Document:

Blueprint

 

Exhibit
10.21

VISUALANT, INCORPORATED

 

AMENDED EMPLOYMENT AGREEMENT

 

This
Amended Employment Agreement (this “Agreement”) is entered into as of
March 22, 2018 (the “Effective Date”), by and between
Visualant, Incorporated, a Nevada corporation (the
“Company”) and
Ronald P. Erickson (“Executive”) (together, the
“Parties” and
each, a “Party”). This Agreement amends and
restates the Employment Agreement between the Parties dated July 1,
2017.

 

1. Duties and Scope of
Employment.

 

(a) Position and Duties. Executive
will serve as the Executive Chairman of the Company (the
“Position”). As
of the Effective Date, Executive will render such services in the
performance of his duties, consistent with the Position, as will be
assigned to him by the Company’s Board of Directors (the
“Board”).

 

(b) Term. Executive shall initially
be employed in the Position for a period of one (1) year, beginning
on the Effective Date and ending on March 21, 2019 (the
“Initial Term”)
(subject to earlier termination as set forth in Section 2 and/or
Section 6 below); provided that the Initial Term shall
automatically be extended for additional one (1) year periods
unless either Party delivers written notice of such Party’s
intention to terminate this Agreement at least ninety (90) days
prior to the end of the Initial Term or renewal term, as the case
may be. The period during which Executive is employed by the
Company under this Agreement is referred to herein as the
“Employment
Term.”

 

(c) Obligations. During the
Employment Term, Executive will devote such time and attention as
is necessary to provide services to or on behalf of the Company
consistent with the Position and in accordance with the provisions
of this Agreement and will use good faith efforts to discharge his
obligations under this Agreement to the best of his ability and in
accordance with each of the Company’s corporate ethics
guidelines, conflict of interests policies and code of conduct as
may be in effect from time to time.

 

2. At-Will Employment. Executive
and the Company agree that Executive’s employment with the
Company constitutes “at-will” employment. Executive and
the Company acknowledge that this employment relationship may be
terminated at any time, upon written notice to the other Party,
with or without Cause (as defined below), at the option either of
the Company or Executive.

 

3. Compensation.

 

(a) Base Salary. As of the
Effective Date, the Company will initially pay Executive an
annualized base salary of $180,000 as compensation for his services
(such annual salary, as is then effective, to be referred to herein
as “Base
Salary”). The Base Salary will be paid periodically in
accordance with the Company’s normal payroll practices and be
subject to the usual required withholdings.

 

(b) Bonus. Executive may be
entitled to bonuses from time to time as determined by the Board of
Directors of the Company or its Compensation Committee in their
sole discretion (the “Bonus”). Bonuses, if any, will be
paid as soon as practicable after they have been determined, but
not later than thirty (30) days after they are determined, provided
that Executive is still employed by the Company at the time of
payment.

 

 

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(c) Equity Awards. Executive shall
be eligible for equity awards under the Company’s 2011 Stock
Incentive Plan (the “Plan”) or outside the Plan and the
agreement(s) by and between Executive and the Company thereunder
(collectively, the “Equity
Documents”). Any such awards shall be at the
discretion of the Company’s Board of Directors and/or
Compensation Committee.

 

4. Executive
Benefits.

 

(a) Generally. Executive will be
eligible to participate in accordance with the terms of all Company
employee benefit plans, policies and arrangements that are
applicable to other executive officers of the Company, as such
plans, policies and arrangements may exist from time to
time.

 

(b) Vacation. Executive will be
entitled to receive paid annual vacation in accordance with Company
policy for other senior executive officers, which shall not be less
than four (4) weeks per calendar year.

 

5. Expenses. The Company will
reimburse Executive for reasonable travel, entertainment and other
expenses incurred by Executive in the furtherance of the
performance of Executive’s duties hereunder (including
business related travel requested by the Company), in accordance
with the Company’s expense reimbursement policy as in effect
from time to time.

 

6. Termination of
Employment.

 

(a) Termination for Cause. The
Company may terminate this Agreement and Executive’s
employment at any time without prior notice for "Cause" (as defined
below) with no severance or other obligation to Executive, other
than (a) payment of the amount of unpaid earned Base Salary accrued
pursuant to Section 3(a), (b) unused vacation accrued to the date
of such termination, (c) any portion of a Bonus that may be owed
pursuant to Section 3(b) and (d) unreimbursed business expenses
required to be reimbursed to Executive in accordance with Section 5
and the Company’s expense reimbursement policy as in effect
from time to time. For purposes of this Agreement, "Cause" shall consist of (a) any act
of dishonesty or fraud by Executive in connection with his duties
which is materially detrimental to the Company, or intended to
result in his substantial personal enrichment; (b) 
Executive's conviction or a plea of nolo contendre to a crime which the
Board reasonably believes has had or will have a materially
detrimental effect on the Company’s business or reputation;
(c)  Executive's material breach of this Agreement if not
cured within thirty (30) days after written notice; (d)
Executive’s grossly negligent or willful misconduct that is
inconsistent with the Company’s then-established practices or
places the Company at material risk of significant liability; or
(e) Executive’s repeated failure to abide by the lawful
written policies and directives of the Board of Directors. A
resignation by Executive at any time after the occurrence of an
event that would constitute Cause for termination by the Company
shall be considered a termination by the Company for
Cause.

 

(b) Termination without Cause.
Subject to the obligations stated in Section 6(e), which shall
survive such termination, the Company may terminate this Agreement
and Executive’s employment, without Cause, at any time for
any reason, or no reason, and with or without notice during the
Employment Term.

 

 

2

 

 

(c) Resignation by Executive for Good
Reason. Executive may terminate his employment and this
Agreement upon thirty (30) days written notice for “Good
Reason” (as defined below) and in such event Executive shall
be entitled to the severance provisions described in Section 6(e),
which shall survive such termination. For purposes of this
Agreement, "Good Reason"
shall consist of (a) a material diminution in Executive’s
compensation, office, title, or duties from the Effective Date of
this Agreement; (b) Executive is required by the Company to
relocate to a distance more than 30 miles from the Company’s
present location in Seattle, Washington; or (c) a Change of
Control; provided that Executive provides the Company with written
notice of his intent to terminate within 180 days following the
Change of Control. For purposes of this Agreement,
“Change of
Control” means any of the following events: (i)
consummation of any merger or consolidation of the Company in which
the Company is not the continuing or surviving corporation, or
pursuant to which shares of the Company’s common stock are
converted into cash, securities, or other property, if following
such merger or consolidation the holders of the Company’s
outstanding voting securities immediately prior to such merger or
consolidation own less than fifty percent (50%) of the outstanding
voting securities of the surviving corporation; (ii) consummation
of any sale, lease, exchange or other transfer, in one transaction
or a series of related transactions of all or substantially all of
the Company’s assets; or (iii) a change in ownership of the
Company’s capital stock as a result of which the owners of
the Company’s outstanding capital stock immediately prior to
the change own less than fifty percent (50%) of the Company’s
outstanding capital stock following such change.

 

(d) Voluntary Termination by Executive
without Good Reason. Executive may
terminate this Agreement without Good Reason by providing thirty
(30) days written notice. In such event, Executive shall be
entitled to pay or pay in lieu of notice, and the other
compensation as would be payable in the event of a termination
without Cause.

 

7. Severance Payments. In the
event Executive’s employment is terminated (a) by the Company
without Cause, or (b) by Executive for Good Reason, subject to the
conditions stated herein, the Company shall: (i) pay Executive
severance pay equal to twelve (12) months of his then-in-effect
Base Salary, which shall be payable in a lump sum within thirty
(30) days following the termination date; (ii) provide Executive
and those of his dependents who are eligible for benefits under the
terms of the Company’s then available health insurance plan
for a period of up to eighteen (18) months after the date of
termination. However, if Executive obtains coverage under another
employer’s health care plan within this eighteen (18) month
period, he agrees to notify Company within five (5) business days
of obtaining alternate coverage, and the Company’s
obligations to continue health insurance coverage will cease.
Notwithstanding the foregoing, the Company’s obligation to
provide the severance benefits hereunder is expressly conditioned
upon Executive’s execution of a release of all claims against
the Company, including, but not limited to those related to his
employment and/or termination (other than obligations owed under
this Section 7 and/or claims related to Executive’s status as
a shareholder).

 

8. Indemnification. Subject to
applicable law, Executive will be provided indemnification to the
maximum extent permitted by the Company’s directors and
officers insurance policies, if any, with such indemnification to
be on terms determined by the Board or any of its committees and
subject to the terms of any separate written indemnification
agreement. Executive has entered into a separate indemnity
agreement with the Company, and will be covered under any
Company’s policy of commercial general liability and
directors and officers liability insurance during Executive’s
employment and after termination of employment in each case to the
same extent as members of the Board.

 

9. Confidential Information.
Executive acknowledges that he has executed and agrees to be bound
by the Confidentiality Agreement between Executive and the Company
dated July 1, 2017 (the “Confidentiality
Agreement”).

 

10. Assignment. This Agreement will
be binding upon and inure to the benefit of (a) the heirs,
executors and legal representatives of Executive upon
Executive’s death, and (b) any successor of the Company. Any
such successor of the Company will be deemed substituted for the
Company under the terms of this Agreement for all purposes. For
this purpose, “successor” means any person, firm,
corporation, or other business entity which at any time, whether by
purchase, merger, or otherwise, directly or indirectly acquires all
or substantially all of the assets or business of the Company. None
of the rights of Executive to receive any form of compensation
payable pursuant to this Agreement may be assigned or transferred
except by will or the laws of descent and distribution. Any other
attempted assignment, transfer, conveyance, or other disposition of
Executive’s right to compensation or other benefits will be
null and void.

 

 

3

 

 

11. Notices. All notices, requests,
demands and other communications called for hereunder will be in
writing and will be deemed given (a) on the date of delivery if
delivered personally; (b) one (1) day after being sent overnight by
a well-established commercial overnight service, or (c) four (4)
days after being mailed by registered or certified mail, return
receipt requested, prepaid and addressed to the Parties or their
successors at the following addresses, or at such other addresses
as the Parties may later designate in writing:

 

If to
the Company:

 

500
Union Street, Suite 810

Seattle, WA
98101

Attention: Chief
Financial Officer

 

If to
Executive:

 

3835
Pleasant Beach Drive NE

Bainbridge Island,
WA 98110

 

12. Severability. If any provision
hereof becomes or is declared by a court of competent jurisdiction
to be illegal, unenforceable, or void, this Agreement will continue
in full force and effect without said provision.

 

13. Dispute
Resolution.

 

(a) The Parties agree
that any and all disputes, claims or controversies arising out of
or relating to this Agreement shall be submitted to JAMS, or its
successor, for mediation in Seattle, Washington, and if the matter
is not resolved through mediation, then it shall be submitted to
JAMS, or its successor, for final and binding arbitration in
Seattle, Washington pursuant to the clause set forth in Section (e)
below.

 

(b) Either Party may
commence mediation by providing to JAMS and the other Party a
written request for mediation, setting forth the subject of the
dispute and the relief requested.

 

(c) The Parties will
cooperate with JAMS and with one another in selecting a mediator
from the JAMS panel of neutrals and in scheduling the mediation
proceedings. The Parties agree that they will participate in the
mediation in good faith and that they will share equally in its
costs.

 

(d) All offers,
promises, conduct and statements, whether oral or written, made in
the course of the mediation by any of the Parties, their agents,
Executives, experts and attorneys, and by the mediator or any JAMS
Executives, are confidential, privileged and inadmissible for any
purpose, including impeachment, in any arbitration or other
proceeding involving the Parties, provided that evidence that is
otherwise admissible or discoverable shall not be rendered
inadmissible or non-discoverable as a result of its use in the
mediation.

 

(e) Either Party may
initiate arbitration with respect to the matters submitted to
mediation by filing a written demand for arbitration at any time
following the initial mediation session or at any time following 45
days from the date of filing the written request for mediation,
whichever occurs first (“Earliest Initiation Date”). The
mediation may continue after the commencement of arbitration if the
Parties so desire.

 

 

4

 

 

(f) At no time prior to
the Earliest Initiation Date shall either Party initiate an
arbitration or litigation related to this Agreement except to
pursue a provisional remedy that is authorized by law or by JAMS
Rules or by agreement of the Parties. However, this limitation is
inapplicable to a Party if the other Party refuses to comply with
the requirements of Section (c) above.

 

14. Integration; Amendment. This
Agreement, together with the Confidentiality Agreement, and the
Equity Documents referenced herein, represents the entire agreement
and understanding between the Parties as to the subject matter
herein and supersedes all prior or contemporaneous agreements
whether written or oral. No waiver, alteration, or modification of
any of the provisions of this Agreement will be binding unless in a
writing and signed by duly authorized representatives of the
Parties hereto.

 

15. Waiver of Breach. The waiver of
a breach of any term or provision of this Agreement, which must be
in writing, will not operate as or be construed to be a waiver of
any other previous or subsequent breach of this
Agreement.

 

16. Headings. All captions and
Section headings used in this Agreement are for convenient
reference only and do not form a part of this
Agreement.

 

17. Tax Withholding. All payments
made pursuant to this Agreement will be subject to withholding of
applicable taxes.

 

18. Governing Law. This Agreement
and any disputes or claims arising hereunder will be construed in
accordance with, governed by and enforced under the laws of the
State of Washington without regard for any rules of conflicts of
law.

 

19. Acknowledgment. Executive
acknowledges that he has had the opportunity to discuss this matter
with and obtain advice from his private attorney, has had
sufficient time to, and has carefully read and fully understands
all the provisions of this Agreement, and is knowingly and
voluntarily entering into this Agreement.

 

20. Counterparts. This Agreement
may be executed in counterparts, and each counterpart will have the
same force and effect as an original and will constitute an
effective, binding agreement on the part of each of the
undersigned.

 

21.
    Board
Approval. This Agreement is
subject to the approval of the board of directors of the
Company.

 

 

 

 

 

(Signature
page follows)

 

 

 

 

 

 

5

 

 

IN
WITNESS WHEREOF, each of the Parties has executed this Agreement,
in the case of the Company by a duly authorized officer, as of the
day and year written below.

 

	

COMPANY:

	
 

	
 

	

 

	
 

	
 

	

Visualant, Incorporated

	
 

	
 

	

 

	
 

	
 

	
 

	
 

	
 

	

/s/ Phillip A. Bosua

	
 

	

Date: April 10, 2018

	

Name: Phillip A. Bosua

	
 

	
 

	

Title: Chief Executive Officer

	
 

	
 

	

 

	
 

	
 

	

 

	
 

	
 

	

EXECUTIVE:

	
 

	
 

	
 

	
 

	
 

	

/s/ Ronald P. Erickson

	
 

	

Date: April 10, 2018

	

Ronald P. Erickson

	
 

	
 

 

 

 

 

 

 

 

 

 

 

 

6Exhibit

Exhibit 4.4
ASPEN TECHNOLOGY, INC.
2018 EMPLOYEE STOCK PURCHASE PLAN
1.    Purpose
This Aspen Technology, Inc. 2018 Employee Stock Purchase Plan is intended to provide employees of the Company and its Participating Subsidiaries with an opportunity to acquire a proprietary interest in the Company through the purchase of shares of Common Stock. The Company intends that this Plan qualify as an “employee stock purchase plan” under Code Section 423 and this Plan shall be interpreted in a manner that is consistent with that intent.
2.    Definitions
“Board” means the Board of Directors of the Company.
“Code” means the U. S. Internal Revenue Code of 1986.
“Committee” means the committee appointed by the Board to administer this Plan from time to time. As of the Effective Date, the Compensation Committee of the Board shall be the Committee.
“Common Stock” means the common stock of the Company, par value $0.10 per share.
“Company” means Aspen Technology, Inc., a Delaware corporation, and any successor or assign.
“Compensation” means base salary, wages, annual and recurring bonuses, and commissions paid to an Eligible Employee by the Company or a Participating Subsidiary as compensation for services to the Company or Participating Subsidiary, before deduction for any salary deferral contributions made by the Eligible Employee to any tax-qualified or nonqualified deferred compensation plan, including overtime, vacation pay, holiday pay, jury duty pay, other cash compensation earned while on an authorized leave of absence, and funeral leave pay, but excluding education or tuition reimbursements, imputed income arising under any group insurance or benefit program, travel expenses, business and relocation expenses, income received in connection with stock options or other equity-based awards, and any other non-cash remuneration.
“Corporate Transaction” means a merger, consolidation, acquisition of property or stock, separation, reorganization, or other corporate event described in Code Section 424.
“Designated Broker” means the financial services firm or other agent designated by the Company to maintain ESPP Share Accounts on behalf of Participants who have purchased shares of Common Stock under this Plan.
“Effective Date” means the date as of which this Plan is adopted by the Board, subject to this Plan obtaining stockholder approval in accordance with Section 19.11.
“Employee” means any person who renders services to the Company or a Participating Subsidiary as an employee pursuant to an employment relationship with such employer. For purposes of this Plan, the employment relationship shall be treated as continuing intact while the individual is on military leave, sick leave, or other leave of absence approved by the Company or a Participating Subsidiary that meets the requirements of Treasury Regulation Section 1.421-1(h)(2). Where the period of leave exceeds three (3) months, or such other period of time specified in Treasury Regulation Section 1.421-1(h)(2), and the individual’s right to reemployment is not guaranteed by statute or contract, the employment relationship shall be deemed to have terminated on the first day immediately after such three (3)-month period, or such other period specified in Treasury Regulation Section 1.421-1(h)(2).
“Eligible Employee” means each Employee; provided, however, that the Company may exclude from participation in this Plan or any Offering any Employee who (i) has been employed by the Company or a Participating Subsidiary for less than two (2) years, (ii) is customarily employed by the Company or a Participating Subsidiary for twenty (20) hours per week or less, (iii) is customarily employed by the Company or a Participating Subsidiary for not more than five (5) months per calendar year, or (iv) is a “highly compensated employee” of the Company or a Participating Subsidiary (within the meaning of Code Section 414(q)). Consistent with the requirements of Code Section 423, the Committee may (A) select a shorter time period than those specified in clauses (i) - (iii), and (B) exclude highly compensated employees with compensation above a specified level or who are subject to Section 16 of the Securities Exchange Act of 1934, in each case to be applied in an identical manner for an Offering.
“Enrollment Form” means an agreement authorized by the Company (which agreement may be in electronic form) pursuant to which an Eligible Employee may elect to enroll in this Plan, to authorize a new level of payroll deductions, or to stop payroll deductions and withdraw from an Offering Period.
“ESPP Share Account” means an account into which Common Stock purchased with accumulated payroll deductions at the end of an Offering Period are held on behalf of a Participant.
“Exchange Act” means the U.S. Securities Exchange Act of 1934.

“Fair Market Value” means, as of any date, the value of the shares of Common Stock as determined in the immediately following sentences. If the shares are listed on any established stock exchange or a national market system, the Fair Market Value shall be the closing price of a share (or if no sales were reported, the closing price on the Trading Day immediately preceding such date) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal. In the absence of an established market for the shares, the Fair Market Value shall be determined in good faith by the Committee and such determination shall be conclusive and binding on all persons.
“Grant Date” means the first Trading Day of each Offering Period as designated by the Committee.
“Offering or Offering Period” means a period of six (6) months beginning January 1 and July 1 of each year; provided, however, that, pursuant to Section 5, the Committee may change the duration of future Offering Periods (subject to a maximum Offering Period of twenty-seven (27) months) and/or the start and end dates of future Offering Periods.
“Participant” means an Eligible Employee who is actively participating in this Plan.
“Participating Subsidiaries” means the Subsidiaries that have been designated as eligible to participate in this Plan, and such other Subsidiaries that may be designated by the Committee from time to time in its sole discretion.
“Plan” means this Aspen Technology, Inc. 2018 Employee Stock Purchase Plan.
“Purchase Date” for an Offering Period means the last Trading Day of the Offering Period, or such other Trading Day(s) during the Offering Period as determined by the Committee.
“Purchase Price” means an amount equal to the lesser of (i) eighty-five percent (85%) (or such greater percentage as designated by the Committee) of the Fair Market Value of a share of Common Stock on the Grant Date and (ii) eighty-five percent (85%) (or such greater percentage as designated by the Committee) of the Fair Market Value of a share of Common Stock on the Purchase Date, provided that the Purchase Price per share of Common Stock will in no event be less than the par value of the Common Stock.
“Securities Act” means the U.S. Securities Act of 1933.
“Subsidiary” means any corporation, domestic or foreign, of which not less than fifty percent (50%) of the combined voting power is held by the Company or a Subsidiary, whether or not such corporation exists now or is hereafter organized or acquired by the Company or a Subsidiary. In all cases, the determination of whether an entity is a Subsidiary shall be made in accordance with Code Section 424(f).
“Trading Day” means any day on which the established stock exchange or national market system upon which the Common Stock is listed is open for trading or, if the Common Stock is not listed on an established stock exchange or national market system, a business day, as determined by the Committee in good faith.
3.    Administration
3.1    General. This Plan shall be administered by the Committee, which shall have the authority to construe and interpret this Plan, prescribe, amend, and rescind rules relating to this Plan’s administration, and take any other actions necessary or desirable for the administration of this Plan, including adopting sub-plans applicable to particular Participating Subsidiaries or locations, which sub-plans may be designed to be outside the scope of Code Section 423. The Committee may correct any defect or supply any omission or reconcile any inconsistency or ambiguity in this Plan. All decisions of the Committee in connection with the administration of this Plan shall be in the Committee’s sole discretion, and such decisions shall be final and binding on all persons. All expenses of administering this Plan shall be borne by the Company. The Board may take any action under this Plan that would otherwise be the responsibility of the Committee.
3.2    Delegation. To the extent necessary or appropriate, the Committee may delegate any of its duties or responsibilities under the Plan as they pertain to a Participating Subsidiary to such Participating Subsidiary. The Committee (or any Participating Subsidiary with the consent of the Committee) may appoint or engage any person or persons as a third party administrator to perform ministerial functions pertaining to the issuance, accounting, recordkeeping, forfeiture, exercise, communication, transfer, or any other functions or activities necessary or appropriate to administer and operate this Plan.
4.    Eligibility
4.1    General. Unless otherwise determined by the Committee in a manner that is consistent with Code Section 423, any individual who is an Eligible Employee as of the first day of the enrollment period designated by the Committee for a particular Offering Period shall be eligible to participate in such Offering Period, subject to the requirements of Code Section 423.
4.2    Eligibility Restrictions. Notwithstanding any provision of this Plan to the contrary, no Eligible Employee shall be granted an option under this Plan if (i) immediately after the grant of the option, such Eligible Employee (or any other person whose stock would be attributed to such Eligible Employee pursuant to Code Section 424(d)) would own capital stock of the Company or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Subsidiary or (ii) such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Code Section 423) of the Company and its Subsidiaries to accrue at a rate that exceeds twenty-five thousand dollars ($25,000) of the Fair Market Value of such stock (determined at the time the option is granted) for each calendar year in which such option is outstanding at any time.

5.    Offering Periods
This Plan shall be implemented by a series of Offering Periods, each of which shall be six (6) months in duration, with new Offering Periods commencing on or about January 1 and July 1 of each year (or such other times as determined by the Committee). The Committee shall have the authority to change the duration, frequency, start date, and end date of Offering Periods.
6.    Participation
6.1    Enrollment; Payroll Deductions. An Eligible Employee may elect to participate in this Plan by properly completing an Enrollment Form, which may be electronic, and submitting it to the Company, in accordance with the enrollment procedures established by the Company. Participation in this Plan is entirely voluntary. By submitting an Enrollment Form, the Eligible Employee authorizes payroll deductions from his or her paycheck in an amount equal to at least one percent (1%), but not more than ten percent (10%) (or such other maximum percentage as the Committee may establish from time to time before an Offering Period begins) of his or her Compensation on each pay day occurring during an Offering Period, provided that a Participant may not have more than $10,000 in payroll deductions withheld during any one calendar year (or such other amount as the Committee may determine before the beginning of the calendar year). Payroll deductions shall commence on the first payroll date after the Grant Date and end on the last payroll date on or before the Purchase Date. The Company shall maintain records of all payroll deductions but shall have no obligation to pay interest on payroll deductions or to hold such amounts in a trust or in any segregated account. Unless expressly permitted by the Committee, a Participant may not make any separate contributions or payments to this Plan.
6.2    Election Changes. During an Offering Period, a Participant may not change his or her rate of payroll deductions applicable to such Offering Period unless the Committee determines otherwise. A Participant may decrease or increase his or her rate of payroll deductions for future Offering Periods by submitting a new Enrollment Form authorizing the new rate of payroll deductions at least fifteen (15) days before the start of the next Offering Period.
6.3    Automatic Re-enrollment. Enrollment and the deduction rate selected in the Enrollment Form shall remain in effect for subsequent Offering Periods unless the Participant (i) submits a new Enrollment Form authorizing a new level of payroll deductions in accordance with Section 6.2, (ii) withdraws from this Plan in accordance with Section 10, or (iii) terminates employment or otherwise becomes ineligible to participate in this Plan.
7.    Grant of Option
On each Grant Date, each Participant in the applicable Offering Period shall be granted an option to purchase, on the Purchase Date, a number of shares of Common Stock determined by dividing the Participant’s accumulated payroll deductions by the applicable Purchase Price; provided, however, that in no event shall any Participant purchase more than one thousand (1,000) shares of Common Stock during an Offering Period (subject to adjustment in accordance with Section 18 and the limitations set forth in Section 4.2 and 13).
8.    Exercise of Option/Purchase of Shares
A Participant’s option to purchase shares of Common Stock shall be exercised automatically on the Purchase Date of each Offering Period. The Participant’s accumulated payroll deductions shall be used to purchase the maximum number of whole shares that can be purchased with the amounts in the Participant’s notional account, subject to the limitations set forth in this Plan. Unused payroll deductions remaining in a Participant’s notional account at the end of an Offering Period, by reason of the inability to purchase a fractional share, shall be carried forward to the next Offering Period, subject to earlier withdrawal by the Participant in accordance with Section 10 or termination of employment in accordance with Section 11. Any accumulated payroll deductions that remain in a Participant’s notional account after applying the limitations of Section 4.2 and Section 7 shall be returned to the Participant as soon as administratively practicable.
9.    Transfer of Shares
As soon as reasonably practicable after each Purchase Date, the Company shall arrange for the delivery to each Participant of the shares of Common Stock purchased upon exercise of his or her option. The Committee may permit or require that the shares be deposited directly into an ESPP Share Account established in the name of the Participant with a Designated Broker. A Participant may not sell or otherwise dispose of shares deposited in his or her ESPP Share Account earlier than twelve (12) months following the applicable Purchase Date (or such shorter periods as the Committee may establish). In addition, in the absence of a permitted disposition and if the shares are held with a Designated Broker, the shares must be held in the ESPP Share Account with the Designated Broker until eighteen (18) months after the Purchase Date (or such other period as established by the Committee at the beginning of the Offering Period for which the shares were purchased).
10.    Withdrawal
10.1    Withdrawal Procedure. A Participant may withdraw from an Offering by submitting to the Company a revised Enrollment Form indicating his or her election to withdraw at least fifteen (15) days before the Purchase Date. The accumulated payroll deductions held on behalf of a Participant in his or her notional account (that have not been used to purchase shares of Common Stock) shall be paid to the Participant promptly after receipt of the Participant’s Enrollment Form indicating his or her election to withdraw and the Participant’s option shall be automatically terminated. If a Participant withdraws from an Offering Period, no payroll deductions shall be made during any succeeding Offering Period, unless the Participant re-enrolls in accordance with Section 6.1.

10.2    Effect on Succeeding Offering Periods. A Participant’s election to withdraw from an Offering Period shall not have any effect upon his or her eligibility to participate in succeeding Offering Periods that commence after the completion of the Offering Period from which the Participant withdraws.
11.    Termination of Employment; Change in Employment Status
Upon termination of a Participant’s employment from the Company and the Participating Subsidiaries for any reason or at any time, or a change in the Participant’s employment status after which the Participant is no longer an Eligible Employee, the Participant shall be deemed to have withdrawn from this Plan and the payroll deductions in the Participant’s notional account (that have not been used to purchase shares of Common Stock) shall be returned to the Participant, or in the case of the Participant’s death, to the person(s) entitled to such amounts under Section 17, and the Participant’s option shall be automatically terminated.
12.    Interest
No interest shall accrue on or be payable with respect to the payroll deductions of a Participant in this Plan.
13.    Shares Reserved for Plan
13.1    Number of Shares. A total of two hundred fifty thousand (250,000) shares of Common Stock have been reserved as authorized for the grant of options under this Plan. The shares of Common Stock may be newly issued shares, treasury shares, or shares acquired on the open market. If an option under this Plan expires or is terminated unexercised for any reason, the shares as to which such option so expired or terminated again may be made subject to an option under this Plan.
13.2    Oversubscribed Offerings. The number of shares of Common Stock that a Participant may purchase in an Offering under this Plan may be reduced if the Offering is oversubscribed. No option granted under this Plan shall permit a Participant to purchase shares of Common Stock that, if added together with the total number of shares of Common Stock purchased by all other Participants in such Offering, would exceed the total number of shares of Common Stock remaining available under this Plan. If, on a particular Purchase Date, the number of shares of Common Stock with respect to which options are to be exercised exceeds the number of shares of Common Stock then available under this Plan, the Company shall make a pro rata allocation of the shares of Common Stock remaining available for purchase in as uniform a manner as practicable and as the Committee determines to be equitable.
14.    Transferability
No payroll deductions credited to a Participant, nor any rights with respect to the exercise of an option or any rights to receive Common Stock hereunder, may be assigned, transferred, pledged, or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 17) by the Participant. Any attempt to assign, transfer, pledge, or otherwise dispose of such rights or amounts shall be without effect.
15.    Application of Funds
All payroll deductions received or held by the Company under this Plan may be used by the Company for any corporate purpose to the extent permitted by applicable law, and the Company shall not be required to segregate such payroll deductions or contributions.
16.    Statements
Participants shall be provided with statements at least annually that shall set forth the contributions made by the Participant to this Plan, the Purchase Price of any shares of Common Stock purchased with accumulated funds, the number of shares of Common Stock purchased, and any payroll deduction amounts remaining in the Participant’s notional account.
17.    Designation of Beneficiary
A Participant may file, on forms supplied by the Company, a written designation of beneficiary who is to receive any shares of Common Stock and cash in respect of any fractional shares of Common Stock, if any, from the Participant’s ESPP Share Account under this Plan in the event of such Participant’s death. In addition, a Participant may file, on forms supplied by the Committee, a written designation of beneficiary who is to receive any cash withheld through payroll deductions and credited to the Participant’s notional account in the event of the Participant’s death before the Purchase Date of an Offering Period.
		
	18.
	Adjustments for Changes in Capitalization; Dissolution or Liquidation; Corporate Transactions

18.1    Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Common Stock, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the Company’s structure affecting the Common Stock occurs, then in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan, the Committee shall, in such manner as it deems equitable, adjust the number of shares and class of Common Stock that may be delivered under this Plan, the Purchase Price per share, and the number of shares of Common Stock covered by each outstanding option under this Plan, and the numerical limits of Section 7 and Section 13.

18.2    Dissolution or Liquidation. Unless otherwise determined by the Committee, in the event of a proposed dissolution or liquidation of the Company, any Offering Period then in progress shall be shortened by setting a new Purchase Date and the Offering Period shall end immediately before the proposed dissolution or liquidation. The new Purchase Date shall be before the date of the Company’s proposed dissolution or liquidation. Before the new Purchase Date, the Committee shall provide each Participant with written notice, which may be electronic, of the new Purchase Date and that the Participant’s option shall be exercised automatically on such date, unless before such time, the Participant has withdrawn from the Offering in accordance with Section 10.
18.3    Corporate Transactions. In the event of a Corporate Transaction, the then-current Offering Period shall be shortened by setting a new Purchase Date on which the Offering Period shall end. The new Purchase Date shall occur before the date of the Corporate Transaction. Before the new Purchase Date, the Committee shall provide each Participant with written notice, which may be electronic, of the new Purchase Date and that the Participant’s option shall be exercised automatically on such date, unless before such time, the Participant has withdrawn from the Offering in accordance with Section 10.
19.    General Provisions
19.1    Equal Rights and Privileges. Notwithstanding any provision of this Plan to the contrary and in accordance with Code Section 423, all Eligible Employees who are granted options under this Plan for an Offering shall have the same rights and privileges with respect to that Offering.
19.2    No Right to Continued Service. Neither this Plan nor any compensation paid hereunder shall confer on any Participant the right to continue as an Employee or in any other capacity.
19.3    Rights as Stockholder. A Participant shall become a stockholder with respect to the shares of Common Stock that are purchased pursuant to options granted under this Plan when the shares are transferred to the Participant’s ESPP Share Account. A Participant shall have no rights as a stockholder with respect to shares of Common Stock for which an election to participate in an Offering Period has been made until such Participant becomes a stockholder as provided above.
19.4    Successors and Assigns. This Plan shall be binding on the Company and its successors and assigns.
19.5    Entire Plan. This Plan constitutes the entire plan with respect to the subject matter hereof and supersedes all prior plans with respect to the subject matter hereof.
19.6    Compliance with Law. The obligations of the Company with respect to payments under this Plan are subject to compliance with all applicable laws and regulations. Common Stock shall not be issued with respect to an option granted under this Plan unless the exercise of such option and the issuance and delivery of the shares of Common Stock pursuant thereto shall comply with all applicable provisions of law, including the Securities Act, the Exchange Act, and the requirements of any stock exchange upon which the shares may then be listed.
19.7    Notice of Disqualifying Dispositions. Each Participant shall give the Company prompt written notice of any disposition or other transfer of shares of Common Stock acquired pursuant to the exercise of an option acquired under this Plan, if such disposition or transfer is made within two (2) years after the applicable Grant Date or within one (1) year after the applicable Purchase Date.
19.8    Term of Plan. This Plan shall become effective on the Effective Date and, unless terminated earlier pursuant to Section 19.9, shall have a term of ten (10) years.
19.9    Amendment or Termination. The Committee may, in its sole discretion, amend, suspend, or terminate this Plan at any time and for any reason. If this Plan is terminated, the Committee may elect to terminate all outstanding Offering Periods either immediately or once shares of Common Stock have been purchased on the next Purchase Date (which may, in the discretion of the Committee, be accelerated) or permit Offering Periods to expire in accordance with their terms (and subject to any adjustment in accordance with Section 18). If any Offering Period is terminated before its scheduled expiration, all amounts that have not been used to purchase shares of Common Stock shall be returned to Participants (without interest, except as otherwise required by law) as soon as administratively practicable.
19.10    Applicable Law. The laws of the State of Delaware shall govern all questions concerning the construction, validity, and interpretation of this Plan, without regard to such state’s conflict of law rules.
19.11    Stockholder Approval. This Plan shall be subject to approval by the stockholders of the Company within twelve (12) months before or after the date this Plan is adopted by the Board.
19.12    Code Section 423. This Plan is intended to qualify as an “employee stock purchase plan” under Code Section 423. Any provision of this Plan that is inconsistent with Code Section 423 shall be reformed to comply with Code Section 423.
19.13    Withholding. To the extent required by applicable Federal, state, or local law, a Participant must make arrangements satisfactory to the Company for the payment of any withholding or similar tax obligations that arise in connection with this Plan.
19.14    Severability. If any provision of this Plan shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and this Plan shall be construed as if such invalid or unenforceable provision were omitted.

19.15    Plan Construction. In this Plan, unless otherwise stated, the following uses apply: (i) references to a statute or law shall refer to the statute or law and any amendments and any successor statutes or laws, and to all regulations promulgated under or implementing the statute or law, as amended, or its successors, as in effect at the relevant time; (ii) in computing periods from a specified date to a later specified date, the words “from” and “commencing on” (and the like) mean “from and including,” and the words “to,” “until” and “ending on” (and the like) mean “to and including”; (iii) indications of time of day shall be based upon the time applicable to the location of the principal headquarters of the Company; (iv) the words “include,” “includes” and “including” mean “include, without limitation,” “includes, without limitation” and “including, without limitation,” respectively; (v) all references to articles and sections are to articles and sections in this Plan; (vi) all words used shall be construed to be of such gender or number as the circumstances and context require; (vii) the captions and headings of articles and sections have been inserted solely for convenience of reference and shall not be considered a part of this Plan, nor shall any of them affect the meaning or interpretation of this Plan or any of its provisions; (viii) any reference to an agreement, plan, policy, form, document, or set of documents, and the rights and obligations of the parties under any such agreement, plan, policy, form, document, or set of documents, shall mean such agreement, plan, policy, form, document, or set of documents as amended from time to time, and any and all modifications, extensions, renewals, substitutions, or replacements thereof; and (ix) all accounting terms not specifically defined shall be construed in accordance with GAAP.
As adopted by the Board on July 26, 2018.
As approved by the stockholders of the Company on December 7, 2018.

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