Document:

Exhibit 10.2

 

Allos Therapeutics, Inc.

2008 Equity Incentive Plan, as amended

 

Approved
by the Board: April 24, 2008

Approved
by the Stockholders: June 24, 2008

Amended
by the Board: May 28, 2009

Amended
by the Compensation Committee of the Board: June 12, 2009

Approved
by the Stockholders: June 23, 2009

Termination
Date: April 24, 2018

 

1.                                      General.

 

(a)           Definitions.  Capitalized terms used in the Plan are
defined in Section 13.

 

(b)           Successor and Continuation of Prior
Plans.  The Plan is intended as the successor
to and continuation of the Company’s 2006 Inducement Award Plan, 2002 Broad
Based Equity Incentive Plan and 2000 Stock Incentive Compensation Plan (the “Prior Plans”).
Following the Effective Date, no additional stock awards shall be granted under
the Prior Plans. On the Effective Date, all outstanding stock awards granted
under the Prior Plans shall be deemed to be Stock Awards granted pursuant to
the Plan (including, without limitation, for purposes of Section 3
hereunder), but shall remain subject to the terms of the Prior Plans with
respect to which they were originally granted. All Stock Awards granted
subsequent to the Effective Date shall be subject to the terms of this Plan.

 

(c)           Eligible Stock Award Recipients.  The persons eligible to receive Stock Awards
are Employees, Directors and Consultants.

 

(d)           Available Stock Awards.  The Plan provides for the grant of the
following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory
Stock Options, (iii) Restricted Stock Awards, (iv) Restricted Stock
Unit Awards, (v) Stock Appreciation Rights, (vi) Performance Stock
Awards, and (vii) Other Stock Awards.

 

(e)           Purpose.  The Company’s compensation program is
designed to attract, retain and motivate talented employees to achieve the
Company’s business objectives and create long-term stockholder value. As part
of the compensation program, the Company, by means of the Plan, seeks to secure
and retain the services of the group of persons eligible to receive Stock
Awards as set forth in Section 1(c), to provide incentives for such
persons to exert maximum efforts for the success of the Company and any
Affiliate, and to provide a means by which such eligible recipients may be
given an opportunity to benefit from increases in value of the Common Stock through
the granting of Stock Awards.

 

2.                                      Administration.

 

(a)           Administration by Board.  The Board shall administer the Plan unless
and until the Board delegates administration of the Plan to a Committee or
Committees, as provided in Section 2(c).

 

(b)           Powers of Board.  The Board shall have the power, subject to,
and within the limitations of, the express provisions of the Plan:

 

(i)            To
determine from time to time (A) which of the persons eligible under the
Plan shall be granted Stock Awards; (B) when and how each Stock Award
shall be granted; (C) what type or combination of types of Stock Award
shall be granted; (D) the provisions of each Stock Award granted (which
need not be identical), including the time or times when a person shall be
permitted to receive cash or Common Stock pursuant to a Stock Award; and (E) the
number of shares of Common Stock with respect to which a Stock Award shall be
granted to each such person.

 

(ii)           To
construe and interpret the Plan and Stock Awards granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board,
in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan or in any Stock Award Agreement, in a manner and to
the extent it shall deem necessary or expedient to make the Plan or Stock Award
fully effective.

 

(iii)         To
settle all controversies regarding the Plan and Stock Awards granted under it.

 

 

(iv)          To
accelerate the time at which a Stock Award may first be exercised or the time
during which a Stock Award or any part thereof will vest in accordance with the
Plan, notwithstanding the provisions in the Stock Award stating the time at
which it may first be exercised or the time during which it will vest.

 

(v)            To
effect, at any time and from time to time, with the consent of any adversely
affected Participant, (1) the reduction of the exercise price of any
outstanding Option or the strike price of any outstanding Stock Appreciation
Right; (2) the cancellation of any outstanding Option or Stock Appreciation
Right and the grant in substitution therefor of (a) a new Option or Stock
Appreciation Right under the Plan or another equity plan of the Company
covering the same or different number of shares of Common Stock, (b) a
Restricted Stock Award, (c) a Restricted Stock Unit Award, (d) an
Other Stock Award, (e) cash, and/or (f) other valuable consideration
as determined by the Board in its sole discretion; or (3) any other action
that is treated as a repricing under generally accepted accounting principles.
Notwithstanding the foregoing, the Board may not take any of the foregoing
actions without the prior approval of the Company’s stockholders.

 

(vi)          To
suspend or terminate the Plan at any time. Suspension or termination of the
Plan shall not impair rights and obligations under any Stock Award granted
while the Plan is in effect except with the written consent of the affected
Participant.

 

(vii)         To
amend the Plan in any respect the Board deems necessary or advisable,
including, without limitation, relating to Incentive Stock Options and certain
nonqualified deferred compensation under Section 409A of the Code and/or
to bring the Plan or Stock Awards granted under the Plan into compliance
therewith, subject to the limitations, if any, of applicable law. However,
except as provided in Section 9(a) relating to Capitalization
Adjustments, stockholder approval shall be required for any amendment of the
Plan that either (i) materially increases the number of shares of Common
Stock available for issuance under the Plan, (ii) materially expands the
class of individuals eligible to receive Stock Awards under the Plan, (iii) materially
increases the benefits accruing to Participants under the Plan or materially
reduces the price at which shares of Common Stock may be issued or purchased
under the Plan, (iv) materially extends the term of the Plan, or (v) expands
the types of Stock Awards available for issuance under the Plan, but in each of
(i) through (v) only to the extent required by applicable law or
listing requirements. Except as provided above, rights under any Stock Award
granted before amendment of the Plan shall not be impaired by any amendment of
the Plan unless (i) the Company requests the consent of the affected
Participant, and (ii) such Participant consents in writing.

 

(viii)        To
submit any amendment to the Plan for stockholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of (i) Section 162(m) of
the Code and the regulations thereunder regarding the exclusion of
performance-based compensation from the limit on corporate deductibility of
compensation paid to Covered Employees, (ii) Section 422 of the Code
regarding Incentive Stock Options, or (iii) Rule 16b-3.

 

(ix)          To
approve forms of Stock Award Agreements for use under the Plan and to amend the
terms of any one or more Stock Awards, including, but not limited to,
amendments to provide terms more favorable than previously provided in the
Stock Award Agreement, subject to any specified limits in the Plan that are not
subject to Board discretion; provided
however, that, the rights under any Stock Award shall not be
impaired by any such amendment unless (i) the Company requests the consent
of the affected Participant, and (ii) such Participant consents in
writing. Notwithstanding the foregoing, subject to the limitations of
applicable law, if any, the Board may amend the terms of any one or more Stock
Awards without the affected Participant’s consent if necessary to maintain the
qualified status of the Stock Award as an Incentive Stock Option or to bring
the Stock Award into compliance with Section 409A of the Code and the
related guidance thereunder.

 

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(x)           Generally,
to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and that are not in
conflict with the provisions of the Plan or Stock Awards.

 

(xi)          To
adopt such procedures and sub-plans as are necessary or appropriate to permit
participation in the Plan by Employees, Directors or Consultants who are
foreign nationals or employed outside the United States.

 

(c)           Delegation to Committee.

 

(i)            General.  The Board may delegate some or all of the
administration of the Plan to a Committee or Committees. If administration is
delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board that
have been delegated to the Committee, including the power to delegate to a
subcommittee of the Committee any of the administrative powers the Committee is
authorized to exercise (and references in the Plan to the Board shall
thereafter be to the Committee or subcommittee), subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be
adopted from time to time by the Board. The Board may retain the authority to
concurrently administer the Plan with the Committee and may, at any time,
revest in the Board some or all of the powers previously delegated.

 

(ii)           Section 162(m) and
Rule 16b-3 Compliance.  In the sole discretion of the Board, the
Committee may consist solely of two or more Outside Directors, in accordance
with Section 162(m) of the Code, or solely of two or more Non-Employee
Directors, in accordance with Rule 16b-3. In addition, the Board or the
Committee, in its sole discretion, may (A) delegate to a Committee who
need not be Outside Directors the authority to grant Stock Awards to eligible
persons who are either (I) not then Covered Employees and are not expected
to be Covered Employees at the time of recognition of income resulting from
such Stock Award, or (II) not persons with respect to whom the Company
wishes to comply with Section 162(m) of the Code, or (B) delegate
to a Committee who need not be Non-Employee Directors the authority to grant
Stock Awards to eligible persons who are not then subject to Section 16 of
the Exchange Act.

 

(d)           Delegation to Officers.  The Board may delegate to one or more
Officers the authority to do one or both of the following (i) designate
Officers and Employees of the Company or any of its Subsidiaries to be
recipients of Options (and, to the extent permitted by Delaware law, other
Stock Awards) and the terms thereof, and (ii) determine the number of
shares of Common Stock to be subject to such Stock Awards granted to such
Officers and Employees; provided, however,
that the Board resolutions regarding such delegation shall specify the total
number of shares of Common Stock that may be subject to the Stock Awards
granted by such Officers and that such Officer may not grant a Stock Award to
himself or herself. Notwithstanding anything to the contrary in this Section 2(d),
the Board may not delegate to an Officer authority to determine the Fair Market
Value of the Common Stock pursuant to Section 13(u)(iii) below.

 

(e)           Effect of Board’s Decision.  All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

 

3.                                      Shares Subject to the Plan.

 

(a)           Share Reserve.  Subject to the provisions of Sections 1(b) and
9(a) hereof, the aggregate number of shares of Common Stock that may be
issued pursuant to Stock Awards under the Plan shall not exceed eighteen
million three hundred thousand eight hundred forty three (18,300,843) shares,
provided that (1) all stock awards granted pursuant to the Prior Plans
between April 15, 2008 and the Effective Date, other than stock options
and stock appreciation rights granted with an exercise price of 

 

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at least 100% of such stock award’s fair
market value on the date of grant, will reduce the number of shares available
for issuance under the Plan by 1.35 shares per share granted pursuant to the
stock award, and (2) all Stock Awards granted pursuant to the Plan on or
after the Effective Date, other than Options and Stock Appreciation Rights
granted with an exercise price of at least 100% of such Stock Award’s fair
market value on the date of grant, will reduce the number of shares available
for issuance under the Plan by 1.35 shares per share granted pursuant to the
Stock Award. Shares may be issued in connection with a merger or acquisition as
permitted by Nasdaq Rule 5635(c)(3) or, if applicable, NYSE Listed
Company Manual Section 303A.08, or AMEX Company Guide Section 711 and
such issuance shall not reduce the number of shares available for issuance
under the Plan.

 

(b)           Reversion of Shares to the Share
Reserve.  If any (i) Stock
Award shall for any reason expire or otherwise terminate, in whole or in part,
without having been exercised in full, (ii) shares of Common Stock issued
to a Participant pursuant to a Stock Award are forfeited back to or repurchased
by the Company because of the failure to meet a contingency or condition
required for the vesting of such shares, (iii) Stock Award is settled in
cash, or (iv) shares of Common Stock are cancelled in accordance with the
cancellation and regrant provisions of Section 2(b)(v), then the shares of
Common Stock not issued under such Stock Award, or forfeited to or repurchased
by the Company, shall revert to and again become available for issuance under
the Plan. However, if any shares subject to a Stock Award are not delivered to
a Participant because such shares are withheld for the payment of taxes or the
Stock Award is exercised through a reduction of shares subject to the Stock
Award (i.e., “net exercised”) or
an appreciation distribution in respect of a Stock Appreciation right is paid
in shares of Common Stock, the number of shares subject to the Stock Award that
are not delivered to the Participant shall be counted as shares granted under
the Plan and shall not be available for subsequent issuance under the Plan. If
the exercise price of any Stock Award is satisfied by tendering shares of
Common Stock held by the Participant (either by actual delivery or
attestation), then the number of shares so tendered shall not remain available
for issuance under the Plan. Any share of Common Stock that (1) reverts to
and again becomes available for issuance under the Plan pursuant to
clauses (i) through (iv) of the first sentence of this Section 3(b) and
(2) prior to such reversion was granted pursuant to a Stock Award that
reduced the number of shares available for issuance under the Plan by 1.35
shares per share granted pursuant to such Stock Award, shall cause the number
of shares of Common Stock available for issuance under the Plan to increase by 1.35
shares upon such reversion. Further, any share of Common Stock that (A) reverts
to and again becomes available for issuance under any of the Prior Plans
between April 15, 2008 and the Effective Date and (B) prior to such
reversion was granted pursuant to a stock award made under any of the Prior
Plans between April 15, 2008 and the Effective Date that reduced the
number of shares available for issuance under the Plan by 1.35 shares per share
granted pursuant to such stock award, shall cause the number of shares of
Common Stock available for issuance under the Plan to increase by 1.35 shares
upon such reversion.

 

(c)           Incentive Stock Option Limit.  Subject to the provisions of Section 9(a) relating
to Capitalization Adjustments, the aggregate maximum number of shares of Common
Stock that may be issued pursuant to the exercise of Incentive Stock Options
shall not exceed ten million (10,000,000) shares.

 

(d)           Source of Shares.  The stock issuable under the Plan shall be
shares of authorized but unissued or reacquired Common Stock, including shares
repurchased by the Company on the open market.

 

4.                                      Eligibility.

 

(a)           Eligibility for Specific Stock
Awards.  Incentive Stock Options may be
granted only to employees of the Company or a “parent corporation” or “subsidiary
corporation” thereof (as such terms are defined in Sections 424(e) and
424(f) of the Code). Stock Awards other than Incentive Stock Options may
be granted to Employees, Directors and Consultants.

 

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(b)           Ten Percent Stockholders.  A Ten Percent Stockholder shall not be
granted an Incentive Stock Option unless the exercise price of such Option is
at least one hundred ten percent (110%) of the Fair Market Value of the Common
Stock on the date of grant and the Option is not exercisable after the
expiration of five (5) years from the date of grant.

 

(c)           Section 162(m) Limitation.  Subject to the provisions of Section 9(a) relating
to Capitalization Adjustments, at such time as the Company may be subject to
the applicable provisions of Section 162(m) of the Code, no Employee
shall be eligible to be granted during any calendar year Stock Awards whose
value is determined by reference to an increase over an exercise or strike
price of at least one hundred percent (100%) of the Fair Market Value of the
Common Stock on the date the Stock Award is granted covering more than two
million five hundred thousand (2,500,000) shares of Common Stock.

 

(d)           Consultants.  A Consultant shall be eligible for the grant
of a Stock Award only if, at the time of grant, a Form S-8 Registration
Statement under the Securities Act (“Form S-8”) is available to register
either the offer or the sale of the Company’s securities to such Consultant.

 

5.                                      Option Provisions.

 

Each Option shall be in such
form and shall contain such terms and conditions as the Board shall deem
appropriate. All Options shall be separately designated Incentive Stock Options
or Nonstatutory Stock Options at the time of grant, and, if certificates are
issued, a separate certificate or certificates shall be issued for shares of
Common Stock purchased on exercise of each type of Option. If an Option is not
specifically designated as an Incentive Stock Option, then the Option shall be
a Nonstatutory Stock Option. The provisions of separate Options need not be
identical; provided, however,
that each Option Agreement shall conform to (through incorporation of
provisions hereof by reference in the Option Agreement or otherwise) the
substance of each of the following provisions:

 

(a)           Term.  Subject to the provisions of Section 4(b) regarding
Ten Percent Stockholders, no Option shall be exercisable after the expiration
of ten (10) years from the date of its grant or such shorter period
specified in the Option Agreement.

 

(b)           Exercise Price.  Subject to the provisions of Section 4(b) regarding
Ten Percent Stockholders, the exercise price of each Option shall be not less
than one hundred percent (100%) of the Fair Market Value of the Common Stock
subject to the Option on the date the Option is granted. Notwithstanding the
foregoing, an Option may be granted with an exercise price lower than one
hundred percent (100%) of the Fair Market Value of the Common Stock subject to
the Option if such Option is granted pursuant to an assumption or substitution
for another option in a manner consistent with the provisions of Section 424(a) of
the Code (whether or not such options are Incentive Stock Options).

 

(c)           Consideration.  The purchase price of Common Stock acquired
pursuant to the exercise of an Option shall be paid, to the extent permitted by
applicable law and as determined by the Board in its sole discretion, by any
combination of the methods of payment set forth below. The Board shall have the
authority to grant Options that do not permit all of the following methods of
payment (or otherwise restrict the ability to use certain methods) and to grant
Options that require the consent of the Company to utilize a particular method
of payment. The methods of payment permitted by this Section 5(c) are:

 

(i)            by
cash, check, bank draft or money order payable to the Company;

 

(ii)           pursuant
to a program developed under Regulation T as promulgated by the Federal
Reserve Board that, prior to the issuance of the stock subject to the Option,
results in either the receipt of cash (or check) by the Company or the receipt
of irrevocable instructions to pay the aggregate exercise price to the Company
from the sales proceeds;

 

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(iii)         by
delivery to the Company (either by actual delivery or attestation) of shares of
Common Stock;

 

(iv)          by
a “net exercise” arrangement pursuant to which the Company will reduce the
number of shares of Common Stock issuable upon exercise by the largest whole
number of shares with a Fair Market Value that does not exceed the aggregate
exercise price; provided, however,
the Company shall accept a cash or other payment from the Participant to the
extent of any remaining balance of the aggregate exercise price not satisfied
by such reduction in the number of whole shares to be issued; provided, further, that shares of Common
Stock will no longer be subject to an Option and will not be exercisable
thereafter to the extent that (A) shares issuable upon exercise are
reduced to pay the exercise price pursuant to the “net exercise,” (B) shares
are delivered to the Participant as a result of such exercise, and (C) shares
are withheld to satisfy tax withholding obligations; or

 

(v)            in
any other form of legal consideration that may be acceptable to the Board in
its sole discretion and permissible under applicable law.

 

(d)           Transferability of Options.  The Board may, in its sole discretion, impose
such limitations on the transferability of Options as the Board shall
determine. In the absence of such a determination by the Board to the contrary,
the following restrictions on the transferability of Options shall apply:

 

(i)            Restrictions
on Transfer.  An Option
shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder; provided, however,
that the Board may, in its sole discretion, permit transfer of the Option in a
manner that is not prohibited by applicable tax and securities laws upon the Optionholder’s
request; provided, further,
except as explicitly provided in this Section 5(d), in no instance shall
the Board permit transfer of an Option for consideration.

 

(ii)           Domestic
Relations Orders. 
Notwithstanding the foregoing, an Option may be transferred pursuant to
a domestic relations order, provided,
however, that if an Option is an Incentive Stock Option, such Option
may be deemed to be a Nonstatutory Stock Option as a result of such transfer.

 

(iii)         Beneficiary
Designation. 
Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form provided by or otherwise satisfactory
to the Company and any broker designated by the Company to effect Option
exercises, designate a third party who, in the event of the death of the
Optionholder, shall thereafter be entitled to exercise the Option. In the
absence of such a designation, the executor or administrator of the
Optionholder’s estate shall be entitled to exercise the Option.

 

(e)           Vesting of Options Generally.  The total number of shares of Common Stock
subject to an Option may vest and therefore become exercisable in periodic
installments that may or may not be equal. The Option may be subject to such
other terms and conditions on the time or times when it may or may not be
exercised (which may be based on the satisfaction of Performance Goals or other
criteria) as the Board may deem appropriate. The vesting provisions of
individual Options may vary. The provisions of this Section 5(e) are
subject to any Option provisions governing the minimum number of shares of
Common Stock as to which an Option may be exercised.

 

(f)            Termination of Continuous Service.  In the event that an Optionholder’s
Continuous Service terminates (other than upon the Optionholder’s death or
Disability), the Optionholder may exercise his or her Option (to the extent
that the Optionholder was entitled to exercise such Option as of the date of
termination of Continuous Service) but only within such period of time ending
on the earlier of (i) the date three (3) months following the
termination of the Optionholder’s Continuous Service (or such longer or shorter
period specified in the Option Agreement), or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination
of Continuous Service, the 

 

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Optionholder does not exercise his or her
Option within the time specified herein or in the Option Agreement (as
applicable), the Option shall terminate.

 

(g)           Extension of Termination Date.  An Optionholder’s Option Agreement may
provide that if the exercise of the Option following the termination of the
Optionholder’s Continuous Service (other than upon the Optionholder’s death or
Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of a period of three (3) months after the termination of the
Optionholder’s Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements, or (ii) the
expiration of the term of the Option as set forth in the Option Agreement.

 

(h)           Disability of Optionholder.  In the event that an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s Disability, the
Optionholder may exercise his or her Option (to the extent that the
Optionholder was entitled to exercise such Option as of the date of termination
of Continuous Service), but only within such period of time ending on the
earlier of (i) the date twelve (12) months following such termination
of Continuous Service (or such longer or shorter period specified in the Option
Agreement), or (ii) the expiration of the term of the Option as set forth
in the Option Agreement. If, after termination of Continuous Service, the
Optionholder does not exercise his or her Option within the time specified
herein or in the Option Agreement (as applicable), the Option shall terminate.

 

(i)            Death of Optionholder.  In the event that (i) an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s death, or (ii) the
Optionholder dies within the period (if any) specified in the Option Agreement
after the termination of the Optionholder’s Continuous Service for a reason
other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by
the Optionholder’s estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
option upon the Optionholder’s death, but only within the period ending on the
earlier of (i) the date eighteen (18) months following the date of
death (or such longer or shorter period specified in the Option Agreement), or (ii) the
expiration of the term of such Option as set forth in the Option Agreement. If,
after the Optionholder’s death, the Option is not exercised within the time
specified herein or in the Option Agreement (as applicable), the Option shall
terminate.

 

(j)            Non-Exempt Employees.  No Option granted to an Employee who is a
non-exempt employee for purposes of the Fair Labor Standards Act shall be first
exercisable for any shares of Common Stock until at least six months following
the date of grant of the Option. The foregoing provision is intended to operate
so that any income derived by a non-exempt employee in connection with the
exercise or vesting of an Option will be exempt from his or her regular rate of
pay.

 

6.                                      Provisions of Stock Awards other than Options.

 

(a)           Restricted Stock Awards.  Each Restricted Stock Award Agreement shall
be in such form and shall contain such terms and conditions as the Board shall
deem appropriate. To the extent consistent with the Company’s Bylaws, at the
Board’s election, shares of Common Stock may be (x) held in book entry
form (subject to the Company’s instructions until any restrictions relating to
the Restricted Stock Award lapse); or (y) evidenced by a certificate,
which certificate shall be held in such form and manner as determined by the
Board. The terms and conditions of Restricted Stock Award Agreements may change
from time to time, and the terms and conditions of separate Restricted Stock
Award Agreements need not be identical, provided,
however, that each Restricted Stock Award 

 

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Agreement shall conform to (through
incorporation of the provisions hereof by reference in the agreement or
otherwise) the substance of each of the following provisions:

 

(i)            Consideration.  A Restricted Stock Award may be awarded in
consideration for (A) cash, check, bank draft or money order payable to
the Company; (B) past or future services actually or to be rendered to the
Company or an Affiliate; or (C) any other form of legal consideration that
may be acceptable to the Board in its sole discretion and permissible under
applicable law.

 

(ii)           Vesting.  Shares of Common Stock awarded under a
Restricted Stock Award Agreement may be subject to forfeiture to the Company in
accordance with a vesting schedule to be determined by the Board, or may be
granted with no forfeiture or other vesting restrictions.

 

(iii)         Termination
of Participant’s Continuous Service.  In the event a Participant’s Continuous
Service terminates, the Company may receive via a forfeiture condition or a
repurchase right, any or all of the shares of Common Stock held by the
Participant which have not vested as of the date of termination of Continuous
Service under the terms of the Restricted Stock Award Agreement.

 

(iv)          Transferability.  Rights to acquire shares of Common Stock
under the Restricted Stock Award Agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the
Restricted Stock Award Agreement, as the Board shall determine in its sole
discretion, so long as Common Stock awarded under the Restricted Stock Award
Agreement remains subject to the terms of the Restricted Stock Award Agreement.

 

(b)           Restricted Stock Unit Awards.  Each Restricted Stock Unit Award Agreement
shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. The terms and conditions of Restricted Stock Unit Award
Agreements may change from time to time, and the terms and conditions of
separate Restricted Stock Unit Award Agreements need not be identical, provided, however, that each Restricted
Stock Unit Award Agreement shall conform to (through incorporation of the
provisions hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:

 

(i)            Consideration.  At the time of grant of a Restricted Stock
Unit Award, the Board will determine the consideration, if any, to be paid by
the Participant upon delivery of each share of Common Stock subject to the
Restricted Stock Unit Award. The consideration to be paid (if any) by the
Participant for each share of Common Stock subject to a Restricted Stock Unit
Award may be paid in any form of legal consideration that may be acceptable to
the Board in its sole discretion and permissible under applicable law.

 

(ii)           Vesting.  At the time of the grant of a Restricted
Stock Unit Award, the Board may impose such restrictions or conditions to the
vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems
appropriate, or may impose no such restrictions (subject to clause vii
below).

 

(iii)         Payment.  A Restricted Stock Unit Award may be settled
by the delivery of shares of Common Stock, their cash equivalent, any
combination thereof or in any other form of consideration, as determined by the
Board and contained in the Restricted Stock Unit Award Agreement.

 

(iv)          Additional
Restrictions.  At the time
of the grant of a Restricted Stock Unit Award, the Board, as it deems
appropriate, may impose such restrictions or conditions that delay the delivery
of the shares of Common Stock (or their cash equivalent) subject to a
Restricted Stock Unit Award to a time after the vesting of such Restricted
Stock Unit Award.

 

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(v)            Dividend
Equivalents.  Dividend
equivalents may be credited in respect of shares of Common Stock covered by a
Restricted Stock Unit Award, as determined by the Board and contained in the
Restricted Stock Unit Award Agreement. At the sole discretion of the Board,
such dividend equivalents may be converted into additional shares of Common
Stock covered by the Restricted Stock Unit Award in such manner as determined
by the Board. Any additional shares covered by the Restricted Stock Unit Award
credited by reason of such dividend equivalents will be subject to all the
terms and conditions of the underlying Restricted Stock Unit Award Agreement to
which they relate.

 

(vi)          Termination
of Participant’s Continuous Service.  Except as otherwise provided in the
applicable Restricted Stock Unit Award Agreement, such portion of the
Restricted Stock Unit Award that has not vested will be forfeited upon the
Participant’s termination of Continuous Service.

 

(vii)         Compliance
with Section 409A of the Code.  Notwithstanding anything to the contrary set
forth herein, any Restricted Stock Unit Award granted under the Plan that is
not exempt from the requirements of Section 409A of the Code shall
incorporate terms and conditions necessary to avoid the consequences of Section 409A(a)(1) of
the Code. Such restrictions, if any, shall be determined by the Board and
contained in the Restricted Stock Unit Award Agreement evidencing such
Restricted Stock Unit Award.

 

(c)           Stock Appreciation Rights.  Each Stock Appreciation Right Agreement shall
be in such form and shall contain such terms and conditions as the Board shall
deem appropriate. Stock Appreciation Rights may be granted as stand-alone Stock
Awards or in tandem with other Stock Awards. The terms and conditions of Stock
Appreciation Right Agreements may change from time to time, and the terms and
conditions of separate Stock Appreciation Right Agreements need not be
identical; provided, however, that
each Stock Appreciation Right Agreement shall conform to (through incorporation
of the provisions hereof by reference in the agreement or otherwise) the
substance of each of the following provisions:

 

(i)            Term.  No Stock Appreciation Right shall be exercisable
after the expiration of ten (10) years from the date of its grant or such
shorter period specified in the Stock Appreciation Right Agreement.

 

(ii)           Strike
Price.  Each Stock Appreciation Right
will be denominated in shares of Common Stock equivalents. The strike price of
each Stock Appreciation Right shall not be less than one hundred percent (100%)
of the Fair Market Value of the Common Stock equivalents subject to the Stock
Appreciation Right on the date of grant.

 

(iii)         Calculation
of Appreciation.  The
appreciation distribution payable on the exercise of a Stock Appreciation Right
will be not greater than an amount equal to the excess of (A) the
aggregate Fair Market Value (on the date of the exercise of the Stock
Appreciation Right) of a number of shares of Common Stock equal to the number
of share of Common Stock equivalents in which the Participant is vested under
such Stock Appreciation Right, and with respect to which the Participant is
exercising the Stock Appreciation Right on such date, over (B) the strike
price.

 

(iv)          Vesting.  At the time of the grant of a Stock
Appreciation Right, the Board may impose such restrictions or conditions to the
vesting of such Stock Appreciation Right as it, in its sole discretion, deems
appropriate.

 

(v)            Exercise.  To exercise any outstanding Stock
Appreciation Right, the Participant must provide written notice of exercise to
the Company in compliance with the provisions of the Stock Appreciation Right
Agreement evidencing such Stock Appreciation Right.

 

9

 

(vi)          Payment.  The appreciation distribution in respect of a
Stock Appreciation Right may be paid in Common Stock, in cash, in any
combination of the two or in any other form of consideration, as determined by
the Board and set forth in the Stock Appreciation Right Agreement evidencing
such Stock Appreciation Right.

 

(vii)         Termination
of Continuous Service.  In
the event that a Participant’s Continuous Service terminates, the Participant
may exercise his or her Stock Appreciation Right (to the extent that the
Participant was entitled to exercise such Stock Appreciation Right as of the
date of termination of Continuous Service) but only within such period of time
ending on the earlier of (A) the date three (3) months following the
termination of the Participant’s Continuous Service (or such longer or shorter
period specified in the Stock Appreciation Right Agreement), or (B) the
expiration of the term of the Stock Appreciation Right as set forth in the
Stock Appreciation Right Agreement. If, after termination of Continuous
Service, the Participant does not exercise his or her Stock Appreciation Right
within the time specified herein or in the Stock Appreciation Right Agreement
(as applicable), the Stock Appreciation Right shall terminate.

 

(viii)        Compliance
with Section 409A of the Code.  Notwithstanding anything to the contrary set
forth herein, any Stock Appreciation Rights granted under the Plan that are not
exempt from the requirements of Section 409A of the Code shall incorporate
terms and conditions necessary to avoid the consequences described in Section 409A(a)(1) of
the Code. Such restrictions, if any, shall be determined by the Board and
contained in the Stock Appreciation Right Agreement evidencing such Stock
Appreciation Right.

 

(d)           Performance Stock Awards.  A Performance Stock Award is either a
Restricted Stock Award or Restricted Stock Unit Award that may be granted or
may vest based upon the attainment during a Performance Period of certain
Performance Goals. A Performance Stock Award may, but need not, require the
completion of a specified period of Continuous Service. The length of any
Performance Period, the Performance Goals to be achieved during the Performance
Period, and the measure of whether and to what degree such Performance Goals
have been attained shall be conclusively determined by the Committee in its
sole discretion. The maximum benefit to be received by any Participant in a
calendar year attributable to Performance Stock Awards described in this Section 6(d) shall
not exceed the value of two million five hundred thousand (2,500,000) shares of
Common Stock. In addition, to the extent permitted by applicable law and the
applicable Award Agreement, the Board may determine that cash may be used in
payment of Performance Stock Awards.

 

(e)           Other Stock Awards.  Other forms of Stock Awards valued in whole
or in part by reference to, or otherwise based on, Common Stock may be granted
either alone or in addition to Stock Awards provided for under Section 5
and the preceding provisions of this Section 6. Subject to the provisions
of the Plan, the Board shall have sole and complete authority to determine the
persons to whom and the time or times at which such Other Stock Awards will be
granted, the number of shares of Common Stock (or the cash equivalent thereof)
to be granted pursuant to such Other Stock Awards and all other terms and
conditions of such Other Stock Awards.

 

7.                                      Covenants of the Company.

 

(a)           Availability of Shares.  During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

 

(b)           Securities Law Compliance.  The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require
the Company to register under the Securities Act the Plan, any Stock Award or
any Common Stock issued or issuable pursuant to any such Stock Award. If, after
reasonable efforts, the Company is unable to obtain from any such regulatory 

 

10

 

commission or agency the authority that counsel
for the Company deems necessary for the lawful issuance and sale of Common
Stock under the Plan, the Company shall be relieved from any liability for
failure to issue and sell Common Stock upon exercise of such Stock Awards
unless and until such authority is obtained.

 

(c)           No Obligation to Notify.  The Company shall have no duty or obligation
to any holder of a Stock Award to advise such holder as to the time or manner
of exercising such Stock Award. Furthermore, the Company shall have no duty or
obligation to warn or otherwise advise such holder of a pending termination or
expiration of a Stock Award or a possible period in which the Stock Award may
not be exercised. The Company has no duty or obligation to minimize the tax
consequences of a Stock Award to the holder of such Stock Award.

 

8.                                      Miscellaneous.

 

(a)           Use of Proceeds.  Proceeds from the sale of shares of Common
Stock pursuant to Stock Awards shall constitute general funds of the Company.

 

(b)           Corporate Action Constituting Grant
of Stock Awards.  Corporate
action constituting a grant by the Company of a Stock Award to any Participant
shall be deemed completed as of the date of such corporate action, unless
otherwise determined by the Board, regardless of when the instrument,
certificate, or letter evidencing the Stock Award is communicated to, or
actually received or accepted by, the Participant.

 

(c)           Stockholder Rights.  No Participant shall be deemed to be the
holder of, or to have any of the rights of a holder with respect to, any shares
of Common Stock subject to such Stock Award unless and until (i) such
Participant has satisfied all requirements for exercise of the Stock Award
pursuant to its terms, and (ii) the issuance of the Common Stock pursuant
to such exercise has been entered into the books and records of the Company.

 

(d)           No Employment or Other Service
Rights.  Nothing in the Plan, any Stock
Award Agreement or other instrument executed thereunder or in connection with
any Stock Award granted pursuant to the Plan shall confer upon any Participant
any right to continue to serve the Company or an Affiliate in the capacity in
effect at the time the Stock Award was granted or shall affect the right of the
Company or an Affiliate to terminate (i) the employment of an Employee
with or without notice and with or without cause, (ii) the service of a
Consultant pursuant to the terms of such Consultant’s agreement with the
Company or an Affiliate, or (iii) the service of a Director pursuant to
the Bylaws of the Company or an Affiliate, and any applicable provisions of the
corporate law of the state in which the Company or the Affiliate is
incorporated, as the case may be.

 

(e)           Incentive Stock Option $100,000
Limitation.  To the
extent that the aggregate Fair Market Value (determined at the time of grant)
of Common Stock with respect to which Incentive Stock Options are exercisable
for the first time by any Optionholder during any calendar year (under all
plans of the Company and any Affiliates) exceeds one hundred thousand dollars
($100,000), the Options or portions thereof that exceed such limit (according
to the order in which they were granted) shall be treated as Nonstatutory Stock
Options, notwithstanding any contrary provision of the applicable Option
Agreement(s).

 

(f)            Investment Assurances.  The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant’s
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the
Participant is acquiring 

 

11

 

Common Stock subject to the Stock Award for the
Participant’s own account and not with any present intention of selling or
otherwise distributing the Common Stock. The foregoing requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (x) the
issuance of the shares upon the exercise or acquisition of Common Stock under
the Stock Award has been registered under a then currently effective
registration statement under the Securities Act, or (y) as to any
particular requirement, a determination is made by counsel for the Company that
such requirement need not be met in the circumstances under the then applicable
securities laws. The Company may, upon advice of counsel to the Company, place
legends on stock certificates issued under the Plan as such counsel deems necessary
or appropriate in order to comply with applicable securities laws, including,
but not limited to, legends restricting the transfer of the Common Stock.

 

(g)           Withholding Obligations.  Unless prohibited by the terms of a Stock
Award Agreement, the Company may, in its sole discretion, satisfy any federal,
state or local tax withholding obligation relating to a Stock Award by any of
the following means (in addition to the Company’s right to withhold from any
compensation paid to the Participant by the Company) or by a combination of
such means: (i) causing the Participant to tender a cash payment; (ii) withholding
shares of Common Stock from the shares of Common Stock issued or otherwise
issuable to the Participant in connection with the Stock Award; provided, however, that no shares of
Common Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law (or such lower amount as may be necessary to
avoid classification of the Stock Award as a liability for financial accounting
purposes); (iii) withholding cash from a Stock Award settled in cash; (iv) withholding
payment from any amounts otherwise payable to the Participant; or (v) by
such other method as may be set forth in the Stock Award Agreement.

 

(h)           Electronic Delivery.  Any reference herein to a “written” agreement
or document shall include any agreement or document delivered electronically or
posted on the Company’s intranet.

 

(i)            Deferrals.  To the extent permitted by applicable law,
the Board, in its sole discretion, may determine that the delivery of Common
Stock or the payment of cash, upon the exercise, vesting or settlement of all
or a portion of any Stock Award may be deferred and may establish programs and
procedures for deferral elections to be made by Participants. Deferrals by
Participants will be made in accordance with Section 409A of the Code.
Consistent with Section 409A of the Code, the Board may provide for
distributions while a Participant is still an employee. The Board is authorized
to make deferrals of Stock Awards and determine when, and in what annual
percentages, Participants may receive payments, including lump sum payments,
following the Participant’s termination of employment or retirement, and
implement such other terms and conditions consistent with the provisions of the
Plan and in accordance with applicable law.

 

(j)            Compliance with Section 409A.  To the extent that the Board determines that
any Stock Award granted under the Plan is subject to Section 409A of the
Code, the Stock Award Agreement evidencing such Stock Award shall incorporate
the terms and conditions necessary to avoid the consequences described in Section 409A(a)(1) of
the Code. To the extent applicable, the Plan and Stock Award Agreements shall
be interpreted in accordance with Section 409A of the Code and Department
of Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be
issued or amended after the Effective Date. Notwithstanding any provision of
the Plan to the contrary, in the event that following the Effective Date the
Board determines that any Stock Award may be subject to Section 409A of
the Code and related Department of Treasury guidance (including such Department
of Treasury guidance as may be issued after the Effective Date), the Board may
adopt such amendments to the Plan and the applicable Stock Award Agreement or
adopt other policies and procedures (including amendments, policies and
procedures with retroactive effect), or take any other actions, that the Board
determines are necessary or appropriate to (1) exempt the Stock Award from
Section 409A of the Code and/or preserve the intended tax treatment of the
benefits provided with respect to the Stock Award, or 

 

12

 

(2) comply with the requirements of Section 409A
of the Code and related Department of Treasury guidance.

 

9.                                      Adjustments upon Changes in Common Stock; Other Corporate Events.

 

(a)           Capitalization Adjustments.  In the event of a Capitalization Adjustment,
the Board shall appropriately and proportionately adjust: (i) the
class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a);
(ii) the class(es) and maximum number of securities that may be issued
pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c);
(iii) the class(es) and maximum number of securities that may be awarded
to any person pursuant to Section 4(c) and 6(d); and (iv) the
class(es) and number of securities and price per share of stock subject to
outstanding Stock Awards. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive.

 

(b)           Dissolution or Liquidation.  Except as otherwise provided in a Stock Award
Agreement, in the event of a dissolution or liquidation of the Company, all
outstanding Stock Awards (other than Stock Awards consisting of vested and
outstanding shares of Common Stock not subject to a forfeiture condition or the
Company’s right of repurchase) shall terminate immediately prior to the
completion of such dissolution or liquidation, and the shares of Common Stock
subject to the Company’s repurchase rights may be repurchased by the Company
notwithstanding the fact that the holder of such Stock Award is providing
Continuous Service, provided, however,
that the Board may, in its sole discretion, cause some or all Stock Awards to
become fully vested, exercisable and/or no longer subject to repurchase or
forfeiture (to the extent such Stock Awards have not previously expired or
terminated) before the dissolution or liquidation is completed but contingent
on its completion.

 

(c)           Corporate Transaction.  The following provisions shall apply to Stock
Awards in the event of a Corporate Transaction unless otherwise provided in the
instrument evidencing the Stock Award or any other written agreement between
the Company or any Affiliate and the holder of the Stock Award or unless
otherwise expressly provided by the Board at the time of grant of a Stock
Award. Except as otherwise stated in the Stock Award Agreement, in the event of
a Corporate Transaction, then, notwithstanding any other provision of the Plan,
the Board shall take one or more of the following actions with respect to Stock
Awards, contingent upon the closing or completion of the Corporate Transaction:

 

(i)            arrange
for the surviving corporation or acquiring corporation (or the surviving or
acquiring corporation’s parent company) to assume or continue the Stock Award
or to substitute a similar stock award for the Stock Award (including, but not
limited to, an award to acquire the same consideration paid to the stockholders
of the Company pursuant to the Corporate Transaction);

 

(ii)           arrange
for the assignment of any reacquisition or repurchase rights held by the
Company in respect of Common Stock issued pursuant to the Stock Award to the
surviving corporation or acquiring corporation (or the surviving or acquiring
corporation’s parent company);

 

(iii)         accelerate
the vesting of the Stock Award (and, if applicable, the time at which the Stock
Award may be exercised) to a date prior to the effective time of such Corporate
Transaction as the Board shall determine (or, if the Board shall not determine
such a date, to the date that is five (5) days prior to the effective date
of the Corporate Transaction), with such Stock Award terminating if not
exercised (if applicable) at or prior to the effective time of the Corporate
Transaction;

 

(iv)          arrange
for the lapse of any reacquisition or repurchase rights held by the Company
with respect to the Stock Award;

 

13

 

(v)            cancel
or arrange for the cancellation of the Stock Award, to the extent not vested or
not exercised prior to the effective time of the Corporate Transaction, in
exchange for such cash consideration as the Board, in its sole discretion, may
consider appropriate; and

 

(vi)          make
a payment, in such form as may be determined by the Board equal to the excess,
if any, of (A) the value of the property the holder of the Stock Award
would have received upon the exercise of the Stock Award, over (B) any
exercise price payable by such holder in connection with such exercise.

 

The Board need not take the
same action with respect to all Stock Awards or with respect to all
Participants.

 

(d)           Change in Control.  A Stock Award may be subject to additional
acceleration of vesting and exercisability upon or after a Change in Control as
may be provided in the Stock Award Agreement for such Stock Award or as may be
provided in any other written agreement between the Company or any Affiliate
and the Participant. A Stock Award may vest as to all or any portion of the
shares subject to the Stock Award (i) immediately upon the occurrence of a
Change in Control, whether or not such Stock Award is assumed, continued, or
substituted by a surviving or acquiring entity in the Change in Control, or (ii) in
the event a Participant’s Continuous Service is terminated, actually or
constructively, within a designated period following the occurrence of a Change
in Control. In the absence of such provisions, no such acceleration shall
occur.

 

10.                               Termination
or Suspension of the Plan.

 

(a)           Plan Term.  The Board may suspend or terminate the Plan
at any time. Unless terminated sooner, the Plan shall terminate on the day
before the tenth (10th) anniversary of the earlier of (i) the date the
Plan is adopted by the Board, or (ii) the date the Plan is approved by the
stockholders of the Company. No Stock Awards may be granted under the Plan
while the Plan is suspended or after it is terminated.

 

(b)           No Impairment of Rights.  Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan
is in effect except with the written consent of the affected Participant.

 

11.                               Effective
Date of Plan.

 

The Plan shall become
effective on the “Effective
Date,” which shall be the later of (i) the date the Plan is
adopted by the Board or (ii) the date the Plan is approved by the
stockholders of the Company.

 

12.                               Choice of
Law.

 

The law of the State of
Colorado shall govern all questions concerning the construction, validity and
interpretation of this Plan, without regard to that state’s conflict of laws
rules.

 

13.                               Definitions.

 

As used in the Plan, the
following definitions shall apply to the capitalized terms indicated below:

 

(a)           “Affiliate” means, at the time of
determination, any “parent” or “subsidiary” of the Company as such terms are
defined in Rule 405 of the Securities Act. The Board shall have the
authority to determine the time or times at which “parent” or “subsidiary”
status is determined within the foregoing definition.

 

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

 

14

 

(c)           “Capitalization Adjustment” means any change
that is made in, or other events that occur with respect to, the Common Stock
subject to the Plan or subject to any Stock Award after the Effective Date
without the receipt of consideration by the Company (through merger, consolidation,
reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of
shares, exchange of shares, change in corporate structure or other transaction
not involving the receipt of consideration by the Company). Notwithstanding the
foregoing, the conversion of any convertible securities of the Company shall
not be treated as a transaction “without the receipt of consideration” by the
Company.

 

(d)           “Cause” means with respect to a Participant,
the occurrence of any of the following events: (i) such Participant’s
conviction of a felony or a crime involving moral turpitude or dishonesty; (ii) such
Participant’s participation in a fraud or act of dishonesty against the Company;
(iii) such Participant’s intentional and material damage to the Company’s
property; (iv) such Participant’s material breach of any contract or
agreement between the Participant and the Company or any of the Company’s
written policies, in each case that is not remedied by such Participant within
fourteen (14) days of written notice of such breach from the Company; or (v) conduct
by such Participant that demonstrates the Participant’s gross unfitness to
continue to serve the Company or on behalf of the Company. The determination
that a termination of the Participant’s Continuous Service is either for Cause
or without Cause shall be made by the Company in its sole discretion. Any
determination by the Company that the Continuous Service of a Participant was terminated
with or without Cause for the purposes of outstanding Stock Awards held by such
Participant shall have no effect upon any determination of the rights or
obligations of the Company or such Participant for any other purpose.

 

(e)           “Change in Control” means the occurrence, in a
single transaction or in a series of related transactions, of any one or more
of the following events:

 

(i)            any
Exchange Act Person becomes the Owner, directly or indirectly, of securities of
the Company representing more than fifty percent (50%) of the combined voting
power of the Company’s then outstanding securities other than by virtue of a
merger, consolidation or similar transaction. Notwithstanding the foregoing, a
Change in Control shall not be deemed to occur (A) on account of the
acquisition of securities of the Company by an investor, any affiliate thereof
or any other Exchange Act Person from the Company in a transaction or series of
related transactions the primary purpose of which is to obtain financing for
the Company through the issuance of equity securities or (B) solely
because the level of Ownership held by any Exchange Act Person (the “Subject Person”)
exceeds the designated percentage threshold of the outstanding voting
securities as a result of a repurchase or other acquisition of voting
securities by the Company reducing the number of shares outstanding, provided
that if a Change in Control would occur (but for the operation of this
sentence) as a result of the acquisition of voting securities by the Company,
and after such share acquisition, the Subject Person becomes the Owner of any
additional voting securities that, assuming the repurchase or other acquisition
had not occurred, increases the percentage of the then outstanding voting
securities Owned by the Subject Person over the designated percentage
threshold, then a Change in Control shall be deemed to occur;

 

(ii)           there
is consummated a merger, consolidation or similar transaction involving
(directly or indirectly) the Company and, immediately after the consummation of
such merger, consolidation or similar transaction, the stockholders of the
Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding
voting securities representing more than fifty percent (50%) of the combined
outstanding voting power of the surviving Entity in such merger, consolidation
or similar transaction or (B) more than fifty percent (50%) of the
combined outstanding voting power of the parent of the surviving Entity in such
merger, consolidation or similar transaction, in each case in substantially the
same proportions as their Ownership of the outstanding voting securities of the
Company immediately prior to such transaction;

 

15

 

(iii)         there
is consummated a complete dissolution or liquidation of the Company, except for
a liquidation into a parent corporation;

 

(iv)          there
is consummated a sale, lease, exclusive license or other disposition of all or
substantially all of the consolidated assets of the Company and its
Subsidiaries, other than a sale, lease, license or other disposition of all or
substantially all of the consolidated assets of the Company and its
Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are Owned by stockholders of the
Company in substantially the same proportions as their Ownership of the
outstanding voting securities of the Company immediately prior to such sale,
lease, license or other disposition; or

 

(v)            individuals
who, on the date the Plan is adopted by the Board, are members of the Board
(the “Incumbent Board”)
cease for any reason to constitute at least a majority of the members of the
Board; provided, however, that if
the appointment or election (or nomination for election) of any new Board
member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member shall, for purposes of
the Plan, be considered as a member of the Incumbent Board.

 

For avoidance of doubt, the
term Change in Control shall not include a sale of assets, merger or other
transaction effected exclusively for the purpose of changing the domicile of
the Company.

 

Notwithstanding the
foregoing or any other provision of the Plan, the definition of Change in
Control (or any analogous term) in an individual written agreement, including
an employment agreement, between the Company or any Affiliate and the
Participant shall supersede the foregoing definition with respect to Stock Awards
subject to such definition or agreement; provided,
however, that if no definition of Change in Control or any analogous
term is set forth in such an individual written agreement, the foregoing
definition shall apply.

 

The Board may, in its sole
discretion and without a Participant’s consent, amend the definition of “Change
in Control” to conform to the definition of “Change in Control” under Section 409A
of the Code, and the regulations thereunder.

 

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

 

(g)           “Committee” means a committee of one (1) or
more Directors to whom authority has been delegated by the Board in accordance
with Section 2(c).

 

(h)           “Common Stock” means the common stock of the
Company.

 

(i)            “Company” means Allos Therapeutics, Inc.,
a Delaware corporation.

 

(j)            “Consultant” means any person, including
an advisor, who is (i) engaged by the Company or an Affiliate to render
consulting or advisory services and is compensated for such services, or (ii) serving
as a member of the board of directors of an Affiliate and is compensated for
such services. However, service solely as a Director, or payment of a fee for
such service, shall not cause a Director to be considered a “Consultant” for
purposes of the Plan.

 

(k)           “Continuous Service” means that the
Participant’s service with the Company or an Affiliate, whether as an Employee,
Director or Consultant, is not interrupted or terminated. A change in the
capacity in which the Participant renders service to the Company or an
Affiliate as an Employee, Consultant or Director or a change in the entity for
which the Participant renders such service, provided that there is no
interruption or termination of the Participant’s service with the Company or an
Affiliate, shall not terminate a Participant’s Continuous Service; provided, however, if the Entity for which
a Participant is rendering services ceases to qualify as an “Affiliate,” as
determined by the Board in its sole discretion, such Participant’s Continuous
Service shall be considered to have terminated on the date such Entity ceases
to qualify as an Affiliate. To the extent permitted by law, the Board or the 

 

16

 

chief executive officer of the Company, in
that party’s sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of: (i) any leave of absence approved
by the Board or the chief executive officer of the Company, including sick
leave, military leave or any other personal leave; or (ii) transfers
between the Company, an Affiliate, or their successors. Notwithstanding the
foregoing, a leave of absence shall be treated as Continuous Service for
purposes of vesting in a Stock Award only to such extent as may be provided in
the Company’s leave of absence policy, in the written terms of any leave of
absence agreement or policy applicable to the Participant, or as otherwise
required by law.

 

(l)            “Corporate Transaction” means the
occurrence, in a single transaction or in a series of related transactions, of
any one or more of the following events:

 

(i)            a
sale or other disposition of all or substantially all, as determined by the
Board in its sole discretion, of the consolidated assets of the Company and its
Subsidiaries;

 

(ii)           a
sale or other disposition of the outstanding securities of the Company
representing at least ninety percent (90%) of the voting power of all such
securities;

 

(iii)         the
consummation of a merger, consolidation or similar transaction following which
the Company is not the surviving corporation; or

 

(iv)          the
consummation of a merger, consolidation or similar transaction following which
the Company is the surviving corporation but the shares of Common Stock
outstanding immediately preceding the merger, consolidation or similar transaction
are converted or exchanged by virtue of the merger, consolidation or similar
transaction into other property, whether in the form of securities, cash or
otherwise.

 

(m)          “Covered Employee” means the chief executive
officer and the four (4) other highest compensated officers of the Company
for whom total compensation is required to be reported to stockholders under
the Exchange Act, as determined for purposes of Section 162(m) of the
Code.

 

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

 

(o)           “Disability” means, with respect to a
Participant, the inability of such Participant to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for
a continuous period of not less than 12 months, as provided in Section 22(e)(3) and
409A(a)(2)(c)(i) of the Code.

 

(p)           “Effective Date” means the effective date of
the Plan as set forth in Section 11.

 

(q)           “Employee” means any person employed by the
Company or an Affiliate. However, service solely as a Director, or payment of a
fee for such services, shall not cause a Director to be considered an “Employee”
for purposes of the Plan.

 

(r)           “Entity” means a corporation, partnership,
limited liability company or other entity.

 

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

 

(t)            “Exchange Act Person” means any natural
person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of
the Exchange Act), except that “Exchange Act Person” shall not include (i) the
Company or any Subsidiary of the Company, (ii) any employee benefit plan
of the Company or any Subsidiary of the Company or any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
any Subsidiary of the Company, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, (iv) an Entity
Owned, directly or indirectly, by the stockholders of the Company in
substantially the same proportions as their Ownership of stock of the Company;
or (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or
14(d) of the Exchange Act) that, as of the Effective Date, is the Owner,
directly or indirectly, of 

 

17

 

securities of the Company representing more
than fifty percent (50%) of the combined voting power of the Company’s then
outstanding securities.

 

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

 

(i)            If
the Common Stock is listed on any established stock exchange or traded on the
Nasdaq Global Select Market or the Nasdaq Global Market, the Fair Market Value
of a share of Common Stock shall be the closing sales price for such stock (or
the closing bid, if no sales were reported) as quoted on such exchange (or the
exchange or market with the greatest volume of trading in the Common Stock) on
the date of determination, as reported in The
Wall Street Journal or such other source as the Board deems
reliable. Unless otherwise provided by the Board, if there is no closing sales
price (or closing bid if no sales were reported) for the Common Stock on the
date of determination, then the Fair Market Value shall be the mean between the
bid and asked prices for the Common Stock on the last preceding date for which
such quotation exists.

 

(ii)           If
the Common Stock is listed or traded on the Nasdaq Capital Market, the Fair
Market Value of a share of Common Stock shall be the mean between the bid and
asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other
source as the Board deems reliable. Unless otherwise provided by the Board, if
there are no such quotations on the date of determination, then the Fair Market
Value shall be the mean between the bid and asked prices for the Common Stock
on the last preceding date for which such quotation exists.

 

(iii)         In
the absence of such markets for the Common Stock, the Fair Market Value shall
be determined by the Board in good faith and in a manner that complies with Section 409A
of the Code.

 

(v)            “Form S-8” has the meaning assigned
thereto in Section 4(d).

 

(w)           “Incentive Stock Option” means an Option which
qualifies as an “incentive stock option” within the meaning of Section 422
of the Code and the regulations promulgated thereunder.

 

(x)           “Non-Employee Director” means a Director who
either (i) is not a current employee or officer of the Company or an
Affiliate, does not receive compensation, either directly or indirectly, from
the Company or an Affiliate for services rendered as a consultant or in any
capacity other than as a Director (except for an amount as to which disclosure
would not be required under Item 404(a) of Regulation S-K
promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess
an interest in any other transaction for which disclosure would be required
under Item 404(a) of Regulation S-K, and is not engaged in a
business relationship for which disclosure would be required pursuant to
Item 404(b) of Regulation S-K; or (ii) is otherwise
considered a “non-employee director” for purposes of Rule 16b-3.

 

(y)           “Nonstatutory Stock Option” means an Option
that does not qualify as an Incentive Stock Option.

 

(z)           “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.

 

(aa)         “Option” means an Incentive Stock Option or a
Nonstatutory Stock Option to purchase shares of Common Stock granted pursuant
to the Plan.

 

(bb)         “Option Agreement” means a written agreement
between the Company and an Optionholder evidencing the terms and conditions of
an Option grant. Each Option Agreement shall be subject to the terms and
conditions of the Plan.

 

18

 

(cc)         “Optionholder” means a person to whom an
Option is granted pursuant to the Plan or, if applicable, such other person who
holds an outstanding Option.

 

(dd)         “Other Stock Award” means an award based in
whole or in part by reference to the Common Stock which is granted pursuant to
the terms and conditions of Section 6(e).

 

(ee)         “Other Stock Award Agreement” means a written
agreement between the Company and a holder of an Other Stock Award evidencing the
terms and conditions of an Other Stock Award grant. Each Other Stock Award
Agreement shall be subject to the terms and conditions of the Plan.

 

(ff)           “Outside Director” means a Director who either
(i) is not a current employee of the Company or an “affiliated corporation”
(within the meaning of Treasury Regulations promulgated under Section 162(m) of
the Code), is not a former employee of the Company or an “affiliated
corporation” who receives compensation for prior services (other than benefits
under a tax-qualified retirement plan) during the taxable year, has not been an
officer of the Company or an “affiliated corporation,” and does not receive
remuneration from the Company or an “affiliated corporation,” either directly
or indirectly, in any capacity other than as a Director, or (ii) is
otherwise considered an “outside director” for purposes of Section 162(m) of
the Code.

 

(gg)         “Own,” “Owned,” “Owner,” “Ownership” A person or Entity shall be deemed
to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership”
of securities if such person or Entity, directly or indirectly, through any
contract, arrangement, understanding, relationship or otherwise, has or shares
voting power, which includes the power to vote or to direct the voting, with
respect to such securities.

 

(hh)         “Participant” means a person to whom a Stock
Award is granted pursuant to the Plan or, if applicable, such other person who
holds an outstanding Stock Award.

 

(ii)           “Performance Criteria” means the one or more
criteria that the Committee shall select for purposes of establishing the
Performance Goals for a Performance Period. The Performance Criteria that shall
be used to establish such Performance Goals may be based on any one of, or
combination of, the following: (i) earnings per share; (ii) earnings
before interest, taxes and depreciation; (iii) earnings before interest,
taxes, depreciation and amortization (EBITDA); (iv) total stockholder
return; (v) return on equity; (vi) return on assets, investment, or
capital employed; (vii) operating margin; (viii) gross margin; (ix) operating
income; (x) net income (before or after taxes); (xi) net operating
income; (xii) net operating income after tax; (xiii) pre- and
after-tax income; (xiv) pre-tax profit; (xv) operating cash flow;
(xvi) sales or revenue targets; (xvii) orders and revenue;
(xviii) increases in revenue or product revenue; (xix) expenses and
cost reduction goals; (xx) improvement in or attainment of expense levels;
(xxi) improvement in or attainment of working capital levels;
(xxii) economic value added (or an equivalent metric); (xxiii) market
share; (xxiv) cash flow; (xxv) cash flow per share; (xxvi) share
price performance; (xxvii) debt reduction; (xxviii) implementation or
completion of projects or processes; (xxix) customer satisfaction;
(xxx) stockholders’ equity; (xxxi) quality measures; and
(xxxii) to the extent that a Stock Award is not intended to comply with Section 162(m) of
the Code, other measures of performance selected by the Committee. Partial
achievement of the specified criteria may result in the payment or vesting
corresponding to the degree of achievement as specified in the Stock Award
Agreement. The Committee shall, in its sole discretion, define the manner of
calculating the Performance Criteria it selects to use for such Performance
Period.

 

(jj)           “Performance Goals” means, for a Performance
Period, the one or more goals established by the Committee for the Performance
Period based upon the satisfaction of the Performance Criteria. Performance Goals
may be based on a Company-wide basis, with respect to one or more business
units, divisions, Affiliates, or business segments, and in either absolute
terms or relative to the performance of one or more comparable companies or the
performance of one or more relevant indices. At the time of the grant of any
Stock Award, the Committee is authorized to determine whether, when calculating

 

19

 

the attainment of Performance Goals for a
Performance Period: (i) to exclude restructuring and/or other nonrecurring
charges; (ii) to exclude exchange rate effects, as applicable, for
non-U.S. dollar denominated net sales and operating earnings; (iii) to
exclude the effects of changes to generally accepted accounting standards
required by the Financial Accounting Standards Board; (iv) to exclude the
effects of any statutory adjustments to corporate tax rates; and (v) to
exclude the effects of any “extraordinary items” as determined under generally
accepted accounting principles. In addition, the Committee retains the
discretion to reduce or eliminate the compensation or economic benefit due upon
attainment of Performance Goals.

 

(kk)        “Performance Period” means one or more periods
of time, which may be of varying and overlapping duration, as the Committee may
select, over which the attainment of one or more Performance Goals will be
measured for the purpose of determining a Participant’s right to and the
payment of a Performance Stock Award.

 

(ll)           “Performance Stock Award” means an award of
shares of Common Stock which is granted pursuant to the terms and conditions of
Section 6(d).

 

(mm)       “Plan” means this Allos Therapeutics, Inc.
2008 Equity Incentive Plan.

 

(nn)         “Prior Plans” has the meaning assigned thereto
in Section 1(b).

 

(oo)         “Restricted Stock Award” means an award of
shares of Common Stock which is granted pursuant to the terms and conditions of
Section 6(a).

 

(pp)         “Restricted Stock Award Agreement” means a
written agreement between the Company and a holder of a Restricted Stock Award
evidencing the terms and conditions of a Restricted Stock Award grant. Each
Restricted Stock Award Agreement shall be subject to the terms and conditions
of the Plan.

 

(qq)         “Restricted Stock Unit Award” means a right to
receive shares of Common Stock which is granted pursuant to the terms and
conditions of Section 6(b).

 

(rr)         “Restricted Stock Unit Award Agreement” means
a written agreement between the Company and a holder of a Restricted Stock Unit
Award evidencing the terms and conditions of a Restricted Stock Unit Award
grant. Each Restricted Stock Unit Award Agreement shall be subject to the terms
and conditions of the Plan.

 

(ss)         “Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act or any successor to Rule 16b-3, as in
effect from time to time.

 

(tt)           “Securities Act” means the Securities Act of
1933, as amended.

 

(uu)         “Stock Appreciation Right” means a right to
receive the appreciation on Common Stock that is granted pursuant to the terms
and conditions of Section 6(c).

 

(vv)          “Stock Appreciation Right Agreement” means a
written agreement between the Company and a holder of a Stock Appreciation
Right evidencing the terms and conditions of a Stock Appreciation Right grant.
Each Stock Appreciation Right Agreement shall be subject to the terms and
conditions of the Plan.

 

(ww)        “Stock Award” means any right to receive
Common Stock granted under the Plan, including an Option, a Restricted Stock
Award, a Restricted Stock Unit Award, a Stock Appreciation Right, a Performance
Stock Award, or any Other Stock Award.

 

(xx)         “Stock Award Agreement” means a written
agreement between the Company and a Participant evidencing the terms and
conditions of a Stock Award grant. Each Stock Award Agreement shall be subject
to the terms and conditions of the Plan.

 

20

 

(yy)         “Subsidiary” means, with respect to the
Company, (i) any corporation of which more than fifty percent (50%) of the
outstanding capital stock having ordinary voting power to elect a majority of
the board of directors of such corporation (irrespective of whether, at the
time, stock of any other class or classes of such corporation shall have or
might have voting power by reason of the happening of any contingency) is at
the time, directly or indirectly, Owned by the Company, and (ii) any
partnership, limited liability company or other entity in which the Company has
a direct or indirect interest (whether in the form of voting or participation
in profits or capital contribution) of more than fifty percent (50%) .

 

(zz)         “Ten Percent Stockholder” means a person who
Owns (or is deemed to Own pursuant to Section 424(d) of the Code)
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or any Affiliate.

 

21Exhibit 4.1

 

ADVENT SOFTWARE, INC.

 

2002 STOCK PLAN

 

(as amended and restated
effective as of May 18, 2005)

(as amended and restated
effective as of April 1, 2008)

(as amended and restated
effective as of April 1, 2009)

 

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
shall apply:

 

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

 

(b)                                 “Affiliated
SAR” means a SAR that is granted in connection with a related Option, and
which automatically will be deemed to be exercised at the same time that the
related Option is exercised.

 

(c)                                  “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.

 

(d)                                 “Award”
means, individually or collectively, a grant under the Plan of Options, SARs,
Restricted Stock, Restricted Stock Units, Performance Units or Performance
Shares.

 

(e)                                  “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.

 

 

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

 

(g)                                 “Cash
Position” means as to any Performance Period, the Company’s level of cash
and cash equivalents.

 

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

 

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

 

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

 

(iii)                     A change in the
composition of the Board occurring within a two-year period, as a result of
which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” means directors
who either (A) are Directors as of the 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

 

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

 

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

 

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

 

(k)                                  “Common
Stock” means the common stock of the Company.

 

(l)                                     “Company”
means Advent Software, Inc., a Delaware corporation.

 

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

 

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

 

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

 

 

(p)                                 “Earnings
Per Share” means as to any Performance Period, the Company’s or a business
unit’s Net Income, divided by a weighted average number of Common Stock
outstanding and dilutive common equivalent shares deemed outstanding.

 

(q)                                 “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 shall be sufficient to constitute “employment” by the Company.

 

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

 

(s)                                  “Exchange
Program” means a program established by the Administrator under which
outstanding Awards are amended to provide for a lower exercise price or
surrendered or cancelled in exchange for (i) Awards with a lower exercise
price, (ii) a different type of Award, (iii) cash, or (iv) a
combination of (i), (ii) and/or (iii).

 

(t)                                    “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,
The NASDAQ including without limitation The NASDAQ National Market or The
NASDAQ SmallCap Market of The NASDAQ Stock Market, its Fair Market Value shall
be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system on the day of determination, as
reported in The Wall Street Journal or such other source as the Administrator
deems reliable;

 

(ii)                        If the Common
Stock is regularly quoted by a recognized securities dealer but selling prices
are not reported, the Fair Market Value of a Share of Common Stock shall be the
mean between the high bid and low 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 shall be
determined in good faith by the Administrator.

 

(u)                                 “Fiscal Year”
means the fiscal year of the Company.

 

(v)                                 “Freestanding
SAR” means a SAR that is granted independently of any Option.

 

(w)                               “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.

 

(x)                                   “Individual
Objectives” means as to a Participant for any Performance Period, the
objective and measurable goals set by a process and approved by the
Administrator (in its discretion).

 

(y)                                 “Net Income”
means as to any Performance Period, the Company’s or a business unit’s income
after taxes.

 

 

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

 

(aa)                            “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.

 

(bb)                          “Operating
Cash Flow” means as to any Performance Period, the Company’s or a business
unit’s sum of Net Income plus depreciation and amortization less capital
expenditures plus changes in working capital comprised of accounts receivable,
inventories, other current assets, trade accounts payable, accrued expenses,
product warranty, advance payments from customers and long-term accrued
expenses.

 

(cc)                            “Operating
Income” means as to any Performance Period, the Company’s or a business
unit’s income from operations but excluding any unusual items.

 

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

 

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

 

(ff)                                “Optionee”
means the holder of an outstanding Option or Stock Purchase Right granted under
the Plan.

 

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

 

(hh)                          “Participant”
means the holder of an outstanding Award, which shall include an Optionee.

 

(ii)                                  “Performance
Period” means any Fiscal Year of the Company or such other period as determined
by the Administrator in its sole discretion.

 

(jj)                                  “Performance
Goals” means the goal(s) (or combined goal(s)) determined by the
Administrator (in its discretion) to be applicable to a Participant with
respect to an Award.  As determined by
the Administrator, the Performance Goals applicable to an Award may provide for
a targeted level or levels of achievement using one or more of the following
measures: (a) Cash Position, (b) Earnings Per Share, (c) Individual
Objectives, (d) Net Income, (e) Operating Cash Flow, (f) Operating
Income, (g) Return on Assets, (h) Return on Equity, (i) Return
on Sales, (j) Revenue, and (k) Total Shareholder Return.  The Performance Goals may differ from
Participant to Participant and from Award to Award.  Prior to the Determination Date, the Plan
Administrator shall determine whether any significant element(s) shall be
included in or excluded from the calculation of any Performance Goal with
respect to any Participant.  “Determination
Date” means the latest possible date that will not jeopardize an Award’s
qualification as performance-based compensation under Section 162(m) of
the Code.  Notwithstanding the previous
sentence, for Awards not intended to qualify as performance-based compensation,
“Determination Date” shall mean such date as the Administrator may
determine in its discretion.  For example
(but not by way of limitation), the Administrator may determine that the
measures for one or more Performance Goals shall be based upon the Company’s
pro-forma results and/or results in accordance with generally accepted
accounting principles.

 

 

(kk)                            “Performance
Share” means an Award granted to a Participant pursuant to Section 9.

 

(ll)                                  “Performance
Unit” means an Award granted to a Participant pursuant to Section 9.

 

(mm)                      “Period of
Restriction” means the period during which shares of Restricted Stock are
subject to forfeiture and/or restrictions on transferability.

 

(nn)                          “Plan”
means this 2002 Stock Plan, as amended and restated.

 

(oo)                          “Restricted
Stock” means an Award of Common Stock pursuant to Section 7 of the
Plan.

 

(pp)                          “Restricted
Stock Unit” means an Award granted to a Participant pursuant to Section 10.

 

(qq)                          “Return on
Assets” means as to any Performance Period, the percentage equal to the
Company’s or a business unit’s Operating Income before incentive compensation,
divided by average net Company or business unit, as applicable, assets.

 

(rr)                                “Return on
Equity” means as to any Performance Period, the percentage equal to the
Company’s Net Income divided by average stockholder’s equity.

 

(ss)                            “Return on
Sales” means as to any Performance Period, the percentage equal to the
Company’s or a business unit’s Operating Income before incentive compensation,
divided by the Company’s or the business unit’s, as applicable, revenue.

 

(tt)                                “Revenue”
means as to any Performance Period, the Company’s or business unit’s net sales.

 

(uu)                          “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.

 

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

 

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

 

(xx)                              “Share”
means a share of the Common Stock, as adjusted in accordance with Section 13
of the Plan.

 

(yy)                          “Stock
Appreciation Right” or “SAR” means an Award, granted alone or in
connection with an Option, that pursuant to Section 8 is designated as a
SAR.

 

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

 

(aaa)                      “Tandem SAR”
means a SAR that is granted in connection with a related Option, the exercise
of which will require forfeiture of the right to purchase an equal number of
Shares 

 

 

under
the related Option (and when a Share is purchased under the Option, the SAR
will be canceled to the same extent).

 

(bbb)                   “Total
Shareholder Return” means as to any Performance Period, the total return
(change in Share price plus reinvestment of any dividends) of a Share.

 

3.                                       Stock Subject
to the Plan.

 

(a)                                  Number of
Shares.  Subject to adjustment as
provided in Section 13 of the Plan, the maximum number of Shares available
for issuance under the Plan shall equal the sum of (i) 3,643,325 Shares,
plus an additional increase of 900,000 Shares effective as of April 1,
2008 and approved by stockholders at the 2008 Annual Meeting, plus an
additional increase of 1,800,000 Shares effective as of April 1, 2009 and
approved by stockholders at the 2009 Annual Meeting, plus (ii) any Shares
(not to exceed 1,937,592) that otherwise would have been returned to the 1992
Stock Plan after December 31, 2004 on account of the expiration,
cancellation or forfeiture of awards granted under the 1992 Stock Plan, plus (iii) any
Shares (not to exceed 92,837) that otherwise would have been returned to the
1998 Stock Plan after December 31, 2004 on account of the expiration,
cancellation or forfeiture of awards granted under the 1998 Stock Plan.  The Shares may be authorized, but unissued,
or reacquired Common Stock.  Shares will
not be deemed to have been issued pursuant to the Plan with respect to any
portion of an Award that is settled in cash. 
Upon payment in Shares pursuant to the exercise of an SAR, the number of
Shares available for issuance under the Plan will be reduced by the gross
number of Shares covered by the SAR, not the net number actually issued in such
payment.  If the exercise price of an
Option is paid by tender to the Company, or attestation to the ownership, of
Shares owned by the Participant, the number of Shares available for issuance
under the Plan will be reduced by the gross number of Shares for which the
Option is exercised.  Similarly, if
Shares are withheld to satisfy the minimum statutory withholding obligations arising
in connection with the vesting, exercise or issuance of any Award (or delivery
of the related Shares), such withheld Shares will not be available for future
issuance under the Plan.

 

(b)                                 Share Usage.

 

(i)                           If an Award
expires or becomes unexercisable without having been exercised in full, or is
surrendered pursuant to an Exchange Program, the unpurchased Shares which were
subject thereto shall become available for future grant or sale under the Plan
(unless the Plan has terminated); provided, however, that Shares that have
actually been issued under the Plan, whether upon exercise of an Award, shall
not be returned to the Plan and shall not become available for future
distribution under the Plan, except that if unvested Shares of Restricted Stock
are repurchased by the Company, such Shares shall become available for future
grant under the Plan.

 

(ii)                        Notwithstanding
the foregoing and, subject to adjustment provided in Section 13, 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),
plus, to the extent allowable under Section 422 of the Code, any Shares
that become available for issuance under the Plan under paragraph (i) above.

 

(iii)                     Awards of
Restricted Stock, Restricted Stock Units, Performance Shares or Performance
Units shall reduce the number of Shares available for issuance under the Plan
by 1.52 

 

 

Shares
for each Share covered by such Awards. 
To the extent that a Share that was subject to an Award that counted as
1.52 Shares against the Plan reserve pursuant to the preceding sentence is
recycled back into the Plan under Section 3(b)(i), the Plan shall be
credited with 1.52 Shares.

 

4.                                       Administration
of the Plan.

 

(a)                                  Procedure.

 

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

 

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

 

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

 

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

 

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

 

(i)                           to determine
the Fair Market Value;

 

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

 

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

 

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

 

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

 

(vi)                    to reduce the
exercise price of any SAR or Option to the then current Fair Market Value if
the Fair Market Value of the Common Stock covered by such SAR or Option 

 

 

shall
have declined since the date the SAR or Option was granted, subject to the
provisions of Section 4(c);

 

(vii)                 to institute an
Exchange Program, subject to the provisions of Section 4(c);

 

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

 

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

 

(x)                         to modify or
amend each Award (subject to Section 17(c) of the Plan), including
the discretionary authority to extend the post-termination exercisability
period of Awards longer than is otherwise provided for in the Plan;

 

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

 

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

 

(xiii)                to determine
whether Awards will be settled in Shares, cash or in any combination thereof;
and

 

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

 

(c)                                  Exchange
Program; Option/SAR Repricing.  Notwithstanding anything in this Plan to the
contrary, except in connection with a corporate transaction involving the
Company (including, without limitation, any stock dividend, stock split,
extraordinary cash dividend, recapitalization, reorganization, merger,
consolidation, split-up, spin-off, combination, or exchange of shares), the
terms of outstanding Awards may not be amended to reduce the exercise price of
outstanding Options or SARs or cancel outstanding Options or SARS in exchange
for cash, other Awards or Options or SARs with an exercise price that is less
than the exercise price of the original Options or SARs without stockholder
approval.

 

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

 

 

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

 

6.                                       Stock Options.

 

(a)                                  Limitations.

 

(i)                           Each Option
shall be designated in the 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 $100,000,
such Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a),
Incentive Stock Options shall be taken into account in the order in which they
were granted.  The Fair Market Value of
the Shares shall be determined as of the time the Option with respect to such
Shares is granted.

 

(ii)                        No Participant
shall be granted, in any Fiscal Year, Options to purchase more than 1,000,000
Shares.  Notwithstanding the foregoing
limitation, in connection with his or her initial service as an Employee, an
Employee may be granted Options to purchase up to an additional 1,000,000
Shares.

 

(iii)                     The foregoing
limitations shall be adjusted proportionately in connection with any change in
the Company’s capitalization as described in Section 13.

 

(iv)                    If an Option is
cancelled in the same Fiscal Year of the Company in which it was granted (other
than in connection with a transaction described in Section 13), the
cancelled Option will be counted against the limits set forth in
subsections (i) and (ii) above. For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option.

 

(b)                                 Term of Option.  The term of each Option shall be 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 shall be five (5) years
from the date of grant or such shorter term as may be provided in the Award
Agreement.

 

(c)                                  Option Exercise
Price and Consideration.

 

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

 

(A)                              In the case of
an Incentive Stock Option

 

a)                                      granted to an
Employee who, at the time the Incentive Stock Option is granted, owns stock
representing more than ten percent (10%) of the voting power of 

 

 

all
classes of stock of the Company or any Parent or Subsidiary, the per Share
exercise price shall be no less than 110% of the Fair Market Value per Share on
the date of grant; and

 

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

 

(B)                                In the case of
a Nonstatutory Stock Option, the per Share exercise price shall be no less than
100% of the Fair Market Value per Share on the date of grant.

 

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

 

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

 

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

 

(A)                              cash;

 

(B)                                check;

 

(C)                                promissory
note;

 

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

 

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

 

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

 

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

 

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

 

 

(d)                                 Exercise of Option.

 

(i)         Procedure for
Exercise; Rights as a Stockholder. 
Any Option granted hereunder shall be exercisable according to the terms
of the Plan and at such times and under such conditions as determined by the
Administrator and set forth in the Award Agreement.  An Option may not be exercised for a fraction
of a Share.

 

An Option shall be deemed exercised when the Company receives: (i) written
or electronic notice of exercise (in accordance with the Award Agreement) from
the person entitled to exercise the Option, and (ii) full payment for the
Shares with respect to which the Option is exercised.  Full payment may consist of any consideration
and method of payment authorized by the Administrator and permitted by the
Award Agreement and the Plan.  Shares
issued upon exercise of an Option shall be issued in the name of the
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 shall exist with respect
to the Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be
issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or
other right for which the record date is prior to the date the Shares are issued,
except as provided in Section 13 of the Plan.

 

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

 

(ii)        Termination of
Relationship as a Service Provider. 
If 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 shall remain exercisable for
three (3) months following the Participant’s termination.  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 shall 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 shall terminate, and the Shares covered by such Option shall 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
shall remain exercisable for twelve (12) months following the Participant’s termination.  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 shall revert to the Plan.  If, after termination, the Participant does
not exercise his or her Option within the time specified herein, the Option
shall terminate, and the Shares covered by such Option shall revert to the
Plan.

 

 

(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 shall remain exercisable for
twelve (12) months following Participant’s death.  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 shall immediately revert to the Plan.  If the Option is not so exercised within the
time specified herein, the Option shall terminate, and the Shares covered by
such Option shall revert to the Plan.

 

7.                                       Restricted
Stock.

 

(a)           Grant of
Restricted Stock.  Subject to the
terms and provisions of the Plan, the Administrator, at any time and from time
to time, may grant Shares of Restricted Stock to Employees, Directors and
Consultants in such amounts as the Administrator, in its sole discretion, shall
determine.  The Administrator, in its
sole discretion, will determine the number of Shares to be granted to each
Participant, provided that during any Fiscal Year, no Participant will receive
more than an aggregate of 100,000 Shares of Restricted Stock.  Notwithstanding the foregoing limitation, in
connection with a Participant’s initial service as an Employee, an Employee may
be granted an aggregate of up to an additional 250,000 Shares of Restricted
Stock.

 

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

 

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

 

(d)           Other
Restrictions.  The Restricted Stock
Agreement will contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator.

 

(i)         General
Restrictions.  The Administrator may
set restrictions based upon the achievement of specific performance objectives
(Company-wide, divisional, or individual), applicable federal or state
securities laws, or any other basis determined by the Administrator in its
discretion.

 

(ii)        Section 162(m) Performance
Restrictions.  For purposes of
qualifying grants of Restricted Stock as “performance-based compensation” under
Section 162(m) of the Code, 

 

 

the
Administrator, in its discretion, may set restrictions based upon the
achievement of Performance Goals.  The
Performance Goals will be set by the Administrator on or before the latest date
permissible to enable the Restricted Stock to qualify as “performance-based
compensation” under Section 162(m) of the Code.  In granting Restricted Stock which is
intended to qualify under Section 162(m) of the Code, the
Administrator will follow any procedures determined by it from time to time to
be necessary or appropriate to ensure qualification of the Restricted Stock
under Section 162(m) of the Code (e.g., in determining the
Performance Goals).

 

(iii)       Legend on
Certificates.  The Administrator, in
its discretion, may legend the certificates representing Restricted Stock to
give appropriate notice of such restrictions. 
For example, the Administrator may determine that some or all
certificates representing Shares of Restricted Stock shall bear the following
legend:

 

“The sale or other transfer of the shares of stock represented by this
certificate, whether voluntary, involuntary, or by operation of law, is subject
to certain restrictions on transfer as set forth in the Advent Software, Inc.
2002 Stock Plan, and in a Restricted Stock Agreement.  A copy of the Plan and such Restricted Stock
Agreement may be obtained from the Secretary of Advent Software, Inc.”

 

(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 shall be released from escrow as
soon as practicable after the last day of the Period of Restriction.  The Administrator, in its discretion, may
accelerate the time at which any restrictions shall lapse or be removed.  After the restrictions have lapsed, the
Participant shall be entitled to have any legend or legends under Section 7(d)(iii) removed
from his or her Share certificate, and the Shares shall be freely transferable
by the Participant.

 

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

 

(g)           Dividends and
Other Distributions.  During the
Period of Restriction, Participants holding Shares of Restricted Stock shall be
entitled to receive all dividends and other distributions paid with respect to
such Shares unless otherwise provided in the Award Agreement.  If any such dividends or distributions are
paid in Shares, the Shares shall 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 shall revert to the Company and again shall become
available for grant under the Plan.

 

8.                                       Stock
Appreciation Rights.

 

(a)           Grant of SARs.  Subject to the terms and conditions of the
Plan, a SAR 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.  The
Administrator may grant Affiliated SARs, Freestanding SARs, Tandem SARs, or any
combination thereof.

 

(b)           Number of Shares.  The Administrator will have complete
discretion to determine the number of SARs granted to any Service Provider,
provided that during any Fiscal Year, no Participant will be granted SARs
covering more than 1,000,000 Shares.  Notwithstanding
the foregoing limitation, in connection with a Participant’s initial service as
an Employee, an Employee may be granted SARs covering up to an additional
1,000,000 Shares.

 

(c)           Exercise Price
and Other Terms.  The Administrator,
subject to the provisions of the Plan, will have complete discretion to
determine the terms and conditions of SARs granted under the Plan.  However, the exercise price of a Freestanding
SAR will not be less than one hundred percent (100%) of the Fair Market Value
of a Share on the grant date.  The
exercise price of Tandem or Affiliated SARs will equal the exercise price of
the related Option.

 

(d)           Exercise of
Tandem SARs.  Tandem SARs may be
exercised for all or part of the Shares subject to the related Option upon the
surrender of the right to exercise the equivalent portion of the related
Option.  A Tandem SAR may be exercised
only with respect to the Shares for which its related Option is then
exercisable.  With respect to a Tandem
SAR granted in connection with an Incentive Stock Option: (a) the Tandem
SAR will expire no later than the expiration of the underlying Incentive Stock
Option; (b) the value of the payout with respect to the Tandem SAR will be
for no more than one hundred percent (100%) of the difference between the
exercise price of the underlying Incentive Stock Option and the Fair Market
Value of the Shares subject to the underlying Incentive Stock Option at the
time the Tandem SAR is exercised; and (c) the Tandem SAR will be
exercisable only when the Fair Market Value of the Shares subject to the
Incentive Stock Option exceeds the Exercise Price of the Incentive Stock
Option.

 

(e)           Exercise of
Affiliated SARs.  An Affiliated SAR
will be deemed to be exercised upon the exercise of the related Option.  The deemed exercise of an Affiliated SAR will
not necessitate a reduction in the number of Shares subject to the related
Option.

 

(f)            Exercise of
Freestanding SARs.  Freestanding SARs
will be exercisable on such terms and conditions as the Administrator, in its
sole discretion, will determine.

 

(g)           SAR Agreement.  Each SAR grant will be evidenced by an Award
Agreement that will specify the exercise price, the term of the SAR, the
conditions of exercise, and such other terms and conditions as the
Administrator, in its sole discretion, will determine.

 

(h)           Expiration of
SARs.  An SAR granted under the Plan
will expire upon the date determined by the Administrator, in its sole
discretion, and set forth in the Award Agreement, but not later than ten (10) years
from the date of grant.  Notwithstanding
the foregoing, the rules of Section 6(d)(ii), 6(d)(iii) and 6(d)(iv) also
will apply to SARs.

 

(i)            Payment of SAR
Amount.  Upon exercise of an SAR, 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 SAR is exercised. 
At the discretion of the Administrator, the payment upon SAR exercise
may be in cash, in Shares of equivalent value, or in some combination
thereof.  Unless the Administrator
determines otherwise, SARs for which payment upon exercise is made in cash will
comply with the requirements of Section 409A of the Code and the
regulations issued thereunder.

 

9.                                       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. 
The Administrator will have complete discretion in determining the
number of Performance Units and Performance Shares granted to each Participant,
provided that during any Fiscal Year, (a) no Participant will receive
Performance Units having an initial value greater than $2,000,000 and (b) no
Participant will receive more than 100,000 Performance Shares.  Notwithstanding the foregoing limitation, in
connection with a Participant’s initial service as an Employee, an Employee may
be granted up to an additional 250,000 Performance Shares.

 

(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 objectives in its discretion 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 Participants.  The time period during which the performance
objectives must be met will be called the “Performance Period.”  Each Award of Performance Units/Shares will
be evidenced by an Award Agreement that will specify the Performance Period,
and such other terms and conditions as the Administrator, in its sole
discretion, will determine.

 

(i)         General Performance
Objectives.  The Administrator may
set performance objectives based upon the achievement of Company-wide,
divisional, or individual goals, applicable federal or state securities laws,
or any other basis determined by the Administrator in its discretion.

 

(ii)        Section 162(m) Performance
Objectives.  For purposes of
qualifying grants of Performance Units/Shares as “performance-based
compensation” under Section 162(m) of the Code, the Committee, in its
discretion, may determine that the performance objectives applicable to
Performance Units/Shares will be based on the achievement of Performance
Goals.  The Performance Goals will be set
by the Committee on or before the latest date permissible to enable the
Performance Units/Shares to qualify as “performance-based compensation” under Section 162(m) of
the Code.  In granting Performance
Units/Shares which are intended to qualify under Section 162(m) of
the Code, the Committee will follow any procedures determined by it from time
to time to be necessary or appropriate to ensure qualification of the
Performance Units/Shares under Section 162(m) of the Code (e.g., in
determining the Performance Goals).

 

(d)           Earning of
Performance Units/Shares.  After the
applicable Performance Period has ended, the holder of Performance Units/Shares
will be entitled to receive a payout of the number of 

 

 

Performance
Units/Shares earned by the Participant over the Performance Period, to be
determined as a function of the extent to which the corresponding performance
objectives or other vesting provisions have been achieved.  After the grant of a Performance Unit/Share,
the Administrator, in its sole discretion, may reduce or waive any performance
objectives or other vesting provisions for such Performance Unit/Share.

 

(e)           Form and
Timing of Payment of Performance Units/Shares.  Payment of earned Performance Units/Shares
will be made as soon as practicable after the expiration of the applicable
Performance Period.  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 Period) or in a combination thereof.

 

(f)            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.

 

10.                                 Restricted
Stock Units.  Restricted
Stock Units shall consist of Restricted Stock, Performance Share or Performance
Unit Awards that the Administrator, in its sole discretion permits to be paid
out in installments or on a deferred basis, in accordance with rules and
procedures established by the Administrator. 
Awards may be paid out to Participants in the form of cash or Shares at
the Administrator’s discretion.  The
Administrator will have complete discretion in determining the number of
Restricted Stock Units granted to each Participant, provided that during any Fiscal
Year, (a) no Participant will receive more than 100,000 Restricted Stock
Units.  Notwithstanding the foregoing
limitation, in connection with a Participant’s initial service as an Employee,
the Participant may be granted up to an additional 250,000 Restricted Stock
Units.

 

11.                                 Transferability
of Awards.  Unless
determined otherwise by the Administrator, Awards 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 shall contain such additional terms and conditions as
the Administrator deems appropriate. 
Options may not be transferred to a third party for consideration
without the approval of Company stockholders.

 

12.                                 Leaves of
Absence.  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 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.                                 Adjustments
Upon Changes in Capitalization, Merger or Change in Control.

 

(a)           Changes in
Capitalization.  Subject to any
required action by the stockholders of the Company, the number of shares of
Common Stock that have been authorized for issuance under the Plan but as to which
no Awards have yet been granted or which have been returned to the Plan upon
cancellation or expiration of an Award, the number of shares of Common Stock as
well as the price per share of Common Stock covered by each such outstanding
Award, and the numerical Share limits in Sections 3, 6, 7(a), 8(b), 9(a) and
10 shall be proportionately adjusted for any increase or decrease in the number
of issued shares of Common Stock resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock, or
any other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company; provided, however,
that conversion of any convertible securities of the Company shall not be
deemed to have been “effected without receipt of consideration.” Such
adjustment shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. 
Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an Award.

 

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

 

(c)           Merger or Change
in Control.  In the event of a merger
of the Company with or into another corporation, or a Change in Control, each
outstanding Award shall be assumed or an equivalent option or right substituted
by the successor corporation or a Parent or Subsidiary of the successor
corporation.

 

In the event that the successor corporation refuses to assume or substitute
for the Award, the Participant shall fully vest in and have the right to
exercise his or her Options or Stock Appreciation Right as to all of the
Optioned Stock, including Shares as to which such Awards would not otherwise be
vested or exercisable.  All restrictions
on Restricted Stock and, with respect to Performance Shares and Performance
Units, all Performance Goals or other vesting criteria will be as determined by
the Board.  In addition, if an Option or
Stock Appreciation Right becomes fully vested and exercisable in lieu of
assumption or substitution in the event of a Change in Control, the
Administrator shall notify the Participant in writing or electronically that
the Option or Stock Appreciation Right shall be fully vested and exercisable for
a period of fifteen (15) days from the date of such notice, and the Option or
Stock Purchase Right shall terminate upon the expiration of such period.

 

For the purposes of this subsection (c), an Award shall be
considered assumed if, following the merger or Change in Control, the Award
confers the right to purchase or receive, for each Share subject to the Award
immediately prior to the merger or Change in Control, the 

 

 

consideration (whether stock, cash, or other securities or property)
or, in the case of a Stock Appreciation Right upon the exercise of which the
Administrator determines to pay cash or a Performance Share or Performance Unit
which the Administrator can determine to pay in cash, the fair market value of
the consideration 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 merger or Change in Control is not solely
common stock of the successor corporation or its Parent, the Administrator may,
with the consent of the successor corporation, provide for the consideration to
be received upon the exercise of the Option or Stock Appreciation Right or upon
the payout of a Performance Share or Performance Unit, for each Share subject
to such Award (or in the case of Performance Units, the number of implied
shares determined by dividing the value of the Performance Units by the per
share consideration received by holders of Common Stock in the Change in
Control), to be solely common stock of the successor corporation or its Parent
equal in fair market value to the per share consideration received by holders
of Common Stock in the merger or Change in Control.

 

Notwithstanding anything in this Section 13(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.

 

14.                                 No Effect on
Employment or Service. 
Neither the Plan nor any Award shall confer upon a Participant any right
with respect to continuing the Participant’s relationship as a Service Provider
with the Company, nor shall 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.

 

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

 

16.                                 Term of Plan.  Subject to Section 21 of the Plan, the
Plan shall become effective upon its adoption by the Board.  It shall continue in effect for a term of ten
(10) years unless terminated earlier under Section 17 of the Plan.

 

17.                                 Amendment and
Termination of the Plan.

 

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

 

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

 

(c)           Effect of
Amendment or Termination.  No
amendment, alteration, suspension or termination of the Plan shall impair the
rights of any 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
shall not affect the Administrator’s ability to exercise the powers granted to
it hereunder with respect to Options granted under the Plan prior to the date
of such termination.

 

18.                                 Conditions Upon
Issuance of Shares.

 

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

 

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

 

19.                                 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, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been obtained.

 

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

 

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

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