Document:

exv4w4

Exhibit 4.4

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST
COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OR TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO. HAS AN
INTEREST HEREIN.

			
	 	 	 
	No. R-1
	 	CUSIP No. 115637 AK6

BROWN-FORMAN CORPORATION

2.5% NOTE DUE 2016

     BROWN-FORMAN CORPORATION, a corporation duly organized and existing under the laws of the
State of Delaware (herein called the “Company”, which term includes any successor corporation under
the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
Cede & Co., or registered assigns, the principal sum of $250,000,000 (TWO HUNDRED AND FIFTY MILLION
DOLLARS) on January 15, 2016, and to pay interest on said principal sum semi-annually on January 15
and July 15 of each year, commencing, July 15, 2011, at the rate of 2.5% per annum from December
16, 2010, or from the most recent date in respect of which interest has been paid or duly provided
for, until payment of the principal sum has been made or duly provided for. The interest so
payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in
the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on the Record Date for such Interest Payment
Date, which shall be the fifteenth day (whether or not a New York Business Day) next preceding such
Interest Payment Date. Any such interest that is payable but is not so punctually paid or duly
provided for shall forthwith cease to be payable to the registered Holder on such Record Date and
may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not earlier
than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Notes may be
listed and upon such notice as may be required by such exchange, if such manner of payment shall be
deemed practical by the Trustee, all as more fully provided in the Indenture.

     Payment of the principal of and interest on this Note will be made at the Place of Payment in
such coin or currency of the United States as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payments of interest may be made at the option of
the Company by checks mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register.

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     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth at this place. Unless the certificate
of authentication hereon has been executed by or on behalf of the Trustee by manual signature, this
Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

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     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by manual or
facsimile signature under its corporate seal or a facsimile thereof.

	 	 	 	 	 
	Dated: December 16, 2010 	BROWN-FORMAN CORPORATION

 	 
	 	By:  	/s/ Donald C. Berg
 	 
	 	 	Name:  	Donald C. Berg 	 
	 	 	Title:  	Executive Vice President, Chief
Financial Officer 	 
	 
	 	 	 
	 	By:  	                 /s/ Gerard J. Anderson
 	 
	 	 	Name:  	Gerard J. Anderson 	 
	 	 	Title:  	Senior Vice President Director of
Corporate Finance and Treasurer 	 
	 

Attest:

	 	 	 	 	 
	 	 	 
	By:  	/s/ Nelea A. Absher
 	 	 
	 	Name:  	Nelea A. Absher 	 	 
	 	Title:  	Vice President, Associate General Counsel
and Assistant Secretary 	 	 

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein referred to in the within-mentioned
Indenture.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	/s/ Charles R. Lush, Jr.
 	 
	 	 	Authorized Officer 	 
	 	 	 	 

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REVERSE OF NOTE

BROWN-FORMAN CORPORATION

2.5% NOTE DUE 2016

     This Note is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 2, 2007, as supplemented by the Supplemental
Indenture dated as of December 13, 2010 (as so supplemented, the “Indenture”), between the Company
and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes
any successor trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights thereunder of the
Company, the Trustee, and the Holders of the Securities, the terms upon which the Securities are,
and are to be, authenticated and delivered, and the definition of capitalized terms used herein and
not otherwise defined herein. The Securities may be issued in one or more series, which different
series may be issued in various aggregate principal amounts, may be denominated in different
currencies, may mature at different times, may bear interest (if any) at different rates (which
rates may be fixed or variable), may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase, or analogous funds (if any), may be subject to different
covenants and Events of Default, and may otherwise vary as provided in the Indenture. This Note is
one of a series of Securities of the Company designated as set forth on the face hereof (herein
called the “Notes”), limited in aggregate principal amount to $250,000,000.

     The Notes may be redeemed at the Company’s option, upon notice as set forth in the Indenture,
in whole at any time or in part from time to time at a redemption price equal to (A) the greater of
(i) 100% of the principal amount of the Notes to be redeemed on the redemption date or (ii) the sum
of the present values of the remaining scheduled payments of principal and interest on the Notes
being redeemed on that redemption date (not including any portion of any payment of interest
accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming
a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 15 basis points, as
determined by the Reference Treasury Dealer, plus (B) in each case accrued and unpaid interest on
the Notes to the redemption date; provided that if the date fixed for redemption is a date on or
after the Record Date and on or before the next following Interest Payment Date, then the interest
payable on such date shall be paid to the Holder of record on the relevant Record Date.

     “Comparable Treasury Issue” means the U.S. Treasury security selected by the Independent
Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (1) the average of
three Reference Treasury Dealer Quotations for such redemption date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.

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     “Independent Investment Banker” means one of the Reference Treasury Dealers selected by the
Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee at 5:00 p.m., New York City time, on the third Business Day
preceding such redemption date.

     “Reference Treasury Dealers” means each of (a) Citigroup Global Markets Inc., (b) Merrill
Lynch, Pierce, Fenner & Smith Incorporated and (c) two additional primary dealers of U.S.
government securities in New York City that the Company appoints to act as a Reference Treasury
Dealer from time to time, in each case and their respective successors; provided, however, that if
any of the foregoing ceases to be a primary dealer of U.S. government securities in New York City,
the Company shall substitute another primary dealer of U.S. government securities.

     “Treasury Rate” means, with respect to any redemption date: (a) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15 (519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the remaining life, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be determined and the
Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or (b) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per annum
equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date. The Treasury Rate will be
calculated on the third Business Day preceding the date fixed as a redemption date.

     In the event of redemption of this Note in part only, a new Note or Notes for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon cancellation hereof.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the Securities at the time
Outstanding of each series to be affected by such amendment or modification. The Indenture also
contains provisions permitting the Holders of a majority in aggregate principal amount of the
Securities of each series at the time Outstanding, on behalf of

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the Holders of Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

     The Indenture contains provisions setting forth certain conditions to the institution of
proceedings by Holders of Securities with respect to the Indenture or for any remedy under the
Indenture.

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
amount hereof may be declared due and payable or may be otherwise accelerated in the manner and
with the effect provided in the Indenture.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registerable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any Place of Payment duly
endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed, by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
any integral multiple of $1,000 in addition thereto. As provided in the Indenture and subject to
certain limitations therein set forth, this Note is exchangeable for a like aggregate principal
amount of Notes of different authorized denominations as requested by the Holder surrendering the
same.

     No service charge shall be made for any such registration or transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to the presentment of this Note for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Note is overdue, and neither the Company, the Trustee, nor any
such agent shall be affected by notice to the contrary.

     All terms used in this Note which are defined in the Indenture and are not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

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FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
attorney to transfer such Note on the books of the Company, with full power of substitution in the
premises.

Dated:                                         

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular without alteration or enlargement or any change whatsoever.

A-8Exhibit 10.2

Exhibit 10.2

AutoZone, Inc.

2006 Stock Option Plan

STOCK OPTION GRANT NOTICE AND

STOCK OPTION AGREEMENT

AutoZone, Inc., a Nevada corporation (the “Company”), pursuant to its 2006 Stock
Option Plan (the “Plan”), hereby grants to the holder listed below (“Participant”)
an option (the “Option”) to purchase that number of shares of the Company’s common stock,
par value $.01 (“Stock”) set forth below. This Option is subject to all of the terms and
conditions set forth herein, in the Stock Option Agreement attached hereto as Exhibit A
(the “Stock Option Agreement”) and the Plan, which are incorporated herein by reference.
All capitalized terms used in this Grant Agreement, but not defined, shall have the meanings
provided in the Plan.

	 	 	 
	Participant:
	 	[____]
	 
	 	 
	Grant Date:
	 	[____]
	 
	 	 
	Exercise Price per Share:
	 	$[____]
	 
	 	 
	Total Number of Shares 

Subject to the Option:
	 	[____]
	 
	 	 
	Expiration Date:
	 	[____]

	 	 	 
	Type of Option:

	 	o Incentive Stock Option                     o Non-Qualified Stock Option
	 
	 	 
	Vesting Schedule:

	 	The Option granted under this Agreement shall vest and become exercisable in four (4) cumulative
installments as follows:

[(i) The first installment shall consist of one-fourth of the shares
covered by the Option and shall become exercisable on the first anniversary
of the Grant Date.

(ii) The second installment shall consist of one-fourth of the shares
covered by the Option and shall become exercisable on the second anniversary
of the Grant Date.

(iii) The third installment shall consist of one-fourth of the shares
covered by the Option and shall become exercisable on the third anniversary
of the Grant Date.

(iv) The fourth installment shall consist of one-fourth of the shares
covered by the Option and shall become exercisable on the fourth anniversary
of the Grant Date.]

By his or her signature, Participant agrees to be bound by the terms and conditions of the
Plan, the Stock Option Agreement and this Grant Notice. Participant has reviewed the Stock Option
Agreement, the Plan and this Grant Notice in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Grant Notice and fully understands all provisions of this
Grant Notice, the Stock Option Agreement and the Plan. Participant hereby agrees to accept as
binding, conclusive and final all discussions or interpretations of the Committee upon any
questions arising under the Plan or relating to the Option.

September 2010

 

 

 

	 	 	 	 	 	 	 	 	 
	AUTOZONE, INC.	 	PARTICIPANT	 	 
	 
	 	 	 	 	 	 	 	 
	By: 

	 
	 	By: 	 
	 	 
	 

	Print Name: 	 	 	 	Print Name: 	 	 	 
	 

	Title: 	 	 	 	Title:	 	 	 

 

2

 

STOCK OPTION AGREEMENT

Pursuant to the Stock Option Grant Notice (the “Grant Notice”) to which this Stock
Option Agreement (this “Agreement”) is attached, AutoZone, Inc., a Nevada corporation (the
“Company”), has granted to Participant an option under the Company’s 2006 Stock Option Plan
(the “Plan”) to purchase the number of shares of Stock indicated in the Grant Notice.

ARTICLE I.

GENERAL

1.1 Defined Terms. Wherever the following terms are used in this Agreement they shall
have the meanings specified below, unless the context clearly indicates otherwise. Capitalized
terms not specifically defined herein shall have the meanings specified in the Plan and the Grant
Notice.

(a) “Administrator” shall mean the Board or the Committee responsible for conducting
the general administration of the Plan in accordance with Article 8 of the Plan.

(b) “Cause” shall mean the willful engagement by Participant in conduct which is
demonstrably or materially injurious to the Company, monetarily or otherwise. For this purpose, no
act or failure to act by the Participant shall be considered “willful” unless done, or omitted to
be done, by the Participant not in good faith and without reasonable belief that his action or
omission was in the best interest of the Company.

(c) “Disability” shall mean a determination by the Company that Participant is
“totally disabled,” within its meaning in the Company’s long term disability plan as in effect from
time to time.

(d) “Retirement” shall mean Participant’s retirement at normal retirement age, as
determined under the AutoZone, Inc. Associate’s Pension Plan, as it may be amended from time to
time (or, if such plan ceases to exist or be applicable, as determined in the sole discretion of
the Administrator).

(e) “Termination of Employment” shall mean the time when the employee-employer
relationship between Participant and the Company or any Subsidiary is terminated for any reason,
with or without cause, including, but not by way of limitation, a termination by resignation,
discharge, death, disability or retirement; but excluding terminations where there is a
simultaneous reemployment or continuing employment of Participant by the Company or any Subsidiary.
The Administrator, in its absolute discretion, shall determine the effect of all matters and
questions relating to Termination of Employment, including, but not by way of limitation, the
question of whether a particular leave of absence constitutes a Termination of Employment;
provided, however, that, if this Option is an Incentive Stock Option, unless otherwise determined
by the Administrator in its sole discretion, a leave of absence, change in status from an employee
to an independent contractor or other change in the employee-employer relationship shall constitute
a Termination of Employment if, and to the extent that, such leave of absence, change in status or
other change interrupts employment for purposes of Section 422(a)(2) of the Code and the then
applicable regulations and revenue rulings under said Section.

1.2 Incorporation of Terms of Plan. The Option is subject to the terms and conditions
of the Plan which are incorporated herein by reference. In the event of any inconsistency between
the Plan and this Agreement, the terms of the Plan shall control.

September 2010

 

 

 

ARTICLE II.

GRANT OF OPTION

2.1 Grant of Option. In consideration of Participant’s past and/or continued
employment with the Company or a Subsidiary and for other good and valuable consideration,
effective as of the Grant Date set forth in the Grant Notice (the “Grant Date”), the
Company irrevocably grants to Participant the Option to purchase any part or all of an aggregate of
the number of shares of Stock set forth in the Grant Notice, upon the terms and conditions set
forth in the Plan, the Grant Notice and this Agreement. The Option shall be a Non-Qualified Stock
Option or an Incentive Stock Option, as designated in the Grant Notice and, in the case of an
Incentive Stock Option, as permitted by law.

2.2 Exercise Price. The exercise price of the shares of Stock subject to the Option
shall be as set forth in the Grant Notice, provided, however, that the price per share of the
shares of Stock subject to the Option shall not be less than 100% of the Fair Market Value of a
share of Stock on the Grant Date. Notwithstanding the foregoing, if this Option is designated as
an Incentive Stock Option and Participant owns (within the meaning of Section 424(d) of the Code)
more than 10% of the total combined voting power of all classes of stock of the Company or any
“subsidiary corporation” of the Company or any “parent corporation” of the Company (each within the
meaning of Section 424 of the Code), the price per share of the shares of Stock subject to the
Option shall not be less than 110% of the Fair Market Value of a share of Stock on the Grant Date.

2.3 Consideration to the Company. In consideration of the grant of the Option by the
Company, Participant agrees to render faithful and efficient services to the Company and its
Subsidiaries, as applicable. Nothing in the Plan, the Grant Notice or this Agreement shall confer
upon Participant any right to continue in the employ or service of the Company or any Subsidiary or
shall interfere with or restrict in any way the rights of the Company and its Subsidiaries, which
rights are hereby expressly reserved, to discharge or terminate the services of Participant at any
time for any reason whatsoever, with or without Cause, except to the extent expressly provided
otherwise in a written agreement between the Company or a Subsidiary and Participant.

ARTICLE III.

PERIOD OF EXERCISABILITY

3.1 Commencement of Exercisability.

(a) Subject to any limitations contained in this Stock Option Agreement, the Option shall
become vested and be exercisable in such amounts and at such times as are set forth in the Grant
Notice. Notwithstanding the exercise dates set forth in the Grant Notice, the Option shall become
immediately exercisable on the date of Participant’s death.

(b) No portion of the Option which has not become vested and exercisable as of Participant’s
Termination of Employment shall thereafter become vested and exercisable.

3.2 Duration of Exercisability. The installments provided for in the vesting schedule
set forth in the Grant Notice are cumulative. Each such installment which becomes vested and
exercisable pursuant to the vesting schedule set forth in the Grant Notice shall remain vested and
exercisable until it becomes unexercisable pursuant to Section 3.3 below; provided, however, that
no Option which has not vested and become exercisable as of the date of a Participant’s Termination
of Employment shall thereafter vest and become exercisable.

 

2

 

3.3 Expiration of Option. The Option shall be forfeited and cancelled and may not be
exercised to any extent by anyone after the first to occur of the following events:

(a) If this Option is designated as a Non-Qualified Stock Option, the expiration of ten (10)
years and one (1) day from the Grant Date;

(b) If this Option is designated as an Incentive Stock Option, the tenth anniversary of the
Grant Date;

(c) If this Option is designated as an Incentive Stock Option and, at the time the Option was
granted, Participant owned (within the meaning of Section 424(d) of the Code) more than 10% of the
total combined voting power of all classes of stock of the Company or any “subsidiary corporation”
of the Company or any “parent corporation” of the Company (each within the meaning of Section 424
of the Code), the fifth anniversary of the Grant Date;

(d) [Except to the extent that an employment agreement provides otherwise,] The expiration of
ninety days from the date of Participant’s Termination of Employment unless such Termination of
Employment occurs by reason of (i) Participant’s death, (ii) Participant’s Retirement, (iii)
Participant’s Disability, or (iv) termination by the Company for Cause;

(e) The expiration of one year from the date of Participant’s Termination of Employment by
reason of Participant’s death or Disability;

(f) The commencement of business on the date of Participant’s Termination of Employment by the
Company for Cause; and

(g) The expiration of the term stated in the Grant Notice following Participant’s Termination
of Employment due to Retirement.

3.4 Special Tax Consequences. Participant acknowledges that, to the extent that the
aggregate Fair Market Value (determined as of the time the Option is granted) of all shares of
Stock with respect to which Incentive Stock Options, including the Option, are exercisable for the
first time by Participant in any calendar year exceeds $100,000, the Option and such other options
shall instead constitute Non-Qualified Stock Options to the extent necessary to comply with the
limitations imposed by Section 422(d) of the Code. Participant further acknowledges that the rule
set forth in the preceding sentence shall be applied by taking the Option and other Incentive Stock
Options into account in the order in which they were granted, as determined under Section 422(d) of
the Code and the Treasury Regulations thereunder.

ARTICLE IV.

EXERCISE OF OPTION

4.1 Person Eligible to Exercise. Except as provided in Section 5.2(b) below, during
the lifetime of Participant, only Participant may exercise the Option or any portion thereof.
After the death of Participant, any exercisable portion of the Option may, prior to the time when
the Option becomes unexercisable under Section 3.3 above, be exercised by Participant’s personal
representative or by any person empowered to do so under the deceased Participant’s will or under
then-applicable laws of descent and distribution.

 

3

 

4.2 Partial Exercise. Any exercisable portion of the Option or the entire Option, if
then wholly exercisable, may be exercised in whole or in part at any time prior to the time when
the Option or portion thereof becomes unexercisable under Section 3.3 above.

4.3 Manner of Exercise. The Option, or any exercisable portion thereof, may be
exercised solely by delivery to the Secretary of the Company (or any third party administrator or
other person or entity designated by the Administrator) of each of the following prior to the time
when the Option or such portion thereof becomes unexercisable under Section 3.3 above:

(a) An exercise notice in a form specified by the Administrator, stating that the Option or
portion thereof is thereby exercised, such notice complying with all applicable rules established
by the Administrator;

(b) The receipt by the Company of full payment for the shares of Stock with respect to which
the Option or portion thereof is exercised, including payment of any applicable withholding taxes,
which may be in one or more of the forms of consideration permitted under Section 4.4 below;

(c) Any other written representations as may be required in the Administrator’s sole
discretion to evidence compliance with any applicable law, rule or regulation; and

(d) If the Option or portion thereof is exercised pursuant to Section 4.1 above by any person
or persons other than Participant, appropriate proof of the right of such person or persons to
exercise the Option, as determined in the sole discretion of the Administrator.

Notwithstanding any of the foregoing, the Company shall have the right to specify all
conditions of the manner of exercise, which conditions may vary and which may be subject to change
from time to time in the sole discretion of the Administrator.

4.4 Method of Payment. The Administrator shall determine the method(s) by which the
exercise price of the Option may be paid including, without limitation: (a) cash, (b) shares of
Stock having a Fair Market Value on the date of delivery equal to the aggregate exercise price of
the Option or exercised portion thereof, including shares of Stock that would otherwise be issuable
or transferable upon exercise of the Option, and/or (c) other property acceptable to the
Administrator (including through the delivery of a notice that the Participant has placed a market
sell order with a broker with respect to shares of Stock then issuable upon exercise of the Option,
and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale
to the Company in satisfaction of the Option exercise price; provided that payment of such proceeds
is then made to the Company, at such time as may be required by the Company, but not later than the
settlement of such sale), and the methods by which shares of Stock shall be delivered or deemed to
be delivered to Participants.

 

4

 

4.5 Conditions to Issuance of Shares of Stock. The shares of Stock deliverable upon
the exercise of the Option, or any portion thereof, may be either previously authorized but
unissued shares of Stock or issued shares of Stock which have then been reacquired by the Company.
The Company shall not be required to issue or deliver any shares of Stock purchased upon the
exercise of the Option or portion thereof prior to fulfillment of all of the following conditions:

(a) The admission of such shares of Stock to listing on all stock exchanges on which such
Stock is then listed;

(b) The completion of any registration or other qualification of such shares of Stock under
any state or federal law or under rulings or regulations of the Securities and Exchange Commission
or of any other governmental regulatory body, which the Administrator shall, in its sole
discretion, deem necessary or advisable;

(c) The obtaining of any approval or other clearance from any state or federal governmental
agency which the Administrator shall, in its sole discretion, determine to be necessary or
advisable;

(d) The receipt by the Company of full payment for such shares of Stock, including payment of
any applicable withholding tax, which may be in one or more of the forms of consideration permitted
under Section 4.4 above; and

(e) The lapse of such reasonable period of time following the exercise of the Option as the
Administrator may from time to time establish for reasons of administrative convenience.

4.6 Rights as Stockholder. The holder of the Option shall not be, nor have any of the
rights or privileges of, a stockholder of the Company in respect of any shares of Stock purchasable
upon the exercise of any part of the Option unless and until such shares of Stock shall have been
issued by the Company to such holder (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company). No adjustment will be made for a
dividend or other right for which the record date is prior to the date the shares of Stock are
issued, except as provided in Section 7.1 of the Plan.

ARTICLE V.

OTHER PROVISIONS

5.1 Administration. The Administrator shall have the power to interpret the Plan, the
Grant Notice and this Option Agreement and to adopt such rules for the administration,
interpretation and application of the Plan, the Grant Notice and this Option Agreement as are
consistent therewith and to interpret, amend or revoke any such rules. All actions taken and all
interpretations and determinations made by the Administrator in good faith shall be final and
binding upon Participant, the Company and all other interested persons. No member of the Committee
or the Board or any delegate thereof shall be personally liable for any action, determination or
interpretation made in good faith with respect to the Plan, the Grant Notice or this Option
Agreement.

5.2 Option Not Transferable.

(a) Subject to Section 5.2(b), no right or interest of Participant in the Option may be
pledged, encumbered, or hypothecated to or in favor of any party other than the Company or a
Subsidiary, or shall be subject to any lien, obligation, or liability of Participant to any other
party other than the Company or a Subsidiary. Except as otherwise provided by the Administrator,
the Option shall not be assigned, transferred, or otherwise disposed of by Participant other than
by will or the laws of descent and distribution.

(b) After the death of Participant, any exercisable portion of the Option may, prior to the
time when the Option becomes unexercisable under Section 3.3 above, be exercised by Participant’s
personal representative or by any person empowered to do so under the deceased Participant’s will
or under then-applicable laws of descent and distribution.

 

5

 

5.3 Adjustments. Participant acknowledges that the Option is subject to modification
and termination upon the occurrence of certain events as provided in this Agreement and in Article
7 of the Plan.

5.4 Notices. Any notice to be given in connection with the this Agreement to the
Company shall be addressed to the Company in care of the Secretary of the Company at the address
given beneath the signature of the Company’s authorized officer on the Grant Notice, and any notice
to be given to Participant shall be addressed to Participant at the most current address on file
with the Company’s Human Resources department. By a notice given pursuant to this Section 5.4,
either party may hereafter designate a different address for notices to be given to that party.
Any notice which is required to be given to Participant shall, if Participant is then deceased, be
given to the person entitled to exercise his or her Option pursuant to Section 4.1 above. Any
notice shall be deemed duly given on the date hand-delivered, on the day following deposit with a
reputable overnight carrier, or two days after such notice is sent by certified mail (return
receipt requested), in any case, to the addresses specified herein.

5.5 Captions. Captions are provided herein for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

5.6 Governing Law; Severability. The laws of the State of Nevada shall govern the
interpretation, validity, administration, enforcement and performance of the terms of this
Agreement without reference to the conflicts of laws principles thereof.

5.7 Conformity to Securities Laws. Participant acknowledges that the Plan and the
Option are intended to conform to the extent necessary with all applicable federal, state, local
and foreign securities laws and any and all official interpretations, regulations and rules
promulgated thereunder. Notwithstanding anything herein to the contrary, the Plan shall be
administered, and the Option is granted and may be exercised, only in such a manner as conforms to
such laws, rules and regulations. To the extent permitted by applicable law, the Plan and the
Option shall be deemed amended to the extent necessary to conform to such laws, rules and
regulations.

5.8 Amendments, Suspension and Termination. Participant acknowledges that the Plan
and the Option are subject to amendment, suspension and/or termination as provided in Article 10 of
the Plan.

5.9 Successors and Assigns. The Company may assign any of its rights under this
Agreement to single or multiple assignees, and this Agreement shall inure to the benefit of the
successors and assigns of the Company. Subject to the restrictions on transfer herein set forth in
Section 5.2 above, this Agreement shall be binding upon Participant and his or her heirs,
executors, administrators, successors and assigns.

5.10 Notification of Disposition. If this Option is designated as an Incentive Stock
Option, Participant shall give prompt notice to the Company of any disposition or other transfer of
any shares of Stock acquired under this Agreement if such disposition or transfer is made (a)
within two years after the applicable Grant Date, or (b) within one year after Participant
exercises the Option. Such notice shall specify the date of such disposition or other transfer and
the amount realized, in cash, other property, assumption of indebtedness or other consideration, by
Participant in such disposition or other transfer.

 

6

 

5.11 Limitations Applicable to Section 16 Persons. Notwithstanding any other
provision of the Plan, the Grant Notice or this Agreement, if Participant is subject to Section 16
of the Exchange Act, then the Plan, the Grant notice and this Agreement shall be subject to any
additional limitations set forth in any applicable exemptive rule under Section 16 of the Exchange
Act (including any amendment to Rule 16b-3 of the Exchange Act) that are requirements for the
application of such exemptive rule. To the
extent permitted by applicable law, this Agreement shall be deemed amended to the extent
necessary to conform to such applicable exemptive rule.

5.12 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall
confer upon Participant any right to continue to serve as an employee or other service provider of
the Company or any of its Subsidiaries.

5.13 Entire Agreement. The Plan, the Grant Notice and this Agreement (including all
Exhibits thereto) constitute the entire agreement of the parties and supersede in their entirety
all prior undertakings and agreements of the Company and Participant with respect to the subject
matter hereof.

5.14 Section 409A. Without limiting the generality of Section 1.2 above, Section
11.14 of the Plan regarding Code Section 409A is hereby expressly incorporated by reference into
this Agreement.

 

7

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