As filed with the Securities and Exchange Commission on October 10, 2019
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-8
REGISTRATION STATEMENT
Under
The Securities Act of 1933
ELASTIC N.V.
(Exact name of Registrant as specified in its charter)
The Netherlands | Not Applicable | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan
(Full title of the plan)
Elastic N.V.
800 West El Camino Real, Suite 350
Mountain View, California 94040
(650) 458-2620
(Address of principal executive offices, including zip code)
Shay Banon
Chief Executive Officer and Chairman
Elastic N.V
800 West El Camino Real, Suite 350
Mountain View, California 94040
(650) 458-2620
(Name, address and telephone number, including area code, of agent for service)
Copies to:
Steven E. Bochner, Esq. Steven V. Bernard, Esq. Andrew D. Hoffman, Esq. Wilson Sonsini Goodrich & Rosati Professional Corporation 650 Page Mill Road Palo Alto, CA 94304 (650) 493-9300 |
W.H. Baird Garrett, Esq. Elastic N.V. 800 West El Camino Real, Suite 350 Mountain View, California 94040 (650) 458-2620 |
Reinier Kleinpool De Brauw Blackstone Westbroek N.V. Claude Debussylaan 80 1082 MD Amsterdam The Netherlands +31 20 577 1771 |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of large accelerated filer, accelerated filer, smaller reporting company, and emerging growth company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||
Emerging growth company | ☒ |
If an emerging growth company, indicate by check mark 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 7(a)(2)(B) of the Securities Act. ☒
CALCULATION OF REGISTRATION FEE
|
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Title of Each Class of Securities to be Registered (1) |
Amount to be Registered (1) |
Proposed Maximum Offering Price Per Share |
Proposed Maximum Aggregate Offering Price |
Amount of Registration Fee |
||||
Ordinary shares, par value 0.01 per share, issuable in respect of assumed Endgame, Inc. common stock pursuant to the Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan, as amended (the Plan) |
245,390(2) | $49.00(3) | $12,024,110.00(3) | $1,560.73(3) | ||||
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(1) |
This Registration Statement on Form S-8 (the Registration Statement) registers the issuance of the ordinary shares of Elastic N.V. (the Registrant), par value 0.01 per share, (the Ordinary Shares) subject to stock options assumed by the Registrant as a result of the consummation on October 8, 2019, of the transaction contemplated by the Agreement and Plan of Reorganization, dated as of June 5, 2019, by and among the Registrant, Avengers Acquisition Corp., a wholly owned subsidiary of the Registrant, Endgame, Inc. and Shareholder Representative Services LLC. |
(2) |
Pursuant to Rule 416(a) of the Securities Act of 1933, as amended (the Securities Act), this Registration Statement shall also cover any additional Ordinary Shares that become issuable under the Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan, as amended, by reason of any stock dividend, stock split, recapitalization or other similar transaction effected without the Registrants receipt of consideration which results in an increase in the number of the outstanding Ordinary Shares. |
(3) |
Estimated in accordance with Rule 457 (h) of the Securities Act solely for the purpose of calculating the registration fee on the basis of $49.00 per share, which is the weighted average exercise price per share of the outstanding options under the Plan. |
ELASTIC N.V.
REGISTRATION STATEMENT ON FORM S-8
This Registration Statement on Form S-8 (the Registration Statement) is being filed by the Elastic N.V. (the Registrant or the Company) to register 245,390 shares of the Registrants ordinary shares, par value 0.01 per share, (the Ordinary Shares) subject to stock options under the Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan, as amended. Pursuant to the Agreement and Plan of Reorganization, dated as of June 5, 2019, by and among the Registrant, Avengers Acquisition Corp., a wholly owned subsidiary of the Registrant (Merger Sub), Endgame, Inc. (Endgame) and Shareholder Representative Services LLC (the Merger Agreement), Merger Sub merged with and into Endgame, with Endgame surviving as a wholly owned subsidiary of the Registrant. In accordance with the Merger Agreement, certain options to purchase Endgame common stock were assumed by the Registrant, and were converted into options to purchase the Registrants Ordinary Shares.
PART I
INFORMATION REQUIRED IN THE PROSPECTUS
The information specified in Item 1 and Item 2 of Part I of Form S-8 is omitted from this Registration Statement in accordance with the provisions of Rule 428 under the Securities Act of 1933, as amended (the Securities Act) and the introductory note to Part I of Form S-8. The documents containing the information specified in Part I of Form S-8 will be delivered to the participants in the equity benefit plans covered by this Registration Statement as specified by Rule 428(b)(1) under the Securities Act.
PART II
INFORMATION REQUIRED IN REGISTRATION STATEMENT
Item 3. |
Incorporation of Documents by Reference. |
The Registrant hereby incorporates by reference into this Registration Statement the following documents previously filed with the Securities and Exchange Commission (the Commission):
(1) The Registrants Annual Report on Form 10-K for the fiscal year ended April 30, 2019, filed with the Commission on June 28, 2019;
(2) All other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act of 1934, as amended (the Exchange Act) since the end of the fiscal year covered by the Registrants Annual Report referred to in (a) above (other than the portions of these documents not deemed to be filed); and
(3) The description of the Registrants Ordinary Shares contained in the Companys Registration Statement on Form 8-A (File No. 001-38675) filed with the Commission on September 24, 2018, pursuant to Section 12(b) of the Exchange Act, including any amendment or report filed for the purpose of updating such description.
All documents filed by the Registrant pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act on or after the date of this Registration Statement and prior to the filing of a post-effective amendment to this Registration Statement that indicates that all securities offered have been sold or that deregisters all securities then remaining unsold shall be deemed to be incorporated by reference in this Registration Statement and to be part hereof from the date of filing of such documents; provided, however, that documents or information deemed to have been furnished and not filed in accordance with the rules of the Commission shall not be deemed incorporated by reference into this Registration Statement. Any statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any subsequently filed document which also is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Registration Statement.
Item 4. |
Description of Securities |
Not applicable.
Item 5. |
Interests of Named Experts and Counsel. |
Not applicable.
Item 6. |
Indemnification of Directors and Officers. |
The Registrants executive officers who are not also a director have entered into indemnification agreements with the Registrant. The agreements provide, to the fullest extent permitted by the Registrants articles of association and the law of The Netherlands, that the Registrant will indemnify the executive officers who are not also a director against any and all liabilities, claims, judgments, fines, penalties, interest and expenses, including attorneys fees, incurred in connection with any expected, threatened, pending or completed action, investigation or other proceeding, whether civil, criminal or administrative, involving an executive officer by reason of his position as officer.
The articles of association provide that the Registrant will indemnify current and former directors against:
(i) |
the reasonable costs of conducting a defense against claims resulting from an act or omission in performing their duties or in performing other duties the company has asked them to fulfil; |
(ii) |
any compensation or financial penalties they owe as a result of an act or omission as referred to under (i) above; |
(iii) |
any amounts they owe under settlements they have reasonably entered into in connection with an act or omission as referred to under (i) above; |
(iv) |
the reasonable costs of other proceedings in which they are involved as a current or former director, except for proceedings in which they are primarily asserting their own claims; and |
(v) |
tax damage due to reimbursements in accordance with the above, to the extent this relates to the indemnified persons current or former position with the Registrant and/or a group company and in each case to the extent permitted by applicable law. |
No indemnification shall be given to an indemnified person insofar as:
(i) |
it has been established in a final and non-appealable decision of the competent court or, in the event of arbitration, of an arbitrator, that the act or omission of the indemnified person can be described as deliberate (opzettelijk), willfully reckless (bewust roekeloos) or seriously culpable. In that case, the indemnified person must immediately repay the sums reimbursed by the company, unless Dutch law provides otherwise or this would, in the given circumstances, be unacceptable according to standards of reasonableness and fairness; or |
(ii) |
the costs or the capital losses of the indemnified person are covered by an insurance policy and the insurer has paid out these costs or capital losses; or |
(iii) |
the indemnified person failed to notify the company as soon as possible of the costs or the capital losses or of the circumstances that could lead to the costs or capital losses. |
These indemnification provisions and the indemnification agreements entered into between the Registrant and its officers and directors may be sufficiently broad to permit indemnification of the Registrants officers and directors for liabilities (including reimbursement of expenses incurred) arising under the Securities Act of 1933.
Item 7. |
Exemption from Registration Claimed. |
Not applicable.
Item 8. |
Exhibits. |
(1) |
Incorporated by reference to Exhibit 3.1 filed with the Registrants Quarterly Report on Form 10-Q (File No. 001-38678), filed with the Commission on December 12, 2018. |
Item. 9 |
Undertakings. |
A. |
The undersigned Registrant hereby undertakes: |
(1) |
To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement: |
(i) |
To include any prospectus required by Section 10(a)(3) of the Securities Act; |
(ii) |
To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the Calculation of Registration Fee table in the effective Registration Statement; and |
(iii) |
To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement. |
Provided, however, that paragraphs (A)(1)(i) and (A)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the Registrant pursuant to Section 13 or Section 15(d) of the Exchange Act that are incorporated by reference in this Registration Statement.
(2) |
For the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
(3) |
It will remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. |
B. |
The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrants annual report pursuant to Section 13(a) or Section 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plans annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the Registration Statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. |
C. |
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. |
Pursuant to the requirements of the Securities Act of 1933, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Mountain View, California, on October 10, 2019.
ELASTIC N.V. | ||
By: |
/s/ Shay Banon |
|
Name: | Shay Banon | |
Title: | Chief Executive Officer and Chairman |
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Shay Banon, Janesh Moorjani and W.H. Baird Garrett, and each of them, as his true and lawful attorney-in-fact and agent with full power of substitution, for him in any and all capacities, to sign any and all amendments to this Registration Statement (including post-effective amendments), and to file the same, with all exhibits thereto and other documents in connection therewith, with the Commission, granting unto said attorney-in-fact, proxy and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully for all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact, proxy and agent, or his substitute, may lawfully do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement on Form S-8 has been signed by the following persons in the capacities and on the dates indicated.
Signature |
Title |
Date |
||
/s/ Shay Banon Shay Banon |
Chief Executive Officer and Chairman (Principal Executive Officer) |
October 10, 2019 | ||
/s/ Janesh Moorjani Janesh Moorjani |
Chief Financial Officer (Principal Financial and Accounting Officer) |
October 10, 2019 | ||
/s/ Jonathan Chadwick Jonathan Chadwick |
Director | October 10, 2019 | ||
/s/ Peter Fenton Peter Fenton |
Director | October 10, 2019 | ||
/s/ Caryn Marooney Caryn Marooney |
Director | October 10, 2019 | ||
/s/ Chetan Puttagunta Chetan Puttagunta |
Director | October 10, 2019 | ||
/s/ Steven Schuurman Steven Schuurman |
Director | October 10, 2019 | ||
/s/ Michelangelo Volpi Michelangelo Volpi |
Director | October 10, 2019 |
AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the undersigned as the duly authorized representative in the United States of the Registrant in Mountain View, California, on October 10, 2019.
ELASTICSEARCH, INC. | ||
By: |
/s/ Janesh Moorjani |
|
Name: | Janesh Moorjani | |
Title: | President, Secretary and Treasurer |
Exhibit 4.2
ENDGAME SYSTEMS, INC.
AMENDED AND RESTATED 2010 STOCK INCENTIVE PLAN
1. Establishment, Purpose and Types of Awards
Endgame Systems, Inc., a Delaware corporation (the Company), hereby establishes the Endgame Systems, Inc. Amended and Restated 2010 Stock Incentive Plan (the Plan). The purpose of the Plan is to promote the long-term growth and profitability of the Company by (i) providing key people with incentives to improve stockholder value and to contribute to the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best-available persons. This Plan is a continuation, and amendment and restatement, of the Companys 2010 Stock Incentive Plan.
The Plan permits the granting of stock options (including incentive stock options qualifying under Code section 422 and nonstatutory stock options), stock appreciation rights, or other stock-based awards, or any combination of the foregoing.
2. Definitions
Under this Plan, except where the context otherwise indicates, the following definitions apply:
(a) Administrator means the Board or the committee(s) or officer(s) appointed by the Board that have authority to administer the Plan as provided in Section 3 hereof.
(b) Affiliate means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, the Company (including, but not limited to, joint ventures, limited liability companies, and partnerships). For this purpose, control shall mean ownership of 50% or more of the total combined voting power or value of all classes of stock or interests of the entity, or has the power to direct the management and policies of the entity, by contract or otherwise.
(c) Award means any stock option, stock appreciation right, or other stock award.
(d) Board means the Board of Directors of the Company.
(e) Cause has the meaning ascribed to such term or words of similar import in the relevant individuals written restricted stock agreement or employment or service contract with the Company as in effect at the time at issue and, in the absence of such agreement or definition, means the (i) conviction of, or plea of nolo contendere to, a felony or crime involving moral turpitude; (ii) fraud on or misappropriation of any funds or property of the Company, any affiliate, customer or vendor; (iii) personal dishonesty, incompetence, willful misconduct, willful violation of any law, rule or regulation (other than minor traffic violations or similar offenses) or breach of fiduciary duty which involves personal profit; (iv) willful misconduct in connection with an individuals duties or willful failure to perform such individuals responsibilities in the best interests of the Company; (v) illegal use or distribution of drugs; (vi) violation of any Company rule, regulation, procedure or policy; or (vii) breach of any provision of any employment, non-disclosure, non-competition, non-solicitation or other similar agreement executed by an individual for the benefit of the Company, all as determined by the Administrator, which determination will be conclusive.
-1-
(f) Change in Control means: (i) the acquisition (other than from the Company) in one or more transactions by any Person, as defined in this Section 2(f), of the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of 50% or more of (A) the then outstanding shares of the securities of the Company, or (B) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the Company Voting Stock); (ii) the closing of a sale or other conveyance of all or substantially all of the assets of the Company; or (iii) the effective time of any merger, share exchange, consolidation, or other business combination involving the Company if immediately after such transaction persons who hold a majority of the outstanding voting securities entitled to vote generally in the election of directors of the surviving entity (or the entity owning 100% of such surviving entity) are not persons who, immediately prior to such transaction, held the Company Voting Stock; provided, however, that a Change in Control shall not include any transaction primarily for equity financing purposes or a public offering of capital stock of the Company; and provided, further, that for purposes of any Award or subplan that constitutes a nonqualified deferred compensation plan, within the meaning of Code section 409A, the Administrator, in its discretion, may specify a different definition of Change in Control in order to comply with the provisions of Code section 409A. For purposes of this Section 2(f), a Person means any individual, entity or group within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended, other than: employee benefit plans sponsored or maintained by the Company and by entities controlled by the Company or an underwriter of the Common Stock in a registered public offering.
(g) Code means the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder.
(h) Common Stock means shares of the common stock of the Company, par value of $0.001 per share.
(i) Fair Market Value means, with respect to a share of the Companys Common Stock for any purpose on a particular date, the value determined by the Administrator in good faith. However, if the Common Stock is registered under Section 12(b) or 12(g) of the Securities Exchange Act of 1934, as amended, and listed for trading on a national exchange or market, Fair Market Value means, as applicable, (i) the closing price quoted on the New York Stock Exchange, the American Stock Exchange, the Nasdaq Global Select Market, or the Nasdaq Global Market; (ii) the last sale price on the relevant date quoted on the Nasdaq Capital Market; (iii) the average of the high bid and low asked prices on the relevant date quoted on the Nasdaq OTC Bulletin Board Service or by the National Quotation Bureau, Inc. or a comparable service as determined in the Administrators discretion; or (iv) if the Common Stock is not quoted by any of the above, the average of the closing bid and asked prices on the relevant date furnished by a professional market maker for the Common Stock, or by such other source, selected by the Administrator. If no public trading of the Common Stock occurs
on the relevant date but the shares are so listed, then Fair Market Value shall be determined as of the next preceding date on which trading of the Common Stock did occur. For all purposes under this Plan, the term relevant date as used in this Section 2(i) means either the date as of which Fair Market Value is to be determined or the next preceding date on which public trading of the Common Stock occurs, as determined in the Administrators discretion.
(j) Grant Agreement means a written document, including an electronic writing acceptable to the Administrator, memorializing the terms and conditions of an Award granted pursuant to the Plan and which shall incorporate the terms of the Plan.
3. Administration
(a) Administration of the Plan. The Plan shall be administered by the Board or by such committee or committees as may be appointed by the Board from time to time. To the extent allowed by applicable state law, the Board by resolution may authorize an officer or officers to grant Awards (other than stock Awards) to any person eligible to participate in the Plan, and, to the extent of such authorization, such officer or officers shall be the Administrator.
(b) Powers of the Administrator. The Administrator shall have all the powers vested in it by the terms of the Plan, such powers to include authority, in its sole and absolute discretion, to grant Awards under the Plan, prescribe Grant Agreements evidencing such Awards and establish programs for granting Awards.
The Administrator shall have full power and authority to take all other actions necessary to carry out the purpose and intent of the Plan, including, but not limited to, the authority to: (i) determine the eligible persons to whom, and the time or times at which Awards shall be granted; (ii) determine the types of Awards to be granted; (iii) determine the number of shares to be covered by or used for reference purposes for each Award; (iv) impose such terms, limitations, restrictions and conditions upon any such Award as the Administrator shall deem appropriate; (v) modify, amend, extend or renew outstanding Awards, or accept the surrender of outstanding Awards and substitute new Awards; provided, however, that, except as otherwise permitted under Section 7(d) of the Plan, any modification, amendment, extension, renewal or substitution that would materially adversely affect any outstanding Award shall not be made without the consent of the holder, but if any of the foregoing actions results in a change in the tax consequences with respect to an Award such change shall not be considered to be a material adverse affect on the Award; (vi) accelerate or otherwise change the time in which an Award may be exercised or becomes payable and to waive or accelerate the lapse, in whole or in part, of any restriction or condition with respect to such Award, including, but not limited to, any restriction or condition with respect to the vesting or exercisability of an Award following termination of any grantees employment or other relationship with the Company; (vii) establish objectives and conditions, if any, for earning Awards and determining whether Awards will be paid with respect to a performance period; and (viii) for any purpose, including but not limited to, qualifying for preferred tax treatment under foreign tax laws or otherwise complying with the regulatory requirements of local or foreign jurisdictions, to establish, amend, modify, administer or terminate sub-plans, and prescribe, amend and rescind rules and regulations relating to such sub-plans.
The Administrator shall have full power and authority, in its sole and absolute discretion, to administer, construe and interpret the Plan, Grant Agreements and all other documents relevant to the Plan and Awards issued thereunder, to establish, amend, rescind and interpret such rules, regulations, agreements, guidelines and instruments for the administration of the Plan and for the conduct of its business as the Administrator deems necessary or advisable, and to correct any defect, supply any omission or reconcile any inconsistency in the Plan or in any Award in the manner and to the extent the Administrator shall deem it desirable to carry it into effect.
(c) Non-Uniform Determinations. The Administrators determinations under the Plan (including without limitation, determinations of the persons to receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the Grant Agreements evidencing such Awards) need not be uniform and may be made by the Administrator selectively among persons who receive, or are eligible to receive, Awards under the Plan, whether or not such persons are similarly situated.
(d) Limited Liability. To the maximum extent permitted by law, no member of the Administrator shall be liable for any action taken or decision made in good faith relating to the Plan or any Award thereunder.
(e) Indemnification. To the maximum extent permitted by law and by the Companys charter and by-laws, the members of the Administrator shall be indemnified by the Company in respect of all their activities under the Plan.
(f) Effect of Administrators Decision. All actions taken and decisions and determinations made by the Administrator on all matters relating to the Plan pursuant to the powers vested in it hereunder shall be in the Administrators sole and absolute discretion and shall be conclusive and binding on all parties concerned, including the Company, its stockholders, any participants in the Plan and any other employee, consultant, or director of the Company, and their respective successors in interest.
4. Shares Available for the Plan
(a) Share Reserve. Subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of 6,065,882 shares of Common Stock. The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall thereafter be available for further Awards under the Plan; provided, however, that any such shares that are surrendered to or repurchased or withheld by the Company in connection with any Award or that are otherwise forfeited after issuance shall not be available for purchase pursuant to incentive stock options intended to qualify under Code section 422.
(b) Incentive Stock Option Limit. Notwithstanding anything to the contrary in this Section 4 and subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock that may be issued pursuant to the exercise of incentive stock options intended to qualify under Code section 422 shall not exceed an aggregate of 6,065,882 shares of Common Stock.
5. Participation
Participation in the Plan shall be open to all employees, officers, and directors of, and other individuals (including consultants and advisors) providing bona fide services to or for, the Company, or to any Affiliate of the Company, as may be selected by the Administrator from time to time; provided, however, that nonstatutory stock options and SARs (as defined in Section 6(b) of the Plan) may not be granted to employees, officers, directors, and other individuals (including consultants and advisors) who are providing services only to any parent of the Company, as such term is defined in Rule 405 promulgated under the Securities Act of 1933, as amended, unless the stock underlying such Award is treated as service recipient stock under Code section 409A because the Awards are granted pursuant to a corporate transaction (such as a spin off transaction) or unless such Awards comply with the distribution requirements of Code section 409A.
6. Awards
The Administrator, in its sole discretion, establishes the terms of all Awards granted under the Plan. Awards may be granted individually or in tandem with other types of Awards, concurrently with or with respect to outstanding Awards. All Awards are subject to the terms and conditions provided in the Grant Agreement. The Administrator may permit or require a recipient of an Award to defer such individuals receipt of the payment of cash or the delivery of Common Stock that would otherwise be due to such individual by virtue of the issuance of, exercise of, payment of, or lapse or waiver of restrictions respecting, any Award. If any such payment deferral is required or permitted, the Administrator shall, in its sole discretion, establish rules and procedures for such payment deferrals, subject to the provisions of Code section 409A.
(a) Stock Options. The Administrator may from time to time grant to eligible participants Awards of incentive stock options as that term is defined in Code section 422 or nonstatutory stock options; provided, however, that Awards of incentive stock options shall be limited to employees of the Company or of any current or hereafter existing parent corporation or subsidiary corporation, as defined in Code sections 424(e) and (f), respectively, of the Company and any other individuals who are eligible to receive incentive stock options under the provisions of Code section 422. Options intended to qualify as incentive stock options under Code section 422 must have an exercise price at least equal to Fair Market Value as of the date of grant, but nonstatutory stock options may be granted with an exercise price less than Fair Market Value (subject to the provisions of Code section 409A). No stock option shall be an incentive stock option unless so designated by the Administrator at the time of grant or in the Grant Agreement evidencing such stock option.
(b) Stock Appreciation Rights. The Administrator may from time to time grant to eligible participants Awards of Stock Appreciation Rights (SAR). A SAR entitles the grantee to receive, subject to the provisions of the Plan and the Grant Agreement, a payment having an aggregate value equal to the product of (i) the excess of (A) the Fair Market Value on the exercise date of one share of Common Stock over (B) the base price per share specified in the Grant Agreement, times (ii) the number of shares specified by the SAR, or portion thereof, which is exercised. The base price per share specified in the Grant Agreement shall not be less than the lower of the Fair Market Value on the grant date or the exercise price of any tandem stock option Award to which the SAR is related. No SAR shall have a term longer than 10 years duration. Payment by the Company of the amount receivable upon any exercise of a SAR may be made by the delivery of Common Stock or cash, or any combination of Common Stock and cash, as determined in the sole discretion of the Administrator. If upon settlement of the exercise of a SAR a grantee is to receive a portion of such payment in shares of Common Stock, the number of shares shall be determined by dividing such portion by the Fair Market Value of a share of Common Stock on the exercise date. No fractional shares shall be used for such payment and the Administrator shall determine whether cash shall be given in lieu of such fractional shares or whether such fractional shares shall be eliminated.
(c) Stock Awards. The Administrator may from time to time grant stock Awards to eligible participants in such amounts, on such terms and conditions, and for such consideration, including no consideration or such minimum consideration as may be required by law, as it shall determine. A stock Award may be denominated in Common Stock or other securities, stock-equivalent units, securities or debentures convertible into Common Stock, or any combination of the foregoing and may be paid in Common Stock or other securities, in cash, or in a combination of Common Stock or other securities and cash, all as determined in the sole discretion of the Administrator.
7. Miscellaneous
(a) Withholding of Taxes. Grantees and holders of Awards shall pay to the Company or its Affiliate, or make provision satisfactory to the Administrator for payment of, any taxes required to be withheld in respect of Awards under the Plan no later than the date of the event creating the tax liability. The Company or its Affiliate may, in its sole discretion and to the extent permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to the grantee or holder of an Award, including, but not limited to, withholding shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the grantee or holder of such Award in connection with the Award. In the event that payment to the Company or its Affiliate of such tax obligations is made in shares of Common Stock, such shares shall be valued at Fair Market Value on the applicable date for such purposes and shall not exceed in amount the minimum statutory tax withholding obligation.
(b) Loans. To the extent otherwise permitted by law, the Company or its Affiliate may make or guarantee loans to grantees to assist grantees in exercising Awards and satisfying any withholding tax obligations.
(c) Transferability. Except as otherwise determined by the Administrator, and in any event in the case of an incentive stock option or a stock appreciation right granted with respect to an incentive stock option, no Award granted under the Plan shall be transferable by a grantee otherwise than by will or the laws of descent and distribution. Unless otherwise determined by the Administrator in accord with the provisions of the immediately preceding sentence, an Award may be exercised during the lifetime of the grantee, only by the grantee or, during the period the grantee is under a legal disability, by the grantees guardian or legal representative.
(d) Adjustments for Corporate Transactions and Other Events.
(i) |
Stock Dividend, Stock Split and Reverse Stock Split. In the event of a stock dividend of, or stock split or reverse stock split affecting, the Common Stock, (A) the maximum number of shares of such Common Stock as to which Awards may be granted under this Plan, as provided in Section 4 of the Plan, and (B) the number of shares covered by and the exercise price and other terms of outstanding Awards, shall, without further action of the Board, be adjusted to reflect such event unless the Board determines, at the time it approves such stock dividend, stock split or reverse stock split, that no such adjustment shall be made. The Administrator may make adjustments, in its discretion, to address the treatment of fractional shares and fractional cents that arise with respect to outstanding Awards as a result of the stock dividend, stock split or reverse stock split. |
(ii) |
Non-Change in Control Transactions. Except with respect to the transactions set forth in Section 7(d)(i), in the event of any change affecting the Common Stock, the Company or its capitalization, by reason of a spin-off, split-up, dividend, recapitalization, merger, consolidation or share exchange, other than any such change that is part of a transaction resulting in a Change in Control of the Company, the Administrator, in its discretion and without the consent of the holders of the Awards, may make (A) appropriate adjustments to the maximum number and kind of shares reserved for issuance or with respect to which Awards may be granted under the Plan, as provided in Section 4 of the Plan; and (B) any adjustments in outstanding Awards, including but not limited to modifying the number, kind and price of securities subject to Awards. |
(iii) |
Change in Control Transactions. In the event of any transaction resulting in a Change in Control of the Company, the Administrator, in its sole discretion, may take any or all of the following actions to be effective as of the date of the Change in Control (or as of some other date prior to the Change in Control, but contingent upon the consummation of the Change in Control): |
(A) accelerate (in part or in whole) the vesting and/or exercisability of such option or other Award;
(B) unilaterally cancel such option in exchange for whole and/or fractional shares of Common Stock (or for whole shares and cash in lieu of any fractional share) that, in the aggregate, are equal in value to the excess of the Fair Market Value of the shares of Common Stock that could be purchased subject to such option determined as of the effective time of the Change in Control (not taking into account vesting and/or exercisability) over the aggregate exercise price for such shares of Common Stock;
(C) unilaterally cancel such option in exchange for cash or other property equal in value to the excess of the Fair Market Value of the shares of Common Stock that could be purchased subject to such option determined as of the effective time of the Change in Control (not taking into account vesting and/or exercisability) over the aggregate exercise price for such shares of Common Stock. For purposes of clarity, this payment may be zero ($0) if the value of the property is equal to or less than the exercise price. Payments under this provision may be delayed to the same extent that payment of consideration to the holders of the Common Stock in connection with the Change in Control is delayed as a result of escrows, earn outs, holdbacks, or any other contingencies;
(D) unilaterally cancel such option after providing the holder of such option with (y) an opportunity to exercise such option within a specified period prior to the effective time of the Change in Control, and (z) notice of such opportunity to exercise prior to the commencement of such specified period;
(E) unilaterally cancel such option and notify the holder of such option of such action, but only if the Fair Market Value of the shares of Common Stock that could be purchased subject to such option determined as of the effective time of the Change in Control (not taking into account vesting and/or exercisability) does not exceed the aggregate exercise price for such shares; and/or
(F) unilaterally cancel any such option which has not vested and/or which has not become exercisable as of the effective time of the Change in Control.
The Administrator need not take the same action with respect to all Awards or with respect to all holders of such Awards. The Administrator may take different actions with respect to the vested and unvested portions of an Award.
(iv) |
Unusual or Nonrecurring Events. The Administrator is authorized to make, in its discretion and without the consent of holders of Awards, adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events affecting the Company, or the financial statements of the Company or any Affiliate, or of changes in applicable laws, regulations, or accounting principles, whenever the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. |
(e) Substitution of Awards in Mergers and Acquisitions. Awards may be granted under the Plan from time to time in substitution for awards held by employees, officers, consultants or directors of entities who become or are about to become employees, officers, consultants or directors of the Company or an Affiliate as the result of a merger or consolidation of the employing entity with the Company or an Affiliate, or the acquisition by the Company or an Affiliate of the assets or stock of the employing entity. The terms and conditions of any substitute Awards so granted may vary from the terms and conditions set forth herein to the extent that the Administrator deems appropriate at the time of grant to conform the substitute Awards to the provisions of the awards for which they are substituted.
(f) Other Agreements. As a condition precedent to the grant of any Award under the Plan, the exercise pursuant to such an Award, or to the delivery of certificates for shares issued pursuant to any Award, the Administrator may require the grantee or the grantees successor or permitted transferee, as the case may be, to become a party to a stock restriction agreement, shareholders agreement, voting agreement, right of first refusal and co-sale agreement or other agreements regarding the Common Stock of the Company in such form(s) as the Administrator may determine from time to time.
(g) Termination, Amendment and Modification of the Plan. The Board may terminate, amend or modify the Plan or any portion thereof at any time. Except as otherwise determined by the Board, termination of the Plan shall not affect the Administrators ability to exercise the powers granted to it hereunder with respect to Awards granted under the Plan prior to the date of such termination.
(h) Non-Guarantee of Employment or Service. Nothing in the Plan or in any Grant Agreement thereunder shall confer any right on an individual to continue in the service of the Company or shall interfere in any way with the right of the Company to terminate such service at any time with or without cause or notice and whether or not such termination results in (i) the failure of any Award to vest; (ii) the forfeiture of any unvested or vested portion of any Award; and/or (iii) any other adverse effect on the individuals interests under the Plan.
(i) Compliance with Securities Laws; Listing and Registration. If at any time the Administrator determines that the delivery of Common Stock under the Plan is or may be unlawful under the laws of any applicable jurisdiction, or Federal, state or foreign securities laws, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended until the Administrator determines that such delivery is lawful. The
Company shall have no obligation to effect any registration or qualification of the Common Stock under Federal, state or foreign laws. The Company may require that a grantee, as a condition to exercise of an Award, and as a condition to the delivery of any share certificate, make such written representations (including representations to the effect that such person will not dispose of the Common Stock so acquired in violation of Federal, state or foreign securities laws) and furnish such information as may, in the opinion of counsel for the Company, be appropriate to permit the Company to issue the Common Stock in compliance with applicable Federal, state or foreign securities laws. The stock certificates for any shares of Common Stock issued pursuant to this Plan may bear a legend restricting transferability of the shares of Common Stock unless such shares are registered or an exemption from registration is available under the Securities Act of 1933, as amended, and applicable state or foreign securities laws.
(j) No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a grantee or any other person. To the extent that any grantee or other person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company.
(k) Governing Law. The validity, construction and effect of the Plan, of Grant Agreements entered into pursuant to the Plan, and of any rules, regulations, determinations or decisions made by the Administrator relating to the Plan or such Grant Agreements, and the rights of any and all persons having or claiming to have any interest therein or thereunder, shall be determined exclusively in accordance with applicable federal laws and the laws of the State of Delaware, without regard to its conflict of laws principles.
(l) 409A Savings Clause. The Plan and all Awards granted hereunder are intended to comply with, or otherwise be exempt from, Code section 409A. The Plan and all Awards granted under the Plan shall be administered, interpreted, and construed in a manner consistent with Code section 409A to the extent necessary to avoid the imposition of additional taxes under Code section 409A(a)(1)(B). Should any provision of the Plan, any Award agreement, or any other agreement or arrangement contemplated by the Plan be found not to comply with, or otherwise be exempt from, the provisions of Code section 409A, such provision shall be modified and given effect (retroactively if necessary), in the sole discretion of the Administrator, and without the consent of the holder of the Award, in such manner as the Administrator determines to be necessary or appropriate to comply with, or to effectuate an exemption from, Code section 409A. Notwithstanding anything in the Plan to the contrary, in no event shall the Administrator exercise its discretion to accelerate the payment or settlement of an Award where such payment or settlement constitutes deferred compensation within the meaning of Code section 409A unless, and solely to the extent, that such accelerated payment or settlement is permissible under Treasury Regulation section 1.409A-3(j)(4) or any successor provision.
(m) Prior Plans. This Plan is the only plan or agreement of the Company with respect to the subject matter hereof and supersedes and replaces all prior plans, agreements and undertakings, both written and oral, with respect to such subject matter.
(n) Effective Date; Termination Date. The Plan is effective as of the date on which the Plan is adopted by the Board, subject to approval of the stockholders within twelve months before or after such date. No Award shall be granted under the Plan after the close of business on the day immediately preceding the tenth anniversary of the effective date of the Plan, or if earlier, the tenth anniversary of the date this Plan is approved by the stockholders. Subject to other applicable provisions of the Plan, all Awards made under the Plan prior to such termination of the Plan shall remain in effect until such Awards have been satisfied or terminated in accordance with the Plan and the terms of such Awards.
PLAN APPROVAL
Date Original Plan Approved by the Board: October 14, 2010
Date Original Plan Approved by the Stockholders: October 14, 2010
Date Amended and Restated Plan Approved by the Board: October 17, 2012
Date Amended and Restated Plan Approved by the Stockholders: October 17, 2012
APPENDIX A
PROVISIONS FOR CALIFORNIA RESIDENTS
With respect to Awards granted to California residents prior to a public offering of capital stock of the Company that is effected pursuant to a registration statement filed with, and declared effective by, the Securities and Exchange Commission under the Securities Act of 1933, as amended, and only to the extent required by applicable law, the following provisions shall apply notwithstanding anything in the Plan or a Grant Agreement to the contrary:
1. With respect to any Award granted in the form of a stock option pursuant to Section 6(a) of the Plan:
(a) The exercise period shall be no more than 120 months from the date the option is granted.
(b) The options shall be non-transferable other than by will, by the laws of descent and distribution, or, if and to the extent permitted under the Grant Agreement, to a revocable trust or as permitted by Rule 701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701).
(c) Unless employment is terminated for cause as defined by applicable law, the terms of the Plan or Grant Agreement, or a contract of employment, the right to exercise the option in the event of termination of employment, to the extent that the Award recipient is entitled to exercise on the date employment terminates, will continue until the earlier of the option expiration date, or:
(1) At least 6 months from the date of termination if termination was caused by death or disability.
(2) At least 30 days from the date of termination if termination was caused by other than death or disability.
2. With respect to an Award, granted pursuant to Section 6(c) of the Plan, that provides the Award recipient the right to purchase stock, the Award shall be non-transferable other than by will, by the laws of descent and distribution, or, if and to the extent permitted under the Grant Agreement, to a revocable trust or as permitted by Rule 701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701).
3. The Plan shall have a termination date of not more than 10 years from the date the Plan is adopted by the Board or the date the Plan is approved by the security holders, whichever is earlier.
4. Security holders representing a majority of the Companys outstanding securities entitled to vote must approve the Plan by the later of (a) 12 months after the date the Plan is adopted or (b) 12 months after the granting of any Award to a resident of California. Any option exercised or any securities purchased before security holder approval is obtained must be rescinded if security holder approval is not obtained within the period described in the preceding sentence. Such securities shall not be counted in determining whether such approval is obtained.
5. At the discretion of the Administrator, the Company may reserve to itself and/or its assignee(s) in the Grant Agreement or any applicable stock restriction agreement a right to repurchase securities held by an Award recipient upon such Award recipients termination of employment at any time within six months after such Award recipients termination date (or in the case of securities issued upon exercise of an option after the termination date, within six months after the date of such exercise) for cash or cancellation of purchase money indebtedness, at:
(A) no less than the Fair Market Value of such securities as of the date of the Award recipients termination of employment, provided, that such right to repurchase securities terminates when the Companys securities have become publicly traded; or
(B) the Award recipients original purchase price, provided, that such right to repurchase securities at the original purchase price lapses at the rate of at least 20% of the securities per year over 5 years from the date the option is granted (without respect to the date the option was exercised or became exercisable).
The securities held by an officer, director, manager or consultant of the Company or an affiliate may be subject to additional or greater restrictions.
6. The Company will provide financial statements to each Award recipient annually during the period such individual has Awards outstanding, or as otherwise required under Section 260.140.46 of Title 10 of the California Code of Regulations. Notwithstanding the foregoing, the Company will not be required to provide such financial statements to Award recipients when the Plan complies with all conditions of Rule 701 of the Securities Act of 1933, as amended (17 C.F.R. 230.701); provided that for purposes of determining such compliance, any registered domestic partner shall be considered a family member as that term is defined in Rule 701.
7. The Plan is intended to comply with Section 25102(o) of the California Corporations Code. Any provision of this Plan which is inconsistent with Section 25102(o), including without limitation any provision of this Plan that is more restrictive than would be permitted by Section 25102(o) as amended from time to time, shall, without further act or amendment by the Board, be reformed to comply with the provisions of Section 25102(o). If at any time the Administrator determines that the delivery of Common Stock under the Plan is or may be unlawful under the laws of any applicable jurisdiction, or federal or state securities laws, the right to exercise an Award or receive shares of Common Stock pursuant to an Award shall be suspended until the Administrator determines that such delivery is lawful. The Company shall have no obligation to effect any registration or qualification of the Common Stock under federal or state laws.
FIRST AMENDMENT TO THE
ENDGAME SYSTEMS, INC. AMENDED AND RESTATED
2010 STOCK INCENTIVE PLAN
March 8, 2013
This First Amendment (this Plan Amendment) hereby amends the Endgame Systems, Inc. Amended and Restated 2010 Stock Incentive Plan adopted on October 17, 2012 (as amended, the Plan) as follows:
1.
Section 4(b) of the Plan is hereby amended such that the number 6,065,882 appearing in such section is hereby deleted and replaced with the number 11,613,864, such number indicating the aggregate number of shares of Common Stock that shall be reserved under the Plan and available for future Awards under the Plan and issued pursuant to the exercise of incentive stock options.
2.
All capitalized terms not otherwise defined herein shall have the meaning as set forth in the Plan.
3.
To the extent anything in this Plan Amendment is in conflict with the Plan, this Plan Amendment shall control. Except as expressly set forth in this Plan Amendment, the terms and conditions of the Plan shall continue in full force and effect.
This Plan Amendment was approved by the Board of Directors and the requisite majority of the stockholders of the Company on and as of March 8, 2013 and is effective as of such date.
SECOND AMENDMENT TO THE
ENDGAME, INC. AMENDED AND RESTATED
2010 STOCK INCENTIVE PLAN
November 7, 2014
This Second Amendment (this Plan Amendment) hereby amends the Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan adopted on October 17, 2012 (as amended, the Plan) as follows:
1.
Section 4 of the Plan is hereby amended and restated in its entirety as follows:
4. Shares Available for the Plan
(a) Share Reserve. Subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of 18,141,942 shares of Common Stock. The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall thereafter be available for further Awards under the Plan.
(b) Incentive Stock Option Limit. Notwithstanding anything to the contrary in this Section 4 and subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock that may be issued pursuant to the exercise of incentive stock options intended to qualify under Code section 422 shall not exceed an aggregate of 18,141,942 shares of Common Stock.
2.
All capitalized terms not otherwise defined herein shall have the meaning as set forth in the Plan.
3.
To the extent anything in this Plan Amendment is in conflict with the Plan, this Plan Amendment shall control. Except as expressly set forth in this Plan Amendment, the terms and conditions of the Plan shall continue in full force and effect.
This Plan Amendment was approved by the Board of Directors and the requisite majority of the stockholders of the Company on and as of November 7, 2014 and is effective as of such date.
THIRD AMENDMENT TO THE
ENDGAME, INC. AMENDED AND RESTATED
2010 STOCK INCENTIVE PLAN
March 8, 2017
This Third Amendment (this Plan Amendment) hereby amends the Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan adopted on October 17, 2012 (as amended, the Plan) as follows:
1.
Section 4 of the Plan is hereby amended and restated in its entirety as follows:
4. Shares Available for the Plan
(a) Share Reserve. Subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock that may be issued with respect to Awards granted under the Plan shall not exceed an aggregate of 21,141,942 shares of Common Stock. The Company shall reserve such number of shares for Awards under the Plan, subject to adjustments as provided in Section 7(d) of the Plan. If any Award, or portion of an Award, under the Plan expires or terminates unexercised, becomes unexercisable, is settled in cash without delivery of shares of Common Stock, or is forfeited or otherwise terminated, surrendered or canceled as to any shares, or if any shares of Common Stock are repurchased by or surrendered to the Company in connection with any Award (whether or not such surrendered shares were acquired pursuant to any Award), or if any shares are withheld by the Company, the shares subject to such Award and the repurchased, surrendered and withheld shares shall thereafter be available for further Awards under the Plan.
(b) Incentive Stock Option Limit. Notwithstanding anything to the contrary in this Section 4 and subject to adjustments as provided in Section 7(d) of the Plan, the shares of Common Stock that may be issued pursuant to the exercise of incentive stock options intended to qualify under Code section 422 shall not exceed an aggregate of 21,141,942 shares of Common Stock.
2.
All capitalized terms not otherwise defined herein shall have the meaning as set forth in the Plan.
3.
To the extent anything in this Plan Amendment is in conflict with the Plan, this Plan Amendment shall control. Except as expressly set forth in this Plan Amendment, the terms and conditions of the Plan shall continue in full force and effect.
This Plan Amendment was approved by the Board of Directors and the requisite majority of the stockholders of the Company on and as of March 8, 2017 and is effective as of such date.
ENDGAME, INC.
INCENTIVE STOCK OPTION NOTICE
This Notice evidences the award of stock options (each, an Option or collectively, the Options) that have been granted to you, [ ], subject to and conditioned upon your agreement to the terms of the attached Incentive Stock Option Agreement (the Agreement). The Options entitle you to purchase shares of Common Stock, par value $0.001 per share (Common Stock), of Endgame, Inc., a Delaware corporation (the Company), under the Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan (as may be amended from time to time, the Plan). The number of shares you may purchase and the exercise price at which you may purchase them are specified below. This Notice constitutes part of and is subject to the terms and provisions of the Agreement and the Plan, which are incorporated by reference herein. You must return an executed copy of this Notice to the Company within 30 days of the date hereof. If you fail to do so, the Options will be null and void.
Grant Date: [ ] (the Grant Date)
Number of Shares: [ ]
Exercise Price: $[ ] per share (the Exercise Price)
Expiration |
Date: The Options expire at 5:00 p.m. Eastern Time on the last business day coincident with or prior to the 10th anniversary of the Grant Date (the Expiration Date), unless fully exercised or terminated earlier. |
Exercisability Schedule: Subject to the terms and conditions described in the Agreement, the Options become exercisable in accordance with the schedule (the Exercisability Schedule) below:
[insert vesting schedule]
ENDGAME, INC. | ||
By: | ||
Name: |
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Title: |
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Date: |
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I acknowledge that I have carefully read the attached Agreement and the Plan and agree to be bound by all of the provisions set forth in these documents.
Enclosures: |
Incentive Stock Option Agreement Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan Exercise Form |
OPTIONEE | ||
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Date: |
INCENTIVE STOCK OPTION AGREEMENT
UNDER THE
ENDGAME, INC. 2010 AMENDED AND RESTATED STOCK INCENTIVE PLAN
1. Terminology. Capitalized terms used in this Agreement are defined in the correlating Stock Option Notice and/or the Glossary at the end of the Agreement. Capitalized terms used in this Agreement and not otherwise defined shall have the definitions attributed to them in the Plan.
2. Exercise of Options.
(a) Exercisability. The Options will become exercisable in accordance with the Exercisability Schedule set forth in the Stock Option Notice, so long as you are in the Service of the Company from the Grant Date through the applicable exercisability dates. Except as otherwise provided by the Administrator or in the Stock Option Notice, none of the Options will become exercisable after your Service with the Company ceases.
(b) Right to Exercise. You may exercise the Options, to the extent exercisable, at any time on or before 5:00 p.m. Eastern Time on the Expiration Date or the earlier termination of the Options, unless otherwise provided under applicable law. Section 3 below describes certain limitations on exercise of the Options that apply in the event of your death, Total and Permanent Disability, or termination of Service. The Options may be exercised only in multiples of whole Shares and may not be exercised at any one time as to fewer than one hundred Shares (or such lesser number of Shares as to which the Options are then exercisable) unless otherwise agreed to by the Administrator. No fractional Shares will be issued under the Options.
(c) Exercise Procedure. In order to exercise the Options, you must provide the following items to the Secretary of the Company or his or her delegate before the expiration or termination of the Options:
(i) |
notice, in such manner and form as the Administrator may require from time to time, specifying the number of Shares to be purchased under the Options; and |
(ii) |
full payment of the Exercise Price for the Shares or properly executed, irrevocable instructions, in such manner and form as the Administrator may require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance with Section 2(d) of this Agreement; and |
(iii) |
an executed copy of any other agreements requested by the Administrator pursuant to Section 2(e) of this Agreement. |
An exercise will not be effective until the Secretary of the Company or his or her delegate receives all of the foregoing items, and such exercise otherwise is permitted under and complies with all applicable federal, state and foreign securities laws.
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(d) Method of Payment. You may pay the Exercise Price by:
(i) |
delivery of cash, certified or cashiers check, money order or other cash equivalent acceptable to the Administrator in its discretion; |
(ii) |
a broker-assisted cashless exercise in accordance with Regulation T of the Board of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator; |
(iii) |
subject to such limits as the Administrator may impose from time to time, tender (via actual delivery or attestation) to the Company of other shares of Common Stock of the Company which have a Fair Market Value on the date of tender equal to the Exercise Price, provided that tender of such shares will not result in the Company having to record a charge to earnings under United States generally accepted accounting principles then applicable to the Company; |
(iv) |
any other method approved by the Administrator; or |
(v) |
any combination of the foregoing. |
(e) Agreement to Execute Other Agreements. You agree to execute, as a condition precedent to the exercise of the Options and at any time thereafter, any and all agreements as may be requested by the Administrator that may be common among some or all of the Companys stockholders, including, without limitation, a stock restriction agreement, shareholders agreement, voting agreement, and right of first refusal and co-sale agreement.
(f) Issuance of Shares upon Exercise. As soon as practicable after exercise of the Options, the Company will deliver a share certificate to you, or deliver Shares electronically or in certificate form to your designated broker on your behalf, for the Shares issued upon exercise. Any share certificates delivered will, unless the Shares are registered or an exemption from registration is available under applicable federal and state law, bear a legend restricting transferability of such Shares and referencing any applicable agreement described in Section 2(e).
3. Termination of Service.
(a) Termination of Unexercisable Options. If your Service with the Company ceases for any reason, the Options that are then unexercisable, after giving effect to the exercise acceleration provisions set forth on the Stock Option Notice, if any, will terminate immediately upon such cessation.
(b) Exercise Period Following Termination of Service. If your Service with the Company ceases for any reason other than discharge for Cause, the Options that are then exercisable, after giving effect to the exercise acceleration provisions set forth on the Stock Option Notice, if any, will terminate upon the earliest of:
(i) the expiration of 90 days following such cessation, if your Service ceases on account of (1) your termination by the Company other than a discharge for Cause, or (2) your voluntary termination other than for Total and Permanent Disability or death;
(ii) the expiration of 12 months following such cessation, if your Service ceases on account of your Total and Permanent Disability or death;
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(iii) the expiration of 12 months following your death, if your death occurs during the periods described in clauses (i) or (ii) of this Section 3(b), as applicable; or
(iv) the Expiration Date.
In the event of your death, the exercisable Options may be exercised by your executor, personal representative, or the person(s) to whom the Options are transferred by will or the laws of descent and distribution.
(c) Misconduct. The Options will terminate in their entirety, regardless of whether the Options are then exercisable, immediately upon your discharge from Service for Cause, or upon your commission of any of the following acts during the exercise period following your termination of Service: (i) fraud on or misappropriation of any funds or property of the Company, or (ii) your breach of any provision of any employment, non-disclosure, non-competition, non-solicitation, assignment of inventions, employee covenants or other similar agreement executed by you for the benefit of the Company, as determined by the Administrator, which determination will be conclusive.
(d) Changes in Status. If you cease to be a common law employee of the Company but you continue to provide bona fide services to the Company following such cessation in a different capacity, including without limitation as a director, consultant or independent contractor, then a termination of Service shall not be deemed to have occurred for purposes of this Section 3 upon such change in capacity. Notwithstanding the foregoing, the Options shall not be treated as incentive stock options within the meaning of Code section 422 with respect to any exercise that occurs more than three months after such cessation of the common law employee relationship (except as otherwise permitted under Code section 421 or 422). In the event that your Service is with a business, trade or entity that, after the Grant Date, ceases for any reason to be part or an Affiliate of the Company, your Service will be deemed to have terminated for purposes of this Section 3 upon such cessation if your Service does not continue uninterrupted immediately thereafter with the Company or an Affiliate of the Company.
4. Market Stand-Off Agreement. You agree that following the effective date of a registration statement of the Company filed under the Securities Act of 1933, you, for the duration specified by and to the extent requested by the Company and an underwriter of Common Stock or other securities of the Company, shall not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, enter into a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of such securities, whether any such aforementioned transaction is to be settled by delivery of such securities or other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, in each case during the seven days prior to and the 180 days after the effectiveness of any underwritten offering of the Companys equity securities (or such longer or shorter period as may be requested in writing by the managing underwriter and agreed to in writing by the Company) (the Market Stand-Off Period), except as part of such underwritten registration if otherwise permitted. In addition, you agree to execute any further letters, agreements and/or other documents requested by the Company or its underwriters that are consistent with the terms of this Section 4. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Stand-Off Period.
5. Nontransferability of Options. These Options are nontransferable otherwise than by will or the laws of descent and distribution and during your lifetime, the Options may be exercised only by you or, during the period you are under a legal disability, by your guardian or legal representative. Except as provided above, the Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process.
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6. Qualified Nature of the Options.
(a) General Status. The Options are intended to qualify as incentive stock option within the meaning of Code section 422 (Incentive Stock Option), to the fullest extent permitted by Code section 422, and this Agreement shall be so construed. The Company, however, does not warrant any particular tax consequences of the Options. Code section 422 provides limitations, not set forth in this Agreement, respecting the treatment of the Options as Incentive Stock Options. You should consult with your personal tax advisors in this regard.
(b) Code Section 422(d) Limitation. Pursuant to Code section 422(d), the aggregate fair market value (determined as of the Grant Date) of shares of Common Stock with respect to which all Incentive Stock Options first become exercisable by you in any calendar year under the Plan or any other plan of the Company (and its parent and subsidiary corporations, within the meaning of Code section 424(e) and (f), as may exist from time to time) may not exceed $100,000 or such other amount as may be permitted from time to time under Code section 422. To the extent that such aggregate fair market value exceeds $100,000 or other applicable amount in any calendar year, such stock options will be treated as nonstatutory stock options with respect to the amount of aggregate fair market value thereof that exceeds the Code section 422(d) limit. For this purpose, the Incentive Stock Options will be taken into account in the order in which they were granted. In such case, the Company may designate the shares of Common Stock that are to be treated as stock acquired pursuant to the exercise of Incentive Stock Options and the shares of Common Stock that are to be treated as stock acquired pursuant to nonstatutory stock options by issuing separate certificates for such shares and identifying the certificates as such in the stock transfer records of the Company.
(c) Significant Stockholders. Notwithstanding anything in this Agreement or the Stock Option Notice to the contrary, if you own, directly or indirectly through attribution, stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any of its subsidiaries (within the meaning of Code section 424(f)) on the Grant Date, then the Exercise Price is the greater of (a) the Exercise Price stated on the Stock Option Notice or (b) 110% of the Fair Market Value of the Common Stock on the Grant Date, and the Expiration Date is the last business day prior to the fifth anniversary of the Grant Date.
7. Withholding of Taxes. At the time the Options are exercised, in whole or in part, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll or any other payment of any kind due to you and otherwise agree to make adequate provision for foreign, federal, state and local taxes required by law to be withheld, if any, which arise in connection with the Options (including upon a disqualifying disposition within the meaning of Code section 421(b)). The Company may require you to make a cash payment to cover any withholding tax obligation as a condition of exercise of the Options or issuance of share certificates representing Shares.
The Administrator may, in its sole discretion, permit you to satisfy, in whole or in part, any withholding tax obligation which may arise in connection with the Options either by electing to have the Company withhold from the Shares to be issued upon exercise that number of Shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.
8. Adjustments. The Administrator may make various adjustments to your Options, including adjustments to the number and type of securities subject to the Options and the Exercise Price, in accordance with the terms of the Plan. In the event of any transaction resulting in a Change in Control of the Company, (i) such Options may be terminated, and in such case
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you will be permitted, immediately before the Change in Control, to exercise or convert all such Options or you will receive Fair Market Value for any such Options as provided in the Plan, or (ii) provision may be made in connection with the transaction for the continuation or assumption of such Options by, or for the substitution of the equivalent awards of, the surviving or successor entity or a parent thereof. In the event of any transaction resulting in a Change in Control of the Company, the vesting of the outstanding Options under this Agreement shall automatically accelerate as set forth in the Plan or your Stock Option Notice.
9. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this Agreement will alter your at-will or other employment status or other service relationship with the Company, nor be construed as a contract of employment or service relationship between you and the Company, or as a contractual right for you to continue in the employ of, or in a service relationship with, the Company for any period of time, or as a limitation of the right of the Company to discharge you at any time with or without Cause or notice and whether or not such discharge results in the failure of any of the Options to become exercisable or any other adverse effect on your interests under the Plan.
10. No Rights as a Stockholder. You shall not have any of the rights of a stockholder with respect to the Shares until such Shares have been issued to you upon the due exercise of the Options. No adjustment will be made for dividends or distributions or other rights for which the record date is prior to the date such Shares are issued.
11. The Companys Rights. The existence of the Options shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Companys capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the Companys assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
12. Entire Agreement. This Agreement, together with the correlating Stock Option Notice and the Plan, contain the entire agreement between you and the Company with respect to the Option. Any oral or written agreements, representations, warranties, written inducements, or other communications made prior to the execution of this Agreement with respect to the Options shall be void and ineffective for all purposes.
13. Amendment. This Agreement may be amended from time to time by the Administrator in its discretion; provided, however, that this Agreement may not be modified in a manner that would have a materially adverse effect on the Options or Shares as determined in the discretion of the Administrator, except as provided in the Plan or in a written document signed by you and the Company.
14. Conformity with Plan. This Agreement is intended to conform in all respects with, and is subject to all applicable provisions of, the Plan. Any conflict between the terms of this Agreement and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall govern. A copy of the Plan is provided to you with this Agreement.
{Glossary begins on next page}
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GLOSSARY
(a) Administrator has the meaning ascribed to such term in the Plan.
(b) Affiliate means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, Endgame, Inc. For this purpose, control means ownership of 50% or more of the total combined voting power or value of all classes of stock or interests of the entity, or has the power to direct the management and policies of the entity, by contract of otherwise.
(c) Cause has the meaning ascribed to such term in the Plan.
(d) Company means Endgame, Inc. and its Affiliates, except where the context otherwise requires. For purposes of determining whether a Change in Control has occurred, Company shall mean only Endgame, Inc.
(e) Good Reason means any material adverse change in your position (including status, offices, titles and reporting requirements), authority, duties or responsibilities (other than a change due to your Total or Permanent Disability or as an accommodation under the Americans With Disabilities Act) which results in a diminution in any material respect in your position, authority, duties, responsibilities or compensation, which diminution continues in time over at least thirty (30) days, such that it constitutes an effective demotion (provided, however, that no diminution of title, position, duties or responsibilities shall be deemed to occur solely because the Company becomes a subsidiary of another corporation or entity or because there has been a change in the reporting hierarchy incident thereto involving you); provided, however, that it shall not constitute Good Reason unless you shall have provided the Company with written notice of its alleged actions constituting Good Reason (which notice shall specify in reasonable detail the particulars of such Good Reason) and Company has not cured any such alleged Good Reason or substantially commenced its effort to cure such breach within 30 days of Companys receipt of such written notice.
(f) Service means your employment or other formal service relationship with the Company.
(g) Shares mean the shares of Common Stock underlying the Options.
(h) Stock Option Notice means the written notice evidencing the award of the Options that correlates with and makes up a part of this Agreement.
(i) Total and Permanent Disability means the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. The Administrator may require such proof of Total and Permanent Disability as the Administrator in its sole discretion deems appropriate and the Administrators good faith determination as to whether you are totally and permanently disabled will be final and binding on all parties concerned.
(j) You; Your means the recipient of the award of Options as reflected on the Stock Option Notice. Whenever the Agreement refers to you under circumstances where the provision should logically be construed, as determined by the Administrator, to apply to your estate, personal representative, or beneficiary to whom the Options may be transferred by will or by the laws of descent and distribution, the word you shall be deemed to include such person.
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EXERCISE FORM
Administrator of Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan
c/o Office of the Corporate Secretary
Endgame, Inc.
[ ]
[ ]
Gentlemen:
I hereby exercise the Options granted to me on , , by Endgame, Inc. (the Company), subject to all the terms and provisions of the applicable grant agreement and of the Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan (the Plan), and notify you of my desire to purchase shares of Common Stock of the Company at a price of $ per share pursuant to the exercise of said Options.
This will confirm my understanding with respect to the shares to be issued to me by reason of this exercise of the Options (the shares to be issued pursuant hereto shall be collectively referred to hereinafter as the Shares) as follows:
(a) I am purchasing the Shares for my own account for investment only, and not with a view to, or for sale in connection with, any distribution of the Shares in violation of the Securities Act of 1933 (the Securities Act), or any rule or regulation under the Securities Act.
(b) I understand that the Shares are being issued without registration under the Securities Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is based in part on the above representation. I also understand that the Company is not obligated to comply with the registration requirements of the Securities Act or with the requirements for an exemption under Regulation A under the Securities Act for my benefit.
(c) I have had such opportunity as I deemed adequate to obtain from representatives of the Company such information as is necessary to permit me to evaluate the merits and risks of my investment in the Company.
(d) I have sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase.
(e) I can afford a complete loss of the value of the Shares and am able to bear the economic risk of holding such Shares for an indefinite period.
(f) I understand that (i) the Shares have not been registered under the Securities Act and are restricted securities within the meaning of Rule 144 under the Securities Act; (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the Securities Act or an exemption from registration is then available and, therefore, they may need to be held indefinitely; and (iii) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the Securities Act. As a condition to any transfer of the Shares, I understand that the Company may require an opinion of counsel satisfactory to the Company to the effect that such transfer does not require registration under the Securities Act or any state securities law.
(g) I understand that the certificates for the Shares to be issued to me will bear a legend substantially as follows:
The shares of stock represented by this certificate are subject to restrictions on transfer, an option to purchase and a market stand-off agreement set forth in one or more agreements between the corporation and the registered owner of this certificate (or his predecessor in interest), and no transfer of such shares may be made without compliance with such agreements. A copy of those agreements is available for inspection at the office of the corporation upon appropriate request and without charge.
The securities represented by this stock certificate have not been registered under the Securities Act of 1933 (the Act) or applicable state securities laws (the State Acts), and shall not be sold, pledged, hypothecated, donated, or otherwise transferred (whether or not for consideration) by the holder except upon the issuance to the corporation of a favorable opinion of its counsel and/or submission to the corporation of such other evidence as may be satisfactory to counsel for the corporation, to the effect that any such transfer shall not be in violation of the Act and the State Acts.
The Company will issue appropriate stop transfer instructions to its transfer agent.
(h) I am a party to one or more agreements with the Company, including a grant agreement, pursuant to which I have agreed to certain restrictions on the transferability of the Shares and other matters relating thereto.
Total Amount Enclosed: $
Date: |
|
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OPTIONEE | ||||||
Received by Endgame, Inc. on | ||||||
, | ||||||
By: |
|
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ENDGAME, INC.
NONSTATUTORY STOCK OPTION NOTICE
This Notice evidences the award of nonstatutory stock options (each, an Option or collectively, the Options) that have been granted to you, [ ], subject to and conditioned upon your agreement to the terms of the attached Nonstatutory Stock Option Agreement (the Agreement). The Options entitle you to purchase shares of common stock, par value $0.001 per share (Common Stock), of Endgame, Inc., a Delaware corporation (the Company), under the Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan (the Plan). The number of shares you may purchase and the exercise price at which you may purchase them are specified below. This Notice constitutes part of and is subject to the terms and provisions of the Agreement and the Plan, which are incorporated by reference herein. You must return an executed copy of this Notice to the Company within 30 days of the date hereof. If you fail to do so, the Options will be null and void.
Grant Date: [ ]
Number of Shares: [ ]
Exercise Price: $[ ] per share
Expiration |
Date: The Options expire at 5:00 p.m. Eastern Time on the last business day coincident with or prior to the 10th anniversary of the Grant Date (the Expiration Date), unless fully exercised or terminated earlier. |
Exercisability Schedule:
[insert vesting schedule]
Endgame, Inc. | ||
By: | ||
Name: |
|
|
Title: |
|
|
Date: |
|
I acknowledge that I have carefully read the attached Agreement and the Plan and agree to be bound by all of the provisions set forth in these documents.
Enclosures: |
Nonstatutory Stock Option Agreement Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan Exercise Form |
OPTIONEE | ||||
|
||||||
Date: |
NONSTATUTORY STOCK OPTION AGREEMENT
UNDER THE
ENDGAME, INC. 2010 AMENDED AND RESTATED STOCK INCENTIVE PLAN
1. Terminology. Capitalized terms used in this Agreement are defined in the correlating Stock Option Notice and/or the Glossary at the end of the Agreement. Capitalized terms used in this Agreement and not otherwise defined shall have the definitions attributed to them in the Plan.
2. Exercise of Options.
(a) Exercisability. The Options will become exercisable in accordance with the Exercisability Schedule set forth in the Stock Option Notice, so long as you are in the Service of the Company from the Grant Date through the applicable exercisability dates. Except as otherwise provided by the Administrator or in the Stock Option Notice, none of the Options will become exercisable after your Service with the Company ceases.
(b) Right to Exercise. You may exercise the Options, to the extent exercisable, at any time on or before 5:00 p.m. Eastern Time on the Expiration Date or the earlier termination of the Options, unless otherwise provided under applicable law. Section 3 below describes certain limitations on exercise of the Options that apply in the event of your death, Total and Permanent Disability, or termination of Service. The Options may be exercised only in multiples of whole Shares and may not be exercised at any one time as to fewer than one hundred Shares (or such lesser number of Shares as to which the Options are then exercisable) unless otherwise agreed to by the Administrator. No fractional Shares will be issued under the Options.
(c) Exercise Procedure. In order to exercise the Options, you must provide the following items to the Secretary of the Company or his or her delegate before the expiration or termination of the Options:
(i) |
notice, in such manner and form as the Administrator may require from time to time, specifying the number of Shares to be purchased under the Options; and |
(ii) |
full payment of the Exercise Price for the Shares or properly executed, irrevocable instructions, in such manner and form as the Administrator may require from time to time, to effectuate a broker-assisted cashless exercise, each in accordance with Section 2(d) of this Agreement; and |
(iii) |
an executed copy of any other agreements requested by the Administrator pursuant to Section 2(e) of this Agreement. |
An exercise will not be effective until the Secretary of the Company or his or her delegate receives all of the foregoing items, and such exercise otherwise is permitted under and complies with all applicable federal, state and foreign securities laws.
(d) Method of Payment. You may pay the Exercise Price by:
(i) |
delivery of cash, certified or cashiers check, money order or other cash equivalent acceptable to the Administrator in its discretion; |
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(ii) |
a broker-assisted cashless exercise in accordance with Regulation T of the Board of Governors of the Federal Reserve System through a brokerage firm approved by the Administrator; |
(iii) |
subject to such limits as the Administrator may impose from time to time, tender (via actual delivery or attestation) to the Company of other shares of Common Stock of the Company which have a Fair Market Value on the date of tender equal to the Exercise Price, provided that tender of such shares will not result in the Company having to record a charge to earnings under United States generally accepted accounting principles then applicable to the Company; |
(iv) |
any other method approved by the Administrator; or |
(v) |
any combination of the foregoing. |
(e) Agreement to Execute Other Agreements. You agree to execute, as a condition precedent to the exercise of the Options and at any time thereafter, any and all agreements as may be requested by the Administrator that may be common among some or all of the Companys stockholders, including, without limitation, a stock restriction agreement, shareholders agreement, voting agreement, and right of first refusal and co-sale agreement.
(f) Issuance of Shares upon Exercise. As soon as practicable after exercise of the Options, the Company will deliver a share certificate to you, or deliver Shares electronically or in certificate form to your designated broker on your behalf, for the Shares issued upon exercise. Any share certificates delivered will, unless the Shares are registered or an exemption from registration is available under applicable federal and state law, bear a legend restricting transferability of such Shares and referencing any applicable agreement described in Section 2(e).
3. Termination of Service.
(a) Termination of Unexercisable Options. If your Service with the Company ceases for any reason, the Options that are then unexercisable, after giving effect to the exercise acceleration provisions set forth on the Stock Option Notice, if any, will terminate immediately upon such cessation.
(b) Exercise Period Following Termination of Service. If your Service with the Company ceases for any reason other than discharge for Cause, the Options that are then exercisable, after giving effect to the exercise acceleration provisions set forth on the Stock Option Notice, if any, will terminate upon the earliest of:
(i) the expiration of 90 days following such cessation, if your Service ceases on account of (1) your termination by the Company other than a discharge for Cause, or (2) your voluntary termination other than for Total and Permanent Disability or death;
(ii) the expiration of 12 months following such cessation, if your Service ceases on account of your Total and Permanent Disability or death;
(iii) the expiration of 12 months following your death, if your death occurs during the periods described in clauses (i) or (ii) of this Section 3(b), as applicable; or
(iv) the Expiration Date.
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In the event of your death, the exercisable Options may be exercised by your executor, personal representative, or the person(s) to whom the Options are transferred by will or the laws of descent and distribution.
(c) Misconduct. The Options will terminate in their entirety, regardless of whether the Options are then exercisable, immediately upon your discharge from Service for Cause, or upon your commission of any of the following acts during the exercise period following your termination of Service: (i) fraud on or misappropriation of any funds or property of the Company, or (ii) your breach of any provision of any employment, non-disclosure, non-competition, non-solicitation, assignment of inventions, or other similar agreement executed by you for the benefit of the Company, as determined by the Administrator, which determination will be conclusive.
(d) Change in Status. In the event that your Service is with a business, trade or entity that, after the Grant Date, ceases for any reason to be part or an Affiliate of the Company, your Service will be deemed to have terminated for purposes of this Section 3 upon such cessation if your Service does not continue uninterrupted immediately thereafter with the Company or an Affiliate of the Company.
4. Market Stand-Off Agreement. You agree that following the effective date of a registration statement of the Company filed under the Securities Act of 1933, you, for the duration specified by and to the extent requested by the Company and an underwriter of Common Stock or other securities of the Company, shall not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, any equity securities of the Company, or any securities convertible into or exchangeable or exercisable for such securities, enter into a transaction which would have the same effect, or enter into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of such securities, whether any such aforementioned transaction is to be settled by delivery of such securities or other securities, in cash or otherwise, or publicly disclose the intention to make any such offer, sale, pledge or disposition, or to enter into any such transaction, swap, hedge or other arrangement, in each case during the seven days prior to and the 180 days after the effectiveness of any underwritten offering of the Companys equity securities (or such longer or shorter period as may be requested in writing by the managing underwriter and agreed to in writing by the Company) (the Market Stand-Off Period), except as part of such underwritten registration if otherwise permitted. In addition, you agree to execute any further letters, agreements and/or other documents requested by the Company or its underwriters that are consistent with the terms of this Section 4. The Company may impose stop-transfer instructions with respect to securities subject to the foregoing restrictions until the end of such Market Stand-Off Period.
5. Nontransferability of Options. These Options are nontransferable otherwise than by will or the laws of descent and distribution and during your lifetime, the Options may be exercised only by you or, during the period you are under a legal disability, by your guardian or legal representative. Except as provided above, the Options may not be assigned, transferred, pledged, hypothecated or disposed of in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process.
6. Nonqualified Nature of the Options. The Options are not intended to qualify as incentive stock options within the meaning of Code section 422, and this Agreement shall be so construed. You hereby acknowledge that, upon exercise of the Options, you will recognize compensation income in an amount equal to the excess of the then Fair Market Value of the Shares over the Exercise Price and must comply with the provisions of Section 7 of this Agreement with respect to any tax withholding obligations that arise as a result of such exercise.
7. Withholding of Taxes. At the time the Options are exercised, in whole or in part, or at any time thereafter as requested by the Company, you hereby authorize withholding from payroll or any other payment of any kind due to you and otherwise agree to make adequate
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provision for foreign, federal, state and local taxes required by law to be withheld, if any, which arise in connection with the Options. The Company may require you to make a cash payment to cover any withholding tax obligation as a condition of exercise of the Options or issuance of share certificates representing Shares.
The Administrator may, in its sole discretion, permit you to satisfy, in whole or in part, any withholding tax obligation which may arise in connection with the Options either by electing to have the Company withhold from the Shares to be issued upon exercise that number of Shares, or by electing to deliver to the Company already-owned shares, in either case having a Fair Market Value equal to the amount necessary to satisfy the statutory minimum withholding amount due.
8. Adjustments. The Administrator may make various adjustments to your Options, including adjustments to the number and type of securities subject to the Options and the Exercise Price, in accordance with the terms of the Plan. Section 7(d)(iii) of the Plan describes actions that the Administrator may take with respect to outstanding Options upon a Change in Control.
9. Non-Guarantee of Employment or Service Relationship. Nothing in the Plan or this Agreement will alter your at-will or other employment status or other service relationship with the Company, nor be construed as a contract of employment or service relationship between you and the Company, or as a contractual right for you to continue in the employ of, or in a service relationship with, the Company for any period of time, or as a limitation of the right of the Company to discharge you at any time with or without Cause or notice and whether or not such discharge results in the failure of any of the Options to become exercisable or any other adverse effect on your interests under the Plan.
10. No Rights as a Stockholder. You shall not have any of the rights of a stockholder with respect to the Shares until such Shares have been issued to you upon the due exercise of the Options. No adjustment will be made for dividends or distributions or other rights for which the record date is prior to the date such Shares are issued.
11. The Companys Rights. The existence of the Options shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Companys capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or other stocks with preference ahead of or convertible into, or otherwise affecting the Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of the Companys assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.
12. Entire Agreement. This Agreement, together with the correlating Stock Option Notice and the Plan, contain the entire agreement between you and the Company with respect to the Option. Any oral or written agreements, representations, warranties, written inducements, or other communications made prior to the execution of this Agreement with respect to the Options shall be void and ineffective for all purposes.
13. Amendment. This Agreement may be amended from time to time by the Administrator in its discretion; provided, however, that this Agreement may not be modified in a manner that would have a materially adverse effect on the Options or Shares as determined in the discretion of the Administrator, except as provided in the Plan or in a written document signed by you and the Company.
14. Conformity with Plan. This Agreement is intended to conform in all respects with, and is subject to all applicable provisions of, the Plan. Any conflict between the terms of this Agreement and the Plan shall be resolved in accordance with the terms of the Plan. In the event of any ambiguity in this Agreement or any matters as to which this Agreement is silent, the Plan shall govern. A copy of the Plan is provided to you with this Agreement.
{Glossary begins on next page}
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GLOSSARY
(a) Administrator has the meaning ascribed to such term in the Plan.
(b) Affiliate means any entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, Endgame, Inc. For this purpose, control means ownership of 50% or more of the total combined voting power or value of all classes of stock or interests of the entity, or has the power to direct the management and policies of the entity, by contract or otherwise.
(c) Cause has the meaning ascribed to such term in the Plan.
(d) Company means Endgame, Inc. and its Affiliates, except where the context otherwise requires. For purposes of determining whether a Change in Control has occurred, Company shall mean only Endgame, Inc.
(e) Service means your employment or other formal service relationship with the Company.
(f) Shares mean the shares of Common Stock underlying the Options.
(g) Stock Option Notice means the written notice evidencing the award of the Options that correlates with and makes up a part of this Agreement.
(h) Total and Permanent Disability means the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve months. The Administrator may require such proof of Total and Permanent Disability as the Administrator in its sole discretion deems appropriate and the Administrators good faith determination as to whether you are totally and permanently disabled will be final and binding on all parties concerned.
(i) You; Your means the recipient of the award of Options as reflected on the Stock Option Notice. Whenever the Agreement refers to you under circumstances where the provision should logically be construed, as determined by the Administrator, to apply to your estate, personal representative, or beneficiary to whom the Options may be transferred by will or by the laws of descent and distribution, the word you shall be deemed to include such person.
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EXERCISE FORM
Administrator of Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan
c/o Office of the Corporate Secretary
Endgame, Inc.
[ ]
[ ]
Gentlemen:
I hereby exercise the Options granted to me on , 20 , by Endgame, Inc. (the Company), subject to all the terms and provisions of the applicable grant agreement and of the Endgame, Inc. 2010 Amended and Restated Stock Incentive Plan (the Plan), and notify you of my desire to purchase shares of Common Stock of the Company at a price of $ per share pursuant to the exercise of said Options.
This will confirm my understanding with respect to the shares to be issued to me by reason of this exercise of the Options (the shares to be issued pursuant hereto shall be collectively referred to hereinafter as the Shares) as follows:
(a) I am purchasing the Shares for my own account for investment only, and not with a view to, or for sale in connection with, any distribution of the Shares in violation of the Securities Act of 1933 (the Securities Act), or any rule or regulation under the Securities Act.
(b) I understand that the Shares are being issued without registration under the Securities Act, in reliance upon one or more exemptions contained in the Securities Act, and such reliance is based in part on the above representation. I also understand that the Company is not obligated to comply with the registration requirements of the Securities Act or with the requirements for an exemption under Regulation A under the Securities Act for my benefit.
(c) I have had such opportunity as I deemed adequate to obtain from representatives of the Company such information as is necessary to permit me to evaluate the merits and risks of my investment in the Company.
(d) I have sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase.
(e) I can afford a complete loss of the value of the Shares and am able to bear the economic risk of holding such Shares for an indefinite period.
(f) I understand that (i) the Shares have not been registered under the Securities Act and are restricted securities within the meaning of Rule 144 under the Securities Act; (ii) the Shares cannot be sold, transferred or otherwise disposed of unless they are subsequently registered under the
Securities Act or an exemption from registration is then available and, therefore, they may need to be held indefinitely; and (iii) there is now no registration statement on file with the Securities and Exchange Commission with respect to any stock of the Company and the Company has no obligation or current intention to register the Shares under the Securities Act. As a condition to any transfer of the Shares, I understand that the Company may require an opinion of counsel satisfactory to the Company to the effect that such transfer does not require registration under the Securities Act or any state securities law.
(g) I understand that the certificates for the Shares to be issued to me will bear a legend substantially as follows:
The shares of stock represented by this certificate are subject to restrictions on transfer, an option to purchase and a market stand-off agreement set forth in one or more agreements between the corporation and the registered owner of this certificate (or his predecessor in interest), and no transfer of such shares may be made without compliance with such agreements. A copy of those agreements is available for inspection at the office of the corporation upon appropriate request and without charge.
The securities represented by this stock certificate have not been registered under the Securities Act of 1933 (the Act) or applicable state securities laws (the State Acts), and shall not be sold, pledged, hypothecated, donated, or otherwise transferred (whether or not for consideration) by the holder except upon the issuance to the corporation of a favorable opinion of its counsel and/or submission to the corporation of such other evidence as may be satisfactory to counsel for the corporation, to the effect that any such transfer shall not be in violation of the Act and the State Acts.
The Company will issue appropriate stop transfer instructions to its transfer agent.
(h) I am a party to one or more agreements with the Company, including a grant agreement, pursuant to which I have agreed to certain restrictions on the transferability of the Shares and other matters relating thereto.
Total Amount Enclosed: $
Date: |
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OPTIONEE | ||||||||
Received by Endgame, Inc. on | ||||||||
, | ||||||||
By: |
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Exhibit 5.1
Advocaten Notarissen Belastingadviseurs |
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|
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To Elastic N.V. (the Issuer) Keizersgracht 281 1016 ED Amsterdam |
Claude Debussylaan 80 P.O. Box 75084 1070 AB Amsterdam
T +31 20 577 1771 F +31 20 577 1775 |
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Date 10 October 2019 Our ref. M33096278/1/74707531 |
Gaby Smeenk Advocaat |
Dear Sir/Madam,
Registration with the US Securities and Exchange Commission
of ordinary shares in the capital of the Issuer
1 |
INTRODUCTION |
I act as Dutch legal adviser (advocaat) to the Issuer in connection with the Registration.
Certain terms used in this opinion are defined in Annex 1 (Definitions).
2 |
DUTCH LAW |
This opinion is limited to Dutch law in effect on the date of this opinion. It (including all terms used in it) is to be construed in accordance with Dutch law.
3 |
SCOPE OF INQUIRY |
I have examined, and relied upon the accuracy of the factual statements in, the following documents:
(a) |
A copy of: |
(i) |
the Registration Statement; |
(ii) |
the Agreement and Plan of Reorganization; and |
(iii) |
the 2010 Stock Incentive Plan. |
(b) |
A copy of: |
(i) |
the Issuers deed of incorporation, as provided to me by the Chamber of Commerce (Kamer van Koophandel); |
(ii) |
the Board Rules; and |
(iii) |
the Trade Register Extract. |
(c) |
A copy of each Corporate Resolution. |
(d) |
A copy of: |
(i) |
the Deed of Conversion; and |
(ii) |
the Deed of Amendment. |
In addition, I have also examined such documents, and performed such other investigations, as I considered necessary for the purpose of this opinion. My examination has been limited to the text of the documents.
4 |
ASSUMPTIONS |
I have made the following assumptions:
(a) |
|
(i) |
Each copy document conforms to the original and each original is genuine and complete. |
(ii) |
Each signature is the genuine signature of the individual concerned. |
(iii) |
The Registration Statement has been or will have been filed with the SEC in the form referred to in this opinion. |
(b) |
|
(i) |
The Board Rules remain in force without modification. |
(ii) |
Each Corporate Resolution: |
(A) |
has been duly adopted (including, in the case of a shareholders resolution, by all persons entitled to vote on that resolution) and remains in force without modification; and |
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(B) |
complies with the requirements of reasonableness and fairness (redelijkheid en billijkheid). |
(c) |
|
(i) |
|
(A) |
Each In-the-Money Company option has been validly granted and accepted in accordance with the 2010 Stock Incentive Plan and applicable law. |
(B) |
Each In-the-Money Company Option has been validly assumed by the Issuer in accordance with the 2010 Stock Incentive Plan and applicable law. |
(C) |
The assumption of each In-the-Money Company Option has been validly accepted by the holder of such In-the-Money Company Option, to the extent required under the 2010 Stock Incentive Plan and applicable law and will be validly exercised in accordance with the 2010 Stock Incentive Plan and applicable law. |
(D) |
Each In-the-Money Company Option is and will be valid, binding and enforceable against each party. |
(ii) |
The Issuers authorised capital at the time of the Board Resolution was sufficient to allow for the assumption of the In-the-Money Company Options, and will be sufficient at the time of the issue of each Registration Share to allow for the issue of the such Registration Share. |
(iii) |
Each Registration Share will have been: |
(A) |
issued in accordance with the 2010 Stock Incentive Plan and in the form and manner prescribed by the Issuers articles of association at the time of issue; and |
(B) |
validly accepted by the holder of the In-the-Money Company Option. |
(iv) |
|
(A) |
Each Registration Share will have been paid in cash or, if the Issuers board so approves in accordance with the Issuers articles of association at the time of issue, at the expense of the reserves of the Issuer; and |
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(B) |
The nominal amount of each Registration Share and any agreed share premium will have been validly paid. |
5 |
OPINION |
Based on the documents and investigations referred to and assumptions made in paragraphs 3 and 4 and subject to any matters not disclosed to me (including force (bedreiging), fraud (bedrog), undue influence (misbruik van omstandigheden) or a mistake (dwaling), in connection with any issue of a Registration Share) I am of the following opinion:
(a) |
When issued, the Registration Shares will have been validly issued and will be fully paid and nonassessable1. |
6 |
RELIANCE |
(a) |
This opinion is an exhibit to the Registration Statement and may be relied upon for the purpose of the Registration and not for any other purpose. It may not be supplied, and its contents or existence may not be disclosed, to any person other than as an Exhibit to (and therefore together with) the Registration Statement. |
(b) |
Each person accepting this opinion agrees, in so accepting, that only De Brauw will have any liability in connection with this opinion, that the agreement in this paragraph 6(b) and all liability and other matters relating to this opinion will be governed exclusively by Dutch law and that the Dutch courts will have exclusive jurisdiction to settle any dispute relating to this opinion. |
(c) |
The Issuer may: |
(i) |
file this opinion as an exhibit to the Registration Statement; and |
(ii) |
refer to De Brauw giving this opinion in the Exhibit Index in the Registration Statement. |
The previous sentence is no admittance from me (or De Brauw) that I am (or De Brauw is) in the category of persons whose consent for the filing and reference as set out in that sentence is required under article 7 of the Securities Act or any rules or regulations of the SEC promulgated under it.
Yours faithfully,
De Brauw Blackstone Westbroek N.V.
/s/ Gaby Smeenk
Gaby Smeenk
1 |
In this opinion, nonassessable which term has no equivalent in Dutch means, in relation to a share, that the issuer of the share has no right to require the holder of the share to pay to the issuer any amount (in addition to the amount required for the share to be fully paid) solely as a result of his shareholdership. |
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Annex 1 Definitions
In this opinion:
2010 Stock Incentive Plan means the Endgame, Inc. Amended and Restated 2010 Stock Incentive Plan as approved by the Endgame, Inc. stockholders on October 17, 2012, as amended on March 8, 2013, November 7, 2014 and March 8, 2017.
Agreement and Plan of Reorganization means the agreement by and among the Issuer, Avengers Acquisition Corp., Endgame, Inc. and Shareholder Representative Services LLC, dated June 5, 2019.
Board Rules means the rules governing the Issuers board of directors adopted by the Issuer on 18 September 2018, effective as of 4 October 2018.
Board Resolution means the written resolution of the Issuers board dated 8 October 2019 to assume each In-the-Money Company Option in accordance with Clause 1.3 (c) (Treatment of Company Options) under (i) (In-the-Money Company Options) of the Agreement and Plan of Reorganization.
Corporate Resolution means the Board Resolution and the Shareholder Resolution.
De Brauw means De Brauw Blackstone Westbroek N.V.
Deed of Amendment means the deed of amendment (akte van statutenwijziging) of the articles of association of the Issuer dated 10 October 2018 providing for the increase of the Companys authorised capital to EUR 3,300,000 divided into 165,000,000 Ordinary Shares and 165,000,000 preference shares with a nominal value of EUR 0.01 each.
Deed of Conversion means the deed of conversion and amendment of the articles of association of the Issuer (akte van omzetting en statutenwijziging Elastic B.V. (na omzetting en statutenwijziging genaamd Elastic N.V.)) dated 10 October 2018 providing for the conversion of the Issuer into a limited liability company and amendment of the articles of association.
Dutch law means the law directly applicable in the Netherlands.
In-the-Money Company Option has the meaning ascribed to it in the Agreement and Plan of Reorganization.
Issue Authorisation is defined in the definition of Shareholder Resolution.
Issuer means Elastic N.V., a public company with limited liability with seat in Amsterdam, the Netherlands, Trade Register number 54655870.
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Ordinary Share means an ordinary share (gewoon aandeel), nominal value of EUR 0.01, in the capital of the Issuer.
Registration means the registration of the Registration Shares with the SEC under the Securities Act.
Registration Shares means up to 245,390 Ordinary Shares to be issued by the Issuer pursuant to the 2010 Stock Incentive Plan, upon exercise of In-the-Money Company Options.
Registration Statement means the registration statement on form S-8 dated 10 October 2019 in relation to the Registration (excluding any documents incorporated by reference in it and any exhibits to it).
SEC means the U.S. Securities and Exchange Commission.
Securities Act means the U.S. Securities Act of 1933, as amended.
Shareholder Resolution means the minutes of the meeting of the Issuers general meeting of shareholders held on 28 September 2018, including the resolutions to, effective as of the Deed of Conversion, authorise the Issuers board for a period of five years to (i) issue up to and/or grant rights to Ordinary Shares up to the number of Ordinary Shares included in the Companys authorised share capital from time to time, for a period of five years; and (ii) restrict and/or exclude pre-emptive rights in respect of issuances of Ordinary Shares or grant of rights to subscribe for Ordinary Shares (the Issue Authorisation).
the Netherlands means the part of the Kingdom of the Netherlands located in Europe.
Trade Register Extract means a Trade Register extract relating to the Issuer provided by the Chamber of Commerce and dated 10 October 2019.
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Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the incorporation by reference in this Registration Statement on Form S-8 of Elastic N.V. of our report dated June 28, 2019 relating to the financial statements, which appears in Elastic N.V.s Annual Report on Form 10-K for the year ended April 30, 2019.
/s/ PricewaterhouseCoopers LLP
San Jose, California
October 10, 2019