Document:

extr-ex102_341.htm

Exhibit 10.2

 

 

 

SUBLEASE AGREEMENT

 

 

THIS SUBLEASE AGREEMENT (this "Sublease") is entered into this 3 day of February, 2017 by and between EXTREME NETWORKS, INC., a Delaware corporation ("Sublandlord"), and YANGTZE MEMORY TECHNOLOGIES, INC., a California corporation ("Subtenant").

 

Recitals

 

A. W3 RIDGE RIO ROBLES PROPERTY LLC, a California limited liability company ("Landlord"), and Sublandlord entered into that certain Office Space Lease Agreement dated December 31,2012 (the "Master Lease"), respecting those premises consisting of approximately 57,586 rentable square feet of space (the "Premises") comprising the entirety of the building located at 145 Rio Robles, San Jose, California (the "Building"). The Premises is more particularly described in the Master Lease and depicted on Exhibit "A" attached hereto.  A copy of the Master Lease is attached to this Sublease as Exhibit "E".

 

B. Sublandlord desires to sublet to Subtenant, and Subtenant desires to sublet from Sublandlord, the Premises (the "Sublease Premises") on the terms and conditions set forth in this Sublease.

 

NOW, THEREFORE, in consideration of the mutual covenants contained in this Sublease and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

 

Agreement

 

I. Sublease.  Sublandlord hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord, the Sublease Premises on the terms and conditions hereinafter set forth.  In addition, Subtenant shall have the right to use the existing furniture, fixtures and equipment located within the Sublease Premises and listed on Exhibit "B" attached hereto (the "FF&E") and Landlord's Furniture (as defined in Section 22(b) below).  The parties hereby agree that FF&E shall not include (a) Landlord's Furniture or (b) any equipment within the existing gym located in the Building.  Sublandlord has a shared use agreement with SunPower to use the existing gym located in the Building and shall terminate such shared use agreement with SunPower prior to the Commencement  Date (as defined in Section 2(a) below).

 

2. Term.

 

(a) Conditioned upon receipt of the Master Landlord Consent (as defined in Section 15 below), the term of this Sublease shall commence on February 28, 2017 (the "Commencement Date")  and shall expire on June 30, 2023 (the "Sublease Term"), unless sooner terminated under the provisions of this Sublease or unless the Master Lease is sooner terminated.  Promptly after the Commencement Date is ascertained, Sublandlord and Subtenant shall execute the certificate attached to this Sublease as Exhibit "D".  Failure to execute said certificate shall not affect the commencement or expiration of the Sublease Term.

 

 

 

 

 

 

 

(b)Notwithstanding the Commencement Date set forth in Section 2(a) above, if for any reason Sublandlord fails to deliver possession of the Sublease Premises to Subtenant

on or before the Commencement Date, Sublandlord shall not be liable to Subtenant therefore, nor shall such failure affect the validity of this Sublease or the obligations of Subtenant hereunder, except as set forth below. In the event of any delay in delivery of possession, Subtenant shall not be obligated to pay rent or to perform any of its other obligations under this Sublease, except for the payment of the Security Deposit pursuant to Section 6 below, until possession of the

Sublease Premises is delivered to Subtenant; provided, however, if Sublandlord fails to deliver

possession of the Sublease Premises to Subtenant for any reason on or before April 30, 2017, then Subtenant shall have the option to terminate this Sublease and in such event, Sublandlord shall refund the Security Deposit and all prepaid rental amounts.

 

(c) Commencing on February 1 , 2017 until the Commencement Date (the "Early  Access Period"),  Subtenant shall have access to the Sublease Premises for the purpose of the installation of furniture, fixtures and equipment; provided, however, that during such Early Access Period all of the terms and conditions of this Sublease shall apply except that Subtenant shall not be obligated to pay Monthly Base Rent or Additional Rent until the occurrence of the Commencement Date. Such early access shall be at Subtenant's sole risk and conditioned upon full execution of this Sublease and delivery to Sublandlord of payment of the Monthly Base

Rent, Additional Rent and Security Deposit as required herein and insurance certificates evidencing that Subtenant has obtained the insurance required pursuant to this Sublease. Subtenant shall not conduct its business in the Sublease Premises at any time during such Early Access Period. In addition to the foregoing, Sublandlord shall have the right to impose such reasonable additional conditions on Subtenant's early entry as Sublandlord shall deem appropriate.

 

3. Monthly Base Rent.

 

(a)       Commencing on the Commencement Date and continuing throughout the Sublease Term, Subtenant shall pay to Sublandlord, without prior demand therefore, in advance on the first day of each calendar month, as monthly rent ("Monthly Base Rent") the following:

 

			
	
Months
	
Monthly Base Rent
	
 

	
1-12*
	
$109,413.40
	
 

	
13-24
	
$112,695.80

	
25-36
	
$116,076.68
	
 

	
37-48
	
$119,558.98

	
49-60
	
$123,145.75

	
61-72
	
$126,840.12

	
73-78
	
$130,645.32

 

 

 

 

*Provided Subtenant is not in monetary or material non-monetary default beyond the expiration of any applicable notice and cure period, Monthly Base Rent for the first three (3) months of the Sublease Term shall be abated.

 

(b) Monthly Base Rent shall be prorated for any partial month.

 

4. Additional Rent; Service Contracts; Utilities.

 

(a) Subtenant shall pay to Sublandlord during the Sublease Term and on or prior to the date such sums are due under the Master Lease, Subtenant's Pro Rata Share (as defined below in Section 9(a)) of all sums of additional rent and expenses ("Additional Rent") payable under the Master Lease.  Sublandlord and Subtenant agree that this Sublease is intended to pass through to Subtenant all financial obligations imposed on Sublandlord pursuant to the Master Lease relating to the Sublease Premises, except for the Monthly Base Rent (as defined in the Master Lease) that Sublandlord  pays to Landlord for the Sublease Premises.  Any ambiguity in the terms of this Sublease shall be construed in accordance with such intention.  If Sublandlord shall receive any refund for Additional Rent or sums paid by Sublandlord under the Master Lease, Subtenant shall be entitled to the return of any refund if and to the extent such

refund was for payments made by Subtenant to Sublandlord under this Sublease.  For example, if Subtenant pays Operating Expense Rental (as this term is defined in the Master Lease) to Sublandlord  under this Sublease, and Sublandlord pays Operating Expense Rental to the Master Landlord, and the Master Landlord refunds a portion of such Operating Expense Rental to Sublandlord, Sublandlord  shall refund the same to Tenant if and to the extent such refund relates to periods covered by this Sublease and relate in proportion to payments made by Subtenant. Further, Sublandlord covenants and agrees that it will, upon notice from Subtenant, exercise its audit rights under Section 2.4.5 of the Master Lease upon Subtenant's demand if Subtenant

agrees to pay all costs and expenses of Sublandlord.

 

(b) Subtenant, at Subtenant's sole cost and expense, shall contract directly with third party service providers for the provision of janitorial services, garbage and utilities at the Sublease Premises (collectively, "Utility Services"). Sublandlord agrees to cooperate with Subtenant as necessary to transfer existing garbage and utility service accounts to Subtenant.

 

(c) For the first six (6) months of the Sublease Term, Sublandlord shall, at its sole cost and expense, continue to pay and maintain the existing Service Contracts (as defined in Section 3.1 of the Master Lease) required by Section 3.1 of the Master Lease for the Sublease Premises as well as pay the reasonable costs to repair or replace the equipment  covered by such Service Contracts as may be required during such six (6) month period after the Commencement Date, except with respect to any maintenance,  repair or replacement which is required as a result of damage directly caused by Subtenant, which Subtenant shall reimburse Sublandlord  for the entire cost of such repairs or replacement.   On the first day of the seventh (7th) month of the Sublease Term, Subtenant shall directly enter into and maintain Service Contracts (as defined in

 

 

 

 

 

 

 

Section 3.1 of the Master Lease) as required by Section 3.I of the Master Lease for the Sublease Premises and shall be responsible for paying all such repair or replacement costs as may be required under such Service Contracts.

 

5.Place of Payment of Rent. All Monthly Base Rent, Additional Rent and all other amounts payable to Sublandlord under this Sublease shall be paid to Sublandlord when due, without prior notice or demand and without deduction or offset, in lawful money of the United States of America in accordance with separate wire instructions that Sublandlord shall provide to Subtenant in writing.

 

6. Security Deposit and Prepaid Rent.

 

(a)Upon the execution of this Sublease, Subtenant shall deposit with

Sublandlord a cash security deposit of Four Hundred Eighty Two Thousand Eighty Five and

57/100 Dollars ($482,085.57), (the "Security Deposit") for the full and faithful performance of

Subtenant's obligations under this Sublease. If Subtenant fails to pay any Monthly Base Rent or Additional Rent, or otherwise defaults with respect to any of its obligations under this Sublease, Sublandlord may (but shall not be obligated to), and without prejudice to any other remedy to Sublandlord, use, apply or retain all or any portion of the Security Deposit for the payment of any Monthly Base Rent or Additional Rent in default or for the payment of any other sum to which Sublandlord may become obligated by reason of Subtenant's default, or to compensate Sublandlord for any loss or damage or Sublandlord may suffer thereby, including, without limitation, prospective damages and damages recoverable pursuant to California Civil Code Section 1951.2.  Subtenant waives the provisions of California Civil Code Section 1950.7, and

all other provisions of law now in force or that become in force after the date of execution of this Sublease, that provide that Sublandlord may claim from the Security Deposit only those sums reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Subtenant, or to clean the Sublease Premises.  If Sublandlord uses or applies all or any portion of the Security Deposit as provided above, Subtenant shall, within ten (10) days after demand therefore, deposit cash with Sublandlord in an amount sufficient to restore the Security Deposit

to the full amount thereof, and Subtenant's failure to do so shall, at Sublandlord's option, be an

event of default under this Sublease. If the Subtenant performs all of Subtenant's obligations heretmder, the Security Deposit, or so much thereof that has not theretofore been applied by Sublandlord, shall be returned to Subtenant within thirty (30) days following the expiration of

the Sublease Term and after Subtenant has vacated the Sublease Premises.  Sublandlord shall not be deemed to hold the Security Deposit in trust nor be required to keep the Security Deposit separate from its general funds and Subtenant shall not be entitled to any interest on the Security Deposit.

 

(b) Upon execution of this Sublease, Subtenant shall make a payment to

Sublandlord in the amount of One Hundred Thirty Nine Thousand Four Hundred Sixty Three

and 27/100 Dollars ($139,463.27) as prepayment of rent for credit against the first installment of

Monthly Base Rent and Additional Rent due hereunder.

 

7.Use.  The Sublease Premises shall be used and occupied only for those purposes set forth in the Master Lease, and for no other purpose.

 

 

 

 

 

 

 

8. Incorporation of Master Lease Terms.

 

(a) Except as expressly set forth below in Section 8(b) below, the Master Lease is incorporated herein in its entirety by this reference.  For the purpose of this Sublease, all references in the Master Lease to "Landlord" shall be deemed to mean Sublandlord, all

references to "Tenant" shall be deemed to mean Subtenant and all references to "Lease" shall mean this Sublease, and all references to the "Leased Premises" shall mean Sublease Premises. In the event of a conflict between the provisions of this Sublease and the Master Lease Agreement, as between Sublandlord  and Subtenant, the provisions of this Sublease shall control.

Notwithstanding the foregoing incorporation of the terms and conditions of the Master Lease, Sublandlord  shall not be responsible for the performance of any obligations to be performed by Landlord  under the Master Lease, and Subtenant agrees to look solely to Landlord for the performance  of such obligations.  Sublandlord shall not be liable to Subtenant for any failure by Landlord to perform its obligations under the Master Lease, nor shall such failure by Landlord excuse performance  by Subtenant of its obligations hereunder.

 

(b) Sublandlord and Subtenant agree that as between Sublandlord  and Subtenant the following terms of the Master Lease shall not be incorporated into this Sublease: Sections 1.1, 1.2.3, 1.3, 1.4, 1.6, 2.1.1, 2.4.5, 2.5, 3.1, 7.5, 9.13, 9.14, Exhibit B, Exhibit C, and Exhibit E-1.

 

9. Condition and Acceptance of the Sublease Premises.

 

(a) For purposes of this Sublease, "Subtenant's Pro Rata Share" shall mean one hundred percent (I 00%).

 

(b) By execution of this Sublease, Subtenant accepts the Sublease Premises in its "AS IS" condition, and Sublandlord makes no representations  or warranties  to Subtenant with respect to any matter relating to the zoning, legal compliance or physical condition of the Sublease Premises.   Sublandlord shall have no obligation to perform any improvements, alterations or repairs to the Sublease Premises prior to delivery thereof to Subtenant. Notwithstanding the foregoing, Sublandlord shall deliver the Premises, roof, HVAC, plumbing, electrical and related mechanical systems in good working order and condition upon the Commencement Date.

 

10. Alterations.

 

(a) Subtenant shall not make any alteration, addition, improvement or change to the Sublease Premises (including, but not limited to any alteration of the paint color or carpeting in the Sublease Premises) without the prior written consent of Sublandlord  and Landlord, which consent shall be given or withheld subject to the terms of the Master Lease as incorporated into this Sublease.  Any alterations permitted by Sublandlord  pursuant to this Section 10 shall be made by Subtenant in accordance with all of the terms and conditions of the Master Lease relating to alterations; provided, however, that Subtenant shall remove any and all such alterations  or physical additions in or to the Sublease Premises prior to the expiration or earlier termination  of this Sublease or the Master Lease at Subtenant's sole cost and expense.

 

 

 

 

 

 

 

11. Assignment  and Subletting.

 

(a) Any assignment of this Sublease, by operation of law or otherwise, or further sublet of the Sublease Premises shall require the prior written consent of Sublandlord and Landlord, which consent shall be given or withheld subject to the terms of the Master Lease as incorporated  into this Sublease subject, however, to the following:  So long as Subtenant is not entering into a Permitted Transfer for the purpose of avoiding or otherwise circumventing  the terms of Article 8 of the Master Lease, Subtenant shall have the right to sublease the Premises or assign this Sublease without Sublandlord's consent, and to the extent agreed to by Master Landlord  in the Master Landlord Consent to an Affiliate (defined, below) (a "Permitted Transfer").  Each affiliate assignee or sublessee shall be and remain liable jointly and severally with Subtenant  for payment of Rent and for the due performance of, and compliance with all the terms, covenants, conditions  and agreements herein contained on Subtenant's part to be

performed or complied with, for the term of this Sublease.  No Permitted  Transfer shall affect the continuing  primary liability of Subtenant  (which, following assignment as a result of a Permitted Transfer, shall be joint and several with the assignee), and Subtenant shall not be released from performing any of the terms, covenants and conditions of this Sublease.  Subtenant shall

promptly advise Landlord and Sublandlord of any Permitted Transfer.  For purposes of this Sublease "Affiliate" means any Unigroup affiliate and an entity controlling,  controlled by or under common control with Subtenant with control defined as ownership  of more than twenty­ five percent (25%) of an entity's voting interests.

 

(b) Except in connection with a Permitted Transfer, Sublandlord shall have the option, by giving written notice to Subtenant within fifteen (15) days after receipt of any written notice of Subtenant's desire to assign or sublet the Sublease Premises (the "Transfer Notice"), to recapture the Sublease Premises, or a portion thereof if such Transfer Notice is made with respect to less than the entire the Sublease Premises.  Such recapture notice shall cancel and terminate this Sublease with respect to the Sublease Premises or portion thereof, as applicable, as of the effective date of the proposed assignment or sublease stated in the Transfer Notice until

the last day of the term of the assignment or sublease as set forth in the Transfer Notice (or at Sublandlord's  option, shall cause the assignment to be made to Sublandlord or its agent, in which case the parties shall execute the assignment documentation  promptly thereafter).  In the event of a recapture by Sublandlord,  if this Sublease shall be canceled with respect to less than the entire Sublease Premises, the Monthly Base Rent and Additional Rent required under the terms of this Sublease shall be prorated on the basis of the number of rentable square feet retained by Subtenant in proportion to the number of rentable square feet contained in the Sublease

Premises, and this Sublease as so amended shall continue thereafter in full force and effect, and upon request of either party, the parties shall execute written confirmation of the same.  If Sublandlord declines, or fails to elect in a timely manner to recapture the Sublease Premises under this Section 11(b), then, provided Sublandlord and Landlord have consented to the proposed assignment in accordance with, Subtenant shall be entitled to proceed to transfer the Sublease Premises to the proposed assignee, subject to provisions of this Section 11. Notwithstanding the foregoing, if Sublandlord notifies Subtenant that it elects to recapture the Sublease Premises, or a portion thereof, Subtenant may rescind its Transfer Notice by written notice to Sublandlord  given no later than five (5) business days after its receipt of Sublandlord's notice, in which event this Sublease shall continue as if Subtenant had never delivered its Transfer Notice.

 

 

 

 

 

 

12. Notices.  All notices, demands or requests which may be or are required to be given under this Sublease shall be in writing and shall be given by personal delivery, or by certified or registered mail, return receipt requested, postage prepaid, or by Federal Express or similar overnight courier, charges prepaid, and addressed as follows:

 

Sublandlord:Extreme Networks

6480 Via Del Oro

San Jose, CA 95119

Attention:  Ted Lawson

	
 
	
Subtenant: 
	
Before the Commencement Date: Yangtze Memory Technologies, Inc.
	
 

809 Auzerais Ave, Unit 446

San Jose, CA 95126

Attention:  Annie Chen

After the Commencement Date: At the Sublease Premises

Attention:  Annie Chen

 

The addresses of the parties may be changed from time to time by notice given in the manner set forth in this Section 12.  Each notice, request, demand, advice or designation given under this Sublease shall be deemed properly given only upon actual receipt or refusal of delivery.

 

13. Termination of Master Lease.  This Sublease is, and shall at all times remain, subordinate to the Master Lease.  In the event the Master Lease is terminated for any reason, then, on the date of such termination, this Sublease shall automatically terminate and be of no further force or effect. If the termination of the Master Lease (and resulting termination of this Sublease) occurs through no fault of Sublandlord, Sublandlord shall have no liability to Subtenant for the resultant termination of this Sublease. Upon termination of this Sublease, provided that all Subtenant obligations under this Sublease have been fully performed and no uncured default by Subtenant has occurred and is then continuing, Sublandlord shall return to Subtenant any unapplied portion of the Security Deposit. If the Master Lease is terminated due to a default by Sublandlord and as a result thereof, the Sublease is terminated, then Sublandlord shall be liable to Subtenant for actual damages, including relocation expenses, incurred by Subtenant as a result of such termination of this Sublease; provided, however, that in no event shall Sublandlord be liable for consequential or punitive damages.

 

14. Sublandlord's Obligations with Respect to Master Lease.

 

(a) Subject to Subtenant's full and faithful compliance with the terms of this Sublease and the Master Lease, Sublandlord shall use reasonable efforts to keep the Master Lease in full force and effect during the Sublease Term. Notwithstanding the foregoing, Sublandlord may in its discretion exercise the right to terminate the Master Lease in the event of

 

 

 

 

 

 

 

 

casualty, destruction or condemnation as provided under Sections 6.1 and 6.3 of the Master

Lease.

 

(b) So long as this Sublease is in full force and effect, and subject to Sublandlord's rights under Sections 6.1 and 6.3 of the Master Lease, Sublandlord shall not enter into any agreement or amendment  or do or omit to do anything that Sublandlord  is obligated to do under the terms of the Master Lease (except for obligations that Subtenant is required to perform under this Sublease) that will cause either the Master Lease to be terminated or the Sublease Premises to be surrendered  prior to the expiration of the Sublease Term or otherwise will adversely affect the use by Subtenant of the Sublease Premises, materially increase the obligations of Subtenant  or materially  decrease the rights of Subtenant.  In the event that termination of this Sublease results from a breach thereof by Sublandlord not caused by Subtenant, then Sublandlord shall be liable to Subtenant for reasonable relocation and moving costs or expenses incurred by Subtenant by reason thereof.

 

(c) Subtenant agrees that, notwithstanding  anything to the contrary contained in this Sublease or in the Master Lease, except as otherwise provided in this Section 14(c), Sublandlord shall have no responsibility  or obligation in connection with or for any of the representations or covenants  made by Landlord under the Master Lease, nor shall Sublandlord  be required to provide any of the services or make any of the alterations,  installations,  repairs or restorations  or take any other actions that Landlord has agreed to provide, to make, to take or to cause to be provided or made or taken under the provisions of the Master Lease.  Subtenant shall rely upon, and look solely, to Landlord for the performance of such obligations; provided that if Landlord shall fail to perform any of its obligations under the Master Lease relating to the Subtenant's quiet possession and use of the Sublease Premises, Sublandlord agrees, for Subtenant's benefit, upon Subtenant's written request, to use commercially  reasonable efforts to enforce such obligations of Landlord under the Master Lease (provided commercially  reasonable efforts shall not require Sublandlord  to file a lawsuit against Landlord), and to attempt to cause Landlord to provide Subtenant with all of the services and other benefits that Landlord is

required to provide to the Sublease Premises and Common Areas in accordance with the terms

and conditions of the Master Lease.  Subtenant shall reimburse all costs and expenses incurred by Sublandlord in enforcing or attempting to enforce the Master Lease against Landlord for Subtenant's benefit at Subtenant's request, and shall indemnify and hold harmless Sublandlord from and against any and all claims arising from or in connection with such enforcement or attempted enforcement by Sublandlord.   Under no circumstances shall Subtenant have any right to require Sublandlord to perform any obligations of Landlord under the Master Lease or otherwise.  Subtenant shall not make any claim against Sublandlord for any damage that may arise nor shall Subtenant's obligations hereunder  be impaired solely by reason of (i) the failure of Landlord to keep, observe or perform any of Landlord's obligations pursuant to the Master

Lease, or (ii) the acts or omissions of Landlord and each of its agents, contractors, servants, employees, invitees or licensees.

 

(d) Sublandlord shall protect, indemnify and save Subtenant harmless from and against all costs, losses, damages, liabilities and expenses (including, without limitation, reasonable attorneys:fees)  by reason of or arising out of: (i) any accident, death, injury or damage which shall happen in, on, about or in connection with, the Premises or any matter

involving the condition, occupancy, repair, use, non-use or operation of the Premises prior to the

 

 

 

 

 

 

 

 

Commencement Date; or (ii) any gross negligence or willful misconduct of Sublandlord or of Sublandlord's employees,  agents, contractors or invitees within the Premises.   Sublandlord's obligation to protect, indemnify and save Subtenant harmless, as set forth in this Section, shall survive the expiration or earlier termination  of this Sublease.  However the foregoing indemnification obligations of Sublandlord  will not apply to any claim or liability is caused by, or arises from the act, or negligence of Subtenant.

 

(e) Except as otherwise expressly provided in this Sublease, Sublandlord shall perform its covenants and obligations under the Master Lease that do not require possession of

the Premises for their performance  and that are not otherwise to be performed under this

Sublease by Subtenant on behalf of Sublandlord. For example, Sublandlord shall at all times keep in full force and effect all insurance required of Sublandlord  as tenant under the Master Lease unless that requirement  is waived in writing by Master Landlord.

 

(f) Sublandlord  agrees to provide copies of default notices received by Sublandlord  from Landlord concerning  defaults under the Master Lease to Subtenant.   In the event that Sublandlord  defaults under any of its obligations under the Master Lease that have not been delegated to Subtenant  hereunder, following prior written notice to Sublandlord,  Subtenant shall have the right to cure the default on or before the date Sublandlord's applicable cure period expires.  If any such default is cured by Subtenant, then Sublandlord shall reimburse to

Subtenant any stuns paid or incurred by Subtenant in effecting the cure within thirty (30) days after notice and demand therefor from Subtenant, together with interest at the Default Rate specified in the Master Lease.

 

15. Sublandlord  Representations and Warranties.  Sublandlord represents,  warrants and covenants to Subtenant  that (a) it is the holder of the interest of Tenant under the Master Lease, (b) to Sublandlord's actual knowledge, the Master Lease is in full force and effect, (c) the copy of the Master Lease attached hereto as Exhibit E is a true and complete copy of the Master Lease, as modified or amended to date, and (d) to Sublandlord's knowledge, there are no defaults or events which with the passage of time would become defaults by Landlord or Sublandlord under the Master Lease.

 

16. Quiet Enjoyment.  Sublandlord  represents that it has full power and authority to enter into this Sublease, subject to the consent of the Landlord under the Master Lease. So long as no event of default has occurred (and remains uncured beyond any applicable  notice periods), Subtenant's quiet and peaceable enjoyment of the Sublease Premises shall not be disturbed  by Sublandlord or by anyone claiming through Sublandlord.

 

17.       Consent of Landlord.  Whenever the consent of Landlord is required under the Master Lease, Subtenant shall obtain the consent of both Sublandlord and Landlord,  but in all instances Subtenant shall first request and obtain the consent of Sublandlord  before requesting the consent of Landlord.  This Sublease shall not become effective until Landlord has provided

its written consent to this Sublease (the "Master Landlord  Consent").  Notwithstanding anything in this Sublease to the contrary, in the event the Master Landlord Consent is not obtained within

thirty (30) days of the parties'  execution of this Sublease, then this Sublease shall automatically

terminate at ll :59 p.m. Pacific Time on such date and the parties shall thereafter have no further rights or obligations hereunder.

 

 

 

 

 

 

 

 

18. Holding Over. If Subtenant continues to occupy the Sublease Premises after the expiration of the Sublease Term without the express written consent of Sublandlord, such occupancy by Subtenant shall automatically, without notice, constitute a default and breach of this Sublease by Subtenant.

 

19. Brokers.  Subtenant represents that it has used no broker in connection with this Sublease except for JLL.  Sublandlord represents that it has used no broker in connection with this transaction other.than CBRE, Inc.  Sublandlord shall be responsible for payment of a commission to such brokers pursuant to a separate agreement.

 

20. Entire Agreement.  This Sublease contains all of the terms, covenants and conditions agreed to by Sublandlord and Subtenant and may not be modified orally or in any manner other than by an agreement in writing signed by all the parties to this Sublease or their respective successors in interest.

 

21. Exhibits.  All exhibits attached hereto are incorporated in this Sublease, except as expressly excluded herein.

 

22. Counterparts.  This Sublease may be executed in any number of counterparts,

each of which shall be deemed an original, and when taken together they shall constitute one and the same sublease.  The parties agree to accept a digital image (including but not limited to an image in the form of a PDF, JPEG, GIF file, or other e-signature) of this Sublease, if applicable, reflecting the execution of one or both of the parties, as a true and correct original.

 

23.       Parking.  Subject to the applicable provisions of the Master Lease, Subtenant shall have the exclusive right to park vehicles in the general parking area for the Project in accordance with the applicable provisions of the Master Lease, including, without limitation, Section 9.12 of the Master Lease.

 

24. Use of FF&E.

 

(a)During the Sublease Term, Sublandlord hereby leases to Subtenant and Subtenant hereby accepts from Sublandlord, at no additional rent, the FF&E (as defined in Section 1 above).  The FF&E shall be leased in its "AS-IS" condition and Sublandlord makes no representations or warranties to Subtenant of any kind with respect thereto.  Subtenant shall maintain the FF&E in its existing condition and repair, ordinary wear and tear and damage by casualty excepted, and shall pay all applicable taxes associated with the FF&E, if any.  No alterations or changes shall be done to the FF&E except with Sublandlord's prior written consent, which shall not be unreasonably withheld, conditioned or delayed; provided however,

Subtenant shall have the right to move the FF&E within the Sublease Premises.  Upon expiration of the Sublease Term, Sublandlord shall convey the FF&E to Subtenant for Ten Dollars ($10.00) pursuant to a Bill of Sale in the form attached hereto as Exhibit "C"; provided however, in no event shall any portion of FF&E owned by the Landlord be included in such conveyance.  If, however, this Sublease terminates prior to the end of the Sublease Term, Subtenant shall surrender the FF&E to Sublandlord in the same condition as received, ordinary wear and tear and damage by casualty excepted.

 

 

 

 

 

 

 

 

(b)Additionally, Sublandlord hereby leases to Subtenant and Subtenant hereby accepts from Sublandlord, at no additional rent, the furniture listed on Exhibit F to the Master Lease (the "Landlord's  Furniture").  The Landlord's Furniture shall be leased in its "AS-IS" condition and Sublandlord makes no representations or warranties to Subtenant of any kind with respect thereto.  Subtenant shall maintain the Landlord's Furniture in its existing condition and repair, ordinary wear and tear and damage by casualty excepted, and shall pay all Landlord's Furniture taxes associated with the Landlord's Furniture.  No alterations or changes

shall be done to the Landlord's Furniture except with Sublandlord's prior written consent. At all times during the Term, Subtenant shall cause the Landlord's Furniture to be insured as required pursuant to the Master Lease.  Upon expiration of the Sublease Term or earlier termination of

this Sublease, Subtenant shall surrender the Landlord's Furniture to Sublandlord in the same condition as received, ordinary wear and tear and damage by casualty excepted. In the event of any damage to Landlord's Furniture, Subtenant shall provide written notice to Sublandlord of such damage and Subtenant shall make any and all repairs that are necessary at to the Landlord's Furniture at Subtenant's sole cost and expense.

 

25.       Signage,  Subject to the Landlord's and Sublandlord's approval and all applicable provisions of the Master Lease, Subtenant, at Subtenant's sole cost and expense, shall be entitled to the Building Signage (as defined in Section 3.3 of the Master Lease).

 

26.Restrictive Covenant.  This Sublease contains the provisions set forth in Exhibit C-2 of that certain Restrictive Covenant, dated September 28,2012 (the "Restrictive Covenant"), as set forth on Exhibit "G" attached hereto.

 

[Signature page immediately follows]

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties have caused this instrument to be executed by their duly authorized representatives as of the day and year first above written.

 

 

"SUBLANDLORD":

 

EXTREME NETWORKS, INC., a Delaware corporation

 

 

By: /s/ B. DREW DAVIES

Name: B. Drew Davies

Title: Chief Financial Officer

Date: 2/3/2017

 

 

 

By: /s/ KATY MOTIEY

Name: Katy Motiey

Title: Chief Administrator Officer, HR

GC and Secretary

Date: 2/3/2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

"SUBTENANT":

 

YANGTZE MEMORY TECHNOLOGIES, INC., a California corporation

 

By:  /s/ WENGUANG SHI___

Name: Wenguang Shi                      

Title:   President                                

 Date:                                            

 

 

 

 

By:____________________________

Name:                                                                

Title:_______________________

 

 

 

12

 

 
 

 

LANDLORD'S  CONSENT

 

 

Landlord hereby consents to the subletting of the Premises on the terms and conditions contained in the foregoing Sublease including, without limitation, Section ll(a).  Landlord represents, warrants and covenants to Subtenant that (a) it is the holder of the interest of Landlord under the Master Lease, (b) the Master Lease is in full force and effect, (c) the copy of the Master Lease attached to the foregoing Sublease as Exhibit E is a true and complete copy of

the Master Lease, as modified or amended to date.  Except as expressly provided in the Sublease, this consent shall not constitute a waiver of Landlord's right to withhold consent to any future assignment or sublease, or a release of Sublandlord from any of its obligations under the Master Lease.

 

LANDLORD:

 

W3 RIDGE RIO ROBLES PROPERTY LLC, a California limited liability company

 

 

 

 

By:                                                                  _ Title:                                                              _ Date:                                                            _Exhibit 10.1

 

As of March 2, 2017

 

AMENDED AND RESTATED

ACTIVISION BLIZZARD, INC.

2014 INCENTIVE PLAN

 

1.                                      Purpose.  The purpose of the Activision Blizzard, Inc. 2014 Incentive Plan is to attract and retain directors, officers and other employees of and consultants to Activision Blizzard, Inc., a Delaware corporation, and its Subsidiaries, and to provide to such persons incentives and rewards for performance.

 

2.                                      Definitions.  As used in the Plan:

 

(a)                                 “Award” means a grant of a Stock Option, SARs, Performance Shares, Performance Units or a Senior Executive Bonus or a grant or sale of Restricted Shares, Restricted Share Units or an award contemplated by Section 10.

 

(b)                                 “Base Price” means the price per share specified in an Evidence of Award of a Freestanding SAR.

 

(c)                                  “Board” means the Board of Directors of the Company.

 

(d)                                 “Code” means the Internal Revenue Code of 1986, as amended from time to time.

 

(e)                                  “Committee” means the Compensation Committee of the Board or such other committee of the Board responsible for administering the Plan pursuant to Section 11.

 

(f)                                   “Common Shares” means the shares of common stock, par value $0.000001 per share, of the Company or any security into which such Common Shares may be changed by reason of any transaction or event of the type referred to in Section 12.

 

(g)                                  “Company” means Activision Blizzard, Inc., a Delaware corporation, and its successors.

 

(h)                                 “Covered Employee” means an “executive officer” of the Company within the meaning of Rule 3b-7 promulgated under the Exchange Act (or any successor rule).

 

(i)                                     “Date of Grant” means the date on which the Committee determines the terms of an Award (including the number of Common Shares to which it pertains, if any) or such later (but not earlier) date as may be specified by the Committee as the date on which such Award becomes effective.

 

(j)                                    “Director” means a member of the Board of Directors of the Company.

 

(k)                                 “Effective Date” means the date of approval of the Plan by the Company’s stockholders.

 

(l)                                     “Evidence of Award” means an agreement, certificate, resolution or other type or form of writing or other evidence approved by the Committee that sets forth the terms and conditions of Awards. An Evidence of Award may be in an electronic medium, may be limited to notation on the books and records of the Company and, with the approval of the Committee, need not be signed by a representative of the Company or a Participant.

 

(m)                             “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, as such law, rules and regulations may be amended from time to time.

 

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(n)                                 “Exercise Price” means the purchase price per share payable on exercise of a Stock Option.

 

(o)                                 “Fiscal Year” means the fiscal year of the Company.

 

(p)                                 “Freestanding SAR” means a SAR that is not granted in tandem with a Stock Option.

 

(q)                                 “Incentive Stock Option” means a Stock Option that is intended to qualify as an “incentive stock option” under Section 422 of the Code or any successor provision.

 

(r)                                    “Management Objectives” means the measurable performance objective or objectives established pursuant to the Plan for Participants who have received grants of Senior Executive Plan Bonuses, or, when so determined by the Committee, Stock Options, SARs, Restricted Shares, Restricted Share Units, Performance Shares, Performance Units and other Awards pursuant to the Plan. Management Objectives may be described in terms of Company-wide objectives or objectives that are related to the performance of the individual Participant or of a Subsidiary, division, department or function within the Company or a Subsidiary. The Committee may provide, in connection with the setting of the Management Objectives, that any evaluation of performance may include or exclude certain items that may occur during any Fiscal Year, including, without limitation, the following: (i) asset write downs; (ii) litigation or claim judgments or settlements; (iii) the effect of changes in tax laws, accounting principles or other laws or provisions affecting reported results; (iv) any reorganization and restructuring programs; (v) any unusual, infrequently occurring or non-recurring charges or events as determined under generally accepted accounting principles; (vi) acquisitions or divestitures; and (vii) foreign exchange gains and losses. Financial objectives need not be determined in accordance with generally accepted accounting principles. Without limiting the generality of the foregoing, the Management Objectives applicable to any Award to a Covered Employee which is intended to be deductible under Section 162(m) of the Code will be based on specified levels of, or relative peer company, performance in any one or more of the following objectives, or any combination thereof, as determined by the Committee in its sole discretion:

 

(A)                               Adjusted net earnings

 

(B)                               Appreciation in and/or maintenance of the price of Common Shares (or any other publicly-traded securities of the Company), including, without limitation, comparisons with various stock market indices

 

(C)                               Attainment of strategic and operational initiatives

 

(D)                               Budget

 

(E)                                Cash flow (including, without limitation, free cash flow)

 

(F)                                 Cost of capital

 

(G)                               Cost reduction

 

(H)                              Earnings and earnings growth (including, without limitation, earnings per share, earnings before taxes, earnings before interest and taxes, and earnings before interest, taxes, depreciation and amortization)

 

(I)                                   Gross profits

 

(J)                                   Maintenance of internal controls over financial reporting and corporate governance practices

 

(K)                               Market share

 

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(L)                                Market value added

 

(M)                            Net income

 

(N)                               Net sales

 

(O)                               Operating profit and operating income

 

(P)                                 Pretax income before allocation of corporate overhead and bonus

 

(Q)                               Quality

 

(R)                               Recruitment and development of associates

 

(S)                                 Reductions in costs

 

(T)                                Return on assets and return on net assets

 

(U)                               Return on equity

 

(V)                               Return on invested capital

 

(W)                            Sales and sales growth

 

(X)                               Successful acquisition/divestiture

 

(Y)                               Total stockholder return and improvement of stockholder return

 

If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances, render previously established Management Objectives unsuitable, the Committee may in its discretion modify such Management Objectives or the related levels of achievement, in whole or in part, as the Committee deems appropriate and equitable.

 

(s)                                   “Market Value per Share” means, as of any particular date, (i) one hundred percent (100%) of the closing price per Common Share as reported on the principal securities exchange, association or quotation system on which Common Shares are then listed or quoted, or (ii) if clause (i) does not apply, the fair market value of a Common Share as determined by the Committee.

 

(t)                                    “Optionee” means the optionee named in an Evidence of Award evidencing an outstanding Stock Option.

 

(u)                                 “Participant” means a person who is selected by the Committee to receive benefits under the Plan and who is at the time an officer, employee, consultant, advisor or director of the Company or of any Subsidiary.

 

(v)                                 “Performance Period” means, in respect of a Performance Share, Performance Unit or Senior Executive Plan Bonus, a period of time established pursuant to Section 8 or Section 9, as the case may be, within which the Management Objectives or, in the case of a Performance Share or Performance Unit, other performance criteria relating to such Award are to be achieved. The Performance Period for a Senior Executive Plan Bonus will be the Fiscal Year and, unless otherwise expressly provided in the Plan, the Performance Period for all other Awards will be established by the Committee at the time of the Award.

 

(w)                               “Performance Share” means a bookkeeping entry that records the equivalent of one Common Share awarded pursuant to Section 8.

 

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(x)                                 “Performance Unit” means a bookkeeping entry awarded pursuant to Section 8 that records a unit equivalent to $1.00 or such other value as is determined by the Committee.

 

(y)                                 “Plan” means this Activision Blizzard, Inc. 2014 Incentive Plan, as may be amended from time to time.

 

(z)                                  “Prior Plan” means any of the following: (i) Activision, Inc. 1998 Incentive Plan, as amended, (ii) Activision, Inc. 1999 Incentive Plan, as amended, (iii) Activision, Inc. 2001 Incentive Plan, as amended, (iv) Activision, Inc. 2002 Incentive Plan, as amended, (v) Activision, Inc. 2002 Executive Incentive Plan, as amended, (vi) Activision, Inc. 2002 Studio Employee Retention Incentive Plan, as amended, (vii) Activision, Inc. 2003 Incentive Plan, as amended, (viii) Activision, Inc. 2007 Incentive Plan; and (ix) Activision Blizzard, Inc. 2008 Incentive Plan, as amended and restated.

 

(aa)                          “Related SAR” means a SAR granted pursuant to Section 5 that is granted in tandem with a Stock Option.

 

(bb)                          “Restricted Shares” means Common Shares granted or sold pursuant to Section 6 as to which neither the substantial risk of forfeiture nor the prohibition on transfers has expired.

 

(cc)                            “Restricted Share Unit” means an award granted pursuant to Section 7 of the right to receive Common Shares or cash at the end of a specified period.

 

(dd)                          “RSU Vesting Period” means the period of time during which Restricted Share Units are subject to deferral limitations, as provided in Section 7.

 

(ee)                            “SAR” or “Share Appreciation Right” means a right granted pursuant to Section 5 to receive a percentage of the Spread upon exercise, and includes both Freestanding SARs and Related SARs.

 

(ff)                              “Senior Executive Plan Bonus” means an award of annual incentive compensation made pursuant to and subject to the conditions set forth in Section 9.

 

(gg)                            “Spread” means the excess of the Market Value per Share on the date when a SAR is exercised over the Exercise Price or Base Price provided for in the related Stock Option or Freestanding SAR, respectively.

 

(hh)                          “Stock Option” means the right to purchase Common Shares upon exercise of an option granted pursuant to Section 4.

 

(ii)                                  “Subsidiary” means a corporation, company or other entity (i) at least 50 percent of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are, or (ii) which does not have outstanding shares or securities (as may be the case in a partnership, joint venture or unincorporated association), but at least 50 percent of whose ownership interests representing the right generally to make decisions for such other entity are, now or hereafter, owned or controlled, directly or indirectly, by the Company, except that for purposes of determining whether any person may be a Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” means any corporation in which at the time the Company owns or controls, directly or indirectly, at least 50 percent of the total combined voting power represented by all classes of stock issued by such corporation.

 

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3.                                      Shares Available Under the Plan.

 

(a)                                 Subject to adjustment as provided in Section 12, the number of Common Shares that may be issued or transferred (i) upon the exercise of Stock Options, (ii) in payment of SARs, (iii) as Restricted Shares, (iv) in payment of Restricted Share Units, (v) in payment of Performance Shares or Performance Units, (vi) in payment of Senior Executive Bonuses, (vii) as or pursuant to Awards contemplated by Section 10, or (viii) in payment of dividend equivalents paid with respect to Awards made under the Plan will not exceed in the aggregate 46,000,000 Common Shares, which maximum number will be increased by the following:  (A) the number of shares relating to awards outstanding under any Prior Plan as of the Effective Date that (1) expire, or are forfeited, terminated or cancelled without the issuance of shares, (2) are settled in cash in lieu of shares, or (3) are exchanged with the Committee’s permission, prior to the issuance of Common Shares, for awards not involving Common Shares; (B) if the exercise price of any stock option outstanding under any Prior Plan as of the Effective Date is, or the tax withholding requirements with respect to any award outstanding under any Prior Plan as of the Effective Date are, satisfied by withholding shares otherwise then deliverable in respect of the award or the actual or constructive transfer to the Company of shares already owned, the number of shares equal to the withheld or transferred shares; and (C) if a share appreciation right under any Prior Plan as of the Effective Date is exercised and settled in Common Shares, a number of shares equal to the difference between the total number of shares for which the share appreciation right was exercised and the number of shares actually issued or transferred.

 

(b)                                 Under the Plan, (i) if all or any portion of an Award expires, or is forfeited, terminated or cancelled, without the issuance of Common Shares, or is settled in cash in lieu of Common Shares, or is exchanged with the Committee’s permission, prior to the issuance of Common Shares, for an Award not involving Common Shares, the number of Common Shares expired, forfeited, terminated or cancelled, or settled or exchanged, as the case may be, will again be available for issuance or transfer under the Plan; (ii) if the Exercise Price of any Stock Option is, or the tax withholding requirements with respect to any Award are, satisfied through the withholding by the Company of shares otherwise then deliverable in respect of such Award or actual or constructive transfer to the Company of shares already owned, a number of shares equal to such withheld or transferred shares will again be available for issuance or transfer under the Plan; and (iii) if a SAR is exercised and settled in Common Shares, a number of shares equal to the difference between the total number of shares for which the SAR was exercised and the number of shares actually issued or transferred will again be available for issuance or transfer under the Plan, with the result being that only the number of Common Shares actually issued or transferred upon exercise of the SAR are counted against the maximum number of Common Shares available for issuance or transfer under the Plan. Shares utilized under the Plan may be shares of original issuance or treasury shares or a combination of the foregoing.

 

(c)                                  Notwithstanding anything in the Plan to the contrary, and subject to adjustment as provided in Section 12:

 

(i)                                     The number of Common Shares actually issued or transferred by the Company upon the exercise of Incentive Stock Options will not exceed 46,000,000.

 

(ii)                                  The number of shares issuable or transferable in respect of Stock Options and SARs granted to any one Participant in a single Fiscal Year may not exceed 4,000,000 in the aggregate.

 

(iii)                               The number of (A) Restricted Shares granted to any one Participant in a single Fiscal Year and (B) Common Shares issuable or transferable in respect of Restricted Share Units granted to such Participant in such Fiscal Year, may not exceed 3,000,000 in the aggregate.

 

(iv)                              The number of Performance Shares granted to any one Participant in a single Fiscal Year may not exceed 6,000,000 in the aggregate.

 

(v)                                 The value of Performance Units granted to any one Participant in a single Fiscal Year may not exceed $6,000,000 in the aggregate (with the value of any such award to be determined as of the date of such award).

 

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(vi)                              The amount of any Senior Executive Plan Bonuses paid to any one Participant for any single Fiscal Year may not exceed $10,000,000 in the aggregate.

 

(vii)                           The number of Common Shares issuable or transferable in respect of Awards contemplated by Section 10 granted to any one Participant in a single Fiscal Year may not exceed 3,000,000 in the aggregate. The value of any Awards contemplated by Section 10 that do not involve the issuance or transfer of Common Shares granted to any one Participant in a single Fiscal Year may not exceed $6,000,000 in the aggregate (with the value of any such award to be determined as of the date of such award).

 

(d)                                 Subject to the rules and regulations of any securities exchange, association or quotation system on which Common Shares are then listed or quoted, if a Participant has elected to give up the right to receive compensation in exchange for Common Shares based on fair market value, such Common Shares will not count against the number of shares available in Section 3(a) above.

 

4.                                      Stock Options.  The Committee may, from time to time and upon such terms and conditions as it may determine, authorize the grant to Participants of options to purchase Common Shares. Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

 

(a)                                 Each grant will specify the number of Common Shares to which it pertains.

 

(b)                                 Each grant will specify an Exercise Price per share, which may not be less than the Market Value per Share on the Date of Grant.

 

(c)                                  Each grant may specify that the Exercise Price will be payable (i) by bank check or certified check or by wire transfer of immediately available funds, (ii) through the delivery of irrevocable instructions, in form acceptable to the Company, to a brokerage firm approved by the Optionee to sell some or all of the Common Shares being purchased upon such exercise and to thereafter deliver promptly to the Company from the proceeds of such sale an amount in cash equal to the aggregate Exercise Price of the Common Shares being purchased, (iii) by a combination of such methods of payment, or (iv) by such other methods as may be approved by the Committee.

 

(d)                                 Successive grants may be made to the same Participant whether or not any Stock Options previously granted to such Participant remain unexercised.

 

(e)                                  Each grant will specify the period or periods of continuous employment or other service by the Optionee with the Company or a Subsidiary that is necessary before the Stock Options or installments thereof will become exercisable. A grant of Stock Options may provide for the accelerated vesting and exercisability of all or a portion of such Stock Options in the event of the retirement, death, disability or other termination of the Optionee’s service or a change of control of the Company or a Subsidiary (or other similar transaction or event).

 

(f)                                   A grant of Stock Options may specify Management Objectives or other performance criteria that must be achieved as a condition to the exercise of such rights or that may result in the accelerated exercisability of such rights.

 

(g)                                  Stock Options may be (i) options that are intended to qualify under the Code as Incentive Stock Options, (ii) options that are not intended to so qualify, or (iii) combinations of the foregoing.

 

(h)                                 The exercise of a Stock Option will result in the cancellation on a share- for-share basis of any Related SAR authorized under Section 5.

 

(i)                                     No Stock Option will be exercisable more than 10 years from the Date of Grant.

 

(j)                                    Each grant of Stock Options will be evidenced by an Evidence of Award. Each Evidence of Award will be subject to the Plan and will contain such terms and provisions, consistent with the Plan, as the Committee may approve from time to time.

 

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5.                                      SARs.  The Committee may also authorize the grant to any Optionee of Related SARs in respect of Stock Options granted hereunder and the grant to any Participant of Freestanding SARs. A Related SAR will be a right of the Optionee, exercisable by surrender of the related Stock Option, to receive from the Company an amount determined by the Committee, which will be expressed as a percentage of the Spread (not exceeding 100 percent) at the time of exercise. Related SARs must be granted concurrently with the related Stock Option. A Freestanding SAR will be a right of the Participant to receive from the Company an amount determined by the Committee, which will be expressed as a percentage of the Spread (not exceeding 100 percent) at the time of exercise. Each grant of SARs may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

 

(a)                                 Each grant will specify the number of Common Shares to which it pertains.

 

(b)                                 Each grant of Freestanding SARs will specify the Base Price, which may not be less than the Market Value per Share on the Date of Grant.

 

(c)                                  Upon exercise, each SAR will be payable in Common Shares having an aggregate Market Value per Share equal to the Spread (or the designated percentage of the Spread).

 

(d)                                 A grant may specify that the amount payable on exercise of a SAR may not exceed a maximum specified by the Committee at the Date of Grant.

 

(e)                                  A grant may specify waiting periods before exercise and permissible exercise dates or periods.

 

(f)                                   A grant may specify that the exercisability of a SAR may be conditioned on, or may be accelerated in whole or in part in the event of, the retirement, death, disability or other termination of the Participant’s service or a change of control of the Company or a Subsidiary (or other similar transaction or event).

 

(g)                                  A grant of SARs may specify Management Objectives or other performance criteria that must be achieved as a condition of the exercise of such SARs or that may result in the accelerated exercisability of such SARs.

 

(h)                                 Each grant of SARs will be evidenced by an Evidence of Award, which Evidence of Award will describe such SARs, identify the related Stock Options (if applicable), and contain such other terms and provisions, consistent with the Plan, as the Committee may approve from time to time.

 

(i)                                     A grant of Related SARs will provide that such Related SARs may be exercised only at a time when the related Stock Option is also exercisable and at a time when the Spread is positive, and by surrender of the related Stock Option for cancellation. Successive grants of Related SARs may be made to the same Participant regardless of whether any Related SARs previously granted to the Participant remain unexercised.

 

(j)                                    Successive grants of Freestanding SARs may be made to the same Participant regardless of whether any Freestanding SARs previously granted to the Participant remain unexercised.

 

(k)                                 No Freestanding SAR granted under the Plan may be exercised more than 10 years from the Date of Grant.

 

6.                                      Restricted Shares.  The Committee may also authorize the grant or sale of Restricted Shares to Participants. Each such grant or sale will constitute an immediate transfer of the ownership of Common Shares to the Participant in consideration of the performance of services or other benefit to the Company, entitling such Participant to voting, dividend and other ownership rights, but subject to the substantial risk of forfeiture (within the meaning of Section 83 of the Code) and restrictions on transfer hereinafter referred to. Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

 

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(a)                                 Each grant will specify the number of Common Shares to which it pertains.

 

(b)                                 Each such grant or sale may be made without additional consideration or in consideration of a payment by the Participant that is less than the Market Value per Share at the Date of Grant.

 

(c)                                  Each such grant or sale will specify the period or periods of continuous employment or other service by the Participant with the Company or a Subsidiary (or other risk of forfeiture) that must be satisfied before the restrictions specified pursuant to this Section 6 will lapse and the Restricted Shares will become vested, and/or may provide that all or a portion of the restrictions on the Restricted Shares will lapse upon the achievement of Management Objectives or other performance criteria (as provided in Section 6(e) below).

 

(d)                                 Each such grant or sale will provide that, during the period for which the risk of forfeiture continues, the transferability of the Restricted Shares will be prohibited or restricted in the manner and to the extent prescribed by the Committee at the Date of Grant (which restrictions may include, without limitation, rights of repurchase or first refusal in the Company or provisions subjecting the Restricted Shares to a continuing substantial risk of forfeiture in the hands of any transferee).

 

(e)                                  A grant of Restricted Shares may specify Management Objectives or other performance criteria that, if achieved, will result in the lapse or early lapse of the restrictions applicable to all or a portion of such Restricted Shares. Each grant may specify in respect of such Management Objectives or other performance criteria a minimum acceptable level of achievement and may set forth a formula for determining the number of Restricted Shares with respect to which restrictions will lapse if performance is at or above the minimum level, but falls short of maximum achievement of the specified Management Objectives or criteria.

 

(f)                                   Notwithstanding anything to the contrary contained in the Plan, a grant or sale of Restricted Shares may provide for the acceleration in whole or in part of the lapse of the restrictions on the Restricted Shares in the event of the retirement, death, disability or other termination of the Participant’s service or a change of control of the Company or a Subsidiary (or other similar transaction or event).

 

(g)                                  A grant or sale of Restricted Shares may require that any or all dividends or other distributions paid thereon during the period of such restrictions be automatically deferred and reinvested in additional shares of Restricted Shares, which may be subject to the same restrictions as the underlying Award.

 

(h)                                 Each grant or sale of Restricted Shares will be evidenced by an Evidence of Award and will contain such terms and provisions, consistent with the Plan, as the Committee may approve. Unless otherwise directed by the Committee, all Restricted Shares will be held in custody by the Company or its transfer agent and registrar until all restrictions thereon have lapsed.

 

7.                                      Restricted Share Units.  The Committee may also authorize the grant or sale of Restricted Share Units to Participants. Each such grant or sale will constitute the agreement by the Company to deliver Common Shares or cash to the Participant in the future in consideration of the performance of services or other benefit to the Company, but subject to the fulfillment of such conditions (which may include the achievement of Management Objectives or other performance criteria) during the RSU Vesting Period as the Committee may specify. Each such grant or sale may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

 

(a)                                 Each grant will specify the number of Common Shares to which it pertains.

 

(b)                                 Each grant may specify in respect of such Management Objectives or other performance criteria a minimum acceptable level of achievement and may set forth a formula for determining the number of Restricted Share Units which will vest if performance is at or above the minimum level, but falls short of maximum achievement of the specified Management Objectives or criteria.

 

8

 

(c)                                  Each such grant or sale may be made without additional consideration or in consideration of a payment by such Participant that is less than the Market Value per Share at the Date of Grant.

 

(d)                                 Notwithstanding anything to the contrary contained in the Plan, a grant or sale may provide for the accelerated vesting of Restricted Share Units and the lapse or other modification of the RSU Vesting Period in whole or in part in the event of the retirement, death, disability or other termination of the Participant’s service or a change of control of the Company or a Subsidiary (or other similar transaction or event).

 

(e)                                  During the RSU Vesting Period, the Participant will have no rights of ownership in the Restricted Share Units and will have no right to vote Common Shares underlying the Restricted Share Units.  An Evidence of Award may, but is not required to, authorize the payment of dividend equivalents on Restricted Share Units, in cash, Common Shares or additional Restricted Share Units, which may be on a current, deferred or contingent basis.

 

(f)                                   Each grant or sale will specify the time and manner of payment of the Restricted Share Units that have been earned. A grant or sale may specify that the amount payable with respect thereto may be paid by the Company in cash, in Common Shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives.

 

(g)                                  Each grant or sale of Restricted Share Units will be evidenced by an Evidence of Award and will contain such terms and provisions, consistent with the Plan, as the Committee may approve from time to time.

 

8.                                      Performance Shares and Performance Units.  The Committee may also authorize the grant of Performance Shares and Performance Units that will become payable to a Participant upon achievement of specified Management Objectives or other performance criteria during the Performance Period. Each such grant may utilize any or all of the authorizations, and will be subject to all of the requirements, contained in the following provisions:

 

(a)                                 Each grant will specify the number of Performance Shares or Performance Units to which it pertains, and may provide for an adjustment to that number in the case of changes in compensation or other factors.

 

(b)                                 The Performance Period with respect to each Performance Share or Performance Unit will be such period of time as will be determined by the Committee at the Date of Grant, which may be subject to earlier lapse or other modification in the event of the retirement, death, disability or other termination of the Participant’s service or a change of control of the Company or a Subsidiary (or other similar transaction or event).

 

(c)                                  A grant of Performance Shares or Performance Units will specify Management Objectives or other performance criteria which, if achieved, will result in payment or early payment of the Award, and each grant may specify in respect of such specified Management Objectives or other performance criteria a level or levels of achievement and will set forth a formula for determining the number of Performance Shares or Performance Units that will be earned if performance is at or above the minimum level or levels, but falls short of maximum achievement of the specified Management Objectives or criteria.

 

(d)                                 Each grant will specify the time and manner of payment of Performance Shares or Performance Units that have been earned. A grant may specify that the amount payable with respect thereto may be paid by the Company in cash, in Common Shares or in any combination thereof and may either grant to the Participant or retain in the Committee the right to elect among those alternatives.

 

9

 

(e)                                  A grant of Performance Shares may specify that the amount payable with respect thereto may not exceed a maximum specified by the Committee at the Date of Grant. A grant of Performance Units may specify that the amount payable or the number of Common Shares issued with respect thereto may not exceed maximums specified by the Committee at the Date of Grant.

 

(f)                                   At the Date of Grant of Performance Shares, the Committee may, but is not required to, provide for the payment of dividend equivalents to the holder thereof, in cash, Common Shares or additional Performance Shares, which may be on a current, deferred or contingent basis.

 

(g)                                  Each grant of Performance Shares or Performance Units will be evidenced by an Evidence of Award and will contain such other terms and provisions, consistent with the Plan, as the Committee may approve from time to time.

 

9.                                      Senior Executive Plan Bonuses.  The Committee may from time to time authorize the payment of annual incentive compensation to a Participant who is a Covered Employee, which incentive compensation will become payable upon achievement of specified Management Objectives. Subject to Section 3(b)(vii), Senior Executive Plan Bonuses will be payable upon such terms and conditions as the Committee may determine in accordance with the following provisions:

 

(a)                                 No later than 90 days after the first day of the Fiscal Year, the Committee will specify the Management Objectives that, if achieved, will result in the payment of a Senior Executive Plan Bonus for such Fiscal Year.

 

(b)                                 Following the close of the Fiscal Year, the Committee will certify in writing whether the specified Management Objectives have been achieved. Approved minutes of a meeting of the Committee at which such certification is made will be treated as written certification for this purpose. The Committee will also specify the time and manner of payment of a Senior Executive Plan Bonus which becomes payable, which payment may be made in (i) cash, (ii) Common Shares having an aggregate Market Value per Share equal to the aggregate value of the Senior Executive Plan Bonus which has become payable, or (iii) any combination thereof, as determined by the Committee in its discretion at the time of payment.

 

(c)                                  The Committee may provide that, if a change in control of the Company occurs during a Performance Period, the Senior Executive Plan Bonus payable to each Participant for the Performance Period will be determined at the highest level of achievement of the Management Objectives, without regard to actual performance and without proration for less than a full Performance Period. In such event, the Senior Executive Plan Bonus will be paid at such time following the change in control as the Committee determines in its discretion, but in no event later than 30 days after the date of an event which results in a change in control.

 

(d)                                 Each grant may be evidenced by an Evidence of Award, which will contain such terms and provisions as the Committee may determine consistent with the Plan, including without limitation provisions relating to the Participant’s termination of employment by reason of retirement, death, disability or otherwise.

 

10.                               Other Awards.

 

(a)                                 In addition to Stock Options, SARs, Performance Shares, Performance Units, Restricted Shares, Restricted Share Units and Senior Executive Plan Bonuses, the Committee may, subject to limitations under applicable law, make other Awards (i) that may be denominated or payable in, valued in whole or in part by reference to, or otherwise based on, or related to, Common Shares or factors that may influence the value of such shares, including, without limitation, convertible or exchangeable debt securities, other rights convertible or exchangeable into Common Shares, purchase rights for Common Shares, (ii) with value and payment contingent upon performance of the Company or specified Subsidiaries or other business units thereof or any other factors designated by the Committee (including, without limitation, achievement of Management Objectives), or (iii) valued by reference to the book value of Common Shares or the value of securities of, or the performance of specified Subsidiaries or other business units of the Company. The Committee will determine the terms and conditions of such Awards. Common Shares delivered pursuant to an Award in the nature of a purchase right granted under this Section 10 will be purchased for such consideration, paid for at such time, by such methods, and in such forms, including, without limitation, cash, Common Shares, other Awards, notes or other property, as the Committee determines.

 

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(b)                                 Cash awards, as an element of or a supplement to any other Award made under the Plan, may also be made pursuant to this Section 10.

 

(c)                                  The Committee may grant Common Shares as a bonus, or may make other Awards in lieu of obligations of the Company or a Subsidiary to pay cash or deliver other property under the Plan or under other plans or compensatory arrangements, subject to such terms as are determined by the Committee from time to time.

 

(d)                                 Each award made pursuant to this Section 10 will be evidenced by an Evidence of Award and will contain such terms and provisions, consistent with the Plan, as the Committee may approve from time to time.

 

11.                               Administration of the Plan.

 

(a)                                 The Plan will be administered by the Committee. The composition of the Committee will comply with applicable independence requirements under the rules and regulations of any securities exchange, association or quotation system on which Common Shares are then listed or quoted, and the Board will also consider the advisability of appointing to the Committee members who satisfy the requirements of (i) the definition of the term “non-employee director” used Rule 16b-3 promulgated under the Exchange Act and (ii) the definition of the term “outside director” used in Section 162(m) of the Code.

 

(b)                                 The Committee may from time to time delegate all or any part of its authority under the Plan to a subcommittee of the Committee or to any other committee of the Board or a subcommittee thereof. To the extent of any such delegation, references in the Plan to the Committee will be deemed to be references to such committee or subcommittee.

 

(c)                                  Notwithstanding any other provision of the Plan, any Award to a member of the Committee must be approved by the Board to be effective.

 

(d)                                 The Committee will have sole discretion to (i) interpret any provision of the Plan or an Evidence of Award, (ii) make any determination necessary or advisable for the administration of the Plan and Awards hereunder, and (iii) waive any condition or right of the Company under an Award or discontinue or terminate an Evidence of Award. Without intending to limit the generality or effect of the foregoing, any decision or determination made by the Committee with respect to the Plan or an Award, including whether to grant or withhold any required consent, will be made by the Committee in its sole and absolute discretion, subject to the terms of the Plan. The interpretation and construction by the Committee of any provision of the Plan or of any Evidence of Award and any determination by the Committee pursuant to any provision of the Plan or of any such Evidence of Award will be final and conclusive.

 

(e)                                  The Committee may delegate to one or more of its members or to one or more officers of the Company, or to one or more agents or advisors, such administrative duties or powers as it may deem advisable, and the Committee, or any person to whom duties or powers have been so delegated, may employ one or more persons to render advice with respect to any responsibility the Committee or such person may have under the Plan. Without limiting the foregoing and subject to applicable law, the Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as the Committee: (i) designate employees to be recipients of Awards under the Plan; and (ii) determine the size of any such Awards; provided, however, that (A) the Committee will not delegate such responsibilities to any such officer for Awards to an executive officer or any person subject to Section 162(m) of the Code; (B) the resolution providing for such authorization sets forth the total number of Common Shares such officer(s) may grant; and (C) the officer(s) will report periodically to the Committee regarding the nature and scope of the Awards made pursuant to the authority delegated.

 

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12.                               Adjustments.  The Committee will make or provide for such adjustments in the number of Common Shares authorized under Section 3, in the number of Common Shares covered by outstanding Awards, in the Exercise Price of outstanding Stock Options and any amounts payable for Common Shares under other outstanding Awards, in the Base Price of outstanding SARs, and in the kind of shares covered thereby, as is equitably required to prevent dilution or enlargement of the rights of Participants or Optionees that otherwise would result from (a) any stock dividend, extraordinary dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, or (b) any change of control, merger, consolidation, spin-off, split- off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets, or issuance of rights or warrants to purchase securities, or (c) any other corporate transaction or event having an effect similar to any of the foregoing. Moreover, in the event of any such transaction or event, the Committee, in its discretion, may provide in substitution for any or all outstanding Awards under the Plan such alternative consideration (including, without limitation, cash), if any, as it may determine to be equitable under the circumstances and may require in connection therewith the surrender of all Awards so replaced. The Committee will also make or provide for such adjustments in the numbers of shares specified in Section 3(c) as the Committee in its sole discretion, exercised in good faith, may determine is appropriate to reflect any transaction or event described in this Section 12; provided, however, that any such adjustment will be made only if and to the extent that (i) such adjustment would not cause any option intended to qualify as an Incentive Stock Option to fail to so qualify and (ii) such adjustment would not result in negative tax consequences under Section 409A of the Code. Without limiting the generality of the foregoing, in the event that the Company issues warrants or other rights to acquire Common Shares on a pro rata basis to all stockholders, the Committee will make such adjustments in the number of Common Shares authorized under the Plan and in the limits contained herein as it may deem to be equitable, including, without limitation, proportionately increasing the number of authorized Common Shares or any such limit.

 

13.                               Non U.S. Participants.  In order to facilitate the making of any grant or combination of grants under the Plan, the Committee may provide for such special terms for Awards to Participants who are foreign nationals or who are employed by the Company or any Subsidiary outside of the United States of America or who provide services to the Company under an agreement with a foreign nation or agency, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve such supplements to or amendments, restatements or alternative versions of the Plan (including, without limitation, sub-plans) as it may consider necessary or appropriate for such purposes, without thereby affecting the terms of the Plan as in effect for any other purpose, and the Secretary or other appropriate officer of the Company may certify any such document as having been approved and adopted in the same manner as the Plan. No such special terms, supplements, amendments or restatements, however, will include any provisions that are inconsistent with the terms of the Plan as then in effect unless the Plan could have been amended to eliminate such inconsistency without further approval by the stockholders of the Company.

 

14.                               Transferability.

 

(a)                                 Except as provided below or as otherwise determined by the Committee, (i) no Award will be transferable by a Participant except by will or the laws of descent and distribution and (ii) Stock Options and SARs will be exercisable during the Participant’s lifetime only by the Participant or, in the event of the Participant’s legal incapacity to do so, by the Participant’s guardian or legal representative acting on behalf of the Participant in a fiduciary capacity under state law and/or court supervision. With the consent of the Company, which may be granted or withheld in its sole and absolute discretion, a Participant may transfer an Award for estate planning purposes or pursuant to a domestic relations order; provided that such transferee will be bound by and subject to all of the terms and conditions of the Plan and the Evidence of Award relating to the Award and executes an agreement satisfactory to the Company evidencing such obligations; and provided further that such Participant will remain bound by the terms and conditions of the Plan. Notwithstanding the foregoing, no Stock Option that is intended to be an Incentive Stock Option or any Related SAR granted in tandem therewith may be transferred.

 

(b)                                 The Committee may specify at the Date of Grant that part or all of the Common Shares that are (i) to be issued or transferred by the Company upon the exercise of Stock Options or SARs, upon the termination of the RSU Vesting Period applicable to Restricted Share Units or upon payment under any grant of Performance Shares, Performance Units or a Senior Executive Plan Bonus or (ii) no longer subject to the substantial risk of forfeiture and restrictions on transfer specified pursuant to Section 6, will be subject to further restrictions on transfer.

 

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15.                               Withholding Taxes.

 

(a)                                 Each Participant must satisfy all applicable federal, state, and local or other income and employment tax withholding obligations in connection with any payment made to, or benefit realized, by him or her under the Plan.  The Company may elect to satisfy these obligations through additional withholding on salary or wages or by holding back a portion of such payment or benefit.  If the Company elects not to, or cannot, do so, the Participant must pay the Company the full amount, if any, required for withholding or, if in connection with an Award, have a broker tender to the Company cash equal to the withholding obligations.

 

(b)                                 Without limiting the generality of Section 15(a), payment of withholding obligations is due before the Company will issue any shares on exercise, vesting or release from forfeiture of an Award or at the same time as payment of the exercise or purchase price, unless the Company determines otherwise.  If provided for in an Award or approved by the Committee (either initially or by later amendment or Committee determination), a Participant may satisfy the tax obligations in whole or in part by delivery of Common Shares, including shares retained from the Award creating the tax obligation, valued at their fair market value (valued in the manner determined by (or in a manner approved by) the Company); provided, however, except as otherwise provided in this section, that the total tax withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory withholding obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income).  Notwithstanding the preceding sentence, effective as of  July 1, 2016, if provided for in an Award or approved by the Committee, the Company may retain such number of Common Shares (up to the number of shares having a fair market value equal to the maximum individual statutory rate of tax (determined by, or in a manner approved by, the Company)) as the Company shall determine in its sole discretion to satisfy the tax liability associated with any Award where the Award is subject to withholding.  Shares used to satisfy tax withholding requirements cannot be subject to any repurchase, forfeiture, unfulfilled vesting or other similar requirements.

 

16.                               Compliance with Section 409A of the Code.  To the extent applicable, it is intended that the Plan and any Awards hereunder comply with the provisions of Section 409A of the Code. The Plan and any Awards hereunder will be administrated in a manner consistent with this intent. Any reference in the Plan to Section 409A of the Code will also include any proposed, temporary or final regulations, or any other guidance, promulgated by the U.S. Department of the Treasury or the Internal Revenue Service.

 

17.                               Amendments.

 

(a)                                 The Committee may at any time and from time to time amend or suspend the Plan in whole or in part; provided, however, that, if an amendment must be approved by the stockholders of the Company in order to comply with applicable legal requirements or the requirements of the principal securities exchange, association or quotation system on which the Common Shares are then listed or quoted, then such amendment will be subject to stockholder approval and will not be effective unless and until such approval has been obtained. Without intending to limit the generality or effect of the foregoing, if an amendment to the Plan would increase the number of Common Shares that may be issued or transferred upon the exercise of Incentive Stock Options, then such amendment will be subject to stockholder approval and will not be effective unless and until such approval has been obtained.

 

(b)                                 The Committee will not, without the further approval of the stockholders of the Company, authorize the amendment of any outstanding Stock Option or SAR to reduce the Exercise Price or Base Price. Furthermore, no Stock Option or SAR will be cancelled and replaced with Awards having a lower Exercise Price or Base Price without further approval of the stockholders of the Company. This Section 17(b) is intended to prohibit the repricing of “underwater” Stock Options and SARs and will not be construed to prohibit the adjustments provided for in Section 12.

 

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(c)                                  Subject to Section 17(b) hereof, the Committee may amend the terms of any Award under the Plan prospectively or retroactively.  Subject to Section 12, no amendment to any Award may materially and adversely affect the rights of any Participant taken as a whole without his or her consent.

 

(d)                                 If permitted by Section 409A of the Code, in case of termination of employment by reason of the death, disability or normal or early retirement, or in the case of unforeseeable emergency or other special circumstances, of a Participant who holds a Stock Option or SAR not immediately exercisable in full, or any Restricted Shares as to which the risk of forfeiture or the prohibition or restriction on transfer has not lapsed, or any Restricted Share Units as to which the RSU Vesting Period has not been completed, or any Performance Shares or Performance Units which have not been fully earned, or any other Award made pursuant to Section 10 subject to any vesting schedule or transfer restriction, or who holds Common Shares subject to any transfer restriction imposed pursuant to Section 12(b), the Committee may, in its sole discretion, accelerate the time at which such Stock Option, SAR or other Award may be exercised, the time at which such risk of forfeiture or prohibition or restriction on transfer will lapse, the time when such RSU Vesting Period will end, the time at which such Performance Shares or Performance Units will be deemed to have been fully earned or the time when such transfer restriction will terminate, or may waive any other limitation or requirement under any such Award.

 

(e)                                  The Committee may, in its discretion, terminate the Plan at any time. Termination of the Plan will not affect the rights of Participants or their successors under any Awards outstanding hereunder and not exercised in full on the date of termination.

 

18.                               Governing Law.  The Plan and all Awards and actions taken thereunder will be governed by and construed in accordance with the internal substantive laws of the State of Delaware.

 

19.                               Term of Plan.  The Plan will be effective as of the Effective Date. No Award will be made under the Plan more than 10 years after the Effective Date, but all Awards made on or prior to such date will continue in effect thereafter subject to the terms thereof and of the Plan.

 

20.                               Miscellaneous Provisions.

 

(a)                                 The Company will not be required to issue any fractional Common Shares pursuant to the Plan. The Committee may provide for the elimination of fractions or for the settlement of fractions in cash.

 

(b)                                 The Plan will not confer upon any Participant any right with respect to continuance of employment or other service with the Company or a Subsidiary, nor will it interfere in any way with any right the Company or a Subsidiary would otherwise have to terminate such Participant’s employment or other service at any time. Except as specifically provided by the Committee, the Company will not be liable for the loss of existing or potential profit with respect to an Award hereunder in the event of termination of employment or other relationship, even if the termination is in violation of an obligation of the Company or a Subsidiary to the Participant. The Committee’s making of an Award to a Participant hereunder will not confer upon the Participant any right to receive any other Awards hereunder or under any other plan or arrangement.

 

(c)                                  Any Evidence of Award may provide for the effect on any Common Shares issued or other payment made with respect to the Award of any conduct of the Participant determined by the Committee to be injurious, detrimental or prejudicial to the Company or any Subsidiary.

 

(d)                                 Notwithstanding any other provision of the Plan or any Award to the contrary, no Award may be effectuated, through exercise by the holder thereof or otherwise, if the delivery of cash or stock to the holder of such Award pursuant to the terms thereof would be, based on advice of counsel to the Company, contrary to law or the regulations of any duly constituted authority having jurisdiction over the Plan. Notwithstanding any other provision of the Plan to the contrary, each issuance of Common Shares to a Participant pursuant to the Plan or an Award will be made for such consideration as is required by applicable law to ensure that such Common Shares are validly issued, fully paid and nonassessable upon such issuance.

 

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(e)                                  Absence on leave approved by a duly constituted officer of the Company or a Subsidiary will not be considered interruption or termination of service of any employee for any purposes of the Plan or an Award, except that no Award may be made to an employee while he or she is absent on leave.

 

(f)                                   No Participant will have any rights as a stockholder with respect to any Common Shares subject to an Award made to him or her under the Plan prior to the date as of which he or she is actually recorded as the holder of such Common Shares upon the stock records of the Company.

 

(g)                                  The Committee may condition any Award or combination of Awards authorized under the Plan on the surrender or deferral by the Participant of his or her right to receive a cash bonus or other compensation otherwise payable by the Company or a Subsidiary to the Participant.

 

(h)                                 If any provision of the Plan is or becomes invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision will be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Committee, will be stricken and the remainder of the Plan will remain in full force and effect.

 

(i)                                     Each individual who is or has been a member of the Board or a committee appointed by the Board will be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid in settlement thereof with the Company’s approval, or paid in satisfaction of any judgment in any such action, suit or proceeding against the individual, provided the Company is given the opportunity, at its own expense, to handle and defend such claim, action, suit or proceeding before the individual undertakes to handle and defend such claim, action, suit or proceeding on his or her own behalf, unless such loss, cost, liability or expense is a result of such individual’s own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

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