Document:

Exhibit 10.1

 

CERTAIN INFORMATION IN THIS EXHIBIT MARKED [****] HAS
BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

This Separation,
Consulting and Release of Claims Agreement (“Agreement”)
is entered into by and between SolarWindow Technologies, Inc., a Nevada corporation (the “Company ”),
on behalf of itself, its parent, subsidiaries, and other corporate affiliates, and each of their respective present and former
employees, officers, directors, owners, shareholders, and agents, individually and in their official capacities (collectively
referred to as the “Company Group”), and John A. Conklin (the “Executive”)
(the Company and the Executive are sometimes collectively referred to as the “Parties” and individually
as a “Party”) effective upon the expiration of the Revocation Period referenced in Section 5.2
below (the “Effective Date”).

 

Whereas,
the Parties have previously entered into an Employment Agreement dated December 27, 2017, (the “Employment Agreement”)
pursuant to which the Executive currently serves as the Company’s Chief Technology Officer (the “CTO”);

 

Whereas,
the Executive has tendered his resignation as CTO of the Company and as an employee of the Company (the “Executive’s
Resignation”) effective as of November 19, 2020 (the “Separation Date”);

 

Whereas,
the Company has accepted the Executive’s Resignation as of the Separation Date;

 

Whereas,
the Executive and the Company desire to specify the terms of the Executive’s resignation and to provide for the termination
of the Employment Agreement;

 

Whereas,
in connection with the Executive’s resignation, the Company desires to retain the Executive to provide certain consulting
services to the Company as of the Separation Date in accordance with the terms and conditions set forth herein.

 

Now,
Therefore, in consideration of the foregoing recitals, the mutual promises contained
herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:

 

1.       Resignation;
Termination of Employment Agreement.

 

1.1        Resignation.
The Executive’s Resignation includes his position as an officer, director and/or employee of any member of the Company
Group. Notwithstanding anything contained herein or in the Employment Agreement, the Executive’s Resignation shall not be
deemed a termination by the Company without “Cause” or by the Executive for “Good Reason”
for purposes of, and each as defined in, the Employment Agreement.

 

1.2Termination
of Employment Agreement. As of the Separation Date, except as otherwise contemplated by Section 14, the
Employment Agreement shall automatically terminate and be of no further force and effect, and neither the Company nor the Executive
shall have any further obligations thereunder;

 

    
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2.
       Consulting Services.

 

2.1       Consulting
Period. Subject to the earlier termination provisions of Section 2.7, the Executive shall be
retained by the Company as a consultant for the period commencing on November 20, 2020 and expiring on March 31, 2021 (the “Consulting
Period”).

 

2.2       Scope
of Consulting Services. During the Consulting Period, the Executive shall consult with the Company and its executive
officers on an as-needed basis regarding the business and operations of the Company and the Company Group, as well as the transition
of duties of the Executive to other employees of the Company (the “Consulting Services”). The
Executive shall report directly to, and shall perform the Consulting Services as directed by, the Chief Executive Officer of the
Company, or such other officer of director of the Company Group as may be determined from time to time by the Company, in its
sole discretion. In connection with providing the Consulting Services, the Executive shall comply in full with all applicable
law, and rules and regulations and with the Company’s Code of Business Conduct & Ethics.

 

2.3       Performance
of Consulting Services. The Consulting Services shall be required at such times and such places as shall not result
in unreasonable inconvenience to the Executive, recognizing the Executive's other business commitments that he may have to accord
priority over the performance of the Consulting Services. In order to minimize interference with the Executive's other commitments,
the Consulting Services, to the extent practicable and not prejudicial to the Company, may be rendered by personal consultation
at his residence or office wherever maintained, or by telephonic or video conferences during normal business hours. It is hereby
understood and agreed that during the Consulting Period, the Executive shall have the right to engage in full-time or part-time
employment with other business enterprises; provided that the Executive does not breach the restrictive covenants set forth in Section
6 hereof. The parties hereto reasonably anticipate that the level of bona fide services that the Executive is to
perform during the Consulting Period will not exceed more than 10 hours per calendar month during the Consulting Period (prorated
for any portion of the Consulting Period which is less than a full calendar month).

 

2.4       Status
as Independent Contractor. The Executive acknowledges and agrees that his status at all times during the Consulting
Period shall be that of an independent contractor, and that he may not, at any time, act as a representative for or on behalf
of the Company Group for any purpose or transaction, and may not bind or otherwise obligate the Company Group in any manner whatsoever
without obtaining the prior written approval of an authorized representative of the Company Group therefor. The Executive hereby
waives any rights to be treated as an employee or deemed employee of the Company Group for any purpose during the Consulting Period,
and that he shall not be entitled to the benefits of being an employee or deemed employee of the Company Group during the Consulting
Period. The Executive hereby acknowledges and agrees that, except as provided in Section 2.5 hereof, he shall
not be eligible for, shall not actively participate in, and shall not otherwise accrue benefits under, any of the Company Group's
benefit plans during the Consulting Period.

 

2.5       Consulting
Fees. In consideration for the Consulting Services, subject to the terms hereof, the Company shall pay the Executive
an aggregate consulting fee of twenty-seven thousand six hundred dollars ($27,600) payable in three monthly installments of nine
thousand two hundred dollars ($9,200) in commencing on January 31, 2021 and monthly, in arrears thereafter (the “Consulting
Fees”). The Parties hereby acknowledge and agree that the Consulting Fees shall not be deemed to be wages, and therefore,
shall not be subject to any withholdings or deductions. The Executive will receive a Form 1099 with regard to the Consulting Fees,
and the Executive shall be solely responsible for, and shall pay, all taxes assessed on such fee under the applicable laws of
any Federal, state, or local jurisdiction.

 

    
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2.6       Expenses. The
Company will be responsible for any reasonable and necessary out-of-pocket expenses incurred by the Executive during the Consulting
Period that are directly related to the provision of Consulting Services by the Executive in accordance with the Company's standard
expense reimbursement policies applicable to independent contractors, provided that (i) the incurrence of such expenses are approved
in advance by the Company, and (ii) appropriate receipts and vouchers for such expenses are submitted to the Company within thirty
(30) days after the expenses are incurred.

 

2.7       Early
Termination. Prior to the expiration of the Consulting Period as provided in Section 2.1, this Agreement
shall terminate by reason of the Executive's death or Disability, or by reason of the Executive's election to terminate the Consulting
Services, or by the Company in the event of the Executive’s material breach of this Agreement. In the event of any such
termination, the Consulting Fees shall cease with the month in which the termination occurs. The date of such termination pursuant
to this Section 2.7 is referred to in this Agreement as the “Early Termination Date.” For purposes of
this Agreement, “Disability” shall be defined as a physical or mental impairment which prevents
the Executive from performing the Consulting Services, as determined by the Company in its sole discretion. All obligations of
the Company with respect to the payment of the Consulting Fees shall be terminated as of the effective date of the earlier termination
of this Agreement. If this Agreement is terminated by the Company as a result of the material breach of this Agreement by the
Executive, or by the Executive, then, in addition to whatever other rights or remedies the Company may have, (i) the Company’s
obligation to make any further payments hereunder shall cease and be terminated as of the Early Termination Date, and (ii) all
vesting of the Executive’s stock options under the 2017 SOA shall cease as of the Early Termination Date.

 

3.       Separation
Consideration.

 

3.1       Consideration.As
consideration for the Executive's execution of, non-revocation of, and compliance with this Agreement, including the Executive's
waiver and release of claims in Section 4, and other post-termination obligations of the Executive
(collectively, the “Executive’s Obligations and Undertakings”) the Company agrees to provide the
following benefits to which the Executive is not otherwise entitled:

 

(a)       a
lump sum payment of twenty-seven thousand four hundred dollars ($27,400) (the “Separation Fee”) payable
on or about December 18, 2020 which payment shall be subject to tax withholding by the Company; and

 

(b)       the
continued vesting of the stock options granted to the Executive in accordance with the terms and conditions of that certain Stock
Option Agreement between the Company and the Executive dated December 27, 2017 (the “2017 SOA”) during
the Consulting Period; and, provided that this Agreement is not earlier terminated by the Company as a result of the material
breach of this Agreement by the Executive, or by the Executive, as provided in Section 2.7, the 2017 SOA shall be
amended to provide for the acceleration of any unvested options under the 2017 SOA as of March 31, 2021 (the “Acceleration
Date”) on the Acceleration Date.

 

3.2       Deferral.
The payment of the Separation Fee may be deferred by the Executive upon written notice to the Company’s Chief Executive
Officer as provided in Section 20.

 

3.4       No
entitlement to Additional Payments. The Executive understands, acknowledges, and agrees that the payments provided for
in this Section 3 exceed what the Executive is otherwise entitled to receive on separation from employment,
and that these benefits are being given as consideration in exchange for executing this Agreement and the general release and
restrictive covenants contained herein. The Executive further acknowledges that the Executive is not entitled to any additional
payment or consideration not specifically referenced in this Agreement.

 

3.5       Receipt
of Payments Due Through November 19, 2020. The Executive acknowledges that he has received all payments due him under
the terms of the Employment Agreement through Separation Date (collectively, the “Accrued Payment Obligations”).

 

    
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4.       Release.

 

4.1       Executive's
General Release and Waiver of Claims.

 

In
exchange for the consideration provided in this Agreement, the Executive and the Executive's heirs, executors, representatives,
administrators, agents, and assigns (collectively, the “Releasors”) irrevocably and unconditionally
fully and forever waive, release, and discharge the Company, including each member of the Company Group, in their corporate
and individual capacities (collectively, the “Released Parties”), from any and all claims, demands,
actions, causes of actions, judgments, rights, fees, damages, debts, obligations, liabilities, and expenses (inclusive of attorneys'
fees) of any kind whatsoever, whether known or unknown (collectively, “Claims”), that Releasors may have or
have ever had against the Released Parties, or any of them, arising out of, or in any way related to the Executive's hire, benefits,
employment, termination, or separation from employment with the Company Group by reason of any actual or alleged act,
omission, transaction, practice, conduct, occurrence, or other matter from the beginning of time up to and including the date
of the Executive's execution of this Agreement,
including, but not limited to:

 

(a)       any
and all claims under Title VII of the
Civil Rights Act of 1964 (Title VII), the Americans with Disabilities Act (ADA), the Family and Medical Leave Act (FMLA)
(regarding existing but not prospective claims), the Fair Labor Standards Act
(FLSA), the Equal Pay Act, the Executive Retirement Income Security Act (ERISA) (regarding unvested benefits), the
Civil Rights Act of 1991, Section 1981 of U.S.C. Title 42, the Fair Credit Reporting Act (FCRA), the Worker Adjustment
and Retraining Notification (WARN) Act, the National Labor Relations Act (NLRA), the Age Discrimination in Employment
Act (ADEA), the Uniform Services Employment and Reemployment Rights Act (USERRA), the Genetic Information Nondiscrimination
Act (GINA), the Immigration Reform and Control Act (IRCA), the New York State Human Rights Law (NYSHRL), the New
York Labor Law (NYLL) (including but not limited to the Retaliatory Action by Company s Law, the New York State Worker
Adjustment and Retraining Notification Act, all provisions prohibiting discrimination and retaliation, and all provisions regulating
wage and hour law), the New York Civil Rights Law, Section 125 of the New York Workers' Compensation Law, Article 23-A of the
New York Correction Law, the New York City Human Rights Law (NYCHRL), and the New York City Earned Sick Leave Law (NYCESLL),
all including any amendments and their respective implementing regulations, and any other federal, state, local, or foreign law
(statutory, regulatory, or otherwise) that may be legally waived and released; however, the identification of specific statutes
is for purposes of example only, and the omission of any specific statute or law shall not limit the scope of this general release in
any manner;

 

(b)      any
and all claims for compensation of any type whatsoever, including but not limited to claims for salary, wages,
bonuses, commissions, incentive compensation, vacation, and severance that may be legally waived and released;

 

(c)      any
and all claims arising under tort, contract, and quasi-contract law, including but not limited to claims of
breach of an express or implied contract, tortious interference with contract or prospective business advantage, breach of the
covenant of good faith and fair dealing, promissory estoppel, detrimental reliance, invasion of privacy, nonphysical injury, personal
injury or sickness or any other harm, wrongful or retaliatory discharge, fraud, defamation, slander, libel, false imprisonment,
and negligent or intentional infliction of emotional distress; and

 

    
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(d)      any
and all claims for monetary or equitable relief, including but not limited to attorneys' fees, back pay, front pay,
reinstatement, experts' fees, medical fees or expenses, costs and disbursements, punitive damages, liquidated damages, and penalties;
and

 

(e)      indemnification
rights the Executive has against the Company Group.

 

However,
this general release and waiver of claims excludes, and the Executive does not waive, release, or discharge:
(A) any right to file an administrative charge or complaint with, or testify, assist, or participate in an investigation,
hearing, or proceeding conducted by, the Equal Employment Opportunity Commission, the New York State Division of Human Rights,
the New York City Commission on Human Rights, or other similar federal, state, or local administrative agencies, although the
Executive waives any right to monetary relief related to any filed charge or administrative complaint; and (B) claims that
cannot be waived by law, such as claims for unemployment benefit rights and workers' compensation; (C) indemnification
rights the Executive has against the Company; (D) any right to file an unfair labor practice charge under the National Labor Relations
Act or Executive's rights under a collective bargaining agreement without processes; and (E) any rights to vested benefits,
such as pension or retirement benefits, the rights to which are governed by the terms of the applicable plan documents and award agreements.

 

4.2       Specific Release of
ADEA Claims.

 

In
further consideration of the payments and benefits provided to the Executive in this Agreement, the Releasors hereby irrevocably
and unconditionally fully and forever waive, release, and discharge the Released Parties from any and all Claims, whether
known or unknown, from the beginning of time through the date of the Executive's execution of this Agreement arising
under the Age Discrimination in Employment Act (ADEA), as amended, and its implementing regulations. By signing this Agreement,
the Executive hereby acknowledges and confirms that:

 

(a)       the
Executive has read this Agreement in its entirety and understands all of its terms;

 

(b)       by
this Agreement, the Executive has been advised in writing to consult with an attorney of the Executive's choosing as the
Executive believed was necessary before signing this Agreement;

 

(c)       the
Executive knowingly, freely, and voluntarily agrees to all of the terms and conditions set out in this Agreement including,
without limitation, the waiver, release, and covenants contained in it;

 

(d)       the
Executive is signing this Agreement, including the waiver and release, in exchange for good and valuable consideration
in addition to anything of value to which the Executive is otherwise entitled;

 

(e)       the
Executive was given at least twenty-one (21) days to consider the terms of this Agreement and consult with an attorney
of the Executive's choice, although the Executive may sign it sooner if desired and changes to this Agreement, whether material
or immaterial, do not restart the running of the 21day period;

 

(f)       the
Executive understands that the Executive has seven (7) days after signing this Agreement to revoke the release in
this Section by delivering notice, as provided in Section 20, of revocation to Jatinder S. Bhogal
at the Company before the end of this seven-day period; and

 

(g)       the
Executive understands that the release contained in this paragraph does not apply to rights and claims that
may arise after the Executive signs this Agreement.

 

    
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4.3       Company
Release of Executive.

 

In
exchange for the Releasors' waiver and release of claims against the Released Parties, and non-revocation
of any portion of that release, the Company expressly waives and releases any and all claims against
the Executive that may be waived and released by law with the exception of claims arising out of or attributable to:
(i) events, acts, or omissions taking place after the Parties' execution of the ; (ii) the Executive's breach of any terms
and conditions of this Agreement or any other agreement between the Executive and Company, including any surviving obligations
of the Executive under the Employment Agreement; and (iii) the Executive's criminal activities, violations of the federal and
state securities and corporate laws applicable to the Company, or intentional misconduct occurring during the Executive's employment
with the Company or during the Consulting Period.

 

5.       Knowing
and Voluntary Acknowledgments; Effective Date.

 

5.1       Acknowledgements.
The Executive specifically agrees and acknowledges that:

 

(a)       the
Executive has read this Agreement in its entirety and understands all of its terms;

 

(b)       by
this Agreement, the Executive has been advised to consult with an attorney before executing this Agreement;

 

(c)       the
Executive knowingly, freely, and voluntarily assents to all of this Agreement's terms and conditions including, without
limitation, the waiver, release, and covenants contained in it;

 

(d)       the
Executive is signing this Agreement, including the waiver and release, in exchange for good and valuable consideration
in addition to anything of value to which the Executive is otherwise entitled;

 

(e)       the
Executive is not waiving or releasing rights or claims that may arise after the Executive signs this Agreement;
and

 

(f)       the
Executive understands that the waiver and release in this Agreement is being requested in connection
with the Executive's termination of employment from the Company.

 

The
Executive further acknowledges that the Executive is waiving and releasing claims under the Age Discrimination in Employment
Act (ADEA), as amended, and was notified that he has twenty-one (21) days from November 17, 2020 (the date that this Agreement
was originally presented to him), to consider the terms of this Agreement and consult with an attorney of the Executive's
choice, although the Executive may sign it sooner if desired; and, changes to this Agreement, whether material or immaterial,
do not restart the 21-day period. Further, the Executive and the Company acknowledges that the Executive shall have an additional
seven (7) days from the date he signs this Agreement (as noted on the signature page to this Agreement) (the “Signing
Date”) to revoke consent to Executive's release of claims under the ADEA by delivering
notice, as provided in Section 20, of revocation to Jatinder S. Bhogal, the Company’s Chief Executive Officer
at the Company, by before the end of the seven-day period (the “Executive’s Revocation Right”).
In the event of a revocation by the Executive, this Agreement shall be null and void in its entirety, and the actions
and transactions contemplated by this Agreement shall not be consummated. 

 

    
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5.2       Effective
Date. Provided that the Executive has not exercised the Executive’s Revocation Right, this Agreement shall
become effective on the eighth (8th) day after the Signing Date (“Effective Date”). No payments, other than
the Accrued Payment Obligations, shall be made by the Company to the Executive prior to the Effective Date. Anything to the contrary
notwithstanding, this Agreement shall only be effective if signed by the Executive and the Company.

 

6.       Post-Termination
Obligations and Restrictive Covenants.

 

6.1
       Acknowledgment.

 

(a)       The
Executive understands and acknowledges that by virtue of the Executive's employment with the Company, and with respect to the
Consulting Services to be provided pursuant to this Agreement, the Executive had, and will continue to have, access to and knowledge
of the Company Group’s Confidential Information (as defined below), was in a position of trust and confidence with the Company
Group, and benefitted from the Company Group's goodwill. The Executive understands and acknowledges that the Company Group invested
significant time and expense in developing the Confidential Information and goodwill. The Executive further understands and acknowledges
that the intellectual, technical and scientific services the Executive provided to the Company as its CTO, and prior thereto,
its Chief Executive Officer, are unique, special, or extraordinary.

 

(b)       The
Executive further understands and acknowledges that the restrictive covenants below are necessary to protect the Company Group's
legitimate business interests in its Confidential Information and goodwill. The Executive further understands and acknowledges
that the Company Group's ability to reserve these for the exclusive knowledge and use of the Company Group is of great competitive
importance and commercial value to the Company Group and that the Company Group would be irreparably harmed if the Executive violates
the restrictive covenants below.

 

6.2
       Confidential Information.

 

(a)       The
Executive understands and acknowledges that during the course of employment with the Company , the Executive has had access to
and learned about confidential, secret, and proprietary documents, materials, and other information, in tangible and intangible
form, of and relating to the Company Group and its businesses and existing and prospective customers, suppliers, investors, and
other associated third parties (“Confidential Information”). The Executive further understands and acknowledges
that this Confidential Information and the Company's ability to reserve it for the exclusive knowledge and use of the Company
Group is of great competitive importance and commercial value to the Company , and that improper use or disclosure of the Confidential
Information by the Executive may cause the Company to incur financial costs, loss of business advantage, liability under confidentiality agreements with
third parties, civil damages, and criminal penalties.

 

(b)       For
purposes of this Agreement, Confidential Information includes, but is not limited to, all information not generally known
to the public, in spoken, printed, written, electronic, recorded, or any other form or medium, relating directly or indirectly
to: business processes, practices, methods, policies, plans, publications, documents, research, operations, services, strategies,
techniques, agreements, contracts, terms of agreements, transactions, potential transactions, negotiations, pending negotiations,
know-how, trade secrets, computer programs, computer software, applications, operating systems, software design, web design, work-in-process,
databases, device configurations and architecture, embedded data, compilations, metadata, algorithms, technologies, manuals, records,
articles, systems, material, sources of material, supplier information, vendor information, financial information, results, accounting
information, accounting records, legal information, marketing information, advertising information, pricing information, credit
information, design information, payroll information, staffing information, personnel information, employee lists, supplier lists,
vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales
information, revenue, costs, formulae, notes, communications, product plans, designs, styles, models, ideas, audiovisual programs,
inventions, unpublished patent applications, original works of authorship, discoveries, experimental processes, experimental results,
specifications, customer information, customer lists, client information, client lists, meeting and conference notes, manufacturing
information, factory lists, distributor lists, and buyer lists, and Trade Secrets (as defined below) of the Company Group or its
businesses or any existing or prospective customer, supplier, investor, or other associated third party, or of any other person
or entity that has entrusted information to the Company in confidence.

 

    
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“Trade
Secret” means all information, without regard to form, including, but not limited to, technical or non-technical data,
a formula, a pattern, a compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial
plans, product plans, distribution lists or a list of actual or potential customers, advertisers or suppliers which is not commonly
known by or available to the public and which information: (A) derives economic value, actual or potential, from not being
generally known to, and not being readily ascertainable by proper means by, other Persons who can obtain economic value from its
disclosure or use; and (B) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
Without limiting the foregoing, Trade Secret means any item of Confidential Information that constitutes a “trade secret(s)”
under the common law or applicable state law.

 

(c)      The
Executive understands that the above list is not exhaustive, and that Confidential Information also includes other information
that is marked or otherwise identified or treated as confidential or proprietary, or that would otherwise appear to a reasonable
person to be confidential or proprietary in the context and circumstances in which the information is known or used.

 

(d)       The
Executive understands and agrees that Confidential Information developed by the Executive in the course of the Executive's employment
by the Company or in providing Consulting Services, is subject to the terms and conditions of this Agreement as if the
Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not
include information that is generally available to and known by the public at the time of disclosure to the Executive, provided
that the disclosure is through no direct or indirect fault of the Executive or person(s) acting on the Executive's behalf.

 

6.3       Disclosure
and Use Restrictions.

 

6.3.1      Executive
Covenants. The Executive agrees and covenants:

 

(a)      to
treat all Confidential Information as strictly confidential;

 

(b)      not
to directly or indirectly disclose, publish, communicate, or make available Confidential Information, or allow it to be disclosed,
published, communicated, or made available, in whole or part, to any entity or person whatsoever (including other employees of
the Company Group not having a need to know and authority to know and use the Confidential Information in connection with the
business of the Company Group and, in any event, not to anyone outside of the direct employ of the Company Group except as required
in the performance of any of the Executive's remaining authorized employment duties to the Company and only after execution of
a confidentiality agreement by the third party with whom Confidential Information will be shared or with the prior written
consent of an authorized officer of the Company acting on behalf of the Company Group in each instance and then, such disclosure
shall be made only within the limits and to the extent of such duties or consent); and

 

(c)      not
to access or use any Confidential Information, and not to copy any documents, records, files, media, or other resources containing
any Confidential Information, or remove any such documents, records, files, media, or other resources from the premises or control
of the Company Group, except as allowed by applicable law, as required in the performance of any of the Executive's remaining
authorized employment duties to the Company, or with the prior written consent of an authorized officer acting on behalf of the
Company Group (and then, such disclosure shall be made only within the limits and to the extent of such law, duties, or consent).

 

    
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(d)      The
Executive understands and acknowledges that the Executive's obligations under this Agreement regarding any particular Confidential
Information begin immediately and shall continue during and after the Executive's engagement by the as a consultant to this Agreement
until the Confidential Information has become public knowledge other than as a result of the Executive's breach of this Agreement or
a breach by those acting in concert with the Executive or on the Executive's behalf.

 

6.3.2       Permitted
Disclosures. Nothing in this Agreement shall be construed to prevent disclosure of Confidential Information
as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an
authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation,
or order. The Executive shall promptly provide written notice of any such order to the Company’s Chief Executive Officer 

 

6.3.3       Communications
with Government Agencies. Nothing in this Agreement prohibits or restricts the Executive (or Executive's attorney)
from filing a charge or complaint with the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority
(FINRA), or any other securities regulatory agency or self-regulatory authority/the Equal Employment Opportunity Commission (EEOC),
the National Labor Relations Board (NLRB), the Occupational Safety and Health Administration (OSHA), or any other federal or state
regulatory authority (“Government Agencies”). The Executive further understands that this Agreement does
not limit the Executive's ability to communicate with any securities regulatory agency, authority or other Government Agencies
or otherwise participate in any investigation or proceeding that may be conducted by any securities regulatory agency, authority
or other Government Agency in connection with reporting a possible securities law violation without notice to the Company. This Agreement does
not limit the Executive's right to receive an award for information provided to any Government Agencies/to the SEC staff or any
other securities regulatory agency or authority.

 

6.3.4
      Notice of Immunity Under the Defend Trade Secrets Act of 2016.

 

Notwithstanding
any other provision of this Agreement:

 

(a)      The
Executive will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade
secret that is made: (1) in confidence to a federal, state, or local government official, either directly or indirectly, or to
an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (2) in a complaint or other
document that is filed under seal in a lawsuit or other proceeding.

 

(b)      If
the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose
the Company's trade secrets to the Executive's attorney and use the trade secret information in the court proceeding if the Executive:
(1) files any document containing the Trade Secret under seal; and (2) does not disclose the Trade Secret, except pursuant to
court order to authorized persons.

 

    
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6.4      Non-Competition.

 

(a)      Because
of the Company Group's legitimate business interest as described in this Agreement and the good and valuable consideration
offered to the Executive,  except as authorized by the Company, Executive agrees and covenants that during the Consulting Period
and for a period of nine (9) months thereafter, whether or not for consideration, the Executive will not (i) in whole or in part,
engage in, provide services to, or otherwise participate in, whether as an employee, employer, owner, operator, manager, advisor,
consultant, agent, partner, director, stockholder, officer, volunteer, intern, or any other similar capacity, with any individual,
or in any entity or busines, including existing competitors of the Company, engaged in a Competing Business; or (ii) except for
investments or ownership in public entities, mutual funds and similar investments, none of which constitute more than 5% of the
ownership (provided such ownership interest is acquired solely for investment purposes) or control of such entities, own, operate,
control, finance, manage, advise, be employed by or engaged by, perform any services for, invest or otherwise become associated
in any capacity with any person engaged in a Competing Business; or (iii) engage in any practice the purpose or effect of which
is to intentionally evade the provisions of this covenant.

 

For
purposes of this Section 6.4, “Competing Business” means any company, partnership, business,
individual, or other entity, which is engaged directly or indirectly in any Company Business as carried on or planned to be carried
on (if such plans were developed during the Consulting Period or during any prior period during which the Executive may have been
employed as an employee of the Company or engaged as a consultant to the Company (collectively, the “Engagement Period”))
by the Company in North America or Asia; and, “Company Business” means the Company’s business activities
and operations conducted or planned, and all products provided, conceived, planned, researched, developed, tested, manufactured,
sold, licensed, leased or otherwise distributed or put into use by the Company, together with all services, by the Company, during
the Engagement Period.

 

(b)
      Without limiting the foregoing, Competitive Business also includes any business or activity
that may require or inevitably require the Executive's disclosure of Trade Secrets, the Company’s proprietary information,
or Confidential Information.

 

6.5
      Non-Solicitation of Executives and Consultants.

 

The
Executive understands and acknowledges that the Company has expended and continues to expend significant time and expense in recruiting
and training its employees and that the loss of employees would cause significant and irreparable harm to the Company. The Executive
agrees and covenants, during the Consulting Period and for a period of nine (9) months thereafter, not to directly or indirectly
solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee or consultant of the
Company.

 

6.6
      Non-Solicitation of Customers and Suppliers.

 

(a)
      The Executive understands and acknowledges that the Company has expended and continues to
expend significant time and expense in developing customer and supplier relationships, customer and supplier information, and
goodwill, and that because of the Executive's experience with and relationship to the Company Group, the Executive has had access
to and learned about much or all of the Company Group's customer and supplier information (“Customer and Supplier Information”).
Customer and Supplier Information includes, but is not limited to, names, phone numbers, addresses, email addresses, order history,
order preferences, chain of command, pricing information, and other information identifying facts and circumstances specific to
the customer or supplier and relevant to the Company’s technologies, products, and marketing.

 

(b)
      The Executive understands and acknowledges that loss of any of these customer or supplier
relationships or goodwill will cause significant and irreparable harm to the Company Group. Accordingly, the Executive agrees
and covenants that during the Consulting Period and for a period of nine (9) months thereafter, not to directly or indirectly
solicit or attempt to solicit, contact (including but not limited to communications using email, regular mail, express mail, telephone,
fax, instant message, social media, or any other oral, written, or electronic transmission), attempt to contact, or meet with
the Company Group's current, former, or prospective customers or suppliers for the purpose of offering or accepting goods or services
similar to or competitive with the Company Business. The Executive may work with a Customer and/or Supplier if the nature of the
work or engagement by the Executive does not compete with Company Business.

 

    
	 	10	 

     

    

 

(c)
      This restriction shall only apply to:

 

(i)
      customers and suppliers or prospective customers and suppliers the Executive contacted in
any way March 31, 2021;

 

(ii)
      customers and suppliers about whom the Executive has Trade Secret or Confidential Information;
or

 

(iii)
      customers and suppliers who became customers and suppliers during the Executive's employment
with the Company Group or engagement by the Company as a consultant pursuant to this Agreement.

 

7.       Cooperation.

 

The
parties agree that certain matters in which the Executive has been involved during the Executive's employment may need the Executive's
cooperation with the Company in the future. Accordingly, for a period of 12 months after the March 31, 2021 to the extent
reasonably requested by the Company the Executive shall cooperate with the Company regarding matters arising out of or related
to the Executive's service to the Company, provided that the Company shall make reasonable efforts to minimize disruption of the
Executive's other activities. At the Company’s expense, the Executive also will cooperate with the Company and its affiliates
in any pending or future litigation or investigations or other disputes concerning third parties in which the Executive, by virtue
of his prior employment with the Company, has relevant knowledge or information. The Company shall reimburse the Executive for
reasonable expenses incurred in connection with this cooperation and, shall compensate the Executive at an hourly rate of one
hundred seventy-five ($175.00) dollars for such time expended by the Executive on such matters. 

 

8.       Non-Disparagement.

 

8.1       The
Executive agrees and covenants that the Executive shall not at any time make, publish, or communicate to any person or entity
or in any public forum any defamatory, or maliciously false, or disparaging remarks, comments, or statements concerning the Company
Group or its businesses, or any of its employees, officers, or directors and other associated third parties, now or in the future.

 

8.2
      This Section does not in any way restrict or impede the Executive from exercising protected
rights, to the extent that such rights cannot be waived by agreement or
from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government
agency, provided that such compliance does not exceed that required by the law, regulation, or order. The Executive shall promptly
provide written notice, as provided in Section 20, of any such order to the Company’s Chief Executive Officer.

 

9.       Confidentiality
of Agreement. 

 

9.1
      Non-Disclosure.       The Executive agrees and
covenants that the Executive shall not disclose any of the negotiations of, terms of, or amount paid under this Agreement to
any individual or entity; provided, however, that the Executive will not be prohibited from making disclosures to the Executive's
spouse or domestic partner, attorney, tax advisors, or as may be required by law.

 

    
	 	11	 

     

    

 

9.2
       Permitted Disclosure. This Section 9 does not in any way
restrict or impede the Executive from disclosing the underlying facts or circumstances giving rise to the Executive's claim of
discrimination, or/initiating, testifying, assisting, complying with a subpoena from, or participating in any manner with an investigation
conducted by a local, state, or federal agency, filing or disclosing any facts necessary to receive unemployment insurance, Medicaid,
or other public benefits, or exercising protected rights to the extent that such rights cannot be waived by agreement or
from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government
agency, provided that such compliance does not exceed that required by the law, regulation, or order. The
Executive shall promptly provide written notice, as provided in Section 20, of any such order to the Company’s
Chief Executive Officer. This Section does not in any way restrict or impede the Executive from speaking with law enforcement,
the Equal Employment Opportunity Commission, the New York Division of Human Rights, any local commission on human rights, or an
attorney retained by the Executive regarding factual information related to claims of discrimination occurring after
the Effective Date of this Agreement.

 

10.       Remedies.

 

In
the event of a breach or threatened breach by the Executive of any provision of Sections 6, 7, 8, or 9 of this Agreement,
the Executive hereby acknowledges and agrees that the Company shall be entitled to seek, in addition to other available remedies,
a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of competent
jurisdiction, and that money damages would not afford an adequate remedy, without the necessity of showing any actual damages,
and without the necessity of posting any bond or other security. Any equitable relief shall be in addition to, not instead of,
legal remedies, monetary damages, or other available relief. If the Executive fails to comply with any of the terms of this Agreement or
post-employment obligations contained in it, the Company may, in addition to any other available remedies, reclaim any amounts
paid to the Executive under the provisions of this Agreement and terminate any benefits or payments that are later due
under this Agreement, without waiving the releases provided in it.

 

11.       Successors
and Assigns.

 

11.1.      Assignment
by the Company. The Company may freely assign this Agreement at any time. This Agreement shall
inure to the benefit of the Company and its successors and assigns.

 

11.2      No
Assignment by the Executive. The Executive may not assign this Agreement in whole or in part. Any purported
assignment by the Executive shall be null and void from the initial date of the purported assignment.

 

12.       Governing
Law; Jurisdiction; and Venue Arbitration. 

 

12.1
      Governing Law. This Agreement
and all matters arising out of or relating to this Agreement and
the Executive's employment or termination of employment with the Company whether sounding in contract, tort, or statute, for all
purposes shall be governed by and construed in accordance with the laws of New York (including its statutes of limitations) without
regard to any conflicts of laws principles that would require the laws of any other jurisdiction to apply. 

 

12.2
      Arbitration. The Parties agree that any dispute, controversy, or claim arising
out of or related to the Executive's employment with the Company or termination of employment, this Agreement,
or any alleged breach of this Agreement shall be governed by the Federal
Arbitration Act (FAA) and submitted to and decided by binding arbitration to be held in in the City of Syracuse, Onondaga County,
New York. Arbitration shall be administered before and in accordance with Judicial Arbitration and Mediation Services (“JAMS”)
arbitrator, in accordance with the JAMS Employment Arbitration Rules & Procedures in effect at that time, except as modified
herein, and that neither party will bring any claim in court except for claims for injunctive relief.

 

    
	 	12	 

     

    

 

12.3       
Injunctive Relief. For claims for injunctive relief, the Parties hereby (a) irrevocably
consent and submit to the sole exclusive jurisdiction of the United States District Court for the Northern District of New York
and any state court in the State of New York that is located in Broome County, New York (and of the appropriate appellate courts
from any of the foregoing) in connection with any legal action, lawsuit, arbitration, mediation, or other legal or quasi legal
proceeding (“Proceeding”) directly or indirectly arising out of or relating to any Agreement Matter; provided,
however, that a Party to this Agreement shall be entitled to enforce an order or judgment of any such
court in any United States or foreign court having jurisdiction over the other Party, (b) irrevocably waive, to the fullest
extent permitted by law, any objection that a Party may now or later have to the laying of the venue of any such Proceeding in
any such court or that any such Proceeding which is brought in any such court has been brought in an inconvenient forum, (c) irrevocably
waive, to the fullest extent permitted by law, any immunity from jurisdiction of any such court or from any legal process therein,
(d) irrevocably waive, to the fullest extent permitted by law, any right to a trial by jury in connection with a Proceeding,
(e) covenant that such Party will not, directly or indirectly, commence any Proceeding other than in such courts and (f) agree
that service of any summons, complaint, notice or other process relating to such Proceeding may be effected in the manner provided
for the giving of notice as set forth in this Agreement.

 

14.       Entire Agreement.
Unless specifically provided herein, this Agreement contains
all of the understandings and representations between Company and Executive relating to the subject matter hereof and supersedes
all prior and contemporaneous understandings, discussions, agreements, representations,
and warranties, both written and oral, regarding such subject matter; provided, however, that nothing in this Agreement modifies,
supersedes, voids, or otherwise alters Executive's confidentiality, non-compete, and contractual obligations with Company under
any other surviving agreements (or provisions thereof) between the Company and the Executive, including,
without limitation, the Employment Agreement (and specifically, Sections 5, 6, 7, 8, 9, 10, 12 and 13 thereof, which shall
survive such termination of the Employment Agreement and continue in full force and effect). The 2017 SOA as amended as contemplated
by Sections 2.7 and 3.1 (b) shall remain in full force and effect. In the event of any inconsistency
between this Agreement and any other agreement between the Executive and the Company, including the
Employment Agreement, the provisions of this Agreement shall control.

 

15.       Modification
and Waiver. No provision of this Agreement may be amended or modified unless the amendment or modification is
agreed to in writing and signed by the Executive and by Chief Executive Officer of the Company. No waiver by either Party/any
Party of any breach by any other party of any condition or provision of this Agreement to be performed by any other
Party shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time,
nor shall the failure of or delay by any Party in exercising any right, power, or privilege under this Agreement operate
as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power, or privilege.

 

16.      
Severability.If any provision of this Agreement is found by a court or arbitral authority of competent
jurisdiction to be invalid, illegal, or unenforceable in any respect, or enforceable only if modified, such finding shall not
affect the validity of the remainder of this Agreement, which shall remain in full force and effect and continue to be binding
on the Parties. The Parties further agree that any such court or arbitral authority is expressly authorized to modify any such
invalid, illegal, or unenforceable provision of this Agreement instead of severing the provision from this Agreement in
its entirety, whether by rewriting, deleting, or adding to the offending provision, or by making such other modifications as it
deems necessary to carry out the intent and agreement of the Parties as embodied in this Agreement to the
maximum extent permitted by law. Any such modification shall become a part of and treated as though originally set forth in this Agreement.
If such provision or provisions are not modified, this Agreement shall be construed as if such invalid, illegal, or
unenforceable provisions had not been set forth in it. The Parties expressly agree that this Agreement as so modified
by the court or arbitral authority shall be binding on and enforceable against each of them.

 

    
	 	13	 

     

    

 

17.       Captions;
References, Etc. For purposes of this Agreement:

 

(a)       The
headings and captions are solely for the convenience of reference and shall be given no effect in the construction or interpretation
of this Agreement. Section references are to sections of this Agreement unless otherwise specified;

 

(b)       the
words “include,” “includes,” and “including” shall be deemed to be followed by the words “without
limitation;”

 

(c)        the
word “or” is not exclusive;

 

(d)        the
words “herein,” “hereof,” “hereby,” “hereto,” and “hereunder” refer
to this Agreement as a whole;

 

(e)       unless
the context otherwise requires, references herein to: (i) Sections, Exhibits and Schedules refer to the Sections of, and Exhibits
and Schedules attached to, this Agreement; (ii) to an agreement, instrument, or other document means such agreement, instrument,
or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions thereof;
(iv) any reference to any federal, state, local, or foreign statute or law shall be deemed also to refer to all rules and regulations
promulgated thereunder and amendments thereto and includes any successor legislation thereto and any regulations promulgated thereunder,
unless the context requires otherwise;

 

(f)       any
Exhibits or Schedules referred to herein shall be construed with, and as an integral part of, this Agreement to the same extent
as if they were set forth verbatim herein;

 

(g)       as
used in this Agreement, the term “Person” means any individual or any corporation, partnership, joint venture,
limited liability company, association or other entity or enterprise.

 

18.       Counterparts.
The Parties may execute this Agreement in counterparts, each of which shall be deemed an original, and all of which
taken together shall constitute one and the same instrument. Delivery of an executed counterpart's signature page of this Agreement
by facsimile, email in portable document format (.pdf), or by any other electronic means intended to preserve the original graphic
and pictorial appearance of a document has the same effect as delivery of an executed original of this Agreement.

 

19.       No
Admission of Liability. Nothing in this Agreement shall be construed as an admission by the Company or the Executive
of any wrongdoing, liability, or noncompliance with any federal, state, city, or local rule, ordinance, statute, common law, or
other legal obligation.

 

20.
       Notices. Any notice or other communication required or permitted
pursuant to this Agreement shall be in writing and addressed as follows:

 

	If to the Company, to:	 	If to the Executive, to: 

         

         

	SolarWindow Technologies, Inc.

        430 Park Avenue, Suite 702New York,
        NY 10022

        

        
	 	****

         

        

 

 

    
	 	14	 

     

    

 

	

        Attention: Jatinder S. Bhogal,
        President and Chief Executive Officer

        Email: jsbhogal@solarwindow.com

        
	 	****

         

         

         

 

or, to such other
address or facsimile number as either Party shall have furnished to the other in writing in accordance with this Section
20. Notices sent in accordance with this Section 20 shall be deemed effectively given: (a) when received,
if delivered by hand (with written confirmation of receipt); (b) when received, if sent by a nationally recognized overnight courier
(receipt requested); (c) on the date sent by facsimile or e-mail (in each case, with confirmation of transmission), if sent during
normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or
(d) on the third (3rd) Business Day after the date mailed, by certified or registered mail, return receipt requested, postage
prepaid.

 

21.       Exit
Obligations. Upon (a) voluntary or involuntary termination of the Consulting Period,
or (b) the Company's request at any time during the Consulting Period, the Executive shall (i) provide or return to the Company
any and all Company property, including keys, key cards, access cards, identification cards, security devices, employer credit
cards, network access devices, computers, cell phones, smartphones, PDAs, pagers, fax machines, equipment, speakers, webcams,
manuals, reports, files, books, compilations, work product, e-mail messages, recordings, tapes, disks, thumb drives or other removable
information storage devices, hard drives, negatives and data and all Company documents and materials belonging to the Company
and stored in any fashion, including but not limited to those that constitute or contain any confidential information or work
product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or
any of its business associates or created by the Executive in connection with his employment by the Company; and (ii) delete or
destroy all copies of any such documents and materials, regardless of the media on which such documents and materials are stored,
not returned to the Company that remain in the Executive's possession or control, including those stored on any non-Company devices,
networks, storage locations, computers, thumb drives and media in the Executive's possession or control. The Executive represents
that he has fully complied with his obligations under Section 10 (d) (iii) of the Employment Agreement.

 

22.       Tolling.
If the Executive violates any of the post-termination obligations in this Agreement, the obligation at issue will run from
the first date on which the Executive ceases to be in violation of such obligation.

 

23.       Section
409A. This Agreement is intended to
comply with Section 409A of the Internal Revenue Code of 1986, as amended (Section 409A), including the exceptions thereto, and
shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement,
payments provided under this Agreement may only be made upon an event and
in a manner that complies with Section 409A or an applicable exemption. Any payments under this Agreement that
may be excluded from Section 409A either as separation pay due to an involuntary separation from
service, as a short-term deferral, or as a settlement payment pursuant to a bona fide legal dispute shall be excluded from Section
409A to the maximum extent possible. For purposes of Section 409A, any installment payments provided under this Agreement shall
each be treated as a separate payment. To the extent required under Section 409A, any payments to be made under this Agreement in
connection with a termination of employment shall only be made if such termination constitutes a “separation from
service” under Section 409A. Notwithstanding the foregoing, Company Group makes no representations that the payments and
benefits provided under this Agreement comply with Section 409A and in
no event shall Company Group be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be
incurred by Executive on account of non-compliance with Section 409A.

 

    
	 	15	 

     

    

 

24.       Authority
and Competency. Each of Employee and Company hereby warrant and represent that he/it is competent to enter into this Agreement
and bind himself/itself to the terms hereof and is not operating under any legal disability. The officer signing on behalf of
the Company hereby warrants and represents that said officer is duly authorized by all appropriate corporate action to enter into
this Agreement on behalf of the Company and to bind the Company to the terms hereof.

 

 

25.       Notice
of Post-Termination Obligations. When the Executive's engagement with the Company terminates, the Executive agrees to
notify any subsequent employer, who may be or plans to be engaged in a Competitive Business, of the restrictive covenants contained
in this Agreement and the Employment Agreement. In addition, the Executive authorizes the Company to provide a copy of the
restrictive covenants contained in this Agreement and the Employment Agreement to third parties that may be or plans
to be engaged in a Competitive Business, including but not limited to, the Executive's subsequent, anticipated, or possible future
employer in a Competitive Business.

 

26.       Acknowledgment
of Full Understanding.

 

THE ACKNOWLEDGES AND AGREES THAT HE
HAS FULLY READ, UNDERSTANDS, AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT THE HE
HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF THE HIS CHOICE BEFORE SIGNING THIS AGREEMENT. THE
EXECUTIVE FURTHER ACKNOWLEDGES THAT HIS SIGNATURE BELOW IS AN AGREEMENT TO RELEASE COMPANY GROUP FROM ANY
AND ALL CLAIMS THAT CAN BE RELEASED AS A MATTER OF LAW.

 

[SIGNATURES APPEAR ON THE FOLLOWING
PAGE]

 

[BALANCE OF THIS PAGE HAS BEEN LEFT
INTENTIONALLY BLANK]

 

 

 

 

 

 

 

 

 

 

    
	 	16	 

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Execution Date above.

 

 

the company:

 

SolarWindow
technologies, inc.

 

 

 

By:  /s/ Jatinder S. Bhogal_____________________

Name: Jatinder S. Bhogal

Title: President and Chief Executive Officer

Signing Date: November 24, 2020

 

 

 

 

 

 

THE EXECUTIVE:

 

 

 

By:  /s/ John A. Conklin_______________________

Name: John A. Conklin

Signing Date: November 24, 2020

 

 

 

 

 

 

 

 

17aray-ex101_7.htm

EXHIBIT 10.1

ACCURAY INCORPORATED

AMENDED AND RESTATED 2016 EQUITY INCENTIVE PLAN

1.Purposes of the Plan.  The purposes of this Plan are: 

	
 
	
•
	
to attract and retain the best available personnel for positions of substantial responsibility,

	
 
	
•
	
to provide additional incentive to Employees, Directors and Consultants, and 

	
 
	
•
	
to promote the success of the Company’s business.

The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units, Performance Shares, and other stock or cash awards as the Administrator may determine.

2.Definitions.  As used herein, the following definitions will apply:

(a)“Administrator” means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4 of the Plan.

(b)“Affiliate” means any entity that, directly or indirectly, controls, is controlled by, or is under common control with, the Company.

(c)“Applicable Laws” means the legal and regulatory requirements relating to the administration of equity-based awards, including but not limited to U.S. federal and state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any non-U.S. country or jurisdiction where Awards are, or will be, granted under the Plan.

(d)“Award” means, individually or collectively, a grant under the Plan of Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units, Performance Shares, or other stock or cash awards as the Administrator may determine.

(e)“Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan.  The Award Agreement is subject to the terms and conditions of the Plan.

(f)“Board” means the Board of Directors of the Company.

(g)“Change in Control” means the occurrence of any of the following events:

(i)A change in the ownership of the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than fifty percent (50%) of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection, the acquisition of additional stock by any one Person, who is considered to own more than fifty percent (50%) of the total voting power of the stock of the Company will not be considered a Change in Control.  Further, if the stockholders of the Company immediately before such change in ownership continue to retain immediately after the change in ownership, in substantially the same proportions as their ownership of shares of the Company’s voting stock immediately prior to the change in ownership, direct or indirect beneficial ownership of fifty percent (50%) or more of the total voting power of the stock of the Company or of the ultimate parent entity of the Company, such event shall not be considered a Change in Control under this subsection (i). For this purpose, indirect beneficial ownership shall include, without limitation, an interest 

	

	

 

 

resulting from ownership of the voting securities of one or more corporations or other business entities which own the Company, as the case may be, either directly or through one or more subsidiary corporations or other business entities; or 

(ii)A change in the effective control of the Company which occurs on the date that a majority of members of the Board is replaced during any twelve (12)-month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election.  For purposes of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control; or

(iii)A change in the ownership of a substantial portion of the Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12)‐month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total gross fair market value equal to or more than fifty percent (50%) of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, fifty percent (50%) or more of the total value or voting power of which is owned, directly or indirectly, by the Company, (3) a Person, that owns, directly or indirectly, fifty percent (50%) or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least fifty percent (50%) of the total value or voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3).  For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets.

For purposes of this definition, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the Company.

Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been promulgated or may be promulgated thereunder from time to time.

Further and for the avoidance of doubt, a transaction will not constitute a Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction.

(h) “Code” means the Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder will include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

(i)“Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board, or a duly authorized committee of the Board, in accordance with Section 4 hereof.

(j)“Common Stock” means the common stock of the Company.

(k)“Company” means Accuray Incorporated, a Delaware corporation, or any successor thereto.

-2-

 

 

 

(l)“Consultant” means any natural person, including an advisor, engaged by the Company or a Parent, Subsidiary or Affiliate to render bona fide services to such entity, provided the services (i) are not in connection with the offer or sale of securities in a capital-raising transaction, and (ii) do not directly promote or maintain a market for the Company’s securities, in each case, within the meaning of Form S-8 promulgated under the Securities Act, and provided, further, that a Consultant will include only those persons to whom the issuance of Shares may be registered under Form S-8 promulgated under the Securities Act.

(m)“Covered Employee” means any Service Provider who would be considered a “covered employee” within the meaning of Section 162(m) of the Code.

(n)“Determination Date” means the latest possible date that will not jeopardize the qualification of an Award granted under the Plan as “performance-based compensation” under Code Section 162(m).

(o)“Director” means a member of the Board.

(p)“Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.  

(q)“Employee” means any person, including Officers and Directors, employed by the Company or any Parent, Subsidiary or Affiliate of the Company.  Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.

(r)“Exchange Act” means the Securities Exchange Act of 1934, as amended.

(s)“Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for awards of the same type (which may have higher or lower exercise prices and different terms), awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is increased or reduced.  

(t)“Fair Market Value” means, as of any date, the value of Common Stock determined as follows:

(i)If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(ii)If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the date of determination (or, if no bids and asks were reported on that date, as applicable, on the last trading date such bids and asks were reported), as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

(iii)In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

(u)“Fiscal Year” means the fiscal year of the Company.

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(v)“Full Value Award” means any Award which results in the issuance of Shares other than Options, Stock Appreciation Rights or other Awards that are based solely on an increase in value of the Shares following the grant date.

(w)“GAAP” means U.S. generally accepted accounting principles.

(x)“Incentive Stock Option” means an Option that by its terms qualifies and is intended to qualify as an incentive stock option within the meaning of Section 422 of the Code.

(y)“Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.

(z)“Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

(aa)“Option” means a stock option granted pursuant to the Plan.

(bb)“Outside Director” means a Director who is not an Employee.

(cc)“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.

(dd)“Participant” means the holder of an outstanding Award.

(ee)“Performance Goals” will have the meaning set forth in Section 12 of the Plan.

(ff)“Performance Period” means any Fiscal Year of the Company or such other period as determined by the Administrator in its sole discretion.

(gg)“Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator may determine pursuant to Section 11.

(hh)“Performance Unit” means an Award which may be earned in whole or in part upon attainment of Performance Goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing  pursuant to Section 11.

(ii)“Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture.  Such restrictions may be based on the passage of time, continued service, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

(jj)“Plan” means this Amended and Restated 2016 Equity Incentive Plan.

(kk)“Restricted Stock” means Shares issued pursuant to a Restricted Stock award under Section 8 of the Plan, or issued pursuant to the early exercise of an Option.

(ll)“Restricted Stock Unit” means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 9.  Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

(mm)“Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

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(nn)“Section 16(b)”  means Section 16(b) of the Exchange Act.

(oo)“Securities Act”  means the Securities Act of 1933, as amended.

(pp)“Section 409A” means Section 409A of the Code and the final regulations and any guidance promulgated thereunder, as may be amended from time to time.

(qq)“Service Provider” means an Employee, Director or Consultant.

(rr)“Share” means a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan.

(ss)“Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 9 is designated as a Stock Appreciation Right.

(tt)“Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code.

3.Stock Subject to the Plan.  

(a)Stock Subject to the Plan.  Subject to the provisions of Section 15(a) of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is (i) 18,420,000 Shares, plus (ii) any Shares which have been reserved but not issued pursuant to any awards granted under the Company’s 2007 Incentive Award Plan, as amended (the “Existing Plan”), as of November 17, 2016 and any Shares subject to stock options, restricted stock units, performance shares, performance units, or similar awards granted under the Existing Plan, that, on or after November 17, 2016, expire or otherwise terminate without having been exercised in full and Shares issued pursuant to awards granted under the Existing Plan that are forfeited to or repurchased by the Company, with the maximum number of Shares to be added to the Plan from the Existing Plan equal to 10,084,101.  The Shares may be authorized, but unissued, or reacquired Common Stock.

(b)Full Value Awards.  Any Shares subject to Full Value Awards will be counted against the numerical limits of Section 3(a)(i) as 1.71 Shares for every 1 Share subject thereto.  Further, if Shares subject to any Full Value Award are forfeited to or repurchased by the Company and otherwise would return to the Plan pursuant to Section 3(c), 1.71 times the number of Shares so forfeited or repurchased will return to the Plan and will again become available for issuance under the Plan.

(c)Lapsed Awards.  If an Award expires or becomes unexercisable without having been exercised in full, or, with respect to Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to, or repurchased by, the Company due to failure to vest, then the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares), which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).  With respect to Stock Appreciation Rights, the gross Shares issued (i.e., Shares actually issued pursuant to a Stock Appreciation Right, as well as the Shares that represent payment of the exercise price and any applicable tax withholdings) pursuant to a Stock Appreciation Right will cease to be available under the Plan.  Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will not become available for future grant or sale under the Plan.  To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.  For purposes of clarification, no Shares purchased by the Company with proceeds received from the exercise of an Option or Stock Appreciation Right will become available for issuance under this Plan.  Notwithstanding the foregoing and, subject to adjustment as provided in Section 15, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options will equal the aggregate Share number stated in Section 3(a), plus, to the extent allowable under Section 422 of the Code, any Shares that become available for issuance under the Plan pursuant to Section 3(c).  

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(d)Share Reserve.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.

4.Administration of the Plan. 

(a)Procedure.

(i)Multiple Administrative Bodies.  Different Committees with respect to different groups of Service Providers may administer the Plan.

(ii)Section 162(m).  To the extent that the Administrator determines it to be desirable to qualify Awards granted hereunder as “performance-based compensation” within the meaning of Code Section 162(m), the Plan will be administered by a Committee of two (2) or more “outside directors” within the meaning of Code Section 162(m).

(iii)Rule 16b-3.  To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder will be structured to satisfy the requirements for exemption under Rule 16b-3.

(iv)Other Administration.  Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will be constituted to satisfy Applicable Laws.  

(b)Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

(i)to determine the Fair Market Value;

(ii)to select the Service Providers to whom Awards may be granted hereunder;

(iii)to determine the number of Shares to be covered by each Award granted hereunder;

(iv)to approve forms of Award Agreements for use under the Plan;

(v)to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;

(vi)to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 

(vii)to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of satisfying applicable foreign laws or for qualifying for favorable tax treatment under applicable foreign laws;

(viii)to modify or amend each Award (subject to Sections 5(d) and 21 of the Plan), including but not limited to the discretionary authority to extend the post-termination exercisability period of Awards and to extend the maximum term of an Option (subject to Section 7(b) of the Plan regarding Incentive Stock Options);

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(ix)to allow Participants to satisfy tax withholding obligations in such manner as prescribed in Section 16 of the Plan;

(x)to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator;

(xi)to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that otherwise would be due to such Participant under an Award; and

(xii)to make all other determinations deemed necessary or advisable for administering the Plan.

(c)Effect of Administrator’s Decision.  The Administrator’s decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards and will be given the maximum deference permitted by Applicable Laws.

5.Award Limitations.

(a)Annual Awards for Employees and Consultants.  For so long as: (x) the Company is a “publicly held corporation” within the meaning of Code Section 162(m) and (y) the deduction limitations of Code Section 162(m) are applicable to the Company’s Covered Employees, then, subject to Section 15, the limits specified below shall be applicable to Awards issued under the Plan:

(i)Limits on Options.  No Employee or Consultant shall receive Options during any Fiscal Year covering in excess of 4,000,000 Shares.

(ii)Limits on Stock Appreciation Rights.  No Employee or Consultant shall receive Stock Appreciation Rights during any Fiscal Year covering in excess of 4,000,000 Shares.

(iii)Limits on Restricted Stock.  No Employee or Consultant shall receive Awards of Restricted Stock during any Fiscal Year covering in excess of 2,000,000 Shares.

(iv)Limits on Restricted Stock Units.  No Employee or Consultant shall receive Restricted Stock Units during any Fiscal Year covering in excess of 2,000,000 Shares.

(v)Limits on Performance Shares.  No Employee or Consultant shall receive Performance Shares during any Fiscal Year covering in excess of 2,000,000 Shares.

(vi)Limits on Performance Units.  No Employee or Consultant shall receive Performance Units with an aggregate initial value of greater than $10,000,000.

(b)Annual Awards for Outside Directors.  No Outside Director may be granted, in any Fiscal Year, Awards with a grant date fair value (determined in accordance with GAAP) of greater than $500,000.  Any Award granted to a Participant while he or she was an Employee, or while he or she was a Consultant but not an Outside Director, will not count for purposes of the limitations under this Section 5(b).

(c)Minimum Vesting Requirements.

(i)General.  Except as specified in Section 5(c)(ii), Restricted Stock Units, Options and Stock Appreciation Rights will vest no earlier than the 1-year anniversary of such Award’s grant date (except if accelerated pursuant to a Change in Control or a termination of Participant’s status as a Service Provider under certain circumstances, a Participant’s death, or a Participant’s Disability) (each, an “Acceleration Event”). 

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(ii)Exception.  Restricted Stock Units, Options and Stock Appreciation Rights may be granted to any Service Provider without regard to the minimum vesting requirements set forth in Section 5(c)(i) if the Shares subject to such Awards would not result in more than 5% of the maximum aggregate number of Shares reserved for issuance pursuant to all outstanding Restricted Stock Units, Options and Stock Appreciation Rights granted under the Plan (the “5% Limit”).  Any Restricted Stock Units, Options or Stock Appreciation Rights that have their vesting discretionarily accelerated (except if accelerated pursuant to an Acceleration Event) are subject to the 5% Limit.  For purposes of clarification, the Administrator may accelerate the vesting of any Award pursuant to an Acceleration Event without such vesting acceleration counting toward the 5% Limit. The 5% Limit applies in the aggregate to Restricted Stock Units, Options or Stock Appreciation Rights that do not satisfy the minimum vesting requirements set forth in Section 5(c)(i) and to the discretionary vesting acceleration of Restricted Stock Units, Options or Stock Appreciation Rights as specified in this Section 5(c)(ii).

(d)No Exchange Program.  The Administrator may not implement an Exchange Program.

6.Eligibility.  Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, and such other cash or stock awards as the Administrator determines may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees of the Company or any Parent or Subsidiary of the Company.

7.Stock Options.

(a)Grant of Option. Each Option will be designated in the Award Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However, notwithstanding such designation, to the extent that the aggregate fair market value of the Shares with respect to which incentive stock options are exercisable for the first time by the Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), the portion of the Options falling within such limit will be Incentive Stock Options and the excess Options will be treated as Nonstatutory Stock Options.  For purposes of this Section 7(a)(i), incentive stock options will be taken into account in the order in which they were granted.  The fair market value of the Shares will be determined as of the time the option with respect to such Shares is granted.

(b)Term of Option.  The term of each Option will be stated in the Award Agreement but will not exceed ten (10) years from the date the Option is granted.  Moreover, in the case of an Incentive Stock Option granted to a Participant who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option will be five (5) years from the date of grant or such shorter term as may be provided in the Award Agreement.

(c)Option Exercise Price and Consideration.

(i)Exercise Price.  The per share exercise price for the Shares to be issued pursuant to exercise of an Option will be determined by the Administrator, subject to the following:

(1)In the case of an Incentive Stock Option

(A)granted to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price will be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant.

(B)granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

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(2)In the case of a Nonstatutory Stock Option, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.

(3)Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code.

(ii)Waiting Period and Exercise Dates.  At the time an Option is granted and subject to the provisions of this Plan, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.

(iii)Form of Consideration.  The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment.  In the case of an Incentive Stock Option, the Administrator will determine the acceptable form of consideration at the time of grant.  Such consideration may consist entirely of: (1) cash; (2) check; (3) other Shares, provided that such Shares have a fair market value on the date of surrender equal to the aggregate exercise price of the Shares as to which such Option will be exercised and provided that accepting such Shares will not result in any adverse accounting consequences to the Company, as the Administrator determines in its sole discretion; (4) consideration received by the Company under a broker-assisted (or other) cashless exercise program (whether through a broker or otherwise) implemented by the Company in connection with the Plan; (5) by net exercise; (6) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws; or (7) any combination of the foregoing methods of payment.

(d)Exercise of Option.

(i)Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator, subject to the provisions of this Plan, and set forth in the Award Agreement.  An Option may not be exercised for a fraction of a Share.

An Option will be deemed exercised when the Company receives: (i) a notice of exercise (in such form as the Administrator may specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes).  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan.  Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option.  The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 15 of the Plan.

Exercising an Option in any manner will decrease the number of Shares thereafter available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised.

(ii)Termination of Relationship as a Service Provider other than Death or Disability.  If a Participant ceases to be a Service Provider, other than upon the Participant’s termination as the result of the Participant’s death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement).  In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant’s termination, but in no event later than the expiration of the term of such Option as set forth in the Award Agreement.  

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If Participant dies during such post-employment period, the Option may be exercised following the Participant’s death for one (1) year after Participant’s death, but in no event later than the expiration of the term of such Option as set forth in the Award Agreement.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

(iii)Disability of Participant.  If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement).  In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant’s termination, but in no event later than the expiration of the term of such Option as set forth in the Award Agreement.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If, after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.

(iv)Death of Participant.  If a Participant dies while a Service Provider, the Option may be exercised following the Participant’s death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’s will or in accordance with the laws of descent and distribution.  In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant’s death, but in no event later than the expiration of the term of such Option as set forth in the Award Agreement.  If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan. Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan.  

(v)Tolling Expiration.  A Participant’s Award Agreement may also provide that:

(1)if the exercise of the Option following the termination of Participant’s status as a Service Provider (other than upon the Participant’s death or Disability) would result in liability under Section 16(b), then the Option will terminate on the earlier of (A) the expiration of the term of the Option set forth in the Award Agreement, or (B) the tenth (10th) day after the last date on which such exercise would result in liability under Section 16(b); or

(2)if the exercise of the Option following the termination of the Participant’s status as a Service Provider (other than upon the Participant’s death or Disability) would be prohibited at any time solely because the issuance of Shares would violate the registration requirements under the Securities Act, then the Option will terminate on the earlier of (A) the expiration of the term of the Option or (B) the expiration of a period of thirty (30)-day period after the termination of the Participant’s status as a Service Provider during which the exercise of the Option would not be in violation of such registration requirements.

8.Restricted Stock.

(a)Grant of Restricted Stock.  Subject to the terms of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, 

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in its sole discretion, will determine. Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.

(b)Restricted Stock Agreement.  Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine.  

(c)Transferability.  Except as provided in this Section 8, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

(d)Other Restrictions.  Subject to the provisions of this Plan, the Administrator, in its sole discretion, may impose such other restrictions on Shares of Restricted Stock as it may deem advisable or appropriate.

(e)Removal of Restrictions.  Except as otherwise provided in this Section 8, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction.  The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.  

(f)Voting Rights.  During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

(g)Dividends and Other Distributions.  During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares unless otherwise provided in the Award Agreement.  If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

(h)Return of Restricted Stock to Company.  On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will revert to the Company and again will become available for grant under the Plan in accordance with Section 3(b) of the Plan.

(i)Section 162(m) Performance Restrictions.  For purposes of qualifying grants of Restricted Stock as “performance-based compensation” under Code Section 162(m), the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals.  The Performance Goals will be set by the Administrator on or before the Determination Date.  In granting Restricted Stock that is intended to qualify under Code Section 162(m), the Administrator will follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Award under Code Section 162(m) (e.g., in determining the Performance Goals).

9.Restricted Stock Units.

(a)Grant of Restricted Stock Units.  Subject to the terms of the Plan, the Administrator, at any time and from time to time, Restricted Stock Units may be granted to Service Providers at any time and from time to time as determined by the Administrator.  

(b)Restricted Stock Unit Agreement.  Each Award of Restricted Stock Units will be evidenced by an Award Agreement that will specify such other terms and conditions as the Administrator, in its sole discretion, will determine, including all terms, conditions, and restrictions related to the grant, the number of Restricted Stock Units and the form of payout, which, subject to Section 9(e), may be left to the discretion of the Administrator.  

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(c)Vesting Criteria and Other Terms.  Subject to the provisions of this Plan, the Administrator will set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant.  The Administrator may set vesting criteria based upon the achievement of Company-wide, divisional, business unit, or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws or any other basis determined by the Administrator in its discretion.  After the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any restrictions for such Restricted Stock Units.  

(d)Earning Restricted Stock Units.  Upon meeting the applicable vesting criteria, the Participant will be entitled to receive a payout as specified in the Award Agreement.   

(e)Form and Timing of Payment.  Payment of earned Restricted Stock Units will be made as soon as practicable after the date(s) set forth in the Award Agreement.  The Administrator, in its sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination thereof.  Shares represented by Restricted Stock Units that are fully paid in cash again will be available for grant under the Plan.

(f)Cancellation.  On the date set forth in the Award Agreement, all unearned Restricted Stock Units will be forfeited to the Company and become available for grant under the Plan.

(g)Section 162(m) Performance Restrictions.  For purposes of qualifying grants of Restricted Stock Units as “performance-based compensation” under Code Section 162(m), the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals.  The Performance Goals will be set by the Administrator on or before the Determination Date.  In granting Restricted Stock Units which are intended to qualify under Code Section 162(m), the Administrator will follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Award under Code Section 162(m) (e.g., in determining the Performance Goals).

10.Stock Appreciation Rights.  

(a)Grant of Stock Appreciation Rights.  Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.  

(b)Exercise Price and Other Terms.  The Administrator, subject to the provisions of the Plan, will have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan, provided, however, that the exercise price will be not less than 100% of the Fair Market Value of a Share on the date of grant.  

(c)Stock Appreciation Right Agreement.  Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

(d)Expiration of Stock Appreciation Rights.  A Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement; provided, however, that the term will be no more than ten (10) years from the date of grant thereof.  Notwithstanding the foregoing, the rules of Section 7(d) also will apply to Stock Appreciation Rights.

(e)Payment of Stock Appreciation Right Amount.  Upon exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

(i)The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; multiplied by

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(ii)The number of Shares with respect to which the Stock Appreciation Right is exercised.

At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.

11.Performance Units and Performance Shares. 

(a)Grant of Performance Units/Shares.  Subject to the terms of the Plan, Performance Units and Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion.  

(b)Value of Performance Units/Shares.  Each Performance Unit will have an initial value that is established by the Administrator on or before the date of grant.  Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant.

(c)Performance Objectives and Other Terms.  The Administrator will set performance objectives or other vesting provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers.  Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine.  The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, business unit or individual goals (including, but not limited to, continued employment or service), applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion.

(d)Earning of Performance Units/Shares.  After the applicable Performance Period has ended, the holder of Performance Units/Shares will be entitled to receive a payout of the number of Performance Units/Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have been achieved.  After the grant of a Performance Unit/Share, the Administrator, in its sole discretion, may reduce or waive any performance objectives or other vesting provisions for such Performance Unit/Share.

(e)Form and Timing of Payment of Performance Units/Shares.  Payment of earned Performance Units/Shares will be made as soon as practicable after the expiration of the applicable Performance Period.  The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof.

(f)Cancellation of Performance Units/Shares.  On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.

(g)Section 162(m) Performance Restrictions.  For purposes of qualifying grants of Performance Units/Shares as “performance-based compensation” under Code Section 162(m), the Administrator, in its discretion, may set restrictions based upon the achievement of Performance Goals.  The Performance Goals will be set by the Administrator on or before the Determination Date.  In granting Performance Units/Shares which are intended to qualify under Code Section 162(m), the Administrator will follow any procedures determined by it from time to time to be necessary or appropriate to ensure qualification of the Award under Code Section 162(m) (e.g., in determining the Performance Goals).

12.Performance-Based Compensation Under Code Section 162(m).

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(a)General.  If the Administrator, in its discretion, decides to grant an Award intended to qualify as “performance-based compensation” under Code Section 162(m), the provisions of this Section 12 will control over any contrary provision in the Plan; provided, however, that the Administrator may in its discretion grant Awards that are not intended to qualify as “performance-based compensation” under Code Section 162(m) to such Participants that are based on Performance Goals or other specific criteria or goals but that do not satisfy the requirements of this Section 12.

(b)Performance Goals.  The granting and/or vesting of Awards of Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units and other incentives under the Plan may be made subject to the attainment of performance goals relating to one or more business criteria within the meaning of Code Section 162(m) and may provide for a targeted level or levels of achievement (“Performance Goals”) including stock price, revenue, profit, bookings, cash flow, customer retention, customer satisfaction, net bookings, net income, net profit, operating cash flow, operating expenses, total earnings; earnings per share, diluted or basic; earnings per share from continuing operations, diluted or basic; earnings before interest and taxes; earnings before interest, taxes, depreciation, and amortization; pre-tax profit; net asset turnover; inventory turnover; capital expenditures; net earnings; operating earnings; gross or operating margin; profit margin, debt; working capital; return on equity; return on net assets; return on total assets; return on capital; return on investment; return on sales; net or gross sales; market share; economic value added; cost of capital; change in assets; expense reduction levels; debt reduction; productivity; new product introductions; delivery performance; individual objectives; and total stockholder return.  Any Performance Goals may be used to measure the performance of the Company as a whole or, except with respect to stockholder return metrics, to a region, business unit, affiliate or business segment, and any Performance Goals may be measured either on an absolute basis, a per share basis or relative to a pre-established target, to a previous period’s results or to a designated comparison group, and, with respect to financial metrics, which may be determined in accordance with GAAP, in accordance with accounting principles established by the International Accounting Standards Board (“IASB Principles”) or which may be adjusted when established to either exclude any items otherwise includable under GAAP or under IASB Principles or include any items otherwise excludable under GAAP or under IASB Principles.  In all other respects, Performance Goals will be calculated in accordance with the Company’s financial statements, generally accepted accounting principles, or under a methodology established by the Administrator prior to or at the time of the issuance of an Award and which is consistently applied with respect to a Performance Goal in the relevant Performance Period. In addition, the Administrator will adjust any performance criteria, Performance Goal or other feature of an Award that relates to or is wholly or partially based on the number of, or the value of, any stock of the Company, to reflect any stock dividend or split, repurchase, recapitalization, combination, or exchange of shares or other similar changes in such stock.  The Performance Goals may differ from Participant to Participant and from Award to Award.  Prior to the Determination Date, the Administrator will determine whether any significant element(s) will be included in or excluded from the calculation of any Performance Goal with respect to any Participant.  

(c)Procedures.  To the extent necessary to comply with the performance-based compensation provisions of Code Section 162(m), with respect to any Award granted subject to Performance Goals, within the first twenty-five percent (25%) of the Performance Period, but in no event more than ninety (90) days following the commencement of any Performance Period (or such other time as may be required or permitted by Code Section 162(m)), the Administrator will, in writing, (i) designate one or more Participants to whom an Award will be made, (ii) select the Performance Goals applicable to the Performance Period, (iii) establish the Performance Goals, and amounts of such Awards, as applicable, which may be earned for such Performance Period, and (iv) specify the relationship between Performance Goals and the amounts of such Awards, as applicable, to be earned by each Participant for such Performance Period.  Following the completion of each Performance Period, the Administrator will certify in writing whether the applicable Performance Goals have been achieved for such Performance Period.  In determining the amounts earned by a Participant, the Administrator will have the right to reduce or eliminate (but not to increase) the amount payable at a given level of performance to take into account additional factors that the Administrator may deem relevant to the assessment of individual or corporate performance for the Performance Period.  A Participant will be eligible to receive payment pursuant to an Award for a Performance Period only if the Performance Goals for such period are achieved.  

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(d)Additional Limitations.  Notwithstanding any other provision of the Plan, any Award which is granted to a Participant and is intended to constitute qualified performance based compensation under Code Section 162(m) will be subject to any additional limitations set forth in the Code (including any amendment to Section 162(m)) or any regulations and ruling issued thereunder that are requirements for qualification as qualified performance-based compensation as described in Code Section 162(m), and the Plan will be deemed amended to the extent necessary to conform to such requirements.

13.Leaves of Absence/Transfer Between Locations.  Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence.  A Participant will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.  For purposes of Incentive Stock Options, no such leave may exceed three (3) months, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, then six (6) months following the first (1st) day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.

14.Transferability of Awards.  

(a)General.  Except to the limited extent provided in Section 14(b), an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. 

(b)Limited Transferability.  The Administrator may permit an Award (other than an Incentive Stock Option) to be assigned or transferred, in whole or in part, during a Participant’s lifetime: (i) under a domestic relations order, official marital settlement agreement or other divorce or separation instrument as permitted by Treasury Regulations Section 1.421‐1(b)(2); or (ii) to a “family member,” within the meaning of and in accordance with instructions for Form S-8 promulgated under the Securities Act, to the extent such assignment or transfer is in connection with the Participant’s estate plan; or (iii) to the extent required by any Applicable Law.

15.Adjustments; Dissolution or Liquidation; Change in Control.

(a)Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, will adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award, and the numerical Share limit in Sections 3 and 5(a) of the Plan. 

(b)Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  To the extent it previously has not been exercised, an Award will terminate immediately prior to the consummation of such proposed action.

(c)Change in Control.  Except as set forth in this Section 15(c), in the event of a merger of the Company with or into another corporation or other entity or a Change in Control, each outstanding Award will be treated as the Administrator determines, including, without limitation, that Awards may be assumed, or substantially equivalent Awards will be substituted, by the acquiring or succeeding corporation (or an affiliate thereof) with appropriate adjustments as to the number and kind of shares and prices.  In taking any of the actions permitted under this, the Administrator will not be required to treat all Awards similarly in the transaction.

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In the event that the successor corporation does not assume or substitute for the Award (and for the avoidance of doubt, notwithstanding the vesting limitations under Section 5(c)), the Participant will fully vest in and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, unless specifically provided otherwise under the applicable Award Agreement or other written agreement between the Participant and the Company, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels, prorated based on the portion of the Performance Period that elapsed as of immediately prior to the applicable merger or Change in Control.  All other terms and conditions with respect to such Awards with performance-based vesting will be deemed met. In addition, if an Option or Stock Appreciation Right is not assumed or substituted in the event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock Appreciation Right will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period. 

For the purposes of this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Unit or Performance Share, for each Share subject to such Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change in Control. 

Notwithstanding anything in this Section 15(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more Performance Goals will not be considered assumed if the Company or its successor modifies any of such Performance Goals without the Participant’s consent; provided, however, a modification to such Performance Goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

(d)Outside Director Awards.  With respect to Awards granted to an Outside Director that are assumed or substituted for in a merger or Change in Control, if on the date of or following such assumption or substitution the Participant’s status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant (unless such resignation is at the request of the acquirer), then the Participant will fully vest in and have the right to exercise Options and Stock Appreciation Rights as to all of the Shares underlying such Award, including those Shares which would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Performance Units and Performance Shares, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels, prorated based on the portion of the Performance Period that elapsed as of immediately prior to the applicable merger or Change in Control.  All other terms and conditions with respect to such Awards with performance-based vesting will be deemed met.

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16.Tax.

(a)Withholding Requirements.  Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof) or such earlier time as any tax withholding obligations are due, the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof).  

(b)Withholding Arrangements.  The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable Shares having a fair market value equal to the minimum statutory amount required to be withheld or a greater amount if that would not result in adverse financial accounting treatment, (iii) delivering to the Company already-owned Shares having a fair market value equal to the statutory amount required to be withheld, provided the delivery of such Shares will not result in any adverse accounting consequences, as the Administrator determines in its sole discretion, or (iv) selling a sufficient number of Shares otherwise deliverable to the Participant through such means as the Administrator may determine in its sole discretion (whether through a broker or otherwise) equal to the amount required to be withheld.  The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made, not to exceed the amount determined by using the maximum federal, state or local marginal income tax rates applicable to the Participant with respect to the Award on the date that the amount of tax to be withheld is to be determined.  

(c)Compliance With Section 409A.  Awards will be designed and operated in such a manner that they are either exempt from the application of, or comply with, the requirements of Section 409A such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Section 409A, except as otherwise determined in the sole discretion of the Administrator.  The Plan and each Award Agreement under the Plan is intended to meet the requirements of Section 409A and will be construed and interpreted in accordance with such intent, except as otherwise determined in the sole discretion of the Administrator.  To the extent that an Award or payment, or the settlement or deferral thereof, is subject to Section 409A, the Award will be granted, paid, settled or deferred in a manner that will meet the requirements of Section 409A, such that the grant, payment, settlement or deferral will not be subject to the additional tax or interest applicable under Section 409A.

17.Forfeiture Events.  

(a)Generally.  The Administrator may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award will be subject to the reduction, cancellation, forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award.  Notwithstanding any provisions to the contrary under this Plan, an Award shall be subject to the Company’s clawback policy as may be established and/or amended from time to time (the “Clawback Policy”).  In the absence of a Clawback Policy, each Award shall be subject to Section 17(b).  The Administrator may require a Participant to forfeit, return or reimburse the Company all or a portion of the Award and any amounts paid thereunder pursuant to the terms of the Clawback Policy or Section 17(b) or as necessary or appropriate to comply with Applicable Laws. 

(b)Forfeiture Provisions Applicable in the Absence of a Clawback Policy.  The following provisions shall apply while a Clawback Policy is not in effect:

(i)Recoupment in the Event of a Restatement of Financial Results.  Notwithstanding anything to the contrary set forth in the Plan or any Award, in the event the Company is required to restate its financial results, the Board will review the conduct of executive officers in relation to the restatement.  If the Board determines that an executive officer has engaged in misconduct, or otherwise violated the Company’s Code of Conduct and Ethics for Employees, Agents and Contractors, and that such misconduct or violation contributed to such restatement, then the Board may, in its discretion, take appropriate action to remedy the misconduct or violation, including, without 

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limitation, seeking reimbursement of any portion of any performance-based or incentive compensation paid or awarded to the employee that is greater than would have been paid or awarded if calculated based on the restated financial results, to the extent not prohibited by governing law. For this purpose, the term “executive officer” means executive offers as defined by the Exchange Act.  Any such action by the Board would be in addition to any other actions the Board may take under the Company’s policies, as modified from time to time, or any actions imposed by law enforcement, regulators or other authorities.

(ii)Recoupment in the Event of a Material Reduction in Publicly Disclosed Backlog.  Notwithstanding anything to the contrary set forth in the Plan or any Award, in the event the Company is required to make a Material Reduction of its publicly-disclosed backlog figures, the Board will review the conduct of executive officers in relation to the determination and publication of backlog figures and their subsequent Material Reduction.  If the Board determines that an executive officer has engaged in knowing or reckless misconduct, or otherwise violated the Company’s Code of Conduct and Ethics for Employees, Agents, and Contractors, and that such misconduct or violation led to the improper inclusion of a proposed system sale in publicly-disclosed backlog, then the Board shall, in its discretion, take appropriate action to remedy the misconduct or violation, including, without limitation, seeking reimbursement of any portion of any performance-based or incentive compensation paid or awarded to the executive officer that is greater than would have been paid or awarded if calculated based on the Materially Reduced backlog figures, to the extent not prohibited by governing law.  For this purpose, the term “executive officer” means executive offers as defined by the Exchange Act.  “Material Reduction” shall mean a Reduction of at least 15% of the total backlog publicly reported by the Company in the preceding quarter.  By “Reduction,” this provision is intended to relate to system sales which are included in publicly-disclosed backlog but are then removed due to the cancellation of the transaction.  Removals from backlog due to the fact that a system sale shipped and was recognized as revenue or where a system is removed from backlog due to it being in backlog longer than the time provided for by the Company’s backlog criteria shall not count as a “Reduction.”  Any action taken by the Board pursuant to this provision would be in addition to any other actions the Board may take under the Company’s policies, as modified from time to time, or any actions imposed by law enforcement, regulators or other authorities.

18.No Effect on Employment or Service.  Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider, nor will they interfere in any way with the Participant’s right or the right of the Company, or Parent or Subsidiary, as applicable, to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

19.Grant Date.  The grant date of an Award will be, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator.  Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.

20.Term of Plan.  Subject to Section 24 of the Plan, the Plan will become effective upon its adoption by the Board.  It will continue in effect for a term of ten (10) years from August 24, 2016, unless terminated earlier under Section 21 of the Plan.

21.Amendment and Termination of the Plan.

(a)Amendment and Termination.  The Administrator may at any time amend, alter, suspend or terminate the Plan.  

(b)Stockholder Approval.  The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. 

(c)Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan will materially impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the 

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Company.  Termination of the Plan will not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

22.Conditions Upon Issuance of Shares.

(a)Legal Compliance.  Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

(b)Investment Representations.  As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required.

23.Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction or to complete or comply with the requirements of any registration or other qualification of the Shares under any state, federal or foreign law or under the rules and regulations of the Securities and Exchange Commission, the stock exchange on which Shares of the same class are then listed, or any other governmental or regulatory body, which authority, registration, qualification or rule compliance is deemed by the Company’s counsel to be necessary or advisable for the issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority, registration, qualification or rule compliance will not have been obtained.

24.Stockholder Approval.  The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board.  Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

 

 

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