EXHIBIT 10.6
PACIFIC SUNWEAR OF CALIFORNIA, INC.
EMPLOYEE STOCK PURCHASE PLAN
(Composite Plan Document Reflecting Stock Splits Through December 31, 2002)
TABLE OF CONTENTS
Page
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1. PURPOSE.............................................................................4
2. DEFINITIONS.........................................................................4
3. ELIGIBILITY.........................................................................6
4. STOCK SUBJECT TO THIS PLAN; SHARE LIMITATIONS.......................................7
5. OFFERING PERIODS....................................................................7
6. PARTICIPATION.......................................................................7
7. METHOD OF PAYMENT OF CONTRIBUTIONS..................................................7
8. GRANT OF OPTION.....................................................................8
9. EXERCISE OF OPTION..................................................................8
10. DELIVERY............................................................................9
11. TERMINATION OF EMPLOYMENT; CHANGE IN ELIGIBLE STATUS................................9
12. ADMINISTRATION......................................................................9
13. DESIGNATION OF BENEFICIARY.........................................................10
14. TRANSFERABILITY....................................................................11
15. USE OF FUNDS; INTEREST.............................................................11
16. REPORTS............................................................................11
17. ADJUSTMENTS OF AND CHANGES IN THE STOCK............................................11
18. POSSIBLE EARLY TERMINATION OF PLAN AND OPTIONS.....................................12
19. TERM OF PLAN; AMENDMENT OR TERMINATION.............................................12
20. NOTICES............................................................................12
21. CONDITIONS UPON ISSUANCE OF SHARES.................................................13
22. PLAN CONSTRUCTION..................................................................13
23. EMPLOYEES' RIGHTS..................................................................13
24. MISCELLANEOUS......................................................................14
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PACIFIC SUNWEAR OF CALIFORNIA, INC.
EMPLOYEE STOCK PURCHASE PLAN
(Composite Plan Document Reflecting Stock Splits Through December 31,
2002)
The following constitute the provisions of the Pacific Sunwear of
California, Inc. Employee Stock Purchase Plan (this "Plan").
1. PURPOSE
The purpose of this Plan is to provide Eligible Employees with an
incentive to advance the best interests of the Corporation (and those
Subsidiaries which may be designated by the Committee as "Participating
Corporations") by providing a method whereby they may voluntarily
purchase Common Stock at a favorable price and upon favorable terms.
2. DEFINITIONS
Capitalized terms used herein which are not otherwise defined shall have
the following meanings.
"Account" shall mean the bookkeeping account maintained by the
Corporation, or by a recordkeeper on behalf of the Corporation,
for a Participant pursuant to Section 7(a).
"Board" shall mean the Board of Directors of the Corporation.
"Change in Control" shall mean any of the following:
a. Approval by the shareholders of the Corporation
of the dissolution or liquidation of the
Corporation;
b. Approval by the shareholders of the Corporation
of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more
entities other than Subsidiaries, as a result of
which less than 50% of the outstanding voting
securities of the surviving or resulting entity
are, or are to be, owned by former shareholders
of the Corporation;
c. Approval by the shareholders of the Corporation
of the sale of substantially all of the
Corporation's business assets to a person or
entity that is not a Subsidiary.
"Code" shall mean the Internal Revenue Code of 1986, as amended.
"Committee" shall mean the committee appointed by the Board to
administer this Plan pursuant to Section 12.
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"Common Stock" shall mean the common stock of the Corporation.
"Company" shall mean the Corporation and its Subsidiaries.
"Compensation" shall mean an Eligible Employee's regular
earnings, overtime pay, sick pay, shift differential, shift
premium, vacation pay, incentive compensation, commissions and
bonuses. Compensation also includes any amounts contributed as
salary reduction contributions to a plan qualifying under
Section 401(k), 125 or 129 of the Code. Any other form of
remuneration is excluded from Compensation, including (but not
limited to) the following: prizes, awards, housing allowances,
stock option exercises, stock appreciation rights, restricted
stock exercises, performance awards, auto allowances, tuition
reimbursement and other forms of imputed income. Notwithstanding
the foregoing, Compensation shall not include any amounts
deferred under or paid from the Corporation's Executive Deferred
Compensation Plan.
"Contributions" shall mean all bookkeeping amounts credited to
the Account of a Participant pursuant to Section 7(a).
"Corporation" shall mean Pacific Sunwear of California, Inc., a
California corporation.
"Eligible Employee" shall mean any employee of the Corporation,
or of any Subsidiary which has been designated in writing by the
Committee as a "Participating Corporation" (including any
Subsidiaries which have become such after the date that this
Plan is approved by shareholders). Notwithstanding the
foregoing, "Eligible Employee" shall not include any employee
who (i) has not as of the Grant Date completed at least three
months of continuous full-time employment with the Company, (ii)
whose customary employment is for 20 hours per week or less; or
(iii) whose customary employment is for not more than five
months in a calendar year. In addition, no Officer shall be an
Eligible Employee.
"Effective Date" shall mean January 1, 1998.
"Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.
"Exercise Date" shall mean, with respect to an Offering Period,
the last day of that Offering Period.
"Fair Market Value" shall mean the closing price of a Share on
The New York Stock Exchange on such date (or, in the event that
the Common Stock is not traded on such date, on the immediately
preceding trading date), as reported in The Wall Street Journal
or, in the event the Common Stock is not listed on The New York
Stock Exchange, the "Fair Market Value" shall be the closing
price of the Common Stock for such date (or, in the event that
the Common Stock is not traded on such date, on the immediately
preceding trading date), as reported by the National Association
of Securities Dealers Automated Quotation ("NASDAQ") or, if such
price is not reported, the mean of the bid and asked
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prices per Share as reported by NASDAQ or, if such prices are
not so listed or reported, as determined by the Committee (or
its delegate), in its discretion.
"Grant Date" shall mean the first day of each Offering Period.
"Offering Period" shall mean the six-consecutive month periods
commencing on each January 1 and July 1.
"Officer" shall mean (i) any individual who is a named officer
of the Corporation pursuant to the Corporation's By-Laws, and
(ii) any other individual who the Committee determines, in its
sole discretion, to be (A) a highly compensated employee (within
the meaning of Section 414(q) of the Code) and (B) an officer of
the Company for purposes of this Plan.
"Option" shall mean the stock option to acquire Shares granted
to a Participant pursuant to Section 8.
"Option Price" shall mean the per share exercise price of an
Option as determined in accordance with Section 8(b).
"Participant" shall mean an Eligible Employee who has elected to
participate in this Plan and who has filed a valid and effective
Subscription Agreement to make Contributions pursuant to Section
6.
"Plan" shall mean this Pacific Sunwear of California, Inc.
Employee Stock Purchase Plan, as amended from time to time.
"Rule 16b-3" shall mean Rule 16b-3 promulgated under Section 16.
"Section 16" shall mean Section 16 of the Exchange Act.
"Share" shall mean a share of Common Stock.
"Subscription Agreement" shall mean the written agreement filed
by an Eligible Employee with the Corporation pursuant to Section
6 to participate in this Plan.
"Subsidiary" shall mean any corporation in an unbroken chain of
corporations (beginning with the Corporation) in which each
corporation (other than the last corporation) owns stock
possessing 50% or more of the total combined voting power of all
classes of stock in one or more of the other corporations in the
chain.
3. ELIGIBILITY
Any person employed as an Eligible Employee as of a Grant Date shall be
eligible to participate in this Plan during the Offering Period in which
such Grant Date occurs, subject to the Eligible Employee satisfying the
requirements of Section 6.
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4. STOCK SUBJECT TO THIS PLAN; SHARE LIMITATIONS
The total number of Shares to be made available under this Plan is
405,000 authorized and unissued or treasury shares of Common Stock, or
Shares repurchased on the open market, subject to adjustments pursuant
to Section 17. In the event that all of the Shares made available under
this Plan are subscribed prior to the expiration of this Plan, this Plan
may be terminated in accordance with Section 19.
5. OFFERING PERIODS
During the term of this Plan, the Corporation will offer Options to
purchase Shares to all Participants during each Offering Period. Each
Option shall become effective on the Grant Date. The term of each Option
shall be six months and shall end on the Exercise Date. The first
Offering Period shall commence on or after the Effective Date. Offering
Periods shall continue until this Plan is terminated in accordance with
Section 18 or 19, or, if earlier, until no Shares remain available for
Options pursuant to Section 4.
6. PARTICIPATION
An Eligible Employee may become a participant in this Plan by completing
a Subscription Agreement on a form approved by and in a manner
prescribed by the Committee (or its delegate). To become effective, a
Subscription Agreement must be filed with the Corporation prior to the
start of the Offering Period with respect to which it is to become
effective and must set forth the percentage of the Eligible Employee's
Compensation (which shall be a whole percentage point not less than 1%
and not more than 10%) to be credited to the Participant's Account as
Contributions each pay period. Subscription Agreements shall contain the
Eligible Employee's authorization and consent to the Corporation's
withholding from his or her Compensation the amount of his or her
Contributions. Subscription Agreements shall remain valid for all
Offering Periods until (i) an Eligible Employee's participation
terminates pursuant to the terms hereof, or (ii) until a new
Subscription Agreement becomes effective.
7. METHOD OF PAYMENT OF CONTRIBUTIONS
(a) The Corporation shall maintain on its books, or cause to be
maintained by a recordkeeper, an Account in the name of each
Participant. The percentage of Compensation elected to be applied as
Contributions by a Participant shall be deducted from such Participant's
Compensation on each payday during the period for payroll deductions set
forth below and such payroll deductions shall be credited to that
Participant's Account as soon as administratively practicable after such
date. A Participant may not make any additional payments to his or her
Account. A Participant's Account shall be reduced by any amounts used to
pay the Option Price of Shares acquired, or by any other amounts
distributed pursuant to the terms hereof.
(b) Payroll deductions with respect to an Offering Period shall commence
as of the first day of the payroll period which coincides with or
immediately follows the applicable Grant Date and shall end on the last
day of the payroll period which coincides with or
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immediately precedes the applicable Exercise Date, unless sooner
terminated by the Participant as provided in this Section or until his
or her participation terminates pursuant to Section 11.
(c) A Participant may terminate his or her Contributions during an
Offering Period by completing and filing with the Corporation, in such
form and on such terms as the Committee (or its delegate) may prescribe,
a written withdrawal form which shall be signed by the Participant. Such
termination shall be effective as soon as administratively practicable
after its receipt by the Corporation.
(d) A Participant may discontinue or otherwise change the level of his
or her Contributions (within Plan limits) effective as of the next Grant
Date by completing and filing with the Corporation, on such terms as the
Committee (or its delegate) may prescribe, a new Subscription Agreement.
8. GRANT OF OPTION
(a) On each Grant Date, each Eligible Employee who is a participant
during that Offering Period shall be granted an Option to purchase a
number of Shares. The Option shall be exercised on the Exercise Date.
The number of Shares subject to the Option shall be determined by
dividing the Participant's Account balance as of the applicable Exercise
Date by the Option Price.
(b) The Option Price per Share of the Shares subject to an Option shall
be the lesser of: (i) 90% of the Fair Market Value of a Share on the
applicable Grant Date; or (ii) 90% of the Fair Market Value of a Share
on the applicable Exercise Date.
(c) Notwithstanding anything else contained herein, a person who is
otherwise an Eligible Employee shall not be granted any Option or other
right to purchase Shares under this Plan to the extent (i) it would, if
exercised, cause the person to own "stock" (as such term is defined for
purposes of Section 423(b)(3) of the Code) possessing 5% or more of the
total combined voting power or value of all classes of stock of the
Corporation, or any Subsidiary, or (ii) such Option causes such
individual to have rights to purchase stock under this Plan and any
other plan of the Company qualified under Section 423 of the Code which
accrue at a rate which exceeds $25,000 of the fair market value of the
stock of the Corporation or of a Subsidiary (determined at the time the
right to purchase such Stock is granted) for each calendar year in which
such right is outstanding. For this purpose a right to purchase Shares
accrues when it first become exercisable during the calendar year. In
determining whether the stock ownership of an Eligible Employee equals
or exceeds the 5% limit set forth above, the rules of Section 424(d) of
the Code (relating to attribution of stock ownership) shall apply.
9. EXERCISE OF OPTION
Unless a Participant's Plan participation is terminated as provided in
Section 11, his or her Option for the purchase of Shares shall be
exercised automatically on the Exercise Date for that Offering Period,
without any further action on the Participant's part, and the
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maximum number of whole Shares subject to such Option shall be purchased
at the Option Price with the balance of such Participant's Account. If
any amount (which is not sufficient to purchase a whole Share) remains
in a Participant's Account after the exercise of his or her Option on
the Exercise Date: (i) such amount shall be credited to such
Participant's Account for the next Offering Period, if he or she is then
a Participant; or (ii) if such Participant is not a Participant in the
next Offering Period, or if the Committee so elects, such amount shall
be refunded to such Participant as soon as administratively practicable
after such date.
10. DELIVERY
As soon as administratively practicable after the Exercise Date, the
Corporation shall deliver to each Participant a certificate representing
the Shares purchased upon exercise of his or her Option. The Corporation
may make available an alternative arrangement for delivery of Shares to
a recordkeeping service. The Committee (or its delegate), in its
discretion, may either require or permit the Participant to elect that
such certificates be delivered to such recordkeeping service. In the
event the Corporation is required to obtain from any commission or
agency authority to issue any such certificate, the Corporation will
seek to obtain such authority. Inability of the Corporation to obtain
from any such commission or agency authority which counsel for the
Corporation deems necessary for the lawful issuance of any such
certificate shall relieve the Corporation from liability to any
Participant except to return to the Participant the amount of the
balance in his or her Account.
11. TERMINATION OF EMPLOYMENT; CHANGE IN ELIGIBLE STATUS
(a) Upon a Participant's termination from employment with the Company
for any reason or in the event that a Participant is no longer an
Eligible Employee or if the Participant elects to terminate
Contributions pursuant to Section 7(c), at any time prior to the last
day of an Offering Period in which he or she participates, such
Participant's Account shall be paid to him or her or in cash, or, in the
event of such Participant's death, paid to the person or persons
entitled thereto under Section 13, and such Participant's Option and
participation in the Plan shall be automatically terminated.
(b) A Participant's termination from Plan participation precludes the
Participant from again participating in this Plan during that Offering
Period. However, such termination shall not have any effect upon his or
her ability to participate in any succeeding Offering Period, provided
that the applicable eligibility and participation requirements are again
then met. A Participant's termination from Plan participation shall be
deemed to be a revocation of that Participant's Subscription Agreement
and such Participant must file a new Subscription Agreement to resume
Plan participation in any succeeding Offering Period.
12. ADMINISTRATION
(a) The Board shall appoint the Committee, which shall be composed of
not less than two members of the Board. Each member of the Committee, in
respect of any transaction
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at a time when an affected Participant may be subject to Section 16 of
the Exchange Act, shall be a "non-employee director" within the meaning
of Rule 16b-3 promulgated under Section 16. The Board may, at any time,
increase or decrease the number of members of the Committee, may remove
from membership on the Committee all or any portion of its members, and
may appoint such person or persons as it desires to fill any vacancy
existing on the Committee, whether caused by removal, resignation, or
otherwise. The Board may also, at any time, assume or change the
administration of this Plan.
(b) The Committee shall supervise and administer this Plan and shall
have full power and discretion to adopt, amend and rescind any rules
deemed desirable and appropriate for the administration of this Plan and
not inconsistent with the terms of this Plan, and to make all other
determinations necessary or advisable for the administration of this
Plan. The Committee shall act by majority vote or by unanimous written
consent. No member of the Committee shall be entitled to act on or
decide any matter relating solely to himself or herself or any of his or
her rights or benefits under this Plan. The Committee shall have full
power and discretionary authority to construe and interpret the terms
and conditions of this Plan, which construction or interpretation shall
be final and binding on all parties including the Corporation,
Participants and beneficiaries. The Committee may delegate ministerial
non-discretionary functions to third parties, including officers of the
Corporation.
(c) Any action taken by, or inaction of, the Corporation, the Board or
the Committee relating to this Plan shall be within the absolute
discretion of that entity or body. No member of the Board or Committee,
or officer of the Corporation shall be liable for any such action or
inaction.
13. DESIGNATION OF BENEFICIARY
(a) A Participant may file, in a manner prescribed by the Committee (or
its delegate), a written designation of a beneficiary who is to receive
any Shares or cash from such Participant's Account under this Plan in
the event of such Participant's death. If a Participant's death occurs
subsequent to the end of an Offering Period but prior to the delivery to
him or her of any Shares deliverable under the terms of this Plan, such
Shares and any remaining balance of such Participant's Account shall be
paid to such beneficiary (or such other person as set forth in Section
13(b)) as soon as administratively practicable after the Corporation
receives notice of such Participant's death and any outstanding
unexercised Option shall terminate. If a Participant's death occurs at
any other time, the balance of such Participant's Account shall be paid
to such beneficiary (or such other person as set forth in Section 13(b))
in cash as soon as administratively practicable after the Corporation
receives notice of such Participant's death and such Participant's
Option shall terminate. If a Participant is married and the designated
beneficiary is not his or her spouse, spousal consent shall be required
for such designation to be effective.
(b) Beneficiary designations may be changed by the Participant (and his
or her spouse, if required) at any time on forms provided and in the
manner prescribed by the Committee (or its delegate). If a Participant
dies with no validly designated beneficiary
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under this Plan who is living at the time of such Participant's death,
the Corporation shall deliver all Shares and/or cash payable pursuant to
the terms hereof to the executor or administrator of the estate of the
Participant, or if no such executor or administrator has been appointed,
the Corporation, in its discretion, may deliver such Shares and/or cash
to the spouse or to any one or more dependents or relatives of the
Participant, or if no spouse, dependent or relative is known to the
Corporation, then to such other person as the Corporation may designate.
14. TRANSFERABILITY
Neither Contributions credited to a Participant's Account nor any
Options or rights with respect to the exercise of Options or right to
receive Shares under this Plan may be anticipated, alienated,
encumbered, assigned, transferred, pledged or otherwise disposed of in
any way (other than by will, the laws of descent and distribution, or as
provided in Section 13) by the Participant. Any such attempt at
anticipation, alienation, encumbrance, assignment, transfer, pledge or
other disposition shall be without effect and all amounts shall be paid
and all shares shall be delivered in accordance with the provisions of
this Plan. Amounts payable or Shares deliverable pursuant to this Plan
shall be paid or delivered only to the Participant or, in the event of
the Participant's death, to the Participant's beneficiary pursuant to
Section 13.
15. USE OF FUNDS; INTEREST
All Contributions received or held by the Corporation under this Plan
will be included in the general assets of the Corporation and may be
used for any corporate purpose. No interest will be paid to any
Participant or credited to his or her Account under this Plan.
16. REPORTS
Statements shall be provided to Participants as soon as administratively
practicable following each Exercise Date. Each Participant's statement
shall set forth, as of such Exercise Date, that Participant's Account
balance immediately prior to the exercise of his or her Option, the Fair
Market Value of a Share, the Option Price, the number of whole Shares
purchased and his or her remaining Account balance, if any.
17. ADJUSTMENTS OF AND CHANGES IN THE STOCK
In the event that the Shares shall be changed into or exchanged for a
different number or kind of shares of stock or other securities of the
Corporation or of another corporation (whether by reason of merger,
consolidation, recapitalization, stock split, combination of shares, or
otherwise), or if the number of Shares shall be increased through a
stock split or the payment of a stock dividend, then there shall be
substituted for or added to each Share theretofore reserved for sale
under this Plan, the number and kind of shares of stock or other
securities into which each outstanding Share shall be so changed, or for
which each such Share shall be exchanged, or to which each such Share is
entitled, as the case may be, or the number or kind of securities which
may be sold under this Plan and the purchase price per Share shall be
appropriately adjusted consistent with such change
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in such manner as the Committee (or its delegate) may deem equitable to
prevent substantial dilution or enlargement of rights granted to, or
available for, Eligible Employees under this Plan.
18. POSSIBLE EARLY TERMINATION OF PLAN AND OPTIONS
Upon a dissolution of the Corporation, an event described in Section 17
that the Corporation does not survive, or the occurrence of a Change in
Control, the Plan and, if prior to the last day of an Offering Period,
any outstanding Option granted with respect to that Offering Period
shall terminate, subject to any provision that has been expressly made
by the Committee through a plan or reorganization approved by the Board
or otherwise for the survival, substitution, assumption, exchange or
other settlement of the Plan and Options. In the event a Participant's
Option is terminated pursuant to this Section 18, such Participant's
Account shall be paid to him or her in cash without interest.
19. TERM OF PLAN; AMENDMENT OR TERMINATION
(a) This Plan shall become effective as of the Effective Date. No new
Offering Periods shall commence on or after the tenth anniversary of the
Effective Date and this Plan shall terminate on such date unless sooner
terminated pursuant to Section 18 or this Section 19.
(b) The Board may amend, modify or terminate this Plan at any time
without notice. Shareholder approval for any amendment or modification
shall not be required, except to the extent required by Section 423 of
the Code or other applicable law, or deemed necessary or advisable by
the Board. No amendment, modification, or termination pursuant to this
Section 18(b) shall, without written consent of the Participant, affect
in any manner materially adverse to the Participant any rights or
benefits of such Participant or obligations of the Corporation under any
Option granted under this Plan prior to the effective date of such
change. Changes contemplated by Section 17 shall not be deemed to
constitute changes or amendments requiring Participant consent.
Notwithstanding the foregoing, the Committee shall have the right to
designate from time to time the Subsidiaries whose employees may be
eligible to participate in this Plan and such designation shall not
constitute any amendment to this Plan requiring shareholder approval.
20. NOTICES
All notices or other communications by a Participant to the Corporation
contemplated by this Plan shall be deemed to have been duly given when
received in the form and manner specified by the Committee (or its
delegate) at the location, or by the person, designated by the Committee
(or its delegate) for that purpose.
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21. CONDITIONS UPON ISSUANCE OF SHARES
Shares shall not be issued with respect to an Option unless the exercise
of such Option and the issuance and delivery of such Shares complies
with all applicable provisions of law, domestic or foreign, including,
without limitation, the Securities Act of 1933, as amended, the Exchange
Act, any applicable state securities laws, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon
which the Shares may then be listed.
As a condition precedent to the exercise of any Option, if, in the
opinion of counsel for the Corporation such a representation is required
under applicable law, the Corporation may require any person exercising
such Option to represent and warrant that the Shares subject thereto are
being acquired only for investment and without any present intention to
sell or distribute such Shares.
22. PLAN CONSTRUCTION
(a) It is the intent of the Corporation that transactions in and
affecting Options in the case of Participants who are or may be subject
to the prohibitions of Section 16 satisfy any then applicable
requirements of Rule 16b-3 so that such persons (unless they otherwise
agree) will be entitled to the exemptive relief of Rule 16b-3 in respect
of those transactions and will not be subject to avoidable liability
thereunder. Accordingly, this Plan shall be deemed to contain and the
Shares issued upon exercise thereof shall be subject to, such additional
conditions and restrictions as may be required by Rule 16b-3 to qualify
for the maximum exemption from Section 16 with respect to Plan
transactions.
(b) This Plan and Options are intended to qualify under Section 423 of the
Code.
(c) If any provision of this Plan or of any Option would otherwise
frustrate or conflict with the intents expressed above, that provision
to the extent possible shall be interpreted so as to avoid such
conflict. If the conflict remains irreconcilable, the Committee may
disregard the provision if it concludes that to do so furthers the
interest of the Corporation and is consistent with the purposes of this
Plan as to such persons in the circumstances.
23. EMPLOYEES' RIGHTS
Nothing in this Plan (or in any agreement related to this Plan) shall
confer upon any Eligible Employee or Participant any right to continue
in the service or employ of the Company or constitute any contract or
agreement of service or employment, or interfere in any way with the
right of the Company to reduce such person's compensation or other
benefits or to terminate the services or employment or such Eligible
Employee or Participant, with or without cause, but nothing contained in
this Plan or any document related hereto shall affect any other
contractual right of any Eligible Employee or Participant. No
Participant shall have any rights as a shareholder until a certificate
for Shares has been issued in the Participant's name following exercise
of his or her Option. No adjustment will be made for dividends or other
rights as a shareholder for which a
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a record date is prior to the issuance of such Share certificate.
Nothing in this Plan shall be deemed to create any fiduciary
relationship between the Corporation and any Participant.
24. MISCELLANEOUS
(a) This Plan and related documents shall be governed by, and construed
in accordance with, the laws of the State of California. If any
provision shall be held by a court of competent jurisdiction to be
invalid and unenforceable, the remaining provisions of this Plan shall
continue to be fully effective.
(b) Captions and headings are given to the sections of this Plan solely
as a convenience to facilitate reference. Such captions and headings
shall not be deemed in any way material or relevant to the construction
of interpretation of this Plan or any provision hereof.
(c) The adoption of this Plan shall not affect any other compensation or
incentive plans in effect for the Company. Nothing in this Plan shall be
construed to limit the right of the Company (i) to establish any other
forms of incentives or compensation for employees of the Company, or
(ii) to grant or assume options (outside the scope of and in addition to
those contemplated by this Plan) in connection with any proper corporate
purpose.
25. EFFECTIVE DATE
This Plan shall be effective on the Effective Date, subject, however, to
the approval of this Plan by the shareholders of the Company within
twelve months after the date on which the Board approved this Plan.
Notwithstanding anything else contained herein to the contrary, no
Shares shall be issued or delivered under this Plan until such
shareholder approval is obtained and, if such shareholder approval is
not obtained within such 12-month period of time, all Contributions
credited to a Participant's Account hereunder shall be refunded to such
Participant (without interest) as soon as practicable after the end of
such 12-month period.
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