Document:

Document

Exhibit 10.30

FIRST AMENDMENT TO
PERSONAL EMPLOYMENT AGREEMENT
    This First Amendment to Personal Employment Agreement (this “Amendment”) is entered into on March 15, 2022 (the “Effective Date”), by and between by and between R2Net Israel Ltd. (Registration Number 51-395749-8) (the “Company”) of 10 Hasadnaot Street, Herzeliya, Israel, and Oded Edelman (ID No. 022707145) (the “Executive”) of 8 Yizhar Street, Ramat-Hashron, Israel.
WHEREAS, the Company and Executive are party to that Personal Employment Agreement, effective February 5, 2018 (the “Agreement”); and
WHEREAS, the Company and Executive desire to amend certain terms of the Agreement on the terms and conditions set forth in this Amendment, effective as of the Effective Date.
NOW, THEREFORE, it has accordingly been warranted, provided and agreed by the parties as follows:
1.    Definitions.  Capitalized terms used but not otherwise defined in this Amendment shall have the meanings ascribed to them in the Agreement.
2.    Amendment of the Agreement. The Agreement shall be amended as follows:
a.    Section 1 is hereby amended by adding the following subsections:
1.6    For purposes of this Agreement “Change of Control” means the occurrence of any of the following events: (i) any consolidation, amalgamation, or merger of Purchaser Parent with or into any other Person (as defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended), or any other corporate reorganization, business combination, transaction or transfer of securities of Purchaser Parent by its stockholders, or a series of transactions (including the acquisitions of capital stock of Purchaser Parent), whether or not Purchaser Parent is a party thereto, in which the stockholders of Purchaser Parent immediately prior to such consolidation, merger, reorganization, business combination or transaction, collectively have beneficial ownership (as defined in Rule 13d-3 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended), directly or indirectly, of capital stock representing directly, or indirectly through one or more entities, less than fifty (50%) of the equity (measured by economic value or voting power (by contract, share ownership or otherwise) of Purchaser Parent or other surviving entity immediately after such consolidation, merger, reorganization, business combination or transaction); (ii) the sale or disposition, in one transaction or a series of related transactions, of all or substantially all of the assets of Purchaser Parent to any Person; (iii) during any period of twelve consecutive months, individuals who as of the beginning of such period constituted the entire Board (together with any new directors whose election by such Board or nomination for election by Purchaser Parent’s shareholders was approved by a vote of at least two-thirds of the directors of Purchaser Parent, then still in office, who were directors at the beginning of the period or whose election or nomination for election was previously so approved) cease for any reason to constitute a 

majority thereof; or (iv) approval by the shareholders of Purchaser Parent of a complete liquidation or dissolution of Purchaser Parent.
1.7     For purposes of this Agreement, “Good Reason” shall mean if any of the following has occurred within one year following a Change of Control and without the Executive’s prior written consent: (A) a material reduction in Executive’s target or maximum potential annual compensation opportunities as set forth in Exhibit A; (B) a material diminution in Executive’s authority, duties or responsibilities as of the date of this Agreement; (C) any requirement that the Executive relocate Executive’s principal place of employment by more than fifty miles from Executive’s then-current primary office location and from Executive’s principal residence in any such location, provided, that, such a relocation shall not include: (i) the Executive’s travel for business in the course of performing the Executive’s duties for the Company, (ii) the Executive working remotely or (iii) the Company requiring the Executive to report to the office within the Executive’s relocated principal place of employment (instead of working remotely) at the Company’s expense for three days or less each week; or (D) a material breach by the Company of its payment obligations to the Executive as set forth in this Agreement, which breach remains uncured for thirty (30) days following written notice thereof provided by the Executive to the Company; provided that, no event described in clauses (A) – (D) shall constitute Good Reason unless (i) Executive has given the Company written notice setting forth the conduct of the Company that is alleged to constitute Good Reason within ninety (90) days following the first occurrence of such event, and (ii) Executive has provided the Company at least thirty (30) days following the date on which such notice is provided to cure such conduct and the Company has failed to do so.
1.8    For purposes of this Agreement, “LTIP” means the Purchaser Parent’s Amended and Restated 2018 Omnibus Incentive Plan, together with the Israeli Subplan of the Purchaser Parent, or other long-term incentive plan then in effect.
1.9    For purposes of this Agreement, “STIP Bonus” means an annual cash bonus award in accordance with the annual short-term incentive plan (“STIP”) then in effect for executive officers of the Purchaser Parent and its subsidiaries, as approved by the Board of Directors of the Purchaser Parent or the Human Capital Management and Compensation Committee of the Board of Directors of the Purchaser Parent (the “Committee”) or its designee.
1.10    For purposes of this Agreement, the “STIP Payment Period” means the period between March 10th and May 31st following the end of the fiscal year to which such STIP Bonus relates, or such other period of time as may be required by applicable law.
b.    Section 5.2 is hereby amended and restated in its entirety as follows:
5.2    Upon termination for any reason, the Company will pay to Executive (or his beneficiary or estate) (i) any unpaid Salary earned through the date of termination, payable in a lump sum; (ii) any reasonable expenses incurred in 

accordance with Company policy but not reimbursed prior to such date of termination;  (iii) Executive’s vested benefits as of the date of termination (payable when they are otherwise due) (if any), in accordance with the then-applicable terms of any then-applicable plan, program, agreement or other arrangement of the Company in which Executive is eligible to participate; and (iv) if the Executive’s employment terminates after the end of the fiscal year, but before the STIP Bonus payment date, the amount equal to the STIP Bonus the Executive would have received for the completed fiscal year had the Executive remained employed by the Company (the rights described in clauses (i), (ii), (iii) and (iv) are collectively referred to as the “Accrued Obligations”).
5.2.1    Termination Due to Death or Disability. Executive’s employment shall terminate automatically upon Executive’s death. Subject to (and to the full extent permitted under) applicable law, the Company may terminate Executive’s employment immediately upon the occurrence of a Disability.  Upon Executive’s death, or in the event that Executive’s employment is terminated due to Executive’s Disability, Executive or Executive’s estate or Executive’s beneficiaries, as the case may be, shall be entitled to the Accrued Obligations and payment in lieu of the Notice Period set forth on Exhibit A attached (as applicable to death or Disability) which will be due and payable, as per applicable law.   In addition, the Executive (or his estate or representative) will be paid any applicable STIP Bonus payments, which shall be calculated as described in Section 10.2 below.  In addition, the Company will release the Policy and Study Fund.

5.2.2    Termination by the Company for Cause. The Company may terminate Executive’s employment at any time for Cause, effective immediately upon Executive’s receipt of written Notice of Termination and the Executive shall receive all Accrued Obligations payable as of the date of termination. 

5.2.3    Termination by the Company without Cause. The Company may terminate Executive’s employment at any time without Cause by delivering a notice of termination to the Executive. In the event that Executive’s employment is terminated by the Company without Cause, the Company may take one of two actions: (1) the Company may continue to pay Executive his Salary and all other social benefits as well as bonuses and other incentives which Executive earns pursuant to this Agreement and applicable law, in each case, for the duration of the Notice Period, and Executive will continue to work on a normal schedule for the duration of the Notice Period; or (2) in lieu of requiring Executive to provide services throughout the Notice Period, the Company may elect, at the Company’s sole discretion, to terminate the Executive’s employment immediately or at any time during the Notice Period, provided that in such event, even though Executive is not actively  employed during the Notice Period, Executive shall be entitled to receive from the Company a lump sum cash payment equal to Executive’s Salary and the employer contribution to the social contributions and other mandatory rights for any such portion of the remaining Notice Period as though the Executive continued to be actively employed by the Company (“Payment in Lieu of Notice”). Upon a termination without Cause, (a) the 

Executive will be paid any applicable STIP Bonus payments, which shall be calculated as described in Section 10.2 below; and (b) for each outstanding award of Executive that remains subject to vesting under the LTIP as of the termination date: (i) any such performance-based award shall vest based on actual performance, as of the date of determination by the Committee after the end of the completed performance cycle for such award of the level of such performance achieved, and be pro-rated for the number of calendar days that the Executive was employed during the maximum vesting period applicable to the award, and shall be payable in accordance with the LTIP and applicable award agreement; and (ii) any such time-based award shall vest on the Termination Date in an amount that is pro-rated for the number of calendar days that the Executive was employed during the vesting period, and shall be payable in accordance with the LTIP and applicable award agreement. In addition, the Company will release the Policy and Study Fund.   

5.2.4    Termination (Resignation) by Executive without Good Reason. Executive may terminate (resign) Executive’s employment for any reason by providing the Company a notice of termination; provided that the Company may elect to waive all or any portion of the Notice Period contained therein, subject to payment in lieu thereof. In the event that the Executive terminates (resigns) Executive’s employment with the Company, for any reason, without the delivery of a written notice of termination, or without the completion of the Notice Period or any part thereof, the Company will be entitled to deduct from any sums that it may owe the Executive an amount equal to the Salary that would have been paid to the Executive during the Notice Period, had he worked during such period. Executive’s consent to said deduction is in accordance with the provisions of the Wage Protection Law, 1958. In addition, the Executive shall be entitled to the Accrued Obligations and the Company will release the Policy and Study Fund. 

5.2.5    Termination (Resignation) by Executive for Good Reason. The Executive may terminate his employment for Good Reason by delivery of a notice of termination.  If Executive’s employment is terminated by Executive for Good Reason, the Company shall pay the Executive the Accrued Obligations and the employer contribution to the social contributions and other mandatory rights through the end of the Notice Period. Upon termination of employment pursuant to this section, (a) the Executive will also be paid a prorated STIP Bonus which shall be calculated as described in Section 10.2 below; and (b) each outstanding award that remains subject to vesting under the LTIP as of the termination date shall be paid in accordance with the terms and on the timing applicable to such termination event in the LTIP and applicable award agreements and, if the applicable award agreement does not expressly provide for any payment upon a resignation by the Executive for Good Reason within one year following a Change of Control, such resignation shall entitle the Executive to the same payment that the Executive would be entitled to receive upon a termination by the Company without Cause following a Change of Control under the LTIP and applicable award agreement. In addition, the Company will release the Policy and Study Fund.

c.    Section 10.2 is hereby amended and restated in its entirety as follows:
10.2    Short-Term Incentive Plan. Executive shall be eligible to participate in the STIP as set forth in Exhibit A and as determined by the Committee, for so long as the same may be in effect. The STIP is a discretionary plan and is subject to change; provided that the target and maximum percentages of base salary set forth in Exhibit A shall not be reduced unless there is a comparable reduction for similarly situated employees. In the event of (i) termination due to Executive’s death or Disability, in accordance with subsection 5.2.1; or (ii) termination by the Company without Cause, in accordance with subsection 5.2.3 above; or (iii) resignation of the Executive for Good Reason, in accordance with subsection 5.2.5 above the Executive shall be entitled to a pro rata portion of the STIP Bonus (if any) for which the Executive would have been eligible had the Executive remained employed with the Company through the end of the fiscal year in which employment terminated, based on actual performance and pro-rated for the number of calendar days during the fiscal year during which the Executive was employed, payable in a lump sum during the STIP Payment Period.

It is hereby agreed by the parties that the STIP Bonus, if and to the extent granted, includes payments for severance as detailed in section 28 of the Severance Law and that the Executive and the Company will submit an application for the Ministry of Labor, Social Affairs and Social Services to apply Section 28 of the Severance Law to any STIP Bonus payment paid to the Executive according to this Agreement.

Due to its nature, it is hereby explicitly agreed that the STIP Bonus shall not be considered as part of the Executive’s salary for any purpose whatsoever, including without limitation for the purpose of calculating his social rights and benefits.

d.    Section 10.3 is hereby amended and restated in its entirety as follows:
10.3    Long-Term Incentive Plan. Executive shall be eligible for annual consideration for long-term awards (as determined in the sole discretion of the Committee) made in accordance with the terms of the LTIP. The grant of each such award shall be subject to the Executive’s execution of an award agreement in substantially the form adopted by the Committee in connection with such grant, and each such award shall be governed by the terms and conditions of the applicable award agreement, the LTIP and, to the extent applicable, Sections 5.2.3 and 5.2.5 of this Agreement. The Executive shall be solely responsible for and shall bear all tax and/or other mandatory payments and/or consequences arising from the grant and/or settlement of the Awards and/or the transfer or sale of shares in connection therewith. 
e.    Exhibit A of the Agreement is hereby amended by replacing the rows entitled “Determined Salary” and “Notice Period” with the following:

						
	Determined Salary	NIS 42,400 (gross) and not less than 8 times the minimum wage as shall be in effect from time to time.
	Notice Period	Termination without Cause – 12 months
Termination with Cause – Zero
Termination for Death – 6 Months
Termination for Disability – 30 days

Resignation without Good Reason (for whatever reason) – 30 days
Resignation for Good Reason – 12 months

3.    Effect on Agreement; Entire Agreement. Except as expressly provided in this Amendment, all the terms and provisions of the Agreement are and will remain in full force and effect and are hereby ratified and confirmed by the parties. On and after the Effective Date, each reference in the Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof,” “herein,” or words of like import will mean and be a reference to the Agreement as amended by this Amendment. In the event of a conflict or inconsistency between a provision of the Agreement and this Amendment, the provisions of this Amendment shall control. The Agreement, as amended hereby, shall be binding upon the parties. All prior negotiations, agreements, and understandings with respect to the subject matter hereof are superseded hereby.
4.    Counterparts. This Amendment may be executed electronically and in counterparts, each of which is deemed an original, but all of which constitute one and the same agreement.

[signature page follows]

IN WITNESS WHEREOF THE PARTIES HAVE SET THEIR HANDS HERETO AS OF THE DATE FIRST WRITTEN ABOVE:

R2Net Israel Ltd.                                 Oded Edelman
Signature:      /s/ Joan Hilson                       Signature:      /s/ Oded Edelman        
Name: Joan Hilson
Title: Director

[Personal Employment Agreement – First Amendment]EX-10.28

   

  Exhibit 10.28

  VIRACTA THERAPEUTICS, INC.

  EXECUTIVE INCENTIVE COMPENSATION PLAN

  1.Purposes of the Plan.  The Plan is intended to increase stockholder value and the success of the Company by motivating Employees to (a) perform to the best of their abilities and (b) achieve the Company’s objectives.

  2.Definitions.

  2.1     “Actual Award” means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period, subject to the authority of the Administrator (as defined in Section 3) under Section 4.4.

  2.2     “Affiliate” means any corporation or other entity (including, but not limited to, partnerships and joint ventures) that, from time to time and at the time of any determination, directly or indirectly, is in control of or is controlled by the Company.

  2.3     “Board” means the Board of Directors of the Company.

  2.4     “Bonus Pool” means the pool of funds available for distribution to Participants.  Subject to the terms of the Plan, the Administrator establishes the Bonus Pool for each Performance Period.

  2.5     “Code” means the U.S.  Internal Revenue Code of 1986, as amended.  Reference to a specific section of the Code or regulation thereunder will include such section or regulation, any valid regulation or formal guidance of general or direct applicability promulgated under such section or regulation, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or regulation.

  2.6     “Committee” means a committee appointed by the Board (pursuant to Section 3) to administer the Plan.

  2.7     “Company” means Viracta Therapeutics, Inc., a Delaware corporation, or any successor thereto.

  2.8     “Company Group” means the Company and any Parents, Subsidiaries, and Affiliates.

  2.9     “Disability” means a permanent and total disability determined in accordance with uniform and nondiscriminatory standards adopted by the Administrator from time to time.

  2.10   “Employee” means any executive, officer, or other employee of the Company Group, whether such individual is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan.

  2.11   “Fiscal Year” means the fiscal year of the Company.

  2.12   “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Code Section 424(e).  

  2.13   “Participant” means as to any Performance Period, an Employee who has been selected by the Administrator for participation in the Plan for that Performance Period.

  2.14   “Performance Period” means the period of time for the measurement of the performance criteria that must be met to receive an Actual Award, as determined by the Administrator.  A Performance Period may be divided into one or more shorter periods if, for example, but not by way of limitation, the 

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  Administrator desires to measure some performance criteria over twelve (12) months and other criteria over three (3) months.

  2.15   “Plan” means this Executive Incentive Compensation Plan (including any appendix attached hereto), as may be amended from time to time.

  2.16    “Section 409A” means Section 409A of the Code and any applicable state law equivalent, as each may be promulgated, amended or modified from time to time.

  2.17    “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as defined in Code Section 424(f), in relation to the Company.

  2.18    “Target Award” means the target award, at one hundred percent (100%) of target level performance achievement, payable under the Plan to a Participant for a Performance Period, as determined by the Administrator in accordance with Section 4.2.

  2.19    “Tax Withholdings” means tax, social insurance and social security liability or premium obligations in connection with the awards under the Plan, including without limitation:  (a) all federal, state, and local income, employment and any other taxes (including the Participant’s U.S. Federal Insurance Contributions Act (FICA) obligation) that are required to be withheld by the Company Group, (b) the Participant’s and, to the extent required by the Company Group, the fringe benefit tax liability of the Company Group associated with an award under the Plan, and (c) any other taxes or social insurance or social security liabilities or premium the responsibility for which the Participant has, or has agreed to bear, with respect to such award under the Plan.

  2.20    “Termination of Employment” means a cessation of the employee-employer relationship between an Employee and the Company Group, including without limitation a termination by resignation, discharge, death, Disability, retirement, or the disaffiliation of a Parent, Subsidiary or Affiliate.  For purposes of the Plan, transfer of employment of a Participant between any members of the Company Group (for example, between the Company and a Subsidiary) will not be deemed a Termination of Employment.

  3.Administration of the Plan.

  3.1    Administrator.  The Plan will be administered by the Board or a Committee (the “Administrator”).  To the extent necessary or desirable to satisfy applicable laws, the Committee acting as the Administrator will consist of not less than two (2) members of the Board.  The members of any Committee will be appointed from time to time by, and serve at the pleasure of, the Board.  The Board may retain the authority to administer the Plan concurrently with a Committee and may revoke the delegation of some or all authority previously delegated.  Different Administrators may administer the Plan with respect to different groups of Employees.  Unless and until the Board otherwise determines, the Board’s Compensation Committee will administer the Plan.

  3.2    Administrator Authority.  It will be the duty of the Administrator to administer the Plan in accordance with the Plan’s provisions.  The Administrator will have all powers and discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees will be granted awards, (b) prescribe the terms and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and sub‐plans as are necessary or appropriate to permit participation in the Plan by Employees who are non‐U.S. nationals or employed outside of the U.S. or to qualify awards for special tax treatment under the laws of jurisdictions other than the U.S., (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules.  Any determinations and decisions made or to be made by the Administrator pursuant to the provisions of the Plan, unless specified otherwise by the Administrator, will be in the Administrator’s sole discretion.

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  3.3    Decisions Binding.  All determinations and decisions made by the Administrator and/or any delegate of the Administrator pursuant to the provisions of the Plan will be final, conclusive, and binding on all persons, and will be given the maximum deference permitted by law.

  3.4    Delegation by Administrator.  The Administrator, on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company.  Such delegation may be revoked at any time.

  3.5    Indemnification.  Each person who is or will have been a member of the Administrator will be indemnified and held harmless by the Company against and from (a) 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 or any award, and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or she will give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold them harmless.

  4.Selection of Participants and Determination of Awards.

  4.1    Selection of Participants.  The Administrator will select the Employees who will be Participants for any Performance Period.  Participation in the Plan will be on a Performance Period by Performance Period basis.  Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent Performance Period or Performance Periods.  No Employee will have the right to be selected to receive an award under this Plan or, if so selected, to be selected to receive a future award.

  4.2    Determination of Target Awards.  The Administrator may establish a Target Award for each Participant (which may be expressed as a percentage of a Participant’s average annual base salary for the Performance Period or a fixed dollar amount or such other amount or based on such other formula or factors as the Administrator determines).

  4.3    Bonus Pool.  Each Performance Period, the Administrator may establish a Bonus Pool, which pool may be established before, during or after the applicable Performance Period.  Actual Awards will be paid from the Bonus Pool (if a Bonus Pool has been established).

  4.4    Discretion to Modify Awards.  Notwithstanding any contrary provision of the Plan, the Administrator, at any time prior to payment of an Actual Award, may:  (a) increase, reduce or eliminate a Participant’s Actual Award, and/or (b) increase, reduce or eliminate the amount allocated to the Bonus Pool.  The Actual Award may be below, at or above the Target Award, as determined by the Administrator.  The Administrator may determine the amount of any increase, reduction, or elimination based on such factors as it deems relevant, and will not be required to establish any allocation or weighting with respect to the factors it considers.

  4.5    Discretion to Determine Criteria.  Notwithstanding any contrary provision of the Plan, the Administrator will determine the performance goals, if any, applicable to any Target Award (or portion thereof) which may include, without limitation, goals related to: research and development milestones; regulatory milestones or regulatory-related goals; gross margin; financial milestones; new product or business development; operating margin; product release timelines or other product release milestones; publications; cash flow; procurement; savings; internal structure; leadership development; project function or portfolio-specific milestones; license or research collaboration agreements; capital raising; 

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  initial public offering preparations; patentability; and individual objectives such as peer reviews or other subjective or objective criteria.  As determined by the Administrator, the performance goals may be based on U.S. generally accepted accounting principles (“GAAP”) or non‐GAAP results and any actual results may be adjusted by the Administrator for one-time items or unbudgeted or unexpected items and/or payments of Actual Awards under the Plan when determining whether the performance goals have been met.  The performance goals may be based on any factors the Administrator determines relevant, including without limitation on an individual, divisional, portfolio, project, business unit, segment or Company-wide basis.  Any criteria used may be measured on such basis as the Administrator determines, including without limitation:  (a) in absolute terms, (b) in combination with another performance goal or goals (for example, but not by way of limitation, as a ratio or matrix), (c) in relative terms (including, but not limited to, results for other periods, passage of time and/or against another company or companies or an index or indices), (d) on a per-share basis, (e) against the performance of the Company as a whole or a segment of the Company and/or (f) on a pre-tax or after-tax basis.  The performance goals may differ from Participant to Participant and from award to award.  Failure to meet the applicable performance goals will result in a failure to earn the Target Award, except as provided in Section 4.4.

  5.Payment of Awards.

  5.1    Right to Receive Payment.  Each Actual Award will be paid solely from the general assets of the Company Group.  Nothing in this Plan will be construed to create a trust or to establish or evidence any Participant’s claim of any right other than as an unsecured general creditor with respect to any payment to which the Participant may be entitled.

  5.1    Timing of Payment.  Payment of each Actual Award will be made as soon as practicable after the end of the Performance Period to which the Actual Award relates and after the Actual Award is approved by the Administrator, but in no event after the later of (a) the fifteenth (15th) day of the third (3rd) month of the Fiscal Year immediately following the Fiscal Year in which the Participant’s Actual Award first becomes no longer subject to a substantial risk of forfeiture, and (b) March 15 of the calendar year immediately following the calendar year in which the Participant’s Actual Award first becomes no longer subject to a substantial risk of forfeiture.  Unless otherwise determined by the Administrator, to earn an Actual Award a Participant must be employed by the Company Group on the date the Actual Award is paid, and in all cases subject to the Administrator’s discretion pursuant to Section 4.4.

  5.2    Form of Payment.  Each Actual Award generally will be paid in cash (or its equivalent) in a single lump sum.  The Administrator reserves the right to settle an Actual Award with a grant of an equity award with such terms and conditions, including any vesting requirements, as determined by the Administrator.

  5.3    Payment in the Event of Death or Disability.  If a Termination of Employment occurs due to a Participant’s death or Disability prior to payment of an Actual Award that the Administrator has determined will be paid for a prior Performance Period, then the Actual Award will be paid to the Participant or the Participant’s estate, as the case may be, subject to the Administrator’s discretion pursuant to Section 4.4.

  6.General Provisions.

  6.1    Tax Matters.

  6.1.1    Section 409A.  It is the intent that this Plan be exempt from or comply with the requirements of Section 409A so that none of the payments to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities or ambiguous terms will be interpreted to be so exempt or so comply.  Each payment under this Plan is intended to constitute a separate payment for purposes of Treasury Regulations Section 1.409A‐2(b)(2).  In 

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  no event will the Company Group have any liability, obligation, or responsibility to reimburse, indemnify or hold harmless any Participant or other Employee for any taxes, penalties or interest imposed, or other costs incurred, as a result of Section 409A.

  6.1.2    Tax Withholdings.  The Company Group will have the right and authority to deduct from any Actual Award all applicable Tax Withholdings.  Prior to the payment of an Actual Award or such earlier time as any Tax Withholdings are due, the Company Group is permitted to deduct or withhold, or require a Participant to remit to the Company Group, an amount sufficient to satisfy any Tax Withholdings with respect to such Actual Award.

  6.2    No Effect on Employment or Service.  Neither the Plan nor any award under the Plan will confer upon a Participant any right regarding continuing the Participant’s relationship as an Employee or other service provider to the Company Group, nor will they interfere with or limit in any way the right of the Company Group or the Participant to terminate such relationship at any time, with or without cause, to the extent permitted by applicable laws.

  6.3    Forfeiture Events.

  6.3.1    Clawback Policy; Applicable Laws.  All awards under the Plan will be subject to reduction, cancellation, forfeiture, or recoupment in accordance with any clawback policy that the Company Group is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed or as is otherwise required by the Dodd-Frank Wall Street Reform and Consumer Protection Act or other applicable laws.  In addition, the Administrator may impose such other clawback, recovery or recoupment provisions with respect to an award under the Plan as the Administrator determines necessary or appropriate, including without limitation a reacquisition right in respect of previously acquired cash, stock, or other property provided with respect to an award.  Unless this Section 6.3.1 is specifically mentioned and waived in a written agreement between a Participant and a member of the Company Group or other document, no recovery of compensation under a clawback policy will give the Participant the right to resign for “good reason” or “constructive termination” (or similar term) under any agreement with a member of the Company Group.

  6.3.2    Additional Forfeiture Terms.  The Administrator may specify when providing for an award under the Plan that the Participant’s rights, payments, and benefits with respect to the award will be subject to reduction, cancellation, forfeiture, or recoupment upon the occurrence of specified events, in addition to any otherwise applicable vesting or performance conditions of the award.  Such events may include, without limitation, termination of the Participant’s status as an Employee for “cause” or any act by a Participant, whether before or after the Participant’s status as an Employee terminates, that would constitute “cause.” 

  6.3.3    Accounting Restatements.  If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any Participant who knowingly or through gross negligence engaged in the misconduct, or who knowingly or through gross negligence failed to prevent the misconduct, and any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, will reimburse the Company Group the amount of any payment with respect to an award earned or accrued during the twelve (12) month period following the first public issuance or filing with the U.S.  Securities and Exchange Commission (whichever first occurred) of the financial document embodying such financial reporting requirement.

  6.4    Successors.  All obligations of the Company under the Plan, with respect to awards under the Plan, will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company.

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  6.5    Nontransferability of Awards.  No award under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution, and except as provided in Section 5.3.  All rights with respect to an award granted to a Participant will be available during his or her lifetime only to the Participant.

  7.Amendment, Termination, and Duration.

  7.1    Amendment, Suspension, or Termination.  The Administrator may amend or terminate the Plan, or any part thereof, at any time and for any reason.  The amendment, suspension or termination of the Plan will not, without the consent of the Participant, alter or impair any rights or obligations under any Actual Award ​earned by such Participant.  No award may be granted during any period of suspension or after termination of the Plan.

  7.2    Duration of Plan.  The Plan will commence on the date first adopted by the Board or the Compensation Committee of the Board, and subject to Section 7.1 (regarding the Administrator’s right to amend or terminate the Plan), will remain in effect thereafter until terminated.

  8.Legal Construction.

  8.1    Gender and Number.  Unless otherwise indicated by the context, any feminine term used herein also will include the masculine and any masculine term used herein also will include the feminine; the plural will include the singular and the singular will include the plural.

  8.2    Severability.  If any provision of the Plan is or becomes or is deemed to be invalid, illegal, or unenforceable for any reason in any jurisdiction or as to any Participant, such invalidity, illegality, or unenforceability will not affect the remaining parts of the Plan, and the Plan will be construed and enforced as if the invalid, illegal, or unenforceable provision had not been included.

  8.3    Governing Law.  The Plan and all awards will be construed in accordance with and governed by the laws of the State of California, but without regard to its conflict of law provisions.

  8.4    Bonus Plan.  The Plan is intended to be a “bonus program” as defined under U.S. Department of Labor regulations section 2510.3‐2(c) and will be construed and administered in accordance with such intention.

  8.5    Headings.  Headings are provided herein for convenience only, and will not serve as a basis for interpretation or construction of the Plan.

  9.Compliance with Applicable Laws.  Awards under the Plan (including without limitation the granting of such awards) will be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.

  *         *         *

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