Document:

Employment Agreement

 
EXHIBIT 10.5

 
EMPLOYMENT AGREEMENT

 
This EMPLOYMENT AGREEMENT is entered into by
and between Deltagen, Inc., a Delaware corporation (the “Company”), and Joseph M. Limber, the undersigned individual (the “Executive”). 
 
RECITAL 
 
The Company and Executive desire to enter into an Employment Agreement setting forth the terms and conditions of Executive’s
employment with the Company. 
 
AGREEMENT

 
NOW, THEREFORE, in consideration of the mutual
covenants and agreements hereinafter set forth, the Company and Executive agree as follows: 
 
1.  Position, Responsibilities and Term. 
 
(a)  Position and Responsibilities.    Effective with the closing of the Company’s Bridge Loan
financing (the “Effective Date”), Executive will become an employee of the Company and will commence serving on a full-time basis as the interim Chief Executive Officer of the Company (“ICEO”). Effective with the closing of the
Company’s Series A preferred stock financing, Executive will commence serving on a full-time basis as the President and Chief Executive Officer of the Company (“PCEO”). As ICEO or PCEO, Executive will report to the Company’s
Board of Directors (the “Board”). Within the limitations established by the Bylaws of the Company, the Executive shall have the powers and duties commensurate with such positions and such other or different duties on behalf of the Company,
as may be assigned from time to time by the Board. In addition, the Executive will be appointed to the Board effective with the closing of the Company’s Series A preferred stock financing. Executive’s office will be located in Redwood
City, California and his duties shall primarily be performed there subject to necessary business travel. 
 
(b)  At-Will Relationship.    Subject to the terms and conditions of this Agreement, Executive’s
employment at the Company is “at will” and Executive or the Company are free to terminate the employment relationship at any time upon 30 days written notice, with or without Cause (as defined in Section 6). Executive understands and
agrees that upon his termination of employment (the “Termination Date”) for any reason, he shall also be deemed to have voluntarily resigned from any and all offices and/or directorships with the Company and any of the Company’s
subsidiaries or affiliates. 
 
2.  Salary.    Executive will earn a base salary of $365,000 per year (“Base Salary”), which shall cover all hours worked, payable in the time and manner that salary is paid by the
Company to employees generally, and subject to applicable tax withholding. Executive’s Base Salary will be reviewed annually and any adjustments will be within the discretion of the Board consistent with the Company’s policies and based on
Executive’s performance and/or contributions to the Company. 
 
3.  Bonus.    Executive will be eligible to earn an annual cash bonus that will be based on performance objectives established by the Board. The performance objectives for Executive for fiscal
year 2003 shall be established by the Board within 15 days after the Effective Date. The annual target bonus amount shall be equal to 50% of Executive’s Base Salary (the “Target Bonus”), provided that for fiscal year 

 

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2003, such Target Bonus shall be pro-rated based upon the number of days of Executive’s employment in fiscal year 2003 plus thirty,
divided by 365. Executive may earn more or less than the Target Bonus based on performance. The actual amount of bonus paid to Executive, if any, shall be determined by the Board in its sole discretion. 
 
4.  Equity.    Executive will be eligible
to participate in the Company’s 2000 Stock Incentive Plan (the “Plan”) and any other equity incentive plans if and when they are implemented by the Company. Any Company equity securities held by Executive shall be subject, among other
things, to the Company policy on insider trading. 
 
(a)  Initial Stock Option Grant.    The Company will grant Executive an initial stock option (the “Initial Stock Option”) pursuant to the Plan enabling Executive to purchase up to
1,714,285 shares of the Company’s common stock. The Initial Stock Option will be fully vested with respect to 43,731 shares on the date of grant. The remaining 1,670,554 shares subject to the Initial Stock Option will vest pro-rata on a monthly
basis over four years with vesting commencing as of the Effective Date. Vested portions of the Initial Stock Option shall be exercisable at a price per share equal to the “Fair Market Value” (as such term is defined in the Plan) of a share
of the Company’s common stock on the date of grant. The Initial Stock Option shall be an “incentive stock option” (as provided under Section 422 of the Internal Revenue Code of 1986 as amended) to the maximum extent permitted by
applicable law with any nonqualifying portion of the grant constituting a nonstatutory stock option. The grant and terms of the Initial Stock Option shall be subject in all respects to the terms of the Plan and the Company’s standard form of
option agreement (which Executive will execute as a condition of receiving the Initial Stock Option) including without limitation a condition that Executive continues to be employed by the Company as of each vesting date. 
 
(b)  Additional Stock Option
Grants.    Subject to Section 4(d), the Executive will be eligible to receive a one-time stock option grant under the Plan (the “Second Stock Option”) to purchase the Company’s common stock. If awarded, the
Second Stock Option shall be granted immediately prior to (and subject to) the closing of a round of equity financing which occurs after the Effective Date. This Second Stock Option shall be in the amount necessary to enable Executive’s
aggregate total equity stake in the Company to be at least equal to 5% of the number of the Company’s outstanding common shares on a fully-diluted post-financing basis. The Second Stock Option granted pursuant to this Section 4(b) shall: (i)
have a per share exercise price that is equal to the greater of (x) the exercise price for the Initial Stock Option or (y) 25% of the Fair Market Value of a share of the Company’s common stock on the date of grant for the Second Stock Option,
(ii) vest pro-rata on a monthly basis over four years commencing on the date of grant for the Initial Stock Option and (iii) have other terms and conditions that are the same as for the Initial Stock Option. 
 
(c)  Performance Option
Grants.    Subject to Section 4(d), Executive will be eligible to receive an additional stock option grant under the Plan to purchase the number of shares of the Company’s common stock that are equal to 2% of the
Company’s outstanding common shares (measured on the date of option grant on a fully-diluted basis); provided, however, that this additional option grant will only be awarded based upon successful achievement of Company performance milestones.
Such milestones will be established by the Chairman of the Board, in consultation with Board members, within 15 days after the Effective Date. Any option granted pursuant to this Section 4(c) shall: (i) have a per share exercise price that is equal
to the Fair Market Value of a Company common share on the date of grant for the option, (ii) vest pro-rata on a monthly basis over four years commencing on the date of grant for the option and (iii) have other terms and conditions that are the same
as for the Initial Stock Option. 
 

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(d)  Plan Share Grant Limits.    If any applicable Plan share grant limits have been attained with respect to the Plan or Executive and as a result the full option grant(s) contemplated by
Sections 4(b) or 4(c) cannot be awarded in a particular fiscal year, then the granting of the ungranted excess portion of such option(s) will deferred to a subsequent fiscal year(s). In this event, the option grant that has been deferred will be
granted on the first business day of the subsequent fiscal year (subject also to any applicable Plan share grant limits). The per share option exercise price will be equal to the Fair Market Value of a Company common share on the date such grant
would have originally occurred but for the Plan share grant limits (provided that such exercise price may be no lower than 25% of the Fair Market Value of a Company common share on the actual date of option grant) and all other terms will remain as
provided in Sections 4(b) or 4(c) (including without limitation and to the extent permitted by applicable law, the vesting schedule, which shall start on the date the option would have been granted but for the deferral required by this Section 4),
the Plan and standard option agreement. 
 
5.  Benefits and Reimbursements. 
 
(a)  Benefits.    During Executive’s employment with the Company, Executive will be eligible to participate in all Company employee benefit plans and programs at the time or
thereafter made available to all of the Company’s salaried employees generally and officers. Executive shall be entitled to three (3) weeks of paid vacation annually in accordance with Company policy during the term of this Agreement as long as
the scheduling of Executive’s vacation does not interfere with the Company’s normal business operations. 
 
(b)  Business Expense Reimbursement.    During Executive’s employment as ICEO or PCEO,
Executive will be reimbursed for all reasonable and approved business expenses (including, without limitation, travel expenses) upon the properly completed submission of requisite forms and receipts to the Company in accordance with its business
expense reimbursement and travel policies. 
 
6.  Consequences of Termination of Employment. 
 
(a)  For Cause.    For purposes of this Agreement, Executive may be terminated at any time immediately (with no requirement for the advance notice set forth in
Section 1(b)) upon written notice for “Cause” as a result of the occurrence of one or more of the following, provided that in the event any of the foregoing events is capable of being cured, the Company shall provide written notice to
Executive describing the nature of such event and Executive shall thereafter have five (5) days to cure such event: 
 

	 	(i)	 	Executive’s willful misconduct, gross negligence, or intentional failure to act which is performed in bad faith and to the material detriment of the Company or
any of its affiliates; 

 

	 	(ii)	 	Executive’s willful and habitual neglect of his duties of employment; 

 

	 	(iii)	 	Executive’s intentional act contrary to, or intentional failure to act in accordance with, the lawful order of the Board relating to the business of the Company
or any of its affiliates or Executive’s willful violation of any material Company policy; or 

 

	 	(iv)	 	The conviction of Executive of a crime involving moral turpitude or fraud, or a felony, or criminal act against the Company, or any stockholder, subsidiary or
affiliate thereof or any of the assets of any of them. 

 

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In the event
Executive’s employment is terminated for Cause, Executive will be entitled to any accrued and unpaid salary due Executive pursuant to Section 2 through the Termination Date and to any earned, unused vacation owed Executive at the time of the
Termination Date. Any accrued payroll deductions made by Executive under the Company’s 2000 Employee Stock Purchase Plan (“ESPP”) will also be paid to Executive (without interest) along with reimbursement for any authorized business
expenses that have not yet been reimbursed. Executive will be entitled to no other compensation from the Company. 
 
(b)  Termination Without Cause or Constructive Termination.    The Company may terminate
Executive’s employment without Cause or Executive may be “Constructively Terminated.” For purposes of this Agreement, Executive will have been “Constructively Terminated” if Executive resigns from the Company within
forty-five (45) days after the date that any one of the following events has occurred without Executive’s written consent: 
 

	 	(x)	 	Executive has incurred a material reduction in Executive’s responsibilities, duties or authority; 

 

	 	(y)	 	Executive’s Base Salary has been reduced by more than 10% (provided, however, that any proportionate salary reduction in excess of 10% affecting Company
officers shall not constitute a basis for Executive to assert that he has been Constructively Terminated); or 

 

	 	(z)	 	Executive’s principal place of business is relocated by more than 40 miles away from its prior location. 

 
If Executive’s employment with the Company is terminated without Cause by
the Company or Executive is Constructively Terminated, then Executive will be entitled to the following: 
 
(i)  Severance.    Subject to Executive’s continuing compliance with this Agreement, Executive
will receive cash payments for the twelve month period following his Termination Date (paid at the rate of his Base Salary on his Termination Date), payable in the time and manner that salary is paid by the Company to employees generally and subject
to applicable tax withholding. The aggregate total amount of such payments shall not exceed one times Executive’s Base Salary (subject to adjustment by Section 7). Executive will also be paid for accrued and unpaid salary due Executive pursuant
to Section 2 through the Termination Date and to any earned, unused vacation owed Executive at the time of the Termination Date. Any accrued payroll deductions made by Executive under the ESPP will also be paid to Executive (without interest) along
with reimbursement for any authorized business expenses that have not yet been reimbursed. 
 
(c)  Voluntary Termination, Death or Disability.    In the event Executive’s employment with the Company is terminated as a result of Executive’s own
volition or as a result of Executive’s death or by the Company (or Executive) as a result of Executive’s Disability (as such term is defined in Internal Revenue Code Section 22(e)(3)), such termination will have the same economic
consequences as a termination of employment for Cause under Section 6(a). 
 

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(d)  Release of Claims; Mutual Nondisparagement.    As a condition to the receipt of any payments described in this Section 6 (and, if applicable, Section 7) and any other post-termination
benefits, Executive shall be required to: (i) execute (and not revoke) a release of all claims (substantially in the form attached hereto as Exhibit A) arising out of Executive’s employment or the termination thereof including, but not limited
to, any claim of discrimination under state or federal law, (ii) continue to at all times comply with the nondisparagement provisions described in Section 13(l) and (iii) fully comply with Section 6(e). Upon the effectiveness of the Executive’s
release of claims specified in Section 6(d)(i), the Company agrees that its then directors and officers will not make any disparaging statements (oral or written) about Executive in any manner that might be harmful to his business or reputation.

 
(e)  Other
Conditions.    The following conditions must all be satisfied by Executive in connection with his termination of employment for any reason. 
 
(i)  Upon the Termination Date, Executive shall execute the Termination Certificate attached to the
Proprietary Information Agreement (or its successor agreement) executed by Executive; 
 
(ii)  Except as approved in writing by the Company, no later than the Termination Date, Executive shall return to the Company all Company property including, but not limited to, computers,
cell phones, pagers, keys, laboratory notebooks, business cards, intellectual property, etc. and Executive agrees to not make or retain copies, reproductions or summaries of any such property; 
 
(iii)  Executive will fully pay off any outstanding
advances or amounts owed to the Company no later than their applicable due date or Executive’s Termination Date (if no other due date has been previously established); 
 
(iv)  Executive will submit any outstanding expense reports to the Company within thirty (30) days
after the Termination Date; and 
 
(v)  Upon the Termination Date, Executive will no longer represent that Executive is ICEO or PCEO or an officer, director or employee of the Company and, except as approved in writing by the Company, Executive will
immediately discontinue using Executive’s Company mailing address, telephone, facsimile machines, voice mail and e-mail. 
 
(f)  Offset.    Any severance or other payments or benefits made to Executive under this Agreement
may be reduced, in the Company’s discretion, by any amounts Executive owes to the Company. 
 
7.  Change in Control.    In the event of a “Change in Control” (as defined below) and provided that Executive is employed by the Company on the date of
the Change in Control and further provided that Executive’s employment is terminated by the Company without Cause (or Constructively Terminated) within one year following the Change in Control, then (i) all (100%) of Executive’s
then-unvested stock options shall become vested on the Termination Date and (ii) the total payments to be made to Executive under Section 6(b)(i) shall be increased by a pro-rated portion of the Target Bonus (with such pro-rated amount equal to the
Target Bonus amount multiplied by the number of days Executive was employed 

 

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during the fiscal year of termination divided by 365). For purposes of this Agreement, a “Change in Control” shall mean the
occurrence of either of the following: 
 
(i)  The consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting power of the continuing or surviving entity’s
securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who in the aggregate owned less than 10% of the Company’s combined voting power represented by the Company’s outstanding
securities immediately prior to such merger, consolidation or other reorganization; or 
 
(ii)  Any “person” (as such term is used in Section 13(d) and Section 14 of the Securities Exchange Act of 1934), who as of the Effective Date owns less than 10% of the
Company’s combined voting power represented by the Company’s outstanding securities, by the acquisition of securities is or becomes the beneficial owner, directly or indirectly, of securities of the Company representing more than 50% of
the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”) except that
any change in the relative beneficial ownership of the Company’s securities resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of
securities shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company. Thus, for example, any person who as of the Effective Date owns less than
10% of the Company’s outstanding shares, shall cause a Change in Control to occur as of any subsequent date if such person then acquires an additional interest in the Company which, when added to the person’s previous holdings, causes the
person to hold more than 50% of the Company’s outstanding shares. 
 
The term “Change in Control” shall not include any secondary public offering of the Company’s securities or a transaction, the sole purpose of which is to change the state of the Company’s incorporation.

 
8.  Limitation on
Payments.    In the event that it is determined that any payment or distribution of any type to or for Executive’s benefit made by the Company, by any of its affiliates, by any person who acquires ownership or effective
control or ownership of a substantial portion of the Company’s assets (within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”)) or by any affiliate of such
person, whether paid or payable or distributed or distributable pursuant to the terms of an employment agreement or otherwise, would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties with respect to such
excise tax (such excise tax, together with any such interest or penalties, are collectively referred to as the “Excise Tax”), then such payments or distributions or benefits shall be payable either: 
 

	 	(i)	 	in full; or 

 

	 	(ii)	 	as to such lesser amount which would result in no portion of such payments or distributions or benefits being subject to the Excise Tax. 

 

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Executive
shall receive the greater, on an after-tax basis, of (i) or (ii) above. 
 
Unless Executive and the Company agree otherwise in writing, any determination required under this Section 8 shall be made in writing by the Company’s independent accountant (the “Accountant”) whose
determination shall be conclusive and binding. Executive and the Company shall furnish the Accountant such documentation and documents as the Accountant may reasonably request in order to make a determination. The Company shall bear all costs that
the Accountant may reasonably incur in connection with performing any calculations contemplated by this Section 8. 
 
9.  Assignability; Binding Nature.    Commencing on the Effective Date, this Agreement will be binding upon Executive
and the Company and Executive’s respective successors, heirs, and assigns. This Agreement may not be assigned by Executive except that Executive’s rights to compensation and benefits hereunder, subject to the limitations of this Agreement,
may be transferred by will or operation of law. No rights or obligations of the Company under this Agreement may be assigned or transferred except by operation of law in the event of a merger or consolidation in which the Company is not the
continuing entity, or the sale or liquidation of all or substantially all of the assets of the Company provided that the assignee or transferee is the successor to all or substantially all of the assets of the Company and assumes the Company’s
obligations under this Agreement contractually or as a matter of law. 
 
10.  Governing Law; Arbitration.    This Agreement will be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of California. Any controversy, claim
or dispute arising out of or relating to this Agreement, either during the existence of the employment relationship or afterwards, between the parties hereto, their assignees, their affiliates, their attorneys, or agents, shall be settled by
arbitration in Redwood City, California. Such arbitration shall be conducted in accordance with the then prevailing National Rules for the Resolution of Employment Disputes of the American Arbitration Association, as augmented by this Agreement, and
shall be before a single neutral arbitrator licensed to practice law in the state of California. The arbitrator shall apply the same substantive law, the same limitation periods and the same remedies, that would apply if the claims were brought in a
court. The arbitrator shall prepare a written decision containing the essential findings and conclusions on which the award is based. Each party will pay their own attorneys’ fees and costs, except that the arbitrator shall award
attorneys’ fees and costs in accordance with California law. To the extent permitted by applicable law, the Company and the Executive shall equally share in paying the arbitrator’s fees and all arbitration forum costs. Either party may
bring an action in court to compel arbitration under this Agreement, to enforce an arbitration award or to obtain temporary injunctive relief pending a judgment based on the arbitration award. Otherwise, neither party shall initiate or prosecute any
lawsuit in any way related to any claim covered by this arbitration clause. The parties agree to abide by all decisions and awards rendered in such proceedings. Such decisions and awards rendered by the arbitrator shall be final and conclusive and
may be entered in any court having jurisdiction thereof as a basis of judgment and of the issuance of execution for its collection. Except as provided herein, all such controversies, claims or disputes shall be settled in this manner in lieu of any
action at law or equity. The arbitrator shall not have the right to award punitive damages, consequential damages, lost profits or speculative damages to either party. The parties shall keep confidential the existence of the claim, controversy or
disputes from third parties (other than the arbitrator), and the determination thereof, unless otherwise required by law or necessary for the business of the Company. The arbitrator shall be required to follow applicable law. 
 
11.  Withholding.    Anything to the
contrary notwithstanding, all payments made by the Company hereunder to Executive or Executive’s estate or beneficiaries will be subject to tax withholding pursuant 

 

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to any applicable laws or regulations. In lieu of withholding, the Company may, in its sole discretion, accept other provisions for payment
of taxes as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold such taxes have been satisfied. 
 
12.  Entire Agreement.    Except as otherwise specifically provided in this Agreement, this Agreement contains all
the legally binding understandings and agreements between Executive and the Company pertaining to the subject matter of this Agreement and supersedes all such agreements including, but not limited to, any employment or change of control agreements,
whether oral or in writing, previously entered into between the parties. 
 
13.  Miscellaneous. 
 
(a)  No Waiver; Enforceability.    No provision of this Agreement may be amended or waived unless such amendment or waiver is agreed to by Executive and a duly authorized representative of the
Company in writing. No waiver by Executive or the Company of the breach of any condition or provision of this Agreement will be deemed a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent time. In the
event any portion of this Agreement is determined to be invalid or unenforceable for any reason, the remaining portions shall be unaffected thereby and will remain in full force and effect to the fullest extent permitted by law. 
 
(b)  Exclusive
Employment.    Except upon the prior written consent of the Board, Executive shall not during employment with the Company engage, directly or indirectly, in any other business activity which competes with the Company’s
present or contemplated business, nor will he plan or organize any competitive business activity. Executive will not enter into any agreement which conflicts with his duties or obligations to the Company. Executive will not during his employment or
within one (1) year after it ends, without the Company’s express written consent, directly or indirectly, solicit or encourage any employee, agent, independent contractor, supplier, customer, consultant or any other person or company to
terminate or alter a relationship with the Company. 
 
(c)  Confidential Information and Invention Assignments.    Executive is simultaneously executing a Confidential Information and Invention Assignment Agreement (the “Confidential Information
and Invention Assignment Agreement”). The obligations under the Confidential Information and Invention Assignment Agreement shall survive termination of this Agreement for any reason. 
 
(d)  Indemnification.    The Company agrees to defend and indemnify
Executive against any liability that Employee incurs within the scope of his employment with the Company to fullest extent permitted by the Company’s certificate of incorporation and by-laws and applicable law. The Company will use its best
efforts to maintain D&O insurance coverage covering Executive. 
 
(e)  Legal Fees.    The Company shall pay for the reasonable legal fees that are incurred by Executive prior to the Effective Date with respect the negotiation of this Agreement up to a
maximum amount of $3,000. Executive shall submit invoices for any such legal fees to the Company and such invoices shall provide sufficient documentation of the work performed. Any legal fees in excess of $3,000 shall entirely be the responsibility
of the Executive. 
 
(f)  No
Inconsistent Obligations.    Executive is aware of no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with his undertaking employment with the Company. Executive will not disclose to the
Company, or use, or induce the Company to use, any proprietary 

 

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information or trade secrets of others. Executive represents and warrants that he has returned all property and confidential information
belonging to all prior employers. 
 
(g)  Cooperation.    After notice of termination of employment has been provided by either party, Executive shall cooperate with the Company, as reasonably requested by the Company, to effect a
transition of Executive’s responsibilities and to ensure that the Company is aware of all matters being handled by Executive. Executive shall, during the Agreement and after the Termination Date, upon reasonable notice, furnish such information
and proper assistance to the Company as may reasonably be required by the Company in connection with any litigation in which it or any of its subsidiaries or affiliates is, or may become a party; provided, however, that such assistance following
termination of employment shall be furnished at mutually agreeable times. 
 
(h)  Notices.    Any notice, request, consent or approval required or permitted to be given under this Agreement or pursuant to law shall be sufficient if in writing, and if and when sent
by certified or registered mail, with postage prepaid, to Executive’s residence (as noted in the Company’s records), or to the Company’s principal office, as the case may be. 
 
(i)  Business
Activities.    Executive shall devote the substantial portion of his entire business time, attention and energy exclusively to the business and affairs of the Company and its affiliates, as its business and affairs now exist
and as they hereafter may be changed. Executive may serve as a member of the Board of Directors of a limited number of other companies, with the prior written consent of the Board, that do not compete with the Company, and may participate in other
professional, civic, governmental organizations and activities that do not materially affect his ability to carry out his duties hereunder. 
 
(j)  Acknowledgement.    Executive acknowledges that (i) he has consulted with or has had the
opportunity to consult with independent counsel of his own choice concerning this Agreement and has been advised to do so by the Company and (ii) he has read and understands this Agreement, is fully aware of its legal effect, and has entered into it
freely based on his own judgment. 
 
(k)  Counterparts.    This Agreement may be executed in or more counterparts, all of which taken together shall constitute on and the same Agreement. 
 
(l)  Nondisparagement.    Executive will not at any time make any disparaging statements (oral or written) about the Company, or any of its affiliated entities, officers, directors, employees,
stockholders, representatives or agents, or any of the Company’s products or work-in-progress, in any manner that might be harmful to their businesses, business reputations or personal reputations. 
 
14.  Intellectual Property. 
 
(a)  General.    Any and
all intellectual property (including but not limited to inventions, trademarks, trade secrets, copyrights, software or literary creations) made, developed or created by Executive during the term of this Agreement using Company time or Company
equipment, supplies, facilities, resources, or trade secret information or which reasonably relate to the business of the Company or which reasonably relate to any business conducted by the Company during the term of Executive’s employment by
the Company (each, “Intellectual Property”), whether at the request or suggestion of the Company or otherwise, whether alone or in conjunction with others, and whether during regular working hours of work or otherwise, shall be promptly
and fully disclosed by Executive to the Company and shall be the Company’s exclusive property as against Executive, and Executive 

 

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shall promptly deliver to the Company all papers, drawings, models, data and other material relating to any Intellectual Property made,
developed or created by Executive as aforesaid. In addition, Executive covenants and agrees to disclose to the Company any Intellectual Property developed or created by Executive during the term of this Agreement, whether or not such Intellectual
Property relates to the business being conducted by the Company at the time of development or creation of such Intellectual Property. 
 
(b)  Works for Hire.    Executive hereby expressly acknowledges and agrees that any copyrights
developed or created by Executive during the term of this Agreement which reasonably relates to the business of the Company or which reasonably relates to the business conducted by the Company during Executive’s employment by the Company shall
be considered “works made for hire” within the meaning of the Copyright Act of 1976, as amended (17 U.S.C. § 101). Each such copyright as well as all copies of such copyrights in whatever medium fixed or embodied, shall be owned
exclusively by the Company as of the date of creation. 
 
(c)  Cooperation.    Executive shall, upon the Company’s request and without any payment therefor, execute all documents necessary or advisable in the opinion of the Company’s counsel to
register or protect the Company’s Intellectual Property or to vest in the Company full and exclusive title to such Intellectual Property, the expense of registering or protecting the Intellectual Property to be borne by the Company. In
addition, Executive agrees not to file any documents adverse to the Company’s ownership of such Intellectual Property. 
 
(d)  Disclosure.    This Agreement does not apply to Intellectual Property that qualifies fully as a
nonassignable invention under the provisions of California law. Executive hereby covenants and agrees to disclose promptly in writing to the Company all Intellectual Property made or conceived by Executive during the term of Executive’s
employment and for one (1) year thereafter, whether or not Executive believes that such Intellectual Property is subject to this Agreement, to permit a determination by the Company as to whether such Intellectual Property should be the property of
the Company. Any such information will be received in confidence by the Company. 
 
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date set forth below and this Agreement is effective as of the Effective Date. 
 

	 DELTAGEN, INC.:
	 	 	 	 JOSEPH M. LIMBER:

	
	 By:
	 	  

	 	 	 	  

 

	 Name:
	 	  

	 	 	 	 	 	 
	
	 Title:
	 	  

	 	 	 	 	 	 
	
	 Date:
	 	  

	 	 	 	 	 	 

 

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EXHIBIT
A 
GENERAL RELEASE 
 
The undersigned (hereinafter the “Terminated Employee”) hereby releases, discharges and acquits
Deltagen, Inc. (the “Company”), its agents, employees, stockholders, directors, officers, successors, attorneys and assigns (collectively, “Releasees”) from any and all claims, demands, liabilities or causes of action, known or
unknown, against Releasees or any of them, which Terminated Employee now owns or holds or will own or hold at any time in the future, by reason of any action, matter, cause or thing whatsoever related to the termination of the Terminated
Employee’s employment with the Company or in any way related to the employment relationship between the Terminated Employee and the Company and/or arising out of the termination of that employment or relationship, including but not limited to
any and all claims pursuant to the Age Discrimination in Employment Act, 29 U.S.C. ‘ 621 et seq. and any other applicable law, statute, code or ordinance. It is the intention of the Terminated Employee in executing this General
Release that the general release provided for herein shall be effective as a bar to each every claim, demand and cause of action hereinabove specified, and shall extend to claims that the Terminated Employee does not know or suspect to exist in his
favor at the time of executing this General Release, which if known by the Terminated Employee might have materially affected his entering into this General Release. It is the further intention of the Terminated Employee in executing this General
Release to waive California Civil Code Section 1542 and any other provision of any other state’s or jurisdiction’s law or laws of a similar nature or with similar effect. California Civil Code Section 1542 provides as follows:

 
 
‘ 1542 [Certain claims not affected by general release.] A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement with the debtor. 
 
The Terminated Employee acknowledges that he is aware that he may hereafter discover facts different from or in addition to those he now knows or believes to be true with respect to the matters herein
released and the Terminated Employee agrees that this General Release shall be and remain in effect in all respects as a complete general release notwithstanding any such different or additional facts. 
 
The Terminated Employee acknowledges that he has been advised
to consult with an attorney prior to signing this General Release and that he has in fact consulted with an attorney, that the Terminated Employee understands that he is not waiving any claims which may arise after the date of this Release, that the
Terminated Employee has been given a period of at least 21 days in which to consider whether to enter into this Release, and that, if required by law, the Terminated Employee is entering into this Release of his own free will. 
 
The Terminated Employee further acknowledges and understands
that he, if he is 40 years of age or older, may revoke this General Release within 7 days from the date it is executed by him and that this General Release shall not become effective or enforceable until that 7-day period has expired. Such a
revocation will immediately void all of the promises and obligations set forth in this General Release and any obligations of the Company to Employee that are conditioned upon the execution of this General Release pursuant to the terms of that
Employment Agreement dated ______________________, 2003 between the Company and the Terminated Employee, including but not limited to any of the Company’s obligations to remit the sums set forth therein. 
 

	
 Joseph M.
Limber

 

-11-Sixth Amended and Restated 1996 Stock Incentive Plan

EXHIBIT 10.7.1 
 
MICRO THERAPEUTICS, INC. 
 
SIXTH AMENDED AND RESTATED 
1996 STOCK INCENTIVE PLAN 
 
This 1996 STOCK INCENTIVE PLAN (the “Plan”) was
established and adopted in August 1996 (the “Effective Date”) by Micro Therapeutics, Inc., a Delaware corporation (the “Company”), was amended as of May 29, 1998, May 27, 1999, September 25, 2000, May 31, 2001, April 10, 2002,
and is hereby amended and restated as of February 20, 2003 (the “Amendment Date”). 
 
1. 
 
PURPOSES OF THE PLAN 
 
1.1    Purposes.    The purposes of the Plan are (a) to enhance the Company’s ability to attract and retain the services of qualified employees, officers and directors
(including non-employee officers and directors), and consultants and other service providers upon whose judgment, initiative and efforts the successful conduct and development of the Company’s business largely depends, and (b) to provide
additional incentives to such persons or entities to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to participate in the ownership of the Company and thereby have an interest
in the success and increased value of the Company. 
 
2. 
 
DEFINITIONS

 
For purposes of this Plan, the following
terms shall have the meanings indicated: 
 
2.1    Administrator.    “Administrator” means the Board or, if the Board delegates responsibility for any matter to the Committee, the term Administrator shall mean the
Committee. 
 
2.2    Affiliated Company.    “Affiliated Company” means any “parent corporation” or “subsidiary corporation” of the Company, whether now existing or
hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively. 
 
2.3    Board.    “Board” means the Board of Directors of the Company.

 
2.4    Change in
Control.    “Change in Control” shall mean (i) the acquisition, directly or indirectly, by any person or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the
beneficial ownership of more than fifty percent (50%) of the outstanding securities of the Company; (ii) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change
the state in which the Company is incorporated; (iii) the sale, transfer or other disposition of all or substantially all of the assets of the Company; (iv) a complete liquidation or dissolution of the Company; or (v) any reverse merger in which the
Company is the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the 

Company’s outstanding securities are transferred to a person or persons different from the persons
holding those securities immediately prior to such merger. 
 
2.5    Code.    “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 
2.6    Committee.    “Committee” means a
committee of two or more members of the Board appointed to administer the Plan, as set forth in Section 7.1 hereof. 
 
2.7    Common Stock.    “Common Stock” means the Common Stock, $.001 par
value of the Company, subject to adjustment pursuant to Section 4.2 hereof. 
 
2.8    Disability.    “Disability” means permanent and total disability as defined in Section 22(e)(3) of the Code. The
Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested parties. 
 
2.9    Effective Date.    “Effective Date” means August 1, 1997, which was
the date on which the Plan was originally adopted by the Board. 
 
2.10    Exercise Price.    “Exercise Price” means the purchase price per share of Common Stock payable upon exercise of an Option. 
 
2.11    Fair Market
Value.    “Fair Market Value” on any given date means the value of one share of Common Stock, determined as follows: 
 
(a)    If the Common Stock is then listed or admitted to trading on a Nasdaq market system or a stock exchange
which reports closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on such Nasdaq market system or principal stock exchange on which the Common Stock is then listed or admitted to trading, or, if no
closing sale price is quoted on such day, then the Fair Market Value shall be the closing sale price of the Common Stock on such Nasdaq market system or such exchange on the next preceding day on which a closing sale price is quoted. 
 
(b)    If the Common Stock is not
then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the over-the-counter market on
the date of valuation. 
 
(c)    If neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the Administrator in good faith using any reasonable method of evaluation, which
determination shall be conclusive and binding on all interested parties. 
 
2.12    Incentive Option.    “Incentive Option” means any Option designated and qualified as an “incentive stock option” as defined in Section 422 of
the Code. 
 
2.13    Incentive Option Agreement.    “Incentive Option Agreement” means an Option Agreement with respect to an Incentive Option. 
 
2.14    NASD
Dealer.    “NASD Dealer” means a broker-dealer that is a member of the National Association of Securities Dealers, Inc. 
 

2 

 
2.15    Nonqualified Option.    “Nonqualified Option” means any Option that is not an Incentive Option. To the extent that any Option designated as an Incentive Option
fails in whole or in part to qualify as an Incentive Option, including, without limitation, for failure to meet the limitations applicable to a 10% Shareholder or because it exceeds the annual limit provided for in Section 5.6 below, it shall to
that extent constitute a Nonqualified Option. 
 
2.16    Nonqualified Option Agreement.    “Nonqualified Option Agreement” means an Option Agreement with respect to a Nonqualified Option. 
 
2.17    Offeree.    “Offeree” means a Participant to whom a Right to Purchase has been offered or who has acquired Restricted Stock under the Plan. 
 
2.18    Option.    “Option” means any option to purchase Common Stock granted pursuant to the Plan. 
 
2.19    Option Agreement.    “Option
Agreement” means the written agreement entered into between the Company and the Optionee with respect to an Option granted under the Plan. 
 
2.20    Optionee.    “Optionee” means a Participant who holds an Option.

 
2.21    Participant.    “Participant” means an individual or entity who holds an Option, a Right to Purchase or Restricted Stock under the Plan. 
 
2.22    Purchase
Price.    “Purchase Price” means the purchase price per share of Restricted Stock payable upon acceptance of a Right to Purchase. 
 
2.23    Repurchase Right.    “Repurchase
Right” means the right of the Company or any successor entity to repurchase shares of Restricted Stock pursuant to Section 6.5. 
 
2.24    Restricted Stock.    “Restricted Stock” means shares of Common
Stock issued pursuant to Article 6 hereof, subject to any restrictions and conditions as are established pursuant to such Article 6. 
 
2.25    Right to Purchase.    “Right to Purchase” means a right to
purchase Restricted Stock granted to an Offeree pursuant to Article 6 hereof. 
 
2.26    Service Provider.    “Service Provider” means a consultant or other person or entity who provides services to the Company or an
Affiliated Company and who the Administrator authorizes to become a Participant in the Plan. 
 
2.27    Stock Purchase Agreement.    “Stock Purchase Agreement” means the written agreement entered into between the Company and the
Offeree with respect to a Right to Purchase offered under the Plan. 
 
2.28    10% Shareholder.    “10% Shareholder” means a person who, as of a relevant date, owns or is deemed to own (by reason of the attribution rules applicable
under Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of an Affiliated Company. 
 

3 

 
3.

 
ELIGIBILITY 
 
3.1    Incentive
Options.    Officers and other key employees of the Company or of an Affiliated Company (including members of the Board if they are employees of the Company or of an Affiliated Company) are eligible to receive Incentive
Options under the Plan. 
 
3.2    Nonqualified Options and Rights to Purchase.    Officers and other key employees of the Company or of an Affiliated Company, members of the Board (whether or not employed
by the Company or an Affiliated Company), and Service Providers are eligible to receive Nonqualified Options or Rights to Purchase under the Plan. 
 
3.3    Limitation on Shares.    In no event shall any Participant be granted Rights
to Purchase or Options in any one calendar year pursuant to which the aggregate number of shares of Common Stock that may be acquired thereunder exceeds 100,000 shares. 
 
3.4    Restrictions.    Notwithstanding Sections 3.1
and 3.2 above or any other provision of this Plan to the contrary, in the event stockholder approval of the Plan is required to issue Options or Restricted Stock to any officer or director of the Company pursuant to the rules and regulations
governing Nasdaq or any stock exchange on which the Company’s shares are traded, then no director or officer of the Company or any Affiliated Company shall be eligible to receive an Option or acquire Restricted Stock, or any right to receive
the same, pursuant to this Plan unless and until this Plan has been approved by a majority of the shares present and entitled to vote at a meeting of the Company’s stockholders. 
 
4. 
 
PLAN SHARES 
 
4.1    Shares Subject to the Plan.    A total of 5,750,000 shares of Common Stock
may be issued under the Plan, subject to adjustment as to the number and kind of shares pursuant to Section 4.2 hereof. For purposes of this limitation, in the event that (a) all or any portion of any Option or Right to Purchase granted or offered
under the Plan can no longer under any circumstances be exercised, or (b) any shares of Common Stock are reacquired by the Company pursuant to an Incentive Option Agreement, Nonqualified Option Agreement or Stock Purchase Agreement, the shares of
Common Stock allocable to the unexercised portion of such Option or such Right to Purchase, or the shares so reacquired, shall again be available for grant or issuance under the Plan. 
 
4.2    Changes in Capital Structure.    In the event
that the outstanding shares of Common Stock are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization, stock split, combination of
shares, reclassification, stock dividend, or other change in the capital structure of the Company, then appropriate adjustments shall be made by the Administrator to the aggregate number and kind of shares subject to this Plan, and the number and
kind of shares and the price per share subject to outstanding Option Agreements, Rights to Purchase and Stock Purchase Agreements in order to preserve, as nearly as practical, but not to increase, the benefits to Participants. 
 

4 

 
5.

 
OPTIONS 
 
5.1    Option
Agreement.    Each Option granted pursuant to this Plan shall be evidenced by an Option Agreement which shall specify the number of shares subject thereto, the Exercise Price per share, and whether the Option is an Incentive
Option or Nonqualified Option. As soon as is practical following the grant of an Option, an Option Agreement shall be duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted. Each Option Agreement
shall be in such form and contain such additional terms and conditions, not inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable, including, without limitation, the imposition of any rights of
first refusal and resale obligations upon any shares of Common Stock acquired pursuant to an Option Agreement. Each Option Agreement may be different from each other Option Agreement. 
 
5.2    Exercise Price.    The Exercise Price per share
of Common Stock covered by each Option shall be determined by the Administrator, subject to the following: (a) the Exercise Price of an Incentive Option shall not be less than 100% of Fair Market Value on the date the Incentive Option is granted,
(b) the Exercise Price of a Nonqualified Option shall not be less than 85% of Fair Market Value on the date the Nonqualified Option is granted, and (c) if the person to whom an Incentive Option is granted is a 10% Shareholder on the date of grant,
the Exercise Price shall not be less than 110% of Fair Market Value on the date the Option is granted. 
 
5.3    Payment of Exercise Price.    Payment of the Exercise Price shall be made
upon exercise of an Option and may be made, in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock owned by the Optionee that have been held by the Optionee for
at least six (6) months, which surrendered shares shall be valued at Fair Market Value as of the date of such exercise; (d) the Optionee’s promissory note in a form and on terms acceptable to the Administrator; (e) the cancellation of
indebtedness of the Company to the Optionee; (f) the waiver of compensation due or accrued to the Optionee for services rendered; (g) provided that a public market for the Common Stock exists, a “same day sale” commitment from the Optionee
and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward
the Exercise Price directly to the Company; (h) provided that a public market for the Common Stock exists, a “margin” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to
pledge the shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the
Exercise Price directly to the Company; or (i) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable corporate law. 
 
5.4    Term and Termination of
Options.    The term and termination of each Option shall be as fixed by the Administrator, but no Option may be exercisable more than ten (10) years after the date it is granted. An Incentive Option granted to a person who
is a 10% Shareholder on the date of grant shall not be exercisable more than five (5) years after the date it is granted. 
 
5.5    Vesting and Exercise of Options.    Each Option shall vest and be exercisable
in one or more installments at such time or times and subject to such conditions, including without 
 

5 

limitation the achievement of specified performance goals or objectives, as shall be determined by the
Administrator. 
 
5.6    Annual Limit on Incentive Options.    To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value
(determined as of the time of grant) of the Common Stock shall not, with respect to which Incentive Options granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable for the first time by an Optionee
during any calendar year, exceed $100,000. 
 
5.7    Nontransferability of Options.    No Option shall be assignable or transferable except by will or the laws of descent and distribution, and during the life of the Optionee
shall be exercisable only by such Optionee; provided, however, that, in the discretion of the Administrator, any Option may be assigned or transferred in any manner which an “incentive stock option” is permitted to be assigned or
transferred under the Code. 
 
5.8    Rights as Shareholder.    An Optionee or permitted transferee of an Option shall have no rights or privileges as a shareholder with respect to any shares covered by an
Option until such Option has been duly exercised and certificates representing shares purchased upon such exercise have been issued to such person. 
 
5.9    Non-Employee Directors.    Each non-employee director of the Company shall
automatically be granted a Nonqualified Option to purchase 16,000 shares of Common Stock (subject to vesting as provided below) upon his or her commencement of service on the Board of Directors and every year thereafter shall automatically be
granted a Nonqualified Option to purchase 4,000 shares of the Common Stock (provided, that on such date he or she is a non-employee of the Company); provided, however, that no such director shall be issued options to acquire shares of Common Stock,
which when added to any shares of Common Stock owned by such director or subject to an option of such director exercisable within sixty (60) days would equal or exceed one percent 1% of the total outstanding Common Stock of the Company plus shares
of Common Stock of the Company subject to stock options held by any person and exercisable within sixty (60) days. The option price of such Options, in the case of the initial grant, shall be at the Fair Market Value of the Common Stock on the date
of commencement of such director’s service on the Board of Directors and, thereafter, shall be at the Fair Market Value of the Common Stock on the date of grant. All such options shall become exercisable twenty-five percent (25%) immediately
and the remaining seventy-five percent (75%) shall become exercisable an additional twenty-five percent (25%) on each anniversary of the date of the initial grant; provided, however, that upon termination of a non-employee director’s service on
the Board of Directors, for any reason, all unvested options held by such non-employee director shall terminate immediately and all vested options held by such non-employee director shall be exercisable for a period of twelve (12) months subsequent
to such termination. The term of such Options shall be ten years. 
 
6. 
 
RIGHTS TO PURCHASE

 
6.1    Nature
of Right to Purchase.    A Right to Purchase granted to an Offeree entitles the Offeree to purchase, for a Purchase Price determined by the Administrator, shares of Common Stock subject to such terms, restrictions and
conditions as the Administrator may determine at the time of 
 

6 

grant (“Restricted Stock”). Such conditions may include, but are not limited to, continued
employment or the achievement of specified performance goals or objectives. 
 
6.2    Acceptance of Right to Purchase.    An Offeree shall have no rights with respect to the Restricted Stock subject to a Right to Purchase
unless the Offeree shall have accepted the Right to Purchase within ten (10) days (or such longer or shorter period as the Administrator may specify) following the grant of the Right to Purchase by making payment of the full Purchase Price to the
Company in the manner set forth in Section 6.3 hereof and by executing and delivering to the Company a Stock Purchase Agreement. Each Stock Purchase Agreement shall be in such form, and shall set forth the Purchase Price and such other terms,
conditions and restrictions of the Restricted Stock, not inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable. Each Stock Purchase Agreement may be different from each other Stock Purchase
Agreement. 
 
6.3    Payment of Purchase Price.    Subject to any legal restrictions, payment of the Purchase Price upon acceptance of a Right to Purchase Restricted Stock may be made, in the
discretion of the Administrator, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock owned by the Offeree that have been held by the Offeree for at least six (6) months, which surrendered shares shall be valued at Fair Market Value
as of the date of such exercise; (d) the Offeree’s promissory note in a form and on terms acceptable to the Administrator; (e) the cancellation of indebtedness of the Company to the Offeree; (f) the waiver of compensation due or accrued to the
Offeree for services rendered; or (g) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable corporate law. 
 
6.4    Rights as a Shareholder.    Upon complying with
the provisions of Section 6.2 hereof, an Offeree shall have the rights of a shareholder with respect to the Restricted Stock purchased pursuant to the Right to Purchase, including voting and dividend rights, subject to the terms, restrictions and
conditions as are set forth in the Stock Purchase Agreement. Unless the Administrator shall determine otherwise, certificates evidencing shares of Restricted Stock shall remain in the possession of the Company in accordance with the terms of the
Stock Purchase Agreement. 
 
6.5    Restrictions.    Shares of Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided in the
Stock Purchase Agreement or by the Administrator. In the event of termination of a Participant’s employment, service as a director of the Company or Service Provider status for any reason whatsoever (including death or disability), the Stock
Purchase Agreement may provide, in the discretion of the Administrator, that the Company shall have the right, exercisable at the discretion of the Administrator, to repurchase at the original Purchase Price any shares of Restricted Stock which have
not vested as of the date of termination, on such terms as may be provided in the Stock Purchase Agreement. 
 
6.6    Vesting of Restricted Stock.    The Stock Purchase Agreement shall specify
the date or dates, the performance goals or objectives which must be achieved, and any other conditions on which the Restricted Stock may vest. 
 

7 

6.7    Dividends.    If payment for
shares of Restricted Stock is made by promissory note, any cash dividends paid with respect to the Restricted Stock may be applied, in the discretion of the Administrator, to repayment of such note. 
 
6.8    Nonassignability of
Rights.    No Right to Purchase shall be assignable or transferable except by will or the laws of descent and distribution or as otherwise provided by the Administrator. 
 
7. 
 
ADMINISTRATION OF THE PLAN 
 
7.1    Administrator.    Authority to control and manage the operation and administration of the Plan shall be vested in the Board, which may delegate such responsibilities in
whole or in part to a committee consisting of two (2) or more members of the Board (the “Committee”). Members of the Committee may be appointed from time to time by, and shall serve at the pleasure of, the Board. As used herein, the term
“Administrator” means the Board or, with respect to any matter as to which responsibility has been delegated to the Committee, the term Administrator shall mean the Committee. 
 
7.2    Powers of the Administrator.    In addition to
any other powers or authority conferred upon the Administrator elsewhere in the Plan or by law, the Administrator shall have full power and authority: (a) to determine the persons to whom, and the time or times at which, Incentive Options or
Nonqualified Options shall be granted and Rights to Purchase shall be offered, the number of shares to be represented by each Option and Right to Purchase and the consideration to be received by the Company upon the exercise thereof; (b) to
interpret the Plan; (c) to create, amend or rescind rules and regulations relating to the Plan; (d) to determine the terms, conditions and restrictions contained in, and the form of, Option Agreements and Stock Purchase Agreements; (e) to determine
the identity or capacity of any persons who may be entitled to exercise a Participant’s rights under any Option or Right to Purchase under the Plan; (f) to correct any defect or supply any omission or reconcile any inconsistency in the Plan or
in any Option Agreement or Stock Purchase Agreement; (g) to accelerate the vesting of any Option or release or waive any repurchase rights of the Company with respect to Restricted Stock; (h) to extend the exercise date of any Option or acceptance
date of any Right to Purchase; (i) to provide for rights of first refusal and/or repurchase rights; (j) to amend outstanding Option Agreements and Stock Purchase Agreements to provide for, among other things, any change or modification which the
Administrator could have provided for upon the grant of an Option or Right to Purchase or in furtherance of the powers provided for herein; and (k) to make all other determinations necessary or advisable for the administration of the Plan, but only
to the extent not contrary to the express provisions of the Plan. Any action, decision, interpretation or determination made in good faith by the Administrator in the exercise of its authority conferred upon it under the Plan shall be final and
binding on the Company and all Participants. 
 
7.3    Limitation on Liability.    No employee of the Company or member of the Board or Committee shall be subject to any liability with respect to duties under the Plan unless
the person acts fraudulently or in bad faith. To the extent permitted by law, the Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the Plan, who was or is a party, or is threatened to
be made a party, to any threatened, pending or completed proceeding, whether civil, criminal, administrative or investigative, by reason of such person’s conduct in the performance of duties under the Plan. 
 

8 

 
8.

 
CHANGE IN CONTROL 
 
8.1    Change in
Control.    In order to preserve a Participant’s rights in the event of a Change in Control of the Company: 
 
(a)    Vesting of all outstanding Options shall accelerate automatically effective as of immediately prior to
the consummation of the Change in Control unless the Options are to be assumed by the acquiring or successor entity (or parent thereof) or new options or New Incentives are to be issued in exchange therefor, as provided in subsection (b) below.

 
(b)    Vesting of
outstanding Options shall not accelerate if and to the extent that: (i) the Options (including the unvested portion thereof) are to be assumed by the acquiring or successor entity (or parent thereof) or new options of comparable value are to be
issued in exchange therefor pursuant to the terms of the Change in Control transaction, or (ii) the Options (including the unvested portion thereof) are to be replaced by the acquiring or successor entity (or parent thereof) with other incentives of
comparable value under a new incentive program (“New Incentives”) containing such terms and provisions as the Administrator in its discretion may consider equitable. If outstanding Options are assumed, or if new options of comparable value
are issued in exchange therefor, then each such Option or new option shall be appropriately adjusted, concurrently with the Change in Control, to apply to the number and class of securities or other property that the Participant would have received
pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had the Option been exercised immediately prior to the Change in Control, and appropriate adjustment also shall be made to the Exercise
Price such that the aggregate Exercise Price of each such Option or new option shall remain the same as nearly as practicable. 
 
(c)    If outstanding Options will accelerate pursuant to subsection (a) above, the Administrator in its
discretion may provide, in connection with the Change in Control transaction, for the purchase or exchange of each Option for an amount of cash or other property having a value equal to the difference (or “spread”) between: (x) the value
of the cash or other property that the Participant would have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had the Option been exercised immediately prior to the Change in
Control minus (y) the Exercise Price of the Option. 
 
(d)    In the event of a Change in Control of the Company, all Repurchase Rights shall automatically terminate immediately prior to the consummation of such Change in Control, and the shares of Common Stock
subject to such terminated Repurchase Rights shall immediately vest in full, except to the extent that: (i) in connection with such Change in Control, the acquiring or successor entity (or parent thereof) provides for the continuance or assumption
of Stock Purchase Agreements or the substitution of new agreements of comparable value covering shares of a successor corporation, with appropriate adjustments as to the number and kind of shares and purchase price, or (ii) such accelerated vesting
is precluded by other limitations imposed by the Administrator in the Stock Purchase Agreement at the time the Right to Purchase is granted. 
 
(e)    The Administrator shall have the discretion to provide in each Option Agreement or Stock Purchase
Agreement terms and conditions that relate to (i) vesting of such Option or Restricted Stock in the event of a Change in Control, and (ii) assumption of such Options 
 

9 

or Stock Purchase Agreements or issuance of comparable securities or New Incentives in the event of a
Change in Control. The aforementioned terms and conditions may vary in each Option and Stock Purchase Agreement, and may be different from the provisions set forth in Sections 8.1(a)—8.1(d) above. 
 
(f)    Outstanding Options shall
terminate and cease to be exercisable upon consummation of a Change in Control except to the extent that the Options are assumed by the successor entity (or parent thereof) pursuant to the terms of the Change in Control transaction. 
 
(g)    The Administrator shall
cause written notice of a proposed Change in Control transaction to be given to Participants not less than fifteen (15) days prior to the anticipated effective date of the proposed transaction. 
 
9. 
 
AMENDMENT AND TERMINATION OF THE PLAN 
 
9.1    Amendments.    The Board may from time to time alter, amend, suspend or terminate the Plan in such respects as the Board may deem advisable. No such alteration, amendment,
suspension or termination shall be made which shall substantially affect or impair the rights of any Participant under an outstanding Option Agreement or Stock Purchase Agreement without such Participant’s consent. The Board may alter or amend
the Plan to comply with requirements under the Code relating to Incentive Options or other types of options which give Optionee more favorable tax treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon
any such alteration or amendment, any outstanding Option granted hereunder may, if the Administrator so determines and if permitted by applicable law, be subject to the more favorable tax treatment afforded to an Optionee pursuant to such terms and
conditions. 
 
9.2    Plan Termination.    Unless the Plan shall theretofore have been terminated, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date and no Options
or Rights to Purchase may be granted under the Plan thereafter, but Option Agreements, Stock Purchase Agreements and Rights to Purchase then outstanding shall continue in effect in accordance with their respective terms. 
 
10. 
 
TAX WITHHOLDING 
 
10.1    Withholding.    The Company shall have the power to withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy any applicable Federal,
state, and local tax withholding requirements with respect to any Options exercised or Restricted Stock issued under the Plan. To the extent permissible under applicable tax, securities and other laws, the Administrator may, in its sole discretion
and upon such terms and conditions as it may deem appropriate, permit a Participant to satisfy his or her obligation to pay any such tax, in whole or in part, up to an amount determined on the basis of the highest marginal tax rate applicable to
such Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant is entitled as a result of the exercise of an Option or as a result of the purchase of or lapse of restrictions on Restricted Stock or (b)
delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied or delivered in satisfaction of the 
 

10 

Participant’s tax withholding obligation shall be valued at their Fair Market Value as of the date of
measurement of the amount of income subject to withholding. 
 
11. 
 
MISCELLANEOUS

 
11.1    Benefits Not Alienable.    Other than as provided above, benefits under the Plan may not be assigned or alienated, whether voluntarily or involuntarily. Any unauthorized
attempt at assignment, transfer, pledge or other disposition shall be without effect. 
 
11.2    No Enlargement of Employee Rights.    This Plan is strictly a voluntary undertaking on the part of the Company and shall not be deemed to
constitute a contract between the Company and any Participant to be consideration for, or an inducement to, or a condition of, the employment of any Participant. Nothing contained in the Plan shall be deemed to give the right to any Participant to
be retained as an employee of the Company or any Affiliated Company or to interfere with the right of the Company or any Affiliated Company to discharge any Participant at any time. 
 
11.3    Application of Funds.    The proceeds received
by the Company from the sale of Common Stock pursuant to Option Agreements and Stock Purchase Agreements, except as otherwise provided herein, will be used for general corporate purposes. 
 

11

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