Document:

exv10w38

Exhibit 10.38

AMENDMENT TO

AMENDED AND RESTATED LICENSE,

DEVELOPMENT AND COMMERCIALIZATION AGREEMENT

     This Amendment to Amended and Restated License, Development and Commercialization Agreement
(the “Amendment”) is entered into effective as of April 15, 2010 (the “Effective
Date”) by and between Vanda Pharmaceuticals Inc., a Delaware corporation (“Vanda”), and
Bristol-Myers Squibb Company, a Delaware corporation (“BMS”).

     WHEREAS, Vanda and BMS are parties to that certain Amended and Restated License, Development
and Commercialization Agreement effective February 25, 2004, as amended to date (the “License
Agreement”) relating to certain compounds including tasimelteon (VEC-162, formerly designated
as BMS-214778); and

     WHEREAS, Vanda and BMS desire to amend and restate certain provisions of the License Agreement
as set forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
Vanda and BMS agree as follows.

     1. All capitalized terms used in this Amendment shall have the meaning ascribed to such terms
in the License Agreement, unless otherwise specified herein. Unless otherwise expressly stated,
the Sections referred to herein refer to the Sections in the License Agreement.

     2. Section 1.33 of the License Agreement is hereby amended and restated to read in its
entirety as follows:

“1.33 “MGH License Agreement” means the agreement between The General Hospital Corporation
d/b/a Massachusetts General Hospital (“MGH”), Vanda and BMS that is currently being
negotiated and that will be entered into after the Effective Date, and as it may be modified
or supplemented after being entered into, under which Vanda will be obligated to pay MGH
certain payments in connection with the development and commercialization of Products.”

     3. Section 3.1.1 of the License Agreement is hereby amended and restated to read in its
entirety as follows:

“3.1.1 Vanda Development Option Period. Vanda will have the right, anytime prior to filing
an NDA for a Product (“Vanda Third Party Development Option Period”), to negotiate an
agreement to sublicense Vanda’s rights to Develop and Commercialize a Product (a
“Development and Commercialization Agreement”) with a Third Party in at least one Major
Market Country (“Vanda Third Party Development Option”); provided, however, that with
respect to each Product, upon Vanda locking the database for Vanda’s first Phase III
Clinical Study for the Product, Vanda shall have a limited time in which to exercise the
Vanda Third Party Development Option for the Product before the right to exercise such
option is suspended. Vanda shall have one hundred twenty (120) days from the date Vanda
locks the database for Vanda’s first Phase III Clinical Study for the Product to exercise
such option. If Vanda exercises such option during such one hundred twenty (120) day
period, BMS shall have a right of first negotiation to enter into a Development and
Commercialization Agreement for the Product with Vanda. BMS shall have a thirty (30) day
review period, from the receipt of Vanda’s written notice to seek a Third Party partner, to
elect to enter into negotiations with Vanda. During the

 

thirty (30) day review period, Vanda shall timely provide BMS with copies of any reports,
data, results or information, material to the Development of the Product that are or may
become available, including but not limited to those relating to the first Phase III
Clinical Study for the Product. Thereafter, BMS will have a ninety (90) day period of
exclusivity in which to negotiate and execute a Development and Commercialization Agreement,
and Vanda shall negotiate in good faith during such ninety (90) day period. During such
thirty (30) day review period and such ninety (90) day period of exclusivity, Vanda shall
not approach any Third Party concerning a Development and Commercialization Agreement or
disclose any of the Phase III Clinical Study data, results or conclusions to any Third Party
that may potentially enter into a Development and Commercialization Agreement for the
Product. If, during the thirty (30) day review period BMS does not formally notify Vanda in
writing of its intention to enter into a Development and Commercialization Agreement or
informs Vanda that it is not interested in entering into such an agreement or if BMS does
notify Vanda of its intention to enter into such an agreement but does not enter into a such
an agreement for the Product during such ninety (90) day period of exclusivity, then Vanda
shall have until the end of day of the earlier of (a) the day immediately prior to the day
that the BMS Option Period commences as specified in Section 3.2.1 and (b) May 31, 2013, to
negotiate and enter into a Development and Commercialization Agreement with a Third Party
for the Product. If Vanda does not enter into such an agreement with a Third Party prior to
the earlier of (i) the commencement of the BMS Option Period as specified in Section 3.2.1
and (ii) June 1, 2013 (the “Option Suspension Date”), then the Vanda Third Party Development
Option shall be suspended from the Option Suspension Date until the end of the BMS Option
Period for the Product. The Vanda Third Party Development Option is exercisable by written
notice from Vanda to BMS of Vanda’s intention to seek a Third Party partner. Such option
shall be exercisable on a Product-by-Product and on a Major Market Country-by-Major Market
Country basis. For the avoidance of doubt, rights to Develop and Commercialize a Product in
non-Major Market Countries may be included in the Development and Commercialization
Agreement for a Major Market Country. With respect to a Product, the Major Market Countries
together with all other countries that are not included in a Development and
Commercialization Agreement for the Product shall be referred to as the “Remaining
Countries.”

     4. Section 3.2.1 of the License Agreement is hereby amended and restated to read in its
entirety as follows:

     “3.2.1 BMS Option Period. The BMS Option Period for a Product will commence for the
Remaining Countries (providing Vanda has not entered into one or more Development and
Commercialization Agreements for the Product which when taken together include all of the
Major Market Countries prior to the Option Suspension Date for the Product) on the date that
(1) Vanda provides BMS with a full written report of the Phase III Clinical Studies,
including the results and conclusions thereof, on which Vanda intends to rely for filing for
Marketing Authorization for the Product in the first Major Market Country and (2) either (i)
both Parties agree in writing is the commencement date for the BMS Option Period or (ii)
there is acceptance by the applicable Regulatory Authority of the filing of a Marketing
Authorization for the Product in a Major Market Country. The BMS Option Period shall
terminate ninety (90) days later (“BMS Option Period”). At any time during the BMS Option
Period, BMS may provide Vanda with written notice that either: (a) it does not wish to
Develop or Commercialize the Product in the Remaining Countries; or (b) it wishes to
reacquire all rights to the Product in the Remaining Countries ((b) shall be referred to as
the “BMS Option”). Such option shall be exercisable on a Product-by-Product basis. For the
avoidance of doubt, if BMS does not exercise the BMS Option for the Remaining Countries
within the BMS Option Period, then upon completion of the BMS Option Period, the Vanda Third
Party Development Option shall be exercisable for the Remaining Countries for the remainder
of the Vanda Third Party Development Option Period.”

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     5. Section 5.2.2 of the License Agreement is hereby amended and restated to read in its
entirety as follows::

“5.2.2 As soon as reasonably practicable after the Effective Date, Vanda shall commence
Phase II Clinical Studies of the Product in accordance with the Development Plan set forth
in Schedule 1.19 and this Agreement. In any event, Vanda (a) shall initiate Phase II
Clinical Studies for the first Product no later than six (6) months after the Effective
Date, (b) shall complete (at least) one Phase II Clinical Study for the first Product no
later than twelve (12) months after commencement of the first Phase II Clinical Study (i.e.,
the date when the first patient in the study is dosed), (c) shall initiate Phase III
Clinical Studies for the first Product no later than twenty-four (24) months after
completing the first Phase II Clinical Study, and (d) shall file an NDA for the first
Product no later than June 1, 2013. In the event that any of such milestones are missed, it
shall be deemed a material breach of this Agreement for the purposes of Article 13. BMS’
ability to terminate this Agreement pursuant to Section 13.2 shall apply without regard to
whether any circumstances falling within Section 14.4 might otherwise excuse (in whole or in
part) any inability or failure to meet any such milestones. If Vanda misses any of the
above milestone dates, Vanda may request that BMS grant a reasonable extension to allow it
to meet such milestone, and BMS agrees that it will not unreasonably withhold its assent to
any such reasonable revision where supported by clear evidence that Vanda has been making
good faith and diligent efforts to achieve the milestones but has failed as a result of
technical difficulties or delays that the parties could not have reasonably avoided in the
achievement of such milestones; and provided, that BMS may also need to seek approval of MGH
in such event, and any approval by BMS shall further be conditioned on receipt of approval
of MGH.”

     6. This Amendment shall not amend or modify the terms, conditions, rights and obligations of
the parties under the License Agreement (as amended), except as specifically set forth herein. The
License Agreement (as amended) shall continue in full force and effect in accordance with its terms
as amended by this Amendment.

     7. This Amendment may be executed in counterparts, each of which shall be deemed an original,
but both of which together shall constitute one and the same instrument.

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     IN WITNESS WHEREOF, BMS and Vanda have caused this Amendment to be executed by their duly
authorized representatives.

BRISTOL-MYERS SQUIBB COMPANY

	 	 	 	 	 

	By:

	 	/s/ Graham R. Brazier
 

(Signature of Authorized Representative)
	 	 
	 
	 	 	 	 
	Printed Name: Graham R. Brazier

	 	 
	 
	 	 	 	 
	Title:

	 	Vice President Strategic Transactions Group	 	 

VANDA PHARMACEUTICALS INC.

	 	 	 	 	 

	By:

	 	/s/ Gunther Birznieks
 

(Signature of Authorized Representative)
	 	 
	 
	 	 	 	 
	Printed Name: Gunther Birznieks

	 	 
	 
	 	 	 	 
	Title:

	 	Vice President, Business Development	 	 

-4-exv10w1

Exhibit 10.1

POWERSECURE INTERNATIONAL, INC.

2010 EXECUTIVE INCENTIVE COMPENSATION PLAN

Adopted April 14, 2010

SECTION 1

Purpose

     The purpose of PowerSecure International, Inc. 2010 Executive Incentive Compensation Plan is
to increase stockholder value and to enhance the ability of the Company to attract, retain and
motivate high quality and high performing executives by providing those executives with incentives
and awards for making significant contributions to the financial success of the Company based on
the achievement of financial and other Performance Goals.

SECTION 2

Definitions

     The following terms as used in the Plan shall have the meanings set forth below:

     (a) “Award” means, as to any Performance Period, a cash payment made under the Plan to
a Participant for such Performance Period.

     (b) “Board” means the Board of Directors of the Company.

     (c) “Code” means the Internal Revenue Code of 1986, as amended from time to time,
together with the rules, regulations and interpretations promulgated thereunder, and any successor
provisions, rules, regulations and interpretations.

     (d) “Committee” means the Compensation Committee of the Board, or any successor
committee appointed by the Board to administer the Plan, or a subcommittee thereof.

     (e) “Company” means PowerSecure International, Inc. or any successor thereto, together
with its Subsidiaries.

     (f) “Effective Date” of the Plan means April 14, 2010.

     (g) “Executive” means an officer or other key employee of the Company or a Subsidiary.

     (h) “Fiscal Year” means the fiscal year of the Company, which as of the Effective Date
is the period commencing on January 1 and ending on December 31 of each calendar year.

      (i) “Participant” means, as to any Performance Period, any Executive who has
been selected by the Committee for participation in the Plan for such Performance Period.

     (j) “Payout Formula” means, as to any Performance Period, the formula or payout matrix
established by the Committee in order to determine the Awards (if any) to be paid to the
Participants. The formula or matrix may differ from Participant to Participant.

     (k) “Performance Goals” means the goals or other standards of measurement of Company
performance and individual performance applicable to a Participant for a Performance Period as
established by the Committee.

     (l) “Performance Period” means a Fiscal Year, or any other period of time selected by
the Committee, to which an Award relates.

 

 

     (m) “Person” means any individual, corporation, partnership, limited liability
company, association, joint-stock company, trust, unincorporated organization, government or
political subdivision thereof or other entity.

     (n) “Plan” means the PowerSecure International, Inc. 2010 Executive Incentive
Compensation Plan, as amended from time to time in accordance with the provisions hereof.

     (o) “Subsidiary” means any corporation, partnership, limited liability company, trust
or other entity (whether now or hereafter existing) which, on the date of determination, qualifies
as a subsidiary corporation of the Company under Section 425(f) of the Code, and any successor
thereto.

     (p) “Target Award” means the target Award payable under the Plan to a Participant for
a Performance Period, expressed as a percentage of the Participant’s Base Salary or as a specific
dollar amount, as determined by the Committee hereunder.

SECTION 3

Administration

     (a) Administration by the Committee. The Plan shall be administered by the Committee.

     (b) Authority of the Committee. The Plan shall be administered by the Committee.
Subject to the terms of the Plan and applicable law and subject to such resolutions, not
inconsistent with the Plan, as may be adopted by the Board, and in addition to other express powers
and authorizations conferred on the Committee by the Plan, the Committee shall have full power and
authority to: (i) designate the Participants; (ii) grant Awards under the Plan to Participants;
(iii) determine the type or types of Performance Goals and the Performance Period with respect to
each Award; (iv) determine the size of Awards and establish any other terms and conditions of any
Award; (v) construe, interpret and administer the Plan and any instrument or agreement relating to,
or Award made under, the Plan; (vi) adopt, amend, suspend, waive or rescind such rules and
regulations and appoint such agents as it shall deem necessary or desirable for the administration
of the Plan; (vii) correct any defect or supply any omission or reconcile any inconsistency, and to
construe and interpret the Plan, the rules and regulations, any agreement evidencing an Award or
other instrument entered into or Award made under the Plan; and (viii) make any other
determinations and decisions and take any other action that the Committee deems necessary or
desirable for the administration of the Plan.

     (c) Exercise of Authority. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations and other decisions under or with respect to the Plan
or any Award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive and binding upon all Persons, including the Company, its Subsidiaries,
Executives, Participants and their legal representatives and beneficiaries and stockholders. The
express grant of any specific power to the Committee, and the taking of any action by the
Committee, shall not be construed as limiting any power or authority of the Committee. The
Committee may delegate to officers or managers of the Company or any Subsidiary, or committees
thereof, the authority, subject to such terms as the Committee shall determine, to perform such
functions, including administrative functions, as the Committee may determine. The Committee may
appoint agents to assist it in administering the Plan.

     (d) Committee Proceedings. The Committee shall hold its meetings at such times and
places as it shall deem advisable. A majority of the members of the Committee shall constitute a
quorum and all determinations shall be made by a majority of such quorum. Any determination
reduced to writing and signed by all of the members of the Committee shall be fully as effective as
if it had been made by a majority vote at a meeting of the Committee duly called and held.

     (e) Limitation of Liability. The Committee and each member thereof shall be entitled
to, in good faith, rely or act upon any report or other information furnished to him or her by any
executive

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officer, other officer or employee of the Company or a Subsidiary, the Company’s independent
auditors, legal counsel, other consultants or any other agents assisting in the administration of
the Plan. Members of the Committee, and any officer or employee of the Company or a Subsidiary
acting at the direction or on behalf of the Committee, shall not be personally liable for any
action or determination taken or made in good faith with respect to the Plan, and shall, to the
extent permitted by law, be fully indemnified and protected by PowerSecure with respect to any such
action or determination.

SECTION 4

Eligibility

     Executives shall be eligible to be selected by the Committee to be Participants in the Plan
and to be granted Awards under the Plan.

SECTION 5

Awards

     (a) General. Subject to the provisions of the Plan, Awards may be granted as set
forth in this Section 5. In addition, the Committee may impose on any Award or the exercise
thereof, at the date of grant or thereafter (subject to the terms of Section 7 hereof), such
additional terms and conditions, not inconsistent with the provisions of the Plan, as the Committee
shall determine, including terms requiring forfeiture of Awards in the event of termination of
employment by the Participant and terms permitting a Participant to make elections pertaining to
his Award. Subject to the provisions of the Plan, the Committee shall have the right, in its sole
and absolute discretion, to accelerate the vesting or exercising of any Award granted under the
Plan. Except as required by applicable law, Awards shall be granted for no consideration other
than prior and future services.

     (b) Selection of Participants. The Committee, in its sole discretion, shall select
the Executives who shall be Participants in the Plan for any Performance Period. Participation in
the Plan is on a Performance Period by Performance Period basis, so no Executive who is a
Participant for any given Performance Period is entitled to being selected as a Participant in any
subsequent Performance Period.

     (c) Establishment of Performance Goals. At the commencement of each Performance
Period, the Committee shall establish for each Participant one or more Performance Goals for such
Performance Period, and the relative weight to be given to each Performance Goal. The Performance
Goals and the weighting thereof may vary by Participant and may be different for different
Performance Periods and for different Awards. As determined by the Committee, the Performance
Goals for any Target Award applicable to a Participant may provide for a targeted level or levels
of achieving one or more Performance Goals. The Performance Goals utilized by the Committee for
each Participant may be based on individual performance, corporate financial measures on either a
consolidated, Subsidiary or business unit basis (including but not limited to revenues (including
total revenues, recurring revenues, or other category of revenues), operating income, pre-tax
income, net income, gross profit, costs, cash flow, cash position, EBITDA, any of the preceding
measures as a percent of sales, earnings per share (before or after taxes), return on equity,
return on investment, return on assets, return on capital, total stockholder return and change in
Company stock price), other Company and business unit financial objectives, operational efficiency
measures, and other objectives tied to the Company’s success or such other goals and criteria as
the Committee shall determine in its discretion. Any criteria may be measured, as applicable, (i)
in absolute terms, (ii) in relative terms (including, but not limited to, passage of time and/or
against another company or companies), (iii) on a per share basis, (iv) against the performance of
the Company or a Subsidiary as a whole or a segment or business unit of the Company or a
Subsidiary, and/or (v) on a pre-tax or after-tax basis. Prior to the end of any Performance Period,
the Committee shall determine whether any element or elements shall be included in or excluded from
the calculation of any Performance Goal with respect to any Participants.

     (d) Establishment of Target Awards. The Committee, in its sole discretion, shall
establish a Target Award for each Participant.

3

 

     (e) Determination of Payout Formula or Formulae. For each Performance Period, the
Committee, in its sole discretion, shall establish a Payout Formula or Formulae for purposes of
determining the amount of the Award (if any) payable to each Participant. Each Payout Formula (i)
shall be based on a comparison of actual performance to the Performance Goals, (ii) shall provide
for the payment of a Participant’s Target Award if the Performance Goals for the Performance Period
are achieved, and (iii) may provide for an Award greater than or less than the Participant’s Target
Award, depending upon the extent to which actual performance exceeds or falls below the Performance
Goals.

     (f) Determination and Payment of Awards. As soon as practicable after the end of a
Performance Period, the Committee will determine the amount, if any, of the Award earned by each
Participant under the applicable Performance Goals. The Award for each Participant shall be
determined by applying the Payout Formula to the level of actual performance. Awards will be
payable promptly after the determination of the Awards by the Committee. Awards under the Plan
will be paid to the Participants in cash, provided that the Committee may, in its discretion,
permit Participants to defer the payment of all or a portion of their Awards in accordance with
Section 409A of the Code, or if the Company has adopted a deferred compensation plan and the
Participant is also eligible to participate therein, to defer the payment of all or a portion of
their Awards in accordance with the terms of such Plan

     (g) Form of Payment of Awards. Awards under the Plan shall be paid to the
Participants in cash (or its equivalent) in a single lump sum, provided that the Committee may, in
its discretion, permit Participants to defer the payment of all or a portion of their Awards in
accordance with Section 409A of the Code, or if the Company has adopted a deferred compensation
plan and the Participant is also eligible to participate therein, to defer the payment of all or a
portion of their Awards in accordance with the terms of such Plan.

     (h) Committee Discretion. Notwithstanding the attainment by the Company or any
Participant of one or more specified Performance Goals or any other provision of the Plan to the
contrary, the Committee shall have the discretion to increase, eliminate or reduce the Award that
which otherwise would be payable to a Participant under the Payout Formula, based on such factors
as deemed appropriate by the Committee.

SECTION 6

Termination of Employment

     (a) General Termination of Rights Hereunder. Except as may be otherwise determined by
the Committee, in the event a Participant’s employment with the Company terminates for any reason,
voluntarily or involuntarily, before the last date of a Performance Period, then that Participant
shall have no further rights under the Plan and shall not be entitled to payment of any Award under
the Plan, except as provided in this Section 6.

     (b) Termination by the Company for Cause. If a Participant’s employment is terminated
by the Company for “cause”, as defined and determined by the Committee in its sole discretion
(provided that if the Participant has an employment agreement with the Company and the term “cause”
or a like term is defined therein, the definition in such employment agreement shall be used),
then, except as otherwise determined by the Committee, that Participant shall have no further
rights under the Plan and shall not be entitled to payment of any Award under the Plan with respect
to any prior or current Performance Period.

     (c) Termination by the Company without Cause or due to a Change in Control. If a
Participant’s employment is terminated by the Company without “cause” (as defined in Section 6((b))
or upon or following a change in control of the Company (as defined by the Committee), then, except
as otherwise determined by the Committee, that Participant shall be entitled to payment of any
Award under the Plan to which such Participant would have been entitled if such Participant had
remained employed

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with the Company throughout the Performance Period in effect on the date of termination (the
“Pro Forma Award”).

     (d) Termination Due to Participant’s Death or Disability. In the event the
Participant’s termination of employment occurs due to the Participant’s death or disability, then
the Participant (or his estate or beneficiaries) shall be entitled to receive a pro rata portion of
the Award to which such Participant would have been entitled if such Participant had remained
employed with the Company throughout the Performance Period in effect on the date of termination,
based on (i) a fraction, (A) the numerator of which is equal to the number of months (including the
month of termination) the Participant was employed during such Performance Period, (B) and the
divisor of which is equal to the number of months in the Performance Period, multiplied by (ii) the
amount of the Award divided by twelve (12), (ii) multiplied by the Pro Forma Award.

     (e) Termination Due to Voluntary Termination by the Participant. In the event the
Participant’s employment is voluntarily terminated by the Participant, then the Committee may, in
its sole and complete discretion, value and direct that some portion of the Award be deemed earned
and payable, taking into account the duration of employment during the Performance Period, the
Participant’s performance, and such other matters as the Committee shall deem appropriate.

SECTION 7

Amendments to and Termination of the Plan and Awards

     The Board may, in its sole discretion, from time to time amend, alter, suspend, discontinue or
terminate the Plan or the Committee’s authority to grant Awards under the Plan without the consent
of stockholders or Participants; provided, however, that, without the consent of the Participant,
no amendment, alteration, suspension, discontinuation or termination of the Plan may materially and
adversely affect the rights of such Participant under any Award theretofor granted to him. The
Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend,
discontinue or terminate, any Award theretofore granted, prospectively or retrospectively;
provided, however, that, without the consent of the Participant, no amendment, alteration,
suspension, discontinuation or termination of any Award may materially and adversely affect the
rights of such Participant under any Award theretofore granted to him.

SECTION 8

General Provisions

     (a) Compliance with Legal and Other Requirements. The Company may, to the extent
deemed necessary or advisable by the Board, postpone the issuance or delivery of any benefits under
any Award until completion of any required action under any applicable federal, state or local law,
rule, regulation, order, decree or other requirement, or compliance with any other obligation of
the Company, as the Board may consider appropriate, and may require any Participant to make such
representations, furnish such information and comply with or be subject to such other conditions as
it may consider appropriate in connection with the payment of any Award in compliance with
applicable laws, rules, and regulations, listing requirements, or other obligations.

     (b) No Transferability. No Award granted under the Plan, nor any other rights
acquired by a Participant under the Plan, shall be assignable or transferable by a Participant,
other than by a will or the laws of descent and distribution, and no Award under the Plan shall be
subject in any manner to anticipation, pledge, encumbrance, charge, garnishment, execution or levy
or lien of any kind, whether voluntary or involuntary, and any attempt contrary thereto shall be
void.. Following any permitted transfer, any transferee shall continue to be subject to the same
terms and conditions as were applicable immediately prior to transfer.

     (c) Designation of Beneficiary. Subject to applicable law, each Participant shall
have the right to file with the Company a written designation of one or more Persons as
beneficiaries who shall be entitled to receive the amount, if any, payable under the Plan pursuant
to an award upon the Participant’s

5

 

death. A Participant may from time to time revoke or change the beneficiary by filing a new
designation with the Company. The last such designation received by the Company shall be
controlling,; provided, however, that no designation, change or evocation thereof shall be
effective until received by the Company prior the to the Participant’s death, and in no event shall
it be effective as of a date prior to receipt. If no such beneficiary designation is in effect at
the time of a Participant’s death, or if no designated beneficiary survives the Participant, or if
such designation conflicts with law, the payment of the amount, if any, payable pursuant to an
Award under the Plan upon the Participant’s death shall be made to the Participant’s estate by the
Committee. If the Committee is in doubt as to the right of any Person to receive any amount, then
the Committee may retain such amount, without liability for any interest thereon, until the rights
thereto are determined, or the Committee may pay such amount into any court of appropriate
jurisdiction or to the estate of the Participant, in which event the Company and the Committee
shall have no further liability to any Person with respect to such a amount.

     (d) No Rights to Awards. Nothing in the Plan shall be construed as giving any
Participant, Executive or other Person any right to claim to be granted any Award under the Plan,
or to be treated uniformly with other Participants and Executives.

     (e) Tax Withholding. The Company or any Subsidiary is authorized to withhold from any
Award granted or any payment due under the Plan amounts of withholding and other taxes due with
respect to an Award and to take such other action as the Committee may deem necessary or advisable
to enable the Company and Participants to satisfy obligations for the payment of withholding taxes
and other tax obligations relating to any Awards.

     (f) No Right to Employment. Nothing contained in the Plan shall, and no grant of any
Award shall be construed to, (i) confer, upon any Participant or any Executive, any right to
continue in the employ or service of the Company or any Subsidiary or (ii) interfere in any way
with the right of the Company or any Subsidiary to (A) terminate any Participant’s or Executive’s
employment or service at any time or (B) increase or decrease the compensation of any Participant
or Executive from the rate in existence at the time of granting of an Award, except as may be
expressly provided in any Award or other compensation arrangement.

     (g) Unfunded Status of Awards. Each Award payable under the Plan shall be paid solely
from the general assets of the Company. The Plan is intended to constitute an “unfunded” plan for
incentive and deferred compensation, and the Company shall not have any obligation to establish any
trust or other special or separate fund or to make any other segregation of assets to assure the
payment of any Award under the Plan. With respect to any payments not yet made to Participant
pursuant to an Award, nothing contained in the Plan or any Award shall give any such Participant
any rights that are greater than those of a general unsecured creditor of the Company; provided,
however, that the Board, in its sole and absolute discretion, may authorize the creation of trusts
or make other arrangements to meet the Company’s obligations under the Plan to deliver cash
pursuant to any Award, which trusts or other arrangements shall be consistent with the “unfunded”
status of the Plan unless the Board otherwise determines.

     (h) No Limitation on Other Compensatory Arrangements. Nothing contained in the Plan
shall prevent the Company or any Subsidiary from adopting or continuing in effect other or
additional compensation arrangements (which may include, without limitation, employment agreements
with executives and arrangements which relate to Awards under the Plan), and such arrangements may
be either generally applicable only in specific cases.

     (i) Governing Law. The validity, interpretation, construction and effect of the Plan,
any rules and regulations relating to the Plan and any Award thereunder shall be governed by the
laws of the State of Delaware (without regard to provisions governing conflicts of laws) and
applicable federal law.

     (j) Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Person or Award, or
would disqualify the Plan or any Award under any law deemed amended to conform to applicable laws
or, if it cannot be construed or deemed amended without, in the determination of the Board,
materially altering the intent of

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the Plan, it shall be deleted and the remainder of the Plan shall remain in full force and
effect; provided, however, that, unless otherwise determined by the Board, the provision shall not
be construed or deemed amended or deleted with respect to any Participant whose rights and
obligations under the Plan are not subject to the law of such jurisdiction or the law deemed
applicable by the Board.

     (k) Headings. Headings are given to the sections and subsections of the Plan solely
as a convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the Plan or any provision thereof.

     (l) Indemnification. Each Person who is or shall have been a member of the Committee,
or the Board, shall be indemnified and held harmless by the Company against and from any loss,
cost, liability or expense that may be imposed upon or reasonably incurred by him in connection
with or resulting from any claim, action, suit or proceeding to which he may be made a party or in
which he may be involved by reason of any action taken or failure to act under the Plan and against
and from any and all amounts paid by him in settlement thereof, with the Company’s approval, or
paid by him in satisfaction of any judgment in any such action, suit or proceeding against him,
provided he shall give the Company an opportunity, at its own expense, to handle and defend the
same before he undertakes to handle and defend it on his own behalf. The foregoing right of
indemnification shall not be exclusive and shall be independent of any other rights of
indemnification to which such Persons may be entitled under the Company’s Certificate of
Incorporation or By-laws, by contract, as a matter of law, or otherwise.

     (m) Construction. For purposes of the Plan, the following rules of construction
shall apply: (i) the word “or” is disjunctive but not necessarily exclusive; (ii) words in the
singular include the plural; words in the plural include the singular; and words in the neuter
gender include the masculine and feminine genders; and (iii) words in the masculine or feminine
gender include the other and neuter genders.

     (n) Costs and Expenses. The costs and expenses of administering the Plan shall be
borne solely by the Company.

     (o) Requirements of Law. The Plan and all Awards under the Plan shall be subject to
tall applicable laws, rules and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

SECTION 9

Effective Date and Termination

     (a) Effective Date. The Plan shall commence and become effective as of the Effective
Date.

     (b) Termination. The Plan shall continue in effect on and after the Effective Date
until December 31, 2019, unless earlier terminated by the Board. No Awards shall be made under the
Plan after the termination of the Plan.

7

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