Document:

Exhibit
4.2

HOTJOBS.COM,
LTD.

 

1999
STOCK OPTION/STOCK ISSUANCE PLAN

 

AMENDMENT
NO. 1

 

The HotJobs.com, Ltd. 1999
Stock Option/Stock Issuance Plan (the “Plan”) is hereby amended as follows:

 

1.     Paragraphs B, C and D of Section V of Article One of the Plan are
hereby redesignated as Paragraphs C, D and E, respectively, and new Paragraph
V.B. of Article One is hereby added to the Plan to read as follows:

 

“B.  The number of shares of Common Stock available for issuance under
the Plan shall automatically increase on the first trading day of January each
calendar year during the term of the Plan, beginning with the 2001 calendar
year, by an amount equal to three percent (3%) of the shares of Common Stock
outstanding on the last trading day in December of the immediately preceding
calendar year, but in no event shall such annual increase exceed One Million
Five Hundred Thousand (1,500,000) shares.”

 

2.     Redesignated Paragraph V.E. of Article One of the Plan is hereby
amended and restated in its entirety, to read as follows:

 

“E.   Should any change be made to the Common Stock by reason of any
stock split, stock dividend, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding
Common Stock as a classwithout the Corporation’s receipt of
consideration, appropriate adjustmentsshall be made by the
Committee to (i) the maximum number and/or class ofsecurities issuable under the
Plan, (ii) the number and/or class ofsecurities by which the share
reserve is to increase each calendar yearpursuant to the automatic
share increase provisions of the Plan, (iii) themaximum number and/or class
of securities for which any one person may begranted options, separately
exercisable stock appreciation rights anddirect stock issuances under
this Plan per calendar year, (iv) the numberand/or class of securities
for which grants are subsequently to be madeunder the Automatic Option
Grant Program to new and continuing 
non-employee Board members and (v) the number and/or class of securities
andthe exercise price per share in effect under each outstanding option
underthe Plan. Such adjustments to the outstanding options are to be effectedin a manner
which shall preclude the enlargement or dilution of rights andbenefits under
such options. The adjustments determined by the PlanAdministrator shall be final,
binding and conclusive.”

 

 

 

 

3.     Except as modified by this Plan Amendment, all the terms and
provisions of the Plan shall continue in full force and effect.

 

IN WITNESS WHEREOF, HotJobs.com,
Ltd. has caused this Amendment No. 1 to be executed on its behalf by its duly
authorized officer as of the 17th day of May, 2000.

 

	
   

  	
   

  	
  HOTJOBS.COM, LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  BY:

  	
  /s/ RICHARD S. JOHNSON

  
	
   

  	
   

  	
  Name: Richard S. Johnson

  
	
   

  	
   

  	
  Title: President and Chief
  Executive Officer

  

 

 

 

 

 

 

 

 

2Exhibit
4.3

HOTJOBS.COM, LTD.

2000 STOCK OPTION PLAN

 

 

ARTICLE I

 

GENERAL PROVISIONS

 

1.1.          Purpose
of the Plan.  This 2000 Stock Option
Plan is intended to promote the interests of HotJobs.com, Ltd., a Delaware
corporation, by providing eligible persons with the opportunity to acquire a
proprietary interest, or else to increase their proprietary interest, in the
Corporation as an incentive for them to remain in the service of the
Corporation.  The Plan is intended to
qualify as a “broadly based” plan for purposes of the shareholder approval
rules promulgated by the National Association of Securities Dealers for the
NASDAQ stock market.

 

                                Capitalized
terms shall have the meanings assigned to such terms in the attached Appendix.

 

1.2.          Administration
of the Plan.  (a)  The following provisions shall govern the
administration of the Plan:

 

(i)            The Board shall have the authority
to administer the Discretionary Option Grant Program with respect to
Section 16 Insiders but may delegate such authority in whole or in part to
the Primary Committee.

 

(ii)           Administration of the Discretionary
Option Grant Program with respect to all other persons eligible to participate
in such program may, at the Board’s discretion, be vested in the Primary
Committee or a Secondary Committee, or the Board may retain the power to
administer such program with respect to all such persons.

 

(b)           Each
Plan Administrator shall, within the scope of its administrative jurisdiction
under the Plan, have full power and authority subject to the provisions of the
Plan:

 

(i)            to establish such rules as it may
deem appropriate for proper administration of the Plan, to make all factual
determinations, to construe and interpret the provisions of the Plan and the
awards thereunder and to resolve any and all ambiguities thereunder;

 

(ii)           to determine which eligible persons
are to receive awards; the time or times when such awards are to be made; the
number of shares to be covered by each such award; the vesting schedule (if
any) applicable to the award; and the maximum term for which the option is to
remain outstanding;

 

(iii)          to amend, modify or cancel any
outstanding award with the consent of the holder or accelerate the vesting of
such award; and

 

 

(iv)          to take such other discretionary
actions as permitted pursuant to the terms of the Plan.

 

Decisions of each Plan Administrator within the scope of its
administrative functions under the Plan shall be final and binding on all
parties.

 

(c)           Members
of the Primary Committee or any Secondary Committee shall serve for such period
of time as the Board may determine and may be removed by the Board at any
time.  The Board may also at any time
terminate the functions of any Secondary Committee and reassume all powers and
authority previously delegated to such committee.

 

(d)           Service
on the Primary Committee or the Secondary Committee shall constitute service as
a Board member, and members of each such committee shall accordingly be
entitled to full indemnification and reimbursement as Board members for their
service on such committee.  No member of
the Primary Committee or the Secondary Committee shall be liable for any act or
omission made in good faith with respect to the Plan or any options under the
Plan.

 

1.3.          Eligibility.  The persons eligible to participate in the
Discretionary Option Grant and Stock Issuance Programs are as follows:

 

(i)            Employees,

 

(ii)           non-employee members of the Board or
the board of directors of any Parent or Subsidiary, and

 

(iii)          consultants and other independent
advisors who provide services to the Corporation (or any Parent or Subsidiary).

 

1.4.          Stock
Subject to the Plan.  (a)  The stock issuable under the Plan shall be
shares of authorized but unissued or reacquired Common Stock, including shares
repurchased by the Corporation on the open market.  The maximum number of shares of Common Stock initially reserved
for issuance over the term of the Plan shall not exceed 4 million shares of
Common Stock.

 

(b)           Shares
of Common Stock subject to outstanding options shall be available for
subsequent issuance under the Plan to the extent those options expire,
terminate or are cancelled for any reason prior to exercise in full.  Unvested shares issued under the Plan and
subsequently repurchased by the Corporation, at the original exercise or issue
price paid per share, pursuant to the Corporation’s repurchase rights under the
Plan shall be added back to the number of shares of Common Stock reserved for
issuance under the Plan and shall accordingly be available for reissuance
through one or more subsequent options under the Plan.  However, should the exercise price of an
option under the Plan be paid with shares of Common Stock or should shares of
Common 

 

2

 

Stock otherwise issuable under the Plan be withheld by the Corporation
in satisfaction of the withholding taxes incurred in connection with the
exercise of an option under the Plan, then the number of shares of Common Stock
available for issuance under the Plan shall be reduced by the gross number of shares
for which the option is exercised, and not by the net number of shares of
Common Stock issued to the holder of such option.

 

(c)           If
any change is made to the Common Stock by reason of any stock split, stock
dividend, recapitalization, merger, reorganization, combination of shares,
exchange of shares or other change affecting the outstanding Common Stock as a
class without the Corporation’s receipt of consideration, appropriate
adjustments shall be made to

 

(i)            the maximum number and/or class of
securities issuable under the Plan, and

 

(ii)           the number and/or class of securities
and the exercise price per share in effect under each outstanding option under
the Plan.

 

Such adjustments to the outstanding options are to be effected in a
manner which shall preclude the enlargement or dilution of rights and benefits
under such options.  The adjustments
determined by the Plan Administrator shall be final, binding and
conclusive.  In no event shall any such
adjustments be made in connection with the conversion of one or more
outstanding shares of the Corporation’s preferred stock into shares of Common
Stock

 

(d)           During
the first three (3) years following the Plan Effective Date, at least a
majority of the shares of Common Stock underlying options awarded under the
Plan shall be awarded to employees who are not executive officers or directors
of the Corporation.

 

ARTICLE
II

 

DISCRETIONARY
OPTION GRANT PROGRAM

 

2.1.          Option Terms.  Each option shall be evidenced by one or
more documents in the form approved by the Plan Administrator; PROVIDED,
however, that each such document shall comply with the terms specified
below.  All options granted under the
Plan shall be Non-Statutory Options.  Each
option granted under the Plan shall be evidenced by a written agreement (the
“Award Agreement”) executed by the Corporation and the Optionee.  The Award Agreement shall be in such term
and shall contain such provisions as the Program Administrators, in their sole
discretion, determine.

 

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2.2.          Exercise
Price.

 

(a)           The exercise price per share shall be
fixed by the Plan Administrator at the time of the option grant.

 

(b)           The
exercise price shall become immediately due upon exercise of the option and
shall, subject to the documents evidencing the option, be payable in cash or
check made payable to the Corporation. 
Should the Common Stock be registered under Section 12 of the 1934 Act
at the time the option is exercised, then the exercise price may also be paid
as follows:

 

(i)            through shares of Common Stock held
for the requisite period necessary to avoid a charge to the Corporation’s
earnings for financial reporting purposes and valued at Fair Market Value on
the Exercise Date, or

 

(ii)           to the extent the option is exercised
for vested shares, through a special sale and remittance procedure pursuant to
which the Optionee shall concurrently provide irrevocable instructions to (A) a
Corporation–approved brokerage firm to effect the immediate sale of the
purchased shares and remit to the Corporation, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased shares plus all applicable Federal,
state and local income and employment taxes required to be withheld by the
Corporation by reason of such exercise and (B) the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm in order
to complete the sale.

 

Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the
Exercise Date.

 

2.3.          Exercise
and Term of Options.  (a)  Each option shall be exercisable at such
time or times, during such period and for such number of shares as shall be
determined by the Plan Administrator and set forth in the documents evidencing
the option.

 

(b)  However,
no option shall have a term in excess of ten (10) years measured from the
option grant date.

 

2.4.          Cessation
of Service.  (a)  Except as otherwise provided in any Award
Agreement, the following provisions shall govern the exercise of any options
outstanding at the time of the Optionee’s cessation of Service or death:

 

(i)            Any option outstanding at the time
of the Optionee’s cessation of Service for any reason shall remain exercisable
for such period of 

 

4

 

time thereafter as shall be determined by the Plan
Administrator and set forth in the Award Agreement evidencing the option, but
no such option shall be exercisable after the expiration of the option term.

 

(ii)           Any option exercisable in whole or in
part by the Optionee at the time of death may be subsequently exercised by his
or her Beneficiary.

 

(iii)          During the applicable post-Service
exercise period, the option may not be exercised in the aggregate for more than
the number of vested shares for which the option is exercisable on the date of
the Optionee’s cessation of Service except as such number may be changed
pursuant to Section 1.5(d) above. 
Upon the expiration of the applicable exercise period or (if earlier)
upon the expiration of the option term, the option shall terminate and cease to
be outstanding for any vested shares for which the option has not been
exercised.  However, the option shall,
immediately upon the Optionee’s cessation of Service, terminate and cease to be
outstanding to the extent the option is not otherwise at that time exercisable
for vested shares.

 

(iv)          Should the Optionee’s Service be
terminated for Misconduct or should the Optionee engage in Misconduct while his
or her options are outstanding, then all such options shall terminate
immediately and cease to be outstanding.

 

(b)           The
Plan Administrator shall have complete discretion, exercisable either at the
time an option is granted or at any time while the option remains outstanding:

 

(i)            to extend the period of time for
which the option is to remain exercisable following the Optionee’s cessation of
Service to such period of time as the Plan Administrator shall deem
appropriate, but in no event beyond the expiration of the option term, and/or

 

(ii)           to permit the option to be exercised,
during the applicable post–Service exercise period, for one or more
additional installments in which the Optionee would have vested had the
Optionee continued in Service.

 

2.5.          Stockholder
Rights.  The holder of an option
shall have no stockholder rights with respect to the shares subject to the
option until such person shall have exercised the option, paid the exercise
price and become a holder of record of the purchased shares.

 

2.6.          Repurchase
Rights.  The Plan Administrator
shall have the discretion to grant options which are exercisable for unvested
shares of Common Stock.  Should the
Optionee cease Service while holding such unvested shares, the Corporation 

 

5

 

shall have the right to repurchase, at the exercise price paid per
share, any or all of those unvested shares. 
The terms upon which such repurchase right shall be exercisable
(including the period and procedure for exercise and the appropriate vesting
schedule for the purchased shares) shall be established by the Plan
Administrator and set forth in the document evidencing such repurchase right.

 

2.7.          Limited
Transferability of Options.  During
the lifetime of the Optionee, options shall be exercisable only by the Optionee
and shall not be assignable or transferable other than by will or by the laws
of descent and distribution following the Optionee’s death, except that an
option may, to the extent permitted by the Plan Administrator, be assigned in
whole or in part during the Optionee’s lifetime as a gift to one or more
members of the Optionee’s immediate family, to a trust in which Optionee and/or
one or more such family members hold more than fifty percent (50%) of the
beneficial interest or to an entity in which more than fifty percent (50%) of
the voting interests are owned by Optionee and/or one or more such family
members.  The terms applicable to the
assigned portion shall be the same as those in effect for the option
immediately prior to such assignment and shall be set forth in such documents
issued to the assignee as the Plan Administrator may deem appropriate.

 

2.8.          Change
in Control.  (a)  Each option outstanding at the time of a
Change in Control but not otherwise fully-vested shall automatically accelerate
so that each such option shall, immediately prior to the effective date of the
Change in Control, become exercisable for all of the shares of Common Stock at
the time subject to that option and may be exercised for any or all of those
shares as fully-vested shares of Common Stock. 
However, an outstanding option shall not so accelerate if and to the
extent:

(i)            such option is, in connection with
the Change in Control, assumed or otherwise continued in full force and effect
by the successor corporation (or parent thereof) pursuant to the terms of the
Change in Control,

 

(ii)           such option is replaced with a cash
incentive program of the successor corporation which preserves the spread existing
at the time of the Change in Control on the shares of Common Stock for which
the option is not otherwise at that time exercisable and provides for
subsequent payout in accordance with the same vesting schedule applicable to
those option shares, or

 

(iii)          the acceleration of such option is
subject to other limitations imposed by the Plan Administrator at the time of
the option grant.

 

(b)           All
outstanding repurchase rights shall also terminate automatically, and the
shares of Common Stock subject to those terminated rights shall immediately
vest in full, in the event of any Change in Control, except to the extent:

 

6

 

(i)            those repurchase rights are assigned
to the successor corporation (or parent thereof) or otherwise continue in full
force and effect pursuant to the terms of the Change in Control or

 

(ii)           such accelerated vesting is precluded
by other limitations imposed by the Plan Administrator at the time the
repurchase right is issued.

 

(c)           Immediately
following the consummation of the Change in Control, all outstanding options
shall terminate and cease to be outstanding, except to the extent assumed by
the successor corporation (or parent thereof) or otherwise expressly continued
in full force and effect pursuant to the terms of the Change in Control.

 

(d)           Each
option which is assumed in connection with a Change in Control shall be
appropriately adjusted, immediately after such Change in Control, to apply to
the number and class of securities which would have been issuable to the
Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control.  Appropriate adjustments to reflect such
Change in Control shall also be made to

 

(i)            the exercise price payable per share
under each outstanding option, PROVIDED the aggregate exercise price payable
for such securities shall remain the same, and

 

(ii)           the maximum number and/or class of
securities available for issuance over the remaining term of the Plan.

 

(e)           The
Plan Administrator may at any time provide that one or more options will
automatically accelerate in connection with a Change in Control, whether or not
those options are assumed or otherwise continued in full force and effect
pursuant to the terms of the Change in Control.  Any such option shall accordingly become exercisable, immediately
prior to the effective date of such Change in Control, for all of the shares of
Common Stock at the time subject to that option and may be exercised for any or
all of those shares as fully-vested shares of Common Stock.  In addition, the Plan Administrator may at
any time provide that 

one or more of the Corporation’s repurchase rights shall not be
assignable in connection with such Change in Control and shall terminate upon
the consummation of such Change in Control.

 

(f)            The
Plan Administrator may at any time provide that one or more options will
automatically accelerate upon an Involuntary Termination of the Optionee’s
Service within a designated period (not to exceed eighteen (18) months)
following the effective date of any Change in Control in which those options do
not otherwise accelerate.  Any options
so accelerated shall remain exercisable for fully-vested shares until the
EARLIER of

 

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(i)            the expiration of the option term or

(ii)           the expiration of the one (1)-year
period measured from the effective date of the Involuntary Termination.  In addition, the Plan Administrator may at
any time provide that one or more of the Corporation’s repurchase rights shall
immediately terminate upon such Involuntary Termination.

 

 

ARTICLE
III

 

MISCELLANEOUS

 

3.1.          No Impairment of Authority.  Outstanding awards shall in no way affect
the right of the Corporation to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets.

 

3.2.          Financing.  The Plan Administrator may permit any
Optionee to pay the option exercise price under the Plan by delivering a
full-recourse, interest bearing promissory note payable in one or more
installments.  The terms of any such
promissory note (including the interest rate and the terms of repayment) shall
be established by the Plan Administrator in its sole discretion.  In no event may the maximum credit available
to the Optionee exceed the sum of (i) the aggregate option exercise price or
purchase price payable for the purchased shares plus (ii) any Federal, state and
local income and employment tax liability incurred by the Optionee or the
Participant in connection with the option exercise or share purchase.

 

3.3.          Tax
Withholding.  (a)  The Corporation’s obligation to deliver
shares of Common Stock upon the exercise of options under the Plan shall be
subject to the satisfaction of all applicable Federal, state and local income
and employment tax withholding requirements.

 

(b)           The
Plan Administrator may, in its discretion, provide any or all Optionees with
the right to use shares of Common Stock in satisfaction of all or part of the
Withholding Taxes incurred by such holders in connection with the exercise of
their options.  Such right may be
provided to any such holder in either or both of the following formats:

 

                                STOCK
WITHHOLDING:  The election to have the
Corporation withhold, from the shares of Common Stock otherwise issuable upon
the exercise of such option, a portion of those shares with an aggregate Fair
Market Value equal to the percentage of the Withholding Taxes (not to exceed
one hundred percent (100%)) designated by the holder.

 

8

 

                                STOCK
DELIVERY:  The election to deliver to
the Corporation, at the time the option is exercised, one or more shares of
Common Stock previously acquired by such holder (other than in connection with
the option exercise triggering the Withholding Taxes) with an aggregate Fair
Market Value equal to the percentage of the Taxes (not to exceed one hundred
percent (100%)) designated by the holder.

 

3.4.          Effective
Date and Term of the Plan.  (a)  The Plan shall become effective upon the
Plan Effective Date.

 

(b)           The
Plan shall terminate upon the EARLIEST of

 

(i)            the tenth anniversary of the Plan
Effective Date, or

 

(ii)           the termination of all outstanding
options in connection with a Change in Control.

 

Upon such plan termination, all outstanding options shall thereafter
continue to have force and effect in accordance with the provisions of the
documents evidencing such grants.

 

3.5.          Amendment
of the Plan.    The Board shall have
complete and exclusive power and authority to amend or modify the Plan in any
or all respects.  However, no such
amendment or modification shall adversely affect the rights and obligations
with respect to stock options at the time outstanding under the Plan unless the
Optionee consents to such amendment or modification.

 

3.6.          Use
of Proceeds.  Any cash proceeds
received by the Corporation from the sale of shares of Common Stock under the
Plan shall be used for general corporate purposes.

 

3.7.          Regulatory
Approvals.  (a)  The implementation of the Plan, the granting
of any stock option under the Plan and the issuance of any shares of Common
Stock upon the exercise of any granted option shall be subject to the Corporation’s
procurement of all approvals and permits required by regulatory authorities
having jurisdiction over the Plan, the stock options granted under it and the
shares of Common Stock issued pursuant to it.

 

(b)           No
shares of Common Stock or other assets shall be issued or delivered under the
Plan unless and until there shall have been compliance with all applicable
requirements of Federal and state securities laws, including the filing and
effectiveness of the Form S–8 registration statement for the shares of
Common Stock issuable under the Plan, and all applicable listing requirements
of any stock exchange (or the Nasdaq National Market, if applicable) on which
Common Stock is then listed for trading.

 

9

 

3.8.          No
Employment/Service Rights.  Nothing
in the Plan shall confer upon the Optionee any right to continue in Service for
any period of specific duration or interfere with or otherwise restrict in any
way the rights of the Corporation (or any Parent or Subsidiary employing or
retaining such person) or of the Optionee, which rights are hereby expressly
reserved by each, to terminate such person’s Service at any time for any
reason, with or without cause.

 

10

 

APPENDIX

 

The following definitions shall be in effect under the
Plan:

 

1.             AWARD
AGREEMENT shall have the meaning set forth in Section 2.1.

 

2.             BENEFICIARY
shall mean, in the event the Plan Administrator implements a beneficiary
designation procedure, the person designated by an Optionee pursuant to such
procedure, to succeed to such person’s rights under any outstanding awards held
by him or her at the time of death.  In
the absence of such designation or procedure, the Beneficiary shall be the
personal representative of the estate of the Optionee or the person or persons
to whom the award is transferred by will or the laws of descent and
distribution.

 

3.             BOARD
shall mean the Corporation’s Board of Directors.

 

4.             CHANGE
IN CONTROL shall mean a change in ownership or control of the Corporation
effected through any of the following transactions:

 

(i)            a merger, consolidation or
reorganization approved by the stockholders of the Corporation, UNLESS
securities representing more than fifty percent (50%) of the total combined
voting power of the voting securities of the Corporation are immediately
thereafter beneficially owned, directly or indirectly and in substantially the
same proportion, by the persons who beneficially owned the Corporation’s
outstanding voting securities immediately prior to such transaction,

 

(ii)           any stockholder-approved transfer or
other disposition of all or substantially all of the assets of the Corporation,
or

 

(iii)          the acquisition, directly or
indirectly by any person or related group of persons (other than the
Corporation or a person that directly or indirectly controls, is controlled by,
or is under common control with the Corporation), of beneficial ownership
(within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing more
than fifty percent (50%) of the total combined voting power of the outstanding
securities of the Corporation pursuant to a tender or exchange offer made
directly to the stockholders of the Corporation which the Board recommends such
stockholders to accept;

 

5.             CODE
shall mean the Internal Revenue Code of 1986, as amended.

 

6.             COMMON
STOCK shall mean the common stock of HotJobs, adjusted as described in Section
1.5(d) herein.

 

7.             CORPORATION
shall mean HotJobs.com, Ltd., a Delaware corporation, and its successors.

 

A-1

 

8.             EMPLOYEE
shall mean an individual who is in the employ of the Corporation (or any Parent
or Subsidiary), subject to the control and direction of the employer entity as
to both the work to be performed and the manner and method of performance.

 

9.             EXERCISE
DATE shall mean the date on which the Corporation shall have received written
notice of the option exercise.

 

10.           FAIR
MARKET VALUE per share of Common Stock on any relevant date shall be determined
in accordance with the following provisions:

 

(i)            If the Common Stock is at the time
traded on the Nasdaq National Market, then the Fair Market Value shall be the
closing selling price per share of Common Stock on the date in question, as
such price is reported on the Nasdaq National Market or any successor
system.  If there is no closing selling
price for the Common Stock on the date in question, then the Fair Market Value
shall be the closing selling price on the last preceding date for which such
quotation exists.

 

(ii)           If the Common Stock is at the time
listed on any Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question on the Stock
Exchange determined by the Plan Administrator to be the primary market for the
Common Stock, as such price is officially quoted in the composite tape of
transactions on such exchange.  If there
is no closing selling price for the Common Stock on the date in question, then
the Fair Market Value shall be the closing selling price on the last preceding
date for which such quotation exists.

 

(iii)          If neither (i) or (ii) above applies,
the Fair Market Value shall be determined by the Plan Administrator, after
taking into account such factors as it deems appropriate.

 

11.           INVOLUNTARY
TERMINATION shall mean the termination of the Service of any individual which
occurs by reason of.

 

(i)            such individual’s involuntary
dismissal or discharge by the Corporation for reasons other than Misconduct, or

 

(ii)           such individual’s voluntary
resignation following (A) a change in his or her position with the Corporation
or Parent or Subsidiary employing the individual which materially reduces his
or her duties and responsibilities or the level of management to which he or
she reports, (B) a reduction in his or her level of compensation (including
base salary, fringe benefits and target bonus under any performance based bonus
or incentive programs) by more than fifteen percent (15%) or (C) a relocation
of such individual’s place of employment by more than fifty (50) miles,
provided and only if such change, reduction or relocation is effected by the
Corporation without the individual’s consent..

 

A-2

 

12.           MISCONDUCT
shall mean the commission of any act of fraud, embezzlement or dishonesty by
the Optionee, any unauthorized use or disclosure by such person of confidential
information or trade secrets of the Corporation (or any Parent or Subsidiary),
or any intentional wrongdoing by such person, whether by omission or
commission, which adversely affects the business or affairs of the Corporation
(or any Parent or Subsidiary) in a material manner.  This shall not limit the grounds for the dismissal or discharge
of any person in the Service of the Corporation (or any Parent or Subsidiary).

 

13.           1934
ACT shall mean the Securities Exchange Act of 1934, as amended.

 

14.           NON-STATUTORY
OPTION shall mean an option not intended to satisfy the requirements of Code
Section 422.

 

15.           OPTIONEE
shall mean any person to whom an option is granted under the Discretionary
Option Grant Program.

 

16.           PARENT
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations ending with the Corporation, provided each corporation in the
unbroken chain (other than the Corporation) owns, at the time of the
determination, 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 such chain.

 

17.           PLAN
shall mean the Corporation’s 2000 Stock Option Plan, as set forth in this
document.

 

18.           PLAN
ADMINISTRATOR shall mean the particular entity, whether the Primary Committee,
the Board or the Secondary Committee, which is authorized to administer the
Discretionary Option Grant Program with respect to one or more classes of
eligible persons, to the extent such entity is carrying out its administrative
functions under such program with respect to the persons under its
jurisdiction.  However, the Primary
Committee shall have the plenary authority to make all factual determinations
and to construe and interpret any and all ambiguities under the Plan to the
extent such authority is not otherwise expressly delegated to any other Plan
Administrator.

 

19.           PLAN
EFFECTIVE DATE shall mean the date on which the Plan is adopted by the Board.

 

20.           PRIMARY
COMMITTEE shall mean the committee of two (2) or more non-employee Board
members appointed by the Board to administer the Discretionary Option Grant
Program with respect to Section 16 Insiders.

 

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21.           SECONDARY
COMMITTEE shall mean a committee of one (1) or more Board members appointed by
the Board to administer the Discretionary Option Grant Program with respect to
eligible persons other than Section 16 Insiders.

 

22.           SECTION
16 INSIDER shall mean an officer or director of the Corporation subject to the
short-swing profit liabilities of Section 16 of the 1934 Act.

 

23.           SERVICE
shall mean the performance of services for the Corporation (or any Parent or
Subsidiary) by a person in the capacity of an Employee, non-employee member of
the board of directors, consultant, or independent advisor.

 

24.           STOCK
EXCHANGE shall mean either the American Stock Exchange or the New York Stock
Exchange.

 

25.           SUBSIDIARY
shall mean any corporation (other than the Corporation) in an unbroken chain of
corporations beginning with the Corporation, provided each corporation (other
than the last corporation) in the unbroken chain owns, at the time of the
determination, 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 such chain.

 

26.           WITHHOLDING
TAXES shall mean the Federal, state and local income and employment withholding
tax liabilities to which the holder of Options may become subject in connection
with the exercise of those options.

 

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