Exhibit 99.1
D OT H ILL S YSTEMS C ORP .
2009 E QUITY I NCENTIVE P LAN
A DOPTED BY THE B OARD OF D IRECTORS : A PRIL 27, 2009
A PPROVED BY THE S TOCKHOLDERS : J UNE 15, 2009
T ERMINATION D ATE : A PRIL 26, 2019
(a) Successor to and Continuation
of Prior Plans. The Plan
is intended as the successor to and continuation of the Dot Hill
Systems Corp. 2000 Amended and Restated Equity Incentive Plan and
the Dot Hill Systems Corp. 1995 Incentive Program, as Amended and
Restated (the “ Prior Plans ”). Following
the Effective Date, no additional stock awards shall be granted
under the Prior Plans. Any shares remaining available for issuance
pursuant to the exercise of options or settlement of stock awards
under the Prior Plans as of the Effective Date (the “
Prior Plans’ Available Reserve ”) shall
become available for issuance pursuant to Stock Awards granted
hereunder. From and after the Effective Date, all outstanding stock
awards granted under the Prior Plans shall remain subject to the
terms of the Prior Plans; provided, however , any shares
subject to outstanding stock awards granted under the Prior Plans
that expire or terminate for any reason prior to exercise or
settlement (the “ Returning Shares ”)
shall become available for issuance pursuant to Awards granted
hereunder. All Awards granted on or after the Effective Date of
this Plan shall be subject to the terms of this Plan.
(b) Eligible Award
Recipients. The persons
eligible to receive Awards are Employees, Directors and
Consultants.
(c) Available Awards.
The Plan provides for the grant of
the following Awards: (i) Incentive Stock Options,
(ii) Nonstatutory Stock Options, (iii) Stock Appreciation
Rights (iv) Restricted Stock Awards, (v) Restricted Stock
Unit Awards, (vi) Performance Stock Awards,
(vii) Performance Cash Awards, and (viii) Other Stock
Awards.
(d) Purpose.
The Company, by means of the Plan,
seeks to secure and retain the services of the group of persons
eligible to receive Awards as set forth in Section 1(b), to
provide incentives for such persons to exert maximum efforts for
the success of the Company and any Affiliate and to provide a means
by which such eligible recipients may be given an opportunity to
benefit from increases in value of the Common Stock through the
granting of Awards.
(a) Administration by
Board. The Board shall
administer the Plan unless and until the Board delegates
administration of the Plan to a Committee or Committees, as
provided in Section 2(c).
1.
(b) Powers of Board.
The Board shall have the power,
subject to, and within the limitations of, the express provisions
of the Plan:
(i) To determine from time to time (A) which of
the persons eligible under the Plan shall be granted Awards;
(B) when and how each Award shall be granted; (C) what
type or combination of types of Award shall be granted;
(D) the provisions of each Award granted (which need not be
identical), including the time or times when a person shall be
permitted to receive cash or Common Stock pursuant to a Stock
Award; (E) the number of shares of Common Stock with respect
to which a Stock Award shall be granted to each such person; and
(F) the Fair Market Value applicable to a Stock
Award.
(ii) To construe and interpret the Plan and 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 Agreement or in the written terms of
a Performance Cash Award, in a manner and to the extent it shall
deem necessary or expedient to make the Plan or Award fully
effective.
(iii) To settle all controversies regarding the Plan
and Awards granted under it.
(iv) To accelerate the time at which an Award may
first be exercised or the time during which an Award or any part
thereof will vest in accordance with the Plan, notwithstanding the
provisions in the Award stating the time at which it may first be
exercised or the time during which it will vest.
(v) To suspend or terminate the Plan at any time.
Suspension or termination of the Plan shall not impair rights and
obligations under any Award granted while the Plan is in effect
except with the written consent of the affected
Participant.
(vi) To amend the Plan in any respect the Board deems
necessary or advisable, including, without limitation, by adopting
amendments relating to Incentive Stock Options and certain
nonqualified deferred compensation under Section 409A of the
Code and/or to bring the Plan or Awards granted under the Plan into
compliance therewith, subject to the limitations, if any, of
applicable law. However, except as provided in Section 9(a)
relating to Capitalization Adjustments, to the extent required by
applicable law or listing requirements, stockholder approval shall
be required for any amendment of the Plan that either
(A) materially increases the number of shares of Common Stock
available for issuance under the Plan, (B) materially expands
the class of individuals eligible to receive Awards under the Plan,
(C) materially increases the benefits accruing to Participants
under the Plan or materially reduces the price at which shares of
Common Stock may be issued or purchased under the Plan,
(D) materially extends the term of the Plan, or
(E) expands the types of Awards available for issuance under
the Plan. Except as provided above, rights under any Award granted
before amendment of the Plan shall not be impaired by any amendment
of the Plan unless (1) the Company requests the consent of the
affected Participant, and (2) such Participant consents in
writing.
(vii) To submit any amendment to the Plan for
stockholder approval, including, but not limited to, amendments to
the Plan intended to satisfy the requirements of
(A) Section 162(m) of the Code regarding the exclusion of
performance-based compensation from the limit on corporate
deductibility of compensation paid to Covered Employees,
(B) Section 422 of the Code regarding “incentive
stock options” or (C) Rule 16b-3.
2.
(viii) To approve forms of Award Agreements for use
under the Plan and to amend the terms of any one or more Awards,
including, but not limited to, amendments to provide terms more
favorable to the Participant than previously provided in the Award
Agreement, subject to any specified limits in the Plan that are not
subject to Board discretion; provided however , that except
with respect to amendments that disqualify or impair the status of
an Incentive Stock Option, a Participant’s rights under any
Award shall not be impaired by any such amendment unless
(A) the Company requests the consent of the affected
Participant, and (B) such Participant consents in writing.
Notwithstanding the foregoing, subject to the limitations of
applicable law, if any, the Board may amend the terms of any one or
more Awards without the affected Participant’s consent if
necessary to maintain the qualified status of the Award as an
Incentive Stock Option or to bring the Award into compliance with
Section 409A of the Code.
(ix) 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 and that are not in
conflict with the provisions of the Plan or Awards.
(x) To adopt such procedures and sub-plans as are
necessary or appropriate to permit participation in the Plan by
Employees, Directors or Consultants who are foreign nationals or
employed outside the United States.
(c) D ELEGATION TO C OMMITTEE .
(i) General.
The Board may delegate some or all
of the administration of the Plan to a Committee or Committees. If
administration of the Plan is delegated to a Committee, the
Committee shall have, in connection with the administration of the
Plan, the powers theretofore possessed by the Board that have been
delegated to the Committee, including the power to delegate to a
subcommittee of the Committee any of the administrative powers the
Committee is authorized to exercise (and references in this Plan to
the Board shall thereafter be to the Committee or subcommittee),
subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the
Board. The Board may retain the authority to concurrently
administer the Plan with the Committee and may, at any time, revest
in the Board some or all of the powers previously
delegated.
(ii) Section 162(m) and Rule
16b-3 Compliance. The
Committee may consist solely of two or more Outside Directors, in
accordance with Section 162(m) of the Code, or solely of two
or more Non-Employee Directors, in accordance with Rule
16b-3.
(d) Effect of Board’s
Decision. All
determinations, interpretations and constructions made by the Board
in good faith shall not be subject to review by any person and
shall be final, binding and conclusive on all persons.
(e) Cancellation and Re-Grant of
Stock Awards. Neither
the Board nor any Committee shall have the authority to:
(i) reduce the exercise price of any outstanding Options or
Stock Appreciation Rights under the Plan, or (ii) cancel any
outstanding Options or Stock Appreciation Rights that have an
exercise price or strike price greater than the current Fair Market
Value of the Common Stock in exchange for cash or other Stock
Awards under the Plan, unless the stockholders of the Company have
approved such an action within twelve (12) months prior to
such an event.
3.
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3.
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S
HARES S UBJECT TO THE P LAN .
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(a) Share Reserve.
Subject to Section 9(a)
relating to Capitalization Adjustments, the aggregate number of
shares of Common Stock that may be issued pursuant to Stock Awards
from and after the Effective Date shall not exceed 12,520,535
shares (the “ Share Reserve ”), which
number is the sum of (i) the number of shares subject to the
Prior Plans’ Available Reserve, (ii) an additional
4,500,000 new shares, plus (iii) an additional number of
shares in an amount not to exceed 7,112,217 shares (which number
consists of the Returning Shares, if any, as such shares become
available from time to time). For clarity, the Share Reserve in
this Section 3(a) is a limitation on the number of shares of
the Common Stock that may be issued pursuant to the Plan and does
not limit the granting of Stock Awards except as provided in
Section 7(a). Shares may be issued in connection with a merger
or acquisition as permitted by, as applicable, NASDAQ Marketplace
Rule 4350(i)(1)(A)(iii), NYSE Listed Company Manual
Section 303A.08, AMEX Company Guide Section 711 or other
applicable stock exchange rules, and such issuance shall not reduce
the number of shares available for issuance under the Plan.
Furthermore, if a Stock Award or any portion thereof
(i) expires or otherwise terminates without all of the shares
covered by such Stock Award having been issued or (ii) is
settled in cash ( i.e. , the Participant receives cash
rather than stock), such expiration, termination or settlement
shall not reduce (or otherwise offset) the number of shares of
Common Stock that may be available for issuance under the
Plan.
(b) Subject to subsection 3(c), the number of shares
available for issuance under the Plan shall be reduced by:
(i) one (1) share for each share of stock issued pursuant
to (A) an Option granted under Section 5, or (B) a
Stock Appreciation Right granted under Section 5 with respect
to which the strike price is at least one hundred percent
(100%) of the Fair Market Value of the underlying Common Stock
on the date of grant; and (ii) 1.2 shares for each share of
Common Stock issued pursuant to a Restricted Stock Award,
Restricted Stock Unit Award, Performance Stock Award or Other Stock
Award.
(c) Reversion of Shares to the
Share Reserve.
(i) Shares Available For
Subsequent Issuance. If
any shares of common stock issued pursuant to a Stock Award are
forfeited back to the Company because of the failure to meet a
contingency or condition required to vest such shares in the
Participant, then the shares that are forfeited shall revert to and
again become available for issuance under the Plan. Notwithstanding
the provisions of this Section 3(c)(i), any such shares shall
not be subsequently issued pursuant to the exercise of Incentive
Stock Options. To the extent there is issued a share of Common
Stock pursuant to a Restricted Stock Award, Restricted Stock Unit
Award, Performance Stock Award or Other Stock Award, and such share
of Common Stock again becomes available for issuance under the Plan
pursuant to this Section 3(c), then the number of shares of
Common Stock available for issuance under the Plan shall increase
by 1.2 shares.
4.
(ii) Shares Not Available For
Subsequent Issuance. If
any shares subject to a Stock Award are not delivered to a
Participant because the Stock Award is exercised through a
reduction of shares subject to the Stock Award ( i.e .,
“net exercised”), the number of shares that are not
delivered to the Participant shall not remain available for
issuance under the Plan. Also, any shares reacquired by the Company
pursuant to Section 8(g) or as consideration for the exercise
of an Option shall not again become available for issuance under
the Plan.
(d) Incentive Stock Option
Limit. Notwithstanding
anything to the contrary in this Section 3 and, subject to the
provisions of Section 9(a) relating to Capitalization
Adjustments, the aggregate maximum number of shares of Common Stock
that may be issued pursuant to the exercise of Incentive Stock
Options shall be the number of shares in the Share
Reserve.
(e) Source of Shares.
The stock issuable under the Plan
shall be shares of authorized but unissued or reacquired Common
Stock, including shares repurchased by the Company on the open
market or otherwise.
(a) Eligibility for Specific
Stock Awards. Incentive
Stock Options may be granted only to employees of the Company or a
“parent corporation” or “subsidiary
corporation” thereof (as such terms are defined in Sections
424(e) and (f) of the Code). Stock Awards other than Incentive
Stock Options may be granted to Employees, Directors and
Consultants; provided, however , Nonstatutory Stock Options
and SARs may not be granted to Employees, Directors, and
Consultants who are providing Continuous Services only to any
“parent” of the Company, as such term is defined in
Rule 405 promulgated under the Securities Act, unless such Stock
Awards comply with the distribution requirements of
Section 409A of the Code.
(b) Ten Percent
Stockholders. A Ten
Percent Stockholder shall not be granted an Incentive Stock Option
unless the exercise price of such Option is at least one hundred
ten percent (110%) of the Fair Market Value on the date of
grant and the Option is not exercisable after the expiration of
five (5) years from the date of grant.
(c) Section 162(m)
Limitation on Annual Grants. Subject to the provisions of Section 9(a)
relating to Capitalization Adjustments, at such time as the Company
may be subject to the applicable provisions of Section 162(m)
of the Code, no Participant shall be eligible to be granted during
any calendar year Options, Stock Appreciation Rights and Other
Stock Awards whose value is determined by reference to an increase
over an exercise or strike price of at least one hundred percent
(100%) of the Fair Market Value on the date the Stock Award is
granted covering more than 2,000,000 shares of Common
Stock.
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5.
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P
ROVISIONS
RELATING
TO O PTIONS AND S TOCK A PPRECIATION R IGHTS .
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Each Option or SAR shall be in such
form and shall contain such terms and conditions as the Board shall
deem appropriate. All Options shall be separately designated
Incentive Stock Options or Nonstatutory Stock Options at the time
of grant, and, if certificates are issued, a separate certificate
or certificates shall be issued for shares of Common Stock
purchased on exercise of each type of Option. If an Option is not
specifically designated as an Incentive Stock Option, then the
Option shall be a Nonstatutory Stock Option. The provisions of
separate Options or SARs need not be identical; provided,
however , that each Option Agreement or Stock Appreciation
Right Agreement shall conform to (through incorporation of
provisions hereof by reference in the applicable Award Agreement or
otherwise) the substance of each of the following
provisions:
(a) Term. Subject to the provisions of Section 4(b)
regarding Ten Percent Stockholders, no Option or SAR shall be
exercisable after the expiration of seven (7) years from the
date of its grant or such shorter period specified in the Award
Agreement.
5.
(b) Exercise Price.
Subject to the provisions of
Section 4(b) regarding Ten Percent Stockholders, the exercise
price (or strike price) of each Option or SAR shall be not less
than one hundred percent (100%) of the Fair Market Value of
the Common Stock subject to the Option or SAR on the date the
Option or SAR is granted. Notwithstanding the foregoing, an Option
or SAR may be granted with an exercise price (or strike price)
lower than one hundred percent (100%) of the Fair Market Value
of the Common Stock subject to the Option or SAR if such Option or
SAR is granted pursuant to an assumption of or substitution for
another option or stock appreciation right pursuant to a Corporate
Transaction and in a manner consistent with the provisions of
Sections 409A and, if applicable, 424(a) of the Code. Each SAR will
be denominated in shares of Common Stock equivalents.
(c) Purchase Price for
Options. The purchase
price of Common Stock acquired pursuant to the exercise of an
Option shall be paid, to the extent permitted by applicable law and
as determined by the Board in its sole discretion, by any
combination of the methods of payment set forth below. The Board
shall have the authority to grant Options that do not permit all of
the following methods of payment (or otherwise restrict the ability
to use certain methods) and to grant Options that require the
consent of the Company to utilize a particular method of payment.
The permitted methods of payment are as follows:
(i) by cash, check, bank draft or money order
payable to the Company;
(ii) pursuant to a program developed under Regulation
T as promulgated by the Federal Reserve Board that, prior to the
issuance of the stock subject to the Option, results in either the
receipt of cash (or check) by the Company or the receipt of
irrevocable instructions to pay the aggregate exercise price to the
Company from the sales proceeds;
(iii) by delivery to the Company (either by actual
delivery or attestation) of shares of Common Stock;
(iv) if the option is a Nonstatutory Stock Option, by
a “net exercise” arrangement pursuant to which the
Company will reduce the number of shares of Common Stock issuable
upon exercise by the largest whole number of shares with a Fair
Market Value that does not exceed the aggregate exercise price;
provided, however , that the Company shall accept a cash or
other payment from the Participant to the extent of any remaining
balance of the aggregate exercise price not satisfied by such
reduction in the number of whole shares to be issued; provided,
further, that shares of Common Stock will no longer be subject
to an Option and will not be exercisable thereafter to the extent
that (A) shares issuable upon exercise are reduced to pay the
exercise price pursuant to the “net exercise,”
(B) shares are delivered to the Participant as a result of
such exercise, and (C) shares are withheld to satisfy tax
withholding obligations; or
(v) in any other form of legal consideration that
may be acceptable to the Board.
6.
(d) Exercise and Payment of a
SAR. To exercise any
outstanding Stock Appreciation Right, the Participant must provide
written notice of exercise to the Company in compliance with the
provisions of the Stock Appreciation Right Agreement evidencing
such Stock Appreciation Right. The appreciation distribution
payable on the exercise of a Stock Appreciation Right will be not
greater than an amount equal to the excess of (A) the
aggregate Fair Market Value (on the date of the exercise of the
Stock Appreciation Right) of a number of shares of Common Stock
equal to the number of Common Stock equivalents in which the
Participant is vested under such Stock Appreciation Right, and with
respect to which the Participant is exercising the Stock
Appreciation Right on such date, over (B) the strike price
that will be determined by the Board at the time of grant of the
Stock Appreciation Right. The appreciation distribution in respect
to a Stock Appreciation Right may be paid in Common Stock, in cash,
in any combination of the two or in any other form of
consideration, as determined by the Board and contained in the
Stock Appreciation Right Agreement evidencing such Stock
Appreciation Right.
(e) Transferability of Options
and SARs. The Board may,
in its sole discretion, impose such limitations on the
transferability of Options and SARs as the Board shall determine.
In the absence of such a determination by the Board to the
contrary, the following restrictions on the transferability of
Options and SARs shall apply:
(i) Restrictions on
Transfer. An Option or
SAR shall not be transferable except by will or by the laws of
descent and distribution and shall be exercisable during the
lifetime of the Participant only by the Participant; provided,
however , that the Board may, in its sole discretion, permit
transfer of the Option or SAR in a manner that is not prohibited by
applicable tax and securities laws upon the Participant’s
request. Except as explicitly provided herein, neither an Option
nor a SAR may be transferred for consideration.
(ii) Domestic Relations
Orders. Notwithstanding
the foregoing, an Option or SAR may be transferred pursuant to a
domestic relations order; provided, however , that if an
Option is an Incentive Stock Option, such Option may be deemed to
be a Nonstatutory Stock Option as a result of such
transfer.
(iii) Beneficiary
Designation. Notwithstanding the foregoing, the Participant
may, by delivering written notice to the Company, in a form
provided by or otherwise satisfactory to the Company and any broker
designated by the Company to effect Option exercises, designate a
third party who, in the event of the death of the Participant,
shall thereafter be entitled to exercise the Option or SAR and
receive the Common Stock or other consideration resulting from such
exercise. In the absence of such a designation, the executor or
administrator of the Participant’s estate shall be entitled
to exercise the Option or SAR and receive the Common Stock or other
consideration resulting from such exercise.
7.
(f) Vesting Generally.
The total number of shares of Common
Stock subject to an Option or SAR may vest and therefore become
exercisable in periodic installments that may or may not be equal.
The Option or SAR may be subject to such other terms and conditions
on the time or times when it may or may not be exercised (which may
be based on the satisfaction of Performance Goals or other
criteria) as the Board may deem appropriate. The vesting provisions
of individual Options or SARs may vary. The provisions of this
Section 5(f) are subject to any Option or SAR provisions
governing the minimum number of shares of Common Stock as to which
an Option or SAR may be exercised.
(g) Termination of Continuous
Service. Except as
otherwise provided in the applicable Award Agreement or other
agreement between the Participant and the Company, if a
Participant’s Continuous Service terminates (other than for
Cause or upon the Participant’s death or Disability), the
Participant may exercise his or her Option or SAR (to the extent
that the Participant was entitled to exercise such Award as of the
date of termination of Continuous Service) but only within such
period of time ending on the earlier of (i) the date three
(3) months following the termination of the
Participant’s Continuous Service (or such longer or shorter
period specified in the applicable Award Agreement), or
(ii) the expiration of the term of the Option or SAR as set
forth in the Award Agreement. If, after termination of Continuous
Service, the Participant does not exercise his or her Option or SAR
within the time specified herein or in the Award Agreement (as
applicable), the Option or SAR shall terminate.
(h) Extension of Termination
Date. If the exercise of
an Option or SAR following the termination of the
Participant’s Continuous Service (other than for Cause or
upon the Participant’s death or Disability) would be
prohibited at any time solely because the issuance of shares of
Common Stock would violate the registration requirements under the
Securities Act, then the Option or SAR shall terminate on the
earlier of (i) the expiration of a total period of three
(3) months (that need not be consecutive) after the
termination of the Participant’s Continuous Service during
which the exercise of the Option or SAR would not be in violation
of such registration requirements, or (ii) the expiration of
the term of the Option or SAR as set forth in the applicable Award
Agreement. In addition, unless otherwise provided in a
Participant’s Award Agreement, if the sale of any Common
Stock received upon exercise of an Option or SAR following the
termination of the Participant’s Continuous Service (other
than for Cause) would violate the Company’s insider trading
policy, then the Option or SAR shall terminate on the earlier of
(i) the expiration of a period equal to the applicable
post-termination exercise period after the termination of the
Participant’s Continuous Service during which the exercise of
the Option or SAR would not be in violation of the Company’s
insider trading policy, or (ii) the expiration of the term of
the Option or SAR as set forth in the applicable Award
Agreement.
(i) Disability of
Participant. Except as
otherwise provided in the applicable Award Agreement or other
agreement between the Participant and the Company, if a
Participant’s Continuous Service terminates as a result of
the Participant’s Disability, the Participant may exercise
his or her Option or SAR (to the extent that the Participant was
entitled to exercise such Option or SAR as of the date of
termination of Continuous Service), but only within such period of
time ending on the earlier of (i) the date twelve
(12) months following such termination of Continuous Service
(or such longer or shorter period specified in the Award
Agreement), or (ii) the expiration of the term of the Option
or SAR as set forth in the Award Agreement. If, after termination
of Continuous Service, the Participant does not exercise his or her
Option or SAR within the time specified herein or in the Award
Agreement (as applicable), the Option or SAR (as applicable) shall
terminate.
8.
(j) Death of
Participant. Except as
otherwise provided in the applicable Award Agreement or other
agreement between the Participant and the Company, if (i) a
Participant’s Continuous Service terminates as a result of
the Participant’s death, or (ii) the Participant dies
within the period (if any) specified in the Award Agreement after
the termination of the Participant’s Continuous Service for a
reason other than death, then the Option or SAR may be exercised
(to the extent the Participant was entitled to exercise such Option
or SAR as of the date of death) by the Participant’s estate,
by a person who acquired the right to exercise the Option or SAR by
bequest or inheritance or by a person designated to exercise the
Option or SAR upon the Participant’s death, but only within
the period ending on the earlier of (i) the date eighteen
(18) months following the date of death (or such longer or
shorter period specified in the Award Agreement), or (ii) the
expiration of the term of such Option or SAR as set forth in the
Award Agreement. If, after the Participant’s death, the
Option or SAR is not exercised within the time specified herein or
in the Award Agreement (as applicable), the Option or SAR shall
terminate.
(k) Termination for
Cause. Except as
explicitly provided otherwise in a Participant’s Award
Agreement, if a Participant’s Continuous Service is
terminated for Cause, the Option or SAR shall terminate upon the
date on which the event giving rise to the termination occurred,
and the Participant shall be prohibited from exercising his or her
Option or SAR from and after the time of such termination of
Continuous Service.
(l) Non-Exempt
Employees. No Option or
SAR granted to an Employee who is a non-exempt employee for
purposes of the Fair Labor Standards Act of 1938, as amended, shall
be first exercisable for any shares of Common Stock until at least
six months following the date of grant of the Option or SAR.
Notwithstanding the foregoing, consistent with the provisions of
the Worker Economic Opportunity Act, (i) in the event of the
Participant’s death or Disability, (ii) upon a Corporate
Transaction in which such Option or SAR is not assumed, continued,
or substituted, (iii) upon a Change in Control, or
(iv) upon the Participant’s retirement (as such term may
be defined in the Participant’s Award Agreement or in another
applicable agreement or in accordance with the Company’s then
current employment policies and guidelines), any such vested
Options and SARs may be exercised earlier than six months following
the date of grant. The foregoing provision is intended to operate
so that any income derived by a non-exempt employee in connection
with the exercise or vesting of an Option or SAR will be exempt
from his or her regular rate of pay.
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6.
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P
ROVISIONS
OF S TOCK A WARDS OTHER THAN O PTIONS AND SAR S .
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(a) Restricted Stock
Awards. Each Restricted
Stock Award Agreement shall be in such form and shall contain such
terms and conditions as the Board shall deem appropriate. To the
extent consistent with the Company’s Bylaws, at the
Board’s election, shares of Common Stock may be (x) held
in book entry form subject to the Company’s instructions
until any restrictions relating to the Restricted Stock Award
lapse; or (y) evidenced by a certificate, which certificate
shall be held in such form and manner as determined by the Board.
The terms and conditions of Restricted Stock Award Agreements may
change from time to time, and the terms and conditions of separate
Restricted Stock Award Agreements need not be identical;
provided, however , that each Restricted Stock Award
Agreement shall conform to (through incorporation of the provisions
hereof by reference in the agreement or otherwise) the substance of
each of the following provisions:
(i) Consideration.
A Restricted Stock Award may be
awarded in consideration for (A) cash, check, bank draft or
money order payable to the Company, (B) past services to the
Company or an Affiliate, or (C) any other form of legal
consideration (including future services) that may be acceptable to
the Board, in its sole discretion, and permissible under applicable
law.
9.
(ii) Vesting.
Shares of Common Stock awarded under
the Restricted Stock Award Agreement may be subject to forfeiture
to the Company in accordance with a vesting schedule to be
determined by the Board.
(iii) Termination of
Participant’s Continuous Service. If a Participant’s Continuous Service
terminates, the Company may receive through a forfeiture condition
or a repurchase right any or all of the shares of Common Stock held
by the Participant that have not vested as of the date of
termination of Continuous Service under the terms of the Restricted
Stock Award Agreement.
(iv) Transferability.
Rights to acquire shares of Common
Stock under the Restricted Stock Award Agreement shall be
transferable by the Participant only upon such terms and conditions
as are set forth in the Restricted Stock Award Agreement, as the
Board shall determine in its sole discretion, so long as Common
Stock awarded under the Restricted Stock Award Agreement remains
subject to the terms of the Restricted Stock Award
Agreement.
(v) Dividends.
A Restricted Stock Award Agreement
may provide that any dividends paid on Restricted Stock will be
subject to the same vesting and forfeiture restrictions as apply to
the shares subject to the Restricted Stock Award to which they
relate.
(b) Restricted Stock Unit
Awards. Each Restricted
Stock Unit Award Agreement shall be in such form and shall contain
such terms and conditions as the Board shall deem appropriate. The
terms and conditions of Restricted Sto