Document:

Exhibit 10.10

 

Amendment
to 1996 Deferred Compensation Plan

effective January 17,
2006

 

Effective January 17, 2006, the First Regional
Bank 1996 Deferred Compensation Plan is amended by deleting the following three
sentences contained in Appendix A thereto:

 

“This Appendix supersedes Section 4.1.2. It
does not apply to any Participant for any Plan Year after the year in which he
reaches age seventy-five (75). After that year, his Matching Contributions are
determined in accordance with Section 4.1.2.”

 

and
replacing such deleted sentences with the following sentence:

 

“This Appendix supersedes Section 4.1.2 with
respect to the following Participant(s).”Exhibit 10.10

 

MOMENTA
PHARMACEUTICALS, INC.

 

2004
STOCK INCENTIVE PLAN

 

(as
amended May 26, 2005)

 

1.                                       Purpose

 

The purpose of this 2004 Stock Incentive Plan (the “Plan”)
of Momenta Pharmaceuticals, Inc., a Delaware corporation
(the “Company”), is to advance the interests of the Company’s stockholders by
enhancing the Company’s ability to attract, retain and motivate persons who are
expected to make important contributions to the Company and by providing such
persons with equity ownership opportunities and performance-based incentives
that are intended to better align their interests with those of the Company’s
stockholders.  Except where the context
otherwise requires, the term “Company” shall include any of the Company’s
present or future parent or subsidiary corporations as defined in
Sections 424(e) or (f) of the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder (the “Code”) and any other
business venture (including, without limitation, joint venture or limited
liability company) in which the Company has a controlling interest, as
determined by the Board of Directors of the Company (the “Board”).

 

2.                                       Eligibility

 

All of the Company’s employees, officers, directors,
consultants and advisors are eligible to receive options, restricted stock
awards, stock appreciation rights and other stock-based awards (each, an “Award”)
under the Plan.  Each person who receives
an Award under the Plan is deemed a “Participant”.

 

3.                                       Administration
and Delegation

 

(a)          Administration
by Board of Directors.  The Plan will
be administered by the Board.  The Board
shall have authority to grant Awards and to adopt, amend and repeal such
administrative rules, guidelines and practices relating to the Plan as it shall
deem advisable.  The Board may correct
any defect, supply any omission or reconcile any inconsistency in the Plan or
any Award in the manner and to the extent it shall deem expedient to carry the
Plan into effect and it shall be the sole and final judge of such expediency.  All decisions by the Board shall be made in
the Board’s sole discretion and shall be final and binding on all persons
having or claiming any interest in the Plan or in any Award.  No director or person acting pursuant to the
authority delegated by the Board shall be liable for any action or
determination relating to or under the Plan made in good faith.

 

(b)         Appointment
of Committees.  To the extent permitted by
applicable law, the Board may delegate any or all of its powers under the Plan
to one or more committees or subcommittees of the Board (a “Committee”).  All references in the Plan to the “Board”
shall mean the Board or a Committee of the Board or the officers referred to in
Section 3(c) to the

 

 

extent that the Board’s
powers or authority under the Plan have been delegated to such Committee or
officers.

 

(c)          Delegation
to Officers.  To the extent permitted
by applicable law, the Board may delegate to one or more officers of the
Company the power to grant Awards to employees or officers of the Company or
any of its present or future subsidiary corporations and to exercise such other
powers under the Plan as the Board may determine, provided that the Board shall
fix the terms of the Awards to be granted by such officers (including the
exercise price of such Awards, which may include a formula by which the
exercise price will be determined) and the maximum number of shares subject to
Awards that the officers may grant; provided further, however, that no officer
shall be authorized to grant Awards to any “executive officer” of the Company
(as defined by Rule 3b-7 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”)) or to any “officer” of the Company (as defined by
Rule 16a-1 under the Exchange Act).

 

4.                                       Stock
Available for Awards

 

(a)          Number
of Shares.  Subject to adjustment
under Section 10, Awards may be made under the Plan for up to the number
of shares of the Company’s common stock, par value $0.0001 per share (the “Common
Stock”), that is equal to the sum of:

 

(1)                                  3,948,785
shares of Common Stock; plus

 

(2)                                  an
annual increase to be added on the first day of each of the Company’s fiscal
years during the period beginning in fiscal year 2005 and ending on the second
day of fiscal year 2013 equal to the lowest of (i) 1,974,393 shares of
Common Stock, (ii) 5% of the outstanding shares on such date and (iii) an
amount determined by the Board.

 

Notwithstanding
clause (2) above, in no event shall the number of shares available under
this Plan be increased as set forth in clause (2) to the extent such increase,
in addition to any other increases proposed by the Board in the number of
shares available for issuance under all other employee or director stock plans,
including, without limitation, employee stock purchase plans, would result in
the total number of shares then available for issuance under all employee and
director stock plans exceeding 25% of the outstanding shares of the Company on
the first day of the applicable fiscal year.

 

If any
Award expires or is terminated, surrendered or canceled without having been
fully exercised or is forfeited in whole or in part (including as the result of
shares of Common Stock subject to such Award being repurchased by the Company
at the original issuance price pursuant to a contractual repurchase right) or
results in any Common Stock not being issued, the unused Common Stock covered
by such Award shall again be available for the grant of Awards under the Plan,
subject, however, in the case of Incentive Stock Options, to any limitations
under the Code.  Shares issued under the
Plan may consist in whole or in part of authorized but unissued shares or
treasury shares.

 

(b)         Per-Participant
Limit.  Subject to adjustment under Section 10,
for Awards granted after the Common Stock is registered under the Exchange Act,
the maximum number of shares

 

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of Common Stock with
respect to which Awards may be granted to any Participant under the Plan shall
be 512,000 per calendar
year.  The per-Participant limit
described in this Section 4(b) shall be construed and applied
consistently with Section 162(m) of the Code (“Section 162(m)”).

 

5.                                       Stock
Options

 

(a)          General.  The Board may grant options to purchase
Common Stock (each, an “Option”) and determine the number of shares of Common
Stock to be covered by each Option, the exercise price of each Option and the
conditions and limitations applicable to the exercise of each Option, including
conditions relating to applicable federal or state securities laws, as it
considers necessary or advisable.  An
Option which is not intended to be an Incentive Stock Option (as hereinafter
defined) shall be designated a “Nonstatutory Stock Option”.

 

(b)         Incentive
Stock Options.  An Option that the
Board intends to be an “incentive stock option” as defined in Section 422
of the Code (an “Incentive Stock Option”) shall only be granted to employees of
Momenta Pharmaceuticals, Inc., any of Momenta Pharmaceutical Inc.’s
present or future parent or subsidiary corporations as defined in Sections 424(e) or
(f) of the Code, and any other entities the employees of which are
eligible to receive Incentive Stock Options under the Code, and shall be
subject to and shall be construed consistently with the requirements of Section 422
of the Code.  The Company shall have no
liability to a Participant, or any other party, if an Option (or any part
thereof) that is intended to be an Incentive Stock Option is not an Incentive
Stock Option or for any action taken by the Board pursuant to Section 11(f),
including without limitation the conversion of an Incentive Stock Option to a
Nonstatutory Stock Option.

 

(c)          Exercise
Price.  The Board shall establish the
exercise price of each Option and specify such exercise price in the applicable
option agreement.

 

(d)         Duration
of Options.  Each Option shall be
exercisable at such times and subject to such terms and conditions as the Board
may specify in the applicable option agreement; provided, however, that no
Option will be granted for a term in excess of 10 years.

 

(e)          Exercise
of Option.  Options may be exercised
by delivery to the Company of a written notice of exercise signed by the proper
person or by any other form of notice (including electronic notice) approved by
the Board together with payment in full as specified in Section 5(f) for
the number of shares for which the Option is exercised.

 

(f)            Payment
Upon Exercise.  Common Stock
purchased upon the exercise of an Option granted under the Plan shall be paid
for as follows:

 

(1)                                  in
cash or by check, payable to the order of the Company;

 

(2)                                  except
as the Board may otherwise provide in an option agreement, by (i) delivery
of an irrevocable and unconditional undertaking by a creditworthy broker to
deliver promptly to the Company sufficient funds to pay the exercise price and
any required tax withholding or (ii) delivery by the Participant to the
Company of a copy of irrevocable and unconditional instructions to a
creditworthy broker to deliver promptly to the Company cash or a check
sufficient to pay the exercise price and any required tax withholding;

 

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(3)                                  when
the Common Stock is registered under the Exchange Act, by delivery of shares of
Common Stock owned by the Participant valued at their fair market value as
determined by (or in a manner approved by) the Board (“Fair Market Value”),
provided (i) such method of payment is then permitted under applicable
law, (ii) such Common Stock, if acquired directly from the Company, was
owned by the Participant at least six months prior to such delivery and (iii) such
Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting
or other similar requirements;

 

(4)                                  to
the extent permitted by applicable law and by the Board, by (i) delivery
of a promissory note of the Participant to the Company on terms determined by
the Board, or (ii) payment of such other lawful consideration as the Board
may determine; or

 

(5)                                  by
any combination of the above permitted forms of payment.

 

(g)         Substitute
Options.  In connection with a merger
or consolidation of an entity with the Company or the acquisition by the
Company of property or stock of an entity, the Board may grant Options in
substitution for any options or other stock or stock-based awards granted by
such entity or an affiliate thereof. 
Substitute Options may be granted on such terms as the Board deems
appropriate in the circumstances, notwithstanding any limitations on Options
contained in the other sections of this Section 5 or in Section 2.

 

6.                                       Director
Options.

 

(a)          Initial
Grant.  Upon the commencement of
service on the Board by any individual who is not then an employee of the
Company or any subsidiary of the Company, the Company shall grant to such
person a Nonstatutory Stock Option to purchase no more than 38,400 shares of Common
Stock (subject to adjustment under Section 10).

 

(b)         Annual
Grant.  Subject to an annual
evaluation, which evaluation shall be overseen by the Corporation’s Nominating
and Corporate Governance Committee, on the date of each annual meeting of
stockholders of the Company, the Company shall grant to each member of the
Board of Directors of the Company who is both serving as a director of the
Company immediately prior to and immediately following such annual meeting and
who is not then an employee of the Company or any of its subsidiaries, a
Nonstatutory Stock Option to purchase no more than 19,200 shares of Common
Stock (subject to adjustment under Section 10); provided, however, that a
director shall not be eligible to receive an option grant under this Section 6(b) until
such director has served on the Board for at least six months.

 

(c)          Terms of
Director Options.  Options granted
under this Section 6 shall (i) have an exercise price equal to the
last reported sale price of the Common Stock on The Nasdaq Stock Market or the
national securities exchange on which the Common Stock is then traded on the
trading date immediately prior to the date of grant (and if the Common Stock is
not then traded on The Nasdaq Stock Market or a national securities exchange, the
fair market value of the Common Stock on such date as determined by the Board),
(ii) be exercisable at such times as the Board may specify in the
applicable option agreement; provided, however, that no option will be granted
to a non-employee director for a term in excess of 10 years and (iii) contain
such other terms and conditions as the Board shall determine.

 

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7.                                       Stock
Appreciation Rights.

 

(a)          Nature of Stock Appreciation Rights.
A Stock Appreciation Right, or SAR, is an Award entitling the holder on
exercise to receive an amount in cash or Common Stock or a combination thereof
(such form to be determined by the Board) determined in whole or in part by
reference to appreciation, from and after the date of grant, in the fair market
value of a share of Common Stock.  SARs
may be based solely on appreciation in the fair market value of Common Stock or
on a comparison of such appreciation with some other measure of market growth
such as (but not limited to) appreciation in a recognized market index.  The date as of which such appreciation or
other measure is determined shall be the exercise date unless another date is
specified by the Board in the SAR Award.

 

(b)         Grants.  Stock Appreciation Rights may be granted in
tandem with, or independently of, Options granted under the Plan.

 

(1)                                  Rules Applicable to Tandem Awards. 
When Stock Appreciation Rights are expressly granted in tandem with
Options, (i) the Stock Appreciation Right will be exercisable only at such
time or times, and to the extent, that the related Option is exercisable and
will be exercisable in accordance with the procedure required for exercise of
the related Option; (ii) the Stock Appreciation Right will terminate and
no longer be exercisable upon the termination or exercise of the related
Option, except that a Stock Appreciation Right granted with respect to less
than the full number of shares covered by an Option will not be reduced until
the number of shares as to which the related Option has been exercised or has
terminated exceeds the number of shares not covered by the Stock Appreciation
Right; (iii) the Option will terminate and no longer be exercisable upon
the exercise of the related Stock Appreciation Right; and (iv) the Stock
Appreciation Right will be transferable only with the related Option.

 

(2)                                  Exercise of Independent Stock Appreciation Rights.  A
Stock Appreciation Right not expressly granted in tandem with an Option will
become exercisable at such time or times, and on such conditions, as the Board
may specify in the SAR Award.

 

(c)          Exercise.  Any exercise of a Stock Appreciation Right
must be in writing, signed by the proper person and delivered or mailed to the
Company, accompanied by any other documents required by the Board.

 

8.                                       Restricted
Stock.

 

(a)          Grants.  The Board may grant Awards entitling
recipients to acquire shares of Common Stock, subject to the right of the
Company to repurchase all or part of such shares at their issue price or other
stated or formula price (or to require forfeiture of such shares if issued at
no cost) from the recipient in the event that conditions specified by the Board
in the applicable Award are not satisfied prior to the end of the applicable
restriction period or periods established by the Board for such Award (each, a “Restricted
Stock Award”).

 

(b)         Terms and
Conditions.  The Board shall
determine the terms and conditions of a Restricted Stock Award, including the
conditions for repurchase (or forfeiture) and the issue price, if any.

 

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(c)          Stock
Certificates.  Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name
of the Participant and, unless otherwise determined by the Board, deposited by
the Participant, together with a stock power endorsed in blank, with the
Company (or its designee).  At the
expiration of the applicable restriction periods, the Company (or such
designee) shall deliver the certificates no longer subject to such restrictions
to the Participant or if the Participant has died, to the beneficiary
designated, in a manner determined by the Board, by a Participant to receive
amounts due or exercise rights of the Participant in the event of the
Participant’s death (the “Designated Beneficiary”).  In the absence of an effective designation by
a Participant, “Designated Beneficiary” shall mean the Participant’s estate.

 

(d)         Deferred
Delivery of Shares.  The Board may,
at the time any Restricted Stock Award is granted, provide that, at the time
Common Stock would otherwise be delivered pursuant to the Award, the
Participant shall instead receive an instrument evidencing the right to future
delivery of Common Stock at such time or times, and on such conditions, as the
Board shall specify.  The Board may at
any time accelerate the time at which delivery of all or any part of the Common
Stock shall take place.

 

9.                                       Other
Stock-Based Awards.

 

Other Awards of shares of Common Stock, and other
Awards that are valued in whole or in part by reference to, or are otherwise
based on, shares of Common Stock or other property, may be granted hereunder to
Participants (“Other Stock Unit Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the future.  Such Other Stock Unit Awards shall also be
available as a form of payment in the settlement of other Awards granted under
the Plan or as payment in lieu of compensation to which a Participant is
otherwise entitled.  Other Stock Unit
Awards may be paid in shares of Common Stock or cash, as the Board shall
determine.  Subject to the provisions of
the Plan, the Board shall determine the conditions of each Other Stock Unit
Awards, including any purchase price applicable thereto.  At the time any Award is granted, the Board
may provide that, at the time Common Stock would otherwise be delivered
pursuant to the Award, the Participant will instead receive an instrument
evidencing the Participant’s right to future delivery of the Common Stock.

 

10.                                 Adjustments
for Changes in Common Stock and Certain Other Events.

 

(a)          Changes
in Capitalization.  In the event of
any stock split, reverse stock split, stock dividend, recapitalization,
combination of shares, reclassification of shares, spin-off or other similar change
in capitalization or event, or any distribution to holders of Common Stock
other than an ordinary cash dividend, (i) the number and class of
securities available under this Plan, (ii) the per-Participant limit set
forth in Section 4(b), (iii) the number and class of securities and
exercise price per share of each outstanding Option and each Option issuable
under Section 6, (iv) the repurchase price per share subject to each
outstanding Restricted Stock Award and (v) the share- and
per-share-related provisions of each outstanding Stock Appreciation Right and
Other Stock Unit Award, shall be appropriately adjusted by the Company (or
substituted Awards may be made, if applicable) to the extent determined by the
Board.

 

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(b)         Reorganization
Events.

 

(1)                                  Definition.  A “Reorganization Event” shall mean:  (a) any merger or consolidation of the
Company with or into another entity as a result of which all of the Common
Stock of the Company is converted into or exchanged for the right to receive
cash, securities or other property, (b) any exchange of all of the Common
Stock of the Company for cash, securities or other property pursuant to a share
exchange transaction or (c) any liquidation or dissolution of the Company.

 

(2)                                  Consequences
of a Reorganization Event on Awards Other than Restricted Stock Awards.  In connection with a Reorganization Event,
the Board shall take any one or more of the following actions as to all or any
outstanding Awards on such terms as the Board determines:  (i) provide that Awards shall be
assumed, or substantially equivalent Awards shall be substituted, by the
acquiring or succeeding corporation (or an affiliate thereof), (ii) upon
written notice to a Participant, provide that the Participant’s unexercised
Options or other unexercised Awards shall become exercisable in full and will
terminate immediately prior to the consummation of such Reorganization Event
unless exercised by the Participant within a specified period following the date
of such notice, (iii) provide that outstanding Awards shall become
realizable or deliverable, or restrictions applicable to an Award shall lapse,
in whole or in part prior to or upon such Reorganization Event, (iv) in
the event of a Reorganization Event under the terms of which holders of Common
Stock will receive upon consummation thereof a cash payment for each share
surrendered in the Reorganization Event (the “Acquisition Price”), make or
provide for a cash payment to a Participant equal to (A) the Acquisition
Price times the number of shares of Common Stock subject to the Participant’s
Options or other Awards (to the extent the exercise price does not exceed the
Acquisition Price) minus (B) the aggregate exercise price of all such
outstanding Options or other Awards, in exchange for the termination of such
Options or other Awards, (v) provide that, in connection with a
liquidation or dissolution of the Company, Awards shall convert into the right
to receive liquidation proceeds (if applicable, net of the exercise price
thereof) and (vi) any combination of the foregoing.

 

For purposes of clause (i) above,
an Option shall be considered assumed if, following consummation of the
Reorganization Event, the Option confers the right to purchase, for each share of
Common Stock subject to the Option immediately prior to the consummation of the
Reorganization Event, the consideration (whether cash, securities or other
property) received as a result of the Reorganization Event by holders of Common
Stock for each share of Common Stock held immediately prior to the consummation
of the Reorganization Event (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding shares of Common Stock); provided, however, that if the
consideration received as a result of the Reorganization Event is not solely
common stock of the acquiring or succeeding corporation (or an affiliate
thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be received upon the exercise of Options to
consist solely of common stock of the acquiring or succeeding corporation (or
an affiliate thereof) equivalent in fair market value to the per share
consideration received by holders of outstanding shares of Common Stock as a
result of the Reorganization Event.

 

To the extent all or any
portion of an Option becomes exercisable solely as a result of clause (ii) above,
the Board may provide that upon exercise of such Option the

 

7

 

Participant shall receive
shares subject to a right of repurchase by the Company or its successor at the
Option exercise price; such repurchase right (x) shall lapse at the same rate
as the Option would have become exercisable under its terms and (y) shall not
apply to any shares subject to the Option that were exercisable under its terms
without regard to clause (ii) above.

 

(3)                                  Consequences
of a Reorganization Event on Restricted Stock Awards.  Upon the occurrence of a Reorganization Event
other than a liquidation or dissolution of the Company, the repurchase and
other rights of the Company under each outstanding Restricted Stock Award shall
inure to the benefit of the Company’s successor and shall apply to the cash,
securities or other property which the Common Stock was converted into or
exchanged for pursuant to such Reorganization Event in the same manner and to
the same extent as they applied to the Common Stock subject to such Restricted
Stock Award.  Upon the occurrence of a
Reorganization Event involving the liquidation or dissolution of the Company,
except to the extent specifically provided to the contrary in the instrument
evidencing any Restricted Stock Award or any other agreement between a
Participant and the Company, all restrictions and conditions on all Restricted
Stock Awards then outstanding shall automatically be deemed terminated or
satisfied.

 

11.                                 General
Provisions Applicable to Awards

 

(a)          Transferability
of Awards.  Except as the Board may
otherwise determine or provide in an Award, Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws
of descent and distribution or, other than in the case of an Incentive Stock
Option, pursuant to a qualified domestic relations order, and, during the life
of the Participant, shall be exercisable only by the Participant.  References to a Participant, to the extent relevant
in the context, shall include references to authorized transferees.

 

(b)         Documentation.  Each Award shall be evidenced in such form
(written, electronic or otherwise) as the Board shall determine.  Each Award may contain terms and conditions
in addition to those set forth in the Plan.

 

(c)          Board
Discretion.  Except as otherwise
provided by the Plan, each Award may be made alone or in addition or in
relation to any other Award.  The terms
of each Award need not be identical, and the Board need not treat Participants
uniformly.

 

(d)         Termination
of Status.  The Board shall determine
the effect on an Award of the disability, death, retirement, authorized leave
of absence or other change in the employment or other status of a Participant
and the extent to which, and the period during which, the Participant, or the
Participant’s legal representative, conservator, guardian or Designated
Beneficiary, may exercise rights under the Award.

 

(e)          Withholding.  Each Participant shall pay to the Company, or
make provision satisfactory to the Company for payment of, any taxes required
by law to be withheld in connection with an Award to such Participant.  Except as the Board may otherwise provide in
an Award, for so long as the Common Stock is registered under the Exchange Act,
Participants may satisfy such tax obligations in whole or in part by delivery
of shares of Common Stock, including shares retained from the Award creating
the tax obligation, valued at their Fair Market Value;

 

8

 

provided, however, that
the total tax withholding where stock is being used to satisfy such tax
obligations cannot exceed the Company’s minimum statutory withholding
obligations (based on minimum statutory withholding rates for federal and state
tax purposes, including payroll taxes, that are applicable to such supplemental
taxable income).  Shares surrendered to
satisfy tax withholding requirements cannot be subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements.  The Company may, to the extent permitted by
law, deduct any such tax obligations from any payment of any kind otherwise due
to a Participant.

 

(f)            Amendment
of Award.  The Board may amend,
modify or terminate any outstanding Award, including but not limited to,
substituting therefor another Award 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 the Board determines that the action, taking
into account any related action, would not materially and adversely affect the
Participant.

 

(g)         Conditions
on Delivery of Stock.  The Company
will not be obligated to deliver any shares of Common Stock pursuant to the
Plan or to remove restrictions from shares previously delivered under the Plan
until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel,
all other legal matters in connection with the issuance and delivery of such
shares have been satisfied, including any applicable securities laws and any
applicable stock exchange or stock market rules and regulations, and (iii) the
Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements
of any applicable laws, rules or regulations.

 

(h)         Acceleration.  The Board may at any time provide that any
Award shall become immediately exercisable in full or in part, free of some or
all restrictions or conditions, or otherwise realizable in full or in part, as
the case may be.

 

12.                                 Miscellaneous

 

(a)          No Right
To Employment or Other Status.  No
person shall have any claim or right to be granted an Award, and the grant of
an Award shall not be construed as giving a Participant the right to continued
employment or any other relationship with the Company.  The Company expressly reserves the right at
any time to dismiss or otherwise terminate its relationship with a Participant
free from any liability or claim under the Plan, except as expressly provided
in the applicable Award.

 

(b)         No Rights
As Stockholder.  Subject to the
provisions of the applicable Award, no Participant or Designated Beneficiary
shall have any rights as a stockholder with respect to any shares of Common
Stock to be distributed with respect to an Award until becoming the record
holder of such shares.  Notwithstanding
the foregoing, in the event the Company effects a split of the Common Stock by
means of a stock dividend and the exercise price of and the number of shares
subject to such Option are adjusted as of the date of the distribution of the
dividend (rather than as of the record date for such dividend), then an
optionee who exercises an Option between the record date and the distribution
date for such stock dividend shall be entitled to receive, on the distribution
date, the stock dividend with respect to the shares of Common Stock acquired

 

9

 

upon such Option
exercise, notwithstanding the fact that such shares were not outstanding as of
the close of business on the record date for such stock dividend.

 

(c)          Effective
Date and Term of Plan.  The Plan shall
become effective on the date on which it is adopted by the Board, but no Award
may be granted unless and until the Plan has been approved by the Company’s
stockholders.  No Awards shall be granted
under the Plan after the completion of 10 years from the earlier of (i) the
date on which the Plan was adopted by the Board or (ii) the date the Plan
was approved by the Company’s stockholders, but Awards previously granted may
extend beyond that date.

 

(d)         Amendment
of Plan.  The Board may amend,
suspend or terminate the Plan or any portion thereof at any time; provided
that, to the extent determined by the Board, no amendment requiring stockholder
approval under any applicable legal, regulatory or listing requirement shall
become effective until such stockholder approval is obtained.  No Award shall be made that is conditioned
upon stockholder approval of any amendment to the Plan.

 

(e)          Provisions
for Foreign Participants.  The Board
may modify Awards or Options granted to Participants who are foreign nationals
or employed outside the United States or establish subplans or procedures under
the Plan to recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee
benefit or other matters.

 

(f)            Governing
Law.  The provisions of the Plan and
all Awards made hereunder shall be governed by and interpreted in accordance
with the laws of the State of Delaware, without regard to any applicable
conflicts of law.

 

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