Document:

exv10w2

Exhibit 10.2

QUALITY SYSTEMS, INC.

OUTSIDE DIRECTOR’S

AMENDED AND RESTATED

RESTRICTED STOCK AGREEMENT

GRANTED UNDER THE QUALITY SYSTEMS, INC.

AMENDED AND RESTATED 2005 STOCK OPTION AND INCENTIVE PLAN

     THIS OUTSIDE DIRECTOR’S RESTRICTED STOCK AGREEMENT (this “Agreement”), dated and
effective as of August 13, 2009 (the “Grant Date”), by and between Quality Systems, Inc., a
California corporation (the “Company”), and Davis Family Capital Partners, LLC
(“Grantee”), is entered into as follows:

     WHEREAS, Grantee is an outside director of the Company; and

     WHEREAS, the Company has established the Quality Systems, Inc. Amended and Restated 2005 Stock
Option and Incentive Plan (the “Plan”), a copy of which has previously been provided to
Grantee; and

     WHEREAS, the Compensation Committee (the “Committee”) of the Board of Directors of the
Company has established a compensation program (the “Program”) for the outside directors of
the Company that includes the grant of restricted shares in the Company’s common stock (“Common
Stock”); and

     WHEREAS, under the terms of the Program, Grantee shall be granted shares of the Common Stock,
subject to the restrictions stated below.

	 	 	NOW, THEREFORE, the parties hereby agree as follows:

     1. Grant of Restricted Stock. Subject to the terms and conditions of this Agreement
and the Plan, the Company hereby grants to Grantee 1,000 shares of Common Stock (the
“Restricted Stock”). As soon as practicable, the Company shall cause a certificate
representing the Restricted Stock to be issued in Grantee’s name (the “Certificate”). The
Restricted Stock shall be subject to, and the Certificate shall bear appropriate legends with
respect to, the restrictions described herein.

     2. Vesting Schedule. The Restricted Stock shall vest in two equal annual
installments, each on the next two annual meetings of shareholders (and each referred to
herein as a “Vesting Date”) subject to earlier vesting as set forth in Section 3,
below.

     3. Restrictions. No portion of the Restricted Stock or rights granted hereunder may
be sold, transferred, assigned, pledged or otherwise encumbered or disposed of by Grantee during
the period beginning on the Vesting Date of that portion of Restricted Stock, and ending the day
prior to the one year anniversary of the Vesting Date of that portion of Restricted Stock. In the
event of a meeting of shareholders immediately following which a director that previously received
restricted shares under the Program is no longer a member of the Company’s Board, then any unvested
shares held by such director shall immediately vest and become transferrable.

     4. Shareholder Rights. Until the Vesting Date, Grantee shall not have the rights of a
shareholder with respect to the Restricted Stock.

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     5. Taxes.

     (a) Grantee hereby acknowledges that he or she has reviewed with his or her own tax
advisors the tax consequences of receiving the Restricted Stock. Grantee represents to the
Company that he or she is relying solely on such advisors and not on any statements or
representations of (i) the Company, (ii) its officers, directors or employees, or (iii) its
or their respective agents or representatives.

     (b) Grantee shall be liable for any and all taxes, including withholding taxes, arising
out of this grant of Restricted Stock. The Company shall not be required to deliver any
Restricted Stock or to recognize any purported transfer of shares of the Restricted Stock
until all applicable withholding obligations are satisfied. Grantee is ultimately liable
and responsible for all taxes owed by Grantee in connection with the Restricted Stock,
regardless of any action the Company takes with respect to any tax withholding obligations
that arise in connection with the Restricted Stock. The Company makes no representation or
undertaking regarding the treatment of any tax withholding in connection with the grant,
issuance or settlement of the Restricted Stock or the subsequent sale or transfer of any of
the shares of Restricted Stock. The Company does not commit and is under no obligation to
structure the Restricted Stock award or program to reduce or eliminate Grantee’s tax
liability.

     6. Securities Law Compliance. The Company will use its reasonable commercial efforts
to assure that the Restricted Stock is registered under federal securities laws. However, no
Restricted Stock will be issued pursuant to Grantee’s award if such issuance would otherwise
constitute a violation of any applicable federal or state securities laws or regulations or the
requirements of The NASDAQ Global Select Market or any stock exchange or other market on which the
Common Stock is then quoted or listed for trading. The inability of the Company to obtain approval
from any regulatory body deemed necessary by the Company for the lawful issuance of any Restricted
Stock hereunder shall defer the Company’s obligation with respect to the issuance of such
Restricted Stock until such approval has been obtained. Grantee understands Grantee’s
responsibilities to report the grant and future disposition of the Restricted Stock under the
applicable provisions of the Securities Exchange Act of 1934, as amended.

     7. Miscellaneous.

     (a) The grant of Restricted Stock or another award to Grantee under the Plan in any one
year, or at any time, does not obligate the Company to make a grant in any future year or in
any given amount and should not create an expectation that the Company might make a grant in
any future year or in any given amount.

     (b) The Company shall not be required (i) to transfer on its books any shares of
Restricted Stock that have been sold or transferred in violation of any of the provisions
set forth in this Agreement or in the Plan, or (ii) to treat as owner of such shares or to
accord the right to vote as such owner or to pay dividends to any transferee to whom such shares shall have been so transferred.

     (c) The parties agree to execute such further instruments and to take such action as
may reasonably be necessary to carry out the intent of this Agreement.

     (d) Any notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon delivery to Grantee at Grantee’s address then on file with the
Company.

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     (e) This Agreement shall not be construed so as to grant Grantee any right to remain as
a director of or consultant to the Company.

     (f) The parties agree that neither the Company nor any of its affiliates shall have any
further obligation to Grantee relating to the grant of stock or other equity-based incentive
compensation except as stated herein and under the terms of the Program.

     (g) This Agreement and the Plan constitute the entire agreement of the parties with
respect to the subject matter hereof. This Agreement may not be amended except (i) with the
consent of the Committee and the Board; and (ii) by a written instrument duly executed by
the Company and Grantee.

     (h) This Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their permitted heirs, personal representatives, successors and assigns. The
terms of this Agreement shall in all respects be subject to the terms of the Plan and the
Program. In the event of a conflict between the terms of this Agreement and the Plan and/or
Program, the terms of the Plan and/or Program (as the case may be) shall control. In the
event of a conflict between the terms of the Plan and the Program, the terms of the Plan
shall control. In accordance with the Plan, Grantee hereby agrees to accept as binding,
conclusive and final all decisions and interpretations of the Committee or the Board of
Directors upon any questions arising under the Plan or this Agreement.

     (i) The interpretation, performance and enforcement of this Agreement shall be governed
by the laws of the State of California without resort or reference to the conflicts-of-laws
rules of that or any other state.

     (j) This Agreement shall not in any way affect the right of the Company to adjust,
reclassify, reorganize or otherwise make changes in its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business
or assets.

     8. Remaining Terms. The remaining terms and conditions of Grantee’s award are
governed by the Plan, and Grantee’s award is also subject to all interpretations, amendments,
rules, regulations and decisions that may from time to time be adopted under the Plan.

[signature page follows]

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     IN WITNESS WHEREOF, the undersigned have executed this Outside Director’s Restricted Stock
Agreement effective as of the date first set above.

	 	 	 
	COMPANY:

	QUALITY SYSTEMS, INC.,
	 

	a California corporation

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Paul Holt, Chief Financial Officer/Secretary 	 

	 	 	 
	 

	 	Address:
	 

	 	18111 Von Karman Avenue, Suite 600
	 

	 	Irvine, CA 92612
	 

	 	Facsimile #: 949-255-2610
	 

	 	Email: pholt@qsii.com (Corporate Secretary)

     I, the undersigned Grantee, hereby acknowledge and accept the foregoing terms and conditions
of the Restricted Stock award evidenced hereby. I also acknowledge and agree that the foregoing
sets forth the entire understanding between the Company and me regarding my entitlement to receive
the shares of Restricted Stock subject to such award and supersedes all prior oral and written
agreements on that subject.

 

(signature of Grantee)

GRANTEE:

Address:

 

 

 

 

 

 

-4-exv10w3

	 	 	 	 	 

Exhibit 10.3

ADC TELECOMMUNICATIONS, INC.

INCENTIVE STOCK OPTION AGREEMENT

	 	 	 	 	 
	Optionee:

	 	Option Number:
	 	 
	Optionee ID:

	 	Plan: GSIP	 	 

This Incentive Stock Option Agreement (the “Agreement”) is entered into effective                                          by
and between ADC Telecommunications, Inc., a Minnesota corporation, (the “Company”), and the
above-identified Optionee pursuant to the Company’s 2008 Global Stock Incentive Plan (the “Plan”).

Effective the date written above, the Optionee has been granted an option (the “Option”) to
purchase all or any part of an aggregate of                                         shares of common stock, par value US$.20 per
share, of the Company (the “Common Stock”) at the price of US$                                         per share subject to the
terms and conditions set forth herein and in the Plan and Exhibit A to this Agreement. This Option
is intended to be an incentive stock option within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”).

The total aggregate purchase price for all of the shares purchasable under this Option is
US$                                        

Subject to the terms and conditions of this Agreement, Exhibit A to this Agreement and the Plan,
this Option shall in all events terminate seven (7) years after the date of grant (the “Expiration
Date”). The shares subject to this Option shall vest and may be exercised in whole or in part by
the Optionee according to the following vesting schedule:

	 	 	 	 	 
	Vesting Date
	 	Number of Option Shares
Vesting
	 	Expiration Date

Subject to the provisions of the Plan and Exhibit A, the Optionee must be actively employed by the
Company or any of its Affiliates on each Vesting Date for vesting to occur. Termination of
employment after a Vesting Date may accelerate the Expiration Date (see terms of the Plan and
Exhibit A).

Optionee and the Company agree that these Options are granted under and governed by the terms and
conditions of this Agreement, Exhibit A to this Agreement, and the Plan. Each of these documents
and a Prospectus related to shares covered by the Plan has been provided to Optionee. Optionee
specifically acknowledges that Exhibit A to this Agreement contains an agreement by Optionee not to
solicit employees of the Company or its Affiliates on behalf of any other employer, a data privacy
consent by Optionee and certain other acknowledgements by Optionee.

Optionee acknowledges that this Option is subject to the ongoing discretionary authority of the
Company to determine: (i) the permissible manner of exercise of the Option (including but not
limited to the authority of the Company to require a mandatory cashless exercise); (ii) the
permissible timing of exercise of the Option; and (iii) any other restrictions that the Company
deems necessary and advisable, including but not limited to restrictions pertaining to applicable
law. Optionee further acknowledges that in the event the Optionee chooses to effect a simultaneous
exercise and sale of all or a portion of the shares that are subject to this Option, neither the
Company nor its third party stock option administrator will guarantee any particular market price
for the sale of the shares, nor shall the Company or its third party administrator be responsible
for any failure to obtain any particular market price due to delays in the exercise of this Option
or any other reason.

 

 

ADC TELECOMMUNICATIONS, INC.

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Date
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	OPTIONEE
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Date
	Government/Taxpayer ID#	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Home Address
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

EXHIBIT A

TO THE

ADC TELECOMMUNICATIONS, INC.

INCENTIVE STOCK OPTION AGREEMENT

This Exhibit A is part of and incorporated by reference into the Incentive Stock Option Agreement
(the “Agreement”) issued by ADC Telecommunications, Inc. (the “Company”) pursuant to the Company’s
Global Stock Incentive Plan (the “Plan”).

Unless otherwise defined herein, capitalized terms shall have the meaning given such term in the
Agreement.

	1.	 	Grant of Option

Refer to the Agreement for a description of the Option grants, including the total number of shares
of Common Stock covered by this Option, the exercise price per share, and the schedule for vesting.
This Option is intended to be an incentive stock option within the meaning of Section 422 of the
U.S. Internal Revenue Code.

	2.	 	Duration and Exercisability

	 	(a)	 	Subject to early vesting as provided in Section 3 below, this
Option shall vest and become exercisable in accordance with the schedule set forth on
the Agreement. This Option shall in all events terminate seven (7) years after the date
of grant, if not earlier in the event of termination of employment.

	 	(b)	 	Notwithstanding the provisions contained in Section 2(a) above, but subject to
the other terms and conditions set forth herein, this Option shall become fully vested
and exercisable on the date of a “Change in Control” (as hereinafter defined). For
purposes of the Agreement and this Exhibit A to the Agreement, the following terms shall
have the definitions set forth below:

	 	(i)	 	“Change in Control” shall mean:

	 	(A)	 	a change in control of the Company of a nature that
would be required to be reported in response to Item 6(e) of Schedule 14A
of Regulation 14A promulgated under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), whether or not the Company is then
subject to such reporting requirement;
	 
	 	(B)	 	the public announcement (which, for purposes of this
definition, shall include, without limitation, a report filed pursuant to
Section 13(d) of the Exchange Act) by the Company or any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) that such
person has become the “beneficial owner” (as defined in Rule 13d-3
promulgated under the Exchange Act), directly or indirectly, of securities
of the Company representing twenty percent (20%) or more of the combined
voting power of the Company’s then outstanding securities, determined in
accordance with Rule 13d-3,

 

 

	 	 	 	excluding, however, any securities acquired
directly from the Company (other than an acquisition by virtue of the
exercise of a conversion privilege unless the
security being so converted was itself acquired directly from the
Company); however, that for purposes of this clause the term “person”
shall not include the Company, any subsidiary of the Company or any
employee benefit plan of the Company or of any subsidiary of the Company
or any entity holding shares of Common Stock organized, appointed or
established for, or pursuant to the terms of, any such plan;

	 	(C)	 	the Continuing Directors cease to constitute a
majority of the Company’s Board of Directors;

	 	(D)	 	consummation of a reorganization, merger or
consolidation of, or a sale or other disposition of all or substantially
all of the assets of, the Company (a “Business Combination”), in each
case, unless, following such Business Combination, (A) all or
substantially all of the persons who were the beneficial owners of the
Company’s outstanding voting securities immediately prior to such Business
Combination beneficially own voting securities of the corporation
resulting from such Business Combination having more than fifty percent
(50%) of the combined voting power of the outstanding voting securities of
such resulting Corporation and (B) at least a majority of the members of
the Board of Directors of the corporation resulting from such Business
Combination were Continuing Directors at the time of the action of the
Board of Directors of the Company approving such Business Combination;

	 	(E)	 	approval by the shareholders of the Company of a
complete liquidation or dissolution of the Company; or

	 	(F)	 	the majority of the Continuing Directors determine in
their sole and absolute discretion that there has been a change in control
of the Company.

	 	(G)	 	The definition of “Change in Control” is subject to
changes as may be determined by the Compensation Committee of the
Company’s Board of Directors as necessary to comply with the requirements
of Section 409A of the Internal Revenue Code, as added by the American
Jobs Creation Act.

	 	(ii)	 	“Continuing Director” shall mean any person who is a member of the
Board of Directors of the Company, while such person is a member of the Board of
Directors, who is not an Acquiring Person (as defined below) or an Affiliate or
Associate (as defined below) of an Acquiring Person, or a representative of an
Acquiring Person or of any such Affiliate or Associate, and who (x) was a member
of the Board of Directors on the date of this Agreement as first written above or
(y) subsequently becomes a member of the Board of Directors, if such person’s
initial nomination for election or initial election to the Board of Directors is
recommended or approved by a majority of the Continuing

 

 

	 	 	 	Directors. For purposes
of this subparagraph (ii), “Acquiring Person” shall mean any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) who or which,
together with all Affiliates and Associates of such person, is the “beneficial
owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company representing twenty percent (20%) or
more of the combined voting power of the Company’s then outstanding securities,
but shall not include the Company, any subsidiary of the Company or any employee
benefit plan of the Company or of any subsidiary of the Company or any entity
holding shares of Common Stock organized, appointed or established for, or
pursuant to the terms of, any such plan;
and “Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 promulgated under the Exchange Act.

	 	(c)	 	This Option shall not be assignable or transferable except to a designated
beneficiary (under procedures established by the Company) or by the laws of descent and
distribution in the case of the death of Optionee, and except that for U.S. resident
employees, upon written notice to the Company, U.S. resident employees may transfer this
Option during his or her lifetime to any “family member” (as such term is used on Form
S-8 under the Securities Act of 1933) of Optionee provided that (i) there is no
consideration for such transfer or such transfer is effected pursuant to a domestic
relations order in settlement of marital property rights, and (ii) this Option held by
such transferees shall continue to be subject to the same terms and conditions
(including restrictions on subsequent transfers) as were applicable to this Option
immediately prior to such transfer. This Option may not be pledged, alienated, attached
or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance
thereof shall be void and unenforceable against the Company or any Affiliate of the
Company.
	 
	 	(d)	 	This Option may be exercised, during the lifetime of Optionee, only by Optionee,
a permitted transferee pursuant to a transfer permitted by Section 2(c) above, or, if
permissible under applicable law, by Optionee’s or such transferee’s guardian or legal
representative.

	3.	 	Effect of Termination of Employment

	 	(a)	 	For all purposes of the Agreement and this Exhibit A, the following terms shall
have the following meanings:

	 	(i)	 	“Employment Termination Date” shall mean the earlier of:

	 	•	 	the date, as determined by the Company, that Optionee is no longer
actively employed by the Company or an Affiliate of the Company, and in
the case of an involuntarily termination, such date shall not be extended
by any notice period mandated under local law (e.g., active employment
would not include a period of “garden leave” or similar period pursuant
to local law); or

	 	•	 	the date, as determined by the Company, that Optionee’s employer is no
longer an Affiliate of the Company.

 

 

	 	 	 	(ii) “Retirement” shall mean the voluntary termination of Optionee’s employment
with his or her Employer if (a) Optionee is employed in a country on his or her
Employment Termination Date that on the Grant Date was not a member of the European
Union and (i) Optionee is at least 55 years old, and (ii) Optionee’s age in years
plus years of service (as defined by the Company in its sole discretion for the
purposes of this Option) equals at least 65; or (b) Optionee is employed in a
country on his or her Employment Termination Date that on the Grant Date was a
member of the European Union and Optionee has at least 30 years of service (as
defined by the Company in its sole discretion for the purposes of this Option).
	 
	 	(b)	 	In the event the Optionee ceases to be an employee of the Company or any of its
Affiliates for any reason other than death, long-term disability, or Retirement, then
Optionee shall have the right to exercise the Option at any time within one year after
the Employment Termination Date to the extent of the number of vested shares Optionee
was entitled to purchase under the Option on the Employment Termination Date, subject
to the condition that no Option shall be exercisable after the Expiration Date.
	 
	 	(c)	 	In the event the Optionee dies while an employee of the Company or any of its
Affiliates or within three months after the Employment Termination Date or suffers a
long-term disability, this Option shall become fully vested and exercisable. The
Option may then be exercised at any time within one year after Optionee’s death or
long-term disability by the executors or administrators of Optionee, by any person or
persons to whom the Option is transferred by the prior designation of a beneficiary or
the applicable laws of descent and distribution, or by the Optionee, as the case may
be. Any determination that Optionee’s employment has been terminated because of a
long-term disability shall be subject to the written acknowledgment and agreement of
the Company’s legal department made in its sole discretion.
	 
	 	(d)	 	In the event of the Retirement of the Optionee, then this Option shall continue
to vest according to the schedule set forth on the Agreement. Optionee shall then
have the right to exercise this Option for a period of time following the Employment
Termination Date until the earlier to occur of (1) the Expiration Date and (2) the five
year anniversary of the Employment Termination Date. In the event of
Optionee’s Retirement, the vesting of this Option is conditioned upon Optionee
complying with the following non-competition restrictions: For one year following the
effective date of Optionee’s Retirement from the Company, Optionee may not, without the
Company’s prior written consent, directly or indirectly, for himself or herself or any
other person or entity, as agent, employee, officer, director, consultant, owner,
principal, partner or material shareholder, or in any other individual or
representative capacity: (i) engage in or participate in any activity that competes,
directly or indirectly, with any Company business, product or service that Optionee
engaged in, participated in, or had confidential information (as described below) about
during Optionee’s employment or (ii) assist anyone in engaging in any of the activities
which Optionee is prohibited from engaging in directly in his or her own capacity.
Optionee specifically agrees and acknowledges that the Company’s business competes on a
global basis and that this restriction is reasonable and will
apply throughout the global locations where the Company conducts business. To the
extent Optionee and the Company at any time agree to enter into

 

 

	 	 	 	separate agreements
containing restrictions with different or inconsistent terms than those herein,
Optionee and the Company acknowledge and agree that such different or inconsistent
terms shall not in any way affect or have relevance to the restrictions contained
herein. By accepting this Option, Optionee agrees that the provisions of this
non-competition restriction are reasonable and necessary to protect the legitimate
interests of the Company.
	 
	 	(e)	 	No further vesting of this Option shall occur after the Employment Termination
Date, and this Option shall be exercisable in accordance with this Section 3 following
the Employment Termination Date only to the extent that it is exercisable on the
Employment Termination Date, pursuant to the vesting schedule set forth in the
Agreement and Section 2 hereof.

4. Manner of Exercise

The Option can be exercised only by Optionee or other proper party within the option period by
notice to the Company or the Company’s third-party stock option administrator in a form specified
by the Company or such third-party stock option administrator, or in such other manner as the
Company may specify from time-to-time. The Company shall have the right to specify all conditions
of the manner of exercise, and such conditions may vary by country and may be subject to change
from time to time.

5. Adjustments

If Optionee exercises all or any portion of the Option subsequent to any change in the number or
character of the Common Stock (through stock dividend, recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or
exchange of shares of Common Stock or other securities of the Company, issuance of warrants or
other rights to purchase shares of Common Stock or other securities of the Company or other similar
corporate transaction or event affecting the Common Stock such that an adjustment is determined by
the Committee to be appropriate in order to prevent dilution or enlargement of the Option),
Optionee shall then receive for the aggregate price paid by him or her on such exercise of the
Option, the number and type of securities or other consideration which he would have received if
such Option had been exercised prior to the event changing the number or character of outstanding
shares.

6. Responsibility for Taxes

Regardless of any action taken by the Company or Optionee’s employer (the “Employer”) with respect
to any or all income tax, social insurance, payroll tax, payment on account or other tax-related
withholding (“Tax-Related Items”), Optionee acknowledges that the ultimate liability for all
Tax-Related Items is and remains Optionee’s responsibility and that the Company and/or the Employer
(i) make no representations or undertakings regarding the treatment of any Tax-Related Items in
connection with any aspect of the Option grant, including the grant, vesting or exercise of the
Option, the subsequent sale of shares acquired pursuant to such exercise and the receipt of any
dividends; and (ii) do not commit to structure the terms of the grant or any aspect of the Option
to reduce or eliminate Optionee’s liability for Tax-Related Items. Without limiting the foregoing,
the Company specifically disclaims any representation or guarantee that this Option will qualify as
an Incentive Stock Option under Section 422 of the Internal Revenue Code, or if the Option
initially so qualifies, that it will continue to qualify. Optionee should consult his or her own
tax advisor regarding the status of and tax treatment for this Option.

 

 

Prior to exercise of the Option, Optionee shall pay or make adequate arrangements satisfactory to
the Company and/or the Employer to satisfy all withholding and payment on account obligations of
the Company and/or the Employer. In this regard, Optionee authorizes the Company and/or the
Employer to withhold all applicable Tax-Related Items legally payable by Optionee from Optionee’s
wages or other cash compensation paid to Optionee by the Company and/or the Employer or from
proceeds of the sale of the shares. Alternatively, or in addition, if permissible under local law,
the Company may (i) sell or arrange for the sale of shares that Optionee acquires to meet the
withholding obligation for Tax-Related Items, and/or (ii) withhold in shares, provided that the
Company only withholds the amount of shares necessary to satisfy the minimum withholding amount.
Finally, Optionee shall pay to the Company or the Employer any amount of Tax-Related Items that the
Company or the Employer may be required to withhold as a result of Optionee’s participation in the
Plan or Optionee’s purchase of shares that cannot be satisfied by the means previously described.
The Company may refuse to honor the exercise and refuse to deliver the shares if Optionee fails to
comply with his or her obligations in connection with the Tax-Related Items as described in this
section.

	7.	 	Workforce Protection The Optionee understands that the Company has an important business
interest in preserving and retaining its relationships with its employees and its
Affiliates’ employees (collectively, the “Covered Employees”). In consideration of
Optionee’s employment with the Company and/or this agreement, during the term of Optionee’s
employment and for one year thereafter, the Optionee promises that Optionee will not directly
or indirectly or in cooperation with others:

(i) Seek, encourage, solicit, or attempt to solicit any Covered Employee to leave
his or her employment for any reason or in any way interfere with his or her
employment relationship;

(ii) Induce or attempt to induce any Covered Employee to accept employment with,
work for, render services or provide advice to or supply confidential business
information or trade secrets of the Company or its Affiliates to any other person;
or

(iii) Employ, or otherwise pay for services rendered by, any Covered Employee in any
other business enterprise.

As part of the Optionee’s obligations to the Company and without limiting the
foregoing, Optionee specifically agrees that for the one year period after
Optionee’s employment with the Company terminates, Optionee will not interview,
recommend for hire, identify or provide any input to any third party in which
Optionee has an interest as an employee, officer, consultant, director or owner
about any Covered Employee where the purpose or outcome of such action by Optionee
is to recruit, provide a reference or otherwise assist a Covered Employee to leave
his or her employment and join the third party in which the Optionee has an interest
as described herein. The Optionee also acknowledges that Optionee’s promises as
contained herein are not excused in circumstances where the Covered Employee
initiates a discussion of this nature with Optionee. In that event, Optionee agrees
to advise the Covered Employee of Optionee’s obligations hereunder. The Optionee
further agrees that during the one year period after the Optionee leaves the
Company,
Optionee will inform any new employer Optionee may have of Optionee’s obligations
under this Agreement.

 

 

8. Confidential Information

	 	(a)	 	In further consideration of the grant of the Option, the Optionee specifically
acknowledges and agrees that Optionee is bound to protect the Company’s confidential
information which includes but is not limited to proprietary information, confidential
data and any other representation of Company knowledge, whether verbal, printed,
written or electronically recorded or transmitted. This includes confidential
information concerning any technologies, concepts, engineering, sales and financial
details, customer names and information, pricing, business strategies and other related
or similar confidential data. Optionee acknowledges that the obligation to protect the
Company’s confidential information continues after Optionee leaves the Company,
regardless of the reason. Optionee agrees to refrain from giving future employers any
confidential information belonging to the Company. This obligation to preserve
confidential information exists independently of and in addition to any obligation to
which the Optionee is subject under the terms of the Company’s Invention, Copyright and
Trade Secret Agreement, or other similar document.
	 
	 	(b)	 	The Optionee acknowledges that breach of this Section 8 would be highly
injurious to the Company, and the Company reserves its rights to pursue all available
remedies, including but not limited to equitable and injunctive relief and damages.
The Optionee specifically agrees that the Company shall be entitled to obtain temporary
and permanent injunctive relief from a court of law to enforce the provisions of this
Section 8, and that such relief may be granted without the necessity of proving actual
damages and without necessity of posting any bond. This provision with respect to
injunctive relief shall not, however, diminish the right of the Company to claim and
recover damages or to seek and obtain any other relief available to it. The Optionee
further acknowledges that this Section 8 shall be enforceable by the Company even if no
portion of the Option becomes vested and exercisable.

9. Data Privacy Consent

Optionee hereby explicitly consents to the collection, use and transfer, in electronic or other
form, of his or her personal data as described in this document by and among, as applicable, the
Company and its Affiliates for the exclusive purpose of implementing, administering and managing
Optionee’s participation in the Plan.

Optionee understands that the Company and its Affiliates hold certain personal information about
Optionee, including, but not limited to, Optionee’s name, home address and telephone number, date
of birth, social insurance number or other identification number, salary, nationality, job title,
any shares of stock or directorships held in the Company or its Affiliates, details of all options
or any other entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or
outstanding in Optionee’s favor, for the purpose of implementing, administering and managing the
Plan (“Data”). Optionee understands that Data may be transferred to any third parties assisting in
the implementation, administration and management of the Plan, that these recipients may be located
in Optionee’s country or elsewhere, and that the recipient’s country may have different data
privacy laws and protections than Optionee’s country. Optionee understands that Optionee may
request a
list with the names and addresses of any potential recipients of the Data by contacting ADC’s
Global Rewards — Stock Compensation Group. Optionee authorizes the recipients to

 

 

receive, possess,
use, retain and transfer the Data, in electronic or other form, for the purposes of implementing,
administering and managing Optionee’s participation in the Plan, including any requisite transfer
of such Data as may be required to a broker or other third party with whom Optionee may elect to
deposit any shares of stock acquired upon exercise of the Option. Optionee understands that Data
will be held only as long as is necessary to implement, administer and manage Optionee’s
participation in the Plan and that Optionee may, at any time, view Data, request additional
information about the storage and processing of Data, require any necessary amendments to Data or
refuse or withdraw the consents herein, in any case without cost, by contacting in writing ADC’s
Global Rewards — Stock Compensation Group. Optionee understands, however, that refusing or
withdrawing his or her consent may affect Optionee’s ability to participate in the Plan. For more
information on the consequences of Optionee’s refusal to consent or withdrawal of consent, Optionee
may contact ADC’s Global Rewards — Stock Compensation Group.

10. Nature of Grant

In accepting the grant, Optionee acknowledges that:

	 	(a)	 	The Plan is established voluntarily by the Company, it is discretionary in
nature and it may be modified, suspended or terminated by the Company at any time, as
provided in the Plan and this Agreement. The Option is subject in all respects to the
terms and conditions of the Plan and this Agreement.
	 
	 	(b)	 	The grant of the Option is voluntary and occasional and does not create any
contractual or other right to receive future grants of options, or benefits in lieu of
options, even if options have been granted repeatedly in the past.
	 
	 	(c)	 	All decisions with respect to future option grants, if any, will be at the sole
discretion of the Company.
	 
	 	(d)	 	Optionee’s participation in the Plan shall not create a right to further
employment with the Company or any of its Affiliates and shall not interfere with the
ability of the Company or its Affiliates to terminate Optionee’s employment
relationship at any time with or without cause.
	 
	 	(e)	 	Optionee is voluntarily participating in the Plan.
	 
	 	(f)	 	The Option is an extraordinary item that does not constitute compensation of
any kind for services of any kind rendered to the Company or the Employer, and is
outside the scope of Optionee’s employment contract, if any.
	 
	 	(g)	 	The Option is not part of normal or expected compensation or salary for any
purposes, including, but not limited to, calculating any severance, resignation,
termination, redundancy, end of service payments, bonuses, long-service awards, pension
or retirement benefits or similar payments.
	 
	 	(h)	 	In the event that Optionee is not an employee of the Company, the Option grant
will not be interpreted to form an employment contract or relationship with the
Company; and furthermore, the Option grant will not be interpreted to form an
employment contract with any Affiliate of the Company.
	 
	 	(i)	 	The future value of the underlying shares is unknown and cannot be predicted
with certainty.

 

 

	 	(j)	 	If the underlying shares do not increase in value, the Option will have no
value.
	 
	 	(k)	 	If Optionee exercises the Option and obtains shares, the value of those shares
acquired upon exercise may increase or decrease in value, even below the exercise
price.
	 
	 	(l)	 	No claim or entitlement to compensation or damages arises from termination of
the Option or diminution in value of the Option or shares purchased through exercise of
the Option which results from the termination of Optionee’s employment by the Company
or the Employer (for any reason and regardless of whether in breach of contract), and
Optionee irrevocably releases the Company and its Affiliates from any such claim that
may arise; if, notwithstanding the foregoing, any such claim is found by a court of
competent jurisdiction to have arisen, Optionee shall be deemed irrevocably to have
waived his/her entitlement to pursue such claim.
	 
	 	(m)	 	Optionee consents to the delivery by electronic means of any documents related
to the Option, the Plan or future options that may be granted under the Plan.

11. Miscellaneous

	 	(a)	 	Optionee shall have none of the rights of a shareholder with respect to shares
subject to this Option until such shares shall have been issued upon exercise of this
Option.
	 
	 	(b)	 	This Agreement shall be governed by and construed in accordance with the
domestic laws of the State of Minnesota without giving effect to any choice or
conflict of law provision or rule (whether of the State of Minnesota or any other
jurisdiction) that would cause the application of the laws of any jurisdiction other
than the State of Minnesota. The Company and the Optionee submit to the jurisdiction
of any state or federal court sitting in Minneapolis, Minnesota, in any action or
proceeding arising out of or relating to this Agreement, and agree that all claims in
respect of the action or proceeding may be heard and determined in any such court.
Each of the Company and the Optionee also agrees not to bring any action or proceeding
arising out of or relating to this Agreement in any other court. Each of the Company
and the Optionee waives any defense of inconvenient forum to the maintenance of any
action or proceeding so brought and waives any bond, surety, or other security that
might be required of the other party with respect thereto. The Company and the
Optionee agree that a final judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment or in any other manner provided
by law or in equity.
	 
	 	(c)	 	To the extent any provision of this Agreement shall be determined by any court
to be invalid or unenforceable in any jurisdiction, such provision shall be deemed to
be deleted from this Agreement, and the validity and enforceability of the remainder of
such provision and of this Agreement shall be unaffected.
In furtherance of and not in limitation of the foregoing, the Optionee expressly
agrees that should the duration of, geographical extent of, or

 

 

	 	 	 	business activities
covered by Section 7 of this Agreement be in excess of that which is valid or
enforceable under applicable law, then such provision shall be construed to cover
only that duration, extent or activities that may validly or enforceably be covered.
The Optionee expressly stipulates that this Agreement shall be construed in a
manner that renders its provisions valid and enforceable to the maximum extent (not
exceeding its express terms) possible under applicable law.
	 
	 	(d)	 	If Optionee has received this Agreement or any other document related to the
Plan translated into a language other than English and if the translated version is
different than the English version, the English version will control.

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