Document:

VOLC 3.31.2014 10-Q Exhibit 10.1

VOLCANO CORPORATION
AMENDED AND RESTATED 2005 EQUITY COMPENSATION PLAN
2014 LONG TERM INCENTIVE PLAN
ADOPTED: FEBRUARY 12, 2014 
1.Purpose. The Volcano Corporation 2014 Long Term Incentive Plan (the “Program”), established under the Volcano Corporation Amended and Restated 2005 Equity Compensation Plan (the”2005 Plan”), is intended to provide equity incentive compensation to individuals who make a significant contribution to the performance of Volcano Corporation (the “Company”). Program objectives are to: (a) provide additional motivation to our Designated Participants to focus on long-term corporate performance, (b) provide additional retention incentive for Designated Participants, and (c) further align the interests of the Designated Participants with those of our stockholders.
2.    Definitions.
Defined terms not explicitly defined in the Program but defined in the 2005 Plan will have the same definitions as in the 2005 Plan.
(a)    “Actual Award” means the number of shares of Common Stock credited to a Designated Participant under the Program during a Performance Period based on achievement of applicable Performance Goals and Other Performance Goals.
(b)    “Certification Date” means the date on which the Committee certifies whether the Performance Goals have been met under the Award Calculation Methodology set forth in the attached EXHIBIT A and whether any reductions in the Maximum Awards should be made on account of the degree of achievement of the Other Performance Goals. Absent extraordinary circumstances that delay the finalization of the Company’s audited financial statements for fiscal year 2015 beyond March 15, 2016, the Certification Date will be no later than March 15, 2016.
(c)    “Committee” means a committee of one or more members of the Board appointed by the Board pursuant to the 2005 Plan; provided, however, that for purposes of administering the 2005 Plan with respect to Designated Participants who are or may be deemed “covered employees” (as defined for purposes of Section 162(m) of the Code), the “Committee” will be composed of two or more members of the Board, each of whom is an “outside director” for purposes of Section 162(m) of the Code.
(d)    “Designated Participant” means a key Employee of the Company or an Affiliate who is designated by the Committee in writing to participate in the Program.
(e)    “Maximum Award” means the maximum number of shares of Common Stock that may be credited to a Designated Participant under the Program in respect of a specified Performance Period if the applicable Performance Goals are achieved at the levels set by the Committee during the applicable Performance Period and if the Designated Participant renders Continuous Service to the Company or an Affiliate during the entire Performance Period and through the Certification Date.
(f)    “Other Performance Goal” means a performance goal established by the Committee that is additional to the Performance Goal. 

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(g)    “Performance Goal” means a performance goal established by the Committee pursuant to Sections 13(mm) and 13(nn) of the 2005 Plan and that is calculated in a manner that would allow for deductibility under Section 162(m) of the Code. 
(h)    “Performance Period” means the period of time selected by the Committee over which the attainment of one or more Performance Goals will be measured for the purpose of determining a Designated Participant’s right to an Actual Award. At the discretion of the Committee, a Performance Period may be divided into shorter periods over which the attainment of one or more Performance Goals will be measured.
(i)    “Target Award” means the target number of shares of Common Stock determined by the Committee and set forth in the applicable Stock Award Agreement. The Maximum Award is equal to 200% of the Target Award.
3.    How Awards Are Earned Under the Program.
(a)    General Program Description. The Program provides the opportunity for certain key Employees to earn shares of Common Stock based on the performance of the Company. In general, the Committee will select certain key Employees to participate in the Program at the beginning of a Performance Period. Upon selection to participate in the Program, each Designated Participant will be granted a Maximum Award equal to the number of shares of Common Stock that may be earned as an Actual Award by the Designated Participant if: (i) specified levels of applicable Performance Goals are achieved during the Performance Period, (ii) the Committee does not reduce the Maximum Award on account of the degree of achievement of applicable Other Performance Goals and/or other factors, and (iii) the Designated Participant continues to render Continuous Service to the Company or any other Affiliate during the entire Performance Period, through the Certification Date and through any subsequent additional vesting period.  If the Committee does reduce the Maximum Award on account of the degree of achievement of applicable Other Performance Goals and/or other factors, the Designated Participant will be eligible to earn only a portion (or none) of the shares of Common Stock subject to the Maximum Award.  If the specified level of achievement of the Performance Goals is not achieved during the Performance Period, the Designated Participant will not earn any shares of Common Stock under the Program.  
(b)    Maximum Award; Actual Award.  The maximum number of shares of Common Stock that a Designated Participant may earn as an Actual Award will in no event exceed the Maximum Award.  The methodology for establishing the Maximum Award and determining the Actual Award is set forth in the attached EXHIBIT A. As required by Section 6(c)(i) of the 2005 Plan and in accordance with Section 162(m) of the Code, the maximum number of shares of Common Stock covered by a Maximum Award that may be granted to a Designated Participant in any calendar year will not exceed 1,600,000 shares (subject to adjustment as provided in Section 9(a) of the 2005 Plan). 
(c)    Designated Participants. Each key Employee of the Company or any other Affiliate who is designated by the Committee in writing for participation in the Program for a particular Performance Period will be eligible for a Maximum Award with respect to such Performance Period. The Committee will determine, in its sole discretion, as to whether an individual is a Designated Participant and such determination will be binding and conclusive on all persons.  No Employee has any right (i) to be a Designated Participant in the Program, (ii) to continue as a Designated Participant, or (iii) to be granted a Maximum Award or to earn an Actual Award under the Program. The Company is not obligated to give uniform treatment (e.g., number of shares of Common Stock subject to Maximum Awards) to Employees or Designated Participants 

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under the Program. Participation in the Program as to a particular Performance Period does not convey any right to participate in the Program as to any other Performance Period.
(d)    Performance Goals and Other Performance Goals. The Committee will determine, in its sole discretion, the Performance Goals for a particular Performance Period and Other Performance Goals, if applicable, and their relative weights. The Committee also may establish, in its sole discretion, Performance Goals and Other Performance Goals for annual, quarterly or other periods within the applicable Performance Period. The Performance Goals and Other Performance Goals for a Performance Period or for shorter periods within a Performance Period are not required to be identical to the Performance Goals and Other Performance Goals for any other Performance Period or shorter period within a Performance Period. The Committee may establish Performance Goals and Other Performance Goals for the Company that differ from those established for one or more other Participating Companies and may establish different Performance Goals and Other Performance Goals for each Designated Participant or for groups of Designated Participants. In addition, the Committee reserves the discretion to reduce the Actual Award for reasons other than failure to achieve the Other Performance Goals. 
4.    Other Program Provisions.
(a)    Distribution of Actual Awards. Assessment of actual performance, determination of Actual Awards and the distribution of shares of Common Stock in respect of Actual Awards will be subject to: (i) the Committee’s certification in writing that the applicable Performance Goals and other terms of the Program have been met; (ii) the Committee’s determination as to the appropriate reductions, if any, in the amounts of the Maximum Awards in arriving at the amounts of the Actual Awards, based on the levels of achievement of applicable Other Performance Goals or other factors; and (iii) the completion of any subsequent additional vesting period. Unless the written Stock Award Agreement covering an Actual Award provides otherwise, shares of Common Stock that are credited to a Designated Participant as an Actual Award will generally be distributed to the Designated Participant (or the Designated Participant’s heirs in the case of the Designated Participant’s death) not later than March 15 of the year following the lapsing of the substantial risk of forfeiture, to ensure compliance with the short term deferral rule of Code Section 409A. Notwithstanding the foregoing, if the Company has provided a Designated Participant with a plan or program by which to defer distribution of such shares of Common Stock and the Designated Participant has made an effective election to defer such distribution under such plan or program, such shares will be distributed to the Designated Participant (or the Designated Participant’s heirs in the case of the Designated Participant’s death) in accordance with such election. The Company may, but is not required to, withhold shares of Common Stock otherwise deliverable to the Designated Participant in satisfaction of any federal, state or local tax withholding obligation relating to the delivery of shares of Common Stock under the Actual Award, but the number of shares of Common Stock so withheld will not exceed the amount necessary to satisfy the Company’s required tax withholding obligations using the minimum statutory withholding rates for federal, state, local and foreign tax purposes, including payroll taxes, that are applicable to supplemental taxable income. 
(b)    Employment and Termination. To earn shares of Common Stock in respect of an Actual Award under the Program, a Designated Participant must render Continuous Service during the entire Performance Period, through the Certification Date and for any subsequent additional vesting period, except as otherwise provided under the terms of the applicable Stock Award Agreement. 
(c)    No Employment or Service Rights. Nothing in the Program or any instrument executed or Stock Award granted pursuant to the Program will (i) confer upon any Employee or Designated Participant any right to continue to be retained in the employ or service of the Company or any other Affiliate, 

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(ii) change the at-will employment relationship between the Company or any other Affiliate and an Employee or Designated Participant, or (iii) interfere with the right of the Company or any other Affiliate to discharge any Employee, Designated Participant or other person at any time, with or without cause, and with or without advance notice.
(d)    Program Administration. The Committee will be responsible for all decisions and recommendations regarding Program administration and retains final authority regarding all aspects of Program administration, the resolution of any disputes, and application of the Program in any respect to a Designated Participant. All determinations and interpretations made by the Committee in good faith will not be subject to review by any person and will be final, binding and conclusive on all persons. The Committee may, without notice, amend, suspend or terminate the Program; provided, however, that no such action may adversely affect any then outstanding Stock Award unless (i) expressly provided by the Committee; and (ii) with the consent of the Designated Participant, unless such action is necessary to comply with any applicable law, regulation or rule. 
(e)    Stockholder Rights. Stock Awards granted under the Program are “restricted stock units,” and as a result, no Designated Participant will be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to a Maximum Award (including, without limitation, the right to receive dividends) unless and until such Designated Participant has received an Actual Award under the Program, has vested in the shares subject to the Actual Award, and has received delivery of such shares of Common Stock.
(f)    Recovery. Any amounts paid under the Program will be subject to recoupment in accordance with the Volcano Incentive Compensation Recoupment Policy and any additional clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any plan of or agreement with the Company.
(g)    Validity. If any provision of the Program is held invalid, void, or unenforceable, the same will not affect, in any respect whatsoever, the validity of any other provision of the Program.
(h)    Governing Plan Document. The Program is subject to all the provisions of the 2005 Plan and is further subject to all interpretations, amendments, rules and regulations that may from time to time be promulgated and adopted by the Committee, the Board or the Company pursuant to the 2005 Plan. In the event of any conflict between the provisions of this Program and those of the 2005 Plan, the provisions of the 2005 Plan will control unless necessary for compliance with Section 162(m) of the Code.

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EXHIBIT A
2014 LONG TERM INCENTIVE PLAN
AWARD CALCULATION METHODOLOGY

	
					
	Parameter
	Description

	Designated Participants
	Scott Huennekens, John Dahldorf, Dave Sheehan, John Onopchenko, George Quinoy, Heather Ace, Joe Burnett, Darin Lippoldt, Michele Perrino, Will McGuire, Eric Ryan, Dale Flanders, Nancy Lelicoff, Duane Wilder, Miguel Beltran, Lynda Ramsey, Jonathan Hartmann, Joe Brown, Al Kau, Toru Sato, Neil Hattangadi, Terrance Beausir, Douglas Bruce, Kenneth Neeld, Kevin Mathews, Cheryl Rice, Denise Stearns, and Ran Cohen 

	Performance Period
	2014 -2015 calendar years

	Award Agreement; Maximum Award
	The Committee will approve and set forth in each Designated Participant’s Award Agreement, a Maximum Award for each Designated Participant

	Performance Goal
	The Company must achieve an initial threshold level of performance (the “Performance Goal”) for any shares of Common Stock (the “Performance Shares”) to be earned. The Performance Goal is the achievement during the 2014 calendar year of at least 90% of the Company’s  non-GAAP revenue target (as set forth in the Board-approved 2014 annual operating plan), adjusted as set forth below.
Ÿ    If the Performance Goal is not met, no Performance Shares will be earned under the Program
Ÿ    If the Performance Goal is met, Designated Participants will be credited with their Maximum Awards, subject to a reduction based on the achievement of Other Performance Goals and such other factors determined by the Committee, which will determine the Actual Award earned

	Other Performance Goals
	The Other Performance Goals are the Total Shareholder Return and Revenue Growth goals for the Performance Period as determined pursuant to the formula approved by the Committee in writing, and which is summarized below.

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	Actual Award Determination
	Total Shareholder Return and Revenue Growth are each equally weighted as 50% of the Other Performance Goals.  

The Total Shareholder Return portion of the Actual Award will be determined based upon the Company’s relative total shareholder return (“TSR”) performance during the Performance Period as measured versus the TSR performance of the Peer Group Companies during the Performance Period, as determined pursuant to the chart below, with linear interpolation between the specified performance levels

The Revenue Growth portion of the Actual Award will be determined based upon the Company’s revenue growth during the Performance Period, as determined pursuant to the formula approved by the Committee.

	 
	Percentile Ranking
	Multiplier
	 

	Threshold
	<25th
	0.00
	 

	 
	25th
	0.25
	 

	 
	30th
	0.50
	 

	 
	40th
	0.80
	 

	Target
	50th
	1.00
	 

	 
	60th
	1.25
	 

	 
	70th
	1.50
	 

	 
	80th
	1.75
	 

	 
	90th
	2.00
	 

	Max
	>90th
	2.00
	 

	The Revenue Growth portion of the Actual Award will be determined based upon the Company’s revenue growth during the Performance Period, as determined pursuant to the formula approved by the Committee.

Any partial shares of an Actual Award will be rounded down to the next whole share.  

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	Total Shareholder Return (TSR) Calculation
	Total Shareholder Return means the Company’s relative total shareholder return (“TSR”) performance during the Performance Period as measured versus the TSR performance of the Peer Group Companies during the Performance Period.

“TSR” as applied to any Peer Company means such company’s stock price appreciation from the beginning to the end of the Performance Period, plus dividends and distributions made or declared (assuming such dividends or distributions are reinvested in the common stock of the Peer Company) during the Performance Period, expressed as a percentage return.  For purposes of computing TSR for an Peer Company, the stock price at the beginning of the Performance Period will be the closing price of a share of common stock of such Peer Company on January 2, 2014, and the stock price at the end of the Performance Period will be the closing price of a share of common stock such Peer Company on the last trading day occurring on or prior to December 31, 2015, adjusted for stock splits or similar changes in capital structure.
Ÿ    The TSR for a Peer Company will be deemed to be -100% if, during the Performance Period, such company: (i) files for bankruptcy, reorganization, or liquidation under any chapter of the U.S. Bankruptcy Code; (ii) is the subject of an involuntary bankruptcy proceeding that is not dismissed within 30 days; (iii) is the subject of a stockholder approved plan of liquidation or dissolution; or (iv) ceases to conduct substantial business operations. 
Ÿ    Any Peer Company that stops actively trading on a U.S. public securities market or exchange before the end of the Performance Period for reasons unrelated to such a bankruptcy related event (for e.g., due to an acquisition of the Peer Company, a going-private transaction, etc.) is excluded from the TSR calculation.

The Peer Companies for purposes of calculating TSR are those approved by the Committee.

	Revenue Growth Calculation
	•    Revenue growth is calculated in constant currency to the 2013 fiscal year calculation
•    Revenue growth calculation includes revenue from all sources during the Performance Period (including incremental acquisition revenue in excess of pre-acquisition run rate).
•    Any divestiture during the Performance Period results in an adjustment of baseline revenue in the amount of the revenue run rate of the divested business

	Time-Based Vesting
	Assuming achievement of the Performance Goal and the Other Performance Goals, the Actual Award is subject to the following time-based vesting schedule, subject to the Designated Participant’s Continuous Service through each vesting date: 
•    Two-thirds of the shares vest on the Certification Date; and
•    One-third of the shares vest on December 31, 2016.

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	Adjustments from GAAP Revenue
	GAAP revenue, adjusted automatically:  (1) to exclude restructuring and/or other nonrecurring charges; (2) to exclude exchange rate effects;  (3) to exclude the effects of changes to generally accepted accounting principles; (4) to exclude the effects of any statutory adjustments to corporate tax rates; (5) to exclude the effects of any “extraordinary items” as determined under generally accepted accounting principles; (6) to include the effects of any acquisitions, licensing transactions, divestitures, or joint ventures; (7) to exclude the effect of any change in the outstanding shares of common stock of the Company by reason of any stock dividend or split, stock repurchase, reorganization, recapitalization, merger, consolidation, spin-off, combination or exchange of shares or other similar corporate change, or any distributions to common shareholders other than regular cash dividends; (8) to exclude the effects of stock based compensation, deferred compensation and the award of bonuses; and (9) to exclude the effect of any other unusual, non-recurring gain or loss or other extraordinary item such as litigation expenses and material corporate transactions such as mergers, acquisitions and divestitures that were not incorporated into the Company’s annual operating plan

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50886931 v3VOLC 3.31.2014 10-Q Exhibit 10.2

VOLCANO CORPORATION
AMENDED AND RESTATED 2005 EQUITY COMPENSATION PLAN
2014 LONG TERM INCENTIVE PLAN
GRANT NOTICE
Volcano Corporation (the “Company”), pursuant to its 2014 Long Term Incentive Plan (the “Program”) under its Amended and Restated 2005 Equity Compensation Plan (the “Plan”), hereby awards to Participant the Performance Stock Award (which is in the form of a Restricted Stock Unit Award) set forth below (the “Award”). The Award is subject to all of the terms and conditions as set forth herein and in the Award Agreement, the Program and the Plan, all of which are attached hereto and incorporated herein in their entirety. Unless otherwise defined herein, capitalized terms will have the meanings set forth in the Plan or the Program, as applicable.
Participant:        
Date of Grant:        
Number of RSUs subject to Target Award:            
Number of RSUs subject to Maximum Award:         
Performance Period:    January 1, 2014 – December 31, 2015    
Determination of Actual Award: On the Certification Date, and provided that (i) the applicable Performance Goal is attained during the Performance Period, (ii) the Other Performance Goals are achieved, and (iii) the Participant is in Continuous Service through such date, the Company will credit the Participant with an Actual Award representing the number of Restricted Stock Units (“RSUs”), which may be equal to all or a portion (including none) of the Maximum Award, as determined by the Committee under the Program.
Vesting Schedule:  Subject to the Participant’s Continuous Service on each vesting date, the Actual Award will vest (i) as to two-thirds of the RSUs subject to the Actual Award on the Certification Date, and (ii) as to one-third of the RSUs subject to the Actual Award on December 31, 2016. Each installment that vests hereunder is a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2).
Additional Terms/Acknowledgements: The Participant acknowledges receipt of, and understands and agrees to, this Award Grant Notice, the Award Agreement, the Program, the Plan and the related Plan prospectus. The Participant further acknowledges that as of the Date of Grant, this Grant Notice, the Award Agreement, the Program, and the Plan set forth the entire understanding between the Participant and the Company regarding the Award and supersede all prior oral and written agreements on the terms of the Award, with the exception, if applicable, of (i) the written employment agreement between the Company and the Participant specifying the terms that should govern this Award, (ii) the Company’s stock ownership guidelines, (iii) the Company’s insider trading policies, and (iv) the Company’s Incentive Compensation Recoupment Policy and any other compensation recovery policy that is adopted by the Company or is otherwise required by applicable law. By accepting this Award, the Participant consents to receive all related documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. 

VOLCANO CORPORATION

By:                        

 

VOLCANO CORPORATION
AMENDED AND RESTATED 2005 EQUITY COMPENSATION PLAN
2014 LONG TERM INCENTIVE PLAN 
AWARD AGREEMENT
Pursuant to the Grant Notice (the “Grant Notice”) and this Award Agreement (the “Agreement”), Volcano Corporation (the “Company”) has awarded you, pursuant to its 2014 Long Term Incentive Plan (the “Program”) under its Amended and Restated 2005 Equity Compensation Plan (the “Plan”), the Maximum Award (which is a Performance Stock Award in the form of a Restricted Stock Unit Award) as indicated in the Grant Notice. Unless otherwise defined herein or in the Grant Notice, capitalized terms will have the meanings set forth in the Plan or the Program, as applicable. In the event of any conflict between the terms in this Agreement and the Plan or the Program, the terms of the Plan or Program, as applicable, will control.
The details of your Award, in addition to those set forth in the Grant Notice and the Plan, are as follows.
1.GRANT OF THE AWARD. Your Award represents your right to be issued on a future date one share of Common Stock for each Restricted Stock Unit that vests.  
2.    VESTING. Your Award will vest as provided in the Grant Notice. Vesting will cease upon the termination of your Continuous Service. Any Restricted Stock Units that have not yet vested will be forfeited on the termination of your Continuous Service. 
3.    NUMBER OF RESTRICTED STOCK UNITS & SHARES OF COMMON STOCK. 
(a)    The Restricted Stock Units subject to your Award will be adjusted as provided in Section 9(a) of the Plan.
(b)    Any additional Restricted Stock Units and any shares of Common Stock, cash or other property that become subject to your Award pursuant to this Section 3 will be subject, in a manner determined by the Board, to the same forfeiture restrictions, restrictions on transferability, and time and manner of delivery as applicable to the other Restricted Stock Units and shares of Common Stock covered by your Award.
(c)    No fractional shares of Common Stock or rights for fractional shares will be created pursuant to this Section 3. Any fraction of a share will be rounded down to the nearest whole shares.
4.    SECURITIES LAW COMPLIANCE. You will not be issued any shares of Common Stock underlying the Restricted Stock Units or other with respect to your Award unless either (i) the shares of Common Stock are registered under the Securities Act, or (ii) the Company has determined that such issuance would be exempt from such registration requirements. Your Award also must comply with other applicable laws and regulations governing the Award, and you will not receive shares of Common Stock underlying your Award if the Company determines that such receipt would not be in material compliance with such laws and regulations.
5.    TRANSFERABILITY. Prior to the time that shares of Common Stock have been delivered to you, you may not transfer, pledge, sell or otherwise dispose of any portion of the Restricted Stock Units or the shares of Common Stock in respect of your Restricted Stock Units. For example, you may not use shares of Common Stock that may be issued in respect of your Restricted Stock Units as security for a loan, nor may you transfer, pledge, sell or otherwise dispose of such shares of Common Stock. This restriction on transfer will lapse upon delivery to you of shares of Common Stock in respect of your vested Restricted Stock Units. 
(a)    Death. Your Restricted Stock Units are not transferable other than by will and by the laws of descent and distribution. Upon receiving written permission from the Board or its duly authorized designee, you may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect transactions under the Plan, designate a third party who, in the event of your death, will thereafter be entitled to receive any distribution of Common Stock or other consideration to which you were entitled at the time of your death pursuant to this Agreement. In the absence of such a designation, your executor or administrator of your estate will be entitled to receive, on behalf of your estate, such Common Stock or other consideration. 
(b)    Certain Trusts. Upon receiving written permission from the Board or its duly authorized designee, you may transfer your Restricted Stock Units to a trust if you are considered to be the sole beneficial owner (determined under Section 671 of the Code and applicable state law) while the Restricted Stock Units are held in trust, provided that you and the trustee enter into transfer and other agreements required by the Company. 
(c)    Domestic Relations Orders. Upon receiving written permission from the Board or its duly authorized designee, and provided that you and the designated transferee enter into transfer and other agreements required by the Company, you may transfer your right to receive the distribution of Common Stock or other consideration under your Restricted Stock Units, pursuant to the terms of a domestic relations order or official marital settlement agreement that contains the information required by the Company to effectuate the transfer. You are encouraged to discuss with the Company’s General Counsel the proposed terms of any such transfer prior to finalizing the domestic relations order or marital settlement agreement to help ensure the required information is contained within the domestic relations order or marital settlement agreement. The Company is not obligated to allow you to transfer your Award in connection with your domestic relations order or marital settlement agreement.
6.    DELIVERY/DATE OF ISSUANCE. 
(a)    The issuance of shares of Common Stock in respect of the Restricted Stock Units is intended to comply with Treasury Regulation Section 1.409A-1(b)(4) and will be construed and administered in such a manner.
(b)    Subject to the satisfaction of the withholding obligations set forth in Section 10 of this Agreement, in the event one or more Restricted Stock Units vests, then as soon as administratively practicable within the thirty (30) day period following the applicable vesting date the Company will issue to you one share of Common Stock for each Restricted Stock Unit that vests and such issuance date is referred to as the “Original Issuance Date.” If the Original Issuance Date falls on a date that is not a business day, delivery will instead occur on the next following business day. 
(c)    However, if (i) the Original Issuance Date does not occur (1) during an “open window period” applicable to you, as determined by the Company in accordance with the Company’s then-effective policy on trading in Company securities, or (2) on a date when you are otherwise permitted to sell shares of Common Stock on an established stock exchange or stock market (including but not limited to under a previously established Company-approved 10b5-1 trading plan), then the shares of Common Stock that would otherwise be issued to you on the Original Issuance Date will not be delivered on such Original Issuance Date and will instead be delivered on the first business day when you are not prohibited from selling shares in the open public market, but in no event later than the date that is the 15th day of the third calendar month following the date the Restricted Stock Units vest or, if and only if permitted in a manner that complies with Treasury Regulation Section 1.409A-1(b)(4), no later than the date that is the 15th day of the third calendar month of the year following the year in which the shares of Common Stock under your Award are no longer subject to a “substantial risk of forfeiture” within the meaning of Treasury Regulation Section 1.409A-1(d).
7.    DIVIDENDS. You will receive no benefit or adjustment to your Restricted Stock Units with respect to any cash dividend, stock dividend or other distribution except as provided in the Plan or in the Program. 
8.    RESTRICTIVE LEGENDS. The Common Stock issued with respect to your Restricted Stock Units will be endorsed with appropriate legends determined by the Company.
9.    AWARD NOT A SERVICE CONTRACT. Your employment or service with the Company is not for any specified term and may be terminated by you or by the Company or an Affiliate at any time, for any reason, with or without cause and with or without notice. Nothing in this Agreement (including, but not limited to, the vesting of your Restricted Stock Units or the issuance of the shares of Common Stock subject to your Restricted Stock Units), the Plan or any covenant of good faith and fair dealing that may be found implicit in this Agreement or the Plan will: (i) confer upon you any right to continue in the employ or service of, or affiliation with, the Company or an Affiliate; (ii) constitute any promise or commitment by the Company or an Affiliate regarding the fact or nature of future positions, future work assignments, future compensation or any other term or condition of employment or affiliation; (iii) confer any right or benefit under this Agreement, the Program or the Plan unless such right or benefit has specifically accrued under the terms of this Agreement, the Program or Plan; or (iv) deprive the Company of the right to terminate you at will and without regard to any future vesting opportunity that you may have.
10.    WITHHOLDING OBLIGATIONS.
(a)    On each vesting date, and on or before the time you receive a distribution of the shares of Common Stock underlying your Restricted Stock Units, and at any other time as reasonably requested by the Company in accordance with applicable tax laws, you agree to make adequate provision for any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or any Affiliate that arise in connection with your Award (the “Withholding Taxes”). You hereby agree that you will satisfy any such Withholding Taxes obligations by entering into a “same day sale” commitment with a broker-dealer that is a member of the Financial Industry Regulatory Authority (a “FINRA Dealer”) whereby you irrevocably elect to sell a portion of the shares to be delivered in settlement of the Restricted Stock Units to satisfy the applicable Withholding Taxes and whereby the FINRA Dealer irrevocably commits to forward the proceeds necessary to satisfy the Withholding Taxes obligations directly to the Company and/or its Affiliates.    
(b)    Unless the Withholding Taxes of the Company and/or any Affiliate are satisfied, the Company will have no obligation to deliver to you any Common Stock.
(c)    In the event the Company’s obligation to withhold arises prior to the delivery to you of Common Stock or it is determined after the delivery of Common Stock to you that the amount of the Company’s withholding obligation was greater than the amount withheld by the Company, you agree to indemnify and hold the Company harmless from any failure by the Company to withhold the proper amount.
11.    UNSECURED OBLIGATION. Your Award is unfunded, and as a holder of vested Restricted Stock Units, you will be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue shares of Common Stock or other property pursuant to this Agreement. You will not have voting or any other rights as a stockholder of the Company with respect to the shares of Common Stock to be issued pursuant to this Agreement until such shares are issued to you.  Upon such issuance, you will obtain full voting and other rights as a stockholder of the Company. Nothing contained in this Agreement, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind or a fiduciary relationship between you and the Company or any other person.
12.    OTHER DOCUMENTS. You hereby acknowledge receipt of and the right to receive a document providing the information required by Rule 428(b)(1) promulgated under the Securities Act, which includes the Plan prospectus. In addition, you acknowledge receipt of the Company’s policy permitting certain individuals to sell shares of Common Stock only during certain “window” periods and the Company’s insider trading policy, in effect from time to time. 
13.    NOTICES. Any notices provided for in this Agreement or the Plan will be given in writing (including electronically) and will be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five days after deposit in the U.S. mail, postage prepaid, addressed to you at the last address you provided to the Company. The Company may, in its sole discretion, decide to deliver any documents related to participation in the Plan and your Award by electronic means or to request your consent to participate in the Plan by electronic means. By accepting your Award, you consent to receive such documents by electronic delivery and to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company.
14.    MISCELLANEOUS.
(a)    The rights and obligations of the Company under your Award will be transferable to any one or more persons or entities, and all covenants and agreements hereunder will inure to the benefit of, and be enforceable by the Company’s successors and assigns. 
(b)    You agree upon request to execute any further documents or instruments necessary or desirable in the sole determination of the Company to carry out the purposes or intent of your Award.
(c)    You acknowledge and agree that you have reviewed your Award in its entirety, have had an opportunity to obtain the advice of counsel prior to executing and accepting your Award, and fully understand all provisions of your Award.
(d)    This Agreement will be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.
(e)    All obligations of the Company under the Plan and this Agreement will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.
15.    GOVERNING PLAN DOCUMENT. Your Award is subject to all the provisions of the Plan, the provisions of which are hereby made a part of your Award, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan. In addition, your Award will be subject to recoupment in accordance with any clawback policy that the Company is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable law. No recovery of compensation under such a clawback policy will be an event giving rise to a right to resign for “good reason” or “constructive termination” (or similar term) under any plan of or agreement with the Company.
16.    SEVERABILITY. If all or any part of this Agreement or the Plan is declared by any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity will not invalidate any portion of this Agreement or the Plan not declared to be unlawful or invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or invalid will, if possible, be construed in a manner which will give effect to the terms of such Section or part of a Section to the fullest extent possible while remaining lawful and valid.
17.    EFFECT ON OTHER EMPLOYEE BENEFIT PLANS. The value of your Award subject to this Agreement will not be included as compensation, earnings, salaries, or other similar terms used when calculating the employee’s benefits under any employee benefit plan sponsored by the Company or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves its rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit plans.
18.    AMENDMENT. Any amendment to this Agreement must be in writing, signed by a duly authorized representative of the Company. The Board reserves the right to amend this Agreement in any way it may deem necessary or advisable to carry out the purpose of the grant as a result of any change in applicable laws or regulations or any future law, regulation, interpretation, ruling, or judicial decision. 
19.    COMPLIANCE WITH SECTION 409A OF THE CODE. Your Award is intended to comply with the “short-term deferral” rule set forth in Treasury Regulation Section 1.409A-1(b)(4). However, if the Award fails to satisfy the requirements of the short-term deferral rule and is otherwise not exempt from, and therefore deemed to be deferred compensation subject to, Section 409A of the Code, and if you are a “Specified Employee” (within the meaning set forth Section 409A(a)(2)(B)(i) of the Code) as of the date of your separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), then the issuance of any shares of Common Stock that would otherwise be made upon the date of the separation from service or within the first six months thereafter will not be made on the originally scheduled dates and will instead be issued in a lump sum on the date that is six months and one day after the date of the separation from service, with the balance of the shares issued thereafter in accordance with the original vesting and issuance schedule set forth above, but if and only if such delay in the issuance of the shares is necessary to avoid the imposition of taxation on you in respect of the shares under Section 409A of the Code. Each installment of shares that vests is a “separate payment” for purposes of Treasury Regulation Section 1.409A-2(b)(2). 
20.    NO OBLIGATION TO MINIMIZE TAXES. The Company has no duty or obligation to minimize the tax consequences to you of this Award and will not be liable to you for any adverse tax consequences to you arising in connection with your Award. You are hereby advised to consult with your own personal tax, financial and/or legal advisors regarding the tax consequences of your Award and by signing the Grant Notice, you have agreed that you have done so or knowingly and voluntarily declined to do so. 

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