Document:

Form of Incentive Stock Option Agreement for 2003 Omnibus Incentive Plan

 Exhibit 10.6 
  
 INCENTIVE STOCK OPTION AGREEMENT 
 GLYCOGENESYS, INC. 
 2003 OMNIBUS INCENTIVE PLAN 
  

			
	____________________	 	Shares

  
 [Name of Employee]

 [Title] 
  
 Dear [                    ]: 
  
 This Agreement confirms the grant of an option to you effective
                 (the “Effective Date”) under the GlycoGenesys, Inc. 2003 Omnibus Incentive Plan (the “Plan”), upon the terms and conditions
described herein. A copy of the Plan is being furnished to you concurrently with the execution of this Agreement. 
  
 1. Grant of Option. 
  
 (a) Pursuant to action of the Compensation Committee of the Board of Directors (the “Committee”) under the Plan, GlycoGenesys, Inc. (the
“Company”) hereby grants to you an option to purchase (hereinafter called the “Option”), subject to the terms and conditions hereinafter set forth, an aggregate of
                 shares of the Common Stock of the Company (the “Shares”) at a per share purchase price equal to
         dollars ($        ) (the “Exercise Price”). The Exercise Price is intended to be not less than [one hundred percent (100%)] [one hundred
and ten percent (110%)] of the Fair Market Value of the Shares on the date hereof. The Option is intended to qualify as an Incentive Stock Option within the meaning of the Plan, but it is understood that no warranty is made to you as to such
qualification. This grant is a matter of separate inducement and is not in lieu of salary or other compensation for your services 
  
 (b) The number of shares under the Option and the Exercise Price shall be adjusted by the Committee, and you shall be entitled to such adjustment, upon
the occurrence of any event described in Section 11 of the Plan. An equitable adjustment shall be determined by the Committee in good faith. 
  
 2. Vesting and Exercisability. 
  
 (a) Unless accelerated under paragraph (b) below, this Option shall become fully vested and exercisable as follows: 
  
                      of the Shares shall become vested and exerciseable each
                 from the Effective Date. 
  
 (b) Upon the occurrence of a Change in Control of the Corporation as defined in the Plan, the Option shall become fully vested and immediately exercisable
with respect to all of the Shares. 

 3. Exercise Requirements and Term. 
  
 (a) If fewer than the number of Shares then available for purchase pursuant to the Option are purchased at any time under
this Agreement, you may purchase the remaining Shares at any subsequent time during the term of the Option. The Option shall not be exercised for fractional shares. Notation of any partial exercise will be made by the Company on Schedule 1
hereto. 
  
 (b) The Option is exercisable by you only while you
are in the employ of, or providing service to, the Company or its subsidiaries as an employee, member of the Board or independent consultant, except as otherwise provided in the Plan. 
  
 (c) The term of the Option shall also expire, and it shall cease to be exercisable, on the tenth anniversary of the
Effective Date. 
  
 4. Method of Exercise and Payment.

  
 (a) Exercise of the Option shall be by written notice, in a
form substantially as attached to this Agreement as Schedule A, delivered or mailed to the Secretary of the Company at its principal office and specifying the number of Shares as to which the Option is being exercised and identifying the
Option by date of grant. Such notice shall be accompanied by the full amount of the Exercise Price for the Shares to be purchased in cash or by certified check, or by delivery of whole shares of Common Stock owned by you for at least six months
(“Optionee Stock”) in full or partial payment of the Exercise Price. You will receive a credit against the purchase price of the Shares as to which the Option is being exercised equal to the Fair Market Value of such Optionee Stock as of
the close of the business day immediately preceding the date of delivery of the notice of election to exercise the Option. Any Optionee Stock being delivered must be accompanied by a duly executed assignment to the Company in blank or with stock
powers attached, together with a written representation that such shares of Optionee Stock are owned by you free and clear of all liens, claims and encumbrances and such other representations as the Company shall determine. Only whole shares of
Optionee Stock with a Fair Market Value up to, but not exceeding, the Exercise Price of the Shares as to which the Option is being exercised will be accepted hereunder. Delivery of the Shares of Optionee Stock may be made at the office of the
Company or at the offices of the transfer agent appointed for the transfer of shares of the Company. The Committee may, in its discretion, refuse to accept any tendered payment in the form of Shares, in which case it shall deliver the tender back to
you and notify you of its refusal. In order to preserve your rights under any Option, you must, within three business days after such notification, tender to the Company the cash or certified check required to pay for the Shares with respect to
which such Option is being exercised. If Common Stock is publicly traded, the Committee, in its discretion, may also permit you to pay the Exercise Price in cash by delivering to the Company a copy of irrevocable instructions to a broker to deliver
promptly to the Company an amount of sale or loan proceeds. 
  
 (b) It shall be a condition to the Company’s obligation to deliver Common Shares upon exercise of any portion of the Option that you pay, or make provisions 
  

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 satisfactory to the Company, for the payment of any taxes which the Company or any subsidiary is obligated to withhold or
collect with respect to such exercise or otherwise with respect to the Option. 
  
 5. Transferability. Your rights under the Option may not be transferred or encumbered by you, except by will or the laws of descent and distribution, and this Option may be only exercised by you during your
lifetime.  
  
 6. Registration. The exercise of this
Option and the delivery of Shares hereunder will be subject to the completion of any registration or qualification of the Options or the Shares under state or federal securities laws, the requirements of any stock exchange or similar organization,
or under any ruling or regulation of any governmental body or national securities exchange that the Company determines to be applicable. 
  
 7. Incorporation of Plan Provisions. This Agreement is made pursuant to the Plan and is subject to all the terms and provisions of the Plan as if
the same were fully set forth herein. Capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Plan. 
  
 8. Shareholder Rights. You shall not be, nor have any of the rights or privileges of, a holder of Common Stock in respect of any Shares purchasable
upon the exercise of the Option, including any rights regarding voting or payment of dividends, unless and until a certificate representing such Shares has been delivered to you. 
  
 9. Miscellaneous. This Agreement: (a) shall be binding upon and inure to the benefit of any successor of the Company
and your successors, assigns and estate, including your executors, administrators and trustees; (b) shall be governed by the laws of the Commonwealth of Massachusetts and any applicable laws of the United States; and (c) may not be amended except in
writing and signed by both parties hereto. 
  
 It is your intent
and that of the Company that this Option be classified as an “incentive stock option” within the meaning of Section 422(b) of the Code, and that any ambiguities in construction shall be interpreted in order to effectuate such intent.

  

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 To confirm your acceptance of the foregoing, please sign and return one copy of this Agreement to John
Burns, Secretary, GlycoGenesys, Inc. 
  

					
	 	 	GLYCOGENESYS, INC.
			
	 	 	By:	 	  

	ACCEPTED AND AGREED:	 	 	 	 
			
	
	 	 	 	 

  
 Date:                     
  

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 SCHEDULE A 
  
 INCENTIVE STOCK OPTION EXERCISE FORM 
  

	
	__________________________________
	(Date)

  
 GlycoGenesys, Inc. 

31 Saint James Avenue - 8th floor 
 Boston, Massachusetts 02216 

 
 Attention: John Burns, Secretary 
  
 Dear Sir: 
  
 The undersigned elects to exercise the Option to purchase
             shares of the Common Stock of GlycoGenesys, Inc. (the “Company”) under and pursuant to the Incentive Stock Option Agreement (the “Agreement”) between
the Company and the undersigned dated as of                 . 
  
 Delivered herewith in payment of the option price is: [(1)] a certified check in the amount of
$                ; [and/or (2)] certificates for          shares of common stock of the Company, valued at
$                 with appropriate stock powers attached thereto, which shares have been owned by the undersigned for at least six months and are free and clear
of all liens, claims and encumbrances.] 
  
 I hereby
authorize the Company or any subsidiary corporation by which I am employed to withhold from any cash compensation paid to me, or in my behalf, an amount sufficient to discharge any Federal, State and local wage withholding taxes imposed on the
Company, or the subsidiary corporation by which I am employed, in respect of my exercise of the Option. I agree that the Company, or the subsidiary corporation by which I am employed, may, in its discretion, hold the stock certificate to which I am
entitled upon exercise of the Option, as security for the payment of the aforementioned withholding tax liability, until cash sufficient to pay that liability has been accumulated. 
  

	
	

	Optionee

 SCHEDULE 1 
  
 NOTATION AS TO PARTIAL EXERCISE 
  

									
	 Date of
 Exercise

	 	 Number of
 Shares
 Purchased

	 	 Balance of
 Shares on
 Option

	  	 Company Secretary
 or Ass’t. Secretary
 Signature

	  	 Notation
 Date2003 Omnibus Incentive Plan

 Exhibit 10.7 
  
 GLYCOGENESYS, INC. 
 2003 OMNIBUS INCENTIVE PLAN 
  
 1. Purpose.
The purpose of the GlycoGenesys, Inc. 2003 Omnibus Incentive Plan (the “Plan”) is to provide (i) officers and key employees of GlycoGenesys, Inc. (the “Company”) and its subsidiaries, (ii) certain consultants and advisors who
perform services for the Company or its subsidiaries, and (iii) members of the Board of Directors of the Company (the “Board”), with the opportunity to acquire shares of the Common Stock of the Company (“Common Stock”) or receive
monetary payments based on the value of such shares or upon the satisfaction of other performance criteria intended to enhance the value of such shares. The Company believes that the Plan will enhance the incentive for Participants (as defined in
Section 3) to contribute to the growth of the Company, thereby benefiting the Company and the Company’s shareholders, and will align the economic interests of the Participants with those of the shareholders. 
  
 2. Administration. 
  
 (a) Committee. The Plan shall be administered and interpreted by a
compensation committee (the “Committee”). The Committee may consist of two or more members of the Board who are “outside directors” as defined under Section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”) and “non-employee directors” as defined under Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or such other members of the Board. 
  
 (b) Authority of Committee. The Committee has the sole authority,
subject to the provisions of the Plan, to (i) select the employees and other individuals to receive Awards (as defined in Section 4) under the Plan, (ii) determine the type, size and terms of the Awards to be made to each individual selected, (iii)
determine the time when the Awards will be granted and the duration of any applicable exercise and vesting period, including the criteria for exercisability and vesting and the acceleration of exercisability and vesting with respect to each
individual selected, and (iv) deal with any other matter arising under the Plan. The Committee is authorized to interpret the Plan and the Awards granted under the Plan, to establish, amend and rescind any rules and regulations relating to the Plan,
and to make any other determination that it deems necessary or desirable for the administration of the Plan. The Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to
the extent the Committee deems necessary or desirable. Any decision of the Committee in the interpretation and administration of the Plan shall lie within its sole and absolute discretion and shall be final, conclusive and binding on all parties
concerned. All powers of the Committee shall be executed in its sole discretion and need not be uniform as to similarly situated individuals. Any act of the Committee with respect to the Plan may only be undertaken and executed with the affirmative
consent of at least two-thirds of the members of the Committee. 
  
 (c) Responsibility of Committee. No member of the Board, no member of the Committee and no employee of the Company shall be liable for any act or failure to act hereunder, except in circumstances involving his or her bad faith, gross
negligence or willful 

 misconduct, or for any act or failure to act hereunder by any other member of the Committee or employee of the Company.
The Company shall indemnify members of the Committee and any employee of the Company against any and all liabilities or expenses to which they may be subjected by reason of any act or failure to act with respect to their duties under the Plan,
except in circumstances involving his or her bad faith, gross negligence or willful misconduct. 
  
 (d) Delegation of Authority. The Board may delegate to the President of the Company the authority to (i) make grants under the Plan to employees of
the Company and its subsidiaries who are not subject to the restrictions of Section 16(b) of the Exchange Act and who are not expected to be subject to the limitations of Section 162(m) of the Code, and (ii) execute and deliver documents or take any
other ministerial actions on behalf of the Committee with respect to Awards. The grant of authority under this Subsection 2(d) shall be subject to such conditions and limitations as may be determined by the Board (as required under applicable law).
If the President makes grants pursuant to the delegated authority under this Subsection 2(d), references in the Plan to the “Committee” as they relate to making such grants shall be deemed to refer to the President. 
  
 3. Participants. All employees, officers and directors of the Company
and its subsidiaries (including members of the Board who are not employees), as well as consultants and advisors to the Company or its subsidiaries, are eligible to participate in the Plan. Consistent with the purposes of the Plan, the Committee
shall have exclusive power to select the employees, officers, directors and consultants and advisors who may participate in the Plan (“Participants”). Eligible individuals may be selected individually or by groups or categories, as
determined by the Committee in its discretion, and designation as a person to receive Awards in any year shall not require the Committee to designate such a person as eligible to receive Awards in any other year. 
  
 4. Types of Awards. Awards under the Plan may be granted in any one or
a combination of (a) Stock Options, (b) Stock Appreciation Rights, (c) Restricted Stock Awards, (d) Deferred Stock Units, and (e) Performance Awards (each as described below, and collectively, “Awards”). Awards may constitute
Performance–Based Awards, as described in Section 10. Each Award shall be evidenced by a written agreement between the Company and the Participant (an “Agreement”), which need not be identical between Participants or among Awards, in
such form as the Committee may from time to time approve; provided, however, that in the event of any conflict between the provisions of the Plan and any Agreement, the provisions of the Plan shall prevail. 
  
 5. Common Stock Available under the Plan. The aggregate number of
shares of Common Stock that may be subject to Awards shall be 1,825,000 shares of Common Stock, which may be authorized and unissued or treasury shares, subject to any adjustments made in accordance with Section 12 hereof. The maximum number of
shares of Common Stock with respect to which Awards may be granted to any individual Participant in any one calendar year shall be 300,000 shares. Any share of Common Stock subject to an Award that for any reason is cancelled or terminated without
having been exercised or vested shall again be available for Awards under the Plan; provided, however, that any such availability shall apply only for purposes of determining the aggregate number of shares of Common Stock subject to Awards and shall
not apply for purposes of determining the maximum number of shares subject to Awards that any individual Participant may receive. 
  

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 6. Stock Options. Stock Options will enable a Participant to purchase shares of Common Stock upon
set terms and at a fixed purchase price. Stock Options may be treated as (i) “incentive stock options” within the meaning of Section 422(b) of the Code (“Incentive Stock Options”), or (ii) Stock Options which do not constitute
Incentive Stock Options (“Nonqualified Stock Options”). Each Stock Option shall be subject to the terms, conditions and restrictions consistent with the Plan as the Committee may impose, subject to the following limitations: 
  
 (a) Exercise Price. The exercise price per share (the
“Exercise Price”) of Common Stock subject to a Stock Option shall be determined by the Committee and may be equal to, greater than, or less than the Fair Market Value (as defined in Section 16) of a share of Common Stock on the date the
Stock Option is granted. 
  
 (b) Payment of
Exercise Price. The Exercise Price may be paid in cash or, in the discretion of the Committee, by the delivery of shares of Common Stock that have been owned by the Participant for at least six months, or by a combination of these methods. In
the discretion of the Committee, payment may also be made by delivering a properly executed exercise notice to the Company together with a copy of irrevocable instructions to a broker to deliver promptly to the Company the amount of sale or loan
proceeds to pay the Exercise Price. To facilitate the foregoing, the Company may enter into agreements for coordinated procedures with one or more brokerage firms. The Committee may also prescribe any other method of paying the Exercise Price that
it determines to be consistent with applicable law and the purpose of the Plan, including, without limitation, in lieu of the exercise of a Stock Option by delivery of shares of Common Stock of the Company then owned by the Participant, providing
the Company with a notarized statement attesting to the number of shares owned for at least six months, where upon verification by the Company, the Company would issue to the Participant only the number of incremental shares to which the Participant
is entitled upon exercise of the Stock Option. 
  
 (c) Exercise Period. Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the Committee; provided, however, that no Stock Option shall be exercisable later than
ten years after the date it is granted. All Stock Options shall terminate at such earlier times and upon such conditions or circumstances as the Committee shall determine, as set forth in the related Agreement. 
  
 (d) Limitations on Incentive Stock Options. Incentive
Stock Options may be granted only to Participants who, at the time of the grant, are employees of the Company or a parent or subsidiary of the Company, and only at an Exercise price that is not less than the Fair Market Value of a share of Common
Stock on the date of the grant. The aggregate Fair Market Value of the Common Stock (determined as of the date of the grant) with respect to which Incentive Stock Options are exercisable for the 
  

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 first time by a Participant during any calendar year (under all option plans of the Company) shall not
exceed $100,000. For purposes of the preceding sentence, Incentive Stock Options will be taken into account in the order in which they are granted. Incentive Stock Options may not be granted to a Participant who, at the time of grant, owns stock
possessing (after the application of the attribution rules of Section 424(d) of the Code) more than 10% of the total combined voting power of all outstanding classes of stock of the Company or any subsidiary of the Company, unless the option price
is fixed at not less than 110% of the Fair Market Value of the Common Stock on the date of grant and the exercise of such Incentive Stock Option is prohibited by its terms after the expiration of five years from its date of grant. 
  
 (e) Termination of Employment, Disability or Death.

  
 (1) Except as provided below or in an
Agreement, a Stock Option may only be exercised while the Participant is employed by, or providing service to, the Company, as an employee, member of the Board or advisor or consultant. In the event that a Participant ceases to be employed by, or
provide service to, the Company for any reason other than Disability (as defined in Paragraph (5) below), death or termination for Cause (as defined in Paragraph (5) below), any Stock Option which is otherwise exercisable by the Participant shall
terminate unless exercised within 90 days after the date on which the Participant ceases to be employed by, or provide service to, the Company, but in any event no later than the date of expiration of the Stock Option. Except as otherwise provided
by the Committee, any Stock Options which are not otherwise exercisable as of the date on which the Participant ceases to be employed by, or provide service to, the Company shall terminate as of such date. 
  
 (2) In the event the Participant ceases to be employed by,
or provide service to, the Company on account of a termination for Cause by the Company, any Stock Option held by the Participant shall terminate as of the date the Participant ceases to be employed by, or provide service to, the Company. In
addition, notwithstanding any other provisions of this Section 6, if the Committee determines that the Participant has engaged in conduct that constitutes Cause at any time while the Participant is employed by, or providing service to, the Company,
or after the Participant’s termination of employment or service, any Stock Option held by the Participant shall immediately terminate. In the event the Committee determines that the Participant has engaged in conduct that constitutes Cause, in
addition to the immediate termination of all Stock Options, the Participant shall automatically forfeit all shares underlying any exercised portion of a Stock Option for which the Company has not yet delivered the share certificates, upon refund by
the Company of the Exercise Price paid by the Participant for such shares (subject to any right of setoff by the Company). 
  
 (3) In the event the Participant ceases to be employed by, or provide service to, the Company because the Participant is Disabled, any
Stock Option which is otherwise exercisable by the Participant shall terminate unless exercised within one year after the date on which the Participant ceases to be employed by, or provide service to, the Company, but in any event no later than the
date of expiration of the Stock Option. 
  

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 (4) If the Participant dies while employed by, or providing service to, the Company, any
Stock Option which is otherwise exercisable by the Participant shall terminate unless exercised within one year after the date on which the Participant ceases to be employed by, or provide service to, the Company, but in any event no later than the
date of expiration of the Stock Option. 
  
 (5)
For purposes of this Section 6(e): 
  
 (A) The
term “Company” shall mean the Company and its subsidiary corporations. 
  
 (B) “Disability” or “Disabled” shall mean a Participant’s becoming disabled within the meaning of Section
22(e)(3) of the Code. 
  
 (C) “Cause”
shall mean, except to the extent specified otherwise by the Committee, a finding by the Committee that the Participant has breached any provision of his or her terms of employment or service contract with the Company, including without limitation
covenants against competition, or has engaged in disloyalty to the Company, including, without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his or her employment or service, or has disclosed
trade secrets or confidential information of the Company to persons not entitled to receive such information. 
  
 7. Stock Appreciation Rights. Stock Appreciation Rights shall provide a Participant with the right to receive a payment, in cash, Common Stock or a
combination thereof, in an amount equal to the excess of (i) the Fair Market Value, or other specified valuation, of a specified number of shares of Common Stock on the date the right is exercised, over (ii) the Fair Market Value of such shares on
the date of grant, or other specified valuation (which shall be no less than the Fair Market Value on the date of grant). Each Stock Appreciation Right shall expire no more than ten years from its date of grant, and shall be subject to such other
terms and conditions as the Committee shall deem appropriate, including, without limitation, provisions for the forfeiture of the Stock Appreciation Right for no consideration upon termination of employment. 
  
 8. Restricted Stock Awards. Restricted Stock Awards shall consist of
Common Stock issued or transferred to Participants with or without other payments therefor as additional compensation for services to the Company. Restricted Stock Awards may be subject to such terms and conditions as the Committee determines
appropriate, including, without limitation, restrictions on the sale or other disposition of such shares and the right of the Company to reacquire such shares for no consideration upon termination of the Participant’s employment within
specified periods or prior to becoming vested. The Committee may require the Participant to deliver a duly signed stock power, endorsed in 
  

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 blank, relating to the Common Stock covered by a Restricted Stock Award. The Committee may also require that the stock
certificates evidencing such shares be held in custody or bear restrictive legends until the restrictions thereon shall have lapsed. The Restricted Stock Award shall specify whether the Participant shall have, with respect to the shares of Common
Stock subject to a Restricted Stock Award, all of the rights of a holder of shares of Common Stock of the Company, including the right to receive dividends and to vote the shares. 
  
 9. Deferred Stock Units. Deferred Stock Units shall provide a Participant with the right to receive a specified
number of shares of Common Stock at the end of a specified period. The Committee shall have complete discretion in determining the number, vesting and time of payment of Common Stock with respect to Deferred Stock Units granted to each Participant,
as set forth in the Agreement. The Committee may condition the vesting or payment of Deferred Stock Units upon the attainment of specific performance goals, or subject Deferred Stock Units to such other terms and conditions as the Committee deems
appropriate and as set forth in the Agreement, including, without limitation, provisions for the forfeiture of Deferred Stock Units (and the Common Stock payable thereunder) for no consideration upon termination of the Participant’s employment
prior to the end of a specified period. 
  
 10. Performance
Awards. Performance Awards shall provide a Participant with the right to receive a specified number of shares of Common Stock or cash at the end of a specified period. The Committee shall have complete discretion in determining the number,
amount and timing of Performance Awards granted to each Participant. The Committee may condition the vesting or payment of Performance Awards upon the attainment of specific performance goals or such other terms and conditions as the Committee deems
appropriate, including, without limitation, provisions for the forfeiture of such payment for no consideration upon termination of the Participant’s employment prior to the end of a specified period. 
  
 11. Performance-Based Awards. Certain Awards granted under the Plan
may be granted in a manner such that they qualify for the performance based compensation exemption from Section 162(m) of the Code (“Performance-Based Awards”). As determined by the Committee in its sole discretion, either the granting,
vesting or payment of such Performance-Based Awards are to be based upon one or more of the following factors: net sales; pretax income before allocation of corporate overhead and bonus; budget; earnings per share; net income; division, group or
corporate financial goals; return on stockholders’ equity; return on assets; attainment of strategic and operational initiatives; appreciation in and/or maintenance of the price of the Common Stock or any other publicly-traded securities of the
Company; market share; gross profits; earnings before interest and taxes; earnings before interest, taxes, depreciation and amortization; economic value-added models and comparisons with various stock market indices; reductions in costs; or any
combination of the foregoing. With respect to Performance-Based Awards that are not Stock Options or Stock Appreciation Rights based solely on the appreciation in the Fair Market Value of Common Stock after the grant of the Award, (i) the Committee
shall establish in writing (x) the objective performance-based goals applicable to a given period and (y) the individual employees or class of employees to which such performance-based goals apply, no later than 90 days after the commencement of
such fiscal period (but in no event after 25% of such period has elapsed), 
  

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 (ii) no Performance-Based Awards shall be payable to or vest with respect to, as the case may be, any Participant for a
given fiscal period until the Committee certifies in writing that the objective performance goals (and any other material terms) applicable to such period have been satisfied, and (iii) the Committee may reduce or eliminate the number of shares of
Common Stock or cash granted or the number of shares of Common Stock vested upon the attainment of such performance goal. After establishment of a performance goal, the Committee shall not revise such performance goal or increase the amount of
compensation payable thereunder (as determined in accordance with Section 162(m) of the Code) upon the attainment of such performance goal. 
  
 12. Adjustments to Awards. In the event of any change in the outstanding Common Stock of the Company by reason of any stock split, stock dividend,
split-up, split-off, spin-off, recapitalization, merger, consolidation, reorganization, combination or exchange of shares, a sale by the Company of all or part of its assets, or in the event of any distribution to stockholders of other than a normal
cash dividend, or other extraordinary or unusual event, if the Committee shall determine, in its discretion, that such change equitably requires an adjustment to the terms of any Awards or the number of shares of Common Stock that are subject to
Awards, such adjustment shall be made by the Committee and shall be final, conclusive and binding for all purposes of the Plan. 
  
 13. Change in Control. 
  
 (a) Effect. In its sole discretion, the Committee may determine that, upon the occurrence of a Change in Control (as defined below), all or a
portion of each outstanding Award shall become exercisable or payable in full (if applicable, and whether or not then exercisable), either upon the Change of Control or at such other date or dates that the Committee may determine, and that any
forfeiture and vesting restrictions thereon shall lapse on such date or dates. In its sole discretion, the Committee may also determine that, upon the occurrence of a Change in Control, each outstanding Stock Option and Stock Appreciation Right
shall terminate within a specified number of days after notice to the Participant thereunder, and each such Participant shall receive, with respect to each share of Common Stock subject to such Stock Option or Stock Appreciation Right, an amount
equal to the excess of the Fair Market Value of such shares immediately prior to such Change in Control over the exercise price per share of such Stock Option or Stock Appreciation Right; such amount shall be payable in cash, in one or more kinds of
property (including the property, if any, payable in the transaction) or a combination thereof, as the Committee shall determine in its sole discretion. 
  
 (b) Defined. For purposes of this Plan, a Change in Control shall be deemed to have occurred if: 
  
 (1) a tender offer (or series of related offers) shall be
made and consummated for the ownership of 30% or more of the outstanding voting securities of the Company; 
  

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 (2) the Company shall be merged or consolidated with another corporation and as a result
of such merger or consolidation less than 50% of the outstanding voting securities of the surviving or resulting corporation shall be owned in the aggregate by the former shareholders of the Company, any employee benefit plan of the Company or its
subsidiaries, and their affiliates; 
  
 (3) the
Company shall sell substantially all of its assets to another corporation that is not wholly owned by the Company; or 
  
 (4) a Person (as defined below) shall acquire 30% or more of the outstanding voting securities of the Company (whether directly,
indirectly, beneficially or of record). 
  
 For purposes of this
Section 13(b), ownership of voting securities shall take into account and shall include ownership as determined by applying the provisions of Rule 13d-3(d)(I)(i) (as in effect on the date hereof) under the Exchange Act. Also for purposes of this
Subsection 13(b), Person shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof; however, a Person shall not include (1) the Company or any of its subsidiaries; (2) a trustee or
other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries; (3) an underwriter temporarily holding securities pursuant to an offering of such securities; or (4) a corporation owned, directly or
indirectly, by the shareholders of the Company in substantially the same proportion as their ownership of stock of the Company. 
  
 14. Transferability of Awards. Except as provided below, a Participant’s rights under an Award may not be transferred or encumbered, except by
will or by the laws of descent and distribution or, in the case of Awards other than Incentive Stock Options, pursuant to a qualified domestic relations order (as defined under Section 414(p) the Code). The Committee may provide, in an Agreement for
a Nonqualified Stock Option or Restricted Stock Award, for its transferability as a gift to family members, one or more trusts for the benefit of family members, or one or more partnerships of which family members are the only partners, according to
such terms as the Committee may determine; provided that the Participant receives no consideration for the transfer and the transferred Nonqualified Stock Option or Restricted Stock Award shall continue to be subject to the same terms and conditions
as were applicable to the Nonqualified Stock Option or Restricted Stock Award immediately before the transfer. 
  
 15. Market Stand-Off. 
  
 (a) In connection with any underwritten public offering by the Company of its equity securities pursuant to an effective registration, if required by the
Committee, a Participant shall not sell, make any short sale of, loan, hypothecate, pledge, grant any option for the purchase of, or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with
respect to, any Common Stock without the prior written consent of the Company or its underwriters. Such restriction (the “Market Stand-Off”) shall be in effect for such period of time from and after the effective date of the final
prospectus for the offering as may be requested by the Company or such underwriters, but in no event shall such period exceed one hundred eighty (180) days. 
  

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 (b) A Participant shall be subject to the Market Stand-Off provided and only if the officers and
directors of the Company are also subject to similar restrictions. 
  
 (c) In order to enforce the Market Stand-Off, the Corporation may impose stop-transfer instructions with respect to the Common Stock until the end of the applicable stand-off period. 
  
 16. Fair Market Value. If Common Stock is publicly traded, then the
“Fair Market Value” per share shall be determined as follows: (1) if the principal trading market for the Common Stock is a national securities exchange or the NASDAQ SmallCap Market, the last reported sale price thereof on the relevant
date or, if there were no trades on that date, the latest preceding date upon which a sale was reported, or (2) if the Common Stock is not principally traded on such exchange or market, the mean between the last reported “bid” and
“asked” prices of Common Stock on the relevant date, as reported on NASDAQ or, if not so reported, as reported by the National Daily Quotation Bureau, Inc. or as reported in a customary financial reporting service, as applicable and as the
Committee determines. If the Common Stock is not publicly traded or, if publicly traded, is not subject to reported transactions or “bid” or “asked” quotations as set forth above, the Fair Market Value per share shall be as
determined by the Committee. 
  
 17. Withholding. All
distributions or payments made with respect to an Award shall be net of any amounts required to be withheld pursuant to applicable federal, state and local tax withholding requirements. The Company may require a Participant to remit to it or to the
subsidiary that employs a Participant an amount sufficient to satisfy such tax withholding requirements prior to the delivery of any certificates for Common Stock. In lieu thereof, the Company or the employing corporation shall have the right to
withhold the amount of such taxes from any other sums due or to become due to the Participant as the Company shall prescribe. The Committee may, in its discretion and subject to such rules as it may adopt, permit a Participant to pay all or a
portion of the federal, state and local withholding taxes arising in connection with any Award by electing to have the Company withhold shares of Common Stock deliverable thereunder having a Fair Market Value that is not in excess of the amount of
tax to be withheld. 
  
 18. Shareholder Rights. A
Participant shall not have any of the rights or privileges of a holder of Common Stock for any Common Stock that is subject to an Award, including any rights regarding voting or the payment of dividends (except as expressly provided under the terms
of the Award), unless and until a certificate representing such Common Stock has been delivered to the Participant. 
  
 19. Tenure. A Participant’s right, if any, to continue to serve the Company or its subsidiaries as a director, officer, employee, consultant
or advisor shall not be expanded or otherwise affected by his or her designation as a Participant. 
  

 9 

 20. No Fractional Shares. No fractional shares of Common Stock shall be issued or delivered
pursuant to the Plan or any Award. The Committee shall determine whether cash shall be paid in lieu of fractional shares or whether such fractional shares or any rights thereto shall be forfeited or otherwise eliminated. 
  
 21. Duration, Amendment and Termination. No Award may be granted more
than ten years after the Effective Date (as described in Section 23). The Plan may be amended or terminated in whole or in part at any time and from time to time by the Board, but no amendment shall be effective unless and until the same is approved
by shareholders of the Company where the amendment would (i) increase the total number of shares which may be issued under the Plan, (ii) increase the maximum number of shares which may be issued to any individual Participant in any one calendar
year under the Plan or (iii) otherwise require approval by shareholders by any applicable self regulatory organization (SRO). No amendment or termination of the Plan shall adversely affect in a material manner any right of any Participant with
respect to any Award theretofore granted without such Participant’s written consent. 
  
 22. Governing Law. This Plan, Awards granted hereunder and actions taken in connection with the Plan shall be governed by the laws of the State of New York regardless of the law that might otherwise apply under
applicable principles of conflicts of laws. 
  
 23. Effective
Date. This Plan shall be effective as of April 28, 2003, which is the date as of which the Plan was adopted by the Board, provided that the Plan is approved by the shareholders of the Company at its 2003 annual meeting of shareholders, and such
approval of shareholders shall be a condition to the right of each Participant to receive an Award hereunder. 
  

 10

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