Document:

exv10w4

 

Exhibit 10.4

STANDARD NON-ISO GRANT

EV3 INC.

2005 INCENTIVE STOCK PLAN

NON-INCENTIVE STOCK OPTION

OPTION CERTIFICATE

ev3 Inc., a Delaware corporation, in accordance with the ev3 Inc. 2005 Incentive Stock Plan, hereby
grants an Option to Robert J. Palmisano, who shall be referred to as “Optionee”, to purchase from
the Company three hundred thousand (300,000) shares of Stock at an Option Price per share equal to
$8.64, which grant shall be subject to all of the terms and conditions set forth in this Option
Certificate and in the Plan. This grant has been made as of April 6, 2008, which shall be referred
to as the “Grant Date”. This Option is not intended to satisfy the requirements of § 422 of the
Code and thus shall be a Non-ISO as that term is defined in the Plan.

	 	 	 	 	 
	 

	 	EV3 INC.
	 
	 
	 

	 	By:	 	 
	 

	 	 	 	 

TERMS AND CONDITIONS

     § 1. Plan. This Option grant is subject to all the terms and conditions set forth in
the Plan and this Option Certificate, and all the terms in this Option Certificate which begin with
a capital letter are either defined in this Option Certificate or in the Plan. If a determination
is made that any term or condition set forth in this Option Certificate is inconsistent with the
Plan, the Plan shall control. A copy of the Plan has been made available to Optionee.

 

 

	 	§ 2.	 	Vesting and Option Expiration.

	 	(a)	 	General Rule. Subject to § 2(b) and § 2(c), Optionee’s
right under this Option Certificate to exercise this Option shall vest with
respect to: (1) 25% of the shares of Stock which may be purchased under this
Option Certificate on April 6, 2009, such date being approximately twelve (12)
months from the Grant Date, provided he or she remains continuously employed by
the Company or continues to provide services to the Company through such date,
and (2) with respect to the remaining 75% of such shares of Stock, in equal
amounts on the sixth day of each of the next thirty-six (36) months thereafter,
beginning on May 6, 2009 provided he or she remains continuously employed by
the Company or continues to provide services to the Company through each such
date.

	 	(b)	 	Option Expiration Rules.

	 	(1)	 	Non-Vested Shares. If Optionee’s
employment or service with the Company terminates for any reason
whatsoever, including death, Disability or retirement, while there are
any non-vested shares of Stock subject to this Option under § 2(a),
this Option immediately upon such termination of employment or service
shall expire and shall have no further force or effect and be null and
void with respect to such non-vested shares of Stock.

	 	(2)	 	Vested Shares. Optionee’s right to
exercise all or any part of this Option which has vested under § 2(a)
shall expire no later than the tenth anniversary of the Grant Date.
However, if Optionee’s employment or service relationship with the
Company terminates before the tenth anniversary of the Grant Date,
Optionee’s right to exercise this Option which has vested under § 2(a)
shall expire and shall have no further force or effect and shall be
null and void:

	 	(A)	 	on the date his or her employment
or service relationship terminates if his or her employment or
service relationship terminates for Cause,

	 	(B)	 	on the first anniversary of the
date his or her employment or service relationship terminates if
his or her employment or service relationship terminates as a
result of his or her death or Disability, or

- 2 -

 

	 	(C)	 	at the end of the 90 day period
which starts on the date his or her employment or service
relationship terminates if his or her employment or service
relationship terminates other than (1) for Cause or (2) as a
result of his or her death or Disability.

	 	(c)	 	Special Rules.

	 	(1)	 	Sale of Business Unit. The Committee,
in connection with the sale of any Subsidiary, Affiliate, division or
other business unit of the Company, may, within the Committee’s sole
discretion, take any or all of the following actions if this Option or
the rights under this Option will be adversely affected by such
transaction:

	 	(A)	 	accelerate the time Optionee’s
right to exercise this Option will vest under § 2(a),

	 	(B)	 	provide for vesting after such
sale or other disposition, or

	 	(C)	 	extend the time at which this
Option will expire (but not beyond the tenth anniversary of the
Grant Date).

	 	(2)	 	Change in Control. If there is a
Change in Control of the Company, this Option shall become fully vested
and immediately exercisable upon the closing of the Change in Control
and shall be subject to the provisions of § 14 of the Plan with respect
to such Change in Control.

	 	(3)	 	Affiliates. For purposes of this
Option Certificate, any reference to the Company shall include any
Affiliate, Parent or Subsidiary of the Company, and a transfer of
employment or service relationship between the Company and any
Affiliate, Parent or Subsidiary of the Company or between any
Affiliate, Parent or Subsidiary of the Company shall not be treated as
a termination of employment or service relationship under the Plan or
this Option Certificate.

	 	(4)	 	Termination of Employment or Service
Relationship. For purposes of this Option Certificate, if the
Optionee’s employment with the Company terminates while there are

- 3 -

 

	 	 	 	any non-vested shares of Stock subject to this Option under § 2(a)
but the Optionee at such time then becomes an independent consultant
to the Company, the Optionee’s right under this Option Certificate to
exercise this Option shall continue to vest so long as the Optionee
continues to provide services to the Company in accordance with §
2(a). For purposes of this Option Certificate, except as otherwise
provided below, if the Optionee’s employment with the Company
terminates but the Optionee at such time then becomes an independent
consultant to the Company, the termination of the Optionee’s
employment shall not result in the expiration of the Option under §
2(b)(1) or 2(b)(2). Notwithstanding the foregoing, the Optionee’s
right to exercise all or any part of this Option which has vested
under § 2(a) shall expire no later than the tenth anniversary of the
Grant Date.

	 	(5)	 	Fractional Shares. Optionee’s right to
exercise this Option shall not include a right to exercise this Option
to purchase a fractional share of Stock. If Optionee exercises this
Option on any date when this Option includes a fractional share of
Stock, his or her exercise right shall be rounded down to the nearest
whole share of Stock and the fractional share shall be carried forward
until that fractional share together with any other fractional shares
can be combined to equal a whole share of Stock or this Option expires.

	 	(a)	 	Definitions.

	 	(1)	 	Cause. For purposes of this
Certificate, “Cause” shall exist if (A) Optionee has engaged in conduct
that in the judgment of the Committee constitutes gross negligence,
misconduct or gross neglect in the performance of Optionee’s duties and
responsibilities, including conduct resulting or intending to result
directly or indirectly in gain or personal enrichment for Optionee at
the Company’s expense, (B) Optionee has been convicted of or has pled
guilty to a felony for fraud, embezzlement or theft, (C) Optionee has
engaged in a breach of any policy of the Company for which termination
of employment or service is a permissible consequence or Optionee has
not immediately cured any performance or other issues raised by
Optionee’s supervisor, (D) Optionee had knowledge of (and did not
disclose to the Company in writing)

- 4 -

 

	 	 	 	any condition that could potentially impair Optionee’s ability to
perform the functions of his or her job or service relationship
fully, completely and successfully, or (E) Optionee has engaged in
any conduct that would constitute “cause” under the terms of his or
her employment or consulting agreement, if any.

	 	(2)	 	Disability. For purposes of this
Certificate, “Disability” means any medically determinable physical or
mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months and
which renders Optionee unable to engage in any substantial gainful
activity. The Committee shall determine whether Optionee has
a Disability. If Optionee disputes such determination, the issue shall
be submitted to a competent licensed physician appointed by the Board,
and the physician’s determination as to whether Optionee has a
Disability shall be binding on the Company and on Optionee.

     § 3. Method of Exercise of Option. Optionee may exercise this Option in whole or in
part (to the extent this Option is otherwise exercisable under § 2 with respect to vested shares of
Stock) only in accordance with the rules and procedures established from time to time by the
Company for the exercise of an Option. The Option Price shall be paid at exercise either in cash,
by check acceptable to the Company or through any cashless exercise procedure which is implemented
by a broker unrelated to the Company through a sale of Stock in the open market and which is
acceptable to the Committee, or in any combination of these forms of payment.

     § 4. Delivery and Other Laws. The Company shall deliver appropriate and proper
evidence of ownership of any Stock purchased pursuant to the exercise of this Option as soon as
practicable after such exercise to the extent such delivery is then permissible under applicable
law or rule or regulation, and such delivery shall discharge the Company of all of its duties and
responsibilities with respect to this Option.

     § 5. Non-transferable. No rights granted under this Option shall be transferable by
Optionee other than (a) by will or by the laws of descent and distribution or (b) to a “family
member” as provided in § 10.2 of the Plan. The person or persons, if any, to whom this Option is
transferred shall be treated after Optionee’s death the same as Optionee under this Option
Certificate.

     § 6. No Right to Continue Service. Neither the Plan, this Option, nor any related
material shall give Optionee the right to continue in employment by or perform services to the
Company or shall adversely affect the right of the Company to

- 5 -

 

terminate Optionee’s employment or service relationship with the Company with or without Cause
at any time.

     § 7. Stockholder Status. Optionee shall have no rights as a stockholder with respect
to any shares of Stock under this Option until such shares have been duly issued and delivered to
Optionee, and no adjustment shall be made for dividends of any kind or description whatsoever or
for distributions of rights of any kind or description whatsoever respecting such Stock except as
expressly set forth in the Plan.

     § 8. Governing Law. The Plan and this Option Certificate shall be governed by the
laws of the State of Delaware.

     § 9. Binding Effect. This Option Certificate shall be binding upon the Company and
Optionee and their respective heirs, executors, administrators and successors.

     § 10. Tax Withholding. This Option has been granted subject to the condition that
Optionee consents to whatever action the Committee directs to satisfy the minimum statutory federal
and state withholding requirements, if any, which the Company determines are applicable upon the
exercise of this Option.

     § 11. References. Any references to sections (§) in this Option Certificate shall be
to sections (§) of this Option Certificate unless otherwise expressly stated as part of such
reference.

     § 12. Availability of Copy of Plan and Plan Prospectus. A copy of the plan document
and prospectus for the ev3 Inc. Amended and Restated 2005 Incentive Stock Plan are available on the
Company’s intranet portal under the “Employee Tools” section, which can be accessed by opening your
web browser from your Company desktop or laptop computer. If you like to receive a paper copy of
the plan document and/or plan prospectus, please contact:

Kevin M. Klemz

Vice President, Secretary and Chief Legal Officer

ev3 Inc.

9600 54th Avenue North

Plymouth, Minnesota 55442

(763) 398-7000

KKlemz@ev3.net

     § 13. Availability of Annual Report to Stockholders and Other SEC Filings. A copy of
the Company’s most recent annual report to stockholders and other filings made with the Securities
and Exchange Commission are available on the

- 6 -

 

Company’s internet website, www.ev3.net, under the Investors Relations—SEC Filings section.
If you like to receive a paper copy of the Company’s most recent annual report to stockholders and
other filings made by the Company with the Securities and Exchange Commission, please contact Kevin
M. Klemz at the address, telephone number or e-mail address above.

- 7 -exv10w5

 

Exhibit 10.5

EV3 INC.

ROBERT J. PALMISANO INDUCEMENT GRANT

NON-INCENTIVE STOCK OPTION

OPTION CERTIFICATE

ev3 Inc., a Delaware corporation (the “Company”) hereby grants an Option to Robert J. Palmisano,
who shall be referred to as “Optionee”, to purchase from
the Company seven hundred fifty-four thousand (754,000) shares of
Stock at an Option Price per share equal to $8.64, which grant shall be subject to
all of the terms and conditions set forth in this Option Certificate. This grant has been made as
of April 6, 2008, which shall be referred to as the “Grant
Date”. The Option Price of this Option is the closing price of
the Stock on the NASDAQ Stock Market on April 4, 2008, which is
the last business day immediately preceding the Grant Date. This Option is not intended to
satisfy the requirements of § 422 of the Code and thus shall not be an “incentive stock option.”
This Option is being granted as an “employee inducement award” within the meaning of Rule
4350(i)(1)A)(iv) of the NASDAQ Stock Market Marketplace Rules.

	 	 	 	 	 
	 

	 	EV3 INC.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 

TERMS AND CONDITIONS

     § 1. Definitions. This Option grant is subject to all the terms and conditions set
forth in this Option Certificate. Certain capitalized terms used in this Option Certificate are
defined as follows:

     Affiliate means any organization (other than a Subsidiary) that would be treated as
under common control with the Company under § 414(c) of the Code if “50 percent” were substituted
for “80 percent” in the income tax regulations under § 414(c) of the Code.

     Board means the Board of Directors of the Company.

     Change in Control means a change in control of the Company occurring after
the Grant Date of a nature that would be required to be reported in

 

 

response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on
any similar schedule or form) promulgated under the Exchange Act, whether or not the Company is
then subject to such reporting requirement; provided, however, that, without
limitation, a Change in Control shall include: (i) the acquisition (other than from the Company)
after the Grant Date by any person, entity or “group” within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act (excluding, for this purpose, the Company or its subsidiaries, any
employee benefits plan of the Company or its subsidiaries which acquires beneficial ownership of
voting securities of the Company, any qualified institutional investor who meets the requirements
of Rule 13d-1(b)(1) promulgated under the Exchange Act, Warburg Pincus LLC and its affiliates, and
The Vertical Group, L.P. and its affiliates) of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of 20% or more of either the then-outstanding shares of
common stock or the combined voting power of the Company’s then-outstanding capital stock entitled
to vote generally in the election of directors; (ii) individuals who, as of the date hereof,
constitute the Board (the “Incumbent Board”) ceasing for any reason to constitute at least
a majority of the Board, provided that any person becoming a director subsequent to the date hereof
whose election, or nomination for election by the Company’s stockholders was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection with an actual or
threatened election contest relating to the election of the directors of the Company) shall be, for
purposes of this Agreement, considered as though such person were a member of the Incumbent Board;
or (iii) approval by the stockholders of the Company of (A) reorganization, merger, or
consolidation, in each case, with respect to which persons who were the stockholders of the Company
immediately prior to such reorganization, merger, or consolidation do not, immediately thereafter,
own more than 50% of the combined voting power entitled to vote generally in the election of
directors of the reorganized, merged, consolidated or other surviving corporation’s
then-outstanding voting securities, (B) a liquidation or dissolution of the Company, or (C) the
sale of all or substantially all of the assets of the Company.

     Code means the Internal Revenue Code of 1986, as amended.

     Committee means a committee of the Board which shall have at least 2 members, each of
whom shall be appointed by and shall serve at the pleasure of the Board and, if at any time the
Company desires to exempt issuances within the meaning of Section 162(m) of the Code, each of whom
shall be an “outside director” within the meaning of Section 162(m)(4)(C) of the Code.

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

- 2 -

 

     Family Member has the meaning given such term in Form S-8 under the 1933 Act.

     Stock means the common stock of the Company.

     Subsidiary means a corporation which is a subsidiary corporation (within the meaning
of § 424(f) of the Code) of the Company.

     1933 Act means the Securities Act of 1933, as amended.

	 	§ 2.	 	 Vesting and Option Expiration.

	 	(a)	 	General Rule. Subject to § 2(b) and § 2(c), Optionee’s
right under this Option Certificate to exercise this Option shall vest with
respect to: (1) 25% of the shares of Stock which may be purchased under this
Option Certificate on April 6, 2009, such date being approximately twelve (12)
months from the Grant Date, provided he remains continuously employed by the
Company or continues to provide services to the Company through such date, and
(2) with respect to the remaining 75% of such shares of Stock, in equal amounts
on the sixth day of each of the next thirty-six (36) months thereafter,
beginning on May 6, 2009 provided he remains continuously employed by the
Company or continues to provide services to the Company through each such date.

	 	(b)	 	Option Expiration Rules.

	 	(1)	 	Non-Vested Shares. If Optionee’s
employment or service with the Company terminates for any reason
whatsoever, including death, Disability or retirement, while there are
any non-vested shares of Stock subject to this Option under § 2(a),
this Option immediately upon such termination of employment or service
shall expire and shall have no further force or effect and be null and
void with respect to such non-vested shares of Stock.

	 	(2)	 	Vested Shares. Optionee’s right to
exercise all or any part of this Option which has vested under § 2(a)
shall expire no later than the tenth anniversary of the Grant Date.
However, if Optionee’s employment or service relationship with the
Company terminates before the tenth anniversary of the Grant Date,
Optionee’s right to exercise this Option which

- 3 -

 

	 	 	 	has vested under § 2(a) shall expire and shall have no further force
or effect and shall be null and void:

	 	(A)	 	on the date his employment or
service relationship terminates if his employment or service
relationship terminates for Cause,

	 	(B)	 	on the first anniversary of the
date his employment or service relationship terminates if his
employment or service relationship terminates as a result of his
death or Disability, or

	 	(C)	 	at the end of the 90 day period
which starts on the date his employment or service relationship
terminates if his employment or service relationship terminates
other than (1) for Cause or (2) as a result of his death or
Disability.

	 	(c)	 	Special Rules.

	 	(1)	 	Sale of Business Unit. The Committee,
in connection with the sale of any Subsidiary, Affiliate, division or
other business unit of the Company, may, within the Committee’s sole
discretion, take any or all of the following actions if this Option or
the rights under this Option will be adversely affected by such
transaction:

	 	(A)	 	accelerate the time Optionee’s
right to exercise this Option will vest under § 2(a),

	 	(B)	 	provide for vesting after such
sale or other disposition, or

	 	(C)	 	extend the time at which this
Option will expire (but not beyond the tenth anniversary of the
Grant Date).

	 	(2)	 	Change in Control. If there is a
Change in Control of the Company, this Option shall become fully vested
and immediately exercisable upon the closing of the Change in Control
and the Board shall have the right (to the extent expressly required as
part of such transaction) to cancel this Option after providing the
Optionee a reasonable period to exercise his Options.

- 4 -

 

	 	(3)	 	Affiliates. For purposes of this
Option Certificate, any reference to the Company shall include any
Affiliate, Parent or Subsidiary of the Company, and a transfer of
employment or service relationship between the Company and any
Affiliate, Parent or Subsidiary of the Company or between any
Affiliate, Parent or Subsidiary of the Company shall not be treated as
a termination of employment or service relationship under this Option
Certificate.

	 	(4)	 	Termination of Employment or Service
Relationship. For purposes of this Option Certificate, if the
Optionee’s employment with the Company terminates while there are any
non-vested shares of Stock subject to this Option under § 2(a) but the
Optionee at such time then becomes an independent consultant to the
Company, the Optionee’s right under this Option Certificate to exercise
this Option shall continue to vest so long as the Optionee continues to
provide services to the Company in accordance with § 2(a). For
purposes of this Option Certificate, except as otherwise provided
below, if the Optionee’s employment with the Company terminates but the
Optionee at such time then becomes an independent consultant to the
Company, the termination of the Optionee’s employment shall not result
in the expiration of the Option under § 2(b)(1) or 2(b)(2).
Notwithstanding the foregoing, the Optionee’s right to exercise all or
any part of this Option which has vested under § 2(a) shall expire no
later than the tenth anniversary of the Grant Date.

	 	(5)	 	Fractional Shares. Optionee’s right to
exercise this Option shall not include a right to exercise this Option
to purchase a fractional share of Stock. If Optionee exercises this
Option on any date when this Option includes a fractional share of
Stock, his exercise right shall be rounded down to the nearest whole
share of Stock and the fractional share shall be carried forward until
that fractional share together with any other fractional shares can be
combined to equal a whole share of Stock or this Option expires.

	 	(a)	 	Definitions.

- 5 -

 

	 	(1)	 	Cause. For purposes of this
Certificate, “Cause” shall exist if (A) Optionee has engaged in conduct
that in the judgment of the Committee constitutes gross negligence,
misconduct or gross neglect in the performance of Optionee’s duties and
responsibilities, including conduct resulting or intending to result
directly or indirectly in gain or personal enrichment for Optionee at
the Company’s expense, (B) Optionee has been convicted of or has pled
guilty to a felony for fraud, embezzlement or theft, (C) Optionee has
engaged in a breach of any policy of the Company for which termination
of employment or service is a permissible consequence or Optionee has
not immediately cured any performance or other issues raised by
Optionee’s supervisor, (D) Optionee had knowledge of (and did not
disclose to the Company in writing) any condition that could
potentially impair Optionee’s ability to perform the functions of his
job or service relationship fully, completely and successfully, or (E)
Optionee has engaged in any conduct that would constitute “cause” under
the terms of his employment or consulting agreement, if any.

	 	(2)	 	Disability. For purposes of this
Certificate, “Disability” means any medically determinable physical or
mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months and
which renders Optionee unable to engage in any substantial gainful
activity. The Committee shall determine whether Optionee has
a Disability. If Optionee disputes such determination, the issue shall
be submitted to a competent licensed physician appointed by the Board,
and the physician’s determination as to whether Optionee has a
Disability shall be binding on the Company and on Optionee.

     § 3. Method of Exercise of Option. Optionee may exercise this Option in whole or in
part (to the extent this Option is otherwise exercisable under § 2 with respect to vested shares of
Stock) only in accordance with the rules and procedures established from time to time by the
Committee for the exercise of an Option. The Option Price shall be paid at exercise either in
cash, by check acceptable to the Company or through any cashless exercise procedure which is
implemented by a broker unrelated to the Company through a sale of Stock in the open market and
which is acceptable to the Committee, or in any combination of these forms of payment.

- 6 -

 

     § 4. Delivery and Other Laws. The Company shall deliver appropriate and proper
evidence of ownership of any Stock purchased pursuant to the exercise of this Option as soon as
practicable after such exercise to the extent such delivery is then permissible under applicable
law or rule or regulation, and such delivery shall discharge the Company of all of its duties and
responsibilities with respect to this Option.

     § 5. Non-transferable. No rights granted under this Option shall be transferable by
Optionee other than (a) by will or by the laws of descent and distribution or (b) to a Family
Member provided such transfer is made as a gift without consideration and such transfer complies
with applicable securities laws. The person or persons, if any, to whom this Option is transferred
shall be treated after Optionee’s death the same as Optionee under this Option Certificate.

     § 6. No Right to Continue Service. Neither this Option, nor any related material
shall give Optionee the right to continue in employment by or perform services to the Company or
shall adversely affect the right of the Company to terminate Optionee’s employment or service
relationship with the Company with or without Cause at any time.

     § 7. Stockholder Status. Optionee shall have no rights as a stockholder with respect
to any shares of Stock under this Option until such shares have been duly issued and delivered to
Optionee, and no adjustment shall be made for dividends of any kind or description whatsoever or
for distributions of rights of any kind or description whatsoever respecting such Stock except as
expressly set forth in this Option.

     § 8. Governing Law. This Option Certificate shall be governed by the laws of the
State of Delaware.

     § 9. Binding Effect. This Option Certificate shall be binding upon the Company and
Optionee and their respective heirs, executors, administrators and successors.

     § 10. Tax Withholding. This Option has been granted subject to the condition that
Optionee consents to whatever action the Committee directs to satisfy the minimum statutory federal
and state withholding requirements, if any, which the Company determines are applicable upon the
exercise of this Option.

     § 11. References. Any references to sections (§) in this Option Certificate shall be
to sections (§) of this Option Certificate unless otherwise expressly stated as part of such
reference.

     § 12. Availability of Annual Report to Stockholders and Other SEC Filings. A copy of
the Company’s most recent annual report to stockholders and other

- 7 -

 

filings made with the Securities and Exchange Commission are available on the Company’s
internet website, www.ev3.net, under the Investors Relations—SEC Filings section. If you like to
receive a paper copy of the Company’s most recent annual report to stockholders and other filings
made by the Company with the Securities and Exchange Commission, please contact Kevin M. Klemz at
the address, telephone number or e-mail address above.

     § 13. Adjustment in Capital Structure. The number, kind or class (or any combination
thereof) of shares of Stock subject to this Option and the Option Price of this Option shall be
adjusted by the Company in a reasonable and equitable manner to preserve immediately after

     (a) any equity restructuring or change in the
capitalization of the Company, including, but not limited to, spin offs, stock dividends, large
non-reoccurring dividends, rights offerings or stock splits, or

     (b) any other transaction described in § 424(a) of
the Code which does not constitute a Change in Control of the Company

the aggregate intrinsic value of this Option immediately before such restructuring or
recapitalization or other transaction. If any adjustment under this §13 would create a right to
acquire a fractional share of Stock under this Option, such fractional share shall be disregarded
and the number of shares of Stock subject to any Options shall be the next lower number of shares
of Stock, rounding all fractions downward.

- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]