Palatin Technologies Inc 8-K, filed Jun 29, 2020
Palatin Technologies Inc (PTN)
8-K
2020-06-29
For: 2020-06-25
View Original
Added on
April 06, 2026
About this 8-K
Palatin Technologies Inc filed this 8-K on June 29, 2020, reporting on events of June 25, 2020.
Items reported
- Item 5.02: Director or officer change, or executive pay
- Item 5.07: Shareholder vote results
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act Of
1934
Date of
Report (Date of earliest event reported): June 25, 2020
Palatin Technologies, Inc.
(Exact
name of registrant as specified in its charter)
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Delaware
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001-15543
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95-4078884
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(State
or other jurisdiction
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(Commission
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(IRS
employer
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of
incorporation)
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File
Number)
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identification
number)
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4B Cedar Brook Drive, Cranbury, NJ
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08512
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant's
telephone number, including area code: (609) 495-2200
Not Applicable
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
[ ]
Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
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Title
of Each Class
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Trading
Symbol
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Name of
Each Exchange
on
Which Registered
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Common Stock, par value $.01 per share
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PTN
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NYSE American
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Indicate
by check mark whether the registrant is an emerging growth company
as defined in Rule 405 of the Securities Act of 1933 (§230.405
of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter). Emerging growth
company ☐
If an
emerging growth company, indicate by checkmark if the registrant
has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 Departure of Directors or Principal Officers; Election of
Directors; Appointment of Principal Officers.
Approval of Amendment to 2011 Stock Incentive Plan, as Amended and
Restated. At the meeting of stockholders of Palatin
Technologies, Inc. (the “Company”) held on June 25,
2020, the stockholders approved an amendment to the Company’s
2011 Stock Incentive Plan, as amended and restated (the “2011
Plan”). The amendment increases the number of shares
available for equity awards under the 2011 Plan by 10,000,000
shares, from 32,500,000 to 42,500,000. In addition to the
42,500,000 Shares that may be issued or transferred with respect to
awards under the 2011 Plan, shares covering awards, including
awards under the Company’s 2005 Stock Plan, as amended, that
were outstanding on May 11, 2011 (the date of the initial
stockholder approval of the 2011 Plan), that terminate or are
forfeited, or shares that are returned to the Company pursuant to a
compensation recovery policy, will again be available for issuance
under the 2011 Plan.
The
2011 Plan authorizes the grant of equity-based and cash-based
compensation to the Company’s employees, consultants and
non-employee directors in the form of stock options, stock
appreciation rights, restricted shares, restricted share units,
other share-based awards and cash-based awards.
The
foregoing description of the 2011 Plan, as amended and restated, is
not complete and is qualified in its entirety by referral to the
full text of the 2011 Plan, a copy of which is filed with this
Current Report as Exhibit 10.1.
Item 5.07 Submission of Matters to a Vote of Security
Holders.
The
Company’s annual meeting of stockholders was held on June 25,
2020 to consider and vote on the following: (1) election of
directors (“Proposal 1”), (2) ratification of the
appointment of the Company’s independent registered public
accounting firm for the fiscal year ending June 30, 2020
(“Proposal 2”), (3) approval of an amendment to
our 2011 Stock Incentive Plan, as amended and restated, to increase
the number of shares available for equity awards by 10,000,000
shares (“Proposal 3”), (4) approval of an amendment to
our Certificate of Incorporation to effect an increase in
authorized common stock from 300,000,000 shares to 500,000,000
shares (“Proposal 4”), and (5) advise the Company
whether stockholders approve the compensation of the
Company’s named executive officers (“Proposal
5”).
Common
stock and Series A convertible preferred stock voted as a single
class on all matters. There were present in person or by proxy
158,223,102 votes, representing a majority of the total outstanding
eligible votes as of the record date for the meeting.
Proposal 1. Election of Directors. The stockholders
elected the following eight directors to serve until the next
annual meeting, or until their successors are elected and
qualified, by the votes set forth below:
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Nominee
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FOR
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WITHHELD
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01)
Carl Spana, Ph.D.
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80,131,548
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22,444,179
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02)
John K.A. Prendergast
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66,071,079
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36,504,648
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03)
Robert K. deVeer, Jr.
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82,392,173
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20,183,554
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04) J.
Stanley Hull
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85,118,042
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17,457,685
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05)
Alan W. Dunton, M.D.
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85,847,515
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16,728,212
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06)
Angela Rossetti
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85,806,895
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16,768,832
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07)
Arlene M. Morris
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71,188,533
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31,387,194
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08)
Anthony M. Manning, Ph.D.
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85,806,693
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16,769,034
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Broker
Non-Votes: 55,647,375 for each director
Proposal 2. Ratification of Appointment of Independent
Registered Public Accounting Firm. The stockholders ratified
the appointment of KPMG LLP as the Company’s independent
registered public accounting firm for the fiscal year ending June
30, 2020, by the votes set forth below:
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For
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Against
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Abstain
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138,337,359
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16,936,680
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2,949,063
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Proposal 3. Amendment to 2011 Stock Incentive Plan.
The stockholders approved an amendment to the Company’s 2011
Stock Incentive Plan, as amended and restated, to increase the
number of shares available for equity awards by 10,000,000 shares,
from 32,500,000 shares to 42,500,000 shares, by the votes set forth
below:
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For
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Against
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Abstain
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66,258,606
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35,980,561
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336,560
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Broker
Non-Votes: 55,647,375
Proposal 4. Amendment to Certificate of Incorporation to
Increase Authorized Common from 300,000,000 Shares to 500,000,000
Shares. As disclosed below under Item 8.01, incorporated
herein by reference, upon motion the Annual Meeting was adjourned
on Proposal 4.
Proposal 5. Say-on-Pay. The stockholders voted to
advise the Company that they do approve the compensation of the
Company’s named executive officers by the votes set forth
below:
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For
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Against
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Abstain
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70,267,317
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29,927,953
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2,380,457
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Broker
Non-Votes: 55,647,375
Item 8.01 Other Events.
At the
time of the Annual Meeting, there were insufficient votes to pass
Proposal 4, which sought an amendment to the Company’s
Certificate of Incorporation to effect an increase in authorized
common stock from 300,000,000 shares to 500,000,000 shares. Upon
motion, the Annual Meeting was adjourned on Proposal 4, and as
announced at the Annual Meeting, such meeting will reconvene at
9:00 a.m. Eastern Daylight Time on July 23, 2020 virtually at
http://www.virtualshareholdermeeting.com/PTN2020. During the period
of adjournment, the Company will continue to accept stockholder
votes on Proposal 4.
Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits:
2011 Stock
Incentive Plan, as amended and restated.
Press Release dated
June 29, 2020.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
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PALATIN
TECHNOLOGIES, INC.
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Date:
June 29, 2020
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By:
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/s/
Stephen T. Wills
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Stephen
T. Wills, CPA, MST
Executive
Vice President, Chief Financial Officer and Chief Operating
Officer
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EXHIBIT INDEX
2011 Stock
Incentive Plan, as amended and restated.
Press Release dated
June 29, 2020.
Exhibit 10.1
PALATIN TECHNOLOGIES, INC.
2011 STOCK INCENTIVE PLAN, AS AMENDED AND RESTATED
As Approved by the Company’s Stockholders on June 25,
2020
1. Establishment,
Purpose, Duration.
a. Establishment.
Palatin Technologies, Inc. (the “Company”) established
an equity compensation plan known as the Palatin Technologies, Inc.
2011 Stock Incentive Plan (the “Plan”) effective as of
March 11, 2011 (the “Effective Date”). The
Company’s stockholders originally approved the Plan on May
11, 2011 (the “Approval Date”). The Plan was amended
and restated as of March 3, 2015, amended as of April 1, 2016 and
re-approved by the Company’s stockholders on June 9, 2016,
amended and restated as of June 8, 2017, and amended as of June 26,
2018. On March 24, 2020, the Board approved an amendment to the
Plan to increase the common stock available for issuance by
10,000,000 shares, subject to approval by the Company’s
stockholders. Definitions of capitalized terms used in the Plan are
contained in Section 2 of the Plan.
b. Purpose.
The purpose of the Plan is to attract and retain Directors,
Consultants, officers and other key employees of the Company and
its Subsidiaries and to provide to such persons incentives and
rewards for superior performance.
c. Duration.
No Award may be granted under the Plan after March 10, 2025, or
such earlier date as the Board shall determine. The Plan will
remain in effect with respect to outstanding Awards until no Awards
remain outstanding.
d. Prior
Plans. The Palatin Technologies, Inc. 2005 Stock Plan, as
amended (the “Prior Plan”) terminated in its entirety
effective on the Approval Date; provided that all outstanding
awards under the Prior Plan as of the Approval Date remain
outstanding and shall be administered and settled in accordance
with the provisions of the Prior Plan.
2. Definitions.
As used in the Plan, the following definitions shall
apply.
“Applicable
Laws” means the applicable requirements relating to the
administration of equity-based compensation plans under U.S. state
corporate laws, U.S. federal and state securities laws, the Code,
the rules of any stock exchange or quotation system on which the
Shares are listed or quoted and the applicable laws of any other
country or jurisdiction where Awards are granted under the
Plan.
“Approval
Date” has the meaning given such term in Section
1(a).
“Award”
means a Nonqualified Stock Option, Incentive Stock Option, Stock
Appreciation Right, Restricted Shares Award, Restricted Share Unit,
Other Share-Based Award, or Cash-Based Award granted pursuant to
the terms and conditions of the Plan.
“Award
Agreement” means either: (i) an agreement, either in written
or electronic format, entered into by the Company and a Participant
setting forth the terms and provisions applicable to an Award
granted under the Plan; or (ii) a statement, either in written or
electronic format, issued by the Company to a Participant
describing the terms and provisions of such Award, which need not
be signed by the Participant.
“Board”
means the Board of Directors of the Company.
“Cash-Based
Award” shall mean a cash Award granted pursuant to Section 12
of the Plan.
“Cause”
as a reason for a termination of a Participant’s employment
shall have the meaning assigned such term, if any, in the
employment agreement, if any, between the Participant and the
Company or a Subsidiary, or if none, under a severance plan or
arrangement maintained by the Company or a Subsidiary that applies
to the Participant on the date of termination. If the Participant
is not a party to an employment agreement with the Company or a
Subsidiary in which such term is defined or if during the
applicable severance protection period, the Participant is not a
participant in any severance plan or arrangement maintained by the
Company or a Subsidiary, then unless otherwise defined in the
applicable Award Agreement, then the term “Cause” shall
mean: (a) (i) the Participant’s material breach of, or
habitual neglect or failure to perform the material aspects of his
or her duties; (ii) the Participant’s material failure to
follow the reasonable directives or policies established by or at
the direction of the board; or (iii) the Participant’s
engaging in conduct that is materially detrimental to the interests
of the Company such that the Company sustains a material loss or
injury as a result thereof, provided that the breach or failure of
performance by the Participant under subparagraphs (i) through
(iii) hereof is not cured, to the extent cure is possible, within
ten (10) days of the delivery to the Participant of written notice
thereof; (b) the willful breach by the Participant of any provision
of any confidentiality, invention and non-disclosure,
non-competition or similar agreement between the Participant and
the Company; or (c) the conviction of the Participant of, or the
entry of a pleading of guilty or nolo contendere by the Participant
to, any crime involving moral turpitude or any felony.
“Change
in Control” means the occurrence of any of the following
events: (a) Any “Person,” as such term is used in
Sections 13(d) and 14(d) of the Exchange Act (other than the
Company, any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or any corporation owned
directly or indirectly by the stockholders of the Company in
substantially the same proportion as their ownership of stock of
the Company) becoming the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 50%
of the combined voting power of the Company’s then
outstanding securities; (b) the date the individuals who, during
any twelve month period, constitute the board (the “Incumbent
Board”) cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director
during the twelve month period whose election, or nomination for
election by the Company’s stockholders, was approved by a
vote of at least a majority of the directors then comprising the
Incumbent Board (other than an election or nomination of an
individual whose initial assumption of office is in connection with
an actual or threatened election contest relating to the election
of the directors of the Company, as such terms are used in Rule
14a-11 of Regulation 14A under the Exchange Act) shall be, for
purposes of this Agreement, considered as though such person were a
member of the Incumbent Board; (c) the consummation of a merger or
consolidation of the Company approved by the stockholders of the
Company with any other corporation, other than (i) a merger or
consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) 50% or more of the
combined voting power of the voting securities of the Company or
such surviving entity outstanding immediately after such merger or
consolidation or (ii) a merger or consolidation effected to
implement a recapitalization of the Company (or similar
transaction) in which no Person acquires more than 50% of the
combined voting power of the Company’s then outstanding
securities; or (d) a sale of all or substantially all of the assets
of the Company.
2
“Code” means the Internal Revenue Code of 1986, as
amended.
“Committee”
means the Compensation Committee of the Board or such other
committee or subcommittee of the Board as may be duly appointed to
administer the Plan and having such powers in each instance as
shall be specified by the Board. To the extent required by
Applicable Laws, the Committee shall consist of two or more members
of the Board, each of whom is a “non-employee director”
within the meaning of Rule 16b-3 promulgated under the Exchange
Act, an “outside director” within the meaning of
regulations promulgated under Section 162(m) of the Code, and an
“independent director” within the meaning of applicable
rules of any securities exchange upon which Shares are
listed.
“Company”
has the meaning given such term in Section 1(a) and any successor
thereto.
“Consultant”
means an independent contractor that (a) performs services for the
Company or a Subsidiary in a capacity other than as an Employee or
Director and (b) qualifies as a consultant under the applicable
rules of the SEC for registration of shares on a Form S-8
Registration Statement.
“Date
of Grant” means the date as of which an Award is determined
to be effective and designated in a resolution by the Committee and
is granted pursuant to the Plan. The Date of Grant shall not be
earlier than the date of the resolution and action therein by the
Committee. In no event shall the Date of Grant be earlier than the
Effective Date.
“Detrimental
Activity” except as may be otherwise specified in a
Participant’s Award Agreement, means: (a) Engaging in any
activity of competition, as specified in any covenant not to
compete set forth in any agreement between a Participant and the
Company or a Subsidiary, including, but not limited to, the
Participant’s Award Agreement or any severance plan
maintained by the Company or a Subsidiary that covers the
Participant, during the period of restriction specified in the
agreement or plan prohibiting the Participant from engaging in such
activity; (b) Engaging in any activity of solicitation, as
specified in any covenant not to solicit set forth in any agreement
between a Participant and the Company or a Subsidiary, including,
but not limited to, the Participant’s Award Agreement or any
severance plan maintained by the Company or a Subsidiary that
covers the Participant, during the period of restriction specified
in the agreement or plan prohibiting the Participant from engaging
in such activity; (c) The disclosure of confidential information to
anyone outside the Company or a Subsidiary, or the use in other
than the Company’s or a Subsidiary’s business in
violation of any covenant not to disclose set forth in any
agreement between a Participant and the Company or a Subsidiary,
including, but not limited to, the Participant’s Award
Agreement or any severance plan maintained by the Company or a
Subsidiary that covers the Participant, during the period of
restriction specified in the agreement or plan prohibiting the
Participant from engaging in such activity; (d) The violation of
any development and inventions, ownership of works, or similar
provision set forth in any agreement between a Participant and the
Company or a Subsidiary, including, but not limited to, the
Participant’s Award Agreement or any severance plan
maintained by the Company or a Subsidiary that covers the
Participant; (e) Participant’s commission of any act of
fraud, misappropriation or embezzlement against or in connection
with the Company or any of its Subsidiaries or their respective
businesses or operations; or (f) a conviction, guilty plea or plea
of nolo contendere of Participant for any crime involving
dishonesty or for any felony.
3
“Director”
means any individual who is a member of the Board who is not an
Employee.
“Effective
Date” has the meaning given such term in Section
1(a).
“Employee”
means any employee of the Company or a Subsidiary; provided,
however, that for purposes of determining whether any person may be
a Participant for purposes of any grant of Incentive Stock Options,
the term “Employee” has the meaning given to such term
in Section 3401(c) of the Code, as interpreted by the regulations
thereunder and Applicable Law.
“Exchange
Act” means the Securities Exchange Act of 1934 and the rules
and regulations thereunder, as such law, rules and regulations may
be amended from time to time.
“Fair
Market Value” means the value of one Share on any relevant
date, determined under the following rules: (a) the closing sale
price per Share on that date as reported on the principal exchange
or national market system on which Shares are then trading, or if
there are no sales on that date, on the next preceding trading day
during which a sale occurred; (b) if the Shares are not reported on
a principal exchange or national market system, the average of the
closing bid and asked prices last quoted on that date by an
established quotation service for over-the-counter securities; or
(c) if neither (a) nor (b) applies, (i) with respect to Stock
Options, Stock Appreciation Rights and any Award of stock rights
that is subject to Section 409A of the Code, the value as
determined by the Committee through the reasonable application of a
reasonable valuation method, taking into account all information
material to the value of the Company, within the meaning of Section
409A of the Code, and (ii) with respect to all other Awards, the
fair market value as determined by the Committee in good
faith.
“Incentive
Stock Option” or “ISO” means a Stock Option that
is designated as an Incentive Stock Option and that is intended to
meet the requirements of Section 422 of the Code.
“Nonqualified
Stock Option” means a Stock Option that is not intended to
meet the requirements of Section 422 of the Code or otherwise does
not meet such requirements.
“Other
Share-Based Award” means an equity-based or equity-related
Award not otherwise described by the terms of the Plan, granted in
accordance with the terms and conditions set forth in Section
10.
“Participant”
means any eligible individual as set forth in Section 5 who holds
one or more outstanding Awards.
“Performance-Based
Exception” means the performance-based exception from the tax
deductibility limitations of Section 162(m) of the
Code.
“Performance
Objectives” means the measurable performance objective or
objectives established by the Committee pursuant to the Plan. Any
Performance Objectives may relate to the performance of the Company
or one or more of its Subsidiaries, divisions, departments, units,
functions, partnerships, joint ventures or minority investments,
product lines or products, or the performance of the individual
Participant, and may include, without limitation, the Performance
Objectives set forth in Section 14(b). The Performance Objectives
may be made relative to the performance of a group of comparable
companies, or published or special index that the Committee, in its
sole discretion, deems appropriate, or the Company may select
Performance Objectives as compared to various stock market indices.
Performance Objectives may be stated as a combination of the listed
factors.
4
“Plan”
means this Palatin Technologies, Inc. 2011 Stock Incentive Plan, as
amended from time to time.
“Prior
Plan” has the meaning given such term in Section
1(d).
“Restricted
Shares” means Shares granted or sold pursuant to Section 8 as
to which neither the substantial risk of forfeiture nor the
prohibition on transfers referred to in such Section 8 has
expired.
“Restricted
Share Unit” means a grant or sale of the right to receive
Shares or cash at the end of a specified restricted period made
pursuant to Section 9.
“SEC”
means the United States Securities and Exchange
Commission.
“Share”
means a share of common stock, par value $.01, of the Company, or
any security into which such Share may be changed by reason of any
transaction or event of the type referred to in Section
16.
“Stock
Appreciation Right” means a right granted pursuant to Section
7.
“Stock
Option” means a right to purchase a Share granted to a
Participant under the Plan in accordance with the terms and
conditions set forth in Section 6. Stock Options may be either
Incentive Stock Options or Nonqualified Stock Options.
“Subsidiary”
means: (a) with respect to an Incentive Stock Option, a
“subsidiary corporation” as defined under Section
424(f) of the Code; and (b) for all other purposes under the Plan,
any corporation or other entity in which the Company owns, directly
or indirectly, a proprietary interest of more than fifty percent
(50%) by reason of stock ownership or otherwise.
“Ten
Percent Stockholder” shall mean any Participant who owns more
than 10% of the combined voting power of all classes of stock of
the Company, within the meaning of Section 422 of the
Code.
3. Shares
Available Under the Plan.
a. Shares
Available for Awards. The maximum number of Shares that may
be issued or delivered pursuant to Awards under the Plan shall be
42,500,000, plus the number of Shares that, on the Approval Date,
were available to be granted under the Prior Plan but which were
not then subject to outstanding awards under the Prior Plan, all of
which may be granted with respect to Incentive Stock Options.
Shares issued or delivered pursuant to an Award may be authorized
but unissued Shares, treasury Shares, including Shares purchased in
the open market, or a combination of the foregoing. The aggregate
number of Shares available for issuance or delivery under the Plan
shall be subject to adjustment as provided in Section
16.
5
b. Share
Usage. In addition to the number of Shares provided for in
Section 3(a), the following Shares shall be available for Awards
under the Plan: (i) Shares covered by an Award that expires or is
forfeited, canceled, surrendered or otherwise terminated without
the issuance of such Shares; (ii) Shares covered by an Award that
is settled only in cash; (iii) Shares granted through the
assumption of, or in substitution for, outstanding awards granted
by a company to individuals who become Employees, Consultants or
Directors as the result of a merger, consolidation, acquisition or
other corporate transaction involving such company and the Company
or any of its Affiliates (except as may be required by reason of
Section 422 of the Code or the rules and regulations of any stock
exchange or other trading market on which the Shares are listed);
(iv) any Shares subject to outstanding awards under the Prior Plans
as of the Approval Date that on or after the Approval Date are
forfeited, canceled, surrendered or otherwise terminated without
the issuance of such Shares; and (v) any Shares from awards
exercised for or settled in vested and nonforfeitable Shares that
are later returned to the Company pursuant to any compensation
recoupment policy, provision or agreement. Notwithstanding the
foregoing, the following Shares issued or delivered under this Plan
shall not again be available for grant as described above: Shares
tendered in payment of the exercise price of a Stock Option, Shares
withheld by the Company or any Subsidiary to satisfy a tax
withholding obligation, and Shares that are repurchased by the
Company with Stock Option proceeds. Without limiting the foregoing,
with respect to any Stock Appreciation Right that is settled in
Shares, the full number of Shares subject to the Award shall count
against the number of Shares available for Awards under the Plan
regardless of the number of Shares used to settle the Stock
Appreciation Right upon exercise.
(i) Subject
to adjustment as provided in Section 16 of the Plan, the following
limits shall apply with respect to Awards that are intended to
qualify for the Performance-Based Exception: (A) the maximum
aggregate number of Shares that may be subject to Stock Options or
Stock Appreciation Rights granted in any calendar year to any one
Participant shall be 750,000 Shares; (B) the maximum aggregate
number of Restricted Shares and Shares issuable or deliverable
under Restricted Share Units granted in any calendar year to any
one Participant shall be 750,000 Shares; (C) the maximum aggregate
compensation that can be paid pursuant to Cash-Based Awards or
Other Share-Based Awards granted in any calendar year to any one
Participant shall be $750,000 or a number of Shares having an
aggregate Fair Market Value not in excess of such amount; and (D)
the maximum dividend equivalents that may be paid in any calendar
year to any one Participant shall be $100,000 or a number of Shares
having an aggregate Fair Market Value not in excess of such
amount.
(ii) Notwithstanding
any other provision of the Plan to the contrary, the aggregate
grant date fair value (determined as of the applicable Date(s) of
Grant in accordance with applicable financial accounting rules) of
all Awards granted to any Director during any single calendar year,
taken together with any cash fees paid to such person during such
calendar year, shall not exceed $350,000.
4. Administration
of the Plan.
a. In
General. The Plan shall be administered by the Committee.
Except as otherwise provided by the Board, the Committee shall have
full and final authority in its discretion to take all actions
determined by the Committee to be necessary in the administration
of the Plan, including, without limitation, discretion to: select
Award recipients; determine the sizes and types of Awards;
determine the terms and conditions of Awards in a manner consistent
with the Plan; grant waivers of terms, conditions, restrictions and
limitations applicable to any Award, or accelerate the vesting or
exercisability of any Award, in a manner consistent with the Plan;
construe and interpret the Plan and any Award Agreement or other
agreement or instrument entered into under the Plan; establish,
amend, or waive rules and regulations for the Plan’s
administration; and take such other action, not inconsistent with
the terms of the Plan, as the Committee deems appropriate. To the
extent permitted by Applicable Laws, the Committee may, in its
discretion, delegate to one or more Directors or Employees any of
the Committee’s authority under the Plan. The acts of any
such delegates shall be treated hereunder as acts of the Committee
with respect to any matters so delegated.
6
b. Determinations.
The Committee shall have no obligation to treat Participants or
eligible Participants uniformly, and the Committee may make
determinations under the Plan selectively among Participants who
receive, or Employees, Consultants or Directors who are eligible to
receive, Awards (whether or not such Participants or eligible
Employees, Consultants or Directors are similarly situated). All
determinations and decisions made by the Committee pursuant to the
provisions of the Plan and all related orders and resolutions of
the Committee shall be final, conclusive and binding on all
persons, including the Company, its Subsidiaries, its stockholders,
Directors, Consultants, Employees, Participants and their estates
and beneficiaries.
c. Authority
of the Board. The Board may reserve to itself any or all of
the authority or responsibility of the Committee under the Plan or
may act as the administrator of the Plan for any and all purposes.
To the extent the Board has reserved any such authority or
responsibility or during any time that the Board is acting as
administrator of the Plan, it shall have all the powers of the
Committee hereunder, and any reference herein to the Committee
(other than in this Section 4(c)) shall include the Board. To the
extent that any action of the Board under the Plan conflicts with
any action taken by the Committee, the action of the Board shall
control.
5. Eligibility
and Participation.
Each Employee, Consultant and Director is eligible to participate
in the Plan. Subject to the provisions of the Plan, the Committee
may, from time to time, select from all eligible Employees,
Consultants and Directors those to whom Awards shall be granted and
shall determine, in its sole discretion, the nature of any and all
terms permissible by Applicable Law and the amount of each
Award.
6. Stock
Options. Subject to
the terms and conditions of the Plan, Stock Options may be granted
to Participants in such number, and upon such terms and conditions,
as shall be determined by the Committee in its sole
discretion.
a. Award
Agreement. Each Stock Option shall be evidenced by an Award
Agreement that shall specify the exercise price, the term of the
Stock Option, the number of Shares covered by the Stock Option, the
conditions upon which the Stock Option shall become vested and
exercisable and such other terms and conditions as the Committee
shall determine and which are not inconsistent with the terms and
conditions of the Plan. The Award Agreement also shall specify
whether the Stock Option is intended to be an Incentive Stock
Option or a Nonqualified Stock Option.
b. Exercise
Price. The exercise price per Share of an Option shall be
determined by the Committee at the time the Stock Option is granted
and shall be specified in the related Award Agreement; provided,
however, that in no event shall the exercise price per Share of any
Option be less than one hundred percent (100%) of the Fair Market
Value of a Share on the Date of Grant.
c. Term.
The term of an Option shall be determined by the Committee and set
forth in the related Award Agreement; provided, however, that in no
event shall the term of any Option exceed ten (10) years from its
Date of Grant.
7
d. Exercisability.
Stock Options shall become exercisable at such times and upon such
terms and conditions as shall be determined by the Committee and
set forth in the related Award Agreement. Such terms and conditions
may include, without limitation, the satisfaction of (a)
performance goals based on one or more Performance Objectives, and
(b) time-based vesting requirements.
e. Exercise
of Options. Except as otherwise provided in the Plan or in a
related Award Agreement, a Stock Option may be exercised for all or
any portion of the Shares for which it is then exercisable. A Stock
Option shall be exercised by the delivery of a notice of exercise
to the Company or its designee in a form specified by the Company
which sets forth the number of Shares with respect to which the
Stock Option is to be exercised and full payment of the exercise
price for such Shares. The exercise price of a Stock Option may be
paid: (i) in cash or its equivalent; (ii) by tendering (either by
actual delivery or attestation) previously acquired Shares having
an aggregate Fair Market Value at the time of exercise equal to the
aggregate exercise price; (iii) by a cashless exercise (including
by withholding Shares deliverable upon exercise and through a
broker-assisted arrangement to the extent permitted by Applicable
Law); (iv) by a combination of the methods described in clauses
(i), (ii) and/or (iii); or (v) though any other method approved by
the Committee in its sole discretion. As soon as practicable after
receipt of the notification of exercise and full payment of the
exercise price, the Company shall cause the appropriate number of
Shares to be issued to the Participant.
f. Special
Rules Applicable to Incentive Stock Options. Notwithstanding
any other provision in the Plan to the contrary:
(i) Incentive
Stock Options may be granted only to Employees of the Company and
its Subsidiaries. The terms and conditions of Incentive Stock
Options shall be subject to and comply with the requirements of
Section 422 of the Code.
(ii) To
the extent that the aggregate Fair Market Value of the Shares
(determined as of the Date of Grant) with respect to which an
Incentive Stock Option is exercisable for the first time by any
Participant during any calendar year (under all plans of the
Company and its Subsidiaries) is greater than $100,000 (or such
other amount specified in Section 422 of the Code), as calculated
under Section 422 of the Code, then the Stock Option shall be
treated as a Nonqualified Stock Option.
(iii) No
Incentive Stock Option shall be granted to any Participant who, on
the Date of Grant, is a Ten Percent Stockholder, unless (x) the
exercise price per Share of such Incentive Stock Option is at least
one hundred and ten percent (110%) of the Fair Market Value of a
Share on the Date of Grant, and (y) the term of such Incentive
Stock Option shall not exceed five (5) years from the Date of
Grant.
7. Stock
Appreciation Rights.
Subject to the terms and conditions of the Plan, Stock Appreciation
Rights may be granted to Participants in such number, and upon such
terms and conditions, as shall be determined by the Committee in
its sole discretion.
a. Award
Agreement. Each Stock Appreciation Right shall be evidenced
by an Award Agreement that shall specify the exercise price, the
term of the Stock Appreciation Right, the number of Shares covered
by the Stock Appreciation Right, the conditions upon which the
Stock Appreciation Right shall become vested and exercisable and
such other terms and conditions as the Committee shall determine
and which are not inconsistent with the terms and conditions of the
Plan.
8
b. Exercise
Price. The exercise price per Share of a Stock Appreciation
Right shall be determined by the Committee at the time the Stock
Appreciation Right is granted and shall be specified in the related
Award Agreement; provided, however, that in no event shall the
exercise price per Share of any Stock Appreciation Right be less
than one hundred percent (100%) of the Fair Market Value of a Share
on the Date of Grant.
c. Term.
The term of a Stock Appreciation Right shall be determined by the
Committee and set forth in the related Award Agreement; provided
however, that in no event shall the term of any Stock Appreciation
Right exceed ten (10) years from its Date of Grant.
d. Exercisability
of Stock Appreciation Rights. A Stock Appreciation Right
shall become exercisable at such times and upon such terms and
conditions as may be determined by the Committee and set forth in
the related Award Agreement. Such terms and conditions may include,
without limitation, the satisfaction of (i) performance goals based
on one or more Performance Objectives, and (ii) time-based vesting
requirements.
e. Exercise
of Stock Appreciation Rights. Except as otherwise provided
in the Plan or in a related Award Agreement, a Stock Appreciation
Right may be exercised for all or any portion of the Shares for
which it is then exercisable. A Stock Appreciation Right shall be
exercised by the delivery of a notice of exercise to the Company or
its designee in a form specified by the Company which sets forth
the number of Shares with respect to which the Stock Appreciation
Right is to be exercised. Upon exercise, a Stock Appreciation Right
shall entitle a Participant to an amount equal to (a) the excess of
(i) the Fair Market Value of a Share on the exercise date over (ii)
the exercise price per Share, multiplied by (b) the number of
Shares with respect to which the Stock Appreciation Right is
exercised. A Stock Appreciation Right may be settled in whole
Shares, cash or a combination thereof, as specified by the
Committee in the related Award Agreement.
8. Restricted
Shares. Subject to
the terms and conditions of the Plan, Restricted Shares may be
granted or sold to Participants in such number, and upon such terms
and conditions, as shall be determined by the Committee in its sole
discretion.
a. Award
Agreement. Each Restricted Shares Award shall be evidenced
by an Award Agreement that shall specify the number of Restricted
Shares, the restricted period(s) applicable to the Restricted
Shares, the conditions upon which the restrictions on the
Restricted Shares will lapse and such other terms and conditions as
the Committee shall determine and which are not inconsistent with
the terms and conditions of the Plan.
b. Terms,
Conditions and Restrictions. The Committee shall impose such
other terms, conditions and/or restrictions on any Restricted
Shares as it may deem advisable, including, without limitation, a
requirement that the Participant pay a purchase price for each
Restricted Share, restrictions based on the achievement of specific
Performance Objectives, time-based restrictions or holding
requirements or sale restrictions placed on the Shares by the
Company upon vesting of such Restricted Shares. Unless otherwise
provided in the related Award Agreement or required by Applicable
Law, the restrictions imposed on Restricted Shares shall lapse upon
the expiration or termination of the applicable restricted period
and the satisfaction of any other applicable terms and
conditions.
9
c. Custody
of Certificates. To the extent deemed appropriate by the
Committee, the Company may retain the certificates representing
Restricted Shares in the Company’s possession until such time
as all terms, conditions and/or restrictions applicable to such
Shares have been satisfied or lapse.
d. Rights
Associated with Restricted Shares during Restricted Period.
During any restricted period applicable to Restricted Shares: (i)
the Restricted Shares may not be sold, transferred, pledged,
assigned or otherwise alienated or hypothecated; (ii) unless
otherwise provided in the related Award Agreement, the Participant
shall be entitled to exercise full voting rights associated with
such Restricted Shares; and (iii) the Participant shall be entitled
to all dividends and other distributions paid with respect to such
Restricted Shares during the restricted period; provided, however,
that any dividends or other distributions with respect to unvested
Restricted Shares shall be accumulated or deemed reinvested in
additional Restricted Shares until such Award is earned and vested,
and shall be subject to the same terms and conditions as the
original Award (including the satisfaction of service-based vesting
conditions and the achievement of any Performance
Objectives).
9. Restricted
Share Units. Subject
to the terms and conditions of the Plan, Restricted Share Units may
be granted or sold to Participants in such number, and upon such
terms and conditions, as shall be determined by the Committee in
its sole discretion.
a. Award
Agreement. Each Restricted Share Unit shall be evidenced by
an Award Agreement that shall specify the number of units, the
restricted period(s) applicable to the Restricted Share Units, the
conditions upon which the restrictions on the Restricted Share
Units will lapse, the time and method of payment of the Restricted
Share Units, and such other terms and conditions as the Committee
shall determine and which are not inconsistent with the terms and
conditions of the Plan.
b. Terms,
Conditions and Restrictions. The Committee shall impose such
other terms, conditions and/or restrictions on any Restricted Share
Units as it may deem advisable, including, without limitation, a
requirement that the Participant pay a purchase price for each
Restricted Share Unit, restrictions based on the achievement of
specific Performance Objectives or time-based restrictions or
holding requirements.
c. Form
of Settlement. Restricted Share Units may be settled in
whole Shares, Restricted Shares, cash or a combination thereof, as
specified by the Committee in the related Award
Agreement.
10. Other
Share-Based Awards.
Subject to the terms and conditions of the Plan, Other Share-Based
Awards may be granted to Participants in such number, and upon such
terms and conditions, as shall be determined by the Committee in
its sole discretion. Other Share-Based Awards are Awards that are
valued in whole or in part by reference to, or otherwise based on
the Fair Market Value of, Shares, and shall be in such form as the
Committee shall determine, including without limitation,
unrestricted Shares or time-based or performance-based units that
are settled in Shares and/or cash.
a. Award
Agreement. Each Other Share-Based Award shall be evidenced
by an Award Agreement that shall specify the terms and conditions
upon which the Other Share-Based Award shall become vested, if
applicable, the time and method of settlement, the form of
settlement and such other terms and conditions as the Committee
shall determine and which are not inconsistent with the terms and
conditions of the Plan.
10
b. Form
of Settlement. An Other Share-Based Award may be settled in
whole Shares, Restricted Shares, cash or a combination thereof, as
specified by the Committee in the related Award
Agreement.
11. Dividend
Equivalents. At the
discretion of the Committee, Awards granted pursuant to the Plan,
other than awards of Stock Options or Stock Appreciation Rights,
may provide Participants with the right to receive dividend
equivalents, which may be credited to an account for the
Participants, and may be settled in cash and/or Shares, as
determined by the Committee in its sole discretion; provided,
however, that any such dividend equivalents with respect to any
unvested Award shall be accumulated or deemed reinvested until such
Award is earned and vested, and shall be subject to the same terms
and conditions as the original Award (including the satisfaction of
service-based vesting conditions and the achievement of any
Performance Objectives). No dividend equivalents shall be granted
with respect to Shares underlying a Stock Option or Stock
Appreciation Right.
12. Cash-Based
Awards. Subject to
the terms and conditions of the Plan, Cash-Based Awards may be
granted to Participants in such amounts and upon such other terms
and conditions as shall be determined by the Committee in its sole
discretion. Each Cash-Based Award shall be evidenced by an Award
Agreement that shall specify the payment amount or payment range,
the time and method of settlement and the other terms and
conditions, as applicable, of such Award which may include, without
limitation, restrictions based on the achievement of specific
Performance Objectives.
13. Compliance
with Section 409A.
Awards granted under the Plan shall be designed and administered in
such a manner that they are either exempt from the application of,
or comply with, the requirements of Section 409A of the Code. To
the extent that the Committee determines that any award granted
under the Plan is subject to Section 409A of the Code, the Award
Agreement shall incorporate the terms and conditions necessary to
avoid the imposition of an additional tax under Section 409A of the
Code upon a Participant. Notwithstanding any other provision of the
Plan or any Award Agreement (unless the Award Agreement provides
otherwise with specific reference to this Section 13): (a) an Award
shall not be granted, deferred, accelerated, extended, paid out,
settled, substituted or modified under the Plan in a manner that
would result in the imposition of an additional tax under Section
409A of the Code upon a Participant; and (b) if an Award is subject
to Section 409A of the Code, and if the Participant holding the
award is a “specified employee” (as defined in Section
409A of the Code, with such classification to be determined in
accordance with the methodology established by the Company), then,
to the extent required to avoid the imposition of an additional tax
under Section 409A of the Code upon a Participant, no distribution
or payment of any amount shall be made before the date that is six
(6) months following the date of such Participant’s
“separation from service” (as defined in Section 409A
of the Code) or, if earlier, the date of the Participant’s
death. Although the Company intends to administer the Plan so that
Awards will be exempt from, or will comply with, the requirements
of Section 409A of the Code, the Company does not warrant that any
Award under the Plan will qualify for favorable tax treatment under
Section 409A of the Code or any other provision of federal, state,
local, or non-United States law. The Company shall not be liable to
any Participant for any tax, interest, or penalties the Participant
might owe as a result of the grant, holding, vesting, exercise, or
payment of any Award under the Plan.
11
14. Compliance
with Section 162(m).
a. In
General. Notwithstanding anything in the Plan to the
contrary, Restricted Shares, Restricted Share Units, Other
Share-Based Awards and Cash-Based Awards may be granted in a manner
that is intended to qualify the Award for the Performance-Based
Exception. As determined by the Committee in its sole discretion,
the grant, vesting, exercisability and/or settlement of any Awards
intended to qualify the Award for the Performance-Based Exception
shall be conditioned on the attainment of one or more Performance
Objectives during a performance period established by the
Committee. Any such Award must meet the requirements of this
Section 14.
b. Performance
Objectives. If an Award is intended to qualify for the
Performance-Based Exception, then the Performance Objectives shall
be based on specified levels of, or growth in, one or more of the
following criteria: revenues, earnings from operations, operating
income, earnings before or after interest and taxes, operating
income before or after interest and taxes, net income, cash flow,
earnings per share, return on total capital, return on invested
capital, return on equity, return on assets, total return to
stockholders, earnings before or after interest, or extraordinary
or special items, operating income before or after interest, taxes,
depreciation, amortization or extraordinary or special items,
return on investment, free cash flow, cash flow return on
investment (discounted or otherwise), net cash provided by
operations, cash flow in excess of cost of capital, operating
margin, profit margin, contribution margin, stock price and/or
strategic business criteria consisting of one or more objectives
based on meeting specified product development, strategic
partnering, research and development milestones, clinical trial
status, product approvals in geographic regions, market
penetration, geographic business expansion goals, cost targets,
customer satisfaction, management of employment practices and
employee benefits, supervision of litigation and information
technology, and goals relating to acquisitions or divestitures of
subsidiaries, affiliates and joint ventures. To the extent
consistent with the Performance-Based Exception, the Performance
Objectives may be calculated without regard to extraordinary items
or adjusted, as the Committee deems equitable, in recognition of
unusual or non-recurring events affecting the Company or its
Subsidiaries or changes in applicable tax laws or accounting
principles.
c. Establishment
of Performance Goals. With respect to Awards intended to
qualify for the Performance-Based Exception, the Committee shall
establish: (i) the applicable Performance Objectives and
performance period, and (ii) the formula for computing the payout.
Such terms and conditions shall be established in writing while the
outcome of the applicable performance period is substantially
uncertain, but in no event later than the earlier of: (x) ninety
days after the beginning of the applicable performance period; or
(y) the expiration of twenty-five percent (25%) of the applicable
performance period.
d. Certification
of Performance. With respect to any Award intended to
qualify for the Performance-Based Exception, the Committee shall
certify in writing whether the applicable Performance Objectives
and other material terms imposed on such Award have been satisfied,
and, if they have, ascertain the amount of the payout or vesting of
the Award. Notwithstanding any other provision of the Plan, payment
or vesting of any such Award shall not be made until the Committee
certifies in writing that the applicable Performance Objectives and
any other material terms of such Award were in fact satisfied in a
manner conforming to applicable regulations under Section 162(m) of
the Code.
12
e. Negative
Discretion. With respect to any Award intended to qualify
for the Performance-Based Exception, the Committee shall not have
discretion to increase the amount of compensation that is payable
upon achievement of the designated Performance Objectives. However,
the Committee may, in its sole discretion, reduce the amount of
compensation that is payable upon achievement of the designated
Performance Objectives.
15. Transferability.
Except as otherwise determined by the Committee, no Award or
dividend equivalents paid with respect to any Award shall be
transferable by the Participant except by will or the laws of
descent and distribution; provided, that if so determined by the
Committee, each Participant may, in a manner established by the
Board or the Committee, designate a beneficiary to exercise the
rights of the Participant with respect to any Award upon the death
of the Participant and to receive Shares or other property issued
or delivered under such Award. Except as otherwise determined by
the Committee, Stock Options and Stock Appreciation Rights will be
exercisable during a Participant’s lifetime only by the
Participant or, in the event of the Participant’s legal
incapacity to do so, by the Participant’s guardian or legal
representative acting on behalf of the Participant in a fiduciary
capacity under state law and/or court supervision.
16. Adjustments.
In the event of any equity restructuring (within the meaning of
Financial Accounting Standards Board Accounting Standards
Codification Topic 718, Compensation — Stock Compensation),
such as a stock dividend, stock split, reverse stock split,
spinoff, rights offering, or recapitalization through a large,
nonrecurring cash dividend, the Committee shall cause there to be
an equitable adjustment in the numbers of Shares specified in
Section 3 of the Plan and, with respect to outstanding Awards, in
the number and kind of Shares subject to outstanding Awards, the
exercise price or other price of Shares subject to outstanding
Awards, in each case to prevent dilution or enlargement of the
rights of Participants. In the event of any other change in
corporate capitalization, or in the event of a merger,
consolidation, liquidation, or similar transaction, the Committee
may, in its sole discretion, cause there to be an equitable
adjustment as described in the foregoing sentence, to prevent
dilution or enlargement of rights; provided, however, that, unless
otherwise determined by the Committee, the number of Shares subject
to any Award shall always be rounded down to a whole number.
Notwithstanding the foregoing, the Committee shall not make any
adjustment pursuant to this Section 16 that would (i) cause any
Stock Option intended to qualify as an ISO to fail to so qualify,
(ii) cause an Award that is otherwise exempt from Section 409A of
the Code to become subject to Section 409A of the Code, or (iii)
cause an Award that is subject to Section 409A of the Code to fail
to satisfy the requirements of Section 409A of the Code. The
determination of the Committee as to the foregoing adjustments, if
any, shall be conclusive and binding on all Participants and any
other persons claiming under or through any
Participant.
17. Fractional
Shares. The Company
shall not be required to issue or deliver any fractional Shares
pursuant to the Plan and, unless otherwise provided by the
Committee, fractional shares shall be settled in cash.
13
18. Withholding
Taxes. To the extent
required by Applicable Law, a Participant shall be required to
satisfy, in a manner satisfactory to the Company or Subsidiary, as
applicable, any withholding tax obligations that arise by reason of
a Stock Option or Stock Appreciation Right exercise, the vesting of
or settlement of Shares under an Award, an election pursuant to
Section 83(b) of the Code or otherwise with respect to an Award.
The Company and its Subsidiaries shall not be required to issue or
deliver Shares, make any payment or to recognize the transfer or
disposition of Shares until such obligations are satisfied. The
Committee may permit or require these obligations to be satisfied
by having the Company withhold a portion of the Shares that
otherwise would be issued or delivered to a Participant upon
exercise of a Stock Option or Stock Appreciation Right or upon the
vesting or settlement of an Award, or by tendering Shares
previously acquired, in each case having a Fair Market Value equal
to the amount required to be withheld. In no event will the Fair
Market Value of the Shares to be withheld or tendered pursuant to
this Section 18 to satisfy applicable withholding taxes exceed the
amount of taxes required to be withheld based on the maximum
statutory tax rates in the applicable taxing jurisdictions. Any
elections pursuant to this Section 18 subject to such conditions or
procedures as may be established by the Committee and may be
subject to disapproval by the Committee.
19. Foreign
Employees. Without
amending the Plan, the Committee may grant Awards to Participants
who are foreign nationals on such terms and conditions different
from those specified in the Plan as may in the judgment of the
Committee be necessary or desirable to foster and promote
achievement of the purposes of the Plan, and, in furtherance of
such purposes, the Committee may make such modifications,
amendments, procedures, and the like as may be necessary or
advisable to comply with provisions of Applicable Laws of other
countries in which the Company or its Subsidiaries operate or have
employees.
20. Detrimental
Activity; Forfeiture of Awards.
a. Detrimental
Activity. If a Participant has engaged in any Detrimental
Activity, as determined by the Committee in its sole discretion,
either during service with the Company or a Subsidiary or after
termination of such service, then, promptly upon receiving notice
of the Committee’s determination, the Participant shall: (i)
forfeit all Awards granted under the Plan to the extent then held
by the Participant; (ii) return to the Company or the Subsidiary
all Shares that the Participant has not disposed of that had been
acquired, pursuant to Awards granted under the Plan, within two (2)
years prior to the date of the Participant’s initial
commencement of the Detrimental Activity, in exchange for payment
by the Company or the Subsidiary of any amount actually paid
therefor by the Participant; and (iii) with respect to any Shares
acquired, within two (2) years prior to the date of the
Participant’s initial commencement of the Detrimental
Activity, pursuant to an Award granted under the Plan that were
disposed of, pay to the Company or the Subsidiary, in cash, the
excess, if any, of: (A) the Fair Market Value of the Shares on the
date acquired, over (B) any amount actually paid by the Participant
for the Shares.
b. Compensation
Recovery Policy. Any Award granted to a Participant shall be
subject to forfeiture or repayment pursuant to the terms of any
applicable compensation recovery policy adopted by the Company,
including any such policy that may be adopted to comply with the
Dodd-Frank Wall Street Reform and Consumer Protection Act or any
rules or regulations issued by the Securities and Exchange
Commission rule or applicable securities exchange.
c. Set-Off
and Other Remedies. To the extent that amounts are not
immediately returned or paid to the Company as provided in this
Section 20, the Company may, to the extent permitted by Applicable
Laws, seek other remedies, including a set off of the amounts so
payable to it against any amounts that may be owing from time to
time by the Company or a Subsidiary to the Participant for any
reason, including, without limitation, wages, or vacation pay or
other benefits; provided, however, that, except to the extent
permitted by Treasury Regulation Section 1.409A-3(j)(4), such
offset shall not apply to amounts that are “deferred
compensation” within the meaning of Section 409A of the
Code.
14
21. Change
in Control. In the
event of a Change in Control, the Committee may, in its sole
discretion and without providing prior notice or receiving the
consent of the Participant, take such actions, if any, as it deems
necessary or desirable with respect to any Award that is
outstanding as of the date of the consummation of the Change in
Control. Such actions may include, without limitation: (i) the
acceleration of the vesting, settlement and/or exercisability of an
Award; (ii) the payment of a cash amount in exchange for the
cancellation of an Award; (iii) the cancellation of Stock Options
and/or Stock Appreciation Rights without payment therefor if the
Fair Market Value of a Share on the date of the Change in Control
does not exceed the exercise price per Share of the applicable
Awards; and/or (iv) make provisions for the assumption or
conversion of Awards, or the issuance of substitute Awards that, in
either case, substantially preserve the value, rights and benefits
of any affected Awards.
22. Amendment,
Modification and Termination.
a. In
General. The Board may at any time and from time to time,
alter, amend, suspend or terminate the Plan in whole or in part;
provided, however, that no alteration or amendment that requires
stockholder approval in order for the Plan to comply with any rule
promulgated by the SEC or any securities exchange on which Shares
are listed or any other Applicable Laws shall be effective unless
such amendment shall be approved by the requisite vote of
stockholders of the Company entitled to vote thereon within the
time period required under such applicable listing standard or
rule.
b. Adjustments
to Outstanding Awards. The Committee may in its sole
discretion at any time (i) provide that all or a portion of a
Participant’s Stock Options, Stock Appreciation Rights, and
other Awards in the nature of rights that may be exercised shall
become fully or partially exercisable; (ii) provide that all or a
part of the time-based vesting restrictions on all or a portion of
the outstanding Awards shall lapse, and/or that any Performance
Objectives or other performance-based criteria with respect to any
Awards shall be deemed to be wholly or partially satisfied; or
(iii) waive any other limitation or requirement under any such
Award, in each case, as of such date as the Committee may, in its
sole discretion, declare. Unless otherwise determined by the
Committee, any such adjustment that is made with respect to an
Award that is intended to qualify for the Performance-Based
Exception shall be made at such times and in such manner as will
not cause such Awards to fail to qualify under the
Performance-Based Exception. Additionally, the Committee shall not
make any adjustment pursuant to this Section 22(b) that would cause
an Award that is otherwise exempt from Section 409A of the Code to
become subject to Section 409A of the Code, or that would cause an
Award that is subject to Section 409A of the Code to fail to
satisfy the requirements of Section 409A of the Code.
c. Prohibition
on Repricing. Except for adjustments made pursuant to
Sections 16 or 21, the Board or the Committee will not, without the
further approval of the stockholders of the Company, authorize the
amendment of any outstanding Stock Option or Stock Appreciation
Right to reduce the exercise price. No Stock Option or Stock
Appreciation Right will be cancelled and replaced with an Award
having a lower exercise price, or for another Award, or for cash
without further approval of the stockholders of the Company, except
as provided in Sections 16 or 21. Furthermore, no Stock Option or
Stock Appreciation Right will provide for the payment, at the time
of exercise, of a cash bonus or grant or sale of another Award
without further approval of the stockholders of the Company. This
Section 22(c) is intended to prohibit the repricing of
“underwater” Stock Options or Stock Appreciation Rights
without stockholder approval and will not be construed to prohibit
the adjustments provided for in Sections 16 or 21.
15
d. Effect
on Outstanding Awards. Notwithstanding any other provision
of the Plan to the contrary (other than Sections 16, 20, 21, 22(b)
and 24(d)), no termination, amendment, suspension, or modification
of the Plan or an Award Agreement shall adversely affect in any
material way any Award previously granted under the Plan, without
the written consent of the Participant holding such Award.
Notwithstanding the preceding sentence, any ISO granted under the
Plan may be modified by the Committee to disqualify such Stock
Option from treatment as an “incentive stock option”
under Section 422 of the Code.
23. Applicable
Laws. The obligations
of the Company with respect to Awards under the Plan shall be
subject to all Applicable Laws and such approvals by any
governmental agencies as the Committee determines may be required.
The Plan and each Award Agreement shall be governed by the laws of
the State of Delaware, excluding any conflicts or choice of law
rule or principle that might otherwise refer construction or
interpretation of the Plan to the substantive law of another
jurisdiction.
24. Miscellaneous.
a. Deferral
of Awards. Except with respect to Stock Options and Stock
Appreciation Rights, the Committee may permit Participants to elect
to defer the issuance or delivery of Shares or the settlement of
Awards in cash under the Plan pursuant to such rules, procedures or
programs as it may establish for purposes of the Plan. The
Committee also may provide that deferred issuances and settlements
include the payment or crediting of dividend equivalents or
interest on the deferral amounts. All elections and deferrals
permitted under this provision shall comply with Section 409A of
the Code, including setting forth the time and manner of the
election (including a compliant time and form of payment), the date
on which the election is irrevocable, and whether the election can
be changed until the date it is irrevocable.
b. No
Right of Continued Employment. The Plan shall not confer
upon any Participant any right with respect to continuance of
employment or other service with the Company or any Subsidiary, nor
shall it interfere in any way with any right the Company or any
Subsidiary would otherwise have to terminate such
Participant’s employment or other service at any time. No
Employee, Consultant or Director shall have the right to be
selected to receive an Award under the Plan, or, having been so
selected, to be selected to receive future Awards.
c. Unfunded,
Unsecured Plan. Neither a Participant nor any other person
shall, by reason of participation in the Plan, acquire any right or
title to any assets, funds or property of the Company or any
Subsidiary, including without limitation, any specific funds,
assets or other property which the Company or any Subsidiary may
set aside in anticipation of any liability under the Plan. A
Participant shall have only a contractual right to an Award or the
amounts, if any, payable under the Plan, unsecured by any assets of
the Company or any Subsidiary, and nothing contained in the Plan
shall constitute a guarantee that the assets of the Company or any
Subsidiary shall be sufficient to pay any benefits to any
person.
d. Severability.
If any provision of the Plan is or becomes invalid, illegal or
unenforceable in any jurisdiction, or would disqualify the Plan or
any Award under any law deemed applicable by the Committee, such
provision shall be construed or deemed amended or limited in scope
to conform to Applicable Laws or, in the discretion of the
Committee, it shall be stricken and the remainder of the Plan shall
remain in full force and effect.
e. Acceptance
of Plan. By accepting any benefit under the Plan, each
Participant and each person claiming under or through any such
Participant shall be conclusively deemed to have indicated their
acceptance and ratification of, and consent to, all of the terms
and conditions of the Plan and any action taken under the Plan by
the Committee, the Board or the Company, in any case in accordance
with the terms and conditions of the Plan.
Successors. All obligations of the Company under the Plan
and with respect to Awards shall be binding on any successor to the
Company, whether the existence of such successor is the result of a
direct or indirect purchase, merger, consolidation, or other event,
or a sale or disposition of all or substantially all of the
business and/or assets of the Company and references to the
“Company” herein and in any Award Agreements shall be
deemed to refer to such successors.
16
Exhibit 99.1
Palatin Technologies Announces Adjournment of
Annual Meeting of Stockholders
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●
Limited to Proposal 4,
Amendment to Certificate of Incorporation to Increase Authorized
Common Stock
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●
Proposals 1, 2, 3 and 5
were approved at the Annual Meeting
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●
Scheduled to Reconvene July
23, 2020, 9:00 am Eastern Daylight Time
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CRANBURY, NJ
– June 29, 2020 – Palatin Technologies, Inc.
(“Palatin”) (NYSE American: PTN) announced that its
2020 Annual Meeting of Stockholders that convened on June 25, 2020
has been adjourned until July 23, 2020 at 9:00 a.m. Eastern
Daylight Time to solicit additional proxies for Proposal 4,
approval of an amendment to our Certificate of Incorporation to
effect an increase in authorized common stock from 300,000,000
shares to 500,000,000 shares. The adjourned meeting will be a
completely “virtual” meeting of stockholders, and
stockholders will be able to listen and participate in the virtual
annual meeting as well as vote and submit your questions during the
live webcast of the meeting by visiting
http://www.virtualshareholdermeeting.com/PTN2020
and entering the 16‐digit control number included in your
Notice Regarding the Availability of Proxy Materials, on your proxy
card or in the instructions that accompanied your proxy
materials.
The
Board of Directors believes approval of Proposal 4 is in the best
interests of Palatin and its stockholders because even though
Palatin has sufficient operating cash for at least two years and
does not have any current plans to offer any additional stock in
the foreseeable future, an increase provides future flexibility and
the necessary resources Palatin requires to take advantage of any
strategic opportunities that could result in an increase in
stockholder value. Proposal 4 is described in more detail in
Palatin’s proxy statement dated May 11, 2020, furnished to
stockholders in connection with the 2020 Annual
Meeting.
We have seen significant stockholder support for
Proposal 4. At the time of the meeting, approximately 58% of the
shares that had been voted on Proposal 4 were voted in its favor.
However, the favorable votes were less than the absolute majority
of all outstanding shares, which is required for approval
of this proposal. Proposals 1, 2, 3
and 5 were approved at the Annual Meeting.
-More-
Palatin
encourages any stockholder that has not yet voted its shares on
Proposal 4 or is uncertain if their shares have been voted on
Proposal 4 to contact their broker or bank. The Board of Directors
and management respectfully requests stockholders as of the record
date, April 29, 2020, to please vote their proxies as soon as
possible, but no later than July 22, 2020 at 11:59 p.m. (Eastern
Time). Stockholders who have previously submitted their proxy or
otherwise voted for the annual meeting and who do not want to
change their vote need not take any action. For questions relating
to the voting of shares or to request additional or misplaced proxy
voting materials, please contact Palatin’s proxy advisory
group at melissacarlson@allianceadvisors.com.
As
described in the proxy statement, a stockholder may use one of the
following simple methods to vote before the July 23, 2020 adjourned
meeting with respect to Proposal 4:
●
By Internet – www.proxyvote.com.
If you have Internet access, you may transmit your voting
instructions up until 11:59 p.m., Eastern Daylight Time, the day
before the adjourned meeting date, that is, July 22, 2020. Go to
www.proxyvote.com. You must have your proxy card or Notice in hand
when you access the web site and follow the instructions to obtain
your records and to create an electronic voting instruction
form.
●
By telephone – 1-800-690-6903. You
may vote using any touch-tone telephone to transmit your voting
instructions up until 11:59 p.m., Eastern Daylight Time, the day
before the meeting date, that is, July 22, 2020. Call
1-800-690-6903 toll free. You must have your proxy card or Notice
in hand when you call this number and then follow the
instructions.
●
By mail – Mark, sign and date your
proxy card and return it in the postage-paid envelope we have
provided. If you did not receive a proxy copy, you may request
proxy materials, including a proxy card, by following the
instructions in the Notice.
Votes
must be received by 11:59 P.M. Eastern Daylight Time on July 22,
2020 to be counted. After this time, the only way to cast a vote is
at the adjourned Annual Meeting on July 23, 2020, 9:00 a.m. Eastern
Daylight Time at
http://www.virtualshareholdermeeting.com/PTN2020.
About Palatin Technologies, Inc.
Palatin
Technologies, Inc. is a specialized biopharmaceutical company
developing first-in-class medicines based on molecules that
modulate the activity of the melanocortin and natriuretic peptide
receptor systems, with targeted, receptor-specific product
candidates for the treatment of diseases with significant unmet
medical need and commercial potential. Palatin’s strategy is
to develop products and then form marketing collaborations with
industry leaders in order to maximize their commercial potential.
For additional information regarding Palatin, please visit
Palatin’s website at www.Palatin.com.
-More-
Forward-looking Statements
Statements
in this press release that are not historical facts, including
statements about future expectations of Palatin Technologies, Inc.,
such as statements about the need to for stockholders to approve
Proposal 4, are “forward-looking statements” within the
meaning of Section 27A of the Securities Act of 1933, Section 21E
of the Securities Exchange Act of 1934 and as that term is defined
in the Private Securities Litigation Reform Act of 1995. Palatin
intends that such forward-looking statements be subject to the safe
harbors created thereby. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors that could
cause Palatin’s actual results to be materially different
from its historical results or from any results expressed or
implied by such forward-looking statements. Palatin’s actual
results may differ materially from those discussed in the
forward-looking statements for reasons including, but not limited
to, sales of Vyleesi in the United States and elsewhere in the
world, results of clinical trials, regulatory actions by the FDA
and other regulatory and the need for regulatory approvals,
Palatin’s ability to fund development of its technology and
establish and successfully complete clinical trials, the length
of time
and cost required to complete clinical trials and submit
applications for regulatory approvals, products developed by
competing pharmaceutical, biopharmaceutical and biotechnology
companies, commercial acceptance of Palatin’s products, and
other factors discussed in Palatin’s periodic filings with
the Securities and Exchange Commission. Palatin is not responsible
for updating for events that occur after the date of this press
release.
Important Information
In
connection with the solicitation of proxies, on May 11, 2020,
Palatin filed a definitive proxy statement with the Securities and
Exchange Commission (“SEC”) in connection with
Palatin’s 2020 Annual Meeting. STOCKHOLDERS ARE STRONGLY
ADVISED TO READ THE DEFINITIVE PROXY MATERIALS AND ANY OTHER
RELEVANT SOLICITATION MATERIALS FILED BY PALATIN TECHNOLOGIES, INC.
WITH THE SEC BEFORE MAKING ANY VOTING OR INVESTMENT DECISION
BECAUSE THESE DOCUMENTS CONTAIN IMPORTANT INFORMATION.
Palatin’s proxy statement and any other materials filed by
Palatin with the SEC can be obtained free of charge at the
SEC’s web site at www.sec.gov. Palatin’s proxy
statement, notice of annual meeting, and annual report to
shareholders are available free of charge on Palatin’s
website at www.palatin.com. The contents of the websites referenced
above are not deemed to be incorporated by reference into the proxy
statement.
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Investor Inquiries:
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Media Inquiries:
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Stephen T. Wills, CPA, MST
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Paul
Arndt, MBA, LifeSci Advisors
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CFO/COO (609) 495-2200
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Managing
Director (646) 597-6992
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Info@Palatin.com
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Paul@LifeSciAdvisors.com
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