Document:

1999 Executive Equity Loan Plan

 EXHIBIT 10.10 
  
 HEALTHSOUTH Corporation 
  
 1999 EXECUTIVE EQUITY LOAN PLAN 
  
 I. Purpose of the Plan. The purpose of the 1999 Executive Equity Loan Plan (the “Plan”) of HEALTHSOUTH Corporation, a Delaware
corporation (the “Corporation”), is to provide incentive for future endeavor and to align the interests of the Corporation’s management and its stockholders by providing a mechanism to enhance ownership of the Common Stock, par value
$.01 per share (the “Common Stock”), of the Corporation by its executives and other key employees, upon whose judgment, interest and continuing special efforts the Corporation is largely dependent for the successful conduct of its
operations, and to enable the Corporation to compete effectively with other enterprises for the services of such new executives and employees as may be needed for the continued improvement of the Corporation’s business, through the making of
loans (“Loans”) to such executives and employees to purchase shares of the Common Stock. 
  
 II. Participants. Loans may be made under the Plan to such executives and key employees (“Participants”) of the Corporation and its
subsidiaries as shall be determined by the Committee (as set forth in Section 5 of the Plan). 
  
 III. Term of the Plan. The Plan shall become effective as of May 20, 1999, subject to the approval by the holders of a majority of the shares of issued and outstanding Common Stock of the Corporation present in
person or by proxy and voting at the 1998 Annual Meeting of Stockholders of the Corporation. The Plan shall terminate on the earlier of (a) May 19, 2009 or (b) such earlier time as the Board of Directors of the Corporation may determine. Any Loan
outstanding under the Plan at the time of its termination shall remain in effect in accordance with its terms and conditions and those of the Plan. No Loan shall be made under the Plan after May 19, 2009. 
  
 IV. Loans Under the Plan. Loans may be made under the Plan in such
amounts are as approved by the Committee, provided that the maximum aggregate principal amount of Loans outstanding under the Plan at any time shall not exceed $50,000,000. If, on or prior to the termination of the Plan as provided in Section 3, the
principal amount of any Loan under the Plan shall have been repaid in whole or in part, the principal amount so repaid shall again become available for the making of Loans under the Plan, subject to the foregoing limitation on the maximum aggregate
principal amount outstanding at any time. 
  
 V. Administration
of the Plan. The Plan shall be administered by the Audit and Compensation Committee of the Board of Directors of the Corporation (the “Committee”). The acts of a majority of the Committee, at any meeting thereof at which a quorum is
present, or acts reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee. The Committee shall determine the executives and key employees of the Corporation and its subsidiaries who
shall receive Loans and the principal amount of each such Loan. 
  
 The interpretation and construction of any provision of the Plan or of any Loan made under it by the Committee shall be final, conclusive and binding upon all parties, including the Corporation, its stockholders and Directors, and the
executives and employees of the Corporation and its subsidiaries. No member of the Board of Directors or the Committee shall be liable to the Corporation, any stockholder or any employee of the Corporation or its subsidiaries for any action or
determination made in good faith with respect to the Plan or any Loan made under it. 
  

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 The Committee may delegate responsibility for all or part of the administration of the Plan to
appropriate officers of the Corporation; provided, however, that no such officers shall have the power or authority to make Loans under the Plan, amend, waive or modify any provision of the Plan or forgive any Loans, in whole or in part, without the
express approval of the Committee in each case. 
  
 The expenses
of administering the Plan shall be borne by the Corporation. 
  
 A. Loans. Loans may be made under the Plan by the Committee in accordance with the provisions of Section 5 at any time prior to the termination of the Plan. In making any determination as to executives and key employees to whom Loans
shall be made and as to the principal amount of such Loans, the Committee shall take into account the duties of the respective executives and key employees, their present and potential contribution to the success of the Corporation, and such other
factors as the Committee shall deem relevant in connection with the accomplishment of the purposes of the Plan. 
  
 B. Each Loan made under the Plan shall be granted pursuant to and subject to the terms and conditions of a loan agreement to be entered into between the
Corporation and the Participant at the time of such grant. Each such loan agreement shall be in a form from time-to-time adopted for use under the Plan by the Committee (such form being hereinafter called a “Loan Agreement”). Any such Loan
Agreement shall incorporate by reference all of the terms and provisions of the Plan as in effect at the time of grant and may contain such other terms and provisions as shall be approved and adopted by the Committee. 
  
 VI. Certain Conditions of Loans. Loans made under this Plan shall be
subject to the following terms and conditions: 
  
 (a) The
proceeds of Loans may be used only for purchases of the Common Stock in open-market transactions, block trades or negotiated transactions. Such purchases must be effected through a broker approved by the Corporation. 
  
 (b) Loans shall have a maturity date of seven years from the date of the
Loan, subject to acceleration and termination as provided herein. Such maturity date may be extended for up to one additional year by the Committee, acting in its discretion. The unpaid principal balance of each Loan shall bear interest at a rate
equal to the effective interest rate on the average outstanding balance under the Corporation’s principal credit agreement for each calendar quarter, adjustable as of the end of each calendar quarter, which effective interest rate shall be
determined by the Controller of the Corporation. Interest shall be compounded annually. Subject to the terms and conditions set forth below, repayment of principal and interest may be deferred until final maturity of the Loan. 
  
 (c) Each Loan shall be secured by a pledge of all of the shares of Common
Stock purchased with the proceeds thereof (“Loan Shares”), pursuant to which the Participant shall grant the Corporation a first priority lien on and security interest in the Loan Shares. The Loan Shares may not be sold for one year after
the date on which they were acquired (the “Acquisition Date”). Thereafter, one-third of the aggregate number of Loan Shares may be sold during each of the second, third and fourth years after the Acquisition Date, with any unsold portion
carrying forward from year to year. The proceeds from any such sale must be used to repay a percentage of the principal amount of the Loan equal to the percentage of Loan Shares sold, less any amounts withheld for taxes (the “Mandatory
Prepayment Amount”). Any proceeds in excess of the Mandatory Prepayment Amount shall be retained by the Participant. 
  

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 (d) Notwithstanding any contrary provision in the Plan or any Loan Agreement, a Loan shall immediately
mature, and all principal and accrued but unpaid interest thereon shall be due and payable, within 30 days after the effective date of any termination of the Participant’s employment by the Corporation, whether voluntary or involuntary, or upon
the death or disability of the Participant. Without limiting the generality of the foregoing, the Corporation may, but shall not be required to, repurchase the Loan Shares of a Participant at such Participant’s original acquisition cost if the
Participant’s employment is terminated, voluntarily or involuntarily or by reason of death or disability, within the first three years after the Acquisition Date, according to the following schedule: 
  

			
	 Year Beginning On

	  	Percentage of Loan Shares
Subject to Repurchase

	 Acquisition Date
	  	100%
	 First Anniversary of the Acquisition Date
	  	66b%
	 Second Anniversary of the Acquisition Date
	  	33a%

  
 The terms of such
repurchase shall be as set forth in the Loan Agreement. In the event of any such repurchase, the purchase price of the shares so repurchased shall be credited against the outstanding principal balance and accrued but unpaid interest on the Loan, and
the Participant shall be responsible for the payment of any deficiency. 
  
 (e) Each certificate evidencing Loan Shares shall be registered in the name of the Participant, and shall bear a legend in substantially the following form: 
  
 “The transferability of this certificate and the shares of stock represented hereby are subject to the terms and
conditions of the 1999 Executive Equity Loan Plan of HEALTHSOUTH Corporation and a Loan Agreement entered into between the registered owner and HEALTHSOUTH Corporation. Copies of such Plan and Loan Agreement are on file in the offices of the
Secretary of HEALTHSOUTH Corporation.” 
  
 (f) The Committee
may adopt rules which provide that the stock certificates evidencing Loan Shares may be held in custody by a bank or other institution, or that the Corporation may itself hold such shares in custody until the restrictions thereon shall have lapsed,
and may require as a condition of any Loan that the participant shall have delivered a stock power endorsed in blank relating to the Loan Shares. 
  
 (g) Loans shall be made with full recourse, and each Participant shall be required to repay all principal and accrued but unpaid interest upon the
maturity of the Loan (or its earlier acceleration or termination), irrespective of whether the Participant has sold Loan Shares or whether the proceeds of any such sale were sufficient to repay all principal and interest with respect to the Loan.
If, at any time, the Committee determines in its reasonable discretion that the value of the Loan Shares pledged as security for the Loan is less than the indebtedness evidenced by the Loan, the Committee shall require the Participant to post
additional security (which may be shares of Common Stock or other collateral acceptable to the Committee, in its reasonable discretion) in an amount sufficient to fully secure the indebtedness of the Loan. 
  

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 VII. Certain Rights of Participants. Notwithstanding any contrary provision of the Plan or any
Loan Agreement, a participant holding Loan Shares shall be entitled to the following rights: 
  
 A. A participant shall have with respect to Loan Shares all of the rights of a stockholder of the Corporation, including the right to vote such shares and receive dividends and other distributions thereon. 

 
 B. Unless otherwise expressly provided in the Loan Agreement, any
restrictions on a participant’s ability to sell any of the Loan Shares pursuant to Section 7(c) shall terminate upon the occurrence of a Change in Control of the Corporation. For purposes of this Section 8(b), “Change in Control”
shall mean 
  
 1. the acquisition (other than from the
Corporation) by any person, entity or “group” (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, but excluding, for this purpose, the Corporation or its subsidiaries, or any employee benefit plan
of the Corporation or its subsidiaries which acquires beneficial ownership of voting securities of the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934) of 25% or more of
either the then-outstanding shares of Common Stock or the combined voting power of the Corporation’s then-outstanding voting securities entitled to vote generally in the election of Directors; or 
  
 2. individuals who, as of May 20, 1999, constitute the Board of Directors of
the Corporation (as of such date, the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors; provided, however, that any person becoming a Director subsequent to such date whose election, or
nomination for election, was approved by a vote of at least a majority of the Directors then constituting the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual
or threatened election contest relating to the election of Directors of the Corporation) shall be, for purposes of this Section 8(b), considered as though such person were a member of the Incumbent Board; or 
  
 3. approval by the stockholders of the Corporation of a reorganization,
merger, consolidation or share exchange, in each case with respect to which persons who were the stockholders of the Corporation immediately prior to such reorganization, merger, consolidation or share exchange do not, immediately thereafter, own
more than 75% of the combined voting power entitled to vote generally in the election of directors of the reorganized, merged, consolidated or other surviving entity’s then-outstanding voting securities, or a liquidation or dissolution of the
Corporation or the sale of all or substantially all of the assets of the Corporation. 
  
 Notwithstanding the foregoing, however, the pledge of the Loan Shares shall continue in full force and effect until such time as all principal and accrued but unpaid interest under the Loan has been repaid.

  
 VIII. No Right of Continued Employment. Nothing in the
Plan or in the Loan Agreement shall confer upon any participant the right to continue in the employ of the Corporation or any of its subsidiaries or in any other relationship thereto or interfere in any way with the right of the Corporation to
terminate such employment or other relationship at any time. 
  

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 IX. Amendment of the Plan. The Plan may, at any time or from time to time, be terminated, modified
or amended by the stockholders of the Corporation by the affirmative vote of the holders of a majority of the outstanding shares of the Corporation’s Common Stock present in person or by proxy and entitled to vote at a meeting of the
Corporation’s stockholders duly called and held (or, to the extent permitted by law, by written consent of the holders of a majority of the outstanding shares of the Corporation’s Common Stock entitled to vote). The Board of Directors of
the Corporation may, insofar as permitted by law, from time to time suspend or discontinue the Plan or revise or amend it in any respect whatsoever; provided, however, that, without approval of the stockholders of the Corporation, no such revision
or amendment shall increase the maximum aggregate principal amount of Loans made under the Plan. 
  
 X. Changes in Law. Subject to the provisions of Section 10, the Board of Directors shall have the power to amend the Plan and any outstanding Loans
granted thereunder in such respects as the Board of Directors shall, in its sole discretion, deem advisable in order to incorporate in the Plan or any such Award any new provision or change designed to comply with or take advantage of requirements
or provisions of the Internal Revenue Code of 1986, as amended, or any other statute, or Rules or Regulations of the Internal Revenue Service or any other Federal or state governmental agency enacted or promulgated after the adoption of the Plan.

  
 XI. Legal Matters. Every right of action by or on
behalf of the Corporation or by any stockholder against any past, present or future member of the Board of Directors, officer or employee of the Corporation arising out of or in connection with this Plan shall, irrespective of the place where such
action may be brought and irrespective of the place of residence of any such Director, officer or employee, cease and be barred by the expiration of three years from whichever is the later of (a) the date of the act or omission in respect of which
such right of action arises, or (b) the first date upon which there has been made generally available to stockholders an annual report of the Corporation and a proxy statement for the Annual Meeting of Stockholders following the issuance of such
annual report, which annual report and proxy statement alone or together set forth, for the related period, the aggregate number of shares for which Awards were granted; and any and all right of action by any employee or executive of the Corporation
(past, present or future) against the Corporation arising out of or in connection with this Plan shall, irrespective of the place where such action may be brought, cease and be barred by the expiration of three years from the date of the act or
omission in respect of which such right of action arises. 
  
 This
Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of Delaware, applied without giving effect to any conflicts-of-law principles, and construed accordingly. 
  

 - 5 -2002 Non-Executive Stock Option Plan

 EXHIBIT 10.11.1 
  
 HEALTHSOUTH Corporation 
  
 2002 NON-EXECUTIVE STOCK OPTION PLAN 
  
 1. Purpose of the Plan. The purpose of the 2002 Non-Executive Stock Option Plan (hereinafter called the “Plan”) of HEALTHSOUTH
Corporation, a Delaware corporation (hereinafter called the “Corporation”), is to provide incentive for future endeavor and to advance the interests of the Corporation and its stockholders by encouraging ownership of the Common Stock par
value $.01 per share (hereinafter called the “Common Stock”), of the Corporation by its employees other than Directors and executive officers, upon whose judgment, interest and continuing special efforts the Corporation is largely
dependent for the successful conduct of its operations, and to enable the Corporation to compete effectively with other enterprises for the services of such new employees as may be needed for the continued improvement of the Corporation’s
business, through the grant of options to purchase shares of the Common Stock. All options issued under the Plan shall be non-qualified stock options. 
  
 2. Participants. Options may be granted under the Plan to such employees of the Corporation and its subsidiaries as shall be determined by the
Committee appointed by the Board of Directors as set forth in Section 5 of the Plan; provided, however, that no Option may be granted to any person if such grant would cause the Plan to cease to be an “employee benefit plan” as defined in
Rule 405 of Regulation C promulgated under the Securities Act of 1933; and provided further that no Option may be granted to any person who is a Director or executive officer of the Corporation at the time of the grant. 
  
 3. Term of the Plan. The Plan shall become effective as of February 1,
2002. The Plan shall terminate on the earliest of (a) January 31, 2012, (b) such time as all shares of Common Stock reserved for issuance under the Plan have been acquired through the exercise of Options granted under the Plan, or (c) such earlier
time as the Board of Directors of the Corporation may determine. Any Option outstanding under the Plan at the time of its termination shall remain in effect in accordance with its terms and conditions and those of the Plan. No Option shall be
granted under the Plan after January 31, 2012. 
  
 4. Stock
Subject to the Plan. Subject to the provisions of Section 13, the aggregate number of shares of Common Stock for which Options may be granted under the Plan shall not exceed 6,500,000 and the maximum number of shares of Common Stock for which
any individual may be granted Options under the Plan during any calendar year is 1,000,000. If, on or prior to the termination of the Plan as provided in Section 3, an Option granted under the Plan shall have expired or terminated for any reason
without having been exercised in full, the unpurchased shares covered thereby shall again become available for the grant of Options under the Plan. Shares covered by Options surrendered in connection with the exercise of other Options pursuant to
Section 9(e) shall be deemed, for purposes of this Section 4, to have been exercised, and such shares shall not again become available for the grant of Options under the Plan. 
  
 The shares to be delivered upon exercise of Options under the Plan shall be made available, at the discretion of the Board
of Directors, either from authorized but previously unissued shares as 

  

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permitted by the Certificate of Incorporation of the Corporation or, from shares re-acquired by the Corporation, including shares of Common Stock purchased
in the open market, or from shares held in the treasury of the Corporation. 
  
 5. Administration of the Plan. The Plan shall be administered by the Compensation Committee of the Board of Directors of the Corporation (hereinafter called the “Committee). The acts of a majority of the
Committee, at any meeting thereof at which a quorum is present, or acts reduced to or approved in writing by a majority of the members of the Committee, shall be the valid acts of the Committee. The Committee shall determine the employees of the
Corporation and its subsidiaries who shall be granted Options and the number of shares of Common Stock to be subject to each Option. 
  
 The interpretation and construction of any provision of the Plan or of any Option granted under it by the Committee shall be final, conclusive and binding
upon all parties, including the Corporation, its stockholders and Directors, and the executives and employees of the Corporation and its subsidiaries. No ember of the Board of Directors or the Committee shall be liable to the Corporation, any
stockholder, any optionholder or any employee of the Corporation or its subsidiaries for any action or determination made in good faith with respect to the Plan or any Option granted under it. 
  
 The expenses of administering the Plan shall be borne by the Corporation.

  
 6. Grant of Options. (a) Options may be granted under the Plan
by the Committee in accordance with the provisions of Section 5 at any time prior to the termination of the Plan. In making any determination as to employees to whom Options shall be granted and as to the number of shares to be covered by such
Options, the Committee shall take into account the duties of the respective employees, their present and potential contribution to the success of the Corporation, and such other factors as the Committee shall deem relevant in connection with the
accomplishment of the purposes of the Plan. 
  
 (b) Each Option
granted under the Plan shall be granted pursuant to and subject to the terms and conditions of a stock option agreement to be entered into between the Corporation and the optionholder at the time of such grant. Each such stock option agreement shall
be in a form from time-to-time adopted for use under the Plan by the Committee *such form being hereinafter called a “Stock Option Agreement”). Any such Stock Option Agreement shall incorporate by reference all of the terms and provisions
of the Plan as in effect at the time of grant and may contain such other terms and provisions as shall be approved and adopted by the Committee. 
  
 7. Option Price. (a) The purchase price of the shares of Common Stock covered by each Option granted under the Plan shall be at least 100% of the fair
market value (but in no event less than the par value) of such shares at the time the Option is granted, or such higher purchase price as shall be determined by the Committee. 
  
 (b) If the Common Stock is not listed upon a national securities exchange or exchanges, such fair market value shall be as
determined by the Board of Directors of the Corporation (which determination shall be conclusive and binding for all purposes) or, if applicable, shall be deemed to be the last reported sale price for the Common Stock as quoted by brokers and
dealers trading in the Common Stock in the over-the-counter market (or if the Common Stock shall be quoted 

  

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by the National Association of Securities Dealers Automated Quotation system, then such NASDAQ quote) immediately prior to the commencement of the meeting of
the Committee at which the Option is granted. If the Common Stock is listed upon a national securities exchange or exchanges, such fair market value shall b deemed to be the last reported sale price at which the shares of Common Stock were traded on
such securities exchange or exchanges immediately prior to the commencement of the meeting of the Committee at which the Option is granted, or if no sale of the Common Stock was made on any national securities exchange on such date, then the closing
price per share of the Common Stock on such securities exchange or changes on the next preceding day on which there was a sale of the Common Stock. 
  
 (c) The exercise price of any outstanding Options shall not be reduced during the term of such Options except by reason of an adjustment pursuant to
Section 13 hereof, nor shall the Committee or the Board of Directors cancel outstanding Options and reissues new Options at a lower exercise price in substitution for the canceled Options. 
  
 8. Term of Options. The expiration date of an Option granted under the
Plan shall be as determined by the Committee at the time of grant, provided that each such Option shall expire not more than ten years after the date such Option was granted. 
  
 9 Exercise of Options. (a) Each Option shall become exercisable in whole or in part or in installments at such time
or times as the Committee may prescribe at the time the Option is granted and specify in the Stock Option Agreement. No Option shall be exercisable after the expiration of ten years from the date on which it was granted. 
  
 (b) Notwithstanding any contrary provision contained herein, unless otherwise
expressly provided in the Stock Option Agreement, any Option granted hereunder which is, by its terms, exercisable in installments shall become immediately exercisable in full upon the occurrence of a Change in Control of the Corporation. For
purposes of this Section 9(b), “Change in Control” shall mean 
  
 (i) the acquisition (other than from the Company) by any person, entity or “group” (within the meaning of Sections 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, but excluding, for this
purpose, the Corporation or its subsidiaries, or any employee benefit plan of the Company or its subsidiaries which acquires beneficial ownership of voting securities of the Company) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Securities Exchange Act of 1934) of 25% or more of either the then-outstanding shares of Common Stock or the combined voting power of the Company’s then-outstanding voting securities entitled to vote generally in the
election of Directors; or 
  
 (ii) individuals
who, as of February 1, 2002, constitute the Board of Directors of the Corporation (as of such date, the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors: provided, however, that any person
becoming a Director subsequent to such date whose election, or nomination for election, was approved by a vote of at least a majority of the Directors then constituting the Incumbent Board (other than an election or nomination of an 

  

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individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of Directors of the
Corporation) shall be, for purposes of this Section 9(b)(ii), considered as though such person were a member of the Incumbent Board; or 
  
 (iii) approval by the stockholders of the Corporation of a reorganization, merger, consolidation or share exchange, in each case with
respect to which persons who were the stockholders of the Corporation immediately prior to such reorganization, merger, consolidation or share exchange do not, immediately thereafter, own more than 75% of the combined voting power entitled to vote
generally in the election of directors of the reorganized, merged, consolidated or other surviving entity’s then-outstanding voting securities, or a liquidation or dissolution of the Corporation or the sale of all or substantially all of the
assets of the Corporation. 
  
 (c) Options may be exercised by
giving written notice to the Corporation of intention to exercise, specifying the number of shares to be purchased pursuant to such exercise in accordance with the procedures set forth in the Stock Option Agreement. All shares purchased upon
exercise of any Option shall be paid for in full at the time of purchase in accordance with the procedures set forth in the Stock Option Agreement. Except as provided in Sections 9(d) and 9(e) hereof, such payment shall be made in cash or through
delivery of shares of Common Stock or a combination of cash and Common Stock as provided in the Stock Option Agreement. Any shares so delivered shall be valued at their fair market value determined as of the date of exercise of the Option under the
method set forth in Section 7(c) hereof. 
  
 (d) Payment for
shares purchased upon exercise of any such Option may be made by delivery to the Corporation of a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Corporation an amount of sale or loan
proceeds sufficient to pay the exercise price. Additionally, the Corporation will accept, in payment for shares purchased upon exercise of any such Option, proceeds of a margin loan obtained by the exercising optionholder from a broker, provided
that the exercising optionholder has, at the same time as delivery to the Corporation of a properly executed exercise notice, delivered to the Corporation irrevocable instructions to the Corporation to deliver share certificates directly to such
broker upon payment for such shares. 
  
 (e) At the discretion of
the Committee or its designee, payment for shares purchased upon exercise of any Option granted hereunder may be made by surrender of outstanding Options issued under this Plan or any other stock option plan of the Corporation have a Spread (as
defined below) equal to the exercise price of the Options sought to be exercised. For purposes of this Section 9(e), the “Spread” with respect to any unexercised Option shall be equal to (i) the average price per share of Common Stock on
the date of exercise, as determined by the Corporation from any commercially available reporting service reflecting trading of the Common Stock on a national securities exchange, on the National Association of Securities Dealers Automated Quotation
System, or in the over the counter market, as applicable, less (ii) the exercise price of the surrender of the Option. All Options so surrendered will be deemed to have been exercised by the optionholder. Such surrender shall be evidenced in a form
satisfactory to the Secretary of the Corporation. 
  

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 10. Nontransferability of Options. (a) Options granted under the Plan shall be assignable or
transferable only by will or pursuant to the laws of descent and distribution and shall be exercisable during the optionholder’s lifetime only by him, except to the extent set forth in the following paragraphs. 
  
 (b) Upon written notice to the Secretary of the Corporation, an optionholder
may, except as otherwise prohibited by applicable law, transfer options granted under the Plan to one or more members of such optionholder’s immediate family, to a partnership consisting only of members of such optionholder’s immediate
family, or to a trust all of whose beneficiaries are members of the optionholder’s immediate family. For purposes of this section, an optionholder’s “immediate family” shall be deemed to include such optionholder’s spouse,
children and grandchildren only. 
  
 (c) Upon written notice to
the Secretary of the Corporation, an optionholder may transfer options to a charitable, educational or religious entity which has been determined by the United States Internal Revenue Service to be exempt from federal income taxation under the
provisions of Section 501(c) of the Internal Revenue Code of 1986, as amended, or any successor statutory provision. 
  
 11. Stockholder Rights of Optionholder. No holder of any Option shall have any rights to dividends or other rights of a stockholder with respect to
shares subject to an Option prior to the purchase of such shares upon exercise of the Option. 
  
 12. Termination of Option. With respect to any Option which, by its terms, is not exercisable for one year from the date on which it is granted, if an optionholder’s employment by, or other relationship
with, the Corporation or any of its subsidiaries terminates within one year after the date an unexercised Option containing such terms is granted under the Plan for any reason other than death, the Option shall terminate on the date of termination
of such employment or other relationship. With respect to all Options granted under the Plan, if an optionholder’s employment by, or other relationship with, the Corporation is terminated by reason of his death, the Option shall terminate one
year after the date of death, unless the Option otherwise expires. If an optionholder’s employment by, or other relationship with, the Corporation terminates for any reason other than as set forth above in this Section 12, the Option shall
terminate three months after the date of termination of such employment or other relationship unless the Option earlier expires, provided that (a) if the optionholder dies within such three-month period, the Option shall terminate one year after the
date of this death unless the Option earlier expires: (b) the Board of Directors may, at any time prior to any termination of such employment or other relationship under the circumstances covered by this Section 12, determine in its discretion that
the Option shall terminate on the date of termination of such employment or other relationship with the Corporation: and (c) the exercise of any Option after termination of such employment or other relationship with the Corporation shall be subject
to satisfaction of the conditions precedent that the optionholder refrain from engaging, directly or indirectly, in any activity which is competitive with any activity of the Corporation or any subsidiary thereof and from otherwise acting, either
prior to or after termination of such employment or other relationship, in any manner inimical or in any way contrary to the best interests of the Corporation and that the optionholder furnish to the Corporation such information with respect to the
satisfaction of the foregoing condition precedent as the Board of Directors shall reasonably request. For purposes of this Section 12, a “relationship with the Corporation” shall be limited to any relationship that does not 

  

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cause the Plan to cease to be an “employee benefit plan” as defined in Rule 405 of Regulation C under the Securities Act of 1933. The mere
ownership of stock in the Corporation shall not be deemed to be a “relationship with the Corporation.” 
  
 Nothing in the Plan or in the Stock Option Agreement shall confer upon any optionholder the right to continue in the employ of the Corporation or any of
its subsidiaries or in any other relationship thereto or interfere in any way with the right of the Corporation to terminate such employment or other relationship at any time. 
  
 A holder of an Option under the Plan may make written designation of a beneficiary on forms prescribed by and filed with the
Secretary of the Corporation. Such beneficiary, or if no such designation of any beneficiary has been made, the legal representative of such optionholder or such other person entitled thereto as determined by a court of competent jurisdiction, may
exercise, in accordance with and subject to the provisions of this Section 12, any unterminated and unexpired Option granted to such optionholder to the same extent that the optionholder himself could have exercised such Option were he alive or
able; provided, however, that no Option granted under the Plan shall be exercisable for more shares than the optionholder could have purchased thereunder on the date his employment by, or other relationship with, the Corporation and it subsidiaries
was terminated. 
  
 13. Adjustment of and Changes in
Capitalization. In the event that the outstanding shares of Common Stock shall be changed in number or class by reason of split-ups, combinations, mergers, consolidations or recapitalizations, or by reason of stock dividends, the number or class
of shares which thereafter may be purchased through exercise of Options granted under the Plan, both in the aggregate and as to any individual, and the number and class of shares then subject to Options theretofore granted and the price per share
payable upon exercise of such Option shall be adjusted so as to reflect such change, all as determined by the Board of Directors of the Corporation. In the event there shall be any other change in the number or kind of the outstanding shares of
Common Stock, or of any stock or other securities into which such Common Stock shall have been changed, or for which it shall have been exchanged, then if the Board of Directors shall, in its sole discretion, determine that such change equitably
requires an adjustment in any Option theretofore granted or which may be granted under the Plan, such adjustment shall be made in accordance with such determination. 
  
 Notice of any adjustment shall be given by the Corporation to each holder of an Option which shall have been so adjusted and
such adjustment (whether or not such notice is given) shall be effective and binding for all purposes of the Plan. 
  
 Fractional shares resulting from any adjustment in Options pursuant to this Section 13 may be settled in cash or otherwise as the Board of Directors may
determine. 
  
 14. Securities Acts Requirements. No Option
granted pursuant to the Plan shall be exercisable in whole or in part, and the Corporation shall not be obligated to sell any shares of Common Stock subject to any such Option, if such exercise and sale would, in the opinion of counsel for the
Corporation, violate the Securities Act of 1933 or other Federal or state statutes having similar requirements, as they may be in effect at that time. Each Option shall be subject to the further requirement that, at any time that the Board of
Directors or the Committee, as the case may be, shall determine, in their respective discretion, that the listing, registration or qualification of the shares of 

  

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Common Stock subject to such Option under any securities exchange requirements or under any applicable law, or the consent or approval of any governmental
regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Option or the issuance of shares thereunder, such Option may not be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been affected or obtained free of any conditions not acceptable to the Board of Directors or the Committee, as the case may be. 
  
 As a condition to the issuance of any shares upon exercise of an Option under the Plan, the Board of Directors or the
Committee, as the case may be, may require the optionholder to furnish a written representation that he is acquiring the shares for investment and not with a view to distribution of the shares to the public and a written agreement restricting the
transferability of the shares solely to the Corporation, and may affix a restrictive legend or legends on the face of the certificate representing such shares. Such representation, agreement and/or legend shall be required only in cases where in the
opinion of the Board of Directors or the Committee, as the case may be, and counsel for the Corporation, it is necessary to enable the Corporation to comply with the provisions f the Securities Act of 1933 or other Federal or state statutes having
similar requirements, and any stockholder who gives such representation and agreement shall be released from it and the legend removed at such time as the shares to which they applied are registered or qualified pursuant to the Securities Act of
1933 or other Federal or state statutes having similar requirements, or at such other time as, in the opinion of the Board of Directors or the Committee, as the case may be, and counsel for the Corporation, the representation and agreement and
legend cease to be necessary to enable the Corporation to comply with the provisions of the Securities Act of 1933 or other Federal or state statutes having similar requirements. 
  
 15. Amendment of the Plan. The Plan may, at any time or from time to time, be terminated, modified or amended by the
Board of Directors of the Corporation; provided, however, that no such amendment may allow for the grant of Options hereunder to any person who is a Director or executive officer of the Corporation at the time of the grant, unless such amendment and
the Plan shall have been approved by the stockholders of the Corporation. 
  
 16. Changes in Law. Subject to the provisions of Section 15, the Board of Directors shall have the power to amend the Plan and any outstanding Options granted there under in such respects as the Board of
Directors shall, in its sole discretion, deem advisable in order to incorporate in the Plan or any such Option any new provision or change designed to comply with or take advantage of requirements or provisions of the Internal Revenue Code or any
other statute, or Rules or Regulations of the Internal Revenue Service or any other Federal or state governmental agency enacted or promulgated after the adoption of the Plan. 
  
 17. Legal Matters. Every right of action by or on behalf of the Corporation or by an stockholder against any past,
present or future member of the Board of Directors, officer or employee of the Corporation arising out of or in connection with this Plan shall, irrespective of the place where such action may be brought and irrespective of the place of residence of
any such Director, officer or employee, cease and be barred by the expiration of three years from whichever is the later of (a) the date of the act or omission in respect of which such right of action arises, or (b) the first date upon which there
has been made generally available to stockholders an annual report of the Corporation and a proxy statement for the Annual Meeting of Stockholders following the issuance of such annual 

  

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report, which annual report and proxy statement alone or together set forth, for the related period, the aggregate number of shares for which Options were
granted; and any and all right of action by any employee or executive of the Corporation (past, present or future) against the Corporation arising out of or in connection with this Plan shall, irrespective of the place where such action may be
brought, cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of action arises. 
  
 This Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of Delaware, applied without giving effect to any
conflicts-of-law principles, and construed accordingly. 
  

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