Exhibit
10.1  
	 






		BORLAND
SOFTWARE CORPORATION
1999 EMPLOYEE STOCK PURCHASE PLAN 
	 






		1.        Establishment,
Purpose And Term Of Plan.  
	 






		           1.1      Establishment.  The
Borland Software Corporation 1999 Employee Stock Purchase Plan (the “Plan”)
is hereby established effective as of the date on which it is approved by the
stockholders of the Company (the “Effective Date”).   
	 






		           1.2      Purpose.  The
purpose of the Plan is to advance the interests of Company and its stockholders by
providing an incentive to attract, retain and reward Eligible Employees of the
Participating Company Group and by motivating such persons to contribute to the growth
and profitability of the Participating Company Group. The Plan provides such Eligible
Employees with an opportunity to acquire a proprietary interest in the Company through
the purchase of Stock. The Company intends that the Plan qualify as an “employee
stock purchase plan” under Section 423 of the Code (including any amendments or
replacements of such section), and the Plan shall be so construed.   
	 






		           1.3      Term
of Plan.  The Plan shall continue in effect until the earlier of its
termination by the Board or the date on which all of the shares of Stock available for
issuance under the Plan have been issued.   
	 






		2.        Definitions
And Construction.   
	 






		           2.1      Definitions.  Any
term not expressly defined in the Plan but defined for purposes of Section 423 of the
Code shall have the same definition herein. Whenever used herein, the following terms
shall have their respective meanings set forth below:   
	 






		                      (a)       “Board”  means
the Board of Directors of the Company. If one or more Committees have been appointed by
the Board to administer the Plan, “Board” also means such Committee(s).    
	 






		                      (b)       “Code”  means
the Internal Revenue Code of 1986, as amended, and any applicable regulations promulgated
thereunder.   
	 






		                      (c)       “Committee”  means
a committee of the Board duly appointed to administer the Plan and having such powers as
specified by the Board. Unless the powers of the Committee have been specifically
limited, the Committee shall have all of the powers of the Board granted herein,
including, without limitation, the power to amend or terminate the Plan at any time,
subject to the terms of the Plan and any applicable limitations imposed by law. 
	 






		                      (d)       “Company”  means
Borland Software Corporation, a Delaware corporation, or any successor corporation
thereto. 
	 






		                      (e)       “Compensation”  means,
with respect to any Offering Period, base wages or salary, overtime, bonuses,
commissions, shift differentials, payments for paid time off, payments in lieu of notice,
and compensation deferred under any program or plan, including,  
	 






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		without
limitation, pursuant to Section 401(k) or Section 125 of the Code. Compensation shall be
limited to amounts actually payable in cash or deferred during the Offering Period.
Compensation shall not include moving allowances, payments pursuant to a severance
agreement, termination pay, relocation payments, sign-on bonuses, any amounts directly or
indirectly paid pursuant to the Plan or any other stock purchase or stock option plan, or
any other compensation not included above. 
	 








		                      (f)       “Eligible
Employee”  means an Employee who meets the requirements set forth in Section 5
for eligibility to participate in the Plan. 
	 






		                      (g)       “Employee”  means
a person treated as an employee of a Participating Company for purposes of Section 423 of
the Code. A Participant shall be deemed to have ceased to be an Employee either upon an
actual termination of employment or upon the corporation employing the Participant
ceasing to be a Participating Company. For purposes of the Plan, an individual shall not
be deemed to have ceased to be an Employee while on any military leave, sick leave, or
other bona fide leave of absence approved by the Company of ninety (90) days or less. If
an individual’s leave of absence exceeds ninety (90) days, the individual shall be
deemed to have ceased to be an Employee on the ninety-first (91st) day of such leave
unless the individual’s right to reemployment with the Participating Company Group
is guaranteed either by statute or by contract. The Company shall determine in good faith
and in the exercise of its discretion whether an individual has become or has ceased to
be an Employee and the effective date of such individual’s employment or termination
of employment, as the case may be. For purposes of an individual’s participation in
or other rights, if any, under the Plan as of the time of the Company’s
determination, all such determinations by the Company shall be final, binding and
conclusive, notwithstanding that the Company or any governmental agency subsequently
makes a contrary determination. 
	 






		                      (h)       “Fair
Market Value”  means, as of any date, if the Stock is then listed
on a national or regional securities exchange or market system or is regularly quoted by
a recognized securities dealer, the closing sale price of a share of Stock (or the mean
of the closing bid and asked prices if the Stock is so quoted instead) as quoted on the
Nasdaq National Market, the Nasdaq SmallCap Market or such other national or regional
securities exchange or market system constituting the primary market for the Stock, or by
such recognized securities dealer, as reported in The Wall Street Journal or such other
source as the Company deems reliable. If the relevant date does not fall on a day on
which the Stock has traded on such securities exchange or market system or has been
quoted by such securities dealer, the date on which the Fair Market Value is established
shall be the last day on which the Stock was so traded or quoted prior to the relevant
date, or such other appropriate day as determined by the Board, in its discretion. If, on
the relevant date, the Stock is not then listed on a national or regional securities
exchange or market system or regularly quoted by a recognized securities dealer, the Fair
Market Value of a share of Stock shall be as determined in good faith by the Board. 
	 






		                      (i)       “Offering”  means
an offering of Stock as provided in Section 6. 
	 






		                      (j)       “Offering
Date”  means, for any Offering, the first day of the Offering
Period. 
	 










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		                      (k)       “Offering
Period”  means a period established in accordance with Section
6.1, including an Annual Offering Period and a Half-Year Offering Period as provided in
Section 6.1. 
	 






		                      (l)       “Parent
Corporation”  means any present or future “parent corporation” of
the Company, as defined in Section 424(e) of the Code. 
	 






		                      (m)       “Participant”  means
an Eligible Employee who has become a participant in an Offering Period in accordance
with Section 7 and remains a participant in accordance with the Plan. 
	 






		                      (n)       “Participating
Company”  means the Company or any Parent Corporation or
Subsidiary Corporation designated by the Board as a corporation the Employees of which
may, if Eligible Employees, participate in the Plan. The Board shall have the sole and
absolute discretion to determine from time to time which Parent Corporations or
Subsidiary Corporations shall be Participating Companies. 
	 






		                      (o)       “Participating
Company Group”  means, at any point in time, the Company and all
other corporations collectively which are then Participating Companies. 
	 






		                      (p)       “Purchase
Date”  means, for any Purchase Period, the last day of such period. 
	 






		                      (q)       “Purchase
Period”  means a period established in accordance with Section 6.2. 
	 






		                      (r)       “Purchase
Price”  means the price at which a share of Stock may be purchased
under the Plan, as determined in accordance with Section 9. 
	 






		                      (s)       “Purchase
Right”  means an option granted to a Participant pursuant to the
Plan to purchase such shares of Stock as provided in Section 8, which the Participant may
or may not exercise during the Offering Period in which such option is outstanding. Such
option arises from the right of a Participant to withdraw any accumulated payroll
deductions of the Participant not previously applied to the purchase of Stock under the
Plan and to terminate participation in the Plan at any time during an Offering Period. 
	 






		                      (t)       “Stock”  means
the common stock of the Company, as adjusted from time to time in accordance with Section
4.2. 
	 






		                      (u)       “Subscription
Agreement”  means a written agreement in such form as specified by
the Company, stating an Employee’s election to participate in the Plan and
authorizing payroll deductions under the Plan from the Employee’s Compensation. 
	 






		                      (v)       “Subscription
Date”  means the last business day prior to the Offering Date of
an Offering Period or such earlier date as the Company shall establish. 
	 






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		                      (w)       “Subsidiary
Corporation” means any present or future “subsidiary corporation” of
the Company, as defined in Section 424(f) of the Code. 
	 






		           2.2      Construction.  Captions
and titles contained herein are for convenience only and shall not affect the meaning or
interpretation of any provision of the Plan. Except when otherwise indicated by the
context, the singular shall include the plural and the plural shall include the singular.
Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise.   
	 






		3.        
ADMINISTRATION.  
	 






		           3.1      Administration
by the Board.  The Plan shall be administered by the Board. All questions
of interpretation of the Plan, of any form of agreement or other document employed by the
Company in the administration of the Plan, or of any Purchase Right shall be determined
by the Board and shall be final and binding upon all persons having an interest in the
Plan or the Purchase Right. Subject to the provisions of the Plan, the Board shall
determine all of the relevant terms and conditions of Purchase Rights; provided, however,
that all Participants granted Purchase Rights shall have the same rights and privileges
within the meaning of Section 423(b)(5) of the Code. All expenses incurred in connection
with the administration of the Plan shall be paid by the Company.   
	 






		           3.2      Authority
of Officers.  Any officer of the Company shall have the authority to act on behalf of
the Company with respect to any matter, right, obligation, determination or election that
is the responsibility of or that is allocated to the Company herein, provided that the
officer has apparent authority with respect to such matter, right, obligation,
determination or election.   
	 






		           3.3      Policies
and Procedures Established by the Company.  The Company may, from time to time,
consistent with the Plan and the requirements of Section 423 of the Code, establish,
change or terminate such rules, guidelines, policies, procedures, limitations, or
adjustments as deemed advisable by the Company, in its discretion, for the proper
administration of the Plan, including, without limitation, (a) a minimum payroll
deduction amount required for participation in an Offering, (b) a limitation on the
frequency or number of changes permitted in the rate of payroll deduction during an
Offering, (c) an exchange ratio applicable to amounts withheld in a currency other than
United States dollars, (d) a payroll deduction greater than or less than the amount
designated by a Participant in order to adjust for the Company’s delay or mistake in
processing a Subscription Agreement or in otherwise effecting a Participant’s
election under the Plan or as advisable to comply with the requirements of Section 423 of
the Code, and (e) determination of the date and manner by which the Fair Market Value of
a share of Stock is determined for purposes of administration of the Plan.   
	 






		4.       
SHARES SUBJECT TO PLAN.   
	 






		           4.1      Maximum
Number of Shares Issuable.  Subject to adjustment as provided in Section 4.2, the
maximum aggregate number of shares of Stock that may be issued under the Plan shall be
three million one hundred thousand (3,100,000) and shall consist of authorized but
unissued or reacquired shares of Stock, or any combination thereof. If an outstanding
Purchase    
	 






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		Right
for any reason expires or is terminated or canceled, the shares of Stock allocable to the
unexercised portion of that Purchase Right shall again be available for issuance under
the Plan. 
	 






		           4.2      Adjustments
for Changes in Capital Structure.  In the event of any stock dividend, stock split,
reverse stock split, recapitalization, combination, reclassification or similar change in
the capital structure of the Company, or in the event of any merger (including a merger
effected for the purpose of changing the Company’s domicile), sale of assets or
other reorganization in which the Company is a party, appropriate adjustments shall be
made in the number and class of shares subject to the Plan and each Purchase Right and in
the Purchase Price. If a majority of the shares of the same class as the shares subject
to outstanding Purchase Rights are exchanged for, converted into, or otherwise become
(whether or not pursuant to an Ownership Change Event) shares of another corporation (the
“New Shares”), the Board may unilaterally amend the
outstanding Purchase Rights to provide that such Purchase Rights are exercisable for New
Shares. In the event of any such amendment, the number of shares subject to, and the
Purchase Price of, the outstanding Purchase Rights shall be adjusted in a fair and
equitable manner, as determined by the Board, in its discretion. Notwithstanding the
foregoing, any fractional share resulting from an adjustment pursuant to this Section 4.2
shall be rounded down to the nearest whole number, and in no event may the Purchase Price
be decreased to an amount less than the par value, if any, of the stock subject to the
Purchase Right. The adjustments determined by the Board pursuant to this Section 4.2
shall be final, binding and conclusive.   
	 







		5.       
ELIGIBILITY.  
	 






		           5.1      Employees
Eligible to Participate.  Each Employee of a Participating Company is eligible to
participate in the Plan and shall be deemed an Eligible Employee, except the following:
  
	 






		                      Any
Employee who is customarily employed by the Participating Company Group for less than
twenty (20) hours per week; or  
	 






		                      Any
Employee who is customarily employed by the Participating Company Group for not more than
five (5) months in any calendar year.  
	 






		           5.2      Exclusion
of Certain Stockholders.  Notwithstanding any provision of the Plan to the
contrary, no Employee shall be granted a Purchase Right under the Plan if, immediately
after such grant, the Employee would own or hold options to purchase stock of the Company
or of any Parent Corporation or Subsidiary Corporation possessing five percent (5%) or
more of the total combined voting power or value of all classes of stock of such
corporation, as determined in accordance with Section 423(b)(3) of the Code. For purposes
of this Section 5.2, the attribution rules of Section 424(d) of the Code shall apply in
determining the stock ownership of such Employee.   
	 







		6.       
OFFERINGS.  
	 






		           6.1      Offering
Periods.  Except as otherwise set forth below, the Plan shall be implemented by two
series of Offerings. One series shall be of sequential Offerings of approximately twelve
(12) months duration or such other duration as the Board shall determine    
	 






5
















		(an
“Annual Offering Period”). The second series shall be of
Offerings of approximately six (6) months duration or such other duration as the Board
shall determine (a “Half-Year Offering Period”). Annual Offering
Periods shall commence on or about December 1 of each year and end on or about the first
November 30 occurring thereafter. Half-Year Offering Periods shall commence on or about
June 1 of each year and end on or about the first November 30 occurring thereafter.
However, provided that the Effective Date occurs on or before July 1, 1999, an initial
Offering (the “Initial Offering Period”) shall commence on or
about July 1, 1999 and end on or about November 30, 1999. Notwithstanding the foregoing,
the Board may establish a different duration for one or more Offering Periods or
different commencing or ending dates for such Offering Periods; provided, however, that
no Offering Period may have a duration exceeding twenty-seven (27) months. If the first
or last day of an Offering Period is not a day on which the national securities exchanges
or Nasdaq Stock Market are open for trading, the Company shall specify the trading day
that will be deemed the first or last day, as the case may be, of the Offering Period. 
	 






		           6.2      Purchase
Periods.  Each Annual Offering Period shall consist of two (2) consecutive
Purchase Periods of approximately six (6) months duration, or such other number or
duration as the Board determines. A Purchase Period commencing on or about December 1
shall end on or about the next May 31. A Purchase Period commencing on or about June 1
shall end on or about the next November 30. Each Half-Year Offering Period shall consist
of a single Purchase Period of approximately six (6) months duration coterminous with
such Offering Period. However, provided that the Effective Date occurs on or before July
1, 1999, the Initial Offering Period shall consist of a single Purchase Period ending on
or about November 30, 1999. Notwithstanding the foregoing, the Board may establish a
different duration for one or more Purchase Periods or different commencing or ending
dates for such Purchase Periods. If the first or last day of a Purchase Period is not a
day on which the national securities exchanges or Nasdaq Stock Market are open for
trading, the Company shall specify the trading day that will be deemed the first or last
day, as the case may be, of the Purchase Period.   
	 







		7.       
PARTICIPATION IN THE PLAN.  
	 






		           7.1      Initial
Participation.  An Eligible Employee may become a Participant in an Offering Period
by delivering a properly completed Subscription Agreement to the office designated by the
Company not later than the close of business for such office on the Subscription Date
established by the Company for that Offering Period. An Eligible Employee who does not
deliver a properly completed Subscription Agreement to the Company’s designated
office on or before the Subscription Date for an Offering Period shall not participate in
the Plan for that Offering Period or for any subsequent Offering Period unless the
Eligible Employee subsequently delivers a properly completed Subscription Agreement to
the appropriate office of the Company on or before the Subscription Date for such
subsequent Offering Period. An Employee who becomes an Eligible Employee after the
Offering Date of an Offering Period shall not be eligible to participate in that Offering
Period but may participate in any subsequent Offering Period provided the Employee is
still an Eligible Employee as of the Offering Date of such subsequent Offering Period.
  
	 






6










		           7.2      Continued
Participation.  A Participant shall automatically participate in the next Offering
Period commencing immediately after the final Purchase Date of each Offering Period in
which the Participant participates provided that the Participant remains an Eligible
Employee on the Offering Date of the new Offering Period and has not either (a) withdrawn
from the Plan pursuant to Section 12.1 or (b) terminated employment as provided in
Section 12.4. A Participant who may automatically participate in a subsequent Offering
Period, as provided in this Section, is not required to deliver any additional
Subscription Agreement for the subsequent Offering Period in order to continue
participation in the Plan. However, a Participant may deliver a new Subscription
Agreement for a subsequent Offering Period in accordance with the procedures set forth in
Section 7.1 if the Participant desires to change any of the elections contained in the
Participant’s then effective Subscription Agreement. Eligible Employees may not
participate simultaneously in more than one Offering under the Plan. Accordingly, a
Participant in an Annual Offering Period may not participate simultaneously in the
Half-Year Offering Period commencing during the term of an Annual Offering Period.   
	 






		8.       
RIGHT TO PURCHASE SHARES.   
	 






		           8.1      Grant
of Purchase Right.  Except as set forth below, on the Offering Date of each
Offering Period, each Participant in that Offering Period shall be granted automatically
a Purchase Right determined as follows:    
	 






		                      (a)       Annual
Offering Period.  Each Purchase Right granted on the Offering Date of
an Annual Offering Period shall consisting of an option to purchase the lesser of (i)
that number of whole shares of Stock determined by dividing Twenty-Five Thousand Dollars
($25,000) by the Fair Market Value of a share of Stock on the Offering Date or (ii) two
thousand five hundred (2,500) shares of Stock. 
	 






		                      (b)       Half-Year
Offering Period.  Each Purchase Right granted on the Offering Date of a Half-Year
Offering Period shall consist of an option to purchase the lesser of (i) that number of
whole shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars
($12,500) by the Fair Market Value of a share of Stock on the Offering Date or (ii) one
thousand two hundred fifty (1,250) shares of Stock. 
	 






		                      (c)       Initial
Offering Period.  Each Purchase Right granted on the Offering Date of the Initial
Offering Period shall consist of an option to purchase the lesser of (i) that number of
whole shares of Stock determined by dividing Twelve Thousand Five Hundred Dollars
($12,500) by the Fair Market Value of a share of Stock on the Offering Date or (ii) one
thousand two hundred fifty (1,250) shares of Stock. 
	 






		No
Purchase Right shall be granted on an Offering Date to any person who is not, on such
Offering Date, an Eligible Employee.   
	 






		           8.2      Pro
Rata Adjustment of Purchase Right.  Notwithstanding the provisions of
Section 8.1, if the Board establishes an Offering Period (other than the Initial Offering
Period) of any duration other than twelve months or six months, then (a) the dollar
amount in Section 8.1 shall be determined by multiplying $2,083.33 by the number of
months (rounded to the nearest whole month) in the Offering Period and rounding to the
nearest whole dollar, and (b) the share    
	 






7

















		amount
in Section 8.1 shall be determined by multiplying 208.33 shares by the number of months
(rounded to the nearest whole month) in the Offering Period and rounding to the nearest
whole share. 
	 






		           8.3      Calendar
Year Purchase Limitation.  Notwithstanding any provision of the Plan to the contrary,
no Participant shall be granted a Purchase Right which permits his or her right to
purchase shares of Stock under the Plan to accrue at a rate which, when aggregated with
such Participant’s rights to purchase shares under all other employee stock purchase
plans of a Participating Company intended to meet the requirements of Section 423 of the
Code, exceeds Twenty-Five Thousand Dollars ($25,000) in Fair Market Value (or such other
limit, if any, as may be imposed by the Code) for each calendar year in which such
Purchase Right is outstanding at any time. For purposes of the preceding sentence, the
Fair Market Value of shares purchased during a given Offering Period shall be determined
as of the Offering Date for such Offering Period. The limitation described in this
Section 8.3 shall be applied in conformance with applicable regulations under Section
423(B)(8) of the Code.   
	 






		9.       
PURCHASE PRICE.  
	 






		           The
Purchase Price at which each share of Stock may be acquired in an Offering Period upon
the exercise of all or any portion of a Purchase Right shall be established by the Board;
provided, however, that the Purchase Price shall not be less than eighty five percent
(85%) of the lesser of (a) the Fair Market Value of a share of Stock on the Offering Date
of the Offering Period or (b) the Fair Market Value of a share of Stock on the Purchase
Date. Unless otherwise provided by the Board prior to the commencement of an Offering
Period, the Purchase Price for that Offering Period shall be eighty five percent (85%) of
the lesser of (a) the Fair Market Value of a share of Stock on the Offering Date of the
Offering Period, or (b) the Fair Market Value of a share of Stock on the Purchase Date.
  
	 






		10.     
ACCUMULATION OF PURCHASE PRICE THROUGH PAYROLL DEDUCTION.  
	 






		           Shares
of Stock acquired pursuant to the exercise of all or any portion of a Purchase Right may
be paid for only by means of payroll deductions from the Participant’s Compensation
accumulated during the Offering Period for which such Purchase Right was granted, subject
to the following:   
	 






		           10.1      Amount
of Payroll Deductions.  Except as otherwise provided herein, the amount to be deducted
under the Plan from a Participant’s Compensation on each payday during an Offering
Period shall be determined by the Participant’s Subscription Agreement. The
Subscription Agreement shall set forth the percentage of the Participant’s
Compensation to be deducted on each payday during an Offering Period in whole percentages
of not less than one percent (1%) (except as a result of an election pursuant to Section
10.3 to stop payroll deductions effective following the first payday during an Offering)
or more than fifteen percent (15%). Notwithstanding the foregoing, the Board may change
the foregoing limits on payroll deductions effective as of any future Offering Date.
  
	 






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		           10.2      Commencement
of Payroll Deductions.  Payroll deductions shall commence on the first payday
following the Offering Date and shall continue to the end of the Offering Period unless
sooner altered or terminated as provided herein.   
	 






		           10.3      Election
to Change or Stop Payroll Deductions.  During an Offering Period, a
Participant may elect to increase or decrease the rate of or to stop deductions from his
or her Compensation by delivering to the Company’s designated office an amended
Subscription Agreement authorizing such change on or before the “Change Notice Date.” The
“Change Notice Date” shall be a date prior to the beginning of the
first pay period for which such election is to be effective as established by the Company
from time to time and announced to the Participants. A Participant who elects, effective
following the first payday of an Offering Period, to decrease the rate of his or her
payroll deductions to zero percent (0%) shall nevertheless remain a Participant in the
current Offering Period unless such Participant withdraws from the Plan as provided in
Section 12.1.   
	 






		           10.4      Administrative
Suspension of Payroll Deductions.  The Company may, in its sole discretion, suspend a
Participant’s payroll deductions under the Plan as the Company deems advisable to
avoid accumulating payroll deductions in excess of the amount that could reasonably be
anticipated to purchase the maximum number of shares of Stock permitted (a) under the
Participant’s Purchase Right or (b) during a calendar year under the limit set forth
in Section 8.3. Payroll deductions shall be resumed at the rate specified in the
Participant’s then effective Subscription Agreement at the beginning, respectively,
of (a) the next Offering Period or (b) the next Purchase Period the Purchase Date of
which falls in the following calendar year, unless the Participant has either withdrawn
from the Plan as provided in Section 12.1 or has ceased to be an Eligible Employee.   
	 






		           10.5      Participant
Accounts.  Individual bookkeeping accounts shall be maintained for each Participant.
All payroll deductions from a Participant’s Compensation shall be credited to such
Participant’s Plan account and shall be deposited with the general funds of the
Company. All payroll deductions received or held by the Company may be used by the
Company for any corporate purpose.   
	 






		           10.6      No
Interest Paid.  Interest shall not be paid on sums deducted from a Participant’s
Compensation pursuant to the Plan.   
	 






		           10.7      Voluntary
Withdrawal from Plan Account.  A Participant may withdraw all or any portion of the
payroll deductions credited to his or her Plan account and not previously applied toward
the purchase of Stock by delivering to the Company’s designated office a written
notice on a form provided by the Company for such purpose. A Participant who withdraws
the entire remaining balance credited to his or her Plan account shall be deemed to have
withdrawn from the Plan in accordance with Section 12.1. Amounts withdrawn shall be
returned to the Participant as soon as practicable after the Company’s receipt of
the notice of withdrawal and may not be applied to the purchase of shares in any Offering
under the Plan. The Company may from time to time establish or change limitations on the
frequency of withdrawals permitted under this Section, establish a minimum dollar amount
that must be retained in the Participant’s Plan account, or terminate the withdrawal
right provided by this Section.   
	 






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		11.     
PURCHASE OF SHARES.  
	 






		           11.1      Exercise
of Purchase Right.  On each Purchase Date of an Offering Period, each Participant who
has not withdrawn from the Plan and whose participation in the Offering has not otherwise
terminated before such Purchase Date shall automatically acquire pursuant to the exercise
of the Participant’s Purchase Right the number of whole shares of Stock determined
by dividing (a) the total amount of the Participant’s payroll deductions accumulated
in the Participant’s Plan account during the Offering Period and not previously
applied toward the purchase of Stock by (b) the Purchase Price. However, in no event
shall the number of shares purchased by the Participant during an Offering Period exceed
the number of shares subject to the Participant’s Purchase Right. No shares of Stock
shall be purchased on a Purchase Date on behalf of a Participant whose participation in
the Offering or the Plan has terminated before such Purchase Date.   
	 






		           11.2      Pro
Rata Allocation of Shares.  If the number of shares of Stock which might be purchased
by all Participants in the Plan on a Purchase Date exceeds the number of shares of Stock
available in the Plan as provided in Section 4.1, the Company shall make a pro rata
allocation of the remaining shares in as uniform a manner as practicable and as the
Company determines to be equitable. Any fractional share resulting from such pro rata
allocation to any Participant shall be disregarded.   
	 






		           11.3      Delivery
of Certificates.  As soon as practicable after each Purchase Date, the Company shall
arrange the delivery to each Participant, as appropriate, of a certificate representing
the shares acquired by the Participant on such Purchase Date; provided that the Company
may deliver such shares to a broker designated by the Company that will hold such shares
for the benefit of the Participant. Shares to be delivered to a Participant under the
Plan shall be registered in the name of the Participant, or, if requested by the
Participant, in the name of the Participant and his or her spouse, or, if applicable, in
the names of the heirs of the Participant.   
	 






		           11.4      Return
of Cash Balance.  Any cash balance remaining in a Participant’s Plan account
following any Purchase Date shall be refunded to the Participant as soon as practicable
after such Purchase Date. However, if the cash balance to be returned to a Participant
pursuant to the preceding sentence is less than the amount that would have been necessary
to purchase an additional whole share of Stock on such Purchase Date, the Company may
retain the cash balance in the Participant’s Plan account to be applied toward the
purchase of shares of Stock in the subsequent Purchase Period or Offering Period, as the
case may be.   
	 






		           11.5      Tax
Withholding.  At the time a Participant’s Purchase Right is exercised, in whole
or in part, or at the time a Participant disposes of some or all of the shares of Stock
he or she acquires under the Plan, the Participant shall make adequate provision for the
federal, state, local and foreign tax withholding obligations, if any, of the
Participating Company Group which arise upon exercise of the Purchase Right or upon such
disposition of shares, respectively. The Participating Company Group may, but shall not
be obligated to, withhold from the Participant’s compensation the amount necessary
to meet such withholding obligations.   
	 






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		           11.6      Expiration
of Purchase Right.  Any portion of a Participant’s Purchase Right remaining
unexercised after the end of the Offering Period to which the Purchase Right relates
shall expire immediately upon the end of the Offering Period.   
	 






		           11.7      Provision
of Reports and Stockholder Information to Participants.  Each Participant who has
exercised all or part of his or her Purchase Right shall receive, as soon as practicable
after the Purchase Date, a report of such Participant’s Plan account setting forth
the total payroll deductions accumulated prior to such exercise, the number of shares of
Stock purchased, the Purchase Price for such shares, the date of purchase and the cash
balance, if any, remaining immediately after such purchase that is to be refunded or
retained in the Participant’s Plan account pursuant to Section 11.4. The report
required by this Section may be delivered in such form and by such means, including by
electronic transmission, as the Company may determine. In addition, each Participant
shall be provided information concerning the Company equivalent to that information
provided generally to the Company’s common stockholders.   
	 






		12.     
WITHDRAWAL FROM OFFERING OR PLAN.  
	 






		           12.1      Voluntary
Withdrawal from the Plan.  A Participant may withdraw from the Plan by signing and
delivering to the Company’s designated office a written notice of withdrawal on a
form provided by the Company for such purpose. Such withdrawal may be elected at any time
prior to the end of an Offering Period; provided, however, that if a Participant
withdraws from the Plan after a Purchase Date, the withdrawal shall not affect shares of
Stock acquired by the Participant on such Purchase Date. A Participant who voluntarily
withdraws from the Plan is prohibited from resuming participation in the Plan in the same
Offering from which he or she withdrew, but may participate in any subsequent Offering by
again satisfying the requirements of Sections 5 and 7.1. The Company may impose, from
time to time, a requirement that the notice of withdrawal from the Plan be on file with
the Company’s designated office for a reasonable period prior to the effectiveness
of the Participant’s withdrawal.   
	 






		           12.2      Automatic
Withdrawal from an Offering.  If the Fair Market Value of a share of Stock on the
Offering Date of the Half-Year Offering Period commencing immediately following the first
Purchase Date of the concurrent Annual Offering Period is less than the Fair Market Value
of a share of Stock on the Offering Date of such concurrent Annual Offering Period, then
every Participant in such concurrent Annual Offering Period automatically shall be (a)
withdrawn from the concurrent Annual Offering Period after the acquisition of shares of
Stock on the Purchase Date and (b) enrolled in the new Half-Year Offering Period
effective on its Offering Date. A Participant may elect not to be automatically withdrawn
from an Annual Offering Period pursuant to this Section 12.2 by delivering to the Company’s
designated office not later than the close of business on Offering Date of the new
Half-Year Offering Period a written notice indicating such election.   
	 






		           12.3      Return
of Payroll Deductions.  Upon a Participant’s voluntary withdrawal from the Plan
pursuant to Sections 12.1 or automatic withdrawal from an Offering pursuant to Section
12.2, the Participant’s accumulated payroll deductions which have not been applied
toward the purchase of shares of Stock (except, in the case of an automatic withdrawal
pursuant to Section 12.2, for an amount necessary to purchase an additional whole share
as provided in Section 11.4)    
	 






11









		shall
be refunded to the Participant as soon as practicable after the withdrawal, without the
payment of any interest, and the Participant’s interest in the Plan or the Offering,
as applicable, shall terminate. Such accumulated payroll deductions to be refunded in
accordance with this Section may not be applied to any other Offering under the Plan. 
	 






		           12.4      Termination
Of Employment Or Eligibility.  Upon a Participant’s ceasing, prior to a Purchase
Date, to be an Employee of the Participating Company Group for any reason, including
retirement, disability or death, or upon the failure of a Participant to remain an
Eligible Employee, the Participant’s participation in the Plan shall terminate
immediately. In such event, the Participant’s accumulated payroll deductions which
have not been applied toward the purchase of shares shall, as soon as practicable, be
returned to the Participant or, in the case of the Participant’s death, to the
Participant’s legal representative, and all of the Participant’s rights under
the Plan shall terminate. Interest shall not be paid on sums returned pursuant to this
Section 12.4. A Participant whose participation has been so terminated may again become
eligible to participate in the Plan by satisfying the requirements of Sections 5 and 7.1.
  
	 






		13.     
TERMINATION OF PLAN.  
	 






		           If
the Company’s accountants advise the Company that the accounting treatment of
purchases under the Plan will change in a manner that the Board determines is detrimental
to the best interests of the Company, then the Board 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
each ongoing Offering so that such Offerings will no longer have an accounting treatment
that is detrimental to the Company’s best interests; (iv) terminate each ongoing
Offering and refund any money contributed back to the participants.   
	 






		14.     
CHANGE IN CONTROL.  
	 






		           14.1   
Definitions.  
	 






		                      (a)        An
“Ownership Change Event” shall be deemed to have occurred if any
of the following occurs with respect to the Company: (i) the direct or indirect sale or
exchange in a single or series of related transactions by the stockholders of the Company
of more than fifty percent (50%) of the voting stock of the Company; (ii) a merger or
consolidation in which the Company is a party; (iii) the sale, exchange, or transfer of
all or substantially all of the assets of the Company; or (iv) a liquidation or
dissolution of the Company. 
	 






		                      (b)        A
“Change in Control” shall mean an Ownership Change Event or a
series of related Ownership Change Events (collectively, the “Transaction”)
wherein the stockholders of the Company immediately before the Transaction do not retain
immediately after the Transaction, in substantially the same proportions as their
ownership of shares of the Company’s voting stock immediately before the
Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of
the total combined voting power of the 
	 






12
















		outstanding voting stock of the Company or the corporation or corporations to which
the assets of the Company were transferred (the “Transferee Corporation(s)”),
as the case may be. For purposes of the preceding sentence, indirect beneficial ownership
shall include, without limitation, an interest resulting from ownership of the voting
stock of one or more corporations which, as a result of the Transaction, own the Company
or the Transferee Corporation(s), as the case may be, either directly or through one or
more subsidiary corporations. The Board shall have the right to determine whether
multiple sales or exchanges of the voting stock of the Company or multiple Ownership
Change Events are related, and its determination shall be final, binding and conclusive. 
	 






		           14.2      Effect
of Change in Control on Purchase Rights.  In the event of a Change in Control, the
surviving, continuing, successor, or purchasing corporation or parent corporation
thereof, as the case may be (the “Acquiring Corporation”), may assume the
Company’s rights and obligations under the Plan. If the Acquiring Corporation elects
not to assume the Company’s rights and obligations under outstanding Purchase
Rights, the Purchase Date of the then current Purchase Period shall be accelerated to a
date before the date of the Change in Control specified by the Board, but the number of
shares of Stock subject to outstanding Purchase Rights shall not be adjusted. All
Purchase Rights which are neither assumed by the Acquiring Corporation in connection with
the Change in Control nor exercised as of the date of the Change in Control shall
terminate and cease to be outstanding effective as of the date of the Change in Control.
  
	 






		15.     
NONTRANSFERABILITY OF PURCHASE RIGHTS.  
	 






		           Neither
payroll deductions credited to a Participant’s Plan account nor a Participant’s
Purchase Right may be assigned, transferred, pledged or otherwise disposed of in any
manner other than as provided by the Plan or by will or the laws of descent and
distribution. Any such attempted assignment, transfer, pledge or other disposition shall
be without effect, except that the Company may treat such act as an election to withdraw
from the Plan as provided in Section 12.1. A Purchase Right shall be exercisable during
the lifetime of the Participant only by the Participant.   
	 






		16.     
COMPLIANCE WITH SECURITIES LAW.  
	 






		           The
issuance of shares under the Plan shall be subject to compliance with all applicable
requirements of federal, state and foreign law with respect to such securities. A
Purchase Right may not be exercised if the issuance of shares upon such exercise would
constitute a violation of any applicable federal, state or foreign securities laws or
other law or regulations or the requirements of any securities exchange or market system
upon which the Stock may then be listed. In addition, no Purchase Right may be exercised
unless (a) a registration statement under the Securities Act of 1933, as amended, shall
at the time of exercise of the Purchase Right be in effect with respect to the shares
issuable upon exercise of the Purchase Right, or (b) in the opinion of legal counsel to
the Company, the shares issuable upon exercise of the Purchase Right may be issued in
accordance with the terms of an applicable exemption from the registration requirements
of said Act. The inability of the Company to obtain from any regulatory body having
jurisdiction the authority, if any, deemed by the Company’s legal counsel to be
necessary    
	 






13









		to
the lawful issuance and sale of any shares under the Plan shall relieve the Company of
any liability in respect of the failure to issue or sell such shares as to which such
requisite authority shall not have been obtained. As a condition to the exercise of a
Purchase Right, the Company may require the Participant to satisfy any qualifications
that may be necessary or appropriate, to evidence compliance with any applicable law or
regulation, and to make any representation or warranty with respect thereto as may be
requested by the Company.   
	 






		17.     
RIGHTS AS A STOCKHOLDER AND EMPLOYEE.  
	 






		           A
Participant shall have no rights as a stockholder by virtue of the Participant’s
participation in the Plan until the date of the issuance of a certificate for the shares
purchased pursuant to the exercise of the Participant’s Purchase Right (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions or other
rights for which the record date is prior to the date such certificate is issued, except
as provided in Section 4.2. Nothing herein shall confer upon a Participant any right to
continue in the employ of the Participating Company Group or interfere in any way with
any right of the Participating Company Group to terminate the Participant’s
employment at any time.   
	 






		18.     
LEGENDS.  
	 






		           The
Company may at any time place legends or other identifying symbols referencing any
applicable federal, state or foreign securities law restrictions or any provision
convenient in the administration of the Plan on some or all of the certificates
representing shares of Stock issued under the Plan. The Participant shall, at the request
of the Company, promptly present to the Company any and all certificates representing
shares acquired pursuant to a Purchase Right in the possession of the Participant in
order to carry out the provisions of this Section. Unless otherwise specified by the
Company, legends placed on such certificates may include but shall not be limited to the
following:   
	 






		           “THE
SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE REGISTERED
HOLDER UPON THE PURCHASE OF SHARES UNDER AN EMPLOYEE STOCK PURCHASE PLAN AS DEFINED IN
SECTION 423 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. THE TRANSFER AGENT FOR THE
SHARES EVIDENCED HEREBY SHALL NOTIFY THE CORPORATION IMMEDIATELY OF ANY TRANSFER OF THE
SHARES BY THE REGISTERED HOLDER HEREOF. THE REGISTERED HOLDER SHALL HOLD ALL SHARES
PURCHASED UNDER THE PLAN IN THE REGISTERED HOLDER’S NAME (AND NOT IN THE NAME OF ANY
NOMINEE).”  
	 






		19.     
NOTIFICATION OF DISPOSITION OF SHARES.  
	 






		           The
Company may require the Participant to give the Company prompt notice of any disposition
of shares acquired by exercise of a Purchase Right within two years from the date of
granting such Purchase Right or one year from the date of exercise of such Purchase
Right. The Company may require that until such time as a Participant disposes of shares
acquired upon exercise of a Purchase Right, the Participant shall hold all such shares in
the Participant’s name    
	 






14









		(or,
if elected by the Participant, in the name of the Participant and his or her spouse but
not in the name of any nominee) until the lapse of the time periods with respect to such
Purchase Right referred to in the preceding sentence. The Company may direct that the
certificates evidencing shares acquired by exercise of a Purchase Right refer to such
requirement to give prompt notice of disposition. 
	 






		20.     
NOTICES.  
	 






		           All
notices or other communications by a Participant to the Company under or in connection
with the Plan shall be deemed to have been duly given when received in the form specified
by the Company at the location, or by the person, designated by the Company for the
receipt thereof.   
	 






		21.     
INDEMNIFICATION.  
	 






		           In
addition to such other rights of indemnification as they may have as members of the Board
or officers or employees of the Participating Company Group, members of the Board and any
officers or employees of the Participating Company Group to whom authority to act for the
Board or the Company is delegated shall be indemnified by the Company against all
reasonable expenses, including attorneys’ fees, actually and necessarily incurred in
connection with the defense of any action, suit or proceeding, or in connection with any
appeal therein, to which they or any of them may be a party by reason of any action taken
or failure to act under or in connection with the Plan, or any right granted hereunder,
and against all amounts paid by them in settlement thereof (provided such settlement is
approved by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in relation to
matters as to which it shall be adjudged in such action, suit or proceeding that such
person is liable for gross negligence, bad faith or intentional misconduct in duties;
provided, however, that within sixty (60) days after the institution of such action, suit
or proceeding, such person shall offer to the Company, in writing, the opportunity at its
own expense to handle and defend the same.   
	 






		22.     
AMENDMENT OR TERMINATION OF THE PLAN.  
	 






		           The
Board may at any time amend or terminate the Plan, except that (a) such termination shall
not affect Purchase Rights previously granted under the Plan, except as permitted under
the Plan, and (b) no amendment may adversely affect a Purchase Right previously granted
under the Plan (except to the extent permitted by the Plan or as may be necessary to
qualify the Plan as an employee stock purchase plan pursuant to Section 423 of the Code
or to obtain qualification or registration of the shares of Stock under applicable
federal, state or foreign securities laws). In addition, an amendment to the Plan must be
approved by the stockholders of the Company within twelve (12) months of the adoption of
such amendment if such amendment would authorize the sale of more shares than are
authorized for issuance under the Plan or would change the definition of the corporations
that may be designated by the Board as Participating Companies.   
	 






15