Document:

aiq-ex1041_357.htm

Exhibit 10.41

 

[_______], 2016

 

 

Dear [Employee Name]:

 

I am pleased to notify you that Alliance HealthCare Services, Inc. (the “Company”) has selected you to be a participant in the Alliance HealthCare Services, Inc. Long Term Incentive Program (the “Program”) for the 2016 Plan Year.  You have been granted the following under the Program:

	
 
	
1.
	
An award of options to purchase [______] shares of the Company’s common stock  granted under the Company’s 1999 Equity Plan for Employees of Alliance and Subsidiaries (as amended from time to time, the “Plan”) and evidenced by a stock option agreement in a form previously approved by the Company with a per share exercise price equal to the closing stock trading price per share of the Company’s common stock on the date approval (the “Grant Date”).  

[If, on or prior to [_____, 2016], you execute your Amendment to Executive Severance Agreement as approved by the Special Committee of the Board on March 23, 2016 (the “Performance Vesting Condition”), the Option will vest as follows] [The Option will vest as follows]:  

	
 
	
·
	
One-third (1/3) of the Option will vest on the first anniversary of the Grant Date, subject to your continued employment through the vesting date. 

	
 
	
·
	
The remaining two-thirds (2/3) of the Option will vest in equal installments on each of the second and third anniversary of the Grant Date, subject in each case to your continued employment through the vesting date.  

All other terms of the Option will be pursuant to the Plan. 

	
 
	
2.
	
An award of [_____] restricted stock units (“RSUs”) granted under the Plan and evidenced by a restricted stock unit agreement in a form previously approved by the Company.  

[In the event the Performance Vesting Condition is met on or prior to [_____, 2016], the RSUs will vest as follows] [The RSUs will vest as follows]:  

	
 
	
·
	
One-third (1/3) of the RSUs will vest on the first anniversary of the Grant Date, subject to your continued employment through the vesting date. 

 

 

	
 
	
·
	
The remaining two-thirds (2/3) of the RSUs will vest in equal installments on each of the second and third anniversary of the Grant Date, subject in each case to your continued employment through the vesting date.   

All other terms of the RSUs will be pursuant to the Plan and the RSU agreement. 

	
 
	
3.
	
Cash Award. Under this award, you are eligible to earn a target cash award of $[_____][, 25% of which will be earned] if the Company meets or exceeds the target for 2016 Adjusted EBITDA less minority interests (“Adjusted EBITDA”) [and the remaining 75% of which will be subject to solely time-vesting conditions set forth below].  The 2016 Adjusted EBITDA target is $[         ].  

The Company’s 2016 Adjusted EBITDA for purposes of this award will be determined by the Compensation Committee of the Board of Directors (the “Committee”) and will take into account adjustments that the Committee believes are appropriate, such as for acquisitions or dispositions during the year.  If 2016 Adjusted EBITDA is less than the target, any amount earned under this award will be at the Committee’s discretion.  If 2016 Adjusted EBITDA meets or exceeds the target, then you will earn the target amount.

[In the event the Performance Vesting Condition is met on or prior to [_____, 2016] any cash award earned will vest and be paid as follows] [Any cash award earned will vest and be paid as follows]:  

	
 
	
·
	
One-third (1/3) of the earned award will vest on December 31, 2016 and will be paid by March 15, 2017, subject to your continued employment through December 31, 2016.  

	
 
	
·
	
The remaining two-thirds (2/3) of the earned award will vest in equal installments on December 31, 2017 and December 31, 2018, subject in each case to your continued employment through the vesting date.  Payment will be made in each case within two and one-half months after the applicable vesting date.

There are exceptions to these vesting requirements in the event of a qualifying termination following a change of control of the Company or if your employment is terminated as a result of death or disability.  Additional terms of your Cash Award are described in Exhibit A to this letter.

[In the event the Performance Vesting Condition is not met on or prior to [_____, 2016], then the foregoing Options, RSUs and cash award shall never vest and instead shall immediately terminate.]

If you have any questions about the Program or your award, please contact Laurie Miller at lrmiller@alliancehealthcareservices-us.com.

 

Page 2 of 2

 

 

Congratulations on being selected as a participant in the Program!

	
	
Sincerely,

	
 

	
 

	
Percy C. Tomlinson
President and Chief Executive Officer

 

 

 

 

 

Exhibit A

Additional Terms of 2016 Cash Award

Additional terms applicable to your Cash Award are set forth below:

	
1.
	
The Compensation Committee (the “Committee”) of the Board of Directors of Alliance HealthCare Services, Inc. (the “Company”) shall administer all Cash Awards (“Awards”) granted to employees of the Company or its subsidiaries (“Participants”).  All determinations under Awards, including the Company’s 2016 Adjusted EBITDA and the calculation of all payments under the Awards, shall be made by the Committee or its delegates in its or their discretion, and all determinations of the Committee or its delegates with respect to Awards shall be final and binding on all parties.

	
2.
	
Except as otherwise provided below, upon any termination of a Participant’s employment prior to the vesting of all amounts earned based on the Company’s achievement of 2016 Adjusted EBITDA or the vesting of any amounts subject to solely time-vesting conditions, all rights of the Participant to any subsequent payments with respect to the unvested portion of the Award shall immediately terminate. 

	
3.
	
Upon any termination of a Participant’s employment as a result of death or Disability (as defined below) after 2016, but prior to the vesting of all amounts earned based on the Company’s achievement of 2016 Adjusted EBITDA, any such earned but unvested amounts and any amounts subject to solely time-vesting conditions shall become fully vested and shall be paid to the Participant or the Participant’s estate (in the case of death) by March 15 of the year immediately following the year in which such termination occurred.

	
4.
	
If a Change of Control (as defined below) occurs prior to 2017, then the target for 2016 Adjusted EBITDA shall be assumed to have been met.

	
5.
	
 If the Change of Control occurs prior to 2017, and the Participant’s employment is terminated by the Company without Cause (as defined below) or by the Participant for Good Reason (as defined below) within twelve months following the Change of Control, then the Awards shall vest and be paid in full on the date such termination. 

	
6.
	
If the Change of Control occurs after 2016 and prior to the vesting of all amounts earned based on the Company’s achievement of 2016 Adjusted EBITDA or the vesting of amounts subject to solely time-vesting conditions, and the Participant’s is terminated by the Company without Cause (as defined below) or by the Participant for Good Reason (as defined below) within twelve months following the Change of Control, then any such earned but unvested amounts shall vest and be paid in full on the date of such termination.  

	
7.
	
If the Participant’s employment is terminated by the Company with Cause or by the Participant without Good Reason at any time, all rights of the Participant to any subsequent payments under the Award shall immediately terminate.

 

	
8.
	
The following terms shall have the definitions specified below unless a different meaning is clearly indicated: 

	
 
	
(a)
	
“Cause” means (i) the Participant’s conviction of, or guilty or no contest plea to, any crime that constitutes a felony, or any misdemeanor that involves the purchase or sale of any security, the taking of a false oath, the making of a false report, bribery, perjury, burglary, larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds or securities, or a conspiracy to commit any of these offenses, or substantially equivalent activity; (ii) the Participant’s commission of any act of theft, dishonesty, fraud or embezzlement; (iii) the Participant’s failure to perform the Participant’s duties to the reasonable satisfaction of the Company or to carry out instructions by the executive officers or the Board of Directors of the Company, or breaches Company policies or procedures; provided that, unless the Company, in its sole discretion, determines that such a failure or breach is incurable, such failure or breach will only constitute grounds for termination for Cause if such failure or breach is not cured by the Participant to the satisfaction of the Company within 15 business days after the Company gives the Participant written notice identifying the manner in which the Company believes that the Participant failed to perform or breached; (iv) the Participant’s causation of, in the reasonable judgment of the Company, substantial damage to the Company’s reputation and goodwill, or the Participant’s subjection of the Company, in the reasonable judgment of the Company, to legal harm; or (v) the Participant’s engagement, in the reasonable judgment of the Company, in conduct disloyal to the Company and/or breach of the Participant’s fiduciary duties to the Company.

	
 
	
(b)
	
“Change of Control” means the occurrence of any of the following: (i) the sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the assets of the Company and its subsidiaries, taken as a whole; or (ii) the acquisition by any person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”), or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities (within the meaning of Rule 13d-5(b)(1) under the Exchange Act), other than the Permitted Holders (as defined below) and their Related Parties (as defined below), in a single transaction or in a related series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of 50% or more of the total voting power of the stock of the Company entitled to vote.  “Permitted Holders” means OCM Principal Opportunities Fund IV, L.P. (“Oaktree”), MTS Health Investors II, L.P. (“MTS”), Fujian Thai Hot Investment Co., Ltd. (“Fujian Thai Hot”) and subsidiaries or affiliates of Oaktree, MTS and/or Thai Hot.  “Related Parties” means any person controlled by a Permitted Holder, including any partnership of which a Permitted Holder or its affiliates is the general partner.

	
 
	
(c)
	
“Disability” means the Participant’s inability to engage in the activities required by his employment by reason of any medically determined physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, as reasonably determined by the Committee in its discretion.

Page 2 of Exhibit A

 

	
 
	
(d)
	
“Good Reason” means the occurrence of any of the following without the Participant’s consent: 

	
 
	
(i)
	
the Company’s material reduction of the Participant’s base salary;

	
 
	
(ii)
	
the assignment to the Participant of any duties which diminish in any material respect the Participant’s position with the Company (including titles and reporting requirements), authority, duties or responsibilities;

	
 
	
(iii)
	
any material failure by the Company to comply with any of the provisions of any employment agreement between the Participant and the Company, which is not remedied within thirty (30) days after written notice thereof from the Participant;

	
 
	
(iv)
	
if the Participant is not based in the Company’s Resource Center in Southern California, the Company’s requirement that the Participant materially change the location of the Participant’s principal office to a facility or a location more than sixty (60) miles from the Participant’s then-current residence; or

	
 
	
(v)
	
if the Participant’s principal office is located in the Company’s Resource Center in Southern California, the Company’s movement of the Resource Center more than sixty (60) miles from the then-present office location. 

The Company and the Participant further agree that, for a resignation to constitute a resignation by the Participant for “Good Reason,” (i) the Participant must provide written notice to the Company of the Participant’s intent to resign within thirty (30) days of one of the triggering events outlined in this definition, (ii) the Company must fail to cure the condition giving rise to “Good Reason” within thirty (30) days following its receipt of Participant’s notice and (iii) Participant’s resignation must be effective within thirty (30) days following the Company’s failure to cure.

	
9.
	
To the extent applicable, the Award shall be interpreted in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Department of Treasury regulations and other interpretive guidance issued thereunder.  To the extent required for purposes of compliance with Code Section 409A, payments under the Award may be delayed by six months after the Participant’s separation from service (as defined in Code Section 409A).  The Committee may modify, amend or discontinue the Long Term Incentive Program or the Award at any time.  The Award and any payments made under the Award shall be subject to any recoupment, clawback or similar policies adopted by the Company from time to time (to the extent contemplated by such policies) and any recoupment, clawback or similar requirements made applicable by law, regulation or listing standards to the Company from time to time (to the extent contemplated by such requirements).

Page 3 of Exhibit Adiod-ex101_15.htm

EXHIBIT 10.1

 

DIODES INCORPORATED

2013 EQUITY INCENTIVE PLAN

STOCK UNIT AGREEMENT

Diodes Incorporated, a Delaware corporation, (the “Company”), hereby commits to award Stock Units to the Participant named below.  The terms and conditions of the Award are set forth in this cover sheet and in the attached Stock Unit Agreement (together, this “Agreement”) and in the Diodes Incorporated 2013 Equity Incentive Plan as it may be amended from time to time (the “Plan”).   This Agreement is the Stock Unit Agreement referenced in Section 2.1(ii) of the employment agreement by and between Participant and the Company, dated July 10, 2015, (the “Employment Agreement”).  For purposes of this Agreement, a “Qualifying Termination” occurs on the date of termination of Participant’s employment with the Company due to either (i) a termination by Participant for “good reason” (as defined in the Employment Agreement), (ii) a termination by the Company without “cause” (as defined in the Employment Agreement), (iii) Participant’s death, or (iv) Participant’s Disability.  This Award is intended to constitute qualifying performance-based compensation under Code Section 162(m) and will be interpreted and administered in accordance with such intention.

Date of Award:   July 21, 2015

Name of Participant (“Participant”, “you”, or “your”):   Keh-Shew Lu

Number of Stock Units Potentially to be Awarded: 700,000

Expiration Date: June 1, 2025

Scheduled Dates of Grants: Subject to Participant’s continued Service through each applicable Date of Grant, the following number of Stock Units shall be granted to Participant.  Except as set forth below, all Stock Units shall be unvested at the time of grant.  A Stock Unit is only considered to be outstanding after its actual Date of Grant.  All numbers of Stock Units reflected in this Agreement shall be subject to adjustment by the Company as specified in Section 13.

	
Scheduled Date of Grant
	
 
	
Number of Stock Units
	
 

	
July 21, 2015
	
 
	
 
	
150,000
	
 

	
July 1, 2016
	
 
	
 
	
250,000
	
 

	
July 1, 2017
	
 
	
 
	
250,000
	
 

	
July 1, 2018
	
 
	
 
	
50,000
	
 

Vesting Terms: 

As of the Date of Award, none of the Stock Units subject to this Agreement are “Vested Stock Units”.  Participant will receive a benefit with respect to this Award only to the extent that a Stock Unit becomes a “Vested Stock Unit”. For any Stock Unit to become a “Vested Stock Unit”, two separate vesting conditions must each be satisfied.

Accordingly, in order for a Stock Unit to become a Vested Stock Unit, one vesting condition is that such Stock Unit becomes “Service-Based Vested” (as described below) and the other vesting condition is that it becomes “Performance-Based Vested” (as described below).  For avoidance of doubt, Participant will have no rights with respect to compensation under this Award to the extent that Stock Units are not Performance-Based Vested (regardless of the extent to which Stock Units are Service-Based Vested). All outstanding Stock Units that are not Vested Stock Units as of the Expiration Date shall be then forfeited without consideration.  

Service-Based Vested Requirement: The Service-Based Vested requirements will be satisfied in installments as to this Award as follows: As long as Participant renders continuous Service, the number of then outstanding Stock Units which are not Service-Based Vested will become incrementally Service-Based Vested on an annual basis in the amounts (and on the dates) shown in the table below.

 

 

	
Date
	
 
	
Incremental Number of Stock Units Granted
	
 
	
 
	
Incremental Number of Service-Based Units
	
 

	
July 21, 2015
	
 
	
 
	
150,000
	
 
	
 
	
 
	
 
	
 

	
July 1, 2016
	
 
	
 
	
250,000
	
 
	
 
	
 
	
100,000
	
 

	
July 1, 2017
	
 
	
 
	
250,000
	
 
	
 
	
 
	
100,000
	
 

	
July 1, 2018
	
 
	
 
	
50,000
	
 
	
 
	
 
	
100,000
	
 

	
July 1, 2019
	
 
	
 
	
 
	
 
	
 
	
 
	
100,000
	
 

	
July 1, 2020
	
 
	
 
	
 
	
 
	
 
	
 
	
100,000
	
 

	
July 1, 2021
	
 
	
 
	
 
	
 
	
 
	
 
	
100,000
	
 

	
July 1, 2022
	
 
	
 
	
 
	
 
	
 
	
 
	
100,000
	
 

	
Totals
	
 
	
 
	
700,000
	
 
	
 
	
 
	
700,000
	
 

Except as otherwise provided under a Qualifying Termination or Change of Control, no Stock Units (which are not Service-Based Vested) can become Service-Based Vested before the above scheduled dates for Service-Based Vesting.  Additionally, except as otherwise provided under a Qualifying Termination, no Stock Units (which are not Service-Based Vested) can become Service-Based Vested after Participant’s Service has terminated and any Stock Units that are not Service-Based Vested shall be forfeited without consideration on the Participant’s Termination Date.  In all cases, the resulting aggregate number of Service-Based Vested Stock Units will be rounded down to the nearest whole number.  

Performance-Based Vested Requirement: Provided that the Participant is still then rendering continuous Service, the Performance-Based Vested requirements will be deemed satisfied (if ever) for all outstanding Stock Units as of the third business day after the date that the Company files with the SEC an Annual Report on Form 10-K (or Form 10-K/A)  or a Quarterly Report on Form 10-Q (or Form 10-Q/A) which contains financial statements stating that the Company’s aggregate gross profit (as determined in accordance with GAAP) for the four most recently completed fiscal quarters equals or exceeds the “Goal Gross Profit” (the date of such satisfaction is the “Performance Goal Attainment”).  If before the occurrence of any Performance Goal Attainment, either the Participant experiences a Qualifying Termination or there is a Change of Control, then Stock Units can become Performance-Based Vested based on the Pro-Rata Performance Percentage as set forth below.  In all cases, the resulting aggregate number of Performance-Based Vested Stock Units will be rounded down to the nearest whole number.  Any grants of Stock Units under this Agreement that are issued after Performance Goal Attainment shall be granted as Performance-Based Vested Stock Units.  As of the Date of the Award, the Goal Gross Profit is $600 million.

For purposes of this Agreement, “Change of Control” shall have the same definition provided to “Change in Control” in the Plan except that in subclause (i) of such Change in Control definition, twenty-five percent (25%) shall be replaced by fifty percent (50%).

For purposes of this Agreement, “Pro-Rata Performance Percentage” means, as of any point in time, a percentage (not to exceed 100% and not to be less than 0%) that is equal to the quotient of (i) the Company’s aggregate gross profit for the most recently completed Company fiscal quarters (the “Four Quarter Gross Profit”) minus the Base Gross Profit, divided by (ii) the Increase Gross Profit.  As of the Date of the Award, the Base Gross Profit is $278 million and the Increase Gross Profit is $322 million.

As permitted by the Plan, the Goal Gross Profit, Four Quarter Gross Profit, Increase Gross Profit and Base Gross Profit figures will be proportionately adjusted by the Committee in the event that after the Date of Award and before the Expiration Date the Company effects in any 12 month period any divestiture (or series of divestitures) of operating assets transaction(s) in which the disposed of assets in the aggregate directly generated more than twenty percent of the Company’s gross profit for the four most recently completed fiscal quarters preceding the initial divestiture.  However, the Goal Gross Profit, Four Quarter Gross Profit, Increase Gross Profit and Base Gross Profit figures will not be adjusted in the event of Company acquisitions of third party companies, businesses or assets.  

Qualifying Termination:  Upon a Qualifying Termination that occurs before Performance Goal Attainment, the number of then outstanding Stock Units shall be multiplied by the Pro-Rata Performance Percentage to determine how many (if any) Stock Units become Performance-Based Vested.  Upon a Qualifying Termination that occurs (i) on or after Performance Goal Attainment and (ii) before a scheduled date of grant for Stock Units that were supposed to be granted in the Fiscal Year in which Participant’s Termination Date occurs, then such number of ungranted Stock Units shall be deemed granted as Vested Stock Units as of Participant’s Termination Date.  No further Stock Units shall be granted after a Qualifying Termination.  All outstanding Stock Units shall be Service-Based Vested upon a Qualifying Termination.

Change of Control:  Upon a Change of Control that occurs before Performance Goal Attainment, the number of then outstanding Stock Units shall be multiplied by the Pro-Rata Performance Percentage to determine how many (if any) Stock Units become Performance-Based Vested.  Upon a Change of Control that occurs (i) on or after Performance Goal Attainment and (ii) before a 

 

 

scheduled date of grant for Stock Units that were supposed to be granted in the Fiscal Year in which Participant’s Termination Date occurs, then such number of ungranted Stock Units shall be deemed granted as Vested Stock Units as of immediately before the Change of Control.  No further Stock Units shall be granted after a Change of Control.  All outstanding Stock Units shall be Service-Based Vested upon a Change of Control.

Upon termination of your Service at any time (whether before or after Performance Goal Attainment) due to either your resignation without good reason or termination by the Company for cause (as such terms are defined in the Employment Agreement), then no further grants of Stock Units shall be issued under this Agreement and all then outstanding Stock Units subject to this Agreement shall be forfeited to the Company without consideration as of your Termination Date.  

Vesting of Stock Units shall be provided only as expressly enumerated above and otherwise no partial vesting credit will be provided no matter when your Termination Date occurs.  

By signing this cover sheet, you agree to all of the terms and conditions described in this Agreement and in the Plan.  You are also acknowledging receipt of this Agreement and a copy of the Plan and the Plan’s prospectus. Any inconsistency between this Agreement and the Plan shall be resolved by reference to the Plan.

 

	
Participant:
	
 
	
/S/ Keh-Shew Lu

	
 
	
 
	
(Signature)

	
 
	
 
	
 

	
Company:
	
 
	
/S/ Richard D. White

	
 
	
 
	
(Signature)

	
 
	
 
	
 

	
Title:
	
 
	
 
	
Chief Financial Officer

 

 

Attachment 

 

 

DIODES INCORPORATED
2013 EQUITY INCENTIVE PLAN

STOCK UNIT AGREEMENT

	
1.
	
The Plan and Other Agreements
	
The text of the Plan is incorporated in this Agreement by reference.  You and the Company agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.  Unless otherwise defined in this Agreement, certain capitalized terms used in this Agreement are defined in the Plan.

This Agreement and the Plan constitute the entire understanding between you and the Company regarding this Award of Stock Units.  Any prior agreements, commitments or negotiations concerning this Award are superseded.

	
2.
	
Award of Stock Units
	
Subject to the terms of this Agreement, the Company commits to award you the number of Stock Units shown on the cover sheet of this Agreement.  The Award is subject to the terms and conditions of this Agreement and the Plan.  The Company will not issue any Shares if the issuance of such Shares at that time would violate any law or regulation.

	
3.
	
Vesting and Settlement
	
This Award will vest according to the Vesting Terms described in the cover sheet of this Agreement.  To the extent a Stock Unit becomes a Vested Stock Unit and subject to your satisfaction of any tax withholding obligations as discussed below, each Vested Stock Unit will entitle you to receive one Share which will be distributed to you on the applicable vesting date as set forth in this Agreement.  Issuance of such Shares shall be in complete satisfaction of such Vested Stock Units.  Such settled Stock Units shall be immediately cancelled and no longer outstanding and you shall have no further rights or entitlements related to those settled Stock Units.

 

	
4.
	
Transfer of Award
	
You cannot gift, transfer, assign, alienate, pledge, hypothecate, attach, sell, or encumber this Award.  If you attempt to do any of these things, this Award will immediately become invalid.  You may, however, dispose of this Award in your will or it may be transferred by the laws of descent and distribution.  Regardless of any marital property settlement agreement, the Company is not obligated to recognize your spouse’s interest in your Award in any other way.

	
5.
	
Leaves of Absence
	
For purposes of this Award, your Service does not terminate when you go on a bona fide leave of absence that was approved by the Company in writing, if the terms of the leave of absence provide for Service crediting, or when Service crediting is required by applicable law.  Your Service terminates in any event when the approved leave of absence ends unless you immediately return to active work.

The Company determines which leaves of absence count for this purpose (along with determining the effect of a leave of absence on vesting of the Award), and when your Service terminates for all purposes under the Plan.

 

 

	
  6.
	
Stockholder Rights
	
As a holder of Stock Units, you shall have no rights other than those of a general creditor of the Company.  Subject to the terms of this Agreement, a holder of outstanding Stock Units has none of the rights and privileges of a stockholder of the Company.  Without limiting the generality of the foregoing, a holder of outstanding Stock Units has no right to vote or to receive dividends (if any) on the shares represented by such Stock Units.  Subject to the terms and conditions of this Agreement, Stock Units create no fiduciary duty of the Company to you and only represent an unfunded and unsecured contractual obligation of the Company.  The Stock Units shall not be treated as property or as a trust fund of any kind.

You, or your estate, shall have no rights as a stockholder of the Company with regard to the Award until you have been issued the applicable Shares by the Company and have satisfied all other conditions specified in the Plan.  No adjustment shall be made for cash or stock dividends or other rights for which the record date is prior to the date when such applicable Shares are issued, except as provided in the Plan.

	
7. 
	
Taxes and Withholding
	
You will be solely responsible for payment of any and all applicable taxes, including without limitation any penalties or interest based upon such tax obligations, associated with this Award.

The delivery to you of any Shares underlying Vested Stock Units will not be permitted unless and until you have satisfied any withholding or other taxes that may be due.  Any such tax withholding obligations may be settled in the Company’s discretion by the Company withholding and retaining a portion of the Shares from the Shares that would otherwise be deliverable to you under the vesting Stock Units as provided in the next two sentences.  Such withheld Shares will be applied to pay the withholding obligation by using the aggregate fair market value of the withheld Shares as of the date of settlement.  You will be delivered the net amount of vested Shares after the Share withholding has been effected and you will not receive the withheld Shares.  The Company will not deliver any fractional number of Shares.

	
8.
	
Code Section 409A
	
This Award will be administered and interpreted to comply with Code Section 409A.  The provisions of the Plan concerning Code Section 409A will apply to this Award to the extent needed.

	
9.
	
Restrictions on Resale
	
By signing this Agreement, you agree not to sell, transfer, dispose of, pledge, hypothecate, make any short sale of, or otherwise effect a similar transaction of any Shares acquired under this Award (each a “Sale Prohibition”) at a time when applicable laws, regulations or Company or underwriter trading policies prohibit the sale or disposition of Shares.  

The Company shall have the right to designate one or more periods of time, each of which generally will not exceed one hundred eighty (180) days in length (provided however, that such period may be extended in connection with the Company’s release (or announcement of release) of earnings results or other material news or events), and to impose a Sale Prohibition, if the Company determines (in its sole discretion) that such limitation(s) is/are needed in connection with a public offering of Shares or to comply with an underwriter’s request or trading policy, or could in any way facilitate a lessening of any restriction on transfer pursuant to the Securities Act or any state securities laws with respect to any issuance of securities by the Company, facilitate the registration or qualification of any securities by the Company under the Securities Act or any state securities laws, or facilitate the perfection of any exemption from the registration or qualification requirements of the Securities Act or any applicable state securities laws for the issuance or transfer of any securities.  The Company may issue stop/transfer instructions and/or appropriately legend any stock certificates issued pursuant to this Award in order to ensure compliance with the foregoing.  

If the sale of Shares acquired under this Award is not registered under the Securities Act, but an exemption is available which requires an investment representation or other representation and warranty, you shall represent and agree that the Shares being acquired are being acquired for investment, and not with a view to the sale or distribution thereof, and shall make such other representations and warranties as are deemed necessary or appropriate by the Company and its counsel.

You may also be required, as a condition of this Award, to enter into any Company stockholder agreement or other agreements that are applicable to stockholders.

 

 

	
10.
	
Clawback Policy
	
You expressly acknowledge and agree to be bound by Section 15(e) of the Plan, which contains provisions addressing the Company’s policy on recoupment of equity or other compensation.

	
11.
	
No Retention Rights
	
Your Award or this Agreement does not give you the right to be retained by the Company (or any Parent or any Subsidiaries or Affiliates) in any capacity.  The Company (or any Parent and any Subsidiaries or Affiliates) reserves the right to terminate your Service at any time and for any reason.

	
12.
	
Extraordinary Compensation
	
This Award and the Shares subject to the Award are not intended to constitute or replace any pension rights or compensation and are not to be considered compensation of a continuing or recurring nature, or part of your normal or expected compensation, and in no way represent any portion of your salary, compensation or other remuneration for any purpose, including but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments.

	
13.
	
Adjustments
	
In the event of a stock split, a stock dividend or a similar change in the Company stock, the total number of Stock Units covered by this Award, the then number of outstanding Stock Units, and the number of Stock Units potentially to be granted shall each be adjusted (and rounded down to the nearest whole number) pursuant to the Plan. Your Stock Units shall be subject to the terms of the agreement of merger, liquidation or reorganization in the event the Company is subject to such corporate activity.

	
14.
	
Legends
	
All certificates or book entries representing the Common Stock issued under this Award may, where applicable, have endorsed thereon the following notations or legends and any other notation or legend the Company determines appropriate:

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND OPTIONS TO PURCHASE SUCH SHARES SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER, OR HIS OR HER PREDECESSOR IN INTEREST.  A COPY OF SUCH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST TO THE SECRETARY OF THE COMPANY BY THE HOLDER OF RECORD OF THE SHARES REPRESENTED BY THIS CERTIFICATE.”

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR QUALIFIED UNDER THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR QUALIFICATION UNDER APPLICABLE STATE LAWS OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED.”

	
15.
	
Applicable Law
	
This Agreement will be interpreted and enforced under the laws of the State of Delaware without reference to the conflicts of law provisions thereof.

	
16.
	
Regulatory Compliance
	
The issuance of Common Stock pursuant to this Agreement shall be subject to full compliance with all applicable requirements of law and the requirements of any stock exchange or interdealer quotation system upon which the Common Stock may be listed or traded.

 

 

 

	
17.
	
Binding Effect; No Third Party Beneficiaries
	
This Agreement shall be binding upon and inure to the benefit of the Company and you and any respective heirs, representatives, successors and permitted assigns.  This Agreement shall not confer any rights or remedies upon any person other than the Company and you and any respective heirs, representatives, successors and permitted assigns.  The parties agree that this Agreement shall survive the settlement or termination of the Award.

 

	
18.
	
Notice
	
Any notice to be given or delivered to the Company relating to this Agreement shall be in writing and addressed to the Company at its principal corporate offices.  All notices shall be deemed effective upon personal delivery or upon deposit in the postal mail, postage prepaid and properly addressed to the Company.  Any notice to be given or delivered to you relating to this Agreement may be delivered by electronic form including without limitation by email (including prospectuses required by the SEC) as well as all other documents that the Company is required to deliver to its security holders (including annual reports and proxy statements).  The Company may also deliver these documents by posting them on a web site maintained by the Company or by a third party under contract with the Company.

 

	
19.
	
Voluntary Participant

 
	
You acknowledge that you are voluntarily participating in the Plan.

	
20.
	
No Rights to Future Awards
	
Your rights, if any, in respect of or in connection with this Award or any other Awards are derived solely from the discretionary decision of the Company to permit you to participate in the Plan and to benefit from a discretionary future Award.  By accepting this Award, you expressly acknowledge that there is no obligation on the part of the Company to continue the Plan and/or grant any additional Awards to you or benefits in lieu of other Awards even if Awards have been granted repeatedly in the past.  All decisions with respect to future Awards, if any, will be at the sole discretion of the Committee.

	
21.
	
Future Value
	
The future value of the underlying Shares is unknown and cannot be predicted with certainty.  If the underlying Shares do not maintain or increase their value after the Date of Award, the Award could have little or no value.  If you obtain Shares under this Award, the value of the Shares acquired upon settlement may subsequently increase or decrease in value, and could decrease to a value less than the taxes payable upon settlement. 

	
22.
	
No Advice Regarding Award
	
The Company has not provided any tax, legal or financial advice, nor has the Company made any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.

	
23.
	
No Right to Damages
	
You will have no right to bring a claim or to receive damages if any portion of the Award is cancelled or expires.  The loss of existing or potential profit in the Award will not constitute an element of damages in the event of the termination of your Service for any reason, even if the termination is in violation of an obligation of the Company or a Parent or a Subsidiary or an Affiliate to you.

 

 

	
24.
	
Data Privacy
	
You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this document by the Company for the exclusive purpose of implementing, administering and managing your participation in the Plan.  You understand that the Company holds certain personal information about you, including, but not limited to, name, home address and telephone number, date of birth, gender, social security or insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all Awards or any other entitlement to Shares awarded, cancelled, purchased, exercised, vested, unvested or outstanding in your favor for the purpose of implementing, managing and administering the Plan (“Data”).  You understand that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in your country or elsewhere and that the recipient country may have different data privacy laws and protections than your country.  You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite transfer of such Data, as may be required to a broker or other third party with whom you may elect to deposit any Shares acquired under the Plan.

	
25.
	
Other Information
	
You agree to receive stockholder information, including copies of any annual report, proxy statement and periodic report, from the Company’s website, if the Company wishes to provide such information through its website.  You acknowledge that copies of the Plan, Plan prospectus, Plan information and stockholder information are also available upon written or telephonic request to the Plan’s administrator.

	
26.
	
Further Assistance
	
You agree to provide assistance reasonably requested by the Company in connection with actions taken by you while providing services to the Company, including but not limited to assistance in connection with any lawsuits or other claims against the Company arising from events during the period in which you rendered service to the Company.

	
27.
	
Legal Compliance
	
The Company (or any Parent or any Subsidiaries or Affiliates) is not responsible for your legal compliance requirements relating to this Award, including, but not limited to, tax reporting.

	
28.
	
Additional Conditions
	
If the Company shall determine, in its sole discretion, that the consent or approval of any governmental authority is necessary or desirable as a condition to the payment of benefits to you pursuant to the Plan, such payment shall not occur until such registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Company.

	
29.
	
Enforcement
	
The Company will be entitled to enforce its rights under this Agreement specifically, to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights to which it may be entitled.  You agree and acknowledge that money damages may not be an adequate remedy for breach of the provisions of this Agreement and that the Company may in its sole discretion apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive relief in order to enforce or prevent any violations of the provisions of this Agreement.  

 

 

	
30.
	
Nondisclosure of Confidential Information
	
You acknowledge that the businesses of the Company is highly competitive and that the Company’s strategies, methods, books, records, and documents, technical information concerning their products, equipment, services, and processes, procurement procedures and pricing techniques, the names of and other information (such as credit and financial data) concerning former, present or prospective customers and business affiliates, all comprise confidential business information and trade secrets which are valuable, special, and unique assets which the Company uses in their business to obtain a competitive advantage over competitors.  You further acknowledge that protection of such confidential business information and trade secrets against unauthorized disclosure and use is of critical importance to the Company in maintaining its competitive position.  You acknowledge that by reason of your duties to and association with the Company, you have had and will have access to and have and will become informed of confidential business information which is a competitive asset of the Company.  You hereby agree that you will not, at any time during or after employment, make any unauthorized disclosure of any confidential business information or trade secrets of the Company, or make any use thereof, except in the carrying out of services responsibilities.  You shall take all necessary and appropriate steps to safeguard confidential business information and protect it against disclosure, misappropriation, misuse, loss and theft.  Confidential business information shall not include information in the public domain (but only if the same becomes part of the public domain through a means other than a disclosure prohibited hereunder).  The above notwithstanding, a disclosure shall not be unauthorized if (i) it is required by law or by a court of competent jurisdiction or (ii) it is in connection with any judicial, arbitration, dispute resolution or other legal proceeding in which your legal rights and obligations as a service provider or under this Agreement are at issue; provided, however, that you shall, to the extent practicable and lawful in any such events, give prior notice to the Company of your intent to disclose any such confidential business information in such context so as to allow the Company an opportunity (which you will not oppose) to obtain such protective orders or similar relief with respect thereto as may be deemed appropriate. Any information not specifically related to the Company would not be considered confidential to the Company.   In the event of any conflict in terms between this Section 30 and the terms of any Company confidentiality or proprietary information agreement you have executed, the terms of such other confidentiality or proprietary information agreement shall prevail and govern.

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