Document:

2000 Stock Option Plan

 Exhibit 10.1 
  
 LUMERA CORPORATION 
  
 2000 STOCK OPTION PLAN 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	1.	  	Purpose	  	5
			
	2.	  	Administration	  	5
				
	 	  	2.1	  	 Procedures
	  	5
				
	 	  	2.2	  	 Powers
	  	5
				
	 	  	2.3	  	 Limited Liability
	  	6
				
	 	  	2.4	  	 Securities Exchange Act of 1934
	  	6
			
	3.	  	Stock Subject to This Plan	  	6
			
	4.	  	Eligibility	  	6
				
	 	  	4.1	  	 Optionees
	  	6
				
	 	  	4.2	  	 Subsidiaries
	  	6
			
	5.	  	Awards	  	6
				
	 	  	5.1	  	 Incentive Stock Options
	  	7
				
	 	  	5.2	  	 Non-Qualified Stock Options
	  	8
				
	 	  	5.3	  	 Vesting
	  	8
				
	 	  	5.4	  	 Nontransferability
	  	8
				
	 	  	5.5	  	 Termination of Options
	  	8
				
	 	  	 	  	 (a)    Generally
	  	8
				
	 	  	 	  	 (b)    For Cause; Resignation
	  	8
				
	 	  	 	  	 (c)    Retirement
	  	9
				
	 	  	 	  	 (d)    Disability
	  	9
				
	 	  	 	  	 (e)    Death
	  	9
				
	 	  	 	  	 (f)     Extension of Exercise Period Applicable to Termination
	  	10
				
	 	  	 	  	 (g)    Failure to Exercise Option
	  	10
				
	 	  	 	  	 (h)    Transfers; Leaves
	  	10

  

 -2- 

							
	6.	  	Exercise	  	10
				
	 	  	6.1	  	 Procedure
	  	10
				
	 	  	6.2	  	 Payment
	  	10
				
	 	  	6.3	  	 Withholding
	  	11
				
	 	  	6.4	  	 Conditions Precedent to Exercise
	  	11
			
	7.	  	Foreign Qualified Grants	  	11
			
	8.	  	Corporate Mergers, Acquisitions, Etc.	  	11
			
	9.	  	Holding Period	  	11
			
	10.	  	Option Agreements	  	11
			
	11.	  	Adjustments On Changes in Capitalization	  	11
				
	 	  	11.1	  	 Stock Splits, Capital Stock Adjustments
	  	11
				
	 	  	11.2	  	 Effect of Merger, Sale of Assets, Liquidation or Dissolution
	  	12
				
	 	  	 	  	 (a)    Mergers, Sale of Assets, Other Transactions
	  	12
				
	 	  	 	  	 (b)    Liquidation; Dissolution
	  	12
				
	 	  	11.3	  	 Fractional Shares
	  	12
				
	 	  	11.4	  	 Determination of Board to Be Final
	  	12
			
	12.	  	Securities Regulations	  	13
			
	13.	  	Amendment and Termination	  	13
				
	 	  	13.1	  	 Plan
	  	13
				
	 	  	13.2	  	 Options
	  	14
				
	 	  	13.3	  	 Automatic Termination
	  	14

  

 -3- 

							
	14.	  	Miscellaneous	  	14
				
	 	  	14.1	  	 Time of Granting Options
	  	14
				
	 	  	14.2	  	 No Status as Shareholder
	  	14
				
	 	  	14.3	  	 Status as an Employee
	  	14
				
	 	  	14.4	  	 Reservation of Shares
	  	14
			
	15.	  	Effectiveness of This Plan	  	15

  

 -4- 

 LUMERA CORPORATION 
  
 2000 STOCK OPTION PLAN 
  
 1. Purpose. The purpose of the 2000 Stock Option Plan (the “Plan”) is to provide a means by which Lumera Corporation (the “Company”), may
attract, reward, and retain the services or advice of current or future employees, officers, directors, and agents of the Company and to provide added incentives to them by encouraging stock ownership in the Company. 
  
 2. Administration. This Plan shall be administered by the Board of Directors of the
Company (the “Board”) or, if the Board shall authorize a committee to administer this Plan, by such committee to the extent so authorized; provided, however, that only the Board of Directors may suspend, amend or terminate this Plan as
provided in Section 13, and provided further that a committee that includes officers of the Company shall not be permitted to grant options to persons who are officers of the Company. The administrator of this Plan is referred to as the “Plan
Administrator.” 
  
 2.1 Procedures. The Board of
Directors shall designate one member of the Plan Administrator as chairman. The Plan Administrator may hold meetings at such times and places as it shall determine. The acts of a majority of the members of the Plan Administrator present at meetings
at which a quorum exists, or acts approved in writing by all Plan Administrator members, shall constitute valid acts of the Plan Administrator. 
  
 2.2 Powers. Subject to the specific provisions of this Plan, the Plan Administrator shall have the authority, in its discretion: (a) to grant the
stock options described in Section 5, including Incentive Stock Options and Non-Qualified Stock Options, and to designate each option granted as an Incentive Stock Option or a Non-Qualified Stock Option; (b) to determine, in accordance with Section
5.1(f) of this Plan, the fair market value of the shares of Common Stock subject to options; (c) to determine the exercise price per share of options; (d) to determine the Optionees to whom, and the time or times at which, options shall be granted
and the number of shares of Common Stock to be represented by each option; (e) to interpret this Plan; (f) to prescribe, amend and rescind rules and regulations relating to this Plan; (g) to determine the terms and provisions of each option granted
(which need not be identical) and, with the consent of the Optionee, modify or amend each option; (h) to reduce the exercise price per share of outstanding and unexercised options; (i) to defer, with the consent of the Optionee, or to accelerate the
exercise date of any option; (j) to waive or modify any term or provision contained in any option applicable to the underlying shares of Common Stock; (k) to authorize any person to execute on behalf of the Company any instrument required to
effectuate the grant of an option previously granted by the Plan Administrator; and (1) to make all other determinations deemed necessary or advisable for the administration of this Plan. The interpretation and construction by the Plan Administrator
of any terms or provisions of this Plan, any option issued hereunder or of any rule or regulation promulgated in connection herewith and all actions taken by the Plan Administrator shall be conclusive and binding on all interested parties. The Plan
Administrator may delegate administrative functions to individuals who are officers or employees of the Company. 
  

 -5- 

 2.3 Limited Liability. No member of the Board of Directors or the Plan Administrator or officer of
the Company shall be liable for any action or inaction of the entity or body, or another person or, except in circumstances involving bad faith, of himself or herself. Subject only to compliance with the explicit provisions hereof, the Board of
Directors and Plan Administrator may act in their absolute discretion in all matters related to the Plan. 
  
 2.4 Securities Exchange Act of 1934. At any time that the Company has a class of securities registered pursuant to Section 12 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), this Plan shall be administered in accordance with Rule 16b-3 adopted under the Exchange Act and Section 162(m) of the Internal Revenue Code of 1986, as amended, and the regulations,
proposed and final, thereunder, as all may be amended from time to time, and each member of the Plan Administrator shall be a “non-employee director” and an “outside director” within the meaning of such Rule 16b-3 and Section
162(m), respectively. 
  
 3. Stock Subject to This Plan. Subject to
adjustment as provided below and in Section 11 hereof, the stock subject to this Plan shall be the Company’s Class A common stock (the “Common Stock”), and the total number of shares of Common Stock to be delivered on the exercise of
all options granted under this Plan shall not exceed 3,000,000, as such Common Stock was constituted on the date on which this Plan was last amended by the Board as set forth on the last page hereof. If any option granted under this Plan expires, is
surrendered, exchanged for another option, canceled or terminated for any reason without having been exercised in full, the unpurchased shares subject thereto shall again be available for purposes of this Plan, including for replacement options that
may be granted in exchange for such surrendered, canceled or terminated options. Shares issued on exercise of options granted under this Plan may be subject to restrictions on transfer, repurchase rights or other restrictions as determined by the
Plan Administrator. 
  
 4. Eligibility. 
  
 4.1 Optionees. The Plan Administrator may award options to any current
or future employee, officer, director, or agent of the Company or its subsidiaries. Any party to whom an option is granted under this Plan is referred to as an “Optionee.” 
  
 4.2 Subsidiaries. As used in this Plan, the term “subsidiary” of a company shall include any corporation in
which such company owns, directly or indirectly, at the time of the grant of an option hereunder, stock having 50% or more of the total combined voting power of all classes of stock thereof. 
  
 5. Awards. The Plan Administrator, from time to time, may take the following actions,
separately or in combination, under this Plan: (a) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), to any employee of the Company or its subsidiaries, as provided in
Section 5.1 of this Plan; (b) grant options other than Incentive Stock Options (“Non-Qualified Stock Options”), as provided in Section 5.2 of this Plan; (c) grant options to officers, employees and others in foreign jurisdictions, as
provided in Section 7 of this Plan; and (d) grant options in certain acquisition transactions, as provided in Section 8 of this Plan. No employee may be granted options to acquire more than 100,000 shares in any fiscal year of the Company.

  

 -6- 

 5.1 Incentive Stock Options. Incentive Stock Options shall be subject to the following terms and
conditions: 
  
 (a) Incentive Stock Options may
be granted under this Plan only to employees of the Company or its subsidiaries, including employees who are directors. 
  
 (b) No employee may be granted Incentive Stock Options under this Plan to the extent that the aggregate fair market value, on the date of
grant, of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by that employee during any calendar year, under this Plan and under any other incentive stock option plan (within the meaning of Section 422
of the Code) of the Company or any subsidiary, exceeds $100,000. To the extent that any option designated as an Incentive Stock Option exceeds the $100,000 limit, such option shall be treated as a Non-Qualified Stock Option. In making this
determination, options shall be taken into account in the order in which they were granted, and the fair market value of the shares of Common Stock shall be determined as of the time that the option with respect to such shares was granted.

  
 (c) An Incentive Stock Option may be granted
under this Plan to an employee possessing more than 10% of the total combined voting power of all classes of stock of the Company (as determined pursuant to the attribution rules contained in Section 424(d) of the Code) only if the exercise price is
at least 110% of the fair market value of the Common Stock subject to the option on the date the option is granted, as described in Section 5.1(f) of this Plan, and only if the option by its terms is not exercisable after the expiration of five
years from the date it is granted. 
  
 (d) Except
as provided in Section 5.5 of this Plan, no Incentive Stock Option granted under this Plan may be exercised unless at the time of such exercise the Optionee is employed by the Company or any subsidiary of the Company and the Optionee has been so
employed continuously since the date such option was granted. 
  
 (e) Subject to Sections 5.1.(c) and 5.1.(d) of this Plan, Incentive Stock Options granted under this Plan shall continue in effect for the period fixed by the Plan Administrator, except that no Incentive Stock Option
shall be exercisable after ten years from the date it is granted. 
  
 (f) The exercise price shall not be less than 100% of the fair market value of the shares of Common Stock covered by the Incentive Stock Option at the date the option is granted. The fair market value of shares shall
be the closing price per share of the Common Stock on the date of grant as reported on a securities quotation system or stock exchange. If such shares are not so reported or listed, the Plan Administrator shall determine the fair market value of the
shares of Common Stock in its discretion. 
  
 (g)
The provisions of clauses (b) and (c) of this Section shall not apply if either the applicable sections of the Code or the regulations thereunder are amended so as to change or eliminate such limitations or to permit appropriate modifications of
those requirements by the Plan Administrator. 
  

 -7- 

 5.2 Non-Qualified Stock Options. Non-Qualified Stock Options shall be subject to the following
terms and conditions: 
  
 (a) The exercise price
may be more or less than or equal to the fair market value of the shares of Common Stock covered by the Non-Qualified Stock Option on the date the option is granted, and the exercise price may fluctuate based on criteria determined by the Plan
Administrator. The fair market value of shares of Common Stock covered by a Non-Qualified Stock Option shall be determined by the Plan Administrator, as described in Section 5.1(f). 
  
 (b) Unless otherwise established by the Plan Administrator, any Non-Qualified Stock Option shall terminate
ten years after the date it is granted. 
  
 5.3 Vesting. To
ensure that the Company will achieve the purposes of and receive the benefits contemplated in this Plan, any option granted to any Optionee hereunder shall be exercisable according to the vesting schedule, if any, established by the Plan
Administrator and set forth in the Option Agreement (as defined in Section 10 hereof) between the Company and each Optionee. 
  
 5.4 Nontransferability. Options granted under this Plan and the rights and privileges conferred hereby may not be transferred, assigned, pledged or
hypothecated in any manner (whether by operation of law or otherwise) other than by will or by the applicable laws of descent and distribution, shall not be subject to execution, attachment or similar process, and shall be exercisable during the
Optionee’s lifetime only by the Optionee. Any purported transfer or assignment in violation of this provision shall be void. 
  
 5.5 Termination of Options. 
  
 (a) Generally. Unless otherwise determined by the Plan Administrator or specified in the Optionee’s Option Agreement, if the
Optionee’s employment or service with the Company terminates for any reason other than for cause, resignation in lieu of dismissal, retirement, disability or death, and unless by its terms the option sooner terminates or expires, then the
Optionee may exercise, for a three-month period, that portion of the Optionee’s option that was exercisable at the time of such termination of employment or service (provided the conditions of Section 6.4 and any other conditions specified in
the Option Agreement shall have been met by the date of exercise of such option). 
  
 (b) For Cause; Resignation. 
  
 (i) If an Optionee is terminated for cause or resigns in lieu of dismissal, any option granted hereunder shall be deemed to have
terminated as of the time of the first act that led or would have led to the termination for cause or resignation in lieu of dismissal, and such Optionee shall thereupon have no right to purchase any shares of Common Stock pursuant to the exercise
of such option, and any such exercise shall be null and void. Termination for “cause” shall include (i) the violation by the Optionee of any reasonable rule or policy of the Board of Directors or the Optionee’s superiors or the chief
executive officer or the chief operating officer of the Company that results in damage to the Company or which, after notice to do so, the Optionee fails to correct within a reasonable time; (ii) any willful misconduct or gross negligence by the
Optionee in the responsibilities assigned to him or her; (iii) any willful failure 

  

 -8- 

 
to perform his or her job as required to meet the objectives of the Company; (iv) any wrongful conduct of an Optionee that has an adverse impact on the
Company or that constitutes a misappropriation of the assets of the Company; (v) unauthorized disclosure of confidential information; or (vi) the Optionee’s performing services for any other company or person that competes with the Company
while he or she is employed by or provides services to the Company, without the written approval of the chief executive officer of the Company. “Resignation in lieu of dismissal” shall mean a resignation by an Optionee of employment with
or service to the Company if (i) the Company has given prior notice to such Optionee of its intent to dismiss the Optionee for circumstances that constitute cause, or (ii) within two months of the Optionee’s resignation, the chief operating
officer or the chief executive officer of the Company or the Board of Directors determines, which determination shall be final and binding, that such resignation was related to an act that would have led to a termination for cause. 
  
 (ii) If an Optionee resigns from the Company, the right of
the Optionee to exercise his or her option shall be suspended for a period of two months from the date of resignation, unless the chief executive officer of the Company or the Board of Directors determines otherwise in writing. Thereafter, unless
there is a determination that the Optionee resigned in lieu of dismissal, the option may be exercised at any time before the earlier of (i) the expiration date of the option (which shall have been similarly suspended) or (ii) the expiration of three
months after the date of resignation, for that portion of the Optionee’s option that was exercisable at the time of such resignation (provided the conditions of Section 6.4 and any other conditions specified in the Option Agreement shall have
been met at the date of exercise of such option). 
  
 (c) Retirement. Unless otherwise determined by the Plan Administrator, if an Optionee’s employment or service with the Company is terminated with the Company’s approval for reasons of age, the Option may be exercised at any
time before the earlier of (a) the expiration date of the option or (b) the expiration of three months after the date of such termination of employment or service, for that portion of the Optionee’s option that was exercisable at the time of
such termination of employment or service (provided the conditions of Section 6.4 and any other conditions specified in the Option Agreement shall have been met at the date of exercise of such option). 
  
 (d) Disability. Unless otherwise determined by the
Plan Administrator, if an Optionee’s employment or relationship with the Company terminates because of a permanent and total disability (as defined in Section 22(e)(3) of the Code), the option may be exercised at any time before the earlier of
(a) the expiration date of the option or (b) the expiration of 12 months after the date of such termination, for up to the full number of shares of Common Stock covered thereby, including any portion not yet vested (provided the conditions of
Section 6.4 and any other conditions specified in the Option Agreement shall have been met by the date of exercise of such option). 
  
 (e) Death. Unless otherwise determined by the Plan Administrator, in the event of the death of an Optionee while employed by or
providing service to the Company, the option may be exercised at any time before the earlier of (a) the expiration date of the option or (b) the expiration of 12 months after the date of death by the person or persons to whom such Optionee’s
rights under the option shall pass by the Optionee’s will or by the applicable laws of 

  

 -9- 

 
descent and distribution, for up to the full number of shares of Common Stock covered thereby, including any portion not yet vested (provided the conditions
of Section 6.4 and any other conditions specified in the Option Agreement shall have been met by the date of exercise of such option). 
  
 (f) Extension of Exercise Period Applicable to Termination. The Plan Administrator, at the time of grant or at any time thereafter,
may extend the one-month, three-month and 12-month exercise periods to any length of time not longer than the original expiration date of the option, and may increase the portion of an option that is exercisable, subject to such terms and conditions
as the Plan Administrator may determine; provided, that any extension of the exercise period or other modification of an Incentive Stock Option shall be subject to the written agreement and acknowledgment by the Optionee that the extension or
modification disqualifies the option as an Incentive Stock Option. 
  
 (g) Failure to Exercise Option. To the extent that the option of any deceased Optionee or of any Optionee whose employment or service terminates is not exercised within the applicable period, all rights to
purchase shares of Common Stock pursuant to such options shall cease and terminate. 
  
 (h) Transfers; Leaves. For purposes of this Section 5.5, a transfer of employment or other relationship between or among the
Company and/or any subsidiaries shall not be deemed to constitute a termination of employment or other cessation of relationship with the Company or any of its subsidiaries. For purposes of this Section 5.5, with respect to Incentive Stock Options,
employment shall be deemed to continue while the Optionee is on military leave, sick leave or other bona fide leave of absence (as determined by the Plan Administrator) in accordance with the policies of the Company. 
  
 6. Exercise. 
  
 6.1 Procedure. Subject to the provisions of Section 5.3 above, each option may be exercised in whole or in part;
provided, however, that no fewer than 100 shares (or the remaining shares then purchasable under the option, if less than 100 shares) may be purchased on any exercise of any option granted hereunder and that only whole shares will be issued pursuant
to the exercise of any option (the number of 100 shares shall not be changed by any transaction or action described in Section 8 or Section 11 unless the Plan Administrator determines that such a change is appropriate). Options shall be exercised by
delivery to the Secretary of the Company or his or her designated agent of notice of the number of shares with respect to which the option is exercised, together with payment in full of the exercise price and any applicable withholding taxes.

  
 6.2 Payment. Payment of the option exercise price shall
be made in full when the notice of exercise of the option is delivered to the Secretary of the Company or his or her designated agent and shall be in cash or bank certified or cashier’s check or through irrevocable instructions to a stock
broker to deliver the amount of sales proceeds necessary to pay the appropriate exercise price and withholding tax obligations, all in accordance with applicable governmental regulations, for the shares of Common Stock being purchased. The Plan
Administrator may determine at the time the option is granted for Incentive Stock Options, or at 

  

 -10- 

 
any time before exercise for Non-Qualified Stock Options, that additional forms of payment will be permitted. 
  
 6.3 Withholding. Before the issuance of shares of Common Stock on the
exercise of an option, the Optionee shall pay to the Company the amount of any applicable federal, state or local tax withholding obligations. The Company may withhold any distribution in whole or in part until the Company is so paid. The Company
shall have the right to withhold such amount from any other amounts due or to become due from the Company to the Optionee, including salary (subject to applicable law) or to retain and withhold a number of shares having a market value not less than
the amount of such taxes required to be withheld by the Company to reimburse it for any such taxes and cancel (in whole or in part) any such shares so withheld. 
  

6.4 Conditions Precedent to Exercise. The Plan Administrator may establish conditions precedent to the exercise of any option, which shall be
described in the relevant Option Agreement. 
  
 7. Foreign Qualified Grants
Options under this Plan may be granted to officers and employees of the Company and other persons described in Section 4 who reside in foreign jurisdictions as the Plan Administrator may determine from time to time. The Board of Directors may adopt
supplements to the Plan as needed to comply with the applicable laws of such foreign jurisdictions and to give Optionees favorable treatment under such laws; provided, however, that no award shall be granted under any such supplement on terms more
beneficial to such Optionees than those permitted by this Plan. 
  
 8.
Corporate Mergers, Acquisitions, Etc. The Plan Administrator may also grant options under this Plan having terms, conditions and provisions that vary from those specified in this Plan provided that such options are granted in substitution
for, or in connection with the assumption of, existing options granted, awarded or issued by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a transaction involving a corporate
merger, consolidation, acquisition of property or stock, reorganization or liquidation to which the Company is a party. 
  
 9. Holding Period. Unless otherwise determined by the Plan Administrator, if a person subject to Section 16 of the Exchange Act exercises an option within six
months of the date of grant of the option, the shares of Common Stock acquired on exercise of the option may not be sold until six months after the date of grant of the option. 
  
 10. Option Agreements. Options granted under this Plan shall be evidenced by written stock option agreements (the “Option
Agreements”) that shall contain such terms, conditions, limitations and restrictions as the Plan Administrator shall deem advisable and that are consistent with this Plan. All Option Agreements shall include or incorporate by reference the
applicable terms and conditions contained in this Plan. 
  
 11. Adjustments On
Changes in Capitalization. 
  
 11.1 Stock Splits, Capital
Stock Adjustments. The aggregate number and class of shares for which options may be granted under this Plan, the number and class of shares covered by each outstanding option and the exercise price per share thereof (but not the total price),
and 

  

 -11- 

 
each such option, shall all be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock of the Company resulting
from a stock split, stock dividend or consolidation of shares or any like capital stock adjustment. 
  
 11.2 Effect of Merger, Sale of Assets, Liquidation or Dissolution. 
  
 (a) Mergers, Sale of Assets, Other Transactions. In the event of a merger, consolidation or plan of
exchange to which the Company is a party or a sale of all or substantially all of the Company’s assets (each, a “Transaction”), the Board of Directors, in its sole discretion and to the extent possible under the structure of the
Transaction, shall select one of the following alternatives for treating outstanding options under this Plan: 
  
 (i) Outstanding options shall remain in effect in accordance with their terms; 
  
 (ii) Outstanding options shall be converted into options to
purchase stock in the corporation that is the surviving or acquiring corporation in the Transaction. The amount, type of securities subject thereto and exercise price of the converted options shall be determined by the Board of Directors of the
Company, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if any, used in determining shares of the surviving corporation to be issued to holders of shares of the Company. Unless otherwise
determined by the Board of Directors, the converted options shall be vested only to the extent that the vesting requirements relating to options granted hereunder have been satisfied; 
  
 (iii) The Board of Directors provides a period before the consummation of the Transaction during which
outstanding options shall be exercisable to the extent vested and, on the expiration of such period, all unexercised options shall immediately terminate. The Board of Directors, in its sole discretion, may accelerate the vesting of such options so
that they are exercisable in full during such period; or 
  
 (iv) The Board of Directors shall take such other action with respect to outstanding options as the Board deems to be in the best interests of the Company. 
  
 (b) Liquidation; Dissolution. If the Company is
liquidated or dissolved, options shall be treated in accordance with Section 11.2(a)(iii). 
  
 11.3 Fractional Shares. If the number of shares covered by any option is adjusted, any fractional shares resulting from such adjustment shall be disregarded and each such option shall cover only the number of
full shares resulting from such adjustment. 
  
 11.4
Determination of Board to Be Final All adjustments under this Section 11 shall be made by the Board of Directors, and its determination as to what adjustments shall be made, and the extent thereof, shall be final, binding and conclusive.
Unless an Optionee agrees otherwise, any change or adjustment to an Incentive Stock Option shall be made, if possible, in such a manner so as not to constitute a “modification,” as defined in Section 424(h) of the Code, and so as not to
cause the Optionee’s Incentive Stock Option to fail to continue to qualify as an Incentive Stock Option. 
  

 -12- 

 12. Securities Regulations. 
  
 Shares of Common Stock shall not be issued with respect to an option granted under this Plan unless the exercise of such
option and the issuance and delivery of such shares pursuant thereto shall comply with all relevant provisions of law, including, without limitation, any applicable state securities laws, the Securities Act of 1933, as amended, the Exchange Act, the
rules and regulations promulgated thereunder, applicable laws of foreign countries and other jurisdictions and the requirements of any quotation service or stock exchange on which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance, including the availability of an exemption from registration for the issuance and sale of any shares hereunder. The inability of the Company to obtain, from any regulatory body
having jurisdiction, the authority deemed by the Company’s counsel to be necessary for the lawful issuance and sale of any shares hereunder or the unavailability of an exemption from registration for the issuance and sale of any shares
hereunder shall relieve the Company of any liability with respect of the nonissuance or sale of such shares as to which such requisite authority shall not have been obtained. 
  
 As a condition to the exercise of an option, the Company may require the Optionee to represent and warrant at the time of
any such exercise that the shares of Common Stock are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any
relevant provision of the aforementioned laws. The Company may place a stop-transfer order against any shares of Common Stock on the official stock books and records of the Company, and a legend may be stamped on stock certificates to the effect
that the shares of Common Stock may not be pledged, sold or otherwise transferred unless an opinion of counsel is provided (concurred in by counsel for the Company) stating that such transfer is not in violation of any applicable law or regulation.
The Plan Administrator may also require such other action or agreement by the Optionees as may from time to time be necessary to comply with the federal and state securities laws. THIS PROVISION SHALL NOT OBLIGATE THE COMPANY TO UNDERTAKE
REGISTRATION OF THE OPTIONS OR STOCK THEREUNDER. 
  
 If any of the
Company’s capital stock of the same class as the Common Stock subject to options granted hereunder is listed on a national securities exchange, all shares of Common Stock issued hereunder if not previously listed on such exchange shall be
authorized by that exchange for listing thereon before the issuance thereof. 
  
 13. Amendment and Termination. 
  
 13.1
Plan. The Board of Directors may at any time suspend, amend or terminate this Plan, provided that, except as set forth in Section 8, the approval of the Company’s shareholders is necessary within twelve months before or after the
adoption by the Board of Directors of any amendment that will: 
  
 (a) increase the number of shares of Common Stock to be reserved for the issuance of options under this Plan; 
  

 -13- 

 (b) permit the granting of stock options to a class of persons other than those now
permitted to receive stock options under this Plan; or 
  
 (c) require shareholder approval under applicable law, including Section 16(b) of the Exchange Act. 
  
 13.2 Options. Subject to the requirements of Section 422 of the Code with respect to Incentive Stock Options and to the terms and conditions and
within the limitations of this Plan, the Plan Administrator may modify or amend outstanding options granted under this Plan. The modification or amendment of an outstanding option shall not, without the consent of the Optionee, impair or diminish
any of his or her rights or any of the obligations of the Company under such option. Except as otherwise provided in this Plan, no outstanding option shall be terminated without the consent of the Optionee. Unless the Optionee agrees otherwise, any
changes or adjustments made to outstanding Incentive Stock Options granted under this Plan shall be made in such a manner so as not to constitute a “modification,” as defined in Section 425(h) of the Code, and so as not to cause any
Incentive Stock Option issued hereunder to fail to continue to qualify as an Incentive Stock Option as defined in Section 422(b) of the Code. 
  
 13.3 Automatic Termination. Unless sooner terminated by the Board of Directors, this Plan shall terminate ten years from the date on which this
Plan is adopted by the Board. No option may be granted after such termination or during any suspension of this Plan. The amendment or termination of this Plan shall not, without the consent of the Optionee, alter or impair any rights or obligations
under any option theretofore granted under this Plan. 
  
 14.
Miscellaneous. 
  
 14.1 Time of Granting Options.
The date of grant of an option shall, for all purposes, be the date on which the Company completes the required corporate action relating to the grant of an option; the execution of an Option Agreement and the conditions to the exercise of an option
shall not defer the date of grant. 
  
 14.2 No Status as
Shareholder. Neither the Optionee nor any party to which the Optionee’s rights and privileges under the option may pass shall be, or have any of the rights or privileges of, a shareholder of the Company with respect to any of the shares of
Common Stock issuable on the exercise of any option granted under this Plan unless and until such option has been exercised and the issuance (as evidenced by the appropriate entry on the books of the Company or duly authorized transfer agent of the
Company) of the stock certificate evidencing such shares. 
  
 14.3
Status as an Employee. Nothing in this Plan or in any option granted pursuant to this Plan shall confer on any Optionee any right to continue in the employ of the Company, or to interfere in any way with the right of the Company to terminate
his or her employment or other relationship with the Company at any time. 
  
 14.4 Reservation of Shares. The Company, during the term of this Plan, at all times will reserve and keep available such number of shares of Common Stock as shall be sufficient to satisfy the requirements of
this Plan. 
  

 -14- 

 15. Effectiveness of This Plan. This Plan shall become effective on the date on which it is adopted by the Board
of Directors of the Company. No option granted under this Plan to any officer or director of the Company shall become exercisable until the Plan is approved by the shareholders, and any option granted before such approval shall be conditioned on and
is subject to such approval. 
  
 Adopted by the Board of Directors on October 13,
2000. 
  
 Approved by the shareholders on October l3, 2000. 
  

 -15-2004 Equity Incentive Plan

 Exhibit 10.2 
  
 LUMERA CORPORATION 
 2004 EQUITY INCENTIVE PLAN 
  
 1. DEFINED TERMS 

 
 Exhibit A, which is incorporated by reference, defines the terms used in
the Plan and sets forth certain operational rules related to those terms. 
  
 2. PURPOSE 
  
 The Plan has been established to
advance the interests of the Company by providing for the grant to Participants of Stock-based and other incentive Awards. 
  
 3. ADMINISTRATION 
  
 The Administrator has discretionary authority, subject only to the express provisions of the Plan, to interpret the Plan; determine eligibility for and
grant Awards; determine, modify or waive the terms and conditions of any Award; prescribe forms, rules and procedures; and otherwise do all things necessary to carry out the purposes of the Plan. In the case of any Award intended to be eligible for
the performance-based compensation exception under Section 162(m), the Administrator will exercise its discretion consistent with qualifying the Award for that exception. Determinations of the Administrator made under the Plan will be conclusive and
will bind all parties. 
  
 4. LIMITS ON AWARDS UNDER THE PLAN 

 
 (a) Number of Shares. The maximum number of shares of Stock
that may be delivered in satisfaction of Awards under the Plan shall be 2,000,000 plus an annual increase, effective as of the first day of the Company’s fiscal year beginning in 2005 and the first day of each subsequent fiscal year prior to
termination of the Plan, equal to the least of (i) 2,000,000 shares, or (ii) 13.4% of the number of shares of Stock outstanding as of the Company’s immediately preceding fiscal year, or (iii) such lesser amount, if any, as the
Board may determine. The number of shares of Stock delivered in satisfaction of Awards shall, for purposes of the immediately preceding sentence, be determined net of shares of Stock withheld by the Company, or tendered to the Company, in payment of
the exercise price of the Award or in satisfaction of tax withholding requirements with respect to the Award. Subject to such overall maximum, up to 21,000,000 shares of Stock may be issued upon the exercise of ISOs and up to 21,000,000 shares of
Stock may be issued with respect to Stock Options that are not ISOs. The limits set forth in the preceding sentence shall be construed to comply with Section 422 of the Code and regulations thereunder. To the extent consistent with the
requirements of Section 422 of the Code and regulations thereunder, and with other applicable legal requirements (including applicable stock exchange and Nasdaq requirements), Stock issued under awards that convert, replace or adjust awards of
an acquired company shall not reduce the number of shares available for Awards under the Plan. 

 (b) Type of Shares. Stock delivered by the Company under the Plan may be authorized but
unissued Stock or previously issued Stock acquired by the Company. No fractional shares of Stock will be delivered under the Plan. 
  
 (c) Section 162(m) Limits. The maximum number of shares of Stock for which Stock Options may be granted to any person in any calendar year
and the maximum number of shares of Stock subject to SARs granted to any person in any calendar year will each be 2,000,000. The maximum number of shares subject to other awards granted to any person in any calendar year will be 1,000,000 shares.
The maximum amount payable to any person in any year under Cash Awards will be $5,000,000. The foregoing provisions will be construed in a manner consistent with Section 162(m).
 
  
 5.
ELIGIBILITY AND PARTICIPATION 
  
 The Administrator will
select Participants from among those key Employees and directors of, and consultants and advisors to, the Company or its Affiliates who, in the opinion of the Administrator, are in a position to make a significant contribution to the success of the
Company and its Affiliates. Eligibility for ISOs is limited to employees of the Company or of a “parent corporation” or “subsidiary corporation” of the Company as those terms are defined in Section 424 of the Code. 
  
 6. RULES APPLICABLE TO AWARDS 
  
 (a) ALL AWARDS 
  
 (1) Award Provisions. The Administrator will
determine the terms of all Awards, subject to the limitations provided herein. By accepting any Award granted hereunder, the Participant agrees to the terms of the Award and the Plan. Notwithstanding any provision of this Plan to the contrary,
awards that convert, replace or adjust awards of an acquired company may contain terms and conditions that are inconsistent with the terms and conditions specified herein, as determined by the Administrator. 
  
 (2) Term of Plan. No Awards may be made after
May 1, 2014, but previously granted Awards may continue in accordance with their terms beyond that date. 
  
 (3) Transferability. Neither ISOs nor, except as the Administrator otherwise expressly provides, other Awards may be
transferred other than by will or by the laws of descent and distribution, and during a Participant’s lifetime ISOs (and, except as the Administrator otherwise expressly provides, other non-transferable Awards requiring exercise) may be
exercised only by the Participant. 
  
 (4)
Vesting, Etc. The Administrator may determine the time or times at which an Award will vest or become exercisable and the terms on which an Award requiring exercise will remain exercisable. Without limiting the foregoing, the
Administrator may at any time accelerate the vesting or exercisability of an Award, regardless of any adverse or potentially adverse tax consequences resulting from such acceleration. The following will apply unless the Administrator expressly
provides otherwise: Immediately upon the cessation of the Participant’s 
  

 -2- 

 Employment an Award requiring exercise will cease to be exercisable and will terminate, and all other
Awards to the extent not already vested will be forfeited, except that: 
  
 (A) subject to (B) and (C) below, all Stock Options and SARs held by the Participant or the Participant’s permitted transferee, if any, immediately prior to the cessation of the Participant’s Employment, to
the extent then exercisable, will remain exercisable for the lesser of (i) a period of three months or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and
will thereupon terminate; 
  
 (B) all Stock
Options and SARs held by a Participant or the Participant’s permitted transferee, if any, immediately prior to the Participant’s death, to the extent then exercisable, will remain exercisable for the lesser of (i) the one year period
ending with the first anniversary of the Participant’s death or (ii) the period ending on the latest date on which such Stock Option or SAR could have been exercised without regard to this Section 6(a)(4), and will thereupon terminate; and

  
 (C) all Stock Options and SARs held by a
Participant or the Participant’s permitted transferee, if any, immediately prior to the cessation of the Participant’s Employment will immediately terminate upon such cessation if the Administrator in its sole discretion determines that
such cessation of Employment has resulted for reasons which cast such discredit on the Participant as to justify immediate termination of the Award. 
  
 (5) Taxes. The Administrator will make such provision for the withholding of taxes as it deems necessary. The Administrator
may, but need not, hold back shares of Stock from an Award or permit a Participant to tender previously owned shares of Stock in satisfaction of tax withholding requirements (but not in excess of the minimum withholding required by law). 

 
 (6) Dividend Equivalents, Etc. The
Administrator may provide for the payment of amounts in lieu of cash dividends or other cash distributions with respect to Stock subject to an Award. 
  
 (7) Rights Limited. Nothing in the Plan will be construed as giving any person the right to continued employment or service
with the Company or its Affiliates, or any rights as a stockholder except as to shares of Stock actually issued under the Plan. The loss of existing or potential profit in Awards will not constitute an element of damages in the event of termination
of employment or service for any reason, even if the termination is in violation of an obligation of the Company or Affiliate to the Participant. 
  
 (8) Section 162(m). This Section 6(a)(8) applies to any Performance Award intended to qualify as performance-based
for the purposes of Section 162(m) other than (i) a Stock Option or SAR, or (ii) an Award satisfying the transition-rule requirements of Treas. Regs. § 1.162-27(f)(1)-(3). In the case of any Performance Award to which this Section 6(a)(8)
applies, the Plan and such Award will be construed to the maximum extent permitted by law in a manner consistent with qualifying the Award for such exception. With respect to such 
  

 -3- 

 Performance Awards, the Administrator will preestablish, in writing, one or more specific Performance Criteria no later
than 90 days after the commencement of the period of service to which the performance relates (or at such earlier time as is required to qualify the Award as performance-based under Section 162(m)). Prior to grant, vesting or payment of the
Performance Award, as the case may be, the Administrator will certify whether the applicable Performance Criteria have been attained and such determination will be final and conclusive. 
  
 (b) AWARDS REQUIRING EXERCISE 
  
 (1) Time And Manner Of Exercise. Unless the Administrator expressly provides otherwise, an
Award requiring exercise by the holder will not be deemed to have been exercised until the Administrator receives a notice of exercise (in form acceptable to the Administrator) signed by the appropriate person and accompanied by any payment required
under the Award. If the Award is exercised by any person other than the Participant, the Administrator may require satisfactory evidence that the person exercising the Award has the right to do so. No Award requiring exercise will be exercisable
more than ten years after the date of grant. 
  
 (2) Exercise Price. The Administrator will determine the exercise price (or the base value from which appreciation is to be measured, in the case of an SAR) of each Award requiring exercise. However, the exercise price or base
value, as the case may be, may not be less than the fair market value of the Stock subject to the Award, determined as of the date of grant. No such Award, once granted, may be repriced other than in accordance with applicable stock exchange or
Nasdaq stockholder approval requirements. 
  
 (3) Payment Of Exercise Price. Where the exercise of an Award is to be accompanied by payment, the Administrator may determine the required or permitted forms of payment (which may include, if the Administrator so determines
and if the Stock is publicly traded at the relevant time, a broker-assisted exercise). In the absence of a determination by the Administrator that other forms of payment are permitted, all payments shall be made by cash or by check acceptable to the
Administrator. 
  
 (c) AWARDS NOT REQUIRING EXERCISE

  
 Restricted Stock and Unrestricted Stock, whether delivered
outright or under Awards of Stock Units or other Awards that do not require exercise, may be made in exchange for such lawful consideration, including services, as the Administrator determines.  
  
 7. EFFECT OF CERTAIN TRANSACTIONS 
  
 (a) MERGERS, ETC. 
  
 Except as otherwise provided in an Award, in the event of a Covered
Transaction in which there is an acquiring or surviving entity, the Administrator may provide for the assumption of some or all outstanding Awards, or for the grant of new awards in substitution therefor, by the acquiror or survivor or an affiliate
of the acquiror or survivor, in each case on such terms and subject to such conditions as the Administrator determines. In the event of a Covered Transaction (whether or not there is an acquiring or surviving entity) where there is no 
  

 -4- 

 such assumption or substitution, except as otherwise provided in the Award each Stock Option, SAR and other Award
requiring exercise will become fully exercisable, and the delivery of shares of Stock issuable under each outstanding Award of Stock Units (including Restricted Stock Units) will be accelerated and such shares will be issued, prior to the Covered
Transaction, in each case on a basis that gives the holder of the Award a reasonable opportunity, as determined by the Administrator, following exercise of the Award or the issuance of the shares, as the case may be, to participate as a stockholder
in the Covered Transaction, and the Award will terminate upon consummation of the Covered Transaction. Any shares of Stock issued pursuant to the preceding sentence in satisfaction or replacement of an Award may, in the discretion of the
Administrator, contain such restrictions, if any, as the Administrator deems appropriate to reflect any performance or other vesting conditions to which the Award was subject. In the case of Restricted Stock, the Administrator may require that any
amounts delivered, exchanged or otherwise paid in respect of such Stock in connection with the Covered Transaction be placed in escrow or otherwise made subject to such restrictions as the Administrator deems appropriate to carry out the intent of
the Plan. 
  
 (b) CHANGES IN AND DISTRIBUTIONS WITH RESPECT
TO THE STOCK 
  
 (1) Basic Adjustment
Provisions. In the event of a stock dividend, stock split or combination of shares (including a reverse stock split), recapitalization or other change in the Company’s capital structure, the Administrator will make appropriate
adjustments to the maximum number of shares specified in Section 4(a) that may be delivered under the Plan, to the maximum number of shares specified in Section 4(a) that may be issued upon the exercise of ISOs, to the maximum number of shares
specified in Section 4(a) that may be issued with respect to Stock Options that are not ISOs, and to the maximum share limits described in Section 4(c), and will also make appropriate adjustments to the number and kind of shares of stock or
securities subject to Awards then outstanding or subsequently granted, any exercise prices relating to Awards and any other provision of Awards affected by such change. 
  
 (2) Certain Other Adjustments. The Administrator may also make adjustments of the type
described in Section 7(b)(1) above to take into account distributions to stockholders other than those provided for in Section 7(a) and 7(b)(1), or any other event, if the Administrator determines that adjustments are appropriate to avoid distortion
in the operation of the Plan and to preserve the value of Awards made hereunder. The Administrator shall exercise its discretionary authority under the immediately preceding sentence consistent with the objectives of preserving the qualification as
ISOs of Awards intended to continue to qualify as ISOs and of preserving the continued applicability of the performance-based compensation exception under Section 162(m) for Awards intended to continue to qualify for such exception. 
  
 (3) Continuing Application of Plan Terms.
References in the Plan to shares of Stock will be construed to include any stock or securities resulting from an adjustment pursuant to this Section 7. 
  
 8. LEGAL CONDITIONS ON DELIVERY OF STOCK 
  
 The Company will not be obligated to deliver any shares of Stock pursuant to the Plan or 
  

 -5- 

 to remove any restriction from shares of Stock previously delivered under the Plan until: (i) the Company is satisfied
that all legal matters in connection with the issuance and delivery of such shares have been addressed and resolved; (ii) if the outstanding Stock is at the time of delivery listed on any stock exchange or national market system, the shares to be
delivered have been listed or authorized to be listed on such exchange or system upon official notice of issuance; and (iii) all conditions of the Award have been satisfied or waived. If the sale of Stock has not been registered under the Securities
Act of 1933, as amended, the Company may require, as a condition to exercise of the Award, such representations or agreements as counsel for the Company may consider appropriate to avoid violation of such Act. The Company may require that
certificates evidencing Stock issued under the Plan bear an appropriate legend reflecting any restriction on transfer applicable to such Stock, and the Company may hold the certificates pending lapse of the applicable restrictions. 
  
 9. AMENDMENT AND TERMINATION 
  
 The Administrator may at any time or times amend the Plan or any outstanding
Award for any purpose which may at the time be permitted by law, and may at any time terminate the Plan as to any future grants of Awards; provided, that except as otherwise expressly provided in the Plan the Administrator may not, without
the Participant’s consent, alter the terms of an Award so as to affect adversely the Participant’s rights under the Award, unless the Administrator expressly reserved the right to do so at the time of the Award. Amendment to the Plan shall
be conditioned upon stockholder approval only to the extent, if any, such approval is required by law (including the Code and applicable stock exchange requirements), as determined by the Administrator. 
  
 10. MISCELLANEOUS 
  
 The existence of the Plan or the grant of any Award will not in any way affect the Company’s right to Award a person
bonuses or other compensation in addition to Awards under the Plan. 
  
 The Administrator may establish one or more sub-plans or additional rules governing Awards to non-U.S. employees or to employees in U.S. jurisdictions subject to state blue-sky or other special requirements. Such subplans or rules, together
with the generally applicable terms of the Plan, shall constitute the Plan as it pertains to any Awards to which such sub-plans or rules apply. Without limiting the foregoing, Awards to California residents shall be subject to the requirements of
Exhibit B (as the same may from time to time by amended by the Administrator consistent with applicable law) except to the extent the Administrator determines that such requirements do not apply. 
  

 -6- 

 EXHIBIT A 
  
 Definition of Terms 
  
 The following terms, when used in the Plan, will have the meanings and be subject to the provisions set forth below: 
  
 “Administrator”: The Compensation Committee, except that the
Compensation Committee may delegate (i) to one or more of its members such of its duties, powers and responsibilities as it may determine; (ii) to one or more officers of the Company the power to grant rights or options to the extent
permitted by Section 157(c) of the Delaware General Corporation Law; (iii) to one or more officers of the Company the authority to allocate other Awards among such persons (other than officers of the Company) eligible to receive Awards under
the Plan as such delegated officer or officers determine consistent with such delegation; provided, that with respect to any delegation described in this clause (iii) the Compensation Committee (or a properly delegated member or members
of such Committee) shall have authorized the issuance of a specified number of shares of Stock under such Awards and shall have specified the consideration, if any, to be paid therefor; and (iv) to such Employees or other persons as it
determines such ministerial tasks as it deems appropriate. In the event of any delegation described in the preceding sentence, the term “Administrator” shall include the person or persons so delegated to the extent of such delegation.

  
 “Affiliate”: Any corporation or other entity
owning, directly or indirectly, 50% or more of the outstanding Stock of the Company, or in which the Company or any such corporation or other entity owns, directly or indirectly, 50% of the outstanding capital stock (determined by aggregate voting
rights) or other voting interests. 
  
 “Award”:
Any or a combination of the following: 
  
 (i)
Stock Options. 
  
 (ii) SARs. 
  
 (iii) Restricted Stock. 
  
 (iv) Unrestricted Stock. 
  
 (v) Stock Units, including Restricted Stock Units.

  
 (vi) Performance Awards. 
  
 (vii) Cash Awards. 
  
 (viii) Awards (other than Awards described in (i) through
(vii) above) that are convertible into or otherwise based on Stock. 
  

 -7- 

 “Board”: The Board of Directors of the Company. 
  
 “Cash Award”: An Award denominated in cash. 
  
 “Code”: The U.S. Internal Revenue Code of 1986 as from time
to time amended and in effect, or any successor statute as from time to time in effect. 
  
 “Compensation Committee”: The Compensation Committee of the Board. 
  
 “Company”: Lumera Corporation. 
  
 “Covered Transaction”: Any of (i) a consolidation, merger, or similar transaction or series of related transactions, including a sale or
other disposition of stock, in which the Company is not the surviving corporation or which results in the acquisition of all or substantially all of the Company’s then outstanding common stock by a single person or entity or by a group of
persons and/or entities acting in concert, (ii) a sale or transfer of all or substantially all the Company’s assets, or (iii) a dissolution or liquidation of the Company. Where a Covered Transaction involves a tender
offer that is reasonably expected to be followed by a merger described in clause (i) (as determined by the Administrator), the Covered Transaction shall be deemed to have occurred upon consummation of the tender offer. 
  
 “Employee”: Any person who is employed by the Company or an
Affiliate. 
  
 “Employment”: A Participant’s
employment or other service relationship with the Company and its Affiliates. Employment will be deemed to continue, unless the Administrator expressly provides otherwise, so long as the Participant is employed by, or otherwise is providing services
in a capacity described in Section 5 to the Company or its Affiliates. If a Participant’s employment or other service relationship is with an Affiliate and that entity ceases to be an Affiliate, the Participant’s Employment will be deemed
to have terminated when the entity ceases to be an Affiliate unless the Participant transfers Employment to the Company or its remaining Affiliates. 
  
 “ISO”: A Stock Option intended to be an “incentive stock option” within the meaning of Section 422 of the Code. Each
option granted pursuant to the Plan will be treated as providing by its terms that it is to be a non-incentive option unless, as of the date of grant, it is expressly designated as an ISO. 
  
 “Participant”: A person who is granted an Award under the
Plan. 
  
 “Performance Award”: An Award subject
to Performance Criteria. The Committee in its discretion may grant Performance Awards that are intended to qualify for the performance-based compensation exception under Section 162(m) and Performance Awards that are not intended so to qualify.

  
 “Performance Criteria”: Specified criteria,
other than mere continued Employment or the mere passage of time, the satisfaction of which is a condition for the grant, exercisability, 
  

 -8- 

 vesting or full enjoyment of an Award. For purposes of Awards that are intended to qualify for the performance-based
compensation exception under Section 162(m), a Performance Criterion will mean an objectively determinable measure of performance relating to any or any combination of the following (measured either absolutely or by reference to an index or
indices and determined either on a consolidated basis or, as the context permits, on a divisional, subsidiary, line of business, project or geographical basis or in combinations thereof): sales; revenues; assets; expenses; earnings before or after
deduction for all or any portion of interest, taxes, depreciation, or amortization, whether or not on a continuing operations or an aggregate or per share basis; return on equity, investment, capital or assets; one or more operating ratios;
borrowing levels, leverage ratios or credit rating; market share; capital expenditures; cash flow; stock price; stockholder return; sales of particular products or services; customer acquisition or retention; acquisitions and divestitures (in whole
or in part); joint ventures and strategic alliances; spin-offs, split-ups and the like; reorganizations; or recapitalizations, restructurings, financings (issuance of debt or equity) or refinancings. A Performance Criterion and any targets with
respect thereto determined by the Administrator need not be based upon an increase, a positive or improved result or avoidance of loss. To the extent consistent with the requirements for satisfying the performance-based compensation exception under
Section 162(m), the Administrator may provide in the case of any Award intended to qualify for such exception that one or more of the Performance Criteria applicable to such Award will be adjusted in an objectively determinable manner to reflect
events (for example, but without limitation, acquisitions or dispositions) occurring during the performance period that affect the applicable Performance Criterion or Criteria. 
  
 “Plan”: The 2004 Lumera Corporation Equity Incentive Plan as from time to time amended and in effect.

  
 “Restricted Stock”: An Award of Stock for so
long as the Stock remains subject to restrictions requiring that it be redelivered or offered for sale to the Company if specified conditions are not satisfied. 
  

“Restricted Stock Unit”: A Stock Unit that is, or as to which the delivery of Stock or cash in lieu of Stock is, subject to the
satisfaction of specified performance or other vesting conditions. 
  
 “Section 162(m)”: Section 162(m) of the Code. 
  
 “SARs”: Rights entitling the holder upon exercise to receive cash or Stock, as the Administrator determines, equal to a function (determined by the Administrator using such factors as it deems appropriate) of the amount by
which the Stock has appreciated in value since the date of the Award. 
  
 “Stock”: Common Stock of the Company, par value $ 0.001 per share. 
  
 “Stock Unit”: An unfunded and unsecured promise, denominated in shares of Stock, to deliver Stock or cash measured by the value of Stock in the future. 
  

 -9- 

 “Stock Options”: Options entitling the recipient to acquire shares of Stock upon payment
of the exercise price. 
  
 “Unrestricted Stock”:
An Award of Stock not subject to any restrictions under the terms of the Award. 
  

 -10- 

 EXHIBIT B 
  
 Awards to California Residents 
  
 Pursuant to Section 10 of the Plan, the Administrator has adopted this Exhibit B for purposes of satisfying the requirements of Section 25102(o) of
the California Corporations Code: 
  
 Any awards granted under the
Plan to a Participant who is a resident of the State of California on the date of grant (a “California Participant”) shall be subject to the following additional limitations, terms and conditions: 
  
 1. Minimum Vesting Rate. Except in the case of Stock Options granted
to California Participants who are officers, directors, or non-employee consultants of the Company (which options may become exercisable at whatever rate is determined by the Administrator), Stock Options granted to California Participants shall
become exercisable at a rate of no less than 20% per year over five years from the date of grant; provided, that such Options may be subject to such reasonable forfeiture conditions as the Board may choose to impose and which are not
inconsistent with Section 260.140.41 of the California Code of Regulations. 
  
 2. Minimum Exercise Price. The exercise price of Stock Options granted to a California Participant who owns stock possessing more than 10% of the total combined voting power of all classes of stock of the
Company or its parent or subsidiary corporations shall be not less than 110% of the Fair Market Value of the Stock on the date of grant. 
  
 3. Minimum Exercise Period Following Termination. Unless a California Participant’s employment is terminated for cause (as defined in any
contract of employment between the Company and such Participant, or if none, in the instrument evidencing the grant of such Participant’s Stock Option), in the event of termination of employment of such Participant, he or she shall have the
right to exercise a Stock Option, to the extent that he or she was otherwise entitled to exercise such Stock Option on the date employment terminated, as follows: (i) at least six months from the date of termination, if termination was caused
by such Participant’s death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code) and (ii) at least 30 days from the date of termination, if termination was caused other than by such
Participant’s death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code). 
  
 4. Limitation on Repurchase Rights. If a Stock Option granted to a California Participant gives the Company the right to repurchase shares of
Common Stock issued pursuant to the Plan upon termination of employment of such Participant, the terms of such repurchase right must comply with Section 260.140.41(k) of the California Code of Regulations. 
  
 5. Additional Limitations for Other Stock-Based Awards. The terms of
all Awards granted to a California Participant shall comply, to the extent applicable, with Section 260.140.41 or Section 260.140.42 of the California Code of Regulations. 
  
 6. Additional Limitations on Transferability of Awards. Except as provided in the next sentence, Awards granted to
California Participants shall not be sold, assigned, transferred, 
  

 -11- 

 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 such Participant, shall be exercisable only by such Participant. Notwithstanding the foregoing, but subject to the rules at Section 422 of the Code in the case of ISOs, the
Board may allow Awards to be transferred to an inter vivos or testamentary trust in which the Options are to be passed to beneficiaries upon the death of the trustor (settlor) or by gift to “immediate family” as that term is defined in
Rule 16a-1(e) under the Securities Exchange Act of 1934, as amended. 
  
 7. Additional Requirement to Provide Information to California Participants. The Company shall provide to each California Participant who acquires Stock pursuant to the Plan, not less frequently than annually, copies of annual
financial statements (which need not be audited). The Company shall not be required to provide such statements to key employees whose duties in connection with the Company assure their access to equivalent information. 
  
 8. Additional Limitations on Timing of Awards. No award granted to a
California Participant shall become exercisable, vested or realizable, as applicable to such Award, unless the Plan has been approved by the Company’s stockholders within 12 months before or after the date the Plan was adopted by the Board.

  
 9. Additional Limitations Relating to Definition of Fair
Market Value. For purposes of this Exhibit B, “Fair Market Value” shall be determined in a manner not inconsistent with Section 260.140.50 of the California Code of Regulations. 
  

 -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]