Document:

Exhibit 10.1

Exhibit 10.1

AMENDED AND RESTATED

AMICUS THERAPEUTICS, INC.

2007 EQUITY INCENTIVE PLAN

1. Purpose

This Plan is intended to encourage ownership of Common Stock by employees,
consultants and directors of the Company and its Affiliates and to provide additional
incentive for them to promote the success of the Company’s business through the grant
of Awards of shares of the Company’s Common Stock. The Plan is intended to be an
incentive stock option plan within the meaning of Section 422 of the Code but not all
Awards granted hereunder are required to be Incentive Options.

2. Definitions

As used in the Plan the following terms shall have the respective meanings
set out below, unless the context clearly requires otherwise:

2.1 “Accelerate”, “Accelerated”, and “Acceleration” , when used with
respect to an Option, means that as of the time of reference such Option will
become exercisable with respect to some or all of the shares of Common Stock for
which it was not then otherwise exercisable by its terms, and, when used with
respect to Restricted Stock or Restricted Stock Units, as the case may be, means
that the Risk of Forfeiture otherwise applicable to such Restricted Stock or
Restricted Stock Units, as the case may be, shall expire with respect to some or
all of the shares of Restricted Stock or some or all of the Restricted Stock Units,
as the case may be, then still otherwise subject to the Risk of Forfeiture.

2.2 “Acquiring Person” means, with respect to any Transaction or any
acquisition described in clause (ii) of the definition of Change of Control, the
surviving or acquiring person or entity in connection with such Transaction or
acquisition, as the case may be, provided that if such surviving or acquiring
person or entity is controlled, directly or indirectly, by any other person or
entity (an “Ultimate Parent Entity”) that is not itself controlled by any entity or
person that is not a natural person, the term “Acquiring Person” shall mean such
Ultimate Parent Entity.

2.3 “Affiliate” means, with respect to any person or entity, any other
person or entity controlling, controlled by or under common control with the first
person or entity.

2.4 “Applicable Voting Control Percentage” means (i) at any time prior
to the initial public offering of the Company, a percentage greater than fifty
percent (50%) and (ii) at any time from and after the initial public offering of
the Company, twenty percent (20%).

2.5 “Award” means any grant or sale pursuant to the Plan of Options,
Restricted Stock, Restricted Stock Units or Stock Grants.

2.6 “Award Agreement” means an agreement between the Company and the
recipient of an Award, setting forth the terms and conditions of the Award.

2.7 “Beneficial Ownership” has the meaning ascribed to such term in Rule
13d-3, or any successor rule thereto, promulgated by the Securities and Exchange
Commission pursuant to the Exchange Act.

2.8 “Board” means the Company’s board of directors.

2.9 “Change of Control” means (i) the closing of any Sale of the Company
Transaction or (ii) the direct or indirect acquisition, in a single transaction or
a series of related transactions, by any person or Group (other than the Company or
a Controlled Affiliate of the Company) of Beneficial Ownership of previously
outstanding shares of capital stock of the Company if (A) immediately after such
acquisition, such person or Group, together with their respective Affiliates, shall
own or hold shares of capital stock of the Company possessing at least the
Applicable Voting Control Percentage of the total voting power of the outstanding

 

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capital stock of the Company and (B) immediately prior to such acquisition, such
person or Group, together with their respective Affiliates, did not own or hold
shares of capital stock of the Company possessing at least the Applicable Voting
Control Percentage of the total voting power of the outstanding capital stock of
the Company. Notwithstanding anything expressed or implied in the foregoing
provisions of this definition to the contrary, any direct or indirect acquisition
referred to in clause (ii) above in this definition shall not be treated as a
Change of Control if, at any time prior to or after such direct or indirect
acquisition, a majority of the members of the board of directors of the Company as
constituted immediately prior to such direct or indirect acquisition consent in
writing to exclude such direct or indirect acquisition from the scope of this
definition.

2.10 “Code” means the Internal Revenue Code of 1986, as amended from
time to time, or any successor statute thereto, and any regulations issued from
time to time thereunder.

2.11 “Controlled Affiliate” means, with respect to any person or entity,
any other person or entity that is controlled by such person or entity.

2.12 “Committee” means any committee of the Board delegated
responsibility by the Board for the administration of the Plan, as provided in
Section 5 of the Plan. For any period during which no such committee is in
existence, the term “ Committee ” shall mean the Board and all authority
and responsibility assigned the Committee under the Plan shall be exercised, if at
all, by the Board.

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

2.14 “Company” means Amicus Therapeutics, Inc., a corporation organized
under the laws of the State of Delaware.

2.15 “Exchange Act” means the Securities Exchange Act of 1934, as
amended.

2.16 “Grant Date” means the date as of which an Option is granted, as
determined under Section 7.1(a).

2.17 “Group” has the meaning ascribed to such term in Section 13(d)(3)
of the Exchange Act or any successor section thereto.

2.18 “Incentive Option” means an Option which by its terms is to be
treated as an “incentive stock option” within the meaning of Section 422 of the
Code.

2.19 “Market Value” means the value of a share of Common Stock on a
particular date determined by such methods or procedures as may be established by
the Committee. Unless otherwise determined by the Committee, the Market Value of
Common Stock as of any date is the closing price for the Common Stock as reported
on the NASDAQ Global market (or on any other national securities exchange on which
the Common Stock is then listed) for that date or, if no closing price is reported
for that date, the closing price on the next preceding date for which a closing
price was reported. For purposes of Awards granted as of the effective date of the
Company’s initial public offering, Market Value shall be the price at which the
Company’s Common Stock is offered to the public in its initial public offering.

2.20 “Nonstatutory Option” means any Option that is not an Incentive
Option.

2.21 “Option” means an option granted under the Plan to purchase shares
of Common Stock.

2.22 “Optionee” means an employee, consultant or director of the Company
to whom an Option shall have been initially granted under the Plan.

2.23 “Participant” means any holder of an outstanding Award under the
Plan.

2.24 “Plan” means this 2007 Amended and Restated Equity Incentive Plan
of the Company, as amended and in effect from time to time.

2.25 “Restricted Stock” means a grant or sale pursuant to the Plan of
shares of Common Stock to a Participant subject to a Risk of Forfeiture.

 

 

 

2.26 “Restricted Stock Units” means rights granted pursuant to the Plan
to receive shares of Common Stock at the close of a Restriction Period, subject to
a Risk of Forfeiture.

2.27 “Restriction Period” means the period of time, established by the
Committee in connection with an Award of Restricted Stock or Restricted Stock
Units, during which the shares of Restricted Stock or Restricted Stock Units are
subject to a Risk of Forfeiture described in the applicable Award Agreement.

2.28 “Risk of Forfeiture” means a limitation on the right of a
Participant to retain an Award of Restricted Stock or Restricted Stock Units,
including a right in the Company to reacquire such Restricted Stock at less than
its then Market Value and/or the forfeiture of Restricted Stock Units held by a
Participant, arising because of the occurrence or non-occurrence of specified
events or conditions.

2.29 “Sale of the Company Transaction” means any Transaction in which
the stockholders of the Company immediately prior to such Transaction, together
with any and all of such stockholders’ Affiliates, do not own or hold, immediately
after consummation of such Transaction, shares of capital stock of the Acquiring
Person in connection with such Transaction possessing at least a majority of the
total voting power of the outstanding capital stock of such Acquiring Person.

2.30 “Securities Act” means the Securities Act of 1933, as amended.

2.31 “Stock Grant” means the grant pursuant to the Plan of shares of
Common Stock not subject to restrictions or other forfeiture conditions.

2.32 “Ten Percent Owner” means a person who owns, or is deemed within
the meaning of Section 422(b)(6) of the Code to own, stock possessing more than 10%
of the total combined voting power of all classes of stock of the Company (or any
parent or subsidiary corporations of the Company, as defined in Section 424(e) and
(f), respectively, of the Code). Whether a person is a Ten Percent Owner shall be
determined with respect to each Option based on the facts existing immediately
prior to the Grant Date of such Option.

2.33 “Transaction” means any merger or consolidation of the Company with
or into another person or entity or the sale or transfer of all or substantially
all of the assets of the Company, in each case in a single transaction or in a
series of related transactions.

3. Term of the Plan

Unless the Plan shall have been earlier terminated by the Board, Awards may
be granted under this Plan at any time in the period commencing on the effective date
of approval of the Plan by the Board and ending immediately prior to the tenth
anniversary of the most recent date on which the Plan was approved (or reapproved)
by the Company’s stockholders. Awards granted pursuant to the Plan within such period
shall not expire solely by reason of the termination of the Plan.

4. Stock Subject to the Plan

Subject to the provisions of Section 8 of the Plan, at no time shall the
number of shares of Common Stock issued pursuant to or subject to outstanding Awards
granted under the Plan (including, without limitation, pursuant to Incentive Options),
nor the number of shares of Common Stock issued pursuant to Incentive Options, exceed
Five Million Seven Hundred Thirty-Two Thousand Nine Hundred Ninety-Seven (5,732,997)
shares of Common Stock. For purposes of applying the foregoing limitation, if any
Option expires, terminates, or is cancelled for any reason without having been
exercised in full, or if any Award of Restricted Stock is forfeited, the shares not
purchased by the Participant or forfeited by the Participant shall again be available
for Awards thereafter to be granted under the Plan. Shares of Common Stock issued
pursuant to the Plan may be either authorized but unissued shares or shares held by the
Company in its treasury.

In addition, not more than 1,146,600 of the total number of shares of Common
Stock reserved for issuance under the Plan (as adjusted under Section 8) may be granted
or sold as Awards of Restricted Stock, Restricted Stock Units, Stock Grants, and any
other similar Awards (“Full-Value Awards”) whose intrinsic value is not solely
dependent on appreciation in the price of Shares after the date of grant. Options and
any other similar Awards shall not be subject to, and shall not count against, the
limit described in the preceding sentence. If a Full-Value Award expires, is forfeited,
or otherwise lapses as described in this Section 4, the shares of Common Stock that
were subject to the Award shall be restored to the total number of shares of Common
Stock available for grant or sale as Full-Value Awards.

 

 

 

5. Administration

The Plan shall be administered by the Committee; provided, however , that at
any time and on any one or more occasions the Board may itself exercise any of the
powers and responsibilities assigned the Committee under the Plan and when so acting
shall have the benefit of all of the provisions of the Plan pertaining to the
Committee’s exercise of its authorities hereunder; and provided further that the
Committee may delegate to an executive officer or officers the authority to grant
Awards hereunder to employees who are not officers, and to consultants, in accordance
with such guidelines as the Committee shall set forth at any time or from time to time.
Subject to the provisions of the Plan, the Committee shall have complete authority, in
its discretion, to make or to select the manner of making all determinations with
respect to each Award to be granted by the Company under the Plan in addition to any
other determination allowed the Committee under the Plan including, without limitation:
(a) the employee, consultant or director to receive the Award; (b) the form of Award;
(c) whether an Option (if granted to an employee) will be an Incentive Option or a
Nonstatutory Option; (d) the time of granting an Award; (e) the number of shares
subject to an Award; (f) the exercise price of an Option or purchase price, if any, for
shares of Restricted Stock or for a Stock Grant and the method of payment of such
exercise price or such purchase price; (g) the term of an Option; (h) the vesting
period of shares of Restricted Stock or of Restricted Stock Units and any acceleration
thereof; (i) the exercise date or dates of an Option and any acceleration thereof; and
(j) the effect of termination of any employment, consulting or Board member
relationship with the Company or any of its Affiliates on the subsequent exercisability
of an Option or on the Risk of Forfeiture of Restricted Stock or Restricted Stock
Units. In making such determinations, the Committee may take into account the nature of
the services rendered by the respective employees, consultants and directors, their
present and potential contributions to the success of the Company and its Affiliates,
and such other factors as the Committee in its discretion shall deem relevant. Subject
to the provisions of the Plan, the Committee shall also have complete authority to
interpret the Plan, to prescribe, amend and rescind rules and regulations relating to
it, to determine the terms and provisions of the respective Award Agreements (which
need not be identical), and to make all other determinations necessary or advisable for
the administration of the Plan. The Committee’s determinations made in good faith on
matters referred to in this Plan shall be final, binding and conclusive on all persons
having or claiming any interest under the Plan or an Award made pursuant hereto.

6. Authorization and Eligibility

The Committee may grant from time to time and at any time prior to the
termination of the Plan one or more Awards, either alone or in combination with any
other Awards, to any employee of or consultant to one or more of the Company and its
Affiliates or to any non-employee member of the Board or of any board of directors (or
similar governing authority) of any Affiliate. However, only employees of the Company
or of any parent or subsidiary corporations of the Company, as defined in Sections
424(e) and (f), respectively, of the Code, shall be eligible for the grant of an
Incentive Option. Further, in no event shall the number of shares of Common Stock
covered by Options or other Awards granted to any one person in any
one calendar year (or portion of a year) ending after such date exceed fifty
percent (50%) of the aggregate number of shares of Common Stock subject to the Plan.

Each grant of an Award shall be subject to all applicable terms and
conditions of the Plan (including but not limited to any specific terms and conditions
applicable to that type of Award set out in the following Section), and such other
terms and conditions, not inconsistent with the terms of the Plan, as the Committee may
prescribe. No prospective Participant shall have any rights with respect to an Award,
unless and until such Participant has executed an agreement evidencing the Award,
delivered a fully executed copy thereof to the Company, and otherwise complied with the
applicable terms and conditions of such Award.

7. Specific Terms of Awards

7.1 Options.

(a) Date of Grant. The granting of an Option shall take place at the time
specified in the Award Agreement. Only if expressly so provided in the applicable Award
Agreement shall the Grant Date be the date on which the Award Agreement shall have been
duly executed and delivered by the Company and the Optionee.

(b) Exercise Price. The price at which shares of Common Stock may be
acquired under each Incentive Option shall be not less than 100% of the Market Value of
Common Stock on the Grant Date, or not less than 110% of the Market Value of Common
Stock on the Grant Date if the Optionee is a Ten Percent Owner. The price at which
shares may be acquired under each Nonstatutory Option shall not be so limited solely by
reason of this Section.

(c) Option Period. No Incentive Option or Nonstatutory Option may be
exercised on or after the tenth anniversary of the Grant Date, or on or after the fifth
anniversary of the Grant Date if the Optionee is a Ten Percent Owner.

 

 

 

(d) Exercisability. An Option may be immediately exercisable or become
exercisable in such installments, cumulative or non-cumulative, as the Committee may
determine. In the case of an Option not otherwise immediately exercisable in full, the
Committee may Accelerate such Option in whole or in part at any time; provided ,
however, that in the case of an Incentive Option, any such Acceleration of such
Incentive Option would not cause such Incentive Option to fail to comply with the
provisions of Section 422 of the Code or the Optionee consents to such Acceleration.

(e) Effect of Termination of Employment, Consulting or Board Member
Relationship. Unless the Committee shall provide otherwise with respect to any
Option, if the applicable Optionee’s association with the Company or any of its
Affiliates as an employee, director or consultant ends for any reason or no reason,
regardless of whether the end of such association is effected by the Company, any such
Affiliate or such Optionee (whether voluntarily or involuntarily, including because an
entity with which such Optionee has any such association ceases to be an Affiliate of
the Company), and immediately following the end of any such association, such Optionee
is not associated with the Company or any of its Affiliates as an employee, director or
consultant, or if such Optionee dies, then any outstanding Option initially granted to
such Optionee, whether then held by such Optionee or any other Participant, shall cease
to be exercisable in any respect not later than ninety (90) days following the end of
such association or such death and, for the period it remains exercisable following the
end of such association or such death, shall be exercisable only to the extent
exercisable on the date of the end of such association or such death. Military or sick
leave or other bona fide leave shall not be deemed a termination of employment,
provided that it does not exceed the longer of ninety (90) days or the period during
which the absent Optionee’s reemployment rights, if any, are guaranteed by statute or
by contract.

(f) Transferability. Except as otherwise provided in this subsection
(f), Options shall not be transferable, and no Option or interest therein may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution (subject always to the provisions of
subsection (e) above). Except as otherwise provided in this subsection (f), all of a
Participant’s rights in any Option may be exercised during the life of such Participant
only by such Participant or such Participant’s legal representative. However, the
applicable Award Agreement or the Committee (at or after the grant of a Nonstatutory
Option) may provide that a Nonstatutory Option may be transferred by the applicable
Participant to a family member; provided, however, that any such transfer is without
payment of any consideration whatsoever and that no transfer of a Nonstatutory Option
shall be valid unless first approved by the Committee, acting in its sole discretion,
unless such transfer is permitted under the applicable Award Agreement. For this
purpose, “family member” means any child, stepchild, grandchild, parent, stepparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the applicable Participant’s household (other than a
tenant or employee), a trust in which
the foregoing persons and/or the applicable Participant have more than fifty
percent (50%) of the beneficial interests, a foundation in which the foregoing persons
and/or the applicable Participant control the management of assets, and any other
entity in which these persons and/or the applicable Participant own more than fifty
percent (50%) of the voting interests. The Committee may at any time or from time to
time delegate to one or more officers of the Company the authority to permit transfers
of Nonstatutory Options to third parties pursuant to this subsection (f), which
authorization shall be exercised by such officer or officers in accordance with
guidelines established by the Committee at any time and from time to time. The
restrictions on transferability set forth in this subsection (f) shall in no way
preclude any Participant from effecting “cashless” exercises of an Option pursuant to
the terms of the Plan.

(g) Method of Exercise. An Option may be exercised by a Participant giving
written notice, in the manner provided in Section 15, specifying the number of shares
of Common Stock with respect to which the Option is then being exercised. The notice
shall be accompanied by payment in the form of cash or check payable to the order of
the Company in an amount equal to the exercise price of the shares of Common Stock to
be purchased or, subject in each instance to the Committee’s approval, acting in its
sole discretion and subject to such conditions, if any, as the Committee may deem
necessary to comply with applicable laws, rules and regulations or to avoid adverse
accounting effects to the Company, by delivery to the Company of (i) shares of Common
Stock having a Market Value equal to the exercise price of the shares to be purchased,
or (ii) the Participant’s executed promissory note in the principal amount equal to the
exercise price of the shares to be purchased and otherwise in such form as the
Committee shall have approved. If the Common Stock is traded on an established market,
payment of any exercise price may also be made through and under the terms and
conditions of any formal cashless exercise program authorized by the Company entailing
the sale of the Common Stock subject to any Option in a brokered transaction (other
than to the Company). Receipt by the Company of such notice and payment in any
authorized or combination of authorized means shall constitute the exercise of the
Option. Within thirty (30) days thereafter but subject to the remaining provisions of
the Plan, the Company shall deliver or cause to be delivered to the Participant or his
agent a certificate or certificates for the number of shares then being purchased. Such
shares shall be fully paid and nonassessable. Notwithstanding any of the foregoing
provisions in this subsection (g) to the contrary, (A) no Option shall be considered to
have been exercised unless and until all of the provisions governing such exercise
specified in the Plan and in the relevant Award Agreement shall have been duly complied
with; and (B) the obligation of the Company to issue any shares upon exercise of an
Option is subject to the provisions of Section 9.1 hereof and to compliance by the
Optionee and the Participant with all of the provisions of the Plan and the relevant
Award Agreement.

 

 

 

(h) Limit on Incentive Option Characterization. An Incentive Option shall
be considered to be an Incentive Option only to the extent that the number of shares of
Common Stock for which the Option first becomes exercisable in a calendar year does not
have an aggregate Market Value (as of the date of the grant of the Option) in excess of
the “current limit”. The current limit for any Optionee for any calendar year shall be
$100,000 minus the aggregate Market Value at the date of grant of the number of shares
of Common Stock available for purchase for the first time in the same year under each
other Incentive Option previously granted to the Optionee under the Plan, and under
each other incentive stock option previously granted to the Optionee under any other
incentive stock option plan of the Company and its Affiliates, after December 31, 1986.
Any shares of Common Stock which would cause the foregoing limit to be violated shall
be deemed to have been granted under a separate Nonstatutory Option, otherwise
identical in its terms to those of the Incentive Option.

(i) Notification of Disposition. Each person exercising any Incentive
Option granted under the Plan shall be deemed to have covenanted with the Company to
report to the Company any disposition of such shares prior to the expiration of the
holding periods specified by Section 422(a)(1) of the Code and, if and to the extent
that the realization of income in such a disposition imposes upon the Company federal,
state, local or other withholding tax requirements, or any such withholding is required
to secure for the Company an otherwise available tax deduction, to remit to the Company
an amount in cash sufficient to satisfy those requirements.

(j) Rights Pending Exercise. No person holding an Option shall be deemed
for any purpose to be a stockholder of the Company with respect to any of the shares of
Common Stock issuable pursuant to such Option, except to the extent that such Option
shall have been exercised with respect thereto and, in addition, a certificate shall
have been issued therefor and delivered to such person or his agent.

7.2 Restricted Stock.

(a) Purchase Price. Shares of Restricted Stock shall be issued under the
Plan for such consideration, in cash, other property or services, or any combination
thereof, as is determined by the Committee.

(b) Issuance of Certificates. Subject to subsection (c) below, each Participant
receiving an Award of Restricted Stock shall be issued a stock certificate in respect
of such shares of Restricted Stock. Such certificate shall be registered in the name of
such Participant, and, if applicable, shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Award substantially in the
following form:

The transferability of this certificate and the shares represented by
this certificate are subject to the terms and conditions of the Amicus
Therapeutics, Inc. Amended and Restated 2007 Equity Incentive Plan and an Award
Agreement entered into by the registered owner and Amicus Therapeutics, Inc. Copies
of such Plan and Agreement are on file in the offices of Amicus Therapeutics, Inc.

(c) Escrow of Shares. The Committee may require that the stock
certificates evidencing shares of Restricted Stock be held in custody by a designated
escrow agent (which may but need not be the Company) until the restrictions thereon
shall have lapsed, and that the Participant deliver a stock power, endorsed in blank,
relating to the Common Stock covered by such Award.

(d) Restrictions and Restriction Period. During the Restriction Period
applicable to shares of Restricted Stock, such shares shall be subject to limitations
on transferability and a Risk of Forfeiture arising on the basis of such conditions
related to the performance of services, Company or Affiliate performance or otherwise
as the Committee may determine and provide for in the applicable Award Agreement. Any
such Risk of Forfeiture may be waived or terminated, or the Restriction Period
shortened, at any time by the Committee on such basis as it deems appropriate.

(e) Rights Pending Lapse of Risk of Forfeiture or Forfeiture of Award.
Except as otherwise provided in the Plan or the applicable Award Agreement, at all
times prior to lapse of any Risk of Forfeiture applicable to, or forfeiture of, an
Award of Restricted Stock, the Participant shall have all of the rights of a
stockholder of the Company, including the right to vote the shares of Restricted Stock.

(f) Effect of Termination of Employment, Consulting or Board Member
Relationship. Unless otherwise determined by the Committee at or after grant and
subject to the applicable provisions of the Award Agreement, if the applicable original
grantee’s association with the Company or any of its Affiliates as an employee,
director or consultant ends for any reason or no reason during the Restriction Period,
regardless of whether the end of such association is effected by the Company, any such
Affiliate or such original grantee (whether voluntarily or involuntarily, including
because an entity with which such original grantee has any such association ceases to
be an Affiliate of the Company), and immediately following the end of any such
association, such original grantee is not associated with the Company or any of its
Affiliates as an employee, director or consultant, or if such original grantee dies,
then all outstanding shares of Restricted Stock initially granted to such original
grantee that are still subject to Risk of Forfeiture, whether then held by such
original grantee or any other Participant, shall be forfeited or otherwise subject to
return to or repurchase by the Company if and to the extent so provided by, and subject
to and in accordance with, the terms of the applicable Award Agreement; provided,
however, that military or sick leave or other bona fide leave shall not be deemed a
termination of employment, if it does not exceed the longer of ninety (90) days or the
period during which the absent original grantee’s reemployment rights, if any, are
guaranteed by statute or by contract.

 

 

 

(g) Lapse of Restrictions. If and when the Restriction Period expires
without a prior forfeiture of the Restricted Stock, the certificates for such shares
shall be delivered to the Participant promptly if not theretofore so delivered.

(h) Transferability. Except as otherwise provided in this subsection (h),
shares of Restricted Stock shall not be transferable, and no share of Restricted Stock
or interest therein may be sold, transferred, pledged, assigned, or otherwise alienated
or hypothecated, other than by will or by the laws of descent and distribution (subject
always to the provisions of subsection (f) above). The applicable Award Agreement or
the Committee (at or after the grant of a share of Restricted Stock) may provide that
such share of Restricted Stock may be transferred by the applicable Participant to a
family member; provided, however, that any such transfer is without payment of any
consideration whatsoever and that no transfer of a share of Restricted Stock shall be
valid unless first approved by the Committee, acting in its sole discretion, unless
such transfer is permitted under the applicable Award Agreement. For this purpose,
“family member” means any child, stepchild, grandchild, parent, stepparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships,
any person sharing the applicable Participant’s household (other than a tenant or
employee), a trust in which the foregoing persons and/or the applicable Participant
have more than fifty percent (50%) of the beneficial interests, a foundation in which
the foregoing persons and/or the applicable Participant control the management of
assets, and any other entity in which these persons and/or the applicable Participant
own more than fifty percent (50%) of the voting interests. The Committee may at any
time or from
time to time delegate to one or more officers of the Company the authority to
permit transfers of shares of Restricted Stock to third parties pursuant to this
subsection (h), which authorization shall be exercised by such officer or officers in
accordance with guidelines established by the Committee at any time and from time to
time.

7.3. Restricted Stock Units.

(a) Character. Each Restricted Stock Unit shall entitle the recipient to a
share of Common Stock at a close of such Restriction Period as the Committee may
establish and subject to a Risk of Forfeiture arising on the basis of such conditions
relating to the performance of services, Company or Affiliate performance or otherwise
as the Committee may determine and provide for in the applicable Award Agreement. Any
such Risk of Forfeiture may be waived or terminated, or the Restriction Period
shortened, at any time by the Committee on such basis as it deems appropriate.

(b) Issuance of Certificates. Unless otherwise determined by the Committee
at or after grant and subject to the applicable provisions of the Award Agreement, at
the close of the Restriction Period applicable to any Restricted Stock Units
(including, without limitation, the close of the applicable Restriction Period as a
result of (i) any Acceleration of Restricted Stock Units in accordance with the terms
of this Plan or any applicable Award Agreement, (ii) any waiver, lapse or termination
of the Risk of Forfeiture applicable to Restricted Stock Units in accordance with the
terms of this Plan or any applicable Award Agreement or (iii) any shortening of the
Restriction Period applicable to any Restricted Stock Units in accordance with the
terms of this Plan or any applicable Award Agreement), the Company shall deliver or
cause to be delivered to the Participant that is the holder of such Restricted Stock
Units a stock certificate in respect of the shares of Common Stock subject to such
Restricted Stock Units. Such certificate shall be registered in the name of such
Participant, and, if applicable, shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such shares of Common Stock
substantially in the following form:

The transferability of this certificate and the shares represented by
this certificate are subject to the terms and conditions of the Amicus
Therapeutics, Inc. Amended and Restated 2007 Equity Incentive Plan and an Award
Agreement entered into by the registered owner and Amicus Therapeutics, Inc. Copies
of such Plan and Agreement are on file in the offices of Amicus Therapeutics, Inc.

(c) Dividends. At the discretion of the Committee, Participants may be
entitled to receive payments equivalent to any dividends declared with respect to
Common Stock referenced in grants of Restricted Stock Units but only following the
close of the applicable Restriction Period and then only if the underlying Common Stock
shall have been earned. Unless the Committee shall provide otherwise, any such dividend
equivalents shall be paid, if at all, without interest or other earnings.

(d) Effect of Termination of Employment, Consulting or Board Member
Relationship. Unless otherwise determined by the Committee at or after grant and
subject to the applicable provisions of the Award Agreement, if the applicable original
grantee’s association with the Company or any of its Affiliates as an employee,
director or consultant ends for any reason or no reason during the Restriction Period,
regardless of whether the end of such association is effected by the Company, any such
Affiliate or such original grantee (whether voluntarily or involuntarily, including
because an entity with which such original grantee has any such association ceases to
be an Affiliate of the Company), and immediately following the end of any such
association, such original grantee is not associated with the Company or any of its
Affiliates as an employee,

 

 

 

director or consultant, or if such original grantee dies,
then all outstanding Restricted Stock Units initially granted to such original grantee
that are still subject to Risk of Forfeiture, whether then held by such original
grantee or any other Participant, shall be forfeited or otherwise subject to return to
the Company in accordance with the terms of the applicable Award Agreement; provided,
however, that military or sick leave or other bona fide leave shall not be deemed a
termination of employment, if it does not exceed the longer of ninety (90) days or the
period during which the absent original grantee’s reemployment rights, if any, are
guaranteed by statute or by contract.

(e) Transferability. Except as otherwise provided in this subsection (e),
Restricted Stock Units shall not be transferable, and no Restricted Stock Unit or
interest therein may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated. The applicable Award Agreement or the Committee (at or after the grant of
a Restricted Stock Unit) may provide that such Restricted Stock Unit may be transferred
by the applicable Participant to a family member; provided, however, that any such
transfer is without payment of any consideration whatsoever and that no transfer of a
Restricted Stock Unit shall be valid unless first approved by the Committee, acting in
its sole discretion, unless such transfer is permitted under the applicable Award
Agreement. For this purpose, “family member” means any child, stepchild, grandchild,
parent, stepparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including
adoptive relationships, any person sharing the applicable Participant’s household
(other than a tenant or employee), a trust in which the foregoing persons and/or the
applicable
Participant have more than fifty percent (50%) of the beneficial interests, a
foundation in which the foregoing persons and/or the applicable Participant control the
management of assets, and any other entity in which these persons and/or the applicable
Participant own more than fifty percent (50%) of the voting interests. The Committee
may at any time or from time to time delegate to one or more officers of the Company
the authority to permit transfers of Restricted Stock Units to third parties pursuant
to this subsection (e), which authorization shall be exercised by such officer or
officers in accordance with guidelines established by the Committee at any time and
from time to time.

(f) Rights Pending Close of Applicable Restriction Period. No person
holding Restricted Stock Units shall be deemed for any purpose to be a stockholder of
the Company with respect to any of the shares of Common Stock subject to such
Restricted Stock Units, except to the extent that the Restricted Period with respect to
such Restricted Stock Units shall have closed and, in addition, a certificate shall
have been issued for such shares of Common Stock and delivered to such person or his
agent. Shares of Common Stock subject to Restricted Stock Units shall be issued and
outstanding only if and to the extent that a stock certificate representing such shares
has been issued and delivered in accordance with the provisions of this Section 7.3.

7.4. Stock Grants.

(a) In General. Stock Grants shall be issued for such consideration, in
cash, other property or services, or any combination thereof, as is determined by the
Committee. Without limiting the generality of the foregoing, Stock Grants may be
awarded in such circumstances as the Committee deems appropriate, including without
limitation in recognition of significant contributions to the success of the Company or
its Affiliates or in lieu of compensation otherwise already due. Stock Grants shall be
made without forfeiture conditions of any kind.

(b) Issuance of Certificates. Each Participant receiving a Stock Grant
shall be issued a stock certificate in respect of such Stock Grant. Such certificate
shall be registered in the name of such Participant, and, if applicable, shall bear an
appropriate legend referring to the terms, conditions, and restrictions applicable to
such Award substantially in the following form:

The transferability of this certificate and the shares represented by
this certificate are subject to the terms and conditions of the Amicus
Therapeutics, Inc. 2007 Equity Incentive Plan. A copy of such Plan is on file in
the offices of Amicus Therapeutics, Inc.

7.5. Awards to Participants Outside the United States. The Committee may
modify the terms of any Award under the Plan granted to a Participant who is, at the
time of grant or during the term of the Award, resident or primarily employed outside
of the United States in any manner deemed by the Committee to be necessary or
appropriate in order that such Award shall conform to laws, regulations, and customs of
the country in which the Participant is then resident or primarily employed, or so that
the value and other benefits of the Award to the Participant, as affected by foreign
tax laws and other restrictions applicable as a result of the Participant’s residence
or employment abroad, shall be comparable to the value of such an Award to a
Participant who is resident or primarily employed in the United States. An Award may be
modified under this Section 7.4 in a manner that is inconsistent with the express terms
of the Plan, so long as such modifications will not contravene any applicable law or
regulation. The Committee may establish supplements to, or amendments, restatements, or
alternative versions of the Plan for the purpose of granting and administrating any
such modified Award. No such modification, supplement, amendment, restatement or
alternative version may increase the share limit of Section 4.

 

 

 

8. Adjustment Provisions

8.1 Adjustment for Corporate Actions. All of the share numbers set forth
in the Plan reflect the capital structure of the Company immediately after the closing
of the initial public offering of the Company’s Common Stock. Subject to the provisions
of Section 8.2, if subsequent to such closing the outstanding shares of Common Stock
(or any other securities covered by the Plan by reason of the prior application of this
Section) are increased, decreased, or exchanged for a different number or kind of
shares or other securities, or if additional shares or new or different shares or other
securities are distributed with respect to such shares of Common Stock or other
securities, through merger, consolidation, sale of all or substantially all the
property of the Company, reorganization, recapitalization, reclassification, stock
dividend, stock split, reverse stock split, or other distribution with respect to such
shares of Common Stock, or other securities, an appropriate and proportionate
adjustment will be made in (i) the maximum numbers and kinds of shares provided in
Section 4, (ii) the numbers and kinds of shares or other securities subject to the then
outstanding Awards, (iii) the exercise price for each share or other unit of any other
securities subject to then outstanding Options (without change in the aggregate
purchase price as to
which such Options remain exercisable), and (iv) the repurchase price of each
share of Restricted Stock then subject to a Risk of Forfeiture in the form of a Company
repurchase right.

8.2. Change of Control. Subject to the applicable provisions of the Award
Agreement, in the event of a Change of Control, the Committee shall have the
discretion, exercisable in advance of, at the time of, or (except to the extent
otherwise provided below) at any time after, the Change of Control, to provide for any
or all of the following (subject to and upon such terms as the Committee may deem
appropriate): (A) the Acceleration, in whole or in part, of any or all outstanding
Options (including Options that are assumed or replaced pursuant to clause (D) below)
that are not exercisable in full at the time the Change of Control, such Acceleration
to become effective at the time of the Change of Control, or at such time following the
Change of Control that the employment, consulting or Board member relationship of the
applicable Optionee or Optionees with the Company and its Affiliates terminates, or at
such other time or times as the Committee shall determine; (B) the lapse or termination
of the Risk of Forfeiture (including, without limitation, any or all of the Company’s
repurchase rights) with respect to outstanding Awards of Restricted Stock, such lapse
or termination to become effective at the time of the Change of Control, or at such
time following the Change of Control that the employment, consulting or Board member
relationship with the Company and its Affiliates of the Participant or Participants
that hold such Awards of Restricted Stock (or the person to whom such Awards of
Restricted Stock were initially granted) terminates, or at such other time or times as
the Committee shall determine; (C) the lapse or termination of the Risk of Forfeiture
with respect to any or all outstanding Awards of Restricted Stock Units (including
Restricted Stock Units that are assumed or replaced pursuant to clause (D) below), such
lapse or termination to become effective at the time of the Change of Control, or at
such time following the Change of Control that the employment, consulting or Board
member relationship with the Company and its Affiliates of the Participant or
Participants that hold such Awards of Restricted Stock Units (or the person to whom
such Awards of Restricted Stock Units were initially granted) terminates, or at such
other time or times as the Committee shall determine; (D) the assumption of outstanding
Options or Restricted Stock Units, or the substitution of outstanding Options or
Restricted Stock Units with equivalent options or equivalent restricted stock units, as
the case may be, by the acquiring or succeeding corporation or entity (or an affiliate
thereof); (E) the termination of all Options (other than Options that are assumed or
substituted pursuant to clause (D) above) that remain outstanding at the time of the
consummation of the Change of Control, provided that, the Committee shall have made the
determination to effect such termination prior to the consummation of the Change of
Control and the Committee shall have given, or caused to be given, to all Participants
written notice of such potential termination at least five business days prior to the
consummation of the Change of Control, and provided, further, that, if the Committee
shall have determined in its sole and absolute discretion that the Company make payment
or provide consideration to the holders of such terminated Options on account of such
termination, which payment or consideration shall be on such terms and conditions as
the Committee shall have determined (and which could consist of, in the Committee’s
sole and absolute discretion, payment to the applicable Optionee or Optionees of an
amount of cash equal to the difference between the Market Value of the shares of Common
Stock for which the Option is then exercisable and the aggregate exercise price for
such shares under the Option), then the Company shall be required to make, or cause to
be made, such payment or provide, or cause to be provided, such consideration in
accordance with the terms and conditions so determined by the Committee, otherwise the
Company shall not be required to make any payment or provide any consideration in
connection with, or as a result of, the termination of Options pursuant to the
foregoing provisions of this clause (E); or (F) the termination of all Restricted Stock
Units (other than Restricted Stock Units that are assumed or substituted pursuant to
clause (D) above) that remain outstanding at the time of the consummation of the Change
of Control, provided that, if the Committee shall have determined in its sole and
absolute discretion that the Company make payment or provide consideration to the
holders of such terminated Restricted Stock Units on account of such termination, which
payment or consideration shall be on such terms and conditions as the Committee shall
have determined (and which could consist of, in the Committee’s sole and absolute
discretion, payment to the applicable Participant or Participants of an amount of cash
equal to the Market Value of the shares of Common Stock subject to the terminated
Restricted Stock Units), then the Company shall be required to make such payment or
provide such consideration in accordance with the terms and conditions so determined by
the Committee, otherwise the Company shall not be required to make any payment or
provide any consideration in connection with, or as a result of, the termination of
Restricted Stock Units pursuant to the foregoing provisions of this clause (F). The
provisions of this Section 8.2 shall not be construed as to limit or restrict in any
way the

 

 

 

Committee’s general authority under Sections 7.1(d) or 7.2(d) hereof to
Accelerate Options in whole or in part at any time or to waive or terminate at any time
any Risk of Forfeiture applicable to shares of Restricted Stock or Restricted Stock
Units. Each outstanding Option or Restricted Stock Unit that is assumed in connection
with a Change of Control, or is otherwise to continue in effect subsequent to a Change
of Control, will be appropriately adjusted, immediately after the Change of Control, as
to the number and class of securities and the price at which it may be exercised in
accordance with Section 8.1.

8.3. Dissolution or Liquidation. Upon dissolution or liquidation of the
Company, each outstanding Option shall terminate, but the Optionee (if at the time he
or she has an employment, consulting or Board member relationship with the Company or
any of its Affiliates) shall have the right, immediately prior to such dissolution or
liquidation, to exercise the Option to the extent exercisable on the date of such
dissolution or liquidation.

8.4. Related Matters. Any adjustment in Awards made pursuant to this
Section 8 shall be determined and made, if at all, by the Committee and shall include
any correlative modification of terms, including of Option exercise prices, rates of
vesting or exercisability, Risks of Forfeiture and applicable repurchase prices for
Restricted Stock, which the Committee may deem necessary or appropriate so as to ensure
that the rights of the Participants in their respective Awards are not substantially
diminished nor enlarged as a result of the adjustment and corporate action other than
as expressly contemplated in this Section 8. No fraction of a share shall be
purchasable or deliverable upon exercise, but in the event any adjustment hereunder of
the number of shares covered by an Award shall cause such number to include a fraction
of a share, such number of shares shall be adjusted to the nearest smaller whole number
of shares. No adjustment of an Option exercise price per share pursuant to this Section
8 shall result in an exercise price which is less than the par value of the Common
Stock.

9. Settlement of Awards

9.1 Violation of Law. Notwithstanding any other provision of the Plan or
the relevant Award Agreement, if, at any time, in the reasonable opinion of the
Company, the issuance of shares of Common Stock covered by an Award may constitute a
violation of law, then the Company may delay such issuance and the delivery of a
certificate for such shares until (i) approval shall have been obtained from such
governmental agencies, other than the Securities and Exchange Commission, as may be
required under any applicable law, rule, or regulation and (ii) in the case where such
issuance would constitute a violation of a law administered by or a regulation of the
Securities and Exchange Commission, one of the following conditions shall have been
satisfied:

(a) the shares are at the time of the issue of such shares effectively
registered under the Securities Act; or

(b) the Company shall have determined, on such basis as it deems
appropriate (including an opinion of counsel in form and substance satisfactory to
the Company) that the sale, transfer, assignment, pledge, encumbrance or other
disposition of such shares or such beneficial interest, as the case may be, does
not require registration under the Securities Act or any applicable state
securities laws.

9.2 Corporate Restrictions on Rights in Stock. Any Common Stock to be issued
pursuant to Awards granted under the Plan shall be subject to all restrictions upon the
transfer thereof which may be now or hereafter imposed by the Certificate of
Incorporation and the By-laws of the Company, each as amended and in effect from time
to time. Whenever Common Stock is to be issued pursuant to an Award, if the Committee
so directs at the time of grant (or, if such Award is an Option, at any time prior to
the exercise thereof), the Company shall be under no obligation, notwithstanding any
other provision of the Plan or the relevant Award Agreement to the contrary, to issue
such shares until such time, if ever, as the recipient of the Award (and any person who
exercises any Option, in whole or in part), shall have become a party to and bound by
any agreement that the Committee shall require in its sole discretion. In addition, any
Common Stock to be issued pursuant to Awards granted under the Plan shall be subject to
all stop-transfer orders and other restrictions as the Committee may deem advisable
under the rules, regulations and other requirements of any stock exchange upon which
the Common Stock is then listed, and any applicable federal or state securities laws,
and the Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

9.3 Investment Representations. The Company shall be under no obligation
to issue any shares covered by an Award unless the shares to be issued pursuant to
Awards granted under the Plan have been effectively registered under the Securities Act
or the Participant shall have made such written representations to the Company (upon
which the Company believes it may reasonably rely) as the Company may deem necessary or
appropriate for purposes of confirming that the issuance of such shares will be exempt
from the registration requirements of that Act and any applicable state securities laws
and otherwise in compliance with all applicable laws, rules and regulations, including
but not limited to that the Participant is acquiring shares for his or her own account
for the purpose of investment and not with a view to, or for sale in connection with,
the distribution of any such shares.

 

 

 

9.4 Registration. If the Company shall deem it necessary or desirable to
register under the Securities Act or other applicable statutes any shares of Common
Stock issued or to be issued pursuant to Awards granted under the Plan, or to qualify
any such shares of Common Stock for exemption from the Securities Act or other
applicable statutes, then the Company shall take such action at its own expense. The
Company may require from each recipient of an Award, or each holder of shares of Common
Stock acquired pursuant to the Plan, such information in writing for use in any
registration statement, prospectus, preliminary prospectus or offering circular as is
reasonably necessary for such purpose and may require reasonable indemnity to the
Company and its officers and directors from such holder against all losses, claims,
damage and liabilities arising from such use of the information so furnished and caused
by any untrue statement of any
material fact therein or caused by the omission to state a material fact required
to be stated therein or necessary to make the statements therein not misleading in the
light of the circumstances under which they were made.

9.5 Lock-Up. Without the prior written consent of the Company or the
managing underwriter in any public offering of shares of Common Stock, no Participant
shall sell, make any short sale of, loan, grant any option for the purchase of, pledge
or otherwise encumber, or otherwise dispose of, any shares of Common Stock during the
one hundred-eighty (180) day period commencing on the effective date of the
registration statement relating to any underwritten public offering of securities of
the Company. The foregoing restrictions are intended and shall be construed so as to
preclude any Participant from engaging in any hedging or other transaction that is
designed to or reasonably could be expected to lead to or result in, a sale or
disposition of any shares of Common Stock during such period even if such shares of
Common Stock are or would be disposed of by someone other than such Participant. Such
prohibited hedging or other transactions would include, without limitation, any short
sale (whether or not against the box) or any purchase, sale or grant of any right
(including without limitation any put or call option) with respect to any shares of
Common Stock or with respect to any security that includes, relates to, or derives any
significant part of its value from any shares of Common Stock. Without limiting the
generality of the foregoing provisions of this Section 9.5, if, in connection with any
underwritten public offering of securities of the Company, the managing underwriter of
such offering requires that the Company’s directors and officers enter into a lock-up
agreement containing provisions that are more restrictive than the provisions set forth
in the preceding sentence, then (a) each Participant (regardless of whether or not such
Participant has complied or complies with the provisions of clause (b) below) shall be
bound by, and shall be deemed to have agreed to, the same lock-up terms as those to
which the Company’s directors and officers are required to adhere; and (b) at the
request of the Company or such managing underwriter, each Participant shall execute and
deliver a lock-up agreement in form and substance equivalent to that which is required
to be executed by the Company’s directors and officers.

9.6 Placement of Legends; Stop Orders; Etc. Each share of Common Stock to
be issued pursuant to Awards granted under the Plan may bear a reference to the
investment representations made in accordance with Section 9.3 in addition to any other
applicable restrictions under the Plan, the terms of the Award and, if applicable,
under any agreement between the Company and any Optionee and/or Participant, and to the
fact that no registration statement has been filed with the Securities and Exchange
Commission in respect to such shares of Common Stock. All certificates for shares of
Common Stock or other securities delivered under the Plan shall be subject to such
stock transfer orders and other restrictions as the Committee may deem advisable under
the rules, regulations, and other requirements of any stock exchange upon which the
Common Stock is then listed, and any applicable federal or state securities law, and
the Committee may cause a legend or legends to be placed on any such certificates to
make appropriate reference to such restrictions.

9.7 Tax Withholding. Whenever shares of Common Stock are issued or to be
issued pursuant to Awards granted under the Plan, the Company shall have the right to
require the recipient to remit to the Company an amount sufficient to satisfy federal,
state, local or other withholding tax requirements if, when, and to the extent required
by law (whether so required to secure for the Company an otherwise available tax
deduction or otherwise) prior to the delivery of any certificate or certificates for
such shares. The obligations of the Company under the Plan shall be conditional on
satisfaction of all such withholding obligations and the Company shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind
otherwise due to the recipient of an Award. However, in such cases Participants may
elect, subject to the approval of the Committee, acting in its sole discretion, to
satisfy an applicable withholding requirements, in whole or in part, by having the
Company withhold shares to satisfy their tax obligations. Participants may only elect
to have shares of their Common Stock withheld having a Market Value on the date the tax
is to be determined equal to the minimum statutory total tax which could be imposed on
the transaction. All elections shall be irrevocable, made in writing, signed by the
Participant, and shall be subject to any restrictions or limitation that the Committee
deems appropriate.

10. Reservation of Stock

The Company shall at all times during the term of the Plan and any
outstanding Options granted hereunder reserve or otherwise keep available such number
of shares of Common Stock as will be sufficient to satisfy the requirements of the Plan
(if then in effect) and such Options and shall pay all fees and expenses necessarily
incurred by the Company in connection therewith.

 

 

 

11. No Special Service Rights

Nothing contained in the Plan or in any Award Agreement shall confer upon any
recipient of an Award any right with respect to the continuation of his or her
employment, consulting or Board member relationship or other association with the
Company (or any Affiliate), or interfere in any way with the right of the Company
(or any Affiliate), subject to the terms of any separate employment, consulting or
Board member agreement or provision of law or corporate articles or by-laws to the
contrary, at any time to terminate such employment, consulting or Board member
agreement or to increase or decrease, or otherwise adjust, the other terms and
conditions of the recipient’s employment, consulting or Board member relationship or
other association with the Company and its Affiliates.

12. Nonexclusivity of the Plan

Neither the adoption of the Plan by the Board nor the submission of the Plan
to the stockholders of the Company shall be construed as creating any limitations on
the power of the Board to adopt such other incentive arrangements as it may deem
desirable, including without limitation, the granting of stock options, restricted
stock and restricted stock units other than under the Plan, and such arrangements may
be either applicable generally or only in specific cases.

13. Termination and Amendment of the Plan

The Board may at any time terminate the Plan or make such amendments or
modifications of the Plan as it shall deem advisable. In the event of the termination
of the Plan, the terms of the Plan shall survive any such termination with respect to
any Award that is outstanding on the date of such termination, unless the holder of
such Award agrees in writing to terminate such Award or to terminate all or any of the
provisions of the Plan that apply to such Award. Unless the Board otherwise expressly
provides, any amendment or modification of the Plan shall affect the terms of any Award
outstanding on the date of such amendment or modification as well as the terms of any
Award made from and after the date of such amendment or modification; provided, however, that, except to the extent otherwise provided in the last sentence of this paragraph,
(i) no amendment or modification of the Plan shall apply to any Award that is
outstanding on the date of such amendment or modification if such amendment or
modification would reduce the number of shares subject to such Award, increase the
purchase price applicable to shares subject to such Award or materially adversely
affect the provisions applicable to such Award that relate to the vesting or
exercisability of such Award or of the shares subject to such Award, (ii) no amendment
or modification of the Plan shall apply to any Incentive Option that is outstanding on
the date of such amendment or modification if such amendment or modification would
result in such Incentive Option no longer being treated as an “incentive stock option”
within the meaning of Section 422 of the Code and (iii) no amendment or modification of
the Plan shall apply to any Award that is outstanding on the date of such amendment or
modification unless such amendment or modification of the Plan shall also apply to all
other Awards outstanding on the date of such amendment or modification. In the event of
any amendment or modification of the Plan that is described in clause (i), (ii) or
(iii) of the foregoing proviso, such amendment or modification of the Plan shall apply
to any Award outstanding on the date of such amendment or modification only if the
recipient of such Award consents in writing thereto.

The Committee may amend or modify, prospectively or retroactively, the terms
of any outstanding Award without amending or modifying the terms of the Plan itself,
provided that as amended or modified such Award is consistent with the terms of the
Plan as in effect at the time of the amendment or modification of such Award, but no
such amendment or modification of such Award shall, without the written consent of the
recipient of such Award, reduce the number of shares subject to such Award, increase
the purchase price applicable to shares subject to such Award, adversely affect the
provisions applicable to such Award that relate to the vesting or exercisability of
such Award or of the shares subject to such Award, or otherwise materially adversely
affect the terms of such Award (except for amendments or modifications to the terms of
such Award or of the stock subject to such Award that are expressly permitted by the
terms of the Plan or that result from any amendment or modification of the Plan in
accordance with the provisions of the first paragraph of this Section 13), or, if such
Award is an Incentive Option, result in such Incentive Option no longer being treated
as an “incentive stock option” within the meaning of Section 422 of the Code.

In addition, notwithstanding anything express or implied in any of the
foregoing provisions of this Section 13 to the contrary, the Committee may amend or
modify, prospectively or retroactively, the terms of any outstanding Award to the
extent the Committee reasonably determines necessary or appropriate to conform such
Award to the requirements of Section 409A of the Code (concerning non-qualified
deferred compensation), if applicable.

Without the approval of the Company’s stockholders, the Committee will not,
directly or indirectly, reduce the exercise price of an outstanding Option (other than
in accordance with the adjustment provisions of Section 8.1).

 

 

 

14. Interpretation of the Plan

In the event of any conflict between the provisions of this Plan and the
provisions of any applicable Award Agreement, the provisions of this Plan shall
control, except if and to the extent that the conflicting provision in such Award
Agreement was authorized and approved by the Committee at the time of the grant of the
Award evidenced by such Award Agreement or is ratified by the Committee at any time
subsequent to the grant of such Award, in which case the conflicting provision in such
Award Agreement shall control. Without limiting the generality of the foregoing
provisions of this Section 14, insofar as possible the provisions of the Plan and such
Award Agreement shall be construed so as to give full force and effect to all such
provisions. In the event of any conflict between the provisions of this Plan and the
provisions of any other agreement between the Company and the Optionee and/or
Participant, the provisions of such agreement shall control except as required to
fulfill the intention that this Plan constitute an incentive stock option plan within
the meaning of Section 422 of the Code, but insofar as possible the provisions of the
Plan and any such agreement shall be construed so as to give full force and effect to
all such provisions.

15. Notices and Other Communications

Any notice, demand, request or other communication hereunder to any party
shall be deemed to be sufficient if contained in a written instrument delivered in
person or duly sent by first class registered, certified or overnight mail, postage
prepaid, or telecopied with a confirmation copy by regular, certified or overnight
mail, addressed or telecopied, as the case may be, (i) if to the recipient of an Award,
at his or her residence address last filed with the Company and (ii) if to the Company,
at its principal place of business, addressed to the attention of its Chief Executive
Officer, or to such other address or telecopier number, as the case may be, as the
addressee may have designated by notice to the addressor. All such notices, requests,
demands and other communications shall be deemed to have been received: (i) in the case
of personal delivery, on the date of such delivery; (ii) in the case of mailing, when
received by the addressee; and (iii) in the case of facsimile transmission, when
confirmed by facsimile machine report.

16. Governing Law

The Plan and all Award Agreements and actions taken thereunder shall be
governed, interpreted and enforced in accordance with the laws of the State of New
Jersey, without regard to the conflict of laws principles thereof.

17. Effective Date

This Amended and Restated 2007 Equity Incentive Plan was approved by the
stockholders of the Company in June 2010 and was amended and restated and reapproved by
stockholders effective May 24, 2011.exv10w1

Exhibit 10.1

AMENDMENT NO. 4 TO GUARANTEE

     This Amendment No. 4 (this “Amendment No. 4”), dated as of
May 24, 2011, to that certain Guarantee dated as of January 18, 2011 (the
“Original Guarantee”), as amended by Amendment No. 1 dated as of April
3, 2011 (“Amendment No. 1”), Amendment No. 2 dated as of May 17, 2011
(“Amendment No. 2”) and Amendment No. 3 dated as of May 20, 2011
(“Amendment No. 3,” and collectively with the Original Guarantee,
Amendment No. 1 and Amendment No. 2, the “Guarantee”), is entered into
by Vector Capital IV, L.P. (“VCIV”) and Vector Capital III, L.P.
(“VCIII,” and each of VCIII and VCIV, a “Guarantor” and
collectively VCIII and VCIV, the “Guarantors”) in favor of RAE Systems
Inc., a Delaware corporation (the “Company”). Capitalized terms used
herein and not otherwise defined shall have the respective meanings assigned to
such terms in the Merger Agreement (as defined below).

RECITAL

     Ray Holding Corporation, a Delaware corporation (“Parent”),
Ray Merger Sub Corporation, a Delaware corporation and a wholly owned
subsidiary of Parent (“Merger Sub”), and the Company have entered into
that certain Agreement and Plan of Merger, dated as of January 18, 2011 (as
amended by Amendment No. 1 thereto dated as of April 3, 2011, Amendment No. 2
thereto dated May 17, 2011 and Amendment No. 3 dated as of May 20, 2011, and as
may be further amended, modified or supplemented from time to time, the
“Merger Agreement”), and it was a requirement of the Merger Agreement
that Parent deliver this Guarantee to the Company concurrently with the
execution and delivery thereof.

     On May 24, 2011, Parent offered to amend the Merger Agreement on the
terms set forth in an Amendment No. 4 to the Merger Agreement to provide for,
among other things, an increase in the Merger Consideration payable.

     The parties to this Amendment No. 4, intending to be legally bound,
agree as follows:

     1.
 Cap. Section 1(b) of the Guarantee is amended by
replacing, in the definition of Cap set forth therein, the reference to
“$97,720,000 minus an amount equal to (x) the Transferable Shares times (y) the
Merger Consideration” with “$107,651,000 minus an amount equal to (x) the
Transferable Shares times (y) the Merger Consideration.”

     2.
 Guarantee References. The parties hereto hereby agree that
all references to the “Guarantee” set forth in the Guarantee shall be deemed to
be references to the Guarantee as amended by this Amendment No. 4.

     3.
 Full Force and Effect. Except as expressly amended or
modified hereby, the Guarantee shall remain in full force and effect without
any amendment or other modification thereto.

 

 

     4.
 Counterparts. This Amendment No. 4 may be executed in
several counterparts, each of which shall be deemed an original and all of
which shall constitute one and the same instrument. The exchange of a fully
executed Amendment No. 4 (in counterparts or otherwise) by facsimile shall be
sufficient to bind the parties to the terms and conditions of this Amendment
No. 4.

[Remainder of Page Intentionally Left Blank]

 

 

     IN WITNESS WHEREOF, the undersigned have caused this Amendment No. 4
to be duly executed and delivered as of the date first written above.

	 	 	 	 	 
	 	Vector Capital IV, L.P.

 	 
	 	By:  	Vector Capital Partners IV, L.P., 
its general partner
 	 
	 
	 	By: 	Vector Capital, L.L.C., 
its general partner 	 
	 	 	 
	 	By:  	                                                   /s/ Alexander R. Slusky
 	 
	 	 	Name:  	Alexander R. Slusky 	 
	 	 	Title:  	Managing Member 	 
	 
	 	Vector Capital III, L.P.

 	 
	 	By:  	Vector Capital Partners III, L.P., 
its general partner
 	 
	 	 	 	 
	 	By:	Vector Capital, L.L.C., 
its general partner 	 
	 	 	 
	 	By:  	                                                   /s/ Alexander R. Slusky
 	 
	 	 	Name:  	Alexander R. Slusky 	 
	 	 	Title:  	Managing Member 	 
	 

Signature Page to Amendment No. 4 to Guarantee

 

 

	 	 	 	 	 
	 	RAE Systems Inc.

 	 
	 	By:  	/s/ Randall Gausman
 	 
	 	 	Name:  	Randall Gausman 	 
	 	 	Title:  	CFO 	 
	 

Signature Page to Amendment No. 4 to Guarantee

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