Document:

EX-10.1

  Exhibit 10.1

    

  In accordance with Item 601(b)(2)(ii) of Regulation S-K, certain information (indicated by “[**]”) has been excluded from this exhibit because it is both not material and would likely cause competitive harm to the registrant if publicly disclosed.

   

  FOURTH AMENDMENT TO LICENSE AND COLLABORATION AGREEMENT

  THIS FOURTH AMENDMENT (this “Amendment”) is made and entered into as of August 25, 2022 (the “Amendment Effective Date”) to amend that certain License and Collaboration Agreement dated November 27, 2017, as amended (the “Agreement”), by and between ALKERMES PHARMA IRELAND LIMITED (“Alkermes”) and BIOGEN SWISS MANUFACTURING GMBH (“Biogen”). Unless noted otherwise, capitalized terms used but not defined herein shall have the meanings set forth in the Agreement.

  RECITALS

  WHEREAS, Alkermes and Biogen have entered into the Agreement;

  WHEREAS, Alkermes and Biogen now wish to amend the Agreement to add, among other things, detail in respect of an additional royalty payment to be paid to Alkermes on certain Commercial Supplies of the Alkermes 8700 Product;

  NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 

  1.Section 1.1 of the Agreement is hereby amended to add the following new defined terms:

  “Bulk Form Only Product” shall mean Alkermes 8700 Product Commercial Supplies (as that term is defined in the Commercial Supply Agreement) to be Delivered (as that term is defined in the Commercial Supply Agreement) in Bulk Form (as that term is defined in the Commercial Supply Agreement) and for which finished form to be derived therefrom is to be Manufactured (including Packaged) by Biogen or a Third Party in lieu of Alkermes.

   “Packaging” (and its cognate expressions) shall mean the filling into bottles, labelling, packaging and/or finishing of Commercial Supplies of Alkermes 8700 Product.

  “[**] Annual Net Selling Price” or “[**] ANSP” means the [**] net selling price (in U.S. Dollars) per capsule of the Alkermes 8700 Product as calculated on a Calendar Year basis based on [**] Alkermes 8700 Product sold [**] during such Calendar Year, excluding any samples or other forms of Alkermes 8700 Product that are provided free of charge. [**].

  2.Section 5.1.2 of the Agreement is hereby deleted in its entirety and replaced with the following text:

  5.1.2 Commercial Supplies.  Pursuant to this Agreement, Biogen has the right to Manufacture or have Manufactured Commercial Supplies. Biogen has considered in good faith, and hereby appoints, Alkermes as the toll manufacturer for such Commercial Supplies for Commercialization in the Territory at a site outside of the United States, and Biogen and its Affiliates and Sublicensees will purchase Commercial Supplies exclusively from Alkermes; provided that, (A) with respect to the Alkermes 8700 Product only and subject to the Manufacturing transition plan referenced in this Section 5.1.2, Biogen’s appointment of Alkermes as toll manufacturer, Alkermes’ obligation to Manufacture, and the obligations of Biogen and its Affiliates and Sublicensees to purchase Clinical Supplies and Commercial Supplies exclusively from Alkermes will each expire on the Exclusive Manufacturing End 

   

  

   

  Date, (B) with respect to Bulk Form Only Product, Biogen shall have the right to Manufacture or engage a Third Party to Manufacture the finished form to be derived from such Bulk Form; and (C) for Products other than the Alkermes 8700 Product, Biogen may qualify to Manufacture, or engage and qualify a Third Party to Manufacture, Commercial Supplies as a back-up manufacturer so long as such Third Party Manufacturer does not Manufacture more than [**] percent ([**]%) of Commercial Supplies in the aggregate in any Calendar Year, except in the event of a Force Majeure Delay or a Serious Failure to Supply.

  Upon Biogen’s written request, Alkermes and Biogen shall work in good faith to (a) enter into a technology transfer plan pursuant to which Alkermes will undertake a Technology Transfer in accordance with Section 3.2.3(iv) of the Agreement, including the reimbursement provisions therein, as promptly as reasonably practicable and, in any event, to be completed no later than [**] after Biogen’s written request to transition manufacturing and enter into a technology transfer plan, and (b) enter into a Manufacturing transition plan ([**]) to ensure the orderly transition after the Exclusive Manufacturing End Date to Biogen or its designee of Manufacturing responsibility for Clinical Supplies and Commercial Supplies of the Alkermes 8700 Product in an effort to prevent any interruption in the supply of such product.

  Notwithstanding anything to the contrary set forth in this Section 5.1.2, if (i) Alkermes foregoes its exclusive right to Manufacture or have Manufactured Commercial Supplies, (ii) Alkermes undergoes a Change of Control in which the acquirer is a competitor of Biogen set forth on Schedule 5.1 or a Third Party toll manufacturer that Manufactures a competing fumarate product or (iii) there is a Serious Failure to Supply, then in any case ((i)-(iii)), (a) Biogen and its Affiliates and Sublicensees will have no further obligation to exclusively purchase Commercial Supplies from Alkermes, (b) Biogen will have the exclusive right to Manufacture or have Manufactured Commercial Supplies and (c) Alkermes will promptly conduct a transfer (to the extent not already conducted pursuant to any Technology Transfer) of all necessary Manufacturing technology to Biogen or its designee to enable Biogen or such designee to Manufacture Commercial Supplies. In addition, in the event of a Force Majeure Delay (and for the duration thereof), until such time as Alkermes is able to resume sufficient Manufacturing to meet Biogen’s demand for Commercial Supplies, Biogen may Manufacture itself or have Manufactured by its back-up manufacturer, all Commercial Supplies for so long as Alkermes is unable to meet Biogen’s demand.

  3.A new Section 9.5.1(i)(C) of the Agreement is hereby added with the following text:

  (C) Additional Royalty Percentage for Bulk Form Only Product. 

  (I) As further consideration for the performance of Alkermes’ obligations under this Agreement and under the Commercial Supply Agreement, Biogen will pay to Alkermes, in addition to the royalties otherwise owing pursuant to this Section 9.5, an additional royalty payment on each Batch (as that term is defined in the Commercial Supply Agreement) of Bulk Form Only Product supplied during a given Calendar Year at the rate of [**] percent ([**]%) of the [**] ANSP, multiplied by the number of capsules yielded from such Batch of Bulk Form Only Product (the “Bulk Form Only Product Additional Royalty”), subject to the exclusions set forth in (II) below and in accordance with the payment schedule set forth in (III) below.

  (II) Notwithstanding subsection (I) above, the Bulk Form Only Product Additional Royalty shall not apply to and shall not be payable for any Batch of Bulk Form Only Product Packaged by Biogen or its designee due to either:

   

  a) such Batch being in excess of the agreed threshold number of Bulk Form Batches ([**]) to be Packaged by Alkermes in each Calendar Year (the “Agreed Packaging Core Capacity”); or 

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  b) the packaging line at the Alkermes Facility (as that term is defined in the Commercial Supply Agreement) not being functional for [**] (excluding any scheduled shutdown) (such [**] period, a “Prolonged Shutdown”), provided that the only Batches subject to this exclusion are those Batches scheduled to be Packaged by Alkermes during the time period commencing after such Prolonged Shutdown and continuing until such time as Alkermes deems its packaging line to be functional again. For clarity, any Batch diverted after a Prolonged Shutdown as set forth in this subsection (II)(b) shall nevertheless be deemed to have been Packaged by Alkermes for purposes of determining whether that Batch or any future Batch is within or in excess of the Agreed Packaging Core Capacity.

  (III)  The Bulk Form Only Product Additional Royalty shall be payable on an annual basis at the end of each Calendar Year as follows:

  (a) At the end of each Calendar Year, a calculation will be performed to determine the number of Batches of Bulk Form Only Product supplied during such Calendar Year for which the Bulk Form Only Product Additional Royalty is payable (such number, the “Number of Additional Royalty Batches”). The Bulk Form Only Product Additional Royalty payable for such Calendar Year will be calculated in respect of the first Batches of Bulk Form Only Product supplied to Biogen during such Calendar Year up to the number of Batches equal to the Number of Additional Royalty Batches (such Batches, the “Additional Royalty Batches”). For example, if it is determined that the Number of Additional Royalty Batches for a given Calendar Year is three, then the first three Batches of Bulk Form Only Product supplied during such Calendar Year shall be deemed the Additional Royalty Batches and all calculations and assessments relating to the Bulk Form Only Product Additional Royalty (e.g., number of capsules yielded, whether or not such Batch was Packaged, etc.) shall be determined based on those first specific three Batches. 

  (b)  For each Additional Royalty Batch that is Packaged by Biogen or its designee (whether in whole or in part) in the same Calendar Year in which it is supplied by Alkermes to Biogen (regardless of the final use of such Additional Royalty Batch, whether for samples or otherwise), the Bulk Form Only Product Additional Royalty shall become payable in the Calendar Year in which such Additional Royalty Batch was supplied. For each Additional Royalty Batch that is not Packaged by Biogen or its designee in the same Calendar Year in which it is supplied by Alkermes, the Bulk Form Only Product Additional Royalty shall become payable in the Calendar Year immediately following the Calendar Year in which such Additional Royalty Batch was supplied, regardless of whether or when it is ultimately Packaged by Biogen or its designee.

   

  4.Section 9.5.5 of the Agreement is hereby deleted in its entirety and replaced with the following text:

  9.5.5. No Valid Claim. On a country-by-country and Product-by-Product basis, in any country in which a Product is Commercialized and there are no remaining Valid Claims of the Licensed Patents that Cover the use or sale of such Product in such country, the royalties payable to Alkermes on Net Sales of such Product pursuant to (i) Section 9.5.1(i)(A) will be reduced to [**] percent ([**]%) of such Net Sales for the Alkermes 8700 Product; (ii) Section 9.5.1(i)(B) will be reduced to [**] percent ([**]%) of such Net Sales for the Alkermes 8700 Product and (iii) Section 9.5.2 will be reduced to [**] percent ([**]%) of the applicable royalty rate for any Product (other than the Alkermes 8700 Product). For clarity, the royalty due under Section 9.5.1(i)(B) is a combined royalty comprised of a portion ([**] percent ([**]%)) that is payable in consideration of the licenses contained herein and a portion ([**] percent ([**]%)) that is payable in consideration of the loss of Manufacturing-related fees, and only that portion payable in consideration of the licenses contained herein ([**] percent ([**]%)) shall be subject to reduction pursuant to this Section 9.5.5. For further clarity, the 

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  royalties payable to Alkermes pursuant to Section 9.5.1(i)(C) are entirely in consideration of the loss of Manufacturing-related fees and are therefore not subject to reduction pursuant to this Section 9.5.5.

  5.Section 9.6 of the Agreement is hereby deleted in its entirety and replaced with the following text:

  9.6. Reporting and Payments. 

  (i) 	For each Calendar Quarter for which royalties are payable by Biogen to Alkermes pursuant to Section 9.5.1(i)(A) or 9.5.1(i)(B) or Section 9.5.2, Biogen will:

   (a)	deliver to Alkermes, within five (5) days after the end of each such Calendar Quarter, a nonbinding estimated report prepared in good faith;

  (b) 	deliver to Alkermes, within forty-five (45) days after the end of each such Calendar Quarter a true and accurate report;

  (c)	In each case of (a) and (b), providing in reasonable detail:

  (I)an accounting of all Net Sales made on a country-by-country and Product-by-Product basis in the Territory during such Calendar Quarter, including the amount of gross sales of Products and the aggregate allowable deductions therefrom, 

  (II)the number of units of Products sold,

  (III)the currency conversion rates used, 

  (IV)the U.S. Dollar-equivalent of such Net Sales during such Calendar Quarter and 

  (V)a calculation of the amount of royalty payment due on such Net Sales; 

  (d) 	within forty-five (45) days after the end of each such Calendar Quarter, pay Alkermes the royalties due under Sections 9.5.1(i)(A) and 9.5.1(i)(B) and Section 9.5.2 with respect to such Calendar Quarter as provided for in the report delivered under (b) above. Each of the reports set forth in this Section 9.6(i) will be organized to distinguish whether the Alkermes 8700 Product was Manufactured by Alkermes or Biogen or their respective designees and, in the case of the report set forth in (b), the amount of Alkermes 8700 Product in inventory as of the end of the Calendar Quarter to which the report relates. In addition, within forty-five (45) days after the end of the first Calendar Quarter following each twelve (12)-month period during the Minimum Annual Payment Term, Biogen shall pay Alkermes any amount due under Section 9.5.l(ii) for such twelve (12)-month period; and 

  (e)	Any payments due under this Agreement for less than a full Calendar Quarter will be prorated.

  (ii) 	For each Calendar Year for which Bulk Form Only Product is supplied to Biogen or during which any Bulk Form Only Product Additional Royalty is payable by Biogen to Alkermes pursuant to Section 9.5.1(i)(C), Biogen will:

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  (a) 	deliver to Alkermes, within five (5) days after the end of each such Calendar Year, a nonbinding estimated report prepared in good faith;

   (b) 	deliver to Alkermes, within forty-five (45) days after the end of each such Calendar Year a true and accurate report;

  (c)	In each case of (a) and (b), providing in reasonable detail: 

  (I)the total number of Batches of Bulk Form Only Product supplied during such Calendar Year,

  (II)the [**] ANSP of all Alkermes 8700 Product sold in the Territory during such Calendar Year, 

  (III)the total number of Batches of Bulk Form Only Product ordered pursuant to Firm POs (as that term is defined in the Commercial Supply Agreement) for Delivery in such Calendar Year,

  (IV)the total number of Batches of Bulk Form Only Product supplied during such Calendar Year for which the Bulk Form Only Product Additional Royalty is not payable due to the exclusions set forth in Sections 9.5.1(i)(C)(II)(a) and (b),

  (V)the Number of Additional Royalty Batches for such Calendar Year,

  (VI)identification (by Batch number) of the specific Additional Royalty Batches for such Calendar Year and the number of Bulk Form capsules yielded from each such Additional Royalty Batch, 

  (VII)the total number of Additional Royalty Batches supplied by Alkermes during such Calendar Year that were Packaged by or on behalf of Biogen in such Calendar Year and the total number of Additional Royalty Batches supplied by Alkermes during such Calendar Year that were not Packaged by or on behalf of Biogen in such Calendar Year, 

  (VIII)the total number of Additional Royalty Batches supplied by Alkermes during the previous Calendar Year that were not Packaged by or on behalf of Biogen during the previous Calendar Year (and therefore not included in the calculation of the Bulk Form Only Product Additional Royalty for the previous Calendar Year), 

  (IX)the currency conversion rates used for calculating the [**] ANSP, 

  (X)a calculation of the total amount of Bulk Form Only Product Additional Royalty payment due; and 

  (d) 	within forty-five (45) days after the end of each such Calendar Year, pay Alkermes the royalties due under Section 9.5.1(i)(C) with respect to such Calendar Year as provided for in the report delivered under (b) above.

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  (iii)Each report delivered hereunder shall be considered Confidential Information of Biogen, subject to the terms and conditions of Article 8. 

  (iv)Biogen and Alkermes shall conduct no fewer than four quarterly meetings per Calendar Year to review and discuss the calculation of the Bulk Form Only Product Additional Royalty. The final meeting of each year will occur no later than the first week in December to allow for the preparation of the final reconciliation and Bulk Form Only Product Additional Royalty report for such Calendar Year.

  6.For clarity, nothing in this Amendment shall modify or be deemed to have modified Section 9.5.1(i)(B) of the Agreement and Alkermes and Biogen acknowledge and agree that all Batches Manufactured in Bulk Form by Biogen or its designee(s) will also be Manufactured (or deemed to have been Manufactured) in finished form by Biogen or its designee(s) and subject to the royalty rate set forth in Section 9.5.1(i)(B).

  7.For clarity, this Amendment does not constitute a waiver of Alkermes exclusive right to Manufacture or have Manufactured Commercial Supplies under Section 5.1.2 of the Agreement, except as specifically set forth therein.  

  8.This Amendment shall be governed by and construed in accordance with the laws of the State of New York without regard to its conflict of law provisions.

  9.Except as expressly provided in this Amendment, all other terms, conditions and provisions of the Agreement shall continue in full force and effect as provided therein. The Agreement (as amended by this Amendment), this Amendment and the Commercial Supply Agreement (as amended) constitute the entire agreement between the Parties relating to the subject matter hereof and thereof and supersede all prior and contemporaneous negotiations, agreements, representations, understandings and commitments with respect thereto.

  10.This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures provided by facsimile transmission or in Adobe® PDF sent by electronic mail shall be deemed to be original signatures.

   

  [Signature page follows]

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  IN WITNESS WHEREOF, Alkermes and Biogen have executed and delivered this Amendment effective as of the Amendment Effective Date.

  				
	BIOGEN SWISS MANUFACTURING GMBH
	 

	 
	 
	 
	 

	By:
	/s/ Maja Pedersen
	 
	 

	 
	 
	 
	 

	Name:
	Maja Pedersen
	 
	 

	 
	 
	 
	 

	Title:
	VP Global External Manufacturing
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	ALKERMES PHARMA IRELAND LIMITED
	 

	 
	 
	 
	 

	By:
	/s/ Declan O’Connor
	 
	 

	 
	 
	 
	 

	Name:
	Declan O’Connor
	 
	 

	 
	 
	 
	 

	Title:
	SVP, Operations, Mfg Operations
	 
	 

   

  7Document

Exhibit 10(a)

BRINKER INTERNATIONAL, INC.
STOCK OPTION AND INCENTIVE PLAN
SECTION 1
GENERAL
1.1 Purpose. The Brinker International, Inc. Stock Option and Incentive Plan (the “Plan”) has been established by Brinker International, Inc. (the “Company”) (i) to attract and retain persons eligible to participate in the Plan; (ii) motivate Participants, by means of appropriate incentives, to achieve long-range goals; (iii) provide incentive compensation opportunities that are competitive with those of other similar companies; and (iv) further align Participants’ interests with those of the Company’s other shareholders through compensation that is based on the Company’s common stock; and thereby promote the long-term financial interest of the Company and the Related Companies, including the growth in value of the Company’s equity and enhancement of long-term shareholder return.
1.2 Participation. Subject to the terms and conditions of the Plan, the Committee shall determine and designate, from time to time, from among the Eligible Employees, those persons who will be granted one or more Awards under the Plan, and thereby become “Participants” in the Plan. In the discretion of the Committee, a Participant may be granted any Award permitted under the provisions of the Plan, and more than one Award may be granted to a Participant. Awards may be granted as alternatives to or replacement of awards outstanding under the Plan, or any other plan or arrangement of the Company or a Related Company (including a plan or arrangement of a business or entity, all or a portion of which is acquired by the Company or a Related Company).
1.3 Operation, Administration and Definitions. The operation and administration of the Plan, including the Awards made under the Plan, shall be subject to the provisions of Section 4 (relating to operation and administration). Capitalized terms in the Plan shall be defined as set forth in the Plan (including the definition provisions of Section 8 of the Plan).
SECTION 2
OPTIONS AND SARS
2.1 Definitions.
 
									
	 	(a)	The grant of an “Option” entitles the Participant to purchase shares of Stock at an Exercise Price established by the Committee. Options granted under this Section 2 may be either Incentive Stock Options or Non-Qualified Stock Options, as determined in the discretion of the Committee. An “Incentive Stock Option” is an Option that is intended to satisfy the requirements applicable to an “incentive stock option” described in section 422(b) of the Code. A “Non-Qualified Option” is an Option that is not intended to be an “incentive stock option” as that term is described in section 422(b) of the Code.

 
									
	 	(b)	A stock appreciation right (a “SAR”) entitles the Participant to receive, in cash or Stock (as determined in accordance with subsection 2.5), value equal to all or a portion of the excess of: (a) the Fair Market Value of a specified number of shares of Stock at the time of exercise; over (b) an Exercise Price established by the Committee.

2.2 Exercise Price. The “Exercise Price” of each Option and SAR granted under this Section 2 shall be established by the Committee or shall be determined by a method established by the Committee at the time the Option or SAR is granted, except that the Exercise Price shall not be less than 100% of the Fair Market Value of a share of Stock as of the Pricing Date. For purposes of the preceding sentence, the “Pricing Date” shall be the date on which the Option or SAR is granted.
2.3 Exercise. Options and SARs shall be exercisable in accordance with such terms and conditions and during such periods as may be established by the Committee.

2.4 Payment of Option Exercise Price. The payment of the Exercise Price of an Option granted under this Section 2 shall be subject to the following:
 
									
	 	(a)	Subject to the following provisions of this subsection 2.4, the full Exercise Price for shares of Stock purchased upon the exercise of any Option shall be paid at the time of such exercise (except that, in the case of an exercise arrangement approved by the Committee and described in paragraph 2.4(c), payment may be made as soon as practicable after the exercise).

 
									
	 	(b)	The Exercise Price shall be payable in cash or by tendering shares of Stock (by either actual delivery of shares or by attestation, with such shares valued at Fair Market Value as of the day of exercise), or in any combination thereof, as determined by the Committee.

 
									
	 	(c)	The Committee may permit a Participant to elect to pay the Exercise Price upon the exercise of an Option by authorizing a third party to sell shares of Stock (or a sufficient portion of the shares) acquired upon exercise of the Option and remit to the Company a sufficient portion of the sale proceeds to pay the entire Exercise Price and any tax withholding resulting from such exercise.

2.5 Settlement of Award. Distribution following exercise of an Option or SAR, and shares of Stock distributed pursuant to such exercise, shall be subject to such conditions, restrictions and contingencies as the Committee may establish. Settlement of SARs may be made in shares of Stock (valued at their Fair Market Value at the time of exercise), in cash, or in a combination thereof, as determined in the discretion of the Committee. The Committee, in its discretion, may impose such conditions, restrictions and contingencies with respect to shares of Stock acquired pursuant to the exercise of an Option or a SAR as the Committee determines to be desirable.
SECTION 3
OTHER STOCK AWARDS
3.1 Definition. A Stock Award is a grant of shares of Stock or of a right to receive shares of Stock (or their cash equivalent or a combination of both) in the future. The grant of a right to receive shares of Stock (or their cash equivalent or a combination of both) in the future may be done in such form as the Committee determines, including, without limitation, performance shares or restricted stock units.
3.2 Restrictions on Stock Awards. Each Stock Award shall be subject to such conditions, restrictions and contingencies as the Committee shall determine. These may include continuous service and/or the achievement of performance measures. The Committee may designate a single goal criterion or multiple goal criteria for performance measurement purposes, with the measurement based on absolute Company or business unit performance and/or on performance as compared with that of other publicly traded companies. 

SECTION 4
OPERATION AND ADMINISTRATION
4.1 Effective Date. The Plan shall be effective as of September 3, 1998 (the “Effective Date”), shall be unlimited in duration and, in the event of Plan termination, shall remain in effect as long as any Awards under it are outstanding.
4.2 Shares Subject to Plan.
(a)

									
	 	(i)	Subject to the following provisions of this subsection 4.2, the maximum number shares of Stock that may be delivered to Participants and their beneficiaries under the Plan shall be equal to the sum of: (1) 31,600,000 shares of Stock and (2) any shares of Stock that are represented by awards granted under any prior plan of the Company in which employees are eligible to participate (the “Prior Plans”), which are forfeited, expire or are canceled without delivery of shares of Stock or which result in the forfeiture of shares of Stock back to the Company.

 
									
	 	(ii)	Any shares of Stock granted under the Plan that are forfeited because of the failure to meet an Award contingency or condition shall again be available for delivery pursuant to new Awards granted under the Plan. To the extent any shares of Stock covered by an Award are not delivered to a Participant or beneficiary because the Award is forfeited or canceled, or the shares of Stock are not delivered because the Award is settled in cash, such shares shall not be deemed to have been delivered for purposes of determining the maximum number of shares of Stock available for delivery under the Plan.

 
									
	 	(iii)	Shares of Stock delivered under the Plan in settlement, assumption or substitution of outstanding awards (or obligations to grant future awards) under the plans or arrangements of another entity shall not reduce the maximum number of shares of Stock available for delivery under the Plan, to the extent that such settlement, assumption or substitution as a result of the Company or a Related Company acquiring another entity (or an interest in another entity).

 
									
	 	(iv)	Notwithstanding the foregoing, the following shares of Stock shall not be available for issuance under the Plan:

 
									
	 	(1)	shares tendered by Participants as full or partial payment to the Company upon exercise of Options granted under the Plan;

 
									
	 	(2)	shares reserved for issuance for each SAR granted under the Plan, to the extent the number of reserved shares exceeds the number of shares actually issued upon exercise of each such SAR; and

 
									
	 	(3)	shares withheld by, or otherwise remitted to, the Company to satisfy a Participant’s tax withholding obligations upon the lapse of restrictions on a Stock Award or the exercise of any Options or SARs granted under the Plan or upon any other payment or issuance of shares under the Plan.

 
									
	 	(b)	Subject to paragraph 4.2(c), the following additional maximums are imposed under the Plan.

 
									
	 	(i)	The maximum number of shares of Stock that may be issued by Options intended to be Incentive Stock Options shall be 31,600,000 shares.

 

									
	 	(ii)	The maximum number of shares of Stock that may be issued in conjunction with Awards granted pursuant to Section 3 (relating to Stock Awards) shall equal the sum of: (1) 7,250,000 shares, and (2) the 816,145 shares previously issued in conjunction with Stock Awards during the time period prior to November 13, 2002. From and after November 7, 2013, the maximum number of shares of stock that may thereafter be issued in conjunction with Awards granted pursuant to Section 3 shall be equal to 3,000,000 shares. From and after November 15, 2018, all shares of Stock available to be delivered to Participants may be granted as Awards pursuant to Section 3.

 
									
	 	(iii)	The maximum number of shares that may be covered by Awards granted to any one individual pursuant to Section 2 (relating to Options and SARs) shall be 500,000 shares for any fiscal year.

 
									
	 	(iv)	The maximum number of shares or units that can be made for Awards granted to any one individual pursuant to Section 3 (relating to Stock Awards) shall be 500,000 shares or units for any single or combined performance goals established for any fiscal year.

 
									
	 	(v)	The maximum time period for any Option or SAR to be exercised shall be 10 years from the date of grant.

 
									
	 	(c)	Subject to the provisions of Section 6 hereof, in the event of 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 Committee shall adjust Awards to preserve the benefits or potential benefits of the Awards. Action by the Committee may include adjustment of: (i) the number and kind of shares which may be delivered under the Plan; (ii) the number and kind of shares subject to outstanding Awards; and (iii) the Exercise Price of outstanding Options and SARs as well as any other adjustments that the Committee determines to be equitable.

4.3 Limit on Distribution. Distribution of shares of Stock or other amounts under the Plan shall be subject to the following:
 
									
	 	(a)	Notwithstanding any other provision of the Plan, the Company shall have no liability to deliver any shares of Stock under the Plan or make any other distribution of benefits under the Plan unless such delivery or distribution would comply with all applicable laws (including, without limitation, the requirements of the Securities Act of 1933), and the applicable requirements of any securities exchange or similar entity.

 
									
	 	(b)	To the extent that the Plan provides for issuance of stock certificates to reflect the issuance of shares of Stock, the issuance may be effected on a non-certificated basis, to the extent not prohibited by applicable law or the applicable rules of any stock exchange.

 
4.4 Tax Withholding. Whenever the Company proposes or is required to distribute Stock under the Plan, the Company may require the recipient to remit to the Company an amount sufficient to satisfy any Federal, state and local tax withholding requirements prior to the delivery of any certificate for such shares or, in the discretion of the Committee, the Company may withhold from the shares to be delivered shares sufficient to satisfy all or a portion of such tax withholding requirements. Whenever under the Plan payments are to be made in cash, such payments may be net of an amount sufficient to satisfy any Federal, state and local tax withholding requirements.

4.5 Payment Shares. Subject to the overall limitation on the number of shares of Stock that may be delivered under the Plan, the Committee may use available shares of Stock as the form of payment for compensation, grants or rights earned or due under any other compensation plans or arrangements of the Company or a Related Company, including the plans and arrangements of the Company or a Related Company acquiring another entity (or an interest in another entity).
4.6 Dividends and Dividend Equivalents. An Award may provide the Participant with the right to receive dividends or dividend equivalent payments with respect to Stock which may be either paid currently or credited to an account for the Participant, and may be settled in cash or Stock as determined by the Committee. Any such settlements, and any such crediting of dividends or dividend equivalents or reinvestment in shares of Stock, may be subject to such conditions, restrictions and contingencies as the Committee shall establish, including the reinvestment of such credited amounts in Stock equivalents.
4.7 Payments. Awards may be settled through cash payments, the delivery of shares of Stock, the granting of replacement Awards, or combination thereof as the Committee shall determine. Any Award settlement, including payment deferrals, may be subject to such conditions, restrictions and contingencies as the Committee shall determine. The Committee may permit or require the deferral of any Stock Award payment, subject to such rules and procedures as it may establish, which may include, without limitation, provisions for the payment or crediting of interest, or dividend equivalents, including converting such credits into deferred Stock equivalents, or rules and procedures intended to comply with Section 409(A) of the Code.
4.8 Transferability. Except as otherwise provided by the Committee, Awards under the Plan are not transferable except as designated by the Participant by will or by the laws of descent and distribution. However, in no event may Awards be transferred for monetary value or monetary consideration without the approval of the shareholders of the Company. Notwithstanding the foregoing, Options may be assigned or transferred by the Participant (a) to immediate family members of the Participant, or (b) to a trust in which the Participant or such family members have more than 50% of the beneficial interests, a foundation in which the Participant or such family members control the management of the foundation’s assets, or any other entity in which the Participant or such family members own more than 50% of the voting interests.
4.9 Form and Time of Elections. Unless otherwise specified herein, each election required or permitted to be made by any Participant or other person entitled to benefits under the Plan, and any permitted modification, or revocation thereof, shall be in writing filed with the Committee at such times, in such form, and subject to such restrictions and limitations, not inconsistent with the terms of the Plan, as the Committee shall require.
4.10 Agreement With Company. At the time of an Award to a Participant under the Plan, the Committee may require a Participant to enter into an agreement with the Company (the “Agreement”) in a form specified by the Committee, agreeing to the terms and conditions of the Plan and to such additional terms and conditions, not inconsistent with the Plan, as the Committee may, in its sole discretion, prescribe.
 
4.11 Limitation of Implied Rights.
 
									
	 	(a)	Neither a Participant nor any other person shall, by reason of the Plan, acquire any right in or title to any assets, funds or property of the Company or any Related Company whatsoever, including, without limitation, any specific funds, assets, or other property which the Company or any Related Company, in their sole discretion, may set aside in anticipation of a liability under the Plan. A Participant shall have only a contractual right to the stock or amounts, if any, payable under the Plan, unsecured by any assets of the Company or any Related Company. Nothing contained in the Plan shall constitute a guarantee that the assets of such companies shall be sufficient to pay any benefits to any person.

 

									
	 	(b)	The Plan does not constitute a contract of employment, and selection as a Participant will not give any employee the right to be retained in the employ of the Company or any Related Company, nor any right or claim to any benefit under the Plan, unless such right or claim has specifically accrued under the terms of the Plan. Except as otherwise provided in the Plan, no Award under the Plan shall confer upon the holder thereof any right as a shareholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

4.12 Evidence. Evidence required of anyone under the Plan may be by certificate, affidavit, document or other information which the person acting on it considers pertinent and reliable, and signed, made or presented by the proper party or parties.
4.13 Action by Company or Related Company. Any action required or permitted to be taken by the Company or any Related Company shall be by resolution of its board of directors, or by action of one or more members of the board (including a committee of the board) who are duly authorized to act for the board, or (except to the extent prohibited by applicable law or applicable rules of any stock exchange) by a duly authorized officer of the company.
4.14 Gender and Number. Where the context admits, words in any gender shall include any other gender, words in the singular shall include the plural and the plural shall include the singular.
4.15 Compliance with Section 409(A) of the Code. To the extent applicable, it is intended that the Plan and any Awards granted hereunder are exempt from Section 409(A) of the Code or are structured in a manner that would not cause a Participant to be subject to taxes and interest pursuant to Section 409(A) of the Code. The Plan and any Awards granted hereunder shall be construed and interpreted in a manner consistent with such intent.
4.16 Minimum Vesting Requirement. Except in the case of death, disability, involuntary termination, Retirement or a Change in Control, in no event shall the vesting schedule of an Award provide that any portion of such Award will vest prior to the first anniversary of the grant date; provided, however, that up to an aggregate of 5% of the maximum number shares of Stock that may be delivered to Participants and their beneficiaries under the Plan may be issued without regard to the foregoing requirements.
SECTION 5
COMMITTEE
5.1 Administration. The authority to control and manage the operation and administration of the Plan shall be vested in the Compensation Committee (the “Committee”) in accordance with this Section 5. The Committee shall be selected by the Board and shall consist of two or more members of the Board.
5.2 Powers of Committee. The authority to manage and control the operation and administration of the Plan shall be vested in the Committee, subject to the following:
 
									
	 	(a)	Subject to the provisions of the Plan, the Committee will have the authority and discretion to select from among the Eligible Employees those persons who shall receive Awards, to determine the time or times of receipt, to determine the types of Awards and the number
	 	of shares covered by the Awards, to establish the terms, conditions, performance criteria, restrictions, and other provisions of such Awards, and (subject to the restrictions imposed by Section 6) to cancel or suspend Awards. In making such Award determinations, the Committee may take into account the nature of services rendered by the individual, the individual’s present and potential contribution to the Company’s success and such other factors as the Committee deems relevant.

 
									
	 	(b)	Reserved.

 

									
	 	(c)	Subject to the provisions of the Plan, the Committee will have the authority and discretion to establish terms and conditions of awards as the Committee determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions outside of the United States.

 
									
	 	(d)	The Committee will have the authority and discretion to interpret the Plan, to establish, amend, and rescind any rules and regulations relating to the Plan, to determine the terms and provisions of any agreements made pursuant to the Plan, and to make all other determinations that may be necessary or advisable for the administration of the Plan.

 
									
	 	(e)	Any interpretation of the Plan by the Committee and any decision made by it under the Plan is final and binding.

 
									
	 	(f)	Except as otherwise expressly provided in the Plan, where the Committee is authorized to make a determination with respect to any Award, such determination shall be made at the time the Award is made, except that the Committee may reserve the authority to have such determination made by the Committee in the future (but only if such reservation is made at the time the Award is granted and is expressly stated in the Agreement reflecting the Award).

 
									
	 	(g)	In controlling and managing the operation and administration of the Plan, the Committee shall act by a majority of its then members, by meeting or by writing filed without a meeting. The Committee shall maintain and keep adequate records concerning the Plan and concerning its proceedings and acts in such form and detail as the Committee may decide.

5.3 Delegation by Committee. Except to the extent prohibited by applicable law or the applicable rules of a stock exchange and subject to the prior approval of the Board, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it. Any such allocation or delegation may be revoked by the Committee at any time.
5.4 Information to be Furnished to Committee. The Company and Related Companies shall furnish the Committee with such data and information as may be required for it to discharge its duties. The records of the Company and Related Companies as to an employee’s or Participant’s employment, termination of employment, leave of absence, reemployment and compensation shall be conclusive on all persons unless determined to be incorrect. Participants and other persons entitled to benefits under the Plan must furnish the Committee such evidence, data or information as the Committee considers desirable to carry out the terms of the Plan.
 
SECTION 6
ACCELERATION OF EXERCISABILITY
AND VESTING UNDER CERTAIN CIRCUMSTANCES
Full or partial acceleration of vesting may occur in the event of death, disability, involuntary termination or Retirement. The Committee may accelerate vesting, in whole or in part, under such circumstances as the Committee deems appropriate.
Notwithstanding any provision in this Plan to the contrary, with regard to any Award of Options, SARs and Stock Awards to any Participant, unless the particular grant agreement provides otherwise, the Awards will not become immediately exercisable and vested in full upon the occurrence of a change in control (as defined below and in the applicable award agreements) unless the awards are not assumed or replaced with comparable awards by the acquiring entity or cease to remain outstanding immediately following the change in control.

The events below constitute a change in control (“Change in Control”):
 
									
	 	(a)	a sale, transfer or other conveyance of all or substantially all of the assets of the Company on a consolidated basis; or

 
									
	 	(b)	the acquisition of beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) by any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other than the Company, directly or indirectly, of securities representing 50% or more of the total number of votes that may be cast for the election of directors of the Company; or

 
									
	 	(c)	the failure at any annual or special meetings of the Company’s shareholders held during the three-year period following a “solicitation in opposition” as defined in Rule 14a-6 promulgated under the Exchange Act, of a majority of the persons nominated by the Company in the proxy material mailed to shareholders by the management of the Company to win election to seats on the Board (such majority calculated based upon the total number of persons nominated by the Company failing to win election to seats on the Board divided by the total number of Board members of the Board as of the beginning of such three year period), excluding only those who die, retire voluntarily, are disabled or are otherwise disqualified in the interim between their nomination and the date of the meeting.

SECTION 7
AMENDMENT AND TERMINATION
The Committee may, at any time, amend or terminate the Plan, provided that, subject to subsection 4.2 (relating to certain adjustments to shares) and Section 6 hereof (relating to immediate vesting upon certain events), no amendment or termination may, in the absence of written consent to the change by the affected Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under any Award granted under the Plan prior to the date such amendment is adopted by the Committee. Notwithstanding anything herein to the contrary, no amendment to the Plan may be adopted without the approval of the Company’s shareholders that would (a) materially increase the number of shares available under the Plan (other than an increase solely to reflect a reorganization, stock split, merger, spin-off or similar transaction), (b) change the types of Awards available under the Plan, (c) materially expand the class of persons eligible to receive Awards under or otherwise participate in the Plan, (d) materially extend the term of the Plan, (e) materially change the method of determining the strike price of options under the Plan, (f) permit repricing of an Option or SAR or a cash buyout of underwater Options or SARs, or (g) permit the grant of an Option or SAR for, or in connection with, the cancellation or surrender of an Option, SAR or Stock Award granted under the Plan having a higher option or exercise price.
SECTION 8
DEFINED TERMS
For purposes of the Plan, the terms listed below shall be defined as follows:
 
									
	 	(a)	Award. The term “Award” shall mean any award or benefit granted to any Participant under the Plan, including, without limitation, the grant of Options, SARs, and Stock Awards.

 
									
	 	(b)	Board. The term “Board” shall mean the Board of Directors of the Company.

 

									
	 	(c)	Code. The term “Code” means the Internal Revenue Code of 1986, as amended from time to time, including any rules and regulations thereunder and any Department of Treasury and Internal Revenue Service interpretations thereof. A reference to any provision of the Code shall include reference to any successor provision of the Code.

 
									
	 	(d)	Eligible Employee. The term “Eligible Employee” shall mean any employee of the Company or a Related Company.

 
									
	 	(e)	Fair Market Value. For purposes of determining the “Fair Market Value” of a share of Stock, the following rules shall apply:

 
									
	 	(i)	If the Stock is at the time listed or admitted to trading on any stock exchange, then the “Fair Market Value” shall be the mean the closing price of the Stock on the date in question on the principal exchange on which the Stock is then listed or admitted to trading.

 
									
	 	(ii)	If the Stock is not at the time listed or admitted to trading on a stock exchange, the “Fair Market Value” shall be the mean between the lowest reported bid price and highest reported asked price of the Stock on the date in question in the over-the-counter market as such prices are reported in a publication of general circulation selected by the Committee and regularly reporting the market price of Stock in such market.

 
									
	 	(iii)	If the Stock is not listed or admitted to trading on any stock exchange or traded in the over-the-counter market, the “Fair Market Value” shall be as determined in good faith by the Committee.

 
									
	 	(f)	Exchange Act. The term “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 
									
	 	(g)	Related Companies. The term “Related Company” means any company during any period in which it is a “parent company” (as that term is defined in Code section 424(e)) with respect to the Company, or a “subsidiary corporation” (as that term is defined in Code section 424(f)) with respect to the Company.

 
									
		(h)	Retirement.  The term “Retirement” means that a Participant voluntary resigns from the Company after meeting minimum requirements determined by the Committee, which requirements may include, among other things, satisfying a specified period of service with the Company, meeting minimum age requirements, providing minimum notice, or any combination of the foregoing.
	 	(i)	Stock. The term “Stock” shall mean shares of common stock of the Company.

 
Amended as of October 17, 2022

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