Document:

exv10w28

Exhibit 10.28

CHICO’S FAS, INC.

2002 OMNIBUS STOCK AND INCENTIVE PLAN

PERFORMANCE AWARD AGREEMENT

FOR RESTRICTED STOCK UNITS

Capitalized terms not defined herein have the meaning given such terms in the

Amended Chico’s FAS, Inc. 2002 Omnibus Stock and Incentive Plan.

     This Performance Award Agreement (the “Agreement”) is dated as of                      (the “Grant Date”), and is
entered into between Chico’s FAS, Inc., a Florida corporation (the “Company”), and                      (the
“Employee”).

     WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Committee”)
is authorized to make grants of Performance Awards under the Company’s 2002 Omnibus Stock and
Incentive Plan, as amended (the “Plan”);

     WHEREAS,
on                      the Committee approved this Performance Award grant, pursuant to the Plan, to the
Employee on the Grant Date provided that the Employee continued to be employed as an employee of
the Company on the Grant Date;

     WHEREAS, the Committee determined and established the performance measures and goals that must
be achieved in order for the Employee to earn and vest in the Performance Award;

     WHEREAS, the Committee intends the Performance Award to be “performance-based compensation” as
such term is used in Section 162(m) of the Internal Revenue Code of 1986, as amended;

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises set forth
below, the parties hereto agree as follows:

     1. Grant of Performance-Based Restricted Stock Units. The Company hereby sets forth
the right for the Employee to receive a target of                      Restricted Stock Units (the “Target”) at
the end of the defined Restriction Period set forth in Paragraph 5, with the earn-out opportunity
to receive Restricted Stock Units equal to 0% — 100% of the Target (the “Performance Award”),
subject to the achievement of the Performance Goals set forth in Paragraph 2. Upon the completion
of the Restriction Period and the achievement of the Performance Goals, each earned and vested
Restricted Stock Unit shall entitle the Employee to receive one share of Common Stock of the
Company. This award is subject to the conditions described in this Performance Award Agreement.
The Performance Award is offered pursuant to and to implement in part the Chico’s FAS, Inc. 2002
Omnibus Stock and Incentive Plan (as amended and in effect from time to time, the “Plan”) and is
subject to the provisions of the Plan, which is hereby incorporated herein and is made a part
hereof, as well as the provisions of this Performance Award Agreement. The Employee agrees to be
bound by all of the terms, provisions, conditions and limitations of the Plan and this Performance Award

 

 

Agreement. All capitalized terms have the meanings set forth in the Plan unless otherwise specifically provided in
this Performance Award Agreement. All references to specified paragraphs pertain to paragraphs of
this Performance Award Agreement unless otherwise specifically provided.

     2. Performance Goals. The Employee’s right to receive the Performance Award is
subject to (a) the vesting provisions set forth in Paragraph 5 and (b) the achievement of the
following Performance Goals, with linear interpolation of payout between threshold and maximum:

Performance Award Earnout Schedule

	 	 	 	 	 	 	 	 	 
	 	 	2011 EPS	 	% of Performance
	 	 	Achieved*	 	Award Earned
	Target/Maximum
	 	$	1.00	 	 	 	100	%
	 
	 	$	.99	 	 	 	92.5	%
	 
	 	$	.98	 	 	 	85.0	%
	 
	 	$	.97	 	 	 	77.5	%
	 
	 	$	.96	 	 	 	70.0	%
	 
	 	$	.95	 	 	 	62.5	%
	 
	 	$	.94	 	 	 	55.0	%
	 
	 	$	.93	 	 	 	47.5	%
	 
	 	$	.92	 	 	 	40.0	%
	 
	 	$	.91	 	 	 	32.5	%
	Threshold
	 	$	.90.	 	 	 	25.0	%
	 
	 	< $	.90	 	 	 	0	%

 

			
	*	 	EPS = Earnings Per Diluted Share for FY 2011.

     3. No Transfer of Unvested Restricted Stock Units. During the period that any
Restricted Stock Units underlying the Performance Award are unvested as set forth in Paragraphs 4,
5 and 6, the Employee shall have no rights to or with respect to such Restricted Stock Units, and
such unvested Restricted Stock Units shall not be sold, assigned, transferred, pledged,
hypothecated or otherwise disposed of, other than by will, the laws of descent and distribution or
by qualified domestic relations order. No right or benefit hereunder shall in any manner be liable
for or subject to any debts, contracts, liabilities, or torts of the Employee.

     4. Risk of Forfeiture. Subject to Paragraphs 6, should the Employee’s employment
(defined below) with Company and each subsidiary (as the term “subsidiary” is defined in the Plan)
terminate prior to the end of the Restriction Period set
forth in Paragraph 5, the Employee shall forfeit the right to receive the Performance Award that
would otherwise have vested at the end of the Restriction Period.

 

 

     5. Vesting. Subject to Paragraph 6, if the Performance Goals set forth in Paragraph 2
are achieved, the Employee shall thereafter become 100% vested in the Performance Award earned
pursuant to Paragraph 2, on (two years from grant date), which is the last day of the
Restriction Period.

     6. Termination of Service; Change in Control. Voluntary or involuntary termination of
service as an Employee, retirement, death or disability of the Employee, or occurrence of a Change
in Control, shall affect the Employee’s rights under this Performance Award Agreement as follows:

          a. Voluntary Termination or Termination for Cause. If, other than as specified below,
the Employee voluntarily terminates service as an Employee of the Company or if the Employee’s
position as an employee of the Company is terminated by the Company for cause prior to the last day
of the Restriction Period, then the Employee shall forfeit the right to receive all Restricted
Stock Units of the Performance Award. Cause shall mean any occurrence of the following:

	 	i.	 	Conviction of , or entering a plea of no
contest to, any felony;
	 
	 	ii.	 	Conviction of, or entering a plea of no
contest to, any crime related to your employment by the company, but
specifically excluding traffic offenses;
	 
	 	iii.	 	Your continued willful neglect of, refusal
to perform, or gross negligence concerning, your duties, or engaging
in willful misconduct in the performance of your duties, which has a
material adverse affect on the company
	 
	 	iv.	 	Your willful failure to take actions that
are permitted by law and necessary to implement the policies of the
company as communicated to you;
	 
	 	v.	 	Your material breach of the terms of the
award agreement, or;
	 
	 	vi.	 	Drug or alcohol abuse by you, but only to
the extent that such abuse has an obvious and material adverse affect
on the company or on the performance of your duties and
responsibilities as an employee in your position with the company

          b. Involuntary Termination Without Cause. If the Employee’s position as an employee
of the Company is terminated by the Company without Cause prior to the last day of the Restriction
Period, then Employee shall forfeit the right to
receive all Restricted Stock Units of the Performance Award. The Committee shall retain the
authority to accelerate time-vesting of all or a portion of the Award in its discretion, provided,
however, in such event, the related Performance Goals must still be achieved.

          c. Change in Control. If a Change in Control shall occur following the achievement of
the Performance Goals, but prior to the last day of the Restriction Period, the Performance Award
earned pursuant to Paragraph 2 shall remain subject to vesting provisions contained herein for the
remainder of the Restriction Period. If a

 

 

Change in Control shall occur prior to the achievement
of the Performance Goals, the Performance Award shall be converted into time-vesting Restricted
Stock Units at 100% of the target level and pro-rated. Such converted Restricted Stock Units to
remain subject to the vesting provisions contained herein for the remainder of the Restriction
Period. Such Restricted Stock Units shall immediately become fully vested if either (1) the
successor company does not assume, convert, continue or otherwise replace the Restricted Stock
Units on proportionate and equitable terms or (2) the Employee is terminated without Cause within
twelve (12) months following the Change in Control.

          d. Death or Disability. If the Employee’s position as an employee of the Company is
terminated by death or Disability prior to the last day of the Restriction Period, then the
Performance Award earned pursuant to Paragraph 2 shall immediately become fully vested, payout of
the award shall be based on actual performance results and the earned Restricted Stock Units shall
be converted to common shares at the same time as such awards are converted for continuing
employees. Disability for purposes herein shall mean the Employee’s inability to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or which can be expected to last for a continuous period
of not less than 12 months.

          e. Definition of Employment. For purposes of this Performance Award Agreement,
“employment” means employment by the Company or a subsidiary. In this regard, neither the transfer
of the Employee from employment by the Company to employment by a subsidiary nor the transfer of
the Employee from employment by a subsidiary to employment by the Company nor the transfer of the
Employee from employment by a subsidiary to employment by another subsidiary shall be deemed to be
a termination of employment of the Employee. Moreover, the employment of the Employee shall not be
deemed to have been terminated because of absence from active employment on account of temporary
illness or during authorized vacation or during temporary leaves of absence from active employment
granted by the Company or a subsidiary for reasons of professional advancement, education, health,
or government service, or during military leave for any period if the Employee returns to active
employment within 90 days after the termination of military leave, or during any period required to
be treated as a leave of absence by virtue of any valid law or agreement. The Plan Administrator’s
determination in good faith regarding whether a termination of employment of any type or disability
has occurred shall be conclusive and determinative.

     7. Ownership Rights. The Employee is not entitled to any voting and ownership rights
applicable to the Performance Award, including the right to receive any dividends that may be paid
on Performance Award, prior to becoming vested in the Performance Award. (Information on Chico’s
stock, Annual Reports, and other relevant information may be found under the Investor Relations
Sections of the Chico’s website: Chicos.com)

     8. Reorganization of Company and Subsidiaries. The existence of this Performance
Award Agreement shall not affect in any way the right or power of the

 

 

Company or its stockholders
to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in
the Company’s capital structure or its business, or any merger or consolidation of the Company or
any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the
Performance Award or the rights thereof, or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of its assets or business, or any other corporate act or
proceeding, whether of a similar character or otherwise.

     9. Adjustment of Shares. In the event of stock dividends, spin-offs of assets or
other extraordinary dividends, stock splits, combinations of shares, recapitalizations, mergers,
consolidations, reorganizations, liquidations, issuances of rights or warrants and similar
transactions or events involving the Company (“Recapitalization Events”), then for all purposes
references herein to Common Stock or to Performance Award shall mean and include all securities or
other property (other than cash) that holders of Common Stock of the Company are entitled to
receive in respect of Common Stock by reason of each successive Recapitalization Event, which
securities or other property (other than cash) shall be treated in the same manner and shall be
subject to the same restrictions as the underlying Performance Award.

     10. Certain Restrictions. By accepting the Performance Award, the Employee agrees
that if at the time of delivery of certificates for shares of Performance Award issued hereunder
any sale of such shares is not covered by an effective registration statement filed under the
Securities Act of 1933 (the “Act”), the Employee will acquire the Performance Award for the
Employee’s own account and without a view to resale or distribution in violation of the Act or any
other securities law, and upon any such acquisition the Employee will enter into such written
representations, warranties and agreements as the Company may reasonably request in order to comply
with the Act or any other securities law or with this Performance Award Agreement.

     11. Amendment and Termination. No amendment or termination of this Performance Award
Agreement which would impair the rights of the Employee shall be made by the Board, the Committee
or the Plan Administrator at any time without the written consent of the Employee. No amendment or
termination of the Plan will adversely affect the right, title and interest of the Employee under
this Performance Award Agreement or to Performance Award granted hereunder without the written
consent of the Employee.

     12. No Guarantee of Employment. This Performance Award Agreement shall not confer
upon the Employee any right with respect to continuance of employment or other service with the
Company or any subsidiary, nor shall it interfere in any way with any right the Company or any
subsidiary would otherwise have to terminate such Employee’s employment or other service at any
time.

     13. Withholding of Taxes. The Company shall have the right to (i) make deductions
from the number of shares of Performance Award otherwise deliverable upon satisfaction of the
conditions precedent under this Performance Award Agreement (and

 

 

other amounts payable under this
Performance Award Agreement) in an amount sufficient to satisfy withholding of any federal, state
or local taxes required by law, or (ii) take such other action as may be necessary or appropriate
to satisfy any such tax withholding obligations.

     14. No Guarantee of Tax Consequences. Neither the Company nor any subsidiary nor the
Plan Administrator makes any commitment or guarantee that any federal or state tax treatment will
apply or be available to any person eligible for benefits under this Performance Award Agreement.

     15. Severability. In the event that any provision of this Performance Award Agreement
shall be held illegal, invalid, or unenforceable for any reason, such provision shall be fully
severable, but shall not affect the remaining provisions of this Performance Award Agreement and
this Performance Award Agreement shall be construed and enforced as if the illegal, invalid, or
unenforceable provision had never been included herein.

     16. Governing Law. The Performance Award Agreement shall be construed in accordance
with the laws of the State of Florida to the extent federal law does not supersede and preempt
Florida law.

     17. Miscellaneous Provisions.

          (a) Not a Part of Salary. The grant of an Award under the Plan is not intended to be
a part of the salary of the Employee.

          (b) Conflicts With Any Employment Agreement. If the Employee has an employment
agreement with the Company or any of its subsidiaries which contains different or additional
provisions relating to vesting of Performance Award awards, or otherwise conflicts with the terms
of this Performance Award Agreement, the provisions of the employment agreement shall govern.

          (c) Electronic Delivery and Signatures. The Employee hereby consents and agrees to
electronic delivery of any Plan documents, proxy materials, annual reports and other related
documents including by way of the Investor Relations section of the Company’s website, at
Chicos.com. If the Company establishes procedures for an electronic signature system for delivery
and acceptance of Plan documents (including
documents relating to any programs adopted under the Plan), the Employee hereby consents to such
procedures and agrees that his or her electronic signature is the same as, and shall have the same
force and effect as, his or her manual signature. The Employee consents and agrees that any such
procedures and delivery may be effected by a third party engaged by the Company to provide
administrative services related to the Plan, including any program adopted under the Plan.exv10w8

Exhibit 10.8

 Endwave Corporation

Restricted Stock Unit Grant Notice

(2007 Equity Incentive Plan)

Endwave Corporation (the “Company”), pursuant to its 2007 Equity Incentive Plan (the “Plan”),
hereby awards to Participant a Restricted Stock Unit Award for the number of shares of
the Company’s Common Stock set forth below (the “Award”). The Award is subject to all of the terms
and conditions as set forth herein and in the Plan and the Restricted Stock Unit Agreement, both of
which are attached hereto and incorporated herein in their entirety. Capitalized terms not
otherwise defined herein shall have the meanings set forth in the Plan or the Restricted Stock Unit
Agreement. In the event of any conflict between the terms in the Award and the Plan, the terms of
the Plan shall control.

	 	 	 	 	 
	Participant:
	 	 	 	 
	 

	 	 	 	 
	Date of Grant:
	 	 	 	 
	 

	 	 	 	 
	Vesting Commencement Date:
	 	 	 	 
	 

	 	 	 	 
	Number of Shares Subject to Award:
	 	 	 	 
	 

	 	 	 	 
	Consideration:

	 	Participant’s services
	 	 

	 	 	 
	Vesting Schedule:

	 	50% of the shares subject to the Award shall vest on each of the first two
anniversaries of the Date of Grant of the Award. Notwithstanding the foregoing, vesting shall
terminate upon Participant’s termination of Continuous Service.
	 
	 	 
	Issuance Schedule:

	 	The shares shall be issued in accordance with the issuance schedule set forth in
Section 6 of the Restricted Stock Unit Agreement.

Additional Terms/Acknowledgements: The undersigned Participant acknowledges receipt of, and
understands and agrees to, this Restricted Stock Unit Grant Notice, the Restricted Stock Unit
Agreement and the Plan. Participant further acknowledges that as of the Date of Grant, this
Restricted Stock Unit Grant Notice, the Restricted Stock Unit Agreement and the Plan set forth the
entire understanding between Participant and the Company regarding the Award and supersedes all
prior oral and written agreements on that subject.

	 	 	 	 	 	 	 	 	 
	Endwave Corporation	 	Participant:
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	Signature
	 
	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 
	 	Date:
	 	 
	 

	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

			
	Attachments:	 	Restricted Stock Unit Agreement, 2007 Equity Incentive Plan

1

 

 Endwave Corporation

 2007 Equity Incentive Plan

Restricted Stock Unit Agreement

     Pursuant to the Restricted Stock Unit Grant Notice (“Grant Notice”) and this Restricted
Stock Unit Agreement and in consideration of your services, Endwave Corporation (the “Company”) has
awarded you a Restricted Stock Unit Award (the “Award”) under its 2007 Equity Incentive Plan (the
“Plan”). This Award is granted to you effective as of the Date of Grant set forth in the Grant
Notice for this Award. This Restricted Stock Unit Award Agreement shall be deemed to be agreed to
by the Company and you upon the signing by you of the Restricted Stock Unit Grant Notice to which
it is attached. Defined terms not explicitly defined in this Restricted Stock Unit Agreement shall
have the same meanings given to them in the Plan. In the event of any conflict between the terms
in this Restricted Stock Unit Agreement and the Plan, the terms of the Plan shall control. The
details of your Award, in addition to those set forth in the Grant Notice and the Plan, are as
follows.

     1. Grant of the Award. This Award represents the right to be issued on a future date
the number of shares of the Company’s Common Stock as indicated in the Grant Notice. As of the
Date of Grant, the Company will credit to a bookkeeping account maintained by the Company for your
benefit (the “Account”) the number of shares of Common Stock subject to the Award. This Award was
granted in consideration of your services to the Company. Except as otherwise provided herein, you
will not be required to make any payment to the Company (other than past and future services to the
Company) with respect to your receipt of the Award, the vesting of the shares or the delivery of
the underlying Common Stock. The par value of the shares subject to the Award shall be paid by
your past services to the Company.

     2. Vesting.

          (a) In General. Subject to the limitations contained herein, your Award will vest, if at all,
in accordance with the vesting schedule provided in the Grant Notice, provided that vesting will
cease upon the termination of your Continuous Service. Upon such termination of your Continuous
Service, the shares credited to the Account that were not vested as of the date of such termination
will be forfeited at no cost to the Company and you will have no further right, title or interest
in or to such underlying shares of Common Stock.

     3. Number of Shares.

          (a) The number of shares subject to your Award may be adjusted from time to time for
Capitalization Adjustments, as provided in the Plan.

          (b) Any shares or other property that becomes subject to the Award pursuant to this Section 3,
if any, shall be subject, in a manner determined by the Board, to the same forfeiture restrictions,
restrictions on transferability, and time and manner of delivery as applicable to the other shares
covered by your Award.

1.

 

          (c) Notwithstanding the provisions of this Section 3, no fractional shares or rights for
fractional shares of Common Stock shall be created pursuant to this Section 3. The Board shall, in
its discretion, determine an equivalent benefit for any fractional shares or fractional shares that
might be created by the adjustments referred to in this Section 3.

     4. Securities Law Compliance. You may not be issued any shares under your Award
unless either (i) the shares are registered under the Securities Act or (ii) the Company has
determined that such issuance would be exempt from the registration requirements of the Securities
Act. Your Award also must comply with other applicable laws and regulations governing the Award,
and you will not receive such shares if the Company determines that such receipt would not be in
material compliance with such laws and regulations.

     5. Limitations on Transfer. Your Award is not transferable, except by will or by the
laws of descent and distribution. In addition to any other limitation on transfer created by
applicable securities laws, you agree not to assign, hypothecate, donate, encumber or otherwise
dispose of any interest in any of the shares of Common Stock subject to the Award until the shares
are issued to you in accordance with Section 6 of this Agreement. After the shares have been
issued to you, you are free to assign, hypothecate, donate, encumber or otherwise dispose of any
interest in such shares provided that any such actions are in compliance with the provisions herein
and applicable securities laws. 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 receive any distribution of Common Stock to which
you were entitled at the time of your death pursuant to this Agreement.

     6. Date of Issuance. 

          (a) The Company will deliver to you a number of shares of the Company’s Common Stock equal to
the number of vested shares subject to your Award, including any additional shares received
pursuant to Section 3 above that relate to those vested shares on the applicable vesting date(s).
However, if a scheduled delivery date falls on a date that is not a business day, such delivery
date shall instead fall on the next following business day.

          (b) Notwithstanding the foregoing, in the event that (i) you are subject to the Company’s
policy permitting officers and directors to sell shares only during certain “window” periods, in
effect from time to time or you are otherwise prohibited from selling shares of the Company’s
Common Stock in the public market and any shares covered by your Award are scheduled to be
delivered on a day (the “Original Distribution Date”) that does not occur during an open “window
period” applicable to you, as determined by the Company in accordance with such policy, or does not
occur on a date when you are otherwise permitted to sell shares of the Company’s common stock on
the open market, and (ii) the Company elects not to satisfy its tax withholding obligations by
withholding shares from your distribution, then such shares shall not be delivered on such Original
Distribution Date and shall instead be delivered on the first business day of the next occurring
open “window period” applicable to you pursuant to such policy (regardless of whether you are still
providing Continuous Service at such time) or the next business day when you are not prohibited
from selling shares of the Company’s Common Stock in the open market, but in no event later than
the fifteenth (15th) day of the third calendar month of the calendar year following the calendar
year in which the Original Distribution Date occurs.

2.

 

The form of such delivery (e.g., a stock certificate or electronic entry evidencing such
shares) shall be determined by the Company.

     7. Dividends. You shall receive no benefit or adjustment to your Award with respect
to any cash dividend, stock dividend or other distribution that does not result from a
Capitalization Adjustment as provided in the Plan; provided, however, that this sentence shall not
apply with respect to any shares of Common Stock that are delivered to you in connection with your
Award after such shares have been delivered to you.

     8. Restrictive Legends. The shares issued under your Award shall be endorsed with
appropriate legends determined by the Company.

     9. Award not a Service Contract.

          (a) Your Continuous Service with the Company or an Affiliate is not for any specified term and
may be terminated by you or by the Company or an Affiliate at any time, for any reason, with or
without cause and with or without notice. Nothing in this Restricted Stock Unit Agreement
(including, but not limited to, the vesting of your Award pursuant to the schedule set forth in
Section 2 herein or the issuance of the shares subject to your Award), the Plan or any covenant of
good faith and fair dealing that may be found implicit in this Restricted Stock Unit Agreement or
the Plan shall: (i) confer upon you any right to continue in the employ of, or affiliation with,
the Company or an Affiliate; (ii) constitute any promise or commitment by the Company or an
Affiliate regarding the fact or nature of future positions, future work assignments, future
compensation or any other term or condition of employment or affiliation; (iii) confer any right or
benefit under this Restricted Stock Unit Agreement or the Plan unless such right or benefit has
specifically accrued under the terms of this Agreement or Plan; or (iv) deprive the Company of the
right to terminate you at will and without regard to any future vesting opportunity that you may
have.

          (b) By accepting this Award, you acknowledge and agree that the right to continue vesting in
the Award pursuant to the schedule set forth in Section 2 is earned only by continuing as an
employee, director or consultant at the will of the Company (not through the act of being hired,
being granted this Award or any other award or benefit) and that the Company has the right to
reorganize, sell, spin-out or otherwise restructure one or more of its businesses or Affiliates at
any time or from time to time, as it deems appropriate (a “reorganization”). You further
acknowledge and agree that such a reorganization could result in the termination of your Continuous
Service, or the termination of Affiliate status of your employer and the loss of benefits available
to you under this Restricted Stock Unit Agreement, including but not limited to, the termination of
the right to continue vesting in the Award. You further acknowledge and agree that this Restricted
Stock Unit Agreement, the Plan, the transactions contemplated hereunder and the vesting schedule
set forth herein or any covenant of good faith and fair dealing that may be found implicit in any
of them do not constitute an express or implied promise of continued engagement as an employee or
consultant for the term of this Agreement, for any period, or at all, and shall not interfere in
any way with your right or the Company’s right to terminate your Continuous Service at any time,
with or without cause and with or without notice.

3.

 

     10. Withholding Obligations.

          (a) On or before the time you receive a distribution of the shares subject to your Award, or
at any time thereafter as requested by the Company, you hereby authorize any required withholding
from the Common Stock issuable to you and/or otherwise agree to make adequate provision in cash for
any sums required to satisfy the federal, state, local and foreign tax withholding obligations of
the Company or any Affiliate which arise in connection with your Award (the “Withholding Taxes”).
Additionally, the Company may, in its sole discretion, satisfy all or any portion of the
Withholding Taxes obligation relating to your Award by any of the following means or by a
combination of such means: (i) withholding from any compensation otherwise payable to you by the
Company; (ii) causing you to tender a cash payment; or (iii) withholding shares of Common Stock
from the shares of Common Stock issued or otherwise issuable to you in connection with the Award
with a Fair Market Value (measured as of the date shares of Common Stock are issued to pursuant to
Section 6) equal to the amount of such Withholding Taxes; provided, however, that the number of
such shares of Common Stock so withheld shall not exceed the amount necessary to satisfy the
Company’s required tax withholding obligations using the minimum statutory withholding rates for
federal, state, local and foreign tax purposes, including payroll taxes, that are applicable to
supplemental taxable income.

          (b) Unless the tax withholding obligations of the Company and/or any Affiliate are satisfied,
the Company shall have no obligation to deliver to you any Common Stock.

          (c) In the event the Company’s obligation to withhold arises prior to the delivery to you of
Common Stock or it is determined after the delivery of Common Stock to you that the amount of the
Company’s withholding obligation was greater than the amount withheld by the Company, you agree to
indemnify and hold the Company harmless from any failure by the Company to withhold the proper
amount.

     11. Unsecured Obligation. Your Award is unfunded, and as a holder of a vested Award,
you shall be considered an unsecured creditor of the Company with respect to the Company’s
obligation, if any, to issue shares pursuant to this Agreement. You shall not have voting or any
other rights as a stockholder of the Company with respect to the shares to be issued pursuant to
this Agreement until such shares are issued to you pursuant to Section 6 of this Agreement. Upon
such issuance, you will obtain full voting and other rights as a stockholder of the Company.
Nothing contained in this Agreement, and no action taken pursuant to its provisions, shall create
or be construed to create a trust of any kind or a fiduciary relationship between you and the
Company or any other person.

     12. Other Documents. You hereby acknowledge receipt or the right to receive a
document providing the information required by Rule 428(b)(1) promulgated under the Securities Act,
which includes the Plan prospectus. In addition, you acknowledge receipt of the Company’s policy
permitting officers and directors to sell shares only during certain “window” periods and the
Company’s insider trading policy, in effect from time to time.

4.

 

     13. Notices. Any notices provided for in your Award or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by
the 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. Notwithstanding the foregoing,
the Company may, in its sole discretion, decide to deliver any documents related to participation
in the Plan and this Award by electronic means or to request your consent to participate in the
Plan by electronic means. You hereby consent to receive such documents by electronic delivery and,
if requested, to agree to participate in the Plan through an on-line or electronic system
established and maintained by the Company or another third party designated by the Company.

     14. Miscellaneous.

          (a) The rights and obligations of the Company under your Award shall be transferable to any
one or more persons or entities, and all covenants and agreements hereunder shall inure to the
benefit of, and be enforceable by the Company’s successors and assigns. Your rights and
obligations under your Award may only be assigned with the prior written consent of the Company.

          (b) You agree upon request to execute any further documents or instruments necessary or
desirable in the sole determination of the Company to carry out the purposes or intent of your
Award.

          (c) You acknowledge and agree that you have reviewed your Award in its entirety, have had an
opportunity to obtain the advice of counsel prior to executing and accepting your Award, and fully
understand all provisions of your Award.

          (d) This Agreement shall be subject to all applicable laws, rules, and regulations, and to
such approvals by any governmental agencies or national securities exchanges as may be required.

          (e) All obligations of the Company under the Plan and this Agreement shall be binding on any
successor to the Company, whether the existence of such successor is the result of a direct or
indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business
and/or assets of the Company.

     15. Governing Plan Document. Your Award is subject to all the provisions of the
Plan, the provisions of which are hereby made a part of your Award, and is further subject to all
interpretations, amendments, rules and regulations which may from time to time be promulgated and
adopted pursuant to the Plan. Except as expressly provided herein, in the event of any conflict
between the provisions of your Award and those of the Plan, the provisions of the Plan shall
control.

     16. Severability. If all or any part of this Agreement or the Plan is declared by
any court or governmental authority to be unlawful or invalid, such unlawfulness or invalidity
shall not invalidate any portion of this Agreement or the Plan not declared to be unlawful or
invalid. Any Section of this Agreement (or part of such a Section) so declared to be unlawful or
invalid

5.

 

shall, if possible, be construed in a manner which will give effect to the terms of such
Section or part of a Section to the fullest extent possible while remaining lawful and valid.

     17. Effect on Other Employee Benefit Plans. The value of the Award subject to this
Agreement shall not be included as compensation, earnings, salaries, or other similar terms used
when calculating the Employee’s benefits under any employee benefit plan sponsored by the Company
or any Affiliate, except as such plan otherwise expressly provides. The Company expressly reserves
its rights to amend, modify, or terminate any of the Company’s or any Affiliate’s employee benefit
plans.

     18. Choice of Law. The interpretation, performance and enforcement of this Agreement
will be governed by the law of the state of California without regard to such state’s conflicts of
laws rules.

     19. Amendment. This Agreement may not be modified, amended or terminated except by
an instrument in writing, signed by you and by a duly authorized representative of the Company.
Notwithstanding the foregoing, this Agreement may be amended solely by the Board by a writing which
specifically states that it is amending this Agreement, so long as a copy of such amendment is
delivered to you, and provided that no such amendment adversely affecting your rights hereunder may
be made without your written consent. Without limiting the foregoing, the Board reserves the right
to change, by written notice to you, the provisions of this Agreement in any way it may deem
necessary or advisable to carry out the purpose of the grant as a result of any change in
applicable laws or regulations or any future law, regulation, ruling, or judicial decision,
provided that any such change shall be applicable only to rights relating to that portion of the
Award which is then subject to restrictions as provided herein.

6.

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