Document:

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Exhibit 10.2

REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) dated as of June 11, 2007 is entered into
by and between Aspect Medical Systems, Inc., a Delaware corporation (the “Company”), and Boston
Scientific Corporation, a Delaware corporation (“BSC”).

Recitals

     WHEREAS, the Company and BSC have entered into a Termination and Repurchase Agreement of even
date herewith (the “Repurchase Agreement”); and

     WHEREAS, the Company and BSC desire to provide for certain arrangements with respect to the
registration of shares of common stock of the Company under the Securities Act of 1933.

     NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this
Agreement, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree
as follows:

     1. Certain Definitions.

     As used in this Agreement, the following terms shall have the following respective meanings:

     “Affiliate” shall have the meaning assigned to it in Rule 12b-2 of the Exchange Act.

     “Commission” means the Securities and Exchange Commission, or any other federal agency
at the time administering the Securities Act.

     “Common Stock” means the common stock, $0.01 par value per share, of the Company.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any successor
federal statute, and the rules and regulations of the Commission issued under such Act, as they
each may, from time to time, be in effect.

     “person” (whether such term is capitalized or not) means an individual, corporation,
partnership, limited liability company, joint venture, syndicate, person (including, without
limitation, a “person” as defined in Section 13(d)(3) of the Exchange Act), trust, association or
entity.

     “Prospectus” means the prospectus included in any Registration Statement, as amended
or supplemented by an amendment or prospectus supplement, including post-effective amendments, and
all material incorporated by reference or deemed to be incorporated by reference in such
Prospectus.

     “Purchaser Indemnified Persons” shall have the meaning specified in Section 2.4(a).

 

 

     “Registrable Shares” means any Shares and any other shares of Common Stock issued in
respect of such Shares (because of stock splits, stock dividends, reclassifications,
recapitalizations or similar events); provided, however, that shares of Common
Stock that are Registrable Shares shall cease to be Registrable Shares (i) upon any sale pursuant
to a Registration Statement or Rule 144 under the Securities Act, (ii) upon any sale in any manner
to a person or entity which, by virtue of Section 3 of this Agreement, is not entitled to the
rights provided by this Agreement, or (iii) if, as of termination of the Call Option (as defined in
the Repurchase Agreement), the Shares held by BSC (less any Shares for which Aspect has exercised
the Call Option) represent less than 10% of the outstanding Common Stock of Aspect.

     “Registration Expenses” means the expenses described in Section 2.3.

     “Registration Statement” means a registration statement filed by the Company with the
Commission for a public offering and sale of securities of the Company (other than a registration
statement on Form S-8 or Form S-4, or their successors, or any other form for a similar limited
purpose, or any registration statement covering only securities proposed to be issued in exchange
for securities or assets of another corporation).

     “Securities Act” means the Securities Act of 1933, as amended, or any successor
federal statute, and the rules and regulations of the Commission issued under such Act, as they
each may, from time to time, be in effect.

     “Shares” means the 6,013,239 shares of Common Stock held of record by BSC as of the
date of this Agreement which (i) are not repurchased by Aspect pursuant to the Repurchase
Agreement, or (ii) with respect to which Aspect has not exercised the Call Option (as defined in
Section 3.2.1 of the Repurchase Agreement).

     2. Registration.

          2.1 Registration Rights.

               (a) At any time on or after December 12, 2007, BSC may request, in writing, that the
Company
effect a registration on Form S-3 (or any successor form) for the purpose of registering for
resale, under the Securities Act, all or any portion of the Registrable Shares then owned by BSC.

               (b) Upon receipt of any request for registration pursuant to Section 2.1(a) of this
Agreement,
the Company shall, as expeditiously as possible, use its best efforts to effect the registration on
Form S-3 (or any successor form) of all Registrable Shares which the Company has been requested to
so register.

               (c) The Company shall not be required to effect more than one (1) registration pursuant to
this Agreement. Any Registration Statement to be filed by the Company hereunder shall permit BSC
to offer and sell, on a delayed or continuous basis pursuant to Rule 415 under the Securities Act
(of any similar rule then in effect), any or all of the Registrable Shares. The Company shall be
required to keep each Registration Statement effective until such date that is the later of (i) the
date when all of the Registrable Shares registered thereunder shall

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have been sold, or (ii) the date when BSC beneficially owns fewer than 10% of the outstanding
shares of Common Stock, provided that in no event shall the Company be required to keep the
Registration Statement effective after the date that is four years from the initial effective date
of such Registration Statement (the “Termination Date”). Thereafter, the Company shall be entitled
to withdraw the Registration Statement and BSC shall have no further right to offer or sell any of
the Registrable Shares pursuant to the Registration Statement. For purposes of the first sentence
of this Section 2.1(c), a Registration Statement shall not be counted until such time as such
Registration Statement has been declared effective by the Commission (unless BSC withdraws its
request for such registration (other than as a result of material information concerning the
business or financial condition of the Company which is first made known to BSC after the date on
which such registration was requested) and elects not to pay the Registration Expenses therefore
pursuant to Section 2.3).

               (d) If at the time of any request to register Registrable Shares by BSC pursuant to Section
2.1(a): (i) the Company is engaged or has plans to engage, within 30 days thereafter, in a
registered public offering, (ii) is engaged in any other activity which, in the good faith
determination of the Company’s Board of Directors (the “Board”), would be adversely affected by the
requested registration or (iii) the filing of a Registration Statement would require premature
disclosure in the Registration Statement (and the Prospectus relating thereto) of material
nonpublic information concerning the Company, its business or prospects or any proposed material
transaction involving the Company, then the Company, upon furnishing a certificate to BSC signed by
an executive officer of the Company stating that for one of the foregoing reasons (which reason
need not be identified), may at its option direct that such request be delayed for a period not in
excess of 75 days from the date of such request; provided, however, that the
Company may not utilize this right more than once in any twelve-month period.

          2.2 Registration Procedures.

               (a) If and whenever BSC requests that the Company effect the registration of the Registrable
Shares under the Securities Act, the Company shall:

                    (i) file with the Commission a Registration Statement on Form S-3
(or any successor form) with
respect to such Registrable Shares, which includes in the Prospectus included therein the “Plan of
Distribution” section in substantially the form attached hereto as Exhibit A, and use its
best efforts to cause that Registration Statement to become effective as soon as possible;

                    (ii) as expeditiously as possible, prepare and file with the
Commission any amendments and
supplements to the Registration Statement and the Prospectus included in the Registration Statement
as may be necessary to comply with the provisions of the Securities Act (including the anti-fraud
provisions thereof) and to keep the Registration Statement effective until the Termination Date;

                    (iii) as expeditiously as possible, furnish to BSC such
reasonable numbers of copies of the
Prospectus, including any preliminary Prospectus, in conformity with the requirements of the
Securities Act, and such other documents as BSC may

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reasonably request in order to facilitate the public sale or other disposition of the
Registrable Shares owned by BSC;

                    (iv) as expeditiously as possible, use its commercially
reasonable efforts to register or
qualify the Registrable Shares covered by the Registration Statement under the securities or Blue
Sky laws of such states as BSC shall reasonably request, and do any and all other acts and things
that may be necessary or desirable to enable BSC to consummate the public sale or other disposition
in such states of such Registrable Shares owned by BSC; provided, however, that the Company shall
not be required in connection with this paragraph (iv) to qualify as a foreign corporation or
execute a general consent to service of process in any jurisdiction;

                    (v) as expeditiously as possible, cause all such Registrable
Shares covered by the
Registration Statement to be listed on each securities exchange or automated quotation system on
which similar securities issued by the Company are then listed;

                    (vi) as expeditiously as possible, notify BSC, after it shall
receive notice thereof, of the
time when such Registration Statement has become effective or a supplement to any Prospectus
forming a part of such Registration Statement has been filed; and

                    (vii) as expeditiously as possible following the effectiveness of
such Registration Statement,
notify BSC of any request by the Commission for the amending or supplementing of such Registration
Statement or Prospectus.

               (b) If the Company has delivered a Prospectus to BSC and after having done so the Prospectus
is amended to comply with the requirements of the Securities Act, the Company shall, as
expeditiously as possible, notify BSC and, if requested, BSC shall immediately cease making offers
of Registrable Shares and return all Prospectuses to the Company. The Company shall promptly
provide BSC with revised Prospectuses and, following receipt of the revised Prospectuses, BSC shall
be free to resume making offers of the Registrable Shares.

               (c) In the event that, in the judgment of the Company, it is advisable to suspend use of a
Prospectus included in a Registration Statement filed by the Company pursuant to this Agreement due
to pending material developments or other events that have not yet been publicly disclosed and as
to which the Company believes public disclosure would be detrimental to the Company, the Company
shall notify BSC to such effect, and, upon receipt of such notice, BSC shall immediately
discontinue any sales of Registrable Shares pursuant to such Registration Statement until BSC has
received copies of a supplemented or amended Prospectus or until BSC is advised in writing by the
Company that the then current Prospectus may be used and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference in such Prospectus.
Notwithstanding anything to the contrary herein, the Company shall not exercise its rights under
this Section 2.2(c) to suspend sales of Registrable Shares for a period in excess of 30 days
consecutively or 60 days in any 365-day period.

          2.3 Allocation of Expenses. The Company will pay all Registration Expenses for all
registrations under this Agreement; provided, however, that if a registration under
Section

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2.1 is withdrawn at the request of BSC (other than as a result of information concerning the
business or financial condition of the Company which is first made known to BSC after the date on
which such registration was requested pursuant to Section 2.1(a)) and if BSC elects not to have
such registration counted as a registration requested under Section 2.1, BSC shall pay the
Registration Expenses of such registration. For purposes of this Section, the term “Registration
Expenses” shall mean all expenses incurred by the Company in complying with this Agreement with
respect to registering the Registrable Shares, including, without limitation, all registration and
filing fees, Nasdaq and exchange listing fees, printing expenses, fees and expenses of counsel for
the Company, compensation of the employees of the Company and the reasonable fees and expenses of
one counsel selected by BSC to represent BSC in connection with registering the Registrable Shares,
state Blue Sky fees and expenses in connection with the Registrable Shares, and the expense of any
special audits incident to or required by any such registration, but excluding brokerage and
selling commissions.

          2.4 Indemnification and Contribution.

               (a) In the event of any registration of any of the Registrable Shares under the Securities Act
pursuant to this Agreement, the Company will indemnify and hold harmless BSC and each of its
Affiliates, and the officers, directors, employees and partners, and each other person, if any, who
controls BSC or its Affiliates within the meaning of the Securities Act or the Exchange Act
(collectively, “Purchaser Indemnified Persons”), against any losses, claims, damages or
liabilities, joint or several, to which BSC Indemnified Persons may become subject under the
Securities Act, the Exchange Act, state securities or Blue Sky laws or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon: (i) any untrue statement or alleged untrue statement of any material fact contained in any
Registration Statement under which such Registrable Shares were registered under the Securities
Act, any preliminary Prospectus or final Prospectus contained in the Registration Statement, or any
amendment or supplement to such Registration Statement, (ii) the omission or alleged omission to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading or (iii) any violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law in connection with any Registration Statement
filed pursuant to this Agreement or any offering contemplated thereby; and the Company will
reimburse BSC Indemnified Persons for any legal or any other expenses reasonably incurred by such
Purchaser Indemnified Person in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the Company will not be liable
to any Purchaser Indemnified Person in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon any untrue statement or omission made in such
Registration Statement, preliminary Prospectus or final Prospectus, or any such amendment or
supplement to such Registration Statement, in reliance upon and in conformity with information
furnished to the Company, in writing, by or on behalf of such Purchaser Indemnified Person for use
in the preparation thereof; provided, further, that the indemnity agreement
contained in this Section 2.4(a) shall not apply to statements made in a preliminary Prospectus to
the extent that those statements were corrected in a later preliminary or final Prospectus or
supplement or amendment thereto that was supplied to BSC Indemnified Person and such Purchaser
Indemnified Person failed to deliver that later preliminary or final Prospectus or amendment or
supplement thereto.

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               (b) In the event of any registration of any of the Registrable Shares under the Securities Act
pursuant to this Agreement, BSC will indemnify and hold harmless the Company, each of its directors
and officers and each person, if any, who controls the Company within the meaning of the Securities
Act or the Exchange Act, against any losses, claims, damages or liabilities, joint or several, to
which the Company, such directors and officers or controlling person may become subject under the
Securities Act, Exchange Act, state securities or Blue Sky laws or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of a material fact contained in any
Registration Statement under which such Registrable Shares were registered under the Securities
Act, any preliminary Prospectus or final Prospectus contained in the Registration Statement, or any
amendment or supplement to the Registration Statement, or arise out of or are based upon any
omission or alleged omission to state a material fact required to be stated therein or necessary to
make the statements therein not misleading, if the statement or omission was made in reliance upon
and in conformity with information relating to BSC furnished in writing to the Company by or on
behalf of BSC specifically for use in connection with the preparation of such Registration
Statement, Prospectus, amendment or supplement; and BSC will reimburse any legal or other expenses
reasonably incurred by the Company or any such director, officer or controlling person in
connection with investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the obligations of BSC hereunder shall be limited to an
amount equal to the net proceeds to BSC of Registrable Shares sold in connection with such
registration.

               (c) Each party entitled to indemnification under this Section 2.4 (the “Indemnified
Party”)
shall give notice to the party required to provide indemnification (the “Indemnifying Party”)
promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may
be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided, that counsel for the Indemnifying Party, who
shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party
(whose approval shall not be unreasonably withheld); and, provided, further, that
the failure of any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section except to the extent that the Indemnifying
Party is adversely affected by such failure. The Indemnified Party may participate in such defense
at such party’s expense; provided, however, that the Indemnifying Party shall pay
such reasonable expense if representation of such Indemnified Party by the counsel retained by the
Indemnifying Party would be inappropriate due to actual or potential differing interests between
the Indemnified Party and any other party represented by such counsel in such proceeding;
provided, further, that in no event shall the Indemnifying Party be required to pay
the expenses of more than one law firm as counsel for the Indemnified Party. The Indemnifying
Party also shall be responsible for the reasonable expenses of such defense if the Indemnifying
Party does not elect to assume such defense. No Indemnifying Party, in the defense of any such
claim or litigation shall, except with the consent of each Indemnified Party, consent to entry of
any judgment or enter into any settlement which does not include as an unconditional term thereof
the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability
in respect of such claim or litigation, and no Indemnified Party shall consent to entry of any
judgment or settle such claim or litigation without the prior written consent of the Indemnifying
Party, which consent shall not be unreasonably withheld, conditioned or delayed.

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               (d) In order to provide for just and equitable contribution in circumstances in which the
indemnification provided for in this Section 2.4 is due in accordance with its terms but for any
reason is held to be unavailable to an Indemnified Party in respect to any losses, claims, damages
and liabilities referred to herein, then the Indemnifying Party shall, in lieu of indemnifying such
Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, claims, damages or liabilities to which such party may be subject in such
proportion as is appropriate to reflect the relative fault of the Company on the one hand and BSC
on the other in connection with the statements or omissions which resulted in such losses, claims,
damages or liabilities, as well as any other relevant equitable considerations; provided, however,
that no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The relative fault of the Company and BSC shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of material fact
related to information supplied by the Company or BSC and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission. The
Company and BSC agree that it would not be just and equitable if contribution pursuant to this
Section 2.4(d) were determined by pro rata allocation or any other method of allocation which does
not take account of the equitable considerations referred to above. Notwithstanding the provisions
of this paragraph of Section 2.4, in no case shall BSC be liable or responsible for any amount in
excess of the net proceeds received by BSC from the offering of Registrable Shares. Any party
entitled to contribution will, promptly after receipt of notice of commencement of any action, suit
or proceeding against such party in respect of which a claim for contribution may be made against
another party or parties under this Section, notify such party or parties from whom contribution
may be sought, but the omission so to notify such party or parties from whom contribution may be
sought shall not relieve such party from any other obligation it or they may have thereunder or
otherwise under this Section. No party shall be liable for contribution with respect to any
action, suit, proceeding or claim settled without its prior written consent, which consent shall
not be unreasonably withheld.

               (e) The rights and obligations of the Company and BSC under this Section 2.4 shall survive
the
termination of this Agreement.

          2.5 Information by Holder. BSC shall furnish to the Company such information
regarding BSC and the distribution proposed by BSC as the Company may reasonably request and as
shall be required in connection with any registration, qualification or compliance referred to in
this Agreement.

          2.6 Rule 144 Requirements. The Company agrees to:

               (a) make and keep current public information about the Company available, as those terms are
understood and defined in Rule 144 under the Securities Act;

               (b) file with the Commission in a timely manner all reports and other documents required of
the Company under the Securities Act and the Exchange Act; and

               (c) so long as BSC owns any Registrable Shares, to furnish to BSC

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forthwith upon request a written statement by the Company as to its compliance with the
reporting requirements of said Rule 144 and of the Securities Act and the Exchange Act, a copy of
the most recent annual or quarterly report of the Company, and such other reports and documents so
filed by the Company as BSC may reasonably request in complying with any rule or regulation of the
SEC allowing BSC to sell any such securities without registration.

          2.7 Termination. All of the Company’s obligations to register Registrable Shares
under Sections 2.1 of this Agreement shall terminate on the fourth anniversary of the end of the
Lock-Up Period (as such term is defined in the Repurchase Agreement).

     3. Transfers of Rights. This Agreement, and the rights and obligations of BSC
hereunder, may not be assigned by BSC except to a Subsidiary of BSC, provided that such subsidiary
becomes a party to this Agreement prior to any assignment under this Section 3. For the purposes
of this Section 3, a “Subsidiary” shall mean any entity of which BSC is the direct or indirect
record owner of a majority of the voting equity of such entity or any entity of which is the direct
or indirect record owner of a majority of the voting equity of BSC.

     4. General.

               (a) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

               (b) Specific Performance. In addition to any and all other remedies that may be
available at law in the event of any breach of this Agreement, each party hereto shall be entitled
to specific performance of the agreements and obligations of the other party hereto and to such
other injunctive or other equitable relief as may be granted by a court of competent jurisdiction.

               (c) Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware (without reference to the conflicts of law
provisions thereof).

               (d) Notices. All notices, requests, consents and other communications under this
Agreement shall be in writing and shall be deemed delivered (i) two business days after being sent
by registered or certified mail, return receipt requested, postage prepaid or (ii) one business day
after being sent via a reputable nationwide overnight courier service guaranteeing next business
day delivery, in each case to the intended recipient as set forth below:

     If to the Company, at One Upland Road, Norwood, Massachusetts 02062, Attention: President, or
at such other address or addresses as may have been furnished in writing by the Company to BSC,
with a copy to Susan W. Murley, Esq., Wilmer Cutler Pickering Hale and Dorr LLP, 60 State Street,
Boston, Massachusetts 02109-1803; and

     If to BSC, at One Boston Scientific Place, Natick, Massachusetts 01760-1537, Attention:
Treasurer, or at such other address or addresses as may have been furnished in writing by BSC to

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the Company, with a copy to Assistant General Counsel, Boston Scientific Corporation, One
Boston Scientific Place, Natick, Massachusetts 01760-1537.

     Either party hereto may give any notice, request, consent or other communication under this
Agreement using any other means (including, without limitation, personal delivery, messenger
service, telecopy, first class mail or electronic mail), but no such notice, request, consent or
other communication shall be deemed to have been duly given unless and until it is actually
received by the other party hereto. Either party hereto may change the address to which notices,
requests, consents or other communications hereunder are to be delivered by giving the other party
hereto notice in the manner set forth in this Section.

               (e) Complete Agreement. This Agreement constitutes the entire agreement and
understanding of the parties hereto with respect to the subject matter hereof and supersedes all
prior agreements and understandings relating to such subject matter.

               (f) Amendments and Waivers. Any term of this Agreement may be amended or terminated
and the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), with the written consent of the Company, on
the one hand, and BSC, on the other hand. Any such amendment, termination or waiver effected in
accordance with this Section 4(f) shall be binding on all parties hereto. No waivers of or
exceptions to any term, condition or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition
or provision.

               (g) Pronouns. Whenever the context may require, any pronouns used in this Agreement
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns
and pronouns shall include the plural, and vice versa.

               (h) Counterparts; Facsimile Signatures. This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of which together shall
constitute one and the same document. This Agreement may be executed by facsimile signature.

               (i) Section Headings. The section headings are for the convenience of the parties
and
in no way alter, modify, amend, limit or restrict the contractual obligations of the parties.

               (j) Third-Party Beneficiaries. Except for the rights conferred on BSC pursuant to
this Agreement, this Agreement is not intended, and shall not be deemed, to confer any rights or
remedies upon any person other than the parties hereto and their respective successors and
permitted assigns.

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[Remainder of Page Intentionally Left Blank]

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     Executed as of the date first written above.

	 	 	 	 	 	 	 
	 	 	ASPECT MEDICAL SYSTEMS, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Nassib Chamoun
	 	 	 	 	 
	 

	 	 	 	Name:	 	Nassib Chamoun
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	President & CEO
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	BOSTON SCIENTIFIC CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Lawrence C. Best
	 	 	 	 	 
	 

	 	 	 	Name:	 	Lawrence C. Best
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	EVP
	 

	 	 	 	 	 	 

Signature page to the Registration Rights Agreement

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Exhibit A

PLAN OF DISTRIBUTION

     The shares covered by this prospectus may be offered and sold from time to time by the selling
stockholder. The term “selling stockholder” includes donees, pledgees, transferees or other
successors-in-interest selling shares received after the date of this prospectus from a selling
stockholder as a gift, pledge, partnership distribution or other non-sale related transfer. The
selling stockholder will act independently of us in making decisions with respect to the timing,
manner and size of each sale. Such sales may be made on one or more exchanges or in the
over-the-counter market or otherwise, at prices and under terms then prevailing or at prices
related to the then current market price or in negotiated transactions. The selling stockholder
may sell its shares by one or more of, or a combination of, the following methods:

	 	•	 	purchases by a broker-dealer as principal and resale by such broker-dealer for its
own account pursuant to this prospectus;
	 
	 	•	 	ordinary brokerage transactions and transactions in which the broker solicits
purchasers;
	 
	 	•	 	block trades in which the broker-dealer so engaged will attempt to sell the shares
as agent but may position and resell a portion of the block as principal to facilitate
the transaction;
	 
	 	•	 	an over-the-counter distribution in accordance with the rules of the Nasdaq National
Market;
	 
	 	•	 	in privately negotiated transactions; and
	 
	 	•	 	in options transactions.

     In addition, any shares that qualify for sale pursuant to Rule 144 under the Securities Act of
1933 may be sold under Rule 144 rather than pursuant to this prospectus.

     To the extent required, this prospectus may be amended or supplemented from time to time to
describe a specific plan of distribution. In connection with distributions of the shares or
otherwise, the selling stockholder may enter into hedging transactions with broker-dealers or other
financial institutions. In connection with such transactions, broker-dealers or other financial
institutions may engage in short sales of the common stock in the course of hedging the positions
they assume with the selling stockholder. The selling stockholder may also sell the common stock
short and redeliver the shares to close out such short positions. The selling stockholder may also
enter into option or other transactions with broker-dealers or other financial institutions which
require the delivery to such broker-dealer or other financial institution of shares offered by this
prospectus, which shares such broker-dealer or other financial institution may resell pursuant to
this prospectus (as supplemented or amended to reflect such transaction). The selling stockholder
may also pledge shares to a broker-dealer or other financial institution, and, upon a default, such
broker-dealer or other financial institution, may effect sales of the pledged shares pursuant to
this prospectus (as supplemented or amended to reflect such transaction).

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     In effecting sales, broker-dealers or agents engaged by the selling stockholder may arrange
for other broker-dealers to participate. Broker-dealers or agents may receive commissions,
discounts or concessions from the selling stockholder in amounts to be negotiated immediately prior
to the sale.

     In offering the shares covered by this prospectus, the selling stockholder and any
broker-dealers who execute sales for the selling stockholder may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. Any profits realized by
the selling stockholder and the compensation of any broker-dealer may be deemed to be underwriting
discounts and commissions.

     In order to comply with the securities laws of certain states, if applicable, the shares must
be sold in such jurisdictions only through registered or licensed brokers or dealers. In addition,
in certain states the shares may not be sold unless they have been registered or qualified for sale
in the applicable state or an exemption from the registration or qualification requirement is
available and is complied with.

     We have advised the selling stockholder that the anti-manipulation rules of Regulation M under
the Exchange Act may apply to sales of shares in the market and to the activities of the selling
stockholder and its affiliates. In addition, we will make copies of this prospectus available to
the selling stockholder for the purpose of satisfying the prospectus delivery requirements of the
Securities Act. The selling stockholder may indemnify any broker-dealer that participates in
transactions involving the sale of the shares against certain liabilities, including liabilities
arising under the Securities Act.

     At the time a particular offer of shares is made, if required, a prospectus supplement will be
distributed that will set forth the number of shares being offered and the terms of the offering.

     We have agreed to indemnify the selling stockholder against certain liabilities, including
certain liabilities under the Securities Act.

     We have agreed with the selling stockholder to keep the Registration Statement of which this
prospectus constitutes a part effective until the earlier of (i) such time as all of the shares
covered by this prospectus have been disposed of pursuant to and in accordance with the
Registration Statement or (ii) two years from the initial effective date of the Registration
Statement.

A-2<PAGE>

                                                                    Exhibit 10.4

                                                                      Schedule 1

                                    AMENDMENT
                                       TO
                               SAPIENT CORPORATION
                            1998 STOCK INCENTIVE PLAN

      WHEREAS, Sapient Corporation (the "Company") established the 1998 Stock
Incentive Plan effective March 24, 1998 and authorized the issuance of options
to acquire common stock, .01 par value, of the Company thereunder up to a limit
specified in the Plan;

      WHEREAS, on May 8, 1998 the shareholders of the Company voted to approve
the Plan;

      WHEREAS, the Board of Directors of the Company delegated the
administration of the Plan and issuance of the options thereunder to the
Compensation Committee of the Board of Directors (the "Committee");

      WHEREAS, the terms of the Plan provide that, after March 24, 2008, no
further options will be permitted to be issued under the Plan;

      WHEREAS, the Committee has not granted awards for all of the shares of
common stock authorized under the Plan;

      WHEREAS, upon recommendation of the Committee, the Board desires to amend
the Plan to extend the time during which awards can be made under the Plan for a
period of up to 5 years, so that the Committee may grant awards for shares
remaining under the Plan that were authorized previously but remain available
for awards;

      WHEREAS, upon recommendation of the Committee, the Board desires to add a
Plan provision that authorizes the payment of performance-based cash bonuses to
eligible employees, subject to the limitations set forth herein; and

      WHEREAS, Section 11(d) of the Plan reserves to the Company the right to
amend the Plan, provided that no such amendment shall be effective unless and
until approved by stockholders of the Company as required by Section 162(m) of
the Internal Revenue Code of 1986, as amended (the "Code").

      NOW, THEREFORE, the Plan is hereby amended as follows, effective as of
date on which such amendment is approved by stockholders of the Company:

1.    Section 4(b) is amended in its entirety to read as follows:

<PAGE>

      "(b) Per Participant Limit. Subject to adjustment under Section 8, the
      maximum number of shares of Common Stock for which Options may be granted
      to any person in any calendar year and the maximum number of shares of
      Restricted Stock granted to any person in any calendar year will each be
      1,000,000. The maximum number of shares subject to other stock-based
      Awards granted to any person in any calendar year will be one million
      (1,000,000) shares. The maximum dollar amount of any cash bonus payable to
      any single Participant under Section 6A of the Plan in any calendar year
      shall be two million dollars (U.S. $2,000,000). The per-Participant limits
      described in this Section 4(b) shall be construed and applied consistently
      with Section 162(m) of the Code.

2.    A new Section 6A is hereby added to read in its entirety as follows:

      "6A. BONUSES. The Board may grant cash bonus awards ("Bonus Awards") to
      Participants on the terms and conditions set forth herein. The Board shall
      select those Participants (each a "Bonus Participant") under the Plan who
      shall be eligible to receive a Bonus Award, which may be a Performance
      Award, and the terms and conditions of each such Award, including, without
      limitation, with respect to Performance Criteria.

3.    Section 11(c) of the Plan shall be amended to read in its entirety as
      follows:

      "The Plan became effective on May 8, 1998, the date on which it was
      originally adopted by stockholders, and provided that no Awards could be
      granted after March 24, 2008. On March 29, 2007, the Plan was amended,
      subject to stockholder approval, so that no Awards could be granted after
      the first to occur of March 29, 2012, and the time at which no Common
      Stock is available for Awards. Accordingly, no Awards may be made after
      that date, but Awards previously granted may extend beyond that date in
      accordance with their terms. No Incentive Stock Option may be granted
      under the Plan after March 24, 2008.

4.    A new Section 12 is added to read in its entirety as follows:

      "12. PERFORMANCE AWARDS.

      (a) GENERALLY. A Performance Award is an Award that is subject to
      Performance Criteria. The Committee, in its discretion, may grant
      Performance Awards that are intended to qualify for the performance-based
      compensation exception under Section 162(m) of the Code and Performance
      Awards that are not intended so to qualify.

      (b) PERFORMANCE CRITERIA. Performance criteria ("Performance Criteria")
      are specified criteria, other than the mere continuation of Employment or
      the mere passage of time, the satisfaction of which is a condition for the
      grant, exercisability, vesting or full enjoyment of an Award. For purposes
      of Awards

<PAGE>

      that are intended to qualify for the performance-based compensation
      exception under Section 162(m) of the Code, a Performance Criterion will
      mean an objectively determinable measure of performance relating to any or
      any combination of the following (measured either absolutely or by
      reference to an index or indices and determined either on a consolidated
      basis or, as the context permits, on a divisional, subsidiary, line of
      business, project or geographical basis or in combinations thereof):
      sales; revenues; assets; expenses; earnings before or after deduction for
      all or any portion of interest, taxes, depreciation, or amortization,
      whether or not on a continuing operations or an aggregate or per share
      basis; return on equity, investment, capital or assets; one or more
      operating ratios; borrowing levels, leverage ratios or credit rating;
      market share; capital expenditures; cash flow; stock price; stockholder
      return; sales of particular products or services; customer satisfaction
      scores ; acquisitions and divestitures (in whole or in part); joint
      ventures and strategic alliances; spin-offs, split-ups and the like;
      reorganizations; or recapitalizations, restructurings, financings
      (issuance of debt or equity) or refinancings. A Performance Criterion and
      any targets with respect thereto determined by the Board need not be based
      upon an increase, a positive or improved result or avoidance of loss. To
      the extent consistent with the requirements for satisfying the
      performance-based compensation exception under Section 162(m) of the Code,
      the Board may provide, in the case of any Award intended to qualify for
      such exception, that one or more of the Performance Criteria applicable to
      such Award will be adjusted in an objectively determinable manner to
      reflect events (for example, but without limitation, acquisitions or
      dispositions) occurring during the performance period that affect the
      applicable Performance Criterion or Criteria. The Board shall have the
      authority to exercise subjective discretion to reduce (but not increase)
      awards payouts below the levels indicated by the strict application of the
      Performance Criteria, based on factors it deems appropriate in its sole
      discretion."

      Executed this 29th day of March, 2007.

                                                 SAPIENT CORPORATION

                                                 By:
                                                     ---------------------------

                                                 Title:
                                                        ------------------------

<PAGE>

                                                                      Schedule 2

                               Covered Employees

                                  Alan Herrick

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