Document:

Exhibit
10.23

 

FIRST AMENDMENT TO TRANSACTION AGREEMENT

 

THIS FIRST AMENDMENT TO
TRANSACTION AGREEMENT is entered into as of May 5, 2008,
between Senior Housing Properties Trust, a Maryland real estate investment
trust (“Senior Housing”) and  HRPT
Properties Trust, a Maryland real estate investment trust (“HRPT”).

 

WHEREAS,    Senior
Housing and HRPT are parties to a Transaction Agreement dated September 21,
1999(the “Transaction Agreement”); and

 

WHEREAS,    in connection with the
purchase by Senior Housing of certain medical office buildings from HRPT,
Senior Housing and HRPT desire to amend the Transaction Agreement to remove
certain restrictions on Senior Housing making investments in medical use and
related properties.

 

NOW, THEREFORE,
   Senior Housing and HRPT agree as follows:

 

1.             Section 1.30 of the Transaction Agreement is
amended and restated to read:

 

“Office Properties”: office
buildings, warehouses or malls (excluding medical office buildings, clinics and
biomedical, pharmaceutical and laboratory buildings), in each case whether
occupied by a single tenant or multiple tenants, whether leased to private
tenants or Governmental Authorities, and whether single purpose or mixed use,
but excluding mixed use properties where medical office, clinic, biomedical,
pharmaceutical or laboratory use is 50% or more (determined by rentable square
footage, excluding common areas), and further provided usual office use by a
tenant with a medical based business shall not constitute medical use.

 

2.             Section 1.47 of the Transaction Agreement is
amended and restated to read:

 

“Senior Properties”: senior
apartments, congregate communities, assisted living properties, nursing homes
or other healthcare properties, including medical office buildings, clinics and
biomedical, pharmaceutical and laboratory buildings, but excluding mixed use
properties where medical office, clinic, biomedical, pharmaceutical or
laboratory use is under 50% (determined by rentable square footage, excluding
common areas), and further provided usual office use by a tenant with a medical
based business shall not constitute medical use.

 

 

3.             The last sentence of Section 3.1 of the Transaction
Agreement is amended and restated to read:

 

In any case where an
investment is a mixed use property which is classified as a Senior Property
because the medical use is 50% or more, if SNH determines not to make the
investment, HRPT may make the investment without any further approval of Senior
Housing’s Independent Trustees.

 

4.             As amended hereby, the Transaction Agreement is hereby
ratified and confirmed.

 

IN WITNESS WHEREOF, Senior
Housing and HRPT have caused this Amendment to be duly executed, as a sealed
instrument, as of the date first set forth above.

 

	
   

  	
   

  	
  SENIOR HOUSING PROPERTIES TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David J. Hegarty

  
	
   

  	
   

  	
   

  	
  David J. Hegarty

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HRPT PROPERTIES TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ John C. Popeo

  
	
   

  	
   

  	
   

  	
  John C. Popeo

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer

  

 

2Exhibit 10.48

 

LECG
CORPORATION

 

2003
STOCK OPTION PLAN

 

(As Amended and
Restated as of February 6, 2008)

 

1.             Purposes of the
Plan.  The purposes of this 2003
Stock Option Plan are:

 

·              to attract and
retain the best available personnel for positions of substantial
responsibility,

 

·              to provide
additional incentive to Employees, Directors and Consultants, and

 

·              to promote the
success of the Company’s business.

 

Awards
granted under the Plan may be Incentive Stock Options, Nonstatutory Stock
Options, Restricted Stock and Restricted Stock Units as determined by the
Administrator at the time of grant.

 

2.             Definitions.  As used herein, the following definitions
shall apply:

 

(a)           “Administrator”
means the Board or any of its Committees as shall be administering the Plan, in
accordance with Section 4 of the Plan.

 

(b)           “Applicable Laws”
means the requirements relating to the administration of equity-based awards
under U.S. state corporate laws, U.S. federal and state securities laws, the
Code, any stock exchange or quotation system on which the Common Stock is
listed or quoted and the applicable laws of any foreign country or jurisdiction
where Awards are, or will be, granted under the Plan.

 

(c)           “Award” means,
individually or collectively, a grant under the Plan of Options, Restricted
Stock and Restricted Stock Units.

 

(d)           “Award Agreement”
means the written or electronic agreement setting forth the terms and
provisions applicable to each Award granted under the Plan, including any
Option Agreement and Restricted Stock Purchase Agreement.  The Award Agreement is subject to the terms
and conditions of the Plan.

 

(e)           “Board” means
the Board of Directors of the Company.

 

(f)            “Change in Control”
means the occurrence of any of the following events:

 

(i)            Any “person” (as such
term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes
the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act),
directly or indirectly, of securities of the Company representing fifty percent
(50%) or more of the total voting power represented by the Company’s then
outstanding voting securities;

 

 

(ii)           The consummation of the
sale or disposition by the Company of all or substantially all of the Company’s
assets;

 

(iii)          A change in the
composition of the Board occurring within a two-year period, as a result of
which fewer than a majority of the Directors are Incumbent Directors.  “Incumbent Directors” means Directors who
either (A) are Directors as of the date hereof, or (B) are elected,
or nominated for election, to the Board with the affirmative votes of at least
a majority of the Incumbent Directors at the time of such election or
nomination (but will not include an individual whose election or nomination is
in connection with an actual or threatened proxy contest relating to the
election of Directors to the Company); or

 

(iv)          The consummation of a
merger or consolidation of the Company with any other corporation, other than a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity or its parent) at least fifty percent (50%) of the total
voting power represented by the voting securities of the Company or such
surviving entity or its parent outstanding immediately after such merger or
consolidation.

 

(g)           “Code” means the
Internal Revenue Code of 1986, as amended.

 

(h)           “Committee”
means a committee of Directors appointed by the Board in accordance with Section 4
of the Plan.

 

(i)            “Common Stock”
means the Common Stock of the Company.

 

(j)            “Company” means
LECG Corporation, a Delaware corporation.

 

(k)           “Consultant”
means any natural person, including an advisor, engaged by the Company or a
Parent or Subsidiary to render services to such entity.

 

(l)            “Director”
means a member of the Board.

 

(m)          “Disability”
means total and permanent disability as defined in Section 22(e)(3) of
the Code.

 

(n)           “Employee” means
any person, including Officers and Directors, employed by the Company or any
Parent or Subsidiary of the Company.  A
Service Provider shall not cease to be an Employee in the case of (i) any
leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or
any successor.  For purposes of Incentive
Stock Options, no such leave may exceed three (3) months, unless
reemployment upon expiration of such leave is guaranteed by statute or
contract.  If reemployment upon expiration
of a leave of absence approved by the Company is not so guaranteed, then six (6) months
following the first (1st) day of such leave, any Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock
Option.  Neither service as a Director
nor payment of a director’s fee by the Company shall be sufficient to
constitute “employment” by the Company.

 

2

 

(o)           “Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

(p)           “Fair Market Value”
means, as of any date, the value of Common Stock determined as follows:

 

(i)            If the Common Stock is
listed on any established stock exchange or a national market system, including
without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of
The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price
for such stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system on the day of determination, as reported in The Wall Street Journal or such other source as the
Administrator deems reliable;

 

(ii)           If the Common Stock is
regularly quoted by a recognized securities dealer but selling prices are not
reported, the Fair Market Value of a Share of Common Stock shall be the mean
between the high bid and low ask prices for the Common Stock on the day of
determination, as reported in The Wall Street Journal
or such other source as the Administrator deems reliable; or

 

(iii)          In the absence of an
established market for the Common Stock, the Fair Market Value shall be
determined in good faith by the Administrator.

 

(q)           “Incentive Stock
Option” means an Option intended to qualify as an incentive stock option within
the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

 

(r)            “Nonstatutory Stock
Option” means an Option not intended to qualify as an Incentive Stock
Option.

 

(s)           “Notice of Grant”
means a written or electronic notice evidencing certain terms and conditions of
an individual Award grant.  The Notice of
Grant is part of the Award Agreement.

 

(t)            “Officer” means
a person who is an officer of the Company within the meaning of Section 16
of the Exchange Act and the rules and regulations promulgated thereunder.

 

(u)           “Option” means a
stock option granted pursuant to the Plan.

 

(v)           “Option Agreement”
means an agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. 
The Option Agreement is subject to the terms and conditions of the Plan.

 

(w)          “Option Exchange
Program” means a program whereby outstanding Options are surrendered in
exchange for (i) Options with a lower exercise price or (ii) other
Awards or cash.

 

(x)            “Optioned Stock”
means the Common Stock subject to an Award.

 

(y)           “Optionee” means
the holder of an outstanding Option granted under the Plan.

 

3

 

(z)            “Parent” means
a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of
the Code.

 

(aa)         “Participant” means the holder of an outstanding Award,
including an Optionee.

 

(bb)         “Period of Restriction”
means the period during which the transfer of Shares of Restricted Stock are
subject to restrictions and therefore, the Shares are subject to a substantial
risk of forfeiture.  Such restrictions
may be based on the passage of time, the achievement of target levels of
performance, or the occurrence of other events as determined by the
Administrator.

 

(cc)         “Plan” means this
2003 Stock Option Plan.

 

(dd)         “Restricted Stock”
means Shares issued pursuant to an
Award of Restricted Stock under Section 7 of the Plan.

 

(ee)         “Restricted Stock
Purchase Agreement” means a written agreement between the Company and the
Optionee evidencing the terms and restrictions applying to stock purchased
under a Restricted Stock.  The Restricted
Stock Purchase Agreement is subject to the terms and conditions of the Plan and
the Notice of Grant.

 

(ff)           “Restricted Stock
Unit” means a bookkeeping entry representing an amount equal to the Fair
Market Value of one Share, granted pursuant to Section 8.  Each Restricted Stock Unit represents an
unfunded and unsecured obligation of the Company.

 

(gg)         “Rule 16b-3”
means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3,
as in effect when discretion is being exercised with respect to the Plan.

 

(hh)         “Section 16(b) “
means Section 16(b) of the Exchange Act.

 

(ii)           “Service Provider”
means an Employee, Director or Consultant.

 

(jj)           “Share” means a
share of the Common Stock, as adjusted in accordance with Section 10 of
the Plan.

 

(kk)         “Subsidiary” means
a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of
the Code.

 

3.             Stock Subject to the Plan.  Subject to the provisions of Section 10
of the Plan, the maximum aggregate number of Shares that may be optioned and
sold under the Plan is 2,500,000 Shares plus an annual increase to be added on the first day of the Company’s
fiscal year beginning in 2004, equal to the lesser of (i) 1,250,000
shares, (ii) 4% of the outstanding shares on such date or (iii) such
amount determined by the Board. 
The Shares may be authorized, but unissued, or reacquired Common Stock.

 

If an Award expires or
becomes unexercisable without having been exercised in full, or is surrendered
pursuant to an Option Exchange Program, or, with respect to Restricted Stock and Restricted Stock Units, is
forfeited to or repurchased by the Company, the unpurchased Shares (or

 

4

 

for
Awards other than Options, the forfeited, repurchased or unissued Shares)
which were subject thereto shall become available for future grant or sale
under the Plan (unless the Plan has terminated); provided, however, that if unvested Shares issued pursuant to Awards of
Restricted Stock and Restricted Stock Units are repurchased by the Company or
are forfeited to the Company, such Shares will become available for future
grant under the Plan.  To the extent an Award under the Plan is paid
out in cash rather than Shares, such cash payment will not result in reducing
the number of Shares available for issuance under the Plan.

 

4.             Administration of
the Plan.

 

(a)           Procedure.

 

(i)            Multiple
Administrative Bodies.  Different
Committees with respect to different groups of Service Providers may administer
the Plan.

 

(ii)           Section 162(m).  To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the
Plan shall be administered by a Committee of two or more “outside directors”
within the meaning of Section 162(m) of the Code.

 

(iii)          Rule 16b-3.  To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions
contemplated hereunder shall be structured to satisfy the requirements for
exemption under Rule 16b-3.

 

(iv)          Other Administration.  Other than as provided above, the Plan shall
be administered by (A) the Board or (B) a Committee, which committee
shall be constituted to satisfy Applicable Laws.

 

(b)           Powers of the
Administrator.  Subject to the
provisions of the Plan, and in the case of a Committee, subject to the specific
duties delegated by the Board to such Committee, the Administrator shall have
the authority, in its discretion:

 

(i)            to determine the Fair
Market Value;

 

(ii)           to select the Service
Providers to whom Awards may be granted hereunder;

 

(iii)          to determine the number
of shares of Common Stock to be covered by each Award granted hereunder;

 

(iv)          to approve forms of
agreement for use under the Plan;

 

(v)           to determine the terms
and conditions, not inconsistent with the terms of the Plan, of any Award
granted hereunder.  Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Awards may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Award or the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

 

5

 

(vi)          to reduce the exercise
price of any Award to the then current Fair Market Value if the Fair Market
Value of the Common Stock covered by such Award shall have declined since the
date the Award was granted;

 

(vii)         to institute an Option
Exchange Program;

 

(viii)        to construe and interpret
the terms of the Plan and awards granted pursuant to the Plan;

 

(ix)           to prescribe, amend and
rescind rules and regulations relating to the Plan, including rules and
regulations relating to sub-plans established for the purpose of satisfying
applicable foreign laws;

 

(x)            to modify or amend
each Award (subject to Section 13(c) of the Plan), including the
discretionary authority to extend the post-termination exercisability period of
Options longer than is otherwise provided for in the Plan;

 

(xi)           to allow Participants
to satisfy withholding tax obligations by electing to have the Company withhold
from the Shares to be issued upon exercise of an Award that number of Shares
having a Fair Market Value equal to the minimum amount required to be withheld.  The Fair Market Value of the Shares to be
withheld shall be determined on the date that the amount of tax to be withheld
is to be determined.  All elections by an
Optionee to have Shares withheld for this purpose shall be made in such form
and under such conditions as the Administrator may deem necessary or advisable;

 

(xii)          to authorize any person
to execute on behalf of the Company any instrument required to effect the grant
of an Award previously granted by the Administrator;

 

(xiii)         to make all other
determinations deemed necessary or advisable for administering the Plan.

 

(c)           Effect of
Administrator’s Decision.  The
Administrator’s decisions, determinations and interpretations shall be final
and binding on all Participants and any other holders of Awards.

 

5.             Eligibility.  Nonstatutory Stock Options, Restricted Stock
and Restricted Stock Units may be granted to Service Providers.  Incentive Stock Options may be granted only
to Employees.

 

6.             Stock Options.

 

(a)           Limitations.

 

(i)            Each Option shall be
designated in the Option Agreement as either an Incentive Stock Option or a
Nonstatutory Stock Option.  However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a)(i),
Incentive Stock Options shall 

 

6

 

be taken into account in the order in which they were
granted.  The Fair Market Value of the
Shares shall be determined as of the time the Option with respect to such
Shares is granted.

 

(ii)           Neither the Plan nor
any Award shall confer upon an Optionee any right with respect to continuing
the Optionee’s relationship as a Service Provider with the Company, nor shall
they interfere in any way with the Optionee’s right or the Company’s right to
terminate such relationship at any time, with or without cause.

 

(iii)          The following
limitations shall apply to grants of Options:

 

(A)          No Service Provider
shall be granted, in any fiscal year of the Company, Options to purchase more
than 1,000,000 Shares.

 

(B)           In connection with his
or her initial service, a Service Provider may be granted Options to purchase
up to an additional 1,000,000 Shares, which shall not count against the limit
set forth in subsection (A) above.

 

(C)           The foregoing
limitations shall be adjusted proportionately in connection with any change in
the Company’s capitalization as described in Section 10.

 

(D)          If an Option is
cancelled in the same fiscal year of the Company in which it was granted (other
than in connection with a transaction described in Section 10), the
cancelled Option will be counted against the limits set forth in subsections (A) and
(B) above.  For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option.

 

(b)           Term of Option.  The term of each Option shall be stated in
the Award Agreement.  In the case of an
Incentive Stock Option, the term shall be ten (10) years from the date of
grant or such shorter term as may be provided in the Award Agreement.  Moreover, in the case of an Incentive Stock
Option granted to an Optionee who, at the time the Incentive Stock Option is
granted, owns stock representing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or any Parent or
Subsidiary, the term of the Incentive Stock Option shall be five (5) years
from the date of grant or such shorter term as may be provided in the Award
Agreement.

 

(c)           Option Exercise Price
and Consideration.

 

(i)            Exercise Price.  The per share exercise price for the Shares
to be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

 

(A)          In the case of an
Incentive Stock Option

 

a)             granted to an
Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of all classes of
stock of the Company or any Parent or Subsidiary, the per Share exercise price
shall be no less than 110% of the Fair Market Value per Share on the date of
grant.

 

7

 

b)            granted to any
Employee other than an Employee described in paragraph (A) immediately
above, the per Share exercise price shall be no less than 100% of the Fair
Market Value per Share on the date of grant.

 

(B)           In the case of a
Nonstatutory Stock Option, the per Share exercise price shall be determined by
the Administrator.  In the case of a
Nonstatutory Stock Option intended to qualify as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the
per Share exercise price shall be no less than 100% of the Fair Market Value
per Share on the date of grant.

 

(C)           Notwithstanding the
foregoing, Options may be granted with a per Share exercise price of less than
100% of the Fair Market Value per Share on the date of grant pursuant to a
merger or other corporate transaction.

 

(ii)           Waiting Period and
Exercise Dates.  At the time an
Option is granted, the Administrator shall fix the period within which the
Option may be exercised and shall determine any conditions that must be
satisfied before the Option may be exercised.

 

(iii)          Form of
Consideration.  The Administrator
shall determine the acceptable form of consideration for exercising an Option,
including the method of payment.  In the
case of an Incentive Stock Option, the Administrator shall determine the
acceptable form of consideration at the time of grant.  Such consideration may consist entirely of:

 

(A)          cash;

 

(B)           check;

 

(C)           promissory note;

 

(D)          other Shares which, in
the case of Shares acquired directly or indirectly from the Company, (A) have
been owned by the Optionee for more than six (6) months on the date
of surrender, and (B) have a Fair Market Value on the date of surrender
equal to the aggregate exercise price of the Shares as to which said Option
shall be exercised;

 

(E)           consideration received
by the Company under a cashless exercise program implemented by the Company in
connection with the Plan;

 

(F)           a reduction in the
amount of any Company liability to the Optionee, including any liability
attributable to the Optionee’s participation in any Company-sponsored deferred
compensation program or arrangement;

 

(G)           any combination of the
foregoing methods of payment; or

 

(H)          such other consideration
and method of payment for the issuance of Shares to the extent permitted by
Applicable Laws.

 

8

 

(d)           Exercise of Option.

 

(i)            Procedure for
Exercise; Rights as a Stockholder. 
Any Option granted hereunder shall be exercisable according to the terms
of the Plan and at such times and under such conditions as determined by the
Administrator and set forth in the Award Agreement.  Unless the Administrator provides otherwise,
vesting of Options granted hereunder shall be suspended during any unpaid leave
of absence.  An Option may not be
exercised for a fraction of a Share.

 

An Option shall be deemed
exercised when the Company receives: (i) written or electronic notice of
exercise (in accordance with the Award Agreement) from the person entitled to
exercise the Option, and (ii) full payment for the Shares with respect to
which the Option is exercised.  Full
payment may consist of any consideration and method of payment authorized by
the Administrator and permitted by the Award Agreement and the Plan.  Shares issued upon exercise of an Option
shall be issued in the name of the Optionee or, if requested by the Optionee,
in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. 
The Company shall issue (or cause to be issued) such Shares promptly
after the Option is exercised.  No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in Section 10  of the Plan.

 

Exercising an Option in any manner shall decrease the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised.

 

(ii)           Termination of
Relationship as a Service Provider. 
If an Optionee ceases to be a Service Provider, other than upon the
Optionee’s death or Disability, the Optionee may exercise his or her Option
within such period of time as is specified in the Award Agreement to the extent
that the Option is vested on the date of termination (but in no event later
than the expiration of the term of such Option as set forth in the Award
Agreement).  In the absence of a
specified time in the Award Agreement, the Option shall remain exercisable for
three (3) months following the Optionee’s termination.  If, on the date of termination, the Optionee
is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not
exercise his or her Option within the time specified by the Administrator, the
Option shall terminate, and the Shares covered by such Option shall revert to
the Plan.

 

(iii)          Disability of
Optionee.  If an Optionee ceases to
be a Service Provider as a result of the Optionee’s Disability, the Optionee
may exercise his or her Option within such period of time as is specified in
the Award Agreement to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such
Option as set forth in the Award Agreement). 
In the absence of a specified time in the Award Agreement, the Option
shall remain exercisable for twelve (12) months following the termination.  If, on the date of termination, the Optionee
is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

 

9

 

(iv)          Death of Optionee.  If an Optionee dies while a Service Provider,
the Option may be exercised following the Optionee’s death within such period
of time as is specified in the Award Agreement to the extent that the Option is
vested on the date of death (but in no event may the option be exercised later
than the expiration of the term of such Option as set forth in the Award
Agreement), by the Optionee’s designated beneficiary, provided such beneficiary
has been designated prior to Optionee’s death in a form acceptable to the
Administrator.  If no such beneficiary
has been designated by the Optionee, then such Option may be exercised by the
personal representative of the Optionee’s estate or by the person(s) to
whom the Option is transferred pursuant to the Optionee’s will or in accordance
with the laws of descent and distribution. 
In the absence of a specified time in the Award Agreement, the Option
shall remain exercisable for twelve (12) months following Optionee’s
death.  If, at the time of death,
Optionee is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option shall immediately revert to the Plan.  If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

 

7.             Restricted Stock.

 

(a)           Grant of Restricted
Stock.  Subject to the terms and
provisions of the Plan, the Administrator, at any time and from time to time,
may grant Shares of Restricted Stock to Service Providers in such amounts as
the Administrator, in its sole discretion, will determine.

 

(b)           Restricted Stock
Agreement.  Each Award of Restricted
Stock will be evidenced by an Award Agreement that will specify the Period of
Restriction, the number of Shares granted, and such other terms and conditions
as the Administrator, in its sole discretion, will determine.  Unless the Administrator determines
otherwise, Shares of Restricted Stock will be held by the Company as escrow
agent until the restrictions on such Shares have lapsed.

 

(c)           Transferability.  Except as provided in this Section 7,
Shares of Restricted Stock may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated until the end of the applicable Period of
Restriction.

 

(d)           Other Restrictions.  The Administrator, in its sole discretion,
may impose such other restrictions on Shares of Restricted Stock as it may deem
advisable or appropriate.

 

(e)           Removal of
Restrictions.  Except as otherwise
provided in this Section 7, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from escrow as soon
as practicable after the last day of the Period of Restriction.  The Administrator, in its discretion, may
accelerate the time at which any restrictions will lapse or be removed.

 

(f)            Voting Rights.  During the Period of Restriction, Service
Providers holding Shares of Restricted Stock granted hereunder may exercise
full voting rights with respect to those Shares, unless the Administrator
determines otherwise.

 

(g)           Dividends and Other
Distributions.  During the Period of
Restriction, Service Providers holding Shares of Restricted Stock will be
entitled to receive all dividends and other distributions paid with respect to
such Shares unless the Administrator determines otherwise.  If any such dividends or distributions are
paid in Shares, the Shares will be subject to the same restrictions 

 

10

 

on transferability and forfeitability as the Shares of
Restricted Stock with respect to which they were paid.

 

(h)           Return of Restricted
Stock to Company.  On the date set
forth in the Award Agreement, the Restricted Stock for which restrictions have
not lapsed will revert to the Company and again will become available for grant
under the Plan.

 

8.             Restricted Stock
Units.

 

(a)           Grant.  Restricted Stock Units may be
granted at any time and from time to time as determined by the
Administrator.  Each Restricted Stock
Unit grant will be evidenced by an Award Agreement that will specify such other
terms and conditions as the Administrator, in its sole discretion, will
determine, including all terms, conditions, and restrictions related to the
grant, the number of Restricted Stock Units and the form of payout, which,
subject to Section 8(d), may be left to the discretion of the
Administrator.

 

(b)           Vesting Criteria and
Other Terms.  The Administrator will
set vesting criteria in its discretion, which, depending on the extent to which
the criteria are met, will determine the number of Restricted Stock Units that
will be paid out to the Participant. 
After the grant of Restricted Stock Units, the Administrator, in its
sole discretion, may reduce or waive any restrictions for such Restricted Stock
Units.  Each Award of Restricted Stock
Units will be evidenced by an Award Agreement that will specify the vesting
criteria, and such other terms and conditions as the Administrator, in its sole
discretion, will determine.

 

(c)           Earning Restricted Stock Units.  Upon
meeting the applicable vesting criteria, the Participant will be entitled to
receive a payout as specified in the Award Agreement.  Notwithstanding the foregoing, at any time
after the grant of Restricted Stock Units, the Administrator, in its sole
discretion, may reduce or waive any vesting criteria that must be met to
receive a payout.

 

(d)           Form and Timing of Payment. 
Payment of earned Restricted Stock Units will be made as soon as
practicable after the date(s) set forth in the Award Agreement.  The Administrator, in its sole discretion,
may pay earned Restricted Stock Units in cash, Shares, or a combination
thereof.  Shares represented by
Restricted Stock Units that are fully paid in cash again will be available for
grant under the Plan.

 

(e)           Cancellation.  On
the date set forth in the Award Agreement, all unearned Restricted Stock Units
will be forfeited to the Company.

 

9.             Transferability of
Awards.  Unless determined otherwise
by the Administrator, an Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or
by the laws of descent or distribution and may be exercised, during the
lifetime of the Optionee, only by the Optionee. 
If the Administrator makes an Award transferable, such Award shall
contain such additional terms and conditions as the Administrator deems
appropriate.

 

11

 

10.           Adjustments Upon
Changes in Capitalization, Merger or Change in Control.

 

(a)           Changes in
Capitalization.  Subject to any
required action by the stockholders of the Company, the number of shares of
Common Stock that have been authorized for issuance under the Plan but as to
which no Awards have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Award, the number of Shares that may be
added annually to the Plan pursuant to Section 3 and the number of shares
of Common Stock as well as the price per share of Common Stock covered by each
such outstanding Award, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been “effected without receipt of
consideration.”  Such adjustment shall be
made by the Board, whose determination in that respect shall be final, binding
and conclusive.  Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Award.

 

(b)           Dissolution or
Liquidation.  In the event of the
proposed dissolution or liquidation of the Company, the Administrator shall
notify each Optionee as soon as practicable prior to the effective date of such
proposed transaction.  The Administrator
in its discretion may provide for an Optionee to have the right to exercise his
or her Option until ten (10) days prior to such transaction as to all of
the Optioned Stock covered thereby, including Shares as to which the Option
would not otherwise be exercisable.  In
addition, the Administrator may provide that any Company repurchase option
applicable to any Shares purchased upon exercise of an Award shall lapse as to
all such Shares, provided the proposed dissolution or liquidation takes place
at the time and in the manner contemplated. 
To the extent it has not been previously exercised, an Award will
terminate immediately prior to the consummation of such proposed action.

 

(c)           Merger or Change in
Control.  In the event of a merger of
the Company with or into another corporation, or a Change in Control, each
outstanding Award shall be assumed or an equivalent option or right substituted
by the successor corporation or a Parent or Subsidiary of the successor
corporation.  In the event that the
successor corporation refuses to assume or substitute for the Awards, the
Participant shall fully vest in and have the right to exercise the Awards as to
all of the Optioned Stock, including Shares as to which it would not otherwise
be vested or exercisable, all restrictions
on Restricted Stock will lapse, and, with respect to Restricted Stock Units,
all vesting criteria will be deemed achieved at target levels and all other
terms and conditions met.  If an
Award becomes fully vested and exercisable in lieu of assumption or
substitution in the event of a merger or sale of assets, the Administrator
shall notify the Participant in writing or electronically that the Award shall
be fully vested and exercisable for a period of fifteen (15) days from the date
of such notice, and the Award shall terminate upon the expiration of such
period.

 

For
the purposes of this subsection (c), the Award shall be considered assumed if,
following the merger or Change in Control, the Award confers the right to
purchase or receive, for each Share subject to the Award immediately prior to
the merger or Change in Control, the consideration (whether stock, cash, or
other securities or property) received in the merger or 

 

12

 

Change in Control by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were
offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding Shares); provided, however, that if
such consideration received in the merger or Change in Control is not solely
common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the Award, for each Share subject to the
Award, to be solely common stock of the successor corporation or its Parent
equal in fair market value to the per share consideration received by holders
of Common Stock in the merger or Change in Control.

 

11.           Date of Grant.  The date of grant of an Award shall be, for
all purposes, the date on which the Administrator makes the determination
granting such Award, or such other later date as is determined by the
Administrator.  Notice of the
determination shall be provided to each Optionee within a reasonable time after
the date of such grant.

 

12.           Term of Plan.  Subject to Section 17  of the Plan, the Plan shall become effective upon its
adoption by the Board.  It shall continue
in effect for a term of ten (10) years unless terminated earlier under Section 13  of the Plan.

 

13.           Amendment and
Termination of the Plan.

 

(a)           Amendment and
Termination.  The Board may at any
time amend, alter, suspend or terminate the Plan.

 

(b)           Stockholder Approval.  The Company shall obtain stockholder approval
of any Plan amendment to the extent necessary and desirable to comply with
Applicable Laws.

 

(c)           Effect of Amendment
or Termination.  No amendment,
alteration, suspension or termination of the Plan shall impair the rights of
any Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee
and the Company.  Termination of the Plan
shall not affect the Administrator’s ability to exercise the powers granted to
it hereunder with respect to Awards granted under the Plan prior to the date of
such termination.

 

14.           Conditions Upon
Issuance of Shares.

 

(a)           Legal Compliance.  Shares shall not be issued pursuant to the
exercise of an Award unless the exercise of such Award and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

 

(b)           Investment
Representations.  As a condition to
the exercise of an Award, the Company may require the person exercising such
Award to represent and warrant at the time of any such exercise that the Shares
are being purchased only for investment and without any present intention to
sell or distribute such Shares if, in the opinion of counsel for the Company,
such a representation is required.

 

15.           Inability to Obtain
Authority.  The inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company’s counsel to be 

 

13

 

necessary to the lawful issuance and sale of any
Shares hereunder, shall relieve the Company of any liability in respect of the
failure to issue or sell such Shares as to which such requisite authority shall
not have been obtained.

 

16.           Reservation of
Shares.  The Company, during the term
of this Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan.

 

17.           Stockholder Approval.  The Plan shall be subject to approval by the
stockholders of the Company within twelve (12) months after the date the Plan
is adopted.  Such stockholder approval
shall be obtained in the manner and to the degree required under Applicable
Laws.

 

14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]