Document:

Exhibit 4.11

 

The Depository Trust Company
 A subsidiary of The Depository Trust and Clearing Corporation

 

MEDIUM-TERM NOTE — MASTER NOTE

 

April 21, 2011
  (Date of Issuance)

 

John Deere Capital Corporation (“Issuer), a corporation organized and existing under the laws of the State of Delaware, for value received, hereby promises to pay to Cede & Co. or its registered assigns (i) on each principal payment date, including each amortization date, redemption date, repayment date, maturity date, and extended maturity date as applicable, of each obligation identified on the records of Issuer (which records are maintained by The Bank of New York Mellon (“Paying Agent”)) as being evidenced by this Master Note, the principal amount then due and payable for each such obligation, and (ii) on each interest payment date, if any, the interest then due and payable on the principal amount for each such obligation.  Payment shall be made by wire transfer of United States dollars to the registered owner, or in immediately available funds or the equivalent to a party as authorized by the registered owner and in the currency other than United States dollars as provided for in each obligation, by Paying Agent without the necessity of presentation and surrender of this Master Note.

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS MASTER NOTE SET FORTH ON THE REVERSE HEREOF.

 

This Master Note is a valid and binding obligation of Issuer.

 

IN WITNESS WHEREOF, Issuer has caused this instrument to be duly executed under its corporate seal.

 

 

 

	
ATTEST:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
John Deere Capital   Corporation
    
	
(Signature)
    	
 
    	
(Issuer)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
(Authorized Signature)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
[Seal]
    	
 
    	
The Bank of New York   Mellon
    
	
 
    	
 
    	
(Trustee)
    
	

    	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
 
    	
(Authorized Signature)
    
	
 
    	
 
    

 

 

(Reverse Side of Note)

 

This Master note evidences indebtedness of Issuer of a single Series of InterNotes® and Ranks pari passu with all other unsecured and unsubordinated indebtedness of the Company (the “Debt Obligation”), all issued or to be issued under and pursuant to an Indenture dated as of March 15, 1997, as amended (the “Indenture”), duly executed and delivered by Issuer to The Bank of New York Mellon, as trustee (“Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, duties, and immunities thereunder of Trustee and the rights thereunder of the holders of the Debt Obligations.  As provided in the Indenture, the Debt Obligations may mature at different times, may bear interest, if any, at different rates, may be subject to different redemption and repayment provisions, if any, may be subject to different sinking purchase, or analogous funds, if any, may be subject to different covenants and events of default, and may otherwise vary as in the Indenture provided or permitted.  The Debt Obligations aggregated with any other indebtedness of Issuer of this Series are limited (except, as provided in the Indenture) to the principal amount of $1,500,000,000 designated as the InterNotes of Issuer Due 9 months or more From Date of Issue.

 

No reference herein to the Indenture and no provision of this Master Note or of the Indenture shall alter or impair the obligation of Issuer, which is absolute and unconditional, to pay the principal of, premium, if any, and interest, if any, on each Debt Obligation at the times, places, and rates, and in the coin or currency, identified on the records of Issuer.

 

At the request of the registered owner, Issuer shall promptly issue and deliver one or more separate note certificates evidencing each Debt Obligation evidenced by this Master Note.  As of the date any such note certificate or certificates are issued, the Debt Obligations which are evidenced thereby shall no longer be evidenced by this Master Note.

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto

	
 
    	
 
    	
 
    
	
 
    	
(Name, Address, and   Taxpayer Identification Number of Assignee)
    	
 
    

 

the Master Note and all rights thereunder, hereby irrevocably constituting and appointing                                             attorney to transfer said Master Note on the books of Issuer with full power of substitution in the premises.

 

 

	
 
    	
 
    
	
Dated:
    	
(Signature)
    
	
 
    	
 
    
	
Signature(s) Guaranteed:
    	
NOTICE: The signature on this assignment must correspond with the   name as written upon the face of this Master Note, in every particular,   without alteration or enlargement or any change whatsoever.
    

 

Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to issuer or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR 

 

 

OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.

 

 

JOHN DEERE CAPITAL CORPORATION

 

RIDER TO MASTER NOTE DATED APRIL 21, 2011

 

JOHN DEERE CAPITAL CORPORATION INTERNOTES®

 

This rider forms a part of and is incorporated into the Master Note dated April 21, 2011 of John Deere Capital Corporation (the “Company”) registered in the name of Cede & Co., or its registered assigns, evidencing the Company’s InterNotes® (the “Notes”).

 

REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF  SUCH MASTER NOTE (TOGETHER WITH THIS RIDER HEREIN REFERRED TO AS  THIS “MASTER NOTE”) SET FORTH IN THE RECORDS OF THE COMPANY  MAINTAINED BY THE TRUSTEE, WHICH RECORDS CONSIST OF THE PRICING  SUPPLEMENT(S) TO THE PROSPECTUS SUPPLEMENT DATED APRIL 21, 2011 AND  PROSPECTUS DATED APRIL 21, 2011 RELATING TO EACH ISSUANCE OF NOTES, AS  FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.  SUCH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT  AS THOUGH FULLY SET FORTH HEREIN.

 

THIS MASTER NOTE IS A GLOBAL SECURITY WITHIN THE MEANING  OF THE INDENTURE AND IS REGISTERED IN THE NAME OF THE DEPOSITORY  TRUST COMPANY (THE “DEPOSITARY”) OR A NOMINEE THEREOF. UNLESS AND  UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL  SECURITIES REPRESENTED HEREBY, THIS GLOBAL SECURITY MAY NOT BE  TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE  DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR  ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH  NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR  DEPOSITARY.

 

InterNotes® is a registered servicemark of Incapital Holdings LLC

 

 

ANNEX A

 

REPAYMENT ELECTION FORM

 

JOHN DEERE CAPITAL CORPORATION

 

JDCC INTERNOTES®

 

CUSIP NUMBER        

 

To:  The Bank of New York Mellon

 

The undersigned financial institution (the “Financial Institution”) represents the following:

 

·                The Financial Institution has received a request for repayment from the executor or other authorized representative (the “Authorized Representative”) of the deceased beneficial owner listed below (the “Deceased Beneficial Owner”) of JDCC InterNotes® of John Deere Capital Corporation (the “Company”) (CUSIP No.        ) (the “Notes”).

 

·                At the time of his or her death, the Deceased Beneficial Owner owned Notes in the principal amount listed below, the Deceased Beneficial Owner acquired such Notes at least six months prior to such request for repayment, and the Financial Institution currently holds such Notes as a direct or indirect participant in The Depository Trust Company (the “Depositary”).

 

The Financial Institution agrees to the following terms:

 

·                The Financial Institution shall follow the instructions (the “Instructions”) accompanying this Repayment Election Form (the “Form”).

 

·                The Financial Institution shall make all records specified in the Instructions supporting the above representations available to The Bank of New York Mellon (the “Trustee”) for inspection and review within five Business Days of the Trustee’s request.

 

·                If any of the Financial Institution, the Trustee or the Company, in its reasonable discretion, deems any of the records specified in the Instructions supporting the above representations unsatisfactory to substantiate a claim for repayment, the Financial Institution shall not be obligated to submit this Form, and the Trustee or the Company may deny repayment.  If the Financial Institution cannot substantiate a claim for repayment, it shall notify the Trustee and the Company immediately.

 

·                Other than the limited situation involving tenders of Notes that are not accepted during one calendar year as a result of the Annual Option Limitation or the Individual Option Limitation as described in the prospectus supplement for the Notes, otherwise valid repayment elections may not be withdrawn.

 

·                The Financial Institution agrees to indemnify and hold harmless the Trustee and the Company against and from any and all claims, liabilities, costs, losses, expenses, suits and damages resulting from the Financial Institution’s above representations and request for repayment on behalf of the Authorized Representative.

 

 

	
REPAYMENT   ELECTION FORM
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(1)
    	
 
    	
 
    	
 
    
	
 
    	
Name of   Deceased Beneficial Owner
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(2)
    	
 
    	
 
    	
 
    
	
 
    	
Date of   Death
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(3)
    	
 
    	
 
    	
 
    
	
 
    	
Date of acquisition   of Note by Deceased Beneficial Owner
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(4)
    	
 
    	
 
    	
 
    
	
 
    	
Name of   Authorized Representative Requesting Repayment
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(5)
    	
 
    	
 
    	
 
    
	
 
    	
Name of   Financial Institution Requesting Repayment
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(6)
    	
 
    	
 
    	
 
    
	
 
    	
Signature   of Representative of Financial Institution Requesting Repayment
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(7)
    	
 
    	
 
    	
 
    
	
 
    	
Principal   Amount of Request Repayment
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(8)
    	
 
    	
 
    	
 
    
	
 
    	
Date of   Election
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
(9)
    	
 
    	
 
    	
 
    
	
 
    	
Date   Requested for Repayment
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
(10)
    	
Financial   Institution Representative:
    	
 
    	
(11)
    	
Wire   Instruction for Repayment:
    
	
 
    	
Name:
    	
 
    	
 
    	
Bank Name:
    
	
 
    	
Phone   Number:
    	
 
    	
 
    	
ABA Number:
    
	
 
    	
Fax Number:
    	
 
    	
 
    	
Account   Name:
    
	
 
    	
Mailing   Address (no P.O. Box):
    	
 
    	
 
    	
Account   Number:
    
	
 
    	
 
    	
 
    	
 
    	
Reference   (Optional):
    

 

	
TO BE COMPLETED BY THE TRUSTEE:
    
	
 
    	
 
    
	
(A)
    	
Election   Number*:
    
	
(B)
    	
Delivery   and Payment Date:
    
	
(C)
    	
Principal   Amount:
    
	
(D)
    	
Accrued   Interest:
    
	
(E)
    	
Date of   Receipt of Form by the Trustee:
    
	
(F)
    	
Date of   Acknowledgment by the Trustee:
    

 

*                                         To be assigned by the Trustee upon receipt of this Form.  An acknowledgement, in the form of a copy of this document with the assigned Election Number, will be returned to the representative and location designated on line (10) above.

 

 

INSTRUCTIONS FOR COMPLETING REPAYMENT ELECTION FORM

AND EXERCISING REPAYMENT OPTION

 

Capitalized terms used and not defined herein have the meanings defined in the accompanying Repayment Election Form.

 

1.             Collect and retain for a period of at least three years (1) satisfactory evidence of the authority of the Authorized Representative, (2) satisfactory evidence of death of the Deceased Beneficial Owner, (3) satisfactory evidence that the Deceased Beneficial Owner beneficially owned, at the time of his or her death, the Notes being submitted for repayment and satisfactory evidence that the Deceased Beneficial Owner acquired the Notes at least six months prior to the request for repayment, and (4) any necessary tax waivers.  For purposes of determining whether the Notes will be deemed beneficially owned by an individual at the time of death, the following rules shall apply:

 

·                Notes beneficially owned by tenants by the entirety or joint tenants will be regarded as beneficially owned by a single owner.  The death of a tenant by the entirety or joint tenant will be deemed the death of the beneficial owner, and the Notes beneficially owned will become eligible for repayment.  The death of a person beneficially owning a Note by tenancy in common will be deemed the death of a holder of a Note only with respect to the deceased holder’s interest in the Note so held by tenancy in common, unless a husband and wife are the tenants in common, in which case the death of either will be deemed the death of the holder of the Note, and the entire principal amount of the Note so held will be eligible for repayment.

 

·                Notes beneficially owned by a trust will be regarded as beneficially owned by each beneficiary of the trust to the extent of that beneficiary’s interest in the trust (however, a trust’s beneficiaries collectively cannot be beneficial owners of more Notes than are owned by the trust).  The death of a beneficiary of a trust will be deemed the death of the beneficial owner of the Notes beneficially owned by the trust to the extent of that beneficiary’s interest in the trust.  The death of an individual who was a tenant by the entirety or joint tenant in a tenancy which is the beneficiary of a trust will be deemed the death of the beneficiary of the trust.  The death of an individual who was a tenant in common in a tenancy which is the beneficiary of a trust will be deemed the death of the beneficiary of the trust only with respect to the deceased holder’s beneficiary interest in the Note, unless a husband and wife are the tenants in common, in which case the death of either will be deemed the death of the beneficiary of the trust.

 

·                The death of a person who, during his or her lifetime, was entitled to substantially all of the beneficially interest in a Note will be deemed the death of the beneficial owner of that Note, regardless of the registration of ownership, if such beneficial interest can be established to the satisfaction of the Trustee and the Company.  Such beneficial interest will exist in many cases of street name or nominee ownership, ownership by a trustee, ownership under the Uniform Gift to Minors Act and community property or other joint ownership arrangements between spouses.  Beneficial interest will be evidenced by such factors as the power to sell or otherwise dispose of a Note, the right to receive the proceeds of sale or disposition and the right to receive interest and principal payments on a Note.

 

2.             Indicate the name of the Deceased Beneficial Owner on line (1).

 

3.             Indicate the date of death of the Deceased Beneficial Owner on line (2).

 

4.             Indicate the date of the acquisition of the Note by the Deceased Beneficial Owner on line (3).

 

5.             Indicate the name of the Authorized Representative requesting repayment on line (4).

 

6.             Indicate the name of the Financial Institution requesting repayment on line (5).

 

7.             Affix the authorized signature of the Financial Institution’s representative on line (6).

THE SIGNATURE MUST BE MEDALLION SIGNATURE GUARANTEED.

 

 

8.             Indicate the principal amount of Notes to be repaid on line (7).

 

9.             Indicate the date this Form was completed on line (8).

 

10.       Indicate the date of requested repayment on line (9).  The date of requested repayment may not be earlier than the first Interest payment Date to occur at least 20 calendar days after the date of the Company’s acceptance of the Notes for repayment, unless such date is not a Business Day, in which case the date of requested repayment may be no earlier than the next succeeding Business Day.

 

11.       Indicate the name, mailing address (no P.O. boxes, please), telephone number and facsimile-transmission number of the party to whom the acknowledgment of this election may be sent on line (10).

 

12.       Indicate the wire instruction for payment on line (11).

 

13.       Leave lines (A), (B), (C), (D), (E) and (F) blank.

 

14.       Mail or otherwise deliver an original copy of the completed Form to:

 

	
By Registered Mail:
    	
 
    	
By Courier   or Overnight Delivery:
    
	
The Bank of New York Mellon
    	
 
    	
The Bank of   New York Mellon
    
	
ITS-Survivor Option Processing
    	
 
    	
ITS-Survivor   Option Processing
    
	
P.O. Box 2320
    	
 
    	
2001 Bryan   Street — 9th Floor
    
	
Dallas, TX 75221-2370
    	
 
    	
Dallas, TX   75201
    

 

FACSIMILE TRANSMISSIONS OF THE REPAYMENT ELECTION FORM
 WILL NOT BE ACCEPTED

 

15                                    If the acknowledgement of the Trustee’s receipt of this Form, including the assigned Election Number, is not received within 10 days of the date such information is sent to the Trustee, contact the Trustee at the address given in (14) above.

 

For assistance with the Form or any questions relating thereto, please contact the Trustee at the address given in (14) above or at 1-800-254-2826.

 

 

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations:

 

	
TEN   COM
    	
-
    	
as   tenants in common
    
	
 
    	
 
    	
 
    
	
TEN   ENT
    	
-
    	
as   tenants by the entireties
    
	
 
    	
 
    	
 
    
	
JT   TEN
    	
-
    	
as   joint tenants with right of survivorship and not as tenants in common
    

 

UNIF GIFT MIN ACT - ___________Custodian___________

(Cust.)                         (Minor)

Under Uniform Gifts to Minors Act

________________

(State)

 

Additional abbreviations may also be used though not in the above list.

 

 

FOR VALUE RECEIVED, the undersigned

hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

 

	
 
    	
 
    
	
Please print or type name   and address, including zip code of assignee
    	
 
    

 

	
 
    	
 
    
	
the within Security of JOHN DEERE CAPITAL CORPORATION and all rights   thereunder and does hereby irrevocably constitute and appoint                                                                                                                                                           Attorney to transfer the said Security on the books of the within-named   Company, with full power of substitution in the premises.
    

 

	
Dated
    	
 
    	
 
    	
 
    
	
 
    	
 
    
	
SIGNATURE GUARANTEED:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NOTICE: The signature to this assignment must correspond with the   name as it appears upon the face of the within Security in every particular,   without alteration or enlargement or any change whatsoever.ex10x1.htm

Exhibit 10.1

 

 

RODOBO INTERNATIONAL, INC.

 

2011 EQUITY INCENTIVE PLAN

 

	
1. 

	
Purposes of the Plan. The purposes of this Plan are: to attract and retain the best available personnel for positions of substantial responsibility, to provide additional incentive to Employees, Directors and Consultants, and to promote the success of the Company's business. The Plan permits the grant of Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Unrestricted Stock, Stock Appreciation Rights, Performance Units and Performance Shares. The Administrator may only award or grant those Awards that either comply with the applicable requirements of Code Section 409A, or do not result in the deferral of compensation within the meaning of Code Section 409A.

 

 

	
2.

	
Definitions. As used herein, the following definitions will apply:

 

"Administrator" means the Board or any of its Committees as will be administering the Plan, in accordance with Section 4.

 

"Applicable Laws" means the requirements relating to the administration of equity-based awards under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 

"Award" means, individually or collectively, a grant under the Plan of Options, SARs, Restricted Stock, Restricted Stock Units, Unrestricted Stock, Performance Units or Performance Shares.

 

"Award Agreement" means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

"Board" means the Board of Directors of the Company.

 

"Change in Control" means the occurrence of any of the following events:

 

(i)      Any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting securities; provided however, that for purposes of this subsection

 

(i)      any acquisition of securities directly from the Company shall not constitute a Change in Control; or

 

(ii)     The consummation of the sale or disposition by the Company of all or substantially all of the Company's assets;

 

(iii)    A change in the composition of the Board occurring within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. "Incumbent Directors" means directors who either (A) are Directors as of the effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or

 

 

  

  

  

(iv)    The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such merger or consolidation.

 

"Code" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any successor or amended section of the Code.

 

"Committee" means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 hereof.

 

"Common Stock" means the common stock of the Company.

 

"Company" means Rodobo International, Inc., a Nevada corporation, or any successor thereto.

 

"Consultant" means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such entity.

 

"Director" means a member of the Board.

 

"Disability" means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.

 

"Employee" means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. Neither service as a Director nor payment of a director's fee by the Company will be sufficient to constitute "employment" by the Company.

 

"Exchange Act" means the Securities Exchange Act of 1934, as amended.

 

"Fair Market Value" means, as of any date, the value of Common Stock determined as follows:

 

(i)     If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the New York Stock Exchange, the Nasdaq National Market System or the NYSE Amex, its Fair Market Value will be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

 

(ii)     If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of a Share will be the mean between the high bid and low asked prices for the Common Stock on the day of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; or

 

 (iii)    In the absence of an established market for the Common Stock, the Fair Market Value will be determined in good faith by the Administrator.

 

"Fiscal Year" means the fiscal year of the Company.

 

"Grant Date" means, for all purposes, the date on which the Administrator makes the determination granting such Award, or such other later date as is determined by the Administrator. Notice of the determination will be provided to each Participant within a reasonable time after the date of such grant.

 

2

  

  

  

"NSO" means an Option that by its terms does not qualify or is not intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

 

"Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.

 

"Option" means a stock option granted pursuant to the Plan.

 

"Optioned Stock" means the Common Stock subject to an Award.

 

"Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code.

 

"Participant" means the holder of an outstanding Award.

 

"Performance Share" means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine pursuant to Section 11.

 

"Performance Unit" means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing pursuant to Section 11.

 

"Period of Restriction" means the period during which the transfer of Shares of Restricted Stock are subject to restrictions and therefore, the Shares are subject to a substantial risk of forfeiture. Such restrictions may be based on the passage of time, the achievement of target levels of performance, or the occurrence of other events as determined by the Administrator.

 

"Plan" means this 2011 Equity Incentive Plan.

 

"Restricted Stock" means Shares issued pursuant to a Restricted Stock award under Section 7.

 

"Restricted Stock Unit" means a bookkeeping entry representing an amount equal to the Fair Market Value of one Share, granted pursuant to Section 8. Each Restricted Stock Unit represents an unfunded and unsecured obligation of the Company.

 

"Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan.

 

"Section 16(b)" means Section 16(b) of the Exchange Act.

 

“Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder.

 

"Service Provider" means an Employee, Director or Consultant.

 

"Share" means a share of the Common Stock, as adjusted in accordance with Section 14.

 

"Stock Appreciation Right" or "SAR" means an Award, granted alone or in connection with an Option, that pursuant to Section 10 is designated as a Stock Appreciation Right.

 

 

3

  

  

  

"Subsidiary" means a "subsidiary corporation", whether now or hereafter existing, as defined in Section 424(f) of the Code.

 

"Unrestricted Stock" means Shares issued pursuant to an unrestricted stock award under Section 9.

 

3.      Stock Subject to the Plan.

 

	
  (a)

	
Stock Subject to the Plan. Subject to the provisions of Section 14, the maximum aggregate number of Shares that may be issued under the Plan is two  million (2,000,000) Shares. The Shares may be authorized, but unissued, or reacquired Common Stock.

 

	
  (b)

	
Lapsed Awards. If an Award expires or becomes unexercisable without having been exercised in full or, with respect to Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units, is forfeited in whole or in part to the Company, the unpurchased Shares (or for Awards other than Options and SARs, the forfeited or unissued Shares) which were subject to the Award will become available for future grant or sale under the Plan (unless the Plan has terminated). With respect to SARs, only Shares actually issued pursuant to an SAR will cease to be available under the Plan; all remaining Shares subject to the SARs will remain available for future grant or sale under the Plan (unless the Plan has terminated). Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are forfeited to the Company, such Shares will become available for future grant under the Plan. Shares withheld by the Company to pay the exercise price of an Award or used to satisfy tax withholding obligations with respect to an Award will become available for future grant or sale under the Plan. To the extent an Award under the Plan is paid out in cash rather than Shares, such cash payment will not result in reducing the number of Shares available for issuance under the Plan.

 

	
  (c)

	
Share Reserve. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of the Plan.

 

4.      Administration of the Plan.

 

	
  (a)

	
Procedure. The Plan shall be administered by the Board or a committee or committees (including subcommittees) appointed by, and consisting of two or more members of, the Board. If and so long as the Common Stock is registered under Section 12(b) or 12(g) of the Exchange Act, the Board shall consider in selecting the Plan Administrator and the membership of any committee acting as Plan Administrator the provisions regarding (a) "outside directors" as contemplated by Section 162(m) of the Code; (b) "nonemployee directors" as contemplated by Rule 16b-3 under the Exchange Act; and (c) "independent directors" as contemplated by the listing requirements for any stock exchange on which Shares are listed. The Board may delegate the responsibility for administering the Plan with respect to designated classes of eligible Participants to different committees consisting of two or more members of the Board, subject to such limitations as the Board or the Plan Administrator deems appropriate. Committee members shall serve for such term as the Board may determine, subject to removal by the Board at any time. To the extent consistent with Applicable Laws, the Board may authorize one or more senior executive officers of the Company to grant Awards to designated classes of eligible employees within the limits prescribed by the Board.

 

	
  (b)

	
Powers of the Administrator. Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator will have the authority, in its discretion:

 

	
  (i)    

	
to determine the Fair Market Value;

 

	
  (ii)    

	
to select the Service Providers to whom Awards may be granted hereunder;

 

 

4

  

  

  

	
  (iii)    

	
to determine the number of Shares to be covered by each Award granted hereunder;

 

	
  (iv)    

	
to approve forms of agreement for use under the Plan;

 

	
  (v)    

	
to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Awards may be exercised (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Award or the Shares relating thereto, based in each case on such factors as the Administrator will determine;

 

	
  (vi)    

	
to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan, including the right to construe disputed or doubtful Plan and Award provisions;

 

	
  (vii)    

	
to prescribe, amend and rescind rules and regulations relating to the Plan;

 

	
  (viii)    

	
to modify or amend each Award (subject to Section 17(c)), including the discretionary authority to extend the post-termination exercisability period of Awards, to the extent that such period can be extended without causing an award to become subject to Code Section 409A;

 

	
  (ix)    

	
to allow Participants to satisfy withholding tax obligations in such manner as prescribed in Section 15;

 

	
  (x)    

	
to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Award previously granted by the Administrator; and

 

	
  (xi)    

	
to make all other determinations deemed necessary or advisable for administering the Plan.

 

	
  (c)

	

Effect of Administrator's Decision. The Administrator's decisions, determinations and interpretations will be final and binding on all Participants and any other holders of Awards. Any decision or action taken or to be taken by the Administrator, arising out of or in connection with the construction, administration, interpretation and effect of the Plan and of its rules and regulations, shall, to the maximum extent permitted by applicable law, be within its absolute discretion (except as otherwise specifically provided herein) and shall be final, binding and conclusive upon the Company, all Participants and any person claiming under or through any Participant.

 

	
  (d)

	
Section 409A.  To the extent that any Award is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the Administrator from time to time in order to comply with Section 409A. In this regard, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a grantee who is then considered a “specified employee” (within the meaning of Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the grantee’s separation from service, or (ii) the grantee’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A. Further, the settlement of any such Award may not be accelerated except to the extent permitted by Section 409A.

 

	
5. 

	
Eligibility. NSOs, Restricted Stock, Restricted Stock Units, Unrestricted Stock, SARs, Performance Units and Performance Shares may be granted to Service Providers.

 

	
6.

	
Stock Options.

 

	
  (a)     

	
Grants. Subject to the terms and provisions of the Plan, Options may be granted to Service Providers at any time as determined by the Administrator in its sole discretion. For purposes of the foregoing sentence, Service Providers shall include prospective employees or consultants to whom options are granted in connection with written offers of employment or engagement of services, respectively, with the Company; provided that no option granted to a prospective employee or consultant may be exercised prior to the commencement of employment or services with the Company. The Administrator may only grant NSO’s.

 

	
  (b)   

	
Limitations. Each Option will be designated in the Award Agreement as an NSO. The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted.

 

	
  (c)   

	
Exercise Price. The per Share exercise price for the Shares to be issued pursuant to exercise of an Option will be no less than the Fair Market Value per Share on the Grant Date.

 

	
  (d)   

	
Term of Options. The term of each Option will be stated in the Award Agreement. Unless terminated sooner in accordance with the remaining provisions of this Section 6, each Option shall expire either ten (10) years after the Grant Date, or after a shorter term as may be fixed by the Board.

 

	
  (e)   

	
Exercise Date. Each Award Agreement shall specify how and when shares covered by a Stock Option may be purchased. The Award Agreement may specify waiting periods, the dates on which Options become exercisable or "vested" and, subject to the termination provisions of this section, exercise periods. The Administrator may accelerate the exercisability of any Option or portion thereof.

 

	
  (f)   

	
Exercise of Option. Any Option granted hereunder will be exercisable according to the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Award Agreement. An Option may not be exercised for a fraction of a Share. An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with an applicable withholding taxes). Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Award Agreement and the Plan (together with an applicable withholding taxes). Shares issued upon exercise of an Option will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder will exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company will issue (or cause to be issued) such Shares promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 14.

 

	
  (g)    

	
Form of Consideration. The Administrator will determine the acceptable form of consideration for exercising an Option, including the method of payment. Such consideration may consist entirely of:

 

	
  (i)    

	
cash;

 

	
  (ii)    

	
check;

 

	
  (iii)    

	
to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, a promissory note;

 

	
  (iv)    

	
other Shares, provided Shares have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option will be exercised;

 

 

6

  

  

  

	
  (v)    

	
to the extent not prohibited by Section 402 of the Sarbanes-Oxley Act of 2002, consideration received by the Company under a cashless exercise program;

 

	
(vi)    

	
any combination of the foregoing methods of payment; or

 

	
  (vii)    

	
such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

 

	
  (h)

	
Termination of Options. An Option may terminate prior to the end of the term specified in an Award Agreement as follows:

 

	
  (i)     

	
Termination of Relationship as a Service Provider. If a Participant ceases to be a Service Provider, other than upon the Participant's death or Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for three (3) months following the Participant's termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will be forfeited and revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will be forfeited and revert to the Plan.

 

	
  (ii)     

	
Disability of Participant. If a Participant ceases to be a Service Provider as a result of the Participant's Disability, the Participant may exercise his or her Option within such period of time as is specified in the Award Agreement to the extent the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Award Agreement). In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following the Participant's termination. Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will be forfeited and revert to the Plan. If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will be forfeited and revert to the Plan.

 

	
  (iii)     

	
Death of Participant. If a Participant dies while a Service Provider, the Option may be exercised following the Participant's death within such period of time as is specified in the Award Agreement to the extent that the Option is vested on the date of death (but in no event may the option be exercised later than the expiration of the term of such Option as set forth in the Award Agreement), by the Participant's designated beneficiary, provided such beneficiary has been designated prior to Participant's death in a form acceptable to the Administrator. If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant's estate or by the person(s) to whom the Option is transferred pursuant to the Participant's will or in accordance with the laws of descent and distribution. In the absence of a specified time in the Award Agreement, the Option will remain exercisable for twelve (12) months following Participant's death. Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will be forfeited and revert to the Plan. If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will be forfeited and revert to the Plan.

 

 

 

7

  

  

  

7.      Restricted Stock.

 

	
  (a)

	
Grant. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Shares of Restricted Stock to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

 

	
  (b)

	
Restricted Stock Agreement. Each Award of Restricted Stock will be evidenced by an Award Agreement that will specify the Period of Restriction, the number of Shares granted, and such other terms and conditions as the Administrator, in its sole discretion, will determine. Unless the Administrator determines otherwise, the Company as escrow agent will hold Shares of Restricted Stock until the restrictions on such Shares have lapsed.

 

	
  (c)

	
Transferability. Except as provided in this Section, Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction.

 

	
  (d)

	
Period of Restriction. The Administrator, in its sole discretion, may impose such conditions on the vesting of Shares of Restricted Stock as it may deem advisable or appropriate, including but not limited to, achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment), or any other basis determined by the Administrator in its discretion. All restrictions imposed on Restricted Stock shall lapse and the Period of Restriction shall end upon the satisfaction of vesting conditions imposed by the Administrator. The Administrator may, in its discretion, also provide for such complete or partial exceptions to an employment restriction as it deems equitable.

 

	
  (e)

	
Removal of Restrictions. Except as otherwise provided in this Section, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan will be released from escrow as soon as practicable after the last day of the Period of Restriction or at such other time as the Administrator may determine. The Administrator, in its discretion, may accelerate the time at which any restrictions will lapse or be removed.

 

	
  (f)

	
Voting Rights. During the Period of Restriction, Service Providers holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Administrator determines otherwise.

 

	
  (g)

	
Dividends and Other Distributions. During the Period of Restriction, Service Providers holding Shares of Restricted Stock will be entitled to receive all dividends and other distributions paid with respect to such Shares, unless the Administrator determines otherwise. If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid.

 

	
  (h)

	
Return of Restricted Stock to Company. On the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed will be forfeited and revert to the Company and again will become available for grant under the Plan.

 

	
8. 

	
Restricted Stock Units.

 

	
  (a)

	
Grant. Subject to the terms and provisions of the Plan, the Administrator, at any time and from time to time, may grant Restricted Stock Units to Service Providers in such amounts as the Administrator, in its sole discretion, will determine.

 

	
  (b)

	
Vesting Criteria and Other Terms. The Administrator shall set vesting criteria in its discretion, which, depending on the extent to which the criteria are met, will determine the number of Restricted Stock Units that will be paid out to the Participant. The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment), or any other basis determined by the Administrator in its discretion. The Administrator will determine the other terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units and the form of payout, which, subject to Section 8(d), may be left to the discretion of the Administrator.

 

 

8

  

  

  

	
  (c)

	
Earning Restricted Stock Units. Upon satisfaction of the applicable vesting conditions, the Participant shall be entitled to receive a payout at such time as the Administrator determines. At any time after the grant of Restricted Stock Units, the Administrator, in its sole discretion, may reduce or waive any vesting criteria that must be met to receive a payout.

 

 

	
  (d)

	
Form and Timing of Payment. Payment of earned Restricted Stock Units shall be made as soon as practicable after the date(s) determined by the Administrator and set forth in the Award Agreement. The Administrator, in its sole discretion, may pay earned Restricted Stock Units in cash, Shares, or a combination thereof. Restricted Stock Units that are fully paid in cash will not reduce the number of Shares available for issuance under the Plan.

 

 

	
  (e)

	
Cancellation. On the date set forth in the Award Agreement, all unearned Restricted Stock Units shall be forfeited to the Company.

 

	
9.

	
Unrestricted Stock.  The Administrator may, in its sole discretion, grant (or sell at par value or such higher purchase price determined by the Administrator) an Unrestricted Stock award to any grantee pursuant to which such grantee may receive Shares free of any restrictions under the Plan. Unrestricted Stock awards may be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such grantee..

	
10. 

	
Stock Appreciation Rights.

 

	
  (a)

	
Grant of SARs. Subject to the terms and conditions of the Plan, SARs may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.

 

	
  (b)

	
Number of Shares. The Administrator will have complete discretion to determine the number of SARs granted to any Service Provider.

 

	
  (c)

	
Exercise Price and Other Terms. The per Share exercise price for the exercise of an SAR will be no less than the Fair Market Value per Share on the Grant Date. The Administrator, subject to the provisions of the Plan, will have complete discretion to determine the other terms and conditions of SARs granted under the Plan.

 

	
  (d)

	
Award Agreement. Each SAR grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.

 

	
  (e)

	
Expiration of SARs. An SAR granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement.

 

	
  (f)

	
Payment of SAR Amount. Upon exercise of an SAR, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

 

	
  (i)    

	
The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times

 

	
  (ii)    

	
The number of Shares with respect to which the SAR is exercised.

 

 

 

9

  

  

  

	
  (g)

	
Form of Payment. At the discretion of the Administrator, the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination thereof.

 

	
11. 

	
Performance Units and Performance Shares.

 

	
  (a)

	
Grant of Performance Units and Performance Shares. Performance Units or Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion. The Administrator will have complete discretion in determining the number of Performance Units and Performance Shares granted to each Participant.

 

	
  (b)

	
Value of Performance Units and Shares. Each Performance Unit will have an initial value that is established by the Administrator on or before the Grant Date. Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the Grant Date.

 

	
  (c)

	
Performance Objectives and Other Terms. The Administrator will set performance objectives or other vesting provisions (including, without limitation, continued status as a Service Provider) in its discretion which, depending on the extent to which they are met, will determine the number or value of Performance Units or Performance Shares that will be paid out to the Service Providers. The time period during which the performance objectives or other vesting provisions must be met will be called the "Performance Period." Each Award of Performance Units or Performance Shares will be evidenced by an Award Agreement that will specify the Performance Period, and such other terms and conditions as the Administrator, in its sole discretion, will determine. The Administrator may set performance objectives based upon the achievement of Company-wide, divisional, or individual goals, applicable federal or state securities laws, or any other basis determined by the Administrator in its discretion.

 

	
  (d)

	
Earning of Performance Units and Shares. After the applicable Performance Period has ended, the holder of Performance Units or Performance Shares will be entitled to receive a payout of the number of Performance Units or Performance Shares earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance objectives or other vesting provisions have been achieved.

 

	
  (e)

	
Form and Timing of Payment of Performance Units or Shares. Payment of earned Performance Units or Performance Shares will be made as soon as practicable after the expiration of the applicable Performance Period. The Administrator, in its sole discretion, may pay earned Performance Units and Performance Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units or Performance Shares at the close of the applicable Performance Period) or in a combination thereof.

 

	
  (f)

	
Cancellation of Performance Units and Performance Shares. On the date set forth in the Award Agreement, all unearned or unvested Performance Units or Performance Shares will be forfeited to the Company, and again will be available for grant under the Plan.

 

	
12. 

	
Leaves of Absence/Transfer Between Locations.

 

Unless the Administrator provides otherwise or as required by Applicable Law, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence. An Employee will not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company, its Parent, or any Subsidiary.

 

	
13. 

	
Transferability of Awards.

 

Unless determined otherwise by the Administrator, an Award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Participant, only by the Participant. If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate.

 

 

10

  

  

  

	
14. 

	
Adjustments; Dissolution or Liquidation; Merger or Change in Control.

 

	
  (a)

	
Adjustments. In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, shall adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award, the numerical Share limit in Section 3.

 

	
  (b)

	
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.

 

	
  (c)

	
Change in Control. In the event of a merger or Change in Control, any or all outstanding Awards may be assumed or replaced by the successor corporation, which assumption or replacement shall be binding on all Participants. In the alternative, the successor corporation may substitute equivalent Awards or provide substantially similar consideration to Participants as was provided to stockholders (after taking into account the existing provisions of the Awards). The successor corporation may also issue, in place of outstanding Shares of the Company held by the Participant, substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant.

 

In the event that the successor corporation does not assume or substitute for the Award, unless the Administrator provides otherwise, the Participant will fully vest in and have the right to exercise all of his or her outstanding Options and SARs, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Performance Shares and Performance Units, all Performance Goals or other vesting criteria will be deemed achieved at target levels and all other terms and conditions met. In addition, if an Option or SAR is not assumed or substituted in the event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or SAR will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or SAR will terminate upon the expiration of such period.

 

For the purposes of this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) or, in the case of an SAR upon the exercise of which the Administrator determines to pay cash or a Performance Share or Performance Unit which the Administrator can determine to pay in cash, the fair market value of the consideration received in the merger or Change in Control by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the Change in Control is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of an Option or SAR or upon the payout of a Restricted Stock Unit, Performance Share or Performance Unit, for each Share subject to such Award (or in the case of Restricted Stock Units and Performance Units, the number of implied shares determined by dividing the value of the Restricted Stock Units and Performance Units, as applicable, by the per share consideration received by holders of Common Stock in the Change in Control), to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in the Change in Control.

 

11

  

  

  

 

Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant's consent; provided, however, a modification to such performance goals only to reflect the successor corporation's post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.

 

	
15. 

	
Tax Withholding.

 

	
  (a)

	
Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant's FICA obligation) required to be withheld with respect to such Award (or exercise thereof).

 

	
  (b)

	
Withholding Arrangements. The Administrator, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy such tax withholding obligation, in whole or in part by (without limitation) (i) paying cash, (ii) electing to have the Company withhold otherwise deliverable cash or Shares having a Fair Market Value equal to the amount required to be withheld, or (iii) delivering to the Company already-owned Shares having a Fair Market Value equal to the amount required to be withheld. The amount of the withholding requirement will be deemed to include any amount which the Administrator agrees may be withheld at the time the election is made. The Fair Market Value of the Shares to be withheld or delivered will be determined as of the date that the taxes are required to be withheld.

 

	
16. 

	
No Effect on Employment or Service.

 

Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant's relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant's right or the Company's right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.

 

	
17. 

	
Term of Plan.

 

The Plan will terminate on April 21, 2021.

 

	
18. 

	
Amendment and Termination of the Plan.

 

	
  (a)

	
Amendment and Termination. The Board may at any time amend, alter, suspend or terminate the Plan.

 

	
  (b)

	
Stockholder Approval. The Company will obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws.

 

	
  (c)

	
Effect of Amendment or Termination. No amendment, alteration, suspension or termination of the Plan will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company. Termination of the Plan will not affect the Administrator's ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.

 

 

12

  

  

  

	
19. 

	
Conditions Upon Issuance of Shares.

 

	
  (a)

	
Legal Compliance. Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will be further subject to the approval of counsel for the Company with respect to such compliance.

 

	
  (b)

	
Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to represent and warrant at the time of any such exercise that the Shares 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.

 

	
20.

	
Inability to Obtain Authority. The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained.

 

	
21.

	
Repricing Prohibited; Exchange And Buyout Of Awards. The repricing of Options or SARs is permitted, provided that the Company must obtain stockholder approval of any such repricing if such approval is necessary to comply with Applicable Laws. The Administrator may authorize the Company, with prior stockholder approval and the consent of the respective Participants, to issue new Option or SAR Awards in exchange for the surrender and cancellation of any or all outstanding Awards. The Administrator may at any time buy from a Participant an Option previously granted with payment in cash, Shares or other consideration, based on such terms and conditions as the Administrator and the Participant shall agree.

 

	
22.

	
Governing Law. The Plan and all Agreements shall be construed in accordance with and governed by the laws of the State of Nevada.

 

 

	
23.

	
Effective Date. The Plan's effective date is the date on which it is adopted by the Board.

 

 

Adopted by the Board of Directors on April 21, 2011.

 

 

 

 

 

 

13

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