Document:

Amended and Restated 1994 Equity Compensation Plan

  
  
 EXHIBIT 10.1 
 ADOLOR CORPORATION 
 AMENDED AND RESTATED 1994 EQUITY COMPENSATION PLAN 
 AS AMENDED DECEMBER 31, 2002 
 AS AMENDED MAY 13, 2003 
 AS AMENDED
DECEMBER 13, 2006 EFFECTIVE JANUARY 1, 2007 
 AS AMENDED
FEBRUARY 21, 2008 
  
  
  
 Adolor Corporation, a Delaware corporation,
wishes to attract employees and consultants to the Company, to induce employees, Directors and consultants to remain with the Company, to encourage them to increase their efforts to make the Company’s business more successful and to enhance
stockholder value. In furtherance thereof, the Adolor Amended and Restated 1994 Equity Compensation Plan is designed to provide incentive and non-qualified stock options to employees, Directors and consultants of the Company. 
  

	1.	DEFINITIONS. 

 Whenever used herein and unless
otherwise provided in the Optionee’s Grant Letter, the following terms shall have the meanings set forth below: 
 “Administrator” means the Board, or a committee, the members of which shall be appointed by the Board as described in Section 3. 
 “Approved Sale” means the approval, prior to the consummation of a Public Offering, by the holders of at least 50% of the Common Stock (including voting and nonvoting shares voting as a single class) of
(i) the merger or consolidation of the Company, (ii) the sale of all or substantially all of its assets or (iii) the sale of all or a majority of the outstanding capital stock or my other similar transaction. 
 “Board” means the Board of Directors of the Company. 
 “Cause” means the Optionee’s (i) conviction for committing a felony under federal law or of the state in which such action occurred, (ii) dishonesty in the course of fulfilling his or her
employment duties or (iii) willful and deliberate failure to perform his or her employment duties in any material respect, or such other events as shall be determined by the Administrator. The Administrator shall have the sole discretion to
determine whether “Cause” exists, and its determination shall be final. 
 “Change of Control” means the happening of any
of the following after the consummation of a Public Offering: 
 (i) any Person, other than (a) the Company or any of its Subsidiaries,
(b) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Subsidiaries, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, (d) a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportion as their ownership of stock of the Company, or (e) an Optionee or any “group” (as such term is used in Sections 13(d)
and 14(d) of the Exchange 

 
Act) which includes the Optionee), becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Subsidiaries) representing more than 25% of either the then outstanding shares of Stock of the
Company or the combined voting power of the Company’s then outstanding securities; 
 (ii) the individuals who serve on the Board as of
the effective date hereof (the “Incumbent Directors”) cease for any reason to constitute at least a majority of the Board; provided, however, any person who becomes a director subsequent to the effective date hereof, whose election or
nomination for election was approved by a vote of at least a majority of the directors then constituting the Incumbent Board, shall for purposes of this clause (ii) be considered an Incumbent Director; 
 (iii) the consummation of a merger or consolidation of the Company in which the stockholders of the Company immediately prior to such merger or
consolidation, would not, immediately after the merger or consolidation, beneficially own (as such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting
power of the securities of the corporation issuing cash or securities in the merger or consolidation (or of its ultimate parent corporation, if any); or 
 (iv) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of
the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the combined voting power of the voting securities of which are owned by Persons in
substantially the same proportion as their ownership of the Company immediately prior to such sale. 
 “Code” means the Internal
Revenue Code of 1986, as amended. 
 “Common Stock” means the Common Stock of the Company, par value $.0001 per share, either
currently existing or authorized hereafter. 
 “Company” means Adolor Corporation, a Delaware corporation. 
 “Director” means a member of the Board who is not an employee of the Company or its Subsidiaries. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Exercise Price” means the exercise price per Share of an Option. 
 “Fair Market Value” per Share as of a particular date means (i) if Shares are then listed on a national stock exchange, the closing sales
price per share of Common Stock on the exchange for the last preceding date on which there was a sale of shares of Common Stock on such exchange, as determined by the Administrator, (ii) if Shares are then listed on the Nasdaq National Market
or the Nasdaq SmallCap Market, the closing sales price (or the closing bid price 

  

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if no sales were reported) per share of Common Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, for the last preceding date
on which there was a sale of shares of Common Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, as determined by the Administrator, (iii) if Shares are not then listed on a national stock exchange, the Nasdaq
National Market or the Nasdaq SmallCap Market but are then traded on an over-the-counter market, the average of the closing bid and asked prices for the shares of Common Stock in such over-the-counter market for the last preceding date on which
there was a sale of such shares of Common Stock in such market, as determined by the Administrator, or (iv) if Shares are not then listed on a national stock exchange or traded on an over-the-counter market, or if the Administrator determines
that the value as determined pursuant to Section (i), (ii) or (iii) above does not reflect fair market value, the Administrator shall determine fair market value after taking into account such factors that it deems appropriate.
Notwithstanding the foregoing, if Shares are listed on a national stock exchange or traded on an over-the-counter market, solely for purposes of determining the Exercise Price of any Option granted hereunder, the Fair Market Value per Share shall be
the closing sales price on the applicable exchange or market on the date such Option is granted. 
 “Grant Letter” means a written
agreement in a form approved by the Administrator to be entered into by the Company and the Optionee as provided in Section 3. 
 “Incentive Stock Option” means “incentive stock option” within the meaning of Section 422(b) of the Code. 
 “Non-Qualified Option” means an Option which is not intended to be an “incentive stock option” within the meaning of Section 422(b) of the Code. 
 “Option” means the right to purchase, at the price and for the term fixed by the Administrator in accordance with the Plan, and subject to such
other limitations and restrictions in the Plan and the applicable Grant Letter, a number of Shares determined by the Administrator. 
 “Optionee” means an employee or Director of or consultant to, the Company to whom an Option is granted, or the Successors of the Optionee, as the context so requires. 
 “Person” means any individual, partnership, corporation, company, limited liability company, association, trust, joint venture, unincorporated
organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 
 “Plan”
means this Adolor Corporation Amended and Restated 1994 Equity Compensation Plan as amended from time to time. 
 “Public Offering”
means a successfully completed firm-commitment underwritten public offering (other than a Unit Offering, as hereinafter defined) pursuant to an effective registration statement under the Securities Act in respect to the offer and sale of shares of
Common Stock for the account of the Company resulting in aggregate net proceeds to the Company and any stockholder selling shares of Common Stock in such offering of not less than $25 million. 
 “Securities Act” means the Securities Act of 1933, as amended. 
  

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 “Shares” means shares of Common Stock of the Company. 
 “Subsidiary” means any corporation (other than the Company) that is a “subsidiary corporation” with respect to the Company under
Section 424(f) of the Code. In the event the Company becomes a subsidiary of another company, the provisions hereof applicable to subsidiaries shall, unless otherwise determined by the Administrator, also be applicable to any company that is a
“parent corporation” with respect to the Company under Section 424(e) of the Code. 
 “Successor of the Optionee”
means: (i) the legal representative of the estate of a deceased Optionee or the person, (ii) persons who shall acquire the right to exercise an Option by bequest or inheritance or other transfer or by reason of the death of the Optionee,
(iii) if permitted by the Administrator in its sole discretion, any person who shall acquire the right to exercise an Option pursuant to any other transfer of the Option either pursuant to Section 12 hereof or pursuant to Court Order or
(iv) persons who shall acquire the right to exercise an Option on behalf of the Optionee as the result of a determination by a court or other governmental agency of the incapacity of the Optionee. 
 “Termination of Service” means an Optionee’s termination of employment or other service, as applicable, with the Company and its
Subsidiaries. Cessation of service as an officer, employee, director or consultant shall not be treated as a Termination of Service if the Optionee continues without interruption to serve thereafter in a material manner in another one (or more) of
such other capacities, as determined by the Administrator in its sole discretion. 
 “Unit Offering” means an underwritten public
offering of a combination of debt securities and Common Stock (or warrants or exchange rights to purchase Common Stock) of the Company in which not more than 15% of the gross proceeds received for the sale of such securities is attributed to Common
Stock. 
  

	2.	EFFECTIVE DATE AND TERMINATION OF PLAN. 

 The
effective date of the amendment and restatement of the Plan is August 28, 2001. The Plan shall terminate on, and no Option shall be granted hereunder on or after, the 10-year anniversary of the earlier of the approval of the Plan by
(i) the Board or (ii) the stockholders of the Company; provided, however, that the Board may at any time prior to that date terminate the Plan. 
  

	3.	ADMINISTRATION OF PLAN. 

 (a) The Plan shall be
administered by the Administrator, which shall be either the Board, or a Committee appointed by the Board, who shall, on behalf of the Board, have full responsibility and authority to administer the Plan. The Administrator shall consist of at least
two individuals each of whom shall be a “nonemployee director” as defined in Rule 16b-3 as promulgated by the Securities and Exchange Commission under the Exchange Act and shall, at such times as the Company is subject to
Section 162(m) of the Code (to the extent relief from the limitation of Section 162(m) of the Code is sought), qualify as “outside directors” for purposes of Section 162(m) of the Code and related Treasury regulations.
Notwithstanding the foregoing, the Board may designate one or more of its members or officers of the Company to serve as a 

  

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secondary committee and delegate to the secondary committee authority to grant Options to eligible individuals who are not subject to the requirements of
Rule 16b-3 under the Exchange Act or Section 162(m) of the Code. The secondary committee shall have the same authority with respect to selecting the individuals to whom such Options are granted and establishing the terms and conditions of such
Options as the Administrator has under the terms of the Plan. 
 (b) The acts of a majority of the members present at any meeting of the
Administrator at which a quorum is present, or acts approved in writing by a majority of the entire Administrator, shall be the acts of the Administrator for purposes of the Plan. If and to the extent applicable, no member of the Administrator may
act as to matters under the Plan specifically relating to such member. 
 (c) Subject to the provisions of the Plan, the Administrator shall
in its discretion as reflected by the terms of the Grant Letters (i) authorize the granting of Incentive Stock Options and Non-Qualified Options to employees, Directors and consultants of the Company and its Subsidiaries; and
(ii) determine the eligibility of an employee, Director or consultant to receive an Option subject to Section 4 hereof, (iii) specify whether such Option is an Incentive Stock Option or Non-Qualified Option and (iv) determine the
number of Shares to be covered under any Grant Letter, considering the position and responsibilities of the employee, Director or consultant, the nature and value to the Company of the employee’s, Director’s or consultant’s present
and potential contribution to the success of the Company whether directly or through a Subsidiaries and such other factors as the Administrator may deem relevant. 
 (d) The Grant Letter shall contain such other terms, provisions and conditions not inconsistent herewith as determined by the Administrator. The Optionee shall take whatever additional actions and execute whatever
additional documents the Administrator may in its reasonable judgment deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on the Optionee pursuant to the express provisions of the Plan
and the Grant Letter . 
  

	4.	ELIGIBILITY. 

 Any employee, Director or consultant
of the Company or a Subsidiary who is designated by the Administrator as eligible to participate in the Plan shall be eligible to receive an Option under the Plan. 
  

	5.	SHARES AND UNITS SUBJECT TO THE PLAN. 

 (a) Subject
to adjustments as provided in Section 16, the total number of Shares subject to Options granted under the Plan, in the aggregate, may not exceed 5,350,000 Shares distributed under the Plan may be treasury Shares or authorized but unissued
Shares. Any Shares that have been reserved for distribution in payment for Options but are later forfeited or for any other reason are not payable under the Plan may again be made the subject of Options under the Plan. 
 (b) The certificates for Shares issued hereunder may include any legend which the Administrator deems appropriate to reflect any restrictions on transfer
hereunder or under the Grant Letter , or as the Administrator may otherwise deem appropriate. 
  

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 (c) In no event may any Optionee receive Options for more than 200,000 shares in any calendar year. The
aggregate fair market value of the shares on the date of the grant with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year under the Plan and under any other stock option plan of the
Company shall not exceed $100,000. 
  

	6.	GRANT OF OPTION. 

 Subject to the other terms of the
Plan, the Administrator shall, in its discretion as reflected by the terms of the applicable Grant Letter: (i) determine and designate from time to time those eligible employees, Directors and consultants of the Company and its Subsidiaries to
whom Options are to be granted and the number of Shares to be optioned to each employee and consultant (provided that Incentive Stock Options may only be granted to employees); (ii) determine the time or times when and the manner and condition
in which each Option shall be exercisable and the duration of the exercise period; and (iii) determine or impose other conditions to the grant or exercise of Options under the Plan as it may deem appropriate. 
  

	7.	OPTION PRICE. 

 The Exercise Price shall not be less
than 100% (or 110% for Incentive Stock Options with respect to individuals described in Section 422(b)(6) of the Code (relating to 10% owners)) of the Fair Market Value of a Share on the day the Option is granted. 
  

	8.	TERM OF OPTIONS; VESTING AND EXERCISABILITY. 

 (a)
The Administrator shall establish the term of each Option, as set forth in the Grant Letter; provided that in no event shall any Option have a term greater than 10 years from the date of grant (except that, in the case of an individual described in
Section 422(b)(6) of the Code (relating to 10% owners), the term of any Incentive Stock Option shall be no more than five years from the date of grant). Unless earlier expired, forfeited or otherwise terminated, each Option shall expire in its
entirety upon the day after the last day of its term. The Option shall also expire, be forfeited and terminate at such times and in such circumstances as otherwise provided hereunder or under the Grant Letter. 
 (b) Each Option, to the extent that the Optionee has not had a Termination of Service and the Option has not otherwise lapsed, expired, terminated or
been forfeited, shall vest according to the vesting schedule which shall be determined in the sole and absolute discretion of the Administrator as set forth in the Grant Letter 
 (c) The Grant Letter may, but need not, include a provision whereby the Optionee may elect at any time while still an employee of or a consultant to the
Company to exercise a Non-Qualified Option as to any part or all of the Shares subject to the Option prior to the full vesting of the Option. Any Shares so purchased (i) shall vest in accordance with the vesting schedule otherwise applicable to
the Option, (ii) shall be subject to a repurchase right in favor of the Company as provided in Section 9 below, and (iii) shall be subject to any other restriction the Company determines to be appropriate. 
  

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 (d) Notwithstanding the foregoing provisions of this Section 8, Options exercisable pursuant to the
schedule set forth by the Administrator at the time of grant may be fully or more rapidly exercisable or vested, and Shares subject to such schedule may be fully or more rapidly vested, at any time in the discretion of the Administrator. Upon and
after the death of an Optionee, such Optionee’s Options, if and to the extent otherwise exercisable hereunder or under the applicable Grant Letter after the Optionee’s death, may be exercised by the Successors of the Optionee. 

 

	9.	EXERCISABILITY UPON AND AFTER TERMINATION OF OPTIONEE. 

  

	 	9.1.	Termination on Retirement, Disability, Death or without Cause. 

 Unless otherwise provided in the applicable Grant Letter, if an Optionee has a Termination of Service other than a Termination of Service due to death or for cause, the unexercised and vested portion of such
Optionee’s Option will remain exercisable by the Optionee, the Optionee’s estate, the persons who acquired the right to exercise the Option by bequest or inheritance, as applicable, for a period of 90 days following such Termination of
Service, but in no event later than the last day of the term of the Option. Such portion of the Option shall terminate to the extent not exercised within such period. Unless otherwise provided in the Grant Letter, upon such a Termination of Service,
any unvested portion of an Option will terminate and will be forfeited, and any Shares purchased pursuant to Section 8(c) above which are unvested at the time of such Termination of Service shall be subject to a repurchase right in favor of the
Company for a price equal to the lesser of (x) the Exercise Price of the Shares or (y) the Fair Market Value of such Shares on the date of repurchase, which right must be exercised by the Company within 90 days of such Termination of
Service; provided that if the Company does not exercise such right within such 90-day period, the Optionee shall become fully and immediately vested in such Shares. 
  

	 	9.2.	Termination for Cause. 

 If an Optionee has a
Termination of Service on account of a termination for Cause, any Option held by the Optionee will immediately expire on the date of such Termination of Service, and the Company has the right (but not the obligation to) repurchase any unvested or
vested Shares held by the Optionee for a price equal to the lesser of (x) the Option Price of the Shares or (y) the Fair Market Value of the Shares on the date of repurchase; provided such right must be exercised within six months of the
applicable Termination of Service, and provided, further, that if the Company does not exercise such right within such six-month period, the Optionee shall become fully and immediately vested in such Shares. 
  

	 	9.3.	Termination due to Optionee’s Death. 

 Unless
otherwise provided in the applicable Grant Letter, if an Optionee has a Termination of Service due to the Optionee’s death or if the Optionee dies within the 90-day period following any Termination of Service other than a Termination for Cause,
the unexercised and vested portion of such Optionee’s Option will remain exercisable by the Optionee’s estate or the persons who acquired the right to exercise the Option by bequest or inheritance, as applicable, until one year from the
date of death but in no event later than the last day of the term 

  

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of the Option. Such portion of the Option shall terminate to the extent not exercised within such period. Unless otherwise provided in the Grant Letter ,
upon such Termination of Service, any unvested portion of an Option will terminate and will be forfeited, and any Shares purchased pursuant to Section 8(c) above which are unvested at the time of such Termination of Service shall be subject to
a repurchase right in favor of the Company for a price equal to the lesser of (x) the Exercise Price of the Shares or (y) the Fair Market Value of such Shares on the date of repurchase, which right must be exercised by the Company within
90 days of such Termination of Service; provided that if the Company does not exercise such right within such 90-day period, the Optionee shall become fully and immediately vested in such Shares. 
  

	 	9.4.	In General. 

 Except as may otherwise be expressly
set forth in Section 8 or this Section 9 or as may otherwise be expressly provided under the Grant Letter, no provision of this Section 9 is intended to or shall permit the exercise of the Option to the extent the Option was not
exercisable upon the Termination of Service. 
  

	10.	EXERCISE OF OPTIONS; PAYMENT. 

  

	 	10.1.	Notice of Exercise. 

 (a) Subject to vesting and
other restrictions provided for hereunder or otherwise imposed in accordance herewith, an Option may be exercised, and payment in full of the aggregate Exercise Price made, by an Optionee only by written notice (in the form prescribed by the
Administrator) to the Company specifying the number of Shares to be purchased. 
 (b) Without limiting the scope of the Administrator’s
discretion hereunder, the Administrator may impose such other restrictions on the exercise of Incentive Stock Options (whether or not in the nature of the foregoing restrictions) as it may deem necessary or appropriate. 
 (c) If Shares acquired upon the exercise of an Incentive Stock Option are disposed of in a disqualifying disposition within the meaning of
Section 422 of the Code by an Optionee prior to the expiration of either two years from the date of grant of such Option or one year from the transfer of Shares to the Optionee pursuant to the exercise of such Option, or in any other
disqualifying disposition within the meaning of Section 422 of the Code, such Optionee shall notify the Company in writing as soon as practicable thereafter of the date and terms of such disposition and, if the Company (or any affiliate
thereof) thereupon has a tax withholding obligation, shall pay to the company (or such affiliate) an amount equal to any withholding tax the Company (or affiliate) is required to pay as a result of the disqualifying disposition. 
  

	 	10.2.	Form of Payment. 

 (a) The aggregate Exercise Price
shall be paid in full upon the exercise of the Option. Payment must be made by one of the following methods: 
 (i) cash or a certified or
bank cashier’s check; 
  

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 (ii) the proceeds of a Company loan program or third party sale program or a note acceptable to the
Administrator given as consideration under such a program, in each case if permitted by the Administrator in its discretion, if such a program has been established and the Optionee is eligible to participate therein; 
 (iii) if approved by the Administrator in its discretion Shares of previously owned Common Stock having an aggregate Fair Market Value on the date of
exercise equal to the aggregate Option Price; 
 (iv) if approved by the Administrator in its discretion, by assigning to the Company a
sufficient amount of the proceeds from the sale of Shares to be acquired pursuant to such exercise and instructing the broker or selling agent to pay that amount to the Company, which amount shall be paid in cash to the Company on the date such
Shares are issued to the Optionee; or or 
 (v) by a combination of such methods of payment or any other method acceptable to the
Administrator in its discretion. 
 (b) Except in the case of Options exercised by certified or bank cashier’s check, the Administrator
may impose limitations and prohibitions on the exercise of Options as it deems appropriate, including, without limitation, any limitation or prohibition designed to avoid accounting consequences which may result from the use of Common Stock as
payment upon exercise of an Option. Any fractional Shares resulting from an Optionee’s election that is accepted by the Company shall be paid in cash. 
  

	11.	EXERCISE BY SUCCESSORS. 

 An Option may be
exercised, and payment in full of the aggregate Exercise Price made, by the Successors of the Optionee only by written notice (in the form prescribed by the Administrator) to the Company specifying the number of Shares to be purchased. Such notice
shall state that the aggregate Option Price will be paid in full, or that the Option will be exercised as otherwise provided hereunder, in the discretion of the Company or the Administrator, if and as applicable. 
  

	12.	NONTRANSFERABILITY OF OPTION. 

 Each Option granted
under the Plan shall by its terms be nontransferable by the Optionee except by will or the laws of descent and distribution of the state wherein the Optionee is domiciled at the time of his death; provided, however, that the Administrator may (but
need not) permit other transfers of Non-Qualified Options where the Administrator concludes that such transferability does not result in accelerated U.S. federal income taxation and is otherwise appropriate and desirable. 
  

	13.	TAX WITHHOLDING. 

  

	 	13.1.	In General. 

  

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 The Company shall be entitled to withhold from any payments or deemed payments any amount of tax
withholding determined by the Administrator to be required by law. Without limiting the generality of the foregoing, the Administrator may, in its discretion, require an Optionee to pay to the Company at such time as the Administrator determines the
amount that the Administrator deems necessary to satisfy the Company’s obligation to withhold federal, state or local income or other taxes incurred by reason of the exercise of any Option. 
  

	 	13.2.	Share Withholding. 

 Upon the exercise of an Option,
the Optionee may, if approved by the Administrator in its discretion, make a written election to have Shares then issued withheld by the Company from the Shares otherwise to be received, or to deliver previously owned Shares, in order to satisfy the
liability for such withholding taxes. In the event that the Optionee makes, and the Administrator permits, such an election, the number of Shares so withheld or delivered shall have an aggregate Fair Market Value on the date of exercise sufficient
to satisfy the applicable withholding taxes. 
  

	 	13.3.	Withholding Required. 

 Notwithstanding anything
contained in the Plan to the contrary, the Optionee’s satisfaction of any tax-withholding requirements imposed by the Administrator shall be a condition precedent to the Company’s obligation as may otherwise be provided hereunder to
provide Shares to the Optionee and to the release of any restrictions as may otherwise be provided hereunder, as applicable; and the applicable Option shall be forfeited upon the failure of the Optionee to satisfy such requirements with respect to
the exercise of the Option. 
  

	14.	REGULATIONS AND APPROVALS 

 (a) The obligation of
the Company to sell Shares with respect to an Option granted under the Plan shall be subject to all applicable laws, rules and regulations, including all applicable federal and state securities laws, and the obtaining of all such approvals by
governmental agencies as may be deemed necessary or appropriate by the Administrator. 
 (b) The Administrator may make such changes to the
Plan as may be necessary or appropriate to comply with the rules and regulations of any government authority or to obtain tax benefits applicable to an Option. 
 (c) Each grant of Options is subject to the requirement that, if at any time the Administrator determines, in its discretion, that the listing, registration or qualification of Shares issuable pursuant to the Plan is
required by any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body is necessary or desirable as a condition of, or in connection with, the issuance of Options no payment shall be
made in whole or in part, unless listing, registration, qualification, consent or approval has been effected or obtained free of any conditions in a manner acceptable to the Administrator. 
 (d) In the event that the disposition of stock acquired pursuant to the Plan is not covered by a then current registration statement under the Securities
Act, and is not otherwise exempt from such registration, such Shares shall be restricted against transfer to the extent 

  

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required under the Securities Act, and the Administrator may require any individual receiving Shares pursuant to the Plan, as a condition precedent to
receipt of such Shares, to represent to the Company in writing that such Shares will be disposed of only if registered for sale under the Securities Act or if there is an available exemption for such disposition. 
  

	15.	INTERPRETATION AND AMENDMENTS, OTHER RULES. 

 15.1.
The Administrator may make such rules and regulations and establish such procedures for the administration of the Plan as it deems appropriate. Without limiting the generality of the foregoing, the Administrator may (i) determine the extent, if
any, to which Options shall be forfeited (whether or not such forfeiture is expressly contemplated hereunder); (ii) interpret the Plan and the Grant Letters hereunder, with such interpretations to be conclusive and binding on all persons and
otherwise accorded the maximum deference permitted by law, provided that the Administrator’s interpretation shall not be entitled to deference on and after a Change of Control except to the extent that such interpretations are made exclusively
by members of the Administrator who are individuals who served as Administrator members before the Change of Control; and (iii) take any other actions and make any other determinations or decisions that it deems necessary or appropriate in
connection with the Plan or the administration or interpretation thereof. Unless otherwise expressly provided hereunder, the Administrator, with respect to any grant, may exercise its discretion hereunder at the time of the grant or thereafter. In
the event of any dispute or disagreement as to the interpretation of the Plan or of any rule, regulation or procedure, or as to any question, right or obligation arising from or related to the Plan, the decision of the Administrator, except as
provided in clause (ii) of the foregoing sentence, shall be final and binding upon all persons. The Board may amend the Plan as it shall deem advisable, except that no amendment may adversely affect an Optionee with respect to an Option
previously granted unless such amendments are required in order to comply with applicable laws; provided that the Board may not make any amendment in the Plan that would, if such amendment were not approved by the holders of the Common Stock, cause
the Plan to fail to comply with any requirement of applicable law or regulation, unless and until the approval of the holders of such Common Stock is obtained. In addition, except pursuant to Section 16 below, no amendment shall be effective
without the approval of the holders of the Common Stock that results in (1) any material increase in the number of shares to be issued under the Plan (other than as permitted by Section 16); (2) any material increase in benefits to
Optionees, including any material change to: (i) permit a repricing (or decrease in exercise price) of outstanding Options, (ii) reduce the price at which Shares or Options to purchase Shares may be offered, or (iii) extend the
duration of the Plan; (3) any material expansion of the class of persons eligible to receive Options; or (4) the grant of any awards other than Options under the Plan. 
  

	16.	CHANGES IN CAPITAL STRUCTURE; CHANGE OF CONTROL. 

  

	 	16.1.	Changes in Capital Structure. 

 (a) If (i) the
Company shall at any time be involved in a merger, consolidation, dissolution, liquidation, reorganization, exchange of shares, sale of all or substantially all of the assets or stock of the Company or a transaction similar thereto, (ii) any

  

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stock dividend, stock split, reverse stock split, stock combination, reclassification, recapitalization or other similar change in the capital structure of
the Company or any distribution to holders of Common Stock other than cash dividends, shall occur or (iii) any other event shall occur which in the judgment of the Administrator necessitates action by way of adjusting the terms of the
outstanding Options, then (x) the maximum aggregate number of Shares which may be made subject to Options under the Plan shall be appropriately adjusted by the Administrator; and (y) the Administrator shall take any such action as in its
judgment shall be necessary to preserve the Optionees’ rights in their respective Options substantially proportionate to the rights existing in such Options prior to such event, including, without limitation, adjustments in (A) the number
of Options granted, (B) the number and kind of shares or other property to be distributed in respect of Options, and (C) the Exercise Price. 
  

	 	16.2.	Change of Control or Approved Sale. 

 (a) Upon a
Change of Control or an Approved Sale unless otherwise provided in an Optionee’s Grant Letter, the vesting and exercisability of all Options that are outstanding and unexercised as of such Change of Control, to the extent unvested, and any
unvested shares held by the Optionee shall be accelerated such that all outstanding Options are fully vested and exercisable and all Shares held by the Optionee are fully vested, and, if the Company does not survive such Change of Control or an
Approved Sale, the Company shall, if the Company does not cash-out all outstanding options, require the successor corporation to the Company to assume all outstanding Options and to substitute such Options with awards involving the common stock of
such successor corporation on terms and conditions necessary to preserve the rights of Optionees with respect to such Options. Upon a Change of Control or an Approved Sale, the Administrator, in its sole discretion, may require the Company to cancel
all outstanding vested Options (including those Options vested upon a Change of Control or an Approved Sale) in exchange for a cash payment in an amount equal to the excess, if any, of the Fair Market Value of the Common Stock underlying the
unexercised portion of the Option as of the date of the Change of Control or Approved Sale over the Option Price of such portion. Notwithstanding anything in the Plan to the contrary, in the event of an Approved Sale or a Change of Control, the
Administrator shall not have the right to take any actions described in the Plan (including without limitation actions described in this Section 16.2) that would make the Approved Sale or Change of Control ineligible for pooling of interests
accounting treatment or that would make the Approved Sale or Change of Control ineligible for desired tax treatment if, in the absence of such right, the transaction would qualify for such treatment and the Company intends to use such treatment with
respect to the transaction, in which case the Administrator and the Company shall be required to take the action described in the first sentence of this Section 16.2. 
 16.3. Administrator Authority. The judgment of the Administrator with respect to any matter referred to in this Section 16 shall be
conclusive and binding upon each Optionee without the need for any amendment to the Plan. 
  

 12 

	17.	MISCELLANEOUS. 

  

	 	17.1.	No Rights to Employment or Other Service. 

 Nothing
in the Plan or in any grant made pursuant to the Plan shall confer on any individual any right to continue in the employ or other service of the Company or its Subsidiaries or interfere in any way with the right of the Company or its Subsidiaries
and its stockholders to terminate the individual’s employment or other service at any time. 
  

	 	17.2.	No Fiduciary Relationship. 

 Nothing contained in
the Plan, and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company or its Subsidiaries, or their officers or the Administrator, on
the one hand, and the Optionee, the Company, its Subsidiaries or any other person or entity, on the other. 
  

	 	17.3.	Notices. 

 All notices under the Plan shall be in
writing, and if to the Company, shall be delivered to the Board or mailed to its principal office, addressed to the attention of the Board; and if to the Optionee, shall be delivered personally, sent by facsimile transmission or mailed to the
Optionee at the address appearing in the records of the Company. Such addresses may be changed at any time by written notice to the other party given in accordance with this Section 17.3. 
  

	 	17.4.	Exculpation and Indemnification. 

 The Company shall
indemnify and hold harmless the members of the Board and the members of the Administrator, from and against any and all liabilities, costs and expenses incurred by such persons as a result of any act or omission to act in connection with the
performance of such person’s duties, responsibilities and obligations under the Plan, to the maximum extent permitted by law, other than such liabilities, costs and expenses as may result from the gross negligence, bad faith, willful misconduct
or criminal acts of such persons. 
  

	 	17.5.	Captions. 

 The use of captions in this Plan is for
convenience. The captions are not intended to provide substantive rights. 
  

	 	17.6.	Governing Law. 

 THE PLAN SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS. 
 IN WITNESS WHEREOF, on behalf of Adolor Corporation
and pursuant to the direction of the Board, the undersigned hereby adopts the Plan as set forth herein. 
  

 13 

			
	Adolor Corporation
		
	By:	 	  

	Title:	 	  

 759776.4.01 
 AS
AMENDED DECEMBER 31, 2002 
 AS AMENDED MAY 13, 2003 
 AS AMENDED DECEMBER 13, 2006 EFFECTIVE JANUARY 1, 2007 
 AS AMENDED FEBRUARY 21, 2008 
  

 14Adolor Corp. Amended and Restated 2003 Stock-Based Incentive Compensation Plan

 Exhibit 10.2 
 ADOLOR CORPORATION 
 2003 AMENDED AND RESTATED STOCK-BASED INCENTIVE COMPENSATION PLAN 

 Adopted February 27, 2003 
 Amended January 6, 2004 
 Amended May 18, 2006 
 Amended December 13, 2006 Effective January 1, 2007 
 Amended April 12, 2007 
 Amended February 21, 2008 
  

 B-1 

 ADOLOR CORPORATION 
 2003 STOCK-BASED INCENTIVE COMPENSATION PLAN 
  

	 	1.	Purpose of the Plan 

 The purpose of the
Plan is to assist the Company, its Subsidiaries and Affiliates in attracting and retaining valued Employees, Consultants and Directors by offering them a greater stake in the Company’s success and a closer identification with it, and to
encourage ownership of the Company’s stock by such Employees, Consultants and Directors. 
  

	 	2.	Definitions 

 2.1.
“Affiliate” means any entity other than the Subsidiaries in which the Company has a substantial direct or indirect equity interest, as determined by the Board. 
 2.2. “Award” means an award of Deferred Stock, Restricted Stock or Options under the Plan. 
 2.3. “Board” means the Board of Directors of the Company. 
 2.4. “Cause” means the Participant’s (i) conviction for committing a felony under federal law or of the state in
which such action occurred, (ii) dishonesty in the course of fulfilling his or her employment or consulting duties or (iii) willful and deliberate failure to perform his or her employment or consulting duties in any material respect, or
such other similar events as shall be determined by the Committee. The Committee shall have the sole discretion to determine whether “Cause” as set forth in (i), (ii) or (iii) above exists, and its determination shall be final.

 2.5. “Change of Control” means the happening of any of the following: 
 (i) any Person, other than (a) the Company or any of its Subsidiaries, (b) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Subsidiaries, (c) an underwriter temporarily holding securities pursuant to an offering of such securities, (d) a corporation owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportion as their ownership of stock of the Company, or (e) a Holder or any “group” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) which includes such Holder, becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company
or its Subsidiaries) representing more than 20% of either the then outstanding shares of Stock of the Company or the combined voting power of the Company’s then outstanding securities; 
 (ii) the individuals who serve on the Board as of the effective date hereof (the “Incumbent Directors”) cease for any reason to
constitute at least a majority of the Board; provided, however, any Person who becomes a director subsequent to the effective date hereof, whose election or nomination for election was approved by a vote of at least a majority of the
directors then constituting the Incumbent Board, shall for purposes of this clause (ii) be considered an Incumbent Director; 
 (iii) the consummation of a merger or consolidation of the Company in which the stockholders of the Company immediately prior to such merger or consolidation, would not, immediately after the merger or consolidation, beneficially own (as
such term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly, shares representing in the aggregate 50% or more of the combined voting power of the 

  

 B-2 

 
securities of the corporation issuing cash or securities in the merger or consolidation (or of its ultimate parent corporation, if any); or 
 (iv) the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company, or there is consummated an
agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 50% of the
combined voting power of the voting securities of which are owned by Persons in substantially the same proportion as their ownership of the Company immediately prior to such sale. 
 If an event set forth in clause (i)(e) of the definition of “Change of Control” occurs, a Change of Control shall be deemed to have occurred
for each Holder other than any Holder who alone or as part of any “group” (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 under the Exchange Act),
directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person any securities acquired directly from the Company or its Subsidiaries) representing more than 20% of either the then outstanding
shares of Stock of the Company or the combined voting power of the Company’s then outstanding securities. 
 2.6.
“Code” means the Internal Revenue Code of 1986, as amended. 
 2.7. “Common Stock” means the common stock
of the Company, par value $.0001 per share, or such other class or kind of shares or other securities resulting from the application of Section 9. 
 2.8. “Company” means Adolor Corporation, a Delaware corporation, or any successor corporation. 
 2.9. “Committee” means the committee designated by the Board to administer the Plan under Section 4. The Committee shall have at least two members, each of whom shall be a member of the Board, a
Non-Employee Director and an Outside Director. 
 2.10. “Consultant” means a key consultant or advisor to the
Company, its Subsidiaries or Affiliates who is not an Employee. 
 2.11. “Deferred Stock” means an Award made under
Section 6 of the Plan to receive Common Stock at the end of a specified Deferral Period. 
 2.12. “Deferral
Period” means the period during which the receipt of a Deferred Stock Award under Section 6 of the Plan will be deferred. 
 2.13. “Director” means a member of the Board. 
 2.14. “Disability” means disabled within the
meaning of section 22(e)(3) of the Code. 
 2.15. “Employee” means an officer or other employee of the Company, a
Subsidiary or an Affiliate including a director who is such an employee. 
 2.16. “Fair Market Value” means, on any
given date (i) if shares of Common Stock are then listed on a national stock exchange, the closing sales price per share of Common Stock on the exchange for the last preceding date on which there was a sale of shares of Common Stock on such
exchange, as determined by the Committee, (ii) if shares of Common Stock are then listed on the Nasdaq National Market or the Nasdaq SmallCap Market, the closing sales price (or the closing bid price if no sales were reported) per share of
Common Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, for the last preceding date on 

  

 B-3 

 
which there was a sale of shares of Common Stock on the Nasdaq National Market or the Nasdaq SmallCap Market, as applicable, as determined by the Committee,
(iii) if shares of Common Stock are not then listed on a national stock exchange, the Nasdaq National Market or the Nasdaq Small Cap Market but are then traded on an over-the-counter market, the average of the closing bid and asked prices for
the shares of Common Stock in such over-the-counter market for the last preceding date on which there was a sale of such shares of Common Stock in such market, as determined by the Committee, or (iv) if shares of Common Stock are not then
listed on a national stock exchange or traded on an over-the-counter market, or if the Committee determines that the value as determined pursuant to Section (i), (ii) or (iii) above does not reflect fair market value, the Committee shall
determine fair market value after taking into account such factors that it deems appropriate. Notwithstanding the foregoing, if Shares are listed on a national stock exchange or traded on an over-the-counter market, solely for purposes of
determining the Exercise Price of any Option granted hereunder, the Fair Market Value per Share shall be the closing sales price on the applicable exchange or market on the date such Option is granted. 
 2.17. “Holder” means a Participant to whom an Award is made. 
 2.18. “Incentive Stock Option” means an Option intended to meet the requirements of an incentive stock option as defined in
section 422 of the Code and designated as an Incentive Stock Option. 
 2.19. “1934 Act” means the Securities
Exchange Act of 1934, as amended. 
 2.20. “Non-Employee Director” means a member of the Board who meets the
definition of a “non-employee director” under Rule 16b-3(b)(3) promulgated by the Securities and Exchange Commission under the 1934 Act. 
 2.21. “Non-Qualified Option” means an Option not intended to be an Incentive Stock Option, and designated as a Non-Qualified Option. 
 2.22. “Option” means any stock option granted from time to time under Section 8 of the Plan. 
 2.23. “Outside Director” means a member of the Board who meets the definition of an “outside director” under Treasury
Regulation § 1.162-27(e)(3)(i). 
 2.24. “Participant” means a Consultant, Director or Employee. 

2.25. “Performance Goal” means a goal that must be met by the end of a period specified by the Committee (but that is
substantially uncertain to be met before the grant of an Award) based upon: (i) the price of Common Stock, (ii) the market share of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (iii) sales by the
Company, its Subsidiaries or Affiliates (or any business unit thereof), (iv) earnings per share of Common Stock, (v) return on shareholder equity of the Company, (vi) costs of the Company, its Subsidiaries or Affiliates (or any
business unit thereof), (vii) cash flow of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (viii) return on total assets of the Company, its Subsidiaries or Affiliates (or any business unit thereof),
(ix) return on invested capital of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (x) return on net assets of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (xi) operating
income of the Company, its Subsidiaries or Affiliates (or any business unit thereof), (xii) net income of the Company, its Subsidiaries or Affiliates (or any business unit thereof), or (xiii) any other goal the Committee deems appropriate.

 2.26. “Person” means any individual, partnership, corporation, company, limited liability company, association,
trust, joint venture, unincorporated organization, entity or division, or any government, governmental department or agency or political subdivision thereof. 
  

 B-4 

 2.27. “Plan” means the Adolor Corporation 2003 Stock-Based Incentive
Compensation Plan herein set forth, as amended from time to time. 
 2.28. “Restricted Stock” means Common Stock
awarded by the Committee under Section 7 of the Plan. 
 2.29. “Restriction Period” means the period during
which Restricted Stock awarded under Section 7 of the Plan is subject to forfeiture. 
 2.30. “Retirement”
means retirement from the active employment of the Company, a Subsidiary or an Affiliate pursuant to the relevant provisions of the applicable pension plan of such entity or as otherwise determined by the Board. 
 2.31. “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the
Company (or any subsequent parent of the Company) if each of the corporations other than the last corporation in the unbroken chain owns stock possession 50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain. 
 2.32. “Ten Percent Shareholder” means a Person who on any given date owns, either
directly or indirectly (taking into account the attribution rules contained in section 424(d) of the Code), stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary. 
  

	 	3.	Eligibility 

 Any
Participant is eligible to receive an Award. 
  

	 	4.	Administration and Implementation of Plan 

 4.1. The Plan shall be administered by the Committee, which shall have full power to interpret and administer the Plan and full authority to act in selecting the Participants to whom Awards will be granted, in
determining the type and amount of Awards to be granted to each such Participant, the terms and conditions of Awards granted under the Plan and the terms of agreements which will be entered into with Holders. Notwithstanding the foregoing, the Board
may designate one or more of its members or officers of the Company to serve as a secondary committee and delegate to the secondary committee authority to grant Awards to eligible individuals who are not subject to the requirements of Rule 16b-3
under the 1934 Act or section 162(m) of the Code. The secondary committee shall have the same authority with respect to selecting the individuals to whom such Awards are granted and establishing the terms and conditions of such Awards as the
Committee has under the terms of the Plan. 
 4.2. The Committee’s powers shall include, but not be limited to, the
power to determine whether, to what extent and under what circumstances an Option may be exchanged for cash, Restricted Stock, Deferred Stock or some combination thereof; to determine whether, to what extent and under what circumstances an Award is
made and operates on a tandem basis with other Awards made hereunder; to determine whether, to what extent and under what circumstances Common Stock or cash payable with respect to an Award shall be deferred, either automatically or at the election
of the Holder (including the power to add deemed earnings to any such deferral); to grant Awards (other than Incentive Stock Options) that are transferable by the Holder; and to determine the effect, if any, of a change in control of the Company
upon outstanding Awards. 
 4.3. The Committee shall have the power to adopt regulations for carrying out the Plan and to
make changes in such regulations as it shall, from time to time, deem advisable. The Committee shall have the power unilaterally and without approval of a Holder to amend an existing Award in order to carry out the 

  

 B-5 

 
purposes of the Plan so long as such an amendment does not take away any benefit granted to a Holder by the Award and as long as the amended Award comports
with the terms of the Plan. Any interpretation by the Committee of the terms and provisions of the Plan and the administration thereof, and all action taken by the Committee, shall be final and binding on Holders. 
 4.4. The Committee may condition the grant of any Award or the lapse of any Deferral or Restriction Period (or any combination thereof)
upon the Holder’s achievement of a Performance Goal that is established by the Committee before the grant of the Award. The Committee shall have discretion to determine the specific targets with respect to each Performance Goal. Before granting
an Award or permitting the lapse of any Deferral or Restriction Period subject to this Section, the Committee shall certify that an individual has satisfied the applicable Performance Goal. 
  

	 	5.	Shares of Stock Subject to the Plan 

 5.1. Subject to adjustment as provided in Section 9, the total number of shares of Common Stock available for Awards under the Plan shall be 6,000,000 shares. 
 5.2. The maximum number of shares of Common Stock subject to Awards that may be granted to any Participant shall not exceed 750,000
during any calendar year (the “Individual Limit”). Subject to Section 5.3, Section 9 and Section 12.7, any Award that is canceled or repriced by the Committee shall count against the Individual Limit. Notwithstanding the
foregoing, the Individual Limit may be adjusted to reflect the effect on Awards of any transaction or event described in Section 9. 
 5.3. Any shares issued by the Company through the assumption or substitution of outstanding grants from an acquired company shall not (i) reduce the shares available for Awards under the Plan, or (ii) be
counted against the Individual Limit. Any shares issued hereunder may consist, in whole or in part, of authorized and unissued shares or treasury shares. If any shares subject to any Award granted hereunder are forfeited or such Award otherwise
terminates without the issuance of such shares or the payment of other consideration in lieu of such shares, the shares subject to such Award, to the extent of any such forfeiture or termination, shall again be available for Awards under the Plan.

  

	 	6.	Deferred Stock 

 An Award of Deferred Stock
is an agreement by the Company to deliver to the recipient a specified number of shares of Common Stock at the end of a specified deferral period or periods. Such an Award shall be subject to the following terms and conditions: 
 6.1. Deferred Stock Awards shall be evidenced by Deferred Stock agreements. Such agreements shall conform to the requirements of the Plan
and may contain such other provisions as the Committee shall deem advisable. 
 6.2. Upon determination of the number of
shares of Deferred Stock to be awarded to a Holder, the Committee shall direct that the same be credited to the Holder’s account on the books of the Company but that issuance and delivery of the same shall be deferred until the date or dates
provided in Section 6.5 hereof. Prior to issuance and delivery hereunder the Holder shall have no rights as a stockholder with respect to any shares of Deferred Stock credited to the Holder’s account. 
 6.3. Subject to the provisions of Section 6.4 concerning Deferred Stock Awards that are subject to the achievement of Performance
Goals, amounts equal to any dividends declared during the Deferral Period with respect to the number of shares covered by a Deferred Stock Award will be paid to the Holder currently, or deferred and deemed to be reinvested in additional Deferred
Stock, or otherwise reinvested on such terms as are 

  

 B-6 

 
determined at the time of the Award by the Committee, in its sole discretion, and specified in the Deferred Stock agreement. 
 6.4. The Committee may condition the grant of an Award of Deferred Stock or the expiration of the Deferral Period upon the Holder’s
achievement of one or more Performance Goal(s) specified in the Deferred Stock agreement. Unless otherwise specified in a Deferred Stock agreement, if the Holder fails to achieve the specified Performance Goal(s), the Committee shall not grant the
Deferred Stock Award to the Holder, or the Holder shall forfeit the Award and no Common Stock shall be transferred to him pursuant to the Deferred Stock Award. Dividends paid during the Deferral Period on Deferred Stock subject to a Performance Goal
shall be reinvested in additional Deferred Stock and the expiration of the Deferral Period for such Deferred Stock shall be subject to the Performance Goal(s) previously established by the Committee. 
 6.5. The Deferred Stock agreement shall specify the duration of the Deferral Period, taking into account termination of employment or
service on account of death, Disability, Retirement or other cause. The Deferral Period may consist of one or more installments. At the end of the Deferral Period or any installment thereof the shares of Deferred Stock applicable to such installment
credited to the account of a Holder shall be issued and delivered to the Holder (or, where appropriate, the Holder’s legal representative) in accordance with the terms of the Deferred Stock agreement. The Committee may, in its sole discretion,
accelerate the delivery of all or any part of a Deferred Stock Award or waive the deferral limitations for all or any part of a Deferred Stock Award. 
  

	 	7.	Restricted Stock 

 An Award of Restricted
Stock is a grant by the Company of a specified number of shares of Common Stock to the Participant, which shares are subject to forfeiture upon the happening of specified events. Such an Award shall be subject to the following terms and conditions:

 7.1. Restricted Stock shall be evidenced by Restricted Stock agreements. Such agreements shall conform to the requirements
of the Plan and may contain such other provisions as the Committee shall deem advisable. 
 7.2. Upon determination of the
number of shares of Restricted Stock to be granted to the Holder, the Committee shall direct that a certificate or certificates representing the number of shares of Common Stock be issued to the Holder with the Holder designated as the registered
owner. The certificate(s) representing such shares shall be legended as to sale, transfer, assignment, pledge or other encumbrances during the Restriction Period and deposited by the Holder, together with a stock power endorsed in blank, with the
Company, to be held in escrow during the Restriction Period. 
 7.3. During the Restriction Period the Holder shall have the
right to vote the shares of Restricted Stock. Subject to the provisions of Section 7.4 concerning Restricted Stock Awards that are subject to the achievement of Performance Goals, amounts equal to any dividends declared during the Restriction
Period with respect to the number of shares covered by a Restricted Stock Award will be paid to the Holder currently, or deferred and deemed to be reinvested in additional Restricted Stock, or otherwise reinvested on such terms as are determined at
the time of the Award by the Committee, in its sole discretion, and specified in the Restricted Stock agreement. 
 7.4. The
Committee may condition the grant of an Award of Restricted Stock or the expiration of the Restriction Period upon the Holder’s achievement of one or more Performance Goal(s) specified in the Restricted Stock Agreement. Unless otherwise
specified in a Restricted Stock Agreement, if the Holder fails to achieve the specified Performance Goal(s), the Committee shall not grant the Restricted Stock to the Holder, or the Holder shall forfeit the Award of Restricted Stock and the Common
Stock shall be forfeited to the Company. Dividends paid during the Restriction Period on Restricted Stock subject to a Performance Goal shall be reinvested 

  

 B-7 

 
in additional Restricted Stock and the expiration of the Restriction Period for such Restricted Stock shall be subject to the Performance Goal(s) previously
established by the Committee. 
 7.5. The Restricted Stock agreement shall specify the duration of the Restriction Period and
the performance, employment or other conditions (including termination of employment or service on account of death, Disability, Retirement or other cause) under which the Restricted Stock may be forfeited to the Company. At the end of the
Restriction Period the restrictions imposed hereunder shall lapse with respect to the number of shares of Restricted Stock as determined by the Committee, and the legend shall be removed and such number of shares delivered to the Holder (or, where
appropriate, the Holder’s legal representative). The Committee may, in its sole discretion, modify or accelerate the vesting and delivery of shares of Restricted Stock. 
  

	 	8.	Options 

 Options give a Participant the
right to purchase a specified number of shares of Common Stock from the Company for a specified time period at a fixed price. Options may be either Incentive Stock Options or Non-Qualified Stock Options. The grant of Options shall be subject to the
following terms and conditions: 
 8.1. Option Grants: Options shall be evidenced by Option agreements. Such agreements shall
conform to the requirements of the Plan, and may contain such other provisions as the Committee shall deem advisable. 
 8.2.
Specific Option Grants to Directors: Each Director who is not an employee of the Company shall receive an Option to purchase 25,000 shares of Common Stock upon his or her initial election to the Board, and the shares of Common Stock underlying such
Options shall vest one-third (1/3) per year that such Director remains a Director for three years beginning on the first anniversary of the grant. Beginning at the 2003 annual meeting of the stockholders of the Company and at each annual
meeting of the stockholders of the Company held thereafter while the Plan is in effect, each Director continuing as such after such meeting who is not an employee of the Company shall receive an Option to purchase 20,000 shares of Common Stock, and
the shares of Common Stock underlying such Options shall vest in full on the first anniversary of the grant; provided, however, that in the event a Director resigns from the Board other than for Cause prior to such one-year
anniversary, the vesting of such Option shall accelerate so that such Option becomes immediately exercisable with respect to one-twelfth (1/12) of the shares of Common Stock underlying such Option for each full month that has elapsed between
the date of the grant of such Option and the date of such resignation. Notwithstanding anything to the contrary in the Plan, the price per share at which Common Stock may be purchased upon the exercise of an Option granted pursuant to this
Section 8.2 shall be not less than the Fair Market Value of a share of Common Stock on the date of grant. 
 8.3. Option
Price: The price per share at which Common Stock may be purchased upon exercise of an Option shall be not less than the Fair Market Value of a share of Common Stock on the date of grant. In the case of any Incentive Stock Option granted to a Ten
Percent Shareholder, the option price per share shall not be less than 110% of the Fair Market Value of a share of Common Stock on the date of grant. 
 8.4 Term of Options: The Option agreements shall specify when an Option may be exercisable and the terms and conditions applicable thereto. The term of an Option shall in no event be greater than ten years (five years
in the case of an Incentive Stock Option granted to a Ten Percent Shareholder and ten years in the case of all other Incentive Stock Options). The Committee may, in its sole discretion, accelerate the time at which an Option vests. The Committee
may, in its sole discretion, extend the period of exercise for Options that have vested. 
 8.5 Incentive Stock Options: Each
provision of the Plan and each Option agreement relating to an Incentive Stock Option shall be construed so that each Incentive Stock Option shall be an incentive stock option as defined in section 422 of the Code, and any provisions of the Option
agreement thereof that cannot 

  

 B-8 

 
be so construed shall be disregarded. In no event may a Holder be granted an Incentive Stock Option which does not comply with such grant and vesting
limitations as may be prescribed by section 422(b) of the Code. Incentive Stock Options may only be granted to Employees; provided, however, that they may not be granted to employees of Affiliates. Without limiting the foregoing, the
aggregate Fair Market Value (determined as of the time the Option is granted) of the Common Stock with respect to which an Incentive Stock Option may first become exercisable by a Participant in any one calendar year under the Plan shall not exceed
$100,000. 
 8.6 Restrictions on Transferability of Incentive Stock Options: No Incentive Stock Option shall be transferable
otherwise than by will or the laws of descent and distribution and, during the lifetime of the Holder, shall be exercisable only by the Holder. Upon the death of a Holder, the Person to whom the rights have passed by will or by the laws of descent
and distribution may exercise an Incentive Stock Option only in accordance with this Section 8. 
 8.7 Payment of Option
Price: The option price of the shares of Common Stock upon the exercise of an Option shall be paid: (i) in full in cash at the time of the exercise, (ii) with the consent of the Committee, in whole or in part in Common Stock held by the
Holder for at least six months valued at Fair Market Value on the date of exercise, or (iii) if approved by the Committee in its discretion, by assigning to the Company a sufficient amount of the proceeds from the sale of shares of Common Stock
to be acquired pursuant to such exercise and instructing the broker or selling agent to pay that amount to the Company, which amount shall be paid in cash to the Company on the date such shares of Common Stock are issued to the Participant. With the
consent of the Committee, payment upon the exercise of a Non-Qualified Option may be made in whole or in part by Restricted Stock which has been held by the Holder for at least six months (based on the fair market value of the Restricted Stock on
the date the Option is exercised, as determined by the Committee). In such case the Common Stock to which the Option relates shall be subject to the same forfeiture restrictions originally imposed on the Restricted Stock exchanged therefor.

 8.8 Termination by Death: Unless otherwise provided in an Option agreement, if a Holder’s employment or service by
the Company, a Subsidiary or Affiliate terminates by reason of death, any Option granted to such Holder may thereafter be exercised (to the extent such Option was exercisable at the time of death) by, where appropriate, the Holder’s transferee
or by the Holder’s legal representative, for a period of 12 months from the date of death or until the expiration of the stated term of the Option, whichever period is shorter. 
 8.9 Termination by Reason of Disability: Unless otherwise provided in an Option agreement, if a Holder’s employment or service by
the Company, a Subsidiary or Affiliate terminates by reason of Disability, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the
extent it was exercisable at the time of termination, for a period of 12 months from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
 8.10 Termination by Reason of Retirement: If a Holder’s employment by or service with the Company, a Subsidiary or Affiliate
terminates by reason of Retirement, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was exercisable at the time of
termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
 8.11 Termination Not for Cause: If a Holder’s employment by or service with the Company, a Subsidiary or Affiliate is terminated by
the Company, the Subsidiary or Affiliate not for Cause, any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative), to the extent it was
exercisable at the time of termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
  

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 8.12 Termination for Cause: If a Holder’s employment or service with the Company, a
Subsidiary or Affiliate is terminated by the Company, the Subsidiary or Affiliate for Cause, all unexercised Options awarded to the Holder shall terminate on the date of such termination. 
 8.13 Termination for Other Reason: If a Holder’s employment or service with the Company, a Subsidiary or Affiliate terminates for
any reason not specified in this Section 8 (including voluntary termination), any unexercised Option granted to the Holder may thereafter be exercised by the Holder (or, where appropriate, the Holder’s transferee or legal representative),
to the extent it was exercisable at the time of termination, for a period of 90 days from the date of such termination of employment or service or until the expiration of the stated term of the Option, whichever period is shorter. 
 8.14 Continuation of Service: Notwithstanding anything to the contrary in this Section 8, a Holder’s cessation of service as an
Employee, Director or Consultant other than for Cause shall not be treated as a termination under this Section 8 if the Holder continues without interruption to serve thereafter in a material manner in one (or more) of such other capacities, as
determined by the Committee in its sole discretion. 
  

	 	9.	Changes in Capitalization; Change of Control 

 9.1. In the event of a reorganization, recapitalization, stock split, spin-off, split-off, split-up, stock dividend, issuance of stock rights, combination of shares, merger, consolidation or any other change in the
corporate structure of the Company affecting Common Stock, or any distribution to stockholders of the Company other than a cash dividend, the Board shall make appropriate adjustment in the number and kind of shares authorized by the Plan and any
other adjustments to outstanding Awards as it determines appropriate. No fractional shares of Common Stock shall be issued pursuant to such an adjustment. The Fair Market Value of any fractional shares resulting from adjustments pursuant to this
Section shall, where appropriate, be paid in cash to the Holder. 
 9.2. Upon a Change of Control, the Committee shall fully
vest all Awards made under the Plan. In addition, upon a Change of Control, the Committee may, at its discretion (i) cancel any outstanding Awards in exchange for a cash payment of an amount equal to the difference between the then Fair Market
Value of the Award less the option or base price of the Award, (ii) after having given the Award Holder a chance to exercise any outstanding Options, terminate any or all of the Award Holder’s unexercised Options, or (iii) where the
Company is not the surviving corporation, cause the surviving corporation to assume or replace all outstanding Awards with comparable awards. 
 9.3. The judgment of the Committee with respect to any matter referred to in this Section 9 shall be conclusive and binding upon each Holder without the need for any amendment to the Plan. 
  

	 	10.	Effective Date, Termination and Amendment 

  

 B-10 

 The Plan shall become effective on February 27, 2003, subject to shareholder approval. Options
granted under the Plan prior to such shareholder approval shall expressly not be exercisable prior to such approval. The Plan shall remain in full force and effect until the earlier of ten years from the date of its adoption by the Board, or the
date it is terminated by the Board. The Board shall have the power to amend, suspend or terminate the Plan at any time, provided that no such amendment shall be made without shareholder approval (except as provided in Section 9) which shall
(i) increase the total number of shares available for issuance pursuant to the Plan; (ii) materially increase the benefits to Participants, including any material change to: (a) permit a repricing (or decrease in exercise price) of
outstanding Options, (b) reduce the price at which shares or Options to purchase shares may be offered, or (c) extend the duration of the Plan; (iii) change the class of Participants eligible to be Holders; (iv) modify the
Individual Limit (except as provided Section 9) or the categories of Performance Goals set forth in Section 4.4; (v) expand the types of Awards provided under the Plan; or (vi) change the provisions of this Section 10.
Termination of the Plan pursuant to this Section 10 shall not affect Awards outstanding under the Plan at the time of termination. 
  

	 	11.	Transferability 

 Except as provided in
Section 8.6 and this Section 11, Awards may not be pledged, assigned or transferred for any reason during the Holder’s lifetime, and any attempt to do so shall be void and the relevant Award shall be forfeited. The Committee may grant
Awards (except Incentive Stock Options) that are transferable by the Holder during his lifetime, but such Awards shall be transferable only to the extent specifically provided in the agreement entered into with the Holder. The transferee of the
Holder shall, in all cases, be subject to the provisions of the agreement between the Company and the Holder. 
  

	 	12.	General Provisions 

 12.1. Nothing
contained in the Plan, or any Award granted pursuant to the Plan, shall confer upon any Employee or Consultant any right with respect to continuance of employment or service by the Company, a Subsidiary or Affiliate, nor interfere in any way with
the right of the Company, a Subsidiary or Affiliate to terminate the employment or service of any Employee or Consultant at any time. 
 12.2. Nothing contained in the Plan, and no action taken pursuant to the provisions of the Plan, shall create or shall be construed to create a trust of any kind, or a fiduciary relationship between the Company or its
Subsidiaries, or their officers or the Committee, on the one hand, and any Participant, the Company, its Subsidiaries or any other Person or entity, on the other. 
 12.3. For purposes of this Plan, neither (i) transfer of employment between the Company and its Subsidiaries and Affiliates nor
(ii) transfer of status from Employee to Consultant shall be deemed termination of employment. 
 12.4. Holders shall be
responsible to make appropriate provision for all taxes required to be withheld in connection with any Award, the exercise thereof and the transfer of shares of Common Stock pursuant to this Plan. Such responsibility shall extend to all applicable
Federal, state, local or foreign withholding taxes. In the case of the payment of Awards in the form of Common Stock, or the exercise of Options, the Company shall have the right to retain the number of shares of Common Stock whose Fair Market Value
equals the amount to be withheld in satisfaction of the applicable withholding taxes. Agreements evidencing such Awards shall contain appropriate provisions to effect withholding in this manner. 
 12.5. Without amending the Plan, Awards may be granted to Participants who are foreign nationals or employed outside the United States or
both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Committee, be necessary or desirable to further the purpose of the Plan. 
  

 B-11 

 12.6. To the extent that Federal laws (such as the 1934 Act, the Code or the Employee
Retirement Income Security Act of 1974) do not otherwise control, the Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the State of Delaware and construed accordingly. 
 12.7. The Committee may amend any outstanding Awards to the extent it deems appropriate; provided, however, except as
provided in Section 9, no Award may be repriced, replaced, regranted through cancellation, or modified without shareholder approval if the effect would be to reduce the exercise price for the shares underlying the Award. The Committee may amend
Awards without the consent of the Holder, except in the case of amendments adverse to the Holder, in which case the Holder’s consent is required to any such amendment. 
 12.8. All shares of Common Stock purchased upon the exercise of an Option or issued pursuant to an Award of Deferred Stock or Restricted
Stock shall be subject to restrictions on transfer pursuant to applicable securities laws and such other agreements as the Committee shall deem appropriate and shall bear a legend subjecting such shares to those restrictions on transfer in
accordance with the applicable Award. The certificates shall also bear a legend referring to any restrictions on transfer arising hereunder or under any other applicable law, regulation, rule or agreement. 
 12.9. The Plan and each Award under the Plan shall be subject to the requirement that if at any time the Committee shall determine that
(i) the listing, registration or qualification of the shares of Common Stock purchased upon the exercise of an Option or issued pursuant to an Award of Deferred Stock or Restricted Stock upon any securities exchange or under any state or
federal law, (ii) the consent or approval of any government regulatory body or (iii) an agreement by the recipient of an Award with respect to the disposition of such shares is necessary or desirable as a condition of, or in connection
with, the Plan or the granting of such Award or the issue or purchase of such shares thereunder, the Award may not be consummated in whole or in part until such listing, registration, qualification, consent, approval or agreement shall have been
effected or obtained free of any conditions not acceptable to the Committee. 
  

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