Document:

Amendment To Waiver Letter & Secured Convertible Minimum Borrowing Note Series B

 Exhibit 10.1 
  
 March 18, 2005 
  
 Via Telecopier (402) 452-5401 
 Transgenomic, Inc. 
 12325 Emmet Street 
 Omaha, Nebraska 68164 
 Attention: Chief Financial Officer 
  
 Re:    Amendment to Waiver Letter and Secured Convertible 
 Minimum
Borrowing Note Series B 
  
 Dear Mr. Summers:

  
 Reference is hereby made to that certain Waiver Letter dated
February 20, 2004 made by Laurus Master Fund, Ltd. (“Laurus”) to Transgenomic, Inc. (the “Company”) (as amended, modified or supplemented from time to time, the “Waiver Letter”). Capitalized terms used but not defined
herein shall have the meanings ascribed them in the Waiver Letter. 
  
 Laurus and the Company hereby agree that the first sentence of the second paragraph of the Waiver Letter shall be deleted in its entirety and the following new sentence shall be inserted in lieu thereof: 
  
 “In connection with making the Advance and/or the Additional Advance,
from the date hereof through and including March 31, 2006 (the “Period”), Laurus hereby waives compliance with Sections 3 and 5(b)(iii) of the Security Agreement, but solely as such provisions relate to the immediate repayment requirement
for Overadvances and the fees accruing with respect thereto, provided, however, that all Overadvances will be repaid in full by March 31, 2006.” 
  
 In addition, Laurus and the Company hereby agree that notwithstanding the Fixed Conversion Price of $1.00 per share that is currently in effect under that
certain Secured Convertible Minimum Borrowing Note Series B, dated December 3, 2003 (the “Note”), and notwithstanding any limitation on conversion set forth in Section 3.2 of the Note, Laurus will, at its sole option and not later than
March 18, 2005 (the “Conversion Date”), convert $1,879,200 of the outstanding Principal Amount of the Note (the “Conversion Amount”) into 3,600,000 Conversion Shares as described in Article III of the Note. The Conversion Shares
issued pursuant hereto have been registered for resale pursuant to a registration statement on Form S-3 (SEC No. 333-118970) which has been declared effective by the Securities and Exchange Commission and remains in effect. 

 This Amendment to the Waiver Letter and the Secured Convertible Minimum Borrowing Note Series B shall be
governed by, and construed in accordance with, the laws of the State of New York. 
  

			
	LAURUS MASTER FUND, LTD.
		
	By:	 	 
	 	 	 David Grin
 Director

  

			
	Agreed and accepted on the date hereof
	TRANSGENOMIC, INC.
		
	By:	 	 
	 	 	 Name:
 Title:Amendment to Secured Convertible Term Note

 Exhibit 10.2 
  
 March 24, 2005 
  
 Via Telecopier (402) 452-5401 
  
 Transgenomic, Inc. 
 12325 Emmet Street 
 Omaha, Nebraska 68164 
 Attention: Chief Financial Officer 
  

Re: Secured Convertible Termrrowing Note 
  
 Dear Mr. Summers: 
  
 Reference is hereby made to that certain Secured Convertible Term Note dated February 19, 2004 as amended dated April 15, 2004 made by Laurus Master Fund,
Ltd. (“Laurus”) to Transgenomic, Inc. (the “Company”) (as amended, modified or supplemented from time to time, the “Note”). Capitalized terms used but not defined herein shall have the meanings ascribed them in the
Note. 
  
 Laurus and the Company hereby agree that notwithstanding
the Fixed Conversion Price of $1.00 per share that is currently in effect under that certain Note, and notwithstanding any limitation on conversion set forth in Section 3.2 of the Note, Laurus will, at its sole option and not later than March 25,
2005 (the “Conversion Date”), convert $ 650,000 of the outstanding Principal Amount of the Note (the “Conversion Amount”) into 1,250,000 Conversion Shares as described in Article III of the Note. The Conversion Shares issued
pursuant hereto have been registered for resale pursuant to a registration statement on Form S-3 (SEC No. 333-118970) which has been declared effective by the Securities and Exchange Commission and remains in effect. The Conversion Amount shall be
applied to the principal payments due on the Note through November 2005 ($75,000 per month or $600,000), and the remaining amount of $50,000 shall be applied to reduce the principal payment due under the Note on December 1, 2005. 
  
 This Amendment to the Note shall be governed by, and construed in accordance
with, the laws of the State of New York. 
  

			
	LAURUS MASTER FUND, LTD.
		
	By:	 	 
	 	 	 David Grin
 Director

  

			
	Agreed and accepted on the date hereof
	TRANSGENOMIC, INC.
		
	By:	 	 
	 	 	 Name:
 Title:2003 Stock Incentive Plan, as Amended and Restated as of April 11, 2005

 Exhibit 10.1 
  
 CERADYNE, INC. 
 2003 STOCK INCENTIVE PLAN 
 AS 
 AMENDED AND RESTATED 
 As of April 11, 2005 
  
 The 2003 STOCK INCENTIVE PLAN (the “Plan”) of Ceradyne, Inc., a
Delaware corporation (the “Company”), originally adopted by its Board of Directors (the “Board”) as of April 16, 2003 (the “Effective Date”), is hereby amended and restated as of April 11, 2005. 
  
 ARTICLE 1. 
  
 PURPOSES OF THE PLAN 
  
 1.1 Purposes. The purposes of the Plan are (a) to enhance the
Company’s ability to attract and retain the services of qualified employees, officers, directors, consultants and other service providers upon whose judgment, initiative and efforts the successful conduct and development of the Company’s
business largely depends, and (b) to provide additional incentives to such persons or entities to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to participate in the ownership
of the Company and thereby have an interest in the success and increased value of the Company. 
  
 ARTICLE 2. 
  
 DEFINITIONS 
  
 For purposes of this Plan, the
following terms shall have the meanings indicated: 
  
 2.1
Administrator. “Administrator” means the Board or, if the Board delegates responsibility for any matter to the Committee, the term Administrator shall mean the Committee. 
  
 2.2 Affiliated Company. “Affiliated Company” means:

  
 (a) with respect to Incentive Options, any
“parent corporation” or “subsidiary corporation” of the Company, whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively; and 
  
 (b) with respect to Nonqualified Options and Restricted Stock Awards,
any entity described in paragraph (a) of this Section 2.2 above, plus any other corporation, limited liability company (“LLC”), partnership or joint venture, whether now existing or hereafter created or acquired, with respect to which the
Company beneficially owns more than fifty percent (50%) of: (1) the total combined voting power of all outstanding voting securities or (2) the capital or profits interests of an LLC, partnership or joint venture. 
  
 2.3 Board. “Board” means the Board of Directors of the
Company. 

 2.4 Change in Control. “Change in Control” shall mean: 
  
 (a) The acquisition, directly or indirectly, in one transaction or a
series of related transactions, by any person or group (within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended) of the beneficial ownership of securities of the Company possessing more than fifty percent (50%) of
the total combined voting power of all outstanding securities of the Company; 
  
 (b) A merger or consolidation in which the Company is not the surviving entity, except for a transaction in which the holders of the outstanding voting securities of the Company immediately prior to such merger
or consolidation hold as a result of holding Company securities prior to such transaction, in the aggregate, securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the surviving
entity (or the parent of the surviving entity) immediately after such merger or consolidation; 
  
 (c) A reverse merger in which the Company is the surviving entity but in which the holders of the outstanding voting securities of the Company immediately prior to such merger hold, in the aggregate, securities
possessing less than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the Company or of the acquiring entity immediately after such merger; 
  
 (d) The sale, transfer or other disposition (in one transaction or a series of related transactions) of all or
substantially all of the assets of the Company, except for a transaction in which the holders of the outstanding voting securities of the Company immediately prior to such transaction(s) receive as a distribution with respect to securities of the
Company, in the aggregate, securities possessing more than fifty percent (50%) of the total combined voting power of all outstanding voting securities of the acquiring entity immediately after such transaction(s); or 
  
 (e) The approval by the stockholders of a plan or proposal for the
liquidation or dissolution of the Company. 
  
 2.5 Code.
“Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 2.6 Committee. “Committee” means a committee of two or more members of the Board appointed to administer the Plan, as set forth in
Section 8.1 hereof. 
  
 2.7 Common Stock.
“Common Stock” means the Common Stock of the Company, subject to adjustment pursuant to Section 4.2 hereof. 
  
 2.8 Company. “Company” means Ceradyne, Inc., a Delaware corporation, or any entity that is a successor to the Company. 
  
 2.9 Covered Employee. “Covered Employee” means the Chief
Executive Officer of the Company (or the individual acting in a similar capacity) and the four (4) other individuals that are the highest compensated executive officers of the Company for the relevant taxable year for whom total compensation is
required to be reported to shareholders under the Exchange Act. 
  

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 2.10 Disability. “Disability” means permanent and total disability as defined in Section
22(e)(3) of the Code. The Administrator’s determination of a Disability or the absence thereof shall be conclusive and binding on all interested parties. 
  
 2.11 Dividend Equivalent. “Dividend Equivalent” means a right to receive payments equivalent to the amount
of dividends paid by the Company to holders of shares of Common Stock with respect to the number of Dividend Equivalents held by the Participant. The Dividend Equivalent may provide for payment in Common Stock or in cash, or a fixed combination of
Common Stock or cash, or the Committee may reserve the right to determine the manner of payment at the time the Dividend Equivalent is payable. Dividend Equivalents may be granted only in connection with a grant of Restricted Stock Units and shall
be subject to the vesting conditions that govern Restricted Stock Units as set forth in the applicable Restricted Stock Award Agreement. 
  
 2.12 Effective Date. “Effective Date” means the date on which the Plan was originally adopted by the Board, as set forth on the first
page hereof. 
  
 2.13 Exchange Act. “Exchange
Act” means the Securities and Exchange Act of 1934, as amended. 
  
 2.14 Exercise Price. “Exercise Price” means the purchase price per share of Common Stock payable upon exercise of an Option. 
  
 2.15 Fair Market Value. “Fair Market Value” on any given date means the value of one share of Common Stock, determined as follows:

  
 (a) If the Common Stock is then listed or admitted to
trading on a Nasdaq market system or a stock exchange which reports closing sale prices, the Fair Market Value shall be the closing sale price on the date of valuation on such Nasdaq market system or principal stock exchange on which the Common
Stock is then listed or admitted to trading, or, if no closing sale price is quoted on such day, then the Fair Market Value shall be the closing sale price of the Common Stock on such Nasdaq market system or such exchange on the next preceding day
on which a closing sale price is reported. 
  
 (b) If the
Common Stock is not then listed or admitted to trading on a Nasdaq market system or a stock exchange which reports closing sale prices, the Fair Market Value shall be the average of the closing bid and asked prices of the Common Stock in the
over-the-counter market on the date of valuation. 
  
 (c)
If neither (a) nor (b) is applicable as of the date of valuation, then the Fair Market Value shall be determined by the Administrator in good faith using any reasonable method of evaluation, which determination shall be conclusive and binding on
all interested parties. 
  
 2.16 Incentive Option.
“Incentive Option” means any Option designated and qualified as an “incentive stock option” as defined in Section 422 of the Code. 
  
 2.17 Incentive Option Agreement. “Incentive Option Agreement” means an Option Agreement with respect to an
Incentive Option. 
  

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 2.18 NASD Dealer. “NASD Dealer” means a broker-dealer that is a member of the National
Association of Securities Dealers, Inc. 
  
 2.19
Nonqualified Option. “Nonqualified Option” means any Option that is not an Incentive Option. To the extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including,
without limitation, for failure to meet the limitations applicable to a 10% Stockholder or because it exceeds the annual limit provided for in Section 5.5 below, it shall to that extent constitute a Nonqualified Option. 
  
 2.20 Nonqualified Option Agreement. “Nonqualified Option
Agreement” means an Option Agreement with respect to a Nonqualified Option. 
  
 2.21 Option. “Option” means any option to purchase Common Stock granted pursuant to the Plan. 
  
 2.22 Option Agreement. “Option Agreement” means the written agreement entered into between the Company and the Optionee with respect to
an Option granted under the Plan. 
  
 2.23 Optionee.
“Optionee” means any Participant who holds an Option. 
  
 2.24 Participant. “Participant” means an individual or entity that holds an Option, shares of Restricted Stock, or Restricted Stock Units or Dividend Equivalents under the Plan. 
  
 2.25 Performance Criteria. “Performance Criteria” means one
or more of the following as established by the Committee, which may be stated as a target percentage or dollar amount, a percentage increase over a base period percentage or dollar amount or the occurrence of a specific event or events: 

 
 (a) Sales; 
  
 (b) Operating income; 
  
 (c) Pre-tax income; 
  
 (d) Earnings before interest, taxes, depreciation and amortization
(“EBITDA”); 
  
 (e) Earnings per common share on
a fully diluted basis (“EPS”); 
  
 (f)
Consolidated net income of the Company divided by the average consolidated common stockholders equity (“ROE”); 
  

	 	 (g) 	Cash and cash equivalents derived from either (i) net cash flow from operations, or (ii) net cash flow from operations, financings and investing activities (“Cash Flow”);

  
 (h) Adjusted operating cash flow return
on income; 
  
 (i) Cost containment or reduction;

  

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 (j) The percentage increase in the market price of the Company’s common stock over a stated
period; and 
  
 (k) Individual business objectives.

  
 2.26 Purchase Price. “Purchase Price” means
the purchase price payable to purchase a share of Restricted Stock, or a Restricted Stock Unit, which, in the sole discretion of the Administrator, may be zero (0), subject to limitations under applicable law. 
  
 2.27 Repurchase Right. “Repurchase Right” means the right of
the Company to repurchase either unvested shares of Restricted Stock pursuant to Section 6.6 or to cancel unvested Restricted Stock Units pursuant to Section 7.6.  
  
 2.28 Restricted Stock. “Restricted Stock” means shares of Common Stock issued pursuant to Article 6 hereof,
subject to any restrictions and conditions as are established pursuant to such Article 6. 
  
 2.29 Restricted Stock Award. “Restricted Stock Award” means either the issuance of Restricted Stock or the grant of Restricted Stock Units or Dividend Equivalents under the Plan.  

 
 2.30 Restricted Stock Award Agreement. “Restricted Stock Award
Agreement” means the written agreement entered into between the Company and a Participant evidencing the issuance of Restricted Stock or the grant of Restricted Stock Units or Dividend Equivalents under the Plan. 
  
 2.31 Restricted Stock Unit. “Restricted Stock Unit” means
the right to receive one share of Common Stock issued pursuant to Article 7 hereof, subject to any restrictions and conditions as are established pursuant to such Article 7. 
  
 2.32 Service Provider. “Service Provider” means a consultant or other person or entity the Administrator
authorizes to become a Participant in the Plan and who provides services to (i) the Company, (ii) an Affiliated Company, or (iii) any other business venture designated by the Administrator in which the Company or an Affiliated Company has a
significant ownership interest. 
  
 2.33 10%
Stockholder. “10% Stockholder” means a person who, as of a relevant date, owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total combined
voting power of all classes of stock of the Company or of an Affiliated Company. 
  
 ARTICLE 3. 
  
 ELIGIBILITY 
  
 3.1 Incentive Options. Only
employees of the Company or of an Affiliated Company (including members of the Board if they are employees of the Company or of an Affiliated Company) are eligible to receive Incentive Options under the Plan. 
  
 3.2 Nonqualified Options and Restricted Stock Awards. Employees of the
Company or of an Affiliated Company, members of the Board (whether or not employed by the Company or an Affiliated Company), and Service Providers are eligible to receive Nonqualified Options or Restricted Stock Awards under the Plan. 
  

 5 

 3.3 Section 162(m) Limitation. In no event shall any Participant be granted Options in any one
calendar year pursuant to which the aggregate number of shares of Common Stock that may be acquired thereunder exceeds two hundred fifty thousand (250,000) shares, subject to adjustment as to the number and kind of shares pursuant to Section 4.2
hereof. In no event shall any Participant be granted Restricted Stock Awards in any one calendar year pursuant to which the aggregate number of shares of Common Stock governed by such Restricted Stock Awards exceeds one hundred thousand (100,000),
subject to adjustment as to the number and kind of shares pursuant to Section 4.2 hereof. 
  
 ARTICLE 4. 
  
 PLAN
SHARES 
  
 4.1 Shares Subject to the Plan. 

 
 (a) The number of shares of Common Stock that may be issued under
the Plan shall be one million one hundred twenty-five thousand (1,125,000)1 shares, subject to adjustment as to the
number and kind of shares pursuant to Section 4.2 hereof. For purposes of this limitation, in the event that (a) all or any portion of any Option granted under the Plan can no longer under any circumstances be exercised, or (b) any shares of Common
Stock are reacquired by the Company pursuant to an Option Agreement or Restricted Stock Award Agreement, the shares of Common Stock allocable to the unexercised portion of such Option or the shares so reacquired shall again be available for grant or
issuance under the Plan. 
  
 (b) The maximum number of
shares of Common Stock that may be issued under the Plan as Incentive Options shall be one million one hundred twenty-five thousand (1,125,000)1 shares, subject to adjustment as to the number and kind of shares pursuant to Section 4.2 hereof. 
  
 4.2 Changes in Capital Structure. In the event that the outstanding shares of Common Stock are hereafter increased or decreased or changed into or
exchanged for a different number or kind of shares or other securities of the Company by reason of a recapitalization, stock split, reverse stock split, reclassification, stock dividend, or other change in the capital structure of the Company, then
appropriate adjustments shall be made by the Administrator to the aggregate number and kind of shares subject to this Plan, the number and kind of shares and the price per share subject to outstanding Option Agreements and Restricted Stock Award
Agreements and the limit on the number of shares under Section 3.3, all in order to preserve, as nearly as practical, but not to increase, the benefits to Participants. 
  
 ARTICLE 5. 
  
 OPTIONS 
  
 5.1 Grant of Stock Options. The Administrator shall have the right to grant pursuant to this Plan, Options subject to such terms,
restrictions and conditions as the Administrator may 
  

	1	As adjusted for the 3-for-2 stock splits in the form of 50% stock dividends issued in April 2004 and January 2005. 

  

 6 

 determine at the time of grant. Such conditions may include, but are not limited to, continued employment or the
achievement of specified performance goals or objectives established by the Committee with respect to one or more Performance Criteria.  
  
 5.2 Option Agreements. Each Option granted pursuant to this Plan shall be evidenced by an Option Agreement which shall specify the number of shares
subject thereto, vesting provisions relating to such Option, the Exercise Price per share, and whether the Option is an Incentive Option or Nonqualified Option. As soon as is practical following the grant of an Option, an Option Agreement shall be
duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted. Each Option Agreement shall be in such form and contain such additional terms and conditions, not inconsistent with the provisions of this
Plan, as the Administrator shall, from time to time, deem desirable. 
  
 5.3 Exercise Price. The Exercise Price per share of Common Stock covered by each Option shall be determined by the Administrator, subject to the following: (a) the Exercise Price of an Incentive Option shall
not be less than 100% of Fair Market Value on the date the Incentive Option is granted, (b) the Exercise Price of a Nonqualified Option shall not be less than 100% of Fair Market Value on the date the Nonqualified Option is granted, and (c) if the
person to whom an Incentive Option is granted is a 10% Stockholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on the date the Incentive Option is granted. However, an Option may be granted with an
exercise price lower than that set forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424 of the Code. 
  
 5.4 Payment of Exercise Price. Payment of the Exercise Price shall be
made upon exercise of an Option and may be made, in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock owned by the Optionee (provided that shares acquired
pursuant to the exercise of options granted by the Company must have been held by the Optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes), which surrendered shares shall be
valued at Fair Market Value as of the date of such exercise; (d) the cancellation of indebtedness of the Company to the Optionee; (e) the waiver of compensation due or accrued to the Optionee for services rendered; (f) provided that a public market
for the Common Stock exists, a “same day sale” commitment from the Optionee and an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased to pay for the Exercise Price
and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company; (g) provided that a public market for the Common Stock exists, a “margin” commitment from the Optionee and
an NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby
the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company; or (h) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted
by applicable law. 
  
 5.5 Term and Termination of
Options. The term and provisions for termination of each Option shall be as fixed by the Administrator, but no Option may be exercisable more than ten (10) years after the date it is granted. An Incentive Option granted to a person who is a 10%
Stockholder on the date of grant shall not be exercisable more than five (5) years after the date it is granted. 
  

 7 

 5.6 Vesting and Exercise of Options. Each Option shall vest and become exercisable in one or more
installments at such time or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives established with respect to one or more Performance Criteria, as shall be determined by the
Administrator. 
  
 5.7 Annual Limit on Incentive
Options. To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock with respect to which Incentive Options
granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable for the first time by an Optionee during any calendar year shall not exceed $100,000. 
  
 5.8 Nontransferability of Options. Except as otherwise provided in
this Section 5.8, Options shall not be assignable or transferable except by will, the laws of descent and distribution or pursuant a domestic relations order entered by a court in settlement of marital property rights, and during the life of the
Optionee, Options shall be exercisable only by the Optionee. At the discretion of the Committee and in accordance with rules it establishes from time to time, Optionees may be permitted to transfer some or all of their Nonqualified Options to one or
more “family members,” which is not a “prohibited transfer for value,” provided that (i) the Optionee (or such Optionee’s estate or representative) shall remain obligated to satisfy all income or other tax withholding
obligations associated with the exercise of such Nonqualified Option; (ii) the Optionee shall notify the Company in writing that such transfer has occurred and disclose to the Company the name and address of the “family member” or
“family members” and their relationship to the Optionee, and (iii) such transfer shall be effected pursuant to transfer documents in a form approved by the Committee. For purposes of the foregoing, the terms “family members” and
“prohibited transfer for value” have the meaning ascribed to them in the General Instructions to form S-8 (or any successor form) promulgated under the Securities Act of 1933, as amended. 
  
 5.9 Rights as a Stockholder. An Optionee or permitted transferee of an
Option shall have no rights or privileges as a stockholder with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing shares purchased upon such exercise have been issued to such person.

  
 ARTICLE 6. 
  
 RESTRICTED STOCK 
  
 6.1 Issuance of Restricted Stock. The Administrator shall have the
right to issue pursuant to this Plan, at a Purchase Price determined by the Administrator, shares of Common Stock subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant. Such conditions may
include, but are not limited to, continued employment or the achievement of specified performance goals or objectives established by the Committee with respect to one or more Performance Criteria, which require the Committee to certify in writing
whether and the extent to which such performance goals were achieved before such restrictions are considered to have lapsed. 
  
 6.2 Restricted Stock Agreements. A Participant shall have no rights with respect to the shares of Restricted Stock covered by a Restricted Stock
Award Agreement until the Participant has paid the full Purchase Price, if any, to the Company in the manner set forth in Section 6.3(b) hereof 
  

 8 

 and has executed and delivered to the Company the applicable Restricted Stock Award Agreement. Each Restricted Stock
Award Agreement shall be in such form, and shall set forth the Purchase Price, if any, and such other terms, conditions and restrictions of the Restricted Stock Award Agreement, not inconsistent with the provisions of this Plan, as the Administrator
shall, from time to time, deem desirable. Each such Restricted Stock Award Agreement may be different from each other Restricted Stock Award Agreement. 
  

6.3 Purchase Price. 
  
 (a) Amount. Restricted Stock may be issued to Participants for no consideration or such minimum consideration as may be required by applicable
law. 
  
 (b) Payment. Payment of the Purchase Price,
if any, may be made, in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock owned by the Participant (provided that shares acquired pursuant to the exercise of
options granted by the Company shall have been held by the Participant for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes), which surrendered shares shall be valued at Fair Market
Value as of the date of such acceptance; (d) the Participant’s full recourse promissory note in a form and on terms acceptable to the Administrator; (e) the cancellation of indebtedness of the Company to the Participant; (f) the waiver of
compensation due or accrued to the Participant for services rendered; or (g) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable law. If payment for shares of
Restricted Stock is made by promissory note, any cash dividends paid with respect to the Restricted Stock may be applied, in the discretion of the Administrator, to repayment of such note. 
  
 6.4 Vesting of Restricted Stock. The Restricted Stock Award Agreement
shall specify the date or dates, the performance goals, if any, established by the Committee with respect to one or more Performance Criteria that must be achieved, and any other conditions on which the Restricted Stock may vest. 

 
 6.5 Rights as a Stockholder. Upon complying with the provisions of
Section 6.2 hereof, a Participant shall have the rights of a stockholder with respect to the Restricted Stock acquired pursuant to a Restricted Stock Award Agreement, including voting and dividend rights, subject to the terms, restrictions and
conditions as are set forth in such Restricted Stock Award Agreement. Unless the Administrator shall determine otherwise, certificates evidencing shares of Restricted Stock shall remain in the possession of the Company until such shares have vested
in accordance with the terms of the Restricted Stock Award Agreement. 
  
 6.6 Restrictions. Shares of Restricted Stock may not be sold, pledged or otherwise encumbered or disposed of and shall not be assignable or transferable except by will, the laws of descent and distribution or
pursuant a domestic relations order entered by a court in settlement of marital property rights, except as specifically provided in the Restricted Stock Award Agreement or as authorized by the Administrator. In the event of termination of a
Participant’s employment, service as a director of the Company or Service Provider status for any reason whatsoever (including death or disability), the Restricted Stock Award Agreement may provide, in the discretion of the Administrator, that
the Company may, at the discretion of the Administrator, exercise a Repurchase Right to repurchase at the original Purchase Price the shares of Restricted Stock that have not vested as of the date of termination. 
  

 9 

 ARTICLE 7. 
  
 RESTRICTED STOCK UNITS 
  
 7.1 Grants of Restricted Stock Units and Dividend Equivalents. The Administrator shall have the right to grant pursuant to this Plan,
Restricted Stock Units and Dividend Equivalents, subject to such terms, restrictions and conditions as the Administrator may determine at the time of grant. Such conditions may include, but are not limited to, continued employment or the achievement
of specified performance goals or objectives established by the Committee with respect to one or more Performance Criteria, which require the Committee to certify in writing whether and the extent to which such performance goals were achieved before
such restrictions are considered to have lapsed. 
  
 7.2
Restricted Stock Unit Agreements. A Participant shall have no rights with respect to the Restricted Stock Units or Dividend Equivalents covered by a Restricted Stock Award Agreement until the Participant has executed and delivered to the Company
the applicable Restricted Stock Award Agreement. Each Restricted Stock Award Agreement shall be in such form, and shall set forth the Purchase Price, if any, and such other terms, conditions and restrictions of the Restricted Stock Award Agreement,
not inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable. Each such Restricted Stock Award Agreement may be different from each other Restricted Stock Award Agreement. 
  
 7.3 Purchase Price. 
  
 (a) Amount. Restricted Stock Units may be issued to Participants for
no consideration or such minimum consideration as may be required by applicable law. 
  
 (b) Payment. Payment of the Purchase Price, if any, may be made, in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of Common Stock
owned by the Participant (provided that shares acquired pursuant to the exercise of options granted by the Company shall have been held by the Participant for the requisite period necessary to avoid a charge to the Company’s earnings for
financial reporting purposes), which surrendered shares shall be valued at Fair Market Value as of the date of such acceptance; (d) the Participant’s full recourse promissory note in a form and on terms acceptable to the Administrator; (e) the
cancellation of indebtedness of the Company to the Participant; (f) the waiver of compensation due or accrued to the Participant for services rendered; or (g) any combination of the foregoing methods of payment or any other consideration or method
of payment as shall be permitted by applicable law. 
  
 7.4
Vesting of Restricted Stock Units and Dividend Equivalents. The Restricted Stock Award Agreement shall specify the date or dates, the performance goals, if any, established by the Committee with respect to one or more Performance Criteria
that must be achieved, and any other conditions on which the Restricted Stock Units and Dividend Equivalents may vest.  
  
 7.5 Rights as a Stockholder. Holders of Restricted Stock Units shall not be entitled to vote or to receive dividends until they become owners of
the shares of Common Stock pursuant to their Restricted Stock Award Agreement and the terms and conditions of the Plan. 
  

 10 

 7.6 Restrictions. Restricted Stock Units and Dividend Equivalents may not be sold, pledged
or otherwise encumbered or disposed of and shall not be assignable or transferable except by will, the laws of descent and distribution or pursuant a domestic relations order entered by a court in settlement of marital property rights, except as
specifically provided in the Restricted Stock Award Agreement or as authorized by the Administrator. In the event of termination of a Participant’s employment, service as a director of the Company or Service Provider status for any reason
whatsoever (including death or disability), the Restricted Stock Award Agreement may provide that all Restricted Stock Units and Dividend Equivalents that have not vested as of such date shall be automatically forfeited by the Participant. However,
if, with respect to such unvested Restricted Stock Units. the Participant paid a Purchase Price, the Administrator, shall have the right, exercisable at the discretion of the Administrator, to exercise a Repurchase Right to cancel such unvested
Restricted Stock Units upon payment to the Participant of the original Purchase Price. The Participant shall forfeit such unvested Restricted Stock Units upon the Administrator’s exercise of such right. 
  
 ARTICLE 8. 
  
 ADMINISTRATION OF THE PLAN 
  
 8.1 Administrator. Authority to control and manage the operation and
administration of the Plan shall be vested in the Board, which may delegate such responsibilities in whole or in part to a committee consisting of two (2) or more members of the Board (the “Committee”). Members of the Committee may be
appointed from time to time by, and shall serve at the pleasure of, the Board. The Board may limit the composition of the Committee to those persons necessary to comply with the requirements of Section 162(m) of the Code and Section 16 of the
Exchange Act. As used herein, the term “Administrator” means the Board or, with respect to any matter as to which responsibility has been delegated to the Committee, the term Administrator shall mean the Committee. 
  
 8.2 Powers of the Administrator. In addition to any other powers or
authority conferred upon the Administrator elsewhere in the Plan or by law, the Administrator shall have full power and authority: (a) to determine the persons to whom, and the time or times at which, Incentive Options or Nonqualified Options or
Restricted Stock Awards shall be granted, the number of shares to be represented by each Option and the number of shares of Common Stock to be subject to Restricted Stock Awards, and the consideration to be received by the Company upon the exercise
of such Options or sale of the Restricted Stock or the Restricted Stock Units governed by such Restricted Stock Awards; (b) to interpret the Plan; (c) to create, amend or rescind rules and regulations relating to the Plan; (d) to determine the
terms, conditions and restrictions contained in, and the form of, Option Agreements and Restricted Stock Award Agreements; (e) to determine the identity or capacity of any persons who may be entitled to exercise a Participant’s rights under any
Option or Restricted Stock Award Agreement under the Plan; (f) to correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement or Restricted Stock Award Agreement; (g) to accelerate the vesting of
any Option or release or waive any repurchase rights of the Company with respect to Restricted Stock Awards; (h) to extend the expiration date of any Option; (i) to amend outstanding Option Agreements and Restricted Stock Award Agreements to provide
for, among other things, any change or modification which the Administrator could have included in the original Agreement or in furtherance of the powers provided for herein; and (j) to make all other determinations necessary or advisable for the
administration of the Plan, but only to 
  

 11 

 the extent not contrary to the express provisions of the Plan. Any action, decision, interpretation or determination made
in good faith by the Administrator in the exercise of its authority conferred upon it under the Plan shall be final and binding on the Company and all Participants. Notwithstanding any term or provision in this Plan, the Administrator shall not have
the power or authority, by amendment or otherwise to extend the expiration date of an Incentive Option beyond the tenth (10th) anniversary of the date the Incentive Option was granted; 
  
 8.3 Limitation on Liability. No employee of the Company or member of the Board or Committee shall be subject to any liability with respect to duties under the Plan unless the person acts fraudulently or in bad
faith. To the extent permitted by law, the Company shall indemnify each member of the Board or Committee, and any employee of the Company with duties under the Plan, who was or is a party, or is threatened to be made a party, to any threatened,
pending or completed proceeding, whether civil, criminal, administrative or investigative, by reason of such person’s conduct in the performance of duties under the Plan. 
  
 ARTICLE 9. 
  
 CHANGE IN CONTROL 
  
 9.1 Options. In order to preserve a Participant’s rights with respect to any outstanding Options in the event of a Change in Control of the
Company: 
  
 (a) Vesting of all outstanding Options shall
accelerate automatically effective as of immediately prior to the consummation of the Change in Control unless the Options are to be assumed by the acquiring or successor entity (or parent thereof) or new options or New Incentives are to be
issued in exchange therefor, as provided in subsection (b) below. 
  
 (b) Vesting of outstanding Options shall not accelerate if and to the extent that: (i) the Options (including the unvested portion thereof) are to be assumed by the acquiring or successor entity (or parent thereof) or new
options of comparable value are to be issued in exchange therefor pursuant to the terms of the Change in Control transaction, or (ii) the Options (including the unvested portion thereof) are to be replaced by the acquiring or successor entity (or
parent thereof) with other incentives of comparable value under a new incentive program (“New Incentives”) containing such terms and provisions as the Administrator in its discretion may consider equitable. If outstanding Options are
assumed, or if new options of comparable value are issued in exchange therefor, then each such Option or new option shall be appropriately adjusted, concurrently with the Change in Control, to apply to the number and class of securities or other
property that the Optionee would have received pursuant to the Change in Control transaction in exchange for the shares issuable upon exercise of the Option had the Option been exercised immediately prior to the Change in Control, and appropriate
adjustment also shall be made to the Exercise Price such that the aggregate Exercise Price of each such Option or new option shall remain the same as nearly as practicable. 
  
 (c) If any Option is assumed by an acquiring or successor entity (or parent thereof) or a new option of comparable
value or New Incentive is issued in exchange therefor pursuant to the terms of a Change in Control transaction, then if so provided in an Option Agreement, the vesting of the Option, the new option or the New Incentive shall accelerate if and at
such time as the Optionee’s service as an employee, director, officer, consultant or other service provider to the acquiring or successor entity (or a parent or subsidiary thereof) is terminated involuntarily or 
  

 12 

 voluntarily under certain circumstances within a specified period following consummation of the Change in Control,
pursuant to such terms and conditions as shall be set forth in the Option Agreement. 
  
 (d) If vesting of outstanding Options will accelerate pursuant to subsection (a) above, the Administrator in its discretion may provide, in connection with the Change in Control transaction, for the purchase or
exchange of each Option for an amount of cash or other property having a value equal to the difference (or “spread”) between: (x) the value of the cash or other property that the Optionee would have received pursuant to the Change in
Control transaction in exchange for the shares issuable upon exercise of the Option had the Option been exercised immediately prior to the Change in Control, and (y) the Exercise Price of the Option. 
  
 (e) The Administrator shall have the discretion to provide in each
Option Agreement other terms and conditions that relate to (i) vesting of such Option in the event of a Change in Control, and (ii) assumption of such Options or issuance of comparable securities or New Incentives in the event of a Change in
Control. The aforementioned terms and conditions may vary in each Option Agreement, and may be different from and have precedence over the provisions set forth in Sections 9.1(a) - 9.1(d) above. 
  
 (f) Outstanding Options shall terminate and cease to be exercisable
upon consummation of a Change in Control except to the extent that the Options are assumed by the successor entity (or parent thereof) pursuant to the terms of the Change in Control transaction. 
  
 (g) If outstanding Options will not be assumed by the acquiring or
successor entity (or parent thereof), the Administrator shall cause written notice of a proposed Change in Control transaction to be given to Optionees not less than fifteen (15) days prior to the anticipated effective date of the proposed
transaction. 
  
 9.2 Restricted Stock Awards. In order to
preserve a Participant’s rights with respect to any outstanding Restricted Stock Awards in the event of a Change in Control of the Company: 
  
 (a) All Repurchase Rights shall automatically terminate immediately prior to the consummation of such Change in Control and any shares of Common
Stock subject to such terminated Repurchase Rights, or Restricted Stock Units, whether or not subject to such terminated Repurchase Rights, and Dividend Equivalents shall immediately vest in full, except to the extent that in connection with
such Change in Control, the acquiring or successor entity (or parent thereof) provides for the continuance or assumption of Restricted Stock Award Agreements or the substitution of new agreements of comparable value covering shares of a successor
corporation, with appropriate adjustments as to the number and kind of shares and purchase price. 
  
 (b) The Administrator in its discretion may provide in any Restricted Stock Award Agreement that if, upon a Change in Control, the acquiring or
successor entity (or parent thereof) assumes such Restricted Stock Award Agreement or substitutes new agreements of comparable value covering shares of a successor corporation (with appropriate adjustments as to the number and kind of shares and
purchase price), then any Repurchase Right provided for in such Restricted Stock Award Agreement shall terminate, and the shares of Common Stock subject to the terminated Repurchase Right or any substituted shares shall immediately vest in full, if
the Participant’s service as an employee, director, officer, consultant or other service provider to the acquiring or successor entity (or a parent or subsidiary thereof) is terminated involuntarily or 
  

 13 

 voluntarily under certain circumstances within a specified period following consummation of a Change in Control, pursuant
to such terms and conditions as shall be set forth in the Restricted Stock Award Agreement. 
  
 ARTICLE 10. 
  
 AMENDMENT AND TERMINATION OF THE PLAN 
  
 10.1
Amendments. The Board may from time to time alter, amend, suspend or terminate the Plan in such respects as the Board may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall substantially affect or
impair the rights of any Participant under an outstanding Option Agreement or Restricted Stock Award Agreement without such Participant’s consent. The Board may alter or amend the Plan to comply with requirements under the Code relating to
Incentive Options or other types of options which give Optionees more favorable tax treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon any such alteration or amendment, any outstanding Option
granted hereunder may, if the Administrator so determines and if permitted by applicable law, be subject to the more favorable tax treatment afforded to an Optionee pursuant to such terms and conditions. 
  
 10.2 Plan Termination. Unless the Plan shall theretofore have been
terminated, the Plan shall terminate on the tenth (10th) anniversary of the Effective Date and no Options or Restricted Stock Awards may be granted under the Plan thereafter, but Option Agreements and Restricted Stock Award Agreements then
outstanding shall continue in effect in accordance with their respective terms.  
  
 ARTICLE 11. 
  
 TAX
WITHHOLDING 
  
 11.1 Withholding. The Company shall
have the power to withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options exercised or, with respect to the
issuance of Restricted Stock, the date that the shares are issued, if the Purchaser makes the election set forth in Code Section 83(b), or, if the Purchaser does not make such election, then with respect to the Restricted Stock Award, as of the date
that the applicable restrictions set forth in the Restricted Stock Award Agreement and the Plan lapse. To the extent permissible under applicable tax, securities and other laws, the Administrator may, in its sole discretion and upon such terms and
conditions as it may deem appropriate, permit a Participant to satisfy his or her obligation to pay any such tax, in whole or in part, up to an amount determined on the basis of the highest marginal tax rate applicable to such Participant, by (a)
directing the Company to apply shares of Common Stock to which the Participant is entitled as a result of the exercise of an Option or as a result of the purchase of or lapse of restrictions on Restricted Stock Awards or (b) delivering to the
Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied or delivered in satisfaction of the Participant’s tax withholding obligation shall be valued at their Fair Market Value as of the date of measurement
of the amount of income subject to withholding. 
  

 14 

 ARTICLE 12. 
  
 MISCELLANEOUS 
  
 12.1 Benefits Not Alienable. Other than as provided above, benefits under the Plan may not be assigned or alienated, whether voluntarily or
involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without effect. 
  
 12.2 No Enlargement of Employee Rights. This Plan is strictly a voluntary undertaking on the part of the Company and shall not be deemed to
constitute a contract between the Company and any Participant to be consideration for, or an inducement to, or a condition of, the employment of any Participant. Nothing contained in the Plan shall be deemed to give the right to any Participant to
be retained as an employee of the Company or any Affiliated Company or to interfere with the right of the Company or any Affiliated Company to discharge any Participant at any time. 
  
 12.3 Application of Funds. The proceeds received by the Company from
the sale of Common Stock pursuant to Option Agreements and Restricted Stock Award Agreements, except as otherwise provided herein, will be used for general corporate purposes. 
  
 12.4 Annual Reports. During the term of this Plan, the Company will furnish to each Participant who does not
otherwise receive such materials, copies of all reports, proxy statements and other communications that the Company distributes generally to its stockholders. 
  

 15

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