Document:

Exhibit
10.45

 

WORLDWIDE
CORPORATE PURCHASE AGREEMENT-GOODS

 

KMG Electronic Chemicals, Inc.
(Supplier)

 

and

 

Intel Corporation (Buyer)

 

December 31, 2007

 

 

[***] indicates a deletion.

 

 

WORLDWIDE CORPORATE PURCHASE AGREEMENT-GOODS

TABLE OF CONTENTS

 

	
  1.

  	
  BASIC
  OBLIGATIONS OF THE PARTIES

  	
  1

  
	
  2.

  	
  ADDENDA
  INCORPORATED INTO THIS AGREEMENT

  	
  2

  
	
  3.

  	
  DEFINITIONS

  	
  2

  
	
  4.

  	
  TERM
  OF AGREEMENT

  	
  3

  
	
  5.

  	
  PRICING-GENERAL

  	
  4

  
	
  6.

  	
  CURRENCY

  	
  5

  
	
  7.

  	
  ORDER
  PLACEMENT PROCEDURE AND PRODUCT/GROUP SPECIFIC REQUIREMENTS

  	
  5

  
	
  8.

  	
  INVOICING
  AND PAYMENT

  	
  5

  
	
  9.

  	
  MINIMUM
  PURCHASE; TERMINATION FOR CONVENIENCE

  	
  6

  
	
  10.

  	
  DELIVERY,
  RELEASES. AND SCHEDULING

  	
  6

  
	
  11.

  	
  INSPECTION,
  WARRANTY AND ACCEPTANCE

  	
  7

  
	
  12.

  	
  PRODUCT
  SPECIFICATIONS/IDENTIFICATION/ERRATA

  	
  8

  
	
  13.

  	
  PACKING
  AND SHIPMENT

  	
  9

  
	
  14.

  	
  OWNERSHIP
  AND BAILMENT RESPONSIBILITIES

  	
  10

  
	
  15.

  	
  CONTINGENCIES

  	
  10

  
	
  16.

  	
  CONFIDENTIALITY
  AND PUBLICITY

  	
  10

  
	
  17.

  	
  REMEDIES
  AND LIMITATION OF LIABILITY

  	
  11

  
	
  18.

  	
  INTELLECTUAL
  PROPERTY INDEMNIFICATION

  	
  12

  
	
  19.

  	
  HAZARDOUS
  MATERIALS

  	
  13

  
	
  20.

  	
  CUSTOMS
  CLEARANCE

  	
  14

  
	
  21.

  	
  COMPLIANCE
  WITH LAWS AND RULES

  	
  14

  
	
  22.

  	
  RETENTION

  	
  14

  
	
  23.

  	
  SUPPLYLINE
  PROTECTION

  	
  16

  
	
  24.

  	
  BUSINESS
  CONTINUITY

  	
  15

  
	
  25.

  	
  NEW
  DEVELOPMENTS

  	
  15

  
	
  26.

  	
  ELECTRONIC
  TRANSACTIONS

  	
  15

  
	
  27.

  	
  PRIVACY

  	
  16

  
	
  28.

  	
  DATA
  SECURITY REQUIREMENTS

  	
  17

  
	
  29.

  	
  NOTICES

  	
  18

  
	
  30.

  	
  DISPUTE
  RESOLUTION

  	
  18

  
	
  31.

  	
  SPECIFIC
  PERFORMANCE

  	
  21

  
	
  32.

  	
  MERGER,
  MODIFICATION, WAIVER AND REMEDIES

  	
  18

  
	
  33.

  	
  ASSIGNMENT

  	
  19

  
	
  34.

  	
  APPLICABLE
  LAW

  	
  19

  
	
  35.

  	
  HEADINGS

  	
  19

  
	
  36.

  	
  SURVIVAL

  	
  19

  
	
  ADDENDUM
  A PRODUCT DESCRIPTION, PRICE SCHEDULE

  	
  23

  
	
  ADDENDUM
  B PERFORMANCESTANDARDS/QUALITY REQUIREMENTS

  	
  24

  
	
  ADDENDUM
  C CGO SUPPLEMENTAL PROVISIONS

  	
  25

  
	
  ADDENDUM
  D PROTECTION OF INTEL’S ASSETS

  	
  31

  
	
  ADDENDUM
  E ASSIGNMENT OF INTELLECTUAL PROPERTY

  	
  32

  
	
  ADDENDUM
  F CAPACITY UPSIDE

  	
  33

  

 

 

WORLDWIDE CORPORATE PURCHASE AGREEMENT-GOODS

 

	
   

  	
  Agreement #:

  	
   

  
	
   

  	
  Effective Date:

  	
  December 31, 2007

  
	
   

  	
  Expiration Date:

  	
  December 30, 2010

  
	
   

  	
  CNDA #:

  	
  3766614

  

 

This
WORLDWIDE CORPORATE PURCHASE AGREEMENT — GOODS (“Agreement”),
made and entered into as of the 31st  day of
December, 2007, by and between KMG Electronic Chemicals, Inc., 9555 W. Sam
Houston Parkway S., Suite 600,
Houston, TX 77099, acting for itself and on behalf of those
subsidiaries and Controlled Affiliates offering goods within the scope of this
Agreement (collectively “KMG” or “Supplier”),  a
corporation organized and existing under the laws of the State of Texas, and
Intel Corporation, a corporation organized and existing under the laws of the
State of Delaware, USA acting on behalf of its subsidiaries and Controlled
Affiliates (collectively “Intel” or “Buyer”). 
Buyer shall assure that Subsidiaries and Controlled Affiliated or sister
entities abide by the terms and conditions of this Agreement.  The term “Party” or “Parties” as used in this
Agreement refer to the signatories in their individual or collective
capacities, respectively.

 

RECITALS

 

Supplier
provides a variety of goods to Buyer and Buyer purchases such goods on a
worldwide basis from geographically diverse locations.  Each Party maintains procurement and
manufacturing facilities in various geographies to support its business
needs.  In order to facilitate the
business relationship and the on-going sale and purchase of goods, it is the
Parties’ intent to enter into this Agreement which will define key terms and
conditions which will govern the majority of contractual relationships between the
Parties while allowing Buyer and Supplier sites to define the details of
specific procurement activities. 
Further, it is the intent of the Parties to simplify the administration
of contractual obligations and to foster an improved working relationship;

 

NOW THEREFORE, in consideration of the mutual covenants
and promises contained herein, and intending to be legally bound hereby, Buyer
and Supplier agree as follows:

 

AGREEMENT

 

1.             BASIC
OBLIGATIONS OF THE PARTIES

 

Buyer
may purchase and Supplier shall sell the goods pursuant to applicable prices,
terms and conditions defined infra and specific Addenda.  All Purchase Orders  issued
to Supplier by Buyer during the term of this Agreement shall be governed only
by the Terms and Conditions of this Agreement (as supplemented by the terms and
conditions of the Addenda) without requirement of any specific reference hereto
in an Intel Purchase Order, and notwithstanding any preprinted terms and
conditions on Supplier’s acknowledgment or Buyer’s Purchase Order or terms
required generally for bidders in electronic “Internet Negotiations” offered by
Buyer.  Certain purchasing activities may
occur between the subsidiary entities of Buyer for consumption by such legal
entity, and such purchases may be in the name of the local Buyer and Supplier
legal entities.  Any additional or
different terms in Supplier’s documents are hereby deemed to be material
alterations and notice of objection to and rejection of them is hereby
given.  In the event 

 

1

 

of
any conflict or inconsistency between the terms and conditions set forth herein
and those of set forth on any Addenda to this Agreement, the Addenda shall
control to the extent the conflict is specific to the subject matter of the
Addenda.  Any conflict or inconsistency
between the negotiated terms set forth on the face (but not the preprinted
terms on the reverse side) of any Buyer’s Purchase Order accepted by Supplier
and the terms of any Addenda shall be governed by the terms set forth on such
Purchase Order.

 

2.             ADDENDA
INCORPORATED INTO THIS AGREEMENT

 

As of the Effective Date of
this Agreement, the following addenda are incorporated into this Agreement and
shall be read as an integral part thereof.

 

Addendum
A            Product
Description, Price Schedule

Addendum B            Performance
Standards/Quality Requirements

Addendum C            CGO
Supplemental Provisions

Addendum D            Protection of
Intel’s Assets

Addendum E             Assignment of
Intellectual Property

Addendum F             Capacity Upside

 

3.             DEFINITIONS

 

A.            “Acceptance
Date” means the date on which Buyer accepts an Item or Service provided by
Supplier in accordance with an Addendum A.

 

B.            “Consignment” means those consumable
items owned by the Supplier that are held off-site by Supplier to help ensure
that delivery requirements are met.

 

C.            “Controlled
Affiliate” means an entity that is controlled (through the exercise of majority
voting power at the board and shareholder level), directly or indirectly, by
the ultimate parent of a contracting Party.

 

D.            [***]

 

E.             “Errata” means
deviation from Specification with regard to manufacturing, packaging, labeling
processes and or raw material changes.

 

F.             “Hazardous
Materials” are or contain dangerous goods, chemicals, contaminants, substances,
pollutants, or any other materials that are defined as hazardous by relevant
local, state, provincial, national, or international law, regulations, and
standards.

 

G.            “Interrupt”
means any event which detrimentally affects the output of an Intel tool or
product quality.

 

H.            “Items” means the
goods that Supplier is to make available for sale to Buyer as set forth on the
applicable Addendum A.  Items may include
but not be limited to chemicals that are transported, stored, dip tubed and
delivered by Supplier or otherwise provided hereunder or either singly or
collectively, as the context indicates, or other goods or materials which
Supplier agrees to sell to Buyer under this Agreement.

 

2

 

I.              “Purchase
Agreement” means an agreement between Buyer or a Controlled Affiliate of Buyer
and Supplier or a Controlled Affiliate of Supplier pertaining to the purchase
and sale of Items and/or the performance of Services falling within the scope
of the Addenda incorporated into this Agreement from time to time.

 

J.             “Purchase Order”
is Buyer’s document setting forth specific Services to be rendered and/or
specific Items ordered, and Release information.

 

K.            “Release” means
Buyer’s authorization for Supplier to provide the Services and to ship a
definite quantity of Items in accordance with a specified schedule.  The Release is contained in the Purchase
Order sent to Supplier.

 

L.             “Service(s)”
means the work to be performed by Supplier if any as set forth in the
applicable Addendum “A” in compliance with the Specifications of the applicable
Addenda.

 

M.           “Specification” means the
agreed technical definition, and/or performance parameters, Performance
Standards, or purchase specification of Items and service level agreement, as
applicable for Services as set forth in the
applicable specification addenda to Addendum A for each Item or Service
purchased or to be purchased pursuant to this Agreement.

 

4.             TERM OF
AGREEMENT

 

A.          The term of
this Agreement shall begin on the Effective Date and continue to the Expiration
Date.  Buyer shall provide notice of its
desire to extend this Agreement ninety (90) days prior to the then current
Expiration Date of this Agreement. 
During such ninety (90) day period Buyer and Seller agree to negotiate,
in good faith, the terms and conditions (including but not limited to pricing)
of any such extension, and such extension shall be effective upon Buyer and
Supplier agreeing thereon.  [***]

 

B.          [***]

 

3

 

5.             PRICING -
GENERAL

 

A.            For Items purchased by Buyer, Supplier
will provide to Buyer a dated, electronic file of such Items, their part
number, description, list price if applicable, negotiated discount, the current
negotiated price, and warranty period. 
These price files will be set forth in the applicable Addendum A.  All quotes and invoices from Supplier shall
be developed using part numbers and negotiated or published list prices set
forth in the applicable Addendum A.

 

B.            [***]

 

C.            [***]

 

D.            Buyer may
return, at Buyer’s expense and with prior written approval from Supplier, [***]
in unopened, original, individual Item packaging for a credit against any
outstanding or future Supplier invoices.

 

E.             All applicable
taxes, including but not limited to sales/use taxes, transaction privilege
taxes, gross receipts taxes, and other charges such as duties, customs,
tariffs, imposts, and government imposed surcharges shall be stated separately
on Supplier’s invoice.  Supplier shall
remit all such charges to the appropriate tax authority unless Buyer provides
sufficient proof of tax exemption. In the event that Buyer is prohibited by law
from making payments to Supplier unless Buyer deducts or withholds taxes
therefrom and remits such taxes to the local taxing jurisdiction, then Buyer
shall duly withhold such taxes and shall pay to Supplier the remaining net
amount after the taxes have been withheld. 
Buyer shall not reimburse Supplier for the amount of such taxes
withheld. When property is delivered and/or services are provided or the
benefit of services occurs within jurisdictions in which Supplier collection
and remittance of taxes is required by law, Supplier shall have sole
responsibility for payment of said taxes to the appropriate tax
authorities.  In the event Supplier does
not collect tax from Buyer, and is subsequently audited by any tax authority,
liability of Buyer will be limited to the tax assessment, with no reimbursement
for penalty or interest charges.  Each
Party is responsible for its own respective income taxes or taxes based upon
gross revenues, including but not limited to business and occupation taxes.

 

F.             Additional costs, except those described on Addendum
A, will not be reimbursed without Buyer’s prior written approval.

 

G.            Buyer reserves the right to have Supplier’s records
inspected and audited to ensure compliance with this Agreement.  [***]

 

H.            If an Item not
included in Addendum A is to be purchased by Buyer, its price will be
negotiated by a corporate representative at the time of initial purchase.  If the Item is for test purposes only at a
given site, its price may be established between Supplier and the Buyer’s site
purchasing staff.  Such price shall be in

 

4

 

effect
only until a corporation-wide price is negotiated between Supplier and Buyer
for the Buyer part number assigned to such Item.

 

I.              Within sixty (60) days of the end of each calendar
quarter during the term of this Agreement, Supplier shall deliver comprehensive
and accurate quarterly updates of the applicable Addendum A and reports of
quarterly sales to Buyer. Each such quarterly update shall include a list of
all Items delivered to Buyer during the subject quarter which are not listed in
Addendum A or identified in previous quarterly updates, the price of each such Item,
the Supplier part numbers of each such Item, the Intel part number of each
such Item, and any other changes to the applicable Addendum A.

 

J.             [***]

 

K.            Except where
otherwise noted, the prices to be charged under this Agreement are inclusive of
any and all containers (both returnable and disposable), diptubes, diptube
exchange and all necessary accessories for each Item.

 

L.             Warehousing
costs are not included in the prices to be charged under this Agreement, except
where noted in Addendum A to the contrary.

 

6.             CURRENCY

 

Prices for Items will be
stated in U.S. dollars regardless of an Item’s country of origin or
destination. Buyer reserves the right to use U.S. dollars or alternatively the
currency of the country to which the Items are provided as the currency of
exchange in any purchase under this Agreement from Supplier or any subsidiary
of Supplier.  On a site-specific basis,
Buyer will select U.S. dollars or local currency as currency of exchange and
will maintain that currency as currency of exchange for the term of this
Agreement or until change is mutually agreed to by Buyer and Supplier.

 

7.             ORDER
PLACEMENT PROCEDURE AND PRODUCT/GROUP SPECIFIC REQUIREMENTS

 

Due to the diverse nature of the products
purchased under this Agreement and the different ordering locations, the
Parties may agree to specific order placement procedures.  Depending upon the buying and selling
entities and the products procured, specific provisions regarding order
placement may be set forth on the applicable Addendum A.  All purchases by Buyer must be accompanied by
a valid Purchase Order issued by Buyer’s Purchasing organization.

 

8.             INVOICING
AND PAYMENT

 

A.            [***]

 

B.            Original
invoices or packing lists shall be submitted and shall include:  Purchase Agreement number from the Purchase
Order, Purchase Order number, line item number, Release number, part number,
complete bill to address, description of Items, quantities, unit price,
extended totals, and any applicable tax or other charges.  All costs forwarded to Buyer for reimbursement
of expenses agreed 

 

5

 

under
the terms of this Agreement shall be net of any reclaimable Value Added Taxes (“VAT”)
incurred on such expenses.  Buyer’s
payment shall not constitute acceptance.

 

C.            Supplier shall
be responsible for and shall hold Buyer harmless for any and all payments to
its vendors or subcontractors utilized in the performance of Services.

 

D.            Supplier agrees
to invoice Buyer no later than [***] days after completion of Services or shipment
of Items.  Buyer will not be obligated to
make payment against any invoices first submitted after such period.

 

9.             MINIMUM
PURCHASE; TERMINATION FOR CONVENIENCE

 

A.            [***]

 

B.            [***]

 

C.            [***], Buyer
may terminate any Purchase Order or Release issued under this Agreement, or any
part thereof, at any time for its sole convenience by giving [***] days notice
of termination to Supplier.  Upon
Supplier’s receipt of such notice, Supplier shall, unless otherwise specified
in such notice, immediately stop all work hereunder, give prompt notice to, and
cause all of its suppliers or subcontractors to cease all related work, and,
upon Buyer’s request, return all materials provided to Supplier by Buyer under
this Agreement.

 

D.            [***]

 

E.             [***]

 

F.             [***]

 

G.            Notwithstanding
anything else in this Agreement, failure to meet the delivery date(s) in
the Purchase Order shall allow Buyer to terminate the order for the Item and/or
any subsequent Releases in the Purchase Order without any liability whether the
Purchase Order was for standard or Custom Items.

 

10.          DELIVERY,
RELEASES, AND SCHEDULING

 

A.            Any forecasts
provided by Buyer are for planning purposes only and do not constitute a
Release or other commitment by Buyer.

 

B.            Supplier shall
notify Buyer within forty eight (48) hours of receipt of Buyer’s Purchase Order
if Supplier is unable to make any scheduled delivery and shall state the
reasons therefor.

 

C.            On time
delivery by Supplier is a key expectation of this Agreement.  Supplier shall deliver Items per the Release
schedule and Buyer may return non-conforming shipments at Supplier’s risk and
expense.

 

6

 

D.                                    Buyer may reschedule any Release in whole or
in part up to ten (10) days prior to the Release date at no additional
charge, provided however that the rescheduled Release date is no more than
thirty (30) days later than the original Release date.

 

E.                                      Buyer may place any portion of a Release on
hold by notice that shall take effect immediately upon receipt.  Releases placed on hold will be rescheduled,
or terminated in accordance with Section 9, within a reasonable time.  If placing a Release on hold will cause
Supplier to incur additional storage and handling costs, Buyer and Supplier
shall mutually agree on storage and handling solution and any costs to be
reimbursed.

 

F.                                      Buyer shall have no obligation with respect
to the purchase of Items under this Agreement until such Items are specified in
an issued Purchase Order that contains specific Release dates for specific
Items.

 

G.                                     If for any reason Supplier discontinues the
manufacture of any Item during the term of this Agreement, Supplier shall for
Items that are currently being purchased, or have been purchased, give Buyer
notice [***].  If any warranty return
claims are made for such discontinued Items, then such returns will be subject
to the warranty provisions in Section 11.

 

H.                                    Supplier shall provide a Certificate of
Analysis (C of A) or sample for each lot to be shipped, as directed in the most
current appropriate Specification.

 

I.                                         Supplier shall maintain a safety stock on
such Items as Buyer’s local sites may identify, [***].

 

J.                                        Supplier will store Items at Supplier’s local
warehouse or Buyer’s designated warehouse. 
However, if Supplier’s local warehouse does not meet the reasonable
expectations of Buyer, Buyer reserves the right to request an alternate
warehouse.

 

11.                               INSPECTION, WARRANTY AND ACCEPTANCE

 

A.                                   Buyer may inspect and test, at Buyer’s
expense, all Items at reasonable times before, during, and after
manufacture.  If any inspection or test
is made on Supplier’s premises, Supplier shall provide reasonable facilities
and assistance for the safety and convenience of Buyer’s inspectors in such
manner as shall not unreasonably hinder or delay Supplier’s performance.  All Items shall be received subject to Buyer’s
inspection, testing, approval, and acceptance at Buyer’s premises
notwithstanding any inspection or testing at Supplier’s premises or any prior
payment for such Items.  In the event of
any shortage, damage or discrepancy in or to a shipment of Items, Buyer shall
promptly report such shortage, damage or discrepancy and furnish reasonable documentation
thereof.  Supplier shall not be
responsible for any shortage, damage or discrepancy unless Buyer provides
notice thereof within thirty (30) days of Buyer’s receipt of such Items.  If Supplier receives such notice and is
responsible for the shortage, damage or discrepancy, such Items may be returned
to Supplier at Supplier’s 

 

7

 

risk and expense and, at Buyer’s request, shall be
replaced by Supplier within normal lead-times for the Item.

 

B.                                     Supplier makes the following warranties
regarding Items and Services furnished hereunder, which warranties shall
survive any delivery, inspection, acceptance, payment, or resale of the Items:

 

1.                                       Items will not infringe any Party’s
intellectual property rights;

2.                                       Supplier has the necessary right, title, and
interest to provide said Items and Services to Buyer, and the Items will be
free of liens and encumbrances;

3.                                       With the exception of used Items purchased by
Buyer, Items are new, and of the grade and quality specified;

4.                                       Items are free from defects in workmanship
and material, conform to all samples, drawings, descriptions, and
Specifications furnished or published by Supplier and to any other agreed
Specifications; and

5.                                       Items shall conform to the manufacturing
quality provisions set forth in Addendum B.

 

C.                                     THE FOREGOING WARRANTIES SET FORTH IN
PARAGRAPH B OF THIS SECTION 11 ARE THE SOLE WARRANTIES HEREUNDER, AND SUCH
WARRANTIES ARE GIVEN IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, IN
FACT OR BY LAW, OR ARISING BY REASON OF CUSTOM OR USAGE IN THE TRADE OR BY
COURSE OF DEALING, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING,
ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

D.                                    For Items which do not conform to the
forgoing warranties set forth in paragraph B of this
Section 11, during a period of [***] after Buyer’s acceptance of Items, or
until the expiration of the shelf life (as defined by Supplier’s published
data) of the non-conforming Items, whichever is earlier, Buyer may require
Supplier, at Buyer’s option, to promptly repair, replace, or refund the amount
paid for any non-conforming Items.  Buyer
shall hold any unused Items found to be non-conforming for return to Supplier,
and Supplier shall bear the cost of shipping and shall bear the risk of loss
for all non-conforming Items while in transit.

 

E.                                      FOR ITEMS WHICH HAVE NOT BEEN USED BY BUYER
AND WHICH ARE FOUND TO BE NON-CONFORMING, THE SOLE AND EXCLUSIVE REMEDY FOR
BREACH OF ANY AND ALL WARRANTIES, SHALL BE LIMITED TO THE REMEDIES PROVIDED IN
PARGRAPH D OF THIS SECTION 11.

 

12.                               PRODUCT
SPECIFICATIONS/IDENTIFICATION/ERRATA

 

A.                                   [***]

 

B.                                     Supplier shall
cooperate with Buyer to provide configuration control and traceability systems
for Items supplied hereunder. Supplier shall provide Buyer 

 

8

 

with an Errata list for
each Item and shall promptly notify Buyer of any new Errata with respect to the
Items.

 

C.                                     Supplier will only
provide Items manufactured in a qualified facility.  Buyer will make all commercially reasonable
efforts to qualify Supplier facilities upon written request from Supplier
summarizing need to do so.

 

D.                                    Supplier agrees to notify Buyer of any known
or reported issues, whether from Supplier’s internal testing or from Supplier’s
other customers, with Items purchased by Buyer for use in Buyer’s manufacturing
process.  Supplier will provide Buyer
with the information (e.g., potentially affected Items, impact to
manufacturing, etc.) necessary to avoid or minimize any potential impact to
Buyer.  Supplier shall also provide Buyer
with a detailed explanation of the cause(s) of the issue, corrective
actions undertaken by Supplier and Supplier’s planned action to prevent any
reoccurrence.

 

13.                               PACKING AND
SHIPMENT

 

A.                                   All Items shall be prepared for shipment in a
manner that: (i) follow good commercial practice; (ii) is acceptable
to common carriers for shipment at the lowest rate; and (iii) is adequate
to ensure safe arrival.  Supplier shall
mark all containers with necessary lifting, handling, unpacking and shipping
information, Purchase Order number, date of shipment, and the names of the
Buyer and Supplier.  Buyer shall notify
Supplier of the method of shipment and expected delivery date.  If no instructions are given, Supplier shall
select the most cost effective carrier, given the time constraints known to
Supplier.   Supplier shall ship only the
quantity of Items specified in the Release. 
Buyer may return at Supplier’s expense any Items in excess of the
quantity stated in the Release.  If
Supplier misses a commitment to lead-time, Supplier will pay overnight freight
charges to get Items expedited to the Buyer and Buyer shall not be billed for
higher freight costs.  Supplier may
choose premium carrier at its discretion.

 

B.                                     As directed by Buyer, freight shall be either
managed by Supplier or Buyer in accordance with the following terms and
conditions:

 

[***]

 

C.                                     Hazardous Materials Freight: Notwithstanding
anything contained in Section 13.B. to the contrary, all Items that are
Hazardous Materials and are regulated in transportation shall be shipped [***].

 

D.                                    [***]

 

E.                                      [***]

 

F.                                      If Buyer must deploy emergency, safety, or
materials personnel in response to an emergency or incident of non-compliance
with Suppler or regulatory procedure involving Items supplied hereunder, the
Parties agree that they shall review the facts of the incident(s) promptly
and in good faith to determine (1) whether the deployment was necessary,
and (2) whether the proximate cause of 

 

9

 

such
emergency or non-compliance was Supplier’s acts or failures to act.  If the Parties answer the above questions in
the affirmative, then Supplier shall reimburse Buyer for reasonable and actual
costs incurred by Buyer in deploying personnel. 
This provision does not limit any other rights or remedies Buyer may
have.

 

14.                               OWNERSHIP
AND BAILMENT RESPONSIBILITIES

 

Any specifications, drawings, schematics, technical information, data,
tools, dies, patterns, masks, gauges, test equipment, and other materials owned
by Buyer and furnished to Supplier or otherwise in Supplier’s possession shall:
(i) be kept confidential; (ii) remain Buyer’s property; (iii) be
used by Supplier exclusively for Buyer’s orders; (iv) be clearly marked as
Buyer’s property and segregated when not in use; (v) be kept in good
working condition at Supplier’s expense; and (vi) be shipped to Buyer
promptly on demand or upon termination or expiration of this Agreement,
whichever occurs first, at Buyer’s expense. 
Any such property furnished by Buyer to Supplier that is marked or
otherwise noted by Buyer as being confidential information will be treated by
Supplier in accordance with Section 16 of the Agreement.  Supplier shall be liable for any loss of or
damage to Buyer’s property while in Supplier’s possession or control, ordinary
wear and tear excepted.   Supplier shall
take all necessary steps and carry out all notice formalities or registrations
as may be applicable under the laws of Supplier’s country to ensure that it is
recorded as Buyer’s property.

 

15.                               CONTINGENCIES

 

A.                                   Neither Party shall be responsible for any
delay or failure, in whole or in part, to perform under this Agreement,
including but not limited to Supplier’s obligation to deliver Items, to the
extent that such delay or failure is due to causes beyond such Party’s
reasonable control, including but not limited to acts of State or governmental
action or inaction, riots, civil disturbance, war, strikes, lockouts, shortages
of energy, failure of normal source of supply, destruction of production or
warehouse facilities by fire, explosion, earthquake, storm.  If delivery of Items is to be delayed by such
contingencies, Supplier shall immediately notify Buyer and Buyer may either: (i) extend
time of performance; or (ii) terminate all or part of the uncompleted
portion of the Purchase Order at no cost to Buyer.

 

B.                                     [***]

 

C.                                     Nothing in this section will be construed to
limit Supplier’s right to seek additional compensation or surcharges to cover
any increase in Supplier’s costs associated with a contingency event.

 

16.                               CONFIDENTIALITY
AND PUBLICITY

 

A.                                   During the course of this Agreement, either
Party may have or may be provided access to the other’s confidential
information and materials.  Each Party
agrees to maintain such information in accordance with the terms of this
Agreement and the CNDA referenced herein and any other applicable separate
nondisclosure agreement between Buyer and Supplier.  Additionally, in the event Supplier is
engaged to develop new information for Buyer, the Buyer and Supplier will agree

 

10

 

in
writing in advance as to the ownership of such information.  Supplier’s employees who access Buyer’s
facilities may be required to sign a separate access agreement prior to
admittance to Buyer’s facilities. 
Furthermore, Supplier will furnish a copy of Addendum D to each of its
employees, agents and subcontractors assigned to or contracted for Buyer work
and will take reasonable steps to assure Buyer that all such employees, agents
and subcontractors have read and understood Addendum D.  Supplier shall not use any of the
confidential information created for Buyer other than for Buyer. Nothing
contained herein shall be construed as granting or implying any right or
license under any intellectual property right of the other party.

 

B.                                     The Parties agree that the existence of
this Agreement and its terms shall constitute “Confidential Information” within
the meaning of the CNDA.  If disclosure
of this Agreement or any of the terms hereof is required by applicable law,
rule, or regulation, or is compelled by a court or governmental agency,
authority, or body, such as annual reports or S1 Filings:  (i) the Parties shall use reasonable
efforts to limit the disclosure to third parties of the content of the
Agreement, including without limitation seeking a confidential treatment
request or protective order; (ii) the Party compelled to make disclosure
shall give reasonable notice in advance of the disclosure; and (iii) the
Party compelled to make disclosure shall give the other Party a reasonable
opportunity to review and comment upon the disclosure, and any request for
confidential treatment or a protective order pertaining thereto, prior to
making such disclosure.  The Parties may
disclose this Agreement in confidence to their respective legal counsel,
accountants, bankers, and financing sources as necessary in connection with
obtaining services from such third parties.

 

C.                                     Neither Party may use the other Party’s
name or trademarks in any type of advertisement materials, web sites, articles,
brochures, business cards, banners, letterhead, without the other’s written
consent. For Intel, this would be the Director of Corporate Purchasing and/or
the Vice President of Materials.

 

D.                                    The obligations stated in this Section shall
survive the expiration or termination of this Agreement.

 

17.                               REMEDIES AND LIMITATION OF
LIABILITY

 

A.                                   Supplier
agrees to protect, defend, indemnify and hold Buyer harmless from and against
any and all claims, liabilities, demands, penalties, forfeitures, suits,
judgments and the associated costs and expenses (including reasonable attorney’s
fees), which Buyer may hereafter incur, become responsible for or pay out as a
result of death or personal injury (including bodily injury) to any person,
destruction or damage to property, contamination of or adverse effects on the
environment and any clean up costs in connection therewith, or any violation of
governmental law, or regulation, to the extent caused by: (a) Supplier’s
breach of any term or provision of this Agreement (other than any term or
provision for which a remedy is already provided for herein); or (b) any
negligent acts, errors or omissions or intentional torts by Supplier, its
employees, officers, agents, representatives or sub-contractors in the
performance of this Agreement; 

 

11

 

provided, however, that
Supplier’s liability to Buyer for 
destruction or damage to Buyer’s property or otherwise shall be limited
to[***].

 

B.                                     NOTWITHSTANDING
ANYTHING HEREIN TO THE CONTRARY (OTHER THAN SECTION 18 BELOW), UNDER NO
CIRCUMSTANCES SHALL SUPPLIER BE LIABLE TO BUYER FOR [***].

 

C.                                     The
limitations set forth in this Section 17 shall not limit Supplier’s
liability to third parties for death or personal injury (including bodily
injury).

 

D.                                    Nothing
in this Section shall limit Supplier’s obligation to indemnify Buyer for
Intellectual Property infringement as set forth in Section 18.

 

E.                                      [***]

 

F.                                      [***]

 

G.                                     Buyer’s sole and exclusive remedies for
non-delivery of Items, including non-delivery of substitute Items for shipments
for which there was a shortage, damage or discrepancy or non-delivery of Items
to replace non-conforming Items, shall be

 

1.                                       relief from its obligation to pay the
purchase price for the quantity of Items not delivered; and/or

2.                                       the cost of “cover” as defined in the Uniform
Commercial Code.  Supplier shall
reimburse Buyer the cost of cover if Buyer requires substitute Items from
another supplier due to Supplier’s failure to deliver Items to agreed
schedules; provided however, that Supplier has been given a reasonable
opportunity to procure such substitute Items via its own channels within a time
frame acceptable to Buyer.

 

H.                                    [***]

 

18.                               INTELLECTUAL PROPERTY
INDEMNIFICATION:

 

A.                                   Supplier shall indemnify and hold Buyer and
its customers harmless from any costs, expenses (including reasonable attorneys’
fees), losses, damages, or liabilities finally awarded by a court of competent
jurisdiction, or in its sole judgment settled, because of any claim of
infringement of any third party patent, copyright, trade secret, trademark,
mask work, or other intellectual property right arising out of the proper use
or sale by Buyer of Items, except as otherwise provided in this paragraph.
Buyer shall promptly notify Supplier in writing of such claim or demand with
sufficient specificity to allow Supplier to adequately respond to such claim or
demand and shall permit Supplier to solely conduct the defense or settlement
thereof.  Buyer shall provide all
assistance reasonably requested by Supplier or Supplier’s counsel.  Buyer may retain advisory counsel at its sole
expense to participate fully in any such matter.  If any settlement of such claim or demand
requires Buyer to incur any monetary obligation or admits liability on Buyer’s
behalf, then Supplier shall not accept any such settlement without Buyer’s
consent.  If an injunction issues as a
result of any claim or 

 

12

 

action,
Supplier agrees at its expense and its sole option to do one of the
following:  (i) procure for Buyer
the right to continue using Items; (ii) replace Items with non-infringing
items; (iii) modify Items so they become non-infringing; or (iv) refund
to Buyer the amount paid for any Items returned to Supplier or destroyed in
accordance with Supplier’s written requests. 
Regardless of which of the foregoing remedies is chosen by Supplier,
Supplier shall pay to Buyer incremental costs incurred by Buyer to procure
alternative products that are comparable in quality and specifications as
compared to the replaced Items, provided that such alternative products are
required to fill orders for Items that were placed by Buyer and accepted by
Supplier as of the effective date of the injunction. This indemnification shall
not apply to the extent Items are manufactured to Buyer’s specifications and
such infringement would not have occurred but for Supplier’s compliance with
such specifications.  This
indemnification shall not apply to the extent the Item is combined with other
items or transformed by Buyer or a third party and such infringement would not
have occurred but for the combination and/or transformation, or the combination/transformation
of the Item was proposed or suggested to Buyer by Supplier in writing.

 

B.                                     [***]

 

C.                                     The foregoing states the entire set of
obligations and remedies flowing between Buyer and Supplier arising from any
intellectual property claim by a third party.

 

19.                               HAZARDOUS
MATERIALS

 

A.                                   If Items provided hereunder include Hazardous
Materials, each Party represents and warrants that their respective personnel
understand the nature of and hazards associated with the design and/or Service
of Items including handling, transportation, and use of such Hazardous
Materials, as applicable.  Prior to
causing Hazardous Materials to be on Buyer’s property, Supplier shall notify
Buyer and obtain written approval from Buyer’s Site Environmental, Health, and
Safety (EHS) organization.  Buyer will
not grant approval without Supplier’s agreement to comply with Buyer’s
Hazardous Materials management requirements. 
Supplier will be fully responsible for and indemnify Buyer from any
liability resulting from the negligence of Supplier or its contractors in
connection with: (i) delivering such Hazardous Materials to Buyer; and/or (ii) using
such Hazardous Materials to provide Services to Buyer.

 

B.                                     Supplier will timely provide Buyer with
material safety data sheets and any other documentation reasonably necessary to
enable Buyer to comply with applicable laws and regulations.  Further, Supplier shall provide Buyer with
bulletins which notify Buyer of any safety hazards associated with the
Equipment that are identified by Supplier after Buyer’s purchase, and of any
safety upgrades required to correct such hazards.

 

C.                                     Supplier hereby
certifies that Items supplied to Buyer comply with all applicable requirements
of Buyer’s Environmental Product Content 

 

13

 

Specification for Suppliers and Outsourced
Manufacturers (Spec
number BS-MTN-0001) and attached hereto in Addendum B.

 

20.                               CUSTOMS
CLEARANCE

 

Upon Buyer’s request, Supplier will promptly provide Buyer with a
statement of origin for all Items and with applicable customs documentation for
Items wholly or partially manufactured outside of the country of import.

 

21.                               COMPLIANCE
WITH LAWS AND RULES

 

A.                                   Each Party shall comply with all applicable
international, national, state, provincial and local laws and regulations
(including without limitation the United States and European Union) governing
the manufacture, packaging, transportation, import, export, sale or use of
Items and/or the performance of Services in the course of this Agreement.  In the United States, these may include, but
are not limited to, Department of Commerce including U. S. Export
Administration regulations, Securities Exchange Commission, Environmental
Protection Agency, and Department of Transportation regulations applicable to
Hazardous Materials.  Neither Party will
export/re-export any technical data, process, product, or service, directly or
indirectly (including the release of controlled technology to foreign nationals
from controlled countries), to any country for which the United States
government or any agency thereof requires an export license, except in
compliance with applicable law. In addition, Supplier agrees not to provide
foreign nationals from controlled countries as employees or contractors for work
on any Buyer site. For a current list of “Controlled Countries” refer to
http://www.bxa.doc.gov.

 

B.                                     If applicable, each Party represents and
agrees that it is in compliance with Executive Order 11246 and implementing
Equal Employment Opportunity regulations, the Vietnam Era Veterans’
Readjustment Assistance Act as amended by the Veterans Employment Opportunities
Act of 1998 (to include: Vietnam-era Veterans and other Veterans who served on
active duty during a war or campaign or expedition for which a campaign badge
has been authorized), and the Immigration Act of 1987, unless exempted or
inapplicable.

 

C.                                     Each Party shall comply with all applicable
laws regarding non-discrimination in terms and conditions of employment,
payment of minimum wage and legally mandated employee benefits and compliance
with mandated work hours.  Each Party
shall comply with all applicable laws regarding employment of underage or child
labor and shall not employ children under the age of 16.

 

22.                               RETENTION

 

Supplier will maintain
complete and accurate records for a period of five (5) years from the
delivery of Items and/or completion of Services under this Agreement.  Records relating to the performance of this
Agreement shall be made available to Buyer upon reasonable notice.

 

[***]

 

14

 

A.                                   [***]

 

B.                                     [***]

 

24.                               BUSINESS
CONTINUITY

 

A.                                   Supplier will
develop and maintain documented business continuity plans (“BCP”) designed to
reduce the severity and duration of any period in which Supplier is unable to
perform under this Agreement due to causes beyond Supplier’s reasonable
control.  The BCP shall contain, at
minimum, written data recovery procedures which will address data quality,
security procedures, and timeline of recovery while the data and production are
being restored according to the timeline indicated in the BCP.  Supplier will allow Buyer to review BCP
relating to the performance of Services or delivery of Items, subject to the Section 16
obligation to maintain such information in confidence.

 

B.                                     Supplier will
develop and maintain a communication plan to advise Buyer of events impacting
performance of Services or data. 
Supplier may modify the BCP from time to time, provided that Supplier
will notify Buyer of any material changes to the BCP.

 

C.                                     Where inventory
is to be used as a key element of the BCP, Supplier shall maintain commercially
reasonable inventory levels.

 

D.                                    During any
period in which Supplier is unable to perform under this Agreement due to
causes beyond Supplier’s reasonable control, Supplier agrees to provide remedy according
to Section 15.

 

25.                               NEW
DEVELOPMENTS

 

A.                                   Supplier
represents and warrants that Supplier has no outstanding agreement that would
materially adversely affect Supplier’s performance hereunder, and Supplier
agrees that Supplier shall not enter into any such materially adverse agreement
during the term of this Agreement.

 

B.                                     [***]

 

26.                               ELECTRONIC
TRANSACTIONS

 

A.                                   Subject
to the terms and conditions of this section, the Parties agree to accept
electronic records and electronic signatures (as such terms are defined in the
U.S. Electronic signatures in global and national commerce act) relating to
transactions contemplated by this Agreement.

 

B.                                     In
connection with system-to-system implementations:

 

1.                                       The
Parties will implement the particular transaction sets and/or message
specifications mutually agreed upon by the Parties.  Each Party’s implementation will comply with
applicable standards (e.g., applicable 

 

15

 

ANSI standards or
Rosetta net pips), except as otherwise mutually agreed.

2.                                       Where
applicable standards require that the receiving Party issue a notice to the
other confirming message receipt, such notice will not constitute a binding
acceptance or acknowledgement of anything more than mere receipt.  In the event that any element of an
applicable standard conflicts with a provision of this Agreement, the provision
of this Agreement will control.

3.                                       If
a Party has adopted an electronic identifier (e.g. A digital signature), the
other Party is entitled to rely on the authenticity of messages signed by or
otherwise associated with such electronic identifier unless and until notified
otherwise by the adopter.

 

C.                                     Either Party may use a third party
service provider in connection with e-business activities (e.g., to route or
translate edi or xml messages, or to host web based services). The Party
contracting with a service provider must require that such service provider (a) use
information disclosed to or learned by such service provider in connection with
providing services solely for the purpose of providing the applicable services,
and (b) not disclose such information to any third party.  Either Party may begin to use or may change a
service provider upon reasonable prior notice. 
Each Party will be liable for the acts or omissions of its service
provider in connection with activities contemplated by this Agreement.

 

27.                               PRIVACY

 

A.                                   This provision
applies to both online and offline Personal Information.

 

B.                                     “Personal
Information” is defined as any information that can be used to identify,
contact or locate a person. This includes any information which is linked to
Personal Information, or from which other Personal Information can easily be
derived.

 

C.                                     If Buyer
transmits any Personal Information to Supplier, Supplier warrants that Supplier
shall not transfer such Personal Information to any third party or use it for
any purpose other than as contemplated in this Agreement.

 

D.                                    If Supplier
obtains Personal Information in the course of performance of Services for
Buyer, Supplier warrants that Supplier shall not transfer such Personal
Information to any third party or use it for any purpose other than as
contemplated in this Agreement.

 

F.                                      If Supplier
contracts with its affiliates, subcontractors or other third parties for
performance of all or part of this Agreement, Supplier will inform such third
parties that Personal Information is not to be transferred or used except as
contemplated by this Agreement.

 

G.                                     Supplier shall
take reasonable measures to ensure the security of Supplier’s data, as
described in the Data Security provision of this Agreement, and take reasonable
measures to maintain the privacy of Personal Information.

 

16

 

28.                               DATA SECURITY REQUIREMENTS

 

A.                                   Logical controls:  all systems
containing Intel classified information will have strong access control
mechanisms in place.  Each system user must have a unique identifier and
strong password combination. A strong password must be per industry standard,
but at least 6 digits in length and comprised of alpha-numeric and special
characters.  There must be control methods for securely granting and
revoking access to these systems.  An audit trail sufficient to support an
investigation must be maintained for changes to the security configuration and
for system use (e.g. system security logs, user activity logs). If provided by
Buyer to Supplier, information classified as Intel restricted secret or higher
will be transmitted under a Restricted Use Non-Disclosure Agreement
(RUNDA).  Within the RUNDA, Intel will specify the data security
requirements necessary for the type of data being transmitted.  If
Supplier cannot meet the specified data security requirements,
Supplier may decline to receive such Buyer information in general or Buyer
information of a specific classification level.

 

B.                                     Physical controls:  systems storing Intel classified information
must be housed in a physically secure location with access controls to the
granularity of the user (e.g. Card access controlled room) and with 24x7
intrusion detection systems in place (e.g. A monitored perimeter alarm
system).  Access control audit trails
must be maintained sufficient to support an investigation.

 

C.                                     Intrusion detection/response:  for systems and networks containing Intel
classified material, mechanisms and controls must be in place to detect
security breaches and to properly respond to a breach.  Intel must be notified within twenty four
(24) hours of security breaches that affect Intel classified information.

 

D.                                    Data destruction:  electronic portable media (e.g. Cd’s, hard
drives, floppy disks, zip drives) which contained Intel classified information
must be disposed of in a secure manner (e.g. Disk wipe to government standards,
degauss, physical destruction).  Hard
copies of Intel classified information must be disposed of by shredding or
other secure destruction methods.

 

17

 

29.                               NOTICES

 

All notices hereunder are to be in writing, and are deemed to have been
duly given or made if given in person, delivered by commercial courier, or
given by certified mail, postage prepaid, return receipt requested, addressed
to the respective addresses of the Parties. 
Notices so given shall be effective (i) when delivered if given in
person or by commercial delivery courier service, or (ii) upon receipt or
ten (10) days after posting, whichever is earlier, if given by mail.  Unless otherwise agreed in writing by the
Parties, all notices regarding this Agreement shall be sent to the Parties,
with copies thereof as indicated, at the addresses set forth below, or at such
other address as the Parties may designate by notice from time to time.

 

	
  BUYER:

  	
  Intel Corporation

  
	
   

  	
  2200 Mission College
  Boulevard

  
	
   

  	
  Santa Clara, California 95052-8119

  
	
   

  	
  U.S.A.

  
	
   

  	
  Attention: 
                                                                       

  
	
   

  	
   

  
	
   

  	
  cc:

  	
  KMG Electronic Chemicals
  Materials Manager

  
	
   

  	
   

  	
  TMG Materials Counsel

  
	
   

  	
   

  
	
  SUPPLIER:

  	
  KMG Electronic
  Chemicals, Inc.

  
	
   

  	
  9555 W. Sam Houston Parkway S., Suite 600

  
	
   

  	
  Houston, TX 77099

  
	
   

  	
  U.S.A.

  
	
   

  	
  Attention: General Manager
  North America

  
	
   

  	
  With a copy to: General
  Counsel

  

 

30.                               DISPUTE
RESOLUTION

 

All disputes arising
directly under the express terms of this Agreement or the grounds for
termination thereof shall be resolved as follows:  The senior management of both Parties shall
meet to attempt to resolve such disputes. 
If the disputes cannot be resolved by the senior management, either
Party may make a written demand for formal dispute resolution and specify
therein the scope of the dispute.  Within
thirty (30) days after such notification, the Parties agree to meet for one (1) day
with an impartial mediator and consider dispute resolution alternatives other
than litigation, including referral to the National Patent Board.  If an alternative method of dispute
resolution is not agreed upon within thirty (30) days after the one day
mediation, either Party may begin litigation proceedings.

 

31.                               MERGER,
MODIFICATION, WAIVER, AND REMEDIES

 

A.                                   This Agreement
contains the entire understanding between Buyer and Supplier with respect to
the subject matter hereof and merges and supersedes all prior and
contemporaneous agreements, dealings and negotiations. No modification,
alteration, or amendment shall be effective unless made in writing, dated and
signed by duly authorized representatives of both Parties.

 

18

 

B.                                     No waiver of
any breach hereof shall be held to be a waiver of any other or subsequent
breach.

 

C.                                     If any
provision of this Agreement is determined by a court of competent jurisdiction
to be invalid, illegal, or unenforceable, such determination shall not affect
the validity of the remaining provisions unless Buyer determines in its
discretion that the court’s determination causes this Agreement to fail in any
of its essential purposes.

 

32.                               ASSIGNMENT

 

Buyer or Supplier may assign or delegate its rights
and/or obligations, or any part thereof under this Agreement to any or all of
its wholly-owned subsidiaries. 
Otherwise, neither Party may assign or delegate its rights and
obligations under this Agreement without the prior written consent of the
other.  For purposes of this Section 33,
the acquisition, merger, consolidation, or change in control of Supplier or any
assignment by operation of law shall be deemed an assignment that requires
Buyer’s written consent. Buyer may cancel this Agreement for cause should
Supplier attempt to make an unauthorized assignment of any right or obligation
arising hereunder.

 

33.                               APPLICABLE
LAW

 

This Agreement is to be
construed and interpreted according to the laws of the State of Delaware,
excluding its conflict of laws provisions. The Parties agree that the
predominance of this Agreement is the sale of goods, and agree that the
Delaware version of the Uniform Commercial Code, Article 2, shall be
applicable to this Agreement.  The venue for any such litigation shall be
in the State or Federal Courts having jurisdiction over matters brought in
Delaware and both Parties agree to submit to the jurisdiction of such
courts.   For the delivery of Items and Services to Buyer’s
facilities in Ireland, in the event of a conflict between applicable U.S. law
and the local law of such jurisdiction, local law shall prevail in regard to any
conflict.

 

34.                               HEADINGS

 

The headings provided in this Agreement are for convenience only and
shall not be used in interpreting or construing this Agreement.

 

35.                               SURVIVAL

 

The provisions of Sections: 11, 14, 15, 16, 18, 19, 21, 22, 25, 30, 31,
32, 33 and Paragraph 5D shall survive the termination or expiration of this
Agreement.  In addition, any right or
legal obligation of a Party contained in any Addendum or Amendment, which by
its express term or nature would reasonably extend for a period beyond the term
of the Agreement, shall also survive the termination of the Agreement for such
extended period.

 

IN WITNESS WHEREOF, the Parties hereto have
caused this Agreement to be executed by their duly authorized representatives,
and effective as of the date first written above.

 

19

 

	
  INTEL
  CORPORATION

  	
  KMG
  ELECTRONIC CHEMICALS, INC. (“SUPPLIER”)

  
	
   

  	
   

  
	
  Signature:

  	
  /s/
  Mark Denney

  	
   

  	
  Signature:

  	
  /s/
  J. Neal Butler

  
	
  Printed
  Name:

  	
  Mark
  Denney

  	
   

  	
  Printed
  Name:

  	
  J.
  Neal Butler

  
	
  Title:

  	
  Commodity
  Manager

  	
   

  	
  Title:

  	
  President
  and CEO

  
	
  Date:

  	
  May 5,
  2009

  	
   

  	
  Date:

  	
  May 12,
  2009

  

 

20Exhibit 10.1

 

PHASE FORWARD INCORPORATED

2004 STOCK OPTION AND INCENTIVE PLAN

As Amended and Restated March 2009

 

1.                                       Purpose
and Eligibility

 

The purpose of this 2004 Stock Option and
Incentive Plan (the “Plan”) of
Phase Forward Incorporated (the “Company”)
is to provide stock options and other equity interests in the Company (each an “Award”) to employees, officers, directors,
consultants and advisors of the Company and its Subsidiaries, all of whom are
eligible to receive Awards under the Plan. Any person to whom an Award has been
granted under the Plan is called a “Participant.”
Additional definitions are contained in Section 9.

 

2.                                       Administration

 

The Plan will be administered by the
Compensation Committee (the “Committee”)
of the Board of Directors of the Company (the “Board”).
The Committee shall, subject to the provisions of the Plan, have the power to
construe this Plan, to determine all questions hereunder, and to adopt and
amend such rules and regulations for the administration of this Plan as it
may deem desirable. No member of the Board or the Committee shall be liable for
any action or determination made in good faith with respect to this Plan or any
option granted under it.

 

3.                                       Stock
Available for Awards

 

a.               Number of Shares.  Subject to adjustment under Section 3(c) and
the next sentence, the aggregate number of shares of Common Stock of the
Company (the “Common Stock”) that
may be issued pursuant to the Plan is 3,981,505 shares. Subject to stockholder
approval, the number of reserved shares of Common Stock under the Plan shall be
increased from 3,981,505 shares to 5,481,505 shares. If any Award expires, or
is terminated, surrendered, cancelled or forfeited, in whole or in part, the
unissued Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan. If shares of Common Stock issued pursuant to
the Plan are surrendered or forfeited to, the Company, such shares of Common
Stock shall again be available for the grant of Awards under the Plan. Shares
tendered or held back upon exercise of an Option or settlement of an Award to
cover the exercise price or tax withholding shall not be available for future
issuance under the Plan. In addition, the grant of a stock appreciation right
shall reduce the number of shares available for grant under the Plan by the
gross number of shares underlying such stock appreciation right. Upon the
exercise of such stock appreciation right, the authorized share pool under this
Section 3 shall not be credited with any additional shares. 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 3(c),
no Participant may be granted Options or stock appreciation rights during any
one fiscal year to purchase more than 750,000 shares of Common Stock.

 

c.               Adjustment to Common Stock.  In the event of any stock split, stock
dividend, extraordinary cash dividend, recapitalization, reorganization,
merger, consolidation, combination, exchange of shares, liquidation, spin-off,
split-up, or other similar change in capitalization or event, (i) the
number and class of securities available for Awards under the Plan and the per-Participant
share limit, (ii) the number and class of securities, vesting schedule and
exercise price per share subject to each outstanding Option, (iii) the
repurchase price per security subject to repurchase, and (iv) the terms of
each other outstanding stock- based Award shall be adjusted by the Company (or
substituted Awards 

 

1

 

may be made) to the extent the Committee
shall determine, in good faith, that such an adjustment (or substitution) is
appropriate. If Section 8(e)(i) applies for any event, this Section 3(c) shall
not be applicable.

 

4.                                       Stock
Options

 

a.               General.  The Committee 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 and the Common Stock issued upon the
exercise of each Option, including vesting provisions and restrictions relating
to applicable federal or state securities laws, as it considers advisable.

 

b.              Incentive Stock Options.  An Option that the Committee intends to be an
“incentive stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall be granted
only to employees of the Company and shall be subject to and shall be construed
consistently with the requirements of Section 422 of the Code. The
Committee and the Company shall have no liability if an Option or any part
thereof that is intended to be an Incentive Stock Option does not qualify as
such. An Option or any part thereof that does not qualify as an Incentive Stock
Option is referred to herein as a “Nonstatutory
Stock Option.”

 

c.               Exercise Price.  The Committee shall establish the exercise
price (or determine the method by which the exercise price shall be determined)
at the time each Option is granted and specify it in the applicable option
agreement. The exercise price of each Option shall not be less than
100 percent of the per share fair market value of the Common Stock on the
date of grant. Fair market value shall be determined by reference to market
quotations on the Nasdaq National Market System.

 

d.              Duration of Options.  Each Option shall be exercisable at such
times and subject to such terms and conditions as the Committee may specify in
the applicable option agreement. Each Option shall expire ten years after the
date of grant.

 

e.               Exercise of Option.  Options may be exercised only by delivery to
the Company of a written notice of exercise signed by the proper person
together with payment in full as specified in Section 4(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 shall be paid for by one or any
combination of the following forms of payment:

 

(i)             by check payable to the
order of the Company;

 

(ii)          except as otherwise
explicitly provided in the applicable option agreement, and only if the Common
Stock is then publicly traded, delivery of an irrevocable and unconditional
undertaking by a creditworthy broker to deliver promptly to the Company
sufficient funds to pay the exercise price, or 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; or

 

(iii)       to the extent explicitly
provided in the applicable option agreement, by (x) delivery of shares of
Common Stock owned by the Participant valued at fair market value and which
have been held by the Participant for at least six months (as determined by the
Committee or as determined pursuant to the applicable option agreement), or (y) payment
of such other lawful consideration as the Committee may determine.

 

5.                                       Restricted
Stock

 

a.               Grants.  The Committee may grant a Restricted Stock
Award to a Participant. A Restricted Stock Award is an award entitling the
recipient to acquire, at such purchase price (which may be zero) 

 

2

 

as determined by the Committee, shares of Common Stock subject to such
restrictions and conditions as the Committee may determine (each, a “Restricted Stock Award”). If a Participant’s
employment (or other service relationship) with the Company or its Subsidiary
is terminated prior to satisfaction of such restrictions and conditions, any
Restricted Stock that has not vested shall automatically and without
requirement of notice to the Participant from the Company be deemed to be
forfeited to the Company, subject to the payment by the Company of the original
purchase price for such Restricted Stock, if any.

 

b.              Terms and Conditions.  The Committee shall determine the terms and
conditions of any such Restricted Stock Award. Conditions may be based on
continuing employment (or other service relationship) and/or achievement of pre-established
performance goals and objectives. In the event a Restricted Stock Award granted
to an employee shall have a performance goal, the restriction period with
respect to such Award shall not be less than one year, and in the event a
Restricted Stock Award granted to an employee shall be based on continuing
employment, the total restriction period with respect to such Award shall not
be less than three years; provided, however, the risks of forfeiture can lapse
incrementally over the three-year period. No dividends may be earned under a
Restricted Stock Award. 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 Committee, deposited by the Participant,
together with a stock power endorsed in blank, with the Company (or its
designee). After the expiration of the applicable restrictions and conditions,
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 by a Participant, in a manner determined by the
Committee, 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.

 

6.                                       Other
Stock-Based Awards

 

The Committee shall have the
right to grant other Awards based upon the Common Stock having such terms and
conditions as the Committee may determine, including, without limitation, the
grant of shares based upon certain conditions, the grant of securities
convertible into Common Stock and the grant of stock appreciation rights,
phantom stock awards or stock units. In the event an Other Stock-Based Award
granted to an employee shall have a performance goal, the restriction period
with respect to such Award shall not be less than one year, and in the event an
Other Stock-Based Award granted to an employee shall be based on continuing
employment, the total restriction period with respect to such Award shall not
be less than three years; provided, however, the risks of forfeiture can lapse
incrementally over the three-year period. No dividends may be earned under any
other Stock-Based Award.

 

7.                                       Performance-Based
Awards to Covered Employees

 

a.               Performance-Based Awards.  Any employee or other key person providing
services to the Company and who is selected by the Committee may be granted one
or more Performance-Based Awards in the form of a Restricted Stock Award or
Other Stock-Based Award payable upon the attainment of Performance Goals that
are established by the Committee and relate to one or more of the Performance
Criteria, in each case on a specified date or dates or over any period or
periods determined by the Committee. The Committee shall define in an objective
fashion the manner of calculating the Performance Criteria it selects to use
for any Performance Cycle. Depending on the Performance Criteria used to
establish such Performance Goals, the Performance Goals may be expressed in
terms of overall Company performance or the performance of a division, business
unit, or an individual. The Committee, in its discretion, may adjust or modify
the calculation of Performance Goals for such Performance Cycle in order to
prevent the dilution or enlargement of the rights of an individual (i) in
the event of, or in anticipation of, any unusual or extraordinary corporate
item, 

 

3

 

transaction, event or development, (ii) in recognition of, or in
anticipation of, any other unusual or nonrecurring events affecting the
Company, or the financial statements of the Company, or (iii) in response
to, or in anticipation of, changes in applicable laws, regulations, accounting
principles, or business conditions provided however, that the Committee may not
exercise such discretion in a manner that would increase the Performance-Based
Award granted to a Covered Employee. Each Performance-Based Award shall comply
with the provisions set forth below.

 

(b)         Grant of Performance-Based Awards.  With respect to each Performance-Based Award
granted to a Covered Employee, the Committee shall select, within the first
90 days of a Performance Cycle (or, if shorter, within the maximum period
allowed under Section 162(m) of the Code) the Performance Criteria
for such grant, and the Performance Goals with respect to each Performance
Criterion (including a threshold level of performance below which no amount
will become payable with respect to such Award). Each Performance-Based Award
will specify the amount payable, or the formula for determining the amount
payable, upon achievement of the various applicable performance targets. The
Performance Criteria established by the Committee may be (but need not be)
different for each Performance Cycle and different Performance Goals may be
applicable to Performance-Based Awards to different Covered Employees.

 

(c)          Payment of Performance-Based
Awards.  Following the completion of a
Performance Cycle, the Committee shall meet to review and certify in writing
whether, and to what extent, the Performance Goals for the Performance Cycle
have been achieved and, if so, to also calculate and certify in writing the
amount of the Performance-Based Awards earned for the Performance Cycle. The
Committee shall then determine the actual size of each Covered Employee’s
Performance-Based Award, and, in doing so, may reduce or eliminate the amount
of the Performance-Based Award for a Covered Employee if, in its sole judgment,
such reduction or elimination is appropriate.

 

(d)         Maximum Award Payable.  The maximum Performance- Based Award payable
to any one Covered Employee under the Plan for a Performance Cycle is 300,000
shares of Stock (subject to adjustment as provided in Section 3(d) hereof).

 

8.                                       General
Provisions Applicable to Awards

 

a.               Transferability of Awards.  Except as the Committee 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, 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 under the Plan shall be evidenced
by a written instrument in such form as the Committee shall determine or as
executed by an officer of the Company pursuant to authority delegated by the
Committee. Each Award may contain terms and conditions in addition to those set
forth in the Plan; provided, that
such terms and conditions do not contravene the provisions of the Plan.

 

c.               Committee Discretion.  The terms of each type of Award need not be
identical, and the Committee need not treat Participants uniformly.

 

d.              Termination of Status.  In the event a Participant dies prior to the
vesting of the first tranche of shares subject to an Award, such Award will
automatically accelerate to provide that the first tranche of shares shall be
exercisable for the remainder of the term of the Award. The Committee shall otherwise
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, 

 

4

 

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.               Acquisition of the Company

 

(i)             Consequences
of an Acquisition.  Upon the
consummation of an Acquisition, the Board or the board of directors of the
surviving or acquiring entity (as used in this Section 8(e)(i), also the “Board”), shall, as to outstanding Awards
(on the same basis or on different bases as the Board shall specify), make
appropriate provision for the continuation of such Awards by the Company or the
assumption of such Awards by the surviving or acquiring entity and by
substituting on an equitable basis for the shares then subject to such Awards
either (a) the consideration payable with respect to the outstanding
shares of Common Stock in connection with the Acquisition, (b) shares of
stock of the surviving or acquiring corporation or (c) such other
securities or other consideration as the Board deems appropriate, the fair
market value of which (as determined by the Board in its sole discretion) shall
not materially differ from the fair market value of the shares of Common Stock
subject to such Awards immediately preceding the Acquisition; provided, however, that, notwithstanding
the foregoing, the form of instruments evidencing Options granted pursuant to
this Plan shall provide that in the event of an Acquisition, then twenty-five
percent (25%) of the shares underlying the Options issued pursuant to such
instruments shall immediately vest and become exercisable (in addition to any
portion of the Options already vested and exercisable). In addition to or in
lieu of the foregoing, with respect to outstanding Options, the Board may, on
the same basis or on different bases as the Board shall specify, upon written
notice to the affected optionees, provide that one or more Options then
outstanding must be exercised, in whole or in part, within a specified number
of days of the date of such notice, but in no event less than five (5) business
days, at the end of which period such Options shall terminate, or provide that
one or more Options then outstanding, in whole or in part, shall be terminated
in exchange for a cash payment equal to the excess of the fair market value (as
determined by the Board in its sole discretion) for the shares subject to such
Options over the exercise price thereof; provided,
however, that before terminating any portion of an Option that is
not vested or exercisable (other than in exchange for a cash payment), the
Board must first accelerate in full the exercisability of the portion that is
to be terminated. Unless otherwise determined by the Board (on the same basis
or on different bases as the Board shall specify), any repurchase rights or
other rights of the Company that relate to an Option or other Award shall
continue to apply to consideration, including cash, that has been substituted,
assumed or amended for an Option or other Award pursuant to this paragraph. The
Company may hold in escrow all or any portion of any such consideration in
order to effectuate any continuing restrictions.

 

(ii)          Acquisition
Defined.  An “Acquisition” shall mean:

 

(a)                                  a merger or
consolidation of the Company with or into any other corporation or other
business entity in which the Company is the surviving corporation (except one
in which the holders of capital stock of the Company immediately prior to such
merger or consolidation continue to hold at least a majority of the outstanding
securities having the right to vote in an election of the Board (“Voting Stock”) of the Company); or any
such merger or consolidation in which the Company is not the surviving
corporation;

 

(b)                                 a sale, lease,
exchange or other transfer (in one transaction or a related series of
transactions) of all or substantially all of the Company’s assets;

 

(c)                                  the acquisition
by any person or any group of persons (other than the Company, any of its
direct or indirect subsidiaries, or any trustee, fiduciary or other person or
entity holding securities under any employee benefit plan or trust of the
Company or any of its direct or indirect subsidiaries) acting together in any
transaction or related series of transactions, of such number of shares of the
Company’s Voting Stock as causes such person, or group of 

 

5

 

persons, to own
beneficially, directly or indirectly, as of the time immediately after such
transaction or series of transactions, 50% or more of the combined voting power
of the Voting Stock of the Company other than as a result of an acquisition of
securities directly from the Company, or solely as a result of an acquisition
of securities by the Company which by reducing the number of shares of the
Voting Stock outstanding increases the proportionate voting power represented
by the Voting Stock owned by any such person to 50% or more of the combined
voting power of such Voting Stock; and

 

(d)                                 a change in the
composition of the Board following a tender offer or proxy contest, as a result
of which persons who, immediately prior to a tender offer or proxy contest,
constituted the Company’s Board shall cease to constitute at least a majority
of the members of the Board.

 

(iii)       Assumption
of Options Upon Certain Events.  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 Awards under the Plan in substitution
for stock and stock-based awards issued by such entity or an affiliate thereof.
The substitute Awards shall be granted on such terms and conditions as the
Board considers appropriate in the circumstances.

 

(iv)      Parachute
Awards.  If, in connection with an
Acquisition described therein, a tax under Section 4999 of the Code would
be imposed on the Participant (after taking into account the exceptions set
forth in Sections 280G(b)(4) and 280G(b)(5) of the Code), then
the number of Awards which shall become exercisable, realizable or vested shall
be reduced (or delayed), to the minimum extent necessary, so that no such tax
would be imposed on the Participant (the Awards not becoming so accelerated,
realizable or vested, the “Parachute Awards”);
provided, however, that if the “aggregate
present value” of the Parachute Awards would exceed the tax that, but for this
sentence, would be imposed on the Participant under Section 4999 of the
Code in connection with the Acquisition, then the Awards shall become
immediately exercisable, realizable and vested without regard to the provisions
of this sentence. For purposes of the preceding sentence, the “aggregate
present value” of an Award shall be calculated on an after-tax basis (other
than taxes imposed by Section 4999 of the Code) and shall be based on
economic principles rather than the principles set forth under Section 280G
of the Code and the regulations promulgated thereunder. All determinations
required to be made under this Section 8(e)(iv) shall be made by the
Company.

 

f.                 Withholding.  Each Participant shall pay to the Company, or
make provisions satisfactory to the Company for payment of, any taxes required
by law to be withheld in connection with Awards to such Participant no later
than the date of the event creating the tax liability. The Committee may allow
Participants to satisfy the minimum tax withholding obligation in whole or in
part by transferring shares of Common Stock, including shares retained from the
Award creating the tax obligation, valued at their fair market value (as
determined by the Committee or as determined pursuant to the applicable option
agreement). 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.

 

g.              Amendment of Awards.  The Committee 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 Committee
determines that the action, taking into account any related action, would not
materially and adversely affect the Participant. Except as provided in Section 3(c) or
8(e), the Committee shall obtain stockholder approval prior to taking any
action to reduce the exercise price of outstanding Options and stock
appreciation right or effect repricing through cancellation and regrants.

 

h.              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 

 

6

 

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 including any applicable withholding tax.

 

i.                  Acceleration.  The Committee may at any time provide that
any Options shall become immediately exercisable in full or in part, that any
Restricted Stock Awards shall be free of some or all restrictions, or that any
Other Stock-Based Awards may become exercisable in full or in part or free of
some or all restrictions or conditions, or otherwise realizable in full or in
part, as the case may be, despite the fact that the foregoing actions may (i) cause
the application of Sections 280G and 4999 of the Code if a change in
control of the Company occurs, or (ii) disqualify all or part of the
Option as an Incentive Stock Option.

 

9.                                       Miscellaneous

 

a.               Definitions.

 

(i)             “Company,” for purposes of eligibility under the Plan, shall
include any present or future subsidiary corporations of Phase Forward
Incorporated, as defined in Section 424(f) of the Code (a “Subsidiary”), and any present or future
parent corporation of Phase Forward Incorporation, as defined in Section 424(e) of
the Code. For purposes of Awards other than Incentive Stock Options, the term “Company” shall include any other business
venture in which the Company has a direct or indirect significant interest, as
determined by the Committee in its sole discretion.

 

(ii)          “Code” means the Internal Revenue Code of 1986, as amended,
and any regulations promulgated thereunder.

 

(iii)       “Covered Employee” means an employee who is a “Covered
Employee” within the meaning of Section 162(m) of the Code.

 

(iii)       “employee” for purposes of eligibility under the Plan (but
not for purposes of Section 4(b)) shall include a person to whom an offer
of employment has been extended by the Company.

 

(iv)      “Performance-Based Award” means any Restricted Stock Award or
Other Stock-Based Award granted to a Covered Employee that is intended to
qualify as “performance-based compensation” under Section 162(m) of
the Code and the regulations promulgated thereunder.

 

(v)         “Performance Criteria” means the criteria that the Committee
selects for purposes of establishing the Performance Goal or Performance Goals
for an individual for a Performance Cycle. The Performance Criteria (which
shall be applicable to the organizational level specified by the Committee,
including, but not limited to, the Company or a unit, division, group, or
Subsidiary of the Company) that will be used to establish Performance Goals are
limited to the following: earnings before interest, taxes, depreciation and
amortization, net income (loss) (either before or after interest, taxes,
depreciation and/or amortization), changes in the market price of the Stock,
economic value-added, sales or revenue, acquisitions or strategic transactions,
operating income (loss), cash flow (including, but not limited to, operating
cash flow and free cash flow), return on capital, assets, equity, or
investment, stockholder returns, return on sales, gross or net profit levels,
productivity, expense, margins, operating efficiency, working capital, earnings
(loss) per share of Stock, sales or market shares, any of which may be measured
either in absolute terms or as compared to any incremental increase or as
compared to results of a peer group.

 

7

 

(vi)      “Performance Cycle” means one or more periods of time, which
may be of varying and overlapping durations, as the Committee may select, over
which the attainment of one or more Performance Criteria will be measured for
the purpose of determining a Participant’s right to and the payment of a
Restricted Stock Award or Other Stock-Based Award. Each such period shall not
be less than 12 months.

 

(vii)   “Performance Goals” means, for a Performance Cycle, the
specific goals established in writing by the Committee for a Performance Cycle
based upon the Performance Criteria.

 

b.              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.

 

c.               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 thereof.

 

d.              Effective Date and Term of
Plan.  The Plan shall become effective
on the date on which it is adopted by the Board. No Awards shall be granted
under the Plan after the completion of ten years from the date on which the
Plan was adopted by the Board, but Awards previously granted may extend beyond
that date.

 

e.               Amendment of Plan.  The Board may amend, suspend or terminate the
Plan or any portion thereof at any time; provided,
however, that any material Plan amendments (other than amendments
that curtail the scope of the Plan) shall be subject to approval by the Company
stockholders entitled to vote at a meeting of stockholders, including any Plan
amendments that (i) increase the number of shares reserved for issuance
under the Plan, (ii) expand the type of Awards available under, materially
expand the class of individuals eligible to participate in, or materially
extend the term of, the Plan, or (iii) require stockholder approval under
the rules of the Nasdaq National Market or under any other applicable law,
rule or regulation. In addition, to the extent determined by the Committee
to be required by the Code to ensure that Incentive Stock Options granted under
the Plan are qualified under Section 422 of the Code or to ensure that
compensation earned under Awards qualifies as performance-based compensation
under Section 162(m) of the Code, Plan amendments shall be subject to
approval by the Company stockholders entitled to vote at a meeting of
stockholders.

 

8

 

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.

 

 

	
   

  	
  Original Plan

  
	
   

  	
   

  
	
   

  	
  Adopted by the Board of Directors on 

  March 11, 2004

  
	
   

  	
   

  
	
   

  	
  Approved by the stockholders on 

  April 20, 2004

  
	
   

  	
   

  
	
   

  	
  Amendment and Restatement

  
	
   

  	
   

  
	
   

  	
  Adopted by the Board of Directors on 

  March 28, 2006

  
	
   

  	
   

  
	
   

  	
  Approved by the stockholders on 

  May 3, 2006

  
	
   

  	
   

  
	
   

  	
  Amendment No. 1

  
	
   

  	
   

  
	
   

  	
  Adopted by the Board of Directors on 

  March 30, 2007

  
	
   

  	
   

  
	
   

  	
  Approved by the stockholders on 

  May 2, 2007

  
	
   

  	
   

  
	
   

  	
  Second Amendment and Restatement

  
	
   

  	
   

  
	
   

  	
  Adopted by the Board of Directors on 

  March 31, 2009

  
	
   

  	
   

  
	
   

  	
  Approved by the stockholders on 

  May 8, 2009

  

 

9

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