Exhibit 10.1






Exhibit 10.1




AMERICAN REPROGRAPHICS COMPANY




2005 EMPLOYEE STOCK PURCHASE PLAN




Adopted By the Board of Directors January 10, 2005

Approved By Shareholders February 3, 2005

Amended and Restated as of July 30, 2009




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. This Plan includes two components: a Code Section 423 Component and a
Non-423 Component. This Plan shall govern the terms and conditions of grants made under both the
Code Section 423 Component and the Non-423 Component. Except as otherwise indicated, the Non-423
Component will operate and be administered in the same manner as the Code Section 423 Component.



(b) The Company, by means of the Plan, seeks to secure and retain the services of current and
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 granted under the Code Section 423 Component
be considered options issued under an employee stock purchase plan qualifying under Section 423 of
the Code although the Company makes no undertaking or representation to maintain such
qualification.



2. Definitions.




As used in the Plan and any Offering, unless otherwise specified, the following terms have the
meanings set forth below:



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



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



(c) “Code Section 423 Component” means the component of this Plan that is intended to meet the
requirements set forth in Section 423(b) of the Code, as amended, to qualify as an “employee stock
purchase plan” under Section 423 of the Code. The provisions of the Code Section 423 Component
shall be construed, administered and enforced in accordance with Section 423(b), so as to extend
and limit Plan participation in a uniform and nondiscriminatory basis consistent with the
requirements of Section 423 of the Code.



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



(e) “Common Stock” means the common stock of the Company.


 


 









 





(f) “Company” means American Reprographics Company, a Delaware corporation.



(g) “Contributions” means the payroll deductions and other additional payments that a
Participant contributes to fund the exercise of a Purchase Right.



(h) “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, lease, license or other disposition of all or substantially all of the
consolidated assets of the Company;



(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.



(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 Section 6 of 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) “Exchange Act” means the Securities Exchange Act of 1934, as amended.



(m) “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 New York Stock
Exchange, the Fair Market Value of a share of Common Stock shall be the closing sales price for
such stock (or the closing bid, if no sales were reported) as quoted on such exchange (or the
exchange or market with the greatest volume of trading in the Common Stock) on the last Trading Day
prior to the relevant determination date, as reported in The Wall Street Journal or such other
source as the Board deems reliable.



(n) “IPO Date” means the effective date of the initial public offering of the Common Stock.


 


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(o) “Non-423 Component” means a component of this Plan that is not intended to meet the
requirements set forth in Section 423(b) of the Code, as amended. Options may be granted under the
Non-423 Component pursuant to rules, procedures or sub-plans adopted by the Board (or the
Committee) that are designed to achieve tax, securities laws or other objectives for Eligible
Employees and/or the Company.



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



(q) “Offering Date” means a date selected by the Board for an Offering to commence.



(r) “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.



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



(t) “Plan” means this American Reprographics Company 2005 Employee Stock Purchase Plan, which
includes a Code Section 423 Component and a Non-423 Component.



(u) “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.



(v) “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.



(w) “Purchase Right” means an option to purchase shares of Common Stock granted pursuant to
the Plan.



(x) “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.



(y) “Securities Act” means the Securities Act of 1933, as amended.



(z) “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 New York Stock Exchange
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.


 


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(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 and designate which Related Corporations should participate in
the Non-423 Component of 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) To terminate or suspend the Plan as provided in Section 16.



(vi) 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 Offerings made under the 423 Component of the Plan be treated as qualifying
under Section 423(b) of the Code.



(vii) To adopt such procedures and sub-plans as are necessary or appropriate to permit
participation in the Non-423 Component of the Plan by Employees who are foreign nationals or
employed outside the United States.



(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 of the Plan 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 some or all of the powers previously delegated. If
administration is delegated to a Committee, 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(a) relating to adjustments upon changes in Common
Stock, the stock that may be sold pursuant to Purchase Rights granted under the Plan
shall not exceed in the aggregate seven hundred fifty thousand (750,000) shares of Common
Stock.


 


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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 under the Code Section 423 Component 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 (by reference to the provisions of this Plan 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. The Board may from time to time grant or provide for
the grant of rights to purchase Common Stock of the Company under the Non-423 Component. If such
grants are intended to be made under the Non-423 Component, they will be designated as such at the
time of grant and such grants may not comply with the requirements set forth under Section 423 of
the Code.



(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 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.


 


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(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.



(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.


 


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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 fifteen percent (15%), 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. Notwithstanding
anything to the contrary, during any calendar year, no Participant may purchase under this Plan in
excess of the lesser of (i) two thousand five hundred (2,500) shares of Common Stock, or (ii) a
number of shares of Common Stock having an aggregate Fair Market Value (determined on the date of
the purchase(s)) of twenty-five thousand dollars ($25,000).



(d) If the number of shares of Common Stock which might be purchased by all Participants on a
Purchase Date exceeds the number of shares of Common Stock available in the Plan as provided in
Section 4 or the maximum aggregate number of shares of Common Stock that may be purchased on such
Purchase Date pursuant to a limit established by the Board pursuant to Section 7.1(c), the Company
shall make a pro rata allocation of the shares available 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.



(e) 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.



(f) The purchase price of shares of Common Stock acquired pursuant to Purchase Rights under an
Offering on or after June 30, 2009 shall be an amount equal to eighty-five percent (85%) of the
Fair Market Value of the shares of Common Stock on the applicable Purchase Date, rounded up to the
nearest whole cent per share.


 


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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,
provided that payment through means other than payroll deductions shall be permitted only if the
Participant has not already had the maximum permitted amount withheld through payroll deductions
during 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 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 (except as may be required by applicable law, as determined by the
Company, for Participants in the Non-423 Component of the Plan).


 


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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 and such remaining amount is less than the amount required to
purchase one share of Common Stock on the final Purchase Date of an Offering, then such remaining
amount shall be held in such Participant’s account for the purchase of shares of Common Stock under
the next Offering under the Plan, unless such Participant withdraws from such next Offering, as
provided in Section 8(b), or is not eligible to participate in such Offering, as provided in
Section 6, in which case such amount shall be distributed to such Participant after the final
Purchase Date, without interest (except as may be required by applicable law, as determined by the
Company, for Participants in the Non-423 Component of the Plan). If the amount of Contributions
remaining in a Participant’s account after the purchase of shares of Common Stock is at least equal
to the amount required to purchase one (1) whole share of Common Stock on the final Purchase Date
of the 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. 




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.


 


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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 Shareholder. 




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. The Company may decide not to allow
such designations by Participants outside the U.S.



(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. 




(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. (Notwithstanding the
foregoing, 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.”)


 


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(b) In the event of a Corporate Transaction, then: (i) any surviving or acquiring corporation
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 shareholders in the Corporate
Transaction) for those outstanding under the Plan, or (ii) if any surviving or acquiring
corporation 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 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 shareholders of the Company to the extent shareholder 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 that are intended to qualify under Section 423 of the Code 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) 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 qualifying under
Section 423 of the Code). Notwithstanding the foregoing, in the event that the Board determines
that continuation of the Plan or an Offering would result in unfavorable financial accounting
consequences to the Company as a result of a change after the IPO Date in the generally accepted
accounting principles applicable to the Plan, the Board may, in its discretion and without the
consent of any Participant, including with respect to an Offering then in progress: (a) terminate
the Plan or any Offering, (b) accelerate the Purchase Date of any Offering, (c) reduce the discount
applicable to any Purchase Right of any Offering, (d) reduce the maximum number of shares of Common
Stock that may be purchased in any Offering or (e) take any combination of the foregoing actions.



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.


 


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(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 Code Section 423 Component of the Plan and/or Purchase Rights
granted under the Code Section 423 Component of the Plan comply with the requirements of Section
423 of the Code.



17. Effective date of Plan. 




The Plan shall become effective on the IPO Date, but no Purchase Rights shall be exercised
unless and until the Plan has been approved by the shareholders 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 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 law of the State of California without
resort to that state’s conflicts of laws rules.









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