Document:

Exhibit 10.35

 

CELLDEX
THERAPEUTICS, INC.

 

2004
EMPLOYEE STOCK PURCHASE PLAN

 

as amended
and restated effective as of February 24, 2010

 

1.    Purpose.    The
purpose of the Celldex Therapeutics, Inc. 2004 Employee Stock Purchase
Plan (the “Plan”) is to provide eligible employees of Celldex Therapeutics, Inc.
(the “Company”) and certain of its subsidiaries with opportunities to purchase
shares of the Company’s common stock, par value $.01 per share (the “Common
Stock”). Sixty-two thousand five hundred (62,500) shares of Common Stock in the
aggregate have been approved and reserved for this purpose. The Plan is
intended to constitute an “employee stock purchase plan” within the meaning of Section 423(b) of
the Internal Revenue Code of 1986, as amended (the “Code”), and shall be
interpreted in accordance with that intent.

 

2.    Administration.    The
Plan will be administered by the person or persons (the “Administrator”)
appointed by the Company’s Board of Directors (the “Board”) for such purpose. The Administrator has authority to
make rules and regulations for the administration of the Plan, and its
interpretations and decisions with regard thereto shall be final and
conclusive. No member of the Board or individual exercising administrative
authority with respect to the Plan shall be liable for any action or
determination made in good faith with respect to the Plan or any option granted
hereunder.

 

3.    Offerings.    The
Company will make one or more offerings to eligible employees to purchase
Common Stock under the Plan (“Offerings”). Unless otherwise determined by the
Administrator, each Offering will begin on the first business day occurring on
or after each January 1 and July 1 and will end on the last business
day occurring on or before the following June 30 and December 31,
respectively. The Administrator may, in its discretion, designate a different
period for any Offering, provided that no Offering shall exceed 27 months
in duration or overlap any other Offering.

 

4.    Eligibility.    Each
individual classified as an employee (within the meaning of Section 3401(c) of
the Code and the regulations thereunder) by the Company or a Designated
Subsidiary (as defined in Section 12) on the Company’s or the Designated
Subsidiary’s payroll records during the relevant participation period are
eligible to participate in any one or more of the Offerings under the Plan,
provided that as of the first day of the applicable Offering (the “Offering
Date”) they are customarily employed by the Company or a Designated Subsidiary
for more than 20 hours a week and more than five months in the calendar
year during which the Offering Date occurs or in the calendar year immediately
preceding such year, and have completed at least 60 days of employment.

 

5.    Participation.    An
employee eligible on any Offering Date may participate in such Offering by
submitting an enrollment form to his appropriate payroll location at least 15
business days before the Offering Date (or by such other deadline as shall be
established for the Offering). The form will (a) state a whole percentage
to be deducted from his Compensation (as defined in Section 12) per pay
period, (b) authorize the purchase of Common Stock for him in each

 

 

Offering
in accordance with the terms of the Plan and (c) specify the exact name or
names in which shares of Common Stock purchased for him are to be issued
pursuant to Section 11. An employee who does not enroll in accordance with
these procedures will be deemed to have waived his right to participate. Unless
an employee files a new enrollment form or withdraws from the Plan, his
deductions and purchases will continue at the same percentage of Compensation
for future Offerings, provided he remains eligible. Notwithstanding the
foregoing, participation in the Plan will neither be permitted nor be denied
contrary to the requirements of the Code.

 

6.    Employee
Contributions.    Each eligible employee may
authorize payroll deductions at a minimum of one percent (1%) up to a maximum
of fifteen percent (15%) of his Compensation for each pay period. The Company
will maintain book accounts showing the amount of payroll deductions made by
each participating employee for each Offering. No interest will accrue or be
paid on payroll deductions.

 

7.    Deduction
Changes.    Except as may be determined by the
Administrator in advance of an Offering, an employee may not increase or
decrease his payroll deduction during any Offering, but may increase or
decrease his payroll deduction with respect to the next Offering (subject to
the limitations of Section 6) by filing a new enrollment form at least 15
business days before the next Offering Date (or by such other deadline as shall
be established for the Offering). The Administrator may, in advance of any
Offering, establish rules permitting an employee to increase, decrease or
terminate his payroll deduction during an Offering.

 

8.    Withdrawal.    An
employee may withdraw from participation in the Plan by delivering a written
notice of withdrawal to his appropriate payroll location. The employee’s
withdrawal will be effective as of the next business day. Following an employee’s
withdrawal, the Company will promptly refund to him his entire account balance
under the Plan (after payment for any Common Stock purchased before the
effective date of withdrawal). Partial withdrawals are not permitted. The
employee may not begin participation again during the remainder of the
Offering, but may enroll in a subsequent Offering in accordance with Section 5.

 

9.    Grant
of Options.    On each Offering Date, the
Company will grant to each eligible employee who is then a participant in the
Plan an option (“Option”) to purchase on the last day of such Offering (the “Exercise
Date”), at the Option Price hereinafter provided for, (a) a number of
shares of Common Stock determined by dividing such employee’s accumulated
payroll deductions on such Exercise Date by the lower of (i) 85% of the
Fair Market Value of the Common Stock on the Offering Date, or (ii) 85% of
the Fair Market Value of the Common Stock on the Exercise Date, or (b) such
other lesser maximum number of shares as shall have been established by the
Administrator in advance of the Offering; provided, however, that such Option
shall be subject to the limitations set forth below. Each employee’s Option
shall be exercisable only to the extent of such employee’s accumulated payroll
deductions on the Exercise Date. The purchase price for each share purchased
under each Option (the “Option Price”) will be 85% of the Fair Market Value of
the Common Stock on the Offering Date or the Exercise Date, whichever is less.
In addition, no Participant may purchase more than 250 shares of Common Stock
pursuant to the Plan in any calendar year, unless otherwise determined by the
Committee.

 

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Notwithstanding the foregoing, no employee may be
granted an option hereunder if such employee, immediately after the option was
granted, would be treated as owning stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Company or any Parent or Subsidiary (as defined in Section 12). For
purposes of the preceding sentence, the attribution rules of Section 424(d) of
the Code shall apply in determining the stock ownership of an employee, and all
stock which the employee has a contractual right to purchase shall be treated
as stock owned by the employee. In addition, no employee may be granted an
Option which permits his rights to purchase stock under the Plan, and any other
employee stock purchase plan of the Company and its Parents and Subsidiaries,
to accrue at a rate which exceeds $25,000 of the fair market value of such
stock (determined on the option grant date or dates) for each calendar year in
which the Option is outstanding at any time. The purpose of the limitation in
the preceding sentence is to comply with Section 423(b)(8) of the
Code and shall be applied taking Options into account in the order in which
they were granted.

 

10.    Exercise
of Option and Purchase of Shares.    Each
employee who continues to be a participant in the Plan on the Exercise Date
shall be deemed to have exercised his Option on such date and shall acquire
from the Company such number of whole shares of Common Stock reserved for the
purpose of the Plan as his accumulated payroll deductions on such date will
purchase at the Option Price, subject to any other limitations contained in the
Plan. Any amount remaining in an employee’s account at the end of an Offering
will be refunded to the employee promptly.

 

11.    Issuance
of Certificates.    Certificates representing
shares of Common Stock purchased under the Plan may be issued only in the name
of the employee, in the name of the employee and another person of legal age as
joint tenants with rights of survivorship, or in the name of a broker
authorized by the employee to be his, or their, nominee for such purpose.

 

12.    Definitions.

 

a)    The
term “Compensation” means the amount of base pay, prior to salary reduction
pursuant to either Sections 125, 132(f) or 401(k) of the Code,
but excluding overtime, commissions, incentive or bonus awards, allowances and
reimbursements for expenses such as relocation allowances or travel expenses,
income or gains on the exercise of Company stock options, and similar items.

 

b)    The
term “Designated Subsidiary” means any present or future Subsidiary (as defined
below) that has been designated by the Board to participate in the Plan. The
Board may so designate any Subsidiary, or revoke any such designation, at any
time and from time to time, either before or after the Plan is approved by
stockholders.

 

c)     The
term “Fair Market Value of the Common Stock” on any given date means the fair
market value of the Common Stock determined in good faith by the Administrator;
provided, however, that if the Common Stock is admitted to quotation on the
National Association of Securities Dealers Automated Quotation System (“NASDAQ”),
NASDAQ National System or national securities exchange, the

 

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determination shall be made
by averaging the high and the low asked price on such date. If there are no
market quotations for such date, the determination shall be made by reference
to the last date preceding such date for which there are market quotations.

 

d)    The
term “Parent” means a “parent corporation” with respect to the Company, as
defined in Section 424(e) of the Code.

 

e)    The
term “Subsidiary” means a “subsidiary corporation” with respect to the Company,
as defined in Section 424(f) of the Code.

 

13.    Rights
on Termination of Employment.    If a
participating employee’s employment terminates for any reason before the
Exercise Date for any Offering, no payroll deduction will be taken from any pay
due and owing to the employee and the balance in his account will be paid to
him or, in the case of his death, to his designated beneficiary as if he had
withdrawn from the Plan under Section 8. An employee will be deemed to
have terminated employment, for this purpose, if the corporation that employs
him, having been a Designated Subsidiary, ceases to be a Subsidiary, or if the
employee is transferred to any corporation other than the Company or a
Designated Subsidiary. An employee will not be deemed to have terminated employment,
for this purpose, if the employee is on an approved leave of absence for
military service or sickness, or for any other purpose approved by the Company,
if the employee’s right to reemployment is guaranteed either by a statute or by
contract or under the policy pursuant to which the leave of absence was granted
or if the Administrator otherwise provides in writing.

 

14.    Special
Rules.    Notwithstanding anything herein to the
contrary, the Administrator may adopt special rules applicable to the employees
of a particular Designated Subsidiary, whenever the Administrator determines
that such rules are necessary or appropriate for the implementation of the
Plan in a jurisdiction where such Designated Subsidiary has employees; provided
that such rules are consistent with the requirements of Section 423(b) of
the Code. Such special rules may include (by way of example, but not by
way of limitation) the establishment of a method for employees of a given
Designated Subsidiary to fund the purchase of shares other than by payroll
deduction, if the payroll deduction method is prohibited by local law or is
otherwise impracticable. Any special rules established pursuant to this Section 14
shall, to the extent possible, result in the employees subject to such rules having
substantially the same rights as other participants in the Plan.

 

15.    Optionees
Not Stockholders.    Neither the granting of an
Option to an employee nor the deductions from his pay shall constitute such
employee a holder of the shares of Common Stock covered by an Option under the
Plan until such shares have been purchased by and issued to him.

 

16.    Rights
Not Transferable.    Rights under the Plan are
not transferable by a participating employee other than by will or the laws of
descent and distribution, and are exercisable during the employee’s lifetime
only by the employee.

 

17.    Application
of Funds.    All funds received or held by the
Company under the Plan may be combined with other corporate funds and may be
used for any corporate purpose.

 

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18.    Adjustment
in Case of Changes Affecting Common Stock.    In
the event of a subdivision of outstanding shares of Common Stock, or the
payment of a dividend in Common Stock, the number of shares approved for the
Plan, and the share limitation set forth in Section 9, shall be increased
proportionately, and such other adjustment shall be made as may be deemed
equitable by the Administrator. In the event of any other change affecting the
Common Stock, such adjustment shall be made as may be deemed equitable by the
Administrator to give proper effect to such event.

 

19.    Amendment
of the Plan.    The Board may at any time, and
from time to time, amend the Plan in any respect, except that without the
approval, within 12 months of such Board action, by the stockholders, no
amendment shall be made increasing the number of shares approved for the Plan
or making any other change that would require stockholder approval in order for
the Plan, as amended, to qualify as an “employee stock purchase plan” under Section 423(b) of
the Code.

 

20.    Insufficient
Shares.    If the total number of shares of
Common Stock that would otherwise be purchased on any Exercise Date plus the
number of shares purchased under previous Offerings under the Plan exceeds the
maximum number of shares issuable under the Plan, the shares then available
shall be apportioned among participants in proportion to the amount of payroll
deductions accumulated on behalf of each participant that would otherwise be
used to purchase Common Stock on such Exercise Date.

 

21.    Termination
of the Plan.    The Plan may be terminated at
any time by the Board. Upon termination of the Plan, all amounts in the
accounts of participating employees shall be promptly refunded.

 

22.    Governmental
Regulations.    The Company’s obligation to sell
and deliver Common Stock under the Plan is subject to obtaining all
governmental approvals required in connection with the authorization, issuance,
or sale of such stock.

 

The Plan shall be governed by Massachusetts law
except to the extent that such law is preempted by federal law.

 

23.    Issuance
of Shares.    Shares may be issued upon exercise
of an Option from authorized but unissued Common Stock, from shares held in the
treasury of the Company, or from any other proper source.

 

24.    Tax
Withholding.    Participation in the Plan is
subject to any minimum required tax withholding on income of the participant in
connection with the Plan. Each employee agrees, by entering the Plan, that the
Company and its Subsidiaries shall have the right to deduct any such taxes from
any payment of any kind otherwise due to the employee, including shares
issuable under the Plan.

 

25.    Notification
Upon Sale of Shares.    Each employee agrees, by
entering the Plan, to give the Company prompt notice of any disposition of
shares purchased under the Plan where

 

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such
disposition occurs within two years after the date of grant of the Option
pursuant to which such shares were purchased.

 

26.    Effective
Date and Approval of Shareholders.    The Plan
was adopted by the Board of Directors on March 31, 2004 and shall take
effect on the date that it is approved by the holders of a majority of the
votes cast at a meeting of stockholders at which a quorum is present.

 

6Exhibit 10.41

 

CURAGEN CORPORATION

 

2007 STOCK INCENTIVE PLAN

 

AMENDED and RESTATED

(effective May 21, 2008)

 

1. Purpose

 

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

 

2. Eligibility

 

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

 

3. Administration and
Delegation

 

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

 

(b) Appointment
of Committees.  To the extent
permitted by applicable law, the Board may delegate any or all of its powers
under the Plan to one or more committees or subcommittees of the Board (a “Committee”).
All references in the Plan to the “Board” shall

 

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mean the Board or a
Committee of the Board or the officers referred to in Section 3(c) to
the extent that the Board’s powers or authority under the Plan have been
delegated to such Committee or officers.

 

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

 

4. Stock Available for
Awards

 

(a) Number
of Shares. Subject to adjustment under Section 10, Awards may be made
under the Plan for up to 6,000,000 shares of common stock, $0.01 par value per
share, of the Company (the “Common Stock”). For purposes of counting the number
of shares available for the grant of Awards under the Plan, (i) shares of
Common Stock covered by independent SARs shall be counted against the number of
shares available for the grant of Awards under the Plan; provided, however,
that independent SARs that may be settled in cash only shall not be so counted;
(ii) if any Award (A) expires or is terminated, surrendered or
canceled without having been fully exercised or is forfeited in whole or in
part (including as the result of shares of Common Stock subject to such Award
being repurchased by the Company at the original issuance price pursuant to a
contractual repurchase right) or (B) results in any Common Stock not being
issued (including as a result of an independent SAR that was settleable either
in cash or in stock actually being settled in cash), the unused Common Stock
covered by such Award shall again be available for the grant of Awards under
the Plan; provided, however, in the case of Incentive Stock Options (as
hereinafter defined), the foregoing shall be subject to any limitations under
the Code; and (iii) shares of Common Stock tendered to the Company by a
Participant to (A) purchase shares of Common Stock upon the exercise of an
Award or (B) satisfy tax withholding obligations (including shares
retained from the Award creating the tax obligation) shall not be added back to
the number of shares available for the future grant of Awards under the Plan.
However, in the case of Incentive Stock Options (as hereinafter defined), the
foregoing provisions shall be subject to any limitations under the Code. Shares
issued under the Plan may consist in whole or in part of authorized but
unissued shares or treasury shares.

 

(b) Sub-limits.
Subject to adjustment under Section 10, the following sub-limits on the
number of shares subject to Awards shall apply:

 

(1) Section 162(m) Per-Participant
Limit. The maximum number of shares of Common Stock with respect to which
Awards may be granted to any Participant under the Plan

 

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shall be 750,000 per
calendar year. For purposes of the foregoing limit, the combination of an
Option in tandem with an SAR (as each is hereafter defined) shall be treated as
a single Award. The per-Participant limit described in this Section 4(b)(1) shall
be construed and applied consistently with Section 162(m) of the Code
or any successor provision thereto, and the regulations thereunder (“Section 162(m)”).

 

(c) Limit
on Awards other than Options and SARS. The maximum number of shares with
respect to which Awards other than Options and SARs may be granted (determined
net of any Awards that have returned to the pool of shares available for grant
in accordance with Section 4(a)) shall be 50% of the maximum number of
shares available for Awards under the Plan as set forth in Section 4(a).

 

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

 

5. Stock Options

 

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

 

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

 

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

 

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(d) Duration
of Options. Each Option shall be exercisable at such times and subject to
such terms and conditions as the Board may specify in the applicable option
agreement, provided, however, that no Option will be granted for a term in
excess of 10 years.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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6. Limitation on
Repricing. Unless such action is approved by the Company’s stockholders: (i) no
outstanding Option granted under the Plan may be amended to provide an exercise
price per share that is lower than the then-current exercise price per share of
such outstanding Option (other than adjustments pursuant to Section 10)
and (ii) the Board may not cancel any outstanding option (whether or not
granted under the Plan) and grant in substitution therefore new Awards under
the Plan covering the same or a different number of shares of Common Stock and
having an exercise price per share lower than the then-current exercise price
per share of the cancelled option.

 

7. Stock Appreciation
Rights.

 

(a) General.
The Board may grant Awards consisting of a stock appreciation right (“SAR”)
entitling the holder, upon exercise, to receive an amount of Common Stock or
cash or a combination thereof (such form to be determined by the Board)
determined in whole or in part by reference to appreciation, from and after the
date of grant, in the fair market value of a share of Common Stock. The date as
of which such appreciation or other measure is determined shall be the exercise
date.

 

(b) Grants.
SARs may be granted in tandem with, or independently of, Options granted under
the Plan.

 

(1) Tandem
Awards. When SARs are expressly granted in tandem with Options, (i) the
SAR will be exercisable only at such time or times, and to the extent, that the
related Option is exercisable (except to the extent designated by the Board in
connection with a Reorganization Event and will be exercisable in accordance
with the procedure required for exercise of the related Option; (ii) the
SAR will terminate and no longer be exercisable upon the termination or
exercise of the related Option, except to the extent designated by the Board in
connection with a Reorganization Event and except that an SAR granted with respect
to less than the full number of shares covered by an Option will not be reduced
until the number of shares as to which the related Option has been exercised or
has terminated exceeds the number of shares not covered by the SAR; (iii) the
Option will terminate and no longer be exercisable upon the exercise of the
related SAR; and (iv) the SAR will be transferable only with the related
Option.

 

(2) Independent
SARs. An SAR not expressly granted in tandem with an Option will become
exercisable at such time or times, and on such conditions, as the Board may
specify in the SAR Award.

 

(c) Grant
Price. The grant price or exercise price of an SAR shall not be less than
100% of the Fair Market Value per share of Common Stock on the date of grant of
the SAR; provided that if the Board approves the grant of an SAR with an
exercise price to be determined on a future date, the exercise price shall be
not less than 100% of the Fair Market Value on such future date.

 

(d) Term.
The term of an SAR shall not be more than 10 years from the date of grant.

 

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(e) Exercise.
SARs may be exercised by delivery to the Company of a written notice of
exercise signed by the proper person or by any other form of notice (including
electronic notice) approved by the Board, together with any other documents
required by the Board.

 

8. Restricted Stock;
Restricted Stock Units.

 

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

 

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

 

(c) Additional
Provisions Relating to Restricted Stock.

 

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

 

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

 

6

 

(d) Additional
Provisions Relating to Restricted Stock Units.

 

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

 

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

 

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

 

9. Other Stock-Based
Awards.

 

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

 

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

 

(a) Changes
in Capitalization. In the event of any stock split, reverse stock split,
stock dividend, recapitalization, combination of shares, reclassification of
shares, spin-off or other similar change in capitalization or event, or any
dividend or distribution to holders of Common Stock other than an ordinary cash
dividend, (i) the number and class of securities available under this
Plan, (ii) the sub-limits set forth in Section 4(b), (iii) the
number and class of securities and exercise price per share of each outstanding
Option, (iv) the share- and per-share provisions and the exercise price of
each SAR, (v) the number of shares subject to and the repurchase price per
share subject to each outstanding Restricted Stock Award and (vi) the
share- and per-share-related provisions and the purchase price, if any, of each
outstanding Other Stock-Based Award, shall be equitably adjusted by the Company
(or substituted Awards may be made,

 

7

 

if applicable) in the
manner determined by the Board. Without limiting the generality of the
foregoing, in the event the Company effects a split of the Common Stock by
means of a stock dividend and the exercise price of and the number of shares
subject to an outstanding Option are adjusted as of the date of the
distribution of the dividend (rather than as of the record date for such
dividend), then an optionee who exercises an Option between the record date and
the distribution date for such stock dividend shall be entitled to receive, on
the distribution date, the stock dividend with respect to the shares of Common
Stock acquired upon such Option exercise, notwithstanding the fact that such
shares were not outstanding as of the close of business on the record date for
such stock dividend.

 

(b) Reorganization
Events.

 

(1) Definition.
A “Reorganization Event” shall mean: (a) any merger or consolidation of
the Company with or into another entity as a result of which all of the Common
Stock of the Company is converted into or exchanged for the right to receive
cash, securities or other property or is cancelled, (b) any exchange of
all of the Common Stock of the Company for cash, securities or other property
pursuant to a share exchange transaction or (c) any liquidation or dissolution
of the Company.

 

(2) Consequences
of a Reorganization Event on Awards Other than Restricted Stock Awards. In
connection with a Reorganization Event, the Board may take any one or more of
the following actions as to all or any (or any portion of) outstanding Awards
other than Restricted Stock Awards on such terms as the Board determines: (i) provide
that Awards shall be assumed, or substantially equivalent Awards shall be
substituted, by the acquiring or succeeding corporation (or an affiliate thereof),
(ii) upon written notice to a Participant, provide that the Participant’s
unexercised Options or other unexercised Awards will terminate immediately
prior to the consummation of such Reorganization Event unless exercised by the
Participant within a specified period following the date of such notice, (iii) provide
that outstanding Awards shall become exercisable, realizable, or deliverable,
or restrictions applicable to an Award shall lapse, in whole or in part prior
to or upon such Reorganization Event, (iv) in the event of a
Reorganization Event under the terms of which holders of Common Stock will
receive upon consummation thereof a cash payment for each share surrendered in
the Reorganization Event (the “Acquisition Price”), make or provide for a cash
payment to a Participant equal to the excess, if any, of (A) the
Acquisition Price times the number of shares of Common Stock subject to the
Participant’s Options or other Awards (to the extent the exercise price does
not exceed the Acquisition Price) over (B) the aggregate exercise price of
all such outstanding Options or other Awards and any applicable tax
withholdings, in exchange for the termination of such Options or other Awards, (v) provide
that, in connection with a liquidation or dissolution of the Company, Awards
shall convert into the right to receive liquidation proceeds (if applicable,
net of the exercise price thereof and any applicable tax withholdings) and (vi) any
combination of the foregoing. In taking any of the actions permitted under this
Section 10(b), the Board shall not be obligated by the Plan to treat all
Awards, or all Awards of the same type, identically.

 

8

 

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

 

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

 

11. General Provisions
Applicable to Awards

 

(a) Transferability
of Awards. Awards shall not be sold, assigned, transferred, pledged or
otherwise encumbered by the person to whom they are granted, either voluntarily
or by operation of law, except by will or the laws of descent and distribution
or, other than in the case of an Incentive Stock Option, pursuant to a
qualified domestic relations order, and, during the life of the Participant,
shall be exercisable only by the Participant; provided, however, that the Board
may permit or provide in an Award for the gratuitous transfer of the Award by
the Participant to or for the benefit of any immediate family member, family
trust or other entity established for the benefit of the Participant and/or an
immediate family member thereof if, with respect to such proposed transferee,
the Company would be eligible to use a Form S-8 for the registration of
the sale of the Common Stock subject to such Award under the Securities Act of
1933, as amended; provided, further, that the Company shall not be required to
recognize any such transfer until such time as the Participant and such
permitted transferee shall, as a condition to such transfer, deliver to the
Company a written instrument in form and substance satisfactory to the Company
confirming that such transferee shall be bound by all of the terms and
conditions of the Award. References to a Participant, to the extent relevant in
the context, shall include references to authorized transferees.

 

9

 

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

 

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

 

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

 

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

 

(f) Amendment
of Award. Except as otherwise provided in Section 11(i) with
respect to Performance Awards, the Board may amend, modify or terminate any
outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or
realization, and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Participant’s consent to such action shall be
required unless (i) the Board determines that the action, taking into
account any related action, would not materially and adversely affect the
Participant’s rights under the Plan or (ii) the change is permitted under Section 11
hereof.

 

10

 

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

 

(h) Acceleration.
Except as otherwise provided in Section 11(i), the Board may at any time
provide that any Award shall become immediately exercisable in full or in part,
free of some or all restrictions or conditions, or otherwise realizable in full
or in part, as the case may be.

 

(i) Performance
Awards.

 

(1) Grants.
Restricted Stock Awards and Other Stock-Based Awards under the Plan may be made
subject to the achievement of performance goals pursuant to this Section 11(i) (“Performance
Awards”), subject to the limit in Section 4(b)(1) on shares covered
by such grants. Performance Awards can also provide for cash payments of up to
$1,000,000 per calendar year per individual.

 

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

 

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

 

11

 

gains or losses on the
dispositions of discontinued operations, (iii) the cumulative effects of
changes in accounting principles, (iv) the writedown of any asset, and (v) charges
for restructuring and rationalization programs. Such performance measures: (i) may
vary by Participant and may be different for different Awards; (ii) may be
particular to a Participant or the department, branch, line of business,
subsidiary or other unit in which the Participant works and may cover such
period as may be specified by the Committee; and (iii) shall be set by the
Committee within the time period prescribed by, and shall otherwise comply with
the requirements of, Section 162(m). Awards that are not intended to
qualify as Performance-Based Compensation may be based on these or such other
performance measures as the Board may determine.

 

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

 

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

 

12. Miscellaneous

 

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

 

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

 

(c) Effective
Date and Term of Plan. The Plan shall become effective on the date the Plan
is approved by the Company’s stockholders (the “Effective Date”). No Awards
shall be granted under the Plan after the expiration of 10 years from the
Effective Date, but Awards previously granted may extend beyond that date.

 

(d) Amendment
of Plan. The Board may amend, suspend or terminate the Plan or any portion
thereof at any time provided that (i) to the extent required by Section 162(m),
no Award granted to a Participant that is intended to comply with Section 162(m) after
the date of such amendment shall become exercisable, realizable or vested, as
applicable to such Award,

 

12

 

unless and until such
amendment shall have been approved by the Company’s stockholders if required by
Section 162(m) (including the vote required under Section 162(m));
(ii) no amendment that would require stockholder approval under the rules of
the NASDAQ Stock Market (“NASDAQ”) may be made effective unless and until such
amendment shall have been approved by the Company’s stockholders; and (iii) if
the NASDAQ amends its corporate governance rules so that such rules no
longer require stockholder approval of material amendments to equity
compensation plans, then, from and after the effective date of such amendment
to the NASDAQ rules, no amendment to the Plan (A) materially increasing
the number of shares authorized under the Plan (other than pursuant to Section 4(c) or
10), (B) expanding the types of Awards that may be granted under the Plan,
or (C) materially expanding the class of participants eligible to
participate in the Plan shall be effective unless stockholder approval is
obtained. In addition, if at any time the approval of the Company’s
stockholders is required as to any other modification or amendment under Section 422
of the Code or any successor provision with respect to Incentive Stock Options,
the Board may not effect such modification or amendment without such approval.
Unless otherwise specified in the amendment, any amendment to the Plan adopted
in accordance with this Section 12(d) shall apply to, and be binding
on the holders of, all Awards outstanding under the Plan at the time the
amendment is adopted, provided the Board determines that such amendment does
not materially and adversely affect the rights of Participants under the Plan. No
Award shall be made that is conditioned upon stockholder approval of any
amendment to the Plan.

 

(e) Provisions
for Foreign Participants. The Board may modify Awards or Options granted to
Participants who are foreign nationals or employed outside the United States or
establish subplans or procedures under the Plan to recognize differences in
laws, rules, regulations or customs of such foreign jurisdictions with respect
to tax, securities, currency, employee benefit or other matters.

 

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

 

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

 

13

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