Document:

exv10w1

Exhibit 10.1

Execution Copy

TERMINATION AND RELEASE AGREEMENT

          This TERMINATION AND RELEASE AGREEMENT (this “Agreement”), dated as of July 26, 2010,
by and between Thoratec Corporation, a California corporation (“Thoratec”), International
Technidyne Corporation, a Delaware corporation and a wholly-owned subsidiary of Thoratec
(“ITC”), Danaher Corporation, a Delaware corporation (“Danaher”), and Radiometer
America Inc., a Delaware corporation and an indirect wholly-owned subsidiary of Danaher
(“Radiometer”).

          WHEREAS, Thoratec, Radiometer and Danaher (solely with respect to Section 11.14 thereof) are
parties to that certain Stock Purchase Agreement, dated as of April 25, 2010 (the “Purchase
Agreement”) with respect to the acquisition of all of the outstanding capital stock of ITC by
Radiometer.

          WHEREAS, each of Thoratec and Radiometer, desire to terminate the Purchase Agreement pursuant
to Section 11.1(a)(i) of the Purchase Agreement, on the terms set forth herein.

          NOW, THEREFORE, in consideration of the premises and the mutual promises contained herein and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, each of Danaher, ITC, Thoratec and Radiometer hereby agrees as follows:

          1. Termination of the Purchase Agreement. Effective upon the execution of this
Agreement by each of Thoratec, Danaher, ITC and Radiometer, the Purchase Agreement shall be
terminated in accordance with Section 11.1(a)(i) of the Purchase Agreement and no party thereto
shall have any rights, duties, liabilities or obligations of any nature whatsoever with respect to,
in connection with or otherwise arising under the Purchase Agreement, other than solely as provided
in Section 11.1(b) thereof; provided, that the parties acknowledge and agree that any Liability (as
defined below) that would otherwise survive under the first sentence of Section 11.1(b) (i.e., a
claim for fraud or for breach of the Purchase Agreement occurring prior to the termination of the
Purchase Agreement) is intended to be released in its entirety under this Agreement and shall be
for all purposes included in the Thoratec Released Claims or the Danaher Released Claims, as the
case may be; and provided. further, that survival of the provisions of Article XI of the Purchase
Agreement contemplated by Section 11.1(b) of the Purchase Agreement shall be solely in relation to
the surviving post-closing rights and obligations set forth in Section 6.5 and Section 11.1(b) of
the Purchase Agreement.

          2. Mutual Release.

          (a) Effective upon the execution of this Agreement by each of Thoratec, Danaher, ITC and
Radiometer, Thoratec and ITC, each on its own behalf and on behalf of each of its respective
controlled affiliates, successors, assigns, representatives, directors, current or future
officers, attorneys, agents, employees, partners, managers, principals, members, predecessor
entities, heirs, executors and administrators (the “Thoratec Releasing Parties”), releases
and forever discharges Radiometer, Danaher and each of their respective affiliates,
representatives, directors, current or future officers, attorneys, agents, employees,
equityholders, partners, managers, principals, members, predecessor entities, heirs, executors,
administrators, successors and assigns (individually, a “Radiometer Releasee” and
collectively, the “Radiometer Releasees”) from and with respect to any and all past,
present, direct, indirect and/or derivative liabilities, claims, rights, actions, causes of action,
controversies, counts, obligations, sums of money due, attorneys’ fees, suits, debts, accounts,
bonds, covenants, contracts, agreements, promises, judgments, demands, damages and charges of
whatever kind or nature, known or unknown, matured or unmatured, liquidated or unliquidated, in law
or in equity, asserted or that could have been asserted, under federal or state statute, or common
law or the laws of any other relevant jurisdiction (each, a “Liability”),

 

 

arising from or out of, based upon, in connection with or otherwise relating in any way to the
Purchase Agreement (including, for the avoidance of doubt, the negotiation thereof, all due
diligence activities and other actions or activities undertaken in connection therewith, any
post-execution discussions, negotiations, communications, advice, proposals, guidance, consents,
information requests or exchanges or other actions (whether under Article VI of the Purchase
Agreement or otherwise), any obligation or covenant, vel non, to close the purchase transaction
contemplated thereunder, and any Liability that would otherwise have survived under the first
sentence of Section 11.1(b) of the Purchase Agreement) (collectively, the “Thoratec Released
Claims”); provided, that nothing contained in this Agreement shall be deemed to release
any party hereto from its obligations under this Agreement or any agreement among any of the
parties hereto entered into subsequent to the execution of this Agreement.

          (b) Effective upon the execution of this Agreement by each of Thoratec, Danaher, ITC and
Radiometer, Radiometer and Danaher, each on its own behalf and on behalf of each of its respective
controlled affiliates, successors, assigns, representatives, directors, current or future
officers, attorneys, agents, employees, partners, managers, principals, members, predecessor
entities, heirs, executors and administrators (the “Radiometer Releasing Parties”),
releases and forever discharges Thoratec, ITC and each of their respective affiliates,
representatives, directors, current or future officers, attorneys, agents, employees,
equityholders, partners, managers, principals, members, predecessor entities, heirs, executors,
administrators, successors and assigns (individually, a “Thoratec Releasee” and
collectively, the “Thoratec Releasees”) from and with respect to any and all past, present,
direct, indirect and/or derivative liabilities, claims, rights, actions, causes of action,
controversies, counts, obligations, sums of money due, attorneys’ fees, suits, debts, accounts,
bonds, covenants, contracts, agreements, promises, judgments, demands, damages and charges of
whatever kind or nature, known or unknown, matured or unmatured, liquidated or unliquidated, in law
or in equity, asserted or that could have been asserted, under federal or state statute, or common
law or the laws of any other relevant jurisdiction, arising from or out of, based upon, in
connection with or otherwise relating in any way to the Purchase Agreement (including, for the
avoidance of doubt, the negotiation thereof, all due diligence activities and other actions or
activities undertaken in connection therewith, any post-execution discussions, negotiations,
communications, advice, proposals, guidance, consents, information requests or exchanges or other
actions (whether under Article VI of the Purchase Agreement or otherwise), any obligation or
covenant, vel non, to close the purchase transaction contemplated thereunder and any Liability that
would otherwise have survived under the first sentence of Section 11.1(b) of the Purchase
Agreement) (collectively, the “Radiometer Released Claims”); provided, that for the
avoidance of doubt, nothing contained in this Agreement shall be deemed to release any party hereto
from its obligations under this Agreement or any agreement among any of the parties hereto entered
into subsequent to the execution of this Agreement.

          (c) Scope of Release.

          (i) Thoratec and ITC, on behalf of the Thoratec Releasing Parties, and Danaher and Radiometer,
on behalf of the Radiometer Releasing Parties, acknowledge and agree that they may be unaware of or
may discover facts in addition to or different from those which they now know, anticipate or
believe to be true related to or concerning the Thoratec Released Claims or the Radiometer Released
Claims, respectively. The parties know that such presently unknown or unappreciated facts could
materially affect the claims or defenses of a party or parties. It is nonetheless the intent of the
parties to give a full, complete and final release and discharge of the Thoratec Released Claims
and the Radiometer Released Claims, respectively. In furtherance of this intention, the releases
herein given shall be and remain in effect as full and complete releases with regard to the
Thoratec Released Claims and the Radiometer Released Claims, respectively notwithstanding the
discovery or existence of any such additional or different claim or fact. To that end, with respect
to the Thoratec Released Claims and the Radiometer Released Claims, respectively, the parties
expressly waive and relinquish any and all

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provisions, rights and benefits conferred by any law of the United States or of any state or
territory of the United States or of any other relevant jurisdiction, or principle of common law,
under which a general release does not extend to claims which the parties do not know or suspect to
exist in their favor at the time of executing the release, which if known by the parties might have
affected the parties’ settlement. With respect to the Thoratec Released Claims and the Radiometer
Released Claims, respectively, the parties expressly waive and relinquish, to the fullest extent
permitted by law, the provisions, rights, and benefits of §1542 of the California Civil Code, or
any New York or other state’s counterpart thereto, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

          (ii) The parties acknowledge and agree that the inclusion of this Section 2(c) was separately
bargained for and is a key element of this Agreement.

          3. Covenant Not to Sue. Effective upon the execution of this Agreement by each of
Thoratec, Danaher, ITC and Radiometer, each party covenants, on behalf of itself, the Thoratec
Releasing Parties and the Thoratec Releasees, in the case of Thoratec and ITC, and the Radiometer
Releasing Parties and the Radiometer Releasees, in the case of Danaher and Radiometer, not to bring
any Thoratec Released Claim or Radiometer Released Claim (as the case may be) before any court,
arbitrator, or other tribunal or forum in any jurisdiction, whether as a claim, a cross claim or a
counterclaim. Any Thoratec Releasee or Radiometer Releasee may plead this Agreement as a complete
bar to any Thoratec Released Claim or Radiometer Released Claim (as the case may be) brought in
derogation of this covenant not to sue. The covenants contained in this Section 3 shall survive
this Agreement indefinitely regardless of any statute of limitations.

          4. Non-Disparagement. In connection herewith, each of Thoratec and ITC, on the one
hand, and each of Danaher and Radiometer, on the other hand, agrees not to, and to cause each of
its respective controlled affiliates, successors, assigns, representatives, directors, current or
future officers, attorneys, agents, employees, partners, managers, principals, members, predecessor
entities, heirs, executors and administrators not to, make any negative or disparaging statements
or communications regarding the other party (which shall include the party’s direct or indirect
parent companies and its and their respective officers, directors, employees and agents) either
publicly or in any manner reasonably likely to embarrass or otherwise damage or disparage such
person.

          5. Representations.

          (a) Thoratec, Danaher, ITC and Radiometer each represent and warrant that (i) it has the full
power and authority to enter into and perform this Agreement; (ii) the execution, delivery, and
performance of this Agreement has been approved by all requisite action on the part of such party;
(iii) this Agreement has been executed and delivered on behalf of such party by such party or its
duly authorized agent and constitutes the valid and binding obligation of such party enforceable in
accordance with its terms; (iv) such party has received no notice and has no knowledge of any
judgment, restraining order, consent decree, or judicial or administrative prohibition binding upon
it, that would be violated by its entry into this Agreement; and (v) such party was represented by
attorneys in connection with the execution of this Agreement, has read and understood all aspects
of this Agreement and all of its effects, and has executed this Agreement as a free and voluntary
act of its or his own free will and without any threat, force, fraud, duress, or coercion of any
kind.

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          (b) Thoratec and ITC each represents and warrants that each Thoratec Releasing Party is the
true and lawful owner of all right, title, and interest in and to the Thoratec Released Claims and
has not assigned, pledged, hypothecated, transferred, or otherwise divested itself or encumbered
any interest in the Thoratec Released Claims. Danaher and Radiometer each represents and warrants
that each Radiometer Releasing Party is the true and lawful owner of all right, title, and interest
in and to the Radiometer Released Claims and has not assigned, pledged, hypothecated, transferred,
or otherwise divested itself or encumbered any interest in the Radiometer Released Claims.

          6. Miscellaneous.

          (a) Entire Agreement; Amendments and Waivers. This Agreement constitutes the entire
agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or written, of the parties
hereto. This Agreement may not be amended except by an instrument in writing signed on behalf of
each of Thoratec, Danaher, ITC and Radiometer. No amendment, supplement, modification or waiver of
this Agreement shall be binding unless executed in writing by each of Thoratec, Danaher, ITC and
Radiometer. No waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided.

          (b) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. Nothing in
this Agreement, express or implied, is intended to or shall confer upon any person (other than the
parties to this Agreement and their successors and permitted assigns) any rights, benefits or
remedies of any nature whatsoever under, or by reason of, this Agreement. No third party is
entitled to rely on any of the agreements contained in this Agreement.

          (c) Specific Performance. Each of Thoratec, Danaher, ITC and Radiometer acknowledges
and agrees that the parties hereto would be damaged irreparably in the event any provision of this
Agreement is not performed in accordance with its specific terms or is otherwise breached, so that,
in addition to any other remedy that a party may have under law or equity, each party hereto shall
be entitled to injunctive relief to prevent breaches of the provisions of this Agreement and to
enforce specifically this Agreement and the terms and provisions hereof. Each of the parties
hereto hereby waives (i) any defense that a remedy at law would be adequate in any action for
specific performance and (ii) any requirement under any applicable law to post a bond or other
security as a prerequisite to obtaining equitable relief.

          (d) Notices. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be deemed to have been
duly given (i) when received if personally delivered, (ii) when transmitted if transmitted by
telecopy, electronic mail or other digital transmission, (iii) the day after it is sent, if sent
for next day delivery to a domestic address by recognized overnight delivery service and (iv) upon
receipt, if sent by certified or registered mail, return receipt requested. In each case any such
notice, request, demand or other communication shall be sent to:

          If to Thoratec or ITC, to:

Thoratec Corporation

6035 Stoneridge Drive

Pleasanton, CA 94588

Attention: David Lehman, General Counsel

Facsimile: (925) 734-4043

Email: david.lehman@thoratec.com

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          with copies (which shall not constitute notice) to:

Latham & Watkins LLP

885 Third Avenue

New York, New York 10022

Attention: Charles K. Ruck, Esq., M. Adel Aslani-Far, Esq.

Facsimile: (212) 751-4864

Email: charles.ruck@lw.com, adel.aslanifar@lw.com

          If to Danaher or Radiometer, to:

Radiometer America Inc.

c/o Danaher Corporation

2099 Pennsylvania Avenue, 12th Floor

Washington, D.C. 20006-1813

Attention: Attila Bodi

Facsimile: (202) 828-0850

          with a copy (which shall not constitute notice) to:

Kirkland & Ellis LLP

601 Lexington Avenue

New York, NY 10022

Attention: Daniel E. Wolf

Facsimile: (212) 446-6460

Email: daniel.wolf@kirkland.com

     or to such other place and with such other copies as either party hereto may designate as to
itself by written notice to the other.

          (e) Service of Process, Consent to Jurisdiction; WAIVER OF JURY TRIAL.

          (i) Each party hereto irrevocably consents to the service of any process, pleading, notices or
other papers by the mailing of copies thereof by registered, certified or first class mail, postage
prepaid, to such party at such party’s address set forth herein, or by any other method provided or
permitted under New York law.

          (ii) Any claim, demand, action or cause of action (a) arising out of or relating to this
Agreement or (b) in any way connected with or related or incidental to the dealings of the parties
hereto in respect of this Agreement, in each case whether now existing or hereafter arising, and
whether in contract, tort, equity or otherwise, shall be instituted exclusively in the federal
court for the Southern District of New York, or, if such court does not take or have jurisdiction
over such claim, in any New York state court in the county of New York having jurisdiction over
such claim, and each party hereto agrees not to assert, by way of motion, as a defense or
otherwise, in any such claim, that it is not subject personally to the jurisdiction of any such
court, that the claim is brought in an inconvenient forum, that the venue of the claim is improper
or that this Agreement or the subject matter hereof may not be

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enforced in or by any such court. Each party hereto further irrevocably submits to the
jurisdiction of any such court in any such claim.

          (iii) EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS
AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS AGREEMENT, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION WILL BE DECIDED BY TRIAL WITHOUT A
JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

          (f) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, and all of which together shall constitute one and the same
instrument, binding upon the parties hereto. The execution of this Agreement by any of the parties
hereto may be evidenced by way of a facsimile transmission of such party’s signature, a photocopy
of such facsimile transmission or other electronic means, and such facsimile or other electronic
signature shall be deemed to constitute the original signature of such party.

          (g) Headings. The headings used in this Agreement are for the purpose of reference
only and shall not affect the meaning or interpretation of any provision of this Agreement.

          (h) Severability. In the event that any one or more of the provisions contained in
this Agreement, shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, then to the maximum extent permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement.

          (i) Further Acts. Each party shall execute such further instruments and documents and
shall perform such further acts as may be reasonably necessary or convenient to carry out and
perform the terms and provisions of this Agreement.

          (j) Construction. This Agreement shall be construed as if the parties jointly prepared
it and any uncertainty or ambiguity shall not be interpreted against any one party because of the
manner in which this Agreement was drafted or prepared.

*     *     *     *     *

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          IN WITNESS WHEREOF, the parties have executed this Termination and Release Agreement as of the
date first written above.

	 	 	 	 	 	 	 

	 	 	THORATEC CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Gary F. Burbach	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Gary F. Burbach
	 	 
	 

	 	Title:	 	CEO	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	INTERNATIONAL TECHNIDYNE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lawrence Cohen	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Lawrence Cohen	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	DANAHER CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan Graham	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Jonathan Graham	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	SVP & GC	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	RADIOMETER AMERICA INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James F. O’Reilly	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	James F. O’Reilly	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	VPExhibit 10.1

Exhibit 10.1

IDENIX PHARMACEUTICALS, INC.

2005 STOCK INCENTIVE PLAN

1. Purpose.

The purpose of this 2005 Stock Incentive Plan (the “Plan”) of Idenix Pharmaceuticals, Inc., a
Delaware corporation (the “Company”), is to advance the interests of the Company’s stockholders by
enhancing the Company’s ability to attract, retain and motivate persons who are expected to make
important contributions to the Company and by providing such persons with equity ownership
opportunities and performance-based incentives that are intended to align their interests with
those of the Company’s stockholders. Except where the context otherwise requires, the term
“Company” shall include any of the Company’s present or future parent or subsidiary corporations as
defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as amended, and any
regulations promulgated thereunder (the “Code”) and any other business venture (including, without
limitation, joint venture or limited liability company) in which the Company has a controlling
interest, as determined by the Board of Directors of the Company (the “Board”).

2. Eligibility.

All of the Company’s employees, officers, directors, consultants and advisors are eligible to
receive options, stock appreciation rights, restricted stock, restricted stock units and other
stock-based awards (each, an “Award”) under the Plan. Each person who receives an Award under the
Plan is deemed a “Participant”.

3. Administration and Delegation.

(a) Administration by Board of Directors. The Plan will be administered by the Board.
The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative
rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in
the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be
the sole and final judge of such expediency. All decisions by the Board shall be made in the
Board’s sole discretion and shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person acting pursuant to the authority
delegated by the Board shall be liable for any action or determination relating to or under the
Plan made in good faith.

(b) Appointment of Committees. To the extent permitted by applicable law, the Board
may delegate any or all of its powers under the Plan to one or more committees or subcommittees of
the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a
Committee of the Board or the officers referred to in Section 3(c) to the extent that the Board’s
powers or authority under the Plan have been delegated to such Committee or officers.

 

 

 

(c) Delegation to Officers. To the extent permitted by applicable law, the Board may
delegate to one or more officers of the Company the power to grant Awards to non-officer employees
or officers of the Company or any of its present or future subsidiary corporations and to exercise
such other powers under the Plan as the Board may determine, provided that the Board shall fix the
terms of the Awards to
be granted by such officers (including the exercise price of such Awards, which may include a
formula by which the exercise price will be determined) and the maximum number of shares subject to
Awards that the officers may grant; provided further, however, that no officer shall be authorized
to grant Awards to any “executive officer” of the Company (as defined by Rule 3b-7 under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) or to any “officer” of the
Company (as defined by Rule 16a-1 under the Exchange Act).

4. Stock Available for Awards.

(a) Number of Shares. Subject to adjustment under Section 9, Awards may be made under
the Plan for up to 8,200,000 shares of common stock, $.001 par value per share, of the Company (the
“Common Stock”) plus the number of shares previously authorized for issuance under the Company’s
2004 Stock Incentive Plan: (i) which are not subject to outstanding options on June 7, 2005; or
(ii) which become available for future Award grants as a result of the subsequent forfeiture, lapse
or expiration of options granted pursuant to the 2004 Stock Incentive Plan and outstanding as of
June 7, 2005. If any Award expires or is terminated, surrendered or canceled without having been
fully exercised or is forfeited in whole or in part (including as the result of shares of Common
Stock subject to such Award being repurchased by the Company at the original issuance price
pursuant to a contractual repurchase right) or results in any Common Stock not being issued, the
unused Common Stock covered by such Award shall again be available for the grant of Awards under
the Plan. Further, shares of Common Stock tendered to the Company by a Participant to exercise an
Award shall be added to the number of shares of Common Stock available for the grant of Awards
under the Plan. However, in the case of Incentive Stock Options (as hereinafter defined), the
foregoing provisions shall be subject to any limitations under the Code. Shares issued under the
Plan may consist in whole or in part of authorized but unissued shares or treasury shares.

(b) Section 162(m) Per-Participant Limit. The maximum number of shares of Common
Stock with respect to which Awards may be granted to any Participant under the Plan shall be
500,000 per calendar year. For purposes of the foregoing limit, the combination of an Option in
tandem with an SAR (as each is hereafter defined) shall be treated as a single Award. The
per-Participant limit described in this Section 4(b) shall be construed and applied consistently
with Section 162(m) of the Code or any successor provision thereto, and the regulations thereunder
(“Section 162(m)”).

5. Stock Options.

(a) General. The Board may grant options to purchase Common Stock (each, an “Option”)
and determine the number of shares of Common Stock to be covered by each Option, the exercise price
of each Option and the conditions and limitations applicable to the exercise of each Option,
including conditions relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option which is not intended to be an Incentive Stock Option (as
hereinafter defined) shall be designated a “Nonstatutory Stock Option”.

(b) Incentive Stock Options. An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be
granted to employees of the of Company, any of the of Company’s present or future parent or
subsidiary corporations as defined in Sections 424(e) or (f) of the Code, and any other entities
the employees of which are eligible to receive Incentive Stock Options under the Code, and shall be
subject to and shall be construed consistently with the requirements of Section 422 of the Code.
The Company shall have no liability to a Participant, or any
other party, if an Option (or any part thereof) that is intended to be an Incentive Stock
Option is not an Incentive Stock Option or for any action taken by the Board pursuant to Section
10(f), including without limitation the conversion of an Incentive Stock Option to a Nonstatutory
Stock Option.

 

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(c) Exercise Price. The Board shall establish the exercise price of each Option
provided however that the exercise price shall not be less than 100% of the Fair Market Value (as
hereinafter defined) per share of Common Stock on the date of grant. The exercise price shall be
specified in the applicable option agreement.

(d) Limitation on Repricing. Unless such action is approved by the Company’s
stockholders: (1) no outstanding Option granted under the Plan may be amended to provide an
exercise price per share that is lower than the then-current exercise price per share of such
outstanding Option (other than adjustments pursuant to Section 9) and (2) the Board may not cancel
any outstanding Option and grant in substitution therefore new Awards under the Plan covering the
same or a different number of shares of Common Stock and having an exercise price per share lower
than the then-current exercise price per share of the cancelled Option.

(e) No Reload Rights. No Option granted under the Plan shall contain any provision
entitling the optionee to the automatic grant of additional Options in connection with any exercise
of the original Option.

(f) Duration of Options. Each Option shall be exercisable at such times and subject to
such terms and conditions as the Board may specify in the applicable option agreement; provided
however that no Option will be granted for a term in excess of 10 years.

(g) Exercise of Option. Options may be exercised by delivery to the Company of a
written notice of exercise signed by the proper person or by any other form of notice (including
electronic notice) approved by the Board together with payment in full as specified in Section 5(h)
for the number of shares for which the Option is exercised. Shares of Common Stock subject to the
Option will be delivered by the Company following exercise either as soon as practicable or,
subject to such conditions as the Board shall specify, on a deferred basis (with the Company’s
obligation to be evidenced by an instrument providing for future delivery of the deferred shares at
the time or times specified by the Board).

(h) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option
granted under the Plan shall be paid for as follows:

(1) in cash or by check, payable to the order of the Company;

(2) except as the Board may otherwise provide in an option agreement, by (i) delivery of an
irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price and any required tax withholding or (ii)
delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the
exercise price and any required tax withholding;

(3) when the Common Stock is registered under the Securities Exchange Act of 1934 (the
“Exchange Act”), by delivery of shares of Common Stock owned by the Participant valued at their
fair market value as determined by (or in a manner approved by) the Board (“Fair Market Value”),
provided (i) such method of payment is then permitted under applicable law, (ii) such Common
Stock, if acquired directly from the Company, was owned by the Participant for at least six months
(or such other period as the Board may deem appropriate for purposes of satisfication of applicable
accounting rules), if any, as may be established by the Board in its discretion, and (iii) such
Common Stock is not subject to any repurchase, forfeiture, unfulfilled vesting or other similar
requirements;

 

3

 

(4) by payment of such other lawful consideration as the Board may determine; or

(5) by any combination of the above permitted forms of payment.

(i) Substitute Options. In connection with a merger or consolidation of an entity with
the Company or the acquisition by the Company of property or stock of an entity, the Board may
grant Options in substitution for any options or other stock or stock-based awards granted by such
entity or an affiliate thereof. Substitute Options may be granted on such terms as the Board deems
appropriate in the circumstances, notwithstanding any limitations on Options contained in the other
sections of this Section 5 or in Section 2. Substitute Options shall not count against the overall
share limit set forth in Section 4(a), except as may be required by reason of Section 422 and
related provisions of the Code.

6. Stock Appreciation Rights.

(a) General. A Stock Appreciation Right, or SAR, is an Award entitling the holder,
upon exercise, to receive an amount in Common Stock determined by reference to appreciation, from
and after the date of grant, in the fair market value of a share of Common Stock. The date as of
which such appreciation or other measure is determined shall be the exercise date.

(b) Grants. Stock Appreciation Rights may be granted in tandem with, or independent
of, Options granted under the Plan.

(c) Exercise. Stock Appreciation Rights may be exercised by delivery to the Company
of a written notice of exercise signed by the proper person or by any other form of notice
(including electronic notice) approved by the Board, together with any other documents required by
the Board.

7. Restricted Stock; Restricted Stock Units.

(a) General. The Board may grant Awards entitling recipients to acquire shares of
Common Stock (“Restricted Stock”), subject to the right of the Company to repurchase all or part of
such shares at their issue price or other stated or formula price from the recipient in the event
that conditions specified by the Board in the applicable Award are not satisfied prior to the end
of the applicable restriction period or periods established by the Board for such Award. Instead
of granting Awards for Restricted Stock, the Board may grant Awards entitling the recipient to
receive shares of Common Stock to be delivered at the time such shares of Common Stock vest
(“Restricted Stock Units”) (Restricted Stock and Restricted Stock Units are each referred to herein
as a “Restricted Stock Award”).

(b) Terms and Conditions. The Board shall determine the terms and conditions of a
Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue
price.

 

4

 

(c) Stock Certificates. Any stock certificates issued in respect of a Restricted
Stock Award shall be registered in the name of the Participant and, unless otherwise determined by
the Board, deposited by the Participant, together with a stock power endorsed in blank, with the
Company (or its designee). At
the expiration of the applicable restriction periods, the Company (or such designee) shall
deliver the certificates no longer subject to such restrictions to the Participant or if the
Participant has died, to the beneficiary designated, in a manner determined by the Board, by a
Participant to receive amounts due or exercise rights of the Participant in the event of the
Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by
a Participant, “Designated Beneficiary” shall mean the Participant’s estate.

8. Other Stock-Based Awards.

Other Awards of shares of Common Stock, and other Awards that are valued in whole or in part
by reference to, or are otherwise based on, shares of Common Stock or other property, may be
granted hereunder to Participants (“Other Stock Unit Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the future. Such Other
Stock Unit Awards shall also be available as a form of payment in the settlement of other Awards
granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise
entitled. Other Stock Unit Awards may be paid in shares of Common Stock or cash, as the Board
shall determine. Subject to the provisions of the Plan, the Board shall determine the conditions
of each Other Stock Unit Awards, including any purchase price applicable thereto.

9. Adjustments for Changes in Common Stock and Certain Other Events.

(a) Changes in Capitalization. In the event of any stock split, reverse stock split,
stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or
other similar change in capitalization or event, or any distribution to holders of Common Stock
other than an ordinary cash dividend, (i) the number and class of securities available under this
Plan, (ii) the sub-limit set forth in Section 4(b), (iii) the number and class of securities and
exercise price per share of each outstanding Option, (iv) the share- and per-share provisions of
each Stock Appreciation Right, (v) the repurchase price per share subject to each outstanding
Restricted Stock Award and (vi) the share- and per-share-related provisions of each outstanding
Other Stock Unit Award, shall be appropriately adjusted by the Company (or substituted Awards may
be made, if applicable) to the extent determined by the Board. If this Section 9(a) applies and
Section 9(b) also applies to any event, Section 9(b) shall be applicable to such event, and this
Section 9(a) shall not be applicable.

(b) Reorganization Events.

(1) Definition. A “Reorganization Event” shall mean: (a) any merger or consolidation
of the Company with or into another entity as a result of which all of the Common Stock of the
Company is converted into or exchanged for the right to receive cash, securities or other property
or is cancelled, (b) any exchange of all of the Common Stock of the Company for cash, securities or
other property pursuant to a share exchange transaction or (c) any liquidation or dissolution of
the Company.

 

5

 

(2) Consequences of a Reorganization Event on Awards Generally. Upon the occurrence
of a Reorganization Event, or the execution by the Company of any agreement with respect to a
Reorganization Event, the Board shall provide that all outstanding Awards shall be assumed, or
substantially equivalent awards shall be substituted, by the acquiring or succeeding corporation
(or an affiliate thereof). Notwithstanding the foregoing, if the acquiring or succeeding
corporation (or an affiliate thereof) does not agree to assume, or substitute for, such Awards,
then the Board may (i) upon written notice to a Participant, provide that the Participant’s
unexercised Options or other unexercised
Awards shall become exercisable in full and will terminate immediately prior to the
consummation of such Reorganization Event unless exercised by the Participant within a specified
period following the date of such notice, (ii) provide that outstanding Awards shall become
realizable or deliverable, or restrictions applicable to an Award shall lapse, in whole or in part
prior to or upon such Reorganization Event, (iii) in the event of a Reorganization Event under the
terms of which holders of Common Stock will receive upon consummation thereof a cash payment for
each share surrendered in the Reorganization Event (the “Acquisition Price”), make or provide for a
cash payment to a Participant equal to (A) the Acquisition Price times the number of shares of
Common Stock subject to the Participant’s Options or other Awards (to the extent the exercise price
does not exceed the Acquisition Price) minus (B) the aggregate exercise price of all such
outstanding Options or other Awards, in exchange for the termination of such Options or other
Awards, (iv) provide that, in connection with a liquidation or dissolution of the Company, Awards
shall convert into the right to receive liquidation proceeds (if applicable, net of the exercise
price thereof) and (v) any combination of the foregoing.

(3) Consequences of a Reorganization Event on Awards Other than Restricted Stock
Awards. For purposes of Section (2) above, an Option, SAR or Other Stock Unit Award shall be
considered assumed if, following consummation of the Reorganization Event, the Option, SAR or Other
Stock Unit Award confers the right to receive, for each share of Common Stock subject to the
Option, SAR or Other Stock Unit Award immediately prior to the consummation of the Reorganization
Event, the consideration (whether cash, securities or other property) received as a result of the
Reorganization Event by holders of Common Stock for each share of Common Stock held immediately
prior to the consummation of the Reorganization Event (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding
shares of Common Stock); provided, however, that if the consideration received as a result of the
Reorganization Event is not solely common stock of the acquiring or succeeding corporation (or an
affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation,
provide for the consideration to be received upon the exercise or other payment of Options, SARs or
Other Stock Unit Awards to consist solely of common stock of the acquiring or succeeding
corporation (or an affiliate thereof) equivalent in value (as determined by the Board) to the per
share consideration received by holders of outstanding shares of Common Stock as a result of the
Reorganization Event. To the extent all or any portion of an Option becomes exercisable solely as
a result of clause (2)(i) above, the Board may provide that upon exercise of such Option the
Participant shall receive shares subject to a right of repurchase by the Company or its successor
at the Option exercise price; such repurchase right (x) shall lapse at the same rate as the Option
would have become exercisable under its terms and (y) shall not apply to any shares subject to the
Option that were exercisable under its terms without regard to clause (2)(i) above.

(4) Consequences of a Reorganization Event on Restricted Stock Awards. Upon the
occurrence of a Reorganization Event other than a liquidation or dissolution of the Company, the
repurchase and other rights of the Company under each outstanding Restricted Stock Award shall
inure to the benefit of the Company’s successor and shall apply to the cash, securities or other
property which the Common Stock was converted into or exchanged for pursuant to such Reorganization
Event in the same manner and to the same extent as they applied to the Common Stock subject to such
Restricted Stock Award. Upon the occurrence of a Reorganization Event involving the liquidation or
dissolution of the Company, except to the extent specifically provided to the contrary in the
instrument evidencing any Restricted Stock Award or any other agreement between a Participant and
the Company, all restrictions and conditions on all Restricted Stock Awards then outstanding shall
automatically be deemed terminated or satisfied.

 

6

 

10. General Provisions Applicable to Awards.

(a) Transferability of Awards. Except as the Board may otherwise determine or provide
in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by
the person to whom they are granted, either voluntarily or by operation of law, except by will or
the laws of descent and distribution or, other than in the case of an Incentive Stock Option,
pursuant to a qualified domestic relations order, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent relevant in the
context, shall include references to authorized transferees.

(b) Documentation. Each Award shall be evidenced in such form (written, electronic or
otherwise) as the Board shall determine. Each Award may contain terms and conditions in addition
to those set forth in the Plan.

(c) Board Discretion. Except as otherwise provided by the Plan, each Award may be
made alone or in addition or in relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly.

(d) Termination of Status. The Board shall determine the effect on an Award of the
disability, death, retirement, authorized leave of absence or other change in the employment or
other status of a Participant and the extent to which, and the period during which, the
Participant, or the Participant’s legal representative, conservator, guardian or Designated
Beneficiary, may exercise rights under the Award.

(e) Withholding. Each Participant shall pay to the Company, or make provision
satisfactory to the Company for payment of, any taxes required by law to be withheld in connection
with an Award to such Participant. If provided for in an Award or otherwise approved by the
Company, for so long as the Common Stock is registered under the Exchange Act, Participants may
satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including
shares retained from the Award creating the tax obligation, valued at their Fair Market Value;
provided, however, except as otherwise provided by the Board, that the total tax withholding where
stock is being used to satisfy such tax obligations cannot exceed the Company’s minimum statutory
withholding obligations (based on minimum statutory withholding rates for federal and state tax
purposes, including payroll taxes, that are applicable to such supplemental taxable income).
Shares surrendered to satisfy tax withholding requirements cannot be subject to any repurchase,
forfeiture, unfulfilled vesting or other similar requirements. The Company may, to the extent
permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to a
Participant.

(f) Amendment of Award. Except as otherwise provided in Section 5(d), the Board may
amend, modify or terminate any outstanding Award, including but not limited to, substituting
therefor another Award of the same or a different type, changing the date of exercise or
realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that
the Participant’s consent to such action shall be required unless the Board determines that the
action, taking into account any related action, would not materially and adversely affect the
Participant.

(g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously
delivered under the Plan until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters
in connection with the issuance and
delivery of such shares have been satisfied, including any applicable securities laws and any
applicable stock exchange or stock market rules and regulations, and (iii) the Participant has
executed and delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules or regulations.

 

7

 

(h) Acceleration. The Board may at any time provide that any Award shall become
immediately exercisable in full or in part, free of some or all restrictions or conditions, or
otherwise realizable in full or in part, as the case may be.

(i) Performance Conditions.

(1) This Section 10(i) shall be administered by a Committee approved by the Board, all of the
members of which are “outside directors” as defined by Section 162(m) or in the absence of a
committee so constituted, the Board as a whole (the “Section 162(m) Committee”).

(2) Notwithstanding any other provision of the Plan, if the Section 162(m) Committee
determines, at the time a Restricted Stock Award or Other Stock Unit Award is granted to a
Participant, that such Participant is, or may be as of the end of the tax year in which the Company
would claim a tax deduction in connection with such Award, a Covered Employee (as defined in
Section 162(m)), then the Section 162(m) Committee may provide that this Section 10(i) is
applicable to such Award.

(3) If a Restricted Stock Award or Other Stock Unit Award is subject to this Section 10(i),
then the lapsing of restrictions thereon and the distribution of cash or Shares pursuant thereto,
as applicable, shall be subject to the achievement of one or more objective performance goals
established by the Section 162(m) Committee, which shall be based on the relative or absolute
attainment of specified levels of one or any combination of the following: (a) stock price, (b)
market share, (c) regulatory compliance, (d) total shareholder return, (e) cash flow, (f) filing of
regulatory applications with respect to new product candidates and drug products, (g) commercial
launch of new drug products, (h) successful completion of clinical trials, and (i) successful
discovery of new drug candidates and may be absolute in their terms or measured against or in
relationship to other companies comparably, similarly or otherwise situated. Such performance
goals: (i) may vary by Participant and may be different for different Awards; (ii) may be
particular to a Participant or the department, branch, line of business, subsidiary or other unit
in which the Participant works and may cover such period as may be specified by the Section 162(m)
Committee; and (iii) shall be set by the Section 162(m) Committee within the time period prescribed
by, and shall otherwise comply with the requirements of, Section 162(m).

(4) Notwithstanding any provision of the Plan, with respect to any Restricted Stock Award or
Other Stock Unit Award that is subject to this Section 10(i), the Section 162(m) Committee may
adjust downwards, but not upwards, the cash or number of Shares payable pursuant to such Award, and
the Section 162(m) Committee may not waive the achievement of the applicable performance goals
except in the case of the death or disability of the Participant.

(5) The Section 162(m) Committee shall have the power to impose such other restrictions on
Awards subject to this Section 10(i) as it may deem necessary or appropriate to ensure that such
Awards satisfy all requirements for “performance-based compensation” within the meaning of Section
162(m)(4)(C) of the Code, or any successor provision thereto.

 

8

 

11. Miscellaneous.

(a) No Right To Employment or Other Status. No person shall have any claim or right
to be granted an Award, and the grant of an Award shall not be construed as giving a Participant
the right to continued employment or any other relationship with the Company. The Company
expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a
Participant free from any liability or claim under the Plan, except as expressly provided in the
applicable Award.

(b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any
shares of Common Stock to be distributed with respect to an Award until becoming the record holder
of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the
Common Stock by means of a stock dividend and the exercise price of and the number of shares
subject to such Option are adjusted as of the date of the distribution of the dividend (rather than
as of the record date for such dividend), then an optionee who exercises an Option between the
record date and the distribution date for such stock dividend shall be entitled to receive, on the
distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such
Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of
business on the record date for such stock dividend.

(c) Effective Date and Term of Plan. The Plan shall become effective on the date on
which it is adopted by the Board, but no Award may be granted unless and until the Plan has been
approved by the Company’s stockholders. No Awards shall be granted under the Plan after the
completion of 10 years from the earlier of (i) the date on which the Plan was adopted by the Board
or (ii) the date the Plan was approved by the Company’s stockholders, but Awards previously granted
may extend beyond that date.

(d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time; provided that, to the extent determined by the Board, no amendment
requiring stockholder approval under any applicable legal, regulatory or listing requirement shall
become effective until such stockholder approval is obtained. No Award shall be made that is
conditioned upon stockholder approval of any amendment to the Plan.

(e) Provisions for Foreign Participants. The Board may modify Awards or Options
granted to Participants who are foreign nationals or employed outside the United States or
establish subplans or procedures under the Plan to recognize differences in laws, rules,
regulations or customs of such foreign jurisdictions with respect to tax, securities, currency,
employee benefit or other matters.

 

9

 

(f) Compliance With Code Section 409A. No Award shall provide for deferral of
compensation that does not comply with Section 409A of the Code, unless the Board, at the time of
grant, specifically provides that the Award is not intended to comply with Section 409A of the
Code.

(g) Governing Law. The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the State of Delaware, excluding
choice-of-law principles of the law of such state that would require the application of the laws of
a jurisdiction other than such state.

(h) Authorization of Sub-Plans. The Board may from time to time establish one or more
sub-plans under the Plan for purposes of satisfying applicable blue sky, securities or tax laws of
various jurisdictions. The Board shall establish such sub-plans by adopting supplements to this
Plan containing (i)
such limitations on the Board’s discretion under the Plan as the Board deems necessary or
desirable or (ii) such additional terms and conditions not otherwise inconsistent with the Plan as
the Board shall deem necessary or desirable. All supplements adopted by the Board shall be deemed
to be part of the Plan, but each supplement shall apply only to Participants within the affected
jurisdiction and the Company shall not be required to provide copies of any supplement to
Participants in any jurisdiction which is not the subject of such supplement.

 

10

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