior-most management bodies which, at this time,
are the Citigroup Management Committee, the Business Heads Committee and the
Operating Committee; and you shall perform such duties as are consistent with
your position as Chief Financial Officer. 
You agree that during your employment with the Company you will devote
substantially all of your business time and services to the business and
affairs of the Company.

1.             BASE
SALARY.  Your salary will be paid in
accordance with the Company’s standard policies in effect from time to time
(currently, semi-monthly) at an annual rate of $500,000.

 

 

2.             INCENTIVE
AWARDS.

(a)  With
respect to each of 2007 and 2008, you will receive incentive awards with a
pre-tax nominal value of $9,500,000 (the “2007 and 2008 Awards”),subject
to paragraph 2(c) below, when incentive awards are made to similarly situated
senior executives of the Company (in early 2008 and 2009, as the case may
be).  Thereafter, you will be eligible to
be considered for discretionary incentive awards, which are generally made on
an annual basis and may recognize the Company’s performance as well as your
performance of your job functions in accordance with the Company’s standards
and policies in effect from time to time. 
Your discretionary incentive awards will be determined on the same
basis, and delivered to you at the same time, as those provided to other
members of the Business Heads Committee. 
In order to be eligible to receive any discretionary incentive award,
you must be actively employed on the date the award is granted.

                    (b)  The 2007 and 2008 Awards, as well as any future discretionary incentive awards you may receive from the Company, will be granted as a combination of a cash bonus and one or more retention equity awards in accordance with our Capital Accumulation Program (“CAP”).  Under current program guidelines for members of the Business Heads Committee, the cash amount to be paid to you in each of early 2008 and 2009 will be 60% of the pre-tax nominal value of the incentive award for such year (less applicable withholdings and deductions).  CAP Awards are subject to vesting conditions, including but not limited to continued employment with the Company, and will be cancelled if the conditions to vesting are not satisfied, except as otherwise provided in this letter.
 
                    (c)  The 2007 and 2008 Awards will be subject to the terms and conditions of the Company’s Executive Performance Plan (“EPP”), including the performance criteria in the EPP which are based on the Company’s operating results, and otherwise will be subject to reduction only in the event of extraordinary circumstances drastically negatively affecting the Company’s operating results and, in such event, only to the extent of any similar effect on total compensation (including incentive awards) made to similarly situated senior executives of the Company.
 
 
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                    (d)  You will also be eligible to receive other incentive awards, on the same basis, at the same time and on the same terms and conditions as other similarly situated senior executives of the Company.
 

3.             VOLUNTARY
TERMINATION OR TERMINATION FOR CAUSE. 
You will not be eligible to receive any of the incentive awards
described above (including the 2007 and 2008 Awards) and all of your equity
grants will be cancelled if, before the date of the scheduled delivery or
vesting, you have voluntarily terminated your employment or you have been
terminated by the Company for Cause (as defined below).

“Cause” shall
mean (a) an action taken by a regulatory body or a self regulatory organization
that substantially impairs you from performing your duties and that relates to
any act by you or your failure to act during your tenure as Chief Financial
Officer of the Company; (b) gross misconduct in connection with your employment;
(c) material breach of the Company’s policies or procedures;  (d) dishonesty; (e) breach of your fiduciary
duty of loyalty to the Company; (f) your intentional violation of a federal or
state securities law, rule or regulation; (g) conviction of a felony; (h)
material failure in the performance of your duties; or (i) any material
misrepresentation made by you to us in furtherance of this offer.  If the Company desires to terminate your
employment for Cause, the cessation of your employment shall not be deemed to
be for Cause unless and until there shall have been delivered to you a copy of
a resolution duly adopted by the affirmative vote of not less than two-thirds
of the entire membership of the board of directors of the Company at a meeting
called and held for such purpose.

4.             PERQUISITES.

-                                            The Company
will provide you with a car and driver for your business and personal use and,
subject to availability, you may use Citigroup aircraft for your business
travel.  When Citigroup aircraft is not
available for your business travel, you will be eligible for first-class
commercial air travel.

-                                            You will
receive personal security protection consistent with Citigroup practices and
procedures for similarly situated senior executives as may be in effect from
time to time.

 

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5.             BENEFITS.

(a)  You will
be eligible to participate in the Company’s comprehensive benefit
programs.  All benefits are deliverable
in accordance with the Company’s policies, plans and programs in effect at the
time of delivery.  Further details
regarding these policies, benefit plans and programs will be provided when you
begin your employment.  Please note that
all benefits and other policies, plans and programs are subject to change at
management’s discretion.

(b)  In
addition, notwithstanding the foregoing, if your employment is terminated
without Cause, you terminate your employment for Good Cause or by reason of
your Death or Disability (as defined in the Company’s long-term disability
plan) or you voluntarily terminate your employment after the expiration of two
years from the Commencement Date, you will be eligible to participate in the
Company’s retiree medical program on the same terms as other executives, which
would enable you to elect coverage for both you and your spouse and, if you
predecease your spouse, would enable her to continue her medical benefits
following your death.

(c)  You will
be eligible for six weeks of vacation per calendar year.

6.             TERMINATION
OF EMPLOYMENT WITHOUT CAUSE OR FOR GOOD CAUSE.

(a)  In the
event that on or before your receipt of the 2008 Award, either the Company
terminates your employment without Cause or you terminate your employment for
Good Cause (as defined below):

(1)                                  The Company
will pay you your base salary through the effective date of your termination of
employment, and will make an additional cash payment to you equal to the amount
of base salary you would have earned from the date of your termination through
March 12, 2009 if your employment had not been terminated (less applicable
withholdings and deductions).

(2)                                  The Company
will make you a cash payment for that portion, if any, of the 2007 and/or 2008
Award(s), as the case may be (less applicable withholdings and deductions) that
has not been paid to you prior to the effective date of such termination except
to the extent such non-payment is

 

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prohibited
as a result of the Company’s failure to satisfy the performance requirements
under the EPP for 2007 and/or 2008, as the case may be.

(3)                                  (i)  The basic shares, the supplemental CAP shares
and a pro-rated portion of the premium shares allocable to any outstanding 2007
and 2008 Award under CAP shall be distributed to you as soon as practicable
following your termination of employment (or, in the case of an award of
deferred stock under CAP, at the regularly scheduled distribution date(s) of
the shares underlying such award) and any other special performance award that
has been made to you prior to such termination shall vest and be payable,
subject to performance, when and on the same basis as such awards otherwise
become payable.

(ii)  The non-competition provisions contained in
any CAP award, or any award under any other equity compensation plan or program
of the Company, shall not apply to you.

(b)  In no
event shall you be obligated to seek other employment or take any other action
by way of mitigation of the amounts payable to you under any of the provisions
of this Agreement and such amounts shall not be reduced whether or not you
obtain other employment.

(c)  “Good Cause” shall mean (i) a material reduction in your
responsibilities, duties, authority or positions; (ii) your removal from the
Business Heads Committee, the Management Committee or the Operating Committee
(or their successors); (iii) a significant reduction in compensation that is
either not related to your performance or not applicable to senior executives
at your level; (iv) a change in your reporting relationship that results in
your reporting to someone other than the Chief Executive Officer of the
Company; or (v) the material interference by the Company with your authority to
perform your duties in a manner consistent with applicable regulatory
requirements and sound business practices.

(d)  In these
circumstances, you will not receive the other compensation and benefits
provided for in this letter or any separation pay or similar benefits you might
otherwise be eligible to receive pursuant to any Citigroup plan or policy.  Instead, you will receive the cash payment(s)
and vesting of equity awards as described in this paragraph 6 and paragraph 10;
provided that you execute a settlement
agreement and

 

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general release that is acceptable
to the Company and which does not contain any restrictions on your future
employment other than as contained in this letter.

(e)  Any
termination by the Company for Cause, or by you for Good Cause, shall be
communicated by a Notice of Termination to the other party hereto given in
accordance with paragraph 18 below.  “Notice of Termination” shall mean a written notice which:
(i) indicates the specific termination provision in this letter relied upon,
(ii) to the extent applicable, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of your employment
under the provision so indicated and (iii) if the Date of Termination (as
defined below) is other than the date of receipt of such notice, specifies the
termination date (which date shall be not more than 30 days after the giving of
such notice).  The failure by you or the
Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Cause or Cause shall not constitute a
waiver of any right of you or the Company, respectively, hereunder or preclude
you or the Company, respectively, from asserting such fact or circumstance in
enforcing your or the Company’s rights hereunder.  For this purpose, “Date of Termination”
shall mean the date of receipt of the Notice of Termination or any later date
specified therein within 30 days of such notice, as the case may be.

7.             DEATH
OR DISABILITY.  In the event of a
termination of your employment due to death or Disability at any time after the
commencement of your employment but on or before receipt of your 2008 Award:

(a)  The
Company will make a cash payment for any earned but unpaid base salary though
such effective date of termination (less applicable withholdings and
deductions, and in the case of a Disability, net of any payments received under
the Company’s long term disability plan).

(b)  If the
termination occurs before the 2007 Award is made, the Company will make you a
cash payment equal to $9,500,000, multiplied by a fraction, the numerator of
which shall be the number of days from the effective date of this letter until
either your death or Disability, and the denominator of which shall be the
number of days from the Commencement Date through December 31, 2007.

(c)  If the
termination occurs on or after the 2007 Award is made, but before the 2008
Award is, the Company will make you a cash payment equal to $9,500,000,
multiplied by a fraction, the numerator of which shall

 

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be the number of days
beginning January 1, 2008 until either your death or Disability, and the
denominator of which shall be 366.

(d)  Unpaid
Make Whole Awards (as defined below) will vest and be distributed to you as
soon as practicable following such termination of employment (or, in the case
of an award of deferred stock, will be distributed to you at the regularly
scheduled distribution date(s) underlying such award).

(e)  The
provisions of paragraph 6(a)(3) above shall also apply.

8.             STOCK
OWNERSHIP COMMITMENT.  Citigroup is a
leader among companies that maintain a stock ownership commitment.  For so long as you remain a member of senior
management, you will be required to hold 75% of the shares you own on the date
you become subject to the commitment and 75% of the net (after tax) shares you
acquire under the Company’s equity programs.

9.             REGULATORY
MATTERS.  Effective with the commencement
of your employment, you will become a Section 16 Officer of the Company, you
will be subject to Regulation O of the Board of Governors of the Federal
Reserve Bank, the Company’s Loan Prohibition Policy and the Corporate Personal
Trading Policy.  You will receive more
information about these policies prior to your commencement of employment.

10.           MAKE WHOLE AWARDS. 
We understand that you hold, would receive, or in the past have
received, certain compensation awards, grants and bonuses from your current
employer, as well as above market interest on deferred compensation, which are
subject to forfeiture or reimbursement as a result of your leaving the
employment of your current employer and commencing employment with the Company
within certain time frames.  The Company
will make you whole (the “Make Whole Provisions”)
with respect to the foregoing as follows:  The Company will (i) grant you awards (the “Make Whole Awards”) to offset any such forfeitures and (ii)
be responsible for any reimbursement obligations (together with any net tax
indemnity paid to you under paragraph 11 below, the “Reimbursements”)
which are actually imposed upon you by your current employer as a direct result
of your entering into an agreement to commence employment with the Company or
your commencement of employment with the Company (subject, in each case, to
your providing satisfactory evidence thereof and to the enforceability and
finality of such forfeiture or reimbursement obligation).  The Make Whole Award in

 

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respect of vested, unexercised options from
your current employer shall be paid in cash within 30 days of the Commencement
Date, subject to repayment as described below. 
All other Make Whole Awards will be subject to vesting in two equal
tranches on the first and second anniversaries of the Commencement Date.  In the event that the Company terminates your
employment without Cause or you terminate your employment for Good Cause,
unpaid Make Whole Awards will vest and be distributed to you as soon as
practicable following such termination of employment (or, in the case of an award
of deferred stock, will be distributed to you at the regularly scheduled
distribution date(s) underlying such award) and the Company’s obligation to
make Reimbursements shall continue.  If
you terminate your employment without Good Cause prior to the second
anniversary of the Commencement Date, the Make Whole Provisions will in all
events be forfeited, terminated and/or repaid. 
If your employment is terminated by the Company for Cause prior to the
second anniversary of the Commencement Date, all Make Whole Awards will in all
events be forfeited and/or repaid, the obligation to make Reimbursements shall
terminate and, if such Cause involves any of clauses (b), (c), (d), (e), (f),
(g) or (i) of the definition of Cause in paragraph 3 above, all previously made
Reimbursements shall be repaid.

 

11.           INDEMNIFICATION.  In addition to the foregoing, and in addition
to your rights to indemnification as set forth in the By-Laws of the Company,
the Company will indemnify you and hold you harmless from and against any and
all liabilities, suits, claims, actions, causes of action, judgments,
settlements, debts and expenses (including actually and reasonably incurred
legal fees and costs) of any kind whatsoever arising from and in connection
with any action by your current employer attributable solely to your accepting
employment or commencing employment with the Company and any federal, state and
local taxes attributable to any reimbursement pursuant to paragraph 10(ii)
above and any such taxes thereon, net of all federal, state and local tax
benefits realized by you by reason of such reimbursement (separately and
collectively, the “Claims”); provided, however, that the Make Whole Provisions shall
fully satisfy any such indemnification obligation with respect to Claims relating
to the items described in paragraph 10 above, other than taxes as provided in
this paragraph 11.  The Company shall
control your defense against any such Claims, and you agree to cooperate with
the Company to mitigate costs, expenses and other damages associated with such
Claims and to cooperate fully in such defense. 
For the avoidance of doubt, you agree to cooperate with the Company to
minimize tax obligations with respect to reimbursements made pursuant to

 

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paragraph 10(ii) above and
to pursue, with participation by the Company at the Company’s expense and
reasonable request, all federal, state and local tax benefits available to you
by reason of such reimbursements.

12.           PRIOR
AGREEMENTS.  We understand that you will
abide by any pre-existing terms and conditions that are contained in any
contractual restrictive covenants you may have entered into with your current
employer or any other prior employer, including any covenants relating to the
hiring or solicitation of employees or maintaining the confidentiality of
proprietary information.  You represent
that you have provided the Company with copies of any and all agreements
between you and your current or prior employers relating to your conduct in connection
with or following termination of your employment with such employer.  You and we both agree that the commencement
of your employment with the Company will not be in violation of any such
pre-existing agreement.

13.           NON-SOLICITATION.  In consideration of your employment, you
agree that while you are employed with the Company and for one year following
termination of your employment, you will not directly or indirectly solicit,
induce, or otherwise encourage any person to leave the employment of or
terminate any customer relationship with the Company or any of its subsidiaries
or affiliates.

14.           CONFIDENTIAL
AND PROPRIETARY INFORMATION.  You also
agree that during your employment, you will have access to or acquire
confidential, client, employee, competitive and/or other business information
that is unique and cannot be lawfully duplicated or easily acquired.  You understand and agree that you will have a
continuing obligation not to use, publish or otherwise disclose such
information either during or after your employment with the Company.

15.           GOVERNING
LAW AND ARBITRATION.  The terms and
conditions set forth in this letter will be governed by and interpreted in
accordance with the laws of the State of New York.  Any controversy or dispute relating to your
employment with or separation from the Company, including with respect to the
terms and conditions set forth in this letter, will be resolved in accordance
with the Employment Arbitration Policy described in the enclosed Principles of
Employment, which are incorporated herein by reference.

16.           TAXES.  All payments to you, incentive awards,
perquisites, and benefits set forth in this letter are subject to, and the
Company will

 

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withhold such federal, state
and local taxes as the Company reasonably determines are required by applicable
law or regulation.  You remain obligated
to pay all required taxes on all payments to you, incentive awards,
perquisites, and benefits regardless of whether withholding is required or made
by the Company, except as set forth in paragraphs 10 and 11 above.

17.           SECTION
409A.  Notwithstanding any provision of
this letter to the contrary, if at the time of the termination of your
employment you are a “specified employee” (as defined in Section 409A of the
Code), you will not be entitled to any payments upon such termination until the
earlier of (i) the date which is 6 months after your termination of employment
for any reason other than death or disability (as such term is used in Section
409A(a)(2)(C) of the Code) or (ii) the date of your death or disability (as
such term is used in Section 409A(a)(2)(C) of the Code).  The provisions of this paragraph 17 will only
apply if required to comply with Section 409A of the Code.  In addition, if any provision of this letter
would subject you to any additional tax or interest under Section 409A of the
Code or any regulations or Treasury guidance promulgated thereunder, then upon
your written request, the Company will reform such provision; provided that the Company will maintain, to the maximum
extent practicable, the original intent of the applicable provision without
subjecting you to such additional tax or interest.

18.           NOTICES.  Any notice, request or demand given pursuant
to this letter shall be in writing and shall be delivered to the designees
below via hand delivery; first-class mail, certified and registered; or
overnight delivery by a nationally recognized courier service:

 

	
  TO YOU:

  	
  TO THE COMPANY:

  
	
  c/o McCarter &
  English, LLP

  	
  Citigroup Inc.

  
	
  245 Park Avenue

  	
  399 Park Avenue

  
	
  New York, New York 10167

  	
  New York, NY 10043

  
	
  Attn: Steven Eckhaus, Esq.

  	
  Attn: Mike Murray

  
	
  212-609-6830 (tel)

  	
  212-793-8933 (tel)

  
	
  212-645-0452 (fax)

  	
  212-793-3830 (fax)

  

 

Your employment is contingent upon successful
completion of any and all procedures and verifications to meet employment
eligibility.  On February 23, 2007, you
satisfied all such procedures and requirements.

 

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This letter and the enclosed Principles of
Employment and Employment Termination Notice and Non-Solicitation Policy for
the Citigroup Management Committee (the “CMC Policy”),
which is incorporated herein by reference, describe the Company’s offer of
employment.  Any discussions that you may
have had with us are not part of this offer unless they are described in this
letter, the Corporate Center Employee Handbook, the Citigroup Code of Conduct,
the Principles of Employment or the CMC Policy (which you must read carefully,
sign and return as part of accepting our offer).  This letter should not be construed as a
promise or guarantee of employment for any defined period of time.  Your employment with the Company is “at
will”, which affords either party the right to terminate the relationship at
any time for any reason or for no reason at all not otherwise prohibited by
law.

We are confident that Citigroup will provide you
with a rewarding and challenging career, and I look forward to working with you
in your new role.

 

11

 

Please let me know that you have accepted this offer
by signing below and returning your signed letter, Principles of Employment and
CMC Policy to me.

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  /s/ Chuck Prince

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ACCEPTED AND AGREED:

  
	
   

  	
   

  
	
   

  	
  /s/ Gary Crittenden

  
	
   

  	
  Gary Crittenden

  
	
   

  	
  Date: February 23, 2007

  

 

 

 

Enclosures:

Principles
of Employment

Employment
Termination Notice and Non-Solicitation Policy for the Citigroup Management
Committee

 

12Exhibit 10.4

 

STARENT NETWORKS, CORP.

 

2007 STOCK INCENTIVE PLAN

 

1.             Purpose.

 

The purpose of this 2007 Stock Incentive Plan (the “Plan”)
of Starent Networks. Corp., a Delaware  corporation
(the “Company”), is to advance the interests of the Company’s stockholders by
enhancing the Company’s ability to attract, retain and motivate persons who are
expected to make important contributions to the Company and by providing such
persons with equity ownership opportunities and performance-based incentives
that are intended to better align the interests of such persons with those of
the Company’s stockholders. Except where the context otherwise requires, the
term “Company” shall include any of the Company’s present or future parent or
subsidiary corporations as defined in Sections 424(e) or (f) of the
Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder (the “Code”) and any other business venture (including, without
limitation, joint venture or limited liability company) in which the Company
has a controlling interest, as determined by the Board of Directors of the
Company (the “Board”).

 

2.             Eligibility.

 

All of the Company’s employees, officers, directors,
consultants and advisors are eligible to be granted options, stock appreciation
rights, restricted stock, restricted stock units and other stock-based awards
(each, an “Award”) under the Plan. Each person who receives an Award under the
Plan is deemed a “Participant”.

 

3.             Administration and Delegation.

 

(a)           Administration by
Board of Directors. The Plan will be administered by the Board. The Board
shall have authority to grant Awards and to adopt, amend and repeal such
administrative rules, guidelines and practices relating to the Plan as it shall
deem advisable. The Board may construe and interpret the terms of the Plan and
any Award agreements entered into under the Plan. The Board may correct any
defect, supply any omission or reconcile any inconsistency in the Plan or any
Award in the manner and to the extent it shall deem expedient to carry the Plan
into effect and it shall be the sole and final judge of such expediency. All
decisions by the Board shall be made in the Board’s sole discretion and shall
be final and binding on all persons having or claiming any interest in the Plan
or in any Award. No director or person acting pursuant to the authority
delegated by the Board shall be liable for any action or determination relating
to or under the Plan made in good faith.

 

(b)           Appointment of
Committees. To the extent permitted by applicable law, the Board may
delegate any or all of its powers under the Plan to one or more committees or
subcommittees of the Board (a “Committee”). All references in the Plan to the “Board”
shall mean the Board or a Committee of the Board or the officers referred to in
Section 3(c) to the extent that the Board’s powers or authority under the Plan
have been delegated to such Committee or officers.

 

 

(c)           Delegation to
Officers. To the extent permitted by applicable law, the Board may delegate
to one or more officers of the Company the power to grant Awards (subject to
any limitations under the Plan) to employees or officers of the Company or any
of its present or future subsidiary corporations and to exercise such other
powers under the Plan as the Board may determine, provided that the Board shall
fix the terms of the Awards to be granted by such officers (including the
exercise price of such Awards, which may include a formula by which the
exercise price will be determined) and the maximum number of shares subject to
Awards that the officers may grant; provided further, however, that no officer
shall be authorized to grant Awards to any “executive officer” of the Company
(as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule
16a-1 under the Exchange Act).

 

4.             Stock Available for Awards.

 

(a)           Number of Shares.
Subject to adjustment under Section 9, Awards may be made under the Plan for up
to the number of shares of common stock, $0.001 par value per share, of the
Company (the “Common Stock”) that is equal to the sum of:

 

(1)           3,000,000
shares of Common Stock; plus

 

(2)           such
additional number of shares of Common Stock (up to 1,833,333 shares) as is
equal to the sum of (x) the number of shares of Common Stock reserved for
issuance under the Company’s 2000 Stock Incentive Plan (the “Existing Plan”)
that remain available for grant under the Existing Plan immediately prior to
the closing of the Company’s initial public offering and (y) the number of
shares of Common Stock subject to awards granted under the Existing Plan which
awards expire, terminate or are otherwise surrendered, canceled, forfeited or
repurchased by the Company at their original issuance price pursuant to a
contractual repurchase right (subject, however, in the case of Incentive Stock
Options (as hereinafter defined) to any limitations of the Code); plus

 

(3)           an
annual increase to be added on the first day of each of the Company’s fiscal
years during the period beginning in fiscal year 2009 and ending on the second
day of fiscal year 2017 equal to the lesser of (i) 3,000,000 shares of Common
Stock, (ii) 5% of the outstanding shares on such date or (iii) an amount
determined by the Board.

 

If any
Award expires or is terminated, surrendered or canceled without having been
fully exercised, is forfeited in whole or in part (including as the result of
shares of Common Stock subject to such Award being repurchased by the Company
at the original issuance price pursuant to a contractual repurchase right), or
is settled in cash or otherwise results in any Common Stock not being issued,
the unused Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan. Further, shares of Common Stock tendered to the
Company by a Participant to exercise an Award shall be added to the number of
shares of Common Stock available for the grant of Awards under the Plan. However,
in the case of Incentive Stock Options (as hereinafter defined), the foregoing
provisions shall be subject to any limitations under the Code. Shares issued
under the Plan may consist in whole or in part of authorized but unissued
shares or treasury shares.

 

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(b)           Per-Participant
Limit. Subject to adjustment under Section 9, the maximum number of
shares of Common Stock with respect to which Awards may be granted to any
Participant under the Plan shall be  1,333,333 per
calendar year. The per-Participant limit described in this Section 4(b) shall
be construed and applied consistently with Section 162(m) of the Code or any
successor provision thereto, and the regulations thereunder (“Section 162(m)”).

 

(c)           Substitute Awards.
In connection with a merger or consolidation of an entity with the Company or
the acquisition by the Company of property or stock of an entity, the Board may
grant Awards in substitution for any options or other stock or stock-based
awards granted by such entity or an affiliate thereof. Substitute Awards may be
granted on such terms as the Board deems appropriate in the circumstances,
notwithstanding any limitations on Awards contained in the Plan. Substitute
Awards shall not count against the overall share limit set forth in
Section 4(a), except as may be required by reason of Section 422 and
related provisions of the Code.

 

5.             Stock Options.

 

(a)           General. The
Board may grant options to purchase Common Stock (each, an “Option”) and
determine the number of shares of Common Stock to be covered by each Option,
the exercise price of each Option and the conditions and limitations applicable
to the exercise of each Option, including conditions relating to applicable
federal or state securities laws, as it considers necessary or advisable. An
Option which is not intended to be an Incentive Stock Option (as hereinafter
defined) shall be designated a “Nonstatutory Stock Option”.

 

(b)           Incentive Stock
Options. An Option that the Board intends to be an “incentive stock option”
as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only
be granted to employees of Starent Networks, Corp., any of Starent Networks,
Corp.’s present or future parent or subsidiary corporations as defined in
Sections 424(e) or (f) of the Code, and any other entities the employees of
which are eligible to receive Incentive Stock Options under the Code, and shall
be subject to and shall be construed consistently with the requirements of
Section 422 of the Code. The Company shall have no liability to a Participant,
or any other party, if an Option (or any part thereof) that is intended to be
an Incentive Stock Option is not an Incentive Stock Option or for any action
taken by the Board, including without limitation the conversion of an Incentive
Stock Option to a Nonstatutory Stock Option.

 

(c)           Exercise Price. The
Board shall establish the exercise price of each Option and specify such
exercise price in the applicable option agreement. The exercise price shall be
not less than 100% of the Fair Market Value (as defined below) on the date the
Option is granted; provided that if the Board approves the grant of an Option
with an exercise price to be determined on a future date and the date of grant
is deemed to be the date the Board approved the Option (rather than such future
date), the exercise price shall be not less than 100% of the Fair Market Value
on such future date.

 

(d)           Duration of Options.
Each Option shall be exercisable at such times and subject to such terms and
conditions as the Board may specify in the applicable option agreement.

 

3

 

(e)           Exercise of Option.
Options may be exercised by delivery to the Company of a written notice of
exercise signed by the proper person or by any other form of notice (including
electronic notice) approved by the Board together with payment in full as
specified in Section 5(f) for the number of shares for which the Option is
exercised. Shares of Common Stock subject to the Option will be delivered by
the Company following exercise either as soon as practicable or, subject to
such conditions as the Board shall specify, on a deferred basis (with the
Company’s obligation to be evidenced by an instrument providing for future
delivery of the deferred shares at the time or times specified by the Board).

 

(f)            Payment Upon
Exercise. Common Stock purchased upon the exercise of an Option granted
under the Plan shall be paid for as follows:

 

(1)           in
cash or by check, payable to the order of the Company;

 

(2)           except
as may otherwise be provided in the applicable option agreement, by (i)
delivery of an irrevocable and unconditional undertaking by a creditworthy
broker to deliver promptly to the Company sufficient funds to pay the exercise
price and any required tax withholding or (ii) delivery by the Participant to the
Company of a copy of irrevocable and unconditional instructions to a
creditworthy broker to deliver promptly to the Company cash or a check
sufficient to pay the exercise price and any required tax withholding;

 

(3)           to
the extent provided for in the applicable option agreement or approved by the
Board, in its sole discretion, by delivery (either by actual delivery or
attestation) of shares of Common Stock owned by the Participant valued at their
fair market value as determined by (or in a manner approved by) the Board (“Fair
Market Value”), provided (i) such method of payment is then permitted under
applicable law, (ii) such Common Stock, if acquired directly from the Company,
was owned by the Participant for such minimum period of time, if any, as may be
established by the Board in its discretion and (iii) such Common Stock is not
subject to any repurchase, forfeiture, unfulfilled vesting or other similar
requirements;

 

(4)           to
the extent permitted by applicable law and provided for in the applicable
option agreement or approved by the Board, in its sole discretion, by (i)
delivery of a promissory note of the Participant to the Company on terms
determined by the Board, or (ii) payment of such other lawful
consideration as the Board may determine; or

 

(5)           by
any combination of the above permitted forms of payment.

 

6.             Restricted Stock; Restricted Stock Units.

 

(a)           General. The
Board may grant Awards entitling recipients to acquire shares of Common Stock (“Restricted
Stock”), subject to the right of the Company to repurchase all or part of such
shares at their issue price or other stated or formula price (or to require
forfeiture of such shares if issued at no cost) from the recipient in the event
that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award. Instead of granting Awards for
Restricted Stock, the Board may grant Awards entitling the recipient to receive
shares of Common Stock to be delivered at the time such shares of Common Stock
vest (“Restricted Stock

 

4

 

Units”)
(Restricted Stock and Restricted Stock Units are each referred to herein as a “Restricted
Stock Award”).

 

(b)           Terms and Conditions.
The Board shall determine the terms and conditions of a Restricted Stock Award,
including the conditions for vesting and repurchase (or forfeiture) and the
issue price, if any.

 

(c)           Additional
Provisions Relating to Restricted Stock.

 

(1)           Dividends.
Participants holding shares of Restricted Stock will be entitled to all
ordinary cash dividends paid with respect to such shares, unless otherwise
provided by the Board. If any such dividends or distributions are paid in
shares, or consist of a dividend or distribution to holders of Common Stock
other than an ordinary cash dividend, the shares, cash or other property will
be subject to the same restrictions on transferability and forfeitability as
the shares of Restricted Stock with respect to which they were paid, unless
otherwise provided by the Board. Each dividend payment will be made no later
than the end of the calendar year in which the dividends are paid to
shareholders of that class of stock or, if later, the 15th day of the third
month following the date the dividends are paid to shareholders of that class
of stock.

 

(2)           Stock
Certificates. The Company may require that any stock certificates issued in
respect of shares of Restricted Stock shall be deposited in escrow by the
Participant, together with a stock power endorsed in blank, with the Company
(or its designee). At the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant
to receive amounts due or exercise rights of the Participant in the event of
the Participant’s death (the “Designated Beneficiary”). In the absence of an
effective designation by a Participant, “Designated Beneficiary” shall mean the
Participant’s estate.

 

(d)           Additional
Provisions Relating to Restricted Stock Units.

 

(1)           Settlement.
Upon the vesting of and/or lapsing of any other restrictions (i.e., settlement)
with respect to each Restricted Stock Unit, the Participant shall be entitled
to receive from the Company one share of Common Stock or an amount of cash
equal to the Fair Market Value of one share of Common Stock, as provided in the
applicable Award agreement. The Board may, in its discretion, provide that
settlement of Restricted Stock Units shall be deferred, on a mandatory basis or
at the election of the Participant.

 

(2)           Voting
Rights. A Participant shall have no voting rights with respect to any
Restricted Stock Units.

 

(3)           Dividend
Equivalents. To the extent provided by the Board, a grant of Restricted
Stock Units may provide Participants with the right to receive an amount equal
to any dividends or other distributions declared and paid on an equal number of
outstanding shares of Common Stock (“Dividend Equivalents”). Dividend
Equivalents may be paid currently or credited to an account for the
Participants, may be settled in cash and/or shares of Common Stock and may be
subject to the same restrictions on transfer and forfeitability as the
Restricted Stock Units with respect to which paid, as determined by the Board,
subject in each case to such

 

5

 

terms and
conditions as the Board shall establish, in each case to be set forth in the
applicable Award agreement.

 

7.             Other Stock-Based Awards.

 

Other Awards of shares of Common Stock, and other
Awards that are valued in whole or in part by reference to, or are otherwise
based on, shares of Common Stock or other property, may be granted hereunder to
Participants (“Other Stock Based Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the
future. Such Other Stock Based Awards shall also be available as a form of
payment in the settlement of other Awards granted under the Plan or as payment
in lieu of compensation to which a Participant is otherwise entitled. Other
Stock Based Awards may be paid in shares of Common Stock or cash, as the Board
shall determine. Subject to the provisions of the Plan, the Board shall
determine the terms and conditions of each Other Stock Based Award, including
any purchase price applicable thereto.

 

8.             Performance Awards.

 

(a)           Grants. Restricted
Stock Awards and Other Stock-Based Awards under the Plan may be made subject to
the achievement of performance goals pursuant to this Section 8 (“Performance
Awards”), subject to the limit in Section 4(b)(1) on shares covered by such
grants.

 

(b)           Committee. Grants
of Performance Awards to any Covered Employee intended to qualify as “performance-based
compensation” under Section 162(m) (“Performance-Based Compensation”) shall be
made only by a Committee (or subcommittee of a Committee) comprised solely of
two or more directors eligible to serve on a committee making Awards qualifying
as “performance-based compensation” under Section 162(m). In the case of such
Awards granted to Covered Employees, references to the Board or to a Committee
shall be deemed to be references to such Committee or subcommittee. “Covered
Employee” shall mean any person who is a “covered employee” under Section
162(m)(3) of the Code.

 

(c)           Performance Measures.
For any Award that is intended to qualify as Performance-Based Compensation,
the Committee shall specify that the degree of granting, vesting and/or payout
shall be subject to the achievement of one or more objective performance
measures established by the Committee, which shall be based on the relative or
absolute attainment of specified levels of one or any combination of the
following:  (a) net income, (b) earnings
before or after discontinued operations, interest, taxes, depreciation and/or
amortization, (c) operating profit before or after discontinued operations
and/or taxes, (d) sales, (e) sales growth, (f) earnings growth, (g) cash flow
or cash position, (h) gross margins, (i) stock price, (j) market share, (k)
return on sales, assets, equity or investment, (l) improvement of financial
ratings, (m) achievement of balance sheet or income statement objectives or (n)
total shareholder return and may be absolute in their terms or measured against
or in relationship to other companies comparably, similarly or otherwise
situated. Such performance measures may be adjusted to exclude any one or more
of (i) extraordinary items, (ii) gains or losses on the dispositions of
discontinued operations, (iii) the cumulative effects of changes in accounting
principles, (iv) the writedown of any asset, and (v) charges for restructuring
and rationalization

 

6

 

programs. Such
performance measures:  (i) may vary by
Participant and may be different for different Awards; (ii) may be particular
to a Participant or the department, branch, line of business, subsidiary or
other unit in which the Participant works and may cover such period as may be
specified by the Committee; and (iii) shall be set by the Committee within the
time period prescribed by, and shall otherwise comply with the requirements of,
Section 162(m). Awards that are not intended to qualify as Performance-Based
Compensation may be based on these or such other performance measures as the
Board may determine.

 

(d)           Adjustments. Notwithstanding
any provision of the Plan, with respect to any Performance Award that is
intended to qualify as Performance-Based Compensation, the Committee may adjust
downwards, but not upwards, the cash or number of Shares payable pursuant to
such Award, and the Committee may not waive the achievement of the applicable performance
measures except in the case of the death or disability of the Participant or a
change in control of the Company.

 

(e)           Other. The
Committee shall have the power to impose such other restrictions on Performance
Awards as it may deem necessary or appropriate to ensure that such Awards
satisfy all requirements for Performance-Based Compensation.

 

9.             Adjustments for Changes in Common Stock and
Certain Other Events.

 

(a)           Changes in
Capitalization. In the event of any stock split, reverse stock split, stock
dividend, recapitalization, combination of shares, reclassification of shares,
spin-off or other similar change in capitalization or event, or any dividend or
distribution to holders of Common Stock other than an ordinary cash dividend,
(i) the number and class of securities available under this Plan and the
numbers of shares set forth in Section 4(a), (ii) the per-Participant limit set
forth in Section 4(b), (iii) the number and class of securities and exercise
price per share of each outstanding Option, (iv) the share- and per-share
provisions and the exercise price of each Stock Appreciation Right, (v) the
number of shares subject to, and the repurchase price per share subject to,
each outstanding Restricted Stock Award, and (vi) the share- and per-share-related
provisions of each outstanding Other Stock Based Award, shall be equitably
adjusted by the Company (or substituted Awards may be made, if applicable) in
the manner determined by the Board. Without limiting the generality of the
foregoing, in the event the Company effects a split of the Common Stock by
means of a stock dividend and the exercise price of and the number of shares
subject to an outstanding Option are adjusted as of the date of the
distribution of the dividend (rather than as of the record date for such
dividend), then an optionee who exercises an Option between the record date and
the distribution date for such stock dividend shall be entitled to receive, on
the distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the record date for
such stock dividend.

 

(b)           Reorganization
Events

 

(1)           Definition.
A “Reorganization Event” shall mean:  (a)
any merger or consolidation of the Company with or into another entity as a
result of which all of the Common Stock of the Company is converted into or
exchanged for the right to receive cash, securities or

 

7

 

other property or
is cancelled, (b) any exchange of all of the Common Stock of the Company for
cash, securities or other property pursuant to a share exchange transaction or
(c) any liquidation or dissolution of the Company.

 

(2)           Consequences
of a Reorganization Event on Awards Other than Restricted Stock Awards. In
connection with a Reorganization Event, the Board may take any one or more of
the following actions as to all or any (or any portion of) outstanding Awards
other than Restricted Stock Awards on such terms as the Board determines:  (i) provide that Awards shall be
assumed, or substantially equivalent Awards shall be substituted, by the
acquiring or succeeding corporation (or an affiliate thereof), (ii) upon
written notice to a Participant, provide that the Participant’s unexercised
Options or other unexercised Awards will terminate immediately prior to the
consummation of such Reorganization Event unless exercised by the Participant
within a specified period following the date of such notice, (iii) provide
that outstanding Awards shall become exercisable, realizable, or deliverable,
or restrictions applicable to an Award shall lapse, in whole or in part prior
to or upon such Reorganization Event, (iv) in the event of a Reorganization
Event under the terms of which holders of Common Stock will receive upon
consummation thereof a cash payment for each share surrendered in the
Reorganization Event (the “Acquisition Price”), make or provide for a cash
payment to a Participant equal to the excess, if any, of (A) the
Acquisition Price times the number of shares of Common Stock subject to the
Participant’s Options or other Awards (to the extent the exercise price does
not exceed the Acquisition Price) over (B) the aggregate exercise price of all such
outstanding Options or other Awards and any applicable tax withholdings, in
exchange for the termination of such Options or other Awards, (v) provide
that, in connection with a liquidation or dissolution of the Company, Awards
shall convert into the right to receive liquidation proceeds (if applicable,
net of the exercise price thereof and any applicable tax withholdings) and (vi)
any combination of the foregoing. In taking any of the actions permitted under
this Section 9(b), the Board shall not be obligated by the Plan to treat all
Awards, or Awards of the same type, identically.

 

(3)           For
purposes of clause (i) above, an Option shall be considered assumed if,
following consummation of the Reorganization Event, the Option confers the
right to purchase, for each share of Common Stock subject to the Option
immediately prior to the consummation of the Reorganization Event, the
consideration (whether cash, securities or other property) received as a result
of the Reorganization Event by holders of Common Stock for each share of Common
Stock held immediately prior to the consummation of the Reorganization Event
(and if holders were offered a choice of consideration, the type of
consideration chosen by the holders of a majority of the outstanding shares of
Common Stock); provided, however, that if the consideration received as a
result of the Reorganization Event is not solely common stock of the acquiring
or succeeding corporation (or an affiliate thereof), the Company may, with the
consent of the acquiring or succeeding corporation, provide for the
consideration to be received upon the exercise of Options to consist solely of
common stock of the acquiring or succeeding corporation (or an affiliate
thereof) equivalent in value (as determined by the Board in its sole
discretion) to the per share consideration received by holders of outstanding
shares of Common Stock as a result of the Reorganization Event.

 

(4)           Consequences
of a Reorganization Event on Restricted Stock Awards. Upon the occurrence
of a Reorganization Event other than a liquidation or dissolution of the

 

8

 

Company, the
repurchase and other rights of the Company under each outstanding Restricted
Stock Award shall inure to the benefit of the Company’s successor and shall,
unless the Board determines otherwise, apply to the cash, securities or other
property which the Common Stock was converted into or exchanged for pursuant to
such Reorganization Event in the same manner and to the same extent as they applied
to the Common Stock subject to such Restricted Stock Award. Upon the occurrence
of a Reorganization Event involving the liquidation or dissolution of the
Company, except to the extent specifically provided to the contrary in the
instrument evidencing any Restricted Stock Award or any other agreement between
a Participant and the Company, all restrictions and conditions on all
Restricted Stock Awards then outstanding shall automatically be deemed
terminated or satisfied.

 

10.           General Provisions Applicable to Awards.

 

(a)           Transferability of
Awards. Except as the Board may otherwise determine or provide in an Award,
Awards shall not be sold, assigned, transferred, pledged or otherwise
encumbered by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and distribution or,
other than in the case of an Incentive Stock Option, pursuant to a qualified
domestic relations order, and, during the life of the Participant, shall be
exercisable only by the Participant.

 

(b)           Documentation. Each
Award shall be evidenced in such form (written, electronic or otherwise) as the
Board shall determine. Each Award may contain terms and conditions in addition
to those set forth in the Plan.

 

(c)           Board Discretion.
Except as otherwise provided by the Plan, each Award may be made alone or in
addition or in relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly.

 

(d)           Termination of
Status. The Board shall determine the effect on an Award of the disability,
death, termination of employment, authorized leave of absence or other change
in the employment or other status of a Participant and the extent to which, and
the period during which, the Participant, or the Participant’s legal
representative, conservator, guardian or Designated Beneficiary, may exercise
rights under the Award.

 

(e)           Withholding. The
Participant must satisfy all applicable federal, state, and local or other
income and employment tax withholding obligations before the Company will
deliver stock certificates or otherwise recognize ownership of Common Stock
under an Award. The Company may decide to satisfy the withholding obligations
through additional withholding on salary or wages. If the Company elects not to
or cannot withhold from other compensation, the Participant must pay the
Company the full amount, if any, required for withholding or have a broker
tender to the Company cash equal to the withholding obligations. Payment of
withholding obligations is due before the Company will issue any shares on
exercise or release from forfeiture of an Award or, if the Company so requires,
at the same time as is payment of the exercise price unless the Company
determines otherwise. If provided for in an Award or approved by the Board in
its sole discretion, a Participant may satisfy such tax obligations in whole or
in part by delivery of shares of Common Stock, including shares retained from
the Award creating the tax obligation, valued at their Fair Market Value;
provided, however, except

 

9

 

as otherwise
provided by the Board, that the total tax withholding where stock is being used
to satisfy such tax obligations cannot exceed the Company’s minimum statutory
withholding obligations (based on minimum statutory withholding rates for
federal and state tax purposes, including payroll taxes, that are applicable to
such supplemental taxable income). Shares surrendered to satisfy tax
withholding requirements cannot be subject to any repurchase, forfeiture,
unfulfilled vesting or other similar requirements.

 

(f)            Amendment of Award.

 

(1)           The
Board may amend, modify or terminate any outstanding Award, including but not
limited to, substituting therefor another Award of the same or a different
type, changing the date of exercise or realization, and converting an Incentive
Stock Option to a Nonstatutory Stock Option, provided that the Participant’s
consent to such action shall be required (A) the Board determines that the
action, taking into account any related action, would not materially and
adversely affect the Participant’s rights under the Plan or (B) the change is
permitted under Section 9 hereof.

 

(2)           The
Board may not, without stockholder approval, amend any outstanding Option
granted under the Plan to provide an exercise price per share that is lower
than the then-current exercise price per share of such outstanding Option.

 

(g)           Conditions on
Delivery of Stock. The Company will not be obligated to deliver any shares
of Common Stock pursuant to the Plan or to remove restrictions from shares
previously delivered under the Plan until (i) all conditions of the Award have
been met or removed to the satisfaction of the Company, (ii) in the
opinion of the Company’s counsel, all other legal matters in connection with
the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market
rules and regulations, and (iii) the Participant has executed and delivered to
the Company such representations or agreements as the Company may consider
appropriate to satisfy the requirements of any applicable laws, rules or
regulations.

 

(h)           Acceleration. The
Board may at any time provide that any Award shall become immediately
exercisable in full or in part, free of some or all restrictions or conditions,
or otherwise realizable in full or in part, as the case may be.

 

11.           Miscellaneous.

 

(a)           No Right To
Employment or Other Status. No person shall have any claim or right to be
granted an Award, and the grant of an Award shall not be construed as giving a
Participant the right to continued employment or any other relationship with
the Company. The Company expressly reserves the right at any time to dismiss or
otherwise terminate its relationship with a Participant free from any liability
or claim under the Plan, except as expressly provided in the applicable Award.

 

(b)           No Rights As
Stockholder. Subject to the provisions of the applicable Award, no Participant
or Designated Beneficiary shall have any rights as a stockholder with respect
to any shares of Common Stock to be distributed with respect to an Award until
becoming the record holder of such shares.

 

10

 

(c)           Effective Date and
Term of Plan. The Plan shall become effective on the date on which it is
adopted by the Board. No Awards shall be granted under the Plan after the
expiration of 10 years from the earlier of (i) the date on which the Plan was
adopted by the Board or (ii) the date the Plan was approved by the Company’s
stockholders, but Awards previously granted may extend beyond that date.

 

(d)           Amendment of Plan.
The Board may amend, suspend or terminate the Plan or any portion thereof at
any time provided that (i) to the extent required by Section 162(m), no Award
granted to a Participant that is intended to comply with Section 162(m) after
the date of such amendment shall become exercisable, realizable or vested, as
applicable to such Award, unless and until such amendment shall have been
approved by the Company’s stockholders if required by Section 162(m) (including
the vote required under Section 162(m)); and (ii) no amendment that would
require stockholder approval under the rules of the NASDAQ Stock Market (“NASDAQ”)
may be made effective unless and until such amendment shall have been approved
by the Company’s stockholders. Unless otherwise specified in the amendment, any
amendment to the Plan adopted in accordance with this Section 11(d) shall apply
to, and be binding on the holders of, all Awards outstanding under the Plan at
the time the amendment is adopted, provided the Board determines that such
amendment does not materially and adversely affect the Participant’s rights
under the Plan.

 

(e)           Authorization of
Sub-Plans. The Board may from time to time establish one or more sub-plans
under the Plan for purposes of satisfying applicable blue sky, securities or
tax laws of various jurisdictions. The Board shall establish such sub-plans by
adopting supplements to this Plan containing (i) such limitations on the Board’s
discretion under the Plan as the Board deems necessary or desirable or (ii)
such additional terms and conditions not otherwise inconsistent with the Plan
as the Board shall deem necessary or desirable. All supplements adopted by the
Board shall be deemed to be part of the Plan, but each supplement shall apply
only to Participants within the affected jurisdiction and the Company shall not
be required to provide copies of any supplement to Participants in any
jurisdiction which is not the subject of such supplement.

 

(f)            Compliance with
Code Section 409A. No Award shall provide for deferral of compensation that
does not comply with Section 409A of the Code, unless the Board, at the time of
grant, specifically provides that the Award is not intended to comply with
Section 409A of the Code. The Company shall have no liability to a Participant,
or any other party, if an Award that is intended to be exempt from, or
compliant with, Section 409A is not so exempt or compliant or for any action
taken by the Board.

 

(g)           Governing Law. The
provisions of the Plan and all Awards made hereunder shall be governed by and
interpreted in accordance with the laws of the State of Delaware, excluding
choice-of-law principles of the law of such state that would require the
application of the laws of a jurisdiction other than such state.

 

11

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