Document:

Standard Form of Agreement between Owner and Contractor

 
Exhibit 10.3

 
1997 Edition—Electronic Format

 
AIA Document B141-1997 
 
Standard Form of Agreement Between Owner and Architect 
with Standard Form of Architect’s Services 
 
TABLE OF ARTICLES 
 

	 1.1    INITIAL INFORMATION

	
	 1.2    RESPONSIBILITIES OF THE
PARTIES

	
	 1.3    TERMS AND CONDITIONS

	
	 1.4    SCOPE OF SERVICES AND OTHER SPECIAL TERMS AND
CONDITIONS

	
	 1.5    COMPENSATION

 
AGREEMENT made as of the
31st day of January in the year 2003, effective as of the 10th day of October, 2001. 
 
BETWEEN the Architect’s client identified as the Owner: 
 
Old Evangeline Downs, LLC 
7620 N.E. Evangeline Thruway 
Carenero, Louisiana 70520 
 
and the Architect: 
 
KGA Architecture 
4170 South Decatur
Boulevard, Suite B-5 
Las Vegas, Nevada 89103 
 
For the following Project: Evangeline Casino and Racetrack, Opelousas, Louisiana 
 
The Owner and Architect agree as follows. 
 
ARTICLE 1.1 INITIAL INFORMATION 
 
1.1.1 This agreement is based on the letter from the Architect to Peninsula Gaming dated October 10, 2001. By signing below, Peninsula Gaming assigns all
of its right, title and interest in and to said letter to the Owner. The Owner accepts such assignment and assumes all obligations thereunder. Architect consents to such assignment and agrees that Peninsula Gaming is discharged thereunder and is
relieved and released from all obligations thereunder. Said letter is attached hereto as Exhibit A. 

 
1.1.2 PROJECT PARAMETERS

 
1.1.2.1 The objective or use is described in Exhibit A.

 
1.1.2.2 The physical parameters are described in Exhibit A.

 
1.1.2.3 The Owner’s Program is described in Exhibit A.

 
1.1.2.4 The legal parameters are described in Exhibit A.

 
1.1.2.5 The financial parameters are described in Exhibit
A. 
 
1.1.2.6 The time parameters are described in Exhibit
A. 
 
1.1.2.7 The proposed procurement or delivery method for the
Project is described in Exhibit A. 
 
1.1.2.8 All other Other
parameters are described in Exhibit A. 
 
1.1.3 PROJECT TEAM 
 
1.1.3.1 The
Owner’s Designated Representative is Michael Luzich or his designee. 
 
1.1.3.3 The Owner’s other consultants and contractors are: 
 
Contractor: 
W.G. Yates & Sons Construction Company 
200-A Lentensa Street 
Biloxi, Mississippi 39530 
 
Owner’s Construction Manager: 
KGA Architecture 
4170 South Decatur
Boulevard, Suite B-5 
Las Vegas, Nevada 89103 
 
1.1.3.4 The Architect’s Designated Representative is Ed Kittrell Jr. or his designee. 
 
1.1.3.5 The consultants retained at the Architect’s expense are described
in Exhibit A. 
 
1.1.5 When the services under this
Agreement include contract administration services, the General Conditions of the Contract for Construction shall be the 1997 edition of AIA Document A201 as modified and amended in the form attached to the Standard Form of Agreement between Owner
and Contractor dated January 21, 2003 (the “Construction Contract”). 
 
1.1.6 The information contained in this Article 1.1 may be reasonably relied upon by the Owner and Architect. Both parties, however, recognize that such information may change. 
 
ARTICLE 1.2 RESPONSIBILITIES OF THE PARTIES 
 
1.2.1 The Owner and the Architect shall cooperate with one another to fulfill
their respective obligations under this Agreement. Both parties shall endeavor to maintain good working relationships among all members of the Project team. 
 

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1.2.2 OWNER 
 
1.2.2.1 Unless otherwise provided under this Agreement, the Owner shall
provide full information in a timely manner regarding requirements for and limitations on the Project. The Owner shall furnish to the Architect, within 15 days after receipt of a written request, information necessary and relevant for the Architect
to evaluate, give notice of or enforce lien rights. 
 
1.2.2.2 The
Contractor shall periodically update the budget for the Project, including that portion allocated for the Cost of the Work as set forth in the construction Contract. 
 
1.2.2.3 The Owner’s Designated Representative identified in Paragraph 1.1.3 shall be authorized to act on the
Owner’s behalf with respect to the Project. The Owner or the Owner’s Designated Representative shall render decisions in a timely manner pertaining to documents submitted by the Architect in order to avoid unreasonable delay in the orderly
and sequential progress of the Architect’s services. 
 
1.2.2.4 The Architect shall furnish the services of consultants to perform the services as set forth in Exhibit A. 
 
1.2.2.5 The Owner or the Architect, as set forth in Exhibit A, shall furnish tests, inspections and reports required by law or the Contract Documents,
such as structural, mechanical, and chemical tests, tests for air and water pollution, and tests for hazardous materials. 
 
1.2.2.6 The Owner shall furnish all legal, insurance and accounting services, including auditing services, that may be reasonably necessary at any time
for the Project to meet the Owner’s needs and interests. 
 
1.2.2.7 The Owner shall provide prompt written notice to the Architect if the Owner becomes aware of any fault or defect in the Project, including any errors, omissions or inconsistencies in the Architect’s Instruments of
Service. 
 

	1.2.3	 	ARCHITECT 

 
1.2.3.1 The services performed by the Architect, Architect’s employees and Architect’s consultants shall be enumerated in Exhibit A. 
 
1.2.3.2 The Architect’s services shall be performed as expeditiously as
is consistent with professional skill and care and the orderly progress of the Project. The Architect shall submit for the Owner’s approval a schedule for the performance of the Architect’s services as set forth in Exhibit A and which
shall be adjusted, if necessary, as the Project proceeds. This schedule shall include allowances for periods of time required for the Owner’s review, for the performance of the Owner’s consultants, and for approval of submissions by
authorities having jurisdiction over the Project. Time limits established by this schedule approved by the Owner shall not, except for reasonable cause, be exceeded by the Architect or Owner. 
 
1.2.3.3 The Architect’s Designated Representative identified in Paragraph
1.1.3 shall be authorized to act on the Architect’s behalf with respect to the Project. 
 

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1.2.3.4 The Architect shall
maintain the confidentiality of information specifically designated as confidential by the Owner, unless withholding such information would violate the law, or prevent the Architect from establishing a claim or defense in an adjudicatory proceeding.
The Architect shall require of the Architect’s consultants similar agreements to maintain the confidentiality of information specifically designated as confidential by the Owner. 
 
1.2.3.5 Except with the Owner’s knowledge and consent, the Architect shall not engage in any activity, or accept any
employment, interest or contribution that would reasonably appear to compromise the Architect’s professional judgment with respect to this Project. 
 
1.2.3.6 The Architect shall review laws, codes, and regulations applicable to the Architect’s services. The Architect shall respond in the design of
the Project to requirements imposed by governmental authorities having jurisdiction over the Project. 
 
1.2.3.7 The Architect shall be entitled to rely on the accuracy and completeness of services and information furnished by the Owner. The Architect shall provide prompt written notice to the Owner if
the Architect becomes aware of any errors, omissions or inconsistencies in such services or information. 
 

	ARTICLE	 	1.3 TERMS AND CONDITIONS 

 
1.3.1. COST OF THE WORK 
 
1.3.1.1 The Cost of the Work shall be as defined in the Construction Contract. 
 
1.3.1.3The Cost of the Work does not include the compensation of the Architect and the Architect’s consultants.

 
1.3.2 INSTRUMENTS OF SERVICE 
 
1.3.2.1 Drawings, specifications and other documents, including those in
electronic form, prepared by the Architect and the Architect’s consultants are Instruments of Service for use solely with respect to this Project. The Architect and the Architect’s consultants shall be deemed the authors and owners of
their respective Instruments of Service and shall retain all common law, statutory and other reserved rights, including copyrights. 
 
1.3.2.2 Upon execution of this Agreement, the Architect grants to the Owner, the Contractor and all subcontractors and subsubcontractors (as such terms
are defined in the Construction Contract) a nonexclusive license to reproduce the Architect’s Instruments of Service solely for purposes of constructing, using and maintaining the Project, provided that the Owner shall comply with all
obligations, including prompt payment of all sums when due, under this Agreement. The Architect shall obtain similar nonexclusive licenses from the Architect’s consultants consistent with this Agreement. 
 
1.3.2.3 The Owner shall not assign, delegate, sublicense, pledge or otherwise
transfer any license granted herein to another party without the prior written agreement of the Architect. However, the Owner shall be permitted to authorize the Contractor, Subcontractors, Sub-subcontractors and material or equipment suppliers to
reproduce applicable portions of the Instruments of Service appropriate to and for use in their execution of the Work by license granted in Subparagraph 1.3.2.2. Submission or distribution of Instruments of Service to meet official regulatory
requirements or for similar purposes in connection with the Project is not to be 

 

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construed as publication in derogation of the reserved rights of the Architect and the Architect’s consultants. The Owner shall not use
the Instruments of Service for future additions or alterations to this Project or for other projects, unless the Owner obtains the prior written agreement of the architect and the Architect’s consultants. Any unauthorized use of the Instruments
of Service by the Owner shall be at the Owner’s sole risk and without liability to the Architect and the Architect’s consultants. 
 
1.3.2.4 Exhibit A sets forth the specific conditions governing the format of such Instruments of Service or electronic data, including any special
limitations or licenses not otherwise provided in this Agreement. 
 
1.3.3 CHANGES IN SERVICES 
 
1.3.3.1 Changes in Services of the Architect, including services required of the Architect’s consultants, may be accomplished after execution of this Agreement in the manner set forth in Exhibit A. 
 
1.3.4 MEDIATION 
 
1.3.4.1 Any claim, dispute or other matter in question arising out of or
related to this Agreement shall be subject to mediation as a condition precedent to arbitration or the institution of legal or equitable proceedings by either party. If such matter relates to or is the subject of a lien arising out of the
Architect’s services, the Architect may proceed in accordance with applicable law to comply with the lien notice or filing deadlines prior to resolution of the matter by mediation or by arbitration. 
 
1.3.4.2 The Owner and the Architect shall endeavor to resolve claims, disputes
and other matters in question between them by mediation which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect. Request
for mediation shall be filed in writing with the other party to this Agreement and with the American Arbitration Association. The request may be made concurrently with the filing of a demand for arbitration but, in such event, mediation shall
proceed in advance of arbitration or legal or equitable proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. 
 
1.3.4.3 The parties shall share the mediator’s fee and any filing fees
equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof.

 
1.3.5 ARBITRATION 
 
1.3.5.1 Any claim, dispute or other matter in question arising out of or
related to this Agreement shall be subject to arbitration. Prior to arbitration, the parties shall endeavor to resolve disputes by mediation in accordance with Paragraph 1.3.4. 
 
1.3.5.2 Claims, disputes and other matters in question between the parties that are not resolved by mediation shall be
decided by arbitration which, unless the parties mutually agree otherwise, shall be in accordance with the Construction Industry Arbitration Rules of the 

 

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American Arbitration Association currently in effect. The demand for arbitration shall be filed in writing with the other party to this
Agreement and with the American Arbitration Association. 
 
1.3.5.3
A demand for arbitration shall be made within a reasonable time after the claim, dispute or other matter in question has arisen. In no event shall the demand for arbitration be made after the date when institution of legal or equitable proceedings
based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. 
 
1.3.5.4 No arbitration arising out of or relating to this Agreement shall include, by consolidation or joinder or in any other manner, an additional
person or entity not a party to this Agreement, except by written consent containing a specific reference to this Agreement and signed by the Owner, Architect, and any other person or entity sought to be joined. Consent to arbitration involving an
additional person or entity shall not constitute consent to arbitration of any claim, dispute or other matter in question not described in the written consent or with a person or entity not named or described herein. The foregoing agreement to
arbitrate and other agreements to arbitrate with an additional person or entity duly consented to by parties to this Agreement shall be specifically enforceable in accordance with applicable law in any court having jurisdiction thereof.

 
1.3.5.5 The award rendered by the arbitrator or arbitrators
shall be final, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. 
 
1.3.6 CLAIMS FOR CONSEQUENTIAL DAMAGES. The Architect and the Owner waive consequential damages for claims, disputes or other matters in question arising
out of or relating to this Agreement. This mutual waiver is applicable, without limitation, to all consequential damages due to either party’s termination in accordance with Paragraph 1.3.8. 
 
1.3.7 MISCELLANEOUS INFORMATION 
 
1.3.7.1 This Agreement shall be governed by the law of the principal place of
business of the Architect. The design and drawings shall be prepared in accordance with the laws, rules and regulations of the State of Louisiana. The functions of the Architect under the Construction Contract shall be interpreted in accordance with
the laws, rules and regulation of the State of Louisiana. 
 
1.3.7.2 Terms in this Agreement shall have the same meaning as those in the edition of AIA Document A201, General Conditions of the Contract for Construction attached to the Construction Contract. 
 
1.3.7.3 Causes of action between the parties to this Agreement pertaining to
acts or failures to act shall be deemed to have accrued and the applicable statutes of limitations shall commence to run not later than either the date of Substantial Completion for acts or failures to act occurring prior to Substantial Completion
or the date of issuance of the final Certificate for Payment for acts or failures to act occurring after Substantial Completion. In no event shall such statutes of limitations commence to run any later than the date when the Architect’s
services are substantially completed. 
 
1.3.7.4 To the extent
damages are covered by property insurance during construction, the Owner and the Architect waive all rights against each other and against the contractors, 

 

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consultants, agents and employees of the other for damages, except such rights as they may have to the proceeds of such insurance as set
forth in the edition of AIA Document A201, General Conditions of the Contract for Construction attached to the Construction Contract . The Owner or the Architect, as appropriate, shall require of the contractors, consultants, agents and employees of
any of them similar waivers in favor of the other parties enumerated herein. 
 
1.3.7.5 Nothing contained in this Agreement shall create a contractual relationship with or a cause of action in favor of a third party against either the Owner or Architect. 
 
1.3.7.6 Unless otherwise provided in Exhibit A, the Architect and the
Architect’s consultants shall have no responsibility for the discovery, presence, handling, removal or disposal of or exposure of persons to hazardous materials or toxic substances in any form at the Project site. 
 
1.3.7.7 The Architect shall have the right to include photographic or artistic
representations of the design of the Project among the Architect’s promotional and professional materials. The Architect shall be given reasonable access to the completed Project to make such representations. However, the Architect’s
materials shall not include the Owner’s confidential or proprietary information. The Owner shall provide professional credit for the Architect in the Owner’s promotional materials for the Project. 
 
1.3.7.8 The Architect shall execute certificates in the form annexed to that
certain Cash Collateral and Disbursement Agreement among U.S. Bank National Association, the Owner and others, the content of which certificates shall be satisfactory to the Architect. 
 
1.3.7.9 The Owner and the Architect, respectively, bind themselves, their
partners, successors, assigns and legal representatives to the other party to this Agreement and to the partners, successors, assigns and legal representatives of such other party with respect to all covenants of this Agreement. Neither the Owner
nor the Architect shall assign this Agreement without the written consent of the other, except that the Owner may assign this Agreement to an institutional lender providing financing for the Project. In such event, the lender shall assume the
Owner’s rights and obligations under this Agreement. The Architect shall execute all consents reasonably required to facilitate such assignment. 
 
1.3.8 TERMINATION OR SUSPENSION 
 
1.3.8.1 If the Owner fails to make payments to the Architect in accordance with this Agreement, such failure shall be
considered substantial nonperformance and cause for termination or, at the Architect’s option, cause for suspension of performance of services under this Agreement. If the Architect elects to suspend services, prior to suspension of services,
the Architect shall give seven days’ written notice to the Owner. In the event of a suspension of services, the Architect shall have no liability to the Owner for the delay or damage caused the Owner because of such suspension of services.
Before resuming services, the Architect shall be paid all sums due prior to suspension and any expenses incurred in the interruption and resumption of the Architect’s services. 
 
1.3.8.2 If the Project is suspended by the Owner for more than 30 consecutive days, the Architect shall be compensated for
services performed prior to notice of such suspension. When 

 

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the Project is resumed, the Architect shall be compensated for expenses incurred in the interruption and resumption of the Architect’s
services. 
 
1.3.8.5 This Agreement may be terminated by the Owner
upon not less than seven days’ written notice to the Architect for the Owner’s convenience and without cause. 
 
1.3.8.6 In the event of termination not the fault of the Architect, the Architect shall be compensated for services performed prior to termination in
accordance with Exhibit A. 
 
1.3.9 PAYMENTS TO THE ARCHITECT

 
1.3.9.1 Payments on account of services rendered and for
Reimbursable Expenses incurred shall be made in accordance with Exhibit A. 
 
1.3.9.3 Records of expenses pertaining to of services shall be available to the Owner or the Owner’s authorized representative at mutually convenient times. 
 
ARTICLE 1.4 SCOPE OF SERVICES AND OTHER SPECIAL TERMS AND CONDITIONS 
 
1.4.1 Enumeration of Parts of the Agreement. This Agreement represents
the entire and integrated agreement between the Owner and the Architect and supersedes all prior negotiations, representations or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both Owner and
Architect. This Agreement comprises the documents listed below. 
 
1.4.1.1 Standard Form of Agreement Between Owner and Architect, AIA Document B141-1997. 
 
1.4.1.2 Standard Form of Architect’s Services: Design and Contract Administration, AIA Document, B141-1997, or as follows: 
 
1.4.2 Special Terms and Conditions. Special terms and conditions that modify this Agreement are as follows: 
 
It is the intention of the Owner and the Architect that Exhibit A is
incorporated into this Standard Form of Agreement and that any inconsistencies between this Agreement and Exhibit A be resolved in favor of Exhibit A. 
 

	ARTICLE	 	1.5 COMPENSATION 

 
1.5.1 For the Architect’s services as described under Article 1.4, compensation shall be computed in accordance with Exhibit A. 
 
This Agreement entered into as of the day and year first written above.

 

	 Old Evangeline Downs, LLC
	 	 	 	 KGA Architecture

	
	 	 	 /s/    MICHAEL S.
LUZICH        

	 	 	 	 	 	 /s/    ED KITTRELL,
Jr.        

	 	 	 Owner (Signature)
	 	 	 	 	 	 Architect (Signature)

	 	 	 by:    Michael Luzich, President
	 	 	 	 	 	 by:    Ed Kittrell Jr., President

 

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1997
Edition—Electronic Format 
 
AIA Document
B141-1997 
 
Standard Form of Architect’s Services:

Design and Contract Administration 
 
TABLE OF ARTICLES 
 

	 2.1     PROJECT ADMINISTRATION
SERVICES

	
	 2.2    SUPPORTING SERVICES

	
	 2.3    EVALUATION AND PLANNING
SERVICES

	
	 2.4    DESIGN SERVICES

	
	 2.5    CONSTRUCTION PROCUREMENT
SERVICES

	
	 2.6    CONTRACT ADMINISTRATION
SERVICES

	
	 2.7    FACILITY OPERATION SERVICES

	
	 2.8    SCHEDULE OF SERVICES

	
	 2.9    MODIFICATIONS

 

	ARTICLE	 	2.1 PROJECT ADMINISTRATION SERVICES 

 
2.1.1 The Architect shall manage the Architect’s services and administer the Project. The Architect shall consult with the Owner, research applicable
design criteria, attend Project meetings, communicate with members of the Project team and issue progress reports. The Architect shall coordinate the services provided by the Architect and the Architect’s consultants with those services
provided by the Owner and the Owner’s consultants. 
 
2.1.2
When Project requirements have been sufficiently identified, the Architect shall prepare, and periodically update, a Project schedule that shall identify milestone dates for decisions required of the Owner, design services furnished by the
Architect, completion of documentation provided by the Architect, commencement of construction and Substantial Completion of the Work. 
 
2.1.3 The Architect shall consider the value of alternative materials, building systems and equipments, together with other considerations based on
program, budget and aesthetics in developing the design for the Project. 
 
2.1.4 Upon request of the Owner, the Architect shall make a presentation to explain the design of the Project to representatives of the Owner. 
 

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2.1.5 The Architect shall
submit design documents to the Owner at intervals appropriate to the design process for purposes of evaluation and approval by the Owner. The Architect shall be entitled to rely on approvals received from the Owner in the further development of the
design. 
 
2.1.6 The Architect shall assist the Owner in connection
with the Owner’s responsibility for filing documents required for the approval of governmental authorities having jurisdiction over the Project. 
 
2.1.7 EVALUATION OF BUDGET AND COST OF THE WORK 
 
2.1.7.1 As the design process progresses through the end of the preparation of the Construction Documents, the Architect shall update and refine the
preliminary estimate of the Cost of the Work. The Architect shall advise the Owner of any adjustments to previous estimates of the Cost of the Work indicated by changes in Project requirements or general market conditions. If at any time the
Architect’s estimate of the Cost of the Work exceeds the Owner’s budget, the Architect shall make appropriate recommendations to the Owner to adjust the Project’s size, quality or budget, and the Owner shall cooperate with the
Architect in making such adjustments. 
 
2.1.7.2 Evaluations of the
Owner’s budget for the Project, the preliminary estimate of the Cost of the Work and updated estimates of the Cost of the Work prepared by the Architect represent the Architect’s judgment as a design professional familiar with the
construction industry. It is recognized, however, that neither the Architect nor the Owner has control over the cost of labor, materials or equipment, over the Contractor’s methods of determining bid prices, or over competitive bidding, market
or negotiating conditions. Accordingly the Architect cannot and does not warrant or represent that bids or negotiated prices will not vary from the Owner’s budget for the Project or from any estimate of the Cost of the Work or evaluation
prepared or agreed to by the Architect. 
 
ARTICLE 2.4 DESIGN
SERVICES 
 
2.4.1 The Architect’s design services shall
include normal structural, mechanical and electrical engineering services. 
 
2.4.2. SCHEMATIC DESIGN DOCUMENTS 
 
2.4.2.1 The
Architect shall provide Schematic Design Documents in accordance with Exhibit A. 
 
2.4.3 DESIGN DEVELOPMENT DOCUMENTS 
 
2.4.3.1 The
Architect shall provide Design development Documents based on the approved Schematic Design Documents and updated budget for the Cost of the Work in accordance with Exhibit A. 
 
2.4.4 CONSTRUCTION DOCUMENTS 
 
2.4.4.1 The Architect shall provide Construction Documents based on the approved Design Development Documents and updated budget for the Cost of the Work
in accordance with Exhibit A. 
 
2.4.4.2 During the development of
the Construction Documents, the Architect shall assist the Owner and the Contractor in the development and preparation of: (1) bidding and procurement 

 

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information which describes the time, place and conditions of bidding; bidding or proposal forms; and the form of agreement between the Owner
and the Contractor; and (2) the Conditions of the Contract for Construction (General, Supplementary and other Conditions). The Architect also shall compile the Project Manual that includes the Conditions of the Contract for Construction and
Specifications and may include bidding requirements and sample forms. 
 
ARTICLE 2.5 CONSTRUCTION PROCUREMENT SERVICES 
 
2.5.1 The Architect shall assist the Owner and the Contractor in obtaining either competitive bids or negotiated proposals and shall assist the Owner and the Contractor in awarding and preparing contracts for construction.

 
2.5.2 The Architect shall assist the Owner and the Contractor in
establishing a list of prospective bidders or contractors. 
 
2.5.3
The Architect shall assist the Owner and the Contractor in bid validation or proposal evaluation and determination of the successful bid or proposal, if any. 
 
ARTICLE 2.6 CONTRACT ADMINISTRATION SERVICES 
 
2.6.1 GENERAL ADMINISTRATION 
 
2.6.1.1 The Architect shall provide administration of the Contract between the Owner and the Contractor as set forth below
and in the edition of the AIA Document A201, General Conditions of the Contract for Construction annexed to the Construction Contract. 
 
2.6.1.2 The Architect’s responsibility to provide the Contract Administration Services under this Agreement commences with the award of the initial
Contract for Construction and terminates at the issuance to the Owner of the final Certificate for Payment.  
 
2.6.1.3 The Architect shall be a representative of and shall advise and consult with the Owner during the provision of the Contract Administration
Services. The Architect shall have authority to act on behalf of the Owner only to the extent provided in this Agreement. 
 
2.6.1.4 Duties, responsibilities and limitations of authority of the Architect under this Article 2.6 shall not be restricted, modified or extended
without written agreement of the Owner and Architect. 
 
2.6.1.5
The Architect shall review properly prepared, timely requests by the Contractor for additional information about the Contract Documents. A properly prepared request for additional information about the Contract Documents shall be in a form prepared
or approved by the Architect and shall include a detailed written statement that indicates the specific Drawings or Specifications in need of clarification and the nature of the clarification requested. 
 
2.6.1.6 If deemed appropriate by the Architect, the Architect shall on the
Owner’s behalf prepare, reproduce and distribute supplemental Drawings and Specifications in response to requests for information by the Contractor. 
 
2.6.1.7 The Architect shall interpret and decide matters concerning performance of the Owner and Contractor under, and requirements of, the Contract
Documents on written request of either the Owner or the Contractor. The Architect’s response to such requests shall be made in 
 

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writing within any time limits set forth in the AIA Documents A201, General Conditions of the Contract for Construction annexed to the
Construction Contract. 
 
2.6.1.8 Interpretations and decisions of
the Architect shall be consistent with the intent of and reasonably inferable from the Contract Documents and shall be in writing or in the form of drawings. The Architect shall not be liable for the results of interpretations or decisions so
rendered in good faith. 
 
2.6.1.9 The Architect shall render
initial decisions on claims, disputes or other matters in question between the Owner and Contractor as provided in the Contract Documents. However, the Architect’s decisions on matters relating to aesthetic effect after consultation with the
Owner. 
 
2.6.2 EVALUATIONS OF THE
WORK 
 
2.6.2.1 The Architect, as a representative of the Owner,
shall visit the site at intervals set forth in Exhibit A, or as otherwise agreed by the Owner and the Architect in Article 2.8, (1) to become generally familiar with and to keep the Owner informed about the progress and quality of the portion of the
Work completed, (2) to endeavor to guard the Owner against defects and deficiencies in the Work, and (3) to determine in general if the Work is being performed in a manner indicating that the Work, when fully completed, will be in accordance with
the Contract Documents. However, the Architect shall not be required to make exhaustive or continuous on-site inspections to check the quality or quantity of the Work. The Architect shall neither have control over or charge of, nor be responsible
for, the construction means, methods, techniques, sequences or procedures, or for safety precautions and programs in connection with the Work, since these are solely the Contractor’s rights and responsibilities under the Contract Documents.

 
2.6.2.2 The Architect shall report to the Owner known deviations
from the Contract Documents and from the recent construction schedule submitted by the Contractor. However, the Architect shall not be responsible for the Contractor’s failure to perform the Work in accordance with the requirements of the
Contract Documents. The Architect shall be responsible for the Architect’s negligent acts or omissions, but shall not have control over or charge of and shall not be responsible for acts or omissions of the Contractor, Subcontractors, or their
agents or employees, or of any other persons or entities performing portions of the Work. 
 
2.6.2.3 The Architect shall at all times have access to the Work wherever it is in preparation or progress. 
 
2.6.2.4 Except as otherwise provided in this Agreement or when direct communications have been specifically authorized, the Owner shall endeavor to
communicate with the Contractor through the Architect about matters arising out of or relating to the Contract Documents. Communications by and with the Architect’s consultants shall be through the Architect. 
 
2.6.2.5 The Architect shall have authority to reject Work that does not
conform to the Contract Documents. Whenever the Architect considers it necessary or advisable, and after consultation with the Owner, the Architect will have authority to require inspection or testing of the Work in accordance with the provisions of
the Contract Documents, whether or not such Work is fabricated, installed or completed. However, neither this authority of the Architect nor a decision made in good faith either to exercise or not to exercise such authority shall give rise to a

 

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duty or responsibility of the Architect to the Contractor, Subcontractors, material and equipment suppliers, their agents or employees or
other persons or entities performing portions of the Work. 
 
2.6.3 CERTIFICATION OF PAYMENTS TO CONTRACTOR 
 
2.6.3.1 The Architect shall review and certify the amounts due the Contractor and shall issue Certificates for Payment in such amounts all in accordance with the provisions set forth in the edition of
AIA Document A201, General Conditions of the Contract for Construction annexed to the Construction Contract. The Architect’s certification for payment shall constitute a representation to the Owner, based on the Architect’s evaluation of
the Work as provided in Paragraph 2.6.2 and on the data comprising the Contractor’s Application for Payment, that the Work has progressed to the point indicated and that, to the best of the Architect’s knowledge, information and belief,
the quality of the Work is in accordance with the Contract Documents. The foregoing representations are subject (1) to an evaluation of the Work for conformance with the Contract Documents upon Substantial Completion, (2) to results of subsequent
tests and inspections, (3) to correction of minor deviations from the Contract Documents prior to completion, and (4) to specific qualifications expressed by the Architect. 
 
2.6.3.2 The issuance of a Certificate for Payment shall not be a representation that the Architect has (1) made exhaustive or
continuous on-site inspections to check the quality or quantity of the Work, (2) reviewed construction mean, methods, techniques, sequences or procedures, (3) reviewed copies of requisitions received from Subcontractors and material suppliers and
other data requested by the Owner to substantiate the Contractor’s right to payment, or (4) ascertained how or for what purpose the Contractor has used money previously paid on account of the Contract Sum. 
 
2.6.3.3 The Architect shall maintain a record of the Contractor’s
Application for Payment. 
 
2.6.4 SUBMITTALS 
 
2.6.4.1 The Architect shall review and approve or take appropriate action
upon the Contractor’s submittals such as Shop Drawings, Product Data and Samples, but only for the limited purpose of checking for conformance with information given and the design concept expressed in the Contract Documents. The
Architect’s action shall be taken with such reasonable promptness as to cause no delay in the work or in the activities of the Owner, Contractor or separate contractors, while allowing sufficient time in the Architect’s professional
judgment to permit adequate review. Review of such submittals is not conducted for the purpose of determining the accuracy and completeness of other details such as dimensions and quantities, or for substantiating instructions for installation or
performance of equipment or systems, all of which remain the responsibility of the Contractor as required by the Contract Documents. The Architect’s review shall not constitute approval of safety precautions or, unless otherwise specifically
stated by the Architect, of any construction means, methods, techniques, sequences or procedures. The Architect’s approval of a specific item shall not indicate approval of an assembly of which the item is a component. 
 
2.6.4.2 The Architect shall maintain a record of submittals and copies of
submittals supplied by the Contractor in accordance with the requirements of the Contract Documents. 
 

A-13 

 
2.6.4.3 If professional
design services or certifications by a design professional related to systems, materials or equipment are specifically required of the Contractor by the Contract Documents, the Architect shall specify appropriate performance and design criteria that
such services must satisfy. Shop Drawings and other submittals related to the Work designed or certified by the design professional retained by the Contractor shall bear such professional’s written approval when submitted to the Architect. The
Architect shall be entitled to rely upon the adequacy, accuracy and completeness of the services, certifications or approvals performed by such design professionals. 
 
2.6.5 CHANGES IN THE WORK 
 
2.6.5.1 The Architect shall prepare Change Orders and Construction Change Directives for the Owner’s approval and execution in accordance with the
Contract Documents. The Architect may authorize minor changes in the Work not involving an adjustment in Contract Sum or an extension of the Contract Time which are consistent with the intent of the Contract Documents. If necessary, the Architect
shall prepare, reproduce and distribute Drawings and Specifications to describe Work to be added, deleted or modified, as provided in Paragraph 2.8.2. 
 
2.6.5.2 The Architect shall review properly prepared, timely requests by the Owner or Contractor for changes in the Work, including adjustments to the
Contract Sum or Contract Time. A properly prepared request for a change in the Work shall be accompanied by sufficient supporting data and information to permit the Architect to make a reasonable determination without extensive investigation or
preparation of additional drawings or specifications. If the Architect reasonably determines that requested changes in the Work are not materially different from the requirements of the Contract Documents, the Architect may issue an order for a
minor change in the Work or recommend to the Owner that the requested change be denied. 
 
2.6.5.3 If the Architect determines that implementation of the requested changes would result in a material change to the Contract that may cause an adjustment in the Contract Time or Contract Sum, the Architect shall make a
recommendation to the Owner, who may authorize further investigation of such change. Upon such authorization, and based upon information furnished by the Contractor, if any, the Architect shall estimate the additional cost and time that might result
from such change, including any additional costs attributable to a Change in Services of the Architect. With the Owner’s approval, the Architect shall incorporate those estimates into a Change Order or other appropriate documentation for the
Owner’s execution or negotiation with the Contractor. 
 
2.6.5.4 The Architect shall maintain records relative to changes in the Work. 
 
2.6.6 PROJECT COMPLETION 
 
2.6.6.1 The Architect shall conduct inspections to determine the date or dates of Substantial Completion and the date of final completion, shall receive from the Contractor and forward to the Owner, for the Owner’s review and
records, written warranties and related documents required by the Contract Documents and assembled by the Contractor, and shall issue a final Certificate for Payment based upon a final inspection indicating the Work complies with the requirements of
the Contract Documents. 
 

A-14 

 
2.6.6.2 The Architect’s
inspection shall be conducted with the Owner’s Designated Representative to check conformance of the Work with the requirements of the Contract Documents and to verify the accuracy and completeness of the list submitted by the Contractor of
Work to be completed or corrected. 
 
2.6.6.3 When the Work is
found to be substantially complete, the Architect shall inform the Owner about the balance of the Contract Sum remaining to be paid the Contractor, including any amounts needed to pay for final completion or correction of the Work. 
 
2.6.6.4 The Architect shall receive from the Contractor and forward to the
Owner: (1) consent of surety or sureties, if any, to reduction in or partial release of retainage or the making of final payment and (2) affidavits, receipts, releases and waivers of liens or bonds indemnifying the Owner against liens. 
 
ARTICLE 2.7 FACILITY OPERATION SERVICES

 
2.7.1 The Architect shall meet with the Owner or the
Owner’s Designated Representative promptly after Substantial Completion to review the need for facility operation services. 
 
2.7.2 Upon request of the Owner, and prior to the expiration of one year from the date of Substantial Completion, the Architect shall conduct a meeting
with the Owner and the Owner’s Designated Representative to review the facility operations and performance and to make appropriate recommendations to the Owner. 
 
ARTICLE 2.9 MODIFICATIONS 
 
2.9.1 Modifications to this Standard Form of Architect’s Services: Design and contract Administration, if any, are as
follows: 
 
It is the intention of the Owner and the Architect that
Exhibit A is incorporated into the Standard Form of Architect’s Services: Design and Construction Administration and that any inconsistencies between this agreement and Exhibit A shall be resolved in favor of Exhibit A. In addition any
inconsistencies between the Architect’s functions under the Construction Contract and such functions which are obligations of the Architect under this Standard Form of Architect’s Services and Contract Administration shall be resolved in
favor of the Construction Contract. 
 
By its execution, this
Standard Form of Architect’s Services: Design and Contract Administration and modifications hereto are incorporated into the Standard Form of Agreement Between the Owner and Architect, AIA Document B141-1997, that was entered into by the
parties as of the date: 
 

	 Old Evangeline Downs, LLC
	 	 	 	 KGA Architecture

	
	 	 	 /s/    MICHAEL S.
LUZICH      

	 	 	 	 	 	 /s/    ED KITTRELL,
JR.        

	 	 	 Owner (Signature)
	 	 	 	 	 	 Architect (Signature)

	 	 	 by:    Michael Luzich, President
	 	 	 	 	 	 by:    Ed Kittrell Jr., President

 
 

A-152003 Equity Incentive Plan, as corrected

 
Exhibit 10.1

 
2003 Equity Incentive Plan

of 
Embarcadero Technologies, Inc. 

 
TABLE OF
CONTENTS 
 

	 	  	 	  	 	  	 Page

	 1.
	  	 
Purpose of this Plan 
	  	 1

	  
 2.
	  	 
Definitions and Rules of Interpretation 
	  	 1

	 	  	 2.1
	  	 
Definitions 
	  	 1

	 	  	 2.2
	  	 
Rules of Interpretation 
	  	 3

	  
 3.
	  	 
Shares Subject to this Plan; Term of this Plan 
	  	 3

	 	  	 3.1
	  	 
Number of Award Shares 
	  	 3

	 	  	 3.2
	  	 
Source of Shares 
	  	 4

	 	  	 3.3
	  	 
Term of this Plan 
	  	 4

	  
 4.
	  	 
Administration 
	  	 4

	 	  	 4.1
	  	 
General 
	  	 4

	 	  	 4.2
	  	 
Authority of Administrator 
	  	 4

	 	  	 4.3
	  	 
Scope of Discretion 
	  	 5

	  
 5.
	  	 
Persons Eligible to Receive Awards 
	  	 5

	 	  	 5.1
	  	 
Eligible Individuals 
	  	 5

	 	  	 5.2
	  	 
Section 162(m) Limitation 
	  	 6

	  
 6.
	  	 
Terms and Conditions of Options 
	  	 6

	 	  	 6.1
	  	 
Price 
	  	 6

	 	  	 6.2
	  	 
Term 
	  	 6

	 	  	 6.3
	  	 
Vesting 
	  	 6

	 	  	 6.4
	  	 
Form of Payment. 
	  	 6

	 	  	 6.5
	  	 
Nonassignability of Options 
	  	 7

	 	  	 6.6
	  	 
Substitute Options 
	  	 7

	  
 7.
	  	 
Incentive Stock Options 
	  	 7

	  
 8.
	  	 
Stock Appreciation Rights, Stock Awards and Cash Awards 
	  	 9

	 	  	 8.1
	  	 
Stock Appreciation Rights 
	  	 9

	 	  	 8.2
	  	 
Stock Awards 
	  	 9

	 	  	 8.3
	  	 
Cash Awards. The following rules apply to all Cash Awards: 
	  	 10

	  
 9.
	  	 
Exercise of Awards 
	  	 10

	 	  	 9.1
	  	 
In General 
	  	 10

	 	  	 9.2
	  	 
Time of Exercise 
	  	 10

	 	  	 9.3
	  	 
Issuance of Award Shares 
	  	 10

	 	  	 9.4
	  	 
Termination 
	  	 11

	  
 10.
	  	 
Certain Transactions and Events 
	  	 12

	 	  	 10.1
	  	 
In General 
	  	 12

	 	  	 10.2
	  	 
Changes in Capital Structure 
	  	 12

	 	  	 10.3
	  	 
Fundamental Transactions 
	  	 12

	 	  	 10.4
	  	 
Changes of Control 
	  	 12

	 	  	 10.5
	  	 
Divestiture 
	  	 13

	 	  	 10.6
	  	 
Dissolution 
	  	 13

	 	  	 10.7
	  	 
Cut-Back to Preserve Benefits 
	  	 13

 

i 

	 	  	 	  	 	  	 Page

	 11.
	  	 
Withholding and Tax Reporting 
	  	 13

	 	  	 11.1
	  	 
Tax Withholding Alternatives 
	  	 13

	 	  	 11.2
	  	 
Reporting of Dispositions 
	  	 13

	  
 12.
	  	 
Compliance with Law 
	  	 13

	  
 13.
	  	 
Amendment or Termination of this Plan or Outstanding Awards 
	  	 14

	 	  	 13.1
	  	 
Amendment and Termination 
	  	 14

	 	  	 13.2
	  	 
Stockholder Approval 
	  	 14

	 	  	 13.3
	  	 
Effect 
	  	 14

	  
 14.
	  	 
Reserved Rights 
	  	 14

	 	  	 14.1
	  	 
Nonexclusivity of this Plan 
	  	 14

	 	  	 14.2
	  	 
Unfunded Plan 
	  	 14

	  
 15.
	  	 
Special Arrangements Regarding Award Shares 
	  	 14

	 	  	 15.1
	  	 
Escrows and Pledges 
	  	 14

	 	  	 15.2
	  	 
Repurchase Rights 
	  	 15

	 	  	 15.3
	  	 
Market Standoff 
	  	 15

	  
 16.
	  	 
Beneficiaries 
	  	 15

	  
 17.
	  	 
Miscellaneous 
	  	 15

	 	  	 17.1
	  	 
Governing Law 
	  	 15

	 	  	 17.2
	  	 
Determination of Value 
	  	 16

	 	  	 17.3
	  	 
Reservation of Shares 
	  	 16

	 	  	 17.4
	  	 
Electronic Communications 
	  	 16

	 	  	 17.5
	  	 
Notices 
	  	 16

 

ii 

 

1.    Purpose of this Plan 
 
The purpose of this 2003 Equity Incentive Plan of Embarcadero Technologies, Inc. is to enhance the long-term stockholder value of Embarcadero Technologies, Inc. by offering opportunities to eligible
individuals to participate in the growth in value of the equity of Embarcadero Technologies, Inc. 
 

2.    Definitions and Rules of Interpretation 
 

2.1    Definitions.    This Plan uses the following defined terms: 
 
(a)    “Administrator” means the Board, the Committee, or any officer
or employee of the Company to whom the Board or the Committee delegates authority to administer this Plan. 
 
(b)    “Affiliate” means a “parent” or “subsidiary” (as
each is defined in Section 424 of the Code) of the Company and any other entity that the Board or Committee designates as an “Affiliate” for purposes of this Plan. 
 
(c)    “Applicable Law” means any and all laws of
whatever jurisdiction, within or without the United States, and the rules of any stock exchange or quotation system on which Shares are listed or quoted, applicable to the taking or refraining from taking of any action under this Plan, including the
administration of this Plan and the issuance or transfer of Awards or Award Shares. 
 
(d)    “Award” means a Stock Award, SAR, Cash Award, or Option granted
in accordance with the terms of the Plan. 
 
(e)    “Award Agreement” means the document evidencing the grant of an Award. 
 
(f)    “Award Shares” means Shares covered by an outstanding Award or
purchased under an Award. 
 
(g)    “Awardee” means: (i) a person to whom an Award has been granted, including a holder of a Substitute Award, (ii) a person to whom an Award has been transferred in accordance with all
applicable requirements of Sections 6.5, 7(h), and 16, and (iii) a person who holds Option Shares subject to any right of repurchase under Section 15.2. 
 
(h)    “Board” means the board of directors of the Company. 
 
(i)    “Cash
Award” means the right to receive cash as described in Section 8.3. 
 
(j)    “Change of Control” means any transaction or event that the Board
specifies as a Change of Control under Section 10.4. 
 
(k)    “Code” means the Internal Revenue Code of 1986. 
 
(l)    “Committee” means a committee composed of Company Directors appointed
in accordance with the Company’s charter documents and Section 4. 
 
(m)    “Company” means Embarcadero Technologies, Inc., a Delaware corporation. 
 
(n)    “Company Director” means a member of the
Board. 
 
(o)    “Consultant” means an individual who, or an employee of any entity that, provides bona fide services to the Company or an Affiliate not in connection with the offer or sale of
securities in a capital-raising transaction, but who is not an Employee. 
 
(p)    “Director” means a member of the board of directors of the Company or an Affiliate. 
 
(q)    “Divestiture” means any transaction or
event that the Board specifies as a Divestiture under Section 10.5. 
 
(r)    “Domestic Relations Order” means a “domestic relations order” as defined in, and otherwise meeting the requirements of, Section
414(p) of the Code, except that reference to a “plan” in that definition shall be to this Plan. 
 

1 

 
(s)    “Employee” means a regular employee of the Company or an Affiliate, including an officer or Director, who is treated as an employee in the personnel records of the Company or an
Affiliate, but not individuals who are classified by the Company or an Affiliate as: (i) leased from or otherwise employed by a third party, (ii) independent contractors, or (iii) intermittent or temporary workers. The Company’s or an
Affiliate’s classification of an individual as an “Employee” (or as not an “Employee”) for purposes of this Plan shall not be altered retroactively even if that classification is changed retroactively for another purpose as
a result of an audit, litigation or otherwise. An Awardee shall not cease to be an Employee due to transfers between locations of the Company, or between the Company and an Affiliate, or to any successor to the Company or an Affiliate that assumes
the Awardee’s Options under Section 10. Neither service as a Director nor receipt of a director’s fee shall be sufficient to make a Director an “Employee.” 
 
(t)    “Exchange Act” means the Securities
Exchange Act of 1934. 
 
(u)    “Executive” means, if the Company has any class of any equity security registered under Section 12 of the Exchange Act, an individual who is subject to Section 16 of the
Exchange Act or who is a “covered employee” under Section 162(m) of the Code, in either case because of the individual’s relationship with the Company or an Affiliate. If the Company does not have any class of any equity security
registered under Section 12 of the Exchange Act, “Executive” means any (i) Director, (ii) officer elected or appointed by the Board, or (iii) beneficial owner of more than 10% of any class of the Company’s equity securities.

 
(v)    “Expiration Date” means, with respect to an Award, the date stated in the Award Agreement as the expiration date of the Award or, if no such date is stated in the Award Agreement,
then the last day of the maximum exercise period for the Award, disregarding the effect of an Awardee’s Termination or any other event that would shorten that period. 
 
(w)    “Fair Market Value” means the value of
Shares as determined under Section 17.2. 
 
(x)    “Fundamental Transaction” means any transaction or event described in Section 10.3. 
 
(y)    “Grant Date” means the date the Administrator approves the grant of an
Award. However, if the Administrator specifies that an Award’s Grant Date is a future date or the date on which a condition is satisfied, the Grant Date for such Award is that future date or the date that the condition is satisfied.

 
(z)    “Incentive Stock Option” means an Option intended to qualify as an incentive stock option under Section 422 of the Code and designated as an Incentive Stock Option in the Award
Agreement for that Option. 
 
(aa)    “Nonstatutory Option” means any Option other than an Incentive Stock Option. 
 
(bb)    “Objectively Determinable Performance Condition” shall mean a
performance condition (i) that is established (A) at the time an Award is granted or (B) no later than the earlier of (1) 90 days after the beginning of the period of service to which it relates, or (2) before the elapse of 25% of the period of
service to which it relates, (ii) that is uncertain of achievement at the time it is established, and (iii) the achievement of which is determinable by a third party with knowledge of the relevant facts. Examples of measures that may be used in
Objectively Determinable Performance Conditions include net order dollars, net profit dollars, net profit growth, net revenue dollars, revenue growth, individual performance, earnings per share, return on assets, return on equity, and other
financial objectives, objective customer satisfaction indicators and efficiency measures, each with respect to the Company and/or an individual business unit. 
 
(cc)    “Officer” means an officer of the Company as defined in Rule 16a-1
adopted under the Exchange Act. 
 
(dd)    “Option” means a right to purchase Shares of the Company granted under this Plan. 
 
(ee)    “Option Price” means the price payable under an Option for Shares, not
including any amount payable in respect of withholding or other taxes. 
 
(ff)    “Option Shares” means Shares covered by an outstanding Option or purchased under an Option. 
 

2 

 
(gg)    “Plan” means this 2003 Equity Incentive Plan of Embarcadero Technologies, Inc. 
 
(hh)    “Purchase Price” means the price payable under a Stock Award for
Shares, not including any amount payable in respect of withholding or other taxes. 
 
(ii)    “Reverse Vesting” means that an Option is or was fully exercisable but
that, subject to a “reverse” vesting schedule, the Company has a right to repurchase the Option Shares as specified in Section 15.2(a), with the Company’s right of repurchase expiring in accordance with a “forward”
vesting schedule that would otherwise have applied to the Option under which the Option Shares were purchased or in accordance with some other vesting schedule described in the Award Agreement. With respect to a Stock Award, Reverse Vesting means
that the Company has a right to repurchase the Award Shares purchased pursuant to the Stock Award, as specified in Section 15.2(a), with the Company’s right of repurchase expiring in accordance with the vesting schedule in the Award Agreement.

 
(jj)    “Rule 16b-3” means Rule 16b-3 adopted under Section 16(b) of the Exchange Act. 
 
(kk)    “SAR” or “Stock Appreciation Right” means a right to receive
cash based on a change in the Fair Market Value of a specific number of Shares pursuant to an Award Agreement, as described in Section 8.1. 
 
(ll)    “Securities Act” means the Securities Act of 1933. 
 
(mm)    “Share” means a share of the Common Stock, par value $.001 per share, of the Company or other securities substituted for the Common Stock under Section 10. 
 
(nn)    “Stock
Award” means an offer by the Company to sell shares subject to certain restrictions pursuant to the Award Agreement as described in Section 8.2 
 
(oo)    “Substitute Award” means a Substitute
Option, Substitute SAR or Substitute Stock Award granted in accordance with the terms of the Plan. 
 
(pp)    “Substitute Option” means an Option granted in substitution for, or
upon the conversion of, an option granted by another entity to purchase equity securities in the granting entity. 
 
(qq)    “Substitute SAR” means a SAR granted in substitution for, or upon the
conversion of, a stock appreciation right granted by another entity with respect to equity securities in the granting entity. 
 
(rr)    “Substitute Stock Award” means a Stock Award granted in substitution
for, or upon the conversion of, a stock award granted by another entity to purchase equity securities in the granting entity. 
 
(ss)    “Termination” means that the Awardee has ceased to be, with or without
any cause or reason, an Employee, Director or Consultant. However, unless so determined by the Administrator, “Termination” shall not include a change in status from an Employee, Consultant or Director to another such status. An event that
causes an Affiliate to cease being an Affiliate shall be treated as the “Termination” of that Affiliate’s Employees, Directors, and Consultants. 
 

2.2    Rules of Interpretation.    Any reference to a “Section,” without more, is to a Section of this Plan. Captions and titles are used for convenience in this Plan
and shall not, by themselves, determine the meaning of this Plan. Except when otherwise indicated by the context, the singular includes the plural and vice versa. Any reference to a statute is also a reference to the applicable rules and regulations
adopted under that statute. Any reference to a statute, rule or regulation, or to a section of a statute, rule or regulation, is a reference to that statute, rule, regulation, or section as amended from time to time, both before and after the
effective date of this Plan and including any successor provisions. 
 

3.    Shares Subject to this Plan; Term of this Plan 
 

3.1    Number of Award Shares.    Subject to adjustment under Section 10, the maximum number of Shares that may be issued under this Plan is 2,000,000, cumulatively increased on
the first January 1 after the effective 

 

3 

date of this Plan and each January 1 thereafter for ten years, by a number of Shares equal to the least of (a) 4% of the number of Shares
issued and outstanding on the immediately preceding December 31, (b) 1,500,000 Shares, and (c) a number of Shares set by the Board. When an Award is granted, the maximum number of Shares that may be issued under this Plan shall be reduced by the
number of Shares covered by that Award. However, if an Award later terminates or expires without having been exercised in full, the maximum number of shares that may be issued under this Plan shall be increased by the number of Shares that were
covered by, but not purchased under, that Award. By contrast, the repurchase of Shares by the Company shall not increase the maximum number of Shares that may be issued under this Plan. 
 

3.2    Source of Shares.    Award Shares may be: (a) Shares that have never been issued, (b) Shares that have been issued but are no longer outstanding, or (c) Shares that are
outstanding and are acquired to discharge the Company’s obligation to deliver Award Shares. 
 

3.3    Term of this Plan 
 
(a)    This Plan shall be effective on, and Awards may be granted under this Plan after, the date it has been both adopted by the Board and approved by the Company’s
stockholders. 
 
(b)    Subject to Section 13, Awards may be granted under this Plan for a period of ten years from the earlier of the date on which the Board approves this Plan and the date the Company’s stockholders approve
this Plan. Accordingly, Awards may not be granted under the Plan after the earlier of those dates. 
 

4.    Administration 
 

4.1    General 
 
(a)    The Board shall have ultimate responsibility for administering this Plan. The Board may delegate certain of its responsibilities to a Committee, which shall consist of at
least two members of the Board. The Board or the Committee may further delegate its responsibilities to any Employee of the Company or any Affiliate. Where this Plan specifies that an action is to be taken or a determination made by the Board, only
the Board may take that action or make that determination. Where this Plan specifies that an action is to be taken or a determination made by the Committee, only the Committee may take that action or make that determination. Where this Plan
references the “Administrator,” the action may be taken or determination made by the Board, the Committee, or other Administrator. However, only the Board or the Committee may approve grants of Awards to Executives, and an Administrator
other than the Board or the Committee may grant Awards only within guidelines established by the Board or Committee. Moreover, all actions and determinations by any Administrator are subject to the provisions of this Plan. 
 
(b)    So long as the
Company has registered and outstanding a class of equity securities under Section 12 of the Exchange Act, the Committee shall consist of Company Directors who are “Non-Employee Directors” as defined in Rule 16b-3 and who are
“outside directors” as defined in Section 162(m) of the Code. 
 

4.2    Authority of Administrator.    Subject to the other provisions of this Plan, the Administrator shall have the authority to: 
 
(a)    grant Awards,
including Substitute Awards; 
 
(b)    determine the Fair Market Value of Shares; 
 
(c)    determine the Option Price and the Purchase Price of Awards; 
 
(d)    select the
Awardees; 
 
(e)    determine the times Awards are granted; 
 

4 

 
(f)    determine the number of Shares subject to each Award; 
 
(g)    determine the types of payment that may be used to purchase Award Shares; 
 
(h)    determine the
types of payment that may be used to satisfy withholding tax obligations; 
 
(i)    determine the other terms of each Award, including but not limited to the time or times at which Awards may be exercised, whether and under what conditions an Award is
assignable, and whether an Option is a Nonstatutory Option or an Incentive Stock Option; 
 
(j)    modify or amend any Award; 
 
(k)    authorize any person to sign any Award Agreement or other document
related to this Plan on behalf of the Company; 
 
(l)    determine the form of any Award Agreement or other document related to this Plan, and whether that document, including signatures, may be in electronic form; 
 
(m)    interpret this
Plan and any Award Agreement or document related to this Plan; 
 
(n)    correct any defect, remedy any omission, or reconcile any inconsistency in this Plan, any Award Agreement or any other document related to this Plan; 
 
(o)    adopt, amend, and
revoke rules and regulations under this Plan, including rules and regulations relating to sub-plans and Plan addenda; 
 
(p)    adopt, amend, and revoke special rules and procedures which may be inconsistent with the terms
of this Plan, set forth (if the Administrator so chooses) in sub-plans regarding (for example) the operation and administration of this Plan and the terms of Awards, if and to the extent necessary or useful to accommodate non-U.S. Applicable Laws
and practices as they apply to Awards and Award Shares held by, or granted or issued to, persons working or resident outside of the United States or employed by Affiliates incorporated outside the United States; 
 
(q)    determine whether
a transaction or event should be treated as a Change of Control, a Divestiture or neither; 
 
(r)    determine the effect of a Fundamental Transaction and, if the Board determines that a
transaction or event should be treated as a Change of Control or a Divestiture, then the effect of that Change of Control or Divestiture; 
 
(s)    reprice, replace, or regrant through cancellation or modification, any Award, with the consent
of the affected Awardee; and 
 
(t)    make all other determinations the Administrator deems necessary or advisable for the administration of this Plan. 
 

4.3    Scope of Discretion.    Subject to the last sentence of this Section 4.3, on all matters for which this Plan confers the authority, right or power on the Board, the
Committee, or other Administrator to make decisions, that body may make those decisions in its sole and absolute discretion. Those decisions will be final, binding and conclusive. Moreover, but again subject to the last sentence of this Section 4.3,
in making those decisions the Board, Committee or other Administrator need not treat all persons eligible to receive Awards, all Awardees, all Awards or all Award Shares the same way. However, except as provided in Section 13.3, the discretion of
the Board, Committee or other Administrator is subject to the specific provisions and specific limitations of this Plan, as well as all rights conferred on specific Awardees by Award Agreements and other agreements. 
 

5.    Persons Eligible to Receive Awards 
 

5.1    Eligible Individuals.    Awards (including Substitute Awards) may be granted to, and only to, Employees, Directors and Consultants, including to prospective Employees,
Directors and Consultants 

 

5 

conditioned on the beginning of their service for the Company or an Affiliate. However, Incentive Stock Options may only be granted to
Employees, as provided in Section 7(g). 
 

5.2    Section 162(m) Limitation. 
 
(a)    Options and SARs.    So long as the Company is a “publicly held
corporation” within the meaning of Section 162(m) of the Code: (i) no Employee or prospective Employee may be granted one or more SARs and Options within any fiscal year of the Company under this Plan to purchase more than 600,000 Shares under
Options or to receive compensation calculated with reference to more than that number of Shares under SARs, subject to adjustment under Section 10, and (ii) Options and SARs may be granted to an Executive only by the Committee (and, notwithstanding
Section 4.1(a), not by the Board). If an Option or SAR is cancelled without being exercised or if the Option Price of an Option is reduced, that cancelled or repriced Option or SAR shall continue to be counted against the limit on Awards that may be
granted to any individual under this Section 5.2. 
 
(b)    Cash Awards and Stock Awards.    Any Cash Award or Stock Award intended as “qualified performance-based compensation” within the meaning of Section 162(m) of
the Code must vest or become exercisable contingent on the achievement of one or more Objectively Determinable Performance Conditions, the Cash Award or Stock Award may be granted only by the Committee, and the material terms of the Award, including
the maximum amount payable and the payment formula, must be approved by the stockholders of the Company before such Award is paid. 
 

6.    Terms and Conditions of Options 
 
The following rules apply to all Options: 
 

6.1    Price.    No Option intended as “qualified incentive-based compensation” within the meaning of Section 162(m) of the Code may have an Option Price less than
100% of the Fair Market Value of the Shares on the Grant Date. In no event will the Option Price of any Option be less than the par value of the Shares issuable under the Option if that is required by Applicable Law. The Option Price of an Incentive
Stock Option shall be subject to Section 7(f). 
 

6.2    Term.    No Option shall be exercisable after its Expiration Date. No Option may have an Expiration Date that is more than ten years after its Grant Date.
Additional provisions regarding the term of Incentive Stock Options are provided in Sections 7(a) and 7(e). 
 

6.3    Vesting.    Options shall be exercisable: (a) on the Grant Date, or (b) in accordance with a schedule related to the Grant Date, the date the Optionee’s
directorship, employment or consultancy begins, or a different date specified in the Option Agreement. If so provided in the Option Agreement, an Option may be exercisable subject to the application of Reverse Vesting to the Option Shares.
Additional provisions regarding the vesting of Incentive Stock Options are provided in Section 7(c). No Option granted to an individual who is subject to the overtime pay provisions of the Fair Labor Standards Act may be exercised before the
expiration of six months after the Grant Date. 
 

6.4    Form of Payment. 
 
(a)    The Administrator shall determine the acceptable form and method of payment for exercising an Option. 
 
(b)    Acceptable forms of payment for all Option Shares are cash, check
or wire transfer, denominated in U.S. dollars except as specified by the Administrator for non-U.S. Employees or non-U.S. sub-plans. 
 
(c)    In addition, the Administrator may permit payment to be made by any of the following methods:

 

6 

 
(i)    other Shares, or the designation of other Shares, which (A) are “mature” shares for purposes of avoiding variable accounting treatment under generally accepted accounting principles (generally
mature shares are those that have been owned by the Optionee for more than six months on the date of surrender), and (B) have a Fair Market Value on the date of surrender equal to the Option Price of the Shares as to which the Option is being
exercised; 
 
(ii)    provided that a public market exists for the Shares, consideration received by the Company under a procedure under which a broker-dealer that is a member of the National Association of Securities Dealers
advances funds on behalf of an Optionee or sells Option Shares on behalf of an Optionee (a “Cashless Exercise Procedure”), provided that if the Company extends or arranges for the extension of credit to an Optionee under any
Cashless Exercise Procedure, no Officer or Director may participate in that Cashless Exercise Procedure; 
 
(iii)    with respect only to Optionees who are neither Officers nor Directors as of the date of
exercise, one or more promissory notes meeting the requirements of Section 6.4(e); 
 
(iv)    cancellation of any debt owed by the Company or any Affiliate to the Optionee by the Company
including without limitation waiver of compensation due or accrued for services previously rendered to the Company; and 
 
(v)    any combination of the methods of payment permitted by any paragraph of this Section 6.4.

 
(d)    The
Administrator may also permit any other form or method of payment for Option Shares permitted by Applicable Law. 
 
(e)    The promissory notes referred to in Section 6.4(c)(iii) must be full recourse. Unless the
Committee specifies otherwise after taking into account any relevant accounting issues, the notes shall bear interest at a fair market value rate when the Option is exercised. Interest on the notes shall also be at least sufficient to avoid
imputation of interest under Sections 483, 1274, and 7872 of the Code. The notes and their administration shall at all times comply with any applicable margin rules of the Federal Reserve. The portion of the Option Price equal to the par value of
the Shares shall in all events be paid in cash. The notes may also include such other terms as the Administrator specifies. Payment may not be made by promissory note by Officers or Directors if Shares are registered under Section 12 of the Exchange
Act. 
 

6.5    Nonassignability of Options.    Except as determined by the Administrator and expressly set forth in any Option Agreement, no Option shall be assignable or otherwise
transferable by the Optionee except by will or by the laws of descent and distribution. However, Options may be transferred and exercised in accordance with a Domestic Relations Order and may be exercised by a guardian or conservator appointed to
act for the Optionee. Incentive Stock Options may only be assigned in compliance with Section 7(h). 
 

6.6    Substitute Options.    The Board may cause the Company to grant Substitute Options in connection with the acquisition by the Company or an Affiliate of equity securities
of any entity (including by merger, tender offer, or other similar transaction) or of all or a portion of the assets of any entity. Any such substitution shall be effective when the acquisition closes. Substitute Options may be Nonstatutory Options
or Incentive Stock Options. Unless and to the extent specified otherwise by the Board, Substitute Options shall have the same terms and conditions as the options they replace, except that (subject to Section 10) Substitute Options shall be Options
to purchase Shares rather than equity securities of the granting entity and shall have an Option Price determined by the Board. 
 

7.    Incentive Stock Options 
 
The following rules apply only to Incentive Stock Options and only to the extent these rules are more restrictive than the rules that would otherwise apply under this Plan. With the consent of the
Optionee, or where this Plan provides that an action may be taken notwithstanding any other provision of this Plan, the Administrator may deviate from the requirements of this Section, notwithstanding that any Incentive Stock Option modified by the
Administrator will thereafter be treated as a Nonstatutory Option. 
 

7 

 
(a)    The Expiration Date of an Incentive Stock Option shall not be later than ten years from its Grant Date, with the result that no Incentive Stock Option may be exercised after the expiration of ten years from
its Grant Date. 
 
(b)    No Incentive Stock Option may be granted more than ten years from the date this Plan was approved by the Board. 
 
(c)    Options intended to be incentive stock options under Section 422 of the Code that are granted
to any single Optionee under all incentive stock option plans of the Company and its Affiliates, including incentive stock options granted under this Plan, may not vest at a rate of more than $100,000 in Fair Market Value of stock (measured on the
grant dates of the options) during any calendar year. For this purpose, an option vests with respect to a given share of stock the first time its holder may purchase that share, notwithstanding any right of the Company to repurchase that share.
Unless the administrator of that option plan specifies otherwise in the related agreement governing the option, this vesting limitation shall be applied by, to the extent necessary to satisfy this $100,000 rule, treating certain stock options that
were intended to be incentive stock options under Section 422 of the Code as Nonstatutory Options. The stock options or portions of stock options to be reclassified as Nonstatutory Options are those with the highest option prices, whether granted
under this Plan or any other equity compensation plan of the Company or any Affiliate that permits that treatment. This Section 7(c) shall not cause an Incentive Stock Option to vest before its original vesting date or cause an Incentive Stock
Option that has already vested to cease to be vested. 
 
(d)    In order for an Incentive Stock Option to be exercised for any form of payment other than those described in Section 6.4(b), that right must be stated at the time of grant in the Option Agreement
relating to that Incentive Stock Option. 
 
(e)    Any Incentive Stock Option granted to a Ten Percent Stockholder, must have an Expiration Date that is not later than five years from its Grant Date, with the result that no such Option may be exercised
after the expiration of five years from the Grant Date. A “Ten Percent Stockholder” is any person who, directly or by attribution under Section 424(d) of the Code, owns stock possessing more than ten percent of the total
combined voting power of all classes of stock of the Company or of any Affiliate on the Grant Date. 
 
(f)    The Option Price of an Incentive Stock Option shall never be less than the Fair Market Value of
the Shares at the Grant Date. The Option Price for the Shares covered by an Incentive Stock Option granted to a Ten Percent Stockholder shall never be less than 110% of the Fair Market Value of the Shares at the Grant Date. 
 
(g)    Incentive Stock
Options may be granted only to Employees. If an Optionee changes status from an Employee to a Consultant, that Optionee’s Incentive Stock Options become Nonstatutory Options if not exercised within the time period described in Section 7(i).

 
(h)    No
rights under an Incentive Stock Option may be transferred by the Optionee, other than by will or the laws of descent and distribution. During the life of the Optionee, an Incentive Stock Option may be exercised only by the Optionee. The
Company’s compliance with a Domestic Relations Order, or the exercise of an Incentive Stock Option by a guardian or conservator appointed to act for the Optionee, shall not violate this Section 7(h). 
 
(i)    An Incentive Stock
Option shall be treated as a Nonstatutory Option if it remains exercisable after, and is not exercised within, the three-month period beginning with the Optionee’s Termination for any reason other than the Optionee’s death or disability
(as defined in Section 22(c) of the Code). In the case of Termination due to death, an Incentive Stock Option shall continue to be treated as an Incentive Stock Option if it remains exercisable after, and is not exercised within, the three-month
period after the Optionee’s Termination provided it is exercised before the Expiration Date. In the case of Termination due to disability, an Incentive Stock Option shall be treated as a Nonstatutory Option if it remains exercisable after, and
is not exercised within, one year after the Optionee’s Termination. 
 

8 

 
(j)    An Incentive Stock Option may only be modified by the Board. 
 

8.    Stock Appreciation Rights, Stock Awards and Cash Awards 
 

8.1    Stock Appreciation Rights.    The following rules apply to SARs: 
 
(a)    Term.    No SAR shall be exercisable after its
Expiration Date. No SAR may have an Expiration Date that is more than ten years after its Grant Date. 
 
(b)    Vesting.    SARs shall be exercisable: (i) on the
Grant Date, (ii) in accordance with a schedule related to the Grant Date, the date the Awardee’s directorship, employment or consultancy begins, or a different date specified in the Award Agreement, or (iii) or upon the achievement of
Objectively Determinable Performance Conditions. 
 
(c)    Exercise of SARs.    Upon the exercise of an SAR, in whole or in part, an Awardee shall be entitled to a payment in an amount equal to the excess of the
Fair Market Value of a fixed number of Shares covered by the exercised portion of the SAR on the date of exercise, over the Fair Market Value of the Shares covered by the exercised portion of the SAR on the Grant Date. The amount due to the Awardee
the exercise of a SAR will be paid in cash or Shares over the period or periods specified in the Award Agreement. An Award Agreement may place limits on the amount that may be paid over any specified period or periods upon the exercise of a SAR, on
an aggregate basis or as to any Awardee. A SAR shall be considered exercised when the Company receives written notice of exercise in accordance with the terms of the Award Agreement from the person entitled to exercise the SAR. 
 
(d)    Nonassignability of SARs.    Except as determined by the Administrator and expressly set forth in any Award Agreement, no SAR shall be assignable or otherwise
transferable by the Awardee except by will or by the laws of descent and distribution. However, SARs may be transferred and exercised in accordance with a Domestic Relations Order. 
 
(e)    Substitute SARs.    The
Board may cause the Company to grant Substitute SARs in connection with the acquisition by the Company or an Affiliate of equity securities of any entity (including by merger) or all or a portion of the assets of any entity. Any such substitution
shall be effective when the acquisition closes. Unless and to the extent specified otherwise by the Board, Substitute SARs shall have the same terms and conditions as the options they replace, except that (subject to Section 10) Substitute SARs
shall be exercisable with respect to the Fair Market Value of Shares rather than equity securities of the granting entity and shall be on terms that, as determined by the Board in its sole and absolute discretion, properly reflects the substitution.

 

8.2    Stock Awards.    The following rules apply to all Stock Awards: 
 
(a)    Price.    No Stock Award may have a Purchase Price
less than 85% of the Fair Market Value of the Shares on the Grant Date or on the date on which the purchase is completed. In no event will the Purchase Price of any Stock Award be less than the par value of the Shares issuable under the Stock Award
if that is required by Applicable Law. 
 
(b)    Term.    No Stock Award shall be exercisable after its Expiration Date. No Stock Award may have an Expiration Date that is more than ten years after its Grant Date. 
 
(c)    Vesting.    Stock Awards shall be exercisable: (i) on the Grant Date, or (ii) in accordance with a schedule related to the Grant Date, the date the Awardee’s directorship,
employment or consultancy begins, or a different date specified in the Award Agreement. 
 
(d)    Right of Repurchase.    If so provided in the Award Agreement, Award
Shares acquired pursuant to a Stock Award may be subject to Reverse Vesting. 
 

9 

 
(e)    Form of Payment.    The Administrator shall determine the acceptable form and method of payment for exercising a Stock Award. 
 
(i)    Acceptable forms
of payment for all Award Shares are cash, check or wire transfer, denominated in U.S. dollars except as specified by the Administrator for non-U.S. Employees or non-U.S. sub-plans. 
 
(ii)    In addition, the Administrator may permit payment to be made by
any of the methods permitted with respect to the exercise of Options pursuant to Section 6.4. 
 
(f)    Nonassignability of Stock Awards.    Except as determined by the
Administrator and expressly set forth in any Award Agreement, no Stock Award shall be assignable or otherwise transferable by the Awardee except by will or by the laws of descent and distribution. However, Options may be transferred and exercised in
accordance with a Domestic Relations Order. 
 
(g)    Substitute Stock Award.    The Board may cause the Company to grant Substitute Stock Awards in connection with the acquisition by the Company or an Affiliate of
equity securities of any entity (including by merger) or all or a portion of the assets of any entity. Unless and to the extent specified otherwise by the Board, Substitute Stock Awards shall have the same terms and conditions as the options they
replace, except that (subject to Section 10) Substitute Stock Awards shall be Stock Awards to purchase Shares rather than equity securities of the granting entity and shall have a Purchase Price that, as determined by the Board in its sole and
absolute discretion, properly reflects the substitution. 
 
(h)    Maximum Number of Stock Awards.    The maximum aggregate number of Shares that may be issued pursuant to Stock Awards under this Plan shall not exceed ten percent (10%)
of the number of Shares that may be issued pursuant to this Plan under Section 3.1. 
 

8.3    Cash Awards.    The following rules apply to all Cash Awards: 
 
(a)    Term.    No Cash Award shall be payable after its Expiration Date.
No Cash Award may have an Expiration Date that is more than ten years after its Grant Date. 
 
(b)    Vesting.    Cash Awards shall be payable: (i) on the Grant Date,
(ii) in accordance with a schedule related to the Grant Date, the date the Awardee’s directorship, employment or consultancy begins, or a different date specified in the Award Agreement, or (iii) or upon the achievement of Objectively
Determinable Performance Conditions. 
 

9.    Exercise of Awards 
 

9.1    In General.    An Award shall be exercisable in accordance with this Plan and the Award Agreement under which it is granted. 
 

9.2    Time of Exercise.    Options and Stock Awards shall be considered exercised when the Company receives: (a) written notice of exercise from the person entitled to exercise
the Option or Stock Award, (b) full payment, or provision for payment, in a form and method approved by the Administrator, for the Shares for which the Option or Stock Award is being exercised, and (c) with respect to Nonstatutory Options, payment,
or provision for payment, in a form approved by the Administrator, of all applicable withholding taxes due upon exercise. An Award may not be exercised for a fraction of a Share. SARs and Cash Awards shall be considered exercised when the Company
receives written notice of the exercise from the person entitled to exercise the SAR or Cash Award. 
 

9.3    Issuance of Award Shares.    The Company shall issue Award Shares in the name of the person properly exercising the Award. If the Awardee is that person and so requests,
the Award Shares shall be issued in the name of the Awardee and the Awardee’s spouse. The Company shall endeavor to issue Award Shares promptly after an Award is exercised. However, until Award Shares are actually issued, as evidenced by the
appropriate entry on the stock books of the Company or its transfer agent, the Awardee will not have the rights of a stockholder with respect to those Award Shares, even though the Awardee has completed all the steps 

 

10 

necessary to exercise the Award. No adjustment shall be made for any dividend, distribution, or other right for which the record date
precedes the date the Award Shares are issued, except as provided in Section 10. 
 

9.4    Termination 
 
(a)    In General.    Except as provided in an Award Agreement or in writing by the Administrator, and as otherwise provided in Sections 9.4(b), (c), (d)
and (e), after an Awardee’s Termination, the Awardee’s Awards shall be exercisable to the extent (but only to the extent) they are vested on the date of that Termination and only during the 90 days after the Termination, but in no
event after the Expiration Date. To the extent the Awardee does not exercise an Award within the time specified for exercise, the Award shall automatically terminate. 
 
(b)    Leaves of Absence.    Unless otherwise
provided in the Award Agreement or in writing by the Administrator, no Award may be exercised more than three months after the beginning of a leave of absence, other than a personal or medical leave approved by an authorized representative of the
Company with employment guaranteed upon return. Awards shall continue to vest during a leave of absence of not more than three months, unless otherwise determined by the Administrator with respect to an approved personal or medical leave with
employment guaranteed upon return. 
 
(c)    Death or Disability.    Unless otherwise provided in the Award Agreement or in writing by the Administrator, if an Awardee’s Termination is due to death or disability (as
determined by the Administrator with respect to all Awards other than Incentive Stock Options and as defined by Section 22(e) of the Code with respect to Incentive Stock Options), all Awards of that Awardee to the extent exercisable at the date of
that Termination may be exercised for one year after that Termination, but in no event after the Expiration Date. In the case of Termination due to death, an Award may be exercised as provided in Section 16. In the case of Termination due to
disability, if a guardian or conservator has been appointed to act for the Awardee and been granted this authority as part of that appointment, that guardian or conservator may exercise the Award on behalf of the Awardee. Death or disability
occurring after an Awardee’s Termination shall not cause the Termination to be treated as having occurred due to death or disability. In the case of an Awardee who dies or become disabled within three months after Termination, if the
Termination was not due to Cause, the Awardee’s Awards may be exercised for one year after that Termination. To the extent an Award is not so exercised within the time specified for its exercise, the Award shall automatically terminate.

 
(d)    Divestiture.    If an Awardee’s Termination is due to a Divestiture, the Board may take any one or more of the actions described in Section 10.3 or 10.4 with respect to the
Awardee’s Awards. 
 
(e)    Termination for Cause.    If an Awardee’s Termination is due to Cause, all of the Awardee’s Awards shall automatically terminate and cease to be exercisable at the time
of Termination and the Administrator may rescind any and all exercises of Awards by the Awardee that occurred after the first event constituting Cause. “Cause” means employment-related dishonesty, fraud, misconduct or disclosure or misuse
of confidential information, or other employment-related conduct that is likely to cause significant injury to the Company, an Affiliate, or any of their respective employees, officers or directors (including, without limitation, commission of a
felony or similar offense), in each case as determined by the Administrator. “Cause” shall not require that a civil judgment or criminal conviction have been entered against or guilty plea shall have been made by the Awardee regarding any
of the matters referred to in the previous sentence. Accordingly, the Administrator shall be entitled to determine “Cause” based on the Administrator’s good faith belief. If the Awardee is criminally charged with a felony or similar
offense, that shall be a sufficient, but not a necessary, basis for such a belief. 
 
(f)    Reverse Vesting.    Under any circumstances stated in this Section
9.4 in which all unvested Options of an Optionee immediately vest, the Company’s repurchase rights shall lapse on all Option Shares held by that Optionee which are subject to Reverse Vesting. 
 
(g)    Consulting or
Employment Relationship.    Nothing in this Plan or in any Award Agreement, and no Award or the fact that Award Shares remain subject to repurchase rights, shall: (A) interfere with or 

 

11 

	 	 
limit the right of the Company or any Affiliate to terminate the employment or consultancy of any Awardee at any time, whether with or
without cause or reason, and with or without the payment of severance or any other compensation or payment, or (B) interfere with the application of any provision in any of the Company’s or any Affiliate’s charter documents or Applicable
Law relating to the election, appointment, term of office, or removal of a Director. 

 

10.    Certain Transactions and Events 
 

10.1    In General.    Except as provided in this Section 10, no change in the capital structure of the Company, merger, sale or other disposition of assets or a subsidiary,
change of control, issuance by the Company of shares of any class of securities convertible into shares of any class, conversion of securities, or other transaction or event shall require or be the occasion for any adjustments of the type described
in this Section 10. Additional provisions with respect to the foregoing transactions are set forth in Section 13.3. 
 

10.2    Changes in Capital Structure.    In the event of any stock split, reverse stock split, recapitalization, combination or reclassification of stock, stock dividend,
spin-off, or similar change to the capital structure of the Company (not including a Fundamental Transaction or Change of Control), the Board shall make whatever adjustments it concludes are appropriate to: (a) the number and type of Awards that may
be granted under this Plan, (b) the number and type of Options that may be granted to any individual under this Plan, (c) the Terms of any SAR, (d) the Purchase Price of any Stock Award, and (e) the Option Price and number and class of securities
issuable under each outstanding Option, and (f) the repurchase price of any securities substituted for Option Shares that are subject to repurchase rights. The specific adjustments shall be determined by the Board. Unless the Board specifies
otherwise, any securities issuable as a result of any such adjustment shall be rounded to the next lower whole security. The Board need not adopt the same rules for each Award or each Awardee. 
 

10.3    Fundamental Transactions.    If the Company merges with another entity in a transaction in which the Company is not the surviving entity or if, as a result of any other
transaction or event, other securities are substituted for the Shares or Shares may no longer be issued (each a “Fundamental Transaction”), then, notwithstanding any other provision of this Plan, the Board shall
do one or more of the following contingent on the closing or completion of the Fundamental Transaction: (a) arrange for the substitution, in exchange for Awards, of options to purchase equity securities other than Shares (including, if appropriate,
equity securities of an entity other than the Company) (an “assumption” of Awards) on such terms and conditions as the Board determines are appropriate, (b) accelerate the vesting and termination of outstanding Awards, in whole or in part,
so that Awards can be exercised before or otherwise in connection with the closing or completion of the Fundamental Transaction or event but then terminate, and (c) cancel or arrange for the cancellation of Awards in exchange for cash payments to
Awardees, and (d) either arrange for any repurchase rights of the Company with respect to Award Shares to apply to the securities issued in substitution for Shares or terminate repurchase rights on Award Shares. The Board need not adopt the same
rules for each Award or each Awardee. 
 

10.4    Changes of Control.    The Board may also, but need not, specify that other transactions or events constitute a “Change of
Control”. The Board may do that either before or after the transaction or event occurs. Examples of transactions or events that the Board may treat as Changes of Control are: (a) the Company or an Affiliate is a party to a
merger, consolidation, amalgamation, or other transaction in which the beneficial stockholders of the Company, immediately before the transaction, beneficially own securities representing 50% or less of the total combined voting power or value of
the Company immediately after the transaction, (b) any person or entity, including a “group” as contemplated by Section 13(d)(3) of the Exchange Act, acquires securities holding [50%] or more of the total combined voting power or value of
the Company, or (c) as a result of or in connection with a contested election of Company Directors, the persons who were Company Directors immediately before the election cease to constitute a majority of the Board. In connection with a Change of
Control, notwithstanding any other provision of this Plan, the Board may take any one or more of the actions described in Section 10.3. In addition, the Board may extend the date for the exercise of Awards (but not beyond their original Expiration
Date). The Board need not adopt the same rules for each Award or each Awardee. 
 

12 

 

10.5    Divestiture.    If the Company or an Affiliate sells or otherwise transfers equity securities of an Affiliate to a person or entity other than the Company or an
Affiliate, or leases, exchanges or transfers all or any portion of its assets to such a person or entity, then the Board may specify that such transaction or event constitutes a “Divestiture”. In connection with
a Divestiture, notwithstanding any other provision of this Plan, the Board may take one or more of the actions described in Section 10.3 or 10.4 with respect to Awards or Award Shares held by, for example, Employees, Directors or Consultants for
whom that transaction or event results in a Termination. The Board need not adopt the same rules for each Award or each Awardee. 
 

10.6    Dissolution.    If the Company adopts a plan of dissolution, the Board may cause Awards to be fully vested and exercisable (but not after their Expiration Date) before
the dissolution is completed but contingent on its completion and may cause the Company’s repurchase rights on Award Shares to lapse upon completion of the dissolution. The Board need not adopt the same rules for each Award or each Awardee.
However, to the extent not exercised before the earlier of the completion of the dissolution or their Expiration Date, Awards shall terminate just before the dissolution is completed. 
 

10.7    Cut-Back to Preserve Benefits.    If the Administrator determines that the net after-tax amount to be realized by any Awardee, taking into account any accelerated
vesting, termination of repurchase rights, or cash payments to that Awardee in connection with any transaction or event addressed in this Section 10 would be greater if one or more of those steps were not taken or payments were not made with respect
to that Awardee’s Awards or Award Shares, then and to that extent one or more of those steps shall not be taken and payments shall not be made. 
 

11.    Withholding and Tax Reporting 
 

11.1    Tax Withholding Alternatives 
 
(a)    General.    Whenever Award Shares are issued or become free of restrictions, the Company may require the Awardee to remit to the Company an amount
sufficient to satisfy any applicable tax withholding requirement, whether the related tax is imposed on the Awardee or the Company. The Company shall have no obligation to deliver Award Shares or release Award Shares from an escrow or permit a
transfer of Award Shares until the Awardee has satisfied those tax withholding obligations. Whenever payment in satisfaction of Awards is made in cash, the payment will be reduced by an amount sufficient to satisfy all tax withholding requirements.

 
(b)    Method of
Payment.    The Awardee shall pay any required withholding using the forms of consideration described in Section 6.4(b), except that, in the discretion of the Administrator, the Company may also permit the Awardee to use any
of the forms of payment described in Section 6.4(c). The Administrator may also permit Award Shares to be withheld to pay required withholding. If the Administrator permits Award Shares to be withheld, the Fair Market Value of the Award Shares
withheld, as determined as of the date of withholding, shall not exceed the amount determined by the applicable minimum statutory withholding rates. 
 

11.2    Reporting of Dispositions.    Any holder of Option Shares acquired under an Incentive Stock Option shall promptly notify the Administrator, following such procedures as
the Administrator may require, of the sale or other disposition of any of those Option Shares if the disposition occurs during: (a) the longer of two years after the Grant Date of the Incentive Stock Option and one year after the date the Incentive
Stock Option was exercised, or (b) such other period as the Administrator has established. 
 

12.    Compliance with Law 
 
The grant of Awards and the issuance and subsequent transfer of Award Shares shall be subject to compliance with all Applicable Law, including all applicable securities laws. Awards may not be
exercised, and Award Shares may not be transferred, in violation of Applicable Law. Thus, for example, Awards may not be exercised unless: (a) a registration statement under the Securities Act is then in effect with respect to the related 

 

13 

Award Shares, or (b) in the opinion of legal counsel to the Company, those Award Shares may be issued in accordance with an applicable
exemption from the registration requirements of the Securities Act and any other applicable securities laws. The failure or inability of the Company to obtain from any regulatory body the authority considered by the Company’s legal counsel to
be necessary or useful for the lawful issuance of any Award Shares or their subsequent transfer shall relieve the Company of any liability for failing to issue those Award Shares or permitting their transfer. As a condition to the exercise of any
Award or the transfer of any Award Shares, the Company may require the Awardee to satisfy any requirements or qualifications that may be necessary or appropriate to comply with or evidence compliance with any Applicable Law. 
 

13.    Amendment or Termination of this Plan or Outstanding Awards 
 

13.1    Amendment and Termination.    The Board may at any time amend, suspend, or terminate this Plan. 
 

13.2    Stockholder Approval.    The Company shall obtain the approval of the Company’s stockholders for any amendment to this Plan if stockholder approval is necessary or
desirable to comply with any Applicable Law or with the requirements applicable to the grant of Awards intended to be Incentive Stock Options. The Board may also, but need not, require that the Company’s stockholders approve any other
amendments to this Plan. 
 

13.3    Effect.  No amendment, suspension, or termination of this Plan, and no modification of any Award even in the absence of an amendment, suspension, or termination of this Plan,
shall impair any existing contractual rights of any Awardee unless the affected Awardee consents to the amendment, suspension, termination, or modification. However, no such consent shall be required if the Board determines, in its sole and absolute
discretion, that the amendment, suspension, termination, or modification: (a) is required or advisable in order for the Company, the Plan or the Award to satisfy Applicable Law, to meet the requirements of any accounting standard or to avoid any
adverse accounting treatment, or (b) in connection with any transaction or event described in Section 10, is in the best interests of the Company or its stockholders. The Board may, but need not, take the tax consequences to affected Awardees into
consideration in acting under the preceding sentence. Those decisions will be final, binding and conclusive. Termination of this Plan shall not affect the Administrator’s ability to exercise the powers granted to it under this Plan with respect
to Awards granted before the termination or Award Shares issued under such Awards even if those Award Shares are issued after the termination. 
 

14.    Reserved Rights 
 

14.1    Nonexclusivity of this Plan.    This Plan shall not limit the power of the Company or any Affiliate to adopt other incentive arrangements including, for example, the
grant or issuance of stock options, stock, or other equity-based rights under other plans or independently of any plan. 
 

14.2    Unfunded Plan.    This Plan shall be unfunded. Although bookkeeping accounts may be established with respect to Awardees, any such accounts will be used merely as a
convenience. The Company shall not be required to segregate any assets on account of this Plan, the grant of Awards, or the issuance of Award Shares. The Company and the Administrator shall not be deemed to be a trustee of stock or cash to be
awarded under this Plan. Any obligations of the Company to any Awardee shall be based solely upon contracts entered into under this Plan, such as Award Agreements. No such obligations shall be deemed to be secured by any pledge or other encumbrance
on any assets of the Company. Neither the Company nor the Administrator shall be required to give any security or bond for the performance of any such obligations. 
 

15.    Special Arrangements Regarding Award Shares 
 

15.1    Escrows and Pledges.    To enforce any restrictions on Award Shares including restrictions related to Reverse Vesting, the Administrator may require their holder to
deposit the certificates representing Award 

 

14 

Shares, with stock powers or other transfer instruments approved by the Administrator endorsed in blank, with the Company or an agent of the
Company to hold in escrow until the restrictions have lapsed or terminated. The Administrator may also cause a legend or legends referencing the restrictions to be placed on the certificates. Any Awardee who delivers a promissory note as partial or
full consideration for the purchase of Award Shares will be required to pledge and deposit with the Company some or all of the Award Shares as collateral to secure the payment of the note. However, the Administrator may require or accept other or
additional forms of collateral to secure the note and, in any event, the Company will have full recourse against the maker of the note, notwithstanding any pledge or other collateral. 
 

15.2    Repurchase Rights 
 
(a)    Reverse Vesting.    If an Option or Stock Award is subject to Reverse Vesting, the Company shall have the right, during the seven months
after the Awardee’s Termination, to repurchase any or all of the Award Shares that were unvested as of the date of that Termination. If the Award Shares were purchased with a promissory note, the repurchase price shall be the lower of: the
Option Price or Purchase Price for such Shares, (minus the amount of any cash dividends paid or payable with respect to the Award Shares for which the record date precedes the repurchase) and the Fair Market Value at the date of Termination. In all
other cases, the repurchase price shall be determined by the Administrator in accordance with this Section 15.2. The repurchase determined by the Administrator shall be either (i) the Option Price or Purchase Price for the Award Shares (minus the
amount of any cash dividends paid or payable with respect to the Award Shares for which the record date precedes the repurchase) or (ii) the lower of (A) the Option Price or Purchase Price for the Shares or (B) the Fair Market Value of those Option
Shares as of the date of the Termination. The repurchase price shall be paid in cash or, if the Option Shares were purchased in whole or in part with a promissory note, cancellation of indebtedness under that note, or a combination of those means.
The Company may assign this right of repurchase. 
 
(b)    Procedure.  The Company or its assignee may choose to give the Awardee a written notice of exercise of its repurchase rights under this Section 15.2. However, the Company’s failure to
give such a notice shall not affect its rights to repurchase Award Shares. The Company must, however, tender the repurchase price during the period specified in this Section 15.2 for exercising its repurchase rights in order to exercise such rights.

 

15.3    Market Standoff.    If requested by the Company or a representative of its underwriters in connection with a registration of any securities of the Company under the
Securities Act, Awardees or certain Awardees shall be prohibited from selling some or all of their Award Shares during a period not to exceed 180 days after the effective date of the Company’s registration statement. This restriction shall not
apply to any registration statement on Form S-8, Form S-4 or an equivalent registration statement. 
 

16.    Beneficiaries 
 
An Awardee may file a written designation of one or more beneficiaries who are to receive the Awardee’s rights under the Awardee’s Awards after the Awardee’s death. An Awardee may change such a designation at
any time by written notice. If an Awardee designates a beneficiary, the beneficiary may exercise the Awardee’s Awards after the Awardee’s death. If an Awardee dies when the Awardee has no living beneficiary designated under this Plan, the
Company shall allow the executor or administrator of the Awardee’s estate to exercise the Award or, if there is none, the person entitled to exercise the Option under the Awardee’s will or the laws of descent and distribution. In any case,
no Award may be exercised after its Expiration Date. 
 

17.    Miscellaneous 
 

17.1    Governing Law.    This Plan, the Award Agreements and all other agreements entered into under this Plan, and all actions taken under this Plan or in connection with
Awards or Award Shares, shall be governed by the substantive laws, but not the choice of law rules, of the State of Delaware. 
 

15 

 

17.2    Determination of Value.    Fair Market Value shall be determined as follows: 
 
(a)    Listed Stock.    If the Shares are traded on any established stock exchange or
quoted on a national market system, Fair Market Value shall be the closing sales price for the Shares as quoted on that stock exchange or system for the date the value is to be determined (the “Value Date”) as reported in
TheWall Street Journal or a similar publication. If no sales are reported as having occurred on the Value Date, Fair Market Value shall be that closing sales price for the last preceding trading day on which sales of Shares are
reported as having occurred. If no sales are reported as having occurred during the five trading days before the Value Date, Fair Market Value shall be the closing bid for Shares on the Value Date. If Shares are listed on multiple exchanges or
systems, Fair Market Value shall be based on sales or bids on the primary exchange or system on which Shares are traded or quoted. 
 
(b)    Stock Quoted by Securities Dealer.    If Shares are regularly quoted by a recognized
securities dealer but selling prices are not reported on any established stock exchange or quoted on a national market system, Fair Market Value shall be the mean between the high bid and low asked prices on the Value Date. If no prices are quoted
for the Value Date, Fair Market Value shall be the mean between the high bid and low asked prices on the last preceding trading day on which any bid and asked prices were quoted. 
 
(c)    No Established Market.    If Shares are not traded on
any established stock exchange or quoted on a national market system and are not quoted by a recognized securities dealer, the Board or Committee will determine Fair Market Value in good faith. The Board or Committee will consider the following
factors, and any others it considers significant, in determining Fair Market Value: (i) the price at which other securities of the Company have been issued to purchasers other than Employees, Directors, or Consultants, (ii) the Company’s net
worth, prospective earning power, dividend-paying capacity, and non-operating assets, if any, and (iii) any other relevant factors, including the economic outlook for the Company and the Company’s industry, the Company’s position in that
industry, the Company’s goodwill and other intellectual property, and the values of securities of other businesses in the same industry. 
 

17.3    Reservation of Shares.    During the term of this Plan, the Company will at all times reserve and keep available such number of Shares as are still issuable under this
Plan. 
 

17.4    Electronic Communications.    Any Award Agreement, notice of exercise of an Award, or other document required or permitted by this Plan may be delivered in writing or,
to the extent determined by the Administrator, electronically. Signatures may also be electronic if permitted by the Administrator. 
 

17.5    Notices.    Unless the Administrator specifies otherwise, any notice to the Company under any Option Agreement or with respect to any Awards or Award Shares shall be in
writing (or, if so authorized by Section 17.4, communicated electronically), shall be addressed to the Secretary of the Company, and shall only be effective when received by the Secretary of the Company. 
 
Adopted by the Board on: April 17, 2003 
 
Approved by the stockholders
on:                                       
            
 
Effective date of this
Plan:                                       
                         
 

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