Document:

VINCA CORPORATION 1997 STOCK OPTION PLAN

 Exhibit 4.5 
  

 
  
 VINCA CORPORATION 
 1997 STOCK OPTION PLAN 
  
 1.    THE PLAN 
  

 TABLE OF CONTENTS 
  

	 1.    THE PLAN
	  	 
	 1.1 Purpose
	  	1
	 1.2 Administration and Authorization; Power and Procedure
	  	1
	 1.3 Participation
	  	2
	 1.4 Shares Available for Options
	  	2
	 1.5 Grant of Options
	  	3
	 1.6 Term of Options
	  	3
	 1.7 Limitations on Exercise of Options
	  	3
	 1.8 Acceptance of Notes to Finance Exercise
	  	3
	 1.9 No Transferability
	  	4
	2.    EMPLOYEE OPTIONS	  	5
	 2.1 Grants
	  	5
	 One or more Options may be granted under this Article to any Eligible Employee
	  	5
	 2.2 Option Price
	  	5
	 2.3 Limitations on Grant and Terms of Incentive Stock Options
	  	5
	 2.4 Limits on 10% Holders
	  	6
	 2.5 Option Repricing/Cancellation and Regrant/Waiver of Restrictions
	  	6
	3.    OTHER PROVISIONS	  	6
	 3.1 Rights of Eligible Employees, Participants and Beneficiaries
	  	6
	 3.2 Adjustments; Acceleration
	  	7
	 3.3 Effect of Termination of Employment
	  	8
	 3.4 Compliance with Laws
	  	8
	 3.5 Tax Withholding
	  	8
	 3.6 Plan Amendment, Termination and Suspension
	  	8
	 3.7 Privileges of Stock Ownership
	  	9
	 3.8 Effective Date of the Plan
	  	9
	 3.9 Term of the Plan
	  	9
	 3.10 Governing Law; Construction; Severability
	  	10
	 3.11 Captions
	  	10
	 3.12 Effect of Change of Subsidiary Status
	  	10
	 3.13 Non-Exclusivity of Plan
	  	10
	4.    DEFINITIONS	  	10
	 4.1 Definitions
	  	10

 1.1    Purpose 
  
 The purpose of this Plan is to promote the success of the Company by
providing an additional means through the grant of stock options to attract, motivate, retain and reward key employees, including officers, whether or not directors, of the Company with incentives for high levels of individual performance and
improved financial performance of the Company. “Corporation” means Vinca Corporation, a Utah corporation, and “Company” means the Corporation and its Subsidiaries, collectively. These terms and other capitalized terms are defined
in Article IV. 
  
 1.2    Administration and
Authorization; Power and Procedure 
  
 (a)    Committee. This Plan shall be administered by and all Options to Eligible Employees shall be authorized by the Committee. Action of the Committee with respect to the administration of this Plan shall be
taken pursuant to a majority vote or by written consent of its members. 
  
 (b)    Plan Options; Interpretation; Powers of Committee. Subject to the express provisions of this Plan, the Committee shall have the authority: 
  
 (i)    to determine from among those persons eligible the particular Eligible Employees
who will receive any Options; 
  
 (ii)    to grant Options to Eligible Employees, determine the price at which the Options may be exercised (equal to at least Fair Market Value), the amount of securities to be subject to such Options, and determine the
other specific terms and conditions of such Options consistent with the express limits of this Plan, and establish the installments (if any) in which such options shall become exercisable, or determine that no delayed exercisability is required, and
establish the events of termination of such Options; 
  
 (iii)    to approve the forms of Option Agreements (which need not be identical either as to type of option or as among Participants); 
  
 (iv)    to construe and interpret this Plan and any agreements defining the rights and
obligations of the Company and employee Participants under this Plan, further define the terms used in this Plan, and prescribe, amend and rescind rules and regulations relating to the administration of this Plan; 
  
 (v)    to cancel, modify, or waive the
Corporation’s rights with respect to, or modify, discontinue, suspend, or terminate any or all outstanding Options held by Eligible Employees, subject to any required consent under Section 3.6; 
  
 (vi)    to accelerate or extend the
exercisability or extend the term of any or all such outstanding Options within the maximum ten-year term of Options under Section 1.6; and 

 (vii)    to make all other determinations and take such other action
as contemplated by this Plan or as may be necessary or advisable for the administration of this Plan and the effectuation of its purposes. 
  
 (c)    Binding Determinations. Any action taken by, or inaction of, the Corporation, any Subsidiary, the Board or the Committee
relating or pursuant to this Plan shall be within the absolute discretion of that entity or body and shall be conclusive and binding upon all persons. No member of the Board or Committee, or officer of the Corporation or any Subsidiary, shall be
liable for any such action or inaction of the entity or body, of another person or except in circumstances involving bad faith, of himself or herself. Subject only to compliance with the express provisions hereof, the Board and Committee may act in
their absolute discretion in matters within their authority related to this Plan. 
  
 (d)    Reliance on Experts. In making any determination or in taking or not taking any action under this Plan, the Committee or the Board, as the case may be, may obtain and may rely upon
the advice of experts, including professional advisors to the Corporation. No director, officer or agent of the Company shall be liable for any such action or determination taken or made or omitted in good faith. 
  
 (e)    Delegation. The Committee may delegate
ministerial, non-discretionary functions to individuals who are officers or employees of the Company. 
  
 1.3    Participation 
  
 Options may be granted by the Committee only to those persons that the Committee determines to be Eligible Employees. An Eligible Employee who has been
granted an Option may, if otherwise eligible, be granted additional Options if the Committee shall so determine. Non-Employee Directors shall not be eligible to receive any Options through this Plan. 
  
 1.4    Shares Available for Options

  
 Subject to the provisions of Section 3.2, the capital
stock that may be delivered under this Plan shall be shares of the Corporation’s authorized but unissued Non-Voting Common Stock. and any shares of its Non-Voting Common Stock held as treasury shares. The shares may be delivered for any lawful
consideration. 
  
 (a)    Number of
Shares. The maximum number of shares of Common Stock that may be issued pursuant to Options granted to Eligible Employees under this Plan is 10,000,000 shares, subject to adjustments contemplated by Section 3.2. 
  
 (b)    Calculation of Available Shares and
Replenishment. Shares subject to outstanding Options that are derivative securities (as defined in Rule 16a-1(c) under the Exchange Act) shall be reserved for issuance. If any Option shall expire or be canceled or terminated without having been
exercised in full, the unpurchased share subject thereto shall again be available for the purposes of the Plan, subject to any applicable limitations under Rule 16b-3. If the Corporation withholds shares of Common Stock pursuant to Section 3.5, the
number of shares that would have been deliverable with respect to an Option but that are withheld pursuant to the provisions of Section 3.5 may in effect not be issued, but the aggregate 
  

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 number of shares issuable with respect to the applicable Option and under the Plan shall be reduced by the number of
shares withheld and such shares shall not be available for additional Options under this Plan. 
  
 1.5    Grant of Options 
  
 Subject to the express provisions of this Plan, the Committee shall determine the number of shares of Common Stock subject to each Option and the exercise
price thereof. Each option shall be evidenced by an Option Agreement signed by the Corporation and by the Participant. 
  
 1.6    Term of Options 
  
 Each Option and all executory rights or obligations under the related Option Agreement shall expire on such date as shall be determined by the Committee
but not later than 10 years after the Grant date. 
  
 1.7    Limitations on Exercise of Options 
  
 (a)    Provisions for Exercise. No Option shall be exercisable until stockholder approval of the Plan, and once exercisable an
Option shall remain exercisable until the expiration or earlier termination of the Option, unless the Committee otherwise provides. Notwithstanding the foregoing, the Committee may reduce or eliminate the six month requirement for Participants who
are not subject to Section 16 of the Exchange Act. 
  
 (b)    Procedure. Any exercisable option shall be deemed to be exercised when the Treasurer of the Corporation receives written notice of such exercise from the Participant, together with the required payment made
in accordance with Section 2.2(b). 
  
 (c)    Fractional Shares/Minimum Issue. Fractional share interests shall be disregarded, but may be accumulated. The Committee, however, may determine in the case of Eligible Employees that cash, other securities
or other property will be paid or transferred in lieu of any fractional share interests. No fewer than 100 shares may be purchased on exercise of any Option at one time unless the number purchased is the total number at the time available for
purchase under the Option. 
  
 1.8    Acceptance
of Notes to Finance Exercise 
  
 The Corporation
may, with the Committee’s approval, accept one or more notes from any Eligible Employee in connection with the exercise or receipt of any outstanding Option, provided that any such note shall be subject to the following terms and conditions:

  
 (a)    The principal of the note shall not
exceed the amount required to be paid to the Corporation upon the exercise or receipt of one or more Options under the Plan and the note shall be delivered directly to the Corporation in consideration of such exercise or receipt. 
  
 (b)    The initial term of the note shall be determined
by the Committee; provided that the term of the note, including extensions, shall not exceed a period of 10 years. 
  

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 (c)    The note shall provide for full recourse to the Employee Participant and shall
bear interest at a rate determined by the Committee but not less than the applicable imputed interest rate specified by the Code. 
  
 (d)    If the employment of the Employee Participant terminates, the unpaid principal balance of the note shall become due and payable
on the 10th business day after such termination provided, however, that if a sale of such shares would cause such Employee Participant to incur liability under Section 16(b) of the Exchange Act, the unpaid balance shall become due and payable on the
10th business day after the first day on which a sale of such shares could have been made without incurring such liability assuming for these purposes that there are no other transactions by the Employee Participant subsequent to such termination.

  
 (e)    The note shall be secured by a
pledge of any shares or rights financed thereby in compliance with applicable law. 
  
 (f)    The terms, repayment provisions, and collateral release provisions of the note and the pledge securing the note shall conform with applicable rules and regulations of the Federal Reserve
Board as then in effect. 
  
 1.9    No
Transferability 
  
 Options may be exercised only
by, and shares issuable pursuant to an Option shall be issued only to (or registered only in the name of), the Participant or, if the Participant has died, the Participant’s Beneficiary or, if the Participant has suffered a Disability, the
Participant’s Personal Representative, if any, or if there is none, the Participant, or (to the extent permitted by applicable law and Rule 16b-3) to a third party pursuant to such conditions and procedures as the Committee may establish. Other
than by will or the laws of descent and distribution or pursuant to a QDRO or other exception to transfer restrictions under Rule 16b-3 (except to the extent not permitted in the case of an Incentive Stock Option), no right or benefit under this
Plan or any Option, shall be transferable by the Participant or shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge (other than to the Corporation) and any such attempted action shall
be void. The Corporation shall disregard any attempt at transfer, assignment or other alienation prohibited by the preceding sentences and shall deliver such shares of Common Stock in accordance with the provisions of this Plan. The designation of a
Beneficiary hereunder shall not constitute a transfer for these purposes. 
  

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 2.    EMPLOYEE OPTIONS 
  
 2.1    Grants 
  
 One or more Options may be granted under this Article to any Eligible
Employee. The maximum number of shares of Common Stock subject to Options granted to any Eligible Employee in any calendar year shall not exceed 1,000,000. Each Option granted may be either an Option intended to be an Incentive Stock Option, or an
Option not so intended, and such intent shall be indicated in the applicable Option Agreement. 
  
 2.2    Option Price 
  
 (a)    Pricing Limits. The purchase price per share of the Common Stock covered by each Option shall be determined by the
Committee at the time the Option is granted, but shall not be less than 100% (110% in the case of a Participant who owns or is deemed to own under Section 424(d) of the Code more than 10% of the total combined voting power of all classes of stock of
the Corporation) of the Fair Market Value of the Common Stock on the Grant Date. 
  
 (b)    Payment Provisions. The purchase price of any shares purchased on exercise of an Option granted under this Article shall be paid in full at the time of each purchase in one or a
combination of the following methods: (i) in cash or by electronic funds transfer; (ii) by check payable to the order of the Corporation; (iii) if authorized by the Committee or specified in the applicable Option Agreement, by a .promissory note of
the Participant consistent with the requirements of Section 1.8; (iv) by notice and third party payment in such manner as may be authorized by the Committee; or (v) by the delivery of shares of Common Stock of the Corporation already owned by the
Participant, provided, however, that the Committee may in its absolute discretion limit the Participant’s ability to exercise an Option by delivering such shares. Shares of Common Stock used to satisfy the exercise price of an Option
shall be valued at their Fair Market Value on the date of exercise and any such shares used in payment shall have been owned by the Participant at least six months prior to the date of exercise. 
  
 2.3    Limitations on Grant and Terms of Incentive Stock
Options 
  
 (a)    $100,000
Limit. To the extent that the aggregate “fair market value” of stock with respect to which incentive stock options first become exercisable by a Participant in any calendar year exceeds $100,000, taking into account both Common Stock
subject to Incentive Stock Options under this Plan and stock subject to incentive stock options under all other plans of the Company, such options shall be treated as non-qualified stock options : For this purpose, ;the “fair market value”
of the stock subject to options shall be determined as of the date the options were optioned. In reducing the number of options treated as incentive stock options to meet the $100,000 limit, the most recently granted options shall be reduced first.
To the extent a reduction of simultaneously granted options is necessary to meet the $100,000 limit, the Committee may, in the manner and to the extent permitted by law, designate which shares of Common Stock are to be treated as shares acquired
pursuant to the exercise of an Incentive Stock Option. 
  

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 (b)    Option Period. Each Incentive Stock Option and all rights thereunder
shall expire no later than ten years after the Grant Date. 
  
 (c)    Other Code Limits. There shall be imposed in any Option Agreement relating to Incentive Stock Options such terms and conditions as from time to time are required in order that the Option be an
“incentive stock option” as that term is defined in Section 422 of the Code. 
  
 2.4    Limits on 10% Holders 
  
 No Incentive Stock Option may be granted to any person who, at the time the Option is granted, owns (or is deemed to own under Section 424(d) of the Code) shares of outstanding Common Stock possessing more than 10% of
the total combined voting power of all classes of stock of the Corporation, unless the exercise price of such Option is at-least 110% of the Fair Market Value of the stock subject to the Option and such Option by its terms is not exercisable after
the expiration of five years from the date such Option is granted. 
  
 2.5    Option Repricing/Cancellation and Regrant/Waiver of Restrictions 
  
 Subject to Section 1.4 and Section 3.6 and the specific limitations on Options contained in this Plan, the Committee from time to time may authorize,
generally or in specific cases only, for the benefit of any Eligible Employee, any adjustment in the exercise price, the number of shares subject to or the term of, an Option granted under this Article by cancellation of an outstanding Option and a
subsequent regranting of an option, by amendment, by substitution of an outstanding Option, by waiver or by other legally valid means. Such amendment or other action may result among other changes in an exercise price which is higher or lower than
the exercise or purchase price of the original or prior Option, provide for a greater or lesser number of shares subject to the Option, or provide for a longer or shorter vesting or exercise period. 
  
 3.    OTHER PROVISIONS 
  
 3.1    Rights of Eligible Employees, Participants and
Beneficiaries 
  
 (a)    Employment Status. Status as an Eligible Employee shall not be construed as a commitment that any Option will be granted under this Plan to an Eligible Employee or to Eligible Employees generally.

  
 (b)    No Employment Contract.
Nothing contained in this Plan (or in any other documents related to this Plan or to any Option) shall confer upon any Eligible Employee or other Participant any right to continue in the employ or other service of the Company or constitute any
contract or agreement of employment or other service, nor shall interfere in any way with the right of the Company to change such person’s compensation or other benefits or to terminate the employment of such person, with or without cause, but
nothing contained in this Plan or any document related hereto shall adversely affect any independent contractual right of such person without his or her consent thereto: 
  
 (c)    Plan Not Funded. No Participant, Beneficiary or other person shall have any right, title
or interest in any fund or in any specific asset (including shares of Common 
  

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 Stock, except as expressly otherwise provided) of the Company by reason of any Option hereunder. Neither the provisions
of this Plan (or of any related documents), nor the creation or adoption of this Plan, nor any action taken pursuant to the provisions of this Plan shall create, or be construed to create, a trust of any kind or a fiduciary relationship between the
Company and any Participant, Beneficiary or other person. 
  
 3.2    Adjustments; Acceleration 
  
 (a)    Adjustments. If there shall occur any extraordinary dividend or other extraordinary distribution in respect of the Common Stock (whether in the form of cash, Common Stock, other
securities, or other property), or any recapitalization, stock split (including a stock split in the form of a stock dividend), reverse stock split, reorganization, merger, combination, consolidation, split-up, spin-off, combination, repurchase, or
exchange of Common Stock or other securities of the Corporation, or there shall occur any other like corporate transaction or event in respect of the Common Stock, then the Committee shall, in such manner and to such extent (if any) as it deems
appropriate and equitable (1) proportionately adjust any or all of (a) the number and type of shares of Common Stock (or other securities) which thereafter may be made the subject of Options (including the specific maximum and numbers of shares set
forth elsewhere in this Plan), (b) the number, amount and type of shares of Common Stock (or other securities or property) subject to any or all outstanding options, (c) the grant, purchase, or exercise price of any or all outstanding Options, (d)
the securities issuable upon exercise of any outstanding Options, or (2) in the case of an extraordinary dividend or other distribution, merger, reorganization, consolidation, combination, sale of assets, split up, exchange, or spin off, make
provision for a cash payment or for the substitution or exchange of any or all outstanding Options or the securities deliverable to the holder of any or all outstanding options based upon the distribution or consideration payable to holders of the
Common Stock of the Corporation upon or in respect of such event; provided, however, in each case, that with respect to Incentive Stock Options, no such adjustment shall be made which would cause the Plan to violate Section 424(a) of the Code or any
successor provisions thereto. 
  
 (b)    Acceleration of Options Upon Change in Control. As to any Eligible Employee Participant, unless prior to a Change in Control Event the Committee determines that, upon its occurrence, there shall be
acceleration of benefits under options or determines that only certain or limited benefits under Options shall be accelerated and the extent to which they shall be accelerated, and/or establishes a different time in respect of such Event for such
acceleration, then upon the occurrence of a Change in Control Event each unvested Option shall not become immediately exercisable. The Committee may override the limitations on acceleration in this Section 3.2(b) by express provision in the Option
Agreement and may accord any Eligible Employee a right to any acceleration, whether pursuant to the option Agreement or otherwise, in such circumstances as the Committee may approve. Any acceleration of Options shall comply with applicable
regulatory requirements, including, without limitation, Section 422 of the Code. 
  
 (c)    Possible Early Termination of Accelerated Options. If any Option or other right to acquire Common Stock under this Plan has been fully accelerated as permitted by Section 3.2(b) but
is not exercised prior to (i) a dissolution of the Corporation, or (ii) a reorganization event described in Section 3.2(a) that the Corporation does not survive, or (iii) the consummation of reorganization event described in Section 3.2(a) that
results in a Change of 
  

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 Control approved by the Board, and no provision has been made for the survival, substitution, exchange or other
settlement of such Option or right, such Option or right shall thereupon terminate. 
  
 3.3    Effect of Termination of Employment 
  
 The Committee shall establish in respect of each Option granted to an Eligible Employee the effect of a termination of employment on the rights and
benefits thereunder and in so doing may make distinctions based upon the cause of termination. 
  
 3.4    Compliance with Laws 
  
 This Plan, the granting and vesting of Options under this Plan and the issuance and delivery of shares of Common Stock under this Plan or under Options
granted hereunder are subject to compliance with all applicable federal and state laws, rules and regulations (including, but not limited to, state and federal securities laws and federal margin requirements), and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for the Corporation, be necessary or advisable in connection therewith. Any securities delivered under this Plan shall be subject to such restrictions, and the person acquiring
such securities shall, if requested by the Corporation, provide such assurances and representations to the Corporation as the Corporation may deem necessary or desirable to assure compliance with all applicable legal requirements. 
  
 3.5    Tax Withholding 
  
 (a)    Cash or Shares. Upon any exercise or
vesting of any Option or upon the disposition of shares of Common Stock acquired pursuant to the exercise of an Incentive Stock Option prior to satisfaction of the holding period requirements of Section 422 of the Code, the Company shall have the
right at its option to (i) require the Participant (or Personal Representative or Beneficiary, as the case may be) to pay or provide for payment of the amount of any taxes which the Company may be required to withhold with respect to such
transaction or (ii) deduct from any amount payable in cash the amount of any taxes which the Company may be required to withhold with respect to such cash amount. In any case where a tax is required to be withheld in connection with the delivery of
shares of Common Stock under this Plan, the Committee may grant (either at the time the Option is granted or thereafter) to the Participant the right to elect, pursuant to such rules and subject to such conditions as the Committee may establish, to
have the Corporation reduce the number of shares to be delivered by (or otherwise re-acquire) the appropriate number of shares valued at their then Fair Market Value, to satisfy such withholding obligation. 
  
 (b)    Tax Loans. The Committee may, in its
discretion, authorize a loan to an Eligible Employee in the amount of any taxes which the Company may, be required to withhold with respect to shares of Common Stock received (or disposed of, as the case may be) pursuant to a transaction described
in subsection (a) above. Such a loan shall be for a term, at a rate of interest and pursuant to such other terms and conditions as the Committee, under applicable law, may establish and such loan must comply with the provisions of Section 1.8.

  

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 3.6    Plan Amendment, Termination and Suspension 
  
 (a)    Board Authorization. The Board may, at any
time, terminate or, from time to time, amend, modify or suspend this Plan, in whole or in part. No Options may be granted during any suspension of this Plan or after termination of this Plan, but the Committee shall retain jurisdiction as to Options
then outstanding in accordance with the terms of this Plan. 
  
 (b)    Stockholder Approval. If any amendment would (i) materially increase the benefits accruing to Participants under this Plan, (ii) materially increase the aggregate number of securities that may be issued
under this Plan, or (iii) materially modify the requirements as to eligibility for participation in this Plan, then to the extent then required by Rule 16b-3 to secure benefits thereunder or to avoid liability under Section 16 of the Exchange Act
(and Rules thereunder) or required under Section 425 of the Code or any other applicable law, or deemed necessary or advisable by the Board, such amendment shall be subject to stockholder approval. 
  
 (c)    Amendments to Options. Without limiting any
other express authority of the Committee under but subject to the express limits of this Plan, the Committee by agreement or resolution may waive conditions of or limitation on Options to Eligible Employees that the Committee in the prior exercise
of its discretion has imposed, without the consent of a Participant, and may make other changes to the terms and conditions of Options that do not affect in any manner materially adverse to the Employee Participant, his or her rights and benefits
under an option. 
  
 (d)    Limitations on
Amendment to Plan and Options. No amendment, suspension or termination of the Plan or change of or affecting any outstanding Option shall, without written consent of the Participant, affect in any manner materially adverse to the Participant any
rights or benefits of the Participant or obligations of the Corporation under any Option granted under this Plan prior to the effective date of such change. Changes contemplated by Section 3.2 shall not be deemed to constitute changes or amendments
for purposes of this Section 3.6. 
  
 3.7    Privileges of Stock Ownership 
  
 Except as otherwise expressly authorized by the Committee or this Plan, a Participant shall not be entitled to any privilege of stock ownership as to any shares of Common Stock not actually delivered to and held of
record by him or her. No adjustment will be made for dividends or other rights as a stockholders for which a record date is prior to such date of delivery. 
  
 3.8    Effective Date of the Plan 
  

This Plan shall be effective as of December 16, 1997, the date of Board approval, subject to stockholder approval within 12 months thereafter.

  
 3.9    Term of the Plan

  
 No Option shall be granted more than 10 years after the
effective date of this Plan (the “termination date”). Unless otherwise expressly provided in this Plan or in an applicable Option Agreement, any Option theretofore granted may extend beyond such date, and all authority of the 

 

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 Committee with respect to Options hereunder shall continue during any suspension of this Plan and in respect of
outstanding Options on such termination date. 
  
 3.10    Governing Law; Construction; Severability 
  
 (a)    Choice of Law. This Plan, the Options, all documents evidencing Options and all other related documents shall be
governed by, and construed in accordance with the laws of the State of Utah. 
  
 (b)    Severability. If any provision shall be held by a court of competent jurisdiction to be invalid and unenforceable, the remaining provisions of this Plan shall continue in effect.

  
 (c)    Plan Construction. It is the
intent of the Corporation that this Plan and Options hereunder satisfy and be interpreted in a manner that in the case of Participants who are or may be subject to Section 16 of the Exchange Act satisfies the applicable requirements of Rule 16b-3 so
that such persons will be entitled to the benefits of Rule 16b-3 or other exemptive rules under Section 16 of the Exchange Act and will not be subjected to avoidable liability thereunder. If any provision of this Plan or of any Option would
otherwise frustrate or conflict with the intent expressed above, that provision to the extent possible shall be interpreted and deemed amended so as to avoid such conflict, but to the extent of any remaining irreconcilable conflict with such intent
as to such persons in the circumstances, such provision shall be deemed void. 
  
 3.11    Captions 
  
 Captions and headings are given to the sections and subsections of this Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the construction or
interpretation of the Plan or any provision thereof. 
  
 3.12    Effect of Change of Subsidiary Status 
  
 For purposes of this Plan and any Option hereunder, if an entity ceases to be a Subsidiary a termination of employment shall be deemed to have occurred
with respect to each employee of such Subsidiary who does not continue as an employee of another entity within the Company. 
  
 3.13    Non-Exclusivity of Plan 
  

Nothing in this Plan shall limit or be deemed to limit the authority of the Board or the Committee to grant options or authorize any other
compensation, with or without reference to the Common Stock, under any other plan or authority. 
  
 4.    DEFINITIONS 
  
 4.1    Definitions 
  
 (a)    “Beneficiary” shall mean the person, persons, trust or trusts entitled by will or the laws of descent and distribution to receive the benefits specified in the Option 

 

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 Agreement and under this Plan in the event of a Participant’s death, and shall mean the Participant’s personal
representative, executor or administrator if no other Beneficiary is identified and able to act under the circumstances. 
  
 (b)    “Board” shall mean the Board of Directors of the Corporation. 
  
 (c)    “Change in Control Event” shall
mean any of the following: 
  
 (i)    Approval by the stockholders of the Corporation of the dissolution or liquidation of the Corporation; 
  
 (ii)    Approval by the stockholders of the Corporation of an agreement to merge or consolidate, or otherwise
reorganize, with or into one or more entities that are not Subsidiaries, as a result of which less than 50% of the outstanding voting securities of the surviving or resulting entity immediately after the reorganization are, or will be, owned by
stockholders of the Corporation immediately before such reorganization (assuming for purposes of such determination that there is no change in the record ownership of the Corporation’s securities from the record date for such approval until
such reorganization and that such record owners hold no securities of the other parties to such reorganization ; 
  
 (iii)    Approval by the stockholders of the Corporation of the sale of substantially all of the Corporation’s
business and/or assets to a person or entity which is not a Subsidiary; 
  
 (iv)    Any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) (other than a person having such ownership at the time of adoption of this Plan) becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act); directly or indirectly, of securities of the Corporation representing more than 50% of the combined voting power of the Corporation’s then outstanding securities
entitled to then vote generally in the election of directors of the Corporation; or 
  
 (v)    During any period not longer than two consecutive years, individuals who at the beginning of such period
constituted the Board cease to constitute at least a majority thereof, unless the election, or the nomination for election by the Corporation’s stockholders, of each new Board member was approved by a vote of at least three-fourths of the Board
members then still in office who were Board members at the beginning of such period (including for these purposes, new members whose election or nomination was so approved). 
  
 (d)    “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time. 
  
 (e)    “Commission”
shall mean the Securities and Exchange Commission. 
  

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 (f)    “Committee” shall mean a committee appointed by the Board to
administer this Plan, which committee shall be comprised only of two or more directors or such greater number of directors as may be required under applicable law, each of whom, during such time as one or more Participants may be subject to Section
16 of the Exchange Act, shall be Disinterested. Each member of the Committee shall be an “outside director” as defined in Code Section 162(m) and the regulations thereunder promulgated by the Treasury Department. 
  
 (g)    “Common Stock” shall mean the
Non-Voting Common Stock of the Corporation and such other securities or property as may become subject to Options, pursuant to an adjustment made under Section 3.2 of this Plan. 
  
 (h)    “Company” shall mean, collectively, the Corporation and its Subsidiaries.

  
 (i)    “Corporation”
shall mean Vinca Corporation, a Utah corporation, and its successors. 
  
 (j)    “Disinterested” shall mean disinterested within the meaning of. any applicable regulatory requirements, including Rule 16b-3. 
  
 (k)    “Eligible Employee” shall mean an officer (whether or not a director) or key
employee of the Company. For purposes of this Plan, the term key employee shall also include consultants and advisors to the Company. 
  
 (l)    “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 (m)    “Exchange Act” shall mean the
Securities Exchange Act of 1934, as amended from time to time. 
  
 (n)    “Fair Market Value” shall mean (i) if the stock is listed or admitted to trade on a national securities exchange, the closing sales price of the stock on the Composite Tape, as published in the
Western Edition of The Wall Street Journal, of the principal national securities exchange on which the stock is so listed or admitted to trade, on such date, or, if there is no trading of the stock on such date, then the closing price of the stock
as quoted on such Composite Tape on the next preceding date on which there was trading in such shares; (ii) if the stock is not listed or admitted to trade on a national securities exchange, the last sales price for the stock on such date, as
furnished by the National Association of Securities Dealers, Inc. (“NASD”) through the NASDAQ National Market Reporting System or a similar organization if the NASD is no longer reporting such information; (iii) if the stock is not listed
or admitted to trade on a national securities exchange and is not reported on the National Market Reporting System, the mean between the bid and asked price for the stock on such date, as furnished by the NASD or a similar organization; or (iv) if
the stock is not listed or admitted to trade on a national securities exchange, is not reported on the National Market Reporting System and if bid and asked prices for the stock are not furnished by the NASD or a similar organization, the value as
established by the Committee at such time for purposes of this Plan. 
  

 -12- 

 (o)    “Grant Date” shall mean the date upon which the Committee
took the action granting an Option or such later date as the Committee designates as the Grant Date at the time of the option is granted. 
  
 (p)    “Incentive Stock Option” shall mean an Option which is designated as an incentive stock option within the
meaning of Section 422A of the Code, the award of which contains such provisions as are necessary to comply with that section. 
  
 (q)    “Nonqualified Stock Option” shall mean an Option that is designated as a Nonqualified Stock Option and shall
include any Option intended as an Incentive Stock Option that fails to meet the applicable legal requirements thereof. Any option granted hereunder that is not designated as an Incentive Stock Option shall be deemed to be designated a Nonqualified
Stock Option under this Plan and not an incentive stock option under the Code. 
  
 (r)    “Non-Employee Director” shall mean a member of the Board of Directors of the Corporation who is not an officer or employee of the Company. 
  
 (s)    “Option” shall mean an option to
purchase Common Stock under this Plan. The Committee shall designate any Option granted to an Eligible Employee as a Nonqualified Stock Option or an Incentive Stock Option. 
  
 (t)    “Option Agreement” shall mean any writing setting forth the terms of an Option
that has been authorized by the Committee. 
  
 (u)    “Option Period” shall mean the period beginning on the Grant Date and ending on the expiration date of such Option. 
  
 (v)    “Participant” shall mean an Eligible Employee who has been granted an Option
under this Plan. 
  
 (w)    “Personal
Representative” shall mean the person or persons who, upon the disability or incompetence of a Participant, shall have acquired on behalf of the Participant, by legal proceeding or otherwise, the power to exercise the rights or receive
benefits under this Plan and who shall have become the legal representative of the Participant. 
  
 (x)    “Plan” shall mean this 1997 Stock Option Plan. 
  
 (y)    “QDRO” shall, mean a qualified domestic relations order as defined in Section
414(p) of the Code or Title I, Section 206 (d) (3) of ERISA (to the same extent as if this Plan were subject thereto), or the applicable rules thereunder. 
  
 (aa)    “Retirement” shall mean retirement with the consent of the Company. 
  
 (bb)    “Rule 16b-3” shall mean Rule
16b-3 as promulgated by the Commission pursuant to the Exchange Act. 
  
 (cc)    “Securities Act” shall mean the Securities Act of 1933, as amended from time to time. 
  

 -13- 

 (dd)    “Subsidiary” shall mean any corporation or other entity a
majority of whose outstanding voting stock or voting power is beneficially owned directly or indirectly by the Corporation. 
  
 (ee)    “Total Disability” shall mean a “permanent and total disability within the meaning of Section 22 (e) (3)
of the Code and such other disabilities, infirmities, afflictions or conditions as the Committee by rule may include. 
  

 -14-QUALIX GROUP 1997 STOCK OPTION PLAN

 EXHIBIT 4.6 
 QUALIX GROUP, INC. 
 1997 STOCK OPTION PLAN 
  
 ARTICLE ONE 
 GENERAL PROVISIONS 
  

	I.	PURPOSE OF THE PLAN 

  
 This 1997 Stock Option Plan is intended to promote the interests of Qualix Group, Inc., a Delaware corporation, by providing eligible persons with the
opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in the Corporation as an incentive for them to remain in the service of the Corporation. 
  
 Capitalized terms shall have the meanings assigned to such terms in the attached Appendix. 
  

	II.	STRUCTURE OF THE PLAN 

  
 A. The Plan shall be divided into two separate equity programs: 
  

(i) the Discretionary Option Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted
options to purchase shares of Common Stock, and 
  
 (ii) the Automatic Option Grant Program under which Eligible Directors shall automatically receive option grants at periodic intervals to purchase shares of Common Stock. 
  
 B. The provisions of Articles One and Four shall apply to all equity programs under the Plan and shall accordingly govern
the interests of all persons under the Plan. 
  

	III.	ADMINISTRATION OF THE PLAN 

  
 A. The Primary Committee shall have authority to administer the Discretionary Option Grant Program with respect to Section 16 Insiders. Administration of
the Discretionary Option Grant Program with respect to all other persons eligible to participate in that program may, at the Board’s discretion, be vested in the Primary Committee or a Secondary Committee. In addition, the Board may retain the
power to administer the Plan with respect to all persons. The members of the Secondary Committee may be Board members who are Employees eligible to receive discretionary option grants under the Plan or any stock option, stock appreciation, stock
bonus or other stock plan of the Corporation (or any Parent or Subsidiary). 
  
 B. Members of the Primary Committee or any Secondary Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time
terminate the functions of any committee and reassume all powers and authority previously delegated to such committee. 
  

 C. The Plan Administrator shall, within the scope of its administrative functions under the Plan, have
full power and authority to establish such rules and regulations as it may deem appropriate for proper administration of the Plan and to make such determinations under, and issue such interpretations of, the provisions of any program and any
outstanding options thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator within the scope of its administrative functions under the Plan shall be final and binding on all parties who have an interest in the Plan
under its jurisdiction or any option thereunder. 
  
 D. Service on
the Primary Committee or Secondary Committee shall constitute service as a Board member, and members of each such committee shall accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee.
No member of the Primary or Secondary Committee shall be liable for any act or omission made in good faith with respect to the Plan or any option grants made under the Plan. 
  
 E. Administration of the Automatic Option Grant Program shall be self-executing in accordance with the terms of that
program; however, the Plan Administrator (other than the Secondary Committee) may exercise any discretionary functions it deems advisable with respect to option grants made thereunder. 
  

	IV.	ELIGIBILITY 

  
 A. The persons eligible to participate in the Plan are as follows: 
  
 (i) Employees, 
  
 (ii) non-employee members of the Board or of the board of directors of any Parent or Subsidiary, and 
  
 (iii) consultants and other independent advisors who provide
services to the Corporation (or any Parent or Subsidiary). 
  
 B.
The Plan Administrator shall, within the scope of its administrative jurisdiction under the Plan, have full authority (subject to the provisions of the Plan) to determine, with respect to the option grants under the Discretionary Option Grant,
Program, which eligible persons are to receive option grants, the time or times when such option grants are to be made, the number of shares to be covered by each such grant, the status of the granted option as either an Incentive Option or a
Non-Statutory Option, the time or times at which each option is to become exercisable and the vesting schedule (if any) applicable to the option shares and the maximum term for which the option is to remain outstanding. 
  
 C. The individuals eligible to receive option grants under the Automatic
Option Grant Program shall be (i) those individuals who are first elected or appointed as non-employee Board members after the Plan Effective Date, whether through appointment by the Board or election by the Corporation’s stockholders, and (ii)
those individuals’ who continue to serve as non-employee Board members after one or more Annual Stockholders Meetings held after the 

  

 -2- 

 
Plan Effective Date. A non-employee Board member who has previously been in the employ of the Corporation (or any Parent or Subsidiary) shall not be eligible
to receive an initial option grant under the Automatic Option Grant Program at the time he or she first becomes a non-employee Board member, but such individual shall be eligible to receive periodic option grants under the Automatic Option Grant
Program. 
  

	V.	STOCK SUBJECT TO THE PLAN 

  
 A. The stock issuable under the Plan shall be shares of authorized but unissued or reacquired Common Stock, including shares repurchased by the
Corporation on the open market. The maximum number of shares of Common Stock which may be issued over the term of the Plan shall initially not exceed 1,269,292 shares. Such authorized share reserve is comprised of (i) the number of shares which
remained available for issuance, as of the Plan Effective Date, under the Predecessor Plan as last approved by the Corporation’s stockholders prior to such date, including the shares subject to the outstanding options incorporated into the Plan
and any other shares which would have been available for future option grants under the Predecessor Plan, plus (ii) an additional increase of 200,000 shares authorized by the Board under the Plan, subject to stockholder approval. 
  
 B. The number of shares of Common Stock available for issuance under the Plan
shall automatically increase on the first trading day after June 30 each calendar year beginning June 30, 1997, by an amount equal to five percent (5%) of the shares of Common Stock outstanding on the trading day immediately preceding June 30; but
in no event shall any such annual increase exceed 480,000 shares. 
  
 C. No one person participating in the Plan may receive options and separately exercisable stock appreciation rights for more than 200,000 shares of Common Stock in the aggregate each calendar year. 
  
 D. Shares of Common Stock subject to outstanding options shall be available
for subsequent issuance under the Plan to the extent (i) the options (including any options incorporated from the Predecessor Plan) expire or terminate for any reason prior to exercise in full or (ii) the options are canceled in accordance with the
cancellation-regrant provisions of Article Four. All shares issued under the Plan (including shares issued upon exercise of options incorporated from the Predecessor Plan), whether or not those shares are subsequently repurchased by the Corporation
pursuant to its repurchase rights under the Plan, shall reduce on a share-for-share basis the number of shares of Common Stock available for subsequent issuance under the Plan. In addition, should the exercise price of an option under the Plan
(including any option incorporated from the Predecessor Plan) be paid with shares of Common Stock or should shares of Common Stock otherwise issuable under the Plan be withheld by the Corporation in satisfaction of the withholding taxes incurred in
connection with the exercise of an option under the Plan, then the number of shares of Common Stock available for issuance under the Plan shall be reduced by the gross number of shares for which the option is exercised, and not by the net number of
shares of Common Stock issued to the holder of such option. 
  

 -3- 

 E. 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 maximum number
and/or class of securities issuable under the Plan, (ii) the maximum number and/or class of securities for which the share reserve is to increase automatically each year, (iii) the number and/or class of securities for which any one person may be
granted options and separately exercisable stock appreciation rights over the term of the Plan, (iv) the number and/or class of securities for which automatic option grants are to be subsequently made per Eligible Director under the Automatic Option
Grant Program and (v) the number and/or class of securities and the exercise price per share in effect under each outstanding option (including any option incorporated from the Predecessor Plan) in order to prevent the dilution or enlargement of
benefits thereunder. The adjustments determined by the Plan Administrator shall be final, binding and conclusive. 
  
 ARTICLE TWO 
 DISCRETIONARY OPTION GRANT PROGRAM 
  

	I.	OPTION TERMS 

  
 Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however, that each such document
shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options. 
  
 A. Exercise Price. 
  

1. The exercise price per share shall be fixed by the Plan Administrator but shall not be less than eighty-five percent (85%) of the
Fair Market Value per share of Common Stock on the option grant date. 
  
 2. The exercise price shall become immediately due upon exercise of the option and shall, subject to the provisions of Section I of Article Four and the documents evidencing the option, be payable in one or more of
the forms specified below: 
  
 (i) cash or check
made payable to the Corporation, 
  
 (ii) shares
of Common Stock held 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 
  
 (iii) to the extent the option is exercised for vested
shares, through a special sale and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable written instructions to (a) 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 (b) the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm in order to complete the sale. 
  

 -4- 

 Except to the extent such sale and remittance procedure is utilized, payment of the
exercise price for the purchased shares must be made on the Exercise Date. 
  
 B. Exercise and Term of Options. Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in
the documents evidencing the option. However, no option shall have a term in excess of ten (10) years measured from the option grant date. 
  
 C. Effect of Termination of Service. 
  
 1. The following provisions shall govern the exercise of any options held by the Optionee at the time of cessation of Service or death:

  
 (i) Any option outstanding at the time of the
Optionee’s cessation of Service for any reason shall remain exercisable for such period of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option, but no such option shall be
exercisable after the expiration of the option term. 
  
 (ii) Any option exercisable in whole or in part by the Optionee at the time of death may be subsequently exercised by the personal representative of the Optionee’s estate or by the person or persons to whom the option is transferred
pursuant to the Optionee’s will or in accordance with the laws of descent and distribution. 
  
 (iii) During the applicable post-Service exercise period, the option may not be exercised in the aggregate for more than the number of
vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and
cease to be outstanding for any vested shares for which the option has not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Service, terminate and cease to be outstanding to the extent it is not
exercisable for vested shares on the date of such cessation of Service. 
  
 (iv) Should the Optionee’s Service be terminated for Misconduct, then all outstanding options held by the Optionee shall terminate immediately and cease to be outstanding. 
  
 (v) In the event of a Corporate Transaction, the provisions
of Section III of this Article Two shall govern the period for which the outstanding options are to remain exercisable following the Optionee’s cessation of Service and shall supersede any provisions to the contrary in this section. 

 

 -5- 

 2. The Plan Administrator shall have the discretion, exercisable either at the time an
option is granted or at any time while the option remains outstanding, to: 
  
 (i) extend the period of time for which the option is to remain exercisable following the Optionee’s cessation of Service from the period otherwise in effect for that option to such greater period of time as the
Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 
  
 (ii) permit the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested
shares of Common Stock for which such option is exercisable at the time of the Optionee’s cessation of Service but also with respect to one or more additional installments in which the Optionee would have vested under the option had the
Optionee continued in Service. 
  
 D. Stockholder
Rights. The holder of an option shall have no stockholder rights with respect to the shares subject to the option until such person shall have exercised the option, paid the exercise price and become a holder of record of the purchased
shares. 
  
 E. Repurchase Rights. The Plan
Administrator shall have the discretion to grant options which are exercisable for unvested shares of Common Stock. Should the Optionee cease Service while holding such unvested shares, the Corporation shall have the right to repurchase, at the
exercise price paid per share, any or all of those unvested shares. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall
be established by the Plan Administrator and set forth in the document evidencing such repurchase right. 
  
 F. Limited Transferability of Options. During the lifetime of the Optionee, the option shall be exercisable only by the Optionee and shall
not be assignable or transferable other than by will or by the laws of descent and distribution following the Optionee’s death. However, a Non-Statutory Option may be assigned (i) to a member of the immediate family of the Optionee or to a
trust established for the benefit of one or more members of the immediate family of the Optionee, provided that the assignment shall not be effective until written notice of the assignment is received by the Plan Administrator, or (ii) in accordance
with terms approved in advance by the Plan Administrator. The terms applicable to the assigned option (or portion thereof) shall be the same as those in effect for the option immediately prior to such assignment and shall be set forth in such
documents issued to the assignee as the Plan Administrator may deem appropriate. 
  

 -6- 

	II.	INCENTIVE OPTIONS 

  
 The terms specified below shall be applicable to all Incentive Options. Except as modified by the provisions of this Section II, all the provisions of
Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options when issued under the Plan shall not be subject to the terms of this Section II. 
  
 A. Eligibility. Incentive Options may only be granted to
Employees. 
  
 B. Exercise Price. The exercise price
per share shall not be less than 100% of the Fair Market Value per share of Common Stock on the option grant date. 
  
 C. Dollar Limitation. To the extent required by Code Section 422, the aggregate Fair Market Value of the shares of Common Stock (determined
as of the respective date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Corporation or any Parent or Subsidiary) may for the first time become exercisable as Incentive
Options during any one (1) calendar year shall not exceed the sum of $100,000. To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing limitation on the
exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted. 
  
 D. 10% Stockholder. If any Employee to whom an Incentive Option is granted is a 10% Stockholder, then to the extent required by Code Section
422, the exercise price per share shall not be less than 110% of the Fair Market Value per share of Common Stock on the option grant date, and the option term shall not exceed five (5) years measured from the option grant date. 
  

	III.	CORPORATE TRANSACTION/CHANGE IN CONTROL 

  
 A. In the event of any Corporate Transaction, each outstanding option shall automatically accelerate so that each such option shall, immediately prior to
the effective date of the Corporate Transaction, become fully exercisable for all of the shares of Common Stock at the time subject to such option and may be exercised for any or all of those shares as fully-vested shares of Common Stock. However,
an outstanding option shall not so accelerate if and to the extent: (i) such option is, in connection with the Corporate Transaction, either to be assumed by the successor corporation (or parent thereof) or to be replaced with a comparable option to
purchase shares of the capital stock of the successor corporation (or parent thereof), (ii) such option is to be replaced with a cash incentive program of the successor corporation which preserves the spread existing on the unvested option shares at
the time of the Corporate Transaction and provides for subsequent payout in accordance with the same vesting schedule applicable to such option or (iii) the acceleration of such option is subject to other limitations imposed by the Plan
Administrator at the time of the option grant. The determination of option comparability under clause (i) above shall be made by the Plan Administrator, and its determination shall be final, binding and conclusive. 
  
 B. All outstanding repurchase rights shall also terminate automatically, and
the shares of Common Stock subject to those terminated rights shall immediately vest in full, in the event of any Corporate Transaction, except to the extent: (i) those repurchase rights are to be 

  

 -7- 

 
assigned to the successor corporation (or parent thereof) in connection with such Corporate Transaction or (ii) such accelerated vesting is precluded by
other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
  
 C. The Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at any time while the option remains
outstanding, to provide for the automatic acceleration of one or more outstanding options (and the automatic termination of one or more outstanding repurchase rights with the immediate vesting of the shares of Common Stock subject to those rights)
upon the occurrence of a Corporate Transaction, whether or not those options are to be assumed or replaced (or those repurchase rights are to be assigned) in the Corporate Transaction. 
  
 D. Immediately following the consummation of the Corporate Transaction, all outstanding options shall terminate and cease to
be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
  
 E. Each option which is assumed in connection with a Corporate Transaction shall be appropriately adjusted, immediately after such Corporate Transaction, to apply to the number and class of securities which would have
been issuable to the Optionee in consummation of such Corporate Transaction had the option been exercised immediately prior to such Corporate Transaction. Appropriate adjustments shall also be made to (i) the number and class of securities available
for issuance under the Plan on both an aggregate and per Optionee basis following the consummation of such Corporate Transaction and (ii) the exercise price payable per share under each outstanding option, provided the aggregate exercise
price payable for such securities shall remain the same. 
  
 F.
Any options which are assumed or replaced in the Corporate Transaction and do not otherwise accelerate at that time, shall automatically accelerate in full (and any of the Corporation’s outstanding repurchase rights which do not otherwise
terminate at the time of the Corporate Transaction shall automatically terminate and the shares of Common Stock subject to those terminated rights shall immediately vest in full) in the event the Optionee’s Service should subsequently terminate
by reason of an Involuntary Termination within twelve (12) months following the effective date of such Corporate Transaction. Any options so accelerated shall remain exercisable for all of the shares which are then exercisable and/or vested until
the earlier of (i) the expiration of the option term or (ii) the expiration of the one (1)-year period measured from the effective date of the Involuntary Termination. 
  
 G. The Plan Administrator shall have the discretion, exercisable either at the time the option is granted or at any time
while the option remains outstanding, to (i) provide for the automatic acceleration of one or more outstanding options (and the automatic termination of one or more outstanding repurchase rights with the immediate vesting of the shares of Common
Stock subject to those rights) upon the occurrence of a Change in Control or (ii) condition any such option acceleration (and the termination of any outstanding repurchase rights) upon the subsequent Involuntary Termination of the Optionee’s
Service within a specified period following the effective date of such Change in Control. Any options accelerated in connection with a Change in Control shall remain fully exercisable until the expiration or sooner termination of the option term.

  

 -8- 

 H. The portion of any Incentive Option accelerated in connection with a Corporate Transaction or Change
in Control shall remain exercisable as an Incentive Option only to the extent the applicable $100,000 limitation is not exceeded. To the extent such dollar limitation is exceeded, the accelerated portion of such option shall be exercisable as a
Non-Statutory Option under the Federal tax laws. 
  
 I. The grant
of options under the Discretionary Option Grant Program shall in no way affect the right of the Corporation 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. 
  

	IV.	STOCK APPRECIATION RIGHTS 

  
 A. The Plan Administrator shall have full power and authority to grant to selected Optionees tandem stock appreciation rights. 
  
 B. The following terms shall govern the grant and exercise of tandem stock
appreciation rights: 
  
 (i) One or more
Optionees may be granted the right, exercisable upon such terms as the Plan Administrator may establish, to elect between the exercise of the underlying option for shares of Common Stock and the surrender of that option in exchange for a
distribution from the Corporation in an amount equal to the excess of (A) the Fair Market Value (on the option surrender date) of the number of shares in which the Optionee is at the time vested under the surrendered option (or surrendered portion
thereof) over (B) the aggregate exercise price payable for such shares. 
  
 (ii) No such option surrender shall be effective unless it is approved by the Plan Administrator. If the surrender is so approved, then the distribution to which the Optionee shall be entitled may be made in shares of
Common Stock valued at Fair Market Value on the option surrender date, in cash, or partly in shares and partly in cash, as the Plan Administrator shall in its sole discretion deem appropriate. 
  
 (iii) If the surrender of an option is rejected by the Plan
Administrator, then the Optionee shall retain whatever rights the Optionee had under the surrendered option (or surrendered portion thereof) on the option surrender date and may exercise such rights at any time prior to the later of (A) five
(5) business days after the receipt of the rejection notice or (B) the last day on which the option is otherwise exercisable in accordance with the terms of the documents evidencing such option, but in no event may such rights be exercised more than
ten (10) years after the option grant date. 
  

 -9- 

 ARTICLE THREE 
 AUTOMATIC OPTION GRANT PROGRAM 
  

	I.	OPTION TERMS 

  
 A. Grant Dates. Option grants shall be made on the dates specified below: 
  
 1. Each Eligible Director who is first elected or appointed as a non-employee Board member after the Plan
Effective Date shall automatically be granted on the date of such initial election or appointment (as the case may be), a Non-Statutory Option to purchase 20,000 shares of Common Stock. 
  
 2. On the date of each Annual Stockholders Meeting, beginning with the first Annual Meeting after June 30,
1997, each individual who is to continue to serve as an Eligible Director after such meeting, shall automatically be granted, whether or not such individual is standing for re-election as a Board member at that Annual Meeting, a Non-Statutory Option
to purchase 10,000 shares of Common Stock, provided such individual has served as a nonemployee Board member for at least six (6) months prior to the date of such Annual Meeting. There shall be no limit on the number of such 10,000-share option
grants any one Eligible Director may receive over his or her period of Board service. 
  
 B. Exercise Price. 
  
 1. The exercise price per share shall be equal to 100% of the Fair Market Value per share of Common Stock on the option grant date. 
  
 2. The exercise price shall be payable in one or more of the alternative forms authorized under the
Discretionary Option Grant Program. Except to the extent the sale and remittance procedure specified thereunder is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 
  
 C. Option Term. Each option shall have a term of ten (10) years
measured from the option grant date. 
  
 D. Exercise and
Vesting of Options. Each option shall become exercisable for the option shares in a series of four (4) equal and successive annual installments over the Optionee’s period of continued service as a Board member, with the first such
installment to vest upon the Optionee’s completion of one (1) year of Board service measured from the option grant date. 
  
 E. Effect of Termination of Board Service. The following provisions shall govern the exercise of any options held by the Optionee at the
time the Optionee ceases to serve as a Board member: 
  
 (i) The Optionee (or, in the event of Optionee’s death, the personal representative of the Optionee’s estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or in accordance with the
laws of descent and distribution) shall have a twelve (12)-month period following the date of such cessation of Board service in which to exercise each such option. 
  

 -10- 

 (ii) During the twelve (12)-month exercise period, the option may not be exercised in the
aggregate for more than the number of shares of Common Stock for which the option is exercisable at the time of the Optionee’s cessation of Board service. 
  

(iii) Should the Optionee cease to serve as a Board member by reason of death or Permanent Disability, then the option shall
immediately vest so that such option may, during the twelve (12)-month exercise period following such cessation of Board service, be exercised for all or any portion of such shares of Common Stock. 
  
 (iv) In no event shall the option remain exercisable after
the expiration of the option term. Upon the expiration of the twelve (12)-month exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any shares for which the option has
not been exercised. However, the option shall, immediately upon the Optionee’s cessation of Board service, terminate and cease to be outstanding to the extent it is not exercisable on the date of such cessation of Board service. 
  

	II.	CORPORATE TRANSACTION/CHANGE IN CONTROL 

  
 A. In the event of any Corporate Transaction, each outstanding automatic option shall, immediately prior to the effective date of the Corporate
Transaction, become fully exercisable for all of the shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such shares of Common Stock. Immediately following the consummation of the Corporate
Transaction, each automatic option grant shall terminate and cease to be outstanding, except to the extent assumed by the successor corporation (or parent thereof). 
  
 B. In connection with any Change in Control, the shares of Common Stock at the time subject to each outstanding automatic
option shall, immediately prior to the effective date of the Change in Control, become fully exercisable for all of the shares of Common Stock at the time subject to such option and may be exercised for all or any portion of such shares of Common
Stock. Each such option shall remain exercisable until the expiration or sooner termination of the option term. 
  
 C. The grant of options under the Automatic Option Grant Program shall in no way affect the right of the Corporation 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. 
  

	III.	REMAINING TERMS 

  
 The remaining terms of each option granted under the Automatic Option Grant Program shall be the same as the terms in effect for option grants made under
the Discretionary Option Grant Program. 
  

 -11- 

 ARTICLE FOUR 
 MISCELLANEOUS 
  

	I.	FINANCING 

  
 A. The Plan Administrator may permit any Optionee to pay the option exercise price under the Plan by delivering a promissory note payable in one or more
installments. The terms of any such promissory note (including the interest rate and the terms of repayment) shall be established by the Plan Administrator in its sole discretion. Promissory notes may be authorized with or without security or
collateral. In all events, the maximum credit available to the Optionee may not exceed the sum of (i) the aggregate option exercise price payable for the purchased shares plus (ii) any Federal, state and local income and employment tax liability
incurred by the Optionee in connection with the option exercise. 
  
 B. The Plan Administrator may, in its discretion, determine that one or more such promissory notes shall be subject to forgiveness by the Corporation in whole or in part upon such terms as the Plan Administrator may deem appropriate.

  

	II.	CANCELLATION AND REGRANT OF OPTIONS 

  
 The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent of the affected option holders, the
cancellation of any or all outstanding options under the Plan (including outstanding options incorporated from the Predecessor Plan) and to grant in substitution new options covering the same or different number of shares of Common Stock but with an
exercise price per share based on the Fair Market Value per share of Common Stock on the new option grant date 
  

	III.	TAX WITHHOLDING 

  
 A. The Corporation’s obligation to deliver shares of Common Stock upon the exercise of options or stock appreciation rights under the Plan shall be
subject to the satisfaction of all applicable Federal, state and local income and employment tax withholding requirements. 
  
 B. The Plan Administrator may, in its discretion, provide any or all holders of Non-Statutory Options under the Plan with the right to use shares of
Common Stock in satisfaction of all or part of the Taxes incurred by such holders in connection with the exercise of their options. Such right may be provided to any such holder in either or both of the following formats: 
  
 (i) Stock Withholding: The election to have the
Corporation withhold, from the shares of Common Stock otherwise issuable upon the exercise of such Non-Statutory Option, a portion of those shares with an aggregate Fair Market Value equal to the percentage of the Taxes (not to exceed 100%)
designated by the holder. 
  
 (ii) Stock
Delivery: The election to deliver to the Corporation, at the time the Non-Statutory Option is exercised, one or more shares of Common Stock previously acquired by such holder (other than in connection with the option 

  

 -12- 

 
exercise triggering the Taxes) with an aggregate Fair Market Value equal to the percentage of the Taxes (not to exceed 100%) designated by the holder.

  

	IV.	EFFECTIVE DATE AND TERM OF THE PLAN 

  
 A. The Discretionary Option Grant Program became effective on the Plan Effective Date. The Automatic Option Grant Program became effective on the Plan
Effective Date. The Automatic Option Grant Program was amended on October 21, 1997 to increase the number of shares issuable to non-employee directors. 
  
 B. The Plan shall serve as the successor to the Predecessor Plan, and no further option grants shall be made under the Predecessor Plan after the Plan
Effective Date. All options outstanding under the Predecessor Plan as of such date shall, immediately upon approval of the Plan by the Corporation’s stockholders, be incorporated into the Plan and treated as outstanding options under the Plan.
However, each outstanding option so incorporated shall continue to be governed solely by the terms of the documents evidencing such option, and no provision of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the
holders of such incorporated options with respect to their acquisition of shares of Common Stock. 
  
 C. The option/vesting acceleration provisions of Article Two relating to Corporate Transactions and Changes in Control may, in the Plan
Administrator’s discretion, be extended to one or more options incorporated from the Predecessor Plan which do not otherwise provide for such acceleration. 
  

D. The Plan shall terminate upon the earliest of (i) December 31, 2006, (ii) the date on which all shares available for issuance under the Plan shall
have been issued pursuant to the exercise of the options under the Plan or (iii) the termination of all outstanding options in connection with a Corporate Transaction. Upon such Plan termination, all options outstanding on such date shall thereafter
continue to have force and effect in accordance with the provisions of the documents evidencing such options. 
  

	V.	AMENDMENT OF THE PLAN 

  
 A. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or
modification shall adversely affect the rights and obligations with respect to options or stock appreciation rights at the time outstanding under the Plan unless the Optionee consents to such amendment or modification. Notwithstanding the foregoing,
the Plan Administrator may amend an outstanding option to reduce the number of option shares previously granted to an optionee provided the reduction applies solely to unvested shares or shares which have not yet become exercisable as of the date of
the amendment. In addition, the Board shall not, without the approval of the Corporation’s stockholders, (i) materially increase the maximum number of shares issuable under the Plan or the maximum number of shares for which any one person may
be granted options or separately exercisable stock appreciation rights in the aggregate over the term of the Plan, except for permissible adjustments in the event of certain changes in the Corporation’s capitalization, or (ii) materially modify
the eligibility requirements for Plan participation. 
  

 -13- 

 B. Options to purchase shares of Common Stock may be granted under the Plan that are in excess of the
number of shares then available for issuance under the Plan, provided any excess shares actually issued are held in escrow until there is obtained stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock
available for issuance under the Plan. If such stockholder approval is not obtained within twelve (12) months after the date the first such excess issuances are made, then (i) any unexercised options granted on the basis of such excess shares shall
terminate and cease to be outstanding and (ii) the Corporation shall promptly refund to the Optionees the exercise price paid for any excess shares issued under the Plan and held in escrow, together with interest (at the applicable Short Term
Federal Rate) for the period the shares were held in escrow, and such shares shall thereupon be automatically canceled and cease to be outstanding. 
  

	VI.	USE OF PROCEEDS 

  
 Any cash proceeds received by the Corporation from the sale of shares of Common Stock under the Plan shall be used for general corporate purposes.

  

	VII.	REGULATORY APPROVALS 

  
 A. The implementation of the Plan, the granting of any option or stock appreciation right under the Plan and the issuance of any shares of Common Stock
upon the exercise of any option or stock appreciation right shall be subject to the Corporation’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options and stock appreciation
rights granted under it and the shares of Common Stock issued pursuant to it. 
  
 B. No shares of Common Stock or other assets shall be issued or delivered under the Plan unless and until there shall have been compliance with all applicable requirements of Federal and state securities laws,
including the filing and effectiveness of the Form S-8 registration statement for the shares of Common Stock issuable under the Plan, and all applicable listing requirements of any stock exchange (or the Nasdaq National Market, if applicable) on
which Common Stock is then listed for trading. 
  

	VIII.	NO EMPLOYMENT/SERVICE RIGHTS 

  
 Nothing in the Plan shall confer upon the Optionee any right to continue in Service for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Corporation (or any Parent or Subsidiary employing or retaining such person) or of the Optionee, which rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any
reason, with or without cause. 
  
 APPENDIX

  
 The following definitions shall be in effect under the
Plan: 
  
 A. Automatic Option Grant Program shall
mean the automatic option grant program in effect under the Plan. 
  

 -14- 

 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 stockholders which the Board does not recommend such stockholders to accept, 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. Code shall mean
the Internal Revenue Code of 1986, as amended. 
  
 E. Common
Stock shall mean the Corporation’s common stock. 
  
 F. Corporate Transaction shall mean either of the following stockholder-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. 
  
 G.
Corporation shall mean Qualix Group, Inc., a Delaware corporation. 
  
 H. Discretionary Option Grant Program shall mean the discretionary option grant program in effect under the Plan. 
  

I. Eligible Director shall mean a non-employee Board member eligible to participate in the Automatic Option Grant Program in accordance
with the eligibility provisions of Article One. 
  

 -15- 

 J. Employee shall mean an individual who is in the employ of the Corporation (or any Parent
or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
  
 K. Exercise Date shall mean the date on which the Corporation shall have received written notice of the option exercise. 
  
 L. 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 on the date in question, as such price is reported
by the National Association of Securities Dealers on the Nasdaq National Market or any successor system. 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 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. 
  
 (iii) For purposes of option grants made on the date the Underwriting Agreement is executed and the initial public offering price of the
Common Stock is established, the Fair Market Value shall be deemed to be equal to the established initial offering price per share. For purposes of option grants made prior to such date, the Fair Market Value shall be determined by the Plan
Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 
  
 M. Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 
  
 N. Involuntary Termination shall mean the termination of the
Service of any individual which occurs by reason of: 
  
 (i) such individual’s involuntary dismissal or discharge by the Corporation for reasons other than Misconduct, or 
  

 -16- 

 (ii) such individual’s voluntary resignation following (A) a change in his or her
position with the Corporation which materially reduces his or her level of responsibility, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and participation in bonus or incentive programs) by more than
fifteen percent (15%) or (C) a relocation of such individual’s place of employment by more than fifty (50) miles, provided and only if such change, reduction or relocation is effected by the Corporation without the individual’s consent.

  
 O. Misconduct shall mean the commission of any
act of fraud, embezzlement or dishonesty by the Optionee, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any other intentional misconduct by such
person adversely affecting the business or affairs of the Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not be deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent
or Subsidiary) may consider as grounds for the dismissal or discharge of any Optionee or other person in the Service of the Corporation (or any Parent or Subsidiary). 
  
 P. 1934 Act shall mean the Securities Exchange Act of 1934, as amended. 
  
 Q. Non-Statutory Option shall mean an option not intended to
satisfy the requirements of Code Section 422. 
  
 R.
Optionee shall mean any person to whom an option is granted under the Discretionary Option Grant or Automatic Option Grant Program. 
  
 S. Parent shall mean any corporation (other than the Corporation) in an unbroken chain of corporations ending with the Corporation, provided
each corporation in the unbroken chain (other than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in
such chain. 
  
 T. Permanent Disability or Permanently
Disabled shall mean the inability of the Optionee to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12)
months or more. 
  
 U. Plan shall mean the
Corporation’s 1997 Stock Option Plan, as set forth in this document. 
  
 V. Plan Administrator shall mean the particular entity, whether the Committee or the Board, which is authorized to administer the Plan with respect to one or more classes of eligible persons, to the
extent such entity is carrying out its administrative functions under the Plan with respect to the persons under its jurisdiction. 
  
 W. Plan Effective Date shall mean the Section 12(g) Registration Date. 
  

 -17- 

 X. Predecessor Plan shall mean the Corporation’s existing 1995 Stock Option Plan.

  
 Y. Primary Committee shall mean the committee of
two (2) or more non-employee Board members appointed by the Board to administer the Discretionary Option Grant Program with respect to Section 16 Insiders. 
  
 Z. Secondary Committee shall mean a committee of one (1) or more Board members appointed by the Board to administer the Discretionary Option
Grant Program with respect to eligible persons other than Section 16 Insiders. 
  
 AA. Section 16 Insider shall mean an officer or director of the Corporation subject to the short-swing profit liabilities of Section 16 of the 1934 Act. 
  
 BB. Section 12(g) Registration Date shall mean the first date
on which the Common Stock is registered under Section 12(g) of the 1934 Act. 
  
 CC. Service shall mean the provision of services to the Corporation (or any Parent or Subsidiary) by a person in the capacity of an Employee, a non-employee member of the board of directors or a
consultant or independent advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant. 
  
 DD. Stock Exchange shall mean either the American Stock Exchange or the New York Stock Exchange. 
  
 EE. Stockholder shall mean the owner of stock (as determined
under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Corporation (or any Parent or Subsidiary). 
  
 FF. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken chain of corporations
beginning with the Corporation, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes
of stock in one of the other corporations in such chain. 
  
 GG.
Taxes shall mean the Federal, state and local income and employment tax liabilities incurred by the holder of Non-Statutory Options or unvested shares of Common Stock in connection with the exercise of those options or the vesting of
those shares. 
  

 -18-

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