Document:

Exhibit

Exhibit 10.04

NOTICE OF STOCK OPTION GRANT

Rovi Corporation, a Delaware corporation (the “Company”), has granted to [employee name ](the “Optionee”) an option (the “Option”) to purchase certain shares of the Company’s Common Stock (the “Optioned Shares”) pursuant to the Rovi Corporation 2008 Equity Incentive Plan (the “Plan”), as follows:

Date of Option Grant:        (grant date)        
        
Number of Optioned Shares:    (shares)        
        
Option Exercise Price:     $XX.XX Per share
        
Earliest Exercise Date:        (grant date + 1 year)        
    
Option Expiration Date:    The date seven (7) years after the Date of Option Grant
        
Tax Status of Option:        Nonstatutory Stock Option
    

Exercisable Shares:  Except as otherwise provided in the attached Nonstatutory Stock Option Agreement (the “Agreement”), the number of Optioned Shares for which this Option may be exercised as of any date is determined by multiplying the number of Optioned Shares (set forth above) by the “Exercisable Percentage” determined as of such date as follows: 

		
	•
	On Earliest Exercise Date: Exercisable Percentage 25%

		
	•
	For each full month following the Earliest Exercise Date through the third anniversary of the Earliest Exercise Date: Exercisable Percentage 2.083%

In the foregoing calculations, any fractional share resulting shall be disregarded.  The number of Optioned Shares for which this Option is exercisable at any time shall be reduced by any Optioned Shares for which this Option previously has been exercised.
The Company and the Optionee agree that the Option described in this Notice is governed by the provisions of the Agreement attached to and made a part of this document.  The Optionee acknowledges receipt of this Notice and the Agreement, represents that the Optionee has read and is familiar with the provisions in this Notice and the attached Agreement, and hereby accepts the Option subject to all of the terms and conditions set forth in this Notice and the attached Agreement.

ROVI CORPORATION                    Accepted by:
OPTIONEE    
        
Name:_____________________________________    

By:                        /s/ Thomas Carson        
Signature:__________________________________    
                
Title:        President and CEO                Date:    
                
Address:    2830 De La Cruz Blvd            Address:    
Santa Clara, CA             
                
ATTACHMENTS:    Nonstatutory Stock Option Agreement

NONSTATUTORY STOCK OPTION AGREEMENT

THE OPTION IS SUBJECT TO, AND MAY BE EXERCISED ONLY IN ACCORDANCE WITH, THE TERMS AND CONDITIONS OF THE PLAN.  ONLY CERTAIN PROVISIONS OF THE PLAN ARE INCLUDED IN THIS AGREEMENT.  A COPY OF THE PLAN IS ATTACHED TO THIS AGREEMENT AND SHOULD BE READ CAREFULLY.
Rovi Corporation, a Delaware corporation (the “Company”) and the Optionee agree that the terms and conditions set forth herein shall apply to the stock options granted to the Optionee, on the date of grant, for the number of Optioned Shares and exercisable at the Option Price, all as identified in the Notice of Stock Option Grant (the “Notice”) to which this Agreement is attached.  All capitalized terms not defined herein or in the Notice shall have those meanings ascribed to them in the Plan.
1. Term of Option and Exercise of Option.  Subject to the provisions of the Plan and the terms and conditions of this Agreement and the Optionee’s not experiencing a termination of employment of other business relationship during the vesting period, this Option may be exercised by the Optionee during a period of seven (7) years from the date of grant in accordance with the schedule set forth in the Notice (the “Expiration Date”) unless sooner terminated or cancelled in accordance with the Plan.  If this Option expires on a stock exchange holiday or weekend day, this Option will expire on the last trading day prior to the holiday or weekend.  The schedule set forth in the Notice refers to the earliest dates on which this Option may be exercised with respect to the percentages of Optioned Shares determined in accordance with such schedule as of such dates, and, subject to the terms and conditions set forth herein, this Option may be exercised with respect to all or any part of such percentages of the Optioned Shares at any time on or after such dates prior to the Expiration Date.  The Optionee must be and remain an employee, consultant, director or independent contractor in service to the Company, or of any parent corporation or subsidiary corporation of the Company (as such terms are defined in Sections 424 (e) and (f) of the Internal Revenue Code), during the entire period commencing with the date of grant of this Option and ending with each date determined in accordance with the exercise schedule set forth in the Notice in order to exercise this Option with respect to the Optioned Shares first becoming exercisable on such date.  Optionee shall be solely responsible for exercising this Option, if at all, prior to its Expiration Date.  The Company shall have no obligation to notify Optionee of the Option’s expiration.
2. Leave of Absence.  During any authorized leave of absence, the vesting of the Option shall be suspended after the leave of absence exceeds a period of thrity (30) days.  Vesting of the Option shall resume upon the Optionee’s termination of the leave of absence and return to service to the Company and/or its Subsidiaries.  The vesting schedule of the Option shall be extended by the length of the suspension.
3. Termination by Reason of Death, Disability or Retirement.  If the Optionee’s employment or other business relationship with the Company and/or its Subsidiaries is terminated by reason of the Optionee’s death, Disability or Retirement, this Option may thereafter be exercised, but only to the extent it was exercisable on the date of the Optionee’s death, Disability or Retirement, by (i) in the case of death, the legal representative of the Optionee’s estate or by any other person who acquires the right to exercise the Option by reason of such death or (ii) in the case of Disability or Retirement, Optionee, for a period of twelve (12) months from the date of death, Disability or Retirement, as applicable, or until the Expiration Date of the Option, if earlier.  The Administrator shall have sole authority and discretion to determine whether the Optionee’s employment or other business relationship has been terminated by reason of Disability. Notwithstanding the foregoing, if the Company receives an opinion of counsel that there has been a legal judgment and/or legal development in the Optionee’s jurisdiction that would likely result in the treatment that applies to this Option upon termination of Optionee’s employment or other business relationship by reason of Retirement (“Retirement Treatment”) being deemed unlawful and/or discriminatory, then the Retirement Treatment provided in this Section 2 will not apply and the treatment provided in Section 4 of this Agreement will apply instead.
4. Termination for Cause.  If the Optionee’s employment or other business relationship with the Company and/or its Subsidiaries is terminated for Cause, then this Option, to the extent not vested as of Optionee’s termination date, shall immediately terminate and be of no further force and effect.  In the event of termination for Cause, this Option may thereafter be exercised, to the extent that was vested on the date of the Optionee’s termination, for 30 days from the date of such termination or until the expiration of the stated term of the Option, if earlier.
5. Other Termination.  Unless otherwise determined by the Administrator, if the Optionee’s employment or other business relationship with the Company and/or its Subsidiaries terminates for any reason other than death, Disability, Retirement, 

or for Cause, then this Option, to the extent not vested as of Optionee’s termination date, shall be forfeited immediately upon such termination, and Optionee shall have no further rights with respect to this Option or the shares of stock underlying that portion of this Option that have not yet vested.  Accordingly, this Option may thereafter be exercised, to the extent it was exercisable on the date of such termination, for three (3) months from the date of such termination or until the expiration of the stated term of the Option, if earlier.  In jurisdictions requiring notice in advance of an effective termination of the employment or other business relationship with the Company and/or its Subsidiaries, Optionee shall be deemed terminated upon the actual cessation of providing services to the Company notwithstanding any required notice period that must be fulfilled before a termination of the employment or business relationship can be effective under applicable laws.  
6. Non-transferability of Option.  This Option shall not be transferable except by will or the laws of descent and distribution, and this Option may be exercised during the Optionee’s lifetime only by the Optionee.  Any purported transfer or assignment of this Option shall be void and of no effect, and shall give the Company the right to terminate this Option as of the date of such purported transfer or assignment.
7. Method of Exercise.  This Option may be exercised with respect to all or any part of the Optioned Shares that are exercisable at time of exercise, by providing irrevocable instructions to a designated brokerage firm specifying the number of Optioned Shares as to which this Option is so exercised, and making full payment to the Company in cash, electronic transfer or by check of the Option Price for the Optioned Shares with respect to which this Option is exercised and any applicable withholding taxes in accordance with Section 8 below. 
If the Company’s outstanding Common Stock is registered under Section 12 (g) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), at the time this option is exercised, then the Option Price also may be paid as follows:
a. in shares of the Company’s Common Stock held by the Optionee for the requisite period necessary to avoid a charge to the Company’s earnings for financial reporting purposes and valued at fair market value on the exercise date;
b. through a special sale and remittance procedure pursuant to which the Optionee (i) is to provide irrevocable instructions to a designated brokerage firm to effect the immediate sale of the purchased Optioned Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate Option Price payable for the purchased Optioned Shares plus all applicable federal and state income and employment taxes required to be withheld by the Company by reason of such purchase and (ii) to instruct the designated brokerage firm to provide directives to the Company to deliver certificates for the purchased shares directly to such brokerage firm in order to effect the sale transaction;
c. through a special margin commitment procedure pursuant to which the Optionee elects to exercise his or her vested Optioned Shares and then pledge those Optioned Shares purchased into a margin account with a brokerage firm as security for a loan from the brokerage firm in an amount equal to the aggregate exercise price of the Optioned Shares.  The brokerage firm is then irrevocably committed to forward sufficient funds to the Company to cover the aggregate exercise price payable for the purchased Optioned Shares plus all applicable federal and state income and employment taxes required to be withheld by the Company by reason of such purchase.  The Optionee is required to provide written directives to the Company to deliver concurrently certificates for the purchased shares directly to such brokerage firm; or
d. any combination of the foregoing.
As soon as practical after receipt of notice of exercise, the Company shall, without transfer or issue tax or other incidental expense to the Optionee or his or her successor, transfer and deliver thereto at the office of the Company or such other place as may be mutually agreeable a certificate or certificates for such shares of its Common Stock, or initiate electronic delivery of such shares to the designated brokerage firm; provided, however, that the time of such delivery may be postponed by the Company for such period as may be required for it with reasonable diligence to comply with applicable registration requirements under the Securities Act of 1933, as amended, any applicable listing requirements of any national securities exchange, and requirements under any other laws or regulations applicable to the issuance or transfer of such shares.

8. Adjustments Upon Changes in Capitalization.  In the event of any change in the outstanding Common Stock of the Company by reason of stock dividends, recapitalization, mergers, consolidations, split-up, combinations or exchanges of shares and the like, the aggregate number or class of shares subject to this Option immediately prior to such event shall be appropriately adjusted by the Board of Directors in accordance with the terms of the Plan.
9. Withholding and Employment Taxes.  
(i)   Optionee is responsible for, and by accepting this Option agrees to bear, all taxes of any nature, including withholding taxes, interest or penalties arising out of the grant of this Option, the vesting or exercise of this Option or the subsequent sale of the Optioned Shares, or any violation of Code Section 409A that impacts this Option, that are legally imposed upon Optionee in connection with this Option, and the Company does not assume, and will not be liable to any party for, any cost or liability arising in connection with such tax liability legally imposed on Optionee.  The Company has not provided any tax advice with respect to this Option or the disposition of the Shares.  Optionee should obtain advice from an appropriate independent professional adviser with respect to the taxation implications of any aspect of this Option, including the grant, vesting or exercise of this Option or the subsequent sale of any Shares.

(ii)   In the event that the Company or the Optionee’s employer, including any Subsidiary qualified to deduct tax at source (the “Employer”), is required to withhold any amount (including in connection with income tax, employment or payroll taxes, social security contributions or other similar amounts, with such obligation in aggregate referred to herein as the “Withholding Obligation”) as a result of any event occurring in connection with this Option, the Optionee shall make a cash payment to the Company as necessary to cover all applicable Withholding Obligations at or prior to the time the event giving rise to the Withholding Obligation occurs; provided that (a) the Company has the right to withhold a portion of the Optioned Shares otherwise to be delivered upon exercise of this Option having a Fair Market Value equal to the amount of the Withholding Obligation in accordance with such rules as the Company may from time to time establish, (b) the Company or the Employer has the right, and the Optionee in accepting this grant explicitly authorizes the Company, to deduct an amount equal to the Withholding Obligation from the Optionee’s compensation or (c) the Company may establish alternative procedures to ensure satisfaction of all applicable Withholding Obligations arising in connection with this Option.  The Optionee will receive a cash refund for any payment of cash or fraction of a surrendered share not necessary to satisfy the Withholding Obligations.

(iii)   Optionee acknowledges and agrees that the ultimate liability for any tax-related item legally due by Optionee is and remains Optionee’s responsibility and that the Company and or the Employer (a) make no representations nor undertakings regarding the treatment of any such tax items in connection with any aspect of this Option, including the grant, vesting or exercise of this Option or the subsequent sale of the Shares acquired upon exercise of this Option; and (b) do not commit to structure the terms or any aspect of this Option to reduce or eliminate the Optionee’s liability for such tax items.  The Company may refuse to honor the exercise of this Option and refuse to deliver the Optioned Shares if Optionee fails to comply with Optionee’s obligations in connection with the satisfaction of the Withholding Obligations.
10. Tax Status.  The Optionee’s treatment of shares purchased pursuant to the exercise of this nonstatutory stock option may have significant tax consequences. The Optionee acknowledges that he or she has been encouraged to obtain the advice of independent tax counsel regarding the income tax consequences of the receipt and exercise of the Option granted hereby and of the disposition of Common Stock acquired upon exercise hereof.  The Optionee acknowledges that he or she has not relied and will not rely upon any advice or representations by the Company or by its employees or representatives with respect to the tax treatment of the options granted hereunder.
11. No Right to Continued Relationship, Optionee Acknowledgements.  By accepting the grant of this Option, Optionee acknowledges and agrees that the Plan is established voluntarily by the Company, it is discretionary in nature and may be modified, amended, suspended or terminated by the Company at any time unless otherwise provided in the Plan or this Agreement.  Optionee acknowledges that all decisions with respect to future grants, if any, will be at the sole discretion of the Company.  Optionee's participation in the Plan shall not create a right to further employment with Employer and shall not interfere with the ability of Employer to terminate Optionee's employment or service relationship at any time with or without cause and it is expressly agreed and understood that employment is terminable at the will of either party, insofar as permitted by law.  Optionee agrees that this Option is not part of normal or expected compensation or salary for any purposes, including, but not limited to calculating any severance, resignation, termination, redundancy, end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar payments insofar as permitted by law.  Nothing contained in this Agreement shall confer upon the Optionee any right to a continued employment with the Company and its Subsidiaries or in any way limit the right of the Company or its Subsidiaries to terminate such relationship at any time.  In the event that Optionee is not an employee of the 

Company, this Option grant will not be interpreted to form an employment contract or service relationship with the Company, the Employer or any Subsidiary of the Company.  Optionee acknowledges that the future value of the underlying Shares is unknown, may increase or decrease in the future, and cannot be predicted with certainty.  In consideration of the grant of this Option, no claim or entitlement to compensation or damages shall arise from termination of this Option or diminution in value of this Option or Optioned Shares purchased through exercise of this Option resulting from Optionee's Termination of Employment by the Company or the Employer (for any reason whatsoever and whether or not in breach of applicable laws).
12. Compliance with Securities and Other Laws.  The Company shall not be obligated to deliver any shares of its Common Stock hereunder for such period as may reasonably be required for it to comply with any applicable requirements of: (i) the Securities Act of 1933; (ii) the Securities Exchange Act of 1934; (iii) applicable state securities laws; (iv) any applicable listing requirement of any stock exchange on which the Company’s Common Stock is then listed; and (v) any other law or regulation applicable to the issuance of such shares. 
13. Notices. All notices and other communications of any kind which either party to this Agreement may be required or may desire to serve on the other party hereto in connection with this Agreement shall be in writing and may be delivered by personal service or by registered or certified mail, return receipt requested, deposited in the United States mail with the postage thereon fully prepaid, addressed to the parties at their respective addresses set forth in the Notice of Stock Option Grant.  Service of any such notice or other communication so made by mail shall be deemed complete on the date of actual delivery as shown by the addressee’s registry or certification receipt or at the expiration of the third (3rd) business day after the date of mailing, whichever is earlier in time.  Either party may from time to time by notice in writing served upon the other as aforesaid, designate a different mailing address or a different person to which such notices or other communications are thereafter to be addressed or delivered. 
14. Data Transfer.  Optionee explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of Optionee's personal data as described in this document by and among, as applicable, the Employer or the Company, including any of its Subsidiaries, for the exclusive purpose of implementing, administering and managing Optionee's participation in the Plan.  Optionee understands that the Company, its Subsidiaries and the Employer hold certain personal information about Optionee, including, but not limited to, name, home address and telephone number, date of birth, social security number (or other identification number), salary, nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded, canceled, purchased, exercised, vested, unvested or outstanding in Optionee's favor for the purpose of implementing, managing and administering the Plan (“Data”).  Optionee understands that the Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, that these recipients may be located in Optionee's country or elsewhere and that the recipient country may have different data privacy laws and protections than Optionee's country.  Optionee may request a list with the names and addresses of any potential recipients of the Data by contacting the Stock Plan Administrator at the Company.  Optionee authorizes the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing Optionee's participation in the Plan, including any requisite transfer of such Data, as may be required to a broker or other third party with whom Optionee may elect to deposit any Shares acquired upon the exercise of this Option.  Optionee understands that Data will be held only as long as is necessary to implement, administer and manage participation in the Plan.  Optionee may, at any time, view Data, request additional information about the storage and processing of the Data, require any necessary amendments to the Data or refuse or withdraw the consents herein, in any case without cost, by contacting the Stock Plan Administrator in writing.  Optionee understands that refusing or withdrawing consent may affect Optionee's ability to participate in the Plan.  For more information on the consequences of refusing to consent or withdrawing consent, Optionee may contact the Stock Plan Administrator at the Company.
15. Appendix. The Option shall be subject to any special provisions set forth in the Appendix for Optionee’s country.  Moreover, if Optionee relocates to one of the countries included in the Appendix during the life of the Option or while holding shares of Common Stock acquired under the Plan, the special provisions for such country shall apply to Optionee to the extent the Company determines that the application of such provisions is advisable or necessary in order to comply with local law or facilitate the administration of the Plan.  The Appendix constitutes part of this Agreement.
16.  Copies of Plan Materials.  Optionee acknowledges that the Company has a Rovi Intranet Stock Program page which is at the Company’s intranet website and available stockholder information, including copies of any annual report, proxy statement and periodic report, at the Company’s investor relations page on the Company’s website at http://ir.rovicorp.com.  Optionee acknowledges that copies of the Plan, Plan prospectus, Plan information and stockholder 

information are also available upon written or telephonic request to the Executive Assistant to the Chief Financial Officer.

17. Entire Agreement; Plan Controls.  The Plan is incorporated herein by reference.  The Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to Optionee's interest except by means of a writing signed by the Company and Optionee.  This Agreement is governed by the laws of the state of Delaware.  In the event of any conflict between the terms and provisions of the Plan and this Agreement, the Plan terms and provisions shall govern.  Capitalized terms used but not defined in this Agreement have the meanings assigned to them in the Plan.  Certain other important terms governing this Agreement are contained in the Plan.
RETAIN THIS AGREEMENT FOR YOUR RECORDSExhibit

Exhibit 10.05

ROVI CORPORATION
2008 EQUITY INCENTIVE PLAN
NOTICE OF RESTRICTED STOCK AWARD

Rovi Corporation, (the “Company”) hereby grants you,  [employee name ]   (the “Participant”), a Restricted Stock Award under the 2008 Equity Incentive Plan, as amended (the “Plan”).  The date of this Notice of Restricted Stock Award (“Notice”) is  [grant date]..  Subject to the provisions of this Notice, the Restricted Stock Award Agreement (the “Agreement”) and of the Plan, the features of this Restricted Stock Award are as follows:
Number of Shares:   (shares)
Vesting Commencement Date:  (grant date)
Vesting of Restricted Stock Award:  The Restricted Stock Award will vest over a four-year period according to the following schedule: 
Twenty-five percent (25%) of the Restricted Stock Award shall vest on each 12-month anniversary of the Vesting Commencement Date, subject to Participant continuing to be an employee, consultant, director or independent contractor of the Company or one of its Subsidiaries through the applicable vesting date.

Unless otherwise defined herein or in the Agreement, capitalized terms herein or in the Agreement will have the defined meanings ascribed to them in the Plan.
The Company and Participant agree that the Restricted Stock Award described in this Notice is governed by the provisions of the Agreement attached to and made a part of this document. The Participant acknowledges receipt of this Notice and the Agreement, represents that the Participant has read and is familiar with the provisions in this Notice and the attached Agreement, and hereby accepts the Restricted Stock Award subject to all of the terms and conditions set forth in this Notice and the attached Agreement.  
Rovi Corporation                    Accepted by:
PARTICIPANT    
By:   /s/ Thomas Carson
Name:____________________________
Title:    President and CEO                Signature:__________________________

Address: 2830 De La Cruz Blvd            Date:
Santa Clara, California
Address:

ATTACHMENT: Restricted Stock Award Agreement

ROVI CORPORATION
2008 EQUITY INCENTIVE PLAN
RESTRICTED STOCK AWARD AGREEMENT
EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE NOTICE, THE RESTRICTED STOCK AWARD IS SUBJECT TO AND MAY BE EXECUTED ONLY IN ACCORDANCE WITH THE PLAN.  ONLY CERTAIN PROVISIONS OF THE PLAN ARE SUMMARIZED IN THIS AGREEMENT.  THE TERMS OF THE PLAN ARE INCORPORATED HEREIN BY REFERENCE.  IN THE EVENT OF ANY CONFLICT BETWEEN THE PROVISIONS IN THIS AGREEMENT AND THE PLAN, THE PROVISIONS IN THE PLAN SHALL GOVERN.  
1.  Grant of Restricted Stock Award.  The Company hereby grants to Participant a Restricted Stock Award for that number of shares of Stock set forth in the Notice. 
2.  Leave of Absence.  During any authorized leave of absence, the vesting of the Option shall be suspended after the leave of absence exceeds a period of thirty (30) days.  Vesting of the Option shall resume upon the Optionee’s termination of the leave of absence and return to service to the Company and/or its Subsidiaries.  The vesting schedule of the Option shall be extended by the length of the suspension.
3.  Non-transferability of Restricted Stock Award and Shares.  The Restricted Stock Award shall not be transferable (including by sale, assignment, pledge or hypothecation) other than by will or the laws of intestate succession.  The designation of a beneficiary does not constitute a transfer.  Participant shall not sell, transfer, assign, pledge or otherwise encumber the shares subject to the Restricted Stock Award until all vesting requirements have been met.
4.  Stockholder Rights.  Except as provided in Section 2 or otherwise in this Paragraph 3, Participant shall have all of the rights of a stockholder of the Company, including the right to vote the shares.  Participant shall have the right to receive dividends and other distributions (provided that distributions in the form of Stock shall be subject to the same restrictions as the underlying restricted stock) only with respect to the vested amount(s) of the Restricted Stock Award.  For the avoidance of doubt, unvested Restricted Stock Awards shall have no rights to dividends or other distributions.
5.  Vesting and Earning of Restricted Stock Award.
(a)If Participant continues to serve the Company or Subsidiary as an employee, consultant, director or independent contractor (such service is described herein as maintaining or being involved in a “Service Relationship”), then the Restricted Stock Award shall vest in accordance with the Notice.

(b)The foregoing notwithstanding, in the event that Participant maintains a Service Relationship at the time a change in control as defined herein occurs, the Board, or the board of directors of any corporation assuming the obligations of the Company hereunder, shall either (a) assume the outstanding Restricted Stock Award or make a substitution on an equitable basis of appropriate Stock of the Company or of the merged, consolidated, or otherwise reorganized corporation which will be issuable in respect to the shares of Stock, or (b) provide that the Restricted Stock Award shall become immediately vested with respect to all the shares of Stock. For purposes of this Agreement a “change in control” shall mean: (i) a dissolution or liquidation of the Company; (ii) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the 

Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Awards are assumed, converted or replaced by the successor corporation, which assumption will be binding on all Participants); (iii) a merger in which the Company is the surviving corporation but after which the stockholders of the Company (other than any stockholder which merges (or which owns or controls another corporation which merges) with the Company in such merger) cease to own their shares or other equity interests in the Company; (iv) the sale of substantially all of the assets of the Company; or (v) any other transaction which qualifies as a “corporate transaction” under Section 424(a) of the Internal Revenue Code of 1986, as amended, wherein the stockholders of the Company give up all of their equity interest in the Company (except for the acquisition, sale or transfer of all or substantially all of the outstanding shares of the Company from or by the stockholders of the Company). 

(c)The Committee has sole authority to determine whether and to what degree the Restricted Stock Award has vested and been earned and is payable and to interpret the terms and conditions of this Agreement and the Plan.

6.  Termination of Employment.  In the event that Participant’s Service Relationship is terminated for any reason, including death or Disability,  and Participant has not yet vested all or part of the Restricted Stock Award pursuant to Section 4, then the Restricted Stock Award, to the extent not vested as of Participant’s termination date, shall be forfeited immediately upon such termination, and Participant shall have no further rights with respect to the Restricted Stock Award or the shares of Stock underlying that portion of the Restricted Stock Award that have not yet vested.  In jurisdictions requiring notice in advance of an effective termination of the Service Relationship, Participant shall be deemed terminated upon the actual cessation of providing services to the Company notwithstanding any required notice period that must be fulfilled before a termination of the Service Relationship can be effective under applicable laws.  Participant expressly acknowledges and agrees that the termination of his or her Service Relationship shall result in forfeiture of the Restricted Stock Award and the shares of Stock to the extent the Restricted Stock Award has not vested as of the date of his or her termination of service or employment.  
7.  Payment of Par Value. As a condition to the delivery to Participant of the shares of Stock subject to this Restricted Stock Award after such shares have vested, Participant authorizes the Company to deduct from compensation due to Participant from the Company or Participant’s employer, if different (the “Employer”), an amount equal to the par value of the shares of Stock to be issued hereunder.  Such withholding shall be deducted from Participant’s compensation payable on the Company’s or the Employer’s regularly scheduled payroll date immediately prior to each vesting date of the shares of Stock, as set forth in the Notice and in this Agreement, unless otherwise determined by the Committee.  As of the date of this Agreement, the par value for one share of the Company’s common stock is $.001.
8.    Settlement of Restricted Stock Award.  The Company shall not be obligated to deliver any shares of Stock hereunder for such period as may be required by it in order to comply with applicable federal or state statutes, laws and regulations.
9.    No Acquired Rights.  Participant agrees and acknowledges that: 
(a)the Plan is discretionary in nature and that the Company can amend, cancel, or terminate it at any time;

(b)the grant of this Restricted Stock Award under the Plan is voluntary and occasional and does not create any contractual or other right to receive future grants of any Restricted Stock Awards or 

benefits in lieu of any Restricted Stock Awards, even if Restricted Stock Awards have been granted repeatedly in the past and regardless of any reasonable notice period mandated under local law;

(c)the value of this Restricted Stock Award is an extraordinary item of compensation which is outside the scope of Participant’s employment contract, if any;

(d)this Restricted Stock Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating termination, severance, resignation, redundancy, end of service payments, bonuses, long-service awards, pension, retirement benefits, or similar payments;

(e)this Restricted Stock Award shall expire upon termination of Participant’s Service Relationship for any reason except as may otherwise be explicitly provided in the Plan and this Agreement;

(f)the future value of the shares of Stock awarded under the Plan is unknown and cannot be predicted with certainty;

(g)no claim or entitlement to compensation or damages arises from the termination of this Restricted Stock Award or diminution in value of this Restricted Stock Award or shares of Stock purchased under the Plan and Participant irrevocably releases the Company  from any such claim; and

(h)Participant’s participation in the Plan shall not create a right to further employment with the Company and shall not interfere with the ability of the Company to terminate Participant’s Service Relationship at any time, with or without cause.

10.  Escrow.
(a)Until the shares have vested, the Company’s Secretary or such other escrow holder as the Company may appoint, shall retain custody of the stock certificates or book-entry shares representing the shares of Stock subject to the Restricted Stock Award.

(b)Participant agrees that simultaneously with Participant’s execution of this Agreement, he or she will execute stock powers in favor of the Company with respect to the shares of Stock granted hereunder in the form provided by the Company and that he or she will promptly deliver such stock powers to the Company.  

(c)When shares of Stock vest and the Company delivers to Participant certificates for shares of Stock, the Company also will return to Participant the stock powers related to such shares held by the Company.

11.    Tax Withholding.
(a)Participant is responsible for, and by accepting this Restricted Stock Award agrees to bear, all taxes of any nature, including withholding taxes, interest or penalties arising out of the grant of this Restricted Stock Award, the vesting of this Restricted Stock Award or the subsequent sale of the Shares, that are legally imposed upon Participant in connection with this Restricted Stock Award, and the Company does not assume, and will not be liable to any party for, any cost or liability arising in connection with such tax liability legally imposed on Participant.  The Company has not provided any tax advice with respect to this Restricted Stock Award or the disposition of the Shares.  Participant should obtain advice from an appropriate independent professional adviser with respect to the taxation implications of any aspect of this Restricted 

Stock Award, including the grant or vesting of this Restricted Stock Award or the subsequent sale of any Shares.

(b)In the event that the Company or the Participant’s employer, including any Subsidiary qualified to deduct tax at source (the “Employer”), is required to withhold any amount (including in connection with income tax, employment or payroll taxes, social security contributions or other similar amounts, with such obligation in aggregate referred to herein as the “Tax Items”) as a result of any event occurring in connection with this Restricted Stock Award, Participant shall make a cash, check or wire payment to the Company as necessary to cover all applicable Tax Items at or prior to the time the event giving rise to the Tax Items occurs; or (a) the Employee can elect a “sell-to-cover” option where the employee sells a portion of their vested shares to pay the tax liability, (b) elect a “same day sale” option where the employee sells all of their vested shares of which a portion of the proceeds will be used to pay the tax liability, (c) the Company or the Employer has the right, and Participant in accepting this Restricted Stock Award explicitly authorizes the Company, to deduct an amount equal to the Tax Items from the Participant’s compensation or (d) the Company may establish alternative procedures to ensure satisfaction of all applicable Tax Items arising in connection with this Restricted Stock Award.  The Participant will receive a cash refund for any payment of cash or fraction of a surrendered share not necessary to satisfy the Tax Items.

(c)Participant acknowledges and agrees that the ultimate liability for any tax-related item legally due by Participant is and remains Participant’s responsibility and that the Company and or the Employer (a) make no representations nor undertakings regarding the treatment of any such tax items in connection with any aspect of this Restricted Stock Award, including the grant or vesting of this Restricted Stock Award or the subsequent sale of the Shares acquired from this Restricted Stock Award; and (b) do not commit to structure the terms or any aspect of this Restricted Stock Award to reduce or eliminate the Participant’s liability for such tax items.  The Company may refuse to deliver the Shares if Participant fails to comply with Participant’s obligations in connection with the satisfaction of the Tax Items.

12.  Code Section 83(b) Election.  Participant agrees to notify the Company immediately in writing in the event that Participant makes an election under Section 83(b) of the Code (or any successor provision) or under any corresponding provision of state or local tax law with respect to the Restricted Stock Award.  Upon making any such election, Participant agrees to pay or make adequate provisions for the withholding of Tax Items resulting from of such election.  Such withholding may be deducted from any compensation due to Participant from the Company.
13.  Administration.  The authority to construe and interpret this Agreement and the Plan, and to administer all aspects of the Plan, shall be vested in the Committee (as such term is defined in the Plan), and the Committee shall have all powers with respect to this Agreement as are provided in the Plan.  Any interpretation of this Agreement by the Committee and any decision made by it with respect to this Agreement is final and binding.
14.  Adjustments Upon Changes in Capitalization.  In the event of any change in the outstanding Stock of the Company by reason of stock dividends, recapitalization, mergers, consolidations, split-up, combinations or exchanges of shares and the like, the number and kind of shares subject to this Restricted Stock Award immediately prior to such event shall be appropriately adjusted by the Board in accordance with the terms of the Plan, and such adjustment shall be conclusive.
15.  Entire Agreement; Amendment; Binding Effect; Governing Law; Plan Controls.  The Plan is incorporated herein by reference.  The Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements 

of the Company and Participant with respect to the subject matter hereof, and may not be modified adversely to Participant's interest except by means of a writing signed by the Company and Participant. The waiver by the Company of a breach of any provision of this Agreement by Participant shall not operate or be construed as a waiver of any subsequent breach by Participant. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective executors, administrators, next-of-kin, successors and assigns. This Agreement is governed by the laws of the state of Delaware.  In the event of any conflict between the terms and provisions of the Plan and this Agreement, the Plan terms and provisions shall govern.  Capitalized terms used but not defined in this Agreement have the meanings assigned to them in the Plan.  Certain other important terms governing this Agreement are contained in the Plan. 
16.  Notices.  All notices and other communications of any kind which either party to this Agreement may be required or may desire to serve on the other party hereto in connection with this Agreement shall be in writing and may be delivered by personal service or by registered or certified mail, return receipt requested, deposited in the United States mail with the postage thereon fully prepaid, addressed to the parties at their respective addresses set forth in the Notice of Restricted Stock Award.  Service of any such notice or other communication so made by mail shall be deemed complete on the date of actual delivery as shown by the addressee’s registry or certification receipt or at the expiration of the third (3rd) business day after the date of mailing, whichever is earlier in time.  Either party may from time to time by notice in writing served upon the other as aforesaid, designate a different mailing address or a different person to which such notices or other communications are thereafter to be addressed or delivered. 
17.  Severability.  The provisions of this Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the remaining provisions shall nevertheless be binding and enforceable.
18.  Counterparts; Further Instruments. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  The parties hereto agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this Agreement.

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