Document:

Premium Finance Agreement, Disclosure Statement and Security Agreement

 Exhibit 10.10 
  

			
	 PREMIUM FINANCE AGREEMENT
 DISCLOSURE
STATEMENT
 AND SECURITY AGREEMENT
 (CA License #
9739145 (AICCO, Inc.))
 (CA License # 9739865 (Imperial Premium Finance, Inc.))
  
 Talbot Premium Financing
	 	 AICCO, Inc.
  
 101 Hudson Street, Jersey City, NJ 07302 (201) 631-5400 or (877) 902-4242
 1630 East Shaw Ave., Suite 160, Fresno, CA 93710 (559) 256-3300 or (877) 902-4242
 777 South Figueroa St., 14th Fl., Los Angeles, CA 90017 (213) 689-3600 or
(877) 902-4242
 Two Rincon Center, 121 Spear St., 3rd Fl., San Francisco, CA 94105 (877) 902-4242
 One MacArthur Place, Suite 610, South Coast Metro, CA 92707 (714) 436-3500 or
(877) 902-4242
 520 Pike Street, Suite 2700, Seattle, WA 98101 (206) 344-3237 or (877) 902-4242

  

																		
	A	  	TOTAL PREMIUMS	  	$	4,385,500.00  	  	 BORROWER / INSURED (The “Insured”)

(Name, Address and Telephone Number)
	  	Acct. No.
	B	  	CASH DOWN PAYMENT REQUIRED	  	$	386,876.76  	  	 In Patient Consultants Management Inc
 IPC
The Hospitalist Company
 4605 Lankershim Blvd Ste 617
  
	  		  	 
	C	  	AMOUNT FINANCED (The Amount of Credit Provided to Insured or on its behalf)	  	$	3,998,623.24  	  	 North Hollywood
 E-mail Address (optional):
	  	 CA            91602
 818-766-3502

	D	  	 FINANCE CHARGE
 (Dollar amount credit will cost)
	  	$	136,462.22  	  	 ANNUAL
PERCENTAGE RATE 6.65%
 (Cost of Credit figured as a yearly rate)

	E	  	 TOTAL PAYMENTS
 (Amounts which will have been paid after making all scheduled payments)
	  	$	4,135,085.46  	  	  
 PAYMENT SCHEDULE
  

	 	  	  	  	 Amount of
 Each Payment
  
	  	 Number of Payments
  
	  	 1st Payment
 Due
  
	  	Final Payment Due
  

	 	  	  	  	  	 Annual
  
	  	 Qtrly
  
	  	 Mthly
  
	  	  
	 	  		  			  	375,916.86	  	 	  	 	  	11	  	02/01/2008 	  	12/01/2008

 SEE PAGE 3 FOR SCHEDULE OF FINANCED POLICIES 
  

			
	 AGREEMENT OF INSURED (JOINT AND SEVERAL, IF MORE THAN ONE)
  
 THE UNDERSIGNED INSURED:
  
 1.      In consideration of the premium payments being financed and, if applicable, down payment
being advanced by LENDER to the Insurance companies listed on the SCHEDULE OF FINANCED POLICIES, or their representative, promises to pay to the order of LENDER the TOTAL OF PAYMENTS to be made in accordance with the PAYMENT SCHEDULE and if
applicable, the amount of any down payment advanced by LENDER subject to the provisions set forth in this Agreement.
  
 2.      Irrevocably appoints LENDER Attorney-in-Fact with full authority, in the event of default,
to (i) cancel the said policies in accordance with the provisions herein, (ii) receive all sums assigned to LENDER and (iii) execute and deliver on behalf of the undersigned all documents, forms and notices relating to the insurance
policies listed on the SCHEDULE OF FINANCED POLICIES in furtherance of this Agreement.
  
 IMPORTANT NOTICE TO INSURED
  
 NOTICE: 1. Do not sign this Agreement before you read it or if it contains any blank spaces. 2. You are entitled to a complete filled-in-copy of this Agreement. 3. Keep your copy of this Agreement to protect your legal rights. 4. You are
entitled to a Spanish translation of this Agreement before signing. (Usted tiene derecho a la versión en español de este contrato antes de firmar).
  
 NOTICE: See Pages 2 and 3 Additional Important Information.
  
 THE INSURED AGREES TO THE PROVISIONS
 ABOVE AND ON PAGES 2 AND 3
  
 12/27/2007                    /s/ R. Jeffrey Taylor
	 	 AGENT OR BROKER Lockton Insurance Agency of Houston-Healthcare
  
 BUSINESS ADDRESS
  
 Healthcare Division
 5847 San Felipe Street, Suite 320
 Houston                         TX 77057-3000
  
 TEL. NO./E-MAIL ADDRESS
                                        
               713-458-5200
  
 The Undersigned Agent or Broker:
  
 1.      Represents and warrants as follows: (a) to the best of the undersigned’s knowledge and belief, the insured’s signature is genuine or, to the extent permitted by
applicable Law, the undersigned Agent or Broker has been authorized by the insured to sign this Agreement on their behalf, (b) the insured has received a copy of this Agreement, (c) the scheduled Policies are in full force and effect and
the premiums indicated therefore are correct, (d) the insured may cancel all scheduled policies immediately upon request, (e) none of the Policies scheduled in the Agreement are non-cancelable, and (f) the down payment as indicated in Box
“B” and installments totaling $             have been collected and are being retained by us.
  
 2.      Upon cancellation of any of the scheduled Policies, the undersigned Agent or Broker agrees
upon demand to pay to LENDER or its assigns their commission on any unearned premiums applicable to the cancelled Policies.
  
 3.      For California business, the undersigned agent will receive from LENDER
$             for aiding in administration of premium finance agreement relating to the above premiums.
  
 THE AGENT OR BROKER AGREES TO THE
 PROVISIONS ABOVE AND ON PAGE 3
  
 DATE        SIGNATURE AND TITLE OF AGENT OR BROKER

 ADDITIONAL AGREEMENTS OF INSURED (JOINT AND SEVERAL, IF MORE THAN ONE) 
  

	 	3.	Cancellation. After the occurrence of a default in the payment of any money due the LENDER or a default consisting of a transfer to a third party of any of the scheduled
policies, LENDER may request cancellation of the insurance policies listed in the schedule upon expiration of 10 days written notice of intent to cancel (13 days in Utah, 15 days in Idaho), provided said default is not cured within such period, and
LENDER may proceed to collect the entire unpaid balance due hereunder or any part thereof by appropriate legal proceedings. If any default results in the cancellation of the Policy, insured agrees to pay a cancellation charge in accordance with
applicable law (not applicable in NV). 

	 	4.	Money Received After Cancellation. Any payment received after policy cancellation may be credited to the indebtedness due hereunder without any liability or obligation on the
part of LENDER to request reinstatement of such cancelled policy. Any sum received from an insurance company shall be credited to the balance due hereunder; any surplus shall be paid over to the insured; in case of deficiency, the insured shall pay
the same. 

	 	5.	Application of Payments. If applicable law permits, all payments received by LENDER will be applied to the oldest invoice first. Any remaining amounts will be applied to late
fees and other charges (if applicable), the remainder (if any) would be applied to any other outstanding amounts. 

	 	6.	Returned Check Charge. If any payment made by check is returned because the insured had no account or insufficient funds in the payor bank, insured will be charged the
maximum fee, if any, permitted under applicable law ($15 in NV). 

	 	7.	Default. If any of the following happens: (a) a payment is not made when it is due, (b) a proceeding in bankruptcy, receivership, insolvency or similar proceeding
is instituted by or against insured, or (c) insured fails to keep any promise the insured makes in this Agreement; Insured will be in default; provided, however, that, to the extent required by applicable law, Insured may be held to be in
default only upon the occurrence of an event described in clause (a) above. Clauses (b) and (c) not applicable in Nevada. 

	 	8.	Security. To secure payment of all amounts due under this Agreement, insured assigns LENDER a security interest in all right, title and interest to the Policy, including (but
only to the extent permitted by applicable law): (a) all money that is or may be due insured because of a loss under the Policy that reduces the unearned premiums (subject to the interest of any applicable mortgagee or loss payee), (b) any
return of the premium for the Policy, and (c) dividends which may become due insured in connection with the Policy. 

	 	9.	Right to Demand Immediate Payment in Full. At any time after default, LENDER can demand and have the right to receive immediate payment (except to the extent otherwise
provided by applicable law, in which case LENDER will have the right to receive such payment in accordance with such law) of the total unpaid balance due under this Agreement even if LENDER has not received any refund of unearned premium.

	 	10.	Warranties. Insured warrants to LENDER (a) to have received a copy of this Agreement and (b) if the insured is not an individual, that the signatory is authorized
to sign this Agreement on behalf of the insured. The insured represents that it is not presently the subject of or in contemplation of a proceeding in bankruptcy, receivership, or insolvency, or if it is a debtor in bankruptcy, the Bankruptcy Court
has authorized this transaction. 

	 	11.	Early Payment. At any time, insured may pay the whole amount still unpaid. If insured pays the full amount before it is due, Insured will be given a refund for the unearned
Finance Charge computed by the method of refund as required by applicable law. 

	 	12.	Assignments. Insured may not assign the Policy or this Agreement without LENDER’s written consent. However, insured does not need LENDER’s written consent to add
mortgagees or other persons as loss payees. LENDER may transfer its rights under this Agreement to anyone without insured’s consent. All of LENDER’s rights shall inure to the benefit of LENDER’s successors and assigns.

	 	13.	Collection. If money is due and Insured fails to pay, LENDER may collect the unpaid balance from insured without recourse to the security interest granted under this
Agreement. 

	 	14.	Late Charges. Upon default in payment of any installments for not less than five days (or such greater number of days required by applicable law), insured agrees to pay a
late charge in accordance with applicable law. In no event shall such late charge exceed a maximum of 5% of such installment ($5 in Montana; 2% maximum in Alaska and Oregon). 

	 	15.	Finance Charge. The finance charge begins to accrue from the effective date of this Agreement or the earliest inception date of the Insurance Policy(ies) listed on the
Schedule of Policies, whichever is earlier. The finance charge shall be computed on an annual basis of twelve (12) months of 30 days each. If LENDER terminates this Agreement due to a default insured will pay interest on the outstanding
indebtedness at the maximum rate authorized by applicable state law in effect on the date of cancellation and from said date until insured pays the outstanding indebtedness in full to LENDER. To the extent permitted by applicable law, the Finance
Charge may include a nonrefundable agreement charge not to exceed $20 ($10 in AK, AZ and WA; $12.50 in MT). 

	 	16.	Attorney’s Fees. If LENDER hires an attorney (which is not a salaried employee) to collect any money insured owes under this Agreement, insured will pay that attorney's
fees and other collection costs (including collectors’ fees) if and to the extent permitted by applicable law (20% of outstanding balance maximum in NV). 

	 	17.	Agent or Broker. The Agent or Broker named on the front of this Agreement is neither authorized by LENDER to receive installments payable under this Agreement nor is
authorized to make any representations to insured on LENDER’s behalf (except to the extent expressly required by applicable law). 

	 	18.	Amendments. If the insurance contract has not been issued at the time of the signing of this Agreement, and if the policies being financed are assigned risk policies or
policies listed in a state fund, the policy numbers, if omitted herein, may be inserted in this Agreement after it has been signed. 

	 	19.	Effective Date. This Agreement will not go into effect until it is accepted by LENDER in writing. In the State of California, insured shall have the right to disavow this
Agreement for ten (10) days after acceptance by LENDER if the Agreement contained any blank space when it was executed by insured (or on insured’s behalf) and such blank space was subsequently filled in. 

	 	20.	Limitation of Liability. Insured recognizes and agrees that LENDER is a lender and not an insurance company and that LENDER assumes no liability as an insurer hereunder.
LENDER’s liability for breach of any of the terms of this Agreement or the wrongful or improper exercise of any of its powers under this Agreement shall be limited to the amount of the principal balance outstanding, except in the event of
LENDER’s gross negligence or willful misconduct. 

	 	21.	Governing Laws. The law of the State of the insured’s residence shall govern this Agreement, except, for Colorado, Hawaii, Idaho and Wyoming insureds this contract is
governed by the laws of the State of New York. 

	 	22.	Signature and Acknowledgement. Insured has signed and received a copy of this Agreement. If the insured is not an individual, the undersigned is authorized to sign this
Agreement on behalf of the insured. All the insureds listed in any Policy have signed. Insured acknowledges and understands that insurance premium financing law does not require a insured to enter into a premium financing agreement as a condition of
the purchase of any insurance policy. 

	 	23.	California Insured. FOR INFORMATION CONTACT THE DEPARTMENT OF CORPORATIONS, STATE OF CALIFORNIA 

	 	24.	Additional Insured. There is nothing in any Policy that would require Lender to notify or get the consent of any third party to effect cancellation of such Policy.

																	
	 	  	Place (X)
 If Not
Authorized
(See #4
below)
  
	  	SCHEDULE OF POLICIES (Continue
Schedule on Attachment If Necessary)
	 Policy Number and

 Prefix
 (itemized)
	  	ò X
	  	 Full Name of Insurance Company and  Name and
Address of Policy Issuing Agent or Company Office To Which Premium is
 Paid and Notices are Sent
	  	 Type of
 Policy Premium 
	  	 	  	 	  	Term
in
Mos.
Cov.
By
Prem.	 	 Effective Date
 M/      D/      Y
	  	Policy Premiums
	 	  		  	C: Doctors Company Interins Exch	  	PL :0  	  	A  	  	0.00  	  	12  	 	01/01/2008	  	4,385,500.00 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  		  		  		  		  		  		 		  	 
	 	  	 	  	 	  	 	  	 	  	 	  	 	 	 	  	 
	*(AR=ASSIGNED RISK), (A=AUDITABLE), (LS=LOSS SENSITIVE)	 	 TOTAL PREMIUMS 
 (Record in “A”)
	  	4,385,500.00 
		  		  		  		  		  		  		 	 	  	 

 ADDITIONAL REPRESENTATIONS & WARRANTIES OF BROKER OR AGENT 
  

	4.	Warrants that this is the authorized Policy issuing agent of the insurance companies or the broker placing the coverage directly with the insurance company on all the Policies
scheduled except those indicated with an “X” above. 

	5.	Warrants that there are no policies included in this Agreement which are subject to audit, report of values, retrospective rating, or minimum earned premium, except as indicated
below, and that, if there are any, the deposit or provisional premium thereon is not less than the anticipated premium to be earned for the full term of the policy. 

 Policy No.(s):
        _                 Minimum earned premium, if any: $
                                        

	6.	Warrants that there are no assigned risk policies in the Schedule of Policies except as indicated in the Schedule of Policies. 

	7.	The Agent or Broker will hold in trust for LENDER any payments made or credited to the insured through the Agent or Broker directly, indirectly, actually or constructively, by any
of the insurance companies listed in the Schedule of Policies and will pay the monies to LENDER upon demand to satisfy the then outstanding balance hereunder. 

	8.	The Agent or Broker will promptly notify LENDER in writing if any information on this Agreement becomes inaccurate. 

	9.	Warrants that all material information concerning the insured and Policies necessary for Lender to cancel the Policies and receive the unearned premium has been disclosed to Lender.

	10.	There is nothing in any Policy that would require Lender to notify or get the consent of any third party to effect cancellation of such Policy.IPC The Hospitalist Compnay, Inc. Nonqualified Employee Stock Purchase Plan

 Exhibit 10.15 
 IPC THE HOSPITALIST COMPANY, INC. 
 NONQUALIFIED EMPLOYEE STOCK PURCHASE PLAN 
 Amended and Restated 
 Effective as
of March 19, 2008 
 SECTION 1 
 Purpose 
 The purpose of IPC The Hospitalist Company, Inc. Employee Stock Purchase Plan (the “Plan”)
is to provide the employees of IPC The Hospitalist Company, Inc. (the “Company”), and its Subsidiaries and Affiliates with an opportunity to purchase shares of Stock through payroll deduction. The Plan is not intended to qualify as an
“employee stock purchase plan” under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”). The Plan was originally approved by the Board of Directors on January 10, 2008, and has been amended and
restated effective on March 19, 2008 (the “Effective Date”). 
 SECTION 2 
 Definitions 
 The following words have the
following meanings unless a different meaning is plainly required by the context. 
 2.1 “Affiliate” means any entity that is an
affiliate of the Company, as determined by the Board, in its sole discretion. 
 2.2 “Board” means the Board of Directors of the
Company. 
 2.3 “Compensation” means an Employee’s salary, wages, commissions, overtime and bonuses from the Company and all
Subsidiaries and Affiliates, and shall exclude, without limitation, stock-based compensation, other equity and non-equity incentive compensation, perquisites, employee benefits, severance pay and any and all other forms of compensation. 

2.4 “Continuous Status as an Employee” means the absence of any interruption or termination of service as an Employee. Continuous Status as
an Employee shall not be considered interrupted in the case of a leave of absence agreed to in writing by the Company or a Subsidiary or Affiliate, provided that such leave is for a period of not more than 90 days or re-employment upon the
expiration of such leave is guaranteed by contract or statute. 
 2.5 “Contributions” means all amounts credited to the account of
a Participant pursuant to the Plan. 
 2.6 “Custodian” means the custodian for the Plan appointed by the Plan Administrator.

 2.7 “Employee” means any person, including an officer, who is an employee of the Company or a
Subsidiary or Affiliate and whose customary employment is at least twenty (20) hours per week and who will have completed at least 4 years of Continuous Status as an Employee prior to the start of the Offering Period. Upon reinstatement of
Employee following a termination or interruption in service, if agreed to in writing by the Company prior to such reinstatement, such prior service shall be considered in the calculation of Continuous Service. 
 2.8 “Exercise Date” means the last business day of each Offering Period of the Plan. 
 2.9 “Fair Market Value” means, as of any applicable date, the closing sales price for one share of Stock on such date as reported on the Nasdaq
National Market or, if the foregoing does not apply, on such other market system or stock exchange on which the Stock is then listed or admitted to trading, or on the last previous day on which a sale was reported if no sale of the Stock was
reported on such date. 
 2.10 “Offering Date” means the first business day of each Offering Period of the Plan. 
 2.11 “Offering Period” means a period of twelve (12) months commencing on the January 1 of each year, except as otherwise set forth
in the Plan or determined by the Plan Administrator, provided, however, that the first Offering Period shall be a period of six (6) months commencing July 1, 2008. 
 2.12 “Participant” means an Employee who has elected to participate in the Plan for an Offering Period by completing a subscription agreement
in accordance with Section 5.1. 
 2.13 “Plan Administrator” means the Committee appointed by the Board to administer the
Plan, as described in Section 12. 
 2.14 “Rule 16b-3” means Rule 16b-3, promulgated by the United States Securities Exchange
Commission under the Securities Exchange Act of 1934, as such rule may be amended from time to time, together with any successor rule. 
 2.15 “Section 16b” means Section 16(b) of the Securities Exchange Act of 1934, as amended. 
 2.16 “Section 16b
Person” means a Participant in the Plan who is subject to potential liability under Section 16(b) with respect to transactions involving equity securities of the Company. 
 2.17 “Stock” means the Common Stock, par value $0.001, of the Company. 
 2.18 “Subsidiary” means an entity that is a “subsidiary corporation” within the meaning of Sections 423(a)(2) and 424(f) of the Code.

  

 2 

 SECTION 3 
 Eligibility 
 3.1 General Rule. Any person who is an Employee on the Offering Date of a
given Offering Period and has met the service requirements shall be eligible to participate in such Offering Period under the Plan, subject to the requirements of Section 5.1. 
 SECTION 4 
 Offering Period 
 4.1 The Plan shall generally be administered with respect to consecutive Offering Periods with a new Offering Period commencing on or about each
January 1 or at such other time or times as may be determined by the Plan Administrator. The first Offering Period will be a six (6) month period selected by the Plan Administrator in its sole discretion commencing on or after July 1,
2008. 
 The Plan Administrator shall have the power to change the duration and/or frequency of an Offering Period with respect to future
offerings without stockholder approval, if such change is announced at least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected. 
 SECTION 5 
 Participation 
 5.1 An Employee shall become a Participant in the Plan by completing a subscription agreement provided by the Plan Administrator, which authorizes
payroll deductions in an annual minimum amount of $500 and an annual maximum amount of $10,000, in $500 increments Such amount shall be withheld in substantially equal installments as a payroll deduction and paid as such Employee’s Contribution
to the Plan. The subscription agreement must be submitted as required by the Company at least sixty (60) days, or such other period as determined by the Plan Administrator, prior to the applicable Offering Date. The Employee shall remain
enrolled for the entire Offering Period of the Plan at the designated payroll deduction amount, unless the Employee withdraws from the Plan as provided in Section 10 or suspends or reduces the rate of his or her payroll deduction as provided in
Section 6.2. 
 5.2 With respect to each Offering Period to which the subscription agreement is applicable, payroll deductions begin on
the first payroll date following the applicable Offering Date and end on the last payroll paid prior to the Exercise Date of the Offering Period, unless sooner terminated by the Participant as provided in Section 10. 
  

 3 

 SECTION 6 
 Method of Payment of Contributions 
 6.1 Payroll deductions shall be made on each of the
regular biweekly paydays during the Offering Period, on an after-tax basis, in an annual amount between $500 and $10,000, in whole number increments as elected by the Participant, as a deduction from his or her Compensation otherwise payable on each
such payday, plus an amount equal to payroll tax deposits that will be required with respect to the exercise for such Offering Period as determined by the Plan Administrator. All payroll deductions made by a Participant shall be credited as
Contributions to his or her account under the Plan or reported as payroll tax deposits or other required payments. Each Participant’s account under the Plan is unfunded and is maintained solely for recordkeeping purposes. A Participant may not
make any payments into the account other than Contributions made through payroll deductions, may not make Contributions in excess of his or her Compensation for such pay period and no deductions shall be made on special paydays for bonus or other
compensation purposes. 
 6.2 A Participant may discontinue his or her participation in the Plan, as provided in Section 10, or may
suspend or reduce the dollar amount of his or her payroll deduction during an Offering Period by completing and filing with the Plan Administrator or Custodian a new authorization for payroll deduction, provided that the Plan Administrator may, in
its sole discretion, impose reasonable restrictions on the ability of Participants to change the rate of payroll deductions and the timing and effective date of such changes. 
 6.3 Notwithstanding, the foregoing, to the extent necessary to comply with applicable law, a Participant’s payroll deductions may be automatically
decreased to zero percent (0%) at any time during the Offering Period. 
 6.4 No interest shall accrue on the Contributions (or payroll tax
deposits) of a Participant in the Plan. 
 6.5 All Contributions (and payroll tax deposits) received or held by the Plan Administrator under
the Plan may be used by the Company for any corporate purpose, and neither the Plan Administrator nor the Company shall be obligated to segregate such Contributions (or payroll tax deposits) . 
 SECTION 7 
 Grant of Option 
 7.1 Each Participant in the Plan in an Offering Period shall be granted, on the Offering Date during such Offering Period, an option to purchase shares
of Stock on the Exercise Date during such Offering Period with the Contributions accumulated prior to such Exercise Date. Notwithstanding the foregoing, to the extent that the Plan Administrator determines necessary for an exemption from
Section 16(b) to be available, each such grant to a Section 16 Person shall have been approved by the Compensation Committee of the Board, the Board or the stockholders, as applicable. 
  

 4 

 7.2 The number of full shares of Stock that may be purchased on an Exercise Date shall be determined by
dividing such Participant’s total Contributions accumulated prior to such Exercise Date and credited to the Participant’s account as of the Exercise Date by the Purchase Price on the Offering Date (as defined in Section 7.3 below).
The number of full shares of Stock that may be purchased shall not be increased during the Offering Period. Notwithstanding the foregoing, such purchase shall be subject to the limitations set forth in Section 11 hereof. 
 7.3 With respect to a specific Offering Period, the Purchase Price for each share of Stock purchased under the Plan shall be the lesser of
(i) eighty-five percent (85%) of the Fair Market Value of a share of Stock at the Offering Date (“the Offering Date Price”) and (ii) eighty-five percent (85%) of the Fair Market Value of a share of Stock at the Exercise
Date (the “Exercise Date Price”). If the Exercise Date Price is less than Offering Date Price, Contributions equal to the number of full shares of Stock (determined in accordance with Section 7.2 above) multiplied by the excess of
Offering Date Price over the Exercise Date Price shall be refunded to the Participant, together with any applicable payroll tax deposits or other withholdings on such excess. Any such refund shall be made to the Participant no later than thirty
(30) days after the applicable Exercise Date. 
 SECTION 8 
 Exercise of Option 
 8.1 Unless the Participant withdraws from the Plan
as provided in Section 10, the Participant’s option for the purchase of Stock shall be exercised automatically on the Exercise Date of the Offering Period at the Purchase Price with the accumulated Contributions credited to his or her
account, less any amounts refunded as described in Section 7.3 above. 
 8.2 The shares of Stock purchased upon exercise of an option
hereunder shall be deemed to be transferred to the Participant on the Exercise Date. 
 8.3 The maximum number of shares of Stock shall be
determined based on the Purchase Price and the accumulated Contributions credited to the Participant’s account in accordance with Section 7. No fractional shares are permitted to be purchased under the Plan. Any Contributions for an
Offering Period credited to a Participant’s account which are not sufficient to purchase a full share of Stock on the Exercise Date of such Offering Period shall be refunded to the Participant no later than thirty (30) days after the
applicable Exercise Date. 
 8.4 During a Participant’s lifetime, the option to purchase shares of Stock hereunder shall be exercisable
only by the Participant. 
  

 5 

 SECTION 9 
 Custodian; Delivery of Stock 
 9.1 All shares of Stock purchased on behalf of a Participant as
of an Exercise Date of the Offering Period shall be credited to the Participant’s account maintained by the Custodian. Dividends payable with respect to shares of Stock credited to a Participant’s account shall be paid directly to the
Participant at his or her most recent address of record. 
 9.2 The Plan Administrator will direct the Custodian to distribute to the
Participant any whole shares of Stock that have been credited to the Participant’s account and cash equal to the Fair Market Value of any fractional share then credited to such Participant’s account, as soon as practicable following the
earlier of (i) the Plan Administrator’s receipt of the Participant’s written request for such distribution or (ii) the date the Participant ceases to participate in the Plan in accordance with Section 10.2 of the Plan.
Notwithstanding the foregoing, in the event the Participant ceases to participate in the Plan due to the death of the Participant, shares of Stock credited to such Participant’s account, and cash equal to the Fair Market Value of any fractional
share then credited, shall be distributed to the person or persons entitled thereto under Section 13 as soon as practicable following the Plan Administrator’s receipt of proof of the Participant’s death. 
 SECTION 10 
 Voluntary
Withdrawal; Termination of Employment 
 10.1 A Participant may withdraw all, but not less than all, of the Contributions credited to
his or her account and not yet used to exercise his or her option under the Plan at any time prior to an Exercise Date by giving written notice to the Plan Administrator or Custodian of withdrawal from the Plan. If the Participant withdraws from the
Plan, all of the Participant’s Contributions credited to his or her account and any related payroll tax deposits shall be paid to the Participant as promptly as practicable after receipt of the notice of withdrawal, and his or her option for
such Offering Period shall be automatically canceled and no further payroll deductions for the purchase of Stock shall be made for such Participant during such Offering Period and subsequent Offering Periods, except pursuant to a new subscription
agreement filed in accordance with Section 5. 
 10.2 Upon termination of the Participant’s Continuous Status as an Employee prior
to an Exercise Date of an Offering Period or during an Offering Period in which the Employee is a Participant for any reason, including, without limitation, retirement or death, he or she shall be deemed to have elected to withdraw from the Plan,
and all Contributions credited to his or her account shall be returned to him or her, in cash, as promptly as practicable after such termination or, in the case of death, to the person or persons entitled thereto under Section 13, and the
Participant’s option to purchase Stock shall be automatically canceled. 
 10.3 A Participant’s withdrawal from an Offering Period
shall not have any effect upon his or her eligibility to participate in a succeeding Offering Period or in any similar plan that may hereafter be adopted by the Company, in accordance with the applicable terms and conditions of such plan.

  

 6 

 SECTION 11 
 Stock 
 11.1 The total number of shares of Stock made available for sale under the Plan is
156,250 and is subject to adjustment, at the sole discretion of the Plan Administrator, in the event of changes in the capitalization of the Company as described in Section 15. 
 11.2 If the total number of shares of Stock subject to options granted pursuant to Section 7 exceeds the number of shares of Stock available under
the Plan, the Plan Administrator shall make a pro rata allocation of the shares of Stock remaining available for option grant in a practical and equitable manner. In such event, the Plan Administrator shall give written notice to each affected
Participant stating the reduction of the number of shares of Stock due to the adjustment and shall return to each affected Participant any excess Contributions and related payroll tax deposits credited to such Participant’s account as soon as
practicable after the affected Exercise Date of such Offering Period. 
 11.3 A Participant shall have no interest or voting rights in shares
of Stock covered by his or her option until such option has been exercised. 
 11.4 Shares of Stock to be delivered to a Participant under
the Plan shall be registered in the name of the Participant. 
 11.5 Shares of Stock purchased under the Plan may, at the sole discretion of
the Plan Administrator, be subject to restrictions on subsequent resale. 
 SECTION 12 
 Administration 
 12.1 Subject to
Section 12.2, the Plan shall be administered by the Compensation Committee of the Board unless otherwise determined by the Board (the “Committee”). The members of the Committee shall be appointed by the Board from time to time and may
be removed by the Board from time to time. To the extent the Board considers it desirable to comply with Rule 16b-3, the Committee shall consist of two or more directors of the Company, all of whom shall be member of the Board who satisfy the
requirements to qualify as “non-employee directors” under Rule 16b-3. 
 12.2 Except as set forth in this Section 12.2, the
Committee may delegate, to the fullest extent permitted under applicable law, to the Chief Operating Officer and/or the Chief Financial Officer of the Company any or all of the authority of the Committee with respect to the administration of the
Plan. Notwithstanding the foregoing, the Committee, unless otherwise 

  

 7 

 
determined by the Board, shall have full power to adopt, amend and rescind any rules as deemed appropriate and consistent for the administration of the Plan.

 12.3 The Plan Administrator shall construe and interpret the Plan in its sole and absolute discretion, and make all other determinations
necessary or advisable for the administration of the Plan. The Plan Administrator may delegate to any agents such duties and powers as it deems appropriate, by an instrument in writing that specifies which duties are so delegated and to whom each
such duty is so delegated. 
 12.4 The administration, interpretation or application of the Plan by the Plan Administrator and all
determinations by the Plan Administrator with respect to the Plan shall be final, conclusive and binding upon all Employees and Participants and all other persons interested or claiming an interest under the Plan. 
 SECTION 13 
 Designation of
Beneficiary 
 13.1 A Participant may file a written designation of a beneficiary who is to receive Stock and/or cash, if any, from
the Participant’s account under the Plan in the event of such Participant’s death at a time when cash or Stock are held for his or her account. Any such designation shall not be effective until filed with the Plan Administrator. Any such
designation of a beneficiary may be changed by the Participant at any time by written notice filed with the Plan Administrator. 
 13.2 In
the event of the death of a Participant and in the absence of a valid designation of a beneficiary who is living at the time of such Participant’s death, the Plan Administrator shall deliver such Stock and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or administrator has been appointed (to the knowledge of the Plan Administrator), the Plan Administrator, in its sole discretion, may deliver such Stock and/or cash to the spouse
or to any one or more dependents or relatives of the Participant. If no spouse, dependent or relative is known to the Plan Administrator, the Plan Administrator, in its sole discretion, may deliver such cash and/or Stock to such other person as the
Plan Administrator may reasonably designate. 
 SECTION 14 
 Transferability 
 14.1 Neither Contributions credited to a
Participant’s account (nor related payroll tax deposits) nor any rights with regard to an option to purchase shares of Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than as provided in
Section 13) by the Participant. 
 14.2 Any such attempt at assignment, transfer, pledge or other disposition shall be without effect,
except that the Plan Administrator may treat such act as an election to withdraw in accordance with Section 10. 
  

 8 

 SECTION 15 
 Adjustments Upon Changes in Capitalization; Corporate Transactions 
 15.1 In the event that a
dividend shall be declared upon the Stock payable in shares of Stock, the number of shares of Stock then subject to any option and the number of shares of Stock which may be purchased upon the exercise of options granted under the Plan but not yet
covered by an option shall be adjusted, at the sole discretion of the Plan Administrator, by adding to each share the number of shares which would be distributed thereon if such shares had been outstanding on the date fixed for determining the
stockholders entitled to receive such Stock dividend. In the event that the outstanding shares of Stock shall be changed into or exchanged for a different number or kind of share of stock or other securities of the Company or of another corporation,
whether through reorganization, recapitalization, stock split-up, combination of shares, sale of assets, merger or consolidation in which the Company is the surviving corporation, then, there shall be substituted for each share of Stock then subject
to any option and for each share of Stock which may be purchased upon the exercise of options granted under the Plan but not yet covered by an option, the number and kind of shares of stock or other securities into which each outstanding share of
Stock shall be so changed or for which each such share shall be exchanged, as determined by the Plan Administrator, in its sole discretion. 
 15.2 In the event that there shall be any change, other than as specified in the first paragraph of Section 15.1 hereof, in the number or kind of outstanding shares of Stock, or of any stock or other securities into which the Common
Stock shall have been changed, or for which it shall have been exchanged, then, if the Plan Administrator shall, in it sole discretion, determine that such change equitably requires an adjustment in the number or kind of shares then subject to any
option and the number or kind of shares available for issuance in accordance with the provisions of the Plan but not yet covered by an option, such adjustment shall be made by the Plan Administrator and shall be effective and binding for all
purposes of the Plan and of each option. 
 15.3 In the case of any substitution or adjustment in accordance with the provisions of this
Section 15, the option price in each option for all Stock covered thereby prior to such substitution or adjustment shall be the option price for all shares of stock or other securities which shall have been substituted for such Stock or to
which such Stock shall have been adjusted in accordance with the provisions of this Section 15. 
 15.4 No adjustment or substitution
provided for in this Section 15 shall require the Company to issue a fractional share under any option. 
 15.5 In the event of
dissolution or liquidation of the Company, or a merger, reorganization or consolidation in which the Company is not the surviving corporation, the Board, in its sole discretion, may accelerate the exercise of each option and/or terminate the same.

  

 9 

 SECTION 16 
 Amendment or Termination 
 16.1 The Board may at any time and for any reason terminate or
amend the Plan in whole or in part. Except as provided in Section 15, no such termination may affect options to purchase shares previously granted. Except as provided in Section 15, no amendment may make any change in any option
theretofore granted which adversely affects the rights of any Participant. In addition, to the extent necessary, but only to such extent, to comply with applicable law or the rules of any exchange on which the Stock is listed, the Company shall
obtain stockholder approval of an amendment in such a manner and to such a degree as so required. 
 SECTION 17 
 Notices 
 17.1 All notices or
other communications by a Participant to the Plan Administrator under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Plan Administrator at the location, or by the person, designated
by the Plan Administrator for the receipt thereof. 
 SECTION 18 
 Conditions Upon Issuance of Shares 
 18.1 Shares of Stock shall not be
issued with respect to an option to purchase, unless the exercise of such option and the issuance and delivery of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation,
the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the shares may then be listed. 
 18.2 As a condition to the exercise of an option, the Plan Administrator may require the Participant exercising such option to represent and warrant at
the time of such exercise that the shares of Stock are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law. 
 SECTION 19 
 Term of Plan 
 19.1 The Plan shall continue in effect for a term of ten
(10) years from the Effective Date unless sooner terminated under Section 16. 
  

 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00139-of-00352.parquet"}]]