Document:

Exhibit 10.1

Exhibit 10.1

 

 

INTERNATIONAL ISOTOPES INC.

 

AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE
PLAN

 

(effective July 14, 2020)

 

ARTICLE 1. PURPOSE

 

The purpose of this Plan
is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company.
It is the intention of the Company to have the Plan qualify as an "employee stock purchase plan" under Section 423 of
the Code. The provisions of this Plan, accordingly, shall be construed so as to extend and limit participation in a manner consistent
with the requirements of that Section of the Code.

 

ARTICLE 2. DEFINITIONS

 

Certain terms used in
this Plan have the meanings set forth in Appendix I.

 

ARTICLE 3. ELIGIBILITY REQUIREMENTS

 

3.1 Initial Eligibility.
Except as provided in Section 3.2, each Employee shall become eligible to participate in the Plan in accordance with Article 4
on the first Enrollment Date on or following the later of (a) the date such individual becomes an Employee; or (b) the Effective
Date. Participation in the Plan is entirely voluntary.

 

3.2 Limitations on
Eligibility. The following Employees are not eligible to participate in the Plan:

 

(a) Employees whose customary
employment is twenty (20) hours or less per week or any lesser number of hours established by the Committee;

 

(b) Employees whose customary
employment is for not more than five (5) months in any calendar year or any lesser period in a calendar year established by the
Committee; and

 

(c)  Employees who, immediately
upon purchasing Shares under the Plan, would own directly or indirectly, an aggregate of five percent (5%) or more of the total
combined voting power or value of all outstanding shares of all classes of stock of the Company or any Subsidiary (and for purposes
of this paragraph, the rules of Section 424(d) of the Code shall apply, and stock which the Employee may purchase under outstanding
options shall be treated as stock owned by the Employee).

 

ARTICLE 4. ENROLLMENT

 

Any Eligible Employee
may enroll in the Plan for any Offering Period by completing and signing an enrollment election form or by such other means as
the Committee shall prescribe and submitting such enrollment election to the Company in accordance with procedures established
by the Committee on or before the Cut-Off Date with respect to such Offering Period. Unless otherwise determined by the Committee,
the enrollment election and the designated rate of payroll deduction shall continue for future Offering Periods unless the Participant
changes or cancels the enrollment election or designated rate of payroll deduction prior to the Cut-Off Date in accordance with
procedures established by the Committee.

 

 

    	 

 

    	 

    

 

ARTICLE 5. GRANT OF OPTIONS ON ENROLLMENT

 

5.1 Option Grant. Enrollment
by an Eligible Employee in the Plan as of an Enrollment Date will constitute the grant by the Company to such Participant of an
option on such Enrollment Date to purchase Shares from the Company pursuant to the Plan.

 

5.2 Option Expiration.
An option granted to a Participant pursuant to this Plan shall expire, if not terminated for any reason first, on the earliest
to occur of (a) the end of the Offering Period in which such option was granted; (b) the completion of the purchase of Shares under
the option under Article 7; or (c) the date on which participation of such Participant in the Plan terminates for any reason.

 

5.3 Purchase of Shares.
An option granted to a Participant under the Plan shall give the Participant a right to purchase on a Purchase Date the largest
number of whole Shares, as determined by the Committee, which the funds accumulated in the Participant's Account as of such Purchase
Date will purchase at the applicable Purchase Price; provided, however, that the Committee may, in its discretion, limit the number
of Shares purchased by each Participant in any Purchase Period.

 

Notwithstanding anything
to the contrary herein, to the extent required by Section 423 of the Code, no Employee shall be granted an option under the Plan
(or any other plan of the Company or a Subsidiary intended to qualify under Section 423 of the Code) which would permit the Employee
to purchase Shares under the Plan (and such other plan) in any calendar year with a Fair Market Value (determined at the time such
option is granted) in excess of $25,000 and any payments made by a Participant in excess of this limitation shall be returned to
the Participant in accordance with procedures established by the Committee.

 

ARTICLE 6. PAYMENT

 

The Committee may designate
the time and manner for payment of Shares to be purchased during the Purchase Period, including, but not limited to, through payroll
deductions from Compensation, the terms and conditions of which are designated by the Committee. Payment amounts shall be credited
on a bookkeeping basis to a Participant's Account under this Plan. All payment amounts may be used by the Company for any purpose
and the Company shall have no obligation to segregate such funds. No interest accrues on payments by Participants.

 

ARTICLE 7. PURCHASE OF SHARES

 

7.1 Option Exercise.
Any option held by the Participant which was granted under this Plan and which remains outstanding as of a Purchase Date shall
be deemed to have been exercised on such Purchase Date for the number of whole Shares, as determined by the Committee, which the
funds accumulated in the Participant's Account as of the Purchase Date will purchase at the applicable Purchase Price (but not
in excess of the number of Shares for which options have been granted to the Participant pursuant to Section 5.3). Options for
other Shares for which options have been granted which are not purchased on the last Purchase Date during the Offering Period shall
terminate. Shares shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery
of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation,
the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated
thereunder, and the requirements of any stock exchange upon which the Shares may then be listed. As a condition to the exercise
of an option, the Committee may require the person exercising such option to represent and warrant at the time of any such exercise
that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares.

 

7.2 Refund of Excess
Amount. If, after a Participant's exercise of an option under Section 7.1, an amount remains credited to the Participant's
Account as of a Purchase Date, then the remaining amount shall be (a) if no further Purchase Periods are immediately contemplated
by the Committee, distributed to the Participant as soon as administratively feasible, or (b) if another Purchase Period is contemplated
by the Committee, carried forward in the Account for application to the purchase of Shares on the next following Purchase Date.

 

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7.3 Employees of Designated
Subsidiaries. In the case of Participants employed by a Designated Subsidiary, the Committee may provide for Shares to be sold
through the Subsidiary to such Participants, to the extent consistent with Section 423 of the Code.

 

7.4 Pro Rata Allocation.
If the total number of Shares for which options are or could be exercised on any Purchase Date in accordance with this Article
7, when aggregated with all Shares for which options have been previously exercised under this Plan, exceeds the maximum number
of Shares reserved in Article 12, the Company shall allocate the Shares available for delivery and distribution in the ratio that
the balance in each Participant's Account bears to the aggregate balances of all Participants' Accounts, and the remaining balance
of the amount credited to the Account of each Participant under the Plan shall be returned to him or her as promptly as possible.

 

7.5 Notice of Disposition.
If a Participant or former Participant sells, transfers, or otherwise makes a disposition of Shares purchased pursuant to an option
granted under the Plan within two (2) years after the date such option is granted or within one (1) year after the date such Shares
were transferred to the Participant, and if such Participant or former Participant is subject to United States federal income tax,
then such Participant or former Participant shall notify the Company or a member of the Employer in writing of such sale, transfer
or other disposition within ten (10) days of the consummation of such sale, transfer, or other disposition.

 

ARTICLE 8. WITHDRAWAL FROM THE PLAN, TERMINATION
OF EMPLOYMENT, AND LEAVE OF ABSENCE

 

8.1 Withdrawal from
the Plan. A Participant may withdraw all funds accumulated in the Participant's Account from the Plan during any Purchase Period
by delivering a notice of withdrawal to the Company or a member of the Employer (in a manner prescribed by the Committee) at any
time up to thirty (30) days prior to the Purchase Date next following the date such notice of withdrawal is delivered, or at such
shorter time in advance of such Purchase Date as the Committee may permit. If notice of complete withdrawal as described in the
preceding sentence is timely received, all funds then accumulated in the Participant's Account shall not be used to purchase Shares,
but shall instead be distributed to the Participant as soon as administratively feasible and the Company or member of the Employer
will cease the Participant's payroll withholding for the Plan in accordance with timing and other procedures established by the
Committee. An Employee who has withdrawn during a Purchase Period may not return funds to the Company or a member of the Employer
during the same Purchase Period and require the Company or member of the Employer to apply those funds to the purchase of Shares.
Any Eligible Employee who has withdrawn from the Plan may, however, re-enroll in the Plan on the next subsequent Enrollment Date,
if any.

 

8.2 Termination
of Participation. Unless otherwise determined by the Committee, participation in the Plan terminates when a Participant
ceases to be employed by the Company or a member of the Employer for any reason whatsoever or otherwise ceases to be an
Eligible Employee. Unless otherwise determined by the Committee, such Participant shall be deemed to have elected a
withdrawal from the Plan in accordance with Section 8.1 and all funds accumulated in the Participant's Account shall be
distributed to the Participant.

 

8.3 Leave of Absence.
If a Participant takes a leave of absence, such Participant shall have the right, in accordance with procedures prescribed by the
Committee, to elect to withdraw from the Plan in accordance with Section 8.1. To the extent determined by the Committee or required
by Section 423 of the Code, certain leaves of absence may be treated as cessations of employment for purposes of the Plan.

 

 

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ARTICLE 9. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION,
DISSOLUTION, LIQUIDATION,

MERGER OR ASSET SALE

 

9.1 Adjustments Upon Changes
in Capitalization. Subject to any required action by the shareholders of the Company, the right to purchase Shares of Common Stock
covered by a current Offering Period and the number of Shares which have been authorized for issuance under the Plan for any future
Offering Period, the maximum number of Shares each Participant may purchase each Offering Period (pursuant to Section 5.3 hereof),
as well as the price per Share and the number of Shares covered by each right under the Plan which have not yet been purchased
shall be proportionately adjusted in the sole discretion of the Committee for any increase or decrease in the number of issued
Shares resulting from a stock split, reverse stock split, stock dividend, extraordinary cash dividend, combination or reclassification
of the Common Stock, or recapitalization, reorganization, consolidation, split-up, spin-off, or any other increase or decrease
in the number of Shares effected without receipt of consideration by the Company. Except as expressly provided otherwise by the
Committee, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class,
shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of Shares.

 

9.2 Adjustments Upon
Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering Period then
in progress shall be shortened by setting a new Purchase Date (hereinafter the "New Purchase Date"), and shall terminate
immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Committee.
The New Purchase Date shall be before the date of the Company's proposed dissolution or liquidation. Each Participant will be notified
in writing that the Purchase Date for the Participant's right to purchase shares has been changed to the New Purchase Date and
that the applicable number of Shares will automatically be purchased on the New Purchase Date, unless prior to such date the Participant
has withdrawn from the Plan as provided in Section 8.1 hereof.

 

9.3 Adjustment Upon
Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger
of the Company with or into another corporation, each outstanding right to purchase shares shall be assumed or an equivalent right
to purchase shares substituted by the successor corporation or a parent or affiliate of the successor corporation. In the event
that the successor corporation refuses to assume or substitute the right to purchase shares, any Offering Period then in progress
shall be shortened by setting a New Purchase Date and any Offering Period then in progress shall end on the New Purchase Date.
The New Purchase Date shall be before the date of the Company's proposed sale or merger. Each Participant will be notified in writing
that the Purchase Date has been changed to the New Purchase Date and that the applicable number of shares will be purchased automatically
on the New Purchase Date, unless prior to such date the Participant has withdrawn from the Plan as provided in Section 8.1 hereof.

 

9.4 Committee Adjustment.
Without limitation on the preceding provisions, in the event of any corporate transaction, the Committee may make such adjustment
it deems appropriate to prevent dilution or enlargement of rights in the number and class of Shares which may be delivered under
Article 12, in the number, class of or price of Shares available for purchase under the Plan and in the number of Shares which
an Employee is entitled to purchase and any other adjustments it deems appropriate. Without limiting the Committee's authority
under this Plan, in the event of any transaction, the Committee may elect to have the options hereunder assumed or such options
substituted by a successor entity, to terminate all outstanding options either prior to their expiration or upon completion of
the purchase of Shares on the next Purchase Date, or to take such other action deemed appropriate by the Committee.

 

 

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ARTICLE 10. DESIGNATION OF BENEFICIARY

 

Each Participant under the Plan may, from time
to time, name any beneficiary or beneficiaries (who may be named contingently or successively) to whom the amount in his or her
Account is to be paid in case of his or her death before he or she receives any or all of such benefit. Each such designation shall
revoke all prior designations by the same Participant, shall be in a form prescribed by the Committee, and will be effective only
when filed by the Participant in writing with the Committee during the Participant's lifetime. In the absence of any such designation,
any Account balance remaining unpaid at the Participant's death shall be paid to the Participant's estate or the Committee, in
its sole discretion, may pay such Account balance to the Participant's spouse or to any one or more dependents or relatives of
the Participant or to such other person as the Committee may designate.

 

ARTICLE 11. ADMINISTRATION

 

11.1 Administration
by Committee. The Plan shall be administered by the Committee. The Committee shall have the authority to delegate duties to
officers, directors or employees of the Company.

 

11.2 Authority of Committee.
The Committee shall have the full and exclusive discretionary authority to construe and interpret the Plan and options granted
under it; to establish, amend, and revoke rules and regulations for administration of the Plan (including, without limitation,
the determination and change of Offering Periods, Purchase Periods and payment procedures, the requirement that Shares be held
by a specified broker, and the establishment of the exchange ratio applicable to amounts withheld in a currency other than U.S.
dollars); to determine all questions of eligibility, disputed claims and policy that may arise in the administration of the Plan;
to make any changes to the Plan or its operations to reduce or eliminate any unfavorable accounting consequences to the extent
deemed appropriate by the Committee; to permit payroll withholding adjustments to adjust for delays or mistakes in processing of
withholding elections; to establish administrative procedures; and, generally, to exercise such powers and perform such acts as
the Committee deems necessary or expedient to promote the best interests of the Company, including, but not limited to, designating
from time to time which Subsidiaries of the Company shall be part of the Employer. The Committee's determinations as to the interpretation
and operation of this Plan shall be final and conclusive and each action of the Committee shall be binding on all persons.

 

In exercising the powers
described in the foregoing paragraph, the Committee may adopt special or different rules for the operation of the Plan including,
but not limited to, rules which allow employees of any foreign Subsidiary to participate in, and enjoy the tax benefits offered
by, the Plan; provided that such rules shall not result in any grantees of options having different rights and/or privileges under
the Plan in violation of Section 423 of the Code nor otherwise cause the Plan to fail to satisfy the requirements of Section 423
of the Code and the regulations thereunder.

 

11.3 Administrative
Modification. The Plan provisions relating to the administration of the Plan may be amended by the Committee from time to time
as may be desirable to satisfy any requirements of or under the federal securities and/or other applicable laws of the United States,
to obtain any exemption under such laws, or to reduce or eliminate any unfavorable accounting consequences.

 

ARTICLE 12. NUMBER OF SHARES

 

Five million (5,000,000)
Shares are reserved for sale and authorized for issuance pursuant to the Plan, subject to adjustment as set forth in Article 9.
If any option granted under the Plan shall for any reason terminate without having been exercised, the Shares not purchased under
such option shall again become available for the Plan. If on a given Purchase Date, the number of Shares with respect to which
options are to be exercised exceeds the number of Shares then available under the Plan, the Committee shall make a pro rata allocation
of the Shares remaining available for purchase in as uniform a manner as shall be practical and as it shall determine to be equitable.

 

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ARTICLE 13. MISCELLANEOUS

 

13.1 Restrictions on
Transfer. Options granted under the Plan to a Participant may not be exercised during the Participant's lifetime other than
by the Participant. Neither amounts credited to a Participant's Account nor any rights with respect to the exercise of an option
or to receive stock under the Plan may be assigned, transferred, pledged, or otherwise disposed of in any way by the Participant
other than by will or the laws of descent and distribution. Any such attempted assignment, transfer, pledge, or other disposition
shall be without effect, except that the Company may treat such act as an election to withdraw from the Plan in accordance with
Section 8.1.

 

13.2 Administrative
Assistance. If the Committee in its discretion so elects, it may retain a brokerage firm, bank, or other financial institution
to assist in the purchase of Shares, delivery of reports, or other administrative aspects of the Plan. If the Committee so elects,
each Participant shall (unless prohibited by applicable law) be deemed upon enrollment in the Plan to have authorized the establishment
of an account on his or her behalf at such institution. Shares purchased by a Participant under the Plan shall be held in the Account
in the Participant's name, or if the Participant so indicates in the enrollment form, in the Participant's name together with the
name of his or her spouse in joint tenancy with right of survivorship or spousal community property, or in certain forms of trust
approved by the Committee.

 

13.3 Treatment of Non-U.S.
Participants. Participants who are employed by non-U.S. Designated Subsidiaries, who are paid in foreign currency, and who
contribute foreign currency to the Plan through contributions or payroll deductions will have such contributions converted to U.S.
dollars. The exchange rate for such conversion will be determined as prescribed by the Committee. In no event will any procedure
implemented for dealing with exchange rate fluctuations that may occur during an Offering Period result in a purchase price below
the Purchase Date Price permitted under the Plan. Each Participant shall bear the risk of any currency exchange fluctuations (if
applicable) between the date on which any Participant contributions are converted to U.S. dollars and the following Purchase Date.

 

13.4 Withholding.
The Company or any member of the Employer shall have the power and the right to deduct or withhold, or require a Participant to
remit to the Company or any member of the Employer, an amount sufficient to satisfy Federal, state and local taxes, domestic or
foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan.

 

13.5 Equal Rights and
Privileges. Except as provided in Section 13.6, all Eligible Employees shall have equal rights and privileges with respect
to the Plan so that the Plan qualifies as an "employee stock purchase plan" within the meaning of Section 423 or any
successor provision of the Code and the related regulations. Notwithstanding the express terms of the Plan, any provision of the
Plan other than Section 13.6 which is inconsistent with Section 423 or any successor provision of the Code shall without further
act or amendment by the Company or the Committee be reformed to comply with the requirements of Section 423 of the Code. This Section
13.5 shall take precedence over all other provisions in the Plan except Section 13.6.

 

13.6 Eligible Employees
in Other Countries. Without amending the Plan, the Committee may grant options or establish other procedures to provide benefits
to Eligible Employees of Designated Subsidiaries with non-U.S. employees on such terms and conditions different from those specified
in this Plan as may, in the judgment of the Committee, be necessary or desirable to foster and promote achievement of the purposes
of the Plan and shall have the authority to adopt such modifications, procedures, subplans and the like as may be necessary or
desirable (a) to comply with provisions of the laws or regulations or conform to the requirements to operate the Plan in a qualified
or tax or accounting advantageous manner in other countries or jurisdictions in which the Company or any Designated Subsidiary
may operate or have employees, (b) to ensure the viability of the benefits from the Plan to Eligible Employees employed in such
countries or jurisdictions and (c) to meet the objectives of the Plan. Notwithstanding anything to the contrary herein, any such
actions taken by the Committee with respect to Eligible Employees of any Designated Subsidiary may be treated as a subplan outside
of an "employee stock purchase plan" under Section 423 of the United States Code and not subject to the requirements
of Section 423 set forth in the United States Code and this Plan.

 

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13.7 Applicable Law.
The Plan shall be governed by the substantive laws (excluding the conflict of laws rules) of the State of Texas.

 

13.8 Amendment and
Termination. The Board may amend, alter, or terminate the Plan at any time; provided, however, that (1) the Plan may not be
amended in a way which will cause rights issued under the Plan to fail to meet the requirements of Section 423 of the Code; and
(2) no amendment which would amend or modify the Plan in a manner requiring stockholder approval under Section 423 of the Code
or the requirements of any securities exchange on which the Shares are traded shall be effective unless such stockholder approval
is obtained. In addition, the Committee may amend the Plan as provided in Section 11.3, subject to the conditions set forth in
this Section 13.8.

 

If the Plan is terminated,
the Committee may elect to terminate all outstanding options either prior to their expiration or upon completion of the purchase
of Shares on the next Purchase Date, or may elect to permit options to expire in accordance with their terms (and participation
to continue through such expiration dates). If the options are terminated prior to expiration, all funds accumulated in Participants'
Accounts as of the date the options are terminated shall be returned to the Participants as soon as administratively feasible.

 

13.9 No Right of Employment.
Neither the grant nor the exercise of any rights to purchase Shares under this Plan nor anything in this Plan shall impose upon
the Company or a member of the Employer any obligation to employ or continue to employ any Employee. The right of the Company or
a member of the Employer to terminate any Employee shall not be diminished or affected because any rights to purchase Shares have
been granted to such Employee.

 

13.10 Right as Shareholder.
No Participant shall have any rights as shareholder unless and until Shares of Common Stock have been issued to him or her.

 

13.11 Governmental
Regulation. The Company's obligation to sell and deliver Shares of the Company's common stock under this Plan is subject to
the approval of any governmental authority required in connection with the authorization, issuance, or sale of such Shares.

 

13.12 Gender. When
used herein, masculine terms shall be deemed to include the feminine, except when the context indicates to the contrary.

 

13.13 Condition for
Participation. As a condition to participation in the Plan, Eligible Employees agree to be bound by the terms of the Plan (including,
without limitation, the notification and holding requirements of Section 7.5) and the determinations of the Committee.

 

 

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APPENDIX I

 

DEFINITIONS

 

"Account" means a recordkeeping account
maintained for a Participant to which Participant contributions and payroll deductions, if applicable, shall be credited.

 

"Board" means the Board of Directors
of the Company.

 

"Code" means the Internal Revenue
Code of 1986, as amended.

 

"Committee" means the Compensation
Committee or any other committee appointed by the Board.

 

"Common Stock" means the Common Stock
of the Company.

 

"Company" means International Isotopes
Inc., a Texas corporation.

 

"Compensation" means gross earnings,
including such amounts of gross earnings as are deferred by an Eligible Employees (a) under a qualified cash or deferred arrangement
described in Section 401(k) of the Code or (b) under a plan qualified under Section 125 of the Code. Compensation does not include
severance pay, equity compensation or gain from stock option exercises.

 

"Cut-Off Date" means the date established
by the Committee from time to time by which enrollment forms must be received prior to an Enrollment Date.

 

"Designated Subsidiary" means any
Subsidiary which has been designated by the Committee from time to time in its sole discretion as eligible to participate in the
Plan and which has adopted the Plan with the approval of the Committee in its sole and absolute discretion.

 

"Eligible Employee" means an Employee
eligible to participate in the Plan in accordance with Article 3.

 

"Effective Date" means the effective
date as determined by the Committee.

 

"Employee" means any individual who
is an employee of the Employer for tax purposes.

 

"Employer" means the Company or any
Designated Subsidiary by which an Employee is employed.

 

"Enrollment Date" means the first
Trading Day of an Offering Period.

 

"Exchange Act" means the Securities
Exchange Act of 1934, as amended.

 

"Fair Market Value" means, as of
any date, the closing trading price for the Common Stock on any given date during regular trading, or if not trading on that date,
such price on the last preceding date on which the Common Stock was traded, unless determined otherwise by the Committee using
such methods or procedures as it may establish.

 

"Grant Date" means a date on which
an Eligible Employee is granted an option under the Plan pursuant to Article 5.

 

"Grant Price" means the Fair Market
Value of a Share on the Grant Date for such option.

 

 

 

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"Offering Period" means each period,
if any, designated by the Committee (which period may be a calendar quarter or any other period designated by the Committee); provided,
that each period shall, in no event end later than twenty-seven (27) months from the Grant Date. The Offering Period may but need
not be the same as the Purchase Period, as determined by the Committee.

 

"Participant" means an Eligible Employee
who has enrolled in the Plan pursuant to Article 4.

 

"Plan" means this International Isotopes
Inc. Employee Stock Purchase Plan.

 

"Purchase Date" with respect to a
Purchase Period means the last Trading Day in such Purchase Period.

 

"Purchase Date Price" means the Fair
Market Value of a Share on the applicable Purchase Date.

 

"Purchase Period" means the period
beginning on the Effective Date and ending on the date designated by the Committee and each period, if any, thereafter designated
by the Committee (which period may be a calendar quarter or any other period designated by the Committee); provided, that each
period shall, in no event end later than twenty-seven (27) months from the Grant Date.

 

"Purchase Price" means the price
designated by the Committee, at which each Share may be purchased under any option, but in no event less than eighty-five percent
(85%) of the lesser of:

 

(1) The Grant Price and

 

(2) The Purchase Date Price.

 

"Shares" means shares of the Company's
Common Stock.

 

"Subsidiary" means a corporation,
domestic or foreign, of which not less than 50% of the combined voting power is held by the Company or a Subsidiary, whether or
not such corporation now exists or is hereafter organized or acquired by the Company or a Subsidiary.

 

"Trading Day" means a day on which
the OTC Bulletin Board, New York Stock Exchange, Nasdaq stock market or other alternative exchange or service on which the Common
Stock is traded, listed or quoted is open for trading.

 

 

 

  

 

 

 

 

 

 

-9-Document

Exhibit 10.1

CALIX, INC. 
AMENDED AND RESTATED EMPLOYEE STOCK PURCHASE PLAN 

Section 1. Establishment of the Plan. 

The Calix, Inc. Amended and Restated Employee Stock Purchase Plan (as may be amended from time to time, the “Plan”) provides Eligible Employees with an opportunity to purchase the Company’s common stock so that they may increase their proprietary interest in the success of the Company. The Plan, which provides for the purchase of stock through payroll withholding, is intended to qualify under Section 423 of the Code. The Plan, which was approved by our stockholders in May 2019, amends and restates the Amended and Restated Employee Stock Purchase Plan effective as of May 17, 2017 (the “Prior Plan”) in its entirety. 

Section 2. Definitions. 

(a)“Board of Directors” or “Board” means the Board of Directors of the Company. 

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

(c)“Company” means Calix, Inc., a Delaware corporation. 

(d)“Company Affiliate” means any company which is either the parent corporation of the Company (as determined in accordance with Section 424 of the Code) or a Subsidiary. 

(e)“Compensation” means the cash remuneration paid to a Participant during a Purchase Period that is reported on Form W-2 for federal income tax purposes (including salary deferrals to the Company’s 401(k) retirement savings plan and contributions to any Code Section 125 plan adopted by the Company). Compensation shall include incentive compensation, commissions, profit sharing payments and bonuses. Notwithstanding the foregoing, Compensation shall exclude overtime and shift differential payments and any special payments (e.g., moving or auto allowances, educational reimbursements, welfare benefits, amounts realized from the exercise, sale exchange or other disposition of any stock option and premiums for life and disability insurance). 

(f)“Date of Exercise” means the last trading day of each Purchase Period. 

(g)“Eligible Employee” means any Employee of a Participating Company (i) who is customarily employed for at least twenty (20) hours per week, (ii) who is customarily employed for more than five (5) months per calendar year, and (iii) who is an Employee at the commencement of a Purchase Period. 

In the event an Eligible Employee fails to remain in the continuous employ of a Participating Company customarily for at least twenty (20) hours per week during a Purchase Period, he or she will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to his or her account will be returned to him or her; provided that a Participant who goes on an unpaid leave of absence shall be permitted to remain in the Plan during such leave of absence. Notwithstanding the preceding sentence, if such Participant is not guaranteed reemployment by contract or statute and the leave of absence extends beyond ninety (90) days, such Participant shall be deemed to have terminated employment for purposes of the Plan on the ninety-first (91st) day of such leave of absence. Payroll deductions for a Participant who has been on an unpaid leave of absence will resume at the same rate as in effect prior to such leave upon return to work unless changed by such Participant. 

(h)“Employee” means any person who renders services to a Participating Company in the status of an employee within the meaning of Code Section 3401(c). “Employee” shall not include any Board member of a Participating Company who does not render services to the Participating Company in the status of an employee within the meaning of Code Section 3401(c). 
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(i)“Fair Market Value” shall mean, as of any given date, the value of a share of Stock determined as follows: 

(A)If the Stock is listed on any established stock exchange (such as the New York Stock Exchange, the NASDAQ Global Market and the NASDAQ Global Select Market) or national market system, its Fair Market Value shall be the closing sales price for a share of Stock as quoted on such exchange or system for such date or, if there is no closing sales price for a share of Stock on the date in question, the closing sales price for a share of Stock on the last preceding date for which such quotation exists, as reported in The Wall Street Journal or such other source as the Plan Administrator deems reliable; 

(B)If the Stock is not listed on an established stock exchange or national market system, but the Stock is regularly quoted by recognized securities dealer, its Fair Market Value shall be the mean of the high bid and low asked prices for such date or, if there are no high bid and low asked prices for a share of Stock on such date, the high bid and low asked prices for a share of Stock on the last preceding date for which such information exists, as reported in The Wall Street Journal or such other source as the Plan Administrator deems reliable; or 

(C)If the Stock is neither listed on an established stock exchange or a national market system nor regularly quoted by a recognized securities dealer, its Fair Market Value shall be established by the Plan Administrator in good faith. 

(j)“Participant” means an Eligible Employee who elects to participate in the Plan, as provided in Section 5 hereof. 

(k)“Participating Company” means the Company and such present or future Subsidiaries of the Company as the Board of Directors shall from time to time designate. 

(l)“Plan Account” means the account established for each Participant pursuant to Section 8(a). 

(m)“Plan Administrator” means the committee appointed by the Board to administer the Plan pursuant to Section 4. 

(n)“Purchase Period” shall mean the period commencing on May 15, 2020 and ending on August 14, 2020 and the six (6) month periods commencing on each August 15 and February 15 thereafter. The duration and timing of Purchase Periods may be changed by the Plan Administrator, in its sole discretion. In no event may a Purchase Period exceed twenty-seven (27) months in length. 

(o)“Purchase Price” means the price at which Participants may purchase Stock under Section 8 of the Plan, as determined pursuant to Section 6. 

(p)“Stock” means the common stock, par value $0.025, of the Company. 

(q)“Stock Administrator” means the Company’s Stock Administration Department or such other person(s) as may be retained by the Company to perform or otherwise be delegated some or all of the duties of the Stock Administrator under this Plan. 

(r)“Subsidiary” means a subsidiary corporation as defined in Section 424(f) of the Code. 

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Section 3. Shares Authorized. 

The maximum aggregate number of shares which may be issued under the Plan shall be 9,800,000 shares of Stock (subject to adjustment as provided in Section 12 hereof), which may be either authorized but unissued Stock or reacquired Stock, including shares of Stock purchased on the open market. 

Section 4. Administration. 

(a)Except as otherwise provided herein, the Plan shall be administered by the Board or by a committee (the “Plan Administrator”) appointed by the Board of Directors which shall consist of not less than two members of the Board. References in this Plan to the “Plan Administrator” shall mean the Board if no Plan Administrator has been appointed. The interpretation and construction by the Plan Administrator of any provision of the Plan or of any right to purchase stock qualified hereunder shall be conclusive and binding on all persons. 

(b)No member of the Board or the Plan Administrator shall be liable for any action or determination made in good faith with respect to the Plan or the right to purchase Stock hereunder. The Plan Administrator shall be indemnified by the Company against the reasonable expenses, including attorney’s fees actually and necessarily incurred in connection with the defense of any action, suit or proceeding, or in connection with any appeal therein, to which it may be a party by reason of any action taken or failure to act under or in connection with the Plan or any stock purchased thereunder, and against all amounts paid by it in settlement thereof (provided such settlement is approved by independent legal counsel selected by the Company) or paid by it in satisfaction of a judgment in any such action, suit or proceeding, except in relation to matters as to which it shall be adjudged in such action, suit or proceeding that the Plan Administrator is liable for negligence or misconduct in the performance of its duties; provided that within sixty (60) days after institution of any such action, suit or proceeding, the Plan Administrator shall in writing offer the Company the opportunity, at its own expense, to handle and defend the same. 

(c)All costs and expenses incurred in administering the Plan shall be paid by the Company. The Board or the Plan Administrator may request advice for assistance or employ such other persons as are necessary for proper administration of the Plan. 

(d)At the discretion of the Plan Administrator, the Stock Administrator or such persons providing advice or assistance pursuant to Section 4(c), any elections, submission or filings made under the Plan by Eligible Employees and/or any statements or notices provided under the Plan to Eligible Employees in each case may be made electronically or through such “paperless” means as the Plan Administrator, the Stock Administrator or such persons may determine appropriate. 

Section 5. Eligibility and Participation. 

(a)Any person who qualifies or will qualify as an Eligible Employee on the first day of a Purchase Period may elect to participate in the Plan for such Purchase Period. An Eligible Employee may elect to participate by submitting the prescribed enrollment form. The enrollment form shall be filed with the Stock Administrator no later than the filing deadline imposed and communicated to Eligible Employees with respect to the Purchase Period for which such enrollment form is intended to be effective by the Stock Administrator, and if none is so imposed and/or communicated, then no later than five (5) days before the Purchase Period for which such enrollment form is intended to be effective. The Eligible Employee shall designate on the enrollment form the percentage of his or her Compensation which he or she elects to have withheld for the purchase of Stock, which may be any whole percentage from 1 to 15% of the Participant’s compensation. 

(b)By enrolling in the Plan, a Participant shall be deemed to have been granted an option on the first day of each Purchase Period for which he or she is enrolled to purchase the maximum number of whole shares of Stock which can be purchased with the amount of the Participant’s Compensation which is withheld during the 
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Purchase Period for which the Participation is enrolled. However, with respect to any Purchase Period, no Participant shall be eligible to purchase more than two thousand (2,000) shares of Stock provided that such amount shall not result in the limitations set forth in Section 13 being exceeded. Notwithstanding the foregoing, the Plan Administrator, or a committee appointed by the Plan Administrator, which committee may be comprised solely of employees of the Company, shall have the right to amend the limit set forth in this Section 5(b); provided, however, that in no event shall the limit exceed two thousand (2,000) shares of Stock per Purchase Period or the limitations set forth in Section 13. 

(c)Once enrolled, a Participant will continue to participate in the Plan for each succeeding Purchase Period until he or she terminates participation or ceases to qualify as an Eligible Employee. A Participant who withdraws from the Plan in accordance with Section 9 may again become a Participant in a subsequent Purchase Period, if he or she then is an Eligible Employee, by following the procedure described in Section 5(a). 

Section 6. Purchase Price. 

The Purchase Price for each share of Stock shall be the lesser of (a) eighty-five percent (85%) of the Fair Market Value of such share on the first trading day of an applicable Purchase Period or (b) eighty-five percent (85%) of the Fair Market Value of such share on the Date of Exercise for an applicable Purchase Period. 

Section 7. Employee Contributions. 

A Participant may purchase shares of Stock solely by means of payroll deductions. Payroll deductions, as designated by the Participant pursuant to Section 5(a), shall commence with the first paycheck issued during the Purchase Period and shall be deducted from each subsequent paycheck throughout the Purchase Period; provided, however, that, with respect to a Participant, the Company shall be entitled to discontinue payroll deductions for such Participant during a Purchase Period to the extent that the Company determines that the payroll deductions for such Participant during such Purchase Period will cause the Participant to exceed the limitations set forth in Sections 5 or 13; provided, further, that the Company will recommence payroll deductions for such Participant on the first day of the next Purchase Period to the extent the limitation set forth in Section 13 has not been exceeded. If a Participant desires to decrease the rate of payroll withholding during a Purchase Period, he or she may do so one time during a Purchase Period by submitting the prescribed percentage change form with the Stock Administrator. Such decrease will be effective no later than the first day of the second payroll period which begins following the receipt of the new percentage change form. If a Participant desires to increase or decrease the rate of payroll withholding, he or she may do so effective for the next Purchase Period by submitting a new percentage change form with the Stock Administrator on or before the date imposed and communicated to Eligible Employees by the Stock Administrator, and if none is so imposed and/or communicated, then no later than five (5) days before the Purchase Period for which such change is to be effective. 

Section 8. Plan Accounts; Purchase of Shares. 

(a)The Company will maintain a Plan Account on its books in the name of each Participant. At the close of each pay period, the amount deducted from the Participant’s Compensation will be credited to the Participant’s Plan Account. 

(b)As of each Date of Exercise, the amount then in the Participant’s Plan Account will be divided by the Purchase Price, and the number of whole shares which results (subject to the limitations described in Sections 5(b), 8(c) and 13) shall be purchased from the Company with the funds in the Participant’s Plan Account. The number of shares of Stock so purchased shall be delivered to a brokerage account designated by the Plan Administrator and kept in such account pursuant to the enrollment form (which shall be uniform) between each 
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Participant and the Company and subject to the conditions described therein (which may include, without limitation, restrictions on transferability of the shares of Stock so purchased). 

(c)In the event that the aggregate number of shares which all Participants elect to purchase during a Purchase Period shall exceed the number of shares remaining available for issuance under the Plan, then the number of shares to which each Participant shall become entitled shall be determined by multiplying the number of shares available for issuance by a fraction the numerator of which is the sum of the number of shares the Participant has elected to purchase pursuant to Section 5, and the denominator of which is the sum of the number of shares which all employees have elected to purchase pursuant to Section 5. Any cash amount remaining in the Participant’s Plan Account under these circumstances shall be refunded to the Participant.

(d)Any amount remaining in the Participant’s Plan Account caused by a surplus due to fractional shares after deducting the amount of the Purchase Price for the number of whole shares issued to the Participant shall be carried over in the Participant’s Plan Account for the succeeding Purchase Period, without interest. Any amount remaining in the Participant’s Plan Account caused by anything other than a surplus due to fractional shares shall be refunded to the Participant in cash, without interest. 

(e)Unless otherwise determined by the Plan Administrator, as soon as practicable following the end of each Purchase Period, the Company shall deliver to each Participant a Plan Account statement setting forth the amount of payroll deductions, the Purchase Price, the number of shares purchased and the remaining cash balance, if any. 
Section 9. Withdrawal from the Plan. 

A Participant may elect to withdraw from participation under the Plan at any time up to seven (7) days prior to the last day of a Purchase Period by submitting the prescribed withdrawal form with the Stock Administrator. As soon as practicable after a withdrawal, payroll deductions shall cease and all amounts credited to the Participant’s Plan Account will be refunded in cash, without interest. A Participant who has withdrawn from the Plan shall not be a Participant in future Purchase Periods, unless he or she again enrolls in accordance with the provisions of Section 5. 

Section 10. Effect of Termination of Employment or Death. 

(a)Termination of employment as an Eligible Employee for any reason, including death, shall be treated as an automatic withdrawal from the Plan under Section 9. A transfer from one Participating Company to another shall not be treated as a termination of employment. 

(b)A Participant may file a written designation of a beneficiary who is to receive any shares and cash, if any, from the Participant’s Account under the Plan in the event of such Participant’s death subsequent to the purchase of shares but prior to delivery to him or her of such shares and cash. In addition, a Participant may file a written designation of a beneficiary who is to receive any cash from the Participant’s Account under the Plan in the event of such Participant’s death prior to the last day of a Purchase Period. 

(c)Such designation of beneficiary may be changed by the Participant at any time by submitting the prescribed designation of beneficiary change form with the Stock Administrator. In the event of the death of a Participant in the absence of a valid designation of a beneficiary who is living at the time of such Participant’s death, the Company shall deliver such shares and/or cash to the executor or administrator of the estate of the Participant; or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the Participant; or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 

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Section 11. Rights Not Transferable. 

The rights or interests of any Participant in the Plan, or in any Stock or moneys to which he or she may be entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or by any other manner other than as permitted by will or the laws of descent and distribution, and during the Participant’s lifetime, purchase rights in the Plan shall be exercisable only by the Participant. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than as permitted by will or the laws of descent and distribution, such act shall be treated as an automatic withdrawal under Section 9. 
 

Section 12. Recapitalization, Etc. 

(a)The aggregate number of shares of Stock offered under the Plan, the number and price of shares which any Participant has elected to purchase pursuant to Section 5 and the maximum number of shares which a Participant may elect to purchase under the Plan in any Purchase Period shall be proportionately adjusted for any increase or decrease in the number of issued shares of Stock resulting from a subdivision or consolidation of shares or any other capital adjustment, the payment of a stock dividend, or other increase or decrease in such shares affected without receipt of consideration by the Company. 

(b)In the event of a dissolution or liquidation of the Company, this Plan shall terminate, and all amounts which each Participant has paid towards the Purchase Price of Stock hereunder shall be refunded, without interest. 

(c)In the event of a sale of all or substantially all of the assets of the Company, an acquisition of the Company or the merger of the Company with or into another corporation, each outstanding Purchase Period shall be assumed or an equivalent Purchase Period substituted by the successor corporation or acquiror or a Parent or Subsidiary of the successor corporation or acquiror. In the event that the successor corporation or acquirer refuses to assume or substitute for the Purchase Period, the Purchase Period shall be shortened by setting a new Date of Exercise (the “New Exercise Date”). The New Exercise Date shall be before the date of the applicable transaction. The Company shall notify each Participant in writing at least five (5) days prior to the New Exercise Date, that the Date of Exercise for the Purchase Period has been changed to the New Exercise Date and that the purchase shall automatically occur on the New Exercise Date, unless prior to such date the Participant has withdrawn from the Purchase Period pursuant to Section 9. 

(d)The Plan shall in no event be construed to restrict in any way the Company’s right to undertake a dissolution, liquidation, merger, consolidation, reorganization or other corporate transaction. 

Section 13. Limitation on Stock Ownership. 

Notwithstanding any provision herein to the contrary, no Participant shall be permitted to elect to participate in the Plan (i) if such Participant, immediately after his or her election to participate, would own stock possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Company or any Company Affiliate, or (ii) if under the terms of the Plan the rights of the Employee to purchase Stock under this Plan and all other qualified employee stock purchase plans of the Company or its Company Affiliates would accrue at a rate which exceeds twenty-five thousand dollars ($25,000) of Fair Market Value of such Stock (determined at the time such right is granted) for each calendar year for which such right is outstanding at any time. For purposes of this Section, ownership of stock shall be determined by the attribution rules of Section 424(d) of the Code, and Participants shall be considered to own any stock which they have a right to purchase under this or any other stock plan. 

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Section 14. No Rights as an Employee. 

Nothing in the Plan shall be construed to give any person the right to remain in the employ of a Participating Company. Each Participating Company reserves the right to terminate the employment of any person at any time and for any reason. 

Section 15. Rights as a Stockholder. 

A Participant shall have no rights as a stockholder with respect to any shares he or she may have a right to purchase under the Plan until the date of issuance to the brokerage account designated by the Plan Administrator the shares of Stock issued pursuant to the Plan. 

Section 16. Use of Funds. 

All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll deductions in separate accounts. 

Section 17. Amendment or Termination of the Plan. 

Except as otherwise provided herein, the Board of Directors shall have the right to amend, modify or terminate the Plan at any time without notice. An amendment of the Plan shall be subject to stockholder approval only to the extent required by applicable laws, regulations or rules. The Plan shall terminate upon the earlier of (i) such date as is determined by the Company in its sole discretion or (ii) the date on which all shares available for issuance under the Plan shall have been sold pursuant to purchase rights exercised under the Plan. 
 

Section 18. Governing Law. 

The Plan shall be governed by, and construed and interpreted in accordance with, the laws of the State of Delaware. 

Section 19. Stockholder Approval. 

No purchase rights granted under the Plan shall be exercised, and no shares of Stock shall be issued hereunder, until such time as (i) the Plan shall have been approved by the stockholders of the Company; and (ii) the Company shall have complied with all applicable requirements of the Securities Act of 1933, as amended (including the registration of the shares of Stock issuable under the Plan on a Form S-8 registration statement filed with the Securities and Exchange Commission), all applicable listing requirements of any securities exchange on which the Stock is listed for trading and all other applicable requirements established by law or regulation. Such stockholder approval shall be prior to the earlier to occur of: (a) the first Date of Exercise of the Plan and (b) the twelve (12) month anniversary of the adoption of the Plan, provided, however, that such approval may not occur prior to twelve (12) months before the adoption of the Plan. In the event the Plan shall not have been approved by the stockholders of the Company prior to the first Date of Exercise of the Plan, the Plan shall terminate and all purchase rights granted under the Plan shall be canceled and become null and void. 

Section 20. Equal Rights and Privileges. 

All Eligible Employees of the Company (or of any Subsidiary) will have equal rights and privileges under this Plan so that this Plan qualifies as an “employee stock purchase plan” within the meaning of Section 423 of the Code or applicable Treasury regulations thereunder. Any provision of this Plan that is inconsistent with Section 423 and the Treasury regulations and other guidance promulgated thereunder will, without further act or amendment by 
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the Company, the Board or the Plan Administrator, be reformed to comply with the equal rights and privileges requirement of Section 423 or such Treasury regulations or guidance. 

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