Document:

2000 Stock Incentive Plan form of Notice of Grant of Non-Employee

 Exhibit 10.16 
 NOTICE OF GRANT OF NON-EMPLOYEE DIRECTOR 
 AUTOMATIC STOCK OPTION 
 Notice is hereby given of the following option grant (the “Option”) to purchase shares of the Common Stock of STEC, Inc. (the
“Corporation”): 
 Optionee:                                    
                                        
                                       
                                        
                                        
                                   
 Grant Date:                                  
                                        
                                        
                                        
                                        
                                
 Exercise Price:  $                                
                                        
                                        
                                        
          per share 
 Number of Option Shares:    30,000 shares
of Common Stock 
 Expiration Date:                                  
                                        
                                        
                                        
                                        
                       
 Type of Option: Non-Statutory Stock Option 
 Date Exercisable: Immediately Exercisable 
 Vesting Schedule: The Option Shares shall initially be unvested and subject to repurchase by the Corporation at the Exercise Price paid per share.
Optionee shall acquire a vested interest in, and the Corporation’s repurchase right shall accordingly lapse with respect to, the Option Shares in a series of five (5) successive equal annual installments upon Optionee’s completion of
each year of service as a member of the Corporation’s Board of Directors (the “Board”) over the five (5)-year period measured from the Grant Date. In no event shall any additional Option Shares vest after Optionee’s
cessation of Board service. 
 Optionee understands and agrees that the Option is granted subject to and in accordance with the terms of the
automatic option grant program under the STEC, Inc. 2000 Stock Incentive Plan (the “Plan”). Optionee further agrees to be bound by the terms of the Plan and the terms of the Option as set forth in the Automatic Stock Option
Agreement attached hereto as Exhibit A. Optionee hereby acknowledges receipt of a copy of the official prospectus for the Plan in the form attached hereto as Exhibit B. A copy of the Plan is available upon request made to the Corporate
Secretary at the Corporation’s principal offices. 

 REPURCHASE RIGHT. OPTIONEE HEREBY AGREES THAT ANY UNVESTED OPTION SHARES ACQUIRED UPON THE
EXERCISE OF THE OPTION SHALL BE SUBJECT TO A REPURCHASE RIGHT EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS. THE TERMS OF SUCH RIGHT SHALL BE SPECIFIED IN A STOCK PURCHASE AGREEMENT, IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION, EXECUTED
BY OPTIONEE AT THE TIME OF THE OPTION EXERCISE. 
 No Impairment of Rights. Nothing in this Notice or the attached Automatic Stock
Option Agreement or in the Plan shall interfere with or otherwise restrict in any way the rights of the Corporation and the Corporation’s stockholders to remove Optionee from the Board at any time in accordance with the provisions of applicable
law. 
 Additional Information. The additional information concerning the Option will be more fully described in the option
documentation available to Optionee on-line. Following is the link to Wealthviews, the Corporation’s online stock administrator. The user id should be your Optionee number (no dashes), and the initial pin (if you haven’t used the system
before) would be the last 6 digits of your social security number. https://www.wealthviews.com/stec/ 
 Definitions. All
capitalized terms in this Notice shall have the meaning assigned to them in this Notice or in the attached Automatic Stock Option Agreement. 
 DATED:
                    ,          
  

			
	STEC, INC.
		
	By:	 	  

		
	Name:	 	  

		
	Title:	 	  

	
	OPTIONEE
		
	By:	 	  

		
	Name:	 	  

		
	Address:	 	  

	
	  

 ATTACHMENTS 
 Exhibit A - Automatic Stock Option Agreement (For Non-Employee Directors) 
 Exhibit B - Plan Summary and Prospectus

  

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 EXHIBIT A 
 AUTOMATIC STOCK OPTION AGREEMENT 

 EXHIBIT B 
 PLAN SUMMARY AND PROSPECTUS2000 Stock Incentive Plan form of Automatic Stock Option Agreement

 Exhibit 10.17 
 STEC, INC. 
 AUTOMATIC STOCK OPTION AGREEMENT 
 (FOR NON-EMPLOYEE DIRECTORS) 
 RECITALS

 A. STEC, Inc. (the “Corporation”) has implemented an automatic option grant program under the Plan pursuant to
which eligible non-employee members of the Board will automatically receive special option grants at periodic intervals over their period of Board service in order to provide such individuals with a meaningful incentive to continue to serve as
members of the Board. 
 B. Optionee is an eligible non-employee Board member, and this Agreement is executed pursuant to, and is intended to
carry out the purposes of, the Plan in connection with the automatic grant of an option to purchase shares of Common Stock under the Plan. 
 C. All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. In the event of any conflict between the provisions of this Agreement and those of the Plan, the provisions of the Plan shall be
controlling. 
 NOW, THEREFORE, it is hereby agreed as follows: 
 1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date, a Non-Statutory Option to purchase up to the number of
Option Shares specified in the Grant Notice. The Option Shares shall be purchasable from time to time during the option term specified in Paragraph 2 at the Exercise Price. 
 2. Option Term. This option shall have a term of ten (10) years measured from the Grant Date and shall accordingly expire at the close
of business on the Expiration Date, unless sooner terminated in accordance with Paragraph 5, 6 or 7. 
 3. Limited
Transferability. 
 (a) This option may be assigned in whole or in part during Optionee’s lifetime to one or more members of
Optionee’s family or to a trust established for the exclusive benefit of one or more such family members or to Optionee’s former spouse, to the extent such assignment is in connection with the Optionee’s estate plan or pursuant to a
domestic relations order. The assigned portion shall be exercisable only by the person or persons who acquire a proprietary interest in the option pursuant to such assignment. The terms applicable to the assigned portion shall be the same as those
in effect for this option immediately prior to such assignment. 
 (b) Should the Optionee die while holding this option, then this option
shall be transferred in accordance with Optionee’s will or the laws of inheritance. However, 

 
Optionee may designate one or more persons as the beneficiary or beneficiaries of this option, and this option shall, in accordance with such designation,
automatically be transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding this option. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this
Agreement, including (without limitation) the limited time period during which this option may, pursuant to Paragraph 5, be exercised following Optionee’s death. 
 4. Exercisability/Vesting. 
 (a) This option shall be immediately exercisable for any or all
of the Option Shares, whether or not the Option Shares are at the time vested in accordance with the Vesting Schedule, and shall remain so exercisable until the Expiration Date or sooner termination of the option term under Paragraph 5, 6 or 7.

 (b) Optionee shall, in accordance with the Vesting Schedule set forth in the Grant Notice, vest in the Option Shares in one or more
installments over his or her period of Board service. The Option Shares shall, however, be subject to accelerated vesting pursuant to the provisions of Paragraph 5, 6 or 7, but in no event shall any additional Option Shares vest following
Optionee’s cessation of service as a Board member. 
 5. Cessation of Board Service. Should Optionee’s service as a
Board member cease while this option remains outstanding, then the option term specified in Paragraph 2 shall terminate (and this option shall cease to be outstanding) prior to the Expiration Date in accordance with the following provisions:

 (a) Should Optionee cease to serve as a Board member for any reason (other than death or Permanent Disability) while this option is
outstanding, then the period during which this option may be exercised shall be reduced to a twelve (12)-month period measured from the date of such cessation of Board service, but in no event shall this option be exercisable at any time after the
Expiration Date. During such limited period of exercisability, this option may not be exercised in the aggregate for more than the number of Option Shares (if any) in which Optionee is vested on the date of his or her cessation of Board service.
Upon the earlier of (i) the expiration of such twelve (12)-month period or (ii) the specified Expiration Date, the option shall terminate and cease to be exercisable with respect to any vested Option Shares for which the option has
not been exercised. 
 (b) Should Optionee die during the twelve (12)-month period following his or her cessation of Board service and hold
this option at the time of his or her death, then the personal representative of Optionee’s estate or the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of inheritance or the designated
beneficiary or beneficiaries of this option (as the case may be) shall have the right to exercise this option for any or all of the Option Shares in which Optionee is vested at the time of Optionee’s cessation of Board service (less any Option
Shares purchased by Optionee after such cessation of Board service but prior to death). Any such right to exercise this option shall terminate, and this option shall accordingly cease to be exercisable for such vested Option Shares, upon the
earlier of (i) the expiration of the twelve (12)-month period measured from the date of Optionee’s cessation of Board service or (ii) the specified Expiration Date. 
  

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 (c) Should Optionee cease service as a Board member by reason of death or Permanent Disability, then any
Option Shares at the time subject to this option but not otherwise vested shall vest in full so that this option may be exercised for any or all of the Option Shares as fully vested shares of Common Stock at any time prior to the earlier of
(i) the expiration of the twelve (12)-month period measured from the date of Optionee’s cessation of Board service or (ii) the specified Expiration Date, whereupon this option shall terminate and cease to be outstanding. 

(d) Upon Optionee’s cessation of Board service for any reason other than death or Permanent Disability, this option shall immediately terminate
and cease to be outstanding with respect to any and all Option Shares in which Optionee is not otherwise at that time vested in accordance with the normal Vesting Schedule or the special vesting acceleration provisions of Paragraphs 6 and 7 below.

 6. Corporate Transaction. 
 (a) In the event of a Corporate Transaction effected during Optionee’s period of Board service, any Option Shares at the time subject to this option but not otherwise vested shall automatically vest so that this
option shall, immediately prior to the specified effective date for that Corporate Transaction, become exercisable for all of the Option Shares as fully vested shares of Common Stock and may be exercised for any or all of those vested shares.
Immediately following the consummation of the Corporate Transaction, this option shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation or its parent company. 
 (b) If this option is assumed in connection with a Corporate Transaction, then this option shall be appropriately adjusted, immediately after such
Corporate Transaction, to apply to the number and class of securities which would have been issuable to Optionee in consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction, and
appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the actual holders of the Corporation’s outstanding Common Stock receive cash consideration for
their Common Stock in consummation of the Corporate Transaction, the successor corporation may, in connection with the assumption of this option, substitute one or more shares of its own common stock with a fair market value equivalent to the cash
consideration paid per share of Common Stock in such Corporate Transaction. 
 7. Change in Control/Hostile Take-Over.

 (a) In the event of a Change in Control effected during Optionee’s period of Board service, any Option Shares at the time subject to
this option but not otherwise vested shall automatically vest so that this option shall, immediately prior to the effective date of that Change in Control, become exercisable for all of the Option Shares as fully vested shares of 

  

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Common Stock and may be exercised for any or all of those vested shares. This option shall remain exercisable for such fully vested Option Shares until the
earliest to occur of (i) the specified Expiration Date, (ii) the sooner termination of this option in accordance with Paragraph 5 or 6 or (iii) the surrender of this option under Paragraph 7(b). 
 (b) Optionee shall have an unconditional right, exercisable at any time during the thirty (30)-day period immediately following the consummation of a
Hostile Take-Over, to surrender this option to the Corporation in exchange for a cash distribution from the Corporation in an amount equal to the excess of (i) the Take-Over Price of the Option Shares at the time subject to the surrendered
option (whether or not those Option Shares are otherwise at the time vested) over (ii) the aggregate Exercise Price payable for such shares. This Paragraph 7(b) limited stock appreciation right shall in all events terminate upon the expiration
or sooner termination of the option term and may not be assigned or transferred by Optionee, except to the extent the option is transferred in accordance with the provisions of this Agreement. 
 (c) To exercise the Paragraph 7(b) limited stock appreciation right, Optionee must, during the applicable thirty (30)-day exercise period, provide the
Corporation with written notice of the option surrender in which there is specified the number of Option Shares as to which the option is being surrendered. Such notice must be accompanied by the return of Optionee’s copy of this Agreement,
together with any written amendments to such Agreement. The cash distribution shall be paid to Optionee within five (5) business days following such delivery date. The exercise of such limited stock appreciation right in accordance with the
terms of this Paragraph 7 has been pre-approved pursuant to the express provisions of the Automatic Option Grant Program, and neither the approval of the Plan Administrator nor the consent of the Board shall be required at the time of the actual
option surrender and cash distribution. Upon receipt of the cash distribution, this option shall be cancelled with respect to the shares subject to the surrendered option (or the surrendered portion), and Optionee shall cease to have any further
right to acquire those Option Shares under this Agreement. The option shall, however, remain outstanding for the balance of the Option Shares (if any) in accordance with the terms and provisions of this Agreement, and the Corporation shall
accordingly issue a replacement stock option agreement (substantially in the same form as this Agreement) for those remaining Option Shares. 
 8. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the outstanding
Common Stock as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price in order to
reflect such change and thereby preclude a dilution or enlargement of benefits hereunder. 
 9. Shareholder Rights. The holder
of this option shall not have any shareholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares. 
  

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 10. Manner of Exercising Option. 
 (a) In order to exercise this option with respect to all or any part of the Option Shares for which this option is at the time exercisable, Optionee (or
any other person or persons exercising the option) must take the following actions: 
 (i) To the extent the option is
exercised for vested Option Shares, execute and deliver to the Corporation a Notice of Exercise for the Option Shares for which the option is exercised. To the extent this option is exercised for unvested Option Shares, execute and deliver to the
Corporation a Purchase Agreement for those unvested Option Shares. 
 (ii) Pay the aggregate Exercise Price for the purchased
shares in one or more of the following forms: 
 (A) cash or check made payable to the Corporation, 
 (B) shares of Common Stock held by Optionee (or any other person or persons exercising the option) for the requisite period necessary to
avoid a charge to the Corporation’s earnings for financial reporting purposes and valued at Fair Market Value on the Exercise Date, or 
 (C) to the extent the option is exercised for vested Option Shares, through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option) shall concurrently
provide irrevocable instructions (I) to a Corporation-designated brokerage firm to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate Exercise Price payable for the purchased shares plus all applicable Federal, state and local income and employment taxes required to be withheld by the Corporation by reason of such exercise and (II) to the Corporation to deliver
the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
 (iii) Furnish to
the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 
 (b) Except to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price must accompany the Notice of Exercise (or the Purchase Agreement) delivered
to the Corporation in connection with the option exercise. 
  

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 (c) As soon after the Exercise Date as practical, the Corporation shall issue to or on behalf of
Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares, with the appropriate legends affixed thereto. To the extent any such Option Shares are unvested, the certificates for those Option Shares
shall be endorsed with an appropriate legend evidencing the Corporation’s repurchase rights and may be held in escrow with the Corporation until such shares vest. 
 (d) In no event may this option be exercised for any fractional shares. 
 11. No Impairment of
Rights. This Agreement shall not in any way affect the right of the Corporation to adjust, reclassify, reorganize or otherwise make changes in its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or
transfer all or any part of its business or assets. In addition, this Agreement shall not in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Corporation or the shareholders to remove Optionee from
the Board at any time in accordance with the provisions of applicable law. 
 12. Compliance with Laws and Regulations.

 (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation
and Optionee with all applicable requirements of law relating thereto and with all applicable regulations of any stock exchange (or the Nasdaq National Market, if applicable) on which the Common Stock may be listed for trading at the time of such
exercise and issuance. 
 (b) The inability of the Corporation to obtain approval from any regulatory body having authority deemed by the
Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the Common Stock as to which such approval shall not
have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 
 13. Successors and
Assigns. Except to the extent otherwise provided in Paragraph 3 or 6, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the Corporation and its successors and assigns and Optionee, Optionee’s assigns,
the legal representatives, heirs and legatees of Optionee’s estate and any beneficiaries of this option designated by Optionee. 
 14.
Notices. Any notice required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or
delivered to Optionee shall be in writing and addressed to Optionee at the address indicated below Optionee’s signature line on the Grant Notice. All notices shall be deemed effective upon personal delivery or upon deposit in the U.S. mail,
postage prepaid and properly addressed to the party to be notified. 
  

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 15. Construction. This Agreement and the option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. 
 16. Governing Law. The
interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of California without resort to that State’s conflict-of-laws rules. 
  

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 EXHIBIT I 
 NOTICE OF EXERCISE 
 I hereby notify STEC, Inc. (the “Corporation”) that I elect to
purchase                      shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option exercise
price of $                     per share (the “Exercise Price”) pursuant to that certain option (the
“Option”) granted to me under the Corporation’s 2000 Stock Incentive Plan on                     ,
        . 
 Concurrently with the delivery of this Exercise Notice to the Corporation, I
shall hereby pay to the Corporation the Exercise Price for the Purchased Shares in accordance with the provisions of my agreement with the Corporation (or other documents) evidencing the Option and shall deliver whatever additional documents may be
required by such agreement as a condition for exercise. Alternatively, I may utilize the special broker-dealer sale and remittance procedure specified in my agreement to effect payment of the Exercise Price for any Purchased Shares in which I am
vested at the time of exercise of the Option. 
  

					
	                    ,
        	  		  	
	 Date
	  		  	
			
		  	  
	  	
		  	Optionee	  	
			
		  	  
	  	
			
		  	Address:                                     
                          	  	
			
		  	  
	  	
			
	 Print name in exact manner
 it is to appear on the
 stock certificate:
	  	  
	  	
			
	 Address to which certificate
 is to be sent, if
different
 from address above:
	  	

  
	  	
			
		  	  
	  	
			
	Social Security Number:	  	  
	  	
			
		  	  
	  	

 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A. Agreement shall mean
this Automatic Stock Option Agreement. 
 B. Board shall mean the Corporation’s Board of Directors. 
 C. Change in Control shall mean a change in ownership or control of the Corporation effected through either of the following transactions:

 (i) the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a
person that directly or indirectly controls, is controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent
(50%) of the total combined voting power of the Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s shareholders, or 
 (ii) a change in the composition of the Board over a period of thirty-six (36) consecutive months or less such that a majority of the
Board members ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who either (A) have been Board members continuously since the beginning of such period or (B) have been elected or
nominated for election as Board members during such period by at least a majority of the Board members described in clause (A) who were still in office at the time the Board approved such election or nomination. 
 D. Common Stock shall mean shares of the Corporation’s common stock. 
 E. Code shall mean the Internal Revenue Code of 1986, as amended. 
 F. Corporate Transaction shall mean either of the following shareholder-approved transactions to which the Corporation is a party:

 (i) a merger or consolidation in which securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities are transferred to a person or persons different from the persons holding those securities immediately prior to such transaction, or 
 (ii) the sale, transfer or other disposition of all or substantially all of the Corporation’s assets in complete liquidation or
dissolution of the Corporation. 
  

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 G. Corporation shall mean STEC, Inc., a California corporation, and any successor
corporation to all or substantially all of the assets or voting stock of STEC, Inc. which shall by appropriate action adopt the Plan. 
 H.
Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 10 of the Agreement. 
 I. Exercise Price shall mean the exercise price per share as specified in the Grant Notice. 
 J. Expiration
Date shall mean the date on which the option expires as specified in the Grant Notice. 
 K. Fair Market Value per
share of Common Stock on any relevant date shall be determined in accordance with the following provisions: 
 (i) If the
Common Stock is at the time traded on the Nasdaq National Market, then the Fair Market Value shall be the closing selling price per share of Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the Nasdaq
National Market on the date in question, as such price is reported by the National Association of Securities Dealers. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation exists. 
 (ii) If the Common Stock is at the time listed on
any Stock Exchange, then the Fair Market Value shall be the closing selling price per share of Common Stock at the close of regular hours trading (i.e., before after-hours trading begins) on the date in question on the Stock Exchange determined by
the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Stock on the date in question, then
the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 L. Grant
Date shall mean the date of grant of the option as specified in the Grant Notice. 
 M. Grant Notice shall mean the
Notice of Grant of Automatic Stock Option accompanying the Agreement, pursuant to which Optionee has been informed of the basic terms of the option evidenced hereby. 
 N. Hostile Takeover shall mean the acquisition, directly or indirectly, by any person or related group of persons (other than the Corporation or a person that directly or indirectly controls, is
controlled by, or is under common control with, the Corporation) of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the
Corporation’s outstanding securities pursuant to a tender or exchange offer made directly to the Corporation’s shareholders which the Board does not recommend such shareholders to accept. 
  

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 O. 1934 Act shall mean the Securities Exchange Act of 1934, as amended. 
 P. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 
 Q. Notice of Exercise shall mean the notice of exercise in the form of Exhibit I. 
 R. Option Shares shall mean the number of shares of Common Stock subject to the option. 
 S. Optionee shall mean the person to whom the option is granted as specified in the Grant Notice. 
 T. Permanent Disability or Permanently Disabled shall mean the inability of Optionee to perform his or her usual duties as a member of the
Board by reason of any medically determinable physical or mental impairment which is expected to result in death or to be of continuous duration of twelve (12) months or more. 
 U. Plan shall mean the Corporation’s 2000 Stock Incentive Plan. 
 V. Purchase Agreement shall mean the stock purchase agreement (in form and substance satisfactory to the Corporation) which grants the
Corporation the right to repurchase, at the Exercise Price, any and all unvested Option Shares held by Optionee at the time of Optionee’s cessation of Board service and which precludes the sale, transfer or other disposition of any purchased
Option Shares while those shares are unvested and subject to such repurchase right. 
 W. Stock Exchange shall mean the
American Stock Exchange or the New York Stock Exchange. 
 X. Take-Over Price shall mean the greater of (i) the
Fair Market Value per share of Common Stock on the date the option is surrendered to the Corporation in connection with a Hostile Take-Over or (ii) the highest reported price per share of Common Stock paid by the tender offeror in effecting the
Hostile Take-Over. 
 Y. Vesting Schedule shall mean the vesting schedule specified in the Grant Notice, pursuant to which the
Option Shares will vest in one or more installments over the Optionee’s period of Board service, subject to acceleration in accordance with the provisions of the Agreement. 
  

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