Document:

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EXHIBIT 10X

COGNEX CORPORATION

SUMMARY OF ANNUAL BONUS PROGRAM

Cognex Corporation (the “Company”) provides selected employees, including the Company’s named
executive officers, with an opportunity to earn cash bonuses pursuant to an annual bonus program
(the “Bonus Program”). Each participant in the Bonus Program is assigned a target annual cash
bonus. Participants may earn their bonuses based on the achievement of certain financial goals
set forth in the Company’s annual budget related to the Company’s operating income (excluding
stock-based compensation expense) as a percentage of revenue, or “operating margin.” The
Compensation/Stock Option Committee of the Company’s Board of Directors establishes a minimum
level of operating margin, which must be achieved for any cash bonus to be paid to a participant.
Once the minimum threshold has been achieved, each participant’s eligible bonus is calculated as
follows:

	 	•	 	if the operating margin is above the minimum threshold but below the operating margin
target in the annual budget, each employee is eligible to receive a pro-rata portion of
his or her target bonus;
	 
	 	•	 	if the operating margin is equal to the operating margin set forth in the annual
budget, each employee is eligible to receive 100% of his or her target bonus; and
	 
	 	•	 	if the operating margin is above the operating margin set forth in the annual budget,
all exempt employees are eligible to receive an additional amount depending upon his or
her grade level and up to a maximum level approved by the Compensation/Stock Option
Committee.

The Compensation/Stock Option Committee approves the target bonus for each employee at director
level and above, which includes the Company’s named executive officers, and the amount by which
each individual can participate in any increase due to performance in excess of the budget target.
Once the operating margin criterion is met, the amount each employee at director level and above,
which includes the Company’s named executive officers, receives depends upon the achievement of
individual performance goals, which are established annually.

Under the Bonus Program, Robert J. Shillman, the Company’s President and Chief Executive Officer,
has the opportunity to earn 0-300% of his target bonus amount based on the achievement of the
specified performance goals; Eric A. Ceyrolle, the Company’s Executive Vice President of Worldwide
Sales and Marketing, has the opportunity to earn 0-200% of his target bonus amount based on the
achievement of the specified performance goals; and Richard A. Morin, the Company’s Senior Vice
President, Chief Financial Officer, and Treasurer, has the opportunity to earn 0-200% of his
target bonus amount based on the achievement of the specified performance goals.

The annual bonuses for the Company’s named executive officers are listed in the Summary
Compensation Table set forth in the Company’s proxy statement for its annual meeting of
shareholders.exv10wy

 

EXHIBIT 10Y

COGNEX CORPORATION

SUMMARY OF DIRECTOR COMPENSATION

Cognex Corporation (the “Company”) pays each Director (other than Robert J. Shillman and Patrick
A. Alias) an annual fee for his services on the Company’s Board of Directors and its committees,
plus additional amounts for participation in on-site and telephonic meetings. Each Director
receives annual cash compensation in the amount of $7,500, plus an additional $4,500 for
attendance at each on-site meeting and $500 for participation in each telephonic meeting. Each
Director who serves on the Compensation/Stock Option Committee of the Company’s Board of
Directors receives an annual fee of $2,000 and also receives $500 for each meeting attended on a
day other than that of a Board meeting. Each Director who serves on the Nominating Committee
receives an annual fee of $500. Each Director who serves on the Audit Committee of the
Company’s Board of Directors receives an annual fee of $4,000. The Chairman of the Audit
Committee receives an additional annual fee of $3,000. Each Audit Committee member also
receives $500 for each quarterly meeting to discuss the Company’s financial results and $1,500
for attendance in person at any additional meetings. Each Director who may serve on a special
committee of the Board of Directors receives $1,500 for each meeting attended.

All of the Directors (other than Dr. Shillman) also receive an annual option grant that have a
ten-year term and vest in four equal annual installments.

Dr. Shillman, who is the Company’s President and Chief Executive Officer, receives no additional
compensation to serve on the Company’s Board of Directors and Mr. Alias, who is an employee of
the Company, receives no additional cash compensation to serve on the Company’s Board of
Directors.exv10w22

 

Exhibit 10.22

BIOGEN, INC.

1985 NON-QUALIFIED STOCK OPTION PLAN

(As amended and restated through April 11, 2003, effective as of April 11, 2003)

I. PURPOSE OF THE PLAN

     The Plan is intended to encourage ownership of shares of the Common Stock by certain Employees
and Directors of the Company and its Affiliates and to provide an additional incentive to those
Employees and Directors to promote the success of the Company and its Affiliates.

II. DEFINITIONS

     1. “Affiliate” means (a) a corporation in respect of which the Company owns directly or
indirectly fifty percent (50%) or more of the voting securities thereof or which is otherwise
controlled by the Company; or (b) to the extent not inconsistent with Section 424 of the Code, an
unincorporated trade or business controlled by the Company which has elected, for federal income
tax purposes, to be either (i) classified as an association taxable as a corporation or (ii)
disregarded as an entity separate from its owner (as provided in Section 301.7701-3 of the federal
income tax regulations). For purposes of this definition, the Company shall be deemed to control
another entity if the Company possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such entity, whether through ownership of voting
securities, by contract or otherwise.

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

     3. “Committee” means the Stock and Option Plan Administration Committee of the Board of
Directors of the Company or, if such committee ceases to exist, the Board of Directors of the
Company or a committee thereof to which responsibility for administering the Plan shall have been
delegated.

     4. “Common Stock” means the common stock of the Company, par value $0.01 per share.

     5. “Company” means Biogen, Inc., a Massachusetts corporation.

     6. “Corporate Change in Control” shall be deemed to have occurred upon:

     (i) the acquisition of beneficial ownership (as determined pursuant to the
provisions of Rule 13d-3 under the Exchange Act) of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities by a person, entity or “group”, within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act (excluding for this purpose, the Company or its
Affiliates, or any employee benefit plan of the Company),

 

 

          pursuant to a transaction or series of related transactions which the Board of
Directors does not approve; or

     (ii) at such time as individuals who as of April 27, 2001 constitute the Board of
Directors (the “Incumbent Board”) cease for any reason to constitute a majority of the
Board of Directors of the Company, provided that any person becoming a director
subsequent to April 27, 2001 whose election or nomination for election by the Company’s
stockholders was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board, shall, for purposes of the Plan, be considered as though
such person were a member of the Incumbent Board (other than an individual whose initial
assumption of office is in connection with an actual or threatened election contest
related to the election of the directors of the Company, as such terms are used in Rule
14a-11 of Regulation 14A promulgated under the Exchange Act); or

     (iii) the occurrence of any other event which the Incumbent Board in its sole
discretion determines should be considered a Corporate Change of Control.

     7. “Corporate Transaction” shall mean the following unless and until the transaction becomes
a Corporate Change in Control:

     (i) a reorganization, recapitalization, merger or consolidation unless more than
fifty percent (50%) of the Company’s outstanding voting stock or the voting stock of the
corporation resulting from the transaction (or the parent of such corporation) is held
subsequent to the transaction by the persons who held the stock of the Company
immediately prior to such transaction, or

     (ii) the sale, transfer or other disposition of all or substantially all of the
assets of the Company to a successor in interest to the business of the Company.

     8. “Designated Employee” means an Employee or Director designated by the Committee, in its
sole discretion, as a “Designated Employee” for purposes of the Plan at any time prior to the
effective date of a Corporate Transaction.

     9. “Director” means a member of the Board of Directors of the Company or an Affiliate.

     10. “Employee” means an individual employed by the Company or an Affiliate as a common law
employee (determined under the regular personnel policies, practices and classifications of the
Company or the Affiliate, as applicable). An individual is not considered an Employee for purposes
of the Plan if the individual is classified as a consultant or contractor under the Company or an
Affiliate’s regular personnel classifications and practices, or if the individual is a party to an
agreement to provide services to the Company or an Affiliate without participating in the Plan,
notwithstanding that such individual may be treated as a common law employee for payroll tax,
coverage requirements under Section 410(b) of the Code, nondiscrimination requirements under
Section 401(a)(4) or other legal purposes.

 

 

     11. “Exchange Act” means the United States Securities Exchange Act of 1934, as amended from
time to time.

     12. “Fair Market Value” shall have the meaning set forth in Section VI.A.

     13. “For Cause” shall have the meaning set forth in Section VI.G.

     14. “Incumbent Board” shall have the meaning set forth in the definition of “Corporate Change
of Control.”

     15. “Involuntary Employment Action” shall have the meaning set forth in Section VI.R.

     16. “ISO Plan” shall have the meaning set forth in Article III.

     17. “Option” means a stock option granted under this Plan.

     18. “Option Certificate” means a certificate delivered to an Option holder by the Company
pursuant to the Plan, in such form as the Committee shall approve, which sets forth the terms and
conditions of an Option.

     19. “Plan” shall mean this 1985 Non-Qualified Stock Option Plan, as amended and/or restated
from time to time.

     20. “Retirement” shall have the meaning set forth in Section VI.J.

     21. “Securities Act” shall mean the United States Securities Act of 1933, as amended from
time to time.

III. SHARES SUBJECT TO THE PLAN

     The aggregate number of shares as to which Options may be granted from time to time shall be
54,208,000 shares of the Common Stock; provided, however that such aggregate number shall be
reduced by the number of shares which has been sold under, or may be sold pursuant to options
granted from time to time under, the Company’s 1982 Incentive Stock Option Plan (the “ISO Plan”),
to the same extent as if such sales had been made or options granted pursuant to the Plan.

     Notwithstanding the foregoing, on the first day of each fiscal year of the Company (beginning
in 2003) the number of shares as to which Options may be granted from time to time pursuant to the
Plan shall be increased by an amount equal to the lesser of (i) 3,695,000 shares or the equivalent
of such number of shares of the Common Stock after the Committee, in its sole discretion, has
interpreted the effect of any stock split, stock dividend, combination, recapitalization or similar
transaction in accordance with Article VIII of this Plan; or (ii) 2.5% of the number of outstanding
shares of the Common Stock on the last trading day of the immediately preceding fiscal year.
Notwithstanding the immediately preceding sentence, in the event that the stockholders of the
Company approve the adoption of the Company’s 2003

 

 

Omnibus Equity Plan at the 2003 annual meeting of the Company’s shareholders, the aggregate number
of shares of Common Stock that may be issued under this Plan shall be the number determined in
accordance with the first paragraph of this Article III.

     If any Option granted under the Plan or the ISO Plan ceases to be “outstanding”, in whole or
in part, other than by reason of the exercise of such Option, the shares which were subject to such
Option shall be available for the granting of other Options. Any Option shall be treated as
“outstanding” until such Option is exercised in full, terminates under the provisions of the Plan
or the ISO Plan, as the case may be, or expires by reason of lapse of time.

     Except as expressly provided above, the aggregate number of shares as to which Options may be
granted shall be subject to change only by means of an amendment adopted in accordance with Article
XI below, subject to the provisions of Article VIII.

IV. ADMINISTRATION OF THE PLAN

     The Plan shall be administered by the Committee. The membership of the Committee shall be
determined, and shall be subject to change without cause and without notice from time to time, by
the Board of Directors of the Company.

     The Committee is authorized to interpret the provisions of the Plan or of any Option and to
make all rules and determinations necessary or advisable for the administration of the Plan. The
interpretation and construction by the Committee of any provision of the Plan or of any Option
granted under it shall be final, unless otherwise determined by the Incumbent Board. The
Committee’s determinations under the Plan do not need to be uniform and may be made by it
selectively among persons who receive, or are eligible to receive, Options under the Plan (whether
or not such persons are similarly situated). Subject to the provisions of the Plan, Options may be
granted upon such terms and conditions as the Committee may prescribe.

V. ELIGIBILITY FOR PARTICIPATION

     The Committee shall determine which Employees and Directors shall be eligible to participate
in the Plan. Without limiting the generality of the foregoing, Options may be awarded for reasons
of performance, merit, promotion, bonus or upon new Employees joining the Company or any Affiliate.

     The Committee may grant to one or more such Employees or Directors one or more Options, and
shall designate the number of shares to be optioned under each Option so granted; provided,
however, that no Options shall be granted after December 31, 2011. In no event shall any Employee
be granted in any calendar year Options to purchase or receive more than 2,400,000 shares, as
adjusted pursuant to Article VIII, of the Common Stock pursuant to the Plan.

 

 

VI. TERMS AND CONDITIONS OF OPTIONS

     No Option issued pursuant to the Plan shall be an incentive stock option under Section 422 of
the Code. No purported grant of any Option shall be effective until such Option shall have been
approved by the Committee, except as otherwise provided in Section VI.N below. The Committee may
provide that Options be granted subject to such conditions as the Committee may deem appropriate,
including without limitation, subsequent approval by the shareholders of the Company of the Plan or
any amendments thereto. Each Option shall be subject to at least the following terms and
conditions:

     A. Option Price: Each Option Certificate shall state the Option price per share of the
Common Stock covered by such Option grant. Except as otherwise determined by the Committee, the
Option price per share for Options granted under the Plan shall be equal to the fair market value
per share of Common Stock (the “Fair Market Value”) on the date of grant of the Option; provided,
however, that in no event shall the Option price be less than the par value per share of Common
Stock. Fair Market Value shall be calculated as follows: (i) if the Common Stock is listed on a
national securities exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market
and sale prices are regularly reported for the Common Stock, then the Fair Market Value
shall be the arithmetic mean between the “high” and “low” sale prices for the Common Stock reported
on the applicable composite tape or other comparable reporting system on the date of grant, or if
the date of grant is not a trading day, on the most recent trading day immediately prior to the
date of grant; or (ii) if sale prices are not regularly reported for the Common Stock as described
in clause (i) above but bid and asked prices for the Common Stock are regularly reported, then the
Fair Market Value shall be the arithmetic mean between the closing or last bid and asked prices for
the Common Stock on the date of grant or, if the date of grant is not a trading day, on the most
recent trading day immediately prior to the date of grant; or (iii) if sale prices are not
regularly reported for the Common Stock as described in clause (i) or (ii) above, then the Fair
Market Value shall be such value as the Committee in good faith determines.

     B. Number of Shares: Each Option Certificate shall state the number of shares of the
Common Stock to which it pertains.

     C. Term of Option: Each Option Certificate shall state the term of the Option which
shall be ten (10) years from the date of the grant thereof, or at such earlier or later time as the
Committee shall expressly state in the Option Certificate.

     D. Date of Exercise: Each Option Certificate shall state the date or dates on which
the Option becomes exercisable, and may provide that the Option rights accrue or become exercisable
in installments over a period of months or years, or upon the attainment of stated goals or events
or through other circumstances or programs approved by the Committee. The Committee shall have the
right to accelerate the date of exercise of any installment of any Option.

     E. Cancellation and Repurchase Rights: An Option Certificate may stipulate that an
Option which becomes exercisable shall be subject to cancellation or that shares purchased upon the
exercise of such Option shall be subject to repurchase rights in favor of the Company. In such
event the Committee shall determine the date or dates, or event or events, upon which such

 

 

cancellation or repurchase rights shall become effective or shall lapse, as the case may be
and those provisions shall be set forth in the Option Certificate.

     F. Medium of Payment: The Option price shall be payable upon the exercise of the
Option. It shall be payable (a) in United States dollars in cash or by check, (b) if permitted by
the Committee, in shares of the Common Stock held by the Option holder for at least six months
having a fair market value (determined in the manner provided in Section VI.A above as of the date
of exercise) equal to the cash exercise price of the Option, (c) at the discretion of the
Committee, by delivery of the Option holder’s personal note, for full, partial or no recourse,
bearing interest payable not less than annually at market rate on the date of exercise and no less
than 100% of the applicable Federal rate, as defined in Section 1274(d) of the Code, with or
without the pledge of shares of the Common Stock as collateral, (d) at the discretion of the
Committee, in accordance with a cashless exercise program established with a securities brokerage
firm, or (e) at the discretion of the Committee, by any combination of (a), (b), (c) and (d) above.

     G. Termination of Employment: An Option holder who ceases (for any reason other than
death, total and permanent disability, Retirement or termination of employment For Cause) to be an
Employee or Director of the Company or of an Affiliate may exercise any Option granted to the
extent that the right to purchase shares thereunder has accrued on the date of such termination.
Except as set forth in the next sentence or as otherwise set forth in the Plan, such Option shall
be exercisable only within three (3) months after such date of termination, or, if earlier, within
the originally prescribed term of the Option, unless the Committee shall set forth a different
period in the Option Certificate. Notwithstanding anything in this Plan to the contrary, unless a
different time period is specified in the Option Certificate, an Option holder (or permitted
transferee of such individual) who ceases (for any reason other than For Cause) to be a member of
the Board of Directors of the Company after the completion of at least six (6) full years of
services on the Board may exercise any Option granted within the originally prescribed term of the
Option but solely to the extent the right to purchase shares thereunder has accrued on the date of
such termination. For purposes of the Plan, employment shall not be deemed terminated by reason of
a transfer to another employer which is the Company or an Affiliate. If any Option is not
exercised following the Option holder’s termination within the time specified, the Option shall
terminate and the shares covered by such Option shall revert to the Plan.

     An Option holder whose employment with the Company or an Affiliate is terminated For Cause or
a Director who is removed from the Board of Directors For Cause shall forthwith immediately upon
notice of such termination cease to have any right to exercise any Option, and the Option shall
terminate and the shares covered by such Option shall revert to the Plan. For purposes of the Plan,
termination “For Cause” shall be deemed to include (and is not limited to) dishonesty with respect
to the Company or any Affiliate, insubordination, substantial malfeasance or non-feasance of duty,
unauthorized disclosure of confidential information, breach by an Option holder of any provision of
any employment, nondisclosure, non-competition or similar agreement between the Option holder and
the Company or any Affiliate, and conduct substantially prejudicial to the business of the Company
or an Affiliate. The determination of the Committee as to the existence of cause shall be
conclusive. Any definition in an agreement between an Option holder and the Company or an
Affiliate, which contains a conflicting

 

 

definition of For Cause and which is in effect at the time of such termination, shall
supersede the definition in the Plan with respect to the Option holder.

     An Option holder to whom an Option has been granted under the Plan who is absent from work
with the Company or with an Affiliate because of temporary disability, or who is on a permitted
leave of absence for any purpose, shall not, during the period of any such absence, be deemed by
virtue of such absence alone, to have terminated his employment with the Company or with an
Affiliate except as the Committee may otherwise expressly provide in the Option Certificate.

     H. Total and Permanent Disability: If an Option holder ceases to be an Employee or
Director of the Company or of an Affiliate by reason of total and permanent disability, as
determined by the Committee, any Option held by him or her on the date of disability shall be
exercisable as to all or any part of the shares subject to the Option, all of which shares shall be
fully vested as of the date of such disability. A disabled Option holder may exercise such Option
only within a period of one (1) year after the date as of which the Committee determines that he or
she became disabled or within such different period as may be determined by the Committee and set
forth in the Option Certificate, or, if earlier, within the originally prescribed term of the
Option. If any Option is not exercised following the Option holder’s total and permanent disability
within the time specified, the Option shall terminate and the shares covered by such Option shall
revert to the Plan.

     I. Death: If an Option holder dies while the he is an Employee or Director of the
Company or of an Affiliate, any Option held by him at the date of death shall be exercisable as to
all or any part of the shares subject to the Option, all of which shares shall be fully vested as
of the date of the Option holder’s death. A deceased Option holder’s legal representatives or one
who acquires the Option by will or by the laws of descent and distribution may exercise such Option
only within a period of one (1) year after the date of death or within such different period as may
be determined by the Committee and set forth in the Option Certificate, or, if earlier, within the
originally prescribed term of the Option. If any Option is not exercised following the Option
holder’s death within the time specified, the Option shall terminate and the shares covered by such
Option shall revert to the Plan.

     J. Retirement: Unless otherwise set forth in an Option Certificate, immediately upon
an Option holder’s Retirement, such individual’s then unvested Options, including those held by a
permitted transferee of such individual, shall automatically accelerate and become fully vested for
fifty percent (50%) of the number of shares covered by such unvested Options and for an additional
ten percent (10%) of the number of shares covered by such unvested Options for every year of
employment by the Company or any of its Affiliates beyond ten (10) years, up to the remaining
number of unvested Options. Upon Retirement, a retired Option holder (or permitted transferee of
such individual) may exercise any then outstanding Options solely to the extent the right to
purchase shares has accrued or has been accelerated only within a period of three (3) years after
the date of Retirement or within such different period as may be determined by the Committee and
set forth in the Option Certificate, or, if earlier, within the originally prescribed term of the
Option. If any Option is not exercised following the Option holder’s Retirement within the time
specified, the Option shall terminate and the shares covered by such Option shall

 

 

revert to the Plan. For purposes of the Plan, the term “Retirement” as to any Employee or
Director of the Company or any of its Affiliates shall mean such person’s leaving the employment of
the Company and its Affiliates after reaching age 55 with ten (10) years of service with the
Company or its Affiliates, but not including pursuant to any termination For Cause or pursuant to
any termination for insufficient performance, as determined by the Company.

     The provisions of this Section VI.J shall be retroactive and shall apply to all outstanding
Options granted under the Plan, regardless of the date of grant.

     K. Exercise of Option and Issue of Shares: Options shall be exercised by giving
written notice to the Company or its designee, together with provision for payment of the Option
price in accordance with Section VI.F. Such written notice shall be signed by the person exercising
the Option, shall state the number of shares of the Common Stock with respect to which the Option
is being exercised, and shall contain any warranty required by Article VII of the Plan. The
issuance of the shares of the Common Stock upon exercise of the Option may be delayed by the
Company if any law or regulation requires the Company to take any action with respect to the shares
prior to the issuance thereof. Without limiting the generality of the foregoing, nothing contained
herein shall be deemed to require the Company to issue any shares of the Common Stock if prohibited
by law or applicable regulation.

     The shares of the Common Stock shall, upon issuance, be paid-up, non-assessable shares.

     L. Assignability and Transferability of Option: By its terms, an Option granted to an
Option holder shall not be transferable by such Option holder other than (i) by will or by the laws
of descent and distribution, or (ii) pursuant to a qualified domestic relations order, as defined
by the Code or Title 1 of the Employee Retirement Income Security Act or the rules thereunder, or
(iii) as otherwise determined by the Committee. The designation of a beneficiary of an Option by
an Option holder shall not be deemed a transfer prohibited by this Section. Except as provided in
the preceding sentence, an Option shall be exercisable, during an Option holder’s lifetime, only by
the Option holder (or by his or her legal representative) and shall not be assigned, pledged, or
hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to
execution, attachment or similar process. Any attempted transfer, assignment, pledge,
hypothecation, or other disposition of any Option or of any rights granted thereunder contrary to
the provisions of this Section, or the levy of any attachment or similar process upon an Option or
other such rights, shall be null and void.

     M. Other Provisions: The Option Certificates shall be subject to such other terms and
conditions, including, without limitation, restrictions upon the exercise of the Option, as the
Committee shall deem advisable.

     N. Non-Employee Director Options: Each Director of the Company who is not an Employee
of the Company or any of its Affiliates and who is appointed or elected to the Board of Directors
of the Company on or after February 7, 2003, upon first being appointed or elected to the Board
shall be automatically granted an Option to purchase 20,000 shares of Common Stock (each, an
“Initial Grant”)

 

 

     Each Director of the Company who is not an Employee of the Company or any of its Affiliates
shall be automatically granted an Option to purchase an additional 10,000 shares of Common Stock
(each a “Subsequent Grant”); provided that on the date of grant such person is still a member of
the Board of Directors of the Company. The date of grant of each Subsequent Grant to any Director
appointed or elected to the Board of Directors of the Company on or after February 7, 2003 shall be
the anniversary date of such Director’s initial appointment or election to the Board. The date of
grant of each Subsequent Grant to any Director appointed or elected to the Board of Directors of
the Company prior to February 7, 2003 shall be the anniversary date of such Director’s most recent
prior Option grant under the Plan.

     The Initial Grant shall be exercisable as to 8,000 of the shares subject thereto upon
completion of one full year of service on the Board of Directors of the Company after the date of
grant, and as to an additional 6,000 shares upon completion of the second full year of such
service, and as to the remaining 6,000 shares upon completion of the third full year of such
service. Each Subsequent Grant shall be exercisable as to 4,000 of the shares subject thereto upon
completion of one full year of service on the Board of Directors of the Company after the date of
grant, and as to an additional 3,000 shares upon completion of the second full year of such
service, and as to the remaining 3,000 shares upon completion of the third full year of such
service.

     Each Option granted under this Section VI.N shall have an exercise price equal to the fair
market value per share of Common Stock on the date of grant, as determined under Section VI.A.
above, and a term of ten (10) years, unless earlier terminated pursuant to the other provisions of
the Plan or the terms of the grant. Section VI.G, which cancels the Options of any Option holder
determined by the Committee to have been terminated For Cause, shall not apply to the awards under
this Section VI.N.

     O. Tax Withholding: In the event that any federal, state, or local income taxes,
employment taxes, Federal Insurance Contributions Act withholdings or other amounts are required by
applicable law or governmental regulation to be withheld from the Option holder’s salary in
connection with the exercise of an Option, the Option holder shall advance in cash to the Company,
or to any Affiliate of the Company which employs or employed the Option holder, the amount of such
withholdings unless a different withholding arrangement, including the use of shares of the Common
Stock, is authorized by the Committee (and permitted by law), provided, however, that with respect
to persons subject to Section 16 of the Exchange Act, any such withholding arrangement involving
use of shares shall be in compliance with any applicable provisions of Rule 16b-3 promulgated under
Section 16 of the Exchange Act. If the Committee allows withholding through use of shares of the
Common Stock, it shall be only to the statutory minimum amount. For purposes hereof, the fair
market value of the shares withheld for purposes of payroll withholding shall be determined in the
manner provided in Section VI.A. as of the date of exercise. If the fair market value of the shares
withheld is less than the amount of payroll withholdings required, the Option holder may be
required to advance the difference in cash to the Company or the Affiliate employer.

 

 

     P. Reload Options: The Committee may authorize reload Options (“Reload Options”) to
purchase for cash or shares a number of shares of the Common Stock. The number of Reload Options
shall equal (i) the number of shares of the Common Stock used to exercise the underlying Options
and (ii) to the extent authorized by the Committee, the number of shares of the Common Stock used
to satisfy any tax withholding requirement incident to the exercise of the underlying Options. The
grant of a Reload Option will become effective upon the exercise of underlying Options through the
use of shares of the Common Stock held by the option holder for at least 6 months. Reload Options
must be evidenced in Option Certificates or agreements. The Option price per share of the Common
Stock deliverable upon the exercise of a Reload Option shall be the Fair Market Value on the date
the grant of the Reload Option becomes effective. The term of each Reload Option shall be equal to
the remaining option term of the underlying Option. No additional Reload Options shall be granted
to Option holders when Options and/or Reload Options are exercised pursuant to the terms of the
Plan following termination of the Option holder’s employment or on account of death or total and
permanent disability. All other provisions of the Plan with respect to Options shall apply equally
to Reload Options.

     Q. Rights as a Shareholder: No Option holder shall have rights as a shareholder with
respect to any shares of the Common Stock covered by such Option except as to such shares as have
been registered in the Company’s share register in the name of such person upon the due exercise of
the Option.

     R. Effect of Corporate Transaction: In the event of a Corporate Transaction, the
Committee shall, prior to the effective date of the Corporate Transaction, as to each outstanding
Option under the Plan either (i) make appropriate provisions for the Options to be assumed by the
successor corporation or its parent or be replaced with a comparable options to purchase shares of
the capital stock of the successor corporation or its parent; or (ii) upon written notice to the
Option holders provide that all Options must be exercised and the Plan will terminate (all Options
having been made fully exercisable as set forth below in this Section VI.R); or (iii) terminate all
Options in exchange for a cash payment equal to the excess of the then aggregate Fair Market Value
of the shares subject to such Options (all Options having been made fully exercisable as set forth
below in this Section VI.R) over the aggregate Option price thereof. The determination of
comparability under this Section shall be made by the Committee and its determination shall be
final, binding and conclusive.

     Each outstanding Option under the Plan which is assumed in connection with a Corporate
Transaction or is otherwise to continue in effect shall be appropriately adjusted, immediately
after such Corporate Transaction, to apply and pertain to the number and class of securities which
would have been issued, in consummation of such Corporate Transaction, to an actual holder of the
same number of shares of the Common Stock as are subject to such Option immediately prior to such
Corporate Transaction. Appropriate adjustments shall also be made to the Option price payable per
share, provided the aggregate Option price payable for such securities shall remain the same. In
addition, the class and number of securities available for issuance under the Plan on both an
aggregate and per participant basis shall be appropriately adjusted to reflect the effect of the
Corporate Transaction upon the Company’s capital structure.

 

 

     If at any time within two (2) years of the effective date of a Corporate Transaction there is
an Involuntary Employment Action with respect to any Designated Employee, each then outstanding
Option assumed or replaced under this Section and held by such Designated Employee (or a permitted
transferee of such person) shall, upon the occurrence of such Involuntary Employment Action,
automatically accelerate so that each such Option shall immediately become exercisable for the
total number of shares of Common Stock at the time subject to such Option, as assumed or replaced,
and may be exercised for all or any portion of those shares to the extent not previously exercised.
Upon the occurrence of an Involuntary Employment Action with respect to a Designated Employee, any
outstanding Options held by such Designated Employee (and his or her permitted transferees) shall
be exercisable within one (1) year of the Involuntary Employment Action or, if earlier, within the
originally prescribed term of the Option. An “Involuntary Employment Action” as to an Designated
Employee shall mean the involuntary termination of the Designated Employee’s employment with the
Company or an Affiliate other than For Cause, or the termination by the Designated Employee of his
employment with the Company and its Affiliates upon the occurrence, without the Option holder’s
express written consent, of any of the following circumstances unless such circumstances are
corrected (provided such circumstances are capable of correction): (i) any adverse and material
alteration and diminution in the Option holder’s position, title or responsibilities (other than a
mere change in title or reporting relationship) as they existed immediately prior to the Corporate
Transaction or as the same may be increased from time to time thereafter, (ii) a reduction of the
Option holder’s annual base salary or targeted bonus opportunity, in each case as in effect on the
date prior to the Corporate Transaction or as the same may be increased from time to time
thereafter, or (iii) relocation of the offices at which the Option holder is employed which
increases the Option holder’s daily commute by more than 100 miles on a round trip basis.

     In the event the Company terminates the Plan or elects to cash out the Options in accordance
with clauses (ii) and (iii) of the first paragraph of this Section VI.R, then the exercisability of
each Option outstanding under the Plan shall be automatically accelerated so that each such Option
shall immediately prior to such Corporate Transaction, become exercisable for the full number of
shares of the Common Stock purchasable under such Option to the extent not previously exercised and
may be exercised prior to such Corporate Transaction for all or any portion of such shares. The
Committee shall, in its discretion, determine the timing and mechanics required to implement the
foregoing sentence.

     S. Acceleration Upon Corporate Change in Control: In the event of a Corporate Change
in Control then the exercisability of each Option outstanding under the Plan shall be automatically
accelerated so that each such Option shall immediately prior to such Corporate Change in Control,
become exercisable for the full number of shares of the Common Stock purchasable under such Option
to the extent not previously exercised and may be exercised for all or any portion of such shares
consistent with Article VIII within the originally prescribed term of the Option. The Committee
shall, in its discretion, determine the timing and mechanics required to implement the foregoing
sentence. However, an outstanding Option under the Plan shall not be accelerated under this Section
if and to the extent one or more limitations imposed by the Committee at the time of grant preclude
such acceleration upon a Corporate Change in Control.

 

 

     T. The provisions of Sections VI.R and VI.S shall be retroactive and shall apply to all
Options granted under the Plan, regardless of the date of grant.

     U. The grant of Options under the Plan shall in no way affect the right of the Company to
adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

VII. PURCHASE FOR INVESTMENT

     If and to the extent that the issuance of shares pursuant to the exercise of Options is deemed
by the Company to be subject to the Securities Act, or to the securities law of any other
jurisdiction, the Company shall be under no obligation to issue shares covered by such exercise
unless the person or persons who exercises or who exercise such Option shall make such warranty or
take such action as may be required by any applicable securities law of any applicable jurisdiction
and shall, in the case of the applicability of the Securities Act, in the absence of an effective
registration under the Securities Act with respect to such shares, warrant to the Company, at the
time of such exercise, that such person is or that they are acquiring the shares to be issued to
such person or to them, pursuant to such exercise of the Option, for investment and not with a view
to, or for sale in connection with, the distribution of any such shares; and in such events the
person or persons acquiring such shares shall be bound by the provisions of a legend endorsed upon
any share certificates expressing the requirements of any applicable non-United States securities
law, or, in cases deemed governed by the Securities Act, substantially the following legend, which
shall be endorsed upon the certificate or certificates evidencing the shares issued by the Company
pursuant to such exercise:

“The shares have not been registered under the securities laws of any country,
including the United States Securities Act of 1933, as amended, and the Company may
refuse to permit the sale or transfer of all or any of the shares until (1) the
Company has received an opinion of counsel satisfactory to the Company that any such
transfer is exempt from registration under all applicable securities laws or (2) in
the case of sales or transfers to which the United States Securities Act of 1933, as
amended, is applicable, unless a registration statement with respect to such shares
shall be effective under such Act, as amended.”

Without limiting the generality of the foregoing, the Company may delay issuance of the shares
until completion of any action or obtaining of any consent which the Company deems necessary under
any applicable law (including without limitation state securities or “blue sky” laws).

VIII. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION

     In the event that outstanding shares of the Common Stock are changed into or exchanged for a
different number or kind of shares or other securities of the Company or of another corporation by
reason of any reorganization, merger, consolidation, recapitalization, reclassification, change in
par value, stock split-up, combination of shares or dividend payable

 

 

in capital stock, or the like except in a Corporate Transaction for which such adjustments are set
forth in Section VI.R above, appropriate adjustment shall be made in the number and kind of shares
for the purchase of which Options may be granted under the Plan, including Options to be granted
pursuant to Section VI.N above, and, in addition, appropriate adjustment shall be made in the
number and kind of shares and in the Option price per share subject to outstanding Options so that
each Option holder shall be in a position equivalent to the position the Option holder would have
been in had the Option holder exercised the Options immediately prior to the applicable event.

IX. DISSOLUTION OR LIQUIDATION OF THE COMPANY

     Upon the dissolution or liquidation of the Company other than in connection with transactions
to which the preceding Article VIII is applicable, all Options granted hereunder shall terminate
and become null and void; provided, however, that if the rights hereunder of an Option holder or
one who acquired an Option by will or by the laws of descent and distribution have not otherwise
terminated and expired, the Option holder or such person shall have the right immediately prior to
such dissolution or liquidation to exercise any Option granted hereunder to the extent that the
right to purchase shares thereunder has accrued as of the date of exercise immediately prior to
such dissolution or liquidation.

X. TERMINATION OF THE PLAN

     Unless the Committee shall decide to reduce or, subject to shareholder approval, if required
under Article XI, to extend the duration of the Plan, the Plan shall terminate on December 31,
2011. Termination of the Plan shall not affect any Options granted or any Option Certificates or
agreements executed prior to the effective date of termination.

XI. AMENDMENT OF THE PLAN

     The Plan may be amended by the Committee or the Board of Directors of the Company; provided,
however, that if the scope of any amendment is such as to require shareholder approval then such
amendment shall require approval by the shareholders. Any amendment shall not affect any Options
theretofore granted and any Option Certificates or agreements theretofore executed by the Company
and any Option holder unless such amendment shall expressly so provide. No amendment shall
adversely affect any Option holder with respect to an outstanding Option without the written
consent of such Option holder. With the consent of the Option holder affected, the Committee may
amend any outstanding Option Certificate or agreement in a manner not inconsistent with the Plan,
including, without limitation, to accelerate the date of exercise of any installment of any Option.

XII. EMPLOYMENT RELATIONSHIP

     Nothing herein contained shall be deemed to prevent the Company or an Affiliate from
terminating the employment of any Employee, nor to prevent any Employee from terminating his
employment with the Company or an Affiliate.

 

 

XIII. EFFECTIVE DATE

          The Plan first became effective on January 2, 1985.

XIV GOVERNING LAW

          The Plan shall be construed and enforced in accordance with the law of The Commonwealth of
Massachusetts.

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