Document:

Exhibit 10.41

 

[Participant’s Name]

 

American Science & Engineering, Inc.

2005 Equity and Incentive Plan

 

Restricted Stock Award Agreement

 

American
Science & Engineering, Inc.

829
Middlesex Turnpike

Billerica,
Massachusetts 01821

 

Ladies
and Gentlemen:

 

The
undersigned (i) acknowledges that he has received an award (the “Award”)
of restricted stock from American Science & Engineering, Inc.
(the “Company”) under the 2005 Equity & Incentive Plan (the “Plan”),
subject to the terms set forth below and in the Plan; (ii) further
acknowledges receipt of a copy of each of the Plan as in effect on the date
hereof and the most recently issued prospectus with respect to the shares
issued under the Plan; and (iii) agrees with the Company as follows:

 

1.               Effective
Date.  This
Agreement shall take effect as of [Effective Date], which is the date of grant
of the Award.

 

2.               Shares
Subject to Award.  The Award
consists of [# of shares] shares (the “Shares”) of common stock of the Company
(“Stock”).  The undersigned’s rights to
the Shares are subject to the restrictions described in this Agreement and the
Plan (which is incorporated herein by reference with the same effect as if set
forth herein in full) in addition to such other restrictions, if any, as may be
imposed by law.

 

3.               Meaning
of Certain Terms.  Except as
otherwise expressly provided, all terms used herein shall have the same meaning
as in the Plan.  The term “vest” as used
herein with respect to any Share means the lapsing of the restrictions
described herein with respect to such Share.

 

4.               Nontransferability
of Shares.  The Shares
acquired by the undersigned pursuant to this Agreement shall not be sold,
transferred, pledged, assigned or otherwise encumbered or disposed of except as
provided below and in the Plan.

 

5.               Forfeiture
Risk.  If the
undersigned ceases to be employed by the Company and its subsidiaries for any
reason, including death (except as to the proration provided for in Paragraph
11 below), any then outstanding and unvested Shares acquired by the undersigned
hereunder shall be automatically and immediately forfeited.  The undersigned hereby (i) appoints the
Company as the attorney-in-fact of the undersigned to take such actions as may
be necessary or appropriate to effectuate a transfer of the record ownership of
any such shares that are unvested and forfeited hereunder, (ii) agrees to
deliver to the Company, as a precondition to the issuance of any certificate or
certificates with respect to unvested Shares hereunder, one or more stock
powers, endorsed in blank, with respect to such Shares, and (iii) agrees 

 

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to sign such other powers and take such other actions as the Company
may reasonably request to accomplish the transfer or forfeiture of any unvested
Shares that are forfeited hereunder.

 

6.               Retention
of Certificates.  Any
certificates representing unvested Shares shall be held by the Company.  If unvested Shares are held in book entry
form, the undersigned agrees that the Company may give stop transfer
instructions to the depository to ensure compliance with the provisions hereof.

 

7.               Vesting
of Shares.  The Shares
acquired hereunder shall vest upon the achievement of performance targets of
the Company, as more particularly described herein (“Performance-Vested Shares”).  The Performance Goals shall be established by
the Committee based on one or more of the following objective criteria prior to
the beginning of such Performance Period or within such period after the
beginning of the Performance Period (as defined in the Plan) as shall meet the
requirements to be considered “pre-established objective performance goals” for
purposes of the regulations issued under Section 162(m) of the Code: (i) increases
in the price of the Common Stock, (ii) market share, (iii) sales, (iv) revenue,
(v) return on equity, assets, or capital, (vi) economic profit
(economic value added), (vii) total shareholder return, (viii) costs,
(ix) expenses, (x) margins, (xi) earnings (including EBITDA) or
earnings per share, (xii) cash flow (including adjusted operating cash flow),
(xiii) customer satisfaction, (xiv) operating profit, (xv) net income, (xvi)
research and development, (xvii) product releases, (xviii) manufacturing, or
(xix) any combination of the foregoing, including without limitation, goals
based on any of such measures relative to appropriate peer groups or market
indices, as more particularly outlined on Exhibit A attached to this
Agreement. The restrictions on Performance-Vested Shares shall lapse in
accordance with the following terms:  as
soon as practicable following the delivery to the Company of its audited
financial statements for the fiscal year, the Compensation Committee shall
determine whether the Performance Goals have been met; restrictions on the Performance-Vested
Shares will lapse, pro-rata as each or any of the Performance Goals are met;
and if the Company has not met any portion of the Performance Goals prior to
the end of the fiscal year ending on or before [Fiscal Year Date], one half
(1/2) of the pro-rata portion of the Performance-Vested Shares attributable to
such unattained goals shall immediately vest, and one half (1/2) shall be
automatically and immediately forfeited.

 

8.               Change
of Control. Notwithstanding the foregoing, no shares shall vest
on any vesting date specified above unless the undersigned is then, and since
the date of grant has continuously been, employed by the Company or its
subsidiaries.  In the event of a Change
in Control, the Administrator may require that any amounts delivered, exchanged
or otherwise paid in respect of outstanding and then unvested Shares be placed
in escrow or otherwise made subject to such restrictions as the Administrator
deems appropriate to carry out the intent of the Plan.  References in this Agreement to the Shares
shall refer, mutatis mutandis, to any such
restricted amounts. The term ‘Change in Control’ or ‘Change in Control of the
Company’ shall mean the occurrence hereafter of any of the following:

 

(a)          Any Person, other than
the Company or an Affiliate, becomes a beneficial owner (within the meaning of Rule 13d-3,
as amended, as promulgated under the Securities Exchange Act of 1934, as
amended), directly or indirectly, in one or a series of transactions, of
securities representing more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding securities;

 

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(b)         The consummation of a
merger or consolidation of the Company with any other Person, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) more than fifty percent (50%) of the combined voting power of
the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation;

 

(c)          The closing of a sale
or other disposition by the Company of all or substantially all of the assets
of the Company;

 

(d)         Individuals who
constitute the Board of Directors on the date hereof (“Incumbent Directors”)
cease for any reason to constitute at least a majority of the board; provided,
that any individual who becomes a member of the Board subsequent to the date
hereof, whose election or nomination for election was approved by a vote of at
least two-thirds of the Incumbent Directors shall be treated as an Incumbent
Director unless he or she assumed office as a result of an actual or threatened
election contest with respect to the election or removal of directors; or

 

(e)          A complete liquidation
or dissolution of the Company;

 

provided, in each case, that such event also constitutes a “change
in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5).

 

9.               Vesting
Upon Retirement.  If the
Participant is terminated by reason of retirement prior to the end of the
fiscal year ending on or before [Fiscal Year Date] and the Participant’s age is
equal to or greater than 65 and the Participant’s age plus length of service is
equal to or greater than 70, one half (1/2) of the pro-rata portion of the
Performance-Vested Shares reflecting the percentage of such Option that was
accrued by the Company on its books at the time of the Participant’s retirement
date shall immediately vest, and one half (1/2) shall be automatically and
immediately forfeited.

 

10.         Vesting Upon Death.  If the Participant’s employment is terminated
by reason of his or her death, the Shares shall become vested, and the
restrictions lifted, on a prorated basis reflecting the percentage of such
Shares that was accrued by the Company on its books at the time of the
Participant’s death.  In such event, the
restrictions will be lifted from such prorated portion of the Shares, and such
prorated Shares shall be freely transferable to the person(s) to whom the
Participant’s share rights pass by will or by the applicable laws of descent
and distribution.

 

11.         Legend.  Any certificates representing unvested Shares
shall be held by the Company, and any such certificate shall contain a legend
substantially in the following form:

 

THE
TRANSFERABILITY OF THIS CERTIFICATE AND THE SHARES OF STOCK REPRESENTED HEREBY
ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) OF AMERICAN
SCIENCE & ENGINEERING, INC, 2005 EQUITY AND INCENTIVE PLAN AND A
RESTRICTED STOCK AWARD AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND
AMERICAN SCIENCE & ENGINEERING, INC. 
COPIES OF SUCH PLAN AND AGREEMENT ARE ON FILE IN THE OFFICES OF AMERICAN
SCIENCE & ENGINEERING, INC.

 

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As soon as practicable following the vesting of any such Shares the
Company shall cause a certificate or certificates covering such Shares, without
the aforesaid legend, to be issued and delivered to the undersigned.  If any Shares are held in book-entry form,
the Company may take such steps as it deems necessary or appropriate to record
and manifest the restrictions applicable to such Shares.

 

12.         Dividends, etc.  The undersigned shall be entitled to (i) receive
any and all dividends or other distributions paid with respect to those Shares
of which he is the record owner on the record date for such dividend or other
distribution, and (ii) vote any Shares of which he is the record owner on
the record date for such vote; provided, however,
that any property (other than cash) distributed with respect to a share of
Stock (the “associated share”) acquired hereunder, including without limitation
a distribution of Stock by reason of a stock dividend, stock split or
otherwise, or a distribution of other securities with respect to an associated
share, shall be subject to the restrictions of this Agreement in the same
manner and for so long as the associated share remains subject to such
restrictions, and shall be promptly forfeited if and when the associated share
is so forfeited;  and
further provided, that the Administrator may require that any cash
distribution with respect to the Shares other than a normal cash dividend be
placed in escrow or otherwise made subject to such restrictions as the
Administrator deems appropriate to carry out the intent of the Plan.  References in this Agreement to the Shares
shall refer, mutatis mutandis, to any such
restricted amounts.

 

13.         Sale of Vested Shares.  The undersigned understands
that he will be free to sell any Share once it has vested, subject to (i) satisfaction
of any applicable tax withholding requirements with respect to the vesting or
transfer of such Share; (ii) the completion of any administrative steps
(for example, but without limitation, the transfer of certificates) that the
Company may reasonably impose; and (iii) applicable requirements of
federal and state securities laws.

 

14.         Certain Tax Matters.  The undersigned expressly acknowledges the
following:

 

(a)          The undersigned has been advised to confer promptly
with a professional tax advisor to consider whether the undersigned should make
a so-called “83(b) election” with respect to the Shares.  Any such election, to be effective, must be
made in accordance with applicable regulations and within thirty (30) days
following the date of this Award.  The
Company has made no recommendation to the undersigned with respect to the
advisability of making such an election.

 

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(b)         The award or vesting of the Shares acquired
hereunder, and the payment of dividends with respect to such Shares, may give
rise to “wages” subject to withholding. 
The undersigned expressly acknowledges and agrees that his rights
hereunder are subject to his promptly paying to the Company in cash (or by such
other means as may be acceptable to the Company in its discretion, including,
if the Administrator so determines, by the delivery of previously acquired
Stock or shares of Stock acquired hereunder or by the withholding of amounts
from any payment hereunder) all taxes required to be withheld in connection
with such award, vesting or payment.

 

	
   

  	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (Signature
  of Employee)

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  The
  foregoing Restricted Stock

  	
   

  	
   

  
	
  Award
  Agreement is hereby accepted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AMERICAN
  SCIENCE & ENGINEERING, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
					

 

5Exhibit 10.42

 

AMERICAN
SCIENCE AND ENGINEERING, INC.

2005
Equity and Incentive Plan

 

Nonstatutory Stock
Option Grant Agreement

Performance Vested
Options

 

American Science and
Engineering, Inc. (the “Company”), a Massachusetts corporation,
hereby grants to the person named below an option to purchase shares of Common
Stock, $0.66 2/3 par value, of the Company (the “Option”) under and
subject to the Company’s 2005 Equity and Incentive Plan (the “Plan”)
exercisable on the terms and conditions set forth below and those attached
hereto and in the Plan:

 

	
  Grant
  Date

  	
  [Date]

  	
   

  
	
   

  	
   

  	
   

  
	
  Optionee

  	
  [Name]

  	
   

  
	
   

  	
   

  	
   

  
	
  Options
  Granted

  	
  [# of Options]

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price

  	
  $[Strike Price]

  	
  per share

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date

  	
  [Expiration Date]

  	
   

  

 

Exercise Schedule and
Vesting:  The options shall vest and
become exercisable upon the achievement of performance targets of the Company,
as more particularly described herein (“Performance-Vested Options”).  Specifically, Performance-Vested Options
shall become exercisable in accordance with the following terms: as soon as
practicable following the delivery to the Company of its audited financial
statements for the fiscal year, the Compensation Committee shall determine
whether the Performance Goals (as defined in the Plan) have been met.  Restrictions on the Performance-Vested
Options will lapse, pro-rata, as each or any of the Performance Goals are
met.  If the Company has not met any
portion of the Performance Goals prior to the end of the fiscal year ending on
or before                                 ,
one half (1/2) of the pro-rata portion of the Performance-Vested Options
attributable to such unattained goals shall immediately vest, and one half
(1/2) shall be automatically and immediately forfeited.

 

The Performance
Goals shall be established by the Committee based on one or more of the
following objective criteria prior to the beginning of such Performance Period
or within such period after the beginning of the Performance Period (as defined
in the Plan) as shall meet the requirements to be considered “pre-established
objective performance goals” for purposes of the regulations issued under Section 162(m) of
the Code: (i) increases in the price of the Common Stock, (ii) market
share, (iii) sales, (iv) revenue, (v) return on equity, assets,
or capital, (vi) economic profit (economic value added), (vii) total
shareholder return, (viii) costs, (ix) expenses, (x) margins,
(xi) earnings (including EBITDA) or earnings per share, (xii) cash flow
(including adjusted operating cash flow), (xiii) customer satisfaction, (xiv)
operating profit, (xv) net income, (xvi) research and development, (xvii)
product releases, (xviii) manufacturing, or (xix) any combination of the
foregoing, including without limitation, goals based on any of such measures
relative to appropriate peer groups or market indices, as more particularly
outlined on Exhibit A, attached to this Agreement

 

This Option shall
not be treated as an Incentive Stock Option under section 422 of the Internal
Revenue Code of 1986, as amended.

 

By acceptance of
this Option, the Participant agrees to the terms and conditions set forth above
and those attached hereto and in the Plan.

 

	
  PARTICIPANT

  	
   

  	
  AMERICAN SCIENCE AND
  ENGINEERING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

1

 

AMERICAN SCIENCE AND ENGINEERING,
INC. 2005 EQUITY AND INCENTIVE PLAN

 

Nonstatutory Stock Option Terms
And Conditions

 

1.             Plan Incorporated by Reference.  This Option is issued pursuant to the terms
of the Plan.  This Grant Agreement does
not set forth all of the terms and conditions of the Plan, which are
incorporated herein by reference. 
Capitalized terms used and not otherwise defined in this Grant Agreement
have the meanings given to them in the Plan. 
The Committee administers the Plan and its determinations regarding the
operation of the Plan are final and binding. 
A copy of the Plan may be obtained upon written request without charge
from the Human Resources Department of the Company.

 

2.             Option Price.  The price to be paid for each share of Common
Stock issued upon exercise of the whole or any part of this Option is the
Option Price set forth on the face of this Grant Agreement.

 

3.             Exercisability and Vesting
Schedule.  As long as the Participant
remains continuously employed by the Company or an Affiliate, this Option will
vest and may be exercised (in whole or in part) in accordance with the
Exercisability and Vesting Schedule set forth on the face of this Grant
Agreement, but only for the purchase of whole shares.  This Option may not be exercised as to any
shares after the Expiration Date.

 

4.             Effect of Termination of
Employment.  If the Participant’s
status as an employee of the Company or an Affiliate is terminated for any
reason (voluntary or involuntary), this Option shall not thereafter become vested
or exercisable as to any additional shares, and the already vested portion of
this Option shall remain exercisable (to the extent not previously exercised)
for ninety (90) days after the day on which the Participant’s employment is
terminated, whereupon this Option shall terminate; except  that

 

(a)                                  If the Participant is on military leave,
sick leave, or other leave of absence approved by the Company or the Affiliate,
his or her employment with the Company or the Affiliate will be treated as
continuing intact during the period of such leave.  The Participant’s employment will be deemed
to have terminated on the first day after the expiration of such leave.

 

(b)                                 If the
Participant is terminated by reason of retirement prior to the end of the
fiscal year ending on or before                                           
and the Participant’s age is equal to or greater than 65 and the Participant’s
age plus length of service is equal to or greater than 70, one half (1/2) of
the pro-rata portion of the Performance-Vested Shares reflecting the percentage
of such Option that was accrued by the Company on its books at the time of the
Participant’s retirement date shall immediately vest, and one half (1/2) shall
be automatically and immediately forfeited.

 

(c)                                  If the Participant’s employment is
terminated by reason of his or her death, this Option shall become exercisable
and vested on a prorated basis reflecting the percentage of such Option that
was accrued by the Company on its books at the time of the Participant’s death,
without regard to the Exercisability and Vesting Schedule.  In such event, such prorated portion of this
Option may be exercised at any time within twelve (12) months after the date of
the Participant’s death by the person(s) to whom the Participant’s option
rights pass by will or by the applicable laws of descent and distribution.

 

(d)                                 If the Participant’s employment is
terminated by the Company or the Affiliate for “cause,” this Option, to the
extent vested and exercisable upon such termination of employment, may be
exercised by the Participant only through the close of regular business hours
on the date of termination.  Unless
otherwise defined in any written employment agreement between the Company or
the Affiliate and the Participant, cause shall be determined by the Committee
in its discretion.

 

In no event,
however, may this Option be exercised after the Expiration Date set forth on
the face of this Grant Agreement.

 

5.             Method of Exercise.  To exercise this Option, the Participant
shall deliver notice of exercise to the Company specifying the number of shares
with respect to which the Option is being exercised accompanied by payment of
the Option Price for such shares (i) by cash, (ii) by actual delivery
or attestation of ownership of shares of Common Stock owned by the Participant,
including vested Restricted Stock, (iii) by retaining shares of Common
Stock otherwise issuable pursuant to the Option, (iv) for consideration 

 

2

 

received by the
Company under a broker-assisted cashless exercise program acceptable to the
Company, or (v) for such other lawful consideration as the Committee may
determine.  Such exercise notice must be
given at the time and in the manner as specified by the Committee from time to
time.  Upon payment of the exercise price
and applicable taxes, and assuming satisfaction of all applicable securities
laws and exchange listing requirements, the Company shall delivery, or make
available to the Participant through the Plan’s designated broker, the net
shares or cash proceeds (as the case may be) resulting from the Option
exercise.

 

6.             Change of Control.  To preserve the Participant’s rights under
this Option in the event of a Change in Control of the Company (as defined
below) occurring while the Participant is employed by the Company or an
Affiliate, the Committee shall fully accelerate the vesting of this Option and
may in its discretion take one or more of the following actions: (i) provide
for payment to the Participant of cash or other property with a Fair Market
Value equal to the amount that would have been received upon the exercise or
payment of the Option had the Option been exercised or paid upon the Change in
Control of the Company, (ii) adjust the terms of the Option in a manner
determined by the Committee to reflect the Change in Control of the Company, (iii) cause
the Option to be assumed, or new rights substituted therefore, by another
entity, or (iv) make such other provision as the Committee may consider
equitable to the Participant and in the best interests of the Company.  “The term ‘Change in Control’ or ‘Change in
Control of the Company’ shall mean the occurrence hereafter of any of the
following:

 

(a)                                  Any
Person, other than the Company or an Affiliate, becomes a beneficial owner
(within the meaning of Rule 13d-3, as amended, as promulgated under the
Securities Exchange Act of 1934, as amended), directly or indirectly, in one or
a series of transactions, of securities representing more than fifty percent
(50%) of the combined voting power of the Company’s then outstanding
securities;

 

(b)                                 The
consummation of a merger or consolidation of the Company with any other Person,
other than a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than fifty percent (50%) of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation;

 

(c)                                  The
closing of a sale or other disposition by the Company of all or substantially
all of the assets of the Company;

 

(d)                                 Individuals
who constitute the Board of Directors on the date hereof (“Incumbent Directors”)
cease for any reason to constitute at least a majority of the board; provided,
that any individual who becomes a member of the Board subsequent to the date
hereof, whose election or nomination for election was approved by a vote of at
least two-thirds of the Incumbent Directors shall be treated as an Incumbent
Director unless he or she assumed office as a result of an actual or threatened
election contest with respect to the election or removal of directors; or

 

(e)                                  A
complete liquidation or dissolution of the Company;

 

provided, in each case,
that such event also constitutes a “change in control event” within the meaning
of Treasury Regulation Section 1.409A-3(i)(5).

 

7.             Option Not Transferable.  This Option is not transferable by the
Participant other than by will or the laws of descent and distribution, and is
exercisable, during the Participant’s lifetime, only by the Participant.  The naming of a Designated Beneficiary does
not constitute a transfer. The Committee may, in its sole discretion, allow the
Participant to transfer this Option under a domestic relations order in
settlement of marital or domestic property rights.

 

8.             Payment of Taxes. The
Participant shall pay to the Company, or make provision satisfactory to the
Committee for payment of, any taxes required by law to be withheld with respect
to the exercise of the Option no later than the date of the event creating the
tax liability.  The Company and its
Affiliates may, to the extent permitted by law, deduct any such tax obligations
from any payment of any kind due to the Participant.  In the Committee’s discretion, the minimum
tax obligations required by law to be withheld with respect to the exercise of
the Option may be paid in whole or in part in shares of Common Stock, including
shares retained from the exercise of the Option, valued at their Fair Market
Value on the date of retention.

 

3

 

9.             No Right To Employment.  No person shall have any claim or right to be
granted an Option.  Neither the Plan nor
this Option shall be deemed to give any Participant the right to continued
employment or to limit the right of the Company or an Affiliate to discharge any
Participant at any time.

 

10.           Amendment of Option.  The Committee may amend, modify, or terminate
this Option, including substituting therefore another option of the same or a
different type, changing the date of exercise or realization and converting an
incentive stock option to a nonstatutory stock option, provided that the
Participant’s consent to such action shall be required unless (i) the
Committee determines that the action, taking into account any related action,
would not materially and adversely affect the Participant, or (ii) the action
is permitted by the terms of the Plan.

 

11.           Data Privacy and Electronic
Delivery.  By executing this Grant
Agreement, the Participant: (i) authorizes the Company, its Affiliates,
and any agent of the Company or its Affiliates administering the Plan or
providing Plan recordkeeping services, to disclose to the Company, its
Affiliates or third-party service providers such information and data as may be
deemed necessary or appropriate to facilitate the grant of Options and the
administration of the Plan; (ii) waives any data privacy rights he or she
may have with respect to such information; and (iii) authorizes the
Company, its Affiliates, and third-party service providers to store and
transmit such information in electronic form. 
The Participant agrees that the Company, its Affiliates, and their
agents may deliver electronically all documents relating to the Plan or this
Option (including, without limitation, prospectuses required by the Securities
and Exchange Commission) and all other documents that the Company is required
to deliver to its stockholders.

 

12.           Cancellation and Rescission of
Option.  In consideration of this
Option the Participant agrees that if Participant breaches Participant’s
obligations under the terms of the American Science & Engineering
Employee Representation, Rights in Data, and Non-Compete Agreement, then the
Company may cancel, suspend, withhold, or otherwise limit or restrict (in whole
or in part) the exercise of this Option. 
If this Option has been exercised prior to the occurrence or discovery
by the Company of any such breach, then the Committee may rescind the exercise
of this Option at any time within the two (2) year period after such
exercise.  In the event of any
rescission, the Participant shall pay to the Company the amount of income
recognized upon exercise of the Option and any additional gain realized upon
any sale of Option shares in such manner and on such terms and conditions as
may be required by the Committee, and the Company shall be entitled to set-off
the amount of any such income or gain against any amount that may be owed to
the Participant.

 

13.           Impact of Restatement of Financial
Statements Upon Option.  If any of
the Company’s financial statements are required to be restated as a result of
errors, omissions, or fraud, the Committee may (in its sole discretion, but
acting in good faith) direct that the Company recover all or a portion of the
amount of income recognized upon the exercise of this Option and any additional
gain realized upon any sale of the Option shares with respect to any fiscal
year of the Company the financial results of which are negatively affected by
such restatement. The amount to be recovered from the Participant shall be the
amount by which the Option income at exercise, and any gain upon sale of the
Option shares of the affected award, exceed the amount that would have been
payable to the Participant had the financial statements been initially filed as
restated, or any greater or lesser amount that the Committee shall determine.
The Committee may determine to recover different amounts from different
participants or different classes of participants on such bases as it shall
deem appropriate.  In no event shall the
amount to be recovered by the Company be less than the amount required to be
repaid or recovered as a matter of law. The Committee shall determine whether
the Company shall effect any such recovery (i) by seeking repayment from
the Participant, (ii) by reducing (subject to applicable law and the terms
and conditions of the applicable plan, program, or arrangement) the amount that
would otherwise be payable to the Participant under any compensatory plan,
program, or arrangement maintained by the Company or any of its Affiliates, (iii) by
withholding payment of future increases in compensation (including the payment
of any discretionary bonus amount) or grants of compensatory awards that would
otherwise have been made in accordance with the Company’s otherwise applicable
compensation practices, or (iv) by any combination of the forgoing.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]