Document:

EXHIBIT 10.1

 

BIOJECT MEDICAL TECHNOLOGIES INC.

2000 EMPLOYEE STOCK PURCHASE PLAN

(AS AMENDED AS OF MARCH 13, 2003
AND APRIL 11, 2005)

 

1.                                      Purpose of the Plan. 
Bioject Medical Technologies Inc. (the “Company”) believes that
ownership of shares of its common stock by employees of the Company and its
Participating Subsidiaries (hereinafter defined) is desirable as an incentive
to better performance and improvement of profits, and as a means by which
employees may share in the rewards of growth and success.  The purpose of the Company’s 2000 Employee
Stock Purchase Plan (the “Plan”) is to provide a convenient means by which
employees of the Company and Participating Subsidiaries may purchase the
Company’s shares through payroll deductions and a method by which the Company
may assist and encourage such employees to become share owners.

 

2.                                      Shares Reserved for the
Plan.  There are 750,000 shares of the Company’s authorized but unissued or
reacquired common stock reserved for purposes of the Plan.  The number of shares reserved for the Plan is
subject to adjustment in the event of any stock dividend, stock split,
combination of shares, recapitalization or other change in the outstanding
common stock of the Company.  The determination
of whether an adjustment shall be made and the manner of any such adjustment
shall be made by the Board of Directors of the Company, which determination
shall be conclusive.

 

3.                                      Administration of the
Plan.  The Plan shall be administered by the Board
of Directors.  The Board of Directors may
promulgate rules and regulations for the operation of the Plan, adopt
forms for use in connection with the Plan, and decide any question of
interpretation of the Plan or rights arising thereunder.  The Board of Directors may consult with
counsel for the Company on any matter arising under the Plan.  All determinations and decisions of the Board
of Directors shall be conclusive. 
Notwithstanding the foregoing, the Board of Directors, if it so desires,
may delegate to the Compensation Committee of the Board the authority for
general administration of the Plan.

 

4.                                      Eligible Employees. 
Except as indicated below, all full-time employees of the Company and
all full-time employees of each of the Company’s subsidiary corporations which
is designated by the Board of Directors of the Company as a participant in the
Plan (such participating subsidiary being hereinafter called a “Participating
Subsidiary”) are eligible to participate in the Plan.  Any employee who would, after a purchase of
shares under the Plan, own or be deemed (under Section 424(d) of the
Internal Revenue Code of 1986, as amended (the “Code”)) to own stock (including
stock subject to any outstanding options held by the employee) possessing 5
percent or more of the total combined voting power or value of all classes of
stock of the Company or any parent or subsidiary of the Company, shall be
ineligible to participate in the Plan.  A
“full-time employee” is one who is in the active service of the Company or a
Participating Subsidiary on the applicable Subscription Deadline (as defined
below) 

 

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excluding,
however, any employee whose customary employment is 20 hours or less per week
or whose customary employment is for not more than five months per calendar
year.

 

5.                                      Offerings.

 

(a)                                  Offerings and Purchase
Periods.  The Plan shall be implemented by a series of
overlapping two-year offerings (the “Offerings”), with a new Offering
commencing on May 15 and November 15 of each year beginning with November 15,
2000.  Accordingly, up to four separate
Offerings may be in process at any time, but an employee may only participate
in one Offering at a time.  The first day
of each Offering is the “Offering Date” for that Offering and each Offering
shall end on the second anniversary of its Offering Date.  Each Offering shall be divided into four
six-month purchase periods (“Purchase Periods”), one of which shall end on each
May 15 and November 15 during the term of the Offering.  The last day of each Purchase Period is a “Purchase
Date” for the applicable Offering.

 

(b)                                 Grants; Limitations. 
On each Offering Date, each eligible employee shall be granted an option
under the Plan to purchase shares of common stock on the Purchase Dates for the
Offering for the price determined under paragraph 7 of the Plan exclusively
through payroll deductions authorized under paragraph 6 of the Plan; provided,
however, that (a) no option shall permit the purchase of more than 10,000
shares, and (b) no option may be granted under the Plan that would allow
an employee’s right to purchase shares under all stock purchase plans of the
Company and its parents and subsidiaries to which Section 423 of the Code
applies to accrue at a rate that exceeds $25,000 of fair market value of shares
(determined at the date of grant) for each calendar year in which such option
is outstanding.

 

6.                                      Participation in the Plan.

 

(a)                                  Initiating
Participation.  An eligible employee may participate in an
Offering under the Plan by filing with the Company a subscription and payroll
deduction authorization on a form furnished by the Company.  The subscription and payroll deduction
authorization must be filed no later than 10 days prior to the Offering Date
(the “Subscription Deadline”).  Once
filed, a subscription and payroll deduction authorization shall remain in
effect unless amended or terminated, and upon the expiration of an Offering the
participants in that Offering will be automatically enrolled in the new
Offering starting the same day.  The
payroll deduction authorization will authorize the employing corporation to
make payroll deductions from each of the participant’s paychecks during the
Offering other than a paycheck issued on the Offering Date.  The amount to be deducted shall be designated
by the participant in the payroll deduction authorization and must be a whole
percentage of not less than one percent and not more than 15 percent of the
gross amount of base pay plus commissions, if any, payable to the participant
for the period covered by each paycheck. 
If payroll deductions are made by a Participating Subsidiary, that
corporation will promptly remit the amount of the deductions to the Company.

 

(b)                                 Amending or Terminating
Participation.  After a participant has begun participating
in the Plan by initiating payroll deductions, the participant may amend the
payroll deduction authorization up to two times during any Purchase Period, and
may terminate participation in the Plan at any time at least 10 days prior to a
Purchase Date by written notice to the Company. 
A permitted change in payroll deductions shall be effective for any pay
period only if written notice is received by the Company at least 10 days prior
to the payday for that pay period. 
Participation in the Plan shall also terminate when a participant ceases
to be an eligible employee for any reason, including death or retirement.  A participant may not reinstate participation
in the Plan with respect to a particular Offering after once terminating
participation in the Plan with respect to that Offering.  Upon termination of a participant’s
participation in the Plan, all amounts deducted from the participant’s pay and
not previously used to purchase shares under the Plan shall be returned to the
participant.

 

7.                                      Option Price. 
The price at which shares shall be purchased on any Purchase Date in an
Offering shall be the lower of (a) 85% of the fair market value of a share
of common stock on the Offering Date of the Offering or (b) 85% of the
fair market value of a share of common stock on the Purchase Date.  The fair market value of a share of common
stock on any date shall be the closing price on that 

 

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date
as reported by the Nasdaq Stock Market or, if the common stock is not reported
on the Nasdaq Stock Market, such other reported value of the common stock as
shall be specified by the Board of Directors. 
If an Offering Date or Purchase Date occurs on a date that is not a
market trading day, the fair market value of a share of common stock on that
date shall be such closing market price on the next trading day.

 

8.                                      Purchase of Shares. 
All amounts withheld from the pay of a participant shall be credited to
his or her account under the Plan by the Custodian appointed under paragraph
10.  No interest will be paid on such
accounts, unless otherwise determined by the Board of Directors.  On each Purchase Date, the amount of the
account of each participant will be applied to the purchase of whole shares by
such participant from the Company at the price determined under paragraph
7.  Any cash balance remaining in a
participant’s account after a Purchase Date because it was less than the amount
required to purchase a full share shall be retained in the participant’s
account for the next Purchase Period.  Any
other amounts in a participant’s account after a Purchase Date will be repaid
to the participant.

 

9.                                      Automatic Withdrawal and
Re-enrollment.  If the fair market value of a share of common
stock on any Purchase Date of an Offering is less than the fair market value of
a share of common stock was on the Offering Date for such Offering, then every
participant in that Offering shall automatically (a) be withdrawn from
such Offering after the acquisition of the shares of common stock on such
Purchase Date, and (b) be enrolled in the new Offering commencing on such
Purchase Date.

 

10.                               Delivery and Custody of Shares. 
Shares purchased by participants pursuant to the Plan will be delivered
to and held in the custody of such investment or financial firm (the “Custodian”)
as shall be appointed by the Board of Directors.  The Custodian may hold in nominee or street
name certificates for shares purchased pursuant to the Plan, and may commingle
shares in its custody pursuant to the Plan in a single account without identification
as to individual participants.  By
appropriate instructions to the Custodian on forms to be provided for that
purpose, a participant may from time to time sell all or part of the shares
held by the Custodian for the participant’s account at the market price at the
time the order is executed.  By
appropriate instructions to the Custodian on forms to be provided for that
purpose, a participant may obtain (a) transfer into the participant’s own
name of all or part of the shares held by the Custodian for the participant’s
account and delivery of such shares to the participant, or (b) transfer of
all or part of the shares held for the participant’s account by the Custodian
to a regular individual brokerage account in the participant’s own name, either
with the firm then acting as Custodian or with another firm; provided, however,
that no shares may be transferred under (a) or (b) until two years
after the Offering Date of the Offering in which the shares were purchased and
one year after the Purchase Date on which the shares were purchased.

 

11.                               Records and Statements. 
The Custodian will maintain the records of the Plan.  As soon as practicable after each Purchase
Date each participant will receive a statement showing the activity of his account
since the preceding Purchase Date and the balance on the Purchase Date as to
both cash and shares.  Participants will
be furnished such other reports and statements, and at such intervals, as the
Board of Directors shall determine from time to time.

 

12.                               Expense of the Plan. 
The Company will pay all expenses incident to operation of the Plan,
including costs of record keeping, accounting fees, legal fees, commissions and
issue or transfer taxes on purchases pursuant to the Plan and on delivery of
shares to a participant or into his or her brokerage account.  The Company will not pay expenses,
commissions or taxes incurred in connection with sales of shares by the
Custodian at the request of a participant. 
Expenses to be paid by a participant will be deducted from the proceeds
of sale prior to remittance.

 

13.                               Rights Not Transferable. 
The right to purchase shares under this Plan is not transferable by a
participant, and such right is exercisable during the participant’s lifetime
only by the participant.  Upon the death
of a participant, any cash withheld and not previously applied to purchase
shares, together with any shares held by the Custodian for the participant’s
account shall be transferred to the persons entitled thereto under the laws of
the state of domicile of the participant upon a proper showing of authority.

 

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14.                               Dividends and Other Distributions. 
Cash dividends and other cash distributions, if any, on shares held by
the Custodian will be paid currently to the participants entitled thereto
unless the Company subsequently adopts a dividend reinvestment plan and the
participant directs that his or her cash dividends be invested in accordance
with such plan.  Stock dividends and
other distributions in shares of common stock of the Company on shares held by
the Custodian shall be issued to the Custodian and held by it for the account
of the respective participants entitled thereto.

 

15.                               Voting and Shareholder
Communications.  In connection with voting on any matter
submitted to the shareholders of the Company, the Custodian will furnish to
each participant a proxy authorizing the participant to vote the shares held by
the Custodian for his account.  Copies of
all general communications to shareholders of the Company will be sent to
participants in the Plan.

 

16.                               Tax Withholding. 
Each participant who has purchased shares under the Plan shall
immediately upon notification of the amount due, if any, pay to the Company in
cash amounts necessary to satisfy any applicable federal, state and local tax
withholding determined by the Company to be required.  If the Company determines that additional
withholding is required beyond any amount deposited at the time of purchase,
the participant shall pay such amount to the Company on demand.  If the participant fails to pay the amount
demanded, the Company may withhold that amount from other amounts payable by
the Company to the participant, including salary, subject to applicable law.

 

17.                               Responsibility and Indemnity. 
Neither the Company, its Board of Directors, the Custodian, any
Participating Subsidiary, nor any member, officer, agent, or employee of any of
them, shall be liable to any participant under the Plan for any mistake of
judgment or for any omission or wrongful act unless resulting from gross
negligence, willful misconduct or intentional misfeasance.  The Company will indemnify and save harmless
its Board of Directors, the Custodian and any such member, officer, agent or employee
against any claim, loss, liability or expense arising out of the Plan, except
such as may result from the gross negligence, willful misconduct or intentional
misfeasance of such entity or person.

 

18.                               Conditions and Approvals. 
The obligations of the Company under the Plan shall be subject to
compliance with all applicable state and federal laws and regulations,
compliance with the rules of any stock exchange on which the Company’s
securities may be listed, and approval of such federal and state authorities or
agencies as may have jurisdiction over the Plan or the Company.  The Company will use its best effort to
comply with such laws, regulations and rules and to obtain such approvals.

 

19.                               Amendment of the Plan. 
The Board of Directors of the Company may from time to time amend the
Plan in any and all respects, except that without the approval of the
shareholders of the Company, the Board of Directors may not increase the number
of shares reserved for the Plan (except for adjustments authorized in paragraph
2, above) or decrease the purchase price of shares offered pursuant to the
Plan.

 

20.                               Termination of the Plan. 
The Plan shall terminate when all of the shares reserved for purposes of
the Plan have been purchased, provided that the Board of Directors in its sole
discretion may at any time terminate the Plan without any obligation on account
of such termination, except as hereinafter in this paragraph provided.  Upon termination of the Plan, the cash and
shares, if any, held in the account of each participant shall forthwith be
distributed to the participant or to the participant’s order, provided that if
prior to the termination of the Plan, the Board of Directors and shareholders
of the Company shall have adopted and approved a substantially similar plan,
the Board of Directors may in its discretion determine that the account of each
participant under this Plan shall be carried forward and continued as the
account of such participant under such other plan, subject to the right of any
participant to request distribution of the cash and shares, if any, held for
his account.

 

Amended:  March 13,
2003 and April 11, 2005

 

4EXHIBIT 10.2

 

BIOJECT MEDICAL TECHNOLOGIES INC.

RESTATED 1992 STOCK INCENTIVE PLAN

(AS AMENDED AS OF SEPTEMBER 13, 2001, MARCH 13,
2003 AND APRIL 26, 2005)

 

1.                                      Purpose.  The
purpose of this Restated 1992 Stock Incentive Plan (the “Plan”) is to enable
Bioject Medical Technologies Inc., an Oregon corporation (the “Company”), to
attract and retain the services of (a) selected employees, officers and
directors of the Company or of any parent or subsidiary corporation of the
Company, and (b) selected nonemployee agents, consultants, advisers and
independent contractors of the Company or any parent or subsidiary.

 

2.                                      Shares Subject to the Plan. 
Subject to adjustment as provided below and in paragraph 11, up to 3,900,000
shares of Common Stock of the Company (the “Shares”) shall be offered and
issued under the Plan.  If an option or a
stock appreciation right granted under the Plan expires, terminates or is
cancelled, the unissued Shares subject to such option or stock appreciation right
shall again be available under the Plan. 
If Shares sold or awarded as a bonus under the Plan are forfeited to the
Company or repurchased by the Company, the number of Shares forfeited or
repurchased shall again be available under the Plan.

 

3.                                      Effective Date and Duration of
Plan.

 

(a)                                  Effective Date.  The
Plan shall become effective when adopted by the Board of Directors of the
Company (the “Board”).  However, no
option granted under the Plan shall become exercisable until the Plan is
approved by the affirmative vote of the holders of a majority of the Common
Stock of the Company represented at a shareholder meeting at which a quorum is
present, and any such awards under the Plan prior to such approval shall be
conditioned on and subject to such approval. 
Subject to this limitation, options and stock appreciation rights may be
granted and Shares may be awarded as bonuses or sold under the Plan at any time
after the effective date and before termination of the Plan.

 

(b)                                 Duration.  No
options or stock appreciation rights may be granted under the Plan, no stock
bonuses may be awarded under the Plan, and no Shares may be sold pursuant to
paragraph 8 of the Plan on or after June 30, 2010.  However, the Plan shall continue in effect
until all Shares available for issuance under the Plan have been issued and all
restrictions on such Shares have lapsed. 
The Board may suspend or terminate the Plan at any time, except with
respect to options, stock appreciation rights and Shares subject to
restrictions then outstanding under the Plan. 
Termination shall not affect any outstanding options, stock appreciation
rights, any right of the Company to repurchase Shares or the forfeitability of
Shares issued under the Plan.

 

4.                                      Administration.

 

(a)                                  The Plan shall be administered by a committee
appointed by the Board consisting of not less than two directors (the “Committee”).  The Committee shall determine and designate
from time to time the individuals to whom awards shall be made, the amount of
the awards, and the other terms and conditions of the awards; provided, however, that only
the Board may amend or terminate the Plan as provided in paragraphs 3 and
14.  At any time when the officers and
directors of the Company are subject to Section 16(b) of the
Securities Exchange Act of 1934 (the “Exchange Act”), the Committee shall
consist solely of “non-employee” directors as such term is defined from time to
time in SEC Rule 16b-3(b)(3)(i) or successor rule.  No member of the Committee shall be eligible
to receive any award under the Plan while such person serves as a Committee
member, except pursuant to paragraph 10.

 

(b)                                 Subject to the provisions of the Plan, the
Committee may from time to time adopt and amend rules and regulations
relating to administration of the Plan, advance the lapse of any waiting period,
accelerate any vesting or exercise date, waive or modify any restriction
applicable to Shares (except those 

 

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restrictions imposed by law) and make all
other determinations in the judgment of the Committee necessary or desirable
for the administration of the Plan.  The
interpretation and construction of the provisions of the Plan and related
agreements by the Committee shall be final and conclusive.  The Committee may correct any defect or
supply any omission or reconcile any inconsistency in the Plan or in any
related agreement 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.

 

(c)                                  Notwithstanding anything to the contrary
contained in this paragraph 4, the Board of Directors may delegate to the Chief
Executive Officer of the Company, as a one-member committee of the Board of
Directors, the authority to grant awards to any eligible employee who is not,
at the time of such grant, subject to the reporting requirements and liability
provisions contained in Section 16 of the Securities Exchange Act of 1934
and the regulations thereunder.

 

5.                                      Types of Awards; Eligibility.  The
Committee may, from time to time, take the following actions under the
Plan:  (i) grant Incentive Stock
Options as defined in Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”), as provided in paragraph 6(b); (ii) grant options
other than Incentive Stock Options (“Nonstatutory Stock Options”) as provided
in paragraph 6(c); (iii) award stock bonuses as provided in
paragraph 7; (iv) sell Shares as provided in paragraph 8; and (v) grant
stock appreciation rights as provided in paragraph 9.  Any such awards may be made to employees
(including employees who are officers or directors) of the Company or of any
parent or subsidiary corporation of the Company, and to other individuals
described in paragraph 1 who the Committee believes have made or will make
an important contribution to the Company or its parent or subsidiaries; provided, however, that only
employees of the Company or a parent or subsidiary shall be eligible to receive
Incentive Stock Options under the Plan, and, provided
further,
that directors who are not employees shall receive awards only pursuant to
paragraph 10.  The Committee shall
select the individuals to whom awards shall be made and shall specify the
action taken with respect to each individual to whom an award is made under the
Plan.  At the discretion of the
Committee, an individual may be given an election to surrender an award in
exchange for the grant of a new award. 
No employee may be granted options or stock appreciation rights under
the Plan for more than 200,000 shares of Common Stock in any calendar year.

 

6.                                      Option Grants.

 

(a)                                  Grant.  Each
option granted under the Plan shall be evidenced by a stock option agreement in
such form as the Committee shall prescribe from time to time in accordance with
the Plan.  With respect to each option
grant, the Committee shall determine the number of Shares subject to the
option, the option price, the period of the option, and the time or times at
which the option may be exercised and whether the option is an Incentive Stock
Option or a Nonstatutory Stock Option.

 

(b)                                 Incentive Stock Options. 
Incentive Stock Options granted under the Plan shall be subject to the
following terms and conditions:

 

(i)                                     No employee may be granted Incentive Stock
Options under the Plan such that the aggregate fair market value, on the date
of grant, of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by that employee during any calendar year under
the Plan and under any other incentive stock option plan (within the meaning of
Section 422 of the Code) of the Company or of any parent or subsidiary
corporation of the Company exceeds $100,000.

 

(ii)                                  An Incentive Stock Option may be granted
under the Plan to an employee possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company or of any parent
or subsidiary corporation of the Company only if the option price is at least
110 percent of the fair market value, as described in paragraph 6(b)(iv), of
the Shares subject to the option on the date it is granted, and the option by
its terms is not exercisable more than five years from the date of grant.

 

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(iii)                               Subject to paragraphs 6(b)(ii) and 6(d), Incentive Stock Options
granted under the Plan shall continue in effect for the period fixed by the
Committee, except that no Incentive Stock Option shall be exercisable more than
10 years from the date of grant.

 

(iv)                              The option price per Share shall be determined by the Committee at the
time of grant.  Subject to paragraph
6(b)(ii), the option price shall not be less than 100 percent of the fair
market value of the Shares covered by the Incentive Stock Option at the date
the option is granted.  The fair market
value shall be deemed to be the average of the closing bid and asked prices for
the Common Stock of the Company as reported on the National Association of
Securities Dealers, Inc. Automated Quotation System on the day preceding
the day the option is granted, or if there has been no sale on that date, on
the last preceding date on which a sale occurred, or such other reported value
of the Common Stock of the Company as shall be specified by the Committee.

 

(v)                                 The Committee may at any time without the
consent of the optionee convert an Incentive Stock Option into a Nonstatutory
Stock Option.

 

(c)                                  Nonstatutory Stock Options. 
Nonstatutory Stock Options shall be subject to the following additional
terms and conditions:

 

(i)                                     The option price for Nonstatutory Stock
Options shall be determined by the Committee at the time of grant.  The option price may not be less than
75 percent of the fair market value of the Shares covered by the
Nonstatutory Stock Option on the date of grant. 
The fair market value of the Shares covered by a Nonstatutory Stock
Option shall be determined pursuant to paragraph 6(b)(iv).

 

(ii)                                  Nonstatutory Stock Options granted under the
Plan shall continue in effect for the period fixed by the Committee.

 

(d)                                 Exercise of Options. 
Except as provided in paragraphs 6(e) and (f) or as determined
by the Committee, no option granted under the Plan may be exercised unless at
the time of such exercise the optionee is employed by or in the service of the
Company or any parent or subsidiary corporation of the Company and shall have
been so employed or have provided such service continuously since the date such
option was granted.  Absence on leave or
on account of illness or disability under rules established by the
Committee shall not, however, be deemed an interruption of employment for
purposes of the Plan.  Unless otherwise
determined by the Committee, vesting of options shall not continue during an
absence on leave (including an extended illness) or on account of
disability.  Except as provided in
paragraphs 6(f), 11 and 12, options granted under the Plan may vest and be
exercised from time to time over the period stated in each option in such
amounts and at such times as shall be prescribed by the Committee, provided that options shall not be
exercised for fractional shares.  Unless
otherwise determined by the Committee, if the optionee does not exercise an
option in any one year with respect to the full number of Shares to which the
optionee is entitled in that year, the optionee’s rights shall be cumulative
and the optionee may purchase those Shares in any subsequent year during the
term of the option.

 

(e)                                  Restrictions on Transfer.  Each
option granted under the Plan by its terms shall be nonassignable and
nontransferable by the optionee, either voluntarily or by operation of law,
except by will or by the laws of descent and distribution of the state or
country of the optionee’s domicile at the time of death, and each option by its
terms shall be exercisable during the optionee’s lifetime only by the optionee;
provided, however, that, with
the consent of the Committee, which consent may be withheld in its sole
discretion or conditioned on such requirements as the Committee shall deem
appropriate, an officer or director of the Company who is subject to Section 16(b) of
the Exchange Act may assign or transfer without consideration all or any
portion of a Nonstatutory Stock Option granted under the Plan to such officer’s
or director’s spouse (or former spouse) pursuant to a qualified domestic
relations order.  The holder of any
Nonstatutory Stock Option that has been transferred pursuant to this paragraph
6(e) may be subject to treatment under tax and securities laws with
respect to the transferred option which 

 

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differs from the treatment to which the
applicable officer or director was subject with respect to the option prior to
the transfer.

 

(f)                                    Termination of Employment or
Service.

 

(i)                                     In the event the employment or service of the
optionee by the Company or a parent or subsidiary corporation of the Company
terminates for any reason other than because of death or physical disability,
the option may be exercised at any time prior to the expiration date of the
option or the expiration of three months (one year in the case of officers and
two years in the case of directors) after the date of such termination,
whichever is the shorter period, but only if and to the extent the optionee was
entitled to exercise the option at the date of such termination.

 

(ii)                                  In the event of the termination of the
optionee’s employment or service with the Company or a parent or subsidiary
corporation of the Company because the optionee becomes disabled (within the
meaning of Section 22(e)(3) of the Code), the option may be exercised
at any time prior to the expiration date of the option or the expiration of
one year after the date of such termination, whichever is the shorter
period, but only if and to the extent the optionee was entitled to exercise the
option at the date of such termination.

 

(iii)                               In the event of the death of an optionee while employed by or providing
service to the Company or a parent or subsidiary corporation of the Company,
the option may be exercised at any time prior to the expiration date of the
option or the expiration of one year after the date of such death, whichever
is the shorter period, but only if and to the extent the optionee was entitled
to exercise the option on the date of death, and only by the person or persons
to whom such optionee’s rights under the option shall pass by the optionee’s
will or by the laws of descent and distribution of the state or country of
domicile at the time of death.

 

(iv)                              The Committee, at the time of grant or at any time thereafter, may
extend the three-month and one-year expiration periods any length of time not
later than the original expiration date of the option, and may increase the
portion of an option that is exercisable, subject to such terms and conditions
as the Committee may determine.

 

(v)                                 To the extent that the option of any deceased
optionee or of any optionee whose employment or service terminates is not
exercised within the applicable period, all further rights to purchase Shares
pursuant to such option shall cease and terminate.

 

(g)                                 Purchase of Shares. 
Unless the Committee determines otherwise, Shares may be acquired
pursuant to an option only upon receipt by the Company of notice in writing
from the optionee of the optionee’s intention to exercise, specifying the
number of Shares as to which the optionee desires to exercise the option and
the date on which the optionee desires to complete the transaction, and, if
required to comply with the Securities Act of 1933, as amended, or state
securities laws, the notice shall include a representation that it is the
optionee’s present intention to acquire the Shares for investment and not with
a view to distribution.  The certificates
representing the Shares shall bear any legends required by the Committee.  Unless the Committee determines otherwise, on
or before the date specified for completion of the purchase of Shares pursuant
to an option, the optionee must have paid the Company the full purchase price
of such Shares in cash (including, with the consent of the Committee, cash that
may be the proceeds of a loan from the Company), or, with the consent of the
Committee, in whole or in part, in Shares valued at fair market value, as
determined pursuant to paragraph 6(b)(iv). 
Unless the Committee determines otherwise, all payments made to the
Company in connection with the exercise of an option must be made by a certified
or cashier’s bank check or by the transfer of immediately available federal
funds.  No Shares shall be issued until
full payment therefor has been made. 
With the consent of the Committee, an optionee may request the Company
to apply automatically the Shares to be received upon the exercise of a portion
of a stock option (even though stock certificates have not yet been issued) to
satisfy the purchase price for additional portions of the option.  Each optionee who has exercised an option
shall immediately upon notification of the amount due, if any, pay to the
Company in cash amounts necessary to satisfy any applicable federal, state and
local tax withholding 

 

4

 

requirements. 
If additional withholding is or becomes required beyond any amount
deposited before delivery of the certificates, the optionee shall pay such
amount to the Company on demand.  If the
optionee fails to pay the amount demanded, the Company or any parent or
subsidiary corporation of the Company may withhold that amount from other
amounts payable to the optionee by the Company or the parent or subsidiary
corporation, including salary, subject to applicable law.  With the consent of the Committee, an
optionee may deliver Shares to the Company to satisfy the withholding
obligation.

 

7.                                      Stock Bonuses.  The
Committee may award Shares under the Plan as stock bonuses.  Shares awarded as a stock bonus shall be
subject to such terms, conditions, and restrictions as shall be determined by
the Committee, all of which shall be evidenced in a writing signed by the
recipient prior to receiving the bonus Shares. 
The Committee may not require the recipient to pay any monetary
consideration other than amounts necessary to satisfy tax withholding requirements.  The certificates representing the Shares
awarded shall bear any legends required by the Committee.  The Company may require any recipient of a
stock bonus to pay to the Company in cash upon demand amounts necessary to
satisfy any applicable federal, state or local tax withholding
requirements.  If the recipient fails to
pay the amount demanded, the Company or any parent or subsidiary corporation of
the Company may withhold that amount from other amounts payable to the
recipient by the Company or the parent or subsidiary corporation, including
salary, subject to applicable law.  With
the consent of the Committee, a recipient may deliver Shares to the Company to
satisfy the withholding obligation.

 

8.                                      Stock Sales.  The
Committee may issue Shares under the Plan for such consideration (including
promissory notes and services) as determined by the Committee, provided that in no event shall the
consideration be less than 75 percent of the fair market value of the Shares at
the time of issuance, determined pursuant to paragraph 6(b)(iv).  Shares issued under this paragraph 8
shall be subject to the terms, conditions and restrictions determined by the
Committee.  The restrictions may include
restrictions concerning transferability, repurchase by the Company and forfeiture
of the Shares issued, together with such other restrictions as may be
determined by the Committee.  The
certificates representing the Shares shall bear any legends required by the
Committee.  The Company may require any
purchaser of stock issued under this paragraph 8 to pay to the Company in
cash upon demand amounts necessary to satisfy any applicable federal, state or
local tax withholding requirements.  If
the purchaser fails to pay the amount demanded, the Company or any parent or
subsidiary corporation of the Company may withhold that amount from other
amounts payable to the purchaser by the Company or any parent or subsidiary
corporation, including salary, subject to applicable law.  With the consent of the Committee, a
purchaser may deliver Shares to the Company to satisfy the withholding
obligation.

 

9.                                      Stock Appreciation Rights.

 

(a)                                  Grant. 
Stock appreciation rights may be granted under the Plan by the
Committee, subject to such rules, terms, and conditions as the Committee
prescribes.

 

(b)                                 Exercise.

 

(i)                                     A stock appreciation right shall be
exercisable only at the time or times established by the Committee.  If a stock appreciation right is granted in
connection with an option, the stock appreciation right shall be exercisable
only to the extent and on the same conditions that the related option could be
exercised.  Upon exercise of a stock
appreciation right, any option or portion thereof to which the stock
appreciation right relates terminates. 
If a stock appreciation right is granted in connection with an option,
upon exercise of the option, the stock appreciation right or portion thereof to
which the option relates terminates.

 

(ii)                                  The Committee may withdraw any stock
appreciation right granted under the Plan at any time and may impose any
conditions upon the exercise of a stock appreciation right or adopt rules and
regulations from time to time affecting the rights of holders of stock
appreciation rights.  Such rules and
regulations may govern the right to exercise stock appreciation rights granted
before adoption or amendment of such rules and regulations as well as
stock appreciation rights granted thereafter.

 

5

 

(iii)                               Each stock appreciation right shall entitle the holder, upon exercise,
to receive from the Company in exchange therefor an amount equal in value to
the excess of the fair market value on the date of exercise of one Share over
its fair market value on the date of grant (or, in the case of a stock
appreciation right granted in connection with an option, the option price per
Share under the option to which the stock appreciation right relates),
multiplied by the number of Shares covered by the stock appreciation right or
the option, or portion thereof, that is surrendered.  No stock appreciation right shall be
exercisable at a time that the amount determined under this subparagraph is
negative.  Payment by the Company upon
exercise of a stock appreciation right may be made in Shares valued at fair
market value, in cash, or partly in Shares and partly in cash, all as
determined by the Committee.

 

(iv)                              For purposes of this paragraph 9, the fair market value of the
Shares shall be determined pursuant to paragraph 6(b)(iv), on the trading
day preceding the date the stock appreciation right is exercised.

 

(v)                                 No fractional Shares shall be issued upon
exercise of a stock appreciation right. 
In lieu thereof, cash may be paid in an amount equal to the value of the
fraction or, if the Committee shall determine, the number of Shares may be
rounded downward to the next whole Share.

 

(vi)                              Each participant who has exercised a stock appreciation right shall,
upon notification of the amount due, pay to the Company in cash amounts
necessary to satisfy any applicable federal, state or local tax withholding
requirements.  If the participant fails
to pay the amount demanded, the Company or any parent or subsidiary corporation
of the Company may withhold that amount from other amounts payable to the
participant by the Company or any parent or subsidiary corporation, including
salary, subject to applicable law.  With
the consent of the Committee, a participant may satisfy this obligation, in
whole or in part, by having the Company withhold from any Shares to be issued
upon the exercise that number of Shares that would satisfy the withholding
amount due or by delivering Shares to the Company to satisfy the withholding
amount.

 

(vii)                           Upon the exercise of a stock appreciation right for Shares, the number
of Shares reserved for issuance under the Plan shall be reduced by the number
of Shares issued.  Cash payments of stock
appreciation rights shall not reduce the number of Shares reserved for issuance
under the Plan.

 

10.                               Restricted Stock Unit Grants
to Non-Employee Directors.

 

(a)                                  Automatic RSU Grants.

 

(i) Immediately after the close of each annual
shareholder meeting (commencing with the 2005 annual meeting), each person then
serving as a Non-Employee Director, including any such person who is elected at
such meeting, shall be automatically granted 3,000 restricted stock units (a “RSU”).  A RSU represents the unsecured right to
require the Company to deliver to the grantee one Share for each RSU.  A “Non-Employee Director” is a director who
is not an employee of the Company or of any parent or subsidiary corporation of
the Company on the date a grant is made under this paragraph 10; and

 

(ii) Immediately prior to each annual shareholder
meeting (commencing with the 2006 annual meeting) each person then serving as a
Non-Employee Director shall automatically be granted a number of RSUs
determined by adding the following: 1,000 for each quarterly or annual meeting
of the Board of Directors attended since the prior annual meeting of
shareholders; 500 for each quarterly or annual meeting of a Board committee on which
such person serves attended since the prior annual meeting; 500 for attending
the prior annual meeting of shareholders; and 1,000 for each committee of the
Board of Directors for which a Non-Employee Director served as chairman since
the prior annual meeting of shareholders.

 

6

 

(b)                                 Vesting and Delivery Date.  The
RSUs granted under paragraph 10(a) shall initially be 100% unvested
and subject to forfeiture.  Subject to
paragraph 10(d), the RSUs shall vest with respect to half of the subject Shares
six months following the date of grant, with the remaining Shares to vest on
the first anniversary of the date of grant. 
The RSUs shall become vested on the vesting date only if the recipient
continues to be a director of the Company immediately after such vesting
date.  The delivery date for a RSU shall
be the date on which such RSU vests.

 

(c)                                  Changes in Capital
Structure.  The number of Shares deliverable with respect
to each RSU issued under Section 10(a) is subject to adjustment as
determined by the Board of Directors of the Company as to the number and kind
of shares of stock deliverable upon any merger, reorganization, consolidation,
recapitalization, stock split, combination of shares, stock dividend, spin-off
or other change in the corporate structure affecting the Shares generally.

 

(d)                                 Acceleration on Change in Control.  If there is a change in control of the
Company, all outstanding but unvested RSUs shall become immediately
vested.  The delivery date shall also
accelerate.  “Change in control” shall
mean a “Change in Control Event” as defined in IRS Notice 2005-1 or any
successor regulation.

 

(e)                                  Section 409A
Compliance.  Grants made under this Section 10 are
intended to comply with the provisions of Section 409A of the Code and
will be administered in a manner consistent with this intent, and, subject to
any restrictions imposed by applicable law and any rules of any stock
exchange or market on which the Company’s securities are listed, the Board of
Directors of the Company will have the right to amend this Section 10 and
grants made under it to comply with Section 409A of the Code (which
amendment may be retroactive to the extent permitted by Section 409A of
the Code and may be made by the Board of Directors of the Company without the
consent of the grantee).

 

11.                               Changes in Capital Structure.  If
the outstanding shares of Common Stock of the Company are hereafter increased
or decreased or changed into or exchanged for a different number or kind of
shares or other securities of the Company or of another corporation by reason
of any recapitalization, reclassification, stock split, combination of shares
or dividend payable in shares, the Committee shall make appropriate adjustments
(i) in the number and kind of shares available for awards under the Plan
and in all other share amounts set forth in the Plan; and (ii) in the
number and kind of shares as to which outstanding options and stock
appreciation rights, or portions thereof then unexercised, shall be exercisable,
so that the participant’s proportionate interest before and after the
occurrence of the event is maintained, provided
that this paragraph 11 shall not apply with respect to transactions
referred to in paragraph 12.  The
Committee may also require that any securities issued in respect of or
exchanged for Shares issued hereunder that are subject to restrictions be
subject to similar restrictions. 
Notwithstanding the foregoing, the Committee shall have no obligation to
effect any adjustment that would or might result in the issuance of fractional
shares, and any fractional shares resulting from any adjustment may be
disregarded or provided for in any manner determined by the Committee.  Any such adjustment made by the Committee
shall be conclusive.

 

12.                               Effect of Reorganization or
Liquidation.

 

(a)                                  Cash, Stock or Other Property for
Stock.  Except as provided in paragraph 12(b),
upon a merger, consolidation, reorganization, plan of exchange or liquidation
involving the Company, as a result of which the shareholders of the Company
receive cash, stock or other property in exchange for or in connection with
their Common Stock (any such transaction to be referred to in this
paragraph 12 as an “Accelerating Event”), any option or stock appreciation
right granted hereunder shall terminate, but the optionee shall have the right
during a 30-day period immediately prior to any such Accelerating Event
to exercise his or her option or stock appreciation right, in whole or in part,
without any limitation with respect to vesting or exercisability.

 

(b)                                 Stock for Stock.  If
the shareholders of the Company receive capital stock of another corporation (“Exchange
Stock”) in exchange for their Common Stock in any transaction involving a
merger, consolidation, reorganization, or plan of exchange, all options granted
hereunder shall be converted into options to purchase shares of Exchange Stock
and all stock appreciation rights granted hereunder shall be converted into
stock 

 

7

 

appreciation rights measured by the Exchange
Stock, unless the Committee, in its sole discretion, determines that any or all
such options or stock appreciation rights granted hereunder shall not be
converted, but instead shall terminate in accordance with the provisions of
paragraph 12(a).  The amount and
price of converted options and stock appreciation rights shall be determined by
adjusting the amount and price of the options or stock appreciation rights granted
hereunder to take into account the relative values of the Exchange Stock and
the Common Stock in the transaction.

 

(c)                                  The rights set forth in this
paragraph 12 shall be transferable only to the extent the related option
or stock appreciation right is transferable.

 

13.                               Corporate Mergers, Acquisitions,
Etc.  The Committee may also grant options, grant
stock appreciation rights, award stock bonuses and sell stock under the Plan
having terms, conditions and provisions that vary from those specified in the
Plan; provided that any such awards
are granted in substitution for, or in connection with the assumption of,
existing options, stock appreciation rights, stock bonuses and stock sold or
awarded by another corporation and assumed or otherwise agreed to be provided
for by the Company pursuant to or by reason of a transaction involving a
corporate merger, consolidation, acquisition of property or stock, separation,
reorganization or liquidation to which the Company or a parent or subsidiary
corporation of the Company is a party.

 

14.                               Amendment of Plan.  The
Board may at any time, and from time to time, modify or amend the Plan in such
respects as it shall deem advisable because of changes in the law while the
Plan is in effect or for any other reason. 
Except as provided in paragraphs 6(b)(v), 11, 12 and 13, however, no
change in an award already granted shall be made without the written consent of
the holder of such award.

 

15.                               Approvals.  The
obligations of the Company under the Plan are subject to the approval of state
and federal authorities or agencies with jurisdiction in the matter.  The Company shall not be obligated to issue
or deliver Shares under the Plan if such issuance or delivery would violate
applicable state or federal securities laws, or if compliance with such laws
would, in the opinion of the Company, be unduly burdensome or require the
disclosure of information which would not be in the Company’s best interests.

 

16.                               Employment and Service Rights. 
Nothing in the Plan or any award pursuant to the Plan shall (i) confer
upon any employee any right to be continued in the employment of the Company or
any parent or subsidiary corporation of the Company or shall interfere in any
way with the right of the Company or any parent or subsidiary corporation of
the Company by whom such employee is employed to terminate such employee’s
employment at any time, for any reason, with or without cause, or to increase
or decrease such employee’s compensation or benefits; or (ii) confer upon
any person engaged by the Company or any parent or subsidiary corporation of
the Company any right to be retained or employed by the Company or the parent
or subsidiary or to the continuation, extension, renewal, or modification of
any compensation, contract, or arrangement with or by the Company or the parent
or subsidiary.

 

17.                               Rights as a Shareholder.  The
recipient of any award under the Plan shall have no rights as a shareholder
with respect to any Shares until the date of issue to the recipient of a stock
certificate for such Shares.  Except as
otherwise expressly provided in the Plan, no adjustment shall be made for
dividends or other rights for which the record date is prior to the date such
stock certificate is issued.

 

	
  Amended:

  	
   

  	
  September 13,
  2001,

  
	
   

  	
   

  	
  March 13,
  2003,

  
	
   

  	
   

  	
  and
  April 26, 2005

  

 

8

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