Document:

EX-4.10

 Exhibit 4.10 

 
  
 

 
  

			
		  	

 
		
		  	                              
  NOVOGEN LIMITED
		  	                              
  ACN 063 259 754
		
		  	                              
  16 – 21 Edgeworth David Avenue
		  	                              
  Hornsby NSW 2077

 TABLE OF CONTENTS 

 

					
	 1.
	 	 INTERPRETATION AND OBJECT
	  	3
			
	 1.1
	 	 Definitions
	  	3
			
	 1.2
	 	 General
	  	5
			
	 1.3
	 	 Headings
	  	6
			
	 1.4
	 	 Object of Plan
	  	6
			
	 2.
	 	 ADMINISTRATION
	  	6
			
	 2.1
	 	 Committee’s authority
	  	6
			
	 2.2
	 	 Total number of Shares
	  	6
			
	 2.3
	 	 Determination of eligibility
	  	7
			
	 2.4
	 	 Determination of price
	  	7
			
	 2.5
	 	 Disputes
	  	7
			
	 2.6
	 	 Directions from Board
	  	8
			
	 3.
	 	 METHOD OF INVITATION
	  	8
			
	 3.1
	 	 Invitations
	  	8
			
	 3.2
	 	 Participant may apply
	  	9
			
	 4.
	 	 APPLICATION FOR OPTIONS
	  	9
			
	 4.1
	 	 Application
	  	9
			
	 4.2
	 	 Grant and Certificate
	  	9
			
	 5.
	 	 OPTION TO SUBSCRIBE
	  	9
			
	 5.1
	 	 Exercise
	  	9
			
	 5.2
	 	 Notice
	  	10
			
	 5.3
	 	 Payment
	  	10
			
	 5.4
	 	 Allotment
	  	10
			
	 5.5
	 	 Share allotted upon exercise of Option
	  	10
			
	 5.6
	 	 Lapse
	  	10
			
	 5.7
	 	 Balance certificate
	  	11
			
	 5.8
	 	 Listing on ASX
	  	11
			
	 5.9
	 	 No additional rights
	  	11
			
	 6.
	 	 ADJUSTMENTS
	  	11
			
	 6.1
	 	 New issues
	  	11
			
	 6.2
	 	 Rights/entitlements issues
	  	11
			
	 6.3
	 	 Pro-rata bonus issues
	  	11
			
	 6.4
	 	 Sub-division or consolidation
	  	12

  
 1 

					
			
	 6.5
	 	 Return of capital
	  	12
			
	 6.6
	 	 Cancellation of capital that is lost
	  	12
			
	 6.7
	 	 Pro rata cancellation of capital
	  	12
			
	 6.8
	 	 General reorganisation
	  	12
			
	 6.9
	 	 Notice of adjustment
	  	12
			
	 6.10
	 	 Listing Rules
	  	12
			
	 6.11
	 	 Cumulative adjustments
	  	12
			
	 6.12
	 	 Rounding
	  	12
			
	 7.
	 	 DURATION OF THE PLAN
	  	13
			
	 7.1
	 	 Discretionary
	  	13
			
	 7.2
	 	 Suspension
	  	13
			
	 7.3
	 	 No prejudice
	  	13
			
	 8.
	 	 AMENDMENT OF THE PLAN
	  	13
			
	 8.1
	 	 Consistency with Trading Rules
	  	13
			
	 8.2
	 	 By the Committee
	  	14
			
	 8.3
	 	 Listing Rules
	  	14
			
	 8.4
	 	 Hardship
	  	14
			
	 9.
	 	 NOTICES AND CORRESPONDENCE
	  	14
			
	 9.1
	 	 To the Company
	  	14
			
	 9.2
	 	 To a Participant
	  	14
			
	 10.
	 	 TRANSFER OF THE OPTION
	  	14
			
	 10.1
	 	 No transfer
	  	14
			
	 10.2
	 	 Death
	  	14
			
	 10.3
	 	 Termination of Employment
	  	15
		
	 SCHEDULE 1
	  	16

  
 2 

 NOVOGEN LIMITED 

ACN 063 259 754 
 RULES OF THE NOVOGEN LIMITED EMPLOYEE SHARE OPTION PLAN 
  

	1.	INTERPRETATION AND OBJECT 

  

	1.1	Definitions 

 In these
Rules, unless the context otherwise requires: 
 “Acceptance Form” means a form for the acceptance of the
invitation made by the Committee to the Participant to participate in the Plan under clause 3.1 in such form as is approved by the Committee from time to time; 
 “Associated Company” means: 
  

	 	a)	any company that is a related body corporate of the Company; or 

  

	 	b)	any company in which the Company has voting power in no less than 20% of the voting shares; 

“ASTC” means ASX Settlement and Transfer Corporation Pty Ltd; 

“ASX” means ASX Limited; 
 “Board” means the board of Directors of the Company from time to time; 
 “Business Day” means a day which is a “business day” for the purposes of the Listing Rules; 
 “Change in Control” means: 
  

	 	a)	a person obtaining voting power in more than 30% of the voting shares of the Company; or 

 

	 	b)	a person ceasing to have voting power in more than 30% of the voting shares of the Company; or 

 

	 	c)	the Board resolving that it considers that a person who previously had not been in a position to do so, is in the position, directly or indirectly, and either alone or
with associates to remove one-half or more of the Directors; 

 “Change in Control Period” means,
in relation to a Change in Control, the 20 Business Days after the day on which the Change in Control occurred; 

“CHESS” means the Clearing House Electronic Subregister System operated by ASTC, and includes any applicable clearing and
settlement facility that is a prescribed CS facility under the Corporations Act. 
 “Committee” means the Board
or, if a committee is appointed by the Board as contemplated by clause 2.1, that committee; 
 “Company” means
Novogen Limited ACN 063 259 754; 
 “Corporations Act” means the Corporations Act 2001 (Cth); 

  
 3 

 “Director” means a director of the Company from time to time; 

“Employee” means an employee (full time or part time) or officer of the Company or an Associated Company; 

“Exercise Condition” means, in respect of an Option, one or more conditions which must be met before the Option may be
exercised; 
 “Exercise Period” means, in respect of an Option, each of: 

 

	 	a)	each day which is after the Vesting Period and before the end of the Option Period; 

 

	 	b)	each Takeover Period during the Option Period; and 

  

	 	c)	each Change in Control Period during the Option Period; 

 “Exercise Price” means in respect of an Option, the subscription price on exercise of the Option determined in accordance with clauses 2.4 and 3.1 in relation to that Option (as
adjusted under clause 6); 
 “Group” means the Company and ail Associated Companies; 

“Holder” means in respect of an Option, the person registered as holder of the Option in the register of options
maintained by the Company; 
 “Listing Rules” means the listing rules of ASX as they may apply to the Company
from time to time; 
 “Option” means an option to subscribe under the Plan for one fully paid Share (as adjusted
under clause 6); 
 “Option Certificate” means the certificate issued by the Company to a Holder in respect of
an Option; 
 “Option Period” means, in respect of an Option, subject to clause 5.6, the period starting on the
date on which the Company grants the Option and ending, unless another period is specified in the invitation made in relation to that Option under clause 3: 
  

	 	a)	on the fifth anniversary of that date; or 

  

	 	b)	at the end of any other period permitted by law that the Committee may from time to time determine for the purposes of this definition; 

“Participant” means any Employee whom the Committee has decided under clause 2.3 is eligible to participate in the Plan;

 “Plan” means the Novogen Limited Employee Share Option Plan established in accordance with these Rules;

 “Record Date” has the meaning given to it by the Listing Rules; 

“Share” means an ordinary share in the Company; 
 “Takeover Period” means: 
  

	 	a)	for a takeover bid under Chapter 6 of the Corporations Act, the “offer period” as defined in section 9 of the Corporations Act; and 

 

	 	b)	under part 5.1 of the Corporations Act, 30 Business Days from when a Court sanctions a compromise or arrangement proposed for the purpose or in connection with, a
scheme for the reconstruction of the Company or its amalgamation with another body corporate. 

  
 4 

 “Trading Rules” means the Listing Rules, any other rules of ASX applying to
the Company while it is admitted to the official list of ASX, and the ASTC settlement rules (or other operating rules) as amended or replaced from time to time; and 
 “Vesting Period” means, in respect of an Option, the period of two years after the date of grant or another period determined by the Committee (either generally or in a particular case).

  

	1.2	General 

 In these Rules,
unless the context otherwise requires: 
  

	 	a)	a reference to any legislation or legislative provision includes any statutory modification or re-enactment of, or legislative provision substituted for, and any
subordinate legislation issued under, that legislation or legislative provision: 

  

	 	b)	the singular includes the plural and vice versa; 

  

	 	c)	a reference to an individual or person includes a corporation, partnership, joint venture, association, authority, trust, state or government and vice versa;

  

	 	d)	a reference to any gender includes ail genders; 

  

	 	e)	a reference to a clause, schedule or annexure is to a clause, schedule or annexure of or to these Rules; 

 

	 	f)	a schedule or annexure forms part of these Rules; 

  

	 	g)	a reference to any agreement or document (including, without limitation, these Rules) is to that agreement or document (and, where applicable, any of its provisions) as
amended, novated, supplemented or replaced from time to time; 

  

	 	h)	where an expression is defined, another part of speech or grammatical form of that expression has a corresponding meaning; 

 

	 	i)	a reference to a “related body corporate” of a body corporate is to a body corporate which is related to that body corporate within the meaning of section 50
of the Corporations Act; 

  

	 	j)	a reference to an “associate” of a person is to: 

  

	 	i)	a person acting in concert with the first person, 

  

	 	ii)	a person controlled, directly or indirectly, by the first person, or 

  

	 	iii)	a person who acts in accordance with the directions, instructions or wishes of the first person, 

in respect of the matter to which the reference to an associate relates; 

  
 5 

	 	k)	a reference to “dollars” or “$” is to Australian currency; 

 

	 	l)	a reference to bankruptcy or winding up includes bankruptcy, winding up, liquidation, dissolution, becoming an insolvent under administration (as defined in section 9
of the Corporations Act), the appointment of an administrator and the occurrence of anything analogous or having a substantially similar effect to any of those conditions or matters under the law of any applicable jurisdiction, and to the
procedures, circumstances and events which constitute any of those conditions or matters; and 

  

	 	m)	a reference to “amendment” includes addition, alteration, deletion, extension, modification and variation. 

 

	1.3	Headings 

 In these Rules,
headings are for convenience of reference only and do not affect interpretation. 
  

	1.4	Object of Plan 

 The
object of the Plan is to assist in the recruitment, reward, retention and motivation of employees of the Group. 
  

	2.	ADMINISTRATION 

  

	2.1	Committee’s authority 

The Board or a committee appointed by the Board for the purpose under the constitution of the Company may manage and administer the Plan
for the Company and the Committee has ail powers necessary to do so. 
  

	2.2	Total number of Shares 

At any time, the aggregate of: 
  

	 	a)	the total number of Shares which the Company would have to issue if all Options granted under this Plan which have not lapsed were exercised; and

  

	 	b)	the total number of Shares which the Company would have to issue if all options which have been granted under employee incentive schemes of the Company, which have not
lapsed were exercised; and 

  

	 	c)	the total number of Shares issued under employee incentive schemes of the Company during the period of 5 years preceding that time, 

must not exceed 5 per cent of the number of issued Shares at that time (whether fully paid or partly paid). 

In working out the aggregate number of Shares the Company can issue, disregard any Share or option for a Share or option for a Share
acquired or Share issued: 
  

	 	a)	to or by a person situated outside Australia at time of receipt of the offer; 

  
 6 

	 	b)	by way of or as a result of an excluded offer or invitation within the meaning in the Corporations Law as it stood before 13 March 2000; and

  

	 	c)	by way of or as a result of an offer which does not need disclosure to investors because of section 708 of the Corporations Act. 

 

	2.3	Determination of eligibility 

 The Committee may from time to time in its absolute discretion decide: 
  

	 	a)	that an Employee is eligible to participate in the Plan; 

  

	 	b)	whether or not the Participant is already a Holder) the number of Options for which the Participant may at that time be invited to apply; 

 

	 	c)	the Exercise Conditions (if any) to be applicable to the Options for which the Participant may at that time be invited to apply. 

In making these determinations, the Committee must consider: 

 

	 	a)	the Employee’s position with the Group and the services provided to the Group by the Employee; 

 

	 	b)	the Employee’s record of employment or service with the Group; 

  

	 	c)	the Employee’s potential contribution to the growth of the Group; 

  

	 	d)	any other matters which tend to indicate the Employee’s merit; and 

  

	 	e)	the terms of any offer made to the Employee to become an employee. 

  

	2.4	Determination of price 

When the Committee decides to invite a Participant to apply for an Option, it must, in its absolute discretion (but subject to clause 6),
also determine the Exercise Price for that Option subject to any restrictions in the Listing Rules. 
  

	2.5	Disputes 

 Any dispute or
difference of any nature arising in relation to the Plan: 
  

	 	a)	must be referred to the Committee; and 

  

	 	b)	the Committee’s decision on that dispute or difference is final and binding on the Company, the participants and the Holders in all respects.

  
 7 

	2.6	Directions from Board 

The Board may at any time and from time to time: 
  

	 	a)	give directions to the Committee as to the manner of the exercise by the Committee of any of its discretions under these Rules or the Plan; and

  

	 	b)	amend any of those directions, 

and where the Board has given such a direction, the Committee must exercise the relevant discretion in accordance with that direction.

  

	3.	METHOD OF INVITATION 

  

	3.1	Invitations 

 The
Committee may from time to time give a Participant notice inviting the Participant to apply for Options and: 
  

	 	a)	must specify in the invitation: 

  

	 	i)	the date of the invitation; 

  

	 	ii)	the Participant; 

  

	 	iii)	the number of Options for which the Participant is invited to apply; 

  

	 	iv)	the amount payable (if any) by the Participant as consideration for the Options and the terms of its payment (which may include the circumstances in which the Company
must refund some or all of that amount); 

  

	 	v)	the Exercise Price for each Option and where the Exercise Price is to be worked out in the future under a formulae, the formulae for determining the Exercise Price and
an example based on the dollar equivalent of that price were that formulae applied at the date of the invitation; 

  

	 	vi)	the Vesting Period for each Option; 

  

	 	vii)	the Option Period for each Option; 

  

	 	viii)	the Exercise Conditions (if any) determined by the Committee to be applicable in respect of each Option; 

 

	 	ix)	the closing date for applying for each Option; 

  

	 	x)	how the Company will during the Option Period, within a reasonable period of the Participant so requesting, make available to the Participant, the current market price
of Shares; and 

  

	 	xi)	how the Participant is to apply for the Option; 

  

	 	b)	must include with the invitation: 

  

	 	i)	a copy, or a summary, of these Rules; and 

  

	 	ii)	an Acceptance Form; and 

  
 8 

	 	c)	must undertake in the invitation that during the Option Period, within a reasonable period of the Participant, so requesting: 

 

	 	i)	if the invitation is accompanied by a summary of these Rules, the Company will provide the Participant, without charge, with a copy of these Rules;

  

	 	ii)	the Company will make available to the Participant the current market price of Shares. 

 

	3.2	Participant may apply 

Where a Participant receives an invitation under clause 3.1, the Participant may apply for the Options specified in the invitation,

  

	4.	APPLICATION FOR OPTIONS 

  

	4.1	Application 

 A
Participant who wishes to apply for Options specified in an invitation made under clause 3 must on or before the closing date stated in the invitation (or any later date that the Company may allow either generally or in a particular case):

  

	 	a)	do what is specified in the invitation in order to apply for the Option; and 

 

	 	b)	execute the Acceptance Form, or arrange for the execution of the Acceptance Form on the Participant’s behalf and deliver it to the Committee, and

 upon so accepting the Participant agrees to be bound by the Rules. 

 

	4.2	Grant and Certificate 

Upon receipt of a duly completed Acceptance Form, the Company must: 

 

	 	a)	grant the relevant Options to the Participant; and 

  

	 	b)	must issue the Holder an Option Certificate in respect of those Options. 

  

	5.	OPTION TO SUBSCRIBE 

  

	5.1	Exercise 

 The Participant
may exercise any Option granted to the Participant under clause 4.2 only: 
  

	 	a)	during an Exercise Period for the Option; 

  

	 	b)	by giving a notice and doing all the other things required by clause 5.2 during that time; and 

  
 9 

	 	c)	if the Participant at the same time either: 

  

	 	i)	exercises a number of Options so that the Company will issue a minimum of a number of Shares or multiple of a number that the Committee determines; or

  

	 	ii)	exercises all the Options granted to the Participant which the Participant is then entitled to exercise. 

The exercise of an Option does not prevent the exercise of any other Option. 

 

	5.2	Notice 

 To exercise an
Option the Participant must give a notice specifying that it exercises the Option to the Company accompanied by: 
  

	 	a)	the relevant Option Certificate; and 

  

	 	b)	payment of the full amount of the Exercise Price in accordance with clause 5.3. 

 Exercise of an Option is only effective when the Company receives full value for the full amount of the Exercise Price. 
  

	5.3	Payment 

 All payments of
the Exercise Price for an Option must be made by cheque, bank draft or postal order made out in favour of the Company. 
  

	5.4	Allotment 

 Not more than
ten Business Days after the exercise of an Option becomes effective, the Company must allot and issue to the Participant the Shares the subject of the Option. 
  

	5.5	Share allotted upon exercise of Option 

 The Shares allotted and issued following exercise of an Option, upon allotment rank pari passu in all respects (including as to dividends the entitlement to which is determined after the allotment) with
those then issued fully paid Shares which are entitled to participate in full in any dividend and are subject to the constitution of the Company. 
  

	5.6	Lapse 

 Each Option
lapses: 
  

	 	a)	on exercise of the Option under clause 5.2; 

  

	 	b)	if the Option is not exercised under clause 5.2 during the Option Period, at the end of the Option Period; 

 

	 	c)	if the Participant: 

  

	 	i)	subject to clause 10.2, dies; 

  

	 	ii)	ceases to be an Employee during the Vesting Period; or 

  

	 	iii)	subject to clause 10.3, ceases to be an Employee after the Vesting Period and the Option is not exercised within 30 Business Days after that happens;

  

	 	d)	if the Committee becomes aware of circumstances which, in the reasonable opinion of the Committee indicate that the Participant has acted fraudulently, dishonestly or
in a manner which is in breach of his or her obligations to the Company or any Associated Company and the Committee (in its absolute discretion) determines that the Option lapses; or 

  
 10 

 if the Company commences to be wound up; 

 

	5.7	Balance certificate 

 If
the Participant exercises less than ail of the Options referred to in an Option Certificate, the Committee must issue to the Holder an Option Certificate in respect of the Options not exercised at that time. 

 

	5.8	Listing on ASX 

 The
Shares to be issued to any Participant upon exercise of an Option will not be quoted on any stock exchange on which the Shares of the Company are quoted until the Option is exercised, at which time the Company must apply to ASX (and any other stock
exchange on which the Shares of the Company are quoted) for, and will use its best endeavours to obtain, quotation for those Shares. 
  

	5.9	No additional rights 

 The
Plan does not give a Participant any additional rights to compensation or damages as a result of the termination of employment or appointment. 
  

	6.	ADJUSTMENTS 

  

	6.1	New issues 

 Where after
the Vesting Period and before the end of the Option Period the Company gives holders of Shares the right (pro-rata with existing shareholdings) to subscribe for additional securities and the Option is not exercised as contemplated in clause 6.2, the
Exercise Price of an Option after the issue of those securities is adjusted in accordance with the formula set out in schedule 1. 
  

	6.2	Rights/entitlements issues 

Where after the Vesting Period but during the Option Period of an Option, the Company makes a pro rata offer or invitation to holders of
Shares of securities of the Company or any other entity, the Company must give the Participant notice not less than 9 Business Days before the Record Date to determine entitlements to receive that offer or invitation to enable the Participant to
exercise the Option and receive that offer or invitation in respect of the Shares allotted on exercise of the Option. 
  

	6.3	Pro-rata bonus issues 

Where during the Option Period the Company makes a pro-rata bonus issue to holders of Shares and an Option is not exercised before the
Record Date to determine entitlements to that bonus issue, the number of securities to be issued on exercise of the Option is the number of Shares before that bonus issue plus the number of securities which would have been issued to the Holder if
the Option had been exercised before that Record Date. 

  
 11 

	6.4	Sub-division or consolidation 

 Where during the Option Period the Company subdivides or consolidates its Shares, the Options must be subdivided or consolidated {as the case may be) in the same ratio as the Shares and the Exercise Price
must be amended in inverse proportion to that ratio. 
  

	6.5	Return of capital 

 Where
during the Option Period the Company makes a return of capital, the number of Options remains the same, and the Exercise Price of each Option is reduced by the same amount as the amount returned in relation to each Share (or in relation to a number
of Shares equal to the number of Shares to be issued on exercise of the Option if that number is not 1). 
  

	6.6	Cancellation of capital that is lost 

 Where during the Option Period the Company makes a cancellation of any paid up share capital that is lost or not represented by available assets, the number of Options and the Exercise Price of each
Option is unaltered. 
  

	6.7	Pro rata cancellation of capital 

 Where during the Option Period the Company reduces its issued capital on a pro rata basis, the number of Options must be reduced in the same ratio as the Shares and the Exercise Price of each Option must
be amended in inverse proportion to that ratio. 
  

	6.8	General reorganisation 

Where during the Option Period the Company reorganises its issued capital in any way not contemplated by this clause 6, the number of
Options or the Exercise Price, or both, must be reorganised so that the Participant will not receive a benefit that holders of Shares do not receive. 
  

	6.9	Notice of adjustment 

 The
Company must give notice to Holders of any adjustment to the number description or items of security which are to be issued on exercise of an Option or to the Exercise Price in accordance with the applicable Listing Rules. This notice may be in the
form of a revised Option Certificate. 
  

	6.10	Listing Rules 

 Each
adjustment contemplated by the provisions of this clause 6 is subject to its being consistent with the Listing Rules. The Company may amend the terms of any Option, or the rights of any Holder under this Plan, to comply with the Listing Rules
applying at the time to any reorganisation of capital of the Company, 
  

	6.11	Cumulative adjustments 

Each adjustment provided for in clauses 6.1 to 6.8 (inclusive) is to be made to either or both the Shares and the Exercise Price in
respect of each Option granted and unexercised at the time the relevant clause applies on each occasion during the Option Period of the Option that the relevant clause applies. 

 

	6.12	Rounding 

 Before an
Option is exercised under clause 5.1, ail adjustment calculations are to be carried out including all fractions (in relation to both the Shares and the Exercise Price of the Option), but on exercise the number of Shares issued is rounded down to the
next lower whole number and the Exercise Price rounded up to the next higher cent. 

  
 12 

	7.	DURATION OF THE PLAN 

  

	7.1	Discretionary 

 The Plan
continues in operation until the Committee decides to terminate or discontinue it. 
  

	7.2	Suspension 

 The Committee
may decide to suspend the operation of the Plan either for a fixed period or indefinitely and may also decide to end any period of suspension. 
  

	7.3	No prejudice 

 If the Plan
terminates or is discontinued or suspended for any reason, that does not prejudice the accrued rights of Holders or Participants. 
  

	8.	AMENDMENT OF THE PLAN 

  

	8.1	Consistency with Trading Rules 

 If the Company is either (or both) admitted to the official list of ASX or a member of CHESS, the following provisions apply (unless ASX or ASTC waives the relevant Trading Rule in writing); 

 

	 	a)	despite anything contained in this Plan, if the Trading Rules prohibit an act being done, the act must not be done; 

 

	 	b)	nothing in this Plan prevents an act being done that the Trading Rules require to be done; 

 

	 	c)	if the Trading Rules require an act to be done or not to be done, authority is given for that act to be done or not to be done (as the case may be);

  

	 	d)	if the Trading Rules require this Plan or the terms of the issue of the Options to contain a provision and they do not contain such a provision, this Plan or the terms
of issue of the Options (as the case may be) are taken to contain that provision; 

  

	 	e)	if the Trading Rules require this Plan or the terms of the issue of the Options not to contain a provision and they contain such a provision, this Plan or the terms of
issue of the Options (as the case may be) are taken not to contain that provision; and 

  

	 	f)	if any provision of this Plan or the terms of the issue of the Options are or become inconsistent with the Trading Rules, this Plan or the terms of issue of the Options
(as the case may be) are taken not to contain that provision to the extent of the inconsistency. 

  
 13 

	8.2	By the Committee 

 Subject
to clause 8.3, the Committee may at any time and from time to time by resolution: 
  

	 	a)	amend ail or any of these Rules or ail or any of the rights or obligations of the Participants or Holders or any of them; and 

 

	 	b)	formulate (and subsequently amend) special terms and conditions, in addition to those set out in these Rules, to apply to Participants employed in, resident in, or who
are citizens of, a particular jurisdiction. 

  

	8.3	Listing Rules 

 The
Committee’s exercise of its powers under clause 8.1 is subject to any restrictions or procedural requirements relating to the amendment of the terms of an employee incentive scheme or of issued options imposed by the Listing Rules and
applicable to the Plan or the Options, as the case may be, unless those restrictions or requirements are relaxed or waived by ASX or any of its delegates either generally or in a particular case or class of cases and either expressly or by
implication. 
  

	8.4	Hardship 

 The Committee
may, if it reasonably forms the opinion that the operation of any term of an Option or of this Plan is or may be unfair, harsh or unconscionable for any Participant in the circumstances relating to that Participant, alter, amend or vary that term or
its operation by notice in writing to the affected Participant. 
  

	9.	NOTICES AND CORRESPONDENCE 

  

	9.1	To the Company 

 Any
notice required to be given by a Holder or Participant to the Company or the Committee or any correspondence from a Holder or Participant to the Company or the Committee in connection with the Plan must be in writing signed by (or on behalf of) the
person giving it and must be given or made to the principal place of business of the Company or any other address of which the Company gives notice. 
  

	9.2	To a Participant 

 Any
notice required to be given by the Company or the Committee to a Holder or Participant or any correspondence from the Company or the Committee to a Holder or Participant in connection with the Plan must be in writing and must be given or made by a
person authorised by the Committee on behalf of the Company or the Committee to the place of employment of the relevant person or to the last address of that person given to the Company. 

 

	10.	TRANSFER OF THE OPTION 

  

	10.1	No transfer 

 Each Option
is personal to the Participant and is not transferable, transmissible, assignable or chargeable, except in accordance with clause 10.2, clause 10.3 or with the prior written consent of the Committee. 

 

	10.2	Death 

 If the Participant
dies after the Vesting Period and before the end of the Option Period, with the written approval of the Committee in its absolute discretion, the Option may (but only at a time permitted by the approval and in accordance with any conditions
specified in the approval) be exercised by the legal personal representatives of the Participant in accordance with clause 5.1 and to the extent necessary for this to occur, the Option may be transferred to the legal personal representatives
and does not lapse. 

  
 14 

	10.3	Termination of Employment 

if the Participant ceases to be an Employee after the Vesting Period and before the end of the Option Period, the Committee may in its
absolute discretion (on any conditions which it thinks fit) decide that the Option does not lapse under clause 5.6(c) (iii) but lapses at the time and subject to the conditions it may specify by notice to the Participant. In making a decision under
this clause, the Committee may consider any relevant matter (including, without limitation, whether the Participant ceased to be an Employee by reason of retirement, ill-health, accident or redundancy). 

  
 15 

 SCHEDULE 1 

 

			
	O’ = O - E	 	[P - (S + D)]
		 	     N + 1
	  
 Where:

		
	O’=	 	the new Exercise Price of the Option or the Minimum Price, whichever is the greater.
		
	O =	 	the old Exercise Price of the Option.
		
	E =	 	the number of Shares into which an Option is exercisable.
		
	P =	 	the average closing price (excluding special crossings, overnight sales and exchange traded option exercises) on the Stock Exchange Automated Trading System provided for the trading
of securities on ASX of Shares (weighted by reference to volume) during the 5 trading days before the ex rights date or ex entitlements date.
		
	S =	 	the subscription price for one security under the renounceable rights or entitlements issue,
		
	D =	 	the dividend due but not yet paid on existing Shares (except those to be issued under the renounceable rights issue or entitlements issue).
		
	N =	 	number of Shares with rights or entitlements required to be held to receive a right to one new security.

  
 16Exhibit

LIMELIGHT NETWORKS, INC.
Amended and Restated 2007 Equity Incentive Plan
1.Purposes of the Plan.  The purposes of this 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.
The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights, Performance Units and Performance Shares.
2.    Definitions.  As used herein, the following definitions will apply:
(a)    “Administrator” means the Board or any of its Committees as will 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, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares.
(d)    “Award Agreement” means the written or electronic agreement setting forth the terms and provisions applicable to each Award granted under the Plan.  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)    The sale of all of the stock of the Company to an unrelated person, entity or group thereof acting in concert;
(iv)    A change in the composition of the Board occurring within a two (2)-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 effective date of the Plan, 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
(v)    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.  Any reference to a section of the Code herein will be a reference to any successor or amended section of the Code.
(h)    “Committee” means a committee of Directors or of other individuals satisfying Applicable Laws appointed by the Board in accordance with Section 4 hereof.
(i)    “Common Stock” means the common stock of the Company.
(j)    “Company” means Limelight Networks, Inc., a Delaware corporation, or any successor thereto.
(k)    “Consultant” means any natural person, including an advisor, engaged by the Company or a Parent or Subsidiary to render bona fide services to such entity, and such services are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.
(l)    “Covered Employee” means an employee who is a “Covered Employee” within the meaning of Section 162(m) of the Code.
(m)    “Director” means a member of the Board.
(n)    “Disability” means total and permanent disability as defined in Section 22(e)(3) of the Code, provided that in the case of Awards other than Incentive Stock Options, the Administrator in its discretion may determine whether a permanent and total disability exists in accordance with uniform and non-discriminatory standards adopted by the Administrator from time to time.  
(o)    “Employee” means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company.  Neither service as a Director nor payment of a director’s fee by the Company will be sufficient to constitute “employment” by the Company.
(p)    “Exchange Act” means the Securities Exchange Act of 1934, as amended.
(q)    “Exchange Program” means a program under which (i) outstanding Awards are surrendered or cancelled in exchange for Awards of the same type (which may have lower exercise prices and different terms), Awards of a different type, and/or cash, (ii) Participants would have the opportunity to transfer any outstanding Awards to a financial institution or other person or entity selected by the Administrator, and/or (iii) the exercise price of an outstanding Award is reduced.  The Administrator will determine the terms and conditions of any Exchange Program in its sole discretion.
(r)    “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 will 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 will be the mean between the high bid and low asked 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 will be determined in good faith by the Administrator.
(s)    “Fiscal Year” means the fiscal year of the Company.
(t)    “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.
(u)    “Inside Director” means a Director who is an Employee.
(v)    “Non-Employee Director” means a member of the Board who is not also an employee of the Company or any Subsidiary.
(w)    “Nonstatutory Stock Option” means an Option that by its terms does not qualify or is not intended to qualify as an Incentive Stock Option.
(x)    “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.
(y)    “Option” means a stock option granted pursuant to the Plan.
(z)    “Outside Director” means a Director who is not an Employee.
(aa)    “Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code.
(bb)    “Participant” means the holder of an outstanding Award.
(cc)    “Performance Criteria” means the criteria that the Administrator selects for purposes of establishing the Performance Goal or Performance Goals for an individual for a Performance Cycle.  The Performance Criteria (which shall be applicable to the organizational level specified by the Administrator, including, but not limited to, the Company or a unit, division, group, or Subsidiary of the Company) that will be used to establish Performance Goals are limited to the following:  total shareholder return, earnings before interest, taxes, depreciation and amortization, net income (loss) (either before or after interest, taxes, depreciation and/or amortization), changes in the market price of the Company’s stock, economic value-added, funds from operations or similar measure, sales or revenue, acquisitions or strategic transactions, operating income (loss), cash flow (including, but not limited to, operating cash flow and free cash flow), return on capital, assets, equity, or investment, return on sales, gross or net profit levels, productivity, expense, margins, operating efficiency, customer satisfaction, working capital, earnings (loss) per share of Common Stock, sales or market shares and number of customers, any of which may be measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group.  The Committee may appropriately adjust any evaluation performance under a Performance Criterion to exclude any of the following events that occurs during a Performance Cycle: (i) asset write-downs or impairments, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reporting results, (iv) accruals for reorganizations and restructuring programs, and (v) any item of an unusual nature or of a type that indicates infrequency of occurrence, or both, including those described in the Financial Accounting Standards Board’s authoritative guidance and/or in management’s discussion and analysis of financial condition of operations appearing the Company’s annual report to stockholders for the applicable year.
(dd)    “Performance Cycle” means one or more periods of time, which may be of varying and overlapping durations, as the Administrator may select, over which the attainment of one or more Performance Criteria will be measured for the purpose of determining a grantee’s right to and the payment of an Award, the vesting and/or payment of which is subject to the attainment of one or more Performance Goals.  Each such period shall not be less than 12 months.
(ee)    “Performance Goals” means, for a Performance Cycle, the specific goals established in writing by the Administrator for a Performance Cycle based upon the Performance Criteria.
(ff)    “Performance Share” means an Award denominated in Shares which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine pursuant to Section 10.
(gg)    “Performance Unit” means an Award which may be earned in whole or in part upon attainment of performance goals or other vesting criteria as the Administrator may determine and which may be settled for cash, Shares or other securities or a combination of the foregoing  pursuant to Section 10.
(hh)    “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.
(ii)    “Plan” means this Amended and Restated 2007 Equity Incentive Plan.
(jj)     “Restricted Stock” means Shares issued pursuant to a Restricted Stock award under Section 7 of the Plan, or issued pursuant to the early exercise of an Option.
(kk)    “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.
(ll)    “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.
(mm)    “Section 16(b)”  means Section 16(b) of the Exchange Act.
(nn)    “Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder.
(oo)    “Service Provider” means an Employee, Director or Consultant.
(pp)    “Share” means a share of the Common Stock, as adjusted in accordance with Section 14 of the Plan.
(qq)    “Stock Appreciation Right” means an Award, granted alone or in connection with an Option, that pursuant to Section 9 is designated as a Stock Appreciation Right.
(rr)    “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.  
(a)    Stock Subject to the Plan.  Subject to the provisions of Section 14 of the Plan, the maximum aggregate number of Shares that may be issued under the Plan is 10,406,230 Shares, plus [any Shares subject to stock options or similar awards granted under the Limelight Networks, Inc. Amended and Restated 2003 Incentive Compensation Plan (the “Old Plan”) that expire or otherwise terminate without having been exercised in full and Shares issued pursuant to awards granted under the Old Plan that are forfeited to or repurchased by the Company.]  The Shares may be authorized, but unissued, or reacquired Common Stock.
(b)    Automatic Share Reserve Increase.  The number of Shares available for issuance under the Plan shall be increased on the first day of each Fiscal Year beginning with the 2017 Fiscal Year, in an amount equal to the least of (A) 4,500,000 Shares, (B) 4% of the outstanding Shares on the last day of the immediately preceding Fiscal Year or (C) such number of Shares determined by the Board.
(c)    Lapsed Awards.  If an Award expires or becomes unexercisable without having been exercised in full, is surrendered pursuant to an Exchange Program, or, with respect to Restricted Stock, Restricted Stock Units, Performance Units or Performance Shares, is forfeited to or repurchased by the Company due to failure to vest, the unpurchased Shares (or for Awards other than Options or Stock Appreciation Rights the forfeited or repurchased Shares) which were subject thereto will become available for future grant or sale under the Plan (unless the Plan has terminated).  With respect to Stock Appreciation Rights, only Shares actually issued pursuant to a Stock Appreciation Right will cease to be available under the Plan; all remaining Shares under Stock Appreciation Rights will remain available for future grant or sale under the Plan (unless the Plan has terminated).  Shares that have actually been issued under the Plan under any Award will not be returned to the Plan and will not become available for future distribution under the Plan; provided, however, that if Shares issued pursuant to Awards of Restricted Stock, Restricted Stock Units, Performance Shares or Performance Units are repurchased by the Company or are forfeited to the Company, such Shares will become available for future grant under the Plan.  Shares used to pay the exercise price of an Award or to satisfy the tax withholding obligations related to an Award will become available for future grant or sale 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.  Notwithstanding the foregoing and, subject to adjustment as provided in Section 14, the maximum number of Shares that may be issued upon the exercise of Incentive Stock Options shall equal the aggregate Share number stated in Section 3(a), cumulatively increased by the number of Shares provided in Section 3(b), plus, to the extent allowable under Section 422 of the Code and the Treasury Regulations promulgated thereunder, any Shares that become available for issuance under the Plan pursuant to Section 3(c). In addition, notwithstanding the foregoing and, subject to adjustment as provided in Section 14, Options or Stock Appreciation Rights with respect to no more than five (5) million Shares may be granted to any one individual grantee during any one calendar year period,
(d)    Share Reserve.  The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as will be sufficient to satisfy the requirements of 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 Awards granted hereunder as “performance-based compensation” within the meaning of Section 162(m) of the Code, the Plan will be administered by a Committee of two (2) 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 will be structured to satisfy the requirements for exemption under Rule 16b-3.
(iv)    Other Administration.  Other than as provided above, the Plan will be administered by (A) the Board or (B) a Committee, which committee will 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 will 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 to be covered by each Award granted hereunder;
(iv)    to approve forms of Award Agreements 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 relating thereto, based in each case on such factors as the Administrator will determine;
(vi)    to determine the terms and conditions of any, and to institute any Exchange Program without stockholder approval;
(vii)    to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan; 
(viii)    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;
(ix)    to modify or amend each Award (subject to Section 20(c) of the Plan), including the discretionary authority to extend the post-termination exercisability period of Awards;
(x)    to allow Participants to satisfy withholding tax obligations in such manner as prescribed in Section 15;
(xi)    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;
(xii)    to allow a Participant to defer the receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award
(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 will be final and binding on all Participants and any other holders of Awards.
5.    Eligibility.  Nonstatutory Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares and Performance Units may be granted to Service Providers.  Incentive Stock Options may be granted only to Employees.
6.    Stock Options.
(a)    Limitations.  Each Option will be designated in the Award 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 Participant during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such Options will be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a), Incentive Stock Options will be taken into account in the order in which they were granted.  The Fair Market Value of the Shares will be determined as of the time the Option with respect to such Shares is granted.
(b)    Term of Option.  The term of each Option will be stated in the Award Agreement.  In the case of an Incentive Stock Option, the term will 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 a Participant 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 will 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 will be determined by the Administrator, subject to the following:
(1)    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 will be no less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant.
b)    granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
(2)    In the case of a Nonstatutory Stock Option, the per Share exercise price will be no less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant.
(3)    Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant pursuant to a transaction described in, and in a manner consistent with, Section 424(a) of the Code.
(ii)    Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator will fix the period within which the Option may be exercised and will determine any conditions that must be satisfied before the Option may be exercised.
(iii)    Form of Consideration.  The Administrator will 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 will determine the acceptable form of consideration at the time of grant.  Such consideration may consist entirely of: (1) cash; (2) check; (3) promissory note, (4) other Shares, provided Shares acquired directly or indirectly from the Company, (A) have been owned by the Participant and not subject to substantial risk of forfeiture for more than six 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 will be exercised; (5) consideration received by the Company under a broker-assisted (or other) cashless exercise program implemented by the Company in connection with the Plan; (6) any combination of the foregoing methods of payment; or (7) such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.
(d)    Exercise of Option.
(i)    Procedure for Exercise; Rights as a Stockholder.  Any Option granted hereunder will 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.  An Option may not be exercised for a fraction of a Share.
An Option will be deemed exercised when the Company receives: (i) notice of exercise (in such form as the Administrator specify from time to time) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is exercised (together with applicable withholding taxes).  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 will be issued in the name of the Participant or, if requested by the Participant, in the name of the Participant 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 will exist with respect to the Shares subject to an Option, notwithstanding the exercise of the Option.  The Company will 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 14 of the Plan.
Exercising an Option in any manner will 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 a Participant ceases to be a Service Provider, other than upon the Participant’s death or Disability, the Participant 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 will remain exercisable for three (3) months following the Participant’s termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified by the Administrator, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(iii)    Disability of Participant.  If a Participant ceases to be a Service Provider as a result of the Participant’s Disability, the Participant 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 will remain exercisable for twelve (12) months following the Participant’s termination.  Unless otherwise provided by the Administrator, if on the date of termination the Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will revert to the Plan.  If after termination the Participant does not exercise his or her Option within the time specified herein, the Option will terminate, and the Shares covered by such Option will revert to the Plan.
(iv)    Death of Participant.  If a Participant dies while a Service Provider, the Option may be exercised following the Participant’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 Participant’s designated beneficiary, provided such beneficiary has been designated prior to Participant’s death in a form acceptable to the Administrator.  If no such beneficiary has been designated by the Participant, then such Option may be exercised by the personal representative of the Participant’s estate or by the person(s) to whom the Option is transferred pursuant to the Participant’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 will remain exercisable for twelve (12) months following Participant’s death.  Unless otherwise provided by the Administrator, if at the time of death Participant is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option will immediately revert to the Plan.  If the Option is not so exercised within the time specified herein, the Option will terminate, and the Shares covered by such Option will 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, the Company as escrow agent will hold Shares of Restricted Stock 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 or at such other time as the Administrator may determine.  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 provides otherwise.  If any such dividends or distributions are paid in Shares, the Shares will be subject to the same restrictions 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.  After the Administrator determines that it will grant Restricted Stock Units under the Plan, it shall advise the Participant in an Award Agreement of the terms, conditions, and restrictions related to the grant, including the number of Restricted Stock Units.
(b)    Vesting Criteria and Other Terms.  The Administrator shall 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.  The Administrator may set vesting criteria based upon the achievement of Company-wide, business unit, or individual goals (including, but not limited to, continued employment), or any other basis determined by the Administrator in its discretion.
(c)    Earning Restricted Stock Units.  Upon meeting the applicable vesting criteria, the Participant shall be entitled to receive a payout as determined by the Administrator.  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.  Except in the case of Restricted Stock Units with a deferred settlement date that complies with Section 409A, at the end of the vesting period, payment of earned Restricted Stock Units shall be made as soon as practicable after the date(s) determined by the Administrator and set forth in the Award Agreement, subject to compliance with Section 409A.  The Administrator, in its sole discretion, may only settle earned Restricted Stock Units in cash, Shares, or a combination of both.  Restricted Stock Units with deferred settlement dates are subject to Section 409A and shall contain such additional terms and conditions as the Administrator shall determine in its sole discretion in order to comply with the requirements of Section 409A.
(e)    Cancellation.  On the date set forth in the Award Agreement, all unearned Restricted Stock Units shall be forfeited to the Company.
9.    Stock Appreciation Rights.  
(a)    Grant of Stock Appreciation Rights.  Subject to the terms and conditions of the Plan, a Stock Appreciation Right may be granted to Service Providers at any time and from time to time as will be determined by the Administrator, in its sole discretion.  
(b)    Number of Shares.  The Administrator will have complete discretion to determine the number of Stock Appreciation Rights granted to any Service Provider.
(c)    Exercise Price and Other Terms.  The per share exercise price for the Shares to be issued pursuant to exercise of an Stock Appreciation Right shall be determined by the Administrator and shall be no less than one hundred percent (100%) of the Fair Market Value per share on the date of grant.  Otherwise, subject to Section 6(a) of the Plan, the Administrator, subject to the provisions of the Plan, shall have complete discretion to determine the terms and conditions of Stock Appreciation Rights granted under the Plan.
(d)    Stock Appreciation Right Agreement.  Each Stock Appreciation Right grant will be evidenced by an Award Agreement that will specify the exercise price, the term of the Stock Appreciation Right, the conditions of exercise, and such other terms and conditions as the Administrator, in its sole discretion, will determine.
(e)    Expiration of Stock Appreciation Rights.  An Stock Appreciation Right granted under the Plan will expire upon the date determined by the Administrator, in its sole discretion, and set forth in the Award Agreement.  Notwithstanding the foregoing, the rules of Section 6(d) also will apply to Stock Appreciation Rights.
(f)    Payment of Stock Appreciation Right Amount.  Upon exercise of an Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:
(i)    The difference between the Fair Market Value of a Share on the date of exercise over the exercise price; times
(ii)    The number of Shares with respect to which the Stock Appreciation Right is exercised.
At the discretion of the Administrator, the payment upon Stock Appreciation Right exercise may be in cash, in Shares of equivalent value, or in some combination thereof.
10.    Performance Units and Performance Shares. 
(a)    Grant of Performance Units/Shares.  Performance Units and Performance Shares may be granted to Service Providers at any time and from time to time, as will be determined by the Administrator, in its sole discretion.  
(b)    Value of Performance Units/Shares.  Each Performance Unit will have an initial value that is established by the Administrator on or before the date of grant.  Each Performance Share will have an initial value equal to the Fair Market Value of a Share on the date of grant.
(c)    Performance Objectives and Other Terms.  The Administrator will set Performance Criteria which, depending on the extent to which they are met, will determine the number or value of Performance Units/Shares that will be paid out to the Service Providers.  The Administrator shall define in an objective fashion the manner of calculating the Performance Criteria it selects to use for any Performance Cycle.  Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division, business unit, or an individual.  Each Award of Performance Units/Shares will be evidenced by an Award Agreement that will specify the Performance Cycle, and such other terms and conditions as the Administrator, in its sole discretion, will determine.  With respect to each Performance Units/Shares granted to a Covered Employee, the Administrator shall select, within the first 90 days of a Performance Cycle (or, if shorter, within the maximum period allowed under Section 162(m) of the Code) the Performance Criteria for such grant, and the Performance Goals with respect to each Performance Criterion (including a threshold level of performance below which no amount will become payable with respect to such Award).  Each Performance Unit/Share will specify the amount payable, or the formula for determining the amount payable, upon achievement of the various applicable performance targets.  The Performance Criteria established by the Administrator may be (but need not be) different for each Performance Cycle and different Performance Goals may be applicable to Performance-Based Awards to different Covered Employees.
(d)    Form and Timing of Payment of Performance Units/Shares.  Following the completion of a Performance Cycle, the Administrator shall meet to review and certify in writing whether, and to what extent, the Performance Goals for the Performance Cycle have been achieved and, if so, to also calculate and certify in writing the amount of the payout of the number of Performance Units/Shares earned for the Performance Cycle.  The Administrator shall then determine the actual size of each Covered Employee’s payout of the number of Performance Units/Shares.  Payment of earned Performance Units/Shares will be made as soon as practicable after the expiration of the applicable Performance Cycle.  The Administrator, in its sole discretion, may pay earned Performance Units/Shares in the form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Cycle) or in a combination thereof.
(e)    Cancellation of Performance Units/Shares.  On the date set forth in the Award Agreement, all unearned or unvested Performance Units/Shares will be forfeited to the Company, and again will be available for grant under the Plan.
(f)    Maximum Award Payable.  The maximum number of Performance Units/Shares payable to any one Covered Employee under the Plan for a Performance Cycle is five (5) million shares of Common Stock (subject to adjustment as provided in Section 14 hereof) or $10 million in the case of Performance Units/Shares that are cash-based Awards.
11.    Formula Awards to Outside Directors.
(a)    General.  Outside Directors will be entitled to receive all types of Awards (except Incentive Stock Options) under this Plan, including discretionary Awards not covered under this Section 11.  All grants of Awards to Outside Directors pursuant to this Section will be automatic and nondiscretionary, except as otherwise provided herein, and will be made in accordance with the following provisions:
(b)    Type of Option.  If Options are granted pursuant to this Section they will be Nonstatutory Stock Options and, except as otherwise provided herein, will be subject to the other terms and conditions of the Plan.
(c)    No Discretion.  No person will have any discretion to select which Outside Directors will be granted Awards under this Section or to determine the number of Shares to be covered by such Awards (except as provided in Sections 11(g) and 14).
(d)    Initial Award.  Each person who first becomes an Outside Director will be automatically granted Restricted Stock Units, an Option to purchase such number of Shares as is determined from time to time by resolution of the Administrator, or a combination thereof (the “Initial Award”) on or about the date on which such person first becomes an Outside Director, whether through election by the stockholders of the Company or appointment by the Board to fill a vacancy; provided, however, that an Inside Director who ceases to be an Inside Director, but who remains a Director, will not receive an Initial Award.
(e)    Annual Award.  Each Outside Director will be automatically granted Restricted Stock Units, an Option to purchase such number of Shares as is determined from time to time by resolution of the Administrator, or a combination thereof (an “Annual Award”) on each date of the annual meeting of the stockholders of the Company beginning in 2016.
(f)    Terms.  The terms of each Option Award granted pursuant to this Section, if any, will be as follows:
(i)    The term of the Award will be ten (10) years.
(ii)    The exercise price for Shares subject to Awards will be 100% of the Fair Market Value on the grant date.
(iii)    Subject to Sections 11(g) and 14, the Initial Award will vest and become exercisable as to one thirty-sixth (1/36th) of the Shares subject to the Initial Award on the date one month following the vesting commencement date of such Initial Award, and an additional one thirty-sixth (1/36th) of the total shares subject to the Initial Award shall vest and become exercisable on the same day as the vesting commencement date of each calendar month thereafter, provided that the Participant continues to serve as a Director through each such date.
(iv)    Subject to Sections 11(g) and 14, the Annual Award will vest and become exercisable as to one hundred percent (100%) of the Shares subject to such Award on the day prior to the next year’s annual shareholder meeting (but in no event later than December 31 of the calendar year following the calendar year during which the Annual Award is granted), provided that the Participant continues to serve as a Director through such date.
(g)    Adjustments.  The Administrator in its discretion may change and otherwise revise the terms of Awards granted under this Section 11, including, without limitation, the number of Shares and exercise prices thereof, for Awards granted on or after the date the Administrator determines to make any such change or revision.  
(h)    Maximum Awards to Non-Employee Directors.  Notwithstanding anything to the contrary in this Plan, the value of all Awards awarded under this Plan and all other cash compensation paid by the Company to any Non-Employee Director in any calendar year shall not exceed $500,000.  For the purpose of this limitation, the value of any Award shall be its grant date fair value, as determined in accordance with ASC 718 or successor provision but excluding the impact of estimated forfeitures related to service-based vesting provisions.
12.    Leaves of Absence/Transfer Between Locations.  Unless the Administrator provides otherwise, vesting of Awards granted hereunder will be suspended during any unpaid leave of absence.  A Service Provider will 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, or any Subsidiary.  For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, 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 three (3) months following the ninety-first (91st) day of such leave any Incentive Stock Option held by the Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Nonstatutory Stock Option.
13.    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 Participant, only by the Participant.  If the Administrator makes an Award transferable, such Award will contain such additional terms and conditions as the Administrator deems appropriate.
14.    Adjustments; Dissolution or Liquidation; Merger or Change in Control.
(a)    Adjustments.  In the event that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Shares or other securities of the Company, or other change in the corporate structure of the Company affecting the Shares occurs, the Administrator, in order to prevent diminution or enlargement of the benefits or potential benefits intended to be made available under the Plan, shall adjust the number and class of Shares that may be delivered under the Plan and/or the number, class, and price of Shares covered by each outstanding Award, and the numerical Share limits in Sections 3 and 11 of the Plan.
(b)    Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator will notify each Participant as soon as practicable prior to the effective date of such proposed transaction.  To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action.
(c)    Change in Control.  In the event of a merger or Change in Control, each outstanding Award will be treated as the Administrator determines, including, without limitation, that each Award be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  The Administrator shall not be required to treat all Awards similarly in the transaction.
In the event that the successor corporation does not assume or substitute for the Award, the Participant will fully vest in and have the right to exercise all of his or her outstanding Options and Stock Appreciation Rights, including Shares as to which such Awards would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Awards with performance-based vesting, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met.  In addition, if an Option or Stock Appreciation Right is not assumed or substituted in the event of a Change in Control, the Administrator will notify the Participant in writing or electronically that the Option or Stock Appreciation Right will be exercisable for a period of time determined by the Administrator in its sole discretion, and the Option or Stock Appreciation Right will terminate upon the expiration of such period.
For the purposes of this subsection (c), an Award will be considered assumed if, following the Change in Control, the Award confers the right to purchase or receive, for each Share subject to the Award immediately prior to the Change in Control, the consideration (whether stock, cash, or other securities or property) received in the 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 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 an Option or Stock Appreciation Right or upon the payout of a Restricted Stock Unit, Performance Unit or Performance Share, for each Share subject to such 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 Change in Control.
Notwithstanding anything in this Section 14(c) to the contrary, an Award that vests, is earned or paid-out upon the satisfaction of one or more performance goals will not be considered assumed if the Company or its successor modifies any of such performance goals without the Participant’s consent; provided, however, a modification to such performance goals only to reflect the successor corporation’s post-Change in Control corporate structure will not be deemed to invalidate an otherwise valid Award assumption.  
(d)    Outside Director Awards.  With respect to Awards granted to an Outside Director that are assumed or substituted for, if on the date of or following such assumption or substitution the Participant’s status as a Director or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Participant (unless such resignation is at the request of the acquirer), then the Participant will fully vest in and have the right to exercise Options and/or Stock Appreciation Rights as to all of the Shares underlying such Award, including those Shares which would not otherwise be vested or exercisable, all restrictions on Restricted Stock and Restricted Stock Units will lapse, and, with respect to Performance Units and Performance Shares, all performance goals or other vesting criteria will be deemed achieved at one hundred percent (100%) of target levels and all other terms and conditions met.
15.    Tax Withholding.
(a)    Withholding Requirements.  Prior to the delivery of any Shares or cash pursuant to an Award (or exercise thereof), the Company will have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, local, foreign or other taxes (including the Participant’s FICA obligation) required to be withheld with respect to such Award (or exercise thereof).  
(b)    Withholding Arrangements.  The Company and its Subsidiaries shall, to the extent permitted by law, have the right to deduct any such tax withholding obligations from any payment of any kind otherwise due to the grantee and/or to direct that the proceeds from a sale of Common Stock on behalf of a grantee be paid over to the Company to satisfy any such tax withholding obligations.  Subject to approval by the Administrator, the Company’s minimum required tax withholding obligation may be satisfied, in whole or in part, by authorizing the Company to withhold from shares of Common Stock to be issued pursuant to any Award a number of shares with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the withholding amount due.  The Administrator may also require Awards to be subject to mandatory share withholding up to the required withholding amount and/or require the immediate sale of shares subject to the Award to satisfy any withholding obligation.  For purposes of share withholding, the Fair Market Value of withheld shares shall be determined in the same manner as the value of Common Stock includible in income of the Participants.
16.    Section 409A Awards.  To the extent that any Award is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A (a “409A Award”), the Award shall be subject to such additional rules and requirements as specified by the Administrator from time to time in order to comply with Section 409A.  In this regard, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a grantee who is then considered a “specified employee” (within the meaning of Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the grantee’s separation from service, or (ii) the grantee’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A.  Further, the settlement of any such Award may not be accelerated except to the extent permitted by Section 409A.
17.    No Effect on Employment or Service.  Neither the Plan nor any Award will confer upon a Participant any right with respect to continuing the Participant’s relationship as a Service Provider with the Company, nor will they interfere in any way with the Participant’s right or the Company’s right to terminate such relationship at any time, with or without cause, to the extent permitted by Applicable Laws.
18.    Date of Grant.  The date of grant of an Award will 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 will be provided to each Participant within a reasonable time after the date of such grant.
19.    Term of Plan.  Subject to Section 23 of the Plan, the Plan will become effective upon its adoption by the Board.  It will continue in effect for a term of ten (10) years from the date adopted by the Board, unless terminated earlier under Section 20 of the Plan.
20.    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 will 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 will impair the rights of any Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by the Participant and the Company.  Termination of the Plan will 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.
21.    Conditions Upon Issuance of Shares.
(a)    Legal Compliance.  Shares will not be issued pursuant to the exercise of an Award unless the exercise of such Award and the issuance and delivery of such Shares will comply with Applicable Laws and will 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.
22.    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 necessary to the lawful issuance and sale of any Shares hereunder, will relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority will not have been obtained.
23.    Stockholder Approval.  The Plan will be subject to approval by the stockholders of the Company within twelve (12) months after the date the Plan is adopted by the Board.  Such stockholder approval will be obtained in the manner and to the degree required under Applicable Laws.

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