Document:

Security Agreement

 Exhibit 10.6 
  
 THIS AGREEMENT AND THE RIGHTS OF THE SECURED PARTY EVIDENCED HEREBY ARE SUBJECT TO THE TERMS OF THAT CERTAIN SUBORDINATION
AGREEMENT, DATED MARCH 21, 2005 AMONG FAMILYMEDS, INC., DRUGMAX, INC., VALLEY DRUG COMPANY, AND VALLEY DRUG COMPANY SOUTH, AS THE COMPANIES, AMERISOURCEBERGEN DRUG CORPORATION AS THE SUBORDINATED CREDITOR AND GENERAL ELECTRIC CAPITAL CORPORATION, AS
AGENT, AND ANY FUTURE SENIOR LENDERS, AS SENIOR LENDER (SUCH AGREEMENT, THE “SUBORDINATION AGREEMENT”). ANY ASSIGNEE BY ACCEPTANCE OF SUCH ASSIGNMENT AGREES TO BE BOUND BY THE TERMS THEREOF. 
  
 SUBORDINATED SECURITY AGREEMENT 
  
 Each of the corporations appearing on the signature page(s) hereto
(hereinafter each called “Debtor” and collectively “Debtors”) hereby agrees that, upon the occurrence and during the continuance of the Condition (as defined below), each Debtor shall be deemed to have automatically and without
any further action of any party hereto granted to AmerisourceBergen Drug Corporation, a Delaware corporation with an office at 1300 Morris Drive, Chesterbrook, PA 19087 (hereinafter called “Secured Party”), to secure the payment and
performance of all obligations, liabilities and indebtedness of such Debtor to Secured Party, whether direct or indirect, absolute or contingent, now due or to become due, now existing or hereinafter arising,: 
  
 (1) under, from or with respect to that certain $11,500,000 Subordinated
Promissory Note dated of even date herewith from Familymeds, Inc. to Secured Party (the “Note”); 
  
 (2) under, from or with respect to that certain $11,500,000 Subordinated Convertible Debenture dated of even date herewith from DrugMax, Inc. to Secured
Party (the “Debenture”); 
  
 (3) under, from or with
respect to those certain Continuing Guaranty Agreements dated of even date herewith from each Debtor for the benefit of Secured Party (each a “Guaranty “ and together “Guaranties”) and all amendments of, supplements to and
substitutions for such Guaranties and collateral documents; 
  
 (4) all expense of Secured Party in protecting any collateral or enforcing any rights under the Note, Debenture and Guaranties, this Security Agreement or any other collateral documents, including reasonable attorney’s fees (subject to
any limitations set forth in the Subordination Agreement on the rights of the Secured Party to protect the collateral or enforce any such rights) 

 (collectively, hereinafter called the “Obligations”) a lien upon and security interest in the following
personal property of Debtors at the occurrence and during the continuance of a Condition (as defined below), and any and all additions, substitutions, accessions and proceeds thereto or thereof (collectively, the “Collateral”): 

 
 (i) all of the Debtors’ Accounts, General Intangibles, Securities,
Instruments, Chattel Paper and Instruments then existing or hereafter arising; 
  
 (ii) all guarantees of Debtors’ existing and future Accounts, General Intangibles, Chattel Paper and Instruments and all other security held by the Debtor for the payment and satisfaction thereof; 
  
 (iii) all of the Debtors’ Inventory then owned or hereafter acquired;

  
 (iv) all of the Debtors’ Equipment then owned or
hereafter acquired; 
  
 (v) all of the Debtors’ books and
records which relate to the Debtors’ Inventory, Equipment, Accounts, General Intangibles, Chattel Paper and Instruments or guarantees thereof; 
  
 (vi) all of Debtors’ then owned or thereafter acquired deposit accounts; 
  
 (vii) all insurance on all of the foregoing and the proceeds of that insurance; 
  
 (viii) all of Debtors’ money and other property of every kind and nature
then or at any time or times thereafter in the possession of or under the control of Secured Party; and 
  
 (ix) all cash and noncash proceeds and products of all of the foregoing and the proceeds and products of other proceeds and products. 
  
 Patient medical records shall not constitute Collateral hereunder notwithstanding anything
contained in this Agreement. 
  
 Notwithstanding any other provision of this
Security Agreement to the contrary, the parties hereby agree that (A) the security interest and lien described herein with respect to the Collateral shall only attach, if at all, upon the occurrence and during the continuance of a Condition, and (B)
any such security interest and lien described herein that attaches upon any such Condition shall automatically be released without any action by any party hereto upon the waiver or cure of such Condition under the terms of the Note, if a default
under the Note caused the Condition, or under the terms of the Debenture, if a default under the Debenture caused the Condition. 
  

 2 

 As used herein: 
  

(A) “Account” means any account as that term is defined in the Uniform Commercial Code as in effect in the jurisdiction of Debtor’s
organization (the “U.C.C.”) and includes any right of the Debtor to payment for goods sold or leased or for services rendered or money loaned which is not evidenced by an instrument or chattel paper (as those terms are defined in the
U.C.C.) whether or not it has been earned by performance. 
  
 (B)
“Chattel Paper” means any chattel paper as that term is defined in the U.C.C. 
  
 (C) “Condition” means either (i) the occurrence and continuance of any Event of Default described in Section 2.1(a) of the Note or Section 8.1(a) of the Debenture, after the Secured Party has given General
Electric Capital Corporation (“GECC”), written notice of such Event of Default at the notice address for GECC set forth in the Subordination Agreement and fifteen (15) days have passed since receipt by GECC of such notice, or (ii) both (1)
an Event of Default described in any of Sections 8.1(b), 8.1(c), 8.1(d) and 8.1(e) of the Debenture shall have occurred and be continuing and (2) on the next Quarterly Payment Date following such Event of Default under any of Sections 8.1(b),
8.1(c), 8.1(d) and 8.1(e) of the Debenture DrugMax fails to make the required Quarterly Principal Payment and Quarterly Interest Payment in cash. 
  
 (D) “Equipment” means any equipment as that term is defined in the U.C.C. and shall include, without limitation, all equipment, machinery,
appliances, tools, furniture and tangible personal property, whether or not the same are or may become fixtures, used or bought for use primarily in the Debtors’ business or leased by the Debtor to others, of every nature, presently existing or
hereafter acquired or created, wherever located, additions, accessories and improvements thereto and substitutions therefor and all parts which may be attached to or which are necessary for the operation and use of such personal property or
fixtures, whether or not the same shall be deemed to be affixed to real property, and all rights under or arising out of present or future contracts relating to the foregoing. All equipment is and shall remain personal property irrespective of its
use or manner of attachment to real property. 
  
 (E)
“General Intangibles” means all general intangibles as that term is defined in the U.C.C., including, without limitation, all books, correspondence, credit files, records and other documents, computer programs, computer tapes and cards and
other paper and documents in the possession or control of the Debtor or in the possession or control of any affiliate or computer service bureau, and all contract rights, claims, chooses in action, judgments, patents, patent applications,
trademarks, license agreements, royalty payments, copyrights, service names, service marks, logos, goodwill and deposit accounts. 
  
 (F) “Instruments” means all instruments as that term is defined in the U.C.C. 
  
 (G) “Inventory” means any inventory as that term is defined in the U.C.C. and shall include tangible personal
property held for sale or lease or to be furnished under 
  

 3 

 contracts of service, tangible personal property which the Debtor has so leased or furnished, and raw materials, work in
process and materials used, produced or consumed in the Debtors’ business, and shall include tangible personal property returned to the Debtor by a purchaser or lessor thereof following the sale or lease thereof by the Debtor. All equipment,
accessories and parts related to, attached to or added to items of Inventory or used in connection therewith and all accessions thereto shall be deemed to be part of the Inventory. 
  
 (H) “Prior Lien” means the existing lien on Debtors’ assets in favor of General Electric Capital Corporation
(“GECC”), as Agent for itself and Bank of America, NA, or any lien on Debtors’ assets granted to any successor Senior Lender (as defined in the Subordination Agreement). 
  
 (I) “Proceeds” means whatever is received when Collateral is sold, exchanged, collected or otherwise disposed of.

  
 (J) “Subordination Agreement” means the agreement
dated of even date herewith by and among GECC, as Agent, and any other Senior Lenders (as defined therein) as Senior Lender, Secured Party and Debtors. 
  
 Secured Party agrees that (i) no enforcement action pursuant to this Agreement shall be taken due to any Condition unless all events of default are not cured within 45
days after the commencement of such Condition; and (ii) the security interest granted under this Agreement upon the occurrence and continuance of any Condition will be automatically released if such Condition is cured or ceases to exist within 45
days after the commencement of such Condition; provided, however, that such release upon a Condition being cured or ceasing to exist may only occur once in any period of 365 consecutive days. Without limiting the generality of the foregoing, a
“Condition” as defined in part (ii) of this definition thereof shall cease to exist even if a default under Sections 8.1(b), 8.1(c), 8.1(d) or 8.1(e) of the Debenture has occurred and is continuing so long as DrugMax makes required
Quarterly Principal Payments and Quarterly Interest Payments in cash thereafter. Upon any release of the security interest in accordance with this paragraph, the Secured Party hereby authorizes the Debtors or GECC to terminate any UCC financing
statements filed by Secured Party against any Debtor if the Secured Party fails to terminate such UCC financing statements within 5 days after such release. If the security interest is released in accordance with this paragraph, a security interest
will re-attach should any subsequent Condition occur. Except for the express provisions relating to cure periods set forth in this Agreement, no provision of this Agreement shall be deemed or construed to create or extend any cure periods with
respect to the Note or Debenture beyond those set forth in the Note or Debenture, as applicable, or to permit the cure of an Event of Default other than as permitted under the Note or Debenture.  
  

 4 

 Upon the occurrence and during the continuance of a Condition and subject to the terms and conditions of the
Subordination Agreement, the Debtors shall warrant and covenant that: 
  
 (a) The Collateral and Debtors’ records with respect to its Accounts will be kept at Debtors’ addresses shown on the Guaranties until such time as written consent to a change of location is obtained from
Secured Party. 
  
 (b) Except for the security interest to be
granted hereby, the Prior Lien and “Permitted Encumbrances,” as defined in the First Amendment to Credit Agreement of December 9, 2004 among GECC, as Agent and certain of the Debtors, Debtors are the owner of the Collateral free from all
encumbrances and will defend the same against the claims and demands of all persons. Except for the Prior Lien and Permitted Encumbrances, Debtors will not pledge, mortgage or create, or suffer to exist, a security interest in the Collateral in
favor of any person other than Secured Party, and will not sell or transfer the Collateral or any interest therein except in the ordinary course of its business without the prior written consent of Secured Party. 
  
 (c) The Collateral shall remain personal property irrespective of the manner
of its attachment to any real estate. 
  
 (d) Debtors will
immediately notify Secured Party in writing of any change in address from that shown in the Guaranties, any change of state of incorporation or other organization from the state shown in this Agreement, any change of name from the name shown in this
Agreement, and shall do, make, execute and deliver all such additional and further acts, things, deeds, assurances, and instruments as Secured Party may require more completely to vest in and assure to Secured Party its rights hereunder or in any of
the Collateral. 
  
 (e) Subject to the terms and conditions of the
Subordination Agreement, upon the occurrence and during the continuance of the Condition and upon further occurrence of any of the following events or conditions: (i) default in the payment or performance of any of the Obligations of a Debtor, of
any liability or obligation to Secured Party of any maker, endorser, guarantor or surety of or for any of such Obligations, or of any covenant or liability contained or referred to herein or in any note, instrument, document or agreement evidencing
any such Obligations; (ii) any representation or warranty of a Debtor to induce Secured Party to enter into this Agreement or to extend credit terms to Debtors proving false or erroneous in any material respect; (iii) material loss, material theft,
material damage, destruction, sale (other than in the ordinary course of business) or encumbrances of or to the Collateral, or the making of any levy, thereon or seizure or attachment thereof by legal process; (iv) death, dissolution, termination of
existence, insolvency, business failure, appointment of a receiver of any part of the property of, assignment for the benefit of creditors by, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against any Debtor, or
any endorser, guarantor or surety of or for any Obligation; thereupon, and as long as such default continues, Secured Party may, subject to the terms of the Subordination Agreement, without notice or demand declare all of the Obligations to be
immediately due and payable, and Secured Party shall then have in any jurisdiction where enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party under the U.C.C., including without
limitation thereto the right to take immediate possession of the Collateral, and for the purpose Secured Party may, so far as Debtors can give authority 
  

 5 

 therefore, enter upon any premises on which the Collateral, or any part thereof, may be situated and remove the same
there from. Debtors will upon demand make the Collateral available to Secured Party at a place and time designed by Secured Party which is reasonably convenient to both parties. Secured Party will give Debtor at least ten days’ prior written
notice of the time and place of any public sale of the Collateral or of the time after which any private sale thereof is to be made. From the proceeds of the sale, Secured Party shall be entitled to retain (i) all sums secured hereby, (ii) its
reasonable expenses of retaking, holding, preparing for sale and selling and (iii) reasonable legal expenses incurred by it in connection herewith and with such sale. No waiver by Secured Party of any default shall be effective unless in writing nor
operate as a waiver of any other default or of the same default on another occasion. 
  
 (f) Subject to the terms and conditions of the Subordination Agreement, in the event of the Secured Party’s exercising any of its rights and remedies of a secured party under the U.C.C. or by any person, firm,
corporation or other entity who has guaranteed the Debtors’ obligations to the Secured Party, the Secured Party shall have the right to conduct a sale under this Security Agreement and Guarantee singly, jointly or concurrently, and in such
order as, in the opinion of the Secured Party, it deems best to protect the interest of the Secured Party. The Secured Party, in the event of a sale under this Security Agreement or under any such Guarantee, shall have the right to offer all, or a
portion, of the secured assets hereunder and all, or a portion, of the assets under the Guarantee, separately, or as an entirety, or in any combination thereof, and the income of such sale accounted for in one account, without distinction between
the items of security, or without assigning to them any proportion of such income, the Debtor hereby waiving the application of any doctrine of marshaling. 
  
 (g) Upon the occurrence and during the continuance of a Condition, Secured Party is hereby authorized to file such U.C.C. financing statements relating to
Collateral in any jurisdiction, and the Debtors shall pay all costs and expenses of filing the same or of filing this Security Agreement in all public filing offices. Upon the occurrence and during the continuance of a Condition, the original or a
copy of this Security Agreement may be filed as a financing statement. 
  
 (h) Subject to the terms and conditions of the Subordination Agreement, upon the occurrence and during the continuance of a Condition, Debtors hereby constitute and appoint Secured Party the true and lawful attorney of Debtors with full
power of substitution to take any and all appropriate action and to execute any and all documents or instruments that may be necessary or desirable to accomplish the purpose and carry out the terms of this Security Agreement. The foregoing power of
attorney is coupled with an interest and shall be irrevocable until all of the Obligations have been paid and performed in full. 
  
 Secured Party agrees that nothing in this Agreement shall be construed to create an event of default under the Note due solely to the occurrence of an event of default
under the Debenture, or to create an event of default under the Debenture due solely to the occurrence of an event of default under the Note. 
  

 6 

 Debtors hereby warrant and covenant from and after the date hereof: 
  
 (a) Debtors waive demand, notice, protest, notice of acceptance of this
Agreement, notice of loans made, credit extended, collateral received or delivered or other action taken in reliance hereon and all other demands and notices of any description. With respect both to the Obligations and the Collateral, Debtor assents
to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of Collateral, to the addition or release of any party or person primarily or secondarily liable, to the acceptance of partial
payment thereon and the settlement, compromising or adjusting of any thereof, all in such manner and at such time or times as Secured Party may deem advisable. Secured Party shall have no duty as to the collection or protection of the Collateral or
any income thereon, nor as to the preservation of rights against prior parties, nor as to the preservation of any right pertaining thereto beyond the safe custody thereof. Secured Party may exercise its rights with respect to the Collateral without
resorting or regard to other collateral or sources of reimbursement for liability. Secured Party shall not be deemed to have waived any of its rights upon or under the Obligations or the Collateral unless such waiver is in writing and signed by
Secured Party. No delay or omission on the part of Secured Party in exercising any right shall operate as a waiver of such right or any other right. A waiver on any one occasion shall not be construed as a bar to or waiver of any right on any future
occasion. All rights and remedies of Secured Party on the Obligations or the Collateral, whether evidenced hereby or by any other instrument or paper, shall be cumulative and may be exercised separately or concurrently. 
  
 (b) This Agreement and all rights and obligations hereunder, including
matters of construction, validity and performances, shall be governed by the law of the Commonwealth of Pennsylvania. 
  
 (c) Except for the security interest to be granted hereby and the Prior Lien, Debtors are the owner of the Collateral free from all encumbrances and will
defend the same against the claims and demands of all persons. Except for the Prior Lien and “Permitted Encumbrances,” as defined in the First Amendment to Credit Agreement of December 9, 2004 among GECC, as Agent and certain of the
Debtors, Debtors will not pledge, mortgage or create, or suffer to exist, a security interest in the Collateral in favor of any person other than Secured Party. 
  

(d) The rights granted herein shall be cumulative of, and shall not supercede, any rights in the Collateral or otherwise which Secured party may have
pursuant to any other document or instrument or at law; provided, however, that the Secured Party hereby authorizes the Debtors or GECC to terminate on the date hereof UCC financing statement number 09-1037555 filed by Secured Party against Valley
Drug Company South in Caddo Parish, Louisiana and any other UCC financing statements filed by the Secured Party against any debtor on or before the date hereof. 
  

 7 

 (e) This Agreement may be executed in one or more counterparts and each such counterpart shall constitute
an original, and all such counterparts together shall constitute one and the same instrument. 
  
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 8 

 Notwithstanding any other provision of this Security Agreement to contrary, the rights and remedies of the Secured Party
hereunder are subject to the terms and conditions of the Subordination Agreement. In the event of any direct conflict between the terms and conditions of this Security Agreement and the Subordination Agreement, the terms and conditions of the
Subordination Agreement shall prevail. 
  
 IN WITNESS WHEREOF,
Debtors and Secured Party have executed this Agreement on this 21st day of March, 2005. 
  

							
	DrugMax, Inc.	 	Familymeds Holdings, Inc.
				
	By:	 	  

	 	By:	 	  

	 	 	Edgardo A. Mercadante	 	 	 	Edgardo A. Mercadante
	 	 	President and CEO	 	 	 	President and CEO
		
	Familymeds, Inc.	 	Valley Drug Company South
				
	By:	 	  

	 	By:	 	  

	 	 	Edgardo A. Mercadante	 	 	 	Edgardo A. Mercadante
	 	 	President and CEO	 	 	 	President and CEO
			
	Valley Drug Company	 	 	 	 
				
	By:	 	  

	 	 	 	 
	 	 	Edgardo A. Mercadante	 	 	 	 
	 	 	President and CEO	 	 	 	 
			
	AmerisourceBergen Drug Company	 	 	 	 
				
	By:	 	  

	 	 	 	 
	Name:	 	 	 	 	 	 
	Title:	 	 	 	 	 	 

  

 9Form of 2004 Employee Stock Purchase Plan

 Exhibit 10.12 
  
 LEADIS TECHNOLOGY, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE
PLAN 
 OFFERING 
  
 Adopted by the Board of Directors on [DATE] 
  
 In this document, capitalized terms not otherwise defined shall have the same definitions of such terms as
in the Leadis Technology, Inc. 2004 Employee Stock Purchase Plan. 
  
 1. Grant; Offering Date. 
  
 (a) The Board hereby authorizes a series of Offerings pursuant to the terms of this Offering document. 
  
 (b) An Offering shall begin on the day after the last Purchase Date of the immediately preceding Offering. Each Offering shall be
approximately twelve (12) months in duration, with two (2) Purchase Periods, each of which shall be approximately six (6) months in length. Except as provided below, a Purchase Date is the last day of a Purchase Period or of an Offering, as the case
may be. Purchase Periods will commence on each [day / month] and end on [day / month], and commence on each [day / month] and end on [day / month]. 
  
 (c) Notwithstanding the foregoing: (i) if any Offering Date falls on a day that is not a Trading Day, then such Offering Date shall
instead fall on the next subsequent Trading Day, and (ii) if any Purchase Date falls on a day that is not a Trading Day, then such Purchase Date shall instead fall on the immediately preceding Trading Day. 
  
 (d) Prior to the commencement of any Offering, the
Board may change any or all terms of such Offering and any subsequent Offerings. The granting of Purchase Rights pursuant to each Offering hereunder shall occur on each respective Offering Date unless prior to such date (i) the Board determines that
such Offering shall not occur, or (ii) no shares of Common Stock remain available for issuance under the Plan in connection with the Offering. 
  
 (e) If the Company’s accountants advise the Company that the accounting treatment of purchases under the Plan will change or
has changed in a manner that the Company determines is detrimental to its best interests, then the Company may, in its discretion, take the following actions: (i) terminate each Offering hereunder that is then ongoing as of the next Purchase Date
(after the purchase of stock on such Purchase Date) under such Offering; (ii) set a new Purchase Date for each ongoing Offering and terminate such Offerings after the purchase of stock on such Purchase Date; (iii) amend the Plan and each ongoing
Offering to reduce or eliminate an accounting treatment that is detrimental to the Company’s best interests and (iv) terminate each ongoing Offering and refund any money contributed back to the participants. 
  
 (f) Notwithstanding anything in this Section 1 to the
contrary, if the Fair Market Value of a share of Common Stock on the first day of a new Purchase Period during an Offering is less than it was on the Offering Date for that Offering, then that Offering shall immediately terminate and that day shall
become the Offering Date of a new Offering. Participants in the terminated Offering shall automatically be enrolled in the new Offering that starts on such day. 
  

 1. 

 2. Eligible Employees. 
  
 (a) Each Eligible Employee, who is either on the Offering Date of an Offering hereunder (i) an
employee of the Company, (ii) an employee of a Related Corporation incorporated in the United States or (iii) an employee of a Related Corporation that is not incorporated in the United States, provided that the Board has designated that employees
of such Related Corporation are eligible to participate in the Offering, shall be granted a Purchase Right on such Offering Date of an Offering. 
  
 (b) Notwithstanding the foregoing, the following Employees shall not be Eligible Employees or be granted Purchase Rights
under an Offering: 
  
 (i) five percent
(5%) stockholders (including ownership through unexercised and/or unvested stock options) as described in Section 6(c) of the Plan; or 
  
 (ii) Employees in jurisdictions outside of the United States if, as of the Offering Date of the Offering, the grant of such
Purchase Rights would not be in compliance with the applicable laws of any jurisdiction in which the Employee resides or is employed. 
  
 (c) Notwithstanding the foregoing, a Purchase Right, which shall thereafter be deemed to be a part of the Offering, shall be
granted to each person during that Offering who (i) first becomes an Eligible Employee during the Offering, on the day after the first Purchase Date coinciding with or next following the date on which such person first satisfies the service
requirement to become an Eligible Employee, or (ii) fails to enroll in a prior Purchase Period during the Offering, on the day after the Purchase Date of such prior Purchase Period. Such Purchase Right shall have the same characteristics as any
Purchase Rights originally granted under the Offering except that: 
  
 (i) the date on which such Purchase Right is granted shall be the “Offering Date” of such Purchase Right for all purposes except for the application of the provision of Section 1(f) above (the
application of which shall be determined only by using the Offering Date of the ongoing Offering), including determination of the exercise price of such Purchase Right; and 
  
 (ii) the Offering for such Purchase Right shall begin on its Offering Date and end coincident with
the end of the ongoing Offering. 
  
 3. Purchase Rights.

  
 (a) Subject to the limitations
herein and in the Plan, a Participant’s Purchase Right shall permit the purchase of the number of shares of Common Stock purchasable with up to twenty percent (20%) of such Participant’s Earnings paid during the period of such Offering
beginning immediately after such Participant first commences participation; provided, however, that no Participant may have more than twenty percent (20%) of such Participant’s Earnings applied to purchase shares of Common Stock under
all ongoing Offerings under the Plan and all other plans of the Company and Related Corporations that are intended to qualify as Employee Stock Purchase Plans. 
  

 2. 

 (b) For Offerings hereunder, “Earnings” means the base compensation paid
to a Participant, including all salary and wages (including amounts elected to be deferred by such Participant, that would otherwise have been paid, under any cash or deferred arrangement or other deferred compensation program established by the
Company or a Related Corporation), but excluding all overtime pay, commissions, bonuses, and other remuneration paid directly to such Participant, profit sharing, the cost of employee benefits paid for by the Company or a Related Corporation,
education or tuition reimbursements, imputed income arising under any Company or Related Corporation group insurance or benefit program, traveling expenses, business and moving expense reimbursements, income received in connection with stock
options, contributions made by the Company or a Related Corporation under any employee benefit plan, and similar items of compensation. 
  
 (c) Notwithstanding the foregoing, the maximum number of shares of Common Stock that a Participant may purchase on any Purchase
Date in an Offering shall be such number of shares as has a Fair Market Value (determined as of the Offering Date for such Offering) equal to (x) $25,000 multiplied by the number of calendar years in which the Purchase Right under such Offering has
been outstanding at any time, minus (y) the Fair Market Value of any other shares of Common Stock (determined as of the relevant Offering Date with respect to such shares) that, for purposes of the limitation of Section 423(b)(8) of the Code, are
attributed to any of such calendar years in which the Purchase Right is outstanding. The amount in clause (y) of the previous sentence shall be determined in accordance with regulations applicable under Section 423(b)(8) of the Code based on (i) the
number of shares previously purchased with respect to such calendar years pursuant to such Offering or any other Offering under the Plan, or pursuant to any other Company or Related Corporation plans intended to qualify as Employee Stock Purchase
Plans, and (ii) the number of shares subject to other Purchase Rights outstanding on the Offering Date for such Offering pursuant to the Plan or any other such Company or Related Corporation Employee Stock Purchase Plan.  
  
 (d) Notwithstanding the foregoing, the maximum number
of shares of Common Stock that an Eligible Employee may purchase on any Purchase Date during any Offering shall not exceed [            ] shares. 
  
 (e) The maximum aggregate number of shares of Common
Stock available to be purchased by all Participants under an Offering shall be the number of shares of Common Stock remaining available under the Plan on the Offering Date. If the aggregate purchase of shares of Common Stock upon exercise of
Purchase Rights granted under the Offering would exceed the maximum aggregate number of shares available, the Board shall make a pro rata allocation of the shares available in a uniform and equitable manner. 
  
 4. Purchase Price. 
  
 The purchase price of shares of Common Stock under the
Offering shall be the lesser of: (i) eighty-five percent (85%) of the Fair Market Value of such shares of Common Stock on the Offering Date, or (ii) eighty-five percent (85%) of the Fair Market Value of such shares of Common Stock on the applicable
Purchase Date, in each case rounded up to the nearest whole cent per share. 
  

 3. 

 5. Participation. 
  
 (a) Subject to Section 5(c), an Eligible Employee may elect to participate in an Offering on the
Offering Date or on the day after a Purchase Date during the Offering, as applicable. An Eligible Employee shall elect his or her payroll deduction percentage on such enrollment form as the Company provides. The completed enrollment form must be
delivered to the Company prior to the date participation is to be effective, unless a later time for filing the enrollment form is set by the Company for all Eligible Employees with respect to a given Offering. Payroll deduction percentages must be
expressed in whole percentages of Earnings, with a minimum percentage of one percent (1%) and a maximum percentage of twenty percent (20%). 
  
 (b) A Participant may increase his or her participation level only once during a Purchase Period. A Participant may decrease
(including a decrease to zero percent (0%)) his or her participation level no more than once during a Purchase Period. Any such change in participation level shall be made by delivering a notice to the Company or a designated Related Corporation in
such form as the Company provides prior to the ten (10) day period (or such shorter period of time as determined by the Company and communicated to Participants) immediately preceding the next Purchase Date of the Purchase Period for which it is to
be effective. 
  
 (c) A Participant may
withdraw from an Offering and receive a refund of his or her Contributions (reduced to the extent, if any, such Contributions have been used to acquire shares of Common Stock for the Participant on any prior Purchase Date) without interest, at any
time prior to the end of the Offering, excluding only each ten (10) day period immediately preceding a Purchase Date (or such shorter period of time determined by the Company and communicated to Participants), by delivering a withdrawal notice to
the Company or a designated Related Corporation in such form as the Company provides. A Participant who has withdrawn from an Offering shall not again participate in such Offering, but may participate in subsequent Offerings under the Plan in
accordance with the terms of the Plan and the terms of such subsequent Offerings. 
  
 (d) Notwithstanding the foregoing or any other provision of this Offering document or of the Plan to the contrary, neither the enrollment of any Eligible Employee in the Plan nor any forms
relating to participation in the Plan shall be given effect until such time as a registration statement covering the registration of the shares under the Plan that are subject to the Offering has been filed by the Company and has become effective.

  
 (e) Once an Eligible Employee enrolls
in an Offering and authorizes payroll deductions, the Eligible Employee automatically shall be enrolled for all subsequent Offerings until he or she elects to withdraw from an Offering pursuant to paragraph (c) above or his or her participation in
the Plan terminates (due to the termination of the Plan, ineligibility of the participant or any other reason described in the Plan and this Offering document). 
  

 4. 

 6. Purchases. 
  
 Subject to the limitations contained herein, on each Purchase Date, each Participant’s Contributions
(without any increase for interest) shall be applied to the purchase of whole shares, up to the maximum number of shares permitted under the Plan and the Offering. 
  
 7. Notices and Agreements. 
  

Any notices or agreements provided for in an Offering or the Plan shall be given in writing, in a form provided by the Company, and
unless specifically provided for in the Plan or this Offering, shall be deemed effectively given upon receipt or, in the case of notices and agreements delivered by the Company, five (5) days after deposit in the United States mail, postage prepaid.

  
 8. Exercise Contingent on Stockholder Approval.

  
 The Purchase Rights granted under an
Offering are subject to the approval of the Plan by the stockholders of the Company as required for the Plan to obtain treatment as an Employee Stock Purchase Plan. 
  
 9. Offering Subject to Plan. 
  
 Each Offering is subject to all the provisions of the Plan, and the provisions of the Plan are hereby made a
part of the Offering. The Offering 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 the event of any conflict between the provisions of an
Offering and those of the Plan (including interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the Plan), the provisions of the Plan shall control. 
  

 5.

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