Document:

vray-ex101_237.htm

Exhibit 10.1

 

AMENDMENT NO. 2 TO TERM LOAN AGREEMENT

THIS AMENDMENT NO. 2 to Term Loan Agreement, dated as of April 12, 2017 (this “Amendment”) is made among ViewRay Technologies, Inc., a Delaware corporation (formerly known as ViewRay Incorporated) (“Borrower”) and the lenders listed on the signature pages hereof under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”), with respect to the Loan Agreement referred to below.

RECITALS

WHEREAS, the Borrower and the Lenders are parties to a Term Loan Agreement, dated as of June 26, 2015 (as amended by that certain Amendment No. 1 to Term Loan Agreement, dated as of March 24, 2016, the “Loan Agreement”).

WHEREAS, the parties hereto desire to amend the Loan Agreement on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:

SECTION 1.Definitions; Interpretation.

(a)Terms Defined in Loan Agreement.  All capitalized terms used in this Amendment (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

(b)Interpretation.  The rules of interpretation set forth in Section 1.03 of the Loan Agreement shall be applicable to this Amendment and are incorporated herein by this reference.

SECTION 2.Amendment of Loan Agreement.  Subject to Section 3, the Loan Agreement is hereby amended as follows:

(a)The definition of “Commitment Period” in Section 1.01 of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

““Commitment Period” means the period from and including the first date on which all of the conditions precedent set forth in Section 6.01 have been satisfied (or waived by the Lenders) and through and including the earlier of (i) September 30, 2017 and (ii) the date on which Borrower shall have provided written notice to Lenders of Borrower’s termination of the Commitment Period.”

(b)The definition of “FATCA” in Section 1.01 of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

““FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code, any intergovernmental agreement entered into in connection with the implementation of such Sections of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to such intergovernmental agreement.”

(c)The definition of “Fee Letter” in Section 1.01 of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

““Fee Letter” means that amended and restated fee letter agreement dated as of April 12, 2017 among Borrower and the Lenders party thereto.”

(d)The definition of “Interest-Only Period” in Section 1.01 of the Loan Agreement is hereby amended and restated to read in its entirety as follows:

““Interest-Only Period” means the period from and including the First Borrowing Date and through and including the nineteenth (19th) Payment Date following the First Borrowing Date (i.e., March 31, 2020).”

(e)The definition of “PIK Period” in Section 1.01 of the Loan Agreement is hereby amended and restated to read in its entirety as follows: 

““PIK Period” means the period beginning on the First Borrowing Date through and including, the earlier to occur of (i) the nineteenth (19th) Payment Date after the First Borrowing Date (i.e., March 31, 2020), and (ii) the date on which any Default shall have occurred (provided that if such Default shall have been cured or waived, the PIK Period shall resume until the earlier to occur of the next Default and the nineteenth (19th) Payment Date after the First Borrowing Date (i.e., March 31, 2020)).”

(f)The following sentence shall be added to the end of Section 5.03(a) of the Loan Agreement:

“For purposes of this Section 5.03, the term “applicable law” includes FATCA.” 

(g)Section 6.03 of the Loan Agreement shall be amended and restated to read in its entirety as follows:

“6.03 Conditions to Subsequent Borrowings.  The obligation of each Lender to make a Loan as part of any Borrowing subsequent to the second Borrowing made under Section 6.02 is subject to the following conditions precedent:

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(a)Borrowing Date.  Any such Borrowing shall occur on or prior to September 30, 2017.

(b)Amount of Borrowing.  The amount of any such Borrowing shall be no less than $5,000,000.  The aggregate amount of all Borrowings under this Section 6.03 shall be $20,000,000 minus the aggregate amount of Borrowings previously drawn under this Section 6.03; provided, however, that if Borrower does not make at least one Borrowing on or prior to June 30, 2017, then the aggregate amount of all Borrowings under this Section 6.03 shall be $15,000,000 minus the aggregate amount of Borrowings previously drawn under this Section 6.03.

(c)Borrowing Milestone.  Borrower shall have maintained a public market capitalization amount of at least $175,000,000 for the ten Business Day period immediately preceding the relevant Borrowing Notice Date, and provided evidence thereof in the relevant Notice of Borrowing.”

(h)Section 9.06 of the Loan Agreement shall be amended by deleting the current clause (g) and replacing it with the following clause (g):

“(g)to pay any (i) fees, taxes or expenses in connection with an initial public offering of Borrower’s common stock on a nationally recognized securities exchange and (ii) fees or expenses in connection with sales of Borrower’s common stock incurred in the ordinary course of business; and”

(i)Section 10.02(b) of the Loan Agreement shall be amended by replacing the number “80,000,000” therein with the number “60,000,000.”

SECTION 3.Conditions of Effectiveness.  The effectiveness of Section 2 shall be subject to the following conditions precedent:

(a)Borrower shall have paid or reimbursed Lenders for Lenders’ reasonable out of pocket costs and expenses incurred in connection with this Amendment, including Lenders’ reasonable out of pocket legal fees and costs, pursuant to Section 12.03(a)(i)(z) of the Loan Agreement.

(b)The representations and warranties in Section 4 shall be true and correct on the date hereof.

(c)Lenders shall have received a copy of the Fee Letter, dated the date hereof (the “Fee Letter”), executed and delivered by Borrower.

SECTION 4.Representations and Warranties; Reaffirmation.

(a)Borrower hereby represents and warrants to each Lender as follows:

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(i)Borrower has full power, authority and legal right to make and perform this Amendment.  This Amendment is within Borrower’s corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.  This Amendment has been duly executed and delivered by Borrower and constitutes a legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  This Amendment (x) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force and effect, (y) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of Borrower and its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) will not violate or result in an event of default under any material indenture, agreement or other instrument binding upon Borrower and its Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person.

(ii)No Default has occurred or is continuing or will result after giving effect to this Amendment.

(iii)The representations and warranties made by or with respect to Borrower in Section 7 of the Loan Agreement are true in all material respects (taking into account any changes made to schedules updated in accordance with Section 7.20 of the Loan Agreement or attached hereto), except that such representations and warranties that refer to a specific earlier date were true in all material respects on such earlier date.

(iv)There has been no Material Adverse Effect since the date of the Loan Agreement.

(b)Borrower hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to which it is a party and agrees that the Loan Documents to which it is a party remain in full force and effect, undiminished by this Amendment, except as expressly provided herein and in the Fee Letter.  By executing this Amendment, Borrower acknowledges that it has read, consulted with its attorneys regarding, and understands, this Amendment.

SECTION 5.Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

(a)Governing Law.  This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law shall apply.

(b)Submission to Jurisdiction.  Borrower agrees that any suit, action or proceeding with respect to this Amendment or any other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in 

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Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment.  This Section 5 is for the benefit of the Lenders only and, as a result, no Lender shall be prevented from taking proceedings in any other courts with jurisdiction.  To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions.

(c)Waiver of Jury Trial.  Borrower and each Lender hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any suit, action or proceeding arising out of or relating to this Amendment, the other Loan Documents or the transactions contemplated hereby or thereby.

SECTION 6.Miscellaneous.

(a)No Waiver.  Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents.  Except as amended hereby and as amended and restated by the Fee Letter, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect.  All references in the Loan Documents to the Loan Agreement shall be deemed to be references to the Loan Agreement as amended hereby.

(b)Severability.  In case any provision of or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

(c)Headings.  Headings and captions used in this Amendment (including the Exhibits, Schedules and Annexes hereto, if any) are included for convenience of reference only and shall not be given any substantive effect.

(d)Integration.  This Amendment constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

(e)Counterparts.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Amendment by signing any such counterpart.

(f)Controlling Provisions.  In the event of any inconsistencies between the provisions of this Amendment and the provisions of any other Loan Document, the provisions of this Amendment shall govern and prevail.  Except as expressly modified by this Amendment and by the Fee Letter, the Loan Documents shall not be modified and shall remain in full force and effect.

[Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first above written.

		
	
 
	
BORROWER:

 

VIEWRAY TECHNOLOGIES, INC.

 

By /s/ Ajay Bansal

Ajay Bansal

Chief Financial Officer

 

 

 

 

 

 

LENDERS:

 

CAPITAL ROYALTY PARTNERS II L.P.

	
 
	
By CAPITAL ROYALTY PARTNERS II GP L.P., its General Partner
By CAPITAL ROYALTY PARTNERS II GP LLC, its General Partner

By /s/ Nathan Hukill
	

 

Name:Nathan Hukill
Title:Authorized Signatory

CAPITAL ROYALTY PARTNERS II (CAYMAN) L.P. 

	
 
	
By CAPITAL ROYALTY PARTNERS II (CAYMAN) GP L.P., its General Partner
By CAPITAL ROYALTY PARTNERS II (CAYMAN) GP LLC, its General Partner 

By /s/ Nathan Hukill
	

 

Name:Nathan Hukill
Title:Authorized Signatory

Witness: /s/ Nicole Nesson

Name:Nicole Nesson

 

PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II L.P. 

By PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II GP L.P., its General Partner 

By PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II GP LLC, its General Partner 

	
 
	
By /s/ Nathan Hukill
	

 

Name:Nathan Hukill
Title:Authorized Signatory

CRG ISSUER 2015-1

By CRG SERVICING LLC, as Administrator

 

By /s/ Nathan Hukill

 

Name:Nathan Hukill
Title:Presidentgkos_Ex10_1

		
			Exhibit 10.1
		

		
			GLAUKOS CORPORATION
		

		
			NOTICE OF GRANT OF RESTRICTED STOCK UNITS
		

		
			The Participant has been granted the number of Restricted Stock Units set forth below (the “RSUs”) pursuant to the Glaukos Corporation 2015 Omnibus Incentive Compensation Plan (the “Plan”), as follows:
		

			
					
						 

					
					
						 

				
	
					
						Participant:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date of Grant:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Number of Restricted Stock Units:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Vesting Commencement Date

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Vested Shares:

					
					
						Subject to your continued status as a Service provider through each of the applicable vesting dates, the RSUs shall become vested, in whole or in part, in accordance with the terms of the Plan, the Award Agreement, this Notice of Grant and the following schedule:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						First Anniversary of Vesting Commencement Date         1/4 of the Number of RSUs

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Second Anniversary of Vesting Commencement Date     1/4 of the Number of RSUs

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Third Anniversary of Vesting Commencement Date        1/4 of the Number of RSUs

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Fourth Anniversary of Vesting Commencement Date      1/4 of the Number of RSUs

				

		
			 
		

		
			Capitalized terms not defined herein shall have the meaning as set forth in the Plan.
		

		
			Upon any termination of Participant’s Service, except in the event of Participant’s death or Disability, if the vesting conditions described in the Vested Shares section above are not achieved by the date indicated, the unvested RSUs will terminate and Participant’s right to the unvested RSUs will be forfeited.
		

		
			By signing below, the Participant agrees that the Company, its directors, officers and shareholders shall not be held liable for any tax, penalty, interest or cost incurred by the Participant as a result of such determination by the IRS.  The Participant is urged to consult with his or her own tax advisor regarding the tax consequences of the RSUs, including the application of Section 409A.
		

		
			By their signatures below, the Company and the Participant agree that the RSUs are governed by this Grant Notice and by the provisions of the Plan and the Restricted Stock Unit Agreement, both of which are attached to and made a part of this document.  The Participant acknowledges receipt of copies of the Plan and the Restricted Stock Unit Agreement, represents that the Participant has read and is familiar with their provisions, and hereby accepts the RSUs subject to all of their terms and conditions.
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						GLAUKOS CORPORATION 

					
					
						    

					
					
						PARTICIPANT

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By: 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Signature

				
	
					
						Its: 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Date

				
	
					
						Address:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Address

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			ATTACHMENTS:   Glaukos Corporation 2015 Omnibus Incentive Compensation Plan, as amended to the Date of Grant; Restricted Stock Unit Agreement
		

		
			
		

		
			

		 

 

		

		
			GLAUKOS CORPORATION
		

		
			RESTRICTED STOCK UNIT AGREEMENT
		

		
			Glaukos Corporation has granted to the Participant named in the Notice of Grant of Restricted Stock Units (the “Grant Notice”) to which this Restricted Stock Unit Agreement (the “Agreement”) is attached a number of Restricted Stock Units (the “RSUs”) pursuant to the terms and conditions set forth in the Grant Notice and this Agreement.  The RSUs have been granted pursuant to and shall in all respects be subject to the terms and conditions of the Glaukos Corporation 2015 Omnibus Incentive Compensation Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are incorporated herein by reference.  By signing the Grant Notice, the Participant: (a) acknowledges receipt of, and represents that the Participant has read and is familiar with the terms and conditions of, the Grant Notice, this Agreement and the Plan, (b) accepts the RSUs subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan, and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under the Grant Notice, this Agreement or the Plan.
		

		
			1.           Definitions and Construction.
		

		
			1.1       Definitions.  Unless otherwise defined herein, capitalized terms shall have the meanings assigned to such terms in the Grant Notice or the Plan.
		

		
			1.2       Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.
		

		
			2.           Administration.
		

		
			All questions of interpretation concerning the Grant Notice, this Agreement, the Plan or any other form of agreement or other document employed by the Company in the administration of the Plan or the RSUs shall be determined by the Board.  All such determinations by the Board shall be final, binding and conclusive upon all persons having an interest in the RSUs, unless fraudulent or made in bad faith.  Any and all actions, decisions and determinations taken or made by the Board in the exercise of its discretion pursuant to the Plan or the RSUs or other agreement thereunder (other than determining questions of interpretation pursuant to the preceding sentence) shall be final, binding and conclusive upon all persons having an interest in the RSUs.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, or election.
		

		
			
		

		
			

		 

 

		

		
			3.           Vesting.  
		

		
			Except as set forth in Section 4 below and subject to the limitations contained herein, the RSUs shall vest as provided in the Grant Notice.
		

		
			4.           Termination of Service.
		

		
			4.1       Termination of Service Due to Participant’s Death.  Except as otherwise provided in this Agreement, if Participant’s Service terminates because of Participant’ death, the unvested portion of the RSUs will become one hundred percent (100%) vested on the date of Participant’s termination of Service due to death.   
		

		
			4.2       Termination of Service Due to Participant’s Disability.  Except as otherwise provided in this Agreement, if Participant’s Service terminates as a result of Disability, the unvested RSUs will become one hundred percent (100%) vested on the date of Participant’s termination of Service due to Disability.
		

		
			For purposes of this Subsection 4.2, “Disability” will be determined in accordance with the standards and procedures of the then-current long term disability plan maintained by the Company, which is generally a physical condition arising from an illness or injury, which renders an individual incapable of performing work in any occupation, as determined by the Company.
		

		
			4.3       Other Termination of Service. In the event Participant’s Service terminates for any reason other than death or Disability, vesting shall cease upon the termination of the Participant’s Service.  Any portion of the RSUs that have not vested as of Participant’s termination of Service for any reason other than death or Disability shall be forfeited upon termination of Service.
		

		
			5.            Dividends.
		

		
			The Participant shall not receive any payment or other adjustment in the number of RSUs for dividends or other distributions that may be made in respect of the shares of Stock to which the RSUs relate.
		

		
			6.            Distribution of Shares of Stock.   
		

		
			The Company will deliver to the Participant a number of shares of Stock equal to the number of vested shares of Stock subject to the RSUs on the vesting date or dates provided in the Grant Notice, less any shares of Stock withheld for the payment of taxes as described in Subsection 12.2 of this Agreement; provided, however, that the shares of Stock subject to the RSUs that vest on or prior to the execution of the Grant Notice, less any shares of Stock withheld for the payment of taxes as described in Subsection 12.2 of this Agreement, shall be delivered as soon as practicable following the date of execution of the Grant Notice.
		

		
			
		

		
			

		 

 

		

		
			7.           Adjustments; Change in Control.    
		

		
			The provisions of the Plan applicable to Adjustments and a Change in Control or other corporate transaction, as described in Section 12 of the Plan, shall apply to the RSUs.
		

		
			8.            Securities Law Compliance.  
		

		
			The Participant may not be issued any shares of Stock pursuant to the RSUs unless the shares of Stock are either (i) then registered under the Securities Act or (ii) the Company has determined that such issuance would be exempt from the registration requirements of the Securities Act.  The RSUs must also comply with other applicable laws and regulations governing the RSUs, and the Participant shall not receive such shares if the Company determines that such receipt would not be in material compliance with such laws and regulations.
		

		
			9.            Execution of Documents.  
		

		
			The Participant hereby acknowledges and agrees that the manner selected by the Company to indicate the Participant’s consent to the Grant Notice is also deemed to be execution of the Grant Notice and of this Agreement.  The Participant further agrees that such manner of indicating consent may be relied upon as the Participant’s signature for establishing execution of any documents to be executed in the future in connection with the RSUs.  This Agreement shall be deemed to be signed by the Company and the Participant upon the respective signing by the Company and the Participant of the Grant Notice to which it is attached.  
		

		
			10.          RSUs not a Service Contract.  
		

		
			The RSUs are not an employment or service contract, and nothing in the RSUs shall be deemed to create in any way whatsoever any obligation on the Participant to continue in the service of the Company or Participating Company, or on the part of the Company or Participating Company to continue such service.  In addition, nothing in the RSUs shall obligate the Company or Participating Companies, their respective stockholders, boards of directors, Officers or Employees to continue any relationship that the Participant might have as an Employee, Director or Consultant for the Company or Participating Company.
		

		
			11.          Unsecured Obligation.  
		

		
			The RSUs are unfunded, and as a holder of a vested number of RSUs, the Participant shall be considered an unsecured creditor of the Company with respect to the Company’s obligation, if any, to issue shares of Stock pursuant to Section 6 of this Agreement.
		

		
			12.          Tax Withholding.   
		

		
			12.1       In General.  At the time this Agreement is executed, or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company, if any, which arise in connection with the grant or vesting of the RSUs or the
		

		
			
		

		
			

		 

 

		

		
			issuance of Stock in settlement thereof.  The Company shall have no obligation to deliver Stock until the tax obligations of the Company have been satisfied by the Participant.
		

		
			12.2       Withholding in Securities.  The Company shall require the Participant to satisfy all of the tax obligations by deducting from the shares of Stock otherwise deliverable to the Participant in settlement of the RSUs a number of shares of Stock having a fair market value, as determined by the Company as of the date on which the tax obligations arise, not in excess of the amount of such tax obligations determined by the applicable withholding rates.  Any adverse consequences to the Participant resulting from the procedure permitted under this Subsection 12.2, including, without limitation, tax consequences, shall be the sole responsibility of the Participant.
		

		
			12.3       Consultation.  The Participant hereby acknowledges that he or she understands that the Participant may suffer adverse tax consequences as a result of participation in the Plan.  The Participant hereby represents that the Participant has consulted with tax consultants in connection with the Award and that the Participant is not relying on the Company for any tax advice.
		

		
			12.4       Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with any broker with which the Participant has an account relationship of which the Company has notice any or all shares acquired by the Participant pursuant to the settlement of the RSUs.  Except as provided by the preceding sentence, a certificate for the shares pursuant to the RSUs shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.
		

		
			13.          Nontransferability of the RSUs.
		

		
			The RSUs and the rights and privileges conferred hereby shall not be sold, pledged or otherwise transferred (whether by operation of law or otherwise) in any manner otherwise than by will or by the laws of descent or distribution, shall not be subject to sale under execution, attachment, levy or similar process and may be exercised during the lifetime of the Participant only by the Participant.  The terms of the Plan and the Award Agreement shall be binding upon the executors, administrators, heirs, successors and assigns of the Participant.
		

		
			14.          Rights as a Stockholder, Director, Employee or Consultant.
		

		
			The Participant shall have no rights as a stockholder with respect to any shares related to the RSUs until the date of issuance of the shares pursuant to the RSUs (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Participant, the Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the Participant’s Service as a Director, an Employee or Consultant, as the case may be, at any time.
		

		
			
		

		
			

		 

 

		

		
			15.          Miscellaneous Provisions.
		

		
			15.1       Termination or Amendment.  The Board may terminate or amend the Plan or the RSUs at any time.
		

		
			15.2       Compliance with Section 409A.    The Company intends that income realized by the Participant pursuant to the Plan and this Agreement will not be subject to taxation under Section 409A of the Code.  The provisions of the Plan and this Agreement shall be interpreted and construed in favor of satisfying any applicable requirements of Section 409A of the Code.  The Company, in its reasonable discretion, may amend (including retroactively) the Plan and this Agreement in order to conform to the applicable requirements of Section 409A of the Code, including amendments to facilitate the Participant’s ability to avoid taxation under Section 409A of the Code.  However, the preceding provisions shall not be construed as a guarantee by the Company of any particular tax result for income realized by the Participant pursuant to the Plan or this Agreement.  In any event, and except for the responsibilities of the Company set forth in Section 12, no Participating Company shall be responsible for the payment of any applicable taxes on income realized by the Participant pursuant to the Plan or this Agreement.
		

		
			15.3       Fractional Shares.  The Company shall not be required to issue fractional shares upon the settlement of the RSUs.
		

		
			15.4       Further Instruments.    The parties hereto 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.
		

		
			15.5       Binding Effect.    Subject to the restrictions on transfer set forth herein, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns.
		

		
			15.6       Delivery of Documents and Notices.    Any document relating to participation in the Plan, or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery or electronic delivery at the e-mail address, if any, provided for the Participant by the Participating Company, or, upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service with postage and fees prepaid, addressed to the other party at the address of such party set forth in the Grant Notice or at such other address as such party may designate in writing from time to time to the other party.
		

		
			(a)       Description of Electronic Delivery.    The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, and any reports of the Company provided generally to the Company’s shareholders, may be delivered to the Participant electronically.  In addition, if permitted by the Company, the Participant may deliver electronically the Grant Notice to the Company or to such third party involved in administering the Plan as the Company may designate from time to time.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the 
		

		
			
		

		
			

		 

 

		

		
			delivery of the document via e-mail or such other means of electronic delivery specified by the Company.
		

		
			(b)       Consent to Electronic Delivery.    The Participant acknowledges that the Participant has read Subsection 15.6(a) of this Agreement and consents to the electronic delivery of the Plan documents and, if permitted by the Company, the delivery of the Grant Notice, as described in Subsection 15.6(a).  The Participant acknowledges that he or she may receive from the Company a paper copy of any documents delivered electronically at no cost to the Participant by contacting the Company by telephone or in writing.  The Participant further acknowledges that the Participant will be provided with a paper copy of any documents if the attempted electronic delivery of such documents fails.  Similarly, the Participant understands that the Participant must provide the Company or any designated third party administrator with a paper copy of any documents if the attempted electronic delivery of such documents fails.  The Participant may revoke his or her consent to the electronic delivery of documents described in Subsection 15.6(a) or may change the electronic mail address to which such documents are to be delivered (if Participant has provided an electronic mail address) at any time by notifying the Company of such revoked consent or revised e-mail address by telephone, postal service or electronic mail.  Finally, the Participant understands that he or she is not required to consent to electronic delivery of documents described in Subsection 15.6(a).
		

		
			15.7       Integrated Agreement.    The Grant Notice, this Agreement and the Plan, together with any employment, service or other agreement with the Participant and a Participating Company referring to the RSUs, shall constitute the entire understanding and agreement of the Participant and the Participating Company Group with respect to the subject matter contained herein or therein and supersede any prior agreements, understandings, restrictions, representations, or warranties among the Participant and the Participating Company Group with respect to such subject matter.  To the extent contemplated herein or therein, the provisions of the Grant Notice, this Agreement and the Plan shall survive any vesting of the RSUs and shall remain in full force and effect.
		

		
			15.8       Applicable Law.    This Agreement shall be governed by the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within the State of California.
		

		
			15.9       Counterparts.    The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

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