Document:

<PAGE>

                                                                   Exhibit 10.12

                       AMENDMENT NO. 1, CONSENT AND WAIVER

                            Dated as of May 19, 2003

                                       TO

                      AMENDED AND RESTATED CREDIT AGREEMENT

                            Dated as of May 21, 2002

                                      among

                                 AUTOZONE, INC.,
                                  as Borrower,

                               THE SEVERAL LENDERS
                         FROM TIME TO TIME PARTY THERETO

                                       and

                              FLEET NATIONAL BANK,
                             as Administrative Agent

                                       and

                              as Syndication Agent

                             FLEET SECURITIES, INC.,
                           J.P. MORGAN SECURITIES INC.
                                       and
                         BANC OF AMERICA SECURITIES LLC
                              as Co-Lead Arrangers

                             FLEET SECURITIES, INC.
                                       and
                           J.P. MORGAN SECURITIES INC.
                               as Co-Book Runners

                                       and

                             BANK OF AMERICA, N.A.,
                               CITICORP USA, INC.
                                       and
                                  SUNTRUST BANK
                             as Documentation Agents

                                       19
<PAGE>

  AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT, CONSENT AND WAIVER

         THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT, CONSENT
AND WAIVER (this "Amendment"), dated as of May 19, 2003, is entered into by and
among AUTOZONE, INC., a Nevada corporation (the "Borrower"), the Lenders
identified on the signature pages hereto, FLEET NATIONAL BANK, as Administrative
Agent for the Lenders (in such capacity, the "Administrative Agent") and as
Syndication Agent (in such capacity, the "Syndication Agent"). Terms used but
not otherwise defined herein shall have the meanings provided in the Credit
Agreement referred to below.

         W I T N E S S E T H:

         WHEREAS, pursuant to an Amended and Restated Credit Agreement dated as
of May 21, 2002 (the "Credit Agreement") among the Borrower, the Lenders party
thereto, the Administrative Agent and JPMorgan Chase Bank, as Syndication Agent,
the Lenders have, among other things, extended commitments to make a revolving
credit facility available to the Borrower;

         WHEREAS, the Borrower has requested that the Lenders amend the
Termination Date, as it applies to the Revolving Loans, Swingline Loans and
Competitive Loans, to extend such date from May 20, 2003 to May 18, 2004;

         WHEREAS, the Borrower has informed the Administrative Agent and the
Lenders that the Borrower is considering an internal reorganization that would
result in the AutoZone parent company changing its state of incorporation from
Nevada to Delaware and that will be accomplished either by (i) the Borrower
merging with and into a new wholly-owned Subsidiary of the Borrower, which
Subsidiary (x) will be incorporated in the state of Delaware and the surviving
corporation of such merger, (y) shall, as a result of such merger, assume by
operation of law all of the rights and obligations of the Borrower under the
Credit Agreement, and (z) shall, immediately after the consummation of such
merger, have management and controlling ownership substantially similar to that
of the Borrower immediately prior to the consummation of such merger or (ii) the
Borrower becoming a wholly-owned Subsidiary of a new holding company
incorporated in the State of Delaware, the outstanding capital stock of which
holding company will be owned by the current shareholders of the Borrower
(either such transaction, the "Reorganization");

         WHEREAS, the Borrower has requested that the Lenders consent to the
Reorganization and any non-compliance with the Credit Agreement that may arise
directly in connection with consummating the Reorganization; and

         WHEREAS, the Borrower, the Lenders (including the Consenting Revolving
Lenders (as such term is defined below)), the Administrative Agent and the
Syndication Agent have agreed to amend the Credit Agreement as set forth herein;

<PAGE>

         NOW, THEREFORE, in consideration of the agreements herein contained,
the parties hereby agree as follows:

         PART I
         DEFINITIONS

         SUBPART 1.1. Certain Definitions. Unless otherwise defined herein or
the context otherwise requires, the following terms used in this Amendment,
including its preamble and recitals, have the following meanings:

         "Amendment No. 1 Effective Date" as defined in Subpart 4.1.

                                     PART II
         AMENDMENTS TO CREDIT AGREEMENT

         Effective as of the applicable date set forth below (and in each case
subject to the occurrence of the Amendment No. 1 Effective Date), the Credit
Agreement shall be amended in accordance with this Part II. Except as so
amended, the Credit Agreement shall continue in full force and effect.

         SUBPART 2.1. Amendment to Section 1.1.

         (i)      Effective as of the Amendment No. 1 Effective Date, Section
1.1 of the Credit Agreement is amended by replacing in its entirety the existing
definition for the defined term set forth below with the following:

                  "Syndication Agent" means Fleet National Bank, together with
any successor and assigns.

         (ii)     Effective as of May 20, 2003, Section 1.1 of the Credit
Agreement is amended by replacing in its entirety the existing definition for
the defined term set forth below with the following:

                  "Termination Date" means (i) as to the Revolving Loans,
         Swingline Loans and Competitive Loans, May 18, 2004, as such date may
         be extended pursuant to Section 3.4 and (ii) as to the Term Loan,
         November 22, 2004.

         SUBPART 2.2. Amendment to Section 5.1. Effective as of the Amendment
No. 1 Effective Date, (i) the first and third sentences of Section 5.1 of the
Credit Agreement are amended by replacing "August 27, 2001" with "August 31,
2002" in each instance, (ii) the third sentence of Section 5.1 of the Credit
Agreement is amended by replacing "Closing Date" with "Amendment No. 1 Effective
Date" in each instance, and (iii) the following sentence is added to the end of
Section 5.1:

                                       2
<PAGE>

                  "Since August 31, 2002, through and including the Amendment
           No. 1 Effective Date, there has not occurred an event or condition
           which has had a Material Adverse Effect."

         SUBPART 2.3. Amendment to Section 5.5. Effective as of the Amendment
No. 1 Effective Date, Section 5.5 of the Credit Agreement is amended by
inserting the following parenthetical immediately after the reference to
Schedule 5.5:

                  "(as updated in the Borrower's Form 10-Q filed with the
           Securities and Exchange Commission for the quarterly period ended
           February 15, 2003)"

         SUBPART 2.4. Replacement of Schedule 2.1(a). Effective as of May 20,
2003, Schedule 2.1(a) to the Credit Agreement is deleted in its entirety and
replaced with a new Schedule 2.1(a) in the form of Schedule 2.1(a) attached
hereto.

                                    PART III
                 TERMINATION DATE EXTENSION; CONSENT AND WAIVER

         SUBPART 3.1 Termination Date Extension. Upon the occurrence of the
Amendment No. 1 Effective Date, each of the Lenders with a Revolving Commitment
that executes this Amendment (collectively, the "Consenting Revolving Lenders")
hereby agrees to extend its Revolving Commitment for an additional 364-day
period (i.e., from May 20, 2003 to May 18, 2004) in an amount equal to such
Lender's Revolving Commitment amount as set forth on Schedule 2.1(a) attached
hereto (as such amount may be reduced or increased from time to time in
accordance with the provisions of the Credit Agreement), such commitment amount
to be effective as of May 20, 2003.

         SUBPART 3.2 Consent and Waiver. Provided that the consummation of the
Reorganization shall not result in a material and adverse impact to the
interests of the Administrative Agent and/or the Lenders under the Credit
Agreement and the Notes, and subject to the following provisions of this Subpart
3.2, upon the occurrence of the Amendment No. 1 Effective Date the Lenders
hereby consent to the Reorganization and (x) waive any non-compliance with
Sections 7.3(b), 7.3(c) or 10.3(a) of the Credit Agreement by the Borrower and
its Subsidiaries and/or (y) waive any Event of Default resulting from a Change
of Control of the Borrower, in each case that may arise directly in connection
with consummating the Reorganization; provided, however, that the foregoing
waiver with respect to any applicable Change of Control is subject to the
requirements that (i) the Borrower become a wholly-owned subsidiary of a
corporation organized in the State of Delaware as a result of such Change of
Control and (ii) that the management and controlling ownership of such parent
corporation immediately after the consummation of the Reorganization be
substantially similar to that of the Borrower immediately prior to the
consummation of the Reorganization. In addition, the consent and waivers
contained in this Subpart 3.2 shall not act as a consent to any other action or
inaction by the Borrower, and the waivers set forth herein are one-time waivers
and shall not be construed to be (i) waivers as to future non-compliance with
the terms of the Credit Agreement, (ii)

                                       3
<PAGE>

waivers of any other Default or Event of Default that may exist, (iii) an
amendment or modification of the Credit Agreement, or (iv) a waiver of any other
right, power, or remedy of any Lender or the Administrative Agent under, or any
provision contained in, the Credit Agreement or any other Credit Document, in
each case except as specifically provided herein, and the Administrative Agent
and the Lenders hereby reserve all of their rights, powers and remedies under
the Credit Agreement, after giving effect to this Amendment and applicable law.
In addition, the Borrower hereby agrees (i) to provide the Administrative Agent
and the Lenders with such additional information and documents related to the
Reorganization as may be reasonably requested by the Administrative Agent and/or
any Lender and (ii) to execute within a reasonable time after consummation of
the Reorganization (not to exceed sixty (60) days unless otherwise agreed by the
Administrative Agent) such appropriate amendments, corporate authority documents
and other supporting documents to or under the Credit Agreement evidencing any
changes made necessary by the consummation of the Reorganization (including,
without limitation, (x) in the event the Borrower merges with and into a new
wholly-owned Subsidiary of the Borrower, a legal opinion of Borrower's counsel,
in form and substance reasonably acceptable to the Administrative Agent's legal
counsel, addressing the enforceability of the Credit Documents with respect to
such surviving Subsidiary and (y) in the event that the Borrower becomes a
wholly-owned subsidiary of a new parent holding company incorporated in
Delaware, a guaranty by such new parent holding company of the Borrower's
obligations under the Credit Agreement) and such other changes as may be
mutually agreed to by the Borrower (or its successor, if applicable) and the
parties hereto, each in form and substance reasonably acceptable to the Borrower
(or its successor, if applicable), the Administrative Agent and the Required
Lenders. The Borrower further acknowledges that the consent and waivers
evidenced in this Subpart 3.2 are given in reliance upon the foregoing
conditions and agreements and shall be deemed revoked if any such condition or
agreement is breached.

         PART IV
         CONDITIONS TO EFFECTIVENESS

         SUBPART 4.1. Amendment No. 1 Effective Date. This Amendment shall be
and become effective as of the date hereof (the "Amendment No. 1 Effective
Date") when all of the applicable conditions set forth below in this Part IV
shall have been satisfied.

         SUBPART 4.2. Execution of Counterparts of Amendment. The Administrative
Agent shall have received counterparts (or other evidence of execution,
including telephonic message, satisfactory to the Administrative Agent) of this
Amendment, which collectively shall have been duly executed on behalf of each of
the Borrower, the Administrative Agent, the Syndication Agent and the Required
Lenders and, to the extent not already included in the Required Lenders, each
Lender agreeing to extend its Revolving Commitment in accordance with the terms
hereof; provided, however, that, notwithstanding the foregoing, Subpart 3.2
shall not become effective until such time as the Administrative Agent has
received signature pages to this Amendment duly executed on behalf of each of
the Lenders, as well as on behalf of the Borrower, the Administrative Agent and
the Syndication Agent (it being understood that certain Lender signature pages
may be received on a date later than the date hereof).

                                       4
<PAGE>

         SUBPART 4.3. Legal Details, Etc. The Administrative Agent, for the
benefit of the Lenders, and its counsel shall have received, and be satisfied
with, any supporting documentation as the Administrative Agent may reasonably
request as of the Amendment No. 1 Effective Date.

         SUBPART 4.4  Payment of Fees. The Administrative Agent shall have
received the agreed-upon upfront fees for the Consenting Revolving Lenders
(which upfront fees shall be for the benefit of the Consenting Revolving
Lenders) and all other fees and expenses owing in connection with this
Amendment.

         PART V
         MISCELLANEOUS

         SUBPART 5.1. Cross-References. References in this Amendment to any Part
or Subpart are, unless otherwise specified, to such Part or Subpart of this
Amendment.

         SUBPART 5.2. Instrument Pursuant to Credit Agreement. This Amendment is
a Credit Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of the Credit Agreement.

         SUBPART 5.3. References in Other Credit Documents. At such time as the
amendments to the Credit Agreement set forth in Part II hereof shall become
effective pursuant to the terms of Part II and Subpart 4.1, all references in
the Credit Documents to the "Credit Agreement" shall be deemed to refer to the
Credit Agreement as amended by this Amendment.

         SUBPART 5.4. Representations and Warranties. The Borrower hereby
represents and warrants that:

         (a)      It has taken all necessary action to authorize the execution,
         delivery and performance of this Amendment.

         (b)      This Amendment has been duly executed and delivered by the
         Borrower and constitutes the Borrower's legal, valid and binding
         obligations, enforceable in accordance with its terms, except as such
         enforceability may be subject to (i) bankruptcy, insolvency,
         reorganization, fraudulent conveyance or transfer, moratorium or
         similar laws affecting creditors' rights generally and (ii) general
         principles of equity (regardless of whether such enforceability is
         considered in a proceeding at law or in equity).

         (c)      No consent, approval, authorization or order of, or filing,
         registration or qualification with, any court or governmental authority
         or third party is required in connection with the execution, delivery
         or performance by the Borrower of this

                                       5
<PAGE>

         Amendment, except such filing of a copy of this Amendment as may be
         required by the Securities Exchange Act of 1934, as amended, or
         regulations issued pursuant thereto.

         (d)      The representations and warranties set forth in Section 5 of
         the Credit Agreement are, subject to the limitations set forth therein,
         true and correct in all material respects as of the Amendment No. 1
         Effective Date (except for those which expressly relate to an earlier
         date).

         (e)      Subsequent to the execution and delivery of this Amendment and
         after giving effect hereto, no Default or Event of Default exists under
         the Amended Credit Agreement or any of the other Credit Documents.

         (f)      All of the provisions of the Credit Documents, except as
         amended hereby, are in full force and effect.

         SUBPART 5.5. No Other Changes. Except as expressly modified and amended
in this Amendment, all the terms, provisions and conditions of the Credit
Documents shall remain unchanged and shall continue in full force and effect.

         SUBPART 5.6. Counterparts/Telecopy. This Amendment may be executed by
the parties hereto in several counterparts, each of which shall be deemed to be
an original and all of which shall constitute together but one and the same
agreement. Delivery of an executed counterpart by telecopy shall be effective as
an original and shall constitute a representation that an original will be
delivered.

         SUBPART 5.7. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAW PRINCIPLES THEREOF.

         SUBPART 5.8. Successors and Assigns. This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

         SUBPART 5.9. ENTIRETY. THIS AMENDMENT, THE AMENDED CREDIT AGREEMENT AND
THE OTHER CREDIT DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND
SUPERSEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE
SUBJECT MATTER HEREOF. THESE CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

                                       6EMPLOYEE STOCK PURCHASE PLAN

 

EXHIBIT 4.1

ANDRX CORPORATION

EMPLOYEE STOCK PURCHASE PLAN

(as amended)

     
The Board of Directors of Andrx Corporation, a
Delaware corporation (the “Company”) adopted this
amendment to the Employee Stock Purchase Plan (the
“Plan”) effective June 13, 2003, to enable
eligible employees of the Company and its participating
Affiliates (as defined below), through payroll deductions, to
purchase shares of the Company’s Andrx Group common stock,
par value $0.001 per share (the “Common Stock”). The
Plan is for the benefit of the employees of Andrx Corporation
and any participating Affiliates. The Plan is intended to
benefit the Company by increasing the employees’ interest
in the Company’s growth and success and encouraging
employees to remain in the employ of the Company or its
participating Affiliates. The provisions of the Plan are set
forth below:

1. SHARES SUBJECT TO THE PLAN.

     
Subject to adjustment as provided in
Section 26 below, the aggregate number of shares of Common
Stock that may be made available for purchase by participating
employees under the Plan is 650,000. The shares issuable under
the Plan may, in the discretion of the Board of Directors of the
Company (the “Board”), be authorized but unissued
shares, treasury shares or issued and outstanding shares that
are purchased in the open market.

2. ADMINISTRATION.

     
The Plan shall be administered by the Board or by
a Committee appointed by the Board (the “Committee”).
No member of the Board or the Committee shall be liable for any
action or determination made in good faith with respect to the
Plan.

3. INTERPRETATION.

     
It is intended that the Plan will meet the
requirements for an “employee stock purchase plan”
under Section 423 of the Internal Revenue Code of 1986 (the
“Code”), and it is to be so applied and interpreted.
Subject to the express provisions of the Plan, the Committee
shall have authority to interpret the Plan, to prescribe, amend
and rescind rules relating to it, and to make all other
determinations necessary or advisable in administering the Plan,
all of which determinations will be final and binding upon all
persons.

4. ELIGIBLE EMPLOYEES.

     
Any employee of the Company or any of its
participating Affiliates may participate in the Plan, except the
following, who are ineligible to participate: (a) an
employee who has been employed by the Company or any of its
participating Affiliates for less than three months as of the
beginning of a Purchase Period (as defined in Section 8
below); (b) an employee whose customary employment is for
less than nine months in any calendar year; (c) an employee
whose customary employment is 20 hours or less per week; and
(d) an employee who, after exercising his or her rights to
purchase shares under the Plan, would own shares of Common Stock
(including shares that may be acquired under any outstanding
options) representing five percent or more of the total combined
voting power or value of all classes of stock of the Company
(for purposes of this Section 4, the rules of
Section 424(d) of the Code shall apply in determining the
stock ownership of any employee). The term “participating
Affiliate” means any company or other trade or business
that is a subsidiary of the Company (determined in accordance
with the principles of Sections 424(f) of the Code and the
regulations thereunder). The Board may at any time in its sole
discretion, if it deems it advisable to do so, terminate the
participation of the employees of a particular participating
Affiliate.

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5. PARTICIPATION IN THE PLAN.

     
An eligible employee may become a participating
employee in the Plan by completing an election to participate in
the Plan on a form provided by the Company and submitting that
form to the person designated on the form to receive such form
for the Company. The form will authorize payroll deductions (as
provided in Section 6 below) and authorize the purchase of
shares of Common Stock for the employee’s account in
accordance with the terms of the Plan. Enrollment will become
effective upon the first day of the first Offering Period.

6. PAYROLL DEDUCTIONS.

     
At the time an eligible employee submits his or
her election to participate in the Plan (as provided in
Section 5 above), the employee shall elect to have
deductions made from his or her pay, on each pay day following
his or her enrollment in the Plan, and for as long as he or she
shall participate in the Plan. The deductions will be credited
to the participating employee’s account under the Plan in
any whole percent amount, but in no event less than one percent
(1%) nor more than fifteen percent (15%) (or such lower
percentage as may be established by the Board or Committee), not
to exceed $25,000 per year. An employee may not during any
Purchase Period change his or her percentage of payroll
deduction for that Purchase Period, nor may an employee withdraw
any contributed funds, other than in accordance with
Sections 15 through 20 below.

7. INTEREST ON PAYROLL DEDUCTIONS.

     
The Company and participating Affiliates will
cause to be maintained a record of amounts credited to each
participating employee authorizing a payroll deduction pursuant
to Section 6. The Company may, but is not required to,
credit interest on the balance of the employees’ accounts
during the Offering Period. If interest is credited to such
accounts, the rate may be a fixed or variable rate determined by
the Company.

8. OFFERING AND PURCHASE PERIODS.

     
The periods during which the shares of Common
Stock may be purchased (the “Offering Period”) will be
24 months or such other period as is determined by the
Committee. Within the Offering Period, there will be four or
more “Purchase Periods.” Purchase Periods are the time
periods determined by the Committee at the end of which the
shares of Common Stock may be purchased by the employees based
on the salary deductions of such periods. The initial Offering
Period shall commence on the date determined by the Committee
and end on a date determined by the Committee, and every
Offering Period thereafter, shall commence immediately after the
prior Offering Period ends and shall be a 24-month period until
changed by the Committee. The initial Purchase Period shall
commence on the first day of the Offering Period and end on at
the end of the sixth month from the commencement of the Purchase
Period until changed by the Committee, and every Purchase Period
thereafter, shall commence immediately after the prior Purchase
Period ends and shall be a six month period until changed by the
Committee.

9. RIGHTS TO PURCHASE COMMON STOCK; PURCHASE
PRICE.

     
Rights to purchase shares of Common Stock will be
deemed granted to participating employees as of the first
trading day of each Offering Period. The purchase price of each
share of Common Stock (the “Purchase Price”) shall be
the lesser of 85 percent of the fair market value of the
Common Stock (i) on the first trading day of the Purchase
Period or (ii) on the last trading day of the Purchase
Period, unless the Purchase Price is otherwise established by
the Committee; provided that in no event shall the Purchase
Price be less than the amount determined pursuant to
subparagraphs (i) and (ii) above or the par value of the
Common Stock. For purposes of the Plan, “fair market
value” means the value of each share of Common Stock
subject to the Plan determined as follows: if on the
determination date the shares of Common Stock are listed on an
established national or regional stock exchange, are admitted to
quotation on the National Association of Securities Dealers
Automated Quotation system, or are publicly

2

 

traded on an established securities market, the
fair market value of the shares of Common Stock shall be the
closing price of the shares of Common Stock on such exchange or
in such market (the highest such closing price if there is more
than one such exchange or market) on the trading day immediately
preceding the determination date (or if there is no such
reported closing price, the fair market value shall be the mean
between the highest bid and lowest asked prices or between the
high and low sale prices on such trading day) or, if no sale of
the shares of Common Stock is reported for such trading day, on
the next preceding day on which any sale shall have been
reported. If the shares of Common Stock are not listed on such
an exchange, quoted on such system or traded on such a market,
fair market value shall be determined by the Board in good faith.

10. TIMING OF PURCHASE; PURCHASE LIMITATION.

     
Unless a participating employee has given prior
written notice terminating such employee’s participation in
the Plan, or the employee’s participation in the Plan has
otherwise been terminated as provided in Sections 16
through 20 below, such employee will be deemed to have exercised
automatically his or her right to purchase Common Stock on the
last trading day of the Purchase Period (except as provided in
Section 15 below) for the number of shares of Common Stock
which the accumulated funds in the employee’s account at
that time will purchase at the Purchase Price, subject to the
participation adjustment provided for in Section 14 below
and subject to adjustment under Section 26 below.
Notwithstanding any other provision of the Plan, no employee may
purchase in any one calendar year under the Plan and all other
“employee stock purchase plans” of the Company and its
participating Affiliates shares of Common Stock having an
aggregate fair market value in excess of $25,000, determined as
of the first trading date of the Purchase Period as to shares
purchased during such period. Effective upon the last trading
day of the Purchase Period, a participating employee will become
a stockholder with respect to the shares purchased during such
period, and will thereupon have all dividend, voting and other
ownership rights incident thereto. Notwithstanding the
foregoing, no shares shall be sold pursuant to the Plan unless
the Plan is approved by the Company’s stockholders in
accordance with Section 25 below.

11. ISSUANCE OF STOCK CERTIFICATES.

     
As of the last trading day of the Purchase
Period, a participating employee will be credited with the
number of shares of Common Stock purchased for his or her
account under the Plan during such Offering Period. Shares
purchased under the Plan will be held in the custody of an agent
(the “Agent”) appointed by the Committee. The Agent
may hold the shares purchased under the Plan in stock
certificates, in nominee names and may commingle shares held in
its custody in a single account or stock certificates without
identification as to individual participating employees. A
participating employee may, at any time following his or her
purchase of shares under the Plan, by written notice, instruct
the Agent to have all or part of such shares reissued in the
participating employee’s own name and have the stock
certificate delivered to the employee.

12. WITHHOLDING OF TAXES.

     
To the extent that a participating employee
realizes ordinary income in connection with a sale or other
transfer of any shares of Common Stock purchased under the Plan,
the Company may withhold amounts needed to cover such taxes from
any payments otherwise due and owing to the participating
employee or from shares that would otherwise be issued to the
participating employee hereunder. Any participating employee who
sells or otherwise transfers shares purchased under the Plan
within two years after the beginning of the Offering Period in
which the shares were purchased must within 30 days of such
transfer notify the payroll department of the Company in writing
of such transfer.

13. ACCOUNT STATEMENTS.

     
The Company will cause the Agent to deliver to
each participating employee a statement for each Purchase Period
during which the employee purchases shares of Common Stock under
the Plan, but no more frequently than quarterly, reflecting the
amount of payroll deductions during the Purchase Period, the

3

 

number of shares purchased for the
employee’s account, the price per share of the shares
purchased for the employee’s account and the number of
shares held for the employee’s account at the end of the
Purchase Period.

14. PARTICIPATION ADJUSTMENT.

     
If in any Purchase Period the number of unsold
shares that may be made available for purchase under the Plan
pursuant to Section 1 above is insufficient to permit
exercise of all rights deemed exercised by all participating
employees pursuant to Section 10 above, a participation
adjustment will be made, and the number of shares purchasable by
all participating employees will be reduced proportionately. Any
funds then remaining in a participating employee’s account
after such exercise will be refunded to the employee.

15. CHANGES IN ELECTIONS TO PURCHASE.

     
(a) A participating employee may, at any
time prior to the last day of the Purchase Period, by written
notice to the Company, direct the Company to cease payroll
deductions (or, if the payment for shares is being made through
periodic cash payments, notify the Company that such payments
will be terminated), in accordance with the following
alternatives:

		
	 	     
    (i) The employee’s option to purchase
    shall be reduced to the number of shares which may be purchased,
    as of the last day of the Purchase Period, with the amount then
    credited to the employee’s account; or
    
	 
	 	     
    (ii) Withdraw the amount in such
    employee’s account and terminate such employee’s
    option to purchase.
    

     
(b) Any participating employee may increase
or decrease his or her payroll deduction or periodic cash
payments, to take effect on the first day of the next Purchase
Period, by delivering to the Company a new form regarding
election to participate in the Plan under Section 5 above.

16. TERMINATION OF EMPLOYMENT.

     
In the event a participating employee voluntarily
leaves the employ of the Company or a participating Affiliate,
otherwise than by death or retirement (under Section 17
below) prior to the last day of the Purchase Period, the amount
in the employee’s account will be distributed and the
employee’s option to purchase will terminate.

17. RETIREMENT.

     
In the event a participating employee who has an
option to purchase shares leaves the employ of the Company or a
participating Affiliate because of retirement under a plan of
the Company or a participating Affiliate, the participating
employee may elect, within 30 days after the date of such
retirement, one of the following alternatives:

		
	 	     
    (a) To make up any deficiency in the
    employee’s account resulting from the termination of
    payroll deductions by an immediate cash payment;
    
	 
	 	     
    (b) The employee’s option to purchase
    shall be reduced to the number of shares which may be purchased,
    as of the last day of the Purchase Period, with the amount then
    credited to the employee’s account; or
    
	 
	 	     
    (c) Withdraw the amount in such
    employee’s account and terminate such employee’s
    option to purchase.
    

     
In the event the participating employee does not
make an election within the aforesaid 30-day period, he or she
will be deemed to have elected subsection (c) above.

4

 

18. LAY-OFF, AUTHORIZED LEAVE OF ABSENCE OR
DISABILITY.

     
Payroll deductions for shares for which a
participating employee has an option to purchase may be
suspended during any period of absence of the employee from work
due to lay-off, authorized leave of absence or disability or, if
the employee so elects, periodic payments for such shares may
continue to be made in cash.

     
If such employee returns to active service prior
to the last day of the Purchase Period, the employee’s
payroll deductions will be resumed and if said employee did not
make periodic cash payments during the employee’s period of
absence, the employee shall, by written notice to the
Company’s payroll department within 10 days after the
employee’s return to active service, but not later than the
last day of the Purchase Period, elect:

		
	 	     
    (a) To make up any deficiency in the
    employee’s account resulting from a suspension of payroll
    deductions by an immediate cash payment;
    
	 
	 	     
    (b) To not make up such deficiency, in which
    event the number of shares to be purchased by the employee shall
    be reduced to the number of whole shares which may be purchased
    with the amount, if any, then credited to the employee’s
    account plus the aggregate amount, if any, of all payroll
    deductions to be made thereafter; or
    
	 
	 	     
    (c) To withdraw the amount in the
    employee’s account and terminate the employee’s option
    to purchase.
    

     
A participating employee on lay-off, authorized
leave of absence or disability on the last day of the Purchase
Period shall deliver written notice to his or her employer on or
before the last day of the Purchase Period, electing one of the
alternatives provided in the foregoing clauses (a), (b) and
(c) of this Section 18.

     
If any employee fails to deliver the required
written notice within 10 business days after the
employee’s return to active service or by the last day of
the Purchase Period, whichever is earlier, the employee shall be
deemed to have elected subsection (c) above.

     
If the period of a participating employee’s
lay-off, authorized leave of absence or disability shall
terminate on or before the last day of the Purchase Period, and
the employee shall not resume active employment with the Company
or a participating Affiliate, the employee shall receive a
distribution in accordance with the provisions of
Section 16 of this Plan.

19. DEATH.

     
In the event of the death of a participating
employee while the employee’s option to purchase shares is
in effect, the legal representatives of such employee may,
within three months after the employee’s death (but no
later than the last day of the Purchase Period) by written
notice to the Company or participating Affiliate, elect one of
the following alternatives:

		
	 	     
    (a) To make up any deficiency in the
    employee’s account resulting from a suspension of payroll
    deductions by an immediate cash payment;
    
	 
	 	     
    (b) The employee’s option to purchase
    shall be reduced to the number of shares which may be purchased,
    as of the last day of the Purchase Period, with the amount then
    credited to the employee’s account; or
    
	 
	 	     
    (c) To withdraw the amount in such
    employee’s account and terminate such employee’s
    option to purchase.
    

     
In the event the legal representatives of such
employee fail to deliver such written notice to the Company or
participating Affiliate within the prescribed period, the
election to purchase shares shall terminate and the amount, then
credited to the employee’s account shall be paid to such
legal representatives.

5

 

20. TERMINATION OF PARTICIPATION.

     
A participating employee will be refunded all
moneys in his or her account, and his or her participation in
the Plan will be terminated if either (a) the Board elects
to terminate the Plan as provided in Section 25 below, or
(b) the employee ceases to be eligible to participate in
the Plan under Section 4 above. As soon as practicable
following termination of an employee’s participation in the
Plan, the Company will deliver to the employee a check
representing the amount in the employee’s account and a
stock certificate representing the number of whole shares held
in the employee’s account. Once terminated, participation
may not be reinstated for the then current Purchase Period or
the next two subsequent Purchase Periods, but, if otherwise
eligible, the employee may elect to participate in Purchase
Periods thereafter.

21. ASSIGNMENT.

     
No participating employee may assign his or her
rights to purchase shares of Common Stock under the Plan,
whether voluntarily, by operation of law or otherwise. Any
payment of cash or issuance of shares of Common Stock under the
Plan may be made only to the participating employee (or, in the
event of the employee’s death, to the employee’s
designated beneficiary (pursuant to such procedures as the
Committee establishes) or absent such designation to the
employee’s estate). Once a stock certificate has been
issued to the employee or for his or her account, such
certificate may be assigned the same as any other stock
certificate.

22. APPLICATION OF FUNDS.

     
All funds received or held by the Company under
the Plan shall be deposited with the Agent for the account of
the participating employees. Participating employees’
accounts will not be segregated.

23. NO RIGHT TO CONTINUED EMPLOYMENT.

     
Neither the Plan nor any right to purchase Common
Stock under the Plan confers upon any employee any right to
continued employment with the Company or any of its
participating Affiliates, nor will an employee’s
participation in the Plan restrict or interfere in any way with
the right of the Company or any of its participating Affiliates
to terminate the employee’s

24. AMENDMENT OF PLAN.

     
The Board may, at any time, amend the Plan in any
respect (including an increase in the percentage specified in
Section 9 above used in calculating the Purchase Price);
provided, however, that without approval of the stockholders of
the Company no amendment shall be made (a) increasing the
number of shares specified in Section 1 above that may be
made available for purchase under the Plan (except as provided
in Section 26 below) or (b) changing the eligibility
requirements for participating in the Plan.

25. EFFECTIVE DATE; TERM AND TERMINATION OF
THE PLAN.

     
The Plan shall be effective as of the date of
adoption by the Board, which date is set forth below, subject to
approval of the Plan by a majority of the votes present and
entitled to vote at a duly held meeting of the stockholders of
the Company at which a quorum representing a majority of all
outstanding voting stock is present, either in person or by
proxy; provided, however, that upon approval of the Plan by the
stockholders of the Company as set forth above, all rights to
purchase shares granted under the Plan on or after the effective
date shall be fully effective as if the stockholders of the
Company had approved the Plan on the effective date. If the
stockholders fail to approve the Plan on or before one year
after the effective date, the Plan shall terminate, any rights
to purchase shares granted hereunder shall be null and void and
of no effect and all contributed funds shall be refunded to
participating employees. The Board may terminate the Plan at any
time and for any reason or for no reason, provided that such
termination shall not impair any rights of participating
employees that have vested at the time of termination. In any
event, the Plan shall, without further action of the Board,
terminate ten years after the date of adoption of

6

 

the Plan by the Board or, if earlier, at such
time as all shares of Common Stock that may be made available
for purchase under the Plan pursuant to Section 1 above
have been issued.

26. EFFECT OF CHANGES IN CAPITALIZATION.

     
(a) Changes in Common Stock.

		
	 	     
    If the number of outstanding shares of Common
    Stock is increased or decreased or the shares of Common Stock
    are changed into or exchanged for a different number or kind of
    shares or other securities of the Company by reason of any
    recapitalization, reclassification, stock split, reverse split,
    combination of shares, exchange of shares, stock dividend, or
    other distribution payable in capital stock, or other increase
    or decrease in such shares effected without receipt of
    consideration by the Company occurring after the effective date
    of the Plan, the number and kinds of shares that may be
    purchased under the Plan shall be adjusted proportionately and
    accordingly by the Company. In addition, the number and kind of
    shares for which rights are outstanding shall be similarly
    adjusted so that the proportionate interest of a participating
    employee immediately following such event shall, to the extent
    practicable, be the same as immediately prior to such event. Any
    such adjustment in outstanding rights shall not change the
    aggregate Purchase Price payable by a participating employee
    with respect to shares subject to such rights, but shall include
    a corresponding proportionate adjustment in the Purchase Price
    per share.
    

     
(b) Reorganization in Which the Company
is the Surviving Corporation.

		
	 	     
    Subject to Subsection (c) of this
    Section 26, if the Company shall be the surviving
    corporation in any reorganization, merger or consolidation of
    the Company with one or more other corporations, all outstanding
    rights under the Plan shall pertain to and apply to the
    securities to which a holder of the number of shares of Common
    Stock subject to such rights would have been entitled
    immediately following such reorganization, merger or
    consolidation, with a corresponding proportionate adjustment of
    the Purchase Price per share so that the aggregate Purchase
    Price thereafter shall be the same as the aggregate Purchase
    Price of the shares subject to such rights immediately prior to
    such reorganization, merger or consolidation.
    

			
	 	(c)  	
    Reorganization in Which the Company is not the
    Surviving Corporation or Sale of Assets or Stock.

		
	 	     
    Upon any dissolution or liquidation of the
    Company, or upon a merger, consolidation or reorganization of
    the Company with one or more other corporations in which the
    Company is not the surviving corporation, or upon a sale of all
    or substantially all of the assets of the Company to another
    corporation, or upon any transaction (including, without
    limitation, a merger or reorganization in which the Company is
    the surviving corporation) approved by the Board that results in
    any person or entity owning more than 80 percent of the
    combined voting power of all classes of stock of the Company,
    the Plan and all rights outstanding hereunder shall terminate,
    except to the extent provision is made in writing in connection
    with such transaction for the continuation of the Plan and/or
    the assumption of the rights theretofore granted, or for the
    substitution for such rights of new rights covering the stock of
    a successor corporation, or a parent or subsidiary thereof, with
    appropriate adjustments as to the number and kinds of shares and
    exercise prices, in which event the Plan and rights theretofore
    granted shall continue in the manner and under the terms so
    provided. In the event of any such termination of the Plan, all
    current Purchase Periods and Offering Periods shall be deemed to
    have ended on the last trading day prior to such termination,
    and in accordance with Section 10 above the rights of each
    participating employee then outstanding shall be deemed to be
    automatically exercised on such last trading day. The Board
    shall send written notice of an event that will result in such a
    termination to all participating employees not later than the
    time at which the Company gives notice thereof to its
    stockholders.
    

7

 

     
(d) Adjustments.

		
	 	     
    Adjustments under this Section 26 related to
    stock or securities of the Company shall be made by the
    Committee, whose determination in that respect shall be final,
    binding, and conclusive.
    

     
(e) No Limitations on Company.

		
	 	     
    The grant of a right pursuant to the Plan shall
    not affect or limit in any way the right or power of the Company
    to make adjustments, reclassifications, reorganizations or
    changes of its capital or business structure or to merge,
    consolidate, dissolve or liquidate, or to sell or transfer all
    or any part of its business or assets.
    

27. GOVERNMENTAL REGULATION.

     
The Company’s obligation to issue, sell and
deliver shares of Common Stock pursuant to the Plan is subject
to such approval of any governmental authority and any national
securities exchange or other market quotation system as may be
required in connection with the authorization, issuance or sale
of such shares.

28. STOCKHOLDER RIGHTS.

     
Any dividends paid on shares held by the Company
for a participating employee’s account will be transmitted
to the employee. The Company will deliver to each participating
employee who purchases shares of Common Stock under the Plan, as
promptly as practicable by mail or otherwise, all notices of
meetings, proxy statements, proxies and other materials
distributed by the Company to its stockholders. Any shares of
Common Stock held by the Agent for an employee’s account
will be voted in accordance with the employee’s duly
delivered and signed proxy instructions. There will be no charge
to participating employees in connection with such notices,
proxies and other materials.

29. RULE 16B-3.

     
Transactions under this Plan are intended to
comply with all applicable conditions of Rule 16b-3 or any
successor provision under the Securities Exchange Act of 1934,
as amended. If any provision of the Plan or action by the Board
fails to so comply, it shall be deemed null and void to the
extent permitted by law and deemed advisable by the Board.
Moreover, in the event the Plan does not include a provision
required by Rule 16b-3 to be stated herein, such provision
(other than one relating to eligibility requirements, or the
price and amount of awards) shall be deemed automatically to be
incorporated by reference into the Plan.

30. PAYMENT OF PLAN EXPENSES.

     
The Company will bear all costs of administering
and carrying out the Plan; provided however, participating
employees shall bear all costs incurred subsequent to the
issuance of stock certificates pursuant to Section 11.

8

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