Document:

Form of non-employee director option agreement used under 2004 Stock Option Plan

 Exhibit 10.65 
 NON-EMPLOYEE BOARD MEMBER—ANNUAL GRANT 
 GILEAD SCIENCES, INC. 
 STOCK OPTION AGREEMENT 
 RECITALS 

 A. Optionee is to render valuable services to the Corporation as a non-employee Board member, and this Agreement is executed pursuant to,
and is intended to carry out the purposes of, the Plan in connection with the Corporation’s grant of an option to Optionee in his or her capacity as a non-employee Board member. 
 B. All capitalized terms in this Agreement shall have the meaning assigned to them in the attached Appendix. 
 NOW, THEREFORE, the Corporation hereby grants an option to Optionee upon the following terms and conditions: 
 1. Grant of Option. The Corporation hereby grants to Optionee, as of the Grant Date, an option to purchase the Option Shares
under the Plan. The number of Option Shares purchasable under the option, the applicable vesting schedule for the option, the exercise price per share and the remaining terms and conditions governing the option shall be as set forth in this
Agreement. 
 AWARD SUMMARY 
  

			
		
	Optionee:	  	_______________________________________
		
	Grant Date:	  	______________________, 200___
		
	Exercise Price:	  	$_____ per share
		
	Number of Option Shares:	  	______________ shares of Common Stock
		
	Expiration Date:	  	______________________, 20____*
		
	Type of Option:	  	Non-Statutory Stock Option
		
	Exercise Schedule:	  	The option is fully-vested and immediately exercisable for any or all of the Option Shares.

  

	*	The option will in no event remain exercisable beyond the close of business on the last business day immediately prior to the Expiration Date. 

  

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 2. Option Term. The term of this option shall commence on the Grant Date
and continue to be in effect until the close of business on the last business day prior to the Expiration Date, unless sooner terminated in accordance with Paragraph 5 or 6 below. 
 3. Limited Transferability. The following provisions shall govern the transferability of this option: 
 (a) This option may be assigned in whole or in part during Optionee’s lifetime to one or more members of Optionee’s Immediate
Family or to a trust established for the Optionee and/or one or more Immediate Family members, provided such assignment constitutes a gratuitous transfer by the Optionee for which no consideration is directly or indirectly received. The assigned
portion may only be exercised by the person who acquires a proprietary interest in the option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the option immediately prior to such
assignment and shall be set forth in such documents to be executed by the Optionee and the assignee as the Corporation may deem appropriate. 
 (b) Optionee may also designate one or more persons as the beneficiary or beneficiaries of this option. Should Optionee die while holding this option, then the option shall be, in accordance with such designation,
automatically transferred to such beneficiary or beneficiaries upon the Optionee’s death. Such beneficiary or beneficiaries shall take the transferred option subject to all the terms and conditions of this Agreement, including (without
limitation) the limited time period during which this option may, pursuant to Paragraph 5 below, be exercised following Optionee’s death. 
 4. Dates of Exercise. This option is immediately exercisable for all of the Option Shares as fully-vested shares of Common Stock and may be exercised for any or all of those Option Shares at any time
prior to (i) the close of business on the last business day prior to the Expiration Date or (ii) the sooner termination of the option term under Paragraph 5 or 6 below. 
 5. Cessation of Service. The option term specified in Paragraph 2 above shall terminate (and this option shall cease to be
outstanding) prior to the Expiration Date should any of the following provisions become applicable: 
 (a) Except as otherwise
expressly provided in subparagraphs (b) through (e) of this Paragraph 5, should Optionee cease to remain in Continuous Service for any reason while this option is outstanding, then Optionee shall have until the close of business on the
last business day prior to the expiration of the three- (3) year period measured from the date of such cessation of Continuous Service during which to exercise this option for any or all of the Option Shares at the time subject to this option,
but in no event shall this option be exercisable at any time after the close of business on the last business day prior to the Expiration Date. 
 (b) For purposes of this Paragraph 5, Optionee shall be deemed to remain in Continuous Service for so long as Optionee continues to serve the Corporation as a Director Emeritus immediately following his or her
cessation of service as a Board member without an intervening break in Continuous Service. 
  

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 (c) Should Optionee’s Continuous Service terminate by reason of his or her death
while this option is outstanding, then this option may be exercised for any or all of the Option Shares subject to this option at the time of such termination of Continuous Service by (i) the personal representative of Optionee’s estate,
(ii) the person or persons to whom the option is transferred pursuant to Optionee’s will or the laws of inheritance following Optionee’s death or (iii) the person or persons to whom this option is transferred during
Optionee’s lifetime pursuant to a permitted transfer under Paragraph 3(a) above, as the case may be. However, if Optionee dies while holding this option and has an effective beneficiary designation in effect for this option at the time of his
or her death, then the designated beneficiary or beneficiaries shall have the exclusive right to exercise this option following Optionee’s death. Any such right to exercise this option shall lapse, and this option shall cease to be outstanding,
upon the close of business on the last business day prior to the earlier of (i) the expiration of the three- (3) year period measured from the date of Optionee’s death or (ii) the Expiration Date. Upon the
expiration of such limited exercise period, this option shall terminate and cease to be outstanding for any exercisable Option Shares for which the option has not otherwise been exercised. 
 (d) The applicable period of post-service exercisability in effect pursuant to the foregoing provisions of this Paragraph 5 shall
automatically be extended by an additional period of time equal in duration to any interval within such post-service exercise period during which the exercise of this option or the immediate sale of the Option Shares acquired under this option
cannot be effected in compliance with applicable federal and state securities laws, but in no event shall such an extension result in the continuation of this option beyond the close of business on the last business day prior to the Expiration Date.

 (e) Should Optionee’s Continuous Service be terminated for Cause, or should Optionee engage in any other conduct,
while in such service or following cessation of Continuous Service, that is materially detrimental to the business or affairs of the Corporation (or any Related Entity), as determined in the sole discretion of the Administrator, then this option
shall terminate immediately and cease to be outstanding. 
 6. Change in Control. 
 (a) Immediately following the consummation of a Change in Control transaction, this option shall terminate and cease to be outstanding,
except to the extent assumed by the successor corporation (or parent thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction. 
 (b) If this option is assumed in connection with a Change in Control or otherwise continued in effect, then this option shall be
appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities into which the shares of Common Stock subject to this option would have been converted in consummation of such Change in Control had
those shares actually been outstanding at the time. Appropriate adjustments shall also be made to the Exercise Price, provided the aggregate Exercise Price shall remain the same. To the extent the actual holders of the Corporation’s outstanding
Common Stock receive cash consideration for their Common Stock in consummation of the Change in Control, the successor corporation may, in connection with the assumption or continuation of this option but subject to the Administrator’s
approval, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per share of Common Stock in such Change in Control, provided such common stock is readily tradable on an established
U.S. securities exchange or market. 
  

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 (c) This Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets. 
 7. Adjustment in Option Shares. Should any change be made to the Common Stock by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares, spin-off transaction, or other change affecting the outstanding Common Stock as a class without the Corporation’s receipt of consideration, or should the value of outstanding shares
of Common Stock be substantially reduced as a result of a spin-off transaction or an extraordinary dividend or distribution, or should there occur any merger, consolidation or other reorganization, then equitable and proportional adjustments shall
be made by the Administrator to (i) the total number and/or class of securities subject to this option and (ii) the Exercise Price. The adjustments shall be made in such manner as the Administrator deems appropriate in order to reflect
such change and thereby prevent the dilution or enlargement of benefits hereunder, and those adjustments shall be final, binding and conclusive upon Optionee and any other person or persons having an interest in the option. In the event of any
Change in Control transaction, the adjustment provisions of Paragraph 6(c) above shall be controlling. 
 8. Stockholder
Rights. The holder of this option shall not have any stockholder rights with respect to the Option Shares until such person shall have exercised the option, paid the Exercise Price and become a holder of record of the purchased shares.

 9. Manner of Exercising Option. 
 (a) In order to exercise this option with respect to all or any portion of the Option Shares at the time subject to this option, Optionee
(or any other person or persons exercising the option) must take the following actions: 
 (i) Execute and deliver to the
Corporation a Notice of Exercise as to the Option Shares for which the option is exercised or comply with such other procedures as the Corporation may establish for notifying the Corporation, either directly or through an on-line internet
transaction with a brokerage firm authorized by the Corporation to effect option exercises, of the exercise of this option for one or more Option Shares. The applicable Notice of Exercise may be obtained through the internet at
stockadministration@gilead.com or by telephoning Stock Administration at 650-522-5517. 
  

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 (ii) Pay the aggregate Exercise Price for the purchased shares in one or more of the
following forms: 
 (A) cash or check made payable to the Corporation; or 
 (B) through a special sale and remittance procedure pursuant to which Optionee (or any other person or persons exercising the option)
shall concurrently provide irrevocable instructions (i) to a brokerage firm (reasonably satisfactory to the Corporation for purposes of administering such procedure in accordance with the Corporation’s pre-clearance/pre-notification
policies) to effect the immediate sale of the purchased shares and remit to the Corporation, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the purchased shares plus all
applicable Withholding Taxes and (ii) to the Corporation to deliver the certificates for the purchased shares directly to such brokerage firm on such settlement date in order to complete the sale. 
 Except to the extent the sale and remittance procedure is utilized in connection with the option exercise, payment of the Exercise Price
must accompany the Notice of Exercise (or other notification procedure) delivered to the Corporation in connection with the option exercise. 
 (iii) Furnish to the Corporation appropriate documentation that the person or persons exercising the option (if other than Optionee) have the right to exercise this option. 
 (iv) Make appropriate arrangements with the Corporation (or Parent or Subsidiary employing or retaining Optionee) for the satisfaction of
all applicable Withholding Taxes. 
 (b) As soon as practical after the Exercise Date, the Corporation shall issue to or on
behalf of Optionee (or any other person or persons exercising this option) a certificate for the purchased Option Shares (either in paper or electronic form), with the appropriate legends affixed thereto. 
 (c) In no event may this option be exercised for any fractional shares. 
 10. Compliance with Laws and Regulations. 
 (a) The exercise of this option and the issuance of the Option Shares upon such exercise shall be subject to compliance by the Corporation
and Optionee with all Applicable Laws relating thereto. 
 (b) The inability of the Corporation to obtain approval from any
regulatory body having authority deemed by the Corporation to be necessary to the lawful issuance and sale of any Common Stock pursuant to this option shall relieve the Corporation of any liability with respect to the non-issuance or sale of the
Common Stock as to which such approval shall not have been obtained. The Corporation, however, shall use its best efforts to obtain all such approvals. 
  

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 11. Successors and Assigns. Except to the extent otherwise provided in
Paragraphs 3 and 6 above, the provisions of this Agreement shall inure to the benefit of and be binding upon the Corporation and its successors and assigns and Optionee, Optionee’s assigns, the legal representatives, heirs and legatees of
Optionee’s estate and any beneficiaries of this option designated by Optionee. 
 12. Notices. Any notice
required to be given or delivered to the Corporation under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal corporate offices. Any notice required to be given or delivered to Optionee shall be in
writing and addressed to Optionee at the most current address then indicated for Optionee on the Corporation’s records or shall be delivered electronically to Optionee through the Corporation’s electronic mail system or through an on-line
brokerage firm authorized by the Corporation to effect option exercises through the internet. All notices shall be deemed effective upon personal delivery or electronic delivery as specified above or upon deposit in the U.S. mail, postage prepaid
and properly addressed to the party to be notified. 
 13. Construction. This Agreement and the option evidenced
hereby are made and granted pursuant to the Plan and are in all respects limited by and subject to the terms of the Plan. In the event of any conflict between the provisions of this Agreement and the terms of the Plan, the terms of the Plan shall be
controlling. All decisions of the Administrator with respect to any question or issue arising under the Plan or this Agreement shall be conclusive and binding on all persons having an interest in this option. 
 14. Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the
State of California without resort to California’s conflict-of-laws rules. 
 15. Excess Shares. If the
Option Shares covered by this Agreement exceed, as of the Grant Date, the number of shares of Common Stock which may without stockholder approval be issued under the Plan, then this option shall be void with respect to those excess shares, unless
stockholder approval of an amendment sufficiently increasing the number of shares of Common Stock issuable under the Plan is obtained in accordance with the provisions of the Plan. In no event shall the option be exercisable with respect to any of
the excess Option Shares unless and until such stockholder approval is obtained. 
 16. No Impairment of Rights.
This Agreement shall not in any way be construed or interpreted so as to affect adversely or otherwise impair the right of the Corporation or its stockholders to remove Optionee from the Board at any time in accordance with the provisions of
applicable law. 
 17. Plan Prospectus. The official prospectus for the Plan is attached if this option is the
first option made to Optionee under the October 2007 restatement of the Plan. Optionee may obtain an additional printed copy of the prospectus by contacting Stock Administration through the internet at stockadministration@gilead.com or by
telephoning 650-522-5517. 
  

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 18. Optionee Acceptance. Optionee must accept the terms and conditions of
this Agreement either electronically through the electronic acceptance procedure established by the Corporation or through a written acceptance delivered to the Corporation in a form satisfactory to the Corporation. In no event shall this option be
exercised in the absence of such acceptance. 
 IN WITNESS WHEREOF, Gilead Sciences, Inc. has caused this Agreement to be executed on
its behalf by its duly-authorized officer on the day and year first indicated above. 
  

			
	GILEAD SCIENCES, INC.
		
	By:	 	 
	Title:	 	 

  

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 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A. Administrator shall
mean the Compensation Committee of the Board (or any subcommittee thereof) acting in its capacity as administrator of the Plan. 
 B.
Agreement shall mean this Stock Option Agreement. 
 C. Applicable Laws shall mean the legal requirements related
to the Plan and the option under applicable provisions of the federal securities laws, state corporate and state securities laws, the Code, the rules of any applicable Stock Exchange on which the Common Stock is listed for trading, and the rules of
any non-U.S. jurisdiction applicable to options granted to residents therein. 
 D. Board shall mean the Corporation’s
Board of Directors. 
 E. Cause shall mean the termination of Optionee’s Continuous Service as a result of Optionee’s
(i) performance of any act, or failure to perform any act, in bad faith and to the detriment of the Corporation; (ii) dishonesty, intentional misconduct, material breach of any fiduciary duty owed to the Corporation; or
(iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person. 
 F. Change in
Control shall mean a change in ownership or control of the Corporation effected through any of the following transactions: 
 (i) a merger, consolidation or other reorganization approved by the Corporation’s stockholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the
successor corporation are immediately thereafter beneficially owned, directly or indirectly and in substantially the same proportion, by the persons who beneficially owned the Corporation’s outstanding voting securities immediately prior to
such transaction; 
 (ii) a sale, transfer or other disposition of all or substantially all of the Corporation’s assets;

 (iii) the closing of any transaction or series of related transactions pursuant to which any person or any group of persons
comprising a “group” within the meaning of Rule 13d-5(b)(1) of the 1934 Act (other than the Corporation or a person that, prior to such transaction or series of related transactions, directly or indirectly controls, is controlled by or is
under common control with, the Corporation) becomes directly or indirectly (whether as a result of a single acquisition or by reason of one or more acquisitions within the twelve-(12) month period ending with the most recent acquisition) the
beneficial owner (within the meaning of Rule 13d-3 of the 1934 Act) of securities possessing (or 

  

 A-1 

 
convertible into or exercisable for securities possessing) more than fifty percent (50%) of the total combined voting power of the Corporation’s
outstanding securities (as measured in terms of the power to vote with respect to the election of Board members) outstanding immediately after the consummation of such transaction or series of related transactions, whether such transaction involves
a direct issuance from the Corporation or the acquisition of outstanding securities held by one or more of the Corporation’s existing stockholders; or 
 (iv) a change in the composition of the Board over a period of twelve (12) consecutive months or less such that a majority of the Board members ceases, by reason of one or more contested elections for Board
membership, to be comprised of individuals who either (a) have been Board members continuously since the beginning of such period or (b) have been elected or nominated for election as Board members during such period by at least a majority
of the Board members described in clause (A) above who were still in office at the time the Board approved such election or nomination. 
 In no event,
however, shall a Change in Control be deemed to occur upon a merger, consolidation or other reorganization effected primarily to change the State of the Corporation’s incorporation or to create a holding company structure pursuant to which the
Corporation becomes a wholly-owned subsidiary of an entity whose outstanding voting securities immediately after its formation are beneficially owned, directly or indirectly, and in substantially the same proportion, by the persons who beneficially
owned the Corporation’s outstanding voting securities immediately prior to the formation of such entity. 
 G. Code shall
mean the Internal Revenue Code of 1986, as amended. 
 H. Common Stock shall mean shares of the Corporation’s common
stock. 
 I. Consultant shall mean any person, including an advisor, who is compensated by the Corporation or any Related
Entity for services performed as a non-employee consultant; provided, however, that the term “Consultant” shall not include non-employee Directors serving in their capacity as Board members. The term
“Consultant” shall include (i) a former Board member during his or her period of service as Director Emeritus immediately following his or her cessation of service as a Board member, without an intervening break in Continuous Service,
or (ii) an individual serving as a member of the board of directors of a Related Entity. 
 J. Continuous Service shall
mean the performance of services for the Corporation or a Related Entity (whether now existing or subsequently established) by a person in the capacity of an Employee, Director or Consultant. For purposes of this Agreement, Optionee shall be deemed
to cease Continuous Service immediately upon the occurrence of either of the following events: (i) Optionee no longer performs services in any of the foregoing capacities for the Corporation or any Related Entity or (ii) the entity for
which Optionee is performing such services ceases to remain a Related Entity of the Corporation, even though Optionee may subsequently continue to perform services for that entity. 
  

 A-2 

 K. Corporation shall mean Gilead Sciences, Inc., a Delaware corporation, and any successor
corporation to all or substantially all of the assets or voting stock of Gilead Sciences, Inc. which shall by appropriate action adopt the Plan. 
 L. Director shall mean a member of the Board. 
 M. Domestic Partner shall mean a person who meets and
continues to meet all of the criteria detailed in the Gilead Sciences Affidavit of Domestic Partnership when the Domestic Partnership has been internally registered with the Corporation by filing with the Corporation an original, properly completed,
notarized Gilead Sciences Affidavit of Domestic Partnership. 
 N. Employee shall mean an individual who is in the employ of
the Corporation (or any Related Entity), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance. 
 O. Exercise Date shall mean the date on which the option shall have been exercised in accordance with Paragraph 9 of the Agreement.

 P. Exercise Price shall mean the exercise price per Option Share as specified in Paragraph 1 of the Agreement. 

Q. Exercise Schedule shall mean the schedule set forth in Paragraph 1 of the Agreement, pursuant to which the option is immediately
exercisable for any or all of the Option Shares. 
 R. Expiration Date shall mean the date specified in Paragraph 1 of the
Agreement for measuring the maximum term for which the option may remain outstanding. 
 S. Fair Market Value per share of
Common Stock on any relevant date shall be the closing price per share of Common Stock (or the closing bid, if no sales were reported), as quoted on the Stock Exchange serving as the primary trading market for the Common Stock, on the last market
trading day prior to the date of determination (or, if no closing price or closing bid was reported on that date, as applicable, on the last trading date such closing price or closing bid was reported), as reported in The Wall Street Journal
or such other source as the Administrator deems reliable. 
 T. Grant Date shall mean the date of grant of the option as
specified in Paragraph 1 of the Agreement. 
 U. Immediate Family shall mean, with respect to Optionee, any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law including adoptive relationships, Domestic Partner, a trust in
which such persons (or person) have more than fifty percent (50%) of the beneficial interest, a foundation in which such persons (or person) control the management of such entity’s assets, or any other entity in which such persons (or
person) own more than fifty percent (50%) of the voting interests. 
  

 A-3 

 V. 1934 Act shall mean the Securities Exchange Act of 1934, as amended from
time to time. 
 W. Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code
Section 422. 
 X. Notice of Exercise shall mean the notice of option exercise in the form prescribed by
the Corporation. 
 Y. Option Shares shall mean the number of shares of Common Stock subject to the option as
specified in Paragraph 1 of the Agreement. 
 Z. Optionee shall mean the person to whom the option is granted
pursuant to the Agreement. 
 AA. Parent shall mean a “parent corporation,” whether now or hereafter
established, as defined in Section 424(e) of the Code. 
 BB. Plan shall mean the Corporation’s 2004
Equity Incentive Plan, as amended from time to time. 
 CC. Related Entity shall mean (i) any Parent or
Subsidiary of the Corporation and (ii) any corporation in an unbroken chain of corporations beginning with the Corporation and ending with the corporation in the chain for which Optionee provides services as an Employee, Director or Consultant,
provided each corporation in such chain owns securities representing at least twenty percent (20%) of the total outstanding voting power of the outstanding securities of another corporation or entity in such chain and there is a legitimate
non-tax business purpose for making this option grant to Optionee. 
 DD. Stock Exchange shall mean the
American Stock Exchange, the Nasdaq Global or Global Select Market or the New York Stock Exchange. 
 EE.
Subsidiary shall mean a “subsidiary corporation,” whether now or hereafter established, as defined in Section 424(f) of the Code. 
 FF. Withholding Taxes shall mean any federal, state and local taxes required to be withheld by the Corporation in
connection with the exercise of the option. 
  

 A-4Biodynamics International 1996 Stock Option Plan

 Exhibit 4.1 
 BIODYNAMICS INTERNATIONAL, INC. 
 1996 STOCK OPTION PLAN 
 ARTICLE I 
 General 

Section 1.01. Purpose. It is the purpose of the Plan to promote the interests of the Company and its shareholders by attracting, retaining
and stimulating the performance of selected Employees, Directors and Consultants by giving such Employees, Directors and Consultants the opportunity to acquire a proprietary interest in the Company and an increased personal interest in its continued
success and progress. 
 Section 1.02. Definitions. As used herein the following terms have the following meanings: 

(a) “Affiliate” means any parent or subsidiary corporation of the Company within the meaning of Section 424(e) and (f) of
the Code. 
 (b) “Board” means the Board of Directors of the Company. 
 (c) “Code” means the Internal Revenue Code of 1986, as amended. 
 (d) “Committee” means the Compensation and Stock Option Committee described in Article II hereof. 
 (e) “Common Stock” means the $0.01 par value Common Stock of the Company. 
 (f) “Company” means Biodynamics International, Inc., a Florida corporation. 
 (g) “Consultant” means any consultant or advisor of the Company or an Affiliate who is not an Employee or Director, provided that bona
fide services are rendered by the consultant or advisor and such services are not in connection with the offer or sale of securities in a capital-raising transaction. 
 (h) “Director” means a member of the Board. 
 (i) “Employee” means any
employee of the Company or an Affiliate. 
 (j) “Employee-Director” means an Employee who is a Director. 
 (k) “Fair Market Value” means (A) the closing sale price of the Common Stock on the date in question (or, of there is no reported
sale on such date, then on the last preceding date on which a reported sale occurred), as reported on the NASDAQ Market (if the Common Stock is not listed on a national securities exchange and sales of the Common Stock are regularly reported on such
market), or as reported on a national securities exchange (if the Common Stock is listed for trading on such exchange), or (B) the mean between the bid and ask prices of the Common Stock on the date in question (or, if there is no report of
such prices on such date, then on the last preceding date on which such prices were reported), as reported by the National Association of Securities Dealers, Inc. 

 (l) “Option” means any option to purchase shares of Common Stock granted pursuant to the
provisions of the Plan. 
 (m) “Optionee” means an Employee, Outside Director or Consultant who has been granted an Option
under the Plan. 
 (n) “Outside Director” means a Director who is not an Employee. 
 (o) “Plan” means this Biodynamics International, Inc., 1996 Stock Option Plan. 
 Section 1.03. Shares Subject to Plan. The stock subject to the options granted under the Plan shall be shares of the Company’s
authorized but unissued common stock, par value $.01 per share (“Common Stock”). The total number of shares that may be issued pursuant to options granted under the Plan shall not exceed 3,500,000 shares of Common Stock. 
 ARTICLE II 
 Administration 

 The Plan shall be administered by a Compensation and Stock Option Committee which shall consist of two or more Outside Directors, each of
whom shall be a disinterested person within the meaning of Rule 16b-3 under the Securities Exchange Act of 1934, as amended (“Rule 16b-3”), or any similar rule or regulation promulgated thereunder; provided, however, that the
Committee shall have no authority to administer or interpret the provisions of the Plan relating to the grant of Options to Outside Directors. Each member of the Committee shall be appointed by and shall serve at the pleasure of the Board. The Board
shall have the sole continuing authority to appoint members of the Committee both in substitution for members previously appointed and to fill vacancies however caused. The following provisions shall apply to the administration of the Plan:

 (a) The Committee shall designate one of its members as Chairman and shall hold meetings at such time and places as it may determine. Each
member of the Committee shall be notified in writing of the time and place of any meeting of the Committee at least two days prior to such meeting, provided that such notice may be waived by a Committee member. A majority of the members of the
Committee shall constitute a quorum, and any action taken by a majority of the members of the Committee present at any duly called meeting at which a quorum is present (as well as any action unanimously approved in writing) shall constitute action
by the Committee. 
 (b) The Committee may appoint a Secretary (who need not be a member of the Committee) who shall keep minutes of its
meetings. The Committee may make such rules and regulations for the conduct of its business as it may determine. 
  

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 (c) The Committee shall have full authority, subject to the express provision of the Plan, to interpret
the Plan as it relates to options granted or to be granted to Employees and Consultants under the Plan, to provide, modify and rescind rules and regulations relating thereto, to determine the terms and provisions of each Option granted to an
Employee or Consultant and the form of each option agreement evidencing an Option granted to an Employee or Consultant under the Plan and to make all other determinations and perform such actions as the Committee deems necessary or advisable to
administer the Plan as it relates to Options granted or to be granted to Employees or Consultants under the Plan. In addition, the Committee shall have full authority, subject to the express provisions of the Plan, to determine the Employees and
Consultants to whom Options shall be granted, the time or date of grant of each such Option, the number of shares subject thereto, and the price at which such shares may be purchased. In making such determinations, the Committee may take into
account the nature of the services rendered by the Employee or Consultant, his present and potential contributions to the success of the Company’s business and such other facts as the Committee in its discretion shall deem appropriate to carry
out the purposes of the Plan. 
 (d) Notwithstanding the authority hereby delegated to the Committee to grant Options to Employees and
Consultants under the Plan, the Board also shall have full authority, subject to the express provisions of the Plan, to grant Options to Employees and Consultants under the Plan, to interpret that Plan, to provide, modify and rescind rules and
regulations relating to it, to determine the terms and provisions of Options granted to Employees, Consultants and Outside Directors under the Plan and to make all other determinations and perform such actions as the Board deems necessary or
advisable to administer the Plan; provided, however that (i) the Board shall not grant any Option to any Employee-Director or officer (as defined in Rule 16b-3) of the Company, and (ii) the Board shall have no authority, discretion or
power to select the Outside Directors who will receive Options under the Plan, to set the number of shares to be covered by any Option granted to an Outside Director, to set the exercise price or the period within which such Options may be
exercised, or to alter any other terms or conditions specified herein relating to such Options except in accordance with the express provisions of the Plan, including Section 6.02 of Article VI hereof. 
 (e) No member of the Committee or the Board shall be liable for any action taken or determination made in good faith with respect to the Plan or any
Option granted hereunder. 
 (f) No member of the Committee shall be eligible to receive an Option, except Options granted in accordance with
the terms of Article III of the Plan. 
 ARTICLE III 
 Grants of Options to Outside Directors 
 Section 3.01. Grants of Options. Beginning with
the year 1996, Options shall be granted by the Company to its Outside Directors in the terms and conditions herein described. The Options granted under this Article III shall not be incentive stock options under Section 422 of the Code.

  

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 (a) Initial Grant. An Option to purchase 10,000 shares of Common Stock shall be granted automatically to
each Outside Director who is newly elected to the Board, irrespective of whether such Outside Director is elected by the Board or by the shareholders. The date of grant of such Option shall be the effective date of such Outside Director’s
election to the Board, unless such date is not a business day, in which case the date of grant shall be the next business day immediately following such effective date. For purposes of this Section 3.01, the term “newly elected to the
Board” shall mean that the Outside Director was not serving as a Director or an Outside Director immediately prior to the time of his election in respect of which such Option is granted. 
 (b) Annual Grant. An option to purchase 2,500 shares of Common Stock shall be granted automatically, on the date of each annual meeting of shareholders
of the Company (or, if such date is not a business day, on the next business day immediately following the date of such annual meeting), to each person who (I) is an Outside Director on the date of such grant and immediately following such
annual meeting and (ii) has served in that capacity for at least six months immediately preceding the date of such grant. 
 Section 3.02 Declination. Any Outside Director may decline to accept any Option granted to him pursuant to this Article III by giving written notice to the Company of his election to decline to accept such Option or by refusing
to execute a stock option agreement relating to such Option. 
 Section 3.03 Price. The purchase price per share of Common Stock
under each Option granted under this Article III shall be the Fair Market Value per share of Common Stock on the date of grant of such Option. 
 Section 3.04 Option Period and Terms of Exercise of Options. Except as otherwise provided for herein, each Option granted to an Outside Director under the Plan shall be exercisable in whole or in part during the four-year period
commencing on the date of grant of such Option. Any Option granted to an Outside Director shall remain effective during its entire term regardless of whether the Optionee continues to serve as a Director; provided, however, that the otherwise
unexpired portion of any Option granted hereunder to an Outside Director shall expire and become null and void immediately upon the termination of such Outside Director’s Board membership if such Outside Director ceases to serve on the Board by
reason of such Outside Director’s (a) fraud or intentional misrepresentation, or (b) embezzlement, misappropriation or conversion of assets or opportunities of the Company or any Affiliate. Nothing in the Plan or in any option
agreement evidencing an Option granted under the Plan to an Outside Director shall confer upon such Director any right to continue as a Director of the Company. 
 ARTICLE IV 
 Grant of Options to Employees 
 Section 4.01 Grant of Options. At any time and from time to time during the term of the Plan and subject to the express provisions hereof,
Options may be granted by the Committee to any Employee for such number of shares of Common Stock as the Committee in its discretion 

  

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shall deem to be in the best interest of the Company and which will serve to further the purposes of the Plan. The Committee, in its discretion, may
designate any Option granted to an Employee as an incentive stock option intended to qualify under Section 422 of the Code; provided, however, that the aggregate Fair Market Value of the Common Stock with respect to which incentive stock
options granted to an Employee under the Plan (including all options qualifying as incentive stock options pursuant to Section 422 of the Code granted to such Employee under any other plan of the Company or any Affiliate) are exercisable for
the first time by such Employee during any calendar year shall not exceed $100,000, determined as of the date the incentive stock option is granted. If an Option that is intended to be an incentive stock option shall be granted and such Option does
not comply with the proviso of the immediately preceding sentence, such Option shall not be void but shall be deemed to be an incentive stock option to the extent it does not exceed the limit established by such proviso and shall be deemed a
nonqualified stock option to the extent it exceeds that limit. 
 The aggregate number of shares of Common Stock for which any Employee may
be granted Options under the Plan during any one calendar year shall not exceed 75,000. The aggregate number of shares for which Options are granted under the Plan to Employee-Directors shall not exceed 40% of the total number of shares covered by
the Plan; provided, however, that if any Option granted to an Employee-Director terminates without being exercised in full, the shares as to which such Option was not exercised shall not be deemed to have been granted to an Employee-Director for
purposes of determining compliance with this restriction. 
 Section 4.02. Price. The purchase price per share of Common Stock
under each Option granted under this Article IV shall be determined by the Committee but in no event shall be less than 100% of the Fair Market Value per share of Common Stock at the time the Option is granted; provided, however, that the purchase
price per share of Common Stock under any incentive stock option granted to an Optionee who, at the time such incentive stock option is granted, owns stock possessing more than 10% of the total combined voting power of all classes of stock of the
Company or any Affiliate shall be at least 110% of the Fair Market Value per share of Common Stock at the date of grant. 
 Section 4.03
Option Period and Terms of Exercise of Employee Options. Except as otherwise provided for herein, each Option granted to an Employee under the Plan shall be exercisable during such period as the Committee shall determine; unless expressly
determined otherwise, the unexpired portion of any Option granted to an Employee shall expire and become null and void no later than upon the first to occur of (I) the expiration of ten years from the date such Option was granted, (ii) the
expiration of 30 days from the date of termination of the Optionee’s employment with the Company or an Affiliate for any reason other than his retirement, death or disability, (iii) the expiration of one year from the date of termination
of the Optionee’s employment with the Company or an Affiliate by reason of his death or disability, (iv) the expiration of three years from the date of termination of such Optionee’s employment with the Company or an Affiliate by
reason of his retirement, or (v) the expiration of two years from the date of such Optionee’s death following the termination of his employment with the Company or an Affiliate by reason of his retirement. 
 Anything herein to the contrary notwithstanding, the otherwise unexpired portion of any Option granted to an Employee hereunder shall expire and become
null and void immediately 

  

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upon the termination of such Employee’s employment with the Company or an Affiliate by reason of such Employee’s fraud, dishonesty or performance
of other acts detrimental to the Company or an Affiliate, or if, following the termination of the Employee’s employment with the Company or an Affiliate, the Company determines that there is good cause to cancel such Option. 
 Any incentive stock option granted to an Optionee who, at the time such incentive stock option is granted, owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or any Affiliate shall not be exercisable after the expiration of five years from the date of its grant. 
 Under the provisions of any option agreement evidencing an Option granted to an Employee, the Committee may limit the number of shares purchasable
thereunder in any period or periods of time during which the Option is exercisable and may impose such other terms and conditions upon the exercise of an Option as are not inconsistent with the terms of the Plan; provided, however, that the
Committee, in its discretion, may accelerate the exercise date of any such Option. 
 Section 4.04. Termination of Employment. A
transfer of employment among the Company and any of its Affiliates shall not be considered to be a termination of employment for the purposes of the Plan. Nothing in the Plan or in any option agreement evidencing an Option granted under the Plan to
an Employee, including an Employee-Director, shall confer upon any Optionee any right to continue in the employ of the Company or any Affiliate or in any way interfere with the right of the Company or any Affiliate to terminate the employment of the
Optionee at any time, with or without cause. 
 ARTICLE V 
 Grant of Options to Consultants 
 Section 5.01. Grant of Options. At any time and from
time to time during the term of the Plan and subject to the express provisions hereof, Options may be granted by the Committee to any Consultant for such number of shares of Common Stock as the Committee in its discretion shall deem to be in the
best interest of the Company and which will serve to further the purposes of the Plan. The Options granted under this Article V shall not be incentive stock options under Section 422 of the Code. 
 Section 5.02 Price. The purchase price per share of Common Stock under each Option granted under this Article V shall be determined by the
Committee but in no event shall be less than 100% of the Fair Market Value per share of Common Stock at the time the Option is granted. 
 Section 5.03. Option Period and Terms of Exercise of Consultant Options. Except as otherwise provided for herein, each Option granted to a Consultant under the Plan shall be exercisable during such period as the Committee shall
determine; provided, however, that the otherwise unexpired portion of any Option granted to a Consultant shall expire and become null and void no later than upon the first to occur of (i) the expiration of ten years from the date such Option
was granted or (ii) the expiration of one year from the date of the Consultant’s death. 

  

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Anything herein to the contrary notwithstanding, the otherwise unexpired portion of any Option granted to a Consultant hereunder shall expire and become null
and void immediately upon the termination of the Consultant’s services to the Company or an Affiliate by reason of the Consultant’s fraud, dishonesty or performance of other acts detrimental to the Company or an Affiliate, or if, at any
time during or after the performance of the Consultant’s services to the Company or an Affiliate, the Company determines that there is good cause to cancel such Option. 
 Under the provisions of any option agreement evidencing an Option granted to a Consultant, the Committee may limit the number of shares purchasable
thereunder in any period or periods of time during which the Option is exercisable and may impose such other terms and conditions upon the exercise of an Option as are not inconsistent with the terms of the Plan; provided, however, that the
Committee, in its discretion, may accelerate the exercise date of any such Option. 
 Section 5.04. Termination of Consulting
Services. Nothing in the Plan or in any option agreement evidencing an Option granted under the Plan to a Consultant shall confer upon any Consultant any right to continue as a consultant or advisor of the Company or any Affiliate or in any way
interfere with the right of the Company or any Affiliate to terminate the services of the Consultant at any time, with or without cause. 
 ARTICLE VI 
 Miscellaneous 
 Section 6.01. Adjustments Upon Changes in Common Stock. In the event the Company shall effect a split of the Common Stock or a dividend payable in Common Stock, or in the event the outstanding Common Stock
shall be combined into a smaller number of shares, the maximum number of shares as to which Options may be granted under the Plan shall be decreased or increased proportionately. In the event that, before delivery by the Company of all of the shares
of Common Stock for which any Option has been granted under the Plan, the Company shall have effected such a split, dividend or combination, the shares still subject to such Option shall be increased or decreased proportionately and the purchase
price per share shall be decreased or increased proportionately so that the aggregate purchase price for all of the shares then subject to such Option shall remain the same as immediately prior to such split, dividend or combination. 
 Subject to Article VI, Section 6.02 of the Plan, and notwithstanding any indication to the contrary in the preceding paragraphs of this
Section 6.01, upon the occurrence of a “Change in Control” (as hereinafter defined) of the Company, the maturity of all Options then outstanding under the Plan (other than Options granted under Article V hereof) shall be accelerated
automatically, so that all such Options shall become exercisable in full with respect to all shares as to which they shall not have previously been exercised or become exercisable; provided, however, that no such acceleration shall occur with
respect to Options held by optionees whose employment with the Company or an Affiliate shall have terminated prior to the occurrence of such Change in Control. 
  

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 For purposes of the Plan, a “Change in Control” of the Company shall be deemed to have
occurred if: 
 (a) the shareholders of the Company shall approve: 
 (i) any merger, consolidation of reorganization of the Company (a “Transaction”) in which the shareholders of the Company immediately
prior to the Transaction would not, immediately after the Transaction, beneficially own, directly or indirectly, shares representing in the aggregate more than 50% of all votes to which all shareholders of the corporation issuing cash or securities
in the Transaction (or of its ultimate parent corporation, if any) would be entitled under ordinary circumstances in the election of directors, or in which the members of the Company’s Board immediately prior to the Transaction would not,
immediately after the Transaction, constitute a majority of the board of directors of the corporation issuing cash or securities in the Transaction (or of its ultimate parent corporation, if any), 
 (ii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions contemplated or arranged by any party as a
single plan) of all or substantially all of the Company’s assets, or 
 (iii) any plan or proposal for the liquidation or dissolution of
the Company; 
 (b) individuals who constitute the Company’s Board as of February 28, 1996 (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, that for purposes of this subparagraph (b), any individual who becomes a Director of the Company subsequent to February 28, 1996, and
whose election, or nomination for election by the Company’s shareholders, is approved by a vote of at least a majority of the Incumbent Directors who are Directors at the time of such vote, shall be considered an Incumbent Director; or

 (c) any “person,” as that term is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (other than the Company, any of its subsidiaries, any employee benefit plan of the Company or and of its subsidiaries, or any entity organized, appointed or established by the Company for or pursuant to the terms of
such plan), together with all “affiliates” and “associates” (as such terms are defined in Rule 12b-2 under the Exchange Act) of such person, shall become the “beneficial owner” or “beneficial owners” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of securities of the Company representing in the aggregate 20% or more of either (i) the then outstanding shares of Common Stock or (ii) the combining voting
power of all then outstanding securities of the Company having the right under ordinary circumstances to vote in an election of the Company’s Board (“Voting Securities”), in either such case other than as a result of
acquisitions of such securities directly from the Company. 
 Notwithstanding the foregoing, a “Change in Control” of the Company
shall not be deemed to have occurred for purposes of subparagraph (c) of this Section 5.01 solely as the result of an acquisition of securities by the Company which, by reducing the number of shares of Common Stock or other Voting
Securities outstanding, increases (i) the proportionate number of shares of Common Stock beneficially owned by any person to 20% or more of the shares of 

  

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Common Stock then outstanding or (ii) the proportionate voting power represented by the Voting Securities beneficially owned by any person to 20% or
more of the combined voting power of all then outstanding Voting Securities; provided, however, that if any person referred to in clause (I) or (ii) of this sentence shall thereafter become the beneficial owner of any additional shares of
Common Stock or other Voting Securities (other than as a result of a stock split, stock dividend or similar transaction), then a “Change in Control” of the Company shall be deemed to have occurred for purposes of subparagraph (c) of
this Section 5.01. 
 Section 6.02. Amendment and Termination of the Plan. Subject to the right of the Board to terminate
the Plan prior thereto, the Plan shall terminate at the expiration of ten years from February 28, 1996. No Options may be granted after termination of the Plan. The Board may alter or amend the Plan but may not, without the approval of the
shareholders of the Company, make any alteration or amendment thereof which operates to (I) abolish the Committee, change the qualifications of its members or withdraw the administration of the Plan from its supervision, (ii) increase the
total number of shares of Common Stock which may be granted under the Plan (other than as provided in Section 6.01 of this Article VI), (iii) extend the term of the Plan or the maximum exercise periods provided in Section 3.04 of
Article III, Section 4.03 of Article IV and Section 5.03 of Article V hereof, (iv) decrease the minimum purchase price for Common Stock under the Plan, (v) materially increase the benefits accruing to participants under the Plan,
or (vi) materially modify the requirements as to eligibility for participation in the Plan. Notwithstanding any other provisions of this Section, the provisions of the Plan governing (A) the number of Options to be awarded to Outside
Directors, (B) the number of shares of Common Stock to be covered by each such Option, (C) the exercise price per share under each such Option, (D) when and under what circumstances each such Option will be granted and (E) the
period within which each such Option may be exercised, shall not be amended or altered more than once every six months, other than to comport with changes in the Code or the rules promulgated thereunder. 
 No termination or amendment of the Plan shall adversely affect the rights of an Optionee under an Option, except with the consent of such Optionee.

 Section 6.03. Payment of Purchase Price; Application of Funds. Upon exercise of an Option, the purchase price shall be paid in
full in cash or by check; provided, however, that at the request of an Optionee and to the extent permitted by applicable law, the Company shall approve reasonable arrangements with Optionees who are Outside Directors and may, in its sole and
absolute discretion, approve reasonable arrangements with one or more Optionees who are Employees or Consultants and their respective brokerage firms, under which such an Optionee may exercise his Option by delivering to the Company an irrevocable
notice of exercise, together with such other documents as the Company shall require, and the Company shall, upon receipt of full payment in cash or by check of the purchase price and any other amounts due in respect of such exercise, deliver to such
Optionee’s brokerage firm one or more certificates representing the shares of Common Stock issued in respect of such exercise. The proceeds of any sale of Common Stock covered by Options shall constitute general funds of the Company. Upon
exercise of an Option, the Optionee will be required to pay to the Company the amount of any federal, state or local taxes required by law to be withheld in connection with such exercise. 
  

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 Section 6.04. Requirements of Law. The granting of Options and the issuance of Common Stock
upon the exercise of an Option shall be subject to all applicable laws, rules and regulations and to such approval by governmental agencies as may be required. 
 Section 6.05. Nontransferability of Options. An Option granted under the Plan shall not be transferable by the Optionee except by will or by the laws of descent and distribution and shall be exercisable
during the lifetime of the Optionee only by the Optionee. 
 Section 6.06 Date of Adoption and Effective Date of the Plan. The
Plan shall be deemed adopted by the Board of February 28, 1996. The Plan shall be deemed effective as of such date, provided it is duly approved by the holders of a majority of the shares of Common Stock present or represented and entitled to
vote at the 1996 annual meeting of shareholders of the Company. If the Plan is not so approved, the Plan shall terminate and any Option granted hereunder shall be null and void. 
 Section 6.07. Gender. Words of any gender used in the Plan shall be construed to include any other gender, unless the context requires
otherwise. 
  

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