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As filed with the Securities and Exchange Commission on September 2, 2016
Registration No. 333-
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8REGISTRATION STATEMENT
UNDERTHESECURITIESACTOF1933
JUNIPER NETWORKS, INC.(Exact name of Registrant as specified in its charter)
Delaware 77-0422528
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
1133 Innovation WaySunnyvale, California 94089
(Address of principal executive offices, including zip code)
Aurrion, Inc. Amended and Restated 2008 Equity Incentive Plan(Full title of the plan)
Brian M. Martin, Esq.Senior Vice President, General Counsel and Secretary
Juniper Networks, Inc.1133 Innovation Way
Sunnyvale, California 94089(408) 745-2000
(Name, address and telephone number, including area code, of agent for service)
Copiesto:
Louis Lehot, Esq.DLA Piper LLP (US)
2000 University AvenueEast Palo Alto, California 94303
(650) 833-2330
Robert Mobassaly, Esq.Juniper Networks, Inc.1133 Innovation Way
Sunnyvale, California 94089(408) 745-2000
Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler”and“smallerreportingcompany”inRule12b-2oftheExchangeAct(Checkone).Largeacceleratedfiler x Acceleratedfiler ¨
Non-acceleratedfiler ¨(Donotcheckifasmallerreportingcompany) Smallerreportingcompany ¨
CALCULATION OF REGISTRATION FEEProposed
Title of Securitiesto be Registered
Amountto be
Registered (1)
MaximumOffering Price
Per Share
Proposed Maximum Aggregate
Offering Price Amount of
Registration FeeCommonStock,$0.00001parvaluepershare(“Common Stock ”),reservedforissuancepursuanttotheAurrion,Inc.AmendedandRestated2008EquityIncentivePlan(the“Aurrion Plan ”) 2,234,924shares(2) $23.12 $51,671,442.88(3) $5,204.00
(1) PursuanttoRule416(a)oftheSecuritiesActof1933,asamended(“Securities Act ”),thisRegistrationStatementshallalsocoveranyadditionalsharesoftheRegistrant’scommonstockthatbecomeissuableundertheAurrionPlanbyreasonofanystockdividend,stocksplit,recapitalizationorothersimilartransactioneffectedwithoutreceiptofconsiderationthatincreasesthenumberoftheRegistrant’soutstandingsharesofcommonstock.
(2) PursuanttotheAgreementandPlanofMergerdatedasofJuly28,2016,byandamongtheRegistrant,Aurrion,Inc.(“Aurrion ”),AardvarkAcquisitionCorp.andcertainotherparties,theRegistrantassumedalloutstandingstockoptionsandrestrictedstockunitawardsgrantedundertheAurrionPlanandsuchstockoptionsorrestrictedstockunitswereautomaticallyconvertedintooptionawardsorrestrictedstockunits(asapplicable)inrespectofsharesoftheRegistrant’scommonstock,subjecttoappropriateadjustmentstothenumberofsharesofeachsuchoptionorrestrictedstockunit.
(3) EstimatedsolelyforthepurposeofcalculatingtheregistrationfeepursuanttoRule457(h)undertheSecuritiesActof1933,asamended,onthebasisof$23.12pershare,theaverageofthehighandlowpricesoftheRegistrant’scommonstockonAugust31,2016,asreportedontheNewYorkStockExchange.
PART I
INFORMATION REQUIRED IN THE PROSPECTUS
TheinformationspecifiedinItem1andItem2ofPartIofFormS-8isomittedfromthisRegistrationStatementinaccordancewiththeprovisionsofRule428undertheSecuritiesActof1933,asamended(the“Securities Act ”),andtheintroductorynotetoPartIofFormS-8.ThedocumentscontainingtheinformationspecifiedinPartIofFormS-8willbedeliveredtotheAurrionPlanparticipantsasspecifiedbyRule428(b)(1)undertheSecuritiesAct.
PART II
INFORMATION REQUIRED IN REGISTRATION STATEMENT
Item 3. Incorporation of Documents by Reference.
TheRegistrantherebyincorporatesbyreferenceintothisRegistrationStatementthefollowingdocumentspreviouslyfiledwiththeSecuritiesandExchangeCommission(the“Commission ”):
(1) TheRegistrant’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2015,filedwiththeCommissiononFebruary19,2016;
(2) AllotherreportsfiledpursuanttoSection13(a)or15(d)oftheSecuritiesExchangeActof1934,asamended(the“Exchange Act ”),sincetheendof
thefiscalyearcoveredbytheRegistrant’sAnnualReportreferredtoinclause(1)above(otherthantheportionsofthesedocumentsnotdeemedtobefiled);and
(3) ThedescriptionsoftheRegistrant’scommonstockcontainedintheRegistrant’sRegistrationStatementonForm8-AfiledwiththeCommissiononOctober22,2009,includinganyamendmentorreportfiledforthepurposeofupdatingsuchdescription.
AlldocumentsfiledbytheRegistrantpursuanttoSections13(a),13(c),14and15(d)oftheExchangeActonorafterthedateofthisRegistrationStatementandpriortothefilingofapost-effectiveamendmenttothisRegistrationStatementthatindicatesthatallsecuritiesofferedhavebeensoldorthatderegistersallsecuritiesthenremainingunsoldshallbedeemedtobeincorporatedbyreferenceinthisRegistrationStatementandtobeparthereoffromthedateoffilingofsuchdocuments;provided ,however ,thatdocumentsorinformationdeemedtohavebeenfurnishedandnotfiledinaccordancewiththerulesoftheCommissionshallnotbedeemedincorporatedbyreferenceintothisRegistrationStatement.AnystatementcontainedinadocumentincorporatedordeemedtobeincorporatedbyreferencehereinshallbedeemedtobemodifiedorsupersededforpurposesofthisRegistrationStatementtotheextentthatastatementcontainedhereinorinanysubsequentlyfileddocumentwhichalsoisdeemedtobeincorporatedbyreferencehereinmodifiesorsupersedessuchstatement.Anysuchstatementsomodifiedorsupersededshallnotbedeemed,exceptassomodifiedorsuperseded,toconstituteapartofthisRegistrationStatement.
Item 4. Description of Securities.
Notapplicable.
Item 5. Interests of Named Experts and Counsel.
Notapplicable.
Item 6. Indemnification of Directors and Officers.
Delawarelawprovidesthatacorporationmayeliminateorlimitthepersonalliabilityofadirectortothecorporationoritsstockholdersformonetarydamagesforbreachoffiduciarydutyasadirector,subjecttocertainexceptions.Theeffectofthisprovisionistoeliminatethepersonalliabilityofdirectorstothecorporationoritsstockholdersformonetarydamagesforactionsinvolvingabreachoftheirfiduciarydutyofcare,includinganyactionsinvolvinggrossnegligence.TheRegistrant’srestatedcertificateofincorporationcontainssuchaprovisionthateliminatesthepersonalliabilityofitsdirectorstotheRegistrantoritsstockholdersformonetarydamagesforbreachoffiduciarydutyasadirectortothefullestextentpermittedbyapplicablelaw.
Delawarelawalsoprovides,ingeneral,thatacorporationhasthepowertoindemnifyanypersonwhowasorisapartyoristhreatenedtobemadeapartytoanythreatened,pendingorcompletedaction,suitorproceeding,whethercivil,criminal,administrativeorinvestigative(otherthananactionbyorintherightofthecorporation),becausethepersonisorwasadirectororofficerofthecorporation.Suchindemnitymaybeagainstexpenses(includingattorneys’fees),judgments,finesandamountspaidinsettlementactuallyandreasonablyincurredbythepersoninconnectionwithsuchaction,suitorproceeding,ifthepersonactedingoodfaithandinamannerthepersonreasonablybelievedtobeinornotopposedtothebestinterestsofthecorporationandif,withrespecttoanycriminalactionorproceeding,thepersondidnothavereasonablecausetobelievetheperson’sconductwasunlawful.Inaddition,underDelawarelaw,ingeneral,acorporationhasthepowertoindemnifyanypersonwhowasorisapartyoristhreatenedtobemadeapartytoanythreatened,pendingorcompletedactionorsuitbyorintherightofthecorporationtoprocureajudgmentinitsfavorbecausethepersonisorwasadirectororofficerofthecorporation,againstanyexpenses(includingattorneys’fees)actuallyandreasonablyincurredbythepersoninconnectionwiththedefenseorsettlementofsuchactionorsuitifthepersonactedingoodfaithandinamannerthepersonreasonablybelievedtobeinornotopposedtothebestinterestsofthecorporation.
Additionally,underDelawarelaw,acorporationgenerallyhasthepowertopurchaseandmaintaininsuranceonbehalfofanypersonwhoisorwasadirectororofficerofthecorporationagainstanyliabilityassertedagainstthepersoninanysuchcapacity,orarisingoutoftheperson’sstatusassuch,whetherornotthecorporationwouldhavethepowertoindemnifythepersonagainstsuchliabilityundertheprovisionsofthelaw.
TheRegistrant’samendedandrestatedbylawsprovidethattheRegistrantshallindemnifyanypersonmadeorthreatenedtobemadeapartytoanactionorproceeding,whethercriminal,civil,administrativeorinvestigative(otherthananactionbyorintherightoftheRegistrant),byreasonofthefactthatthepersonisorwasadirector,officer,employeeoragentoftheRegistrant,orisorwasservingattherequestoftheRegistrant,anypredecessoroftheRegistrantoranysubsidiaryoftheRegistrantasadirectororofficeratanotherentity,againstexpenses,includingattorneys’fees,judgments,finesandamountspaidinsettlementactuallyandreasonablyincurredinconnectionwithsuchaction,suitorproceeding.However,theaforementionedindemnificationappliesonlyiftheindemnifiedpersonactedingoodfaithandinamannerheorshereasonablybelievedtobeinornotopposedtothebestinterestoftheRegistrant,andwithrespecttoanycriminalactionorproceeding,hadnoreasonablecausetobelievehisorherconductwasunlawful.TheRegistrant’samendedandrestatedbylawsalsoprovidethattheRegistrantmay,butisnotrequired,toprovidetheaboveindemnification(subjecttothesamequalifications)withrespecttopersonswhoareorwereservingattherequestoftheRegistrantoranypredecessororsubsidiaryoftheRegistrantasanemployeeoragentofanotherentity.
TheRegistrant’samendedandrestatedbylawsfurtherprovidethattheRegistrantshallindemnifyanypersonwhowasorisapartyoristhreatenedtobemadeapartytoanythreatened,pendingorcompletedactionorsuitbyorintherightoftheRegistrantoranypredecessororsubsidiaryoftheRegistrant,toprocureajudgmentintheRegistrant’sfavor,byreasonofthefactthatheorsheisorwasadirectororofficeroftheRegistrantoranypredecessororsubsidiaryoftheRegistrant,orisorwasservingattherequestoftheRegistrantorpredecessororsubsidiaryoftheRegistrant,asadirector,officer,employeeoragentofanotherentity,againstexpenses,includingattorneys’fees,actuallyandreasonablyincurredbyhimorherinconnectionwiththedefenseorsettlementofsuchactionorsuit.However,thisindemnificationappliesonlyiftheindemnifiedpersonactedingoodfaithandinamannerwhichthepersonreasonablybelievedtobeinornotopposedtothebestinterestsoftheRegistrant,anypredecessoroftheRegistrant,oranysubsidiaryoftheRegistrantandnoindemnificationshallbemadeinrespectofanyclaim,issueormatterastowhichsuchpersonisadjudgedtobeliabletotheRegistrant,anypredecessoroftheRegistrant,oranysubsidiaryofRegistrant,unlessandonlytotheextentthattheDelawareCourtofChanceryorthecourtinwhichsuchactionorsuitwasbroughtdeterminesthatsuchpersonisentitledtosuchindemnity.TheRegistrant’samendedandrestatedbylawsalsoprovidethattheRegistrantmay,butisnotrequired,toprovidetheindemnificationdescribedinthisparagraph(subjecttothesamequalifications)withrespecttopersonswhoareorwereservingasemployeesandagentsoftheRegistrantoranypredecessororsubsidiaryoftheRegistrant,orisorwasservingattherequestoftheRegistrantoranypredecessororsubsidiaryoftheRegistrantasadirector,officer,employeeoragentofanotherentity.
TheRegistrant’samendedandrestatedbylawsalsoprovidethattheRegistrantshalladvancetoadirector,officer,employeeoragentoftheRegistranttheexpensesincurredindefendingacivilorcriminalaction,suitorproceedinginadvanceofthefinaldispositionofsuchaction,suitorproceedinguponreceiptofanundertakingbyoronbehalfofthedirector,officer,employeeoragenttorepaysuchamountifitshallultimatelybedeterminedthatheorsheisnotentitledtobeindemnifiedbytheRegistrant.
TheRegistrant’samendedandrestatedbylawsalsoprovidethattheRegistrantshallhavethepowertopurchaseandmaintaininsuranceonbehalfofanypersonwhoisorwasadirector,officer,employeeoragentoftheRegistrantorpredecessororsubsidiaryoftheRegistrant,orisorwasservingattherequestoftheRegistrantasadirector,officer,employeeoragentofanotherentity,againstanyliabilityassertedagainsthimorherandincurredbyhimorherinanysuchcapacity,orarisingoutofhisorherstatusassuch,whetherornottheRegistrantwouldhavethepowertoindemnifyhimorheragainstsuchliabilityundertheindemnificationprovisionsoftheRegistrant’samendedandrestatedbylaws.
PursuanttotheauthorityprovidedintheRegistrant’srestatedcertificateofincorporationandamendedandrestatedbylaws,theRegistranthasenteredintoindemnificationagreementswitheachofitsexecutiveofficersanddirectors,indemnifyingthemagainstcertainpotentialliabilitiesthatmayariseasaresultoftheirservicetotheRegistrant,andprovidingforcertainotherprotections.TheRegistrantalsomaintainsinsurancepolicieswhichinsureitsofficersanddirectorsagainstcertainliabilities.
Theforegoingsummariesarenecessarilysubjecttothecompletetextofthestatute,theRegistrant’srestatedcertificateofincorporationandamendedandrestatedbylawsandtheagreementsreferredtoaboveandarequalifiedintheirentiretybyreferencethereto.
Item 7. Exemption from Registration Claimed.
Notapplicable.
Item 8. Exhibits.Exhibit Number Description
4.1
JuniperNetworks,Inc.RestatedCertificateofIncorporation(incorporatedbyreferencetoExhibit3.1oftheRegistrant’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2013,filedwiththeCommissiononFebruary26,2014)
4.2
AmendedandRestatedBylawsofJuniperNetworks,Inc.(incorporatedbyreferencetoExhibit3.1oftheRegistrant’sreportonForm8-K,filedwiththeCommissiononFebruary5,2016).
4.3 Aurrion,Inc.AmendedandRestated2008EquityIncentivePlan.
5.1 OpinionofDLAPiperLLP(US)
23.1 ConsentofIndependentRegisteredPublicAccountingFirm.
23.2 ConsentofDLAPiperLLP(US)(containedinExhibit5.1)
24.1 PowerofAttorney(containedonsignaturepagehereto).
Item 9. Undertakings.
A. TheundersignedRegistrantherebyundertakes:
(1) Tofile,duringanyperiodinwhichoffersorsalesarebeingmade,apost-effectiveamendmenttothisRegistrationStatement:
(i) ToincludeanyprospectusrequiredbySection10(a)(3)oftheSecuritiesAct;
(ii) Toreflectintheprospectusanyfactsoreventsarisingaftertheeffectivedateoftheregistrationstatement(orthemostrecentpost-effectiveamendmentthereof)which,individuallyorintheaggregate,representafundamentalchangeintheinformationsetforthintheregistrationstatement.Notwithstandingtheforegoing,anyincreaseordecreaseinvolumeofsecuritiesoffered(ifthetotaldollarvalueofsecuritiesofferedwouldnotexceedthatwhichwasregistered)andanydeviationfromtheloworhighendoftheestimatedmaximumofferingrangemaybereflectedintheformofprospectusfiledwiththeCommissionpursuanttoRule424(b)if,intheaggregate,thechangesinvolumeandpricerepresentnomorethana20%changeinthemaximumaggregateofferingpricesetforthinthe“CalculationofRegistrationFee”tableintheeffectiveregistrationstatement;and
(iii) ToincludeanymaterialinformationwithrespecttotheplanofdistributionnotpreviouslydisclosedintheRegistrationStatementoranymaterialchangetosuchinformationintheRegistrationStatement.
Provided, however ,thatparagraphs(A)(1)(i)and(A)(1)(ii)donotapplyiftheregistrationstatementisonFormS-8,andtheinformationrequiredtobeincludedinapost-effectiveamendmentbythoseparagraphsiscontainedinperiodicreportsfiledwithorfurnishedtotheCommissionbytheRegistrantpursuanttoSection13orSection15(d)oftheExchangeActthatareincorporatedbyreferenceinthisRegistrationStatement.
(2) That,forthepurposeofdetermininganyliabilityundertheSecuritiesAct,eachsuchpost-effectiveamendmentshallbedeemedtobeanew
registrationstatementrelatingtothesecuritiesofferedtherein,andtheofferingofsuchsecuritiesatthattimeshallbedeemedtobetheinitialbonafideofferingthereof.
(3) Toremovefromregistrationbymeansofapost-effectiveamendmentanyofthesecuritiesbeingregisteredwhichremainunsoldattheterminationoftheoffering.
B. TheundersignedRegistrantherebyundertakesthat,forpurposesofdetermininganyliabilityundertheSecuritiesAct,eachfilingoftheRegistrant’sannualreportpursuanttoSection13(a)orSection15(d)oftheExchangeAct(and,whereapplicable,eachfilingofanemployeebenefitplan’sannualreportpursuanttoSection15(d)oftheExchangeAct)thatisincorporatedbyreferenceintheRegistrationStatementshallbedeemedtobeanewregistrationstatementrelatingtothesecuritiesofferedtherein,andtheofferingofsuchsecuritiesatthattimeshallbedeemedtobetheinitialbonafideofferingthereof.
C. InsofarasindemnificationforliabilitiesarisingundertheSecuritiesActof1933,maybepermittedtodirectors,officersandcontrollingpersonsoftheRegistrantpursuanttotheforgoingprovisions,orotherwise,theRegistranthasbeenadvisedthatintheopinionoftheSecuritiesandExchangeCommissionsuchindemnificationisagainstpublicpolicyasexpressedintheSecuritiesActandis,therefore,unenforceable.Intheeventthataclaimforindemnificationagainstsuchliabilities(otherthanthepaymentbytheRegistrantofexpensesincurredorpaidbyadirector,officerorcontrollingpersonoftheRegistrantinthesuccessfuldefenseofanyaction,suitorproceeding)isassertedbysuchdirector,officerorcontrollingpersoninconnectionwiththesecuritiesbeingregistered,theRegistrantwill,unlessintheopinionofitscounselthematterhasbeensettledbycontrollingprecedent,submittoacourtofappropriatejurisdictionthequestionofwhethersuchindemnificationbyitisagainstpublicpolicyasexpressedintheSecuritiesActandwillbegovernedbythefinaladjudicationofsuchissue.
SIGNATURES
PursuanttotherequirementsoftheSecuritiesActof1933,theRegistrantcertifiesthatithasreasonablegroundstobelievethatitmeetsalloftherequirementsforfilingonFormS-8andhasdulycausedthisRegistrationStatementtobesignedonitsbehalfbytheundersigned,thereuntodulyauthorized,intheCityofSunnyvale,StateofCalifornia,onSeptember2,2016.
JUNIPER NETWORKS, INC.
By: /s/RAMIRAHIM RamiRahim Chief Executive Officer
POWER OF ATTORNEY
KNOWALLPERSONSBYTHESEPRESENTS,thateachindividualwhosesignatureappearsbelowconstitutesandappointsRamiRahim,BrianMartin,andKennethMiller,jointlyandseverally,ashisorhertrueandlawfulattorneys-in-fact,eachwithfullpowerofsubstitutionandresubstitution,forhimorher,andinhisorhername,placeandstead,inanyandallcapacities,tosignanyandallamendments(includingpost-effectiveamendments)tothisRegistrationStatementonFormS-8,andtofilethesame,withallexhibitstheretoandalldocumentsinconnectiontherewith,withtheSecuritiesandExchangeCommission,grantinguntosaidattorneys-in-factandagents,andeachofthem,fullpowerandauthoritytodoandperformeachandeveryactandthingrequisiteandnecessarytobedone,asfullytoallintentsandpurposesasheorshemightorcoulddoinperson,andherebyratifyingandconfirmingallthateachofsaidattorneys-in-factandagentsoranyofthem,ortheirorhissubstituteorsubstitutes,maylawfullydoorcausetobedonebyvirtuehereof.PursuanttotherequirementsoftheSecuritiesActof1933,thisRegistrationStatementonFormS-8hasbeensignedbythefollowingpersonsinthecapacitiesandonthedatesindicated.
Signature Title Date
/s/RAMIRAHIM RamiRahim
ChiefExecutiveOfficerandDirector
(PrincipalExecutiveOfficer) September2,2016
/s/KENMILLER KenMiller
ExecutiveVicePresidentandChiefFinancialOfficer
(PrincipalFinancialOfficer) September2,2016
/s/TERRANCEF.SPIDELL TerranceF.Spidell
VicePresident,CorporateControllerandChiefAccountingOfficer
(PrincipalAccountingOfficer)
September2,2016
/s/SCOTTKRIENS ScottKriens ChairmanoftheBoardofDirectors September2,2016
PradeepSindhu
ChiefTechnicalOfficerandViceChairmanofthe
BoardofDirectors
/s/ROBERTM.CALDERONI RobertM.Calderoni Director September2,2016
/s/GARYDAICHENDT GaryDaichendt Director September2,2016
Signature Title Date
/s/KEVINDENUCCIO KevinDeNuccio Director September2,2016
/s/JAMESDOLCE JamesDolce Director September2,2016
/s/MERCEDESJOHNSON MercedesJohnson Director September2,2016
/s/RAHULMERCHANT RahulMerchant Director September2,2016
/s/WILLIAMR.STENSRUD WilliamR.Stensrud Director September2,2016
EXHIBIT INDEXExhibit Number Description
4.1
JuniperNetworks,Inc.RestatedCertificateofIncorporation(incorporatedbyreferencetoExhibit3.1oftheRegistrant’sAnnualReportonForm10-KforthefiscalyearendedDecember31,2013,filedwiththeCommissiononFebruary26,2014)
4.2
AmendedandRestatedBylawsofJuniperNetworks,Inc.(incorporatedbyreferencetoExhibit3.1oftheRegistrant’sreportonForm8-K,filedwiththeCommissiononFebruary5,2016).
4.3 Aurrion,Inc.AmendedandRestated2008EquityIncentivePlan.
5.1 OpinionofDLAPiperLLP(US)
23.1 ConsentofIndependentRegisteredPublicAccountingFirm.
23.2 ConsentofDLAPiperLLP(US)(containedinExhibit5.1)
24.1 PowerofAttorney(containedonsignaturepagehereto).
Exhibit 4.3
AURRION, INC.
AMENDED AND RESTATED 2008 EQUITY INCENTIVE PLAN
ARTICLE 1.
PURPOSES OF THE PLAN
1.1 Purposes .ThepurposesofthePlanare(a)toenhancetheCompany’sabilitytoattractandretaintheservicesofqualifiedemployees,officersanddirectors(includingnon-employeeofficersanddirectors),andconsultantsandotherserviceprovidersuponwhosejudgment,initiativeandeffortsthesuccessfulconductanddevelopmentoftheCompany’sbusinesslargelydepends,and(b)toprovideadditionalincentivestosuchpersonsorentitiestodevotetheirutmosteffortandskilltotheadvancementandbettermentoftheCompany,byprovidingthemanopportunitytoparticipateintheownershipoftheCompanyandtherebyhaveaninterestinthesuccessandincreasedvalueoftheCompany.
ARTICLE 2.
DEFINITIONS
ForpurposesofthisPlan,thefollowingtermsshallhavethemeaningsindicated:
2.1 Administrator .“Administrator”meanstheBoardor,iftheBoarddelegatesresponsibilityforanymattertotheCommittee,thetermAdministratorshallmeantheCommittee.FollowinganyChangeinControl,theAdministratormeanstheCompensationCommitteeoftheCompany’ssuccessor(orparentorsubsidiarythereof)or,ifnone,theboardofdirectorsofthesuccessorentity(orparentorsubsidiarythereof);providedthattheCompensationCommitteeorboardofdirectors,asapplicable,maydelegatecertainresponsibilitiestoacommitteecomprisedofmembersoftheboard,officersoremployeesoftheCompanyand/orCompany’ssuccessor.
2.2 Affiliated Company .“AffiliatedCompany”meansany“parentcorporation”or“subsidiarycorporation”oftheCompany,whethernowexistingorhereaftercreatedoracquired,asthosetermsaredefinedinSections424(e)and424(f)oftheCode,respectively.
2.3 Award .“Award”meansanyOption,RestrictedStock,RestrictedStockUnits,orStockAppreciationRightgrantedtoaParticipantunderthePlan.
2.4 Award Agreement .“AwardAgreement”meansanyOptionAgreement,RestrictedStockPurchaseAgreement,RestrictedStockUnitAwardAgreement,orStockAppreciationRightsAgreemententeredintobetweentheCompanyandaParticipantunderthePlan,includinganyrelatedNoticeofGrantthereunder.
2.5 Base Value .“BaseValue”shallhavethemeaningsetforthinSection8.3hereof.
2.6 Board .“Board”meanstheBoardofDirectorsoftheCompany.
2.7 Cause .“Cause”shall,unlessotherwisedefinedinaParticipant’swrittenemploymentagreementorAwardAgreement,mean:(a)thecommissionofanyactoffraud,embezzlementordishonestybyParticipantwhichadverselyaffectsthebusinessoftheCompany,theacquiringorsuccessorentity(orparentoranysubsidiarythereof),(b)anyunauthorizeduseordisclosurebyParticipantofconfidentialinformationortradesecretsoftheCompany,theacquiringorsuccessorentity(orparentoranysubsidiarythereof),(c)therefusaloromissionbytheParticipanttoperformanydutiesrequiredofhimifsuchdutiesareconsistentwithdutiescustomaryforthepositionheldwiththeCompany,theacquiringorsuccessorentity(orparentoranysubsidiarythereof),(d)anyactoromissionbytheParticipantinvolvingmalfeasanceorgrossnegligenceintheperformanceofParticipant’sdutiesto,ordeviationfromanyofthepoliciesordirectivesof,theCompanyortheacquiringorsuccessorentity(orparentoranysubsidiarythereof),(e)conductonthepartofParticipantwhichconstitutesthebreachofanystatutoryorcommonlawdutyofloyaltytotheCompany,theacquiringorsuccessorentity(orparentoranysubsidiarythereof),or(f)anyillegalactbyParticipantwhichadverselyaffectsthebusinessoftheCompany,theacquiringorsuccessorentity(orparentoranysubsidiarythereof),oranyfelonycommittedbyParticipant,asevidencedbyconvictionthereof.
2.8 Change in Control .“ChangeinControl”meanstheoccurrenceofanyofthefollowing:
(a) Theacquisition,directlyorindirectly,inonetransactionoraseriesofrelatedtransactions,byanypersonorgroup(withinthemeaningofSection13(d)(3)oftheSecuritiesExchangeActof1934,asamended)ofthebeneficialownershipofsecuritiesoftheCompanypossessingmorethanfiftypercent(50%)ofthetotalcombinedvotingpowerofalloutstandingsecuritiesoftheCompany,provided,however,thataChangeinControlshallnotresultuponsuchacquisitionofbeneficialownershipifsuchacquisitionoccursasaresultofapublicofferingoftheCompany’ssecuritiesoranyfinancingtransactionorseriesoffinancingtransactions;
(b) TheconsummationofamergerorconsolidationinwhichtheCompanyisnotthesurvivingentity,exceptforatransactioninwhichtheholdersoftheoutstandingvotingsecuritiesoftheCompanyimmediatelypriortosuchmergerorconsolidationholdasaresultofholdingCompanysecuritiespriortosuchtransaction,intheaggregate,securitiespossessingatleastfiftypercent(50%)ofthetotalcombinedvotingpowerofalloutstandingvotingsecuritiesofthesurvivingentityimmediatelyaftersuchmergerorconsolidation;
(c) AreversemergerinwhichtheCompanyisthesurvivingentitybutinwhichtheholdersoftheoutstandingvotingsecuritiesoftheCompanyimmediatelypriortosuchmergerhold,intheaggregate,securitiespossessinglessthanfiftypercent(50%)ofthetotalcombinedvotingpowerofalloutstandingvotingsecuritiesoftheCompanyoroftheacquiringentityimmediatelyaftersuchmerger;or
(d) Thesale,transferorotherdisposition(inonetransactionoraseriesofrelatedtransactions)ofallorsubstantiallyalloftheassetsoftheCompany,exceptforatransactioninwhichtheholdersoftheoutstandingvotingsecuritiesoftheCompanyimmediatelypriortosuchtransaction(s)receiveasadistributionwithrespecttosecuritiesoftheCompany,intheaggregate,securitiespossessingatleastfiftypercent(50%)ofthetotalcombinedvotingpowerofalloutstandingvotingsecuritiesoftheacquiringentityimmediatelyaftersuchtransaction(s).
2
2.9 Code .“Code”meanstheInternalRevenueCodeof1986,asamendedfromtimetotime,andapplicableTreasuryRegulationsandadministrativeguidancepromulgatedthereunder.
2.10 Committee .“Committee”meansacommitteeoftwoormoremembersoftheBoardappointedtoadministerthePlanpursuanttoSection9.1hereof.
2.11 Common Stock .“CommonStock”meanstheCommonStockoftheCompany.
2.12 Company .“Company”meansAurrion,Inc.,aDelawarecorporation.
2.13 Consultant .“Consultant”meansanyconsultantoradvisorif:(a)theconsultantoradvisorrendersbonafideservicestotheCompanyoranyAffiliatedCompany;(b)theservicesrenderedbytheconsultantoradvisorarenotinconnectionwiththeofferorsaleofsecuritiesinacapital-raisingtransactionanddonotdirectlyorindirectlypromoteormaintainamarketfortheCompany’ssecurities;and(c)theconsultantoradvisorisanaturalpersonwhohascontracteddirectlywiththeCompanyoranyAffiliatedCompanytorendersuchservices.
2.14 Continuous Service .UnlessotherwiseprovidedinanAwardAgreement,thetermsofwhichmaybedifferentfromthefollowing,“ContinuousService”means(a)Participant’semploymentbyeithertheCompanyoranyAffiliatedCompany,orbysuccessorentityfollowingaChangeinControl,whichisuninterruptedexceptforvacations,illness(notincludingpermanentDisability),orleavesofabsencewhichareapprovedinwritingbytheCompanyoranyofsuchotheremployercorporations,asapplicable,(b)serviceasamemberoftheBoarduntiltheParticipantresigns,isremovedfromoffice,orParticipant’stermofofficeexpiresandheorsheisnotreelected,or(c)solongastheParticipantisengagedasaConsultantorotherServiceProvider.
2.15 Disability .“Disability”meanspermanentandtotaldisabilityasdefinedinSection22(e)(3)oftheCode.TheAdministrator’sdeterminationofaDisabilityortheabsencethereofshallbeconclusiveandbindingonallinterestedparties.
2.16 Effective Date .“EffectiveDate”meansDecember17,2010.
2.17 Established Securities Market .“EstablishedSecuritiesMarket”meanseither:(a)asecuritiesexchangeregisteredwiththeSecuritiesandExchangeCommissionunderSection6oftheExchangeAct;(b)aforeignnationalsecuritiesexchangeofficiallyrecognized,sanctionedorsupervisedbygovernmentalauthority;or(c)anOTCMarket.
2.18 Exchange Act .“ExchangeAct”meanstheSecuritiesandExchangeActof1934,asamended.
2.19 Exercise Price .“ExercisePrice”meansthepurchasepricepershareofCommonStockpayableuponexerciseofanOption.
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2.20 Fair Market Value .“FairMarketValue”onanygivendatemeansthevalueofashareofCommonStock,determinedasfollows:
(a) IftheCommonStockisthenreadilytradableonanEstablishedSecuritiesMarket,theFairMarketValueshallbedeterminedbytheAdministratorthroughtheapplicationofavaluationmethodpermittedunderTreasuryRegulationSection1.409A-l(b)(5)(iv)(A);and
(b) IftheCommonStockisnotthenreadilytradableonanEstablishedSecuritiesMarket,theFairMarketValueshallbedeterminedbytheAdministratoringoodfaiththroughthereasonableapplicationofareasonablevaluationmethodinaccordancewithTreasuryRegulationSection1.409A-l(b)(5)(iv)(B),whichdeterminationshallbeconclusiveandbindingonallinterestedparties.
2.21 FINRA Dealer .“FINRADealer”meansabroker-dealerthatisamemberoftheFinancialIndustryRegulatoryAuthority,Inc.
2.22 Incentive Option .“IncentiveOption”meansanyOptiondesignatedandqualifiedasan“incentivestockoption”asdefinedinSection422oftheCode.
2.23 New Incentives .“NewIncentives”shallhavethemeaningsetforthinSection10.1(a)hereof.
2.24 Nonqualified Option .“NonqualifiedOption”meansanyOptionthatisnotanIncentiveOption.TotheextentanyOptiondesignatedasanIncentiveOptionfailsinwholeorinparttoqualifyasanIncentiveOption,includingwithoutlimitation,forfailuretomeettherequirementsapplicableto10%StockholdersorbecausetheannuallimitdescribedinSection5.6hereofisexceeded,itshalltothatextentconstituteaNonqualifiedOption.
2.25 Notice of Grant .“NoticeofGrant”meansthenoticethatsetsforththeindividualtermsofanAwardtowhichtheAwardAgreementmaybeattached.
2.26 Option .“Option”meansanyoptiontopurchaseCommonStockgrantedpursuanttoArticle5hereof.
2.27 Option Agreement .“OptionAgreement”meansthewrittenagreemententeredintobetweentheCompanyandanOptioneewithrespecttoanOptiongrantedunderthePlan.
2.28 Optionee .“Optionee”meansaParticipantwhoholdsanOption.
2.29 OTC Market .“OTCMarket”meansanover-the-countermarketreflectedbytheexistenceofaninterdealerquotationsystem.
2.30 Participant .“Participant”meansanindividualthatholdsanOption,RestrictedStock,RestrictedStockUnit,orStockAppreciationRightgrantedpursuanttothePlan.
2.31 Plan .“Plan”meansthisAmendedandRestated2008EquityIncentivePlanoftheCompany,asamendedJuly27,2016.
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2.32 Publicly Held .“PubliclyHeld”means,withrespecttotheCompany,anypointintimeinwhichanyclassofcommonequitysecuritiesoftheCompanyarerequiredtoberegisteredunderSection12oftheExchangeAct.
2.33 Purchase Price .“PurchasePrice”meansthepurchasepricepayabletopurchaseashareofRestrictedStock.
2.34 Repurchase Rights .“RepurchaseRights”meanstherightoftheCompanytorepurchasesharesofCommonStockissuedpursuanttoanAwardgrantedunderthePlan.
2.35 Restricted Stock .“RestrictedStock”meanssharesofCommonStockissuedpursuantthePlan,subjecttoanyrestrictionsandconditionsasareestablishedpursuanttosuchArticle6.
2.36 Restricted Stock Unit .“RestrictedStockUnit”meansabookkeepingentryrepresentinganamountequaltotheFairMarketValueofoneshareofCommonStock,grantedpursuanttoArticle7.EachRestrictedStockUnitrepresentsanunfundedandunsecuredobligationoftheCompany,subjecttothetermsandconditionsoftheapplicableRestrictedStockUnitAwardAgreement,andeachholderofaRestrictedStockUnitshallhavenorightsotherthanthoseofageneralcreditoroftheCompany.
2.37 Restricted Stock Purchase Agreement .“RestrictedStockPurchaseAgreement”meansthewrittenagreemententeredintobetweentheCompanyandaParticipantwithrespecttothepurchaseofRestrictedStockunderthePlan.
2.38 Restricted Stock Unit Award Agreement .“RestrictedStockUnitAwardAgreement”meansthewrittenagreemententeredintobetweentheCompanyandaParticipantwithrespecttothepurchaseofRestrictedStockUnitsunderthePlan.
2.39 Securities Act .“SecuritiesAct”meanstheSecuritiesActof1933,asamended.
2.40 Service Provider .“ServiceProvider”meansaConsultantorothernaturalpersontheAdministratorauthorizestobecomeaParticipantinthePlanandwhoprovidesservicesto:(a)theCompany;(b)anAffiliatedCompany;or(c)anyotherbusinessventuredesignatedbytheAdministratorinwhichtheCompany(oranyentitythatisasuccessortotheCompany)oranAffiliatedCompanyhasasignificantownershipinterest.
2.41 Stock Appreciation Right .“StockAppreciationRight”meansacontractualrightgrantedtoaParticipantpursuanttoArticle8hereof,theexerciseorsettlementofwhichentitlestheParticipanttoreceivesharesofCommonStock,cash,oracombinationofCommonStockandcash,equaltothedifferencebetweentheBaseValuepershareoftheStockAppreciationRightandtheFairMarketValueofashareofCommonStockonthedateofexerciseorsettlement,multipliedbythenumberofsharessubjecttotheStockAppreciationRightatsuchtime,andsubjecttosuchconditionssetforthinthisPlanandtheapplicableStockAppreciationRightsAgreement.
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2.42 Stock Appreciation Rights Agreement .“StockAppreciationRightsAgreement”meansthewrittenagreemententeredintobetweentheCompanyandaParticipantwithrespecttoaStockAppreciationRightgrantedunderthePlan.
2.43 10% Stockholder .“10%Stockholder”meansapersonwho,asofarelevantdate,ownsorisdeemedtoown(byreasonoftheattributionrulesapplicableunderSection424(d)oftheCode)stockpossessingmorethan10%ofthetotalcombinedvotingpowerofallclassesofstockoftheCompanyorofanAffiliatedCompanymeasuredasofanIncentiveOption’sdateofgrant.
2.44 Treasury Regulations .“TreasuryRegulations”shallmeantheregulationsoftheUnitedStatesTreasuryDepartmentpromulgatedundertheCode.
ARTICLE 3.
ELIGIBILITY
3.1 Incentive Options .OnlyemployeesoftheCompanyorofanAffiliatedCompany(includingofficersoftheCompanyandmembersoftheBoardiftheyareemployeesoftheCompanyorofanAffiliatedCompany)areeligibletoreceiveIncentiveOptionsunderthePlan.
3.2 Nonqualified Options, Restricted Stock and Stock Appreciation Rights .EmployeesoftheCompanyorofanAffiliatedCompany,membersoftheBoard(whetherornotemployedbytheCompanyoranAffiliatedCompany),andServiceProvidersareeligibletoreceiveNonqualifiedOptions,RestrictedStock,RestrictedStockUnits,orStockAppreciationRightsunderthePlan.
3.3 Section 162(m) Limitation .Onandaftersuchtime,ifany,thattheCompanyisPubliclyHeld,noemployeeoftheCompanyorofanAffiliatedCompanyshallbeeligibletobegrantedOptionsorStockAppreciationRightscoveringmorethan200,000sharesofCommonStockduringanycalendaryear;provided,however,theprecedinglimitationshallnotapplyuntiltheearliesttimerequiredforcompensationattributabletoOptionsorStockAppreciationsgrantedunderthePlantobeexemptfromthedeductionlimitationofSection162(m)oftheCode.
ARTICLE 4.
PLAN SHARES
4.1 Shares Subject to the Plan .Thereare29,407,865sharesofCommonStockavailableforissuanceunderthePlan.Ofthistotal,29,407,865sharesofCommonStockareavailableforissuancepursuanttoIncentiveOptions.ForpurposesofthisSection4.1,intheeventthat(a)alloranyportionofanyAwardgrantedorofferedunderthePlancannolongerunderanycircumstancesbeexercisedor(b)anysharesofCommonStockarereacquiredbytheCompanywhichwereinitiallythesubjectofanAwardAgreement,thesharesofCommonStockallocabletotheunexercisedportionofsuchAward,orthesharessoreacquired,shallagainbeavailableforgrantorissuanceunderthePlan.
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4.2 Changes in Capital Structure .IntheeventthattheoutstandingsharesofCommonStockarehereafterincreasedordecreasedorchangedintoorexchangedforadifferentnumberorkindofsharesorothersecuritiesoftheCompanybyreasonofarecapitalization,stocksplit,reversestocksplit,combinationofshares,reclassification,stockdividend,orotherchangeinthecapitalstructureoftheCompany,thenappropriateadjustmentsshallbeautomaticallymadetotheaggregatenumberandkindofsharessubjecttothisPlan,thenumberandkindofsharesandtheexercisepriceorpurchasepricepersharesubjecttooutstandingAwardAgreements,andthelimitsonthenumberofsharesunderSections3.3and4.1hereof,allinordertopreserve,asnearlyaspractical,butnottoincrease,thebenefitstoParticipants.
ARTICLE 5.
OPTIONS
5.1 Option Agreement .EachOptiongrantedpursuanttothisPlanshallbeevidencedbyanOptionAgreementthatshallspecifythenumberofsharessubjectthereto,theExercisePricepershare,andwhethertheOptionisanIncentiveOptionorNonqualifiedOption.AssoonasispracticalfollowingthegrantofanOption,anOptionAgreementshallbedulyexecutedanddeliveredbyoronbehalfoftheCompanytotheOptioneetowhomsuchOptionisgranted.EachOptionAgreementshallbeinsuchformandcontainsuchadditionaltermsandconditions,notinconsistentwiththeprovisionsofthisPlan,astheAdministratorshall,fromtimetotime,deemdesirable,includingwithoutlimitation,theimpositionofanyrightsoffirstrefusalandresaleobligationsuponanysharesofCommonStockacquiredpursuanttoanOptionAgreement.EachOptionAgreementmaybedifferentfromeachotherOptionAgreement.
5.2 Exercise Price .TheExercisePricepershareofCommonStockcoveredbyeachOptionshallbedeterminedbytheAdministrator,providedthat(a)theExercisePriceshallnotbelessthan100%oftheFairMarketValuepershareofCommonStockonthedatetheOptionisgranted,and(b)inthecaseofanIncentiveOptiongrantedtoa10%Stockholder,theExercisePriceshallnotbelessthan110%oftheFairMarketValuepershareofCommonStockonthedatetheIncentiveOptionisgranted.However,anOptionmaybegrantedwithanExercisePricelowerthanthatsetforthintheprecedingsentenceifsuchOptionisgrantedpursuanttoanassumptionorsubstitutionforanotheroptioninamannersatisfyingtheprovisionsofSections424oftheCode,asapplicable.
5.3 Payment of Exercise Price .PaymentoftheExercisePriceshallbemadeuponexerciseofanOptionandmaybemade,inthediscretionoftheAdministrator,subjecttoanyrestrictionsunderapplicablecorporatelaw,by:
(a) cash;
(b) check;
(c) surrenderofsharesofCommonStockacquiredpursuanttotheexerciseofanOption,whichsurrenderedsharesshallbevaluedatFairMarketValueasofthedateofsuchexercise;
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(d) deliveryofapromissorynoteinaformandwithsuchrecourse,interest,securityandotherprovisionsastheAdministratordeterminestobeappropriate(subjecttoapplicablecorporatelaw);
(e) cancellationofindebtednessoftheCompanytotheOptionee;
(f) waiverofcompensationdueoraccruedtotheOptioneeforservicesrendered;
(g) providedthatapublicmarketfortheCommonStockexists,a“samedaysale”commitmentfromtheOptioneeandanFINRADealerwherebytheOptioneeirrevocablyelectstoexercisetheOptionandtosellaportionofthesharessopurchasedtopayfortheExercisePriceandwherebytheFINRADealerirrevocablycommitsuponreceiptofsuchsharestoforwardtheExercisePricedirectlytotheCompany;
(h) providedthatapublicmarketfortheCommonStockexists,a“margin”commitmentfromtheOptioneeandanFINRADealerwherebytheOptioneeirrevocablyelectstoexercisetheOptionandtopledgethesharessopurchasedtotheFINRADealerinamarginaccountassecurityforaloanfromtheFINRADealerintheamountoftheExercisePrice,andwherebytheFINRADealerirrevocablycommitsuponreceiptofsuchsharestoforwardtheExercisePricedirectlytotheCompany;or
(i) anycombinationoftheforegoingmethodsofpaymentoranyotherconsiderationormethodofpaymentasshallbepermittedbyapplicablecorporatelaw.
5.4 Term and Termination of Options .ThetermandprovisionsforterminationofeachOptionshallbeasfixedbytheAdministrator,butnoOptionmaybeexercisablemorethanten(10)yearsafterthedateitisgranted.AnIncentiveOptiongrantedtoapersonwhoisa10%Stockholderonthedateofgrantshallnotbeexercisablemorethanfive(5)yearsafterthedateitisgranted.
5.5 Vesting and Exercise of Options .EachOptionshallvestandbecomeexercisableinoneormoreinstallmentsatsuchtimeortimesandsubjecttosuchconditions,includingwithoutlimitation,theachievementofspecifiedperformancegoalsorobjectives,asshallbedeterminedbytheAdministrator.Notwithstandingtheforegoing,eachOptiongrantedtoanemployeeoftheCompanyorAffiliatedCompanyshallprovidethattheemployeeshallhavetherighttoexercisethevestedportionofanyOptionheldattheterminationoftheemployee’sContinuousServiceforatleastthirty(30)daysfollowingterminationoftheemployee’sContinuousServiceforanyreasonotherthanCauseandthattheemployee(oremployee’sdesignee)shallhavetherighttoexercisetheOptionforatleastsix(6)monthsifsuchterminationofemployee’sContinuousServiceisduetothedeathorDisabilityoftheemployee.
5.6 Annual Limit on Incentive Options .Totheextentrequiredfor“incentivestockoption”treatmentunderSection422oftheCode,iftheaggregateFairMarketValue(determinedasofthedateofgrant)oftheCommonStockwithrespecttowhichIncentiveOptionsgrantedunderthisPlanandanyotherplanoftheCompanyoranyAffiliatedCompanybecomesexercisableforthefirsttimebyanOptioneeduringanycalendaryearexceeds$100,000,suchexcessshallbeaNonqualifiedOption.
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5.7 Nontransferability of Options .ExceptasotherwiseprovidedbytheAdministratorinanOptionAgreementandaspermissibleunderapplicablelaw,noOptionshallbeassignableortransferableexceptbywill,thelawsofdescentanddistributionorpursuanttoadomesticrelationsorder,andduringthelifeoftheOptioneeshallbeexercisableonlybysuchOptionee.Notwithstandingfortheforgoing,theAdministratormaygrantNonqualifiedOptionsthatmaytransferredtoarevocabletrustorasotherwisepermittedunderRule701oftheSecuritiesAct.
5.8 Rights as Stockholder .AnOptioneeorpermittedtransfereeofanOptionshallhavenorightsorprivilegesasastockholderwithrespecttoanysharescoveredbyanOptionuntilsuchOptionhasbeendulyexercisedandsharespurchaseduponsuchexercisehavebeenissuedtosuchperson.
5.9 Unvested Shares .TheAdministratorshallhavethediscretiontograntOptionsthatareexercisableforunvestedsharesofCommonStockonsuchtermsandconditionsastheAdministratorshalldeterminefromtimetotime.
5.10 Company’s Repurchase Right .IntheeventofaterminationofanOptionee’sContinuousServiceforanyreasonwhatsoever(includingdeathorDisability),theOptionAgreementmayprovide,inthediscretionoftheAdministrator,thattheCompany,oritsassignee,shallhavetheright,exercisableatthediscretionoftheAdministrator,torepurchasesharesofCommonStockacquiredpursuanttotheexerciseofanOptionatanytimeonsuchtermsasmaybeprovidedintheOptionAgreement.TherepurchasepriceforsharesrepurchasedbytheCompanyshallbeassetforthinthedocumentevidencingtheRepurchaseRight,subjecttothefollowingrequirements:
(a) Inthecaseofvestedshares,therepurchasepriceshallbeequaltotheFairMarketValuepershareofCommonStockasofthedateofterminationofOptionee’sContinuousService;and
(b) Inthecaseofunvestedshares,therepurchasepricemaybeequaltooneofthefollowing:(i)theFairMarketValuepershareofCommonStockasofthedateofterminationofOptionee’sContinuousService,(ii)theExercisePricepaidpershare,or(iii)thelesserof(A)theExercisePricepaidpershare,or(B)theFairMarketValuepershareofCommonStockasofthedateofterminationofOptionee’sContinuousService.
ThetermsuponwhichtheCompany’sRepurchaseRightshallbeexercisable(includingbutnotlimitedtotheperiodandprocedureforexerciseandthetimingandmethodofpaymentforthepurchasedshares)shallbeestablishedbytheAdministratorandsetforthinthedocumentevidencingsuchRepurchaseRight.
5.11 Compliance with Code Section 409A .NotwithstandinganythinginthisArticle5tothecontrary,allOptionsareintendedtobestructuredtosatisfytherequirementsofCodeSection409A,oranapplicableexemption,asdeterminedbytheAdministrator.
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ARTICLE 6.
RESTRICTED STOCK
6.1 Issuance and Sale of Restricted Stock .TheAdministratorshallhavetheauthoritytograntRestrictedStockunderthisPlan,subjecttosuchterms,restrictionsandconditionsastheAdministratormaydetermineatthetimeofgrant.Suchconditionsmayinclude,butarenotlimitedto,continuedemploymentortheachievementofspecifiedperformancegoalsorobjectives.ThePurchasePriceofRestrictedStock,whichmayincludezerodollars($0),shallbedeterminedbytheAdministratorinitssolediscretion.
6.2 Restricted Stock Purchase Agreements .AParticipantshallhavenorightswithrespecttothesharesofRestrictedStockcoveredbyaRestrictedStockPurchaseAgreementuntiltheParticipanthaspaidthefullPurchasePricetotheCompanyinthemannersetforthinSection6.3hereofandhasexecutedanddeliveredtotheCompanytheRestrictedStockPurchaseAgreement.EachRestrictedStockPurchaseAgreementshallbeinsuchform,andshallsetforththePurchasePriceandsuchotherterms,conditionsandrestrictionsoftheRestrictedStock,notinconsistentwiththeprovisionsofthisPlan,astheAdministratorshall,fromtimetotime,deemdesirable.EachRestrictedStockPurchaseAgreementmaybedifferentfromeachotherRestrictedStockPurchaseAgreement.
6.3 Payment of Purchase Price .Subjecttoanyrestrictionsunderapplicablecorporatelaw,paymentofthePurchasePricemaybemade,inthediscretionoftheAdministrator,by:
(a) cash;
(b) check;
(c) surrenderofsharesofCommonStockownedbytheParticipant,whichsurrenderedsharesshallbevaluedatFairMarketValueasofthedateofsuchacceptance;
(d) deliveryofapromissorynoteinaformandwithsuchrecourse,interest,securityandotherprovisionsastheAdministratordeterminestobeappropriate(subjecttoapplicablecorporatelaw);
(e) cancellationofindebtednessoftheCompanytotheParticipant;
(f) thewaiverofcompensationdueoraccruedtotheParticipantforservicesrendered;or
(g) anycombinationoftheforegoingmethodsofpaymentoranyotherconsiderationormethodofpaymentasshallbepermittedbyapplicablecorporatelaw.
6.4 Rights as a Stockholder .UponcomplyingwiththeprovisionsofSection6.2hereof,aParticipantshallhavetherightsofastockholderwithrespecttotheRestrictedStockpurchasedpursuanttoaRestrictedStockPurchaseAgreement,includingvotinganddividendrights,subjecttotheterms,restrictionsandconditionsasaresetforthinsuchRestrictedStock
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PurchaseAgreement.UnlesstheAdministratorshalldetermineotherwise,certificatesevidencingsharesofRestrictedStockshallremaininthepossessionoftheCompanyuntilsuchshareshavevestedinaccordancewiththetermsoftheRestrictedStockPurchaseAgreement.
6.5 Transfer Restrictions .SharesofRestrictedStockmaynotbesold,assigned,transferred,pledgedorotherwiseencumberedordisposedofexceptasspecificallyprovidedintheRestrictedStockPurchaseAgreement.
6.6 Company’s Repurchase Right .IntheeventofaterminationofaParticipant’sContinuousServicewiththeCompanyforanyreasonwhatsoever(includingdeathorDisability),theRestrictedStockPurchaseAgreementmayprovide,inthediscretionoftheAdministrator,thattheCompanyshallhavetheright,exercisableatthediscretionoftheAdministrator,torepurchasesharesofCommonStockacquiredpursuanttoaRestrictedStockPurchaseAgreement,onsuchtermsasmaybeprovidedintheRestrictedStockPurchaseAgreement.TherepurchasepriceforsharesrepurchasedbytheCompanyshallbeassetforthinthedocumentevidencingtheRepurchaseRight,subjecttothefollowingrequirements:
(a) Inthecaseofvestedshares,therepurchasepriceshallbeequaltotheFairMarketValuepershareofCommonStockasofthedateofterminationofParticipant’sContinuousService;and
(b) Inthecaseofunvestedshares,therepurchasepricemaybeequaltooneofthefollowing:(i)theFairMarketValuepershareofCommonStockasofthedateofterminationofParticipant’sContinuousService,(ii)theoriginalPurchasePricepaidpershare,ifany,or(iii)thelesserof(A)theoriginalPurchasePricepaidpershare,ifany,or(B)theFairMarketValuepershareofCommonStockasofthedateofterminationofParticipant’sContinuousService.
ThetermsuponwhichsuchRepurchaseRightshallbeexercisable(includingbutnotlimitedtotheperiodandprocedureforexerciseandthetimingandmethodofpaymentforthepurchasedshares)shallbeestablishedbytheAdministratorandsetforthinthedocumentevidencingsuchRepurchaseRight.
6.7 Vesting of Restricted Stock .TheRestrictedStockPurchaseAgreementshallspecifythedateordates,theperformancegoalsorobjectiveswhichmustbeachieved,andanyotherconditionsonwhichtheRestrictedStockmayvest.
6.8 Dividends .IfpaymentforsharesofRestrictedStockismadebypromissorynote,anycashdividendspaidwithrespecttotheRestrictedStockmaybeapplied,inthediscretionoftheAdministrator,torepaymentofsuchnote.
6.9 Compliance with Code Section 409A .NotwithstandinganythinginthisArticle6tothecontrary,allRestrictedStockAwardsareintendedtobestructuredtosatisfytherequirementsofCodeSection409A,oranapplicableexemption,asdeterminedbytheAdministrator.
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ARTICLE 7.
RESTRICTED STOCK UNITS
7.1 Grant of Restricted Stock Units .RestrictedStockUnitsmaybegrantedatanytimeandfromtimetotimeasdeterminedbytheAdministrator.AftertheAdministratordeterminesthatitwillgrantRestrictedStockUnitsunderthePlan,itshalladvisetheParticipantinwritingorelectronicallyoftheterms,conditions,andrestrictionsrelatedtothegrant,includingthenumberofRestrictedStockUnitsandtheformofpayout,whichmaybelefttothediscretionoftheAdministrator.UntilthesharesofCommonStockareissued,norighttovoteorreceivedividendsoranyotherrightsasastockholdershallexistwithrespecttotheRestrictedStockUnitstoacquireShares.
7.2 Vesting Criteria and Other Terms .TheAdministratorshallsetvestingcriteriainitsdiscretion,which,dependingontheextenttowhichthecriteriaaremet,willdeterminethenumberofRestrictedStockUnitsthatwillbepaidouttotheParticipant.TheAdministratormaysetvestingcriteriabasedupontheachievementofCompany-wide,businessunit,orindividualgoals(including,butnotlimitedto,continuedemployment),oranyotherbasisdeterminedbytheAdministratorinitsdiscretion.
7.3 Earning Restricted Stock Units .Uponmeetingtheapplicablevestingcriteria,theParticipantshallbeentitledtoreceiveapayoutasspecifiedinhisorherRestrictedStockUnitAwardAgreement.Notwithstandingtheforegoing,atanytimeafterthegrantofRestrictedStockUnits,theAdministrator,initssolediscretion,mayreduceorwaiveanyvestingcriteriathatmustbemettoreceiveapayout.
7.4 Form and Timing .PaymentofearnedRestrictedStockUnitsshallbemadeassoonaspracticableafterthedate(s)setforthintheRestrictedStockUnitAwardAgreement.TheAdministrator,initssolediscretion,butonlyasspecifiedintheAwardAgreement,maypayearnedRestrictedStockUnitsincash,sharesofCommonStock,oracombinationthereof.IftheAwardAgreementissilentastotheformofpayment,paymentoftheRestrictedStockUnitsmayonlybeinsharesofCommonStock;providedthatanyfractionalsharemaybepaidincash.
7.5 Cancellation .AnyRestrictedStockUnitsthatdonotvestpursuanttothetermsandconditionssetforthinaParticipant’sRestrictedStockUnitAgreementshallimmediatelyreverttothePlan.
7.6 Compliance with Code Section 409A .NotwithstandinganythinginthisArticle7tothecontrary,allRestrictedStockUnitAwardsareintendedtobestructuredtosatisfytherequirementsofCodeSection409A,oranapplicableexemption,asdeterminedbytheAdministrator.
ARTICLE 8.
STOCK APPRECIATION RIGHTS
8.1 Grant of Stock Appreciation Rights .TheAdministratorshallhavetheauthoritytograntStockAppreciationRightssubjecttosuchterms,restrictionsandconditionsasthe
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Administratormaydetermineatthetimeofgrant.StockAppreciationRightsmaybegrantedonabasisthatallowsfortheexerciseoftherightbytheParticipant,orthatprovidesfortheautomaticsettlementoftherightuponaspecifieddateorevent,forsharesofCommonStock,cashoracombinationofboth.
8.2 Stock Appreciation Rights Agreements .EachStockAppreciationRightgrantedpursuanttothisPlanshallbeevidencedbyaStockAppreciationRightsAgreement,whichshallspecifythenumberofsharessubjectthereto,vestingprovisionsrelatingtosuchStockAppreciationRight,theBaseValuepershare,andwhethertheStockAppreciationRightshallbeexercisableorsubjecttosettlementforsharesofCommonStock,cashoracombinationofCommonStockandcash.AssoonasispracticablefollowingthegrantofaStockAppreciationRight,aStockAppreciationRightsAgreementshallbedulyexecutedanddeliveredbyoronbehalfoftheCompanytotheParticipanttowhomsuchStockAppreciationRightwasgranted.EachStockAppreciationRightsAgreementshallbeinsuchformandcontainsuchadditionaltermsandconditions,notinconsistentwiththeprovisionsofthisPlan,astheAdministratorshall,fromtimetotime,deemdesirable,includingwithoutlimitation,theimpositionofanyrightsoffirstrefusalandresaleobligationsuponanysharesofCommonStockacquiredpursuanttoaStockAppreciationRight.EachStockAppreciationRightsAgreementmaybedifferentfromeachotherStockAppreciationRightsAgreement.
8.3 Base Value .TheBaseValuepershareofCommonStockcoveredbyeachStockAppreciationRightshallbedeterminedbytheAdministrator,exceptthattheBaseValueofaStockAppreciationRightshallnotbelessthan100%ofFairMarketValueoftheCommonStockonthedatetheStockAppreciationRightisgranted.
8.4 Term and Termination of Stock Appreciation Rights .ThetermandprovisionsforterminationofeachStockAppreciationRightshallbefixedbytheAdministrator,butnoStockAppreciationRightmaybeexercisableorsubjecttosettlementmorethanten(10)yearsafterthedateitisgranted.
8.5 Vesting and Exercise of Stock Appreciation Rights .EachStockAppreciationRightshallvest,andbecomeexercisableorsubjecttosettlement,inoneormoreinstallmentsatsuchtimeortimesandshallbesubjecttosuchconditions,includingwithoutlimitationtheachievementofspecifiedperformancegoalsorobjectivesestablishedwithrespecttooneormoreperformancecriteria,asshallbedeterminedbytheAdministrator.Notwithstandingtheforegoing,eachStockAppreciationRightgrantedtoanemployeeoftheCompanyorAffiliatedCompany,onabasisthatallowstherighttobeexercisedbytheemployee,shallprovidethattheemployeeshallhavetherighttoexercisethevestedportionofsuchrightheldattheterminationoftheemployee’sContinuousServiceforatleastthirty(30)daysfollowingterminationoftheemployee’sContinuousServiceforanyreasonotherthanCauseandthattheemployee(oremployee’sdesignee)shallhavetherighttoexercisetheStockAppreciationRightforatleastsix(6)monthsifsuchterminationoftheemployee’sContinuousServiceisduetothedeathorDisabilityoftheemployee.
8.6 Payment of Appreciation .AStockAppreciationRightwillentitletheholder,uponexerciseorsettlementoftheStockAppreciationRight,asapplicable,toreceiveanamountdeterminedbymultiplying:(a)theexcessoftheFairMarketValueofashareofCommonStock
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onthedateofexerciseorsettlementoftheStockAppreciationRightovertheBaseValueofsuchStockAppreciationRight,by(b)thenumberofsharesastowhichsuchStockAppreciationRightisexercisedorsettled.Uponexerciseorsettlement,paymentoftheappreciationdeterminedundertheprecedingformulashallbemadeinsharesofCommonStock,cash,oracombinationofbothsharesandcash,assetforthintheStockAppreciationRightsAgreementinthediscretionoftheAdministrator.TotheextentthatpaymentismadeinsharesofCommonStock,suchsharesshallbevaluedattheirFairMarketValueonthedateofexerciseorsettlement.
8.7 Nontransferability of Stock Appreciation Rights .ExceptasotherwiseprovidedbytheAdministratorinanStockAppreciationRightsAgreementandaspermissibleunderapplicablelaw,noStockAppreciationRightshallbeassignableortransferableexceptbywill,thelawsofdescentanddistributionorpursuanttoadomesticrelationsorder,andduringthelifeoftheParticipantshallbeexercisableonlybysuchParticipant.Notwithstandingtheforgoing,theAdministratormaygrantStockAppreciationRightsthatmaybetransferredtoarevocabletrustorasotherwisepermittedunderRule701oftheSecuritiesAct.
8.8 Rights as a Stockholder .AParticipantshallhavenorightsorprivilegesasastockholderwithrespecttoanysharescoveredbyaStockAppreciationRightuntilsuchStockAppreciationRighthasbeendulyexercisedorsettledandcertificatesrepresentingsharesissueduponsuchexerciseorsettlementhavebeenissuedtosuchperson.
8.9 Unvested Shares .TheAdministratorshallhavethediscretiontograntStockAppreciationRightsthatmaybeexercisedorsettledforunvestedsharesofCommonStockonsuchtermsandconditionsastheAdministratorshalldeterminefromtimetotime.
8.10 Company’s Repurchase Right .IntheeventofaterminationofaParticipant’sContinuousServiceforanyreasonwhatsoever(includingdeathorDisability),theStockAppreciationRightsAgreementmayprovide,inthediscretionoftheAdministrator,thattheCompany,oritsassignee,shallhavetheright,exercisableatthediscretionoftheAdministrator,torepurchasesharesofCommonStockacquiredpursuanttotheexerciseorsettlementofaStockAppreciationRightatanytimeonsuchtermsasmaybeprovidedintheStockAppreciationRightAgreement.TherepurchasepriceforsharesrepurchasedbytheCompanyshallbeequaltotheFairMarketValuepershareofCommonStockasofthedateofterminationofParticipant’sContinuousService.ThetermsuponwhichsuchRepurchaseRightshallbeexercisable(includingbutnotlimitedtotheperiodandprocedureforexerciseandthetimingandmethodofpaymentforthepurchasedshares)shallbeestablishedbytheAdministratorandsetforthinthedocumentevidencingsuchRepurchaseRight.
8.11 Compliance with Code Section 409A .NotwithstandinganythinginthisArticle8tothecontrary,allStockAppreciationRightsAwardsareintendedtobestructuredtosatisfytherequirementsofCodeSection409A,oranapplicableexemption,asdeterminedbytheAdministrator.
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ARTICLE 9.
ADMINISTRATION OF THE PLAN
9.1 Administrator .AuthoritytocontrolandmanagetheoperationandadministrationofthePlanshallbevestedintheBoard,whichmaydelegatesuchresponsibilitiesinwholeorinparttoacommitteeconsistingoftwo(2)ormoremembersoftheBoard.MembersoftheCommitteemaybeappointedfromtimetotimeby,andshallserveatthepleasureof,theBoard.TheBoardmaylimitthecompositionoftheCommitteetothosepersonsnecessarytocomplywiththerequirementsofSection162(m)oftheCodeandSection16oftheExchangeAct.Inaddition,totheextentpermittedbyapplicablelaw,theAdministratormay,initsdiscretion,delegatetoacommitteecomprisedoftwoormoremanagementpersonneltheauthority,withoutfurtherapprovaloftheAdministrator,toexercisesuchpowersunderthePlanastheAdministratormaydetermine.
9.2 Powers of the Administrator .InadditiontoanyotherpowersorauthorityconferredupontheAdministratorelsewhereinthePlanorbylaw,theAdministratorshallhavefullpowerandauthority:(a)todeterminethepersonstowhom,andthetimeortimesatwhichAwardsshallbegranted,thenumberofsharesofCommonStocktoberepresentedbyeachOptionorStockAppreciationRightsAgreementandthenumberofsharesofCommonStocktobesubjecttoeachRestrictedStockPurchaseAgreementandRestrictedStockUnitAwardAgreement,andtheconsiderationtobereceivedbytheCompanyupontheexerciseofsuchOptionsorStockAppreciationRightorsaleofRestrictedStock;(b)tointerpretthePlan;(c)tocreate,amendorrescindrulesandregulationsrelatingtothePlan;(d)todeterminetheterms,conditionsandrestrictionscontainedin,andtheformof,AwardAgreements;(e)todeterminetheidentityorcapacityofanypersonswhomaybeentitledtoexerciseaParticipant’srightsunderanyAwardAgreementunderthePlan;(f)tocorrectanydefectorsupplyanyomissionorreconcileanyinconsistencyinthePlanorinanyAwardAgreement;(g)toacceleratethevestingofanyAwardorreleaseorwaiveanyRepurchaseRightsoftheCompanywithrespecttoanyAward;(h)toextendtheexercisedateofanyOptionorStockAppreciationRight(butnotbeyondtheoriginalexpirationdate);(i)toprovideforrightsoffirstrefusaland/orRepurchaseRights;(j)toamendoutstandingAwardAgreementstoprovidefor,amongotherthings,anychangeormodificationwhichtheAdministratorcouldhaveincludedintheoriginalAwardAgreementorinfurtheranceofthepowersprovidedforherein;and(k)tomakeallotherdeterminationsnecessaryoradvisablefortheadministrationofthePlan,butonlytotheextentnotcontrarytotheexpressprovisionsofthePlan.Anyaction,decision,interpretationordeterminationmadeingoodfaithbytheAdministratorintheexerciseofitsauthorityconferreduponitunderthePlanshallbefinalandbindingontheCompanyandallParticipants.
9.3 Section 409A of the Code .NotwithstandinganythinginthisPlantothecontrary,(a)anyadjustmentsmadepursuanttothisArticle9toAwardsthatareconsidered“deferredcompensation”withinthemeaningofSection409AoftheCodeshallbemadeincompliancewiththerequirementsofSection409AoftheCode;(b)anyadjustmentsmadepursuanttoArticle9toAwardsthatarenotconsidered“deferredcompensation”subjecttoSection409AoftheCodeshallbemadeinsuchamannerastoensurethataftersuchadjustmenttheAwardseither(i)continuenottobesubjecttoSection409AoftheCodeor(ii)complywiththerequirementsofSection409AoftheCode;and(c)inanyevent,theAdministratorshallnothavetheauthoritytomakeanyadjustmentspursuanttoArticle9totheextenttheexistenceofsuchauthoritywouldcauseanAwardthatisnotintendedtobesubjecttoSection409AoftheCodeatthetimeofgranttobesubjectthereto.
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9.4 Limitation on Liability .NoemployeeoftheCompanyormemberoftheBoardorCommitteeshallbesubjecttoanyliabilitywithrespecttodutiesunderthePlanunlessthepersonactsfraudulentlyorinbadfaith.Totheextentpermittedbylaw,theCompanyshallindemnifyeachmemberoftheBoardorCommittee,andanyemployeeoftheCompanywithdutiesunderthePlan,whowasorisaparty,oristhreatenedtobemadeaparty,toanythreatened,pendingorcompletedproceeding,whethercivil,criminal,administrativeorinvestigative,byreasonofsuchperson’sconductintheperformanceofdutiesunderthePlan.
ARTICLE 10.
CHANGE IN CONTROL
10.1 Change in Control .InordertopreserveaParticipant’srightswithrespecttoanyoutstandingAwardsintheeventofaChangeinControloftheCompany:
(a) Stock Options and Stock Appreciation Rights .
(i)VestingofalloutstandingOptionsandStockAppreciationRightsshallaccelerateautomaticallyeffectiveasofimmediatelypriortotheconsummationoftheChangeinControlunlesstheOptionsandStockAppreciationRightsaretobeassumedbytheacquiringorsuccessorentity(orparentorsubsidiarythereof)ornewoptionsornewstockappreciationrightsunderanewequityincentiveprogram(“New Incentives ”)ofcomparablevaluearetobeissuedinexchangetherefor,asprovidedinsubsection(b)below.
(ii)VestingofoutstandingOptionsandStockAppreciationRightsshallnotaccelerateifandtotheextentthat:(i)theOptionsandStockAppreciationRights(includingtheunvestedportionsthereof)aretobeassumedbytheacquiringorsuccessorentity(orparentorsubsidiarythereof)pursuanttothetermsoftheChangeinControltransaction,or(ii)theOptionsandStockAppreciationRights(includingtheunvestedportionsthereof)aretobereplacedbytheacquiringorsuccessorentity(orparentorsubsidiarythereof)withNewIncentivesofcomparablevaluecontainingsuchtermsandprovisionsastheAdministratorinitsdiscretionmayconsiderequitable.IfoutstandingOptionsorStockAppreciationRightsareassumed,orifNewIncentivesofcomparablevalueareissuedinexchangetherefor,theneachsuchOption,StockAppreciationRightorNewIncentiveshallbeappropriatelyadjusted,concurrentlywiththeChangeinControl,toapplytothenumberandclassofsecuritiesorotherpropertythattheParticipant,asthecasemaybe,wouldhavereceivedpursuanttotheChangeinControltransactioninexchangeforthesharesissuableuponexerciseoftheOptionorStockAppreciationRighthadtheOptionorStockAppreciationRightbeenexercisedimmediatelypriortotheChangeinControl,andappropriateadjustmentalsoshallbemadetotheExercisePricesuchthattheaggregateExercisePriceofeachsuchOptionornewoptionandtheaggregateBaseValueofeachsuchStockAppreciationRightornewstockappreciationrightshallremainthesameasnearlyaspracticable.
(iii)IfanyOptionorStockAppreciationRightisassumedbyanacquiringorsuccessorentity(orparentorsubsidiarythereof)oraNewIncentiveof
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comparablevalueisissuedinexchangethereforpursuanttothetermsofaChangeinControltransaction,thenifsoprovidedintheOptionAgreementorStockAppreciationRightsAgreement,thevestingoftheOption,StockAppreciationRight,ortheNewIncentiveshallaccelerateifandatsuchtimeastheParticipant’sserviceasanemployee,director,officer,ConsultantorotherServiceProvidertotheacquiringorsuccessorentity(oraparentorsubsidiarythereof)isterminatedinvoluntarilyorvoluntarilyundercertaincircumstanceswithinaspecifiedperiodfollowingconsummationoftheChangeinControl,pursuanttosuchtermsandconditionsasshallbesetforthintheOptionAgreementorStockAppreciationRightsAgreement.
(iv)IfvestingofoutstandingOptionsorStockAppreciationRightswillacceleratepursuanttosubsection(a)above,theAdministratorinitsdiscretionmayprovide,inconnectionwiththeChangeinControltransaction,forthepurchaseorexchangeofeachsuchOptionorStockAppreciationRightforanamountofcashorotherpropertyhavingavalueequaltothedifference(or“spread ”)between:(i)thevalueofthecashorotherpropertythattheParticipantwouldhavereceivedpursuanttotheChangeinControltransactioninexchangeforthesharesissuableuponexerciseoftheOptionorStockAppreciationRighthadsuchOptionorStockAppreciationRightbeenexercisedimmediatelypriortotheChangeinControl,and(ii)theExercisePriceoftheOptionorStockAppreciationRight.
(v)NotwithstandingSections10.1(i)-(iv)above,theAdministratorshallhavethediscretiontoprovideineachOptionAgreementorStockAppreciationRightsAgreementothertermsandconditionsthatrelateto(i)vestingoftheOptionorStockAppreciationRightintheeventofaChangeinControl,and(ii)assumptionofsuchOptionorStockAppreciationRightorissuanceofcomparablesecuritiesorNewIncentivesintheeventofaChangeinControl.TheaforementionedtermsandconditionsmayvaryineachOptionAgreementorStockAppreciationRightsAgreement,andmaybedifferentfromandhaveprecedenceovertheprovisionssetforthinSections10.1(i)-10.1(iv)above.
(vi)OutstandingOptionsandStockAppreciationRightsshallterminateandceasetobeexercisableuponconsummationofaChangeinControlexcepttotheextentthattheOptionsandStockAppreciationRightsareassumedbythesuccessorentity(orparentorsubsidiarythereof)pursuanttothetermsoftheChangeinControltransaction.
(vii)IfoutstandingOptionsorStockAppreciationRightswillnotbeassumedbytheacquiringorsuccessorentity(orparentorsubsidiarythereof),theAdministratorshallcausewrittennoticeofaproposedChangeinControltransactiontobegiventoParticipantsnotlessthanfifteen(15)dayspriortotheanticipatedeffectivedateoftheproposedtransaction.
(b) Restricted Stock .
(i)AllRepurchaseRightsoftheCompanyunderthisPlanshallautomaticallyterminateimmediatelypriortotheconsummationofsuchChangein
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Control,andthesharesofCommonStocksubjecttosuchterminatedRepurchaseRightsshallimmediatelyvestinfull,excepttotheextentthat:(A)inconnectionwithsuchChangeinControl,theacquiringorsuccessorentity(orparentorsubsidiarythereof)providesforthecontinuanceorassumptionoftheRestrictedStockPurchaseAgreements(orsuchotheragreementsevidencingtheCompany’sRepurchaseRight,asapplicable)orthesubstitutionofnewagreementsofcomparablevaluecoveringsharesofasuccessorcorporation,withappropriateadjustmentsastothenumberandkindofsharesandpurchaseprice,or(B)suchacceleratedvestingisprecludedbyotherlimitationsimposedbytheAdministratorintheRestrictedStockPurchaseAgreement(orsuchotheragreementevidencingtheCompany’sRepurchaseRight,asapplicable)atthetimethesharesareissued.IftheRepurchaseRightsshallterminatepursuanttothissubsection(i),thentheAdministratorshallcausewrittennoticeoftheproposedChangeinControltransactiontobegiventotheeffectedParticipantsnotlessthanfifteen(15)dayspriortotheanticipatedeffectivedateoftheproposedtransaction.
(ii)TheAdministratorinitsdiscretionmayprovideinanyRestrictedStockPurchaseAgreement(orsuchotheragreementevidencingtheCompany’sRepurchaseRight,asapplicable)thatif,uponaChangeinControl,theacquiringorsuccessorentity(orparentorsubsidiarythereof)providesforthecontinuanceorassumptionofsuchRestrictedStockPurchaseAgreement(orsuchotheragreementevidencingtheCompany’sRepurchaseRight,asapplicable)orthesubstitutionofnewagreementsofcomparablevaluecoveringsharesofasuccessorcorporation(withappropriateadjustmentsastothenumberandkindofsharesandpurchaseprice),thenanyRepurchaseRightprovidedforinsuchRestrictedStockPurchaseAgreement(orsuchotheragreementevidencingtheCompany’sRepurchaseRight,asapplicable)shallterminate,andthesharesofCommonStocksubjecttotheterminatedRepurchaseRightoranysubstitutedsharesshallimmediatelyvestinfull,iftheParticipant’sserviceasanemployee,director,officer,ConsultantorotherServiceProvidertotheacquiringorsuccessorentity(oraparentorsubsidiarythereof)isterminatedinvoluntarilyorvoluntarilyundercertaincircumstanceswithinaspecifiedperiodfollowingconsummationofaChangeinControlpursuanttosuchtermsandconditionsasshallbesetforthintheRestrictedStockPurchaseAgreement(orsuchotheragreementevidencingtheCompany’sRepurchaseRight,asapplicable).
(c) Restricted Stock Units .OutstandingRestrictedStockUnitsshallterminateandbecancelledfornoconsiderationuponconsummationofaChangeinControlexcepttotheextentthattheRestrictedStockUnitsareassumedbythesuccessorentity(orparentorsubsidiarythereof)pursuanttothetermsoftheagreementgoverningtheChangeinControltransaction.
ARTICLE 11.
AMENDMENT AND TERMINATION OF THE PLAN
11.1 Amendments .TheBoardmayfromtimetotimealter,amend,suspendorterminatethePlaninsuchrespectsastheBoardmaydeemadvisable.Nosuchalteration,amendment,suspensionorterminationshallbemadewhichshall(i)substantiallyaffector
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impairtherightsofanyParticipantunderanoutstandingAwardAgreementwithoutsuchParticipant’sconsent,or(ii)causethisPlan,oranyAwardgrantedpursuanttoit,toviolateCodeSection409A.TheBoardmayalteroramendthePlantocomplywithrequirementsundertheCoderelatingtoIncentiveOptionsorothertypesofoptionsthatgiveOptioneesmorefavorabletaxtreatmentthanthatapplicabletoOptionsgrantedunderthisPlanasofthedateofitsadoption.Uponanysuchalterationoramendment,anyoutstandingAwardgrantedhereundermay,iftheAdministratorsodeterminesandifpermittedbyapplicablelaw,besubjecttothemorefavorabletaxtreatmentaffordedtoaParticipantpursuanttosuchtermsandconditions.
11.2 Plan Termination .UnlessthePlanshalltheretoforehavebeenterminated,thePlanshallterminateonthetenth(10th)anniversaryoftheEffectiveDateandnoAwardsmaybegrantedunderthePlanthereafter,butAwardAgreementsthenoutstandingshallcontinueineffectinaccordancewiththeirrespectiveterms.
ARTICLE 12.
TAXES
12.1 Tax Withholding .TheCompanyshallhavethepowertowithhold,orrequireaParticipanttoremittotheCompany,anamountsufficienttosatisfyanyapplicableFederal,state,andlocaltaxwithholdingrequirementswithrespecttoanyOptionsorStockAppreciationRightsexercisedorsharesofRestrictedStockissuedunderthisPlanorsharesissuedinsettlementofRestrictedStockUnitsunderthisPlan.Totheextentpermissibleunderapplicabletax,securitiesandotherlaws,theAdministratormay,initssolediscretionanduponsuchtermsandconditionsasitmaydeemappropriate,permitaParticipanttosatisfyhisorherobligationtopayanysuchtax,inwholeorinpart,by(a)directingtheCompanytoapplysharesofCommonStocktowhichtheParticipantisentitledasaresultoftheexerciseofanOptionorStockAppreciationRightorasaresultofthepurchaseoforlapseofrestrictionsonsharesofRestrictedStockorasaresultofvestingofRestrictedStockUnitsor(b)deliveringtotheCompanysharesofCommonStockownedbytheParticipant;provided,however,theamountwithheldshallnotexceedtheamountnecessarytosatisfytheCompany’staxwithholdingobligationsattheminimumstatutorywithholdingrates,asapplicable.ThesharesofCommonStocksoappliedordeliveredinsatisfactionoftheParticipant’staxwithholdingobligationshallbevaluedattheirFairMarketValueasofthedateofmeasurementoftheamountofincomesubjecttowithholding.
ARTICLE 13.
MISCELLANEOUS
13.1 Benefits Not Alienable .Otherthanasprovidedabove,benefitsunderthePlanmaynotbeassignedoralienated,whethervoluntarilyorinvoluntarily.Anyunauthorizedattemptatassignment,transfer,pledgeorotherdispositionshallbewithouteffect.
13.2 No Enlargement of Employee Rights .ThisPlanisstrictlyavoluntaryundertakingonthepartoftheCompanyandshallnotbedeemedtoconstituteacontractbetweentheCompanyandanyParticipanttobeconsiderationfor,oraninducementto,oraconditionof,theemploymentofanyParticipant.NothingcontainedinthePlanshallbedeemedtogivethe
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righttoanyParticipanttoberetainedasanemployeeoftheCompanyoranyAffiliatedCompanyortolimittherightoftheCompanyoranyAffiliatedCompanytodischargeanyParticipantatanytime.
13.3 Application of Funds .TheproceedsreceivedbytheCompanyfromthesaleofCommonStockpursuanttoOptionAgreements,RestrictedStockUnitAwardAgreementsandRestrictedStockPurchaseAgreements,exceptasotherwiseprovidedherein,willbeusedforgeneralcorporatepurposes.
13.4 Financial Reports .TotheextentrequiredbyRule701(e)oftheSecuritiesAct,theCompanyshallprovide,atleastannually,summaryfinancialinformationrelatingtotheCompany’sfinancialconditionandresultsofoperationstoeachParticipantwhoholdsoneormoreAwardsorsharesofCommonStockissuedpursuanttothePlan.
13.5 Stockholder Approval .TheCompanyshallobtainstockholderapprovalofthePlanwithintwelve(12)monthsbeforeoraftertheadoptionofthePlanbytheBoardofDirectors.
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Exhibit 5.1
DLA Piper LLP(US)2000UniversityAvenueEastPaloAlto,California94303-2214www.dlapiper.comT 650.833.2000F 650.833.2001
September2,2016
JuniperNetworks,Inc.1133InnovationWaySunnyvale,California94089
Re: Registration Statement on Form S-8
LadiesandGentlemen:
WehaveactedascounseltoJuniperNetworks,Inc.,aDelawarecorporation(the“Company”),inconnectionwiththeregistrationonFormS-8(the“RegistrationStatement”)undertheSecuritiesActof1933,asamended(the“Act”),ofupto2,234,924sharesoftheCompany’sCommonStock,$0.00001parvaluepershare(the“Shares”),whichmaybeissuedpursuanttoawardsgrantedundertheAurrion,Inc.AmendedandRestated2008EquityIncentivePlan(the“Plan”).
Asthebasisforouropinions,wehaveexamined:(i)originals,orcopiescertifiedorotherwiseidentified,of(a)theRegistrationStatement;(b)thePlanandtherelatedformdocuments;(c)theCompany’sRestatedCertificateofIncorporation,includedasExhibit4.1totheRegistrationStatement;(d)theCompany’sAmendedandRestatedBylaws,includedasExhibit4.2totheRegistrationStatement;and(e)suchotherinstrumentsanddocumentsaswehavedeemednecessaryoradvisableforthepurposesofthisopinion;and(ii)theDelawareGeneralCorporationLaw(the“DGCL”).WehavealsorelieduponacertificateofanofficeroftheCompany.Wehavenotindependentlyverifiedanyfactualmatterrelatingtothisopinion.
WeexpressnoopinionastoanylawsotherthanastotheDGCL.NoopinionisexpressedhereinwithrespecttothequalificationoftheSharesunderthesecuritiesorblueskylawsofanystateoranyforeignjurisdiction.
Onthebasisoftheforegoing,weareoftheopinionthattheShares,whenissuedagainstreceiptoftheconsiderationthereforandinaccordancewiththeprovisionsofthePlan,willbevalidlyissued,fullypaidandnonassessable.
WeconsenttothefilingofthisopinionasanexhibittotheRegistrationStatementandtheuseofournamewhereveritappearsintheRegistrationStatement.Ingivingourconsent,wedonottherebyadmitthatwearewithinthecategoryofpersonswhoseconsentisrequiredunderSection7oftheActortherulesandregulationspromulgatedthereunder.
Verytrulyyours,
/s/DLAPiperLLP(US)
DLAPiperLLP(US)
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
WeconsenttotheincorporationbyreferenceintheRegistrationStatement(FormS-8)pertainingtotheAurrion,Inc.AmendedandRestated2008EquityIncentivePlanofourreportsdatedFebruary19,2016,withrespecttotheconsolidatedfinancialstatementsandscheduleofJuniperNetworks,Inc.andtheeffectivenessofinternalcontroloverfinancialreportingofJuniperNetworks,Inc.includedinitsAnnualReport(Form10-K)fortheyearendedDecember31,2015,filedwiththeSecuritiesandExchangeCommission.
/s/Ernst&YoungLLP
SanJose,CaliforniaAugust31,2016