Document:

Exhibit 10.4

 

CHINA GREEN AGRICULTURE, INC.

 

THE SECOND AMENDED AND RESTATED EMPLOYEE
STOCK PURCHASE PLAN

 

Approved by the Board of Directors on September
29, 2014

 

1.      Purpose.

 

(a)   The purpose of
the Second Amended and Restated Employee Stock Purchase Plan (the "Plan") is to provide a means by which employees,
who are not U.S. Persons of China Green Agriculture, Inc., a Nevada corporation (the "Company"), and its Affiliates,
as defined in Section 1(b), which are designated as provided in Section 2(b), may be given an opportunity to purchase stock of
the Company.

 

(b)   The word "Affiliate"
as used in the Plan means any parent corporation or subsidiary corporation of the Company. The word "U.S. Persons"
as used in the Plan means any natural person resident in the United States.

 

(c)   The Company, by
means of the Plan, seeks to retain the services of its employees, to secure and retain the services of new employees, and to provide
incentives for such persons to exert maximum efforts for the success of the Company.

 

2.      Administration.

 

(a)   The Plan shall
be administered by the Board of Directors (the "Board") of the Company unless and until the Board delegates administration
to a Committee, as provided in Section 2(c). Whether or not the Board has delegated administration, the Board shall have the final
power to determine all questions of policy and expediency that may arise in the administration of the Plan.

 

(b)   The Board shall
have the power, subject to, and within the limitations of, the express provisions of the Plan:

 

		(i)	To determine when and how rights to purchase stock of the Company shall be granted and the provisions
of each offering of such rights (which need not be identical).

 

		(ii)	To designate from time to time which Affiliates of the Company shall be eligible to participate
in the Plan.

 

		(iii)	To construe and interpret the Plan and rights granted under it, and to establish, amend and revoke
rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency
in the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective.

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		(iv)	To amend, suspend or terminate the Plan as provided in Sections 12 and 14.

 

		(v)	Generally, to exercise such powers and to perform such acts as the Board deems necessary or expedient
to promote the best interests of the Company and its Affiliates.

 

(c)    The Board may
delegate administration of the Plan to a Committee (the "Committee") composed solely of two (2) or more Non-Employee
Directors (as defined in Rule 16b-3 under the Securities Exchange Act of 1934). If administration is delegated to a Committee,
the Committee shall have, in connection with the administration of the Plan, the powers theretofore possessed by the Board, subject,
however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the
Board. The Board may abolish the Committee at any time and revest in the Board the administration of the Plan. Any later references
to “the Board” in this document are deemed to include the Committee.

 

(d)    Any interpretation
of the Plan by the Board of any decision made by it under the Plan shall be final and binding on all persons.

 

3.      Shares Subject to the Plan.

 

(a)    Subject to the
provisions of Section 11 relating to adjustments upon changes in stock, the stock that may be sold pursuant to rights granted under
the Plan shall not exceed in the aggregate Two Million Five Hundred Thousand (2,500,000) of the Company’s common stock, par
value $0.001 per share (the "Common Stock") plus an annual increase to be added on July 1 of each year, commencing
in 2013 and ending on (and including) July 1, 2023, in an amount equal to one percent of the Company's outstanding shares of Common
Stock on each such date (rounded to the nearest whole share and calculated on a fully diluted basis, that is assuming the exercise
of all outstanding stock options and warrants to purchase common stock). If any right granted under the Plan shall for any reason
terminate without having been exercised, the Common Stock not purchased under such right shall again become available for the Plan.

 

(b)    The stock subject
to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise.

 

4.      Grant of Rights; Offering.

 

(a)    The Board or the
Committee may from time to time grant or provide for the grant of rights to purchase Common Stock of the Company under the Plan
to eligible employees (an "Offering") on a date or dates (the "Offering Date(s)") selected by
the Board or the Committee. Each Offering shall be in such form and shall contain such terms and conditions as the Board or the
Committee shall deem appropriate. The terms and conditions of an Offering shall be incorporated by reference into the Plan and
treated as part of the Plan. The provisions of separate Offerings need not be identical, but each Offering shall include (through
incorporation of the provisions of this Plan by reference in the document comprising the Offering or otherwise) the period during
which the Offering shall be effective, which period shall not exceed 5 years beginning with the Offering Date, and the substance
of the provisions contained in Sections 5 through 8, inclusive.

 

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(b)   If an employee
has more than one (1) right outstanding under the Plan, unless he or she otherwise indicates in agreements or notices delivered
hereunder, a right with a lower exercise price (or an earlier-granted right if two (2) rights have identical exercise prices),
shall be exercised to the fullest possible extent before a right with a higher exercise price (or a later-granted right if two
(2) rights have identical exercise prices) shall be exercised.

 

5.      Eligibility.

 

(a)   Rights may be
granted only to employees of the Company, who are not U.S. Persons or, as the Board or the Committee may designate as provided
in Section 2(b), to employees of any Affiliate of the Company, who are not U.S. Persons. Except as provided in Section 5(b), an
employee of the Company or any Affiliate shall not be eligible to be granted rights under the Plan unless, on the Offering Date,
such employee has been in the employ of the Company or any Affiliate for such continuous period preceding such grant as the Board
or the Committee may require.

 

(b)   The Board or the
Committee may provide that each person who, during the course of an Offering, first becomes an eligible employee of the Company
or designated Affiliate will, on a date or dates specified in the Offering which coincides with the day on which such person becomes
an eligible employee or occurs thereafter, receive a right under that Offering, which right shall thereafter be deemed to be a
part of that Offering. Such right shall have the same characteristics as any rights originally granted under that Offering, as
described herein, except that:

 

		(i)	the date on which such right is granted shall be the "Offering Date" of such right for
all purposes, including determination of the exercise price of such right;

 

		(ii)	the period of the Offering with respect to such right shall begin on its Offering Date and end
coincident with the end of such Offering; and

 

		(iii)	the Board or the Committee may provide that if such person first becomes an eligible employee within
a specified period of time before the end of the Offering, he or she will not receive any right under that Offering.

 

(c)   Officers, who
are not U.S. Persons of the Company and any designated Affiliate shall be eligible to participate in Offerings under the Plan.

 

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6.      Rights; Purchase Price.

 

(a)    On each Offering
Date, each eligible employee, pursuant to an Offering made under the Plan, shall be granted the right to purchase certain number
of shares of Common Stock of the Company equal to (a) the number of shares purchasable with a percentage designated by the Board
or the Committee not exceeding fifty percent (50%) of such employee's Earnings (as defined in Section 7(a)) during the period
which begins on the Offering Date (or such later date as the Board or the Committee determines for a particular Offering) and ends
on the date stated in the Offering, which date shall be no later than the end of the Offering; and (b) such additional number of
shares as such employee may notify the Company that he or she wishes to purchase. Each eligible employee may elect to contribute
cash to participate in such Offering in addition to or in lieu of payroll deduction. The Board or the Committee shall establish
one (1) or more dates during an Offering (the "Purchase Date(s)") on which rights granted under the Plan shall
be exercised and purchases of Common Stock carried out in accordance with such Offering.

 

(b)    In connection
with each Offering made under the Plan, the Board or the Committee may specify a maximum number of shares that may be purchased
by any employee as well as a maximum aggregate number of shares that may be purchased by all eligible employees pursuant to such
Offering. In addition, in connection with each Offering that contains more than one (1) Purchase Date, the Board or the Committee
may specify a maximum aggregate number of shares which may be purchased by all eligible employees on any given Purchase Date under
the Offering. If the aggregate purchase of shares upon exercise of rights granted under the Offering would exceed any such maximum
aggregate number, the Board or the Committee shall make a pro rata allocation of the shares available in as nearly a uniform manner
as shall be practicable and as it shall deem to be equitable.

 

(c) The purchase
price of the stock acquired pursuant to rights granted under the Plan shall not be less than the fair market value of the stock
on the Purchase Date.

 

7.      Participation; Withdrawal; Termination.

 

(a)    An eligible employee
may become a participant in the Plan pursuant to an Offering by delivering an enrollment agreement to the Company within the time
specified in the Offering, in such form as the Company provides. Each such agreement shall authorize payroll deductions of up to
the maximum percentage specified by the Board or the Committee of such employee's Earnings during the Offering. An eligible employee,
in addition to or in lieu of the payroll deduction, may elect to participate the Offering by contributing cash on the Purchase
Date. "Earnings" is defined as an employee's regular salary or wages (including amounts thereof elected to be
deferred by the employee, that would otherwise have been paid, under any arrangement established by the Company), and also, if
determined by the Board or the Committee and set forth in the terms of the Offering, may include any or all of the following: (i)
overtime pay, (ii) commissions, (iii) bonuses, incentive pay, profit sharing and other remuneration paid directly to the employee,
and/or (iv) other items of remuneration not specifically excluded pursuant to the Plan. Earnings shall not include the cost of
employee benefits paid for by the Company or an Affiliate, education or tuition reimbursements, imputed income arising under any
group insurance or benefit program, traveling expenses, business and moving expense reimbursements, income received in connection
with stock options, contributions made by the Company or an Affiliate under any employee benefit plan, and similar items of compensation,
as determined by the Board or the Committee. Notwithstanding the foregoing, the Board or Committee may modify the definition of
"Earnings" with respect to one or more Offerings as the Board or Committee determines appropriate. The payroll deductions
made for each participant shall be credited to an account for such participant under the Plan and shall be deposited with the general
funds of the Company. A participant may reduce (including to zero) or increase such payroll deductions, and an eligible employee
may begin such payroll deductions, after the beginning of any Offering only as provided for in the Offering.

 

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(b)    At any time during
an Offering, a participant may terminate his or her payroll deductions under the Plan and withdraw from the Offering by delivering
to the Company a notice of withdrawal in such form as the Company provides. Such withdrawal may be elected at any time prior to
the end of the Offering except as provided by the Board or the Committee in the Offering. Upon such withdrawal from the Offering
by a participant, the Company shall distribute to such participant all of his or her accumulated payroll deductions (reduced to
the extent, if any, such deductions have been used to acquire stock for the participant) under the Offering, without interest,
and such participant's interest in that Offering shall be automatically terminated. A participant's withdrawal from an Offering
will have no effect upon such participant's eligibility to participate in any other Offerings under the Plan but such participant
will be required to deliver a new enrollment agreement in order to participate in subsequent Offerings under the Plan.

 

(c)    Rights granted
pursuant to any Offering under the Plan shall terminate immediately upon cessation of any participating employee's employment with
the Company and any designated Affiliate, for any reason, and the Company shall distribute to such terminated employee all of his
or her accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire stock for the terminated
employee), under the Offering, without interest.

 

(d)    Rights granted
under the Plan shall not be transferable by a participant other than by will or the laws of descent and distribution, or by a beneficiary
designation as provided in Section 13, and during a participant's lifetime, shall be exercisable only by such participant.

 

8.      Exercise.

 

(a)    On each Purchase
Date specified in the relevant Offering, each participant's accumulated payroll deductions and other additional payments specifically
provided for in the Offering (without any increase for interest) shall be applied to the purchase of whole shares of stock of the
Company, up to the maximum number of shares permitted pursuant to the terms of the Plan and the applicable Offering, at the purchase
price specified in the Offering. No fractional shares shall be issued upon the exercise of rights granted under the Plan. The amount,
if any, of accumulated payroll deductions remaining in each participant's account after the purchase of shares which is less
than the amount required to purchase one share of Common Stock on the final Purchase Date of an Offering shall be held in each
such participant's account for the purchase of shares under the next Offering under the Plan, unless such participant withdraws
from such next Offering, as provided in Section 7(b), or is no longer eligible to be granted rights under the Plan, as provided
in Section 5, in which case such amount shall be distributed to the participant after such final Purchase Date, without interest.

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(b)    No rights granted
under the Plan may be exercised to any extent unless the shares to be issued upon such exercise under the Plan (including rights
granted thereunder) are covered by an effective registration statement pursuant to the Securities Act of 1933, as amended (the
"Securities Act") and the Plan is in material compliance with all applicable state, foreign and other securities
and other laws applicable to the Plan. If on a Purchase Date in any Offering hereunder the Plan is not so registered or in such
compliance, no rights granted under the Plan or any Offering shall be exercised on such Purchase Date, and the Purchase Date shall
be delayed until the Plan is subject to such an effective registration statement and such compliance, except that (i) there
is an available exemption for the exercise of the purchase right, and/or (ii) the Purchase Date shall not be delayed more than
5 years from the Offering Date. If on the Purchase Date of any Offering hereunder, as delayed to the maximum extent permissible,
the Plan is not registered and in such compliance, no rights granted under the Plan or any Offering shall be exercised and all
payroll deductions accumulated during the Offering (reduced to the extent, if any, such deductions have been used to acquire stock)
shall be distributed to the participants, without interest.

 

9.      Use of Proceeds from Stock.

 

Proceeds from the sale
of stock pursuant to rights granted under the Plan shall constitute general funds of the Company.

 

10.      Rights as a Stockholder.

 

A participant shall not
be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares subject to rights granted under
the Plan unless and until the participant's shareholdings acquired upon exercise of rights under the Plan are recorded in the books
of the Company (or its transfer agent).

 

11.      Adjustments upon Changes in Stock.

 

(a)    If any change
is made in the stock subject to the Plan, or subject to any rights granted under the Plan (through merger, consolidation, reorganization,
recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares,
exchange of shares, change in corporate structure or other transaction not involving the receipt of consideration by the Company),
the Plan and outstanding rights may, in the sole discretion of the Board or the Committee, be appropriately adjusted in the class(es)
and maximum number of shares subject to the Plan and the class(es) and number of shares and price per share of stock subject to
outstanding rights. Such adjustments, if any, shall be made by the Board or the Committee, the determination of which shall be
final, binding and conclusive.

 

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(b)    In the event of:
(1) a dissolution or liquidation of the Company; (2) a sale of all or substantially all of the assets of the Company; (3) a merger
or consolidation in which the Company is not the surviving corporation; (4) a reverse merger in which the Company is the surviving
corporation but the shares of the Company's Common Stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or otherwise; (5) the acquisition by any person, entity
or group within the meaning of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or any comparable successor provisions (excluding any employee benefit plan, or related trust, sponsored or maintained
by the Company or any Affiliate of the Company) of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under
the Exchange Act, or comparable successor rule) of securities of the Company representing at least fifty percent (50%) of the combined
voting power entitled to vote in the election of directors; or (6) the individuals who, as of the date of the adoption of this
Plan, are members of the Board (the "Incumbent Board") cease for any reason to constitute at least fifty percent
(50%) of the Board; then the Incumbent Board, in its sole discretion, may take any action or arrange for the taking of any action
among the following: (i) any surviving or acquiring corporation may assume outstanding rights or substitute similar rights for
those under the Plan, (ii) such rights may continue in full force and effect, or (iii) all participants' accumulated payroll deductions
may be used to purchase Common Stock immediately prior to or within a reasonable period of time following the transaction described
above and the participants' rights under the ongoing Offering terminated. For purposes of this Section 11, if the election, or
nomination for election by the Company's stockholders, of a new director was approved by a vote of at least fifty percent (50%)
of the members of the Board then comprising the Incumbent Board, such new director shall upon his or her election be considered
a member of the Incumbent Board.

 

12.      Amendment of the Plan or Offerings.

 

(a)    The Board at any
time, and from time to time, may amend the Plan or the terms of one or more Offerings. Except as provided in Section 11 relating
to adjustments upon changes in stock, however, no amendment shall be effective unless approved by the stockholders of the Company
within twelve (12) months before or after the adoption of the amendment, if the amendment will:

 

		(i)	Modify the provisions as to eligibility for participation in the Plan or an Offering (to the extent
such modification requires stockholder approval in order for the Plan to obtain employee stock purchase plan treatment under Section
423 of the Code (or any comparable successor provisions)); or

 

		(ii)	Modify the Plan or an Offering in any other way if such modification requires stockholder approval
in order for the Plan to obtain employee stock purchase plan treatment under Section 423 of the Code.

 

(b)      The Board may,
in its sole discretion, submit any amendment to the Plan or an Offering for stockholder approval.

 

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13.      Designation of Beneficiary.

 

(a)      A participant
may file a written designation of a beneficiary who is to receive any shares and cash, if applicable, from the participant's account
under the Plan in the event of such participant's death subsequent to the end of an Offering but prior to delivery to the participant
of such shares and cash. In addition, a participant may file a written designation of a beneficiary who is to receive any cash
from the participant's account under the Plan in the event of such participant's death during an Offering.

 

(b)      Such designation
of beneficiary may be changed by the participant at any time by written notice in the form prescribed by the Company. In the event
of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living (or if an entity,
is otherwise in existence) at the time of such participant's death, the Company shall deliver such shares 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 Company), the Company, in its sole discretion, may deliver such shares and/or cash to the spouse or to any one (1) or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other
person as the Company may determine.

 

14.      Termination or Suspension of
the Plan.

 

(a)      The Board in its
discretion, may suspend or terminate the Plan and/or any Offering at any time. The Plan shall automatically terminate if all the
shares subject to the Plan pursuant to Section 3(a) are issued. No rights may be granted under the Plan while the Plan is suspended
or after it is terminated.

 

(b)      If the Plan or
an Offering is terminated, on the date of such termination all outstanding options and rights granted pursuant to the Plan, or
the Offering, as applicable, will immediately expire and the Company shall distribute to each affected employee all of his or her
accumulated payroll deductions (reduced to the extent, if any, such deductions have been used to acquire stock for the affected
employee), without interest; provided, however, that the Board may, in its sole discretion, provide that the date
of termination of the Plan or an Offering shall constitute a Purchase Date under, in the case of (a) Plan termination, any or all
outstanding Offerings, and (b) in the case of an Offering termination, the applicable Offering.

 

15.      Effective Date of Plan.

 

The Plan shall become
effective on the day on which the Board approves the Plan (the "Effective Date").

 

16.      Choice of Law.

 

All questions concerning
the construction, validity and interpretation of this Plan shall be governed by the law of the State of New York, without regard
to such state's conflict of laws rules.

 

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IN WITNESS WHEREOF,
this Plan is adopted by the Company on this 29th day of September 2014.

 

	 	CHINA GREEN AGRICULTURE, INC.
	 	 	 
	 	By:	/s/ Tao Li
	 	 	Name: Tao Li
	 	 	Title:  President and CEO

 

    	9Exhibit 10.1

 

AMENDED AND RESTATED OSI SYSTEMS, INC.

 

2008 EMPLOYEE STOCK PURCHASE PLAN

 

The following constitute the provisions of the Amended and Restated 2008 Employee Stock Purchase Plan (herein called the “Plan”) of OSI Systems, Inc., a Delaware corporation (“OSI Systems, Inc.”).  The Plan amends and restates in its entirety, as of August 22, 2014, the OSI Systems, Inc. 2008 Employee Stock Purchase Plan (the “Original Plan”), which was originally adopted by the Board of Directors of OSI Systems, Inc. on August 26, 2008.

 

1.                                      Purpose.  The purpose of the Plan is to provide employees of the Company with an opportunity to purchase Common Stock of the Company through accumulated payroll deductions.  The Plan is intended to qualify as an “Employee Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986.  The provisions of the Plan shall, accordingly, be construed so as to extend and limit participation in a manner consistent with the requirements of that section of the Code.

 

2.                                      Definitions.

 

(a)                                 “Board” shall mean the Board of Directors of the Company.

 

(b)                                 “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

(c)                                  “Committee” shall mean the committee appointed by the Board of Directors of OSI Systems, Inc. to administer the Plan in accordance with Section 13 below, if one is appointed.

 

(d)                                 “Common Stock” shall mean the Common Stock, no par value per share, of OSI Systems, Inc.

 

(e)                                  “Company” shall mean (i) OSI Systems, Inc., (ii) each of the existing Subsidiaries, as defined in Section 425 of the Code, of OSI Systems, Inc. that are incorporated in the United States, and (iii) any such other or future Subsidiaries as the Board of Directors of OSI Systems, Inc. shall from time to time designate.  Until the Board of Directors of OSI System, Inc. determines otherwise, the term “Company” shall not refer to or include any Subsidiary incorporated outside of the United States.

 

(f)                                   “Compensation” shall mean the annual base rate of pay of an eligible Employee during an Offering Period, determined in accordance with nondiscriminatory rules adopted by the Board of Directors, including commissions and cash bonuses, but excluding income with respect to stock options, restricted stock awards or other stock purchases and moving expense reimbursements.

 

(g)                                  “Continuous Status as an Employee” shall mean 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, provided that such leave is for a period of not more than 90 days or reemployment upon the expiration of such leave is guaranteed by contract or statute.

 

 

(h)                                 “Employee” shall mean any regular employee of the Company whose date of hire was at least ninety (90) days prior to the commencement of an Offering Period, who is customarily employed for at least twenty (20) hours per week and more than five (5) months in a calendar year.

 

(i)                                     “Exercise Date” shall mean the last date of an applicable Exercise Period.  In the absence of a specific determination to the contrary by the Board of Directors or the Committee, (i) for an Offering Period that commences on January 1 the following June 30, December 31, June 30 and December 31 shall each be an Exercise Date; and (ii) for an Offering Period that commences on July 1, the following December 31, June 30, December 31 and June 30 shall each be an Exercise Date.

 

(j)                                    “Exercise Period” shall mean, in the absence of a specific determination to the contrary by the Board of Directors or the Committee, a period commencing on an Offering Date or on the day after an Exercise Date and terminating one day prior to the date six (6) months later.

 

(k)                                 “Offering Period” shall mean, in the absence of a specific determination to the contrary by the Board of Directors or the Committee, a period of twenty-four (24) months beginning on January 1 and July 1 of each year consisting of four (4) six-month Exercise Periods during which options granted pursuant to the Plan may be exercised.

 

(l)                                     “Offering Date” shall mean the first day of each Offering Period of the Plan.

 

(m)                             “Plan” shall mean this Amended and Restated 2008 Employee Stock Purchase Plan.

 

(n)                                 “Plan Account” means the account established for each participant pursuant to the Plan.

 

(o)                                 “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting shares are held by the Company or a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

 

3.                                      Eligibility.

 

(a)                                 Any Employee as defined in Section 2(h) who shall be employed by the Company on the Offering Date shall be eligible to participate in the Plan, subject to limitations imposed by Section 423(b) of the Code.

 

(b)                                 Any provisions of the Plan to the contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own stock and/or hold outstanding options to purchase stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or of any subsidiary of the Company, or (ii) which permits such Employee’s rights to purchase stock under all employee stock purchase plans of the Company and its subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of fair market value of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time.

 

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(c)                                  In the event that the aggregate number of shares which all participants elect to purchase during an Offering Period shall exceed the number of shares remaining available for issuance under the Plan, the number of shares to which each participant shall become entitled shall be determined by multiplying the number of shares available for issuance, by a fraction, the numerator of which is the sum of the number of shares the participant has elected to purchase and the denominator of which is the sum of the number of shares which all participants have elected to purchase.

 

4.                                      Offering Periods.  In the absence of a specific determination to the contrary by the Board of Directors or the Committee, the Plan shall be implemented by twenty-four (24) month Offering Periods beginning every six (6) months, until terminated in accordance with Section 19 hereof.  In no event shall an Offering Period exceed five (5) years.

 

5.                                      Participation.

 

(a)                                 An eligible Employee may become a participant in the Plan by delivering to the Company’s human resources office an enrollment form provided by the Company authorizing payroll deductions not less than ten (10) business days prior to the applicable Offering Date, unless a later or earlier time for filing the form is set by the Board or Committee for all eligible Employees with respect to a given offering.

 

(b)                                 Payroll deductions for a participant shall continue at the rate specified in the enrollment form throughout the Offering Period with automatic re-enrollment for the Offering Period which commences the day after the Exercise Date at the same rate specified in the original enrollment form, subject to any change in payroll deduction rate made pursuant to Section 6(c), unless sooner terminated by the participant as provided in Section 11.  A participant is not required to file any additional enrollment forms for subsequent Offering Periods in order to continue participation in the Plan.  A participant may not participate in more than one Offering Period at any given time.

 

6.                                      Payroll Deductions.

 

(a)                                 A participant shall designate on the enrollment form the percentage of Compensation which he or she elects to have withheld for the purchase of Common Stock, which may be any whole percentage from 1% to 10% of the participant’s Compensation.

 

(b)                                 All payroll deductions made by a participant shall be credited to his or her account under the Plan.  A participant may not make any additional payments into such account.

 

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(c)                                  A participant may discontinue his or her participation in the Plan as provided in Section 11, or may reduce (but not increase) the rate of payroll withholding during an Offering Period by filing an amended enrollment form with the Company’s human resources office at any time prior to the last day of any Offering Period (for which such change is to be effective), but not more than four (4) changes may be made in any Offering Period (or such other number of changes as may be approved by the Board or the Committee).  A Participant may increase or decrease the rate of payroll deduction for any subsequent Offering Period by filing with the Company’s human resources office a new authorization for payroll deductions not less than ten (10) business days prior to the Offering Date for such subsequent Offering Period.

 

7.                                      Grant of Option.

 

(a)                                 On the Offering Date of each Offering Period, each eligible Employee participating in the Plan shall be granted an option to purchase on each Exercise Date during such Offering Period (at the per share option price) up to a number of shares of the Company’s Common Stock determined by dividing such Employee’s payroll deductions to be accumulated prior to such Exercise Date by the applicable fair market value of a share of the Company’s Common Stock as determined pursuant to Section 7(b) hereof.  Notwithstanding anything to the contrary contained herein, in no event shall an Employee be permitted to purchase during an Exercise Period a number of shares of the Company’s Common Stock in excess of a number determined by dividing $12,500 by the fair market value of a share of the Company’s Common Stock on the Offering Date, subject to the limitations set forth in Sections 3(b) and 12 hereof.  Fair market value of a share of the Company’s Common Stock shall be determined as provided in Section 7(b) herein.

 

(b)                                 Subject to Section 15 hereof, the option price per share of the shares of the Company’s Common Stock offered in a given Exercise Period shall be the lower of: (i) 85% of the fair market value of a share of the Common Stock of the Company on the Offering Date; or (ii) 85% of the fair market value of a share of the Common Stock of the Company on the Exercise Date; provided, however, that with respect to any Exercise Date of an Offering Period that occurs following the twenty-seven (27) month anniversary of the Offering Date of such Offering Period, the option price per share shall be eighty-five percent (85%) of the fair market value of a share of the Common Stock of the Company on the Exercise Date.  The fair market value of the Company’s Common Stock on a given date shall be the closing price as quoted on the Nasdaq Stock Market, Inc.’s Global Market (or, if traded on an alternative securities exchange, the closing price on such exchange) or, if there is no closing sales price for a share of the Company’s Common Stock on the date in question, the closing sales price for a share of the Company’s Common Stock on the last preceding date for which such quotation exists.

 

8.                                      Exercise of Option.  Unless a participant withdraws from the Plan as provided in Section 11, his or her option for the purchase of shares will be exercised automatically on each Exercise Date of the Offering Period, and the maximum number of full shares subject to option will be purchased for him or her at the applicable option price with the accumulated payroll deductions in his or her account.  During his or her lifetime, a participant’s option to purchase shares hereunder is exercisable only by him or her.

 

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9.                                      Purchase of Common Stock.  The Company will maintain a Plan Account on its books in the name of each participant.  On each payday the amount deducted from the participant’s Compensation will be credited to the participant’s Plan Account.  No interest shall accrue on any such payroll deductions.  As promptly as practicable after the Exercise Date of each offering, the Company shall arrange, for each participant as appropriate, for the issuance of the shares purchased upon exercise of his or her option in street name and for the delivery of such shares to the participant’s account at the Company’s designated broker-dealer.  Any cash remaining which is insufficient to purchase a full share of Common Stock at the termination of each Exercise Period shall be credited to the participant’s account for the next Exercise Period.

 

10.                               Automatic Transfer to Low Price Offering Period.  In the event that the fair market value of the Company’s Common Stock is lower on an Exercise Date than it was on the first Offering Date for that Offering Period, all Employees participating in the Plan on the Exercise Date shall be deemed to have withdrawn from the Offering Period immediately after the exercise of their option on such Exercise Date and to have enrolled as participants in a new Offering Period which begins on or about the day following such Exercise Date.

 

11.                               Withdrawal; Termination of Employment.

 

(a)                                 A participant may withdraw all but not less than all the payroll deductions credited to his or her account under the Plan at any time prior to the Exercise Date of the Offering Period by giving written notice to the Company.  All of the participant’s payroll deductions credited to his or her account will be paid to him or her at the next pay date which follows the tenth business day after the receipt of his or her notice of withdrawal and his or her option for the current period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made during the Offering Period.

 

(b)                                 Upon termination of the participant’s Continuous Status as an Employee prior to the Exercise Date for any reason, including retirement or death, the payroll deductions credited to his or her account will be returned to the participant or, in the case the of participant’s death, to the representative of the participant’s estate.

 

(c)                                  A participant’s withdrawal from an offering will not have any effect upon his or her eligibility to participate in a succeeding offering or in any similar plan which may hereafter be adopted by the Company.

 

12.                               Number of Shares to be Offered.  The maximum aggregate number of shares of the Company’s Common Stock that may be issued under the Plan shall be 1,500,000 shares, subject to adjustment upon changes in capitalization of the Company as provided in Section 15 hereof.  In the event that any option granted under the Plan expires or is terminated for any reason, such shares allocable to the unexercised portion of such option shall again be subject to an option under the Plan.

 

13.                               Administration.  The Plan shall be administered by the Board of Directors and/or by a duly appointed Committee consisting of not less than two persons, at least one of which shall be a member of the Board of Directors, and having such powers as shall be specified by the Board.  The Board of Directors may from time to time remove members from, or add members to, the Committee.  Vacancies on the Committee shall be filled by the Board of Directors.  The Committee shall hold meetings at such times and places as it may determine.  Unless otherwise specified by the Board of Directors, the Committee shall consist of the members of the Company’s Compensation Committee.  The interpretation and construction by the Board of Directors or the Committee of any provision of the Plan or of any right to purchase Common Stock shall be conclusive and binding on all persons.

 

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14.                               Transferability.  Neither payroll deductions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, or the laws of descent and distribution) by the participant.  Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 11.

 

15.                               Adjustments Upon Changes in Capitalization.  Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the price per share of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split or the payment of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”  Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive.  Except as expressly provided herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option.

 

In the event of the proposed dissolution or liquidation of the Company, the offering period will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board.  In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each option under the Plan shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Board determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, that the participant shall have the right to exercise the option as to all of the optioned stock, including shares as to which the option would not otherwise be exercisable.  If the Board makes an option fully exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify the participant that the option shall be fully exercisable for a period of thirty (30) days from the date of such notice, and the option will terminate upon the expiration of such period.

 

The Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common Stock, and in the event of the Company being consolidated with or merged into any other corporation.

 

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16.                               Rights as a Shareholder.  A participant shall have no rights as a shareholder with respect to any shares of Common Stock he or she may have a right to purchase under the Plan until the date of issuance of a stock certificate to such participant for shares issued pursuant to the Plan.

 

17.                               Rights as an Employee.  Nothing in the Plan shall be construed to give any participant the right to remain in the employ of the Company or a Subsidiary or to affect the right of the Company and its Subsidiaries or the participant to terminate such employment at any time with or without cause.

 

18.                               Use of Funds.  All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions.

 

19.                               Amendment or Termination.  The Board of Directors shall have the right to amend, modify or terminate the Plan at any time without notice, provided that no Participant’s existing rights are adversely affected thereby, and provided further that no amendment to the Plan shall be effective until such amendment is approved by a vote of the holders of at least a majority of the outstanding shares of Common Stock of the Company within twelve month before or after the date upon which such action is taken by the Board of Directors, if such amendment would:

 

(a)                                 Increase the aggregate number of shares of Common Stock to be issued under the Plan (except as provided in Section 15 hereof);

 

(b)                                 Materially modify the requirements for eligibility to participate in the Plan;

 

(c)                                  Increase the maximum number of shares of Common Stock which a Participant may purchase in any Offering Period;

 

(d)                                 Extend the term of the Plan;

 

(e)                                  Alter the option price per share formula so as to reduce the price for shares of Common Stock to be purchased under the Plan;

 

(f)                                   Otherwise materially increase the benefits accruing to participants under the Plan; or

 

(g)                                  Cause the Plan to fail to meet the requirements of an “employee stock purchase plan” under Section 423 of the Code.

 

The Plan shall terminate on the date prior to the tenth anniversary of the date on which the Original Plan was adopted, if it has not been earlier terminated pursuant to this Section 19, but the Plan shall remain in full force and effect until the end of the Offering Period then in effect.

 

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20.                               Notices.  All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

 

21.                               Stockholder Approval.  Continuance of the Plan and the effectiveness of any option granted hereunder shall be subject to approval of the Original Plan by the affirmative vote or written consent of the holders of a majority of the outstanding shares of Common Stock of the Company present or represented and entitled to vote thereon, within 12 months after the date of adoption of the Original Plan by the Board of Directors.

 

22.                               Conditions Upon Issuance of Shares.  Shares shall not be issued with respect to an option 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, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

 

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares 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.

 

23.                               Governing Law.  To the extent not governed by federal law, all legal questions pertaining to the Plan shall be determined in accordance with the laws of the State of Delaware.

 

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