Document:

Confidential Treatment

TECHNOLOGY RESELLER AGREEMENT

 

This Technology Reseller Agreement (“Agreement”) effective as of this 01 day of May, 2007 (“Effective Date”), is made and entered into by and between

 

Applied DNA Sciences, Inc. a Nevada corporation with an address of 25 Health Sciences Drive, Suite 113, Stony brook, New York 11790 (ADNAS”) 

 

and

 

Printcolor Screen Ltd. a Swiss company with an address of Welschloh 299, CH-8965 Berikon, Switzerland (“Printcolor”)

 

WHEREAS, ADNAS has developed and has rights in certain technology used for botanical DNA encryption, embedment and authentication solutions wherein a marker may be embedded in items to, among other things, authenticate and identify counterfeit versions of such items; and

 

WHEREAS, Printcolor desires the right to include ADNAS SigNature DNA Markers in it is products for distribution to its customers, and ADNAS is willing to grant such rights, in accordance with the terms and conditions herein.

 

NOW THEREFORE, in consideration of the mutual covenants and understandings contained in this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

	
            1.
 	
            DEFINITIONS
 

For the purpose of this Agreement, the following terms shall have the stated meanings:

	
             
 	
            1.1
 	
            “Affiliate” with respect to a party, means any entity controlling, controlled by or under common control with such party.
 

	
             
 	
            1.2
 	
            “Intellectual Property” means all current and future worldwide patents and other patent rights, trademarks, trade names, service marks, copyrights, applications for any of the foregoing, technology, know-how, trade secrets, mask work rights and all other intellectual property rights.
 

	
             
 	
            1.3
 	
            “Printcolor Products” means those products sold by Printcolor that are identified on Schedule A.
 

	
             
 	
            1.4
 	
            Profit” “means the actual amount received by Printcolor for the sale of DNA enhanced Printcolor Products less the following deductions to the extent that such amounts are actually accrued or incurred as to such sales: (a) cost of goods sold (b) freight, packaging and insurance costs incurred in transporting the Product to customers (c) quantity, cash and other trade discounts or rebates allowed and actually taken; (d) customs duties, surcharges, taxes and other governmental charges incurred with the importation or exportation of Products; and (e) amounts repaid or credited by reason of rejections, recalls or retroactive price reductions.
 

  

	
             
 	
            1.5
 	
            “SigNature DNA Markers” means the DNA-inscribed markers comprising ADNAS’ technology.
 

 

	
            2.
 	
            PRINTCOLOR RIGHTS AND OBLIGATIONS
 

	
             
 	
            2.1
 	
            Rights Granted . Subject to and in accordance with the terms of this Agreement, ADNAS hereby:
 

	
             
 	
            (i)
 	
            appoints Printcolor as an authorized Reseller of SigNature DNA Markers for the Term; 
 

	
             
 	
            (ii)
 	
            grants to Printcolor a non-exclusive, non-transferable, limited right and license during the Term to affix the Signature DNA Markers only on Printcolor Products for distribution to Printcolor’s customers;  
 

	
             
 	
            (iii)
 	
            agrees that once Printcolor has identified a customer to ADNAS in writing, ADNAS will not offer its products to this customer, except through Printcolor, for as long as customer remains a customer of Printcolor; and
 

	
             
 	
            (iv)
 	
            agrees that any inquiries received by ADNAS from customers in markets as described in Schedule A shall be forwarded to Printcolor.  
 

	
             
 	
            2.1.1
 	
            Printcolor hereby:
 

	
             
 	
            (i)
 	
            agrees to exclusively use SigNature DNA during the Term of this Agreement.
 

	
             
 	
            (ii)
 	
            agrees to produce sample prints to include in its security solutions hand book and to develop sample kits for marketing purposes, and to provide such handbooks to ADNAS in reasonable quantity. 
 

	
             
 	
            2.2
 	
            Specific Restrictions. Without in any way expanding the rights granted above, Printcolor’s use of the SigNature DNA Markers shall be restricted in accordance with the following specific restrictions.
 

	
             
 	
            2.3
 	
            No Unauthorized Use. Printcolor shall not use the SigNature DNA Markers except as expressly permitted under the terms of this Agreement.
 

	
             
 	
            2.4
 	
            No Altering. Printcolor shall not alter, translate, adapt or vary the                   SigNature DNA Markers.
 

	
             
 	
            2.5
 	
            No Reverse Engineering. Printcolor shall not decompile or disassemble the SigNature DNA Markers or reverse engineer the SigNature DNA Markers (or attempt, authorize or permit the same).
 

	
             
 	
            2.6
 	
            No Copying.  Printcolor may not make or attempt to make copies of the SigNature DNA Markers.
 

 

	
            3.
 	
            ORDERS/FEES
 

	
             
 	
            3.1 Purchase Orders.  Printcolor shall submit purchase orders to ADNAS for one of  
 

	
             
 	
            the following:  
 

	
             
 	
            3.1.1
 	
            “Printcolor” DNA for general applications requiring lower security;
 

	
             
 	
            3.1.2
 	
            Ten “mix and Match” DNA for individualized applications requiring higher security;or
 

	
             
 	
            3.1.3
 	
            Joint development projects for large customers requiring highest security.
 

	
             
 	
            3.2
 	
            Fees. ADNAS shall be entitled to the fees associated with Printcolor’s distribution of Printcolor Products which have SigNature DNA Markers, in accordance with the fee schedule set out in Schedule B.
 

	
             
 	
            3.3
 	
            Shipment.  All orders will be shipped by ADNAS F.O.B. place of origin within 30 days of receipt of a formal purchase order. Orders needing a degree of custom development may require some prepayement to initiate development.
 

	
             
 	
            3.4
 	
            Taxes. All amounts payable under this Agreement are exclusive of all sales, use, value-added, withholding, and other taxes and duties.  Each party will pay the taxes and duties assessed against it in connection with this Agreement and its performance by any authority within or outside of the U.S., except for taxes payable on the other party’s net income or any other taxes due and payable by the other in the ordinary course.
 

	
             
 	
            3.5
 	
            Records. During the Term, Printcolor will maintain accurate records necessary to determine the fees payable pursuant to Section 3.2.
 

	
             
 	
            3.6
 	
            Audit. Not more than once during each six (6) month period, and upon ten (10) days prior written notice to Printcolor, ADNAS may inspect Printcolor’s records identified in Section 3.5 to verify compliance with Printcolor’s obligations to pay feed under this Agreement (“Audit”).  If the Audit reveals an underpayment, Printcolor will pay to ADNAS the full amount of such underpayment within fifteen (15) days of Printcolor’s receipt of the results of the Audit.  The cost of any Audit shall be born by ADNAS; provided that if the Audit reveals an underpayment of more than five percent (5%) of the fees due for the period audited, then Printcolor will bear the reasonable costs of the Audit.  Any such Audit shall be conducted at a time and a place reasonably acceptable to Printcolor, and in such a manner so as not to
interfere with or disrupt Printcolor’s business and operations.
 

 

	
            4
 	
            TERM AND TERMINATION
 

	
             
 	
            4.1
 	
            Term.  This Agreement shall commence on the Effective Date and continue for a period of three (3) years.  Thereafter, this Agreement shall automatically renew for successive one year terms (each a “Renewal Term”) unless earlier terminated as permitted below.  The Initial Term and all Renewal Terms are referred to collectively as the “Term”.
 

	
             
 	
            4.2
 	
            Termination.
 

	
             
 	
            4.2.1.
 	
            Breach. Either party may terminate this Agreement for a material breach by the other party if such breach is not cured within thirty (30) days after receipt of written notice thereof. 
 

	
             
 	
            4.2.2
 	
            Termination. In the event of the expiration or termination of this Agreement all of the rights granted to Printcolor pursuant to this Agreement shall terminate; provided that Printcolor may continue to resell any SigNature DNA Markers that it has inventory of as of the effective date of such termination so long as Printcolor in not in default of its obligations under Section 2 or 3. 
 

 

	
             
 	
            5.
 	
            LIMITED WARRANTIES
 

	
             
 	
            5.1
 	
            Warranties.  Each party represents and warrants that (a) it is authorized and has the right to enter into this Agreement; and (b) it has rights to its products sufficient to complete this transactions contemplated by this Agreement. 
 

	
             
 	
            5.2
 	
            DISCLAIMER. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 5, THE SIGNATURE DNA MARKERS AND ANY OTHER MATERIALS PROVIDED BY ADNAS ARE PROVIDED “AS IS” WITHOUT ANY WARRANTIES OF ANY KIND, AND ADNAS SPECIFICALLY DISCLAIMS ALL WARRANTIES,WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTIBILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT. 
 

 

	
            6
 	
            PROPRIETARY RIGHTS
 

	
             
 	
            6.1
 	
            Each party maintains all rights, title and interest, including all Intellectual Property Rights, in and to its own proprietary material and all of the technology relating thereto, except for the license rights expressly granted in Section 2.
 

	
             
 	
            6.2
 	
            All inventions developed jointly during the Agreement will be assigned to ADNAS.  ADNAS will be responsible for all costs associated with filing, prosecuting and maintaining any patents resulting from joint inventions.  Printcolor shall provide reasonable assistance in a timely manner to ADNAS at ADNAS’ request. 
 

	
             
 	
            6.3
 	
            Printcolor will receive an exclusive, fully paid up worldwide license to any intellectual property jointly developed during the course of this Agreement.  Should this Agreement be terminated, this license will convert to a non- exclusive license.  
 

 

	
            7
 	
            INDEMNITY
 

	
             
 	
            7.1
 	
            Indemnity. Printcolor shall defend, indemnify and hold harmless ADNAS, its Affiliates, and their respective officers, directors, employees and agents (each an “Indemnified Party”) from and against any and all claims, suits, losses, liabilities, damages, judgments, settlements, costs and expenses (including but not limited to investigation costs and attorneys’ fees and expenses), that any Indemnified Party may suffer or incur as a result of any claim by any third party relating to the Printcolor Products.
 

	
             
 	
            7.2
 	
            Procedure ADNAS or the affected Indemnified Party will (a) promptly notify Printcolor in writing of any such claim, provided, however, that a delay in notifying Printcolor shall not avoid Printcolor’s indemnity obligations hereunder unless, and only to the extent that, Printcolor’s ability to defend the claim has been materially prejudiced thereby; and (b) provide to Printcolor, at Printcolor’s expense, all available information, assistance and authority reasonably necessary to defend.  Printcolor shall, at its own expense, assume the defense of any such claim or suit.  In no event, however, shall Printcolor settle any such claim without the written consent of ADNAS and the affected Indemnified Party, which consent shall not be unreasonably withheld.  Printcolor shall reimburse ADNS for any costs and expenses (including
without limitation reasonable attorney’s fees) incurred by ADNAS or and Indemnified Party in enforcing the aforesaid indemnification.
 

 

	
             
 	
            8.
 	
            LIMITATION OF LIABILITY
 

	
             
 	
            8.1
 	
            DISCLAIMER. IN NO EVENT SHALL ADNAS OR ITS AFFILIATES OR PROVIDERS BE LIABLE FOR ANY INCIDENTAL, CONSEQUENTIAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES (INCLUDING WITHOUT LIMITATION, LOSS OF PRODUCTION, LOSS OF PROFITS OR OF CONTRACTS, LOSS OF REVENUE, LOSS OF OPERATION TIME, LOSS OF GOODWILL OR ANTICIPATED SAVINGS, WASTED MANAGEMENT OR STAFF TIME) ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATERIALS PROVIDED BY ADNAS PURSUANT HERETO, WHETHER IN AN ACTION IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR OTHERWISE, OR ITS TERMINATION, AND IRRESPECTIVE OF WHETHER ADNAS HAS BEEN ADVISED OF THE POSSIBLITY OF ANY SUCH DAMAGES.
 

	
             
 	
            8.2
 	
     LIMIT.  ADNAS  MAXIMUM  LIABILITY,  WHETHER  IN
CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR BASED ON ANY
 

	
             
 	
             
 	
     CLAIM
FOR INDEMNITY OR CONTRIBUTION  OR OTHERWISE,  IN RESPECT OF EACH AND EVERY EVENT
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT, SHALL NOT EXCEED THE AMOUNT
PAID TO ADNAS BY RESLLER IN THE TWELVE (12) MONTH PERIOD  IMMEDIATELY  PRECEDING
THE CLAIM GIVING RISE TO SUCH LIABILITY.
 

 

	
             
 	
            9.
 	
            CONFIDENTIALITY
 

The parties recognize that each party may disclose to the other information concerning suppliers, clients, distributors, agents, brokers, buyers, sellers, technical data, performance data, pricing details, formulas, processes, commissions, discounts, information relating to competitors and other information which the parties have acquired through their investment of time, expense and effort and which may constitute confidential proprietary business information, intellectual property, and/or trade secrets. The parties acknowledge and agree that during the term of this Agreement, and in the course of the discharge of the duties hereunder, the parties shall have access to and become acquainted with information concerning the operation of the other party, including, financial, personnel, sales, manufacturing, buying, planning, and other information owned by and regularly used in the operation
of the business of each party and each party shall also receive information of a proprietary nature regarding the constitution, formulation, pricing and effectiveness of the Products and both parties hereto accept that such information as outlined above constitutes the Confidential Information of the providing party. The parties hereto agree not to disclose any such Confidential Information, directly or indirectly, to any other person or party, except as may be necessary for such person or party to pursue sales as a function of this Agreement and such person or party shall have executed a Confidentiality Agreement undertaking, binding that person or party to conditions of confidentiality identical to those contained in this Agreement.  The obligations of confidentiality contained in this Section shall survive expiration or earlier termination of this Agreement.

 

	
             
 	
            10.
 	
            MISCELLANEOUS
 

	
             
 	
            10.1
 	
            Governing Law. This Agreement shall be governed and interpreted in accordance with the laws of the State of New York, except to the extent that New York conflict of laws rules would require the application of the law of another state or country.  
 

	
             
 	
            10.2
 	
            Relationship of the Parties. This Agreement does not constitute a partnership agreement, nor does it create a joint venture or agency relationship between the parties.  Neither party shall hold itself out contrary to the terms of this S. 10.2.  Neither party shall be liable to any third party for the representations, acts, or omissions of the other party. 
 

	
             
 	
            10.3
 	
            Notices.  Unless otherwise expressly provided for, all notices, requests, demands, consents or other communications required or permitted under this Agreement must be in writing and must be delivered personally or sent by certified mail (postage prepaid and return receipt requested) or by a nationally recognized courier using its tracking system, to the other party at the address set forth below (or to any other address given by either party to the other party in writing):
 

 

	
             
 	
            If to ADNAS, addressed to:
 	
            if to Printcolor, addressed to:
 

	
             
 	
            Applied DNA Sciences, Inc.  
 	
            Printcolor Deutschland GmbH
 

	
             
 	
            25 Health Sciences Drive, Suite 113  
 	
            Josef-Baumann-Strasse 39
 

	
             
 	
            Stony Brook, NY 11790  
 	
            DE-44805 Bochum, Germany
 

	
             
 	
            Facsimile: 631 444-8848
 	
            Facsimile: 0049 234 687 1919
 

	
             
 	
            Attention: Kurt Jensen
 	
            Attention: Peter Paul
 

 

In the case of mailing, the effective date of delivery of any notice, demand or consent shall be considered to be ten (10) days after proper mailing.  In the case of courier, the effective date of delivery of any notice, demand, or consent shall be upon actual delivery as confirmed by the courier’s tracking system.  

 

	
             
 	
            10.4
 	
            Assignment. Neither this Agreement nor any right (except as otherwise stated in Section 2) or obligation under this Agreement may be assigned by either party without the prior written consent of the other party.  
 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives. 

 

	
             
 	
            Applied DNA Sciences, Inc.
 	
            Printcolor:
 

	
             
 	
            By (sign)
 	
            By (sign)
 

 

 

	
             
 	
            Printed name: Kurt Jensen
 	
            Printed name: Dieter Hermann
 

	
             
 	
            Title: Comptroller
 	
            Title: CEO
 

	
             
 	
            Date: 5/30/2007
 	
            Date: 21th May 2007
 

Schedule A

 

Printcolor will initially use the SigNature DNA Markers in the following products for distribution to its customers.  Additional products may be added to this list in the future:

 

Initially Printcolor will focus on the following markets:

•Tickets and tags

•Security plastic label

•Textile label

•DVD replication

•Luxury packaging

•OEM parts (direct decoration)

•Plastic cards

•High security printers (Money, State documents) via specialized partner

 

Ink technology:

Initially, Printcolor will focus on their available ink technology

	
             
 	
            1.
 	
            Screen printing inks
 

	
             
 	
            2.
 	
            Flexo printing inks
 

	
             
 	
            3.
 	
            Pad printing inks
 

	
             
 	
            4.
 	
            DOD digital printing inks
 

However, using offset printing inks from a partner company can be seen as an option if markets require.

SCHEDULE B

 

Printcolor shall pay ADNAS the following fees:

 

	
             
 	
            1.
 	
            For Printcolor Product 3.1.1 Printcolor shall pay to ADNAS $*** per liter of Printcolor Product which contains SigNature DNA Markers
 

	
             
 	
            2.
 	
            For Printcolor Product 3.1.2, Printcolor shall pay to ADNAS $*** per liter of Printcolor Product which contains SigNature DNA Markers.....
 

	
             
 	
            3.
 	
            For Printcolor Products 3.1.3, which require joint development, Printcolor and ADNAS will share in Profits ***.  Companies will be responsible for their own costs of development.DaVita Inc. Employee Stock Purchase Plan

 Exhibit 10.1 
 DaVita Inc. 
 Employee Stock Purchase Plan 
 (As amended and restated effective May 29, 2007, subject to stockholder approval) 
 Article I 
 Purpose and Effective Date 
 The purpose of the Plan is to provide incentives for, and to encourage stock ownership by, Employees of DaVita Inc. or any of its Subsidiaries whose Employees
participate in the Plan in order to increase their proprietary interest in the success of the Company. 
 The effective date of this 2007 Amendment and
Restatement of the Plan is May 29, 2007. 
 Article II 
 Definitions 
 Whenever capitalized in the text, the following terms shall have the meanings set
forth below. 
  

	2.1	“Account” shall mean the account established pursuant to Section 3.5 below to hold a Participant’s contributions to the Plan.

  

	2.2	“Board” shall mean the Board of Directors of DaVita Inc. 

  

	2.3	“Code” shall mean the Internal Revenue Code of 1986, as amended. Reference to any specific section of the Code shall be deemed to be a reference to any
successor provision. 

  

	2.4	“Committee” shall mean the Compensation Committee of the Board or such other committee designated by the Board to administer the Plan.

  

	2.5	“Common Stock” shall mean the common stock of DaVita Inc. 

  

	2.6	“Company” shall mean DaVita Inc., a Delaware corporation, as well as any Subsidiary whose employees participate in the Plan with the consent of the Board.

  

	2.7	“Continuous Employment” shall mean employment without interruption by the Company. Employment shall not be considered interrupted because of:

  

	 	(a)	Transfers of employment between the Company and a Subsidiary (or vice versa) or between different Subsidiaries; or 

  

	 	(b)	Any Leave of Absence. 

  

	2.8	“Employee” shall mean a worker whose earnings the Company reports on a Form W-2. This term does not include members of the Board of Directors
unless they are employed by the Company in a position in addition to their duties as a director. 

  

 1 

	2.9	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

  

	2.10	“Fair Market Value” of Common Stock for any day shall be the last reported sale price on that day regular way, or if no such reported sale takes place on
that day, the average of the last reported bid and ask prices on that day regular way, in either case on the principal national securities exchange on which the Common Stock is admitted to trading or listed. If the national securities exchange is
closed on such date, the “Fair Market Value” shall be determined as of the last preceding day on which the Common Stock was traded or for which bid and ask prices are available. 

  

	2.11	“Insider” shall mean a Participant who is subject to Section 16 of the Exchange Act. 

  

	2.12	“Leave of Absence” shall mean an unpaid leave of absence taken in accordance with the Company’s leave of absence policy. A Participant will not be
considered to have incurred a break in Continuous Employment because of a Leave of Absence that does not exceed ninety (90) days. If the Leave of Absence exceeds ninety (90) days, the Participant will be deemed to have incurred a break in
Continuous Employment on the ninety-first (91st) day, unless the Participant’s rights to reemployment are guaranteed by statute or contract. 

  

	2.13	“Participant” shall mean an Employee who has been granted a Purchase Right under the Plan. 

  

	2.14	“Plan” shall mean the DaVita Inc. Employee Stock Purchase Plan. 

  

	2.15	“Plan Broker” shall mean a stock brokerage firm designated by the Committee to establish accounts for Common Stock purchased under the Plan by Participants.

  

	2.16	“Purchase Right” shall mean a right to purchase Common Stock granted pursuant to the Plan. 

  

	2.17	“Purchase Right Period” shall mean the period beginning on January 1 or July 1 (whichever is applicable) and terminating on the immediately
following December 31. (But see Section 4.3 below for special rules regarding the termination of a Purchase Right Period upon a Termination Event.) 

  

	2.18	“Stockholders” shall mean the holders of Common Stock. 

  

	2.19	“Subsidiary” shall mean any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if each of the corporations
(other than the last corporation in the unbroken chain) owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in the chain. 

  

 2 

 Article III 
 Eligibility and Participation 
  

	3.1	Eligibility. 

  

	 	(a)	All Employees of the Company who are scheduled to work at least twenty (20) hours per week are eligible to participate in the Plan, provided they have completed at least three
(3) months of Continuous Employment prior to the first day of the Purchase Right Period. 

  

	 	(b)	No Employee may be granted a Purchase Right if the Employee would immediately thereafter own, directly or indirectly, five percent (5%) or more of the combined voting power or
value of all classes of stock of the Company or of a Subsidiary. For this purpose, an Employee’s ownership interest shall be determined in accordance with the constructive ownership rules of Code Section 424(d). 

 

	3.2	Payroll Withholding. 

  

	 	(a)	Employees who have satisfied the eligibility conditions of Section 3.1 above may enroll as Participants by executing prior to the commencement of each Purchase Right Period a
form provided by the Company on which they designate: 

  

	 	(i)	The dollar amount (not a percentage of compensation) to be deducted from their paychecks and contributed to their Accounts for the purchase of Common Stock, which shall not
be less than ten dollars ($10.00) per payroll period; and/or 

  

	 	(ii)	The amount of funds, if any, which they will deposit at the beginning of the Purchase Right Period for the purchase of Common Stock. 

  

	 	(b)	Once selected, the rate of contributions for a Purchase Right Period cannot be decreased or increased without terminating the Purchase Right. However, pursuant to rules and
procedures prescribed by the Committee, a Participant may make additional contributions to make up for amounts that he or she failed to make while on a Leave of Absence if the Participant returns to active employment and contributes those amounts
before the end of the Purchase Right Period. 

  

 3 

	3.3	Limitations. 

  

	 	(a)	Notwithstanding anything herein to the contrary, a Participant may not accrue a right to purchase shares of Common Stock at a rate that exceeds twenty-five thousand dollars
($25,000.00) per calendar year, determined in a manner consistent with Code Section 423(b)(8). 

  

	 	(b)	This limitation shall apply to the Participant’s right to purchase Common Stock under the Plan and under all other employee stock purchase plans described in Code
Section 423 that are maintained by the Company and its Subsidiaries. 

  

	 	(c)	This dollar limitation applies to the Fair Market Value of Common Stock determined at the time the Purchase Right is granted. 

  

	3.4	Granting of Purchase Rights. The price at which each share covered by a Purchase Right will be purchased will in all instances be the lesser of:

  

	 	(a)	One hundred percent (100%) of the Fair Market Value of a share of Common Stock on the first day of the applicable Purchase Right Period; or 

  

	 	(b)	Eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the last day of that Purchase Right Period; 

 provided, however, that such price will in no event be less than the price required under Code Section 423(b)(6). 
  

	3.5	Establishment of Accounts. 

  

	 	(a)	All amounts contributed by the Participant to the Plan (whether by means of payroll withholding or a lump sum advance contribution) will be deposited into a separate Account
maintained for the Participant. 

  

	 	(b)	No interest will be earned on those contributions. 

  

	 	(c)	A Participant may not withdraw any amounts from his or her Account without terminating his or her Purchase Right pursuant to Section 4.1 below. 

  

 4 

 Article IV 
 Purchase Rights 
  

	4.1	Termination of Purchase Rights. 

  

	 	(a)	A Participant may withdraw from the Plan at any time prior to the last day of the Purchase Right Period by submitting a form provided by the Company to the People Services
Department of the Company. The Participant’s Purchase Right shall terminate upon withdrawal from the Plan. 

  

	 	(b)	A Purchase Right shall terminate automatically if the Participant holding the Purchase Right ceases to be employed by the Company for any reason (including death, disability, or
retirement) prior to the last day of the Purchase Right Period. 

  

	 	(c)	Upon the termination of a Purchase Right, all amounts held in the Participant’s Account shall be refunded to the Participant. 

  

	4.2	Exercise of Purchase Rights. 

  

	 	(a)	Unless previously terminated, Purchase Rights will be exercised automatically on the last day of the Purchase Right Period. 

  

	 	(b)	Except as provided in Section 3.2(b) above, payment for shares to be purchased at the termination of the Purchase Right Period may only be made from funds:

  

	 	(i)	Deposited at the beginning of a Purchase Right Period; and/or 

  

	 	(ii)	Accumulated through payroll deductions made during the Purchase Right Period. 

  

	 	(c)	If the balance of the Participant’s Account on the date of purchase exceeds the purchase price of the whole number of shares to be acquired, the surplus shall be applied to the
next Purchase Right Period, unless the Participant elects to receive a refund by submitting a form prescribed by the Committee to the People Services Department of the Company. 

  

	 	(d)	Following the end of each Purchase Right Period, the number of shares of Common Stock purchased by each Participant shall be deposited into an account established in the
Participant’s name at the Plan Broker, or otherwise transferred to or for the account of the Participant. 

  

 5 

	 	(e)	A Participant shall be free to make a disposition (as that term is defined in Code Section 424(c)) of the shares in the Participant’s account at the Plan Broker at any
time, whether by sale, exchange, gift, or other transfer of legal title, but in the absence of such a disposition of the shares, the shares must remain in the Participant’s account at the Plan Broker until the holding period set forth in Code
Section 423(a) has been satisfied. With respect to shares for which the holding period set forth in Code Section 423(a) has been satisfied, the Participant may move such shares to another brokerage account of the Participant’s choice
or request that such shares otherwise be transferred to or for the account of the Participant. (As of the effective date of this 2007 Amendment and Restatement of the Plan, the holding period set forth in Code Section 423(a) is the longer of
two (2) years after the first day of the Purchase Right Period and one (1) year after the last day of the Purchase Right Period during which the shares were purchased by the Participant.) 

  

	4.3	Termination Event. The following provisions of this Section 4.3 shall apply, notwithstanding anything herein to the contrary. 

  

	 	(a)	A “Termination Event” shall be deemed to occur as a result of (i) a transaction in which the Company will cease to be an independent publicly-owned corporation,
(ii) a sale or other disposition of all or substantially all of the assets of the Company, or (iii) a termination of the Plan. 

  

	 	(b)	The Purchase Right Period in which a Termination Event occurs shall terminate and all Purchase Rights shall be automatically exercised immediately preceding the Termination Event.
In the case of a Termination Event described in Section 4.3(a)(i) or 4.3(a)(ii) above, for purposes of determining the amount under Section 3.4(b), the Fair Market Value of the Common Stock on the last day of the Purchase Right Period
shall be deemed to be equal to the per share consideration received in the transaction by the holders of the Common Stock. 

  

	4.4	Non-Transferability of Purchase Rights. A Purchase Right may not be assigned or alienated. 

 Article V 
 Common Stock 
  

	5.1	Shares Subject to Plan. 

  

	 	(a)	 Effective May 29, 2007, the maximum number of shares of Common Stock which may be issued under the Plan is two million, five hundred thousand (2,500,000). The
number of these shares shall be subject to 

  

 6 

	 	 
adjustment pursuant to Section 5.2 below. 

  

	 	(b)	If any outstanding Purchase Right is terminated for any reason prior to its exercise, the shares allocable to the Purchase Right will again become subject to purchase under the
Plan. 

  

	 	(c)	The Common Stock issuable under the Plan may be previously unissued or may have been reacquired by the Company in the open market (or otherwise). 

  

	5.2	Adjustment Upon Changes in Capitalization. Subject to the provisions of Section 4.3 above, if the outstanding shares of Common Stock are increased, decreased, or
exchanged for different securities, through reorganization, merger, consolidation, recapitalization, reclassification, stock split, reverse stock dividend, or other similar transaction, a proportionate adjustment shall be made by the Committee to
the: 

  

	 	(a)	Number, price, and kind of shares subject to outstanding Purchase Rights; and 

  

	 	(b)	Maximum number and kind of shares that are available for issuance under the Plan. 

  

	5.3	Proration of Purchase Rights. Should the total number of shares of Common Stock to be purchased pursuant to outstanding Purchase Rights on any particular date exceed
the number of shares then available for issuance under the Plan: 

  

	 	(a)	The Committee shall make a pro-rata allocation of the available shares on a uniform and nondiscriminatory basis; and 

  

	 	(b)	The payroll deductions of each Participant, to the extent in excess of the aggregate purchase price payable for the Common Stock pro-rated to such individual, shall be refunded to
the Participant. 

 Article VI 
 Plan Administration 
  

	6.1	Administration. 

  

	 	(a)	The Plan shall be administered by the Committee. The Committee shall have authority to: 

  

	 	(i)	Interpret the Plan; 

  

	 	(ii)	Prescribe rules and procedures relating to the Plan; and 

  

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	 	(iii)	Take all other actions necessary or appropriate in connection with the administration of the Plan. 

  

	 	(b)	A majority of the members of the Committee shall constitute a quorum, and any action shall constitute the action of the Committee if it is authorized by a majority of the members:

  

	 	(i)	Present at any meeting; or 

  

	 	(ii)	In writing without a meeting. 

  

	 	(c)	All decisions of the Committee shall be final and binding on all Participants. 

  

	 	(d)	No member of the Committee shall be liable for any action or inaction taken in good faith with respect to the Plan or any Purchase Right granted under it. 

 

	6.2	Indemnification. 

  

	 	(a)	To the maximum extent permitted by law, the Company shall indemnify each member of the Committee and each other member of the Board, as well as any other Employee with duties under
the Plan, against expenses (including any amount paid in settlement or in satisfaction of a judgment) reasonably incurred by the individual in connection with any claims against the individual by reason of the performance of the individual’s
duties under the Plan. This indemnity shall not apply, however, if: 

  

	 	(i)	It is determined in the action, lawsuit, or proceeding that the individual is guilty of gross negligence or intentional misconduct in the performance of those duties; or

  

	 	(ii)	The individual fails to assist the Company in defending against any such claim. 

  

	 	(b)	Notwithstanding the above, the Company shall have the right to select counsel and to control the prosecution or defense of the suit. Furthermore, the Company shall not be obligated
to indemnify any individual for any amount incurred through any settlement or compromise of any action unless the Company consents in writing to the settlement or compromise. 

 Article VII 
 Amendment and Termination 
  

	7.1	 Amendment and Termination. The Board may amend or terminate the Plan at any time by means of written action, except with respect to outstanding
Purchase 

  

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Rights. However, the preceding sentence shall not limit the ability of the Company to terminate the plan in accordance with Section 4.3 above.

  

	7.2	Stockholder Approval. Within twelve (12) months after its adoption by the Board, the Stockholders must approve any amendment to the Plan that relates to:

  

	 	(a)	The class of individuals eligible to participate; and 

  

	 	(b)	The aggregate number of shares to be granted under the Plan. 

 Article VIII 
 Miscellaneous Matters 
  

	8.1	Uniform Rights and Privileges. The rights and privileges of all Participants under the Plan shall be the same. 

  

	8.2	Application of Proceeds. The proceeds received by the Company from the sale of Common Stock pursuant to Purchase Rights may be used for any corporate purpose.

  

	8.3	Notice of Disqualifying Disposition. A Participant must notify the Company if the Participant disposes of stock acquired pursuant to the Plan prior to the expiration
of the holding period set forth in Code Section 423(a) through any means other than through the Plan Broker. 

  

	8.4	No Additional Rights. 

  

	 	(a)	Neither the adoption of this Plan nor the granting of any Purchase Right shall: 

  

	 	(i)	Affect or restrict in any way the power of the Company to undertake any corporate action otherwise permitted under applicable law; or 

  

	 	(ii)	Confer upon any Participant the right to continue to be employed by the Company, nor shall it interfere in any way with the right of the Company to terminate the employment of any
Participant at any time, with or without cause. 

  

	 	(b)	No Participant shall have any rights as a Shareholder with respect to any shares covered by a Purchase Right granted to the Participant until the Common Stock is actually issued to
the Participant. 

  

	 	(c)	No adjustments will be made for cash dividends or other rights for which the record date is prior to the issuance of the Common Stock. 

  

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	8.5	Governing Law. 

  

	 	(a)	The Plan and all actions taken under it shall be governed by and construed in accordance with the laws of the State of Delaware. 

  

	 	(b)	The provisions of this Plan shall be interpreted in a manner that is consistent with this Plan satisfying the requirements of Code Section 423. 

  

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