Document:

EX-10.2 Supplemental Executive Retirement Plan

 

Exhibit 10.2

LANDSTAR SYSTEM, INC.

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

As Amended and Restated Effective January 1, 2008

     In recognition of the valuable services provided to Landstar System, Inc., and its
subsidiaries, by its key employees, the Board of Directors adopted this Plan to provide
additional retirement benefits to those individuals whose benefits under the Company’s
qualified retirement plan are restricted by operation of the provisions of the Internal
Revenue Code of 1986, as amended. The Plan was originally effective February 1, 1994 and
was amended and restated by the Company as of January 1, 1999. The Company now wishes to
amend and restate the Plan effective January 1, 2008, to bring it into compliance with Code
Section 409A and the regulations issued thereunder. The Company intends that the Plan shall
at all times be maintained on an unfunded basis for federal income tax purposes under the
Code and administered as a non-qualified, “top hat” plan exempt from the substantive
requirements of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).
The Plan, as amended, shall provide benefits under the terms and conditions hereinafter set
forth. This Plan also reflects the transfer sponsorship of the Plan from Landstar System,
Inc. to Landstar System Holdings, Inc. effective February 25, 2008.

     This January 1, 2008 amendment and restatement shall apply to all amounts credited
under Section 3.1 on or after January 1, 2005, but shall not affect Grandfathered Accounts
(as defined below), which shall continue to be subject to, and governed by, the terms of the
Plan as in effect on December 31, 2004.

ARTICLE 1

Definitions

	1.1.	 	“Accrued Benefit” means the balance of a Participant’s Individual Account maintained pursuant
to Article 3 hereof.
	 
	1.2.	 	“Beneficiary” means the person(s) designated by a Participant to receive any benefits payable
under this Plan subsequent to the Participant’s death. In the event a Participant has not
filed a Beneficiary designation with the Employer, the Beneficiary shall be the Participant’s
surviving spouse or, if there is no surviving spouse, the Participant’s estate.
	 
	1.3.	 	“Board” means the Board of Directors of Landstar System, Inc. Effective February 25, 2008,
“Board” means the Board of Directors of Landstar System Holdings, Inc.
	 
	1.4.	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	1.5.	 	“Committee” means the administrative committee appointed by the Board to administer the
Savings Plan.

 

 

	1.6.	 	“Company” means Landstar System, Inc, a Delaware corporation, and any successor in interest
thereto that agrees to assume the Plan. Effective February 25, 2008, “Company” means Landstar
System Holdings, Inc., a Delaware corporation, and any successor in interest thereto that
agrees to assume the Plan.
	 
	1.7.	 	“Deferral Contributions” means a Participant’s deferred contributions under Section 3.2 of
the Plan to a maximum of 75% of compensation (as defined in the Savings Plan but without
regard to the limits imposed by Code Section 401(a)(17)) minus the amount of Savings Plan
Deferral Contributions made by that Participant. “Savings Plan Deferral Contributions” means
the deferred contributions under the Savings Plan.
	 
	1.8.	 	“Effective Date” means February 1, 1994. “Amendment Effective Date” means January 1, 2008.
	 
	1.9.	 	“Employer” means the Company and each subsidiary that adopts the Plan pursuant to the
authorization of the Board. An Employer, other than the Company, may terminate the Plan only
as to its employees and a subsidiary’s status as an “Employer” may be revoked by the Board in
which case the Plan shall be deemed terminated only as to such subsidiary’s employees.
	 
	1.10.	 	“Employee” means any individual employed on a regular basis by the Employer in the capacity
of an officer of the Company or of any other Employer; provided, however, that to qualify as
an “Employee” for purposes of the Plan, the individual must be a member of a group of “key
management or other highly compensated employees” within the meaning of Sections 201, 301 and
401 of the Employee Retirement Income Security of 1974, as amended.
	 
	1.11.	 	“Grandfathered Account” means that portion of an Employee’s Individual Account that was
credited as of December 31, 2004, and shall include earnings credited to such account under
the terms of the Plan irrespective of when credited. The Grandfathered Account shall be
calculated in accordance with Code Section 409A. The Company shall maintain a separate record
of Grandfathered Accounts. All Grandfathered Accounts shall be subject to, and governed by,
the terms of the Plan as in effect on December 31, 2004, the significant provisions of which
are attached hereto as Appendix A.
	 
	1.12.	 	“Individual Account” means the account established pursuant to Section 3.1.
	 
	1.13.	 	“Maximum Deferral Contribution” means the Savings Plan Deferral Contributions of a
Participant equal to the lesser of (i) 75% of compensation (as defined in the Savings Plan)
plus the maximum additional contribution that the Participant is eligible to make under Code
Section 414(v) or (ii) the dollar limitation imposed by Code Section 402(g) plus the maximum
additional contribution that the Participant is eligible to make under Code Section 414(v).
	 
	1.14.	 	“Matching Contributions” means the matching contributions under the Savings Plan.

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	1.15.	 	“Participant” means any Employee who satisfies the eligibility requirements set forth in
Section 2. In the event of the death or incompetency of a Participant, the term shall mean
his personal representative or guardian.
	 
	1.16.	 	“Plan” means the Landstar System, Inc. Supplemental Executive Retirement Plan as set forth
herein and as the same may be amended from time to time.
	 
	1.17.	 	“Plan Year” means the calendar year.
	 
	1.18.	 	“Savings Plan” means the Landstar System, Inc. 401(k) Savings Plan.
	 
	1.19.	 	“Termination of Employment” shall have the same meaning as “separation from service” under
Code Section 409A and the regulations thereunder.

ARTICLE 2

Eligibility and Elections

	2.1.	 	Eligibility. Each Employee who is a Participant in the Plan on the Amendment
Effective Date shall continue to participate and each other Employee shall be eligible to
participate on or after the first day of the month following such eligibility by filing an
election with the Committee in accordance with the provisions of Section 3.2 hereof.
	 
	2.2.	 	Election as to Form of Payment. For each Plan Year for which a Participant elects to
make Deferral Contributions, the Participant shall make an irrevocable election as to the form
in which amounts credited to his or her Individual Account for such Plan Year will be paid, as
follows:

	 	(a)	 	Single sum payment; or
	 
	 	(b)	 	Annual installments over a period of ten (10) years in an amount equal to a
fraction of the Individual Account as of the date of each installment distribution, as
follows: 1/10 in the first year, 1/9 in the second year, 1/8 in the third year, and so
on until the entire remaining balance is paid in the tenth year.

	2.3.	 	Election as to Time of Payment. For each Plan Year for which a Participant elects to
make Deferral Contributions, the Participant shall make an irrevocable election as to when
amounts credited to his or her Individual Account for such Plan Year will be paid, as follows:

	 	(a)	 	Within 30 days following the six-month anniversary of the Participant’s
Termination of Employment; or
	 
	 	(b)	 	Within 30 days of March 1 of the year following the year in which the
Participant’s Termination of Employment occurs (if later than the date that is six
months following the Participant’s Termination of Employment).

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ARTICLE 3

Individual Account

	3.1.	 	Creation of Individual Account. The Employer shall create and maintain an unfunded
account (the “Individual Account”) for each Participant electing to contribute to the Plan
under Section 3.2 to which it shall credit the amounts described in this Article 3.
	 
	3.2.	 	Election to Make Deferral Contributions.

	 	(a)	 	For each Plan Year, a Participant may irrevocably elect, in the manner provided
by the Committee, to have the Employer credit to the Participant’s Individual Account
the amount of Deferral Contributions (which may be expressed as a percentage of
compensation) that the Participant elects to contribute to the Plan with respect to
that Plan Year; provided, however, that no amount may be credited to a Participant’s
Individual Account pursuant to this Section 2.2 unless the Participant made the Maximum
Deferral Contribution to the Savings Plan for such Plan Year. If the Participant
elects to have an amount credited to the Individual Account for a Plan Year, the amount
of the Participant’s compensation otherwise payable from the Employer with respect to
that Plan Year shall be reduced by a corresponding amount.
	 
	 	(b)	 	A Participant’s election with respect to a Plan Year must be made no later than
the December 31 preceding the Plan Year in which the compensation would have been
earned by the Participant; provided, however, that for the first Plan Year in which a
Participant is eligible to participate in the Plan, such election may be made at any
time during the 30 day period commencing on the date of eligibility as determined under
Section 2.1. Any election by a Participant pursuant to this Section 2.2 shall be
irrevocable and may not be modified in any respect.
	 
	 	(c)	 	If the Participant fails to make any election for any Plan Year, the
Participant’s election in effect for the prior Plan Year as to the amount of Deferral
Contributions, if any, and the form of payment applicable to Deferral Contributions,
shall continue in effect for such Plan Year.

	3.3.	 	Matching Contributions. For each Plan Year, the Employer shall credit the
Participant’s Individual Account with an amount equal to the Matching Contributions that would
have been contributed by the Employer under the Savings Plan on behalf of the Participant had
the Participant actually been able to contribute that portion of the amount specified in
Section 3.2 hereof to the Savings Plan that otherwise would have received Matching
Contributions, plus any Matching Contributions not made under the Savings Plan with respect to
Savings Plan Deferral Contributions due to limits under the Savings Plan.

	3.4.	 	Earnings. The amount credited to a Participant’s Individual Account shall be deemed
to be invested in the investment funds in the proportions the Participant elects in a deemed
investment election in accordance with such procedures as are specified by the Committee.
Notwithstanding the foregoing, no contributions or new investments may be

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	 	 	directed into the Company stock fund on or after October 1, 2004, but amounts invested in
the Company stock fund as of October 1, 2004, shall continue to be invested in such fund
subject to any subsequent election by the Participant to transfer amounts out of the Company
stock fund. During each Plan Year, the Employer shall credit the Participant’s Individual
Account with interest, earnings or appreciation (less losses and depreciation) with respect
to the then balance of the Participant’s Individual Account, equal to the actual investment
results of the Participant’s deemed investment elections. Notwithstanding the Participant’s
investment elections under this Plan, the Company shall be under no obligation to actually
invest the amounts credited to the Participant’s Individual Account in such manner, or in
any manner, and such investment elections shall be used solely to determine the amounts by
which the balance credited to the Participant’s Individual Account shall be adjusted.

ARTICLE 4

Distributions of Retirement Benefits

	4.1.	 	Payment of Individual Account. The amount credited to the Participant’s Individual
Account under Article 3 shall, upon the Participant’s Termination of Employment, be paid in
the form elected by the Participant under Section 2.2 and at the same time elected by the
Participant under Section 2.3. Such distribution shall be equal to the total amount credited
to the Participant’s Individual Account as of the date of distribution and shall include any
additional credit to the Participant’s Individual Account made after such termination under
Section 3.2 on account of Deferral Contributions made during the Plan Year in which the
Participant has a Termination of Employment for any reason.

	4.2.	 	Separate Payments. For purposes of Code Section 409A, each payment under this Plan
shall be treated as a separate payment.

	4.3	 	Distributions of Grandfathered Account. The amount credited to the Participant’s
Grandfathered Account shall, upon the Participant’s termination of employment, be paid in the
same form and at the same time as the benefit payable to the Participant under the Savings
Plan at termination of employment; provided, however, that, notwithstanding the form and
timing of the payment of benefits under the Savings Plan, the Participant may elect to receive
a single sum payment on March 1 of the Plan Year following the Plan Year in which the
Participant terminates employment for any reason, by making an election prior to the date on
which such termination occurred and benefits under the Savings Plan are paid or commence, in
the manner specified by the Committee. Such distribution shall be equal to the total amount
credited to the Participant’s Grandfathered Account as of the date of distribution and shall
include any additional credit to the Participant’s Grandfathered Account made after such
termination under Section 3.4.

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ARTICLE 5

Death Benefit

	5.1.	 	In the event of a Participant’s death prior to the commencement of the Participant’s benefit
payments pursuant to Article 4, his Beneficiary will receive a lump sum distribution equal to
the balance of the Participant’s Individual Account on the date of the Participant’s death.
The payment to the Beneficiary will be made as soon as practicable following the completion of
the valuation for the date on which the Participant died. If the Participant is due an
additional credit to the Participant’s Individual Account for the Plan Year in which the
balance of the Individual Account becomes payable hereunder, the additional credit will be
paid to the Participant’s Beneficiary as soon as practicable following the Plan Year-end
valuation. In the event of a Participant’s death after the commencement of the Participant’s
benefits in annual installments, his Beneficiary will receive payments at the same time and in
the same manner as if the Participant had survived.

ARTICLE 6

Vesting

	6.1.	 	The balance of a Participant’s Individual Account shall be 100% vested at all times.

ARTICLE 7

Funding

	7.1.	 	The Board may, but shall not be required to, authorize the establishment of a trust by the
Company to serve as the funding vehicle for the benefits described herein. In any event, the
Employer’s obligations hereunder shall constitute a general, unsecured obligation, payable
solely out of its general assets, which may include the assets of any such trust established
for purposes of the Plan, but no Participant shall have any right to any specific assets of
the Employer.

ARTICLE 8

Administration

	8.1.	 	The Committee shall have full power and authority to interpret and administer this Plan and
the Committee’s actions in doing so shall be final, conclusive and binding on all persons
interested in the Plan. The Committee may from time to time adopt rules and regulations
governing this Plan. Any action required of the Company, the Employer or the Board under the
Plan shall be made in the Company’s, the Employer’s or the Board’s sole discretion which need
not be uniformly applied to similarly situated persons. Any such action shall be final,
conclusive and binding on all persons interested in the Plan.

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ARTICLE 9

Amendment

	9.1.	 	The Board shall have the right to amend or modify the Plan at any time in any manner
whatsoever; provided, however, that no amendment shall operate to reduce the Accrued Benefit
which any Participant who is participating in the Plan or entitled to a benefit payment at the
time the amendment is adopted would otherwise receive hereunder.

ARTICLE 10

Termination

	10.1.	 	Continuance of the Plan is completely voluntary and is not assumed as a contractual
obligation of the Employer. The Board shall have the right at any time to discontinue the
Plan; provided, however, that the termination shall not operate to reduce the Accrued Benefit
which any Participant who is participating in the Plan or entitled to a benefit payment at the
time the termination is approved would otherwise receive hereunder. If the Plan is
terminated, Participants shall be entitled to a distribution of their benefit under the Plan
at the time of termination of the Plan if on account of an event described in Treas. Reg.
§1.409A-3(j)(4)(ix)(A), (B), (C) or (D) and the requirements, as applicable, of such
regulations are met with respect to the termination of the Plan and distribution of benefits
hereunder. Otherwise, distribution shall occur in accordance with the terms of the Plan.

ARTICLE 11

Miscellaneous

	11.1.	 	Rights of Participants. Nothing contained herein (a) shall be deemed to exclude a
Participant from any compensation, bonus, pension, insurance, severance pay or other benefit
to which the Participant otherwise is or might become entitled to as an Employee or (b) shall
be construed as conferring upon an Employee the right to continue in the employ of the
Employer as an executive or in any other capacity.

	11.2.	 	Effect on Other Plans. Any amounts payable by the Employer hereunder shall not be
deemed salary or other compensation to a Participant for the purposes of computing benefits to
which the Participant may be entitled under any other arrangement established by the Employer
for the benefit of its Employees.

	11.3.	 	Binding Nature of Plan. The rights and obligations created hereunder shall be
binding on a Participant’s heirs, executors and administrators and on the successors and
assigns of the Employer.

	11.4.	 	Governing Law. The Plan shall be construed in accordance with and governed by the
laws of the State of Florida.

	11.5.	 	No Assignment. The rights of any Participant under this Plan are personal and may
not be assigned, transferred, pledged or encumbered. Any attempt to do so shall be void.

	11.6.	 	No Liability. Neither the Company, the Employer nor any member of the Board or the
Committee shall be responsible or liable in any manner to any Participant, Beneficiary or any
person claiming through them for any benefit or action taken or omitted in connection with the
granting of benefits, the continuation of benefits or the interpretation and administration of
this Plan.

	11.7.	 	Section 409A. The Plan is intended to comply with the applicable requirements of
Code Section 409A and its corresponding regulations and related guidance, and shall be
administered in accordance with Code Section 409A to the extent Code Section 409A applies to
the Plan. To the extent that any provision of the Plan would cause a conflict with the
requirements of Code Section 409A, or would cause the administration of the Plan to fail to
satisfy the requirements of Code Section 409A, such provision shall be deemed null and void to
the extent permitted by applicable law.

-7-EX-10.1 Form of Incentive Stock Option Agreement

 

Exhibit 10.1

Employees

Option No.: _______

MAKO SURGICAL CORP.

2008 OMNIBUS INCENTIVE PLAN

INCENTIVE STOCK OPTION AGREEMENT

MAKO Surgical Corp., a Delaware corporation (the “Company”), hereby grants an option to purchase
shares of its common stock, $.001 par value, (the “Stock”) to the optionee named below. The terms
and conditions of the option are set forth in this cover sheet, in the attachment, and in the
Company’s 2008 Omnibus Incentive Plan (the “Plan”).

Grant Date: __________________, 200__

Name of Optionee: _____________________________

Optionee’s Employee Identification Number: ____-___-_____

Number of Shares Covered by Option: ______________

Option Price per Share: $___.___(At least 100% of Fair Market Value; 110% of Fair Market Value
for 10% stockholders)

Vesting Start Date: _________________, 200__ (If different from Grant Date)

Vesting Schedule

     In the event that the Schedule set forth below would result in vesting of a fractional number
of options, the number of options that will vest will be rounded down to the nearest whole share,
and the last scheduled vesting tranche will be rounded up, to the extent necessary, so that the
full number of options will have vested.

	 	 	 
	Vesting Date

	 	Number of options that vest, as a percentage of the number of options granted

[MAKO TO INSERT VESTING SCHEDULE, such as:

One year anniversary of Vesting Start Date __%

Two year anniversary of Vesting Start Date ___%

Etc.]

  

 

     By signing this cover sheet, you agree to all of the terms and conditions described in the
attached Agreement and in the Plan, a copy of which is also attached. You acknowledge that you
have carefully reviewed the Plan, and agree that the Plan will control in the event any provision
of this Agreement should appear to be inconsistent.

	 	 	 	 	 
	Optionee:
	 	 	 	 
	 	 	 
	 	 	(Signature)

	 
	 	 	 	 
	Company:
	 	 	 	 
	 	 	 
	 	 	(Signature)

	 

	 	Title:	 
	 

	 	 	 

Attachment

This is not a stock certificate or a negotiable instrument.

2

 

MAKO SURGICAL CORP.

2008 OMNIBUS INCENTIVE PLAN

INCENTIVE STOCK OPTION AGREEMENT

	 	 	 
	Incentive Stock Option

	 	This option is intended to be an
incentive stock option under
Section 422 of the Internal Revenue
Code and will be interpreted
accordingly. If you cease to be an
employee of the Company, its parent
or a subsidiary (“Employee”) but
continue to provide Service, this
option will be deemed a
nonstatutory stock option three
months after you cease to be an
Employee. In addition, to the
extent that all or part of this
option exceeds the $100,000 rule of
section 422(d) of the Internal
Revenue Code, this option or the
lesser excess part will be deemed
to be a nonstatutory stock option.
	 
	 	 
	Vesting

	 	This option is only exercisable
before it expires and then only
with respect to the vested portion
of the option. Subject to the
preceding sentence, you may
exercise this option, in whole or
in part, to purchase a whole number
of vested shares by following the
procedures set forth in the Plan
and below in this Agreement.
	 
	 	 
	 

	 	No additional shares of Stock will
vest after your Service has
terminated for any reason.
	 
	 	 
	Term

	 	Your option will expire in any
event at the close of business at
Company headquarters on the day
before the 10th anniversary of the
Grant Date, as shown on the cover
sheet. Your option will expire
earlier if your Service terminates,
as described below. [Note: if
Grantee is a 10% stockholder, the
term can’t be longer than 5 years.]
	 
	 	 
	Regular Termination

	 	If your Service terminates for any
reason, other than death,
Disability or Cause, then your
option will expire at the close of
business at Company headquarters on
the 90th day after your termination
date.
	 
	 	 
	Termination for 

Cause

	 	If your Service is terminated for
Cause, then you shall immediately
forfeit all rights to your option
and the option shall immediately
expire.
	 
	 	 
	Death

	 	If your Service terminates because
of your death, then your option
will expire at the close of
business at Company headquarters on
the date twelve (12) months after
the date of death. During that
twelve month period, your estate or
heirs may exercise the vested
portion of your option.

3

 

	 	 	 
	 
	 	 
	 

	 	In addition, if you die during the
90-day period described in
connection with a regular
termination (i.e., a termination of
your Service not on account of your
death, Disability or Cause), and a
vested portion of your option has
not yet been exercised, then your
option will instead expire on the
date twelve (12) months after your
termination date. In such a case,
during the period following your
death up to the date twelve (12)
months after your termination date,
your estate or heirs may exercise
the vested portion of your option.
	 
	 	 
	Disability

	 	If your Service terminates because
of your Disability, then your
option will expire at the close of
business at Company headquarters on
the date twelve (12) months after
your termination date.
	 
	 	 
	Leaves of Absence

	 	For purposes of this option, your
Service does not terminate when you
go on a bona fide employee leave of
absence that was approved by the
Company in writing, if the terms of
the leave provide for continued
Service crediting, or when
continued Service crediting is
required by applicable law.
However, your Service will be
treated as terminating 90 days
after you went on employee leave,
unless your right to return to
active work is guaranteed by law or
by a contract. Your Service
terminates in any event when the
approved leave ends unless you
immediately return to active
employee work.
	 
	 	 
	 

	 	The Company determines, in its sole
discretion, which leaves count for
this purpose, and when your Service
terminates for all purposes under
the Plan.
	 
	 	 
	Notice of Exercise

	 	When you wish to exercise this
option, you must notify the Company
by filing the proper “Notice of
Exercise” form at the address given
on the form. Your notice must
specify how many shares you wish to
purchase. Your notice must also
specify how your shares of Stock
should be registered (in your name
only or in your and your spouse’s
names as joint tenants with right
of survivorship). The notice will
be effective when it is received by
the Company.
	 
	 	 
	 

	 	If someone else wants to exercise
this option after your death, that
person must prove to the Company’s
satisfaction that he or she is
entitled to do so.
	 
	 	 
	Form of Payment

	 	When you submit your notice of
exercise, you must include payment
of the option price for the shares
you are purchasing. Payment may be
made in one (or a combination) of
the following forms:

	 	•	 	Cash, your personal check,
a cashier’s check, a money order or
another cash equivalent acceptable
to the Company.

4

 

	 	•	 	Shares of Stock withheld by
the Company from the shares of
Stock otherwise to be received,
with such withheld shares having an
aggregate Fair Market Value on the
date of exercise equal to the
aggregate option price.
	 
	 	•	 	Shares of Stock which have
already been owned by you and which
are surrendered to the Company. The
Fair Market Value of the shares,
determined as of the effective date
of the option exercise, will be
applied to the option price.
	 
	 	•	 	By delivery (on a form
prescribed by the Company) of an
irrevocable direction to a licensed
securities broker acceptable to the
Company to sell Stock and to
deliver all or part of the sale
proceeds to the Company in payment
of the aggregate option price and
any withholding taxes.

	 	 	 
	Withholding Taxes

	 	You will not be allowed to exercise
this option unless you make
acceptable arrangements to pay any
withholding or other taxes that may
be due as a result of the option
exercise or sale of Stock acquired
under this option. In the event
that the Company determines that
any federal, state, local or
foreign tax or withholding payment
is required relating to the
exercise or sale of shares arising
from this grant, the Company shall
have the right to require such
payments from you, or withhold such
amounts from other payments due to
you from the Company or any
Affiliate.
	 
	 	 
	Transfer of Option

	 	During your lifetime, only you (or,
in the event of your legal
incapacity or incompetency, your
guardian or legal representative)
may exercise the option. You
cannot transfer or assign this
option. For instance, you may not
sell this option or use it as
security for a loan. If you
attempt to do any of these things,
this option will immediately become
invalid. You may, however, dispose
of this option in your will or it
may be transferred upon your death
by the laws of descent and
distribution.
	 
	 	 
	 

	 	Regardless of any marital property
settlement agreement, the Company
is not obligated to honor a notice
of exercise from your spouse, nor
is the Company obligated to
recognize your spouse’s interest in
your option in any other way.
	 
	 	 
	Retention Rights

	 	Neither your option nor this
Agreement give you the right to be
retained by the Company (or any
Parent, Subsidiaries or Affiliates)
in any capacity. The Company (and
any Parent, Subsidiaries or
Affiliates) reserve the right to
terminate your Service at any time
and for any reason.

5

 

	 	 	 
	 
	 	 
	Shareholder Rights

	 	You, or your estate or heirs, have
no rights as a shareholder of the
Company until a certificate for
your option’s shares has been
issued (or an appropriate book
entry has been made). No
adjustments are made for dividends
or other rights if the applicable
record date occurs before your
stock certificate is issued (or an
appropriate book entry has been
made), except as described in the
Plan.
	 
	 	 
	Forfeiture of Rights

	 	If you should take actions in
competition with the Company, the
Company shall have the right to
cause a forfeiture of your rights,
including, but not limited to, the
right to cause: (i) a forfeiture of
any outstanding option, and (ii)
with respect to the period
commencing twelve (12) months prior
to your termination of Service with
the Company and ending twelve (12)
months following such termination
of Service (A) a forfeiture of any
gain recognized by you upon the
exercise of an option or (B) a
forfeiture of any Stock acquired by
you upon the exercise of an option
(but the Company will pay you the
option price without interest).
Unless otherwise specified in an
employment or other agreement
between the Company and you, you
take actions in competition with
the Company if you directly or
indirectly, own, manage, operate,
join or control, or participate in
the ownership, management,
operation or control of, or are a
proprietor, director, officer,
stockholder, member, partner or an
employee or agent of, or a
consultant to any business, firm,
corporation, partnership or other
entity which competes with any
business in which the Company or
any of its Affiliates is engaged
during your employment or other
relationship with the Company or
its Affiliates or at the time of
your termination of Service. Under
the prior sentence, ownership of
less than 1% of the securities of a
public company shall not be treated
as an action in competition with
the Company.
	 
	 	 
	Adjustments

	 	In the event of a stock split, a
stock dividend or a similar change
in the Stock, the number of shares
covered by this option and the
option price per share shall be
adjusted (and rounded down to the
nearest whole number) if required
pursuant to the Plan. Your option
shall be subject to the terms of
the agreement of merger,
liquidation or reorganization in
the event the Company is subject to
such corporate activity.
	 
	 	 
	Applicable Law

	 	This Agreement will be interpreted
and enforced under the laws of the
State of Delaware, other than any
conflicts or choice of law rule or
principle that might otherwise
refer construction or
interpretation of this Agreement to
the substantive law of another
jurisdiction.
	 
	 	 
	The Plan

	 	The text of the Plan is
incorporated in this Agreement by
reference. Certain capitalized
terms used in this Agreement are
defined in the Plan, and have the
meaning set forth in the Plan.
This Agreement and the Plan
constitute the entire understanding
between you and the Company
regarding this option. Any prior
agreements, commitments or
negotiations concerning this option
are superseded.

6

 

	 	 	 
	 
	 	 
	Data Privacy

	 	In order to administer the Plan,
the Company may process personal
data about you. Such data includes
but is not limited to the
information provided in this
Agreement and any changes thereto,
other appropriate personal and
financial data about you such as
home address and business addresses
and other contact information,
payroll information and any other
information that might be deemed
appropriate by the Company to
facilitate the administration of
the Plan.
	 
	 	 
	 

	 	By accepting this option, you give
explicit consent to the Company to
process any such personal data.
You also give explicit consent to
the Company to transfer any such
personal data outside the country
in which you work or are employed,
including, with respect to non-U.S.
resident Optionees, to the United
States, to transferees who shall
include the Company and other
persons who are designated by the
Company to administer the Plan.
	 
	 	 
	Consent to Electronic Delivery

	 	The Company may choose to deliver
certain statutory materials
relating to the Plan in electronic
form. By accepting this option
grant you agree that the Company
may deliver the Plan prospectus and
the Company’s annual report to you
in an electronic format. If at any
time you would prefer to receive
paper copies of these documents, as
you are entitled to, the Company
would be pleased to provide copies.
Please contact [ ] at
[ ] to request paper
copies of these documents.

By signing the cover sheet of this Agreement, you agree to all of the terms and conditions described above and in the Plan.

7

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