Exhibit 10.40
AMGEN INC.
AMENDED AND RESTATED 1997 SPECIAL NON-OFFICER EQUITY INCENTIVE
PLAN
1. PURPOSE.
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(a) The purpose of the 1997 Special Non-Officer Equity
Incentive Plan (the "Plan") is to provide a means by which non-Officer employees
of and consultants to Amgen Inc., a Delaware corporation (the "Company"), and
employees of and consultants to the Company's Affiliates, as defined in
paragraph 1(b), directly, or indirectly through Trusts, may be given an
opportunity to benefit from increases in value of the stock of the Company
through the granting of (i) stock options, (ii) stock bonuses, and (iii) rights
to purchase restricted stock, all as defined below.
(b) The word "Affiliate" as used in the Plan means any parent
corporation or subsidiary corporation of the Company, as those terms are defined
in Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986,
as amended (the "Code").
(c) The Company, by means of the Plan, seeks to retain the
services of non-Officer employees of the Company and persons serving as
consultants to the Company, to secure and retain the services of persons capable
of filling such positions, and to provide incentives for such persons to exert
maximum efforts for the success of the Company.
(d) The Company intends that the rights issued under the Plan
("Stock Awards") shall, in the discretion of the Board of Directors of the
Company (the "Board") or any committee to which responsibility for
administration of the Plan has been delegated pursuant to paragraph 2(c), be
either (i) stock options granted pursuant to Section 5 hereof, which option
shall not qualify as incentive stock options as that term is used in Section 422
of the Code ("Options") or (ii) stock bonuses or rights to purchase restricted
stock granted pursuant to Section 6 hereof.
(e) The word "Trust" as used in the Plan shall mean a trust
created for the benefit of the employee or consultant, his or her spouse, or
members of their immediate family. The word optionee shall mean the person to
whom the option is granted or the employee or consultant for whose benefit the
option is granted to a Trust, as the context shall require.
2. ADMINISTRATION.
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(a) The Plan shall be administered by the Board unless and
until the Board delegates administration to a committee, as provided in
paragraph 2(c).
(b) The Board shall have the power, subject to, and within
the limitations of, the express provisions of the Plan:
(1) To determine from time to time which of the persons
eligible under the Plan shall be granted Stock Awards; when and how Stock Awards
shall be granted; whether a Stock Award will be an Option, a stock bonus, a
right to purchase restricted stock, or a combination of the foregoing; the
provisions of each Stock Award granted (which need not be identical), including
the time or times when a person shall be permitted to purchase or receive stock
pursuant to a Stock Award; and the number of shares with respect to which Stock
Awards shall be granted to each such person.
(2) To construe and interpret the Plan and Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for
its administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award, in a manner
and to the extent it shall deem necessary or expedient to make the Plan fully
effective.
(3) To amend the Plan as provided in Section 13.
(4) Generally, to exercise such powers and to perform
such acts as the Board deems necessary or expedient to promote the best
interests of the Company.
(c) The Board may delegate administration of the Plan to a
committee composed of not fewer than two (2) members of the Board (the
"Committee") which members may be non-employee directors and outside directors.
If administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the powers theretofore possessed
by the Board, subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board.
Notwithstanding anything else in this paragraph 2(c) to the contrary, at any
time the Board or the Committee may delegate to a committee of one or more
members of the Board the authority to grant or amend options to all employees or
consultants or any portion or class thereof.
(d) The term "non-employee director" shall mean a member of
the Board who (i) is not currently an officer of the Company or a parent or
subsidiary of the Company (as defined in Rule 16a-1(f) promulgated by the
Securities and Exchange Commission under Section 16 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")) or an employee of the Company or a
parent or subsidiary of the Company; (ii) does not receive compensation from the
Company or a parent or subsidiary of the Company for services rendered in any
capacity other than as a member of the Board (including a consultant) in an
amount required to be disclosed to the Company's stockholders under Rule 404 of
Regulation S-K promulgated by the Securities and Exchange Commission ("Rule
404"); (iii) does not possess an interest in any other transaction required to
be disclosed under Rule 404; or (iv) is not engaged in a business relationship
required to be disclosed under Rule 404, as all of these provisions are
interpreted by the Securities and Exchange Commission under Rule 16b-3
promulgated under the Exchange Act.
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(e) The term "outside director," as used in this Plan, shall
mean an administrator of the Plan, whether a member of the Board or of any
Committee to which responsibility for administration of the Plan has been
delegated pursuant to paragraph 2(c), who is considered to be an "outside
director" in accordance with the rules, regulations or interpretations of
Section 162(m) of the Code.
3. SHARES SUBJECT TO THE PLAN.
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(a) Subject to the provisions of Section 10 relating to
adjustments upon changes in stock, the stock that may be issued pursuant to
Stock Awards granted under the Plan shall not exceed in the aggregate
Eighty-Nine Million (89,000,000) shares of the Company's $.0001 par value common
stock (the "Common Stock"). If any Stock Award granted under the Plan shall for
any reason expire or otherwise terminate without having been exercised in full,
the Common Stock not purchased under such Stock Award shall again become
available for the Plan. Shares repurchased by the Company pursuant to any
repurchase rights reserved by the Company pursuant to the Plan shall not be
available for subsequent issuance under the Plan.
(b) The Common Stock subject to the Plan may be unissued
shares or reacquired shares, bought on the market or otherwise.
4. ELIGIBILITY.
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(a) Stock Awards may be granted to non-Officer employees of
the Company, or employees of any Affiliate, or consultants to the Company or any
Affiliate, or to Trusts of any such employee or consultant. Notwithstanding any
other provisions in this Plan to the contrary, Officers of the Company shall not
be eligible to receive Stock Awards. The term "Officer" shall include any
natural person who is elected as a corporate officer of the Company by the
Board.
(b) Stock Awards shall be limited to a maximum of 2,000,000
shares of Common Stock per person per calendar year.
5. TERMS OF OPTIONS.
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An Option granted pursuant to this Section 5 shall be in such
form and shall contain such terms and conditions as the Board or the Committee
shall deem appropriate. The provisions of separate Options need not be
identical, but each Option shall include (through incorporation of provisions
hereof by reference in the Option or otherwise) the substance of each of the
following provisions:
(a) No Option shall be exercisable after the expiration of ten
(10) years from the date it was granted.
(b) The exercise price of each Option shall be not less than
one hundred percent (100%) of the fair market value of the Common Stock subject
to the Option on the date the Option is granted.
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(c) The purchase price of Common Stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either: (i) in cash at the time the Option is exercised; or (ii) at
the discretion of the Board or the Committee, either at the time of grant or
exercise of the Option (A) by delivery to the Company of shares of Common Stock
that have been held for the period required to avoid a charge to the Company's
reported earnings and valued at the fair market value of the shares of Common
Stock on the date of exercise, (B) according to a deferred payment or other
arrangement with the person to whom the Option is granted or to whom the Option
is transferred pursuant to paragraph 5(d), or (C) in any other form of legal
consideration that may be acceptable to the Board or the Committee in their
discretion, including but not limited to payment of the purchase price pursuant
to a program developed under Regulation T as promulgated by the Federal Reserve
Board which results in the receipt of cash (or a check) by the Company before
Common Stock is issued or, prior to the issuance of Common Stock, receipt by the
Company of evidence from the person authorized to sell the underlying stock that
they have received irrevocable instructions from the option holder to pay to the
Company the aggregate exercise price of the Option from the sale proceeds.
In the case of any deferred payment arrangement, interest
shall be payable at least annually and shall be charged at not less than the
minimum rate of interest necessary to avoid the treatment as interest, under any
applicable provisions of the Code, of any amounts other than amounts stated to
be interest under the deferred payment arrangement.
(d) An Option granted to a natural person shall be exercisable
during the lifetime of such person only by such person, provided that such
person during such person's lifetime may designate a Trust to be such person's
beneficiary, and such beneficiary shall, after the death of the person to whom
the Option was granted, have all the rights that such person had while living,
including the right to exercise the Option. In the absence of such designation,
after the death of the person to whom the Option is granted, the Option shall be
exercisable by the person or persons to whom the optionee's rights under such
Option pass by will or by the laws of descent and distribution.
(e) The total number of shares of Common Stock subject to an
Option may, but need not, be allotted in periodic installments (which may, but
need not, be equal). From time to time during each of such installment periods,
the Option may become exercisable ("vest") with respect to some or all of the
shares allotted to that period, and may be exercised with respect to some or all
of the shares allotted to such period and/or any prior period as to which the
Option was not fully exercised. During the remainder of the term of the Option
(if its term extends beyond the end of the installment periods), the Option may
be exercised from time to time with respect to any shares then remaining subject
to the Option. The provisions of this paragraph 5(e) are subject to any Option
provisions governing the minimum number of shares as to which an Option may be
exercised.
(f) The Company may require any optionee, or any person to
whom an Option is transferred under paragraph 5(d), as a condition of exercising
any such Option: (i) to give written assurances satisfactory to the Company as
to such person's knowledge and experience in financial and business matters
and/or the employment of such person's purchaser
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representative who has such knowledge and experience in financial and business
matters, and that such person is capable of evaluating, alone or together with
the purchaser representative, the merits and risks of exercising the Option; and
(ii) to give written assurances satisfactory to the Company stating that such
person is acquiring the Common Stock subject to the Option for such person's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. These requirements, and any assurances given pursuant to such
requirements, shall be inoperative if: (x) the issuance of the shares upon the
exercise of the Option has been registered under a then currently effective
registration statement under the Securities Act of 1933, as amended (the
"Securities Act"); or (y) as to any particular requirement, a determination is
made by counsel for the Company that such requirement need not be met in the
circumstances under the then applicable securities law.
(g) An Option shall terminate three (3) months after
termination of the optionee's employment or relationship as a consultant with
the Company or an Affiliate, unless: (i) such termination is due to the
optionee's permanent and total disability, within the meaning of Section
422(c)(6) of the Code and with such permanent and total disability being
certified by the Social Security Administration prior to such termination, in
which case the Option may, but need not, provide that it may be exercised at any
time within one (1) year following such termination of employment or
relationship as a consultant; (ii) the optionee dies while in the employ of or
while serving as a consultant to the Company or an Affiliate, or within not more
than three (3) months after termination of such employment or relationship as a
consultant, in which case the Option may, but need not, provide that it may be
exercised at any time within eighteen (18) months following the death of the
optionee by the person or persons to whom the optionee's rights under such
Option pass by will or by the laws of descent and distribution; or (iii) the
Option by its term specifies either (A) that it shall terminate sooner than
three (3) months after termination of the optionee's employment or relationship
as a consultant with the Company or an Affiliate; or (B) that it may be
exercised more than three (3) months after termination of the optionee's
employment or relationship as a consultant with the Company or an Affiliate.
Notwithstanding any other provision in this Plan to the contrary, (x) no portion
of an Option shall be exercisable by any person to the extent that the Company's
federal income tax deduction with respect to the exercise of such portion of the
Option would be subject to disallowance pursuant to Section 162(m) of the Code,
or any successor thereto, and (y) subject to paragraph 5(a), if any portion of
an Option is not exercisable solely because of the preceding clause (x) on the
date on which such Option would otherwise terminate pursuant to the foregoing
provisions of this paragraph 5(g), such Option shall not terminate until three
(3) months after such Option thereafter ceases to be subject to the preceding
clause (x). Subject to the preceding sentence, any portion of an Option which is
not exercisable on the date on which an optionee's employment or relationship as
a consultant with the Company or an Affiliate ceases shall terminate immediately
on such date. This paragraph 5(g) shall not be construed to extend the term of
any Option or to permit anyone to exercise the Option after expiration of its
term, nor shall it be construed to increase the number of shares as to which any
Option is exercisable from the amount exercisable on the date of termination of
the optionee's employment or relationship as a consultant.
(h) The Option may, but need not, include a provision whereby
the optionee may elect at any time during the term of the optionee's employment
or relationship as a
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consultant with the Company or any Affiliate to exercise the Option as to any
part or all of the shares subject to the Option prior to the stated vesting
dates of the Option. Any shares so purchased from any unvested installment or
Option may be subject to a repurchase right in favor of the Company or to any
other restriction the Board or the Committee determines to be appropriate.
(i) To the extent provided by the terms of an Option, each
optionee may satisfy any federal, state or local tax withholding obligation
relating to the exercise of such Option by any of the following means or by a
combination of such means: (i) tendering a cash payment; (ii) authorizing the
Company to withhold from the shares of the Common Stock otherwise issuable to
the optionee as a result of the exercise of the Option a number of shares having
a fair market value less than or equal to the amount of the Company's required
minimum statutory withholding; or (iii) delivering to the Company owned and
unencumbered shares of the Common Stock having a fair market value less than or
equal to the amount of the Company's required minimum statutory withholding.
6. TERMS OF STOCK BONUSES AND PURCHASES OF RESTRICTED STOCK.
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Each stock bonus or restricted stock purchase agreement shall
be in such form and shall contain such terms and conditions as the Board or the
Committee shall deem appropriate. The terms and conditions of stock bonus or
restricted stock purchase agreements may change from time to time, and the terms
and conditions of separate agreements need not be identical, but each stock
bonus or restricted stock purchase agreement shall include (through
incorporation of provisions hereof by reference in the agreement or otherwise)
the substance of each of the following provisions as appropriate:
(a) The purchase price under each stock purchase agreement
shall be such amount as the Board or Committee shall determine and designate in
such agreement. Notwithstanding the foregoing, the Board or the Committee may
determine that eligible participants in the Plan may be awarded stock pursuant
to a stock bonus agreement in consideration for past services actually rendered
to the Company or for its benefit.
(b) No rights under a stock bonus or restricted stock purchase
agreement shall be assignable by any participant under the Plan, either
voluntarily or by operation of law, except where such assignment is required by
law or expressly authorized by the terms of the applicable stock bonus or
restricted stock purchase agreement.
(c) The purchase price of stock acquired pursuant to a stock
purchase agreement shall be paid either: (i) in cash at the time of purchase;
(ii) at the discretion of the Board or the Committee, according to a deferred
payment or other arrangement with the person to whom the Common Stock is sold;
or (iii) in any other form of legal consideration that may be acceptable to the
Board or the Committee in their discretion; including but not limited to payment
of the purchase price pursuant to a program developed under Regulation T as
promulgated by the Federal Reserve Board which results in the receipt of cash
(or a check) by the Company before Common Stock is issued or the receipt of
irrevocable instruction to pay the aggregate exercise price of the Company from
the sales proceeds before Common Stock is
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issued. Notwithstanding the foregoing, the Board or the Committee to which
administration of the Plan has been delegated may award Common Stock pursuant to
a stock bonus agreement in consideration for past services actually rendered to
the Company or for its benefit.
(d) Shares of Common Stock sold or awarded under the Plan may,
but need not, be subject to a repurchase option in favor of the Company in
accordance with a vesting schedule to be determined by the Board or the
Committee.
(e) In the event a person ceases to be an employee of or
ceases to serve as a consultant to the Company or an Affiliate, the Company may
repurchase or otherwise reacquire any or all of the shares of Common Stock held
by that person which have not vested as of the date of termination under the
terms of the stock bonus or restricted stock purchase agreement between the
Company and such person.
7. COVENANTS OF THE COMPANY.
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(a) During the terms of the Stock Awards granted under the
Plan, the Company shall keep available at all times the number of shares of
Common Stock required to satisfy such Stock Awards up to the number of shares of
Common Stock authorized under the Plan.
(b) The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be
required to issue and sell shares of Common Stock under the Stock Awards granted
under the Plan; provided, however, that this undertaking shall not require the
Company to register under the Securities Act either the Plan, any Stock Award
granted under the Plan or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain
from any such regulatory commission or agency the authority that counsel for the
Company deems necessary for the lawful issuance and sale of Common Stock under
the Plan, the Company shall be relieved from any liability for failure to issue
and sell Common Stock upon exercise of such Stock Awards unless and until such
authority is obtained.
8. USE OF PROCEEDS FROM COMMON STOCK.
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Proceeds from the sale of Common Stock pursuant to Stock
Awards granted under the Plan shall constitute general funds of the Company.
9. MISCELLANEOUS.
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(a) The Board or Committee shall have the power to accelerate
the time during which a Stock Award may be exercised or the time during which a
Stock Award or any part thereof will vest, notwithstanding the provisions in the
Stock Award stating the time during which it may be exercised or the time during
which it will vest. Each Option providing for vesting pursuant to paragraph 5(e)
shall also provide that if the employee's employment or a consultant's
affiliation with the Company or an Affiliate of the Company formed under the
laws of the U.S., Puerto Rico or Bermuda is terminated by reason of death or
disability (within the meaning of Title II or XVI of the Social Security Act and
with such permanent and total
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disability certified by the Social Security Administration or the comparable
governmental authority of an Affiliate, as applicable, prior to such
termination), then the vesting schedule of Options granted to such employee or
consultant or to the Trusts of such employee or consultant shall be accelerated
as of the date of such termination by twelve months for each full year the
employee has been employed by or the consultant has been affiliated with the
Company and an Affiliate of the Company formed under the laws of the U.S.,
Puerto Rico or Bermuda.
(b) Neither an optionee nor any person to whom an Option is
transferred under the provisions of the Plan shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares subject
to such Option unless and until such person has satisfied all requirements for
exercise of the Option pursuant to its terms.
(c) Nothing in the Plan or any instrument executed or Stock
Award granted pursuant thereto shall confer upon any eligible employee,
consultant, optionee or holder of Stock Awards under the Plan any right to
continue in the employ of the Company or any Affiliate or to continue acting as
a consultant or shall affect the right of the Company or any Affiliate to
terminate the employment or consulting relationship of any eligible employee,
consultant, optionee or holder of Stock Awards under the Plan with or without
cause, at any time and with or without notice. In the event that a holder of
Stock Awards under the Plan is permitted or otherwise entitled to take a leave
of absence, the Company shall have the unilateral right to (i) determine whether
such leave of absence will be treated as a termination of employment or
relationship as consultant for purposes hereof, and (ii) suspend or otherwise
delay the time or times at which exercisability or vesting would otherwise occur
with respect to any outstanding Stock Awards under the Plan.
10. ADJUSTMENTS UPON CERTAIN TRANSACTIONS.
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(a) In the event that any dividend or other distribution
(whether in the form of cash, Common Stock, other securities, or other
property), recapitalization, reclassification, stock split, reverse stock split,
reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, liquidation, dissolution, or sale, transfer, exchange or other
disposition of all or substantially all of the assets of the Company, or
exchange of Common Stock or other securities of the Company (other than pursuant
to the conversion of convertible securities), issuance of warrants or other
rights to purchase Common Stock or other securities of the Company, or other
similar corporate transaction or event, in the Board's or the Committee's sole
discretion, affects the Common Stock such that an adjustment is determined by
the Board or the Committee to be appropriate in order to prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan or with respect to Stock Awards, then the Committee or the Board
shall, in such manner as it may deem equitable, may make the following
adjustments to the Plan and with respect to any or all of the outstanding Stock
Awards:
a. the number and kind of shares of Common Stock (or
other securities or property) with respect to which Stock Awards may be
granted under the Plan (including, but not limited to, adjustments of
the limitations in paragraph 3(a) on the maximum number and kind of
shares which may be issued under the Plan and in
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paragraph 4(b) on the maximum number of shares subject to Stock Awards
which can be granted any person in a calendar year),
b. the number and kind of shares of Common Stock (or other
securities or property) subject to outstanding Stock Awards, including
by providing, either by the terms of such Stock Awards or by action
taken prior to the occurrence of such transaction or event, that upon
such event, such Stock Award shall be assumed by a successor or
survivor corporation, or a parent or subsidiary thereof, or shall be
substituted for by similar Stock Awards covering the stock of a
successor or survivor corporation, or a parent or subsidiary thereof,
with appropriate adjustments as to the number and kind of shares and
prices, and
c. the grant or exercise price with respect to any Stock
Award.
(b) In the event that the Board or Committee adjusts any or
all of the outstanding Stock Awards by providing that such Stock Awards shall be
assumed by a successor or survivor corporation, or a parent or subsidiary
thereof, or shall be substituted for by similar options, rights or awards
covering the stock of a successor or survivor corporation, or a parent or
subsidiary thereof, the Board or the Committee may, in its sole discretion,
determine that the transfer of the optionee's or other holder's employment or
consulting relationship to such successor or survivor corporation or a parent or
subsidiary thereof shall not constitute a cessation of the optionee's or
holder's employment or consulting relationship with the Company or an Affiliate
for the purposes of paragraph 5(g).
(c) Any adjustments made by the Board or the Committee under
paragraphs 10(a) and 10(b) shall be final, binding and conclusive on all
persons.
11. CHANGE OF CONTROL.
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(a) Notwithstanding anything to the contrary in this Plan, in
the event of a Change in Control (as hereinafter defined), then, to the extent
permitted by applicable law: (i) the time during which Stock Awards become
vested shall automatically be accelerated so that the unvested portions of all
Stock Awards shall be vested prior to the Change in Control and (ii) the time
during which the Options may be exercised shall automatically be accelerated to
immediately prior to the Change in Control. Upon and following the acceleration
of the vesting and exercise periods, at the election of the holder of the Stock
Award, the Stock Award may be: (x) exercised (with respect to Options) or, if
the surviving or acquiring corporation agrees to assume the Stock Awards or
substitute similar stock awards, (y) assumed; or (z) replaced with substitute
stock awards. Options not exercised, substituted or assumed prior to or upon the
Change in Control shall be terminated.
(b) For purposes of the Plan, a "Change of Control" shall be
deemed to have occurred at any of the following times:
(i) upon the acquisition (other than from the Company) by
any person, entity or "group," within the meaning of Section 13(d)(3) or 14(d)
(2) of the Exchange Act
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(excluding, for this purpose, the Company or its affiliates, or any employee
benefit plan of the Company or its affiliates which acquires beneficial
ownership of voting securities of the Company), of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent
(50%) or more of either the then outstanding shares of Common Stock or the
combined voting power of the Company's then outstanding voting securities
entitled to vote generally in the election of directors; or
(ii) at the time individuals who, as of December 9, 1997,
constitute the Board (the "Incumbent Board") cease for any reason to constitute
at least a majority of the Board, provided that any person becoming a director
subsequent to December 9, 1997, whose election, or nomination for election by
the Company's stockholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
directors of the Company, as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Exchange Act) shall be, for purposes of the Plan,
considered as though such person were a member of the Incumbent Board; or
(iii) immediately prior to the consummation by the Company
of a reorganization, merger, consolidation, (in each case, with respect to which
persons who were the stockholders of the Company immediately prior to such
reorganization, merger or consolidation do not, immediately thereafter, own more
than fifty percent (50%) of the combined voting power entitled to vote generally
in the election of directors of the reorganized, merged or consolidated
company's then outstanding voting securities) or a liquidation or dissolution of
the Company or of the sale of all or substantially all of the assets of the
Company; or
(iv) the occurrence of any other event which the Incumbent
Board in its sole discretion determines constitutes a Change of Control.
12. QUALIFIED DOMESTIC RELATIONS ORDERS.
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(a) Anything in the Plan to the contrary notwithstanding,
rights under Stock Awards may be assigned to an Alternate Payee to the extent
that a QDRO so provides. (The terms "Alternate Payee" and "QDRO" are defined in
paragraph 12(c) below.) The assignment of a Stock Award to an Alternate Payee
pursuant to a QDRO shall not be treated as having caused a new grant. If a Stock
Award is assigned to an Alternate Payee, the Alternate Payee generally has the
same rights as the grantee under the terms of the Plan; provided however, that
(i) the Stock Award shall be subject to the same vesting terms and exercise
period as if the Stock Award were still held by the grantee, and (ii) an
Alternate Payee may not transfer a Stock Award.
(b) In the event of the Plan administrator's receipt of a
domestic relations order or other notice of adverse claim by an Alternate Payee
of a grantee of a Stock Award, transfer of the proceeds of the exercise of such
Stock Award, whether in the form of cash, stock or other property, may be
suspended. Such proceeds shall thereafter be transferred pursuant to
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the terms of a QDRO or other agreement between the grantee and Alternate Payee.
A grantee's ability to exercise a Stock Award may be barred if the Plan
administrator receives a court order directing the Plan administrator not to
permit exercise.
(c) The word "QDRO" as used in the Plan shall mean a court
order (i) that creates or recognizes the right of the spouse, former spouse or
child (an "Alternate Payee") of an individual who is granted a Stock Award to an
interest in such Stock Award relating to marital property rights or support
obligations and (ii) that the administrator of the Plan determines would be a
"qualified domestic relations order," as that term is defined in section 414(p)
of the Code and section 206(d) of the Employee Retirement Income Security Act
("ERISA"), but for the fact that the Plan is not a plan described in section
3(3) of ERISA.
13. AMENDMENT OF THE PLAN.
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The Board at any time, and from time to time, may amend the
Plan. Rights and obligations under any Stock Award granted before amendment of
the Plan shall not be impaired by any amendment of the Plan, unless: (i) the
Company requests the consent of the person to whom the Stock Award was granted;
and (ii) such person consents in writing.
14. TERMINATION OR SUSPENSION OF THE PLAN.
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(a) The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on December 9, 2007. No Stock
Awards may be granted under the Plan while the Plan is suspended or after it is
terminated.
(b) Rights and obligations under any Stock Awards granted
while the Plan is in effect shall not be impaired by suspension or termination
of the Plan, except with the consent of the person to whom the Stock Award was
granted.
15. EFFECTIVE DATE OF PLAN.
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The Plan shall become effective as determined by the Board.
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