ADC TELECOMMUNICATIONS, INC. INCENTIVE STOCK OPTION AGREEMENT
Exhibit 10.1
ADC TELECOMMUNICATIONS, INC.
INCENTIVE STOCK OPTION AGREEMENT
INCENTIVE STOCK OPTION AGREEMENT
Optionee:
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Option Number: | |||||
Optionee ID:
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Plan: GSIP |
This Incentive Stock Option Agreement (the “Agreement”) is entered into effective by and
between ADC Telecommunications, Inc., a Minnesota corporation, (the “Company”), and the
above-identified Optionee pursuant to the Company’s 2010 Global Stock Incentive Plan (the “Plan”).
Effective the date written above, the Optionee has been granted an option (the “Option”) to
purchase all or any part of an aggregate of
shares of common stock, par value US$.20 per
share, of the Company (the “Common Stock”) at the price of US$ per share subject to the
terms and conditions set forth herein and in the Plan and Exhibit A to this Agreement. This Option
is intended to be an incentive stock option within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”).
The total aggregate purchase price for all of the shares purchasable under this Option is
US$ .
Subject to the terms and conditions of this Agreement, Exhibit A to this Agreement and the
Plan, this Option shall in all events terminate seven (7) years after the date of grant (the
“Expiration Date”). The shares subject to this Option shall vest and may be exercised in whole or
in part by the Optionee according to the following vesting schedule:
| Number of Option Shares | ||||||||
| Vesting Date | Vesting | Expiration Date | ||||||
Subject to the provisions of the Plan and Exhibit A, the Optionee must be actively employed by the
Company or any of its Affiliates on each Vesting Date for vesting to occur. Termination of
employment after a Vesting Date may accelerate the Expiration Date (see terms of the Plan and
Exhibit A).
Optionee and the Company agree that these Options are granted under and governed by the terms and
conditions of this Agreement, Exhibit A to this Agreement, and the Plan. Each of these documents
and a Prospectus related to shares covered by the Plan has been provided to Optionee. Optionee
specifically acknowledges that Exhibit A to this Agreement contains an agreement by Optionee not to
solicit employees of the Company or its Affiliates on behalf of any other employer, a data privacy
consent by Optionee and certain other acknowledgements by Optionee.
Optionee acknowledges that this Option is subject to the ongoing discretionary authority of the
Company to determine: (i) the permissible manner of exercise of the Option (including but not
limited to the authority of the Company to require a mandatory cashless exercise); (ii) the
permissible timing of exercise of the Option; and (iii) any other restrictions that the Company
deems necessary and advisable, including but not limited to restrictions pertaining to applicable
law. Optionee further acknowledges that in the event the Optionee chooses to effect a simultaneous
exercise and sale of all or a portion of the shares that are subject to this Option, neither the
Company nor its third party stock option administrator will guarantee any particular market price
for the sale of the shares, nor shall the Company or its third party administrator be responsible
for any failure to obtain any particular market price due to delays in the exercise of this Option
or any other reason.
This Exhibit A is part of and incorporated by reference into the Incentive Stock Option Agreement
(the “Agreement”) issued by ADC Telecommunications, Inc. (the “Company”) pursuant to the Company’s
2010 Global Stock Incentive Plan (the “Plan”).
Unless otherwise defined herein, capitalized terms shall have the meaning given such term in the
Agreement.
1. Grant of Option Refer to the Agreement for a description of the Option grants, including the
total number of shares of Common Stock covered by this Option, the exercise price per share, and
the schedule for vesting. This Option is intended to be an incentive stock option within the
meaning of Section 422 of the U.S. Internal Revenue Code.
2. Duration and Exercisability
(a) Subject to early vesting as provided in Section 3 below, this Option shall vest and become
exercisable in accordance with the schedule set forth on the Agreement. This Option shall in all
events terminate seven (7) years after the date of grant, if not earlier in the event of
termination of employment.
(b) Notwithstanding the provisions contained in Section 2(a) above, but subject to the other
terms and conditions set forth herein, this Option shall become fully vested and exercisable on the
date of a “Change in Control” (as hereinafter defined). For purposes of the Agreement and this
Exhibit A to the Agreement, the following terms shall have the definitions set forth below:
(i) “Change in Control” shall mean:
(A) a change in control of the Company of a nature that would be required to be reported
in response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Company is then
subject to such reporting requirement;
(B) the public announcement (which, for purposes of this definition, shall include,
without limitation, a report filed pursuant to Section 13(d) of the Exchange Act) by the
Company or any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) that such person has become the “beneficial owner” (as defined in Rule 13d-3 promulgated
under the Exchange Act), directly or indirectly, of securities of the Company representing
twenty percent (20%) or more of the combined voting power of the Company’s then outstanding
securities, determined in accordance with Rule 13d-3, excluding, however, any securities
acquired directly from the Company (other than an acquisition by virtue of the exercise of a
conversion privilege unless the security being so converted was itself acquired directly from
the Company); however, that for purposes of this clause the term “person” shall not include
the Company, any subsidiary of the Company or any employee benefit plan of the Company or of
any subsidiary of the Company or any entity holding shares of Common Stock organized,
appointed or established for, or pursuant to the terms of, any such plan;
(C) the Continuing Directors cease to constitute a majority of the Company’s Board of
Directors;
(D) consummation of a reorganization, merger or consolidation of, or a sale or other
disposition of all or substantially all of the assets of, the Company (a “Business
Combination”), in each case, unless, following such Business Combination, (A) all or
substantially all of the persons who were the beneficial owners of the Company’s outstanding
voting securities immediately prior to such Business Combination beneficially own voting
securities of the corporation resulting from such Business Combination having more than fifty
percent (50%) of the combined voting power of the outstanding voting securities of such
resulting Corporation and (B) at least a majority of the members of the Board of Directors of
the corporation resulting from such Business Combination were Continuing Directors at the
time of the action of the Board of Directors of the Company approving such Business
Combination;
(E) approval by the shareholders of the Company of a complete liquidation or dissolution
of the Company; or
(F) the majority of the Continuing Directors determine in their sole and absolute
discretion that there has been a change in control of the Company; and
(G) The definition of “Change in Control” is subject to changes as may be determined by
the Compensation Committee of the Company’s Board of Directors as necessary to comply with
the requirements of Section 409A of the Internal Revenue Code, as added by the American Jobs
Creation Act.
(ii) “Continuing Director” shall mean any person who is a member of the Board of
Directors of the Company, while such person is a member of the Board of Directors, who is
not an Acquiring Person (as defined below) or an Affiliate or Associate (as defined
below) of an Acquiring Person, or a representative of an Acquiring Person or of any such
Affiliate or Associate, and who (x) was a member of the Board of Directors on the date of
this Agreement as first written above or (y) subsequently becomes a member of the Board
of Directors, if such person’s initial nomination for election or initial election to
the Board of Directors is recommended or approved by a majority of the Continuing
Directors. For purposes of this subparagraph (ii), “Acquiring Person” shall mean any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) who or
which, together with all Affiliates and Associates of such person, is the “beneficial
owner” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of securities of the Company representing twenty percent (20%) or more of the
combined voting power of the Company’s then outstanding securities, but shall not include
the Company, any subsidiary of the Company or any employee benefit plan of the Company or
of any subsidiary of the Company or any entity holding shares of Common Stock organized,
appointed or established for, or pursuant to the terms of, any such plan; and “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2
promulgated under the Exchange Act.
(c) This Option shall not be assignable or transferable except to a designated beneficiary
(under procedures established by the Company) or by the laws of descent and distribution in the
case of the death of Optionee, and except that for U.S. resident employees, upon written notice to
the Company, U.S. resident employees may transfer this Option during his or her lifetime to any
“family member” (as such term is used on Form S-8 under the Securities Act of 1933) of Optionee
provided that (i) there is no consideration for such transfer or such transfer is effected pursuant
to a domestic relations order in settlement of marital property rights, and (ii) this Option held
by such transferees shall continue to be subject to the same terms and conditions (including
restrictions on subsequent transfers) as were applicable to this Option immediately prior to such
transfer. This Option may not be pledged, alienated, attached or otherwise encumbered, and any
purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company or any Affiliate of the Company.
(d) This Option may be exercised, during the lifetime of Optionee, only by Optionee, a
permitted transferee pursuant to a transfer permitted by Section 2(c) above, or, if permissible
under applicable law, by Optionee’s or such transferee’s guardian or legal representative.
3. Effect of Termination of Employment
(a) For all purposes of the Agreement and this Exhibit A, the following terms shall have the
following meanings:
(i) “Employment Termination Date” shall mean the earlier of:
| • | the date, as determined by the Company, that Optionee is no longer actively employed by the Company or an Affiliate of the Company, and in the case of an involuntarily termination, such date shall not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); or | ||
| • | the date, as determined by the Company, that Optionee’s employer is no longer an Affiliate of the Company. |
(ii) “Retirement” shall mean the voluntary termination of Optionee’s employment with his or
her Employer if: (a) Optionee is employed in a country on his or her Employment Termination Date
that on the Grant Date was not a member of the European Union and (i) Optionee is at least 55
years old, and (ii) Optionee’s age in years plus years of service (as defined by the Company in
its sole discretion for the purposes of this Option) equals at least 65; or (b) Optionee is
employed in a country on his or her Employment Termination Date that on the Grant Date was a
member of the European Union and Optionee has at least 30 years of service (as defined by the
Company in its sole discretion for the purposes of this Option).
(b) In the event the Optionee ceases to be an employee of the Company or any of its Affiliates
for any reason other than death, long-term disability, or Retirement, then Optionee shall have the
right to exercise the Option at any time within one year after the Employment Termination Date to
the extent of the number of vested shares Optionee was entitled to purchase under the Option on the
Employment Termination Date, subject to the condition that no Option shall be exercisable after the
Expiration Date.
(c) In the event the Optionee dies while an employee of the Company or any of its Affiliates
or within three months after the Employment Termination Date or suffers a long-term disability,
this Option shall become fully vested and exercisable. The Option may then be exercised at any
time within one year after Optionee’s death or long-term disability by the executors or
administrators of Optionee, by any person or persons to whom the Option is transferred by the prior
designation of a beneficiary or the applicable laws of descent and distribution, or by the
Optionee, as the case may be. Any determination that Optionee’s employment has been terminated
because of a long-term disability shall be subject to the written acknowledgment and agreement of
the Company’s legal department made in its sole discretion.
(d) In the event of the Retirement of the Optionee, then this Option shall continue to vest
according to the schedule set forth on the Agreement. Optionee shall then have the right to
exercise this Option for a period of time following the Employment Termination Date until the
earlier to occur of (1) the Expiration Date and (2) the five year anniversary of the Employment
Termination Date. In the event of Optionee’s Retirement, the vesting of this Option is
conditioned upon Optionee complying with the following non-competition restrictions: For one year
following the effective date of Optionee’s Retirement from the Company, Optionee may not, without
the Company’s prior written consent, directly or indirectly, for himself or herself or any other
person or entity, as agent, employee, officer, director, consultant, owner, principal, partner or
material shareholder, or in any other individual or representative capacity: (i) engage in or
participate in any activity that competes, directly or indirectly, with any Company business,
product or service that Optionee engaged in, participated in, or had confidential information (as
described below) about during Optionee’s employment; or (ii) assist anyone in engaging in any of
the activities which Optionee is prohibited from engaging in directly in his or her own capacity.
Optionee specifically agrees and acknowledges that the Company’s business competes on a global
basis and that this restriction is reasonable and will apply throughout the global locations where
the Company conducts business. To the extent Optionee and the Company at any time agree to enter
into separate agreements containing restrictions with different or inconsistent terms than those
herein, Optionee and the Company acknowledge and agree that such different or inconsistent terms
shall not in any way affect or have relevance to the restrictions contained herein. By accepting
this Option,
Optionee agrees that the provisions of this non-competition restriction are reasonable and
necessary to protect the legitimate interests of the Company.
(e) No further vesting of this Option shall occur after the Employment Termination Date, and
this Option shall be exercisable in accordance with this Section 3 following the Employment
Termination Date only to the extent that it is exercisable on the Employment Termination Date,
pursuant to the vesting schedule set forth in the Agreement and Section 2 hereof.
4. Manner of Exercise The Option can be exercised only by Optionee or other proper party within
the option period by notice to the Company or the Company’s third-party stock option administrator
in a form specified by the Company or such third-party stock option administrator, or in such other
manner as the Company may specify from time-to-time. The Company shall have the right to specify
all conditions of the manner of exercise, and such conditions may vary by country and may be
subject to change from time to time.
5. Adjustments If Optionee exercises all or any portion of the Option subsequent to any change in
the number or character of the Common Stock (through stock dividend, recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of shares of Common Stock or other securities of the Company, issuance of
warrants or other rights to purchase shares of Common Stock or other securities of the Company or
other similar corporate transaction or event affecting the Common Stock such that an adjustment is
determined by the Committee to be appropriate in order to prevent dilution or enlargement of the
Option), Optionee shall then receive for the aggregate price paid by him or her on such exercise of
the Option, the number and type of securities or other consideration which he would have received
if such Option had been exercised prior to the event changing the number or character of
outstanding shares.
6. Responsibility for Taxes Regardless of any action taken by the Company or Optionee’s employer
(the “Employer”) with respect to any or all income tax, social insurance, payroll tax, payment on
account or other tax-related withholding (“Tax-Related Items”), Optionee acknowledges that the
ultimate liability for all Tax-Related Items is and remains Optionee’s responsibility and that the
Company and/or the Employer (i) make no representations or undertakings regarding the treatment of
any Tax-Related Items in connection with any aspect of the Option grant, including the grant,
vesting or exercise of the Option, the subsequent sale of shares acquired pursuant to such exercise
and the receipt of any dividends; and (ii) do not commit to structure the terms of the grant or any
aspect of the Option to reduce or eliminate Optionee’s liability for Tax-Related Items. Without
limiting the foregoing, the Company specifically disclaims any representation or guarantee that
this Option will qualify as an Incentive Stock Option under Section 422 of the Internal Revenue
Code, or if the Option initially so qualifies, that it will continue to qualify. Optionee should
consult his or her own tax advisor regarding the status of and tax treatment for this Option.
Prior to exercise of the Option, Optionee shall pay or make adequate arrangements satisfactory to
the Company and/or the Employer to satisfy all withholding and payment on account obligations of
the Company and/or the Employer. In this regard, Optionee authorizes the Company and/or the
Employer to withhold all applicable Tax-Related Items legally payable by Optionee from Optionee’s
wages or other cash compensation paid to Optionee by the Company and/or the Employer or from
proceeds of the sale of the shares. Alternatively, or in addition, if permissible under local law,
the Company may (i) sell or arrange for the sale of shares that Optionee acquires to meet the
withholding obligation for Tax-Related Items, and/or (ii) withhold in shares, provided that the
Company only withholds the amount of shares necessary to satisfy the minimum withholding amount.
Finally, Optionee shall pay to the Company or the Employer any amount of Tax-Related Items that the
Company or the Employer may be required to withhold as a result of Optionee’s participation in the
Plan or Optionee’s purchase of shares that cannot be satisfied by the means previously described.
The Company may refuse to honor the exercise and refuse to deliver the shares if Optionee fails to
comply with his or her obligations in connection with the Tax-Related Items as described in this
section.
7. Workforce Protection The Optionee understands that the Company has an important business
interest in preserving and retaining its relationships with its employees and its Affiliates’
employees (collectively, the “Covered Employees”). In consideration of Optionee’s employment with
the Company and/or this agreement, during the term of Optionee’s employment and for one year
thereafter, the Optionee promises that Optionee will not directly or indirectly or in cooperation
with others:
(a) Seek, encourage, solicit, or attempt to solicit any Covered Employee to leave his or her
employment for any reason or in any way interfere with his or her employment relationship;
(b) Induce or attempt to induce any Covered Employee to accept employment with, work for,
render services or provide advice to or supply confidential business information or trade secrets
of the Company or its Affiliates to any other person; or
(c) Employ, or otherwise pay for services rendered by, any Covered Employee in any other
business enterprise.
As part of the Optionee’s obligations to the Company and without limiting the foregoing,
Optionee specifically agrees that for the one year period after Optionee’s employment with the
Company terminates, Optionee will not interview, recommend for hire, identify or provide any input
to any third party in which Optionee has an interest as an employee, officer, consultant, director
or
owner about any Covered Employee where the purpose or outcome of such action by Optionee is to
recruit, provide a reference or otherwise assist a Covered Employee to leave his or her employment
and join the third party in which the Optionee has an interest as described herein. The Optionee
also acknowledges that Optionee’s promises as contained herein are not excused in circumstances
where the Covered Employee initiates a discussion of this nature with Optionee. In that event,
Optionee agrees to advise the Covered Employee of Optionee’s obligations hereunder. The Optionee
further agrees that during the one year period after the Optionee leaves the Company, Optionee will
inform any new employer Optionee may have of Optionee’s obligations under this Agreement.
8. Confidential Information
(a) In further consideration of the grant of the Option, the Optionee specifically
acknowledges and agrees that Optionee is bound to protect the Company’s confidential information
which includes but is not limited to proprietary information, confidential data and any other
representation of Company knowledge, whether verbal, printed, written or electronically recorded or
transmitted. This includes confidential information concerning any technologies, concepts,
engineering, sales and financial details, customer names and information, pricing, business
strategies and other related or similar confidential data. Optionee acknowledges that the
obligation to protect the Company’s confidential information continues after Optionee leaves the
Company, regardless of the reason. Optionee agrees to refrain from giving future employers any
confidential information belonging to the Company. This obligation to preserve confidential
information exists independently of and in addition to any obligation to which the Optionee is
subject under the terms of the Company’s Invention, Copyright and Trade Secret Agreement, or other
similar document.
(b) The Optionee acknowledges that breach of this Section 8 would be highly injurious to the
Company, and the Company reserves its rights to pursue all available remedies, including but not
limited to equitable and injunctive relief and damages. The Optionee specifically agrees that the
Company shall be entitled to obtain temporary and permanent injunctive relief from a court of law
to enforce the provisions of this Section 8, and that such relief may be granted without the
necessity of proving actual damages and without necessity of posting any bond. This provision with
respect to injunctive relief shall not, however, diminish the right of the Company to claim and
recover damages or to seek and obtain any other relief available to it. The Optionee further
acknowledges that this Section 8 shall be enforceable by the Company even if no portion of the
Option becomes vested and exercisable.
9. Data Privacy Consent Optionee hereby explicitly consents to the collection, use and transfer,
in electronic or other form, of his or her personal data as described in this document by and
among, as applicable, the Company and its Affiliates for the exclusive purpose of implementing,
administering and managing Optionee’s participation in the Plan.
Optionee understands that the Company and its Affiliates hold certain personal information about
Optionee, including, but not limited to, Optionee’s name, home address and telephone number, date
of birth, social insurance number or other identification number, salary, nationality, job title,
any shares of stock or directorships held in the Company or its Affiliates, details of all options
or any other entitlement to shares of stock awarded, cancelled, exercised, vested, unvested or
outstanding in Optionee’s favor, for the purpose of implementing, administering and managing the
Plan (“Data”). Optionee understands that Data may be transferred to any third parties assisting in
the implementation, administration and management of the Plan, that these recipients may be located
in Optionee’s country or elsewhere, and that the recipient’s country may have different data
privacy laws and protections than Optionee’s country. Optionee understands that Optionee may
request a list with the names and addresses of any potential recipients of the Data by contacting
ADC’s Global Rewards — Stock Compensation Group. Optionee authorizes the recipients to receive,
possess, use, retain and transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing Optionee’s participation in the Plan, including any
requisite transfer of such Data as may be required to a broker or other third party with whom
Optionee may elect to deposit any shares of stock acquired upon exercise of the Option. Optionee
understands that Data will be held only as long as is necessary to implement, administer and manage
Optionee’s participation in the Plan and that Optionee may, at any time, view Data, request
additional information about the storage and processing of Data, require any necessary amendments
to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in
writing ADC’s Global Rewards — Stock Compensation Group. Optionee understands, however, that
refusing or withdrawing his or her consent may affect Optionee’s ability to participate in the
Plan. For more information on the consequences of Optionee’s refusal to consent or withdrawal of
consent, Optionee may contact ADC’s Global Rewards — Stock Compensation Group.
10. Nature of Grant In accepting the grant, Optionee acknowledges that:
(a) The Plan is established voluntarily by the Company, it is discretionary in nature and it
may be modified, suspended or terminated by the Company at any time, as provided in the Plan and
this Agreement. The Option is subject in all respects to the terms and conditions of the Plan and
this Agreement.
(b) The grant of the Option is voluntary and occasional and does not create any contractual or
other right to receive future grants of options, or benefits in lieu of options, even if options
have been granted repeatedly in the past.
(c) All decisions with respect to future option grants, if any, will be at the sole discretion
of the Company.
(d) Optionee’s participation in the Plan shall not create a right to further employment with
the Company or any of its Affiliates and shall not interfere with the ability of the Company or its
Affiliates to terminate Optionee’s employment relationship at any time with or without cause.
(e) Optionee is voluntarily participating in the Plan.
(f) The Option is an extraordinary item that does not constitute compensation of any kind for
services of any kind rendered to the Company or the Employer, and is outside the scope of
Optionee’s employment contract, if any.
(g) The Option is not part of normal or expected compensation or salary for any purposes,
including, but not limited to, calculating any severance, resignation, termination, redundancy, end
of service payments, bonuses, long-service awards, pension or retirement benefits or similar
payments.
(h) In the event that Optionee is not an employee of the Company, the Option grant will not be
interpreted to form an employment contract or relationship with the Company; and furthermore, the
Option grant will not be interpreted to form an employment contract with any Affiliate of the
Company.
(i) The future value of the underlying shares is unknown and cannot be predicted with
certainty.
(j) If the underlying shares do not increase in value, the Option will have no value.
(k) If Optionee exercises the Option and obtains shares, the value of those shares acquired
upon exercise may increase or decrease in value, even below the exercise price.
(l) No claim or entitlement to compensation or damages arises from termination of the Option
or diminution in value of the Option or shares purchased through exercise of the Option which
results from the termination of Optionee’s employment by the Company or the Employer (for any
reason and regardless of whether in breach of contract), and Optionee irrevocably releases the
Company and its Affiliates from any such claim that may arise; if, notwithstanding the foregoing,
any such claim is found by a court of competent jurisdiction to have arisen, Optionee shall be
deemed irrevocably to have waived his/her entitlement to pursue such claim.
(m) Optionee consents to the delivery by electronic means of any documents related to the
Option, the Plan or future options that may be granted under the Plan.
11. Miscellaneous
(a) Optionee shall have none of the rights of a shareholder with respect to shares subject to
this Option until such shares shall have been issued upon exercise of this Option.
(b) This Agreement shall be governed by and construed in accordance with the domestic laws of
the State of Minnesota without giving effect to any choice or conflict of law provision or rule
(whether of the State of Minnesota or any other jurisdiction) that would cause the application of
the laws of any jurisdiction other than the State of Minnesota. The Company and the Optionee
submit to the jurisdiction of any state or federal court sitting in Minneapolis, Minnesota, in any
action or proceeding arising out of or relating to this Agreement, and agree that all claims in
respect of the action or proceeding may be heard and determined in any such court. Each of the
Company and the Optionee also agrees not to bring any action or proceeding arising out of or
relating to this Agreement in any other court. Each of the Company and the Optionee waives any
defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives
any bond, surety, or other security that might be required of the other party with respect thereto.
The Company and the Optionee agree that a final judgment in any action or proceeding so brought
shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by
law or in equity.
(c) To the extent any provision of this Agreement shall be determined by any court to be
invalid or unenforceable in any jurisdiction, such provision shall be deemed to be deleted from
this Agreement, and the validity and enforceability of the remainder of such provision and of this
Agreement shall be unaffected. In furtherance of and not in limitation of the foregoing, the
Optionee expressly agrees that should the duration of, geographical extent of, or business
activities covered by this Agreement be in excess of that which is valid or enforceable under
applicable law, then such provision shall be construed to cover only that duration, extent or
activities that may validly or enforceably be covered. The Optionee expressly stipulates that this
Agreement shall be construed in a manner that renders its provisions valid and enforceable to the
maximum extent (not exceeding its express terms) possible under applicable law.
(d) If Optionee has received this Agreement or any other document related to the Plan
translated into a language other than English and if the translated version is different than the
English version, the English version will control.
