Document:

EX-10.5

 Exhibit 10.5 
 INITIAL GRANT 
 SANGAMO BIOSCIENCES, INC. 

NOTICE OF GRANT OF NON-EMPLOYEE DIRECTOR 
 AUTOMATIC STOCK OPTION 
 Notice is hereby given of the following
option grant (the “Option”) to purchase shares of the Common Stock of Sangamo BioSciences, Inc. (the “Corporation”): 
  

			
	Optionee:	  	  

			
		
	Grant Date:	  	  

					
			
	Exercise Price: $	  	  
	  	per share

			
		
	Number of Option Shares:	 	50,000 shares of Common Stock

			
		
	Expiration Date:	  	  

			
		
	Type of Option:	  	Non-Statutory Stock Option

			
		
	Date Exercisable:	  	Immediately Exercisable

 Vesting Schedule: The Option Shares shall initially be unvested and subject to repurchase by the
Corporation at the lower of (i) the Exercise Price paid per share or (ii) the Fair Market Value per share at the time of repurchase. Optionee shall acquire a vested interest in, and the Corporation’s repurchase right
shall accordingly lapse with respect to, the Option Shares in a series of thirty-six (36) successive equal monthly installments upon Optionee’s completion of each month of service as a member of the Corporation’s Board of Directors
(the “Board”) over the thirty-six (36)-month period measured from the Grant Date. In no event shall any additional Option Shares vest after Optionee’s cessation of Board service. 

Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the automatic grant program
under the Sangamo BioSciences, Inc. 2013 Stock Incentive Plan (the “Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Automatic Stock Option Agreement attached hereto as
Exhibit A. Optionee hereby acknowledges receipt of a copy of the official prospectus for the Plan in the form attached hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate Secretary at the
Corporation’s principal offices. 
 REPURCHASE RIGHT. OPTIONEE HEREBY AGREES THAT ANY UNVESTED OPTION SHARES
ACQUIRED UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO A REPURCHASE RIGHT EXERCISABLE BY THE 

 
CORPORATION AND ITS ASSIGNS. THE TERMS OF SUCH RIGHT SHALL BE SPECIFIED IN A STOCK PURCHASE AGREEMENT, IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION, EXECUTED BY OPTIONEE AT THE TIME OF
THE OPTION EXERCISE. 
 No Impairment of Rights. Nothing in this Notice or the attached Automatic Stock Option
Agreement or in the Plan shall interfere with or otherwise restrict in any way the rights of the Corporation and the Corporation’s stockholders to remove Optionee from the Board at any time in accordance with the provisions of applicable law.

 Definitions. All capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the
attached Automatic Stock Option Agreement. 
 DATED:
                    , 201   
  

			
	SANGAMO BIOSCIENCES, INC.
		
	By:	 	  

		
	Title:	 	  

		
		 	  

		 	OPTIONEE
		
	Address:	 	  

		
		 	  

 ATTACHMENTS 
 Exhibit A — Automatic Stock Option Agreement 
 Exhibit B — Plan Summary
and Prospectus 

  
 2 

 EXHIBIT A 

AUTOMATIC STOCK OPTION AGREEMENT 

 EXHIBIT B 

PLAN SUMMARY AND PROSPECTUSEX-10.6

 Exhibit 10.6 
 ANNUAL GRANT 
 SANGAMO BIOSCIENCES, INC. 

NOTICE OF GRANT OF NON-EMPLOYEE DIRECTOR 
 AUTOMATIC STOCK OPTION 
 Notice is hereby given of the following
option grant (the “Option”) to purchase shares of the Common Stock of Sangamo BioSciences, Inc. (the “Corporation”): 
  

			
	Optionee:	  	  

			
		
	Grant Date:	  	  

					
			
	Exercise Price: $	  	  
	  	per share

			
		
	Number of Option Shares:	 	10,000 shares of Common Stock

			
		
	Expiration Date:	  	  

			
		
	Type of Option:	 	Non-Statutory Stock Option

			
		
	Date Exercisable:	 	Immediately Exercisable

 Vesting Schedule: The Option Shares shall initially be unvested and subject to repurchase by the
Corporation at the lower of (i) the Exercise Price paid per share or (ii) the Fair Market Value per share at the time of repurchase. Optionee shall acquire a vested interest in, and the Corporation’s repurchase right
shall accordingly lapse with respect to, the Option Shares in a series of twelve (12) successive equal monthly installments upon Optionee’s completion of each month of service as a member of the Corporation’s Board of Directors (the
“Board”) over the twelve (12)-month period measured from the Grant Date. In no event shall any additional Option Shares vest after Optionee’s cessation of Board service. 

Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the automatic option grant
program under the Sangamo BioSciences, Inc. 2013 Stock Incentive Plan (the “Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Automatic Stock Option Agreement attached
hereto as Exhibit A. Optionee hereby acknowledges receipt of a copy of the official prospectus for the Plan in the form attached hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate Secretary at the
Corporation’s principal offices. 

 REPURCHASE RIGHT. OPTIONEE HEREBY AGREES THAT ANY UNVESTED OPTION SHARES ACQUIRED
UPON THE EXERCISE OF THE OPTION SHALL BE SUBJECT TO A REPURCHASE RIGHT EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS. THE TERMS OF SUCH RIGHT SHALL BE SPECIFIED IN A STOCK PURCHASE AGREEMENT, IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION,
EXECUTED BY OPTIONEE AT THE TIME OF THE OPTION EXERCISE. 
 No Impairment of Rights. Nothing in this Notice or the
attached Automatic Stock Option Agreement or in the Plan shall interfere with or otherwise restrict in any way the rights of the Corporation and the Corporation’s stockholders to remove Optionee from the Board at any time in accordance with the
provisions of applicable law. 
 Definitions. All capitalized terms in this Notice shall have the meaning assigned to
them in this Notice or in the attached Automatic Stock Option Agreement. 
 DATED:
                    , 201   
  

			
	SANGAMO BIOSCIENCES, INC.
		
	By:	 	  

		
	Title:	 	  

		
		 	  

		 	OPTIONEE
		
	Address:	 	  

		
		 	  

 ATTACHMENTS 
 Exhibit A — Automatic Stock Option Agreement 
 Exhibit B — Plan Summary and
Prospectus 

  
 2 

 EXHIBIT A 

AUTOMATIC STOCK OPTION AGREEMENT 

 EXHIBIT B 

PLAN SUMMARY AND PROSPECTUSEX-10.7

 Exhibit 10.7 
 SANGAMO BIOSCIENCES, INC. 
 AUTOMATIC STOCK OPTION AGREEMENT

 RECITALS 
 A. The Corporation has implemented an automatic grant program under the Plan pursuant to which eligible non-employee members of the Board will automatically receive equity awards at periodic intervals
over their period of Board service in order to provide such individuals with a meaningful incentive to continue to serve as members of the Board. 
 B. Optionee is an eligible non-employee Board member, and this Agreement is executed pursuant to, and is intended to carry out the purposes of, the Plan in connection with the automatic grant of an option
to purchase shares of Common Stock under the Plan. 
 C. All capitalized terms in this Agreement shall have the meaning assigned
to them in the attached Appendix. 
 NOW, THEREFORE, it is hereby agreed as follows: 

1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date, a Non-Statutory Option to purchase up
to the number of Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price. 

2. Option Term. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly
expire at the close of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6. 
 3.
Limited Transferability. 
 (a) This option may be assigned in whole or in part during Optionee’s lifetime
to one or more of the Optionee’s Family Members or to a trust established for the exclusive benefit of Optionee and/or one or more such Family Members, to the extent such assignment is in connection with the Optionee’s estate plan or
pursuant to a domestic relations order. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion shall be the
same as those in effect for this option immediately prior to such assignment. 
 (b) Should the Optionee die while holding this
option, then this option shall be transferred in accordance with Optionee’s will or the laws of inheritance. However, Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in
accordance with such designation, automatically be transferred to such 

 
beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions
of this Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 
 4. Exercisability/Vesting. 
 (a) This option shall be immediately
exercisable for any or all of the Option Shares, whether or not the Option Shares are at the time vested in accordance with the Vesting Schedule, and shall remain so exercisable until the Expiration Date or sooner termination of the option term
under Paragraph 5 or 6. 
 (b) Optionee shall, in accordance with the Vesting Schedule set forth in the Grant Notice, vest in
the Option Shares in one or more installments over his or her period of Board service. The Option Shares shall, however, be subject to accelerated vesting pursuant to the provisions of Paragraph 5, 6 or 7, but in no event shall any additional Option
Shares vest following Optionee’s cessation of service as a Board member. 
 5. Cessation of Board Service.
Should Optionee’s service as a Board member cease while this option remains outstanding, then the option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date in accordance
with the following provisions: 
 (a) Should Optionee cease to serve as a Board member for any reason (other than death or
Permanent Disability) while this option is outstanding, then the period during which this option may be exercised shall be reduced to a twelve (12)-month period measured from the date of such cessation of Board service, but in no event shall this
option be exercisable at any time after the Expiration Date. During such limited period of exercisability, Optionee (or the person or persons to whom this option is transferred pursuant to a permitted transfer under Paragraph 3) may not exercise
this option in the aggregate for more than the number of Option Shares (if any) in which Optionee is vested on the date of his or her cessation of Board service. Upon the earlier of (i) the expiration of such twelve (12)-month period or
(ii) the specified Expiration Date, the option shall terminate and cease to be exercisable with respect to any vested Option Shares for which the option has not been exercised. 

(b) Should Optionee die during the twelve (12)-month period following his or her cessation of Board service but while this option is
outstanding, then (i) the personal representative of Optionee’s estate or (ii) the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s death or to
whom the option is transferred during Optionee’s lifetime pursuant to a permitted transfer under Paragraph 3 or (iii) the designated beneficiary or beneficiaries of this option (as the case may be) shall have the right to exercise this
option for any or all of the Option Shares in which Optionee is vested at the time of Optionee’s cessation of Board service (less any Option Shares purchased by Optionee after such cessation of Board service but prior to death). Any such right

 
to exercise this option shall terminate, and this option shall accordingly cease to be exercisable for such vested Option Shares, upon the earlier of (i) the expiration of the twelve
(12)-month period measured from the date of Optionee’s cessation of Board service or (ii) the specified Expiration Date. 
 (c) Should Optionee cease service as a Board member by reason of death or Permanent Disability, then any Option Shares at the time subject to this option but not otherwise vested shall vest in full so
that this option may be exercised for any or all of the Option Shares as fully vested shares of Common Stock at any time prior to the earlier of (i) the expiration of the twelve (12)-month period measured from the date of Optionee’s
cessation of Board service or (ii) the specified Expiration Date, whereupon this option shall terminate and cease to be outstanding. 
 (d) Upon Optionee’s cessation of Board service for any reason other than death or Permanent Disability, this option shall immediately terminate and cease to be outstanding with respect to any and all
Option Shares in which Optionee is not otherwise at that time vested in accordance with the normal Vesting Schedule or the special vesting acceleration provisions of Paragraphs 6 and 7 below. 

6. Change in Control. 
 (a) Should a Change in Control occur during Optionee’s period of Board service, then any Option Shares at the time subject to this option but not otherwise vested shall automatically vest so that
this option shall, immediately prior to the specified effective date for that Change in Control, become exercisable for all of the Option Shares as fully vested shares of Common Stock and may be exercised for any or all of those vested shares.
Immediately following the consummation of the Change in Control, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation or its parent company or otherwise continued in effect pursuant to
the terms of the Change in Control transaction. 
 (b) If this option is assumed in connection with a Change in Control or
otherwise continued in effect, then this option shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Change in
Control had the option been exercised immediately prior to such Change in Control, and appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the actual holders of
the Corporation’s outstanding Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control transaction, the successor corporation may, in connection with the assumption or continuation of this option,
substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control transaction. 

 7. Hostile Take-Over/Hostile Tender-Offer. In the event of a Hostile Take-Over
effected during Optionee’s period of Board service, any Option Shares at the time subject to this option but not otherwise vested shall automatically vest so that this option shall, immediately prior to the effective date of that Hostile
Take-Over, become exercisable for all of the Option Shares as fully vested shares of Common Stock and may be exercised for any or all of those vested shares. This option shall remain exercisable for such fully vested Option Shares until the earliest
to occur of (i) the specified Expiration Date, or (ii) the sooner termination of this option in accordance with Paragraph 5 or 6. 
 8. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares,
spin-off transaction or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, or should the value of outstanding shares of Common Stock be substantially reduced as a result of a
spin-off transaction or an extraordinary dividend or distribution or should there occur any merger, consolidation or other reorganization (including, without limitation, a Change in Control transaction), then equitable adjustments shall be made to
(i) the total number and/or class of securities subject to this option and (ii) the Exercise Price in order to reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 

9. Stockholder Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares
until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares. 
 10. Manner of Exercising Option. 
 (a) In order to exercise this
option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or any other person or persons exercising the option) must take the following actions: 

(i) Execute and deliver to the Corporation a Notice of Exercise for the Option Shares for which the option is exercised
or comply with such other procedures as the Corporation may establish for notifying the Corporation of the exercise of this option for one or more Option Shares. 

(ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the following forms: 

(A) cash or check made payable to the Corporation, 

(B) shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite
period necessary to avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, 

 (C) shares of Common Stock otherwise issuable under the option but withheld
by the Corporation in satisfaction of the exercise price, with such withheld shares to be valued at Fair Market Value on the Exercise Date, or 
 (D) to the extent the option is exercised for vested Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall
concurrently provide irrevocable instructions (I) to a brokerage firm (reasonably satisfactory to the Corporation for purposes of administering such procedure in accordance with the Corporation’s pre-clearance/pre-notification policies) to
effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all applicable
income and employment taxes required to be withheld by the Corporation by reason of such exercise and (II) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm on such settlement date in order to
complete the sale. 
 (iii) Furnish to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this option. 
 (b) Except to the extent the sale and
remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or the Purchase Agreement) delivered to the Corporation in connection with the option exercise. 

(c) As soon after the Exercise Date as practical, the Corporation shall issue to or on behalf of Optionee (or any other person or
persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. To the extent any such Option Shares are unvested, the certificates for those Option Shares shall be endorsed with an
appropriate legend evidencing the Corporation’s repurchase rights and may be held in escrow with the Corporation until such shares vest. 
 (d) In no event may this option be exercised for any fractional shares. 
 11.
No Impairment of Rights. This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise make changes in its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets. In addition, this Agreement shall not in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Corporation or the stockholders to
remove Optionee from the Board at any time in accordance with the provisions of applicable law. 

 12. Compliance with Laws and Regulations. 

(a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the
Corporation and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any Stock Exchange on which the Common Stock may be listed for trading at the time of such exercise and issuance. 

(b) The inability of the Corporation to obtain approval from any regulatory body having authority deemed by the Corporation to be
necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not have been obtained.
The Corporation, however, shall use its best efforts to obtain all such approvals. 
 13. Successors and Assigns.
Except to the extent otherwise provided in Paragraph 3 or 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal
representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option designated by Optionee. 

14. Notices. Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in
writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on the
Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and properly addressed to the party to be notified. 

15. Construction. This Agreement and the option evidenced hereby are made and granted pursuant to the Plan and are in all
respects limited by and subject to the terms of the Plan. 
 16. Governing Law. The interpretation, performance
and enforcement of this Agreement shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 

 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A.
Agreement shall mean this Automatic Stock Option Agreement. 
 B. Board shall mean the
Corporation’s Board of Directors. 
 C. Change in Control shall mean a change in ownership or control of the
Corporation effected through any of the following transactions: 
 (i) a merger, consolidation or other
reorganization approved by the Corporation’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor corporation are immediately thereafter
beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to such transaction, or 

(ii) a stockholder-approved sale, transfer or other disposition of all or substantially all of the Corporation’s
assets I complete liquidation or dissolution of the Corporation, or 
 (iii) the closing of any transaction or
series of related transactions pursuant to which any person or any group of persons comprising a “group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that, prior to such transaction or
series of related transactions, directly or indirectly controls, is controlled by or is under common control with, the Corporation) becomes directly or indirectly the beneficial owner (within the meaning of Rule 13d-3 of the 1934 Act) of securities
possessing (or convertible into or exercisable for securities possessing) more than fifty percent (50%) of the total combined voting power of the Corporation’s securities (as measured in terms of the power to vote with respect to the
election of Board members) outstanding immediately after the consummation of such transaction or series of related transactions, whether such transaction involves a direct issuance from the Corporation or the acquisition of outstanding securities
held by one or more of the Corporation’s existing stockholders. 
 D. Code shall mean the Internal Revenue
Code of 1986, as amended. 
 E. Common Stock shall mean shares of the Corporation’s common stock. 

F. Corporation shall mean Sangamo BioSciences, Inc., a Delaware corporation, and any successor corporation to all or
substantially all of the assets or voting stock of Sangamo BioSciences, Inc. which shall by appropriate action adopt the Plan. 

  
 A-1

 G. Exercise Date shall mean the date on which the option shall have been
exercised in accordance with Paragraph 10 of the Agreement. 
 H. Exercise Price shall mean the exercise price per
share as specified in the Grant Notice. 
 I. Expiration Date shall mean the date on which the option expires as
specified in the Grant Notice. 
 J. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions: 
 (i) If the Common Stock is at the time traded on the
Nasdaq Global or Global Select Market, then the Fair Market Value shall be the closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers for that particular
Stock Exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such
quotation exists. 
 (ii) If the Common Stock is at the time listed on any other Stock Exchange, then the Fair
Market Value shall be the closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the
composite tape of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists. 
 K. Family Member shall mean any of the following members of the
Optionee’s family: any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, bother-in-law or sister-in-law. 

L. Grant Date shall mean the date of grant of the option as specified in the Grant Notice. 

M. Grant Notice shall mean the Notice of Grant of Automatic Stock Option accompanying the Agreement, pursuant to which
Optionee has been informed of the basic terms of the option evidenced hereby. 

  
 A-2

 N. Hostile Take-Over shall mean a change in ownership or control of the
Corporation effected through either of the following transactions: 
 (i) a change in the composition of the
Board over a period of thirty-six (36) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been
Board members continuously since the beginning of such period or (B) have been elected or nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in
office at the time the Board approved such election or nomination, or 
 (ii) a Hostile Tender-Offer. 

O. Hostile Tender-Offer shall mean the acquisition, directly or indirectly, by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing
more than fifty percent (50%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s stockholders which the Board does not recommend
such stockholders to accept. 
 P. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

 Q. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422.

 R. Notice of Exercise shall mean the notice of option exercise in the form prescribed by the Corporation.

 S. Option Shares shall mean the number of shares of Common Stock subject to the option. 

T. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 

U. Permanent Disability shall mean the inability of Optionee to perform his or her usual duties as a member of the Board by
reason of any medically determinable physical or mental impairment which is expected to result in death or has lasted or can be expected to last for a continuous period of twelve (12) months or more. 

V. Plan shall mean the Corporation’s 2013 Stock Incentive Plan. 

W. Purchase Agreement shall mean the stock purchase agreement (in form and substance satisfactory to the Corporation) which
grants the Corporation the right to repurchase, at the Exercise Price, any and all unvested Option Shares held by Optionee at the 

  
 A-3

 
time of Optionee’s cessation of Board service and which precludes the sale, transfer or other disposition of any purchased Option Shares while those shares are unvested and subject to such
repurchase right. 
 X. Stock Exchange shall mean the American Stock Exchange, the NASDAQ Global or Global Select
Market, or the New York Stock Exchange. 
 Y. Vesting Schedule shall mean the vesting schedule specified in the
Grant Notice, pursuant to which the Option Shares will vest in one or more installments over the Optionee’s period of Board service, subject to acceleration in accordance with the provisions of the Agreement. 

  
 A-4

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