Document:

OVRL 12.31.2011 EX.10.1

EXHIBIT 10.1

		
	**
	Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

SETTLEMENT AGREEMENT

This Settlement Agreement is by and between Overland Storage, Inc. (referred to herein as “Overland”), a California corporation with a principal place of business at 9112 Spectrum Center Boulevard, San Diego, California 92123; and International Business Machines Corporation (referred to herein as “IBM”), a New York corporation with a principal place of business at 1 New Orchard Road, Armonk, New York 10504-1722 (each of Overland and IBM is referred to herein as a “Party” and are collectively referred to herein as the “Parties”).
RECITALS
Whereas, Overland and IBM are parties to the ITC Action and the District Court Action (both defined below);
Whereas, the Parties wish to resolve their differences in the ITC Action and the District Court Action without admitting liability or conceding the claims or defenses raised against it;
Whereas, each of the Parties acknowledges that the execution of this Settlement Agreement will be of substantial benefit to it.
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1.DEFINITIONS
As used herein, capitalized terms not otherwise defined herein shall have the following meanings:
1.1    “ITC Action” means the action in the United States International Trade Commission captioned In re Certain Automated Media Library Devices, Investigation No. 337-TA-746. 
1.2    “District Court Action” means the action in the United States District Court for the Southern District of California captioned Overland Storage, Inc. v. BDT Automation Technology (ZHUHAI FTZ) Co., Ltd., et al., Civil Action No. 10-CV-1700.

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1.3    “License Agreement” shall mean that certain license agreement entered by and between Overland and IBM concurrent herewith, a copy of which is attached hereto as Exhibit C.
1.4    ** 
1.5    “Patents-In-Suit” shall mean U.S. Patent Nos. 6,328,766 and 6,353,581.
1.6    “Subsidiary” of a Party hereto or of a third party shall mean a corporation, company or other entity:
1.6.1    more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, now or hereafter, owned or controlled, directly or indirectly, by a Party hereto or such third party, but such corporation, company or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists; or
1.6.2    which does not have outstanding shares or securities, as may be the case in a partnership, joint venture or unincorporated association, but more than fifty percent (50%) of whose ownership interest representing the right to make the decisions for such corporation, company or other entity is, now or hereafter, owned or controlled, directly or indirectly, by a Party hereto or such third party, but such corporation, company or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists.
1.7     “Effective Date” means the date upon which Overland receives the payment described in Section 4.
1.8    “Execution Date” means the date upon which this Settlement Agreement is signed by all parties.
2.    DISMISSAL
2.1    In consideration of the mutual promises set forth herein, within three (3) business days of the Execution Date of this Settlement Agreement, Overland and IBM shall: 

_________________________
**    Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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(a) with respect to the ITC Action, execute and/or cause their respective counsel to execute papers in the forms set forth in Exhibit A, or in such other form as required for the Commission’s approval, for the purpose of terminating the ITC Action with prejudice as to IBM and Dell Inc. (“Dell”); and 
(b) with respect to the District Court Action, execute and/or cause their respective counsel to execute papers in the forms set forth in Exhibit B, or in such other form as required for the Court’s approval, to Dismiss with Prejudice the District Court Action as to all of their respective claims by and between Overland and IBM and Dell.
For the avoidance of doubt, nothing in this Settlement Agreement creates any obligation on the part of Overland to dismiss or terminate the ITC Action or District Court Action with respect to any party other than IBM and Dell.
2.2    The Parties agree that each Party shall bear its own costs, fees, and expenses relating to the ITC Action and the District Court Action, including attorneys’ fees, expert fees, and court costs, and in the negotiation, preparation, and execution of this Settlement Agreement, the License Agreement (attached hereto as Exhibit C), and the ** (attached hereto as Exhibit D).
3.    LICENSES; COVENANTS; OTHER GRANTS OF RIGHTS
Concurrently with this Settlement Agreement, Overland and IBM have entered into a License Agreement (attached hereto as Exhibit C) and ** (attached hereto as Exhibit D).  
4.    PAYMENT
4.1    Total Consideration.  In consideration of the releases and rights granted in this Settlement Agreement and the License Agreement, IBM shall pay to Overland ** (“Payment”) and enter into the **.
4.2    Payment Instructions.  IBM agrees to make this payment within ** of the latest of (i) the Execution Date of this Settlement Agreement; (ii) the Execution Date of the License Agreement; (iii) the Execution Date of the **; or (iv) delivery of a letter to IBM on Overland letterhead that states: (a) the amount to  be transferred; (b) Overland’s address; (c) Overland’s taxpayer identification number; (d) Overland’s Bank Account Name; (e) Overland’s bank name and address; and (f) Overland’s bank account number, bank routing number and Swift Code number.  IBM's sole obligation with respect to the Payment will be to make the payment contemplated in this paragraph.  
_________________________
**    Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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4.3    Taxes.  IBM shall make the Payment without any deductions for taxes or charges of any kind.  All taxes imposed as a result of the existence of this Settlement Agreement or the performance hereunder shall be paid by the party required to do so by applicable law.
5.    TERMINATION
5.1    This Settlement Agreement may not be terminated by any Party.
6.    ASSIGNMENT
6.1    Assignment.  This Settlement Agreement is personal to each of the parties and their affiliates and successor companies, and it cannot be assigned to any third party in whole or part.
7.    REPRESENTATIONS, WARRANTIES
7.1    Overland represents and warrants that (i) it has the full right and power to enter into this Settlement Agreement; (ii) no other person’s consent or approval is required for the granting of such rights; and (iii) this Settlement Agreement and the grant of rights herein does not conflict with, violate or otherwise constitute a breach of any agreement between it and any person.  
7.2    IBM represents and warrants that IBM has the full right and power to enter into this Settlement Agreement and that this Settlement Agreement does not conflict with, violate, or otherwise constitute a breach of any agreement between IBM and any person.
8.    CONFIDENTIALITY
8.1    Each Party, on behalf of itself and its Subsidiaries, agrees not to disclose any term or condition of this Settlement Agreement to any third party without the prior written consent of the other Party.  This obligation is subject to the following exceptions:
(a)    disclosure is permissible if required by government or court order, provided the Party required to disclose first gives the other prior written notice to enable it to seek a protective order;
(b)    disclosure is permissible if otherwise required by law (including but not limited to legal requirements and regulations of the U.S. Securities and Exchange Commission or rules of the NYSE or NASDAQ) and, in the event of such a disclosure, the disclosing party agrees to provide advance notice to the non-disclosing party and the disclosing party shall seek to maintain confidentiality of the terms and conditions to maximum extent reasonably possible;

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(c)    disclosure is permissible in connection with any subject matter addressed by the other party in any filings made pursuant to the regulations of the U.S. Securities and Exchange Commission and rules of the NYSE or NASDAQ or foreign equivalents of such governmental bodies and, in the event of such a disclosure, the disclosing party agrees to provide advance notice to the non-disclosing party and the disclosing party shall seek to maintain confidentiality of the terms and conditions to maximum extent reasonably possible;
(d)    disclosure is permissible if required to enforce rights under this Settlement Agreement;
(e)    each Party may use similar terms and conditions in other agreements; 
(f)    each Party may disclose only the scope of the rights granted hereunder (but not any financial terms) to the extent reasonably necessary, on a confidential basis, to its customers, potential customers, and other third parties with which it has a current or potential commercial relationship;  and 
(g)    each Party may disclose the terms and conditions of this Settlement Agreement to the extent reasonably necessary, on a confidential basis, to its accountants, attorneys, financial advisors, its present or future providers of venture capital and/or potential investors in or acquirers of such party or product or service lines which qualify for a license under Section 2.8 of the License Agreement (attached hereto as Exhibit C).
8.2    Neither Party shall use or refer to this Settlement Agreement, the License Agreement, or the ** or any of their provisions in any promotional activity, and each Party agrees not to issue any press release or make any other public announcement of any term or condition of this Settlement Agreement, the License Agreement, or the **.  Notwithstanding the foregoing, each Party may publicly disclose the fact that the ITC Action and District Court Action have been resolved by settlement without disclosing any term or condition of this Settlement Agreement, the License Agreement, or the **.
8.3    For the avoidance of doubt, the parties acknowledge and agree that Section 8.1 permits IBM to disclose so much of the terms of this Settlement Agreement as is necessary to demonstrate to a customer that IBM and the customer are covered or protected by the terms of this Settlement Agreement.
_________________________
**    Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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9.    MISCELLANEOUS
9.1    Entire Agreement.  This Settlement Agreement, the License Agreement (attached hereto as Exhibit C), and the ** (attached hereto as Exhibit D) constitute the entire agreement between the parties relating to the subject matter hereof, and supersedes all prior proposals, agreements, representations, and other communications, if any, between the parties with respect to the subject matter hereof.
9.2    If any section of this Settlement Agreement is found by competent authority to be invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of such section in every other respect and the remainder of this Settlement Agreement shall continue in effect so long as the Settlement Agreement still expresses the intent of the Parties.  However, if the intent of the Parties cannot be preserved, this Settlement Agreement shall be either renegotiated or terminated.
9.3    Modification; Waiver.  This Settlement Agreement shall not be binding upon the Parties until it has been signed herein below by or on behalf of each Party.  No modification, supplementation, or amendment to this Settlement Agreement will be effective unless it is in writing and executed by authorized representatives of the parties, except that either Party may amend its address in Section 9.5 by written notice to the other Party.  Nor will any waiver of any rights be effective unless assented to in writing by the party to be charged.  The failure or delay of either party in exercising any of its rights hereunder, including any rights with respect to a breach or default by the other party, will in no way operate as a waiver of such rights or prevent the assertion of such rights with respect to any later breach or default by the other party.
9.4    Headings.  The headings used in this Settlement Agreement are for reference and convenience only and will not be used in interpreting the provisions of this Settlement Agreement.
9.5    Notices.  Notices and other communications shall be sent by facsimile, reputable overnight courier, email, or by registered or certified mail to the following addresses and shall be effective upon sending: 

_________________________
**    Indicates that certain information contained herein has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

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To Overland and its Subsidiaries and Affiliates:
Kurt Kalbfleisch
Vice President and CFO
Overland Storage Inc.
9112 Spectrum Center Boulevard
San Diego, CA 92123
Facsimile: (858) 495-4267

With a copy to:
Sean Cunningham
DLA Piper LLP (US)
401 B Street, Suite 1700
San Diego, CA 92101
Facsimile: (619) 699-2701

To IBM and its Subsidiaries and Affiliates:
Director of Licensing
IBM Corporation
North Castle Drive, MD-NC119
Armonk, NY 10504-1785
Facsimile: (914) 765-4380

9.6    Governing Law.  The parties agree that this Agreement will be governed by and construed in accordance with the laws of the State of New York and of the United States of America without regard to choice of law provisions or rules.  The parties further agree that this Settlement Agreement was mutually drafted by all parties and that any interpretation of this Settlement Agreement or any terms thereof will not be interpreted against one party as the drafting party.
9.7    Counterparts.  This Settlement Agreement may be executed in counterparts by the parties hereto on any number of counterparts, each of which will be deemed an original, but all such respective counterparts will together constitute one and the same agreement.  The parties agree that electronically transmitted signature pages will be treated as if they were originals.
9.8    Additional Provisions.  Each party hereby declares and represents that it is executing this Agreement after consultation with its own independent legal counsel.

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9.8.1    Any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the construction or interpretation of this Settlement Agreement.  As used in this Settlement Agreement, the words “include” and “including,” “for example,” “such as,” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by the words “without limitation.”  
9.8.2    Each party acknowledges to the other party that it has been represented by independent legal counsel of its own choice throughout all of the negotiations which preceded the execution of this Settlement Agreement.  Each party further acknowledges that it and its counsel have had adequate opportunity to make whatever investigation or inquiry they may deem necessary or desirable in connection with the subject matter of this Settlement Agreement prior to the execution hereof and that in entering into this Settlement Agreement it is not relying on any representations of the other party in connection therewith.

[Balance of page intentionally left blank.]

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In Witness Whereof, the parties hereto have caused this Settlement Agreement to be executed by their duly authorized representatives as undersigned:

	
		
	Overland Storage, Inc.,  
on its own behalf and on behalf of each of its Subsidiaries and Affiliates
	International Business Machines Corporation,  
on their own behalf and on behalf of each of their Subsidiaries and Affiliates

	 
	 

	 
	 

	 
	 

	By: /s/                                                        
	By: /s/                                                        

	Printed Name:                                           
	Printed Name:                                           

	Title:                                                          
	Title:                                                          

	Date: November 16, 2011                         
	Date: November 16, 2011                         

9Exhibit 10.1

Form of 2012 Stock
Appreciation Right Agreement

GARTNER,
INC.

2003 LONG-TERM INCENTIVE PLAN

STOCK APPRECIATION RIGHT AGREEMENT

Grant #
SS______

NOTICE OF
GRANT

          Gartner,
Inc. (the “Company”) hereby grants you, [NAME] (the “Grantee”), a stock
appreciation right (the “SAR”) under the Company’s 2003 Long-Term Incentive
Plan (the “Plan”), to exercise in exchange for a payment from the Company
pursuant to this SAR. The date of this Agreement is February 9, 2012 (the
“Grant Date”). In general, the latest date this SAR will expire is February 9,
2019 (the “Expiration Date”). However, as provided in Appendix A (attached
hereto), this SAR may expire earlier than the Expiration Date. Subject to the
provisions of Appendix A and of the Plan, the principal features of this
SAR are as follows:

Number of Shares to which this SAR pertains:

Exercise
Price per Share: $37.81

Vesting Schedule:

Twenty-five percent (25%) of
the Shares to which this SAR pertains shall vest on each of the first four
anniversaries of the date hereof, subject to Grantee’s Continued Service
through each such date.

          Your signature below indicates your agreement
and understanding that this SAR is subject to all of the terms and conditions
contained in the Plan and this SAR Agreement (the “Agreement”), which includes
this Notice of Grant and Appendix A. For example, important additional
information on vesting and termination of this SAR is contained in Paragraphs 3
through 5 of Appendix A. ACCORDINGLY, PLEASE BE SURE TO READ ALL OF
APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS SAR.

	
  

 	
  

 	
  

 	
  

 
	
 GARTNER, INC.

 	
  

 	
 GRANTEE

 
	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
  

 
	
  

 	

 

 	
  

 	

 

 

APPENDIX A

TERMS AND
CONDITIONS OF STOCK APPRECIATION RIGHTS

1. Grant of SAR. The
Company hereby grants to the Grantee under the Plan, as a separate incentive in
connection with his or her employment and not in lieu of any salary or other
compensation for his or her services, a SAR pertaining to all or any part of an
aggregate of Shares shown on the attached Notice of Grant, which SAR entitles
the Grantee to exercise the SAR in exchange for Shares in the amount determined
under Paragraph 9 below.

2. Exercise Price. The
purchase price per Share for this SAR (the “Exercise Price”) shall be $37.81,
which is the Fair Market Value of a Share on the Grant Date. When the SAR is
exercised, the purchase price will be deemed paid by the Grantee for the
exercised portion of the SAR through the past services rendered by the Grantee,
and will be subject to the appropriate tax withholdings.

3. Vesting Schedule.
Except as otherwise provided in this Agreement, the right to exercise this SAR
will vest in accordance with the vesting schedule set forth in the Notice of
Grant which constitutes part of this Agreement. Shares scheduled to vest on any
date will vest only if the Grantee remains in Continued Service on such date.
Should the Grantee’s Continued Service end at any time (the “Termination
Date”), any unvested portion of this SAR will be immediately cancelled; provided,
however, that if termination of Continued Service results from the
Grantee’s death, Disability or Retirement, then any unvested portion of this
SAR that would have vested by its terms within twelve (12) months from the
Termination Date will be deemed vested on the Termination Date. The Committee,
in its discretion, may accelerate the vesting of the balance, or some lesser
portion of the balance, of the SARs at any time, subject to the terms of the
Plan. If so accelerated, such SARs will be considered as having vested as of
the date specified by the Committee. 

4. Termination of SAR.
In the event of the Grantee’s termination of Continued Service for any reason
other than Retirement, Disability or death, the Grantee may, within ninety (90)
days after the date of such termination of Continued Service (excluding any
period during which Grantee is prohibited from trading under the Company’s
Insider Trading Policy), or prior to the Expiration Date, whichever shall first
occur, exercise any vested but unexercised portion of this SAR. In the event of
the Grantee’s termination of Continued Service due to Retirement, Disability or
death, the Grantee may, within twelve (12) months after the date of such
termination, or prior to the Expiration Date, whichever shall first occur,
exercise any vested but unexercised portion of this SAR. 

5. Death of Grantee.
In the event that the Grantee dies while in the employ of the Company and/or a
Parent or Subsidiary, the administrator or executor of the Grantee’s estate (or
such other person to whom the SAR is transferred pursuant to the Grantee’s will
or in accordance with the laws of descent and distribution), may exercise any
vested but unexercised portion of the SAR in accordance with Paragraph 4 above.
Any such transferee must furnish the Company (a) written notice of his or
her status as a transferee, (b) evidence satisfactory to the Company to
establish the validity of the transfer of this SAR and compliance with any laws
or regulations pertaining to such transfer, and (c) written acceptance of
the terms and conditions of this SAR as set forth in this Agreement.

6. Persons Eligible to
Exercise SAR. Except as provided in Paragraph 5 above or as otherwise
determined by the Committee in its discretion, this SAR shall be exercisable
during the Grantee’s lifetime only by the Grantee.

7. SAR is Not Transferable.
Except as otherwise expressly provided herein, this SAR and the rights and
privileges conferred hereby may not be transferred, pledged, assigned or
otherwise hypothecated in any way (whether by operation of law or otherwise)
and shall not be subject to sale under execution, attachment or similar
process. Upon any attempt to transfer, pledge, assign, hypothecate or otherwise
dispose of this SAR, or of any right or privilege conferred hereby, or upon any
attempted sale under any execution, attachment or similar process, this SAR and
the rights and privileges conferred hereby immediately shall become null and
void.

8. Exercise of SAR.
This SAR may be exercised by the person then entitled to do so as to any
Shares, and such exercise must be in accordance with the Company’s published
exercise procedures, as in effect from time to time, which may require the
Grantee to exercise this SAR through the Company’s designated broker or
administrator. All exercises must be accompanied by payment of the
aggregate exercise price together with all taxes the Company determines are
required to be withheld by reason of the exercise of this SAR or as are
otherwise required under Paragraph 10 below. Exercise forms are available from
the Stock Plan Administration. Payment of the aggregate exercise price must be
(i) in cash (including check, bank draft or money order), or (ii) for “cashless
exercises” during the open trading window, by delivery of such documentation as
the Committee and any broker of deposit, if applicable, shall require to effect
an exercise of the SAR and delivery to the Company of the sale or loan proceeds
required to pay the exercise price, in each case plus any applicable
withholding taxes.

9. Payment of SAR Amount.
Upon exercise of this SAR, the Grantee shall be entitled to receive the number
of Shares (the “SAR Amount”), less applicable withholdings, determined by (i)
multiplying (a) the difference between the Fair Market Value of a Share on the
date of exercise over the Exercise Price; times (b) the number of Shares with
respect to which this SAR is exercised, and (ii) dividing the product of (a)
and (b) by the Fair Market Value of a Share on the date of exercise. The SAR
Amount shall be paid solely in whole Shares; any fractional amount shall be
rounded down to the nearest whole share. Shares issued pursuant to the
exercise of this SAR may be delivered in book form or listed in street name
with a brokerage company of the Company’s choice.

10. Tax Withholding and
Payment Obligations. When the Shares are issued as payment for exercised
SARs, the Grantee will recognize immediate U.S. taxable income if the Grantee
is a U.S. taxpayer. If the Grantee is a non-U.S. taxpayer, the Grantee will be
subject to applicable taxes in his or her jurisdiction. The Company (or the
employing Parent or Subsidiary) will withhold a portion of the Shares otherwise
issuable in payment for exercised SARs 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 Company (or the
employing Parent or Subsidiary) with respect to the Shares. No fractional
Shares will be withheld or issued pursuant to the exercise of SARs and the
issuance of Shares thereunder. The Company (or the employing Parent or
Subsidiary) may instead, in its discretion, withhold an amount necessary to pay
the applicable taxes from the Grantee’s paycheck, with no withholding of
Shares. In the event the withholding requirements are not satisfied through the
withholding of Shares (or, through the Grantee’s paycheck, as indicated above),
no payment will be made to the Grantee (or his or her estate) for SARs unless
and until satisfactory arrangements (as determined by the Committee) have been
made by the Grantee with respect to the payment of any

income and other taxes which
the Company determines must be withheld or collected with respect to such SARs.
By accepting this award of SARs, the Grantee expressly consents to the withholding
of Shares and to any cash or Share withholding as provided for in this
paragraph 10. All income and other taxes related to the SAR award and any
Shares delivered in payment thereof are the sole responsibility of the Grantee.

11. Suspension of Exercisability.
If at any time the Company shall determine, in its discretion, that the
listing, registration or qualification of the SARs 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 of
the exercise of SARs hereunder, this SAR may not be exercised, in whole or in
part, unless and until such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Company. The Company shall make 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.

12. No Rights of
Stockholder. Neither the Grantee (nor any transferee) shall be or have any
of the rights or privileges of a stockholder of the Company in respect of any
of the Shares covered by this SAR.

13. No Effect on
Employment. The Grantee’s employment with the Company and any Parent or
Subsidiary is on an at-will basis only, subject to the provisions of applicable
law. Accordingly, subject to any written, express employment contract with the
Grantee, nothing in this Agreement or the Plan shall confer upon the Grantee
any right to continue to be employed by the Company or any Parent or Subsidiary
or shall interfere with or restrict in any way the rights of the Company or the
employing Parent or Subsidiary, which are hereby expressly reserved, to terminate
the employment of the Grantee at any time for any reason whatsoever, with or
without good cause. Such reservation of rights can be modified only in an
express written contract executed by a duly authorized officer of the Company
or the Parent or Subsidiary employing the Grantee. 

14. Address for Notices.
Any notice to be given to the Company under the terms of this Agreement shall
be addressed to the Company, in care of its Secretary at the Company’s headquarters, P.O. Box 10212, 56 Top Gallant Road, Stamford,
CT 06902-7700, or at such other address as the Company may hereafter
designate in writing. 

15. Maximum Term of SAR.
Notwithstanding any other provision of this Agreement, this SAR is not
exercisable after the Expiration Date.

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

17. Governing Law.
This Agreement shall be construed in accordance with and governed by the laws
of the State of Connecticut, other than its conflicts of laws provisions.

18. Plan Governs. This
Agreement is subject to all of the terms and provisions of the Plan. In the
event of a conflict between one or more provisions of this Agreement and one or
more provisions of the Plan, the provisions of the Plan shall govern.
Capitalized terms and phrases used and not defined in this Agreement shall have
the meaning set forth in the Plan. 

19. Committee Authority.
The Committee shall have all discretion, power, and authority 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
(including, but not limited to, the determination of whether or not any SARs
have vested). All actions taken and all interpretations and determinations made
by the Committee in good faith shall be final and binding upon the Grantee, the
Company and all other interested persons, and shall be given the maximum
deference permitted by law. No member of the Committee shall be personally
liable for any action, determination or interpretation made in good faith with
respect to the Plan or this Agreement.

20. Captions. The captions
provided herein are for convenience only and are not to serve as a basis for
the interpretation or construction of this Agreement.

21. Agreement Severable.
In the event that any provision in this Agreement shall be held invalid or
unenforceable, such provision shall be severable from, and such invalidity or
unenforceability shall not be construed to have any effect on, the remaining
provisions of this Agreement.

22. Modifications to the
Agreement. This Agreement constitutes the entire understanding of the
parties on the subjects covered. The Grantee expressly warrants that he or she
is not executing this Agreement in reliance on any promises, representations,
or inducements other than those contained herein. Except as otherwise provided
herein, modifications to this Agreement or the Plan can be made only in an
express written contract executed by a duly authorized officer of the Company.
Notwithstanding anything to the contrary in the Plan or this Agreement, the
Company reserves the right to revise this Agreement as it deems necessary or
advisable, in its sole discretion and without the consent of the Grantee, to
avoid imposition of any additional tax or income recognition under Section 409A
of the Internal Revenue Code of 1986, as amended, prior to the actual payment
of Shares pursuant to this SAR.

23. Amendment, Suspension,
Termination. By accepting this SAR, the Grantee expressly warrants that he
or she has received an SAR to purchase stock under the Plan, and has received,
read and understood a description of the Plan. The Grantee understands that the
Plan is discretionary in nature and may be modified, suspended or terminated by
the Company at any time.

                    24. Defined
Terms: Capitalized terms used in this Agreement without definition will have
the meanings provided for in the Plan. When used in this Agreement, the
following capitalized terms will have the following meanings:

	
  

 	
  

 
	
  

 	
 “Continued Service”
 means that your employment relationship is not interrupted or terminated by
 you, the Company, or any Parent or Subsidiary of the Company. Your employment
 relationship will not be considered interrupted in the case of: (i) any leave
 of absence approved in accordance with the Company’s written personnel
 policies, including sick leave, family leave, military leave, or any other
 personal leave; or (ii) transfers between locations of the Company or between
 the Company and any Parent, Subsidiary or successor; provided,
 however, that, unless otherwise provided in the Company’s written personnel
 policies, in this Agreement or under applicable laws, rules or regulations,
 or unless the Committee has otherwise expressly provided for different
 treatment with respect to this Agreement, (x) no such leave may exceed ninety
 (90) days, and (y) any vesting shall cease on the ninety-first (91st)
 

 

	
  

 	
  

 
	
  

 	
 consecutive date of any
 leave of absence during which your employment relationship is deemed to
 continue and will not recommence until such date, if any, upon which you
 resume service with the Company, its Parent, Subsidiary or successor. If you
 resume such service in accordance with the terms of the Company’s military
 leave policy, upon resumption of service you will be given vesting credit for
 the full duration of your leave of absence. Continuous employment will be deemed
 interrupted and terminated for an Employee if the Grantee’s weekly work hours
 change from full time to part time. Part-time status for the purpose of
 vesting continuation will be determined in accordance with policies adopted
 by the Company from time to time, which policies, if any, shall supersede the
 determination of part-time status set forth in the Company’s posted “employee
 status definitions”.

 
	
  

 	
  

 
	
  

 	
 “Disability” means
 total and permanent disability as defined in Section 22(e)(3) of the
 Code.

 
	
  

 	
  

 
	
  

 	
 “Retirement” means
 termination of your employment in accordance with the Company’s retirement
 policies, as in effect from time to time, if on the date of such termination
 (i) you are at least 55 years old and your Continued Service has extended for
 at least five years, and (ii) the number of full years in your age and your
 number of full years of Continued Service total at least 65. By way of
 illustration, if you terminate your employment in accordance with the
 Company’s retirement policies on your 63rd birthday after six years of
 Continued Service, your total would be 69 and your termination would be
 treated as a Retirement; if your Continued Service had extended for only four
 years, your total would be 67 but your termination would not be treated as a
 Retirement since you would not have met the minimum of five years of
 Continued Service.

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