exv10w6



 





Exhibit 10.6




VOLTERRA SEMICONDUCTOR CORPORATION




2004 EMPLOYEE STOCK PURCHASE PLAN




ADOPTED: MAY 7, 2004

AMENDED AND RESTATED: MAY 17, 2004

APPROVED BY STOCKHOLDERS: JUNE 18, 2004

AMENDED AND RESTATED: DECEMBER 5, 2006




1. PURPOSE.




     (a) The purpose of the Plan is to provide a means by which Employees of the Company and
certain designated Related Corporations may be given an opportunity to purchase shares of the
Common Stock of the Company.



     (b) The Company, by means of the Plan, seeks to retain the services of such Employees, to
secure and retain the services of new Employees and to provide incentives for such persons to exert
maximum efforts for the success of the Company and its Related Corporations.



     (c) The Company intends that the Purchase Rights be considered options issued under an
Employee Stock Purchase Plan.


2. DEFINITIONS.




     As used in the Plan, the following definitions shall apply to the capitalized terms indicated
below:



     (a) “BOARD” means the Board of Directors of the Company.



     (b) “CODE” means the Internal Revenue Code of 1986, as amended.



     (c) “COMMITTEE” means a committee appointed by the Board in accordance with Section 3(c)
of the Plan.



     (d) “COMMON STOCK” means the common stock of the Company.



(e) “COMPANY” means Volterra Semiconductor Corporation, a Delaware
corporation.




     (f) “CONTRIBUTIONS” means the payroll deductions and other additional payments that a
Participant contributes to fund the exercise of a Purchase Right. A Participant may make payments
not through payroll deductions only if specifically



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provided for in the Offering, and then only if the Participant has not already had the maximum
permitted amount withheld through payroll deductions during the Offering.



     (g) “CORPORATE TRANSACTION” means the occurrence, in a single transaction or in a series
of related transactions, of any one or more of the following events:



          (i) a sale or other disposition of all or substantially all, as determined by the Board
in its sole discretion, of the consolidated assets of the Company and its Subsidiaries;




          (ii) a sale or other disposition of at least ninety percent (90%) of the outstanding
securities of the Company;




          (iii) a merger, consolidation or similar transaction following which the Company is not the
surviving corporation; or




          (iv) a merger, consolidation or similar transaction following which the Company is the
surviving corporation but the shares of Common Stock outstanding immediately preceding the merger,
consolidation or similar transaction are converted or exchanged by virtue of the merger,
consolidation or similar transaction into other property, whether in the form of securities, cash
or otherwise.




     (h) “DILUTED SHARES OUTSTANDING” means, as of any date, (i) the number of outstanding
shares of Common Stock of the Company on such Calculation Date (as defined in Section 4 herein),
plus (ii) the number of shares of Common Stock issuable upon such Calculation Date assuming the
conversion of all outstanding Preferred Stock and convertible notes, plus (iii) the additional
number of dilutive Common Stock equivalent shares outstanding as the result of any options or
warrants outstanding during the fiscal year, calculated using the treasury stock method.



     (i) “DIRECTOR” means a member of the Board.



     (j) “ELIGIBLE EMPLOYEE” means an Employee who meets the requirements set forth in the
Offering for eligibility to participate in the Offering, provided that such Employee also meets the
requirements for eligibility to participate set forth in the Plan.



     (k) “EMPLOYEE” means any person, including Officers and Directors, who is employed for
purposes of Section 423(b)(4) of the Code by the Company or a Related Corporation. Neither service
as a Director nor payment of a director’s fee shall be sufficient to make an individual an Employee
of the Company or a Related Corporation.



     (l) “EMPLOYEE STOCK PURCHASE PLAN” means a plan that grants Purchase Rights intended to
be options issued under an “employee stock purchase plan,” as that term is defined in Section
423(b) of the Code.



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     (m) “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended.



     (n) “FAIR MARKET VALUE” means the value of a security, as determined in good faith by the
Board. If the security is listed on any established stock exchange or traded on the Nasdaq Global
Market (formerly Nasdaq National Market) or the Nasdaq SmallCap Market, the Fair Market Value of
the security, unless otherwise determined by the Board, shall be the closing sales price (rounded
up where necessary to the nearest whole cent) for such security (or the closing bid, if no sales
were reported) as quoted on such exchange or market (or the exchange or market with the greatest
volume of trading in the relevant security of the Company) on the Trading Day prior to the relevant
determination date, as reported in The Wall Street Journal or such other source as the Board deems
reliable.



     (o) “OFFERING” means the grant of Purchase Rights to purchase shares of Common Stock
under the Plan to Eligible Employees.



     (p) “OFFERING DATE” means a date selected by the Board for an Offering to commence.



     (q) “OFFICER” means a person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated thereunder.



     (r) “PARTICIPANT” means an Eligible Employee who holds an outstanding Purchase Right
granted pursuant to the Plan.



     (s) “PLAN” means this Volterra Semiconductor Corporation 2004 Employee Stock Purchase
Plan.



     (t) “PURCHASE DATE” means one or more dates during an Offering established by the Board
on which Purchase Rights shall be exercised and as of which purchases of shares of Common Stock
shall be carried out in accordance with such Offering.



     (u) “PURCHASE PERIOD” means a period of time specified within an Offering beginning on
the Offering Date or on the next day following a Purchase Date within an Offering and ending on a
Purchase Date. An Offering may consist of one or more Purchase Periods.



     (v) “PURCHASE RIGHT” means an option to purchase shares of Common Stock granted pursuant
to the Plan.



     (w) “RELATED CORPORATION” means any parent corporation or subsidiary corporation, whether
now or hereafter existing, as those terms are defined in Sections 424(e) and (f), respectively, of
the Code.



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     (x) “SECURITIES ACT” means the Securities Act of 1933, as amended.



     (y) “TRADING DAY” means any day on which the exchange(s) or market(s) on which shares of
Common Stock are listed, whether it be an established stock exchange, the Nasdaq National Market,
the Nasdaq SmallCap Market or otherwise, is open for trading.


3. ADMINISTRATION.




     (a) The Board shall administer the Plan unless and until the Board delegates
administration to a Committee, as provided in Section 3(c). Whether or not the Board has delegated
administration, the Board shall have the final power to determine all questions of policy and
expediency that may arise in the administration of the Plan.



     (b) The Board (or the Committee) shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:



          (i) To determine when and how Purchase Rights to purchase shares of Common Stock shall be
granted and the provisions of each Offering of such Purchase Rights (which need not be identical).




          (ii) To designate from time to time which Related Corporations of the Company shall be
eligible to participate in the Plan.




          (iii) To construe and interpret the Plan and Purchase Rights, and to establish, amend and
revoke rules and regulations for the administration of the Plan. The Board, in the exercise of this
power, may correct any defect, omission or inconsistency in the Plan, in a manner and to the extent
it shall deem necessary or expedient to make the Plan fully
effective.




          (iv) To amend the Plan as provided in Section 15.




          (v) Generally, to exercise such powers and to perform such acts as it deems necessary or
expedient to promote the best interests of the Company and its Related Corporations and to carry
out the intent that the Plan be treated as an Employee Stock Purchase Plan.




     (c) The Board may delegate administration of the Plan to a Committee of the Board
composed of one (1) or more members of the Board. If administration is delegated to a Committee,
the Committee shall have, in connection with the administration of the Plan, the powers theretofore
possessed by the Board, subject, however, to such resolutions, not inconsistent with the provisions
of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee
at any time and revest in the Board the administration of the Plan. If administration is delegated
to a Committee,



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references to the Board in this Plan and in the Offering document shall thereafter be deemed to be
to the Board or the Committee, as the case may be.



     (d) All determinations, interpretations and constructions made by the Board in good faith
shall not be subject to review by any person and shall be final, binding and conclusive on all
persons.


4. SHARES OF COMMON STOCK SUBJECT TO THE PLAN.




     Subject to the provisions of Section 14 relating to adjustments upon changes in securities,
the shares of Common Stock that may be sold pursuant to Purchase Rights shall not exceed in the
aggregate four hundred fifty thousand (450,000) shares of Common Stock, plus an annual increase to
be added on the last day of the fiscal year of the Company for a period of ten (10) years,
commencing on the last day of the fiscal year that ends on December 31, 2004 and ending on (and
including) the last day of the fiscal year that ends on December 31, 2013 (each such day, a
“Calculation Date”), equal to the lesser of (i) one and three-quarters percent (1.75%) of the
Diluted Shares Outstanding on each such Calculation Date (rounded down to the nearest whole share)
and (ii) one million (1,000,000) shares of Common Stock. Notwithstanding the foregoing, the Board
may act, prior to the last day of any fiscal year of the Company, to increase the share reserve by
such number of shares of Common Stock as the Board shall determine, which number shall be less than
the amount described in the prior sentence. If any Purchase Right granted under the Plan shall for
any reason terminate without having been exercised, the shares of Common Stock not purchased under
such Purchase Right shall again become available for issuance under the Plan.


5. GRANT OF PURCHASE RIGHTS; OFFERING.




     (a) The Board may from time to time grant or provide for the grant of Purchase Rights to
purchase shares of Common Stock under the Plan to Eligible Employees in an Offering (consisting of
one or more Purchase Periods) on an Offering Date or Offering Dates selected by the Board. Each
Offering shall be in such form and shall contain such terms and conditions as the Board shall deem
appropriate, which shall comply with the requirement of Section 423(b)(5) of the Code that all
Employees granted Purchase Rights shall have the same rights and privileges. The terms and
conditions of an Offering shall be incorporated by reference into the Plan and treated as part of
the Plan. The provisions of separate Offerings need not be identical, but each Offering shall
include (through incorporation of the provisions of this Plan by reference in the document
comprising the Offering or otherwise) the period during which the Offering shall be effective,
which period shall not exceed twenty-seven (27) months beginning with the Offering Date, and the
substance of the provisions contained in Sections 6 through 9, inclusive.



     (b) If a Participant has more than one Purchase Right outstanding under the Plan, unless
he or she otherwise indicates in agreements or notices delivered hereunder: (i) each agreement or
notice delivered by that Participant shall be deemed to apply to all of his or her Purchase Rights
under the Plan, and (ii) a Purchase Right with a lower exercise



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price (or an earlier-granted Purchase Right, if different Purchase Rights have identical exercise
prices) shall be exercised to the fullest possible extent before a Purchase Right with a higher
exercise price (or a later-granted Purchase Right if different Purchase

Rights have identical exercise prices) shall be exercised.


6. ELIGIBILITY.




     (a) Purchase Rights may be granted only to Employees of the Company or, as the Board may
designate as provided in Section 3(b), to Employees of a Related Corporation. Except as provided in
Section 6(b), an Employee shall not be eligible to be granted Purchase Rights under the Plan
unless, on the Offering Date, such Employee has been in the employ of the Company or the Related
Corporation, as the case may be, for such continuous period preceding such Offering Date as the
Board may require, but in no event shall the required period of continuous employment be greater
than two (2) years. In addition, the Board may provide that no Employee shall be eligible to be
granted Purchase Rights under the Plan unless, on the Offering Date, such Employee’s customary
employment with the Company or the Related Corporation is more than twenty (20) hours per week
and/or more than five (5) months per calendar year.



     (b) The Board may provide that each person who, during the course of an Offering, first
becomes an Eligible Employee shall, on a date or dates specified in the Offering which coincides
with the day on which such person becomes an Eligible Employee or which occurs thereafter, receive
a Purchase Right under that Offering, which Purchase Right shall thereafter be deemed to be a part
of that Offering. Such Purchase Right shall have the same characteristics as any Purchase Rights
originally granted under that Offering, as described herein, except that:



          (i) the date on which such Purchase Right is granted shall be the “Offering Date” of such
Purchase Right for all purposes, including determination of the exercise price of such Purchase
Right;




          (ii) the period of the Offering with respect to such Purchase Right shall begin on its
Offering Date and end coincident with the end of such Offering; and




          (iii) the Board may provide that if such person first becomes an Eligible Employee within a
specified period of time before the end of the Offering, he or she shall not receive any Purchase
Right under that Offering.




     (c) No Employee shall be eligible for the grant of any Purchase Rights under the Plan if,
immediately after any such Purchase Rights are granted, such Employee owns stock possessing five
percent (5%) or more of the total combined voting power or value of all classes of stock of the
Company or of any Related Corporation. For purposes of this Section 6(c), the rules of Section
424(d) of the Code shall apply in determining the stock ownership of any Employee, and stock which
such Employee may purchase under all outstanding Purchase Rights and options shall be treated as
stock owned by such Employee.



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     (d) As specified by Section 423(b)(8) of the Code, an Eligible Employee may be granted
Purchase Rights under the Plan only if such Purchase Rights, together with any other rights granted
under all Employee Stock Purchase Plans of the Company and any Related Corporations, do not permit
such Eligible Employee’s rights to purchase stock of the Company or any Related Corporation to
accrue at a rate which exceeds twenty five thousand dollars ($25,000) of Fair Market Value of such
stock (determined at the time such rights are granted, and which, with respect to the Plan, shall
be determined as of their respective Offering Dates) for each calendar year in which such rights
are outstanding at any time.



     (e) Officers of the Company and any designated Related Corporation, if they are otherwise
Eligible Employees, shall be eligible to participate in Offerings under the Plan. Notwithstanding
the foregoing, the Board may provide in an Offering that Employees who are highly compensated
Employees within the meaning of Section 423(b)(4)(D) of the Code shall not be eligible to
participate.


7. PURCHASE RIGHTS; PURCHASE PRICE.




     (a) On each Offering Date, each Eligible Employee, pursuant to an Offering made under the
Plan, shall be granted a Purchase Right to purchase up to that number of shares of Common Stock
purchasable either with a percentage or with a maximum dollar amount, as designated by the Board,
but in either case not exceeding twenty percent (20%), of such Employee’s Earnings (as defined by
the Board in each Offering) during the period that begins on the Offering Date (or such later date
as the Board determines for a particular Offering) and ends on the date stated in the Offering,
which date shall be no later than the end of the Offering.



     (b) The Board shall establish one (1) or more Purchase Dates during an Offering as of
which Purchase Rights granted pursuant to that Offering shall be exercised and purchases of shares
of Common Stock shall be carried out in accordance with such Offering.



     (c) In connection with each Offering made under the Plan, the Board may specify a maximum
number of shares of Common Stock that may be purchased by any Participant on any Purchase Date
during such Offering. In connection with each Offering made under the Plan, the Board may specify a
maximum aggregate number of shares of Common Stock that may be purchased by all Participants
pursuant to such Offering. In addition, in connection with each Offering that contains more than
one Purchase Date, the Board may specify a maximum aggregate number of shares of Common Stock that
may be purchased by all Participants on any Purchase Date under the Offering. If the aggregate
purchase of shares of Common Stock issuable upon exercise of Purchase Rights granted under the
Offering would exceed any such maximum aggregate number, then, in the absence of any Board action
otherwise, a pro rata allocation of the shares of
Common Stock available shall be made in as nearly a uniform manner as shall be practicable and
equitable.



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     (d) The purchase price of shares of Common Stock acquired pursuant to Purchase Rights
shall be not less than the lesser of:



          (i) an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares
of Common Stock on the Offering Date; or




          (ii) an amount equal to eighty-five percent (85%) of the Fair Market Value of the shares
of Common Stock on the applicable Purchase Date.



8. PARTICIPATION; WITHDRAWAL; TERMINATION.




     (a) A Participant may elect to authorize payroll deductions pursuant to an Offering under
the Plan by completing and delivering to the Company, within the time specified in the Offering, an
enrollment form (in such form as the Company may provide). Each such enrollment form shall
authorize an amount of Contributions expressed as a percentage of the submitting Participant’s
Earnings (as defined in each Offering) during the Offering (not to exceed the maximum percentage
specified by the Board). Each Participant’s Contributions shall remain the property of the
Participant at all times prior to the purchase of Common Stock, but such Contributions may be
commingled with the assets of the Company and used for general corporate purposes except where
applicable law requires that Contributions be deposited with an independent
third party. To the extent provided in the Offering, a Participant may begin making Contributions
after the beginning of the Offering. To the extent provided in the Offering, a Participant may
thereafter reduce (including to zero) or increase his or her Contributions. To the extent
specifically provided in the Offering, in addition to making Contributions by payroll deductions, a
Participant may make Contributions through the payment by cash or check prior to each Purchase Date
of the Offering.



     (b) During an Offering, a Participant may cease making Contributions and withdraw from
the Offering by delivering to the Company a notice of withdrawal in such form as the Company may
provide. Such withdrawal may be elected at any time prior to the end of the Offering, except as
provided otherwise in the Offering. Upon such withdrawal from the Offering by a Participant, the
Company shall distribute to such Participant all of his or her accumulated Contributions (reduced
to the extent, if any, such Contributions have been used to acquire shares of Common Stock for the
Participant) under the Offering, and such Participant’s Purchase Right in that Offering shall
thereupon terminate. A Participant’s withdrawal from an Offering shall have no effect upon such
Participant’s eligibility to participate in any other Offerings under the Plan, but such
Participant shall be required to deliver a new enrollment form in order to participate in
subsequent Offerings.



     (c) Purchase Rights granted pursuant to any Offering under the Plan shall terminate
immediately upon a Participant ceasing to be an Employee for any reason or for no reason (subject
to any post-employment participation period required by law) or other lack of eligibility. The
Company shall distribute to such terminated or otherwise



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ineligible Employee all of his or her accumulated Contributions (reduced to the extent, if any,
such Contributions have been used to acquire shares of Common Stock for the terminated or otherwise
ineligible Employee) under the Offering.



     (d) Purchase Rights shall not be transferable by a Participant otherwise than by will,
the laws of descent and distribution, or a beneficiary designation as provided in Section 13.
During a Participant’s lifetime, Purchase Rights shall be exercisable only by such Participant.



     (e) Unless otherwise specified in an Offering, the Company shall have no obligation to
pay interest on Contributions.


9. EXERCISE.




     (a) On each Purchase Date during an Offering, each Participant’s accumulated
Contributions shall be applied to the purchase of shares of Common Stock up to the maximum number
of shares of Common Stock permitted pursuant to the terms of the Plan and the applicable Offering,
at the purchase price specified in the Offering. No fractional shares shall be issued upon the
exercise of Purchase Rights unless specifically provided for in the Offering.



     (b) If any amount of accumulated Contributions remains in a Participant’s account after
the purchase of shares of Common Stock on the final Purchase Date of an Offering, then such
remaining amount shall be distributed in full to such Participant at the end of the Offering.



     (c) No Purchase Rights may be exercised to any extent unless the shares of Common Stock
to be issued upon such exercise under the Plan are covered by an effective registration statement
pursuant to the Securities Act and the Plan is in material compliance with all laws applicable to
the Plan. If on a Purchase Date during any Offering hereunder the shares of Common Stock are not so
registered or the Plan is not in such compliance, no Purchase Rights or any Offering shall be
exercised on such Purchase Date, and the Purchase Date shall be delayed until the shares of Common
Stock are subject to such an effective registration statement and the Plan is in such compliance,
except that the Purchase Date shall not be delayed more than twelve (12) months and the Purchase
Date shall in no event be more than twenty-seven (27) months from the Offering Date. If, on the
Purchase Date under any Offering hereunder, as delayed to the maximum extent permissible, the
shares of Common Stock are not registered and the Plan is not in such compliance, no Purchase
Rights or any Offering shall be exercised and
all Contributions accumulated during the Offering (reduced to the extent, if any, such
Contributions have been used to acquire shares of Common Stock) shall be distributed to the
Participants.


10. COVENANTS OF THE COMPANY.




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     The Company shall seek to obtain from each federal, state, foreign or other regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to issue
and sell shares of Common Stock upon exercise of the Purchase Rights. If, after commercially
reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency
the authority that counsel for the Company deems necessary for the lawful issuance and sale of
shares of Common Stock under the Plan, the Company shall be relieved from any liability for failure
to issue and sell shares of Common Stock upon exercise of such Purchase Rights unless and until
such authority is obtained.


11. USE OF PROCEEDS FROM SHARES OF COMMON STOCK.




     Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights shall constitute
general funds of the Company.


12. RIGHTS AS A STOCKHOLDER.




     A Participant shall not be deemed to be the holder of, or to have any of the rights of a
holder with respect to, shares of Common Stock subject to Purchase Rights unless and until the
Participant’s shares of Common Stock acquired upon exercise of Purchase Rights are recorded in the
books of the Company (or its transfer agent).


13. DESIGNATION OF BENEFICIARY.




     (a) A Participant may file a written designation of a beneficiary who is to receive any
shares of Common Stock and/or cash, if any, from the Participant’s account under the Plan in the
event of such Participant’s death subsequent to the end of an Offering but prior to delivery to the
Participant of such shares of Common Stock or cash. In addition, a Participant may file a written
designation of a beneficiary who is to receive any cash from the Participant’s account under the
Plan in the event of such Participant’s death during an Offering. Any such designation shall be on
a form provided by or otherwise acceptable to the Company.



     (b) The Participant may change such designation of beneficiary at any time by written
notice to the Company. In the event of the death of a Participant and in the absence of a
beneficiary validly designated under the Plan who is living at the time of such Participant’s
death, the Company shall deliver such shares of Common Stock and/or cash to the executor or
administrator of the estate of the Participant, or if no such executor or administrator has been
appointed (to the knowledge of the Company), the Company, in its sole discretion, may deliver such
shares of Common Stock and/or cash to the spouse or to any one or more dependents or relatives of
the Participant, or if no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate.


14. ADJUSTMENTS UPON CHANGES IN SECURITIES; CORPORATE TRANSACTIONS.




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     (a) If any change is made in the shares of Common Stock, subject to the Plan, or subject
to any Purchase Right, without the receipt of consideration by the Company (through merger,
consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend in
property other than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan shall be appropriately adjusted in the type(s), class(es)
and maximum number of shares of Common Stock subject to the Plan pursuant to Section 4(a), and the
outstanding Purchase
Rights shall be appropriately adjusted in the type(s), class(es), number of shares and purchase
limits of such outstanding Purchase Rights. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any convertible securities
of the Company shall not be treated as a “transaction not involving the receipt of consideration by
the Company.”)



     (b) In the event of a Corporate Transaction, then: (i) any surviving or acquiring
corporation (or the surviving or acquiring corporation’s parent company) may continue or assume
Purchase Rights outstanding under the Plan or may substitute similar rights (including a right to
acquire the same consideration paid to stockholders in the Corporate Transaction) for those
outstanding under the Plan, or (ii) if any surviving or acquiring corporation (or its parent
company) does not continue or assume such Purchase Rights or does not substitute similar rights for
Purchase Rights outstanding under the Plan, then, the Participants’ accumulated Contributions shall
be used to purchase shares of Common Stock within ten (10) business days prior to the Corporate
Transaction under the ongoing Offering, and the Participants’ Purchase Rights under the ongoing
Offering shall terminate immediately after such purchase.


15. AMENDMENT OF THE PLAN.




     (a) The Board at any time, and from time to time, may amend the Plan. However, except as
provided in Section 14 relating to adjustments upon changes in securities and except as to
amendments solely to benefit the administration of the Plan, to take account of a change in
legislation or to obtain or maintain favorable tax, exchange control or regulatory treatment for
Participants or the Company or any Related Corporation, no amendment shall be effective unless
approved by the stockholders of the Company to the extent stockholder approval is necessary for the
Plan to satisfy the requirements of Section 423 of the Code or other applicable laws or
regulations.



     (b) It is expressly contemplated that the Board may amend the Plan in any respect the
Board deems necessary or advisable to provide Employees with the maximum benefits provided or to be
provided under the provisions of the Code and the regulations promulgated thereunder relating to
Employee Stock Purchase Plans or to bring the Plan and/or Purchase Rights into compliance
therewith.



     (c) The rights and obligations under any Purchase Rights granted before amendment of the
Plan shall not be impaired by any amendment of the Plan except: (i)



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with the consent of the person to whom such Purchase Rights were granted, or (ii) as necessary to
comply with any laws or governmental regulations (including, without limitation, the provisions of
the Code and the regulations promulgated thereunder relating to Employee Stock Purchase Plans).


16. TERMINATION OR SUSPENSION OF THE PLAN.




     (a) The Board in its discretion may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate at the time that all of the shares of Common Stock
reserved for issuance under the Plan, as increased and/or adjusted from time to time, have been
issued under the terms of the Plan. No Purchase Rights may be granted under the Plan while the Plan
is suspended or after it is terminated.



     (b) Any benefits, privileges, entitlements and obligations under any Purchase Rights
while the Plan is in effect shall not be impaired by suspension or termination of the Plan except
(i) as expressly provided in the Plan or with the consent of the person to whom such Purchase
Rights were granted, (ii) as necessary to comply with any laws, regulations or listing
requirements, or (iii) as necessary to ensure that the Plan and/or Purchase Rights comply with the
requirements of Section 423 of the Code. Notwithstanding the foregoing, if the Company’s
accountants advise the Company that the accounting treatment of purchases under the Plan will
change or has changed in a
manner that the Company determines is detrimental to its best interests, then the Company may, in
its discretion, take any or all of the following actions: (i) terminate each Offering hereunder
that is then ongoing as of the next Purchase Date (after the purchase of stock on such Purchase
Date) under such Offering; (ii) set a new Purchase Date for each ongoing Offering and terminate
such Offerings after the purchase of stock on such Purchase Date; (iii) amend the Plan and the
ongoing Offering so that such Offering will no longer have an accounting treatment that is
detrimental to the Company’s best interests and (iv) terminate each ongoing Offering and refund any
Contributions (reduced to the extent, if any, such Contributions have been used to acquire shares
of Common Stock) without interest to the participants.


17. EFFECTIVE DATE OF PLAN.




     The Plan shall become effective as determined by the Board, but no Purchase Rights shall be
exercised unless and until the Plan has been approved by the stockholders of the Company within
twelve (12) months before or after the date the Plan is adopted by the Board.


18. MISCELLANEOUS PROVISIONS.




     (a) The Plan and Offering do not constitute an employment contract. Nothing in the Plan
or in the Offering shall in any way alter the at will nature of a Participant’s employment or be
deemed to create in any way whatsoever any obligation on the part of any Participant to continue in
the employ of the Company or a Related Corporation, or on



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the part of the Company or a Related Corporation to continue the employment of a Participant.



     (b) The provisions of the Plan shall be governed by the laws of the State of Delaware
without resort to that state’s conflicts of laws rules.



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