Document:

ex10-1.htm

Exhibit 10.1

 

 

THIRD AMENDMENT TO OFFICE LEASE

 

This Third Amendment to Office Lease (the “Third Amendment”), dated July 11, 2011, is made by and between DOUGLAS EMMETT 2000, LLC, a Delaware limited liability company (“Landlord”), with offices at 808 Wilshire Boulevard, Suite 200, Santa Monica, California 90401, and REACHLOCAL, INC., a Delaware corporation (“Tenant”), with offices at 21700 Oxnard Street, Suite 1600, Woodland Hills, California 91367.

 

 

WHEREAS,

 

A.           Landlord and Tenant are parties to a certain Office Lease dated August 30, 2006 (the “Original Lease”), as amended by a certain First Amendment to Office Lease dated January 31, 2008 (the “First Amendment”); a certain Memorandum of Lease Term Dates and Rent dated March 31, 2008; and a certain Memorandum of Lease Term Dates and Rent dated July 11, 2008 (collectively, the “Memoranda” and, collectively with the Original Lease and the First Amendment, the “Lease”) pursuant to which Tenant leases from Landlord and Landlord leases to Tenant space in the
property located at 21700 Oxnard Street, Woodland Hills, California 91367 (the “Building”), commonly known as Suite 1500, Suite 1600 and Suite 1610 (collectively, the “Existing Premises”);

 

B.           Landlord and Tenant subsequently entered into that certain Second Amendment to Office Lease dated September 1, 2010 (the “Second Amendment”) pursuant to which Tenant expanded its occupancy in two (2) phases to include a portion of the 15th and 16th floors;

 

C.           The provisions of the Second Amendment specify that the Phase I and Phase II Expansion Dates shall be the ninety-first (91st) day after the respective Delivery Dates;

 

D.           The provisions of the Second Amendment further specify that the Tenant’s Share and Tenant’s Share of Common Area shall be appropriately adjusted based upon the final certification of the Usable Area of the 16th Floor;

 

E.           Certification of the Usable Area has now been received.

 

NOW, THEREFORE, in consideration of the covenants and provisions contained herein, and other good and valuable consideration, the sufficiency of which Landlord and Tenant hereby acknowledge, Landlord and Tenant agree:

 

	
1.

	
Confirmation of Defined Terms. Unless modified herein, all terms previously defined and capitalized in the Lease shall hold the same meaning for the purposes of this Third Amendment.

 

	
2.

	
Confirmation of Expansion Dates and Term. The Phase I Expansion Date is hereby confirmed to be March 2, 2011 and the Term is hereby confirmed from and including March 2, 2011 to and including December 31, 2021; and the Phase II Expansion Date is hereby confirmed to be March 30, 2011 and the Term is hereby confirmed from and including March 30, 2011 to and including December 31, 2021.

 

	
3.

	
Confirmation of Usable Area, Tenant’s Share and Tenant’s Common Area Share. The Usable Area of the 16th Floor is hereby confirmed to be 22,856 square feet. Tenant’s Share for the 16th floor is confirmed to be 5.8%; and Tenant’s Common Area Share for the 16th floor is confirmed to be 3.87%.

 

	
Suites

	
Square Feet of

Usable Area

	
Tenant’s

Share

	
Tenant’s Share of the

Common Area

	
1600/1610

	
12,055

	
3.06%

	
2.04%

	
1635

	
880

	
0.22%

	
0.15%

	
1640

	
1,957

	
0.50%

	
0.33%

	
1650

	
6,218

	
1.58%

	
1.05%

	
1680

	
1,746

	
0.44%

	
0.30%

	
TOTAL

	
22,856

	
5.80%

	
3.87%

  

  

  

THIRD AMENDMENT TO OFFICE LEASE (continued)

 

 

	
4.

	
Revision in Fixed Monthly Rent.

 

a) Phase I Expansion Premises

 

Commencing March 2,2011 and continuing through March 31, 2012, the Fixed Monthly Rent payable by Tenant shall be $10,057.90 per month. Commencing April 1, 2012 and continuing through March 31, 2013, the Fixed Monthly Rent payable by Tenant shall increase from $10,057.90 per month to $10,359.64 per month;

 

Commencing April 1, 2013 and continuing through March 31, 2014, the Fixed Monthly Rent payable by Tenant shall increase from $10,359.64 per month to $10,670.43 per month;

 

Commencing April 1, 2014 and continuing through March 31, 2015, the Fixed Monthly Rent payable by Tenant shall increase from $10,670.43 per month to $10,990.54 per month;

 

Commencing April 1, 2015 and continuing through March 31, 2016, the Fixed Monthly Rent payable by Tenant shall increase from $10,990.54 per month to $11,320.26 per month;

 

Commencing April 1, 2016 and continuing through March 31, 2017, the Fixed Monthly Rent payable by Tenant shall increase from $11,320.26 per month to $11,659.86 per month;

 

Commencing April 1, 2017 and continuing through March 31, 2018, the Fixed Monthly Rent payable by Tenant shall increase from $11,659.86 per month to $12,009.66 per month;

 

Commencing April 1, 2018 and continuing through March 31, 2019, the Fixed Monthly Rent payable by Tenant shall increase from $12,009.66 per month to $12,369.95 per month;

 

Commencing April 1, 2019 and continuing through March 31, 2020, the Fixed Monthly Rent payable by Tenant shall increase from $12,369.95 per month to $12,741.05 per month;

 

Commencing April 1, 2020 and continuing through March 31, 2021, the Fixed Monthly Rent payable by Tenant shall increase from $12,741.05 per month to $13,123.28 per month; and

 

Commencing April 1, 2021 and continuing throughout the remainder of the Extended Term, the Fixed Monthly Rent payable by Tenant shall increase from $13,123.28 per month to $13,516.98 per month.

 

b) Phase II Expansion Premises

 

Commencing-March 30, 2011 and continuing through March 31, 2012, the Fixed Monthly Rent payable by Tenant shall be $28,145.10 per month.

 

Commencing April 1, 2012 and continuing through March 31, 2013, the Fixed Monthly Rent payable by Tenant shall increase from $28,145.10 per month to $28,989.45 per month;

 

Commencing April 1, 2013 and continuing through March 31, 2014, the Fixed Monthly Rent payable by Tenant shall increase from $28,989.45 per month to $29,859.14 per month;

 

Commencing April 1, 2014 and continuing through March 31, 2015, the Fixed Monthly Rent payable by Tenant shall increase from $29,859.14 per month to $30,754.91 per month;

 

Commencing April 1, 2015 and continuing through March 31, 2016, the Fixed Monthly Rent payable by Tenant shall increase from $30,754.91 per month to $31,677.56 per month;

 

Commencing April 1, 2016 and continuing through March 31, 2017, the Fixed Monthly Rent payable by Tenant shall increase from $31,677.56 per month to $32,627.88 per month;

 

Commencing April 1, 2017 and continuing through March 31, 2018, the Fixed Monthly Rent payable by Tenant shall increase from $32,627.88 per month to $33,606.72 per month;

 

Commencing April 1, 2018 and continuing through March 31, 2019, the Fixed Monthly Rent payable by Tenant shall increase from $33,606.72 per month to $34,614.92 per month;

 

  

2

  

THIRD AMENDMENT TO OFFICE LEASE (continued)

 

 

Commencing April 1, 2019 and continuing through March 31, 2020, the Fixed Monthly Rent payable by Tenant shall increase from $34,614.92 per month to $35,653.37 per month;

 

Commencing April 1, 2020 and continuing through March 31, 2021, the Fixed Monthly Rent payable by Tenant shall increase from $35,653.37 per month to $36,722.97 per month; and

 

Commencing April 1, 2021 and continuing throughout the remainder of the Extended Term, the Fixed Monthly Rent payable by Tenant shall increase from $36,722.97 per month to $37,824.66 per month.

 

Notwithstanding the foregoing, Tenant shall be permitted to defer fifty percent (50%) of the Fixed Monthly Rent due for the Phase I Expansion Premises for the period April 1, 2011 through November 30, 2012 and fifty percent (50%) of the Fixed Monthly Rent due for the Phase II Expansion Premises for the period April 1, 2011 through November 30, 2012 (collectively, such amounts shall be added to the “Rent Deferral Amount” defined in Section 6(a) of the Second Amendment).

 

	
5.

	
Amendment of Section 5.1 of Exhibit B of the Second Amendment. Section 5.1 of Exhibit B of the Second Amendment is hereby deleted in its entirety and replaced with the following:

 

5.1 Allowance. In accordance with the terms and procedures specified below, Landlord shall pay to Tenant for the Improvements, an allowance, not to exceed the sum of $25.00 per square foot of Rentable Area within the Expansion Premises to be applied solely to the construction of Improvements in the Expansion Premises and an allowance not to exceed the sum of $10.00 per square foot of Rentable Area within Existing Premises to be applied solely to the construction of Improvements in the Existing Premises (collectively, the “Allowance”). The Allowance
shall be available for disbursement to the Tenant after January 1, 2011 and through December 1, 2011, subject to a day for day extension for any Landlord Caused Delay, Force Majeure event or in the event the Phase I Expansion Premises are delivered after December 1, 2010 or the Phase II Expansion Premises are delivered after January 1, 2010, and Landlord shall have no obligation to disburse the Allowance prior to January 1,2011 or after December 1, 2011, subject to a day for day extension for any Landlord Caused Delay, Force Majeure event or in the event the Phase I Expansion Premises are delivered after December 1, 2010 or Phase II Expansion Premises are delivered after January 1, 2010 (provided that if Tenant has complied with all of the conditions
precedent required for disbursement of the Allowance prior to December 1, 2011 but Landlord has not yet disbursed such the amount requested then, subject to Tenant’s compliance with the terms and conditions of this Exhibit B, Tenant shall be entitled to such disbursement).

 

	
6.

	
Warranty of Authority. If Landlord or Tenant signs as a corporation or a partnership, each of the persons executing this Third Amendment on behalf of Landlord or Tenant hereby covenants and warrants that the corporation executing hereinbelow is a duly authorized and existing entity that is qualified to do business in California; that the person(s) signing on behalf of either Landlord or Tenant have full right and authority to enter into this Third Amendment; and that each and every person signing on behalf of either Landlord or Tenant are authorized in writing to do so.

 

	
7.

	
Successors and Heirs. The provisions of this Third Amendment shall inure to the benefit of Landlord’s and Tenant’s respective successors, assigns, heirs and all persons claiming by, through or under them.

 

	
8.

	
Confidentiality. Except as may be required by law, Landlord and Tenant agree that the covenants and provisions of this Third Amendment shall not be divulged to anyone not directly involved in the management, administration, ownership, lending against, or subleasing of the Premises, other than Tenant’s or Landlord’s counsel-of-record or leasing or sub-leasing broker of record.

 

	
9.

	
Governing Law. The provisions of this Third Amendment shall be governed by the laws of the State of California.

 

	
  

	
10. Reaffirmation. Landlord and Tenant acknowledge and agree that the Lease, as amended herein, constitutes the entire agreement by and between Landlord and Tenant relating to the Premises, and supersedes any and all other agreements written or oral between the parties hereto. Furthermore, except as modified herein, all other covenants and provisions of the Lease shall remain unmodified and in full force and effect.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this document as of the day and year written below.

 

	
LANDLORD:

	  	
TENANT:

	 	 	 
	
DOUGLAS EMMETT 2000, LLC, a

Delaware limited liability company

	  	
REACHLOCAL, INC.,

a Delaware corporation

	 	 	 
	
By:          DOUGLAS EMMETT

               MANAGEMENT, LLC, a Delaware

               limited liability company, Its Agent

	  	  
	 	 	 
	
By:          DOUGLAS EMMETT

                MANAGEMENT, INC., a Delaware

                corporation, Its Manager

	  	
By:        /s/ Ross G. Landsbaum                    

              Ross G. Landsbaum, CFO

	  	 	 
	
By:          /s/ Kenneth M. Panzer                       

               Kenneth M. Panzer, COO

	  	  
	
Dated:    July 22, 2011ex10-2.htm

Exhibit 10.2

DUTCH EMPLOYEE FORM

 

 

REACHLOCAL, INC.

AMENDED AND RESTATED 2008 STOCK INCENTIVE PLAN

 

STOCK OPTION GRANT NOTICE AND

STOCK OPTION AGREEMENT

 

ReachLocal, Inc., a Delaware corporation (the “Company”), pursuant to its Amended and Restated 2008 Stock Incentive Plan (the “Plan”), hereby grants to the individual listed below (the “Optionee”), an option to purchase the number of shares of the common stock of the Company
(“Common Stock”), set forth below (the “Option”).  This Option is subject to all of the terms and conditions set forth herein and in the Stock Option Agreement attached hereto as Exhibit A (the “Stock Option Agreement”) and the Plan, which are incorporated herein by reference.  Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Grant Notice and the Stock Option Agreement.

 

	
Optionee:

	  
	
Grant Date:

	  
	
Vesting Commencement Date:

	  
	
Exercise Price per Share:

	
$                                                                           

	
Total Exercise Price:

	
$                                                                           

	
Total Number of Shares

Subject to the Option:

	
 shares

	
Expiration Date:

	  

	Type of Option:      	Non-Qualified Stock Option

 

	
Vesting Schedule:

	
Subject to the Optionee’s continued status as an Employee, the Option shall vest and become exercisable with respect to twenty-five percent (25%) of the shares of Common Stock subject thereto on the first anniversary of the Vesting Commencement Date set forth above (the “Vesting Commencement Date”), and with respect to an additional 1/48th of the shares of Common Stock subject thereto on each monthly anniversary thereafter.

 

By his or her signature, the Optionee agrees to be bound by the terms and conditions of the Plan, the Stock Option Agreement and this Grant Notice.  The Optionee has reviewed the Stock Option Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Grant Notice and fully understands all provisions of this Grant Notice, the Stock Option Agreement and the Plan.  The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or relating to the Option.

 

	
REACHLOCAL, INC.

	  	
OPTIONEE

 

	
By:

	
 

	  	
By:

	  
	
Print Name:

	  	  	
Print Name:

	  
	
Title:

	  	  	  	  
	
Address:

	  	  	
Address:

	  
	  	  	  	  	  

 

  

  

  

 

EXHIBIT A

 

TO STOCK OPTION GRANT NOTICE

 

STOCK OPTION AGREEMENT

 

Pursuant to the Stock Option Grant Notice (the “Grant Notice”) to which this Stock Option Agreement (this “Agreement”) is attached, ReachLocal, Inc., a Delaware corporation (the “Company”), has granted to the Optionee an option under the Company’s Amended and Restated 2008 Stock Incentive Plan (the
“Plan”) to purchase the number of shares of Common Stock indicated in the Grant Notice.

 

ARTICLE I.

 

GENERAL

 

1.1 Defined Terms.  Wherever the following terms are used in this Agreement they shall have the meanings specified below, unless the context clearly indicates otherwise. Capitalized terms not specifically defined herein shall have the meanings specified in the Plan and the Grant Notice.

 

(a) “Cause” shall be deemed to exist if the Optionee is terminated by the Company (which for the purposes of this definition will include any Subsidiary that is the employer of the Optionee) for any of the following reasons: (i) the Optionee’s willful failure to substantially perform the Optionee’s duties and responsibilities to the Company, (ii) the Optionee’s commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct that has
caused material injury to the Company, (iii) unauthorized use or disclosure by the Optionee of any proprietary information or trade secrets of the Company or any other party to which the Optionee owes an obligation of nondisclosure as a result of the Optionee’s relationship with the Company, (iv) the Optionee’s willful material breach of any of the Optionee’s obligations under any written agreement or covenant with the Company, or (v) conviction of, or plea of “guilty” or “no contest” to, a felony under the laws of the United States or any state thereof or the Netherlands, to the material detriment of the Company; (vi) or any other reason that could justify a dismissal for cause within the meaning of article 7:667 of the Dutch Civil Code.

 

(b) “Termination of Employment” shall mean the time when the employee-employer relationship between the Optionee and the Company or any Subsidiary is terminated for any reason, with or without Cause, including, but not by way of limitation, a termination by resignation, discharge, death, disability or retirement; but excluding terminations where there is a simultaneous reemployment or continuing employment of the Optionee by the Company or any Subsidiary. The Administrator, in its absolute
discretion, shall determine the effect of all matters and questions relating to Termination of Employment, including, but not by way of limitation, the question of whether a particular leave of absence constitutes a Termination of Employment.

 

1.2 Incorporation of Terms of Plan.  The Option is subject to the terms and conditions of the Plan which are incorporated herein by reference.  In the event of any inconsistency between the Plan and this Agreement, the terms of the Plan shall control.

 

ARTICLE II.

 

GRANT OF OPTION

 

2.1 Grant of Option.  For good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of the number of shares of Common Stock set forth in the Grant Notice, upon the terms and
conditions set forth in the Plan and this Agreement.  The Optionee and Company hereby acknowledge that, for the purposes of Options awarded to Optionees in the Netherlands, only employees are Eligible Individuals.

 

  

A-1

  

 

2.2 Exercise Price.  The exercise price of the shares of Common Stock subject to the Option shall be as set forth in the Grant Notice, without commission or other charge; provided, however, that the price per share of the shares of Common Stock subject to the Option shall not be less than 100% of the Fair Market Value of a share of
Common Stock on the Grant Date.

 

2.3 No Right of Employment.  Nothing in the Plan or this Agreement shall confer upon the Optionee any right to continue in the employ or service of the Company or any Subsidiary or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which rights are hereby expressly reserved, to discharge or terminate the services of the Optionee at any time for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement
between the Company or a Subsidiary and the Optionee.

 

ARTICLE III.

 

PERIOD OF EXERCISABILITY

 

3.1 Commencement of Exercisability.1

 

(a) Subject to Sections 3.2, 3.3, 5.11 and 5.14, the Option shall become vested and exercisable in such amounts and at such times as are set forth in the Grant Notice.

 

(b) No portion of the Option which has not become vested and exercisable at the date of the Optionee’s Termination of Employment shall thereafter become vested and exercisable, except as may be otherwise provided by the Administrator or as set forth in a written agreement between the Company and the Optionee.

 

3.2 Duration of Exercisability.  The installments provided for in the vesting schedule set forth in the Grant Notice are cumulative.  Each such installment which becomes vested and exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and exercisable until it becomes unexercisable under Section 3.3.

 

3.3 Expiration of Option.  The Option may not be exercised to any extent by anyone after the first to occur of the following events:

 

(a) The expiration of seven years from the Grant Date;

 

(b) The expiration of three months from the date of the Optionee’s Termination of Employment, unless such termination occurs by reason of the Optionee’s death or Disability or by the Company for Cause;

 

(c) The expiration of one year from the date of the Optionee’s Termination of Employment by reason of the Optionee’s death or Disability; or

 

 

1 Adam:  Confirm whether options granted to Dutch employees will be subject to accelerated vesting.

  

A-2

  

 

(d) The date of the Optionee’s Termination of Employment by the Company for Cause.

 

3.4 Dutch Tax Obligations.

 

(a) Tax Obligations. Any Tax Liability shall be for the account of the Optionee (a “Tax Liability” being, for the purpose of this Section 3.4, any liability for income tax, wage tax, or social security contributions) that is attributable to (1) the grant or exercise of, or any benefit derived by the Optionee from, the Option, (2) the acquisition by the Optionee of shares of Common
Stock on exercise of the Option, or (3) the disposal of any shares of Common Stock.

 

(b) Tax Indemnity.  Optionee agrees to indemnify and keep indemnified the Company or his employer (as appropriate) from and against any liability for or obligation to pay any Tax Liability.

 

(c) Tax Liability.  The Company or the employer (as appropriate) may take such steps as considered necessary or appropriate to retain any taxes which the Company or the employer is required by any law or regulation of any governmental authority to withhold in connection with the grant or exercise of the Option, the acquisition by the Optionee of shares of Common Stock on exercise of the Option or the disposal of any shares of Common Stock including withholding of such taxes from the Optionee’s salary or other
payments due to the Optionee. The Option cannot be exercised until the Optionee has made such arrangements as the Company may require for the satisfaction of any Tax Liability that may arise in connection with the exercise of the Option and/or the acquisition of shares of Common Stock by the Optionee.  The Company shall not be required to issue, allot or transfer shares of Common Stock until the Optionee has satisfied this obligation.

 

ARTICLE IV.

 

EXERCISE OF OPTION

 

4.1 Person Eligible to Exercise.  Except as provided in Section 5.2(b), during the lifetime of the Optionee, only the Optionee may exercise the Option or any portion thereof.  After the death of the Optionee, any exercisable portion of the Option may, prior to the time when the Option becomes unexercisable under Section 3.3, be exercised by the Optionee’s personal representative or by any person empowered to do so under the deceased the Optionee’s will or under the then applicable
laws of descent and distribution.

 

4.2 Partial Exercise.  Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.3.

 

4.3 Manner of Exercise.  The Option, or any exercisable portion thereof, may be exercised solely by delivery to the Secretary of the Company (or any third party administrator or other person or entity designated by the Company) of all of the following prior to the time when the Option or such portion thereof becomes unexercisable under Section 3.3:

 

(a) An exercise notice in a form specified by the Administrator, stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable rules established by the Administrator;

 

  

A-3

  

 

(b) The receipt by the Company of full payment for the shares of Common Stock with respect to which the Option or portion thereof is exercised, including payment of any applicable withholding tax, which may be in one or more of the forms of consideration permitted under Section 4.4;

 

(c) Any other written representations or documents as may be required in the Administrator’s reasonable discretion to evidence compliance with the Securities Act or any other applicable law rule, or regulation; and

 

(d) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the Option.

 

Notwithstanding any of the foregoing, the Company shall have the right to specify all conditions of the manner of exercise, which conditions may vary by country and which may be subject to change from time to time.

 

4.4 Method of Payment.  Payment of the exercise price shall be by any of the following, or a combination thereof, at the election of the Optionee:

 

(a) Cash;

 

(b) Cheque;

 

(c) With the consent of the Administrator, delivery of a notice that the Optionee has placed a market sell order with a broker with respect to shares of Common Stock then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction of the aggregate exercise price; provided, that payment of such proceeds is then made to the Company upon settlement of such sale;

 

(d) With the consent of the Administrator, surrender of other shares of Common Stock which have been owned by the Optionee for such period of time as may be required by the Administrator in order to avoid adverse accounting consequences and having a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares of Common Stock with respect to which the Option or portion thereof is being exercised;

 

(e) With the consent of the Administrator, surrendered shares of Common Stock issuable upon the exercise of the Option having a Fair Market Value on the date of exercise equal to the aggregate exercise price of the shares of Common Stock with respect to which the Option or portion thereof is being exercised; or

 

(f) With the consent of the Administrator, such other form of legal consideration as may be acceptable to the Administrator.

 

4.5 Conditions to Issuance of Stock Certificates.  The shares of Common Stock deliverable upon the exercise of the Option, or any portion thereof, may be either previously authorized but unissued shares of Common Stock or issued shares of Common Stock which have then been reacquired by the Company.  Such shares of Common Stock shall be fully paid and nonassessable.  The Company shall not be required to issue or deliver any certificates or make any book entries evidencing shares of
Common Stock purchased upon the exercise of the Option or portion thereof prior to fulfillment of the conditions set forth in Section 11.4 of the Plan.

 

  

A-4

  

 

4.6 Rights as Stockholder.  The holder of the Option shall not be, nor have any of the rights or privileges of, a stockholder of the Company in respect of any shares of Common Stock purchasable upon the exercise of any part of the Option unless and until such shares of Common Stock shall have been issued by the Company to such holder (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment will be made for a
dividend or other right for which the record date is prior to the date the shares of Common Stock are issued, except as provided in Section 13.2 of the Plan.

 

ARTICLE V.

 

OTHER PROVISIONS

 

5.1 Administration.  The Administrator shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret, amend or revoke any such rules.  All actions taken and all interpretations and determinations made by the Administrator in good faith shall be final and binding upon the Optionee, the Company and all other interested persons.  No member of the
Administrator or the Board shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan, this Agreement or the Option.

 

5.2 Transferability of Option.

 

(a) Except as otherwise set forth in the Plan or as provided in Section 5.2(b) below:

 

(i) The Option may not be sold, pledged, assigned or transferred in any manner other than by will or the laws of descent and distribution or, subject to the consent of the Administrator, pursuant to a DRO, unless and until the Option has been exercised, or the shares underlying the Option have been issued, and all restrictions applicable to such shares have lapsed;

 

(ii) The Option shall not be liable for the debts, contracts or engagements of the Optionee or his successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, hypothecation, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect, except to the extent that such disposition is permitted by the preceding sentence; and

 

(iii) During the lifetime of the Optionee, only the Optionee may exercise the Option (or any portion thereof), unless it has been disposed of pursuant to a DRO; after the death of the Optionee, any exercisable portion of the Option may, prior to the time when such portion becomes unexercisable under the Plan or this Agreement, be exercised by his personal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution.

 

(b) Notwithstanding any other provision in this Agreement, the Optionee may, in the manner determined by the Administrator, designate a beneficiary to exercise the rights of the Optionee and to receive any distribution with respect to the Option upon the Optionee’s death.  A beneficiary, legal guardian, legal representative, or other person claiming any rights pursuant to the Plan is subject to all terms and conditions of the Plan and this Agreement, except to the extent the Plan and this Agreement otherwise provide, and to any additional restrictions deemed necessary or appropriate by the
Administrator.  If the Optionee is married and resides in a community property state, a designation of a person other than the Optionee’s spouse as his or her beneficiary with respect to more than 50% of the Optionee’s interest in the Option shall not be effective without the prior written consent of the Optionee’s spouse.  If no beneficiary has been designated or survives the Optionee, payment shall be made to the person entitled thereto pursuant to the Optionee’s will or the laws of descent and distribution.  Subject to the foregoing, a beneficiary designation may be changed or revoked by the Optionee at any time provided the change or revocation is filed with the Administrator prior to the Optionee’s death.

 

  

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5.3 Lock-Up Period.  The Optionee hereby agrees that, if so requested by the Company or any representative of the underwriters (the “Managing Underwriter”) in connection with any registration of the offering of any securities of the Company under the Securities Act or any applicable state laws, the Optionee shall not sell or otherwise transfer any shares of Common Stock or other
securities of the Company during the 180-day period (or such longer period as may be requested in writing by the Managing Underwriter and agreed to in writing by the Company) following the effective date of a registration statement of the Company filed under the Securities Act in connection with the Company’s initial public offering of Common Stock (the “Market Standoff Period”).  The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Standoff Period and these restrictions shall be binding on any transferee of such shares of Common Stock.  Notwithstanding the foregoing, the 180-day period may be extended for up to such number of additional days as is deemed
necessary by the Company or the Managing Underwriter to continue coverage by research analysts in accordance with NASD Rule 2711 or any successor rule.

 

5.4 Tax Consultation.  Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase or disposition of the shares of Common Stock subject to the Option.  Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of such shares and that Optionee is not relying on the Company for any tax advice.

 

5.5 Adjustments.  The Optionee acknowledges that the Option is subject to modification and termination in certain events as provided in this Agreement and Article 13 of the Plan.

 

5.6 Data Protection.  By signing this Agreement, the Optionee acknowledges and agrees that:

 

(a) The Company and any group companies or affiliates are permitted to hold and process personal (and sensitive personal) information and data about the Optionee as part of their personnel and other business records and may use such information in the course of its business;

 

(b) The Company and any group companies or affiliates may disclose and transfer such information (as described in (a) above) to third parties, including where they are situated outside the European Economic Area, in the event that such disclosure is in their view required for the proper conduct of their business; and

 

(c) This Section 5.6 applies to information held, used or disclosed in any medium.

 

5.7 Notices.  Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of the Secretary of the Company at the address given beneath the signature of the Company’s authorized officer on the Grant Notice, and any notice to be given to the Optionee shall be addressed to the Optionee at the address given beneath the Optionee’s signature on the Grant Notice.  By a notice given pursuant to this Section 5.7, either party may
hereafter designate a different address for notices to be given to that party.  Any notice which is required to be given to the Optionee shall, if the Optionee is then deceased, be given to the person entitled to exercise his or her Option pursuant to Section 4.1 by written notice under this Section 5.7.  Any notice shall be deemed duly given when sent via email or when sent by certified mail (return receipt requested) and deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service or similar Dutch postal service.

 

  

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5.8 Optionee’s Representations.  If the shares of Common Stock purchasable pursuant to the exercise of this Option have not been registered under the Securities Act or any applicable state laws on an effective registration statement at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, make such written representations as are deemed necessary or appropriate by the Company and/or its
counsel.

 

5.9 Titles.  Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 

5.10 Governing Law.  The laws of the State of Delaware shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the law that might be applied under principles of conflicts of laws.

 

5.11 Conformity to Securities Laws.  The Optionee acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and all regulations and rules promulgated by the Securities and Exchange Commission thereunder, and state or foreign securities laws and regulations.  Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised,
only in such a manner as to conform to such laws, rules and regulations.  To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

5.12 Amendments, Suspension and Termination.  To the extent permitted by the Plan, this Agreement may be wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board, provided, that, except as may otherwise be provided by the Plan, no amendment, modification, suspension or termination of this Agreement shall adversely affect the Option in
any material way without the prior written consent of the Optionee.

 

5.13 Successors and Assigns.  The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the successors and assigns of the Company.  Subject to the restrictions on transfer herein set forth in Article 5, this Agreement shall be binding upon the Optionee and his or her heirs, executors, administrators, successors and assigns.

 

5.14 Limitations Applicable to Section 16 Persons.  Notwithstanding any other provision of the Plan or this Agreement, if the Optionee is subject to Section 16 of the Exchange Act, the Plan, the Option and this Agreement shall be subject to any additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the application of such exemptive rule.  To the extent
permitted by applicable law, this Agreement shall be deemed amended to the extent necessary to conform to such applicable exemptive rule

 

5.15 Not a Contract of Employment.  Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue to serve as an employee or other service provider of the Company or any of its Subsidiaries.  The Optionee is aware of and consents to the fact that this Agreement is not part of the Optionee’s employment contract with his or her employer. In particular, neither the grant of the Option nor any other financial benefits conferred upon the Optionee in connection
with this Agreement are part of the Optionee’s entitlement to remuneration or benefits in terms of his or her employment with his or her employer.  The Optionee’s terms and conditions of employment are not affected or changed in any way by the grant of the Option or the terms of the Plan or this Agreement.

 

  

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5.16 Entire Agreement.  The Plan, the Grant Notice and this Agreement (including all Exhibits thereto) constitute the entire agreement of the parties and supersede in their entirety all prior undertakings and agreements of the Company and the Optionee with respect to the subject matter hereof.

 

5.17 Section 409A.  Notwithstanding any other provision of the Plan, this Agreement or the Grant Notice, the Plan, this Agreement and the Grant Notice shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the U.S. Internal Revenue Code of 1986, as amended (together with any Department of Treasury regulations and other interpretive guidance issued thereunder, including without
limitation any such regulations or other guidance that may be issued after the date hereof, “Section 409A”).   The Administrator may, in its discretion, adopt such amendments to the Plan, this Agreement or the Grant Notice or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, as the Administrator determines are necessary or appropriate to comply with the requirements of Section 409A.

 

 

 

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