Document:

Perlman Nonstatutory Stock Option Agreement

 EXHIBIT 10.5 
  
 TULARIK, INC. 
 STOCK OPTION GRANT NOTICE 
 (Nonstatutory Stock Option Outside of any Stock Plan) 
  
 Tularik, Inc. (the “Company”) hereby grants to Optionholder a nonstatutory stock
option to purchase the number of shares of the Company’s Common Stock set forth below. This option is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”). This option is not subject to, and is granted outside of, any equity compensation plan of the Company. This option is subject to all of the terms and conditions as set forth herein and in the Stock Option Agreement
and the Notice of Exercise, which are attached hereto and incorporated herein in their entirety. 
  

			
		
	 Optionholder:
	  	ANDREW J. PERLMAN
		
	 Date of Grant:
	  	NOVEMBER 5, 1999
		
	 Vesting Commencement Date:
	  	NOVEMBER 5,1999
		
	 Number of Shares Subject to Option:
	  	20,000 (TWENTY THOUSAND)
		
	 Exercise Price (Per Share):
	  	$3.00
		
	 Total Exercise Price:
	  	$60,000.00
		
	 Expiration Date:
	  	NOVEMBER 4, 2009

  

			
		
	 Type of Grant:
	  	Nonstatutory Stock Option
		
	 Exercise Schedule:
	  	Early Exercise Permitted
		
	 Vesting Schedule:
	  	 1/48th of the
shares vest one month after the Vesting Commencement Date.
 1/48th of the shares vest monthly thereafter subject to the terms of the Stock Option Agreement.

		
	 Payment:
	  	By one or a combination of the following items (described in the Stock Option Agreement):
		
	 	  	 By cash or check
 Pursuant to a Regulation T Program if the Shares are publicly traded
 By delivery of already-owned shares if the Shares are
publicly traded

  

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 Additional Terms/Acknowledgements: The undersigned Optionholder acknowledges receipt of, and understands and
agrees to the terms of this Grant Notice and the Stock Option Agreement and the representations made by Optionholder in the Stock Option Agreement (e.g., subparagraph 6(b)) and herein. Optionholder further acknowledges that as of the Date of Grant,
this Grant Notice and the Stock Option Agreement set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject with the
exception of (i) options previously granted and delivered to Optionholder and (ii) the following agreements only: 
  

			
	 OTHER AGREEMENTS:
	  	 
		
	 	  	 

  

									
	 TULARIK INC.
	 	 	 	 OPTIONHOLDER:

				
	By:	 	 	 	 	 	  
	 	 	Signature	 	 	 	Signature
					
	 Title:
	 	Secretary	 	 	 	 Date:
	 	 11/5/99

					
	 Date:
	 	 11/5/99
	 	 	 	 	 	 

  
 ATTACHMENTS:
Stock Option Agreement, Notice of Exercise 
  

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 TULARIK, INC. 
 (NONSTATUTORY STOCK OPTION OUTSIDE OF ANY STOCK OPTION PLAN) 
  
 STOCK OPTION AGREEMENT

 (NONSTATUTORY STOCK OPTION) 
  
 Pursuant to your Stock Option Grant Notice (“Grant Notice”) and
this Stock Option Agreement, Tularik, Inc. (the “Company”) has granted you an option to purchase the number of shares (the “Shares”) of the common stock of the Company (the “Common Stock”) indicated in your Grant Notice
at the exercise price indicated in your Grant Notice. 
  
 The
details of your option are as follows: 
  
 1.
VESTING. Subject to the limitations contained herein, your option will vest as provided in your Grant Notice, provided that vesting will cease upon the termination of your provision of all personal services,
whether as a common law employee, an independent contractor, or a director (“Continuous Service”), to the Company (including for this purpose service to an Affiliate of the Company). An “Affiliate” of the Company is any parent
corporation or subsidiary corporation, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f) respectively, of the Code. 
  
 2. NUMBER OF SHARES AND EXERCISE
PRICE. The number of shares of Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for capitalization adjustments. 
  
 3. EXERCISE PRIOR TO
VESTING (“EARLY EXERCISE”). Subject to the provisions herein and in the Grant Notice, you may elect at any time that is both (i) during the period of your Continuous Service and (ii) during
the term of your option, to exercise all or part of your option, including the nonvested portion of your option; provided, however, that: 
  
 (a) a partial exercise of your option shall be deemed to cover first vested shares of Common Stock and then the earliest vesting
installment of unvested shares of Common Stock; 
  
 (b) any shares of Common Stock so purchased from installments that have not vested as of the date of exercise shall be subject to the purchase option in favor of the Company as described in the Company’s form of Early Exercise
Stock Purchase Agreement; and 
  
 (c) you
shall enter into the Company’s form of Early Exercise Stock Purchase Agreement with a vesting schedule that will result in the same vesting as if no early exercise had occurred. 
  
 4. METHOD OF PAYMENT. Payment of the exercise price is due in
full upon exercise of all or any part of your option. You may elect to make payment of the exercise price 

  

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in cash or by check or in any other manner permitted by your Grant Notice,which may include one or more of the following: 
  
 (a) In the Company’s sole discretion at the time
your option is exercised and provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. 
  
 (b) Provided that at the time of exercise the Common
Stock is publicly traded and quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock either that you have held for the period required to avoid a charge to the Company’s reported earnings
(generally six months) or that you did not acquire, directly or indirectly from the Company, that are owned free and clear of any liens, claims, encumbrances or security interests, and that are valued at Fair Market Value on the date of exercise.
“Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of Common Stock in a form approved by the
Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement restricting the redemption of the
Company’s stock. 
  
 5. WHOLE
SHARES. You may exercise your option only for whole shares of Common Stock. 
  
 6. SECURITIES LAW COMPLIANCE. 
  
 (a) Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act of 1933 (the “Securities Act”) or, if such shares of Common Stock are not then so
registered, the Company has determined that such exercise and issuance would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with other applicable laws and regulations governing your
option, and you may not exercise your option if the Company determines that such exercise would not be in material compliance with such laws and regulations. 
  

(b) You warrant and represent that you have either (i) preexisting personal or business relationships, with the Company or any
of its officers, directors or controlling persons, or (ii) the capacity to protect your own interests in connection with the purchase of Shares by virtue of your business or financial expertise or that of professional advisors to you who are
unaffiliated with and who are not compensated by the Company or any of its affiliates, directly or indirectly. 
  

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 7. TERM. You may not exercise your option before the commencement of its term or
after its term expires. The term of your option commences on the Date of Grant and expires upon the earliest of the following: 
  
 (a) three (3) months after the termination of your Continuous Service for any reason other than your Disability or death, provided
that if during any part of such period of time your option is not exercisable solely because of the condition set forth in subparagraph (a) of the preceding paragraph relating to “Securities Law Compliance,” your option shall not expire
until the earlier of the Expiration Date or until it shall have been exercisable for an aggregate period of three (3) months after the termination of your Continuous Service; 
  
 (b) twelve (12) months after the termination of your Continuous Service due to your Disability;

  
 (c) eighteen (18) months after your
death if you die either during your Continuous Service or within three (3) months after your Continuous Service terminates; 
  
 (d) the Expiration Date indicated in your Grant Notice; or 
  
 (e) the day before the tenth (10th) anniversary of the Date of Grant. 
  
 8. EXERCISE. 
  
 (a) You may exercise the vested portion of your
option (and the unvested portion of your option if your Grant Notice so permits) during its term by delivering a Notice of Exercise (in a form designated by the Company) together with the exercise price to the Secretary of the Company, or to such
other person as the Company may designate, during regular business hours, together with such additional documents as the Company may then require. 
  
 (b) By exercising your option you agree that, as a condition to any exercise of your option, the Company may require you to enter
into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of your option, (2) the lapse of any substantial risk of forfeiture to which the shares of
Common Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock acquired upon such exercise. 
  
 (c) By exercising your option you agree that the Company (or a representative of the underwriter(s)) may, in connection with the
first underwritten registration of the offering of any securities of the Company under the Securities Act, require that you not sell, dispose of, transfer, make any short sale of, grant any option for the purchase of, or enter into any hedging or
similar transaction with the same economic effect as a sale, any shares of Common Stock or other securities of the Company held by you, for a period of time specified by the underwriter(s) (not to exceed one hundred eighty (180) days) following the
effective date of the registration statement of the Company filed under the Securities Act. You further agree to execute and deliver such other agreements as may be reasonably requested by the Company and/or the underwriter(s) that are consistent
with the foregoing or that are necessary to give further effect 

  

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thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to your shares of Common Stock until the
end of such period. 
  
 9.
TRANSFERABILITY. Your option is not transferable, except by will or by the laws of descent and distribution, and is exercisable during your life only by you. Notwithstanding the foregoing, by delivering written
notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 
  
 10. RIGHT OF FIRST REFUSAL. Shares of
Common Stock that you acquire upon exercise of your option are subject to any right of first refusal that may be described in the Company’s bylaws in effect at such time the Company elects to exercise its right. The Company’s right of
first refusal shall expire on the Listing Date (defined below). 
  
 11. RIGHT OF REPURCHASE. To the extent provided in the Company’s bylaws as amended from time to time, the Company shall have the right to repurchase all or any
part of the shares of Common Stock you acquire pursuant to the exercise of your option. 
  
 12. CAPITALIZATION ADJUSTMENTS. If any change is made in the Shares subject to this option without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other
transaction not involving the receipt of consideration by the Company), this option, if still outstanding at the time of such change, will be appropriately adjusted in the class(es) and number of shares and price per share of stock subject to the
option. Such adjustments shall be made by the Board of Directors of the Company (the “Board”), the determination of which shall be final, binding and conclusive. (The conversion of any convertible securities of the Company shall not be
treated as a transaction “without receipt of consideration” by the Company.) 
  
 13. EFFECT OF CERTAIN CORPORATE TRANSACTIONS. In the event of: (l)a dissolution, liquidation or sale of all or substantially all
of the assets of the Company; (2) a merger or consolidation in which the Company is not the surviving corporation; (3) a reverse merger in which the Company is the surviving corporation but the shares of the Company’s common stock outstanding
immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; (4) after the first date upon which any security of the Company is listed (or approved for listing)
upon notice of issuance on any securities exchange, or designated (or approved for designation) upon notice of issuance as a national market security on an interdealer quotation system if such securities exchange or interdealer quotation system has
been certified in accordance with the provisions of Section 25100(o) of the California Corporate Securities Law of 1968 (the “Listing Date”), the acquisition by any person, entity or group within the meaning of Section 13(d) or 14(d) of
the Securities Exchange Act of 1934 (the “Exchange Act”), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained by the Company or any Affiliate of the Company) of the
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act, or comparable successor rule) of securities of the 

  

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Company representing at least fifty percent (50%) of the combined voting power entitled to vote in the election of directors; or (5) at the time individuals
who, as of the first date on which the Company has a class of equity securities which are actively traded on any established stock exchange or a national market system (including that of the National Association of Securities Dealers, Inc.),
constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board, provided that any person becoming a director subsequent to such date, whose election or nomination for election by the
Company’s stockholders was approved by a vote of at least a majority of the directors comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of Directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) shall be considered as though such person were a member of the Incumbent
Board, then: (i) any surviving corporation or acquiring corporation shall assume your option or shall substitute a similar option for your option; or (ii) if any surviving corporation or acquiring corporation refuses to assume your option or to
substitute a similar option for your option, then (A) if your Continuous Service has not terminated as of immediately prior to such event, then the vesting of the Shares subject to your option shall be accelerated prior to such event and your option
shall terminate to the extent not exercised after such acceleration and at or prior to such event, and (B) if your Continuous Service has terminated as of immediately prior to such event, then no acceleration of vesting shall occur and your option
shall terminate to the extent not exercised prior to such event. 
  
 14. PURCHASE FOR INVESTMENT; RIGHTS OF HOLDER ON SUBSEQUENT REGISTRATION. Unless the Shares
to be issued upon exercise of an option granted under the Grant Notice and this Stock Option Agreement have been effectively registered under the Securities Act, the Company shall be under no obligation to issue any Shares covered by any option
unless the person who exercises such option, whether such exercise is in whole or in part, shall give a written representation and undertaking to the Company which is satisfactory in form and scope to counsel for the Company and upon which, in the
opinion of such counsel, the Company may reasonably rely, that he or she is acquiring the Shares issued to him or her pursuant to such exercise of the option for his or her own account as an investment and not with a view to, or for sale in
connection with, the distribution of any such Shares, and that he or she will make no transfer of the same except in compliance with any rules and regulations in force at the time of such transfer under the Securities Act, or any other applicable
law, and that if Shares are issued without such registration a legend to this effect may be endorsed on the securities so issued. In the event that the Company shall, nevertheless, deem it necessary or desirable to register under the Securities Act
or other applicable statutes any Shares with respect to which an option shall have been exercised, or to qualify any such Shares for exemption from the Securities Act or other applicable statutes, then the Company shall take such action at its own
expense and may require from each participant such information in writing for use in any registration statement, prospectus, preliminary prospectus or offering circular as is reasonably necessary for such purpose and may require reasonable indemnity
to the Company and its officers and directors from such holder against all losses, claims, damages and liabilities arising from such use of the information so furnished and caused by any untrue statement of any material fact 

  

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required to be stated therein or necessary to make the statement therein not misleading in light of the circumstances under which they were made. 

 
 15. OPTION NOT A
SERVICE CONTRACT. Your option is not an employment or service contract, and nothing in your option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ
of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in your option shall obligate the Company or an Affiliate, their respective stockholders, Boards of Directors, officers or employees
to continue any relationship that you might have as a director or consultant for the Company or an Affiliate. 
  
 16. WITHHOLDING OBLIGATIONS. 
  
 (a) At the time you exercise your option, in whole or in part, or at any time thereafter as requested
by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant to a program developed under
Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which arise in
connection with your option. 
  
 (b) Upon
your request and subject to approval by the Company, in its sole discretion, and compliance with any applicable conditions or restrictions of law, the Company may withhold from vested shares of Common Stock otherwise issuable to you upon the
exercise of your option a number of whole shares of Common Stock having a fair market value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law. If the date of
determination of any tax withholding obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the preceding sentence shall not be permitted unless you make a proper and timely election under
Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding obligation to the
date of exercise of your option. Notwithstanding the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that are otherwise issuable
to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility. 
  
 (c) You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied.
Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any
escrow provided for herein. 
  
 17.
NOTICES. Any notices provided for in this option shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by mail by the 

  

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Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company.

  
 18. CHOICE OF
LAW. This option shall be governed by, and construed in accordance with the laws of the State of California, as such laws are applied to contracts entered into and performed in such State. 
  
 19. GOVERNING AUTHORITY. This option is
subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted by the Company. This authority shall be exercised by the Board, or by a committee of one or more members of the Board in the
event that the Board delegates its authority to a committee. The Board, in the exercise of this authority, may correct any defect, omission or inconsistency in this option in a manner and to the extent the Board shall deem necessary or desirable to
make this option folly effective. References to the Board also include any committee appointed by the Board to administer and interpret this option. Any interpretations, amendments, rules and regulations promulgated by the Board shall be final and
binding upon the Company and its successors in interest as well as you and your heirs, assigns, and other successors in interest. 
  
 Dated the      day of
                        , 1999. 
  

Very truly yours, 
  

			
	TULARIK INC.
		
	By:	 	 
	 	 	Duly authorized on behalf of the Board of Directors

  

 92004 Stock Option Plan No. 1

 EXHIBIT 10.1 
  
 — MATERIAL CONTRACTS — 
  
 2004 STOCK OPTION PLAN
NO. 1 
  
 SHIWANA, INC.

  
 2004 STOCK OPTION PLAN 
  
 NO. 1 
  
 PURPOSE. 
  
 The purpose of this plan (the “Plan”) is to secure for Shiwana, Inc. (the “Company”) and its shareholders the benefits arising from capital stock,
ownership by employees, officers, and directors of, and consultants or advisors to, the Company and its parent and subsidiary corporations who are expected to contribute to the Company’s future growth and success. Except where the context
otherwise requires, the term “Company” shall include the parent and all present and future subsidiaries of the Company as defined in Section 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced from time to time
(the “Code”). Those provisions of the Plan which make express reference to Section 422 shall apply only to Incentive Stock Options (as that term is defined in the Plan). 
  
 TYPES OF OPTIONS AND ADMINISTRATION. 
  
 Types of Options. Options granted pursuant to the Plan shall be authorized by action of the Board of Directors of the Company (or a Committee designated
by the Board of Directors) and may be either incentive stock options (“Incentive Stock Options”) meeting the requirements of Section 422 of the Code or non-statutory options which are not intended to meet the requirements of Section 422 of
the Code. 
  
 Administration. The Plan will be administered by
the Board of Directors of the Company, whose construction and interpretation of the terms and provisions of the Plan shall be final and conclusive. The Board of Directors may in its sole discretion grant options to purchase shares of the
Company’s Common Stock (“Common Stock”) and issue shares upon exercise of such options as provided in the Plan. The Board shall have authority, subject to the express provisions of the Plan, to construe the respective option
agreements and the Plan, to prescribe, amend and rescind rules and regulations relating to the Plan, to determine the terms and provisions of the respective option agreements, which need not be 

  

 
identical, and to make all other determinations in the judgment of the Board of Directors necessary or desirable for the administration of the Plan. The
Board of Directors may correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any option agreement in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and
final judge of such expediency. No director or person acting pursuant to authority delegated by the Board of Directors shall be liable for any action or determination under the Plan made in good faith. The Board of Directors may, to the full extent
permitted by or consistent with applicable laws or regulations (including, without limitation, applicable state law and Rule 16b-3 promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), or any successor rule
(“Rule 16-3b”)), delegate any or all of its powers under the Plan to a committee (the “Committee”) appointed by the Board of Directors, and if the Committee is so appointed all references to the Board of Directors in the Plan
shall mean and relate to such Committee. 
  
 Applicability of
Rule 16b-3. Those provisions of the Plan which make express reference to Rule 16b-3 shall apply only to such persons as are required to file reports under Section 16(a) of the Exchange Act (a “Reporting Person”). 
  
 ELIGIBILITY. 
  
 General. Options may be granted to persons who are, at the time of grant, employees, officers or directors of, or
consultants or advisors to, the Company; provided, that the class of employees to whom Incentive Stock Options may be granted shall be limited to all employees of the Company. A person who has been granted an option may, if he or she is otherwise
eligible, be granted additional options if the Board of Directors shall so determine. 
  
 Grant of Options to Directors and Officers. From and after the registration of the Common Stock of the Company under the Exchange Act, the selection of a director or an officer (as the terms “director” and
“officer” are defined for purposes of Rule 16b-3) as a recipient of an option, the timing of the option grant, the exercise price of the option and the number of shares subject to the option shall be determined either (i) by the Board of
Directors, of which all members shall be “disinterested persons” (as hereinafter defined), or (ii) two or more directors having full authority to act in the matter, each of whom shall be a “disinterested person.” For the purposes
of the Plan, a director shall be deemed to be a “disinterested person” only if such person qualifies as a “disinterested person” within the meaning of Rule 16b-3, as such term is interpreted from time to time. 
  
 STOCK SUBJECT TO PLAN. 
  
 Subject to adjustment as provided in Section 15 below, the maximum number of shares of Common Stock of the Company which may
be issued and sold under the Plan is 1,781,926 shares; of which 1,000,000 shares shall be designated Incentive 

  

 
Stock Option Shares. If an option granted under the Plan shall expire or terminate for any reason without having been exercised in full, the unpurchased
shares subject to such option shall again be available for subsequent option grants under the Plan. If shares issued upon exercise of an option under the Plan are rendered to the Company in payment of the exercise price of an option granted under
the Plan, such tendered shares shall again be available for subsequent option grants under the Plan; provided, that in no event shall (i) the total number of shares issued pursuant to the exercise of Incentive Stock Options under the Plan, on a
cumulative basis, exceed the maximum number of shares authorized for issuance under the Plan exclusive of shares made available for issuance pursuant to this sentence or (ii) the total number of shares issued pursuant to the exercise of options by
Reporting Persons, on a cumulative basis, exceed the maximum number of shares authorized for issuance under the Plan exclusive of shares made available for issuance pursuant to this sentence. 
  
 Subject to the adjustment as provided in Section 15 of the Plan, the maximum
number of shares with respect to which options may be granted to any employee under the Plan shall not exceed 500,000 shares of Common Stock in any calendar year. For the purpose of calculating such maximum number (a) an option shall continue to be
treated as outstanding notwithstanding its repricing, cancellation or expiration and (b) the repricing of an outstanding option or the issuance of a new option in substitution for a cancelled option shall be deemed to constitute the grant of a new
additional option separate from the original grant of the option that is repriced or cancelled. 
  
 FORMS OF OPTION AGREEMENTS. 
  
 As a
condition to the grant of an option under the Plan, each recipient of an option shall execute an option agreement in such form not inconsistent with the Plan as may approved by the Board of Directors. Such option agreements may differ among
recipients. 
  
 PURCHASE PRICE. 
  
 General. The purchase price per share of stock deliverable upon the exercise
of an option shall be determined by the Board of Directors, provided, however, that in the case of an Incentive Stock Option, the exercise price shall not be less than 100% of the fair market value of such stock, as determined by the Board of
Directors, at the time of grant of such option, or less than 110% of such fair market value in the case of options described in Section 11(b). 
  
 Payment of Purchase Price. Options granted under the Plan may provide for the payment of the exercise price by delivery of cash or a check to the order of
the Company in an amount equal to the exercise price of such options, or, to the extent provided in the applicable option agreement, (i) by delivery to the Company of shares of Common Stock of the Company already owned by the optionee having a fair
market value equal in amount to the exercise price of the options being exercised, (ii) by any other means (including, without limitation, by delivery of a promissory 

  

 
note of the optionee payable on such terms as are specified by the Board of Directors) which the Board of Directors determines are consistent with the
purpose of the Plan and with applicable laws and regulations (including, without limitation, the provisions of Rule 16b-3 and Regulation T promulgated by the Federal Reserve Board) or (iii) by any combination of such methods of payment. The fair
market value of any shares of the Company’s Common Stock or other non-cash consideration which may be delivered upon exercise of an option shall be determined by the Board of Directors, 
  
 OPTION PERIOD. 
  
 Each option and all rights thereunder shall expire on such date as shall be set forth in the applicable option agreement, except that, in
the case of an Incentive Stock Option, such date shall not be later than ten (10) years after the date on such the option is granted and, in all cases, options shall be subject to earlier termination as provided in the Plan. 
  
 EXERCISE OF OPTIONS. 
  
 Each option granted under the Plan shall be exercisable either in full or in installments at such time or times and during such period as
shall be set forth in the agreement evidencing such option, subject to the provisions of the Plan. 
  
 NONTRANSFERABILITYOF OPTIONS. 
  
 Incentive Stock Options, and all options granted to Reporting Persons, shall not be assignable or transferable by the person to whom they are granted, either by operation of law, except by will or the laws of descent and distribution, and,
during the life of the optionee, shall be exercisable only by the optionee; provided, however, that non-statutory options may be transferred pursuant to a qualified domestic relations order (as defined in Rule 16b-3). 
  
 EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER RELATIONSHIP. 
  
 Except as provided in Section 11(d) with respect to Incentive Stock Options, and subject to
the provisions of the Plan, the Board of Directors shall determine the period of time during which an optionee may exercise an option following (i) the termination of the optionee’s employment or other relationship with the Company or (ii) the
death or disability of the optionee. Such periods shall be set forth in the agreement evidencing such option. 
  
 INCENTIVE STOCK OPTIONS. 
  
 Options
granted under the Plan which are intended to be Incentive Stock Options shall be subject to the following additional terms and conditions: 
  
 Express Designation. All Incentive Stock Options granted under the Plan shall, at the time of grant, be specifically designated as such in the option
agreement covering such Incentive Stock Options. 
  

 10% Shareholder. If any employee to whom an Incentive Stock Option is to be granted under the Plan is, at
the time of the grant of such option, the owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Company (after taking into account the attribution of stock ownership rules of Section 424(d) of the
Code), then the following special provisions shall be applicable to the Incentive Stock Option granted to such individual: 
  
 The purchase price per share of the Common Stock subject to such Incentive Stock Option shall not be less than 110% of the fair market value of one share
of Common Stock at the time of grant; and 
  
 The option exercise
period shall not exceed five years from the date of grant. 
  
 Dollar Limitation. For so long as the Code shall so provide, options granted to any employee under the Plan (and any other incentive stock option plans of the Company) which are intended to constitute Incentive Stock Options shall not
constitute Incentive Stock Options to the extent that such options, in the aggregate, become exercisable for the first time in any one calendar year for shares of Common Stock with an aggregate fair market value (determined as of the respective date
or dates of grant) of more than $100,000. 
  
 Termination of
Employment, Death or Disability. No Incentive Stock Option may be exercised unless, at the time of such exercise, the optionee is, and has been continuously since the date of grant of his or her option, employed by the Company, except that:

  
 an Incentive Stock Option may be exercised within the period
of ninety (90) days after the date the optionee ceases to be an employee of the Company (or within such lesser period as may be specified in the applicable option agreement), provided, that the agreement with respect to such option may designate a
longer exercise period and that the exercise after such ninety (90) day period shall be treated as the exercise of a non-statutory option under the Plan; 
  
 if the optionee dies while in the employ of the Company, or within ninety (90) days after the optionee ceases to be such an employee, the Incentive Stock
Option may be exercised by the person to whom it is transferred by will or the laws of descent and distribution within the period of one year after the date of death (or within such lesser period as may be specified in the applicable option
agreement); and 
  
 if the optionee becomes disabled (within the
meaning of Section 22(e)(3) of the Code or any successor provision thereto) while in the employ of the Company, the Incentive Stock Option may be exercised within the period of one year after the date the optionee ceases to be such an employee
because of such disability (or within such lesser period as may be specified in the applicable option agreement). 
  

 For all purposes of the Plan and any option granted hereunder, “employment” shall be defined in accordance with
the provisions of Section 1.421-7(h) of the Income Tax Regulations (or any successor regulations). Notwithstanding the foregoing provisions, no Incentive Stock Option may be exercised after its expiration date. 
  
 ADDITIONAL PROVISIONS. 
  
 Additional Option Provisions. The Board of Directors may, in its sole discretion, include additional provisions in option
agreements covering options granted under the Plan, including, without limitation, vesting provisions, restrictions on transfer, repurchase rights, commitments to pay cash bonuses, to make, arrange for or guaranty loans or to transfer other property
to optionees upon exercise of options, or such other provisions as shall be determined by the Board of Directors; provided that such additional provisions shall not be inconsistent with any other term or condition of the Plan and such additional
provisions shall not cause any Incentive Stock Option granted under the Plan to fail to qualify as an Incentive Stock Option within the meaning of Section 422 of the Code. 
  
 Acceleration, Extension, Etc. The Board of Directors may, in its sole discretion, (i) accelerate the date or dates on which
all or any particular option or options granted under the Plan may be exercised or (ii) extend the dates during which all, or any particular, option or options granted under the Plan may be exercised; provided, however, that no such extension shall
be permitted if it would cause the Plan to fail to comply with Section 422 of the Code or with Rule 16b-3. 
  
 GENERAL RESTRICTIONS. 
  
 Investment Representations. The Company may require any person to whom an option is granted, as a condition of exercising such option, to give written assurances in substance and form satisfactory to the Company to the effect that such
person is acquiring the Common Stock subject to the option for his or her own account for investment and not with any present intention of selling or otherwise distributing the same, and to such other effects as the Company deems necessary or
appropriate in order to comply with federal and applicable state securities laws, or with covenants or representations made by the Company in connection with any public offering of its Common Stock. 
  
 Compliance with Securities Laws. Each option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that the listing, registration or qualification of the shares subject to such option upon any securities exchange or under any state or federal law, or the consent or approval
of any governmental or regulatory body, or that the disclosure of non-public information or the satisfaction of any other condition is necessary as a condition of, or in connection with, the issuance or purchase of shares thereunder, such option may
not be exercised, in whole or in part, without compliance with such laws. 
  

 RIGHTS AS A SHAREHOLDER. 
  

The holder of an option shall have no rights as a shareholder with respect to any shares covered by the option (including, without limitation, any rights to receive
dividends or non-cash distributions with respect to such shares) until the date of issue of a stock certificate to him or her for such shares. No adjustment shall be made for dividends or other rights for which the record date is prior to the date
such stock certificate is issued. 
  
 ADJUSTMENT PROVISIONS FOR
RECAPITALIZATIONS AND RELATED TRANSACTIONS. 
  
 General. If,
through or as are result of any merger, consolidation, sale of all or substantially all or the assets of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, or other similar transaction,
(i) the outstanding shares of Common Stock are increased, decreased, or exchanged for a different number or kind of shares or other securities of the Company, or (ii) additional shares or new or different shares or other securities of the Company or
other non-cash assets are distributed with respect to such shares of Common Stock or other securities, an appropriate and proportionate adjustment may be made in (x) the maximum number and kind of shares reserved for issuance under the Plan, (y) the
number and kind of shares or other securities subject to any then outstanding options under the Plan, and (z) the price for each share subject to any then outstanding options under the Plan, without changing the aggregate purchase price as to which
such options remain exercisable. Notwithstanding the foregoing, no adjustment shall be made pursuant to this Section 15 if such adjustment would cause the Plan to fail to comply with Section 422 of the Code or with Rule 16b-3. 
  
 Board of Authority to Make Adjustments. Any adjustments under this Section
15 will be made by the Board of Directors, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive. No fractional shares will be issued under the Plan on account of any such
adjustments unless provided in the stock option agreement. 
  
 MERGER,
CONSOLIDATION, ASSET SALE, LIQUIDATION, ETC. 
  
 General. In
the event of a consolidation or merger or sale of all or substantially all of the assets of the Company in which outstanding shares of Common Stock are exchanged for securities, cash or other property of any other corporation or business entity or
in the event of a liquidation of the Company, the Board of Directors of the Company, or the board of directors of any corporation assuming the obligations of the Company, may, in its discretion, take any one or more of the following actions, as to
outstanding options: (i) provide that such options shall be assumed, or equivalent options shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof), provided that any such options substituted for Incentive Stock
Options shall meet the requirements of Section 424(a) of the Code, (ii) upon written notice to the optionees, provide that all unexercised options will terminate immediately prior to the consummation of such transaction unless exercised by the
optionee within a specified period 

  

 
following the date of such notice, (iii) in the event of a merger under the terms of which holders of the Common Stock of the Company will receive upon
consummation thereof a cash payment for each share surrendered in the merger (the “Merger Price”), make or provide for a cash payment to the optionees equal to the difference between (A) the Merger Price times the number of shares of
Common Stock subject to such outstanding options to the extent then exercisable at prices not in excess of the Merger Price) and (B) the aggregate exercise price of all such outstanding options in exchange for the termination of such options, and
(iv) provide that all or any outstanding options shall become exercisable in full immediately prior to such event. 
  
 Substitute Options. The Company may grant options under the Plan in substitution for options held by employees of another corporation who become employees
of the Company, or a subsidiary of the Company, as the result of a merger or consolidation of the employing corporation with the Company or a subsidiary of the Company, or as a result of the acquisition by the Company, or one of its subsidiaries, of
property or stock of the employing corporation. The Company may direct that substitute options be granted on such terms and conditions as the Board of Directors considers appropriate in the circumstances. 
  
 NO SPECIAL EMPLOYMENT RIGHTS. 
  
 Nothing contained in the Plan or in any option shall confer upon any optionee any right with
respect to the continuation of his or her employment by the Company or interfere in any way with the right of the Company at any time to terminate such employment or to increase or decrease the compensation of the optionee. 
  
 OTHER EMPLOYEE BENEFITS. 
  
 Except as to plans which by their terms include such amounts as compensation, the amount of
any compensation deemed to be received by an employee as a result of the exercise of an option or the sale of shares received upon such exercise will not constitute compensation with respect to which any other employee benefits of such employee are
determined, including, without limitation, benefits under any bonus, pension, profit-sharing, life insurance or salary continuation plan, except as otherwise specifically determined by the Board of Directors. 
  
 AMENDMENT OF THE PLAN. 
  
 The Board of Directors may at any time, and from time to time, modify or amend the Plan in any respect, except that if at
any time the approval of the shareholders of the Company is required (i) under Section 162(m) to ensure that any compensation attributable to any option under the Plan is deductible by the Company for Federal income tax purposes and if Section (m)
requires such approval, or (ii) under Section 422 of the Code or any successor provision with respect to Incentive Stock Options, or (iii) under Rule 16b-3, the Board of Directors may not effect such modification or amendment without such approval.

  

 The termination or any modification or amendment of the Plan shall not, without the consent of an
optionee, affect his or her rights under an option previously granted to him or her. With the consent of the optionee affected, the Board of Director may amend outstanding option agreements in a manner not inconsistent with the Plan. The Board of
Directors shall have the right to amend or modify the terms and provisions of the Plan and of any outstanding Incentive Stock Options granted under the Plan to the extent necessary to qualify any or all such options for such favorable federal income
tax treatment (including deferral of taxation upon exercise) as may be afforded incentive stock options under Section 162(m) or Section 422 of the Code and (ii) the terms and provisions the Plan and of any outstanding option to the extent necessary
to ensure the qualification of the Plan under Rule 16b-3. 
  
 WITHHOLDING.

  
 The Company shall have the right to deduct from payments
of any kind otherwise due to the optionee any federal, state, or local taxes of any kind required by law to be withheld with respect to any shares issued upon exercise of options under the Plan. Subject to the prior approval of the Company, which
may be withheld by the Company in its sole discretion, the optionee may elect to satisfy such obligations, in whole or in part, (i) by causing the Company to withhold shares of Common Stock otherwise issuable pursuant to the exercise of an option or
(ii) by delivering to the Company shares of Common Stock already owned by the optionee. The shares so delivered or withheld shall have a fair market value equal to such withholding obligation. The fair market value of the shares used to satisfy such
withholding obligation shall be determined by the Company as of the date that the amount of tax to be withheld is to be determined. An optionee who has made an election pursuant to this Section 20(a) may only satisfy his or her withholding
obligation with shares of Common Stock which are not subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements. 
  
 Notwithstanding the foregoing, in the case of a Reporting Person, no election to use shares for the payment of withholding taxes shall be effective unless
made in compliance with any applicable requirements of Rule 16-3. 
  
 CANCELLATION AND NEW GRANT OF OPTIONS, ETC. 
  
 The Board of
Directors shall have the authority to effect, at any time and from time to time, with the consent of the affected optionees, (i) the cancellation of any or all outstanding options under the Plan and the grant in substitution therefor of new options
under the Plan covering the same or different numbers of shares of Common Stock and having an option exercise price per share which may be lower or higher than the exercise price per share of the cancelled options or (ii) the amendment of the terms
of any and all outstanding options under the Plan to provide an option exercise price per share which his higher or lower than the then-current exercise price per share of such outstanding options. 
  

 EFFECTIVE DATE AND DURATION OF THE PLAN. 
  
 Effective Date. The Plan shall become effective when adopted by the Board of Directors, but no Incentive Stock Option
granted under the Plan shall become exercisable unless and until the Plan shall have been approved by the Company’s shareholders. If such shareholder approval is not obtained within twelve months after the date of the Board’s adoption of
the Plan, no options previously granted under the Plan shall be deemed to be Incentive Stock Options and no Incentive Stock Options granted thereafter. Amendments to the Plan not requiring shareholder approval shall become effective when adopted by
the Board of Directors; amendments requiring shareholder approval (as provided in Section 19) shall become effective when adopted by the Board of Directors, but no Incentive Stock Option granted after the date of such amendment shall become
exercisable (to the extent that such amendment to the Plan was required to enable the Company to grant such Incentive Stock Option to a particular optionee) unless and until such amendment shall have been approved by the Company’s shareholders.
If such shareholder approval is not obtained within twelve months of the Board’s adoption of such amendment, any Incentive Stock Options granted on or after the date of such amendment shall terminate to the extent that such amendment to the
Plan was required to enable the Company to grant such option to a particular optionee. Subject to this limitation, options may be granted under the Plan at any time after the effective date and before the date fixed for termination of the Plan.

  
 Termination. Unless sooner terminated in accordance with
Section 16, the Plan shall terminate, with respect to Incentive Stock Options, upon the earlier of (i) the close of business on the day next preceding the tenth anniversary of the date of its adoption by the Board of Directors, or (ii) the date on
which all shares available for issuance under the Plan shall have been issued pursuant to the exercise or cancellation of options granted under the Plan. Unless sooner terminated in accordance with Section 16, the Plan shall terminate with respect
to options which are not incentive Stock Options on the date specified in (ii) above. If the date of termination is determined under (i) above, then options outstanding on such date shall continue to have force and effect in accordance with the
provisions of the instruments evidencing such options. 
  
 PROVISIONS FOR
FOREIGN PARTICIPANTS. 
  
 The Board of Directors may, without amending the
Plan, modify awards or options granted to participants who are foreign nationals or employed outside the United States to recognize differences in laws, rules, regulations, or customs of such foreign jurisdiction with respect to tax, securities,
currency, employee benefit or other matters. 
  
 Approved by the Board of
Directors January 27, 2004. 
  
 Approved by the Stockholders of the Company on
January 27, 2004.

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