Document:

Exhibit 10.3

 

CONFIDENTIAL TREATMENT

 

AMENDMENT TO LICENSE AGREEMENT

 

This Amendment is hereby made and effective as of March 1, 2013 (the “Amendment Effective Date”) by and between:

 

Astellas Pharma Inc., a company organized and existing under the laws of Japan, having its registered office at 3-11, Nihonbashi-Honcho 2-chome, Chuo-ku, Tokyo 103-8411, Japan (“Astellas”); and

 

Calixa Therapeutics, Inc., a company organized and existing under the laws of the State of Delaware, having its principal place of business at 65 Hayden Avenue, Lexington, MA 02421, USA (“Calixa”).

 

RECITALS

 

A.                                    Astellas and Calixa entered into a certain License Agreement as of November 1, 2007, as amended (the “Agreement”) relating to the pharmaceutical compound known as ceftolozane (formerly CXA-101; FR264205); and

 

B.                                    Cubist Pharmaceuticals, Inc. (“Cubist”) acquired Calixa in 2010, and Calixa is now a wholly-owned subsidiary of Cubist; and

 

C.                                    As a result of recent discussion, Astellas and Calixa desire to amend the Agreement in accordance with the terms and conditions provided herein.

 

NOW, THEREFORE, Astellas and Calixa hereby agree to amend the Agreement as follows:

 

1.                          Unless otherwise expressly provided in this Amendment, all definitions in the Agreement shall be also applicable to this Amendment.

 

2.                          In consideration of the amendments contained herein, Calixa shall make to Astellas within thirty (30) days after the Amendment Effective Date a one-time payment of twenty-five million US dollars (US$25,000,000).

 

3.                          A new Section 1.9A shall be added to the Agreement, as follows:

 

“1.9A “New Territory” shall mean Japan, Taiwan, South Korea, China (mainland), Hong Kong, Macau, Thailand, Indonesia, the Philippines, Australia, New Zealand, India, Saudi Arabia, Kuwait, Oman, Qatar, United Arab Emirates, Bahrain and Yemen.”

 

In each place in the Agreement that the word “Territory” appears, the words “and the New Territory” shall be added immediately thereafter.

 

*Confidential Treatment Requested.  Omitted portions filed with the Securities and Exchange Commission (the “Commission”).

 

 

4.                          Sections 2.1 and 2.2 of the Agreement shall be deleted in its entirety and replaced by the following, and the following new Sections 2.3, 2.4, 2.5 and 2.6 shall be inserted thereafter:

 

“2.1 Astellas hereby grants to Calixa the exclusive license, with the full rights to grant sublicenses to its Affiliates and to Third Parties through multiple tiers (subject to Sections 2.2, 2.3, 2.4, 2.5 and 2.6), under the Product Patents and all the Know-How of Astellas and its Affiliates to develop, manufacture, have manufactured, use, import, market, promote, sell, offer to sell and distribute the Products in the Territory and the New Territory.  Astellas hereby grants to Calixa the non-exclusive license, with the full rights to grant sublicenses to its Affiliates and to Third Parties through multiple tiers (subject to Sections 2.2, 2.3, 2.4, 2.5 and 2.6), under the Related Patents to develop, manufacture, have manufactured, use, import, market, promote, sell, offer to sell and distribute the Products in the Territory and the New Territory, provided that such non-exclusive license shall be effective as far as Astellas has the ability to grant such license.

 

2.2 If Calixa intends to grant a sublicense to its Affiliate or any Third Party, it shall use reasonable efforts to assure itself that the prospective sublicensee has the ability to perform the obligations of Calixa under this Agreement that would be sublicensed to such sublicensee.  If Calixa grants a sublicense to such Affiliate or Third Party, it shall identify in writing to Astellas the Affiliate or the Third Party and the extent of the rights that Calixa has granted a sublicense under the license rights granted in Section 2.1 above.  Calixa shall ensure that: (i) any sublicense granted by Calixa hereunder shall be fully consistent with and subject to the terms and conditions of this Agreement; and (ii) Calixa shall remain responsible to Astellas for performance of all obligations of Calixa under this Agreement, even if Calixa has sublicensed some rights to sublicensees, provided, however, that notwithstanding the foregoing, if Calixa []* which has been []* intends to []*, Calixa or such []* shall []*.  Nothing contained herein shall prevent Calixa or such []* from engaging in discussions []* in accordance with this Agreement.

 

2.3 If Astellas is interested in []*, it shall so notify Calixa within sixty (60) days of receiving such offer together with the []* and the necessary []* from Calixa pursuant to Section 2.2 above.  Upon such notice provided by Astellas and through the expiration of ninety (90) day period from Calixa’s receipt of such notice provided by Astellas (or such longer period of time as may be mutually agreed by the Parties) (such period, the “[]* Negotiation Period”), the Parties shall negotiate in good faith the terms with regard to such []*.  During such []* Negotiation Period, Astellas shall have the []* right to negotiate with Calixa with regard to such []* and Calixa and its []* which has been []* shall not []* on such []*.

 

2.4 If (i) Astellas notifies Calixa within the sixty (60) day period that it is not interested in such []*, (ii) Astellas fails to notify Calixa that Astellas is

 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

 

interested in such []* within such sixty (60) day period, or (iii) the Parties fail to enter into an agreement within the applicable []* Negotiation Period despite the good faith negotiations between the Parties, then Calixa and its []* which has been []* shall have the right to []*, provided however, in the case of (iii) above, Calixa and such []* shall not []*.

 

2.5 If the circumstance described in Section 2.4 (iii) above exists, and in such circumstance the []*, and Astellas shall have a period of forty (40) days from the receipt of such notification to []*.  If Astellas informs Calixa of such []* within such forty (40) day period, Calixa and Astellas shall be obligated to []*.  If Astellas []* such terms or fails to inform Calixa of such []* within such forty (40) day period, then Calixa or such []* will be []*.  However, if the []* between Calixa or such []* and []* (after the above procedure), and such terms []* in the above procedure, then the above procedure regarding []* shall be followed, before Calixa or such []*.”

 

2.6 Upon termination of this Agreement for any reason, each sublicense granted by Calixa in accordance with this Article 2 shall survive with respect to the rights granted by Astellas to Calixa hereunder and shall be automatically assigned from Calixa to Astellas, so long as the sublicensee is then in compliance with its sublicense agreement; provided, however, that Astellas’ obligations to any such sublicensee shall be no greater than Astellas’ obligations to Calixa hereunder.

 

5.                          Section 3.2 of the Agreement shall be deleted in its entirety.

 

6.                          Section 4.5 of the Agreement shall be deleted in its entirety and replaced by the following:

 

4.5 Immediately after (i) filing an NDA or (ii) obtaining a Regulatory Approval in any country in the Territory and the New Territory, Calixa shall notify Astellas of such event in writing.

 

7.                          Section 5.2 of the Agreement shall be deleted in its entirety.

 

8.                          Sections 12.1 and 12.2 of the Agreement shall be deleted in its entirety and replaced by the following:

 

12.1Calixa shall indemnify, defend and hold Astellas and its Affiliates, and their respective directors, officers and employees, and the successors and assigns of any of the foregoing, harmless from and against any and all liabilities, damages, losses, costs and expenses, including without limitation reasonable attorneys’ fees and other expenses of litigation resulting from any Third Party claim, action, suit or proceeding (any of the foregoing, a “Claim”) against any such indemnified party to the extent such Claim is based on or results from:  (a) the exercise or practice by Calixa of the rights and licenses granted to Calixa under this Agreement, (b) the manufacture, use or sale of any Product or Compound used for development activities and/or distributed by or on

 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

 

behalf of Calixa and/or its sublicensees, (c) Calixa’s breach of any warranties, representations, or other obligations under this Agreement, or (d) any negligence or willful misconduct of Calixa and/or its sublicensees, but excluding from the foregoing obligations any Claims to the extent such Claims are based on or result from:  (i) Astellas’s breach of any warranties, representations, or other obligations under this Agreement or (ii) any negligence or willful misconduct of Astellas or its Affiliate or Third Party business partner.

 

12.2 Astellas shall indemnify, defend and hold Calixa and its Affiliates, and their respective directors, officers and employees, and the successor and assigns of any of the foregoing harmless from and against any and all Claims against any such indemnified party to the extent such Claim is based on or results from: (a) Astellas’s breach of any warranties, representations, or other obligations under this Agreement, or (b) any negligence or willful misconduct of Astellas or its Affiliate, or (c) the manufacture by or on behalf of Astellas and/or its Affiliate or Third Party business partners, except to the extent that such Claim is caused by (i) Calixa’s breach of any warranties, representations, or other obligations under this Agreement, or (ii) any negligence or willful misconduct of Calixa or its sublicensees.”

 

9.                          Exhibit A of the Agreement shall be deleted in its entirety and replaced by Exhibit A attached to this Amendment.

 

10.                   Except as amended herein, all other terms and conditions of the Agreement shall remain in full force and effect.

 

11.                   This Amendment shall be governed by and construed in accordance with the laws of the State of New York, with the exception of its conflict of laws rules.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

 

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their respective authorized representatives.

 

Astellas Pharma Inc.

 

 

	
/s/ Kenji Yasukawa
    	
 
    
	
Name: Kenji Yasukawa
    	
 
    
	
Title: Senior Vice President & Chief   Strategy Officer
    	
 
    

 

 

Calixa Therapeutics, Inc.

 

 

	
/s/ Michael W. Bonney
    	
 
    
	
Name: Michael W. Bonney
    	
 
    
	
Title: President
    	
 
    

 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.

 

 

Exhibit A

 

	
Country
    	
 
    	
Appln.No.
    	
 
    	
Appln.Date
    	
 
    	
Pat.No.
    	
 
    	
Expiry Date
    
	
Argentina
    	
 
    	
P030103985
    	
 
    	
2003-10-30
    	
 
    	
has not been issued
    	
 
    	
2023-10-30
    
	
Brazil
    	
 
    	
PI0315188-3
    	
 
    	
2003-10-27
    	
 
    	
has not been issued
    	
 
    	
2023-10-27
    
	
Canada
    	
 
    	
2504730
    	
 
    	
2003-10-27
    	
 
    	
2504730
    	
 
    	
2023-10-27
    
	
China
    	
 
    	
200380102642.2
    	
 
    	
2003-10-27
    	
 
    	
ZL200380102642.2
    	
 
    	
2023-10-27
    
	
EPO
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
EP 1 556 389 B1
    	
 
    	
2023-10-27
    
	
Austria
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
ATE368042
    	
 
    	
2023-10-27
    
	
Belgium
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Switzerland
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Germany
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
DE60315178.7
    	
 
    	
2023-10-27
    
	
Denmark
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Spain
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
ES2290498
    	
 
    	
2023-10-27
    
	
Finland
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
France
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
UK
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Greece
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
3063495
    	
 
    	
2023-10-28
    
	
Hungary
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
E002339
    	
 
    	
2023-10-27
    
	
Ireland
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Italy
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
IT32358 BE/2007
    	
 
    	
2023-10-27
    
	
Luxembourg
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Netherland
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Portuguese
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Sweden
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
1556389
    	
 
    	
2023-10-27
    
	
Turkey
    	
 
    	
03758919.9
    	
 
    	
2003-10-27
    	
 
    	
TR200707206T4
    	
 
    	
2023-10-27
    
	
Hong Kong
    	
 
    	
06106532.6
    	
 
    	
2006-06-07
    	
 
    	
1086566
    	
 
    	
2023-10-27
    
	
India
    	
 
    	
936/KOLNP/2005
    	
 
    	
2003-10-27
    	
 
    	
212088
    	
 
    	
2023-10-27
    
	
S.Korea
    	
 
    	
10-2005-7007538
    	
 
    	
2003-10-27
    	
 
    	
10-1023035
    	
 
    	
2023-10-27
    
	
Japan
    	
 
    	
2005-501847
    	
 
    	
2003-10-27
    	
 
    	
4448821
    	
 
    	
2023-10-27
    
	
Philippines
    	
 
    	
1-2005-500802
    	
 
    	
2003-10-27
    	
 
    	
1-2005-500802
    	
 
    	
2023-10-27
    
	
Singapore
    	
 
    	
200502578-8
    	
 
    	
2003-10-27
    	
 
    	
112228
    	
 
    	
2023-10-27
    
	
Taiwan
    	
 
    	
092129984
    	
 
    	
2003-10-29
    	
 
    	
I319403
    	
 
    	
2023-10-28
    
	
USA
    	
 
    	
10/695895
    	
 
    	
2003-10-30
    	
 
    	
7129232
    	
 
    	
2024-10-20
    
	
S.Africa
    	
 
    	
2005/04181
    	
 
    	
2003-10-27
    	
 
    	
2005/04181
    	
 
    	
2023-10-27
    

 

Note : Expiry Date may be extended in some countries.

 

*Confidential Treatment Requested.  Omitted portions filed with the Commission.Exhibit 10.1

 

ALMOST FAMILY, INC.

2013 STOCK AND INCENTIVE COMPENSATION PLAN

 

FORM OF EMPLOYEE STOCK OPTION AGREEMENT

 

This is a STOCK OPTION AGREEMENT (the “Agreement”) dated as of                                         , (the “Grant Date”) by and between Almost Family, Inc. (the “Company”), and                                                  (the “Optionee”).

 

Recitals

 

A.            The Board of Directors of the Company (the “Board”) adopted the Almost Family, Inc. 2013 Stock and Incentive Compensation Plan (the “Plan”) on March 25, 2013, and the Plan was approved by the Company’s shareholders on May 6, 2013.

 

B.            The Compensation Committee of the Board (the “Committee”) has determined that it is in the best interests of the Company and appropriate to the stated purposes of the Plan that the Company grant to the Optionee an option to purchase shares of the Company’s common stock (“Shares”) pursuant and subject to the terms, definitions, and conditions of the Plan, in the form of a stock option that is exempt from Code Section 409A.

 

C.            Any capitalized terms used but not defined herein shall have the respective meanings given them in the Plan, a copy of which is attached hereto and incorporated by reference herein in its entirety.

 

NOW, THEREFORE, the Company and the Optionee do hereby agree as follows:

 

SECTION 1 — GRANT OF OPTION

 

Subject to the terms and conditions of this Agreement, the Company hereby grants to the Optionee an option (the “Option”) to purchase all or any part from time to time of Shares as set forth below:

 

	
TYPE OF OPTION
    	
 
    	
NUMBER OF SHARES
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Nonqualified Stock Options
    	
 
    	
—
    	
 
    

 

SECTION 2 — OPTION PRICE

 

The Option Price hereunder is $                        per Share, which is not less than 100% of the Fair Market Value of a Share on the Grant Date.

 

 

SECTION 3 — DURATION OF OPTION

 

The Option shall become exercisable (vested) with respect to     % [describe vesting schedule] of the Option Shares granted on the first annual anniversary of the Grant Date, and with respect to an additional     % of the Option Shares granted on each of the                      annual anniversaries.  Once exercisable with respect to a number of Shares, the Option shall remain exercisable with respect to that number of Shares (subject to reduction for exercise) until the tenth anniversary of the Grant Date, subject to such shorter period as might apply under Sections 6 and 8 of this Agreement.  The Optionee’s unexercised right to purchase shares of Option Stock shall cumulate and carry-over to subsequent twelve-month periods.

 

SECTION 4 — EXERCISE OF OPTION

 

During the Option Period, the Optionee may exercise the Option upon compliance with the following additional terms:

 

(a)           Method of Exercise.  The Optionee shall exercise portions of the Option by written notice, which shall:

 

(i)             state the election to exercise the Option, the number of Shares in respect of which it is being exercised, and the Optionee’s address and Social Security Number;

 

(ii)           contain such representations and agreements, if any, as the Company’s Board or the Committee may require concerning the holder’s investment intent regarding such Shares;

 

(iii)          be signed by the Optionee; and

 

(iv)          be in writing and delivered in person or by certified mail to the Chairman of the Committee.

 

(b)           Payment Upon Exercise of Option.  Payment of the full Option Price for Shares upon which the Option is exercised, plus any income and employment tax withholding (if applicable), shall accompany the written notice of exercise described above. Payment may be made (i) in cash; (ii) by personal check; (iii) by transfer of other Shares which (A) in the case of Shares acquired from the Company, have been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares with respect to which the Option or portion thereof is being exercised; (iv) by a written election to have the Company retain that number of shares of Stock subject to the Option having an aggregate Fair Market Value equal to the aggregate exercise price of the Option, provided that for Incentive Stock Options, this right must be granted by the Committee at the time the Option is granted and may not be added in any modification of the Award Agreement; or (v) by any combination thereof. The Company shall cause to be issued

 

 

and delivered to the Optionee the certificate(s) representing such Shares as soon as practicable following the receipt of notice and payment described above.

 

SECTION 5 — NONTRANSFERABILITY OF OPTION

 

The Option shall not be transferable or assignable by the Optionee, except that Optionee can transfer the Option to a Permitted Transferee under Section 15.14 of the Plan.  Upon any such transfer, the Permitted Transferee will be deemed the Optionee for purposes of exercise hereunder, subject to applicable tax rules.  The Option shall be exercisable, during the Optionee’s lifetime, only by him.  The Option shall not be pledged or hypothecated in any way, and shall not be subject to execution, attachment, or similar process.  Any attempted transfer, assignment, pledge, hypothecation, or other disposition of the Option contrary to the provisions hereof, and the levy of any process upon the Option, shall be null, void, and without effect.

 

SECTION 6 — EFFECT OF AMENDMENT, SUSPENSION,
  OR TERMINATION OF EXISTING OPTIONS

 

The Board can amend or terminate the Plan at any time, and the Committee may amend your Option Agreement, but no amendment, suspension, or termination of the Plan will impair your Option without your consent, subject to the Company’s right to fully vest and accelerate your option in the event of a Change in Control.

 

SECTION 7 — RESTRICTIONS ON ISSUING SHARES

 

Shares shall not be issued pursuant to the exercise of the Option unless the issuance and transferability of the Shares shall comply with all relevant provisions of law, including, but not limited to, the (i) limitations, if any, imposed by applicable state law, and (ii) restrictions, if any, imposed by the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder by the United States Securities and Exchange Commission.  The Committee may, in its discretion, determine if such restrictions or such issuance of shares so complies with all relevant provisions of law.

 

SECTION 8 — EXERCISE AFTER TERMINATION OF SERVICE

 

After an Optionee’s Termination of Service due to death, Disability or Retirement on or after age 65, an Option may be exercised only with respect to the number of Shares which the Optionee could have acquired by an exercise of the Option immediately before the Termination of Service, but in no event after the expiration date of the Option as specified in Section 3.  The right to exercise will expire at the earlier of the expiration of the Option Period or one year after

 

 

the Employee’s death, Disability, or Retirement.(1)  Any Option exercised under this Section may be exercised by the legal representative of the estate of the Employee or by the person or persons who acquire the right to exercise such Option by bequest or inheritance.  If the Committee determines in the particular case that there was Cause for Termination of Service, the right to exercise the Option shall immediately terminate upon Termination of Service.  Absent death, Disability, Retirement, or a finding of Cause, the Option shall remain exercisable for the shorter of the Option Period or three months following Termination of Service.

 

For purposes of this Agreement, “Cause” shall mean the Optionee’s (i) willful failure to substantially perform such Optionee’s reasonably assigned duties; (ii) repeated gross negligence in performing such Optionee’s duties; (iii) illegal conduct in performing such Optionee’s duties; (iv) willful actions contrary to the Company’s interest; (v) repeated refusal to comply with the reasonable and lawful instructions of management of the Company or a Subsidiary; or (vi) violation of the obligations imposed on the Optionee under any confidentiality or solicitation covenants to which the Optionee is bound under the terms of this Agreement or otherwise.

 

SECTION 9 — ACKNOWLEDGEMENTS

 

The Optionee acknowledges receipt contemporaneously herewith of a copy of the Plan, and the Optionee accepts the Option subject to all the terms and provisions of the Plan.  Any capitalized term used herein and not otherwise defined shall have the meaning given in the Plan.  The Optionee acknowledges that nothing contained in the Plan or this Agreement shall (i) confer upon the Optionee any additional rights to continued employment by the Company, or any corporation related to the Company; or (ii) interfere in any way with the right of the Company to terminate the Optionee’s employment or change the Optionee’s compensation at any time.

 

SECTION 10 — TERM OF AGREEMENT

 

This Agreement shall terminate upon the earlier of (i) complete exercise or termination of the Option; (ii) mutual agreement of the parties; or (iii) expiration of the Option Period.

 

(1)   Where an Optionee has received Incentive Stock Options and terminates service due to Retirement, the right to exercise will expire three months after the Optionee’s Retirement; provided, however, if an Incentive Stock Option is not exercised after three months, it will remain exercisable for the longer period allowed for Retirement (one year) as if it were a Nonqualified Stock Option and will be a Nonqualified Stock Option when exercised

 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date set forth in the preamble hereto, but actually on the dates set forth below.

 

 

	
 
    	
ALMOST   FAMILY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
Optionee
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    
					

 

 

ALMOST FAMILY, INC.

2013 STOCK AND INCENTIVE COMPENSATION PLAN

 

FORM OF NON-EMPLOYEE DIRECTOR STOCK OPTION AGREEMENT

 

This is a STOCK OPTION AGREEMENT (the “Agreement”) dated as of                                         , (the “Grant Date”) by and between Almost Family, Inc. (the “Company”), and                                                  (the “Optionee”).

 

Recitals

 

A.            The Board of Directors of the Company (the “Board”) adopted the Almost Family, Inc. 2013 Stock and Incentive Compensation Plan (the “Plan”) on March 25, 2013, and the Plan was approved by the Company’s shareholders on May 6, 2013.

 

B.            The Compensation Committee of the Board (the “Committee”) has determined that it is in the best interests of the Company and appropriate to the stated purposes of the Plan that the Company grant to the Optionee an option to purchase shares of the Company’s common stock (“Shares”) pursuant and subject to the terms, definitions, and conditions of the Plan, in the form of a stock option that is exempt from Code Section 409A.

 

C.            Any capitalized terms used but not defined herein shall have the respective meanings given them in the Plan, a copy of which is attached hereto and incorporated by reference herein in its entirety.

 

NOW, THEREFORE, the Company and the Optionee do hereby agree as follows:

 

SECTION 1 — GRANT OF OPTION

 

Subject to the terms and conditions of this Agreement, the Company hereby grants to the Optionee an option (the “Option”) to purchase all or any part from time to time of Shares as set forth below:

 

	
TYPE OF OPTION
    	
 
    	
NUMBER OF SHARES
    
	
 
    	
 
    	
 
    
	
Nonqualified   Stock Options
    	
 
    	
 
    

 

SECTION 2 — OPTION PRICE

 

The Option Price hereunder is $                        per Share, which is not less than 100% of the Fair Market Value of a Share on the Grant Date.

 

 

SECTION 3 — DURATION OF OPTION

 

The Option shall become exercisable (vested) with respect to     % [describe vesting schedule] of the Option Shares granted on the first annual anniversary of the Grant Date, and with respect to an additional     % of the Option Shares granted on each of the                      annual anniversaries.  Once exercisable with respect to a number of Shares, the Option shall remain exercisable with respect to that number of Shares (subject to reduction for exercise) until the tenth anniversary of the Grant Date, subject to such shorter period as might apply under Sections 6 and 8 of this Agreement.  The Optionee’s unexercised right to purchase shares of Option Stock shall cumulate and carry-over to subsequent twelve-month periods.

 

SECTION 4 — EXERCISE OF OPTION

 

During the Option Period, the Optionee may exercise the Option upon compliance with the following additional terms:

 

(a)           Method of Exercise.  The Optionee shall exercise portions of the Option by written notice, which shall:

 

(i)             state the election to exercise the Option, the number of Shares in respect of which it is being exercised, and the Optionee’s address and Social Security Number;

 

(ii)           contain such representations and agreements, if any, as the Company’s Board or the Committee may require concerning the holder’s investment intent regarding such Shares;

 

(iii)          be signed by the Optionee; and

 

(iv)          be in writing and delivered in person or by certified mail to the Chairman of the Committee.

 

(b)           Payment Upon Exercise of Option.  Payment of the full Option Price for Shares upon which the Option is exercised, plus any income and employment tax withholding (if applicable), shall accompany the written notice of exercise described above. Payment may be made (i) in cash; (ii) by personal check; (iii) by transfer of other Shares which (A) in the case of Shares acquired from the Company, have been owned by the Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares with respect to which the Option or portion thereof is being exercised; (iv) by a written election to have the Company retain that number of shares of Stock subject to the Option having an aggregate Fair Market Value equal to the aggregate exercise price of the Option; or (v) by any combination thereof.  The Company shall cause to be issued and delivered to the Optionee the certificate(s) representing such Shares as soon as practicable following the receipt of notice and payment described above.

 

 

SECTION 5 — NONTRANSFERABILITY OF OPTION

 

The Option shall not be transferable or assignable by the Optionee, except that Optionee can transfer the Option to a Permitted Transferee under Section 15.14 of the Plan.  Upon any such transfer, the Permitted Transferee will be deemed the Optionee for purposes of exercise hereunder, subject to applicable tax rules.  The Option shall be exercisable, during the Optionee’s lifetime, only by him.  The Option shall not be pledged or hypothecated in any way, and shall not be subject to execution, attachment, or similar process.  Any attempted transfer, assignment, pledge, hypothecation, or other disposition of the Option contrary to the provisions hereof, and the levy of any process upon the Option, shall be null, void, and without effect.

 

SECTION 6 — EFFECT OF AMENDMENT, SUSPENSION,

OR TERMINATION OF EXISTING OPTIONS

 

The Board can amend or terminate the Plan at any time, and the Committee may amend your Option Agreement, but no amendment, suspension, or termination of the Plan will impair your Option without your consent, subject to the Company’s right to fully vest and accelerate your option in the event of a Change in Control.

 

SECTION 7 — RESTRICTIONS ON ISSUING SHARES

 

Shares shall not be issued pursuant to the exercise of the Option unless the issuance and transferability of the Shares shall comply with all relevant provisions of law, including, but not limited to, the (i) limitations, if any, imposed by applicable state law, and (ii) restrictions, if any, imposed by the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder by the United States Securities and Exchange Commission.  The Committee may, in its discretion, determine if such restrictions or such issuance of shares so complies with all relevant provisions of law.

 

SECTION 8 — EXERCISE AFTER TERMINATION OF SERVICE

 

After an Optionee’s Termination of Service as a Director, an Option may be exercised only with respect to the number of Shares which the Optionee could have acquired by an exercise of the Option immediately before the Termination of Service, but in no event after the expiration date of the Option as specified in Section 3.  The right to exercise will expire at the earlier of the expiration of the Option Period or one year after the Termination of Service.

 

Notwithstanding any provision of this Agreement, if the Committee determines in the particular case that the Director’s Termination of Service occurred as a result of removal for cause, the right to exercise the Option shall immediately terminate upon Termination of Service.

 

 

SECTION 9 — ACKNOWLEDGEMENTS

 

The Optionee acknowledges receipt contemporaneously herewith of a copy of the Plan, and the Optionee accepts the Option subject to all the terms and provisions of the Plan.  Any capitalized term used herein and not otherwise defined shall have the meaning given in the Plan.  The Optionee acknowledges that nothing contained in the Plan or this Agreement shall (i) confer upon the Optionee any additional rights to continued employment by the Company, or any corporation related to the Company; or (ii) interfere in any way with the right of the Company to terminate the Optionee’s employment or change the Optionee’s compensation at any time.

 

SECTION 10 — TERM OF AGREEMENT

 

This Agreement shall terminate upon the earlier of (i) complete exercise or termination of the Option; (ii) mutual agreement of the parties; or (iii) expiration of the Option Period.

 

IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date set forth in the preamble hereto, but actually on the dates set forth below.

 

	
 
    	
ALMOST   FAMILY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
Optionee
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Date:
    	
 
    
									

 

 

ALMOST FAMILY, INC.

2013 STOCK AND INCENTIVE COMPENSATION PLAN

 

FORM OF EMPLOYEE RESTRICTED STOCK AWARD AGREEMENT

 

Almost Family, Inc. (“AFAM”) grants as of                                      (the “Grant Date”) to                                                                              (the “Employee” or “you”) the number of shares set forth below of the common stock of AFAM under the Almost Family, Inc. 2013 Stock and Incentive Compensation Plan (the “Plan”).  A copy of the Plan is attached, and any capitalized terms used but not defined in this Agreement shall have the meaning given them in the Plan.

 

GRANT OF AWARD.  Subject to the terms and conditions of this Agreement and the Plan, AFAM hereby grants to you a Restricted Stock Award in the amount of          shares of Stock (the “Shares”).   The Shares will be issued to you after you sign this Agreement, but are subject to forfeiture upon your Termination of Service with AFAM. AFAM shall retain custody of the Shares and any certificates evidencing the Shares until such time as the Shares become vested, in accordance with provisions set forth below.

 

RESTRICTION PERIOD.  The Restricted Stock vests on the          annual anniversary [describe vesting schedule] of the Grant Date stated above, provided that you have not incurred a Termination of Service with AFAM before that vesting date.   However, your Restricted Stock will become 100% vested upon your death, Disability or Retirement(1) before the vesting date.

 

 

TAXATION OF AWARD.   Your Restricted Stock will be taxable when it vests, at the value on the vesting date.  See the attachment to this Agreement explaining your alternative to include the current value of the Shares in income, by making an 83(b) election within 30 days of the Grant Date.  You may only choose this option if you make arrangements satisfactory to AFAM to pay any required withholding taxes due now if the election is made.   Satisfactory arrangements may include the Company retaining a portion of the Shares with a Fair Market Value equal to the Company’s withholding obligations, if such an arrangement is mutually agreeable to you and the Company.  Check below if you wish to make an 83(b) election:

 

I elect to make an 83(b) tax election to include the value of Shares granted to me in income now.

 

If you do not make an 83(b) election, and the shares are taxable on the vest date, you may elect to have a sufficient number of shares withheld and repurchased by the Company in satisfaction of all or part of the required tax withholding.  If you do not elect this option, you must pay the Company an amount equal to the tax withholding or make arrangements satisfactory to the Company for paying the withholding no later than the date of vesting.  In the event you do not meet these withholding requirements, your shares will be forfeited on the day following the vest date.  The Company may determine in notice to you that shares will be withheld and repurchased for taxes unless you elect otherwise.

 

(1)    For this purpose, Retirement means Termination of Employment on or after age 65, determined in accordance with the rules in Code Section 409A and the terms of the Plan.

 

 

TRANSFER RESTRICTIONS.  Until such time as the Shares become vested in accordance with provisions set forth above, the Shares shall not be transferred, pledged or disposed of except by will or the laws of descent and distribution, and are subject to forfeiture in accordance with this Agreement and the Plan.

 

RESTRICTIONS ON DIVIDENDS.  Any dividends that may be declared on the Shares shall be retained by AFAM until the date the Shares become vested in accordance with provisions set forth above, and will be paid to you within 30 days after the vest date, reduced by applicable tax withholding.  Dividends on unvested shares are subject to forfeiture in accordance with this Agreement and the Plan.

 

ACKNOWLEDGMENTS.   By signing below, you acknowledge that you have received a copy of the Plan, and you hereby accept the Shares subject to all the terms and provisions of the Plan.  Nothing contained in the Plan or this Agreement shall give you any rights to continued employment by AFAM or interfere in any way with the right of  AFAM to terminate your employment or change your compensation at any time.

 

STOCK POWER.   To effect the transfer to AFAM of the Shares upon your Termination of Service, you hereby execute the following with your signature below:  “By signing below, I hereby appoint the Secretary of AFAM as my agent, authorized representative and attorney, to transfer the Shares I receive under this Award to AFAM upon forfeiture on the terms of this Award or to satisfy tax withholding obligations (by redemption or sale), without consideration therefore, and no further authorization or signature by me shall be required.  Within five days after receipt of a written request from AFAM, I hereby agree to provide such additional information and to execute and deliver such additional documents as may reasonably be necessary to effect this transfer.”

 

	
 
    	
ALMOST   FAMILY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Employee
    	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
							

 

 

ALMOST FAMILY, INC.

2013 STOCK AND INCENTIVE COMPENSATION PLAN

 

FORM OF NON-EMPLOYEE DIRECTOR RESTRICTED STOCK AWARD AGREEMENT

 

Almost Family, Inc. (“AFAM”) grants as of                  , 201_  (the “Grant Date”) to                                                                              (the “Director” or “you”) the number of shares set forth below of the common stock of AFAM under the Almost Family, Inc. 2013 Stock and Incentive Compensation Plan (the “Plan”).  A copy of the Plan is attached, and any capitalized terms used but not defined in this Agreement shall have the meaning given them in the Plan.

 

GRANT OF AWARD.  Subject to the terms and conditions of this Agreement and the Plan, AFAM hereby grants to you a Restricted Stock Award in the amount of          shares of Stock (the “Shares”).   These shares will be issued to you after you sign this Agreement, but are subject to forfeiture upon your Termination of Service with AFAM.

 

RESTRICTION PERIOD.  The Restricted Stock vests in full on the          anniversary of the Grant Date stated above [describe vesting schedule], provided that you have not incurred a Termination of Service with AFAM before the applicable vesting date (except a Termination of Service occurring on the date of the        annual meeting of stockholders as a result of your absence from the slate of nominees proposed by AFAM’s board of directors for election at the          annual meeting).   However, your Restricted Stock will become 100% vested upon your death or Disability before the vesting date if you have not already incurred a Termination of Service.

 

TAXATION OF AWARD.   Your Restricted Stock will be taxable when it vests, at the value on the vesting date.  See the attachment to this Agreement explaining your alternative to include the value of the shares in income within 30 days of the Grant Date.  You may only choose this option if you make arrangements satisfactory to AFAM to pay any required withholding taxes due now if the election is made.   Check below if you wish to make this election:

 

I elect to make an 83(b) tax election to include the value of Shares granted to me in income now.

 

TRANSFER RESTRICTIONS.  Until such time as the Shares become vested in accordance with provisions set forth above, the Shares shall not be transferred, pledged or disposed of except by will or the laws of descent and distribution, and are subject to forfeiture in accordance with this Agreement and the Plan.

 

RESTRICTIONS ON DIVIDENDS.  Any dividends that may be declared on the Shares shall be retained by AFAM until the date the Shares become vested in accordance with provisions set forth above, and will be paid to you within 30 days after the vest date, reduced by applicable tax withholding.  Dividends on unvested shares are subject to forfeiture in accordance with this Agreement and the Plan.

 

ACKNOWLEDGMENTS.   By signing below, you acknowledge that you have received a copy of the Plan, and you hereby accept the Shares subject to all the terms and provisions of the Plan.  Nothing

 

 

contained in the Plan or this Agreement shall give you any rights to continued service as a director of AFAM or interfere in any way with the right of  AFAM to change your compensation at any time.

 

STOCK POWER.   To effect the transfer to AFAM of the Shares upon your Termination of Service, you hereby execute the following with your signature below:  “By signing below, I hereby appoint the Secretary of AFAM as my agent, authorized representative and attorney, to transfer the Shares I receive under this Award to AFAM upon my Termination of Service prior to the vesting date (other than on account of death or Disability), without consideration therefore, and no further authorization or signature by me shall be required.  Within five days after receipt of a written request from AFAM, I hereby agree to provide such additional information and to execute and deliver such additional documents as may reasonably be necessary to effect this transfer.”

 

	
 
    	
ALMOST   FAMILY, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Director
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:

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