Document:

V-Kernel 2007 Equity Incentive Plan

 Exhibit 4.5 

 
 

 
 V-KERNEL CORPORATION 
 2007 Equity Incentive Plan 
 This Plan (the “Plan”) of V-Kernel
Corporation (the “Company”) provides that Awards, as defined below, for up to 15,391,529 shares (the “Shares”) of the Company’s Common Stock, par value $.01 per share (the “Stock”), may be granted to employees of
the Company and its subsidiaries, as defined below, and to others who are in a position to make significant contributions to the success of the Company and its subsidiaries. Options as defined below granted pursuant to the Plan may be either
incentive stock options (“Incentive Options”) as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), or options that are not Incentive Options (“Nonqualified Options”, and together
with the Incentive Options, the “Options”), or both. 
 1. DEFINITIONS. 

As used in the Plan: 
 “Award” means any Option or Restricted Stock awarded under the Plan. 

“Board” shall have the meaning assigned thereto in Section 3(a) hereof. 

“Code” shall have the meaning assigned thereto in the preamble hereof. 

“Committee” shall have the meaning assigned thereto in Section 3(b) hereof. 

“Incentive Options” shall have the meaning assigned thereto in the preamble hereof. 

“Nonqualified Options” shall have the meaning assigned thereto in the preamble hereof. 

“Options” shall have the meaning assigned thereto in the preamble hereof. 

“Plan” means this 2007 Equity Incentive Plan, as the same may be amended from time to time. 

“Participant” means a person selected by the Board to receive an Award under the Plan. 

“Restricted Stock” means shares of Common Stock awarded to a Participant under Section 14. 

“Shares” shall have the meaning assigned thereto in the preamble hereof. 

“Stock” shall have the meaning assigned thereto in the preamble hereof. 

 2.     PURPOSE. The purpose of the Plan is to attract and
retain employees and others who are in a position to contribute significantly to the success of the Company, to reward such contributions, and to encourage Participants to advance the long term interests of the Company through ownership of its
Stock. 
 3.     ADMINISTRATION. 

(a)   Board of Directors. The Plan shall be administered by the Board of Directors of the Company (the
“Board”). The Board, subject to the express provisions of the Plan, shall determine those persons to be granted Awards, the times when Awards shall be granted, the number of Shares subject to each Award, and the terms and conditions of
each Award, including whether each Option is an Incentive Option or a Nonqualified Option. The Board shall establish the form of instruments granting Awards and any other instruments under the Plan, and the rules and regulations for the
administration of the Plan, and may amend and rescind such instruments, rules and regulations. The Board shall interpret the Plan and decide any questions and settle all controversies and disputes that may arise in connection with the Plan, and such
determinations of the Board shall be conclusive and shall bind all parties. Subject to Section 18, the Board may, both generally and in particular instances, (i) waive compliance by a Participant with any obligation to be performed under
an Award and waive any condition or provision of an Award, and (ii) accelerate the exercisability of any Option granted under the Plan, except that in the case of an Incentive Option the Board may not (other than in accordance with
Section 6) grant any such waiver if such waiver would cause the Incentive Option to no longer qualify as an Incentive Option under Section 422 of the Code. 
 (b)   Committee. The Board may, in its discretion, delegate its powers with respect to the Plan to an Equity Incentive Plan Committee (the “Committee”), in which event all
references to the Board hereunder shall be deemed to refer to the Committee. The Committee shall be appointed by the Board and shall consist of at least two persons. A majority of the members of the Committee shall constitute a quorum, and all
determinations of the Committee shall be made by a majority of its members. Any determination of the Committee under the Plan may be made without notice or meeting of the Committee by a writing signed by all of the members of the Committee.

 (c)   Public Company Committee. From and after the date that is six months prior to the date of the
first registration of an equity security of the Company under Section 12 of the Securities and Exchange Act of 1934, as amended, and with respect to the participation of any officer or director in the Plan, his or her selection as a
Participant, the number of Option shares or Restricted Stock shares to be allocated to such officer or director, the award price and exercise price of such Award, as applicable, and all other terms and conditions of such Award shall be determined
by, or only in accordance with, the recommendations of a Committee, each of the members of which shall be a director of the Company and each of whom shall be disinterested, as such term is defined from time to time in Rule 16b-3 promulgated under
the Securities Exchange Act of 1934, and each of whom shall be an outside Director, as defined in Section 162(m) of the Code and related legislative history. 

  
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 4.     EFFECTIVE DATE AND TERM. The Plan shall become
effective upon adoption by the Board or approval by the stockholders by at least a majority vote at a duly held meeting (or by written consent as provided by applicable law), whichever is earlier, but shall not become effective unless stockholder
approval is obtained within twelve (12) months before or after the adoption of the Plan by the Board. The Board may grant Awards under the Plan prior to such approval, but any such Award shall become effective as of the date of grant only upon
such approval and, accordingly, no Option may be exercisable prior to such approval. The Plan shall terminate ten years after its effective date. 
 5.     SHARES SUBJECT TO THE PLAN. The Shares shall be reserved for issuance upon the exercise of Options and issuance of Restricted Stock granted under the Plan. Shares
subject to an Award which expires or is terminated may again be subjected to an Award under the Plan. Shares delivered under the Plan may be authorized but unissued Stock or treasury Stock. No fractional Shares shall be issued under the Plan.

 6.     CHANGES IN CAPITAL STOCK. In the event of a stock dividend, stock split or combination
of shares, recapitalization or other change in the Company’s capital stock, the number and kind of shares of stock or securities of the Company subject to Awards then outstanding or subsequently granted under the Plan, the maximum number of
shares or securities that may be delivered under the Plan, the award and exercise price, and other relevant provisions shall be adjusted appropriately in a manner determined by the Board to be equitable, whose determination shall be binding. The
Board may also adjust the number of Shares subject to outstanding Awards, the award and exercise price of any outstanding Award and the terms of outstanding Awards to take into consideration material changes in accounting practices or principles,
consolidations or mergers, acquisitions or dispositions of stock or property or any other event if it is determined by the Board that such adjustment is appropriate to avoid distortion in the operation of the Plan, provided that no such adjustment
shall be made in the case of an Incentive Option if it would constitute a modification, extension or renewal of the option within the meaning of Section 424(h) of the Code, unless the Participant consents. 

7.     ELIGIBILITY. All employees of the Company and its subsidiaries, as well as those other persons or
entities who, in the opinion of the Board, are in a position to contribute significantly to the success of the Company or its subsidiaries, shall be eligible to receive Awards under the Plan. A “subsidiary” for purposes of the Plan shall
be a subsidiary corporation as defined in Section 424(f) of the Code. Incentive Options shall be granted only to “employees” as defined in the applicable provisions of the Code and regulations thereunder. Receipt of Awards under the
Plan or of awards under any other employee benefit plan of the Company or any of its subsidiaries shall not preclude an employee from receiving Awards or additional Awards under the Plan. In granting Awards the Board may include or exclude previous
participants in the Plan as the Board may determine. 

  
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 8.     TERMS AND CONDITIONS OF OPTIONS. 

(a)   Number of Options. The aggregate fair market value (determined as of the time of grant) of the Shares with
respect to which Incentive Options are exercisable for the first time by an employee during any calendar year (under the Plan and all other stock option plans of the Company or its subsidiaries or any parent corporation) shall not exceed $
100,000.00. 
 (b)   Exercise Price. The exercise price of each Option shall be determined by the Board
but, in the case of an Incentive Option, shall not be less than 100% (110% in the case of an Incentive Option granted to a ten-percent stockholder) of the fair market value of the stock subject to the Option on the date of grant; nor shall the
exercise price of any Option be less, in the case of an original issue of authorized stock, than par value. For this purpose, (i) “fair market value” shall be determined by the Board in good faith on a basis consistent with the
provisions of Section 422 of the Code and the regulations promulgated thereunder, and (ii) “ten percent stockholder” shall mean any employee who at the time of grant owns directly, or is deemed to own by reason of the attribution
rules set forth in Section 424(d) of the Code, more than 10% of the total combined voting power of all classes of stock of the Company or of any of its parent or subsidiary corporations. 

(c)   Duration, Vesting and Conditions of Exercise. Each Option shall be exercisable during such period or periods
as the Board may determine, but in no case after the expiration of ten years (five years in the case of an Incentive Option granted to a “ten percent stockholder” as defined in (b) above) from the date of grant. In the discretion of
the Board, Options may be exercisable (i) in full upon grant or (ii) over or after a period of time conditioned on satisfaction of certain Company, division, group, office, individual or other performance criteria, including the continued
performance of services to the Company or its subsidiaries. In the case of an Option not immediately exercisable in full, the Board may at any time accelerate the time at which all or any part of the Option may be exercised. 

9.     EXERCISE OF OPTIONS. Any exercise of an Option shall be in writing pursuant to a written
instrument in the form prescribed by the Board, signed by the proper person and delivered to the Company, accompanied by (a) such documents as may be required by the Plan, by such written instrument, or by the Board, and (b) payment
as required by such written instrument for the number of Shares for which the Option is exercised. In addition, each exercise of an Option shall be subject to such additional conditions as may be required by the Board, including without limitation
those described in Section 10 of the Plan. No exercise of an Option shall be effective, and the Company shall not be obligated to deliver any Shares, until all requirements and conditions for exercise have been met to the satisfaction of the
Board. 
 10.     PAYMENT FOR SHARES. 

(a)      Exercise Price. The exercise price for Shares purchased under an option shall be paid as
follows: (i) in cash or by certified check, bank draft or money order payable to the order of the Company; (ii) if permitted by the terms of the instrument granting the option, by the delivery of shares of Stock having a fair market value
(as determined by the Board in good faith in its reasonable discretion) on the date of exercise equal to the exercise price; or (iii) by a 

  
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 combination of cash and Stock; provided, however, that payment of the exercise price by
delivery of shares of Common Stock of the Company owned by such optionholder may be made only if such payment does not result in a charge to earnings for financial accounting purposes as determined by the Board, unless the Board otherwise permits
such payment by delivery of shares of Common Stock. 
 Effective beginning as of November 16, 2011, provided that at the
time of exercise the Stock is publicly traded and quoted regularly in The Wall Street Journal, an Option may be exercised pursuant to a program developed under Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of
Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay to the Company from the sale proceeds the aggregate exercise price and any required federal, state, local or foreign tax
withholding obligations of the Company or an affiliate thereof, which arise in connection with the exercise of the Option. 

(b)      Promissory Note. To the extent permitted by any applicable margin regulations of the Board
of Governors of the Federal Reserve System and other provisions of applicable law, the instrument granting an Option may, in the discretion of the Board, permit the exercise price for Shares to be paid by payment of at least the par value by a
combination of cash and Stock as provided above, and delivery to the Company of the Participant’s promissory note for the balance of the exercise price. Unless otherwise specified by the Board in the instrument granting the Option, such note
(i) shall bear interest at least equal to the Applicable Federal Rate, as determined under Section 1274(d) of the Code and published by the Service on a monthly basis, in effect for the month of exercise, (ii) shall be a fully
recourse note, (iii) shall be secured by a pledge of the Shares acquired by exercising the Option, and (iv) shall be payable in equal annual installments of principal and interest over a period of not more than five years after the
exercise date (except that any such note shall be payable on demand in the event of termination of employment). Any such promissory note shall be in a form satisfactory to the Company. 

11.     NO RIGHTS AS STOCKHOLDER. Participants shall not have the rights of stockholders with regard to
Options granted under the Plan, except as to Shares actually purchased pursuant to such Options. 

12.     NON TRANSFERABILITY OF OPTIONS. Each Option granted under the Plan shall be transferable only by
will or the laws of descent and distribution and shall be exercisable during the lifetime of the person to whom the Option is granted only by such person. Except as permitted by the preceding sentence, no Option granted under the Plan or any of the
rights and privileges thereby conferred shall be transferred, assigned, pledged, hypothecated or otherwise disposed of in any way (by operation of law or otherwise), and no such Option, right or privilege shall be subject to execution, attachment or
similar process. Upon any attempt so to transfer, assign, pledge, hypothecate or otherwise dispose of any such Option, right or privilege contrary to the provisions hereof, or upon the levy of any attachment or similar process upon such Option,
right or privilege, the Option and such rights and privileges shall immediately become null and void. Notwithstanding the above provisions of this Section 12, any Option granted under the Plan may be pledged or hypothecated to secure an
obligation to the Company. 

  
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 13.     TERMINATION OF EMPLOYMENT; DEATH OR DISABILITY.

 (a)      Termination In General. Upon termination of the employment of a Participant,
any unexercised Options shall terminate immediately, except as provided in Subsections (b), (c) and (d) below. For purposes of this Section 13, employment shall not be considered terminated (i) in the case of sick leave or other
bona fide leave of absence approved for purposes of the Plan by the Board, so long as the employee’s right to re-employment is guaranteed either by statute or by contract, or (ii) in the case of a transfer of employment among the Company
and its subsidiaries, or to the employment of a corporation (or a parent or subsidiary corporation of such corporation) issuing or assuming an option, which in the case of an Incentive Option is a transaction to which Section 424(a) of the Code
applies. For all purposes of this Section 13, the term “employment” shall include the relationships of Participants to the Company as directors, consultants and professional advisors. 

(b)      Termination Not For Cause. Subject to Section 13(c), if such termination was not
“for cause” (as hereinafter defined), the Participant may exercise any Option which was otherwise exercisable on the date of termination for a period ending on the earlier of (i) the last day of the third month after such termination
and (ii) the expiration date of such Option pursuant to the first sentence of Section 8(c). For purposes hereof, the term “for cause” shall mean only (i) the willful or reckless failure by the Participant to perform his
duties under or willful or reckless violation of any written employment or consulting agreement (other than a failure resulting from the Participant’s death or disability), which failure or violation shall not have been cured within fifteen
(15) days after the receipt by the Participant of written notice thereof from the Board specifying with reasonable particularity such alleged failure or violation; (ii) the commission by the Participant of an act of fraud or theft against
the Company or any of its subsidiaries; or (iii) the conviction of the Participant of (or the plea by the Participant of nolo contendere to) any felony. 
 (c)      Death. If termination of employment results from the Participant’s death, any Option which was otherwise exercisable by such Participant as of the time
immediately before his or her death shall be exercisable by the Participant’s estate or by any person who acquired the Options by bequest or inheritance for a period ending on the earlier of (i) one year after the death of the Participant
and (ii) the expiration date of such Option pursuant to the first sentence of Section 8(c). The Board may permit any option to be exercised for up to the total number of Shares subject to the Option, or grant an Option which by its terms
is exercisable at any time within one year after the death of the Participant, for up to the total number of Shares subject to the Option, consistent with the above provisions. 

(d)      Disability. If the termination of employment results from the Participant’s
disability, any Option which was otherwise exercisable by such Participant immediately prior to the termination of his employment shall be exercisable by him or her (or his or her legal 

  
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 representative) for a period ending on the earlier of (i) one year after such termination and
(ii) the expiration date of such Option pursuant to the first sentence of Section 8(c). The Board may permit any Option to be exercised for up to the total number of Shares subject to the Option, or grant an Option which by its terms is
exercisable at any time within one year after termination of employment, for up to the total number of Shares subject to the Option, consistent with the above provisions. The term “disability” shall for this purpose be defined as such term
is defined in Section 22(e)(3) of the Code. 
 14.     TERMS AND CONDITIONS OF RESTRICTED
STOCK. 
 (a)      Generally. A Restricted Stock Award is an Award entitling the
Participant to acquire shares of Stock for a specified purchase price, or solely in consideration of past services rendered, subject to such conditions and restrictions as the Committee shall determine. 

(b)      Awards, Purchase Price and Consideration. Subject to the provisions of the Plan, the Board
may award shares of Restricted Stock and determine the purchase price (if any) therefor, and the other terms and conditions of such Awards. Shares of Restricted Stock may be issued for no cash consideration or such minimum consideration as may be
required by applicable law. 
 (c)      Certificates. Shares of Restricted Stock shall be
evidenced in such a manner as the Board may determine. Any certificates issued in respect of shares of Restricted Stock shall be registered in the name of the Participant and delivered to the Participant. 

(d)      Rights of Holder. A Participant shall have all the rights of a shareholder with respect to
the Restricted Stock, including voting and dividend rights, subject to restrictions on transferability and subject to any other conditions, determined by the Board and contained in the Award. 

15.     CONDITIONS TO EXERCISE OF OPTIONS AND GRANT OF AWARDS. Except as waived by the Board in a
particular case, all the following conditions shall be complied with as a condition to the exercise of each Option granted under the Plan, and Sections 15(a), (b), (c) and (e) shall be complied with as a condition to the issuance of
Restricted Stock under the Plan: 
 (a)      Legal Matters. In the opinion of the
Company’s counsel all applicable federal and state laws and regulations, including securities laws and regulations, shall have been complied with, and legal matters in connection with the issuance and delivery of such Shares shall have been
approved by the Company’s counsel. 
 (b)      Listing and Registration of Shares. If
at any time the Board shall determine that the listing, registration or qualification of the Shares covered by any Award upon any securities exchange or under any state or federal law, or the consent or approval of any governmental regulatory body,
is necessary or desirable as a condition of or in connection with the granting of 

  
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 such Award or the issuance or purchase of Shares thereunder, such Award may not be granted, and any Shares
covered thereby may not be issued, in whole or in part unless and until such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Board. 

(c)      Tax Undertakings. In the case of (i) an Option that is not an Incentive Option, or
(ii) the issuance of Restricted Stock, the Board may require the Participant to remit to the Company an amount sufficient to satisfy any federal, state or local withholding tax requirements (or make other arrangements satisfactory to the
Company with regard to such taxes, including withholding from regular cash compensation, giving of security to the Company adequate to meet the potential liability of the Company for withholding of tax, or, with respect to Options, reducing the
number of shares otherwise issuable upon the exercise of the Option by a number of shares having a fair market value (as determined by the Board in good faith in its discretion) on the date of exercise sufficient to meet such potential liability)
prior to the delivery of any Shares pursuant to the exercise of the Option, or the issuance of any Shares pursuant to a grant of Restricted Stock, as the case may be. With the approval of the Board, the employee may, in lieu of cash, remit Stock
having a fair market value (as determined by the Board in good faith in its discretion) on the date of exercise sufficient to meet such potential liability). In the case of an Incentive Option, if at the time the Option is exercised the Board
determines that under applicable law and regulations the Company could be liable for the withholding of any federal or state tax with respect to a disposition of the Shares received upon exercise, the Board may require the Participant to agree
(i) to inform the Company promptly of any disposition (within the meaning of Section 424(c) of the Code and the regulations thereunder) of Shares received upon exercise, and (ii) to give such security as the Board deems adequate to
meet the potential liability of the Company for the withholding of tax, and to augment such security from time to time in any amount reasonably deemed necessary by the Board to preserve the adequacy of such security. 

(d)      Evidence of Authority. If an Option is exercised by the legal representative of a deceased
Participant or by a person to whom the Option has been transferred by the Participant’s will or by applicable laws of descent and distribution, the Company shall not be obligated to deliver Shares until satisfied as to the authority of the
person exercising the Option. 
 (e)      Restrictions on Transfer of Stock. If the sale of
Shares has not been registered under the Securities Act of 1933, as amended, or under applicable state securities laws, the Company may require, as a condition to exercise of an Option or grant of Restricted Stock, such representations or agreements
from the Participant as counsel for the Company may consider appropriate to avoid violation of such Act or such state securities laws and may require that the certificates evidencing such Shares bear an appropriate legend restricting transfer. In
addition, the Board may require as conditions to the grant or exercise of any Award that the Participant agree in writing to (i) restrictions on the transfer of Shares and (ii) a right of first refusal of the Company to repurchase Shares
in the event the holder desires to sell such Shares. Such restrictions and rights on the part of the Company shall be identified in the instrument granting the Award. 

  
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 16.     REORGANIZATIONS; DISSOLUTION. 

(a)      Substitute Options. If by reason of a corporate merger, consolidation, acquisition of
property or stock, separation, reorganization, or liquidation the Board shall authorize the issuance or assumption of a stock option in a transaction to which Section 424(a) of the Code applies, then, notwithstanding any other provision of the
Plan, the Board may grant an option upon such terms and conditions as it may deem appropriate for the purpose of assumption of the old option, or substitution of a new option for the old option, in conformity with the provisions of said
Section 424(a) of the Code and the Regulations thereunder, and any such option shall not reduce the number of shares otherwise available for issuance under the Plan. 
 (b)      Termination of Options. In the event of a Change in Control of the Company (as defined in subsection (c), below), and in anticipation thereof if required by
the circumstances, the Board, in its sole discretion, may (i) accelerate the exercisability, prior to the effective date of such Change in Control, of all outstanding options granted under this Plan (and redesignate as Nonqualified Options any
options or portions thereof that were originally designated as Incentive Options but that no longer so qualify under Section 422 of the Code), (ii) arrange, if there is a surviving or acquiring corporation, subject to the consummation of a
Change of Control, to have that corporation or an affiliate of that corporation grant to employees and other optionholders replacement options with substantially similar or, if not adverse to the optionholders, different provisions with respect to
exercisability (upon which grant the options granted under this Plan shall immediately terminate and be of no further force or effect) which, however, in the case of Incentive Options, satisfy, in the determination of the Board, the requirements of
Section 424(a) of the Code, (iii) cancel all outstanding options in exchange for consideration in cash or in kind in an amount equal to the value of the Shares, as determined by the Board in good faith, the optionholder would have received
had the option been exercised (to the extent then exercisable or to a greater extent, including in full, as the Board may determine) less the option price therefor (upon which cancellation such options shall immediately terminate and be of no
further force or effect), (iv) permit the purchaser of the Company’s stock or assets to deliver to the optionholders the same kind of consideration that is delivered to the stockholders of the Company in cancellation of such options in an
amount equal to the value of the Shares, as determined by the Board in good faith, the optionholder would have received had the option been exercised (to the extent then exercisable or to a greater extent, including in full, as the Board may
determine), less the option price therefor, or (v) take any combination (or none) of the foregoing actions. 

(c)      Definition of “Change of Control”. For purposes of this Plan, a “Change in
Control” shall mean and include any of the following: 
 (i) a merger or consolidation of the Company with or into any other
corporation or other business entity in which the Company is the surviving corporation (except one in which the holders of capital stock of the Company immediately prior to such merger or consolidation continue to hold at least a majority of the
outstanding securities having the right to vote in an election of the Board of Directors (“Voting Stock”) of the Company); or any such merger or consolidation in which the Company is not the surviving corporation; 

  
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 (ii) a sale, lease, exchange or other transfer (in one transaction or a related series of
transactions) of all or substantially all of the Company’s assets; 
 (iii) the acquisition by any person or any group of
persons (other than the Company, any of its direct or indirect subsidiaries, or any trustee, fiduciary or other person or entity holding securities under any employee benefit plan or trust of the Company or any of its direct or indirect
subsidiaries) acting together in any transaction or related series of transactions, of such number of shares of the Company’s Voting Stock as causes such person, or group of persons, to own beneficially, directly or indirectly, as of the time
immediately after such transaction or series of transactions, 51% or more of the combined voting power of the Voting Stock of the Company other than as a result of an acquisition of securities directly from the Company, or solely as a result of an
acquisition of securities by the Company which by reducing the number of shares of the Voting Stock outstanding increases the proportionate voting power represented by the Voting Stock owned by any such person to 51% or more of the combined voting
power of such Voting Stock; and 
 (iv) a change in the composition of the Company’s Board of Directors following a tender
offer or proxy contest, as a result of which persons who, immediately prior to a tender offer or proxy contest, constituted the Company’s Board of Directors shall cease to constitute at least a majority of the members of the Board of Directors.

 (d)      Dissolution or Liquidation. Upon the dissolution or liquidation of the Company,
all outstanding options granted under this Plan shall terminate, but each optionholder shall have the right, immediately prior to such dissolution or liquidation, to exercise his or her options to the extent then exercisable. 

17.     EMPLOYMENT RIGHTS AND OTHER BENEFITS. Neither the adoption of the Plan nor the grant of Awards
shall confer upon any employee any right to continued employment with the Company or any parent or subsidiary or affect in any way the right of the Company or such parent or subsidiary to terminate the employment of an employee at any time. Except
as specifically provided by the Board in any particular case, the loss of existing or potential profit in Awards granted under the Plan shall not constitute an element of damages in the event of termination of the employment of an employee even if
the termination is in violation of an obligation of the Company to the employee by contract or otherwise. Nothing in the Plan shall restrict the authority of the Board to grant stock options or to award bonuses or other benefits to employees or
others otherwise than pursuant to the Plan. 
 18.     DISCONTINUANCE, CANCELLATION, AMENDMENT AND
TERMINATION. The Board may at any time abandon the Plan or discontinue granting Awards under the Plan. With the consent of the Participant, the Board may at any time cancel an existing Award in whole or in part and grant another Award for such
number of shares as the Board 

  
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 specifies. The Board may at any time amend the Plan for the purpose of satisfying the requirements of
Section 422 of the Code or of any changes in applicable laws or regulations or for any other purpose which may at the time be permitted by law, or may at any time terminate the Plan as to any further grants of Awards, provided that (except to
the extent expressly required or permitted herein above) no such amendment shall, without the approval of the stockholders of the Company by at least a majority vote at a duly held meeting (or by written consent as provided by applicable law),
(a) increase the maximum number of shares for which Options or Restricted Stock may be granted under the Plan, (b) change the group of employees eligible to receive Options under the Plan, (c) reduce the price at which Incentive
Options may be granted, (d) extend the time within which Options may be granted, (e) alter the Plan in such a way that Incentive Options already granted hereunder would not be considered Incentive Options under Section 422 of the
Code, (f) amend the provisions of this Section 16, or (g) make any other change in the Plan which requires stockholder approval under applicable law or regulations, including any approval requirement which is a prerequisite for
exemptive relief under Section 18 of the Securities and Exchange Act of 1934. The termination or any modification or amendment of the Plan shall not adversely affect the rights of any Participant under any Award previously granted without his
or her consent. 
 19.     COMPLIANCE WITH RULE 16b-3. It is intended that the provisions of the
Plan and any Award granted thereunder to a person subject to the reporting requirements of Section 16(a) of the Securities and Exchange Act of 1934, as amended, shall comply in all respects with the terms and conditions of Rule 16b-3
promulgated under such Act or any successor provisions thereto. Any agreement granting Awards shall contain such provisions as are necessary or appropriate to assure such compliance. To the extent that any provision hereof is found not to be in
compliance with such Rule, such provision shall be deemed to be modified so as to be in compliance with such Rule or, if such modification is not possible, shall be deemed to be null and void, as it relates to a recipient subject to
Section 16(a) of the Securities and Exchange Act of 1934, as amended. 

  
 -11-Quest Software 2008 Stock Incentive Plan

 Exhibit 4.6 
 QUEST SOFTWARE, INC. 
 2008
STOCK INCENTIVE PLAN 
  

	1.	GENERAL. 

(a)     Successor and Continuation of Prior Plan.    The Plan is intended as the
successor to and continuation of the Company’s 1999 Stock Incentive Plan and 2001 Stock Incentive Plan (the “Prior Plans”). Following the Effective Date, no additional stock awards shall be granted under the Prior Plans.
Any shares remaining available for issuance pursuant to the exercise of options or settlement of stock awards under the Prior Plans shall become available for issuance pursuant to Stock Awards granted hereunder. Any shares subject to outstanding
stock awards granted under the Prior Plans that expire or terminate for any reason prior to exercise or settlement shall become available for issuance pursuant to Stock Awards granted hereunder. On the Effective Date, all outstanding stock awards
granted under the Prior Plans shall be deemed to be stock awards granted pursuant to the Plan, but shall remain subject to the terms of the Prior Plans with respect to which they were originally granted. All Stock Awards granted subsequent to the
Effective Date shall be subject to the terms of this Plan. 
 (b)     Eligible Stock Award
Recipients.    The persons eligible to receive Stock Awards are Employees, Directors and Consultants. The persons eligible to receive Options under the Non-Discretionary Grant Program are Eligible Directors. 

(c)     Available Stock Awards.    The Plan provides for the grant of the following
Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Restricted Stock Awards, (iv) Restricted Stock Unit Awards, (v) Stock Appreciation Rights, and (vi) Other Stock Awards. 

(d)     Purpose.    The Company, by means of the Plan, seeks to secure and retain the
services of the group of persons eligible to receive Stock Awards as set forth in Section 1(b), to provide incentives for such persons to exert maximum efforts for the success of the Company and any Affiliate, and to provide a means by which
such eligible recipients may be given an opportunity to benefit from increases in value of the Common Stock through the granting of Stock Awards. 
  

	2.	ADMINISTRATION. 

 (a)     Administration by Board.    The Board shall administer the Plan unless and until the Board delegates administration of the Plan to a Committee
or Committees, as provided in Section 2(d). However, the Board may not delegate administration of the Non-Discretionary Grant Program. 
 (b)     Powers of Board.    Except with respect to the Non-Discretionary Grant Program, the Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan: 

  
 1. 

  (i)     To determine from time to time (A) which
of the persons eligible under the Plan shall be granted Stock Awards; (B) when and how each Stock Award shall be granted; (C) what type or combination of types of Stock Award shall be granted; (D) the provisions of each Stock Award
granted (which need not be identical), including the time or times when a person shall be permitted to receive cash or Common Stock pursuant to a Stock Award; (E) the number of shares of Common Stock with respect to which a Stock Award shall be
granted to each such person; and (F) the Fair Market Value applicable to a Stock Award. 

 (ii)     To construe and interpret the Plan and Stock Awards granted under it, and to establish,
amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem
necessary or expedient to make the Plan or Stock Award fully effective. 
  (iii)     To
settle all controversies regarding the Plan and Stock Awards granted under it. 

 (iv)     To accelerate the time at which a Stock Award may first be exercised or the time during
which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the time at which it may first be exercised or the time during which it will vest. 

 (v)     To suspend or terminate the Plan at any time. Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant. 
  (vi)     To amend the Plan in any respect the Board deems necessary or advisable, including, without limitation, relating to Incentive Stock Options and certain
nonqualified deferred compensation under Section 409A of the Code and/or to bring the Plan or Stock Awards granted under the Plan into compliance therewith, subject to the limitations, if any, of applicable law. However, except as provided in
Section 10(a) relating to Capitalization Adjustments, to the extent required by applicable law or listing requirements shareholder approval shall be required for any amendment of the Plan that either (i) materially increases the number of
shares of Common Stock available for issuance under the Plan, (ii) materially expands the class of individuals eligible to receive Stock Awards under the Plan, (iii) materially increases the benefits accruing to Participants under the Plan
or materially reduces the price at which shares of Common Stock may be issued or purchased under the Plan, (iv) materially extends the term of the Plan, or (v) expands the types of Stock Awards available for issuance under the Plan. Except
as provided above, rights under any Stock Award granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the affected Participant, and (ii) such Participant
consents in writing.  
  (vii)     To submit any amendment to the Plan for
shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of (i) Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation
from the limit on corporate deductibility of compensation, (ii) Section 422 of the Code regarding Incentive Stock Options, or (iii) Rule 16b-3. 

  
 2. 

  (viii)     To approve forms of Stock Award Agreements
for use under the Plan and to amend the terms of any one or more Stock Awards, including, but not limited to, amendments to provide terms more favorable than previously provided in the Stock Award Agreement, subject to any specified limits in the
Plan that are not subject to Board discretion; provided however, that, the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the affected Participant, and
(ii) such Participant consents in writing. Notwithstanding the foregoing, subject to the limitations of applicable law, if any, the Board may amend the terms of any one or more Stock Awards without the affected Participant’s consent if
necessary to maintain the qualified status of the Stock Award as an Incentive Stock Option or to bring the Stock Award into compliance with Section 409A of the Code and the related guidance thereunder. 

 (ix)     Generally, to exercise such powers and to perform such acts as the Board deems necessary or
expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Plan or Stock Awards. 
  (x)     To adopt such procedures and sub-plans as are necessary or appropriate to permit participation in the Plan by Employees, Directors or Consultants who are
foreign nationals or employed outside the United States. 
 (c)     Administration of
Non-Discretionary Grant Program.    The Board shall have the power, subject to and within the limitation of the express provisions of the Non-Discretionary Grant Program: 

 (i)     To determine the provisions of each Option to the extent not specified in the
Non-Discretionary Grant Program. 
  (ii)     To construe and interpret the
Non-Discretionary Grant Program and the Options granted under it, and to establish, amend and revoke rules and regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the
Non-Discretionary Grant Program or in any Option Agreement, in a manner and to the extent it shall deem necessary or expedient to make the Non-Discretionary Grant Program or Option fully effective. 

 (iii)     Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and that are not in conflict with the provisions of the Non-Discretionary Grant Program. 
 (d)     Delegation to Committee. 

 (i)     General.    The Board may delegate some or all of the administration of
the Plan (except the Non-Discretionary Grant Program) to a Committee or Committees. 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 that have been delegated to the Committee, including the power to delegate to a subcommittee of the Committee any of the administrative powers the Committee is authorized to exercise (and references in the Plan to the Board
shall thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to 

  
 3. 

 time by the Board. The Board may retain the authority to concurrently administer the Plan with the Committee
and may, at any time, revest in the Board some or all of the powers previously delegated. 

 (ii)     Section 162(m) and Rule 16b-3 Compliance.    The Committee may
consist solely of two or more Outside Directors in accordance with Section 162(m) of the Code, or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. 

(e)     Cancellation and Re-Grant of Stock Awards.    Neither the Board nor any
Committee shall have the authority to: (i) reprice any outstanding Stock Awards under the Plan, or (ii) cancel and re-grant any outstanding Stock Awards under the Plan, unless the shareholders of the Company have approved such an action
within twelve (12) months prior to such an event. In addition, except in connection with a corporate transaction involving the Company (including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination, or exchange of shares), the terms of outstanding Options or Stock Appreciation Rights may not be amended to reduce the exercise price of such outstanding
Options or Stock Appreciation Rights and neither the Board nor any Committee may cancel outstanding Options or Stock Appreciation Rights with exercise prices greater than the then current fair market value of the Common Stock in exchange for cash,
other awards or Options or Stock Appreciation Rights with an exercise price that is less than the exercise price of the original Options or Stock Appreciation Rights without stockholder approval. 

(f)     Effect of Board’s Decision.    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. 
  

	3.	SHARES SUBJECT TO THE PLAN. 

(a)    Share Reserve.    Subject to the provisions of Section 10(a) relating to
Capitalization Adjustments, the aggregate number of shares of Common Stock that may be issued pursuant to Stock Awards under the Plan shall not exceed thirty-five million (35,000,000) shares. Such share reserve consists of (i) the number
of shares remaining available for issuance under the Prior Plans, including shares subject to outstanding stock awards under the Prior Plans as of the Effective Date, plus (ii) an additional 10,750,748 shares. After the Effective Date, such
share reserve shall be reduced from time to time by (i) the number of shares issued pursuant to the exercise of outstanding options granted under the Prior Plans, and (ii) the number of fully-vested shares issued pursuant to share right
awards and the settlement of restricted stock units outstanding under the Prior Plans. Subject to Section 3(b), the number of shares available for issuance under the Plan shall be reduced by: (i) one (1) share for each share of Common
Stock issued pursuant to (A) an Option granted under Sections 5 or 7, or (B) a Stock Appreciation Right granted under Section 6(c), and (ii) one and ninety-four hundredths (1.94) shares for each share of Common Stock issued
pursuant to a Restricted Stock Award, Restricted Stock Unit Award, or Other Stock Award granted under Section 6. Shares may be issued in connection with a merger or acquisition as permitted by FINRA Rule 4350(i)(1)(A)(iii) or, if applicable,
NYSE Listed Company Manual Section 303A.08, or AMEX Company Guide Section 711 and such issuance shall not reduce the number of shares available for issuance under the Plan. 

  
 4. 

 (b)     Reversion of Shares to the Share
Reserve.    If (i) a Stock Award (including the stock awards transferred from the Prior Plans on the Effective Date) shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised
in full, (ii) shares of Common Stock issued to a Participant pursuant to a Stock Award (including the stock awards transferred from the Prior Plans on the Effective Date) are forfeited back to or repurchased by the Company because of the
failure to meet a contingency or condition required for the vesting of such shares, or (iii) a Stock Award (including the stock awards transferred from the Prior Plans on the Effective Date) is settled in cash, then the shares of Common Stock
not issued under such Stock Award, or forfeited to or repurchased by the Company, shall revert to and again become available for issuance under the Plan. If any shares subject to a Stock Award are not delivered to a Participant because such shares
are withheld for the payment of taxes or the Stock Award is exercised through a reduction of shares subject to the Stock Award (i.e., “net exercised”) or an appreciation distribution in respect of a Stock Appreciation right is paid
in shares of Common Stock, the number of shares subject to the Stock Award that are not delivered to the Participant shall not remain available for subsequent issuance under the Plan. If the exercise price of any Stock Award is satisfied by
tendering shares of Common Stock held by the Participant (either by actual delivery or attestation), then the number of shares so tendered shall not remain available for issuance under the Plan. To the extent there is issued a share of Common Stock
pursuant to a Stock Award that counted as one and ninety-four hundredths (1.94) shares against the number of shares available for issuance under the Plan pursuant to Section 3(a) and such share of Common Stock again becomes available for
issuance under the Plan pursuant to this Section 3(b), then the number of shares of Common Stock available for issuance under the Plan shall increase by one and ninety-four hundredths (1.94) shares. 

(c)     Incentive Stock Option Limit.    Notwithstanding anything to the contrary in
this Section 3(c), subject to the provisions of Section 10(a) relating to Capitalization Adjustments the aggregate maximum number of shares of Common Stock that may be issued pursuant to the exercise of Incentive Stock Options shall be the
same as the maximum number of shares of Common Stock that may be issued pursuant to Stock Awards under Section 3(a). 

(d)    Source of Shares.    The stock issuable under the Plan shall be shares of
authorized but unissued or reacquired Common Stock, including shares repurchased by the Company on the open market. 
  

	4.	ELIGIBILITY. 

 (a)    Eligibility for Specific Stock Awards.    Incentive Stock Options may be granted only to employees of the Company or a “parent corporation”
or “subsidiary corporation” thereof (as such terms are defined in Sections 424(e) and 424(f) of the Code). Stock Awards other than Incentive Stock Options may be granted to Employees, Directors and Consultants. Non-discretionary Options
granted under the Non-Discretionary Grant Program in Section 7 may be granted only to Eligible Directors 

(b)    Ten Percent Shareholders.    A Ten Percent Shareholder shall not be granted an
Incentive Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of the Fair Market Value of the Common Stock on the date of grant and the Option is not exercisable after the expiration of five
(5) years from the date of grant. 

  
 5. 

 (c)     Section 162(m)
Limitation.    Subject to the provisions of Section 10(a) relating to Capitalization Adjustments, at such time as the Company may be subject to the applicable provisions of Section 162(m) of the Code, no Employee
shall be eligible to be granted during any calendar year Options, Stock Appreciation Rights, and Other Stock Awards whose value is determined by reference to an increase over an exercise or strike price of at least one hundred percent (100%) of
the Fair Market Value of the Common Stock on the date the Stock Award is granted covering more than one million (1,000,000) shares of Common Stock. 
 (d)     Consultants.    A Consultant shall be eligible for the grant of a Stock Award only if, at the time of grant, a Form S-8 Registration Statement
under the Securities Act (“Form S-8”) is available to register either the offer or the sale of the Company’s securities to such Consultant. 

 

	5.	OPTION PROVISIONS. 

 Each Option shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. All Options shall be separately designated Incentive Stock Options or Nonstatutory Stock
Options at the time of grant, and, if certificates are issued, a separate certificate or certificates shall be issued for shares of Common Stock purchased on exercise of each type of Option. If an Option is not specifically designated as an
Incentive Stock Option, then the Option shall be a Nonstatutory Stock Option. The provisions of separate Options need not be identical; provided, however, that each Option Agreement shall conform to (through incorporation of provisions hereof
by reference in the Option Agreement or otherwise) the substance of each of the following provisions: 

(a)     Term.    Subject to the provisions of Section 4(b) regarding Ten Percent
Shareholders, no Option shall be exercisable after the expiration of ten (10) years from the date of its grant or such shorter period specified in the Option Agreement. 
 (b)     Exercise Price.    Subject to the provisions of Section 4(b) regarding Ten Percent Shareholders, the exercise price of each Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, an Option may be granted with an exercise price lower than one hundred
percent (100%) of the Fair Market Value of the Common Stock subject to the Option if such Option is granted pursuant to an assumption or substitution for another option in a manner consistent with the provisions of Sections 409A and 424(a) of
the Code. 
 (c)    Consideration.    The purchase price of Common Stock acquired
pursuant to the exercise of an Option shall be paid, to the extent permitted by applicable law and as determined by the Board in its sole discretion, by any combination of the methods of payment set forth below. The Board shall have the authority to
grant Options that do not permit all of the following methods of payment (or otherwise restrict the ability to use certain methods) and to grant Options that require the consent of the Company to utilize a particular method of payment. The permitted
methods of payment are as follows: 
  (i)     by cash, check, bank draft or money order
payable to the Company; 

  
 6. 

  (ii)     pursuant to a program developed under
Regulation T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate
exercise price to the Company from the sales proceeds; 
  (iii)     by delivery to the
Company (either by actual delivery or attestation) of shares of Common Stock; 

 (iv)     by a “net exercise” arrangement pursuant to which the Company will reduce the
number of shares of Common Stock issuable upon exercise by the largest whole number of shares with a Fair Market Value that does not exceed the aggregate exercise price; provided, however, the Company shall accept a cash or other payment from
the Participant to the extent of any remaining balance of the aggregate exercise price not satisfied by such reduction in the number of whole shares to be issued; provided, further, that shares of Common Stock will no longer be subject to an
Option and will not be exercisable thereafter to the extent that (A) shares issuable upon exercise are reduced to pay the exercise price pursuant to the “net exercise,” (B) shares are delivered to the Participant as a result of
such exercise, and (C) shares are withheld to satisfy tax withholding obligations; or 

 (v)     in any other form of legal consideration that may be acceptable to the Board in its sole
discretion and permissible under applicable law. 
 (d)     Transferability of
Options.    The Board may, in its sole discretion, impose such limitations on the transferability of Options as the Board shall determine. In the absence of such a determination by the Board to the contrary, the following
restrictions on the transferability of Options shall apply: 
  (i)     Restrictions on
Transfer.    An Option shall not be transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder only by the Optionholder; provided, however,
that the Board may, in its sole discretion, permit transfer of the Option in a manner that is not prohibited by applicable tax and securities laws upon the Optionholder’s request. 

 (ii)     Domestic Relations Orders.    Notwithstanding the foregoing, an Option
may be transferred pursuant to a domestic relations order, provided, however, that if an Option is an Incentive Stock Option, such Option may be deemed to be a Nonstatutory Stock Option as a result of such transfer. 

 (iii)     Beneficiary Designation.    Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form provided by or otherwise satisfactory to the Company and any broker designated by the Company to effect Option exercises, designate a third party who, in the event of the death
of the Optionholder, shall thereafter be entitled to exercise the Option. In the absence of such a designation, the executor or administrator of the Optionholder’s estate shall be entitled to exercise the Option. 

(e)    Vesting of Options Generally.    The total number of shares of Common Stock subject
to an Option may vest and therefore become exercisable in periodic installments that may or may not be equal. The Option may be subject to such other terms and conditions on the time 

  
 7. 

 
or times when it may or may not be exercised (which may be based on the satisfaction of performance goals or other criteria) as the Board may deem appropriate. The vesting provisions of
individual Options may vary. However, Options granted to the Chief Executive Officer of the Company or Chairman of the Board of Directors (the “Chairman”) shall be subject to a minimum vesting period and shall vest as
follows: not more than twenty percent (20%) of any shares of Common Stock subject to an Option shall vest after the first year following the date of grant, and not more than ten percent (10%) after every six-month period thereafter;
provided, however, the Compensation Committee shall have the authority, in its sole discretion, to reduce the minimum vesting period provided in this Section 5(e). Notwithstanding the foregoing, at such time as the Chairman is
Independent, the minimum vesting period required by this Section 5(e) shall not apply to Options granted to such Chairman. The provisions of this Section 5(e) are subject to any Option provisions governing the minimum number of shares of
Common Stock as to which an Option may be exercised. 
 (f)     Termination of Continuous
Service.    In the event that an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the
Optionholder was entitled to exercise such Option as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (i) the date thirty (30) days following the termination of the
Optionholder’s Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the
Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (g)     Extension of Termination Date.    In the event that exercise of an Option following the termination of the Optionholder’s Continuous
Service (other than upon the Optionholder’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall
terminate on the earlier of (i) the expiration of a period of thirty (30) days after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation of such registration
requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. 

(h)     Disability of Optionholder.    In the event that an Optionholder’s
Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of termination of Continuous
Service), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service (or such longer or shorter period specified in the Option Agreement), or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If, after termination of Continuous Service, the Optionholder does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable),
the Option shall terminate. 
 (i)     Death of Optionholder.    In the
event that (i) an Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies within the period (if any) specified in the Option Agreement after the termination of the
Optionholder’s 

  
 8. 

 
Continuous Service for a reason other than death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the
Optionholder’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the option upon the Optionholder’s death, but only within the period ending on the earlier of
(i) the date twelve (12) months following the date of death (or such longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of such Option as set forth in the Option Agreement. If, after the
Optionholder’s death, the Option is not exercised within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 
 (j)     Non-Exempt Employees.    No Option granted to an Employee who is a non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as
amended, shall be first exercisable for any shares of Common Stock until at least six (6) months following the date of grant of the Option. The foregoing provision is intended to operate so that any income derived by a non-exempt employee in
connection with the exercise or vesting of an Option will be exempt from his or her regular rate of pay. 
  

	6.	PROVISIONS OF STOCK AWARDS OTHER THAN OPTIONS.

 (a)     Restricted Stock Awards.    Each Restricted
Stock Award Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. To the extent consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be
(x) held in book entry form subject to the Company’s instructions until any restrictions relating to the Restricted Stock Award lapse; or (y) evidenced by a certificate, which certificate shall be held in such form and manner as
determined by the Board. The terms and conditions of Restricted Stock Award Agreements may change from time to time, and the terms and conditions of separate Restricted Stock Award Agreements need not be identical, provided, however, that
each Restricted Stock Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

 (i)     Consideration.    A Restricted Stock Award may be awarded in
consideration for (A) cash, check, bank draft or money order payable to the Company; (B) past services actually rendered to the Company or an Affiliate; or (C) any other form of legal consideration that may be acceptable to the Board
in its sole discretion and permissible under applicable law. 

 (ii)     Vesting.    Shares of Common Stock awarded under a Restricted Stock
Award Agreement may be subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the Board. 

 (iii)     Termination of Participant’s Continuous Service.    In the event
a Participant’s Continuous Service terminates, the Company may receive via a forfeiture condition or a repurchase right, any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination of
Continuous Service under the terms of the Restricted Stock Award Agreement. 

  
 9. 

 (iv)     Transferability.    Rights to acquire shares of Common Stock
under the Restricted Stock Award Agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the Restricted Stock Award Agreement, as the Board shall determine in its sole discretion, so long as Common
Stock awarded under the Restricted Stock Award Agreement remains subject to the terms of the Restricted Stock Award Agreement. 

(b)     Restricted Stock Unit Awards.    Each Restricted Stock Unit Award Agreement
shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of Restricted Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate
Restricted Stock Unit Award Agreements need not be identical, provided, however, that each Restricted Stock Unit Award Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the
substance of each of the following provisions: 

 (i)     Consideration.    At the time of grant of a Restricted Stock Unit Award,
the Board will determine the consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock subject to the Restricted Stock Unit Award. The consideration to be paid (if any) by the Participant for each share of
Common Stock subject to a Restricted Stock Unit Award may be paid in any form of legal consideration that may be acceptable to the Board in its sole discretion and permissible under applicable law. 

 (ii)     Vesting.    At the time of the grant of a Restricted Stock Unit Award,
the Board may impose such restrictions or conditions to the vesting of the Restricted Stock Unit Award as it, in its sole discretion, deems appropriate. 
  (iii)     Payment.    A Restricted Stock Unit Award may be settled by the delivery of shares of Common Stock, their cash equivalent, any
combination thereof or in any other form of consideration, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. 
  (iv)     Additional Restrictions.    At the time of the grant of a Restricted Stock Unit Award, the Board, as it deems appropriate, may impose
such restrictions or conditions that delay the delivery of the shares of Common Stock (or their cash equivalent) subject to a Restricted Stock Unit Award to a time after the vesting of such Restricted Stock Unit Award. 

 (v)     Dividend Equivalents.    Dividend equivalents may be credited in respect
of shares of Common Stock covered by a Restricted Stock Unit Award, as determined by the Board and contained in the Restricted Stock Unit Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted into
additional shares of Common Stock covered by the Restricted Stock Unit Award in such manner as determined by the Board. Any additional shares covered by the Restricted Stock Unit Award credited by reason of such dividend equivalents will be subject
to all the terms and conditions of the underlying Restricted Stock Unit Award Agreement to which they relate. 

 (vi)     Termination of Participant’s Continuous Service.     Except as
otherwise provided in the applicable Restricted Stock Unit Award Agreement, such portion of the Restricted Stock Unit Award that has not vested will be forfeited upon the Participant’s termination of Continuous Service. 

  
 10.

  (vii)     Compliance with Section 409A of the
Code.    Notwithstanding anything to the contrary set forth herein, any Restricted Stock Unit Award granted under the Plan that is not exempt from the requirements of Section 409A of the Code shall contain such
provisions so that such Restricted Stock Unit Award will comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by the Board and contained in the Restricted Stock Unit Award Agreement evidencing
such Restricted Stock Unit Award. 
 (c)     Stock Appreciation
Rights.    Each Stock Appreciation Right Agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. Stock Appreciation Rights may be granted as stand-alone Stock Awards or
in tandem with other Stock Awards. The terms and conditions of Stock Appreciation Right Agreements may change from time to time, and the terms and conditions of separate Stock Appreciation Right Agreements need not be identical; provided,
however, that each Stock Appreciation Right Agreement shall conform to (through incorporation of the provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 

 (i)     Term.    No Stock Appreciation Right shall be exercisable after the
expiration of ten (10) years from the date of its grant or such shorter period specified in the Stock Appreciation Right Agreement. 
  (ii)     Strike Price.    Each Stock Appreciation Right will be denominated in shares of Common Stock equivalents. The strike price of each Stock
Appreciation Right shall not be less than one hundred percent (100%) of the Fair Market Value of the Common Stock equivalents subject to the Stock Appreciation Right on the date of grant. 

 (iii)    Calculation of Appreciation.    The appreciation distribution payable on the
exercise of a Stock Appreciation Right will be not greater than an amount equal to the excess of (A) the aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a number of shares of Common Stock equal to
the number of shares of Common Stock equivalents in which the Participant is vested under such Stock Appreciation Right, and with respect to which the Participant is exercising the Stock Appreciation Right on such date, over (B) the strike
price. 
  (iv)     Vesting.    At the time of the grant of a Stock
Appreciation Right, the Board may impose such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole discretion, deems appropriate. 
  (v)     Exercise.    To exercise any outstanding Stock Appreciation Right, the Participant must provide written notice of exercise to the Company
in compliance with the provisions of the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 

 (vi)     Payment.    The appreciation distribution in respect of a Stock
Appreciation Right may be paid in Common Stock, in cash, in any combination of the two or in any other form of consideration, as determined by the Board and set forth in the Stock Appreciation Right Agreement evidencing such Stock Appreciation
Right. 

  
 11.

  (vii)     Termination of Continuous
Service.    In the event that a Participant’s Continuous Service terminates, the Participant may exercise his or her Stock Appreciation Right (to the extent that the Participant was entitled to exercise such Stock
Appreciation Right as of the date of termination of Continuous Service) but only within such period of time ending on the earlier of (A) the date thirty (30) days following the termination of the Participant’s Continuous Service (or
such longer or shorter period specified in the Stock Appreciation Right Agreement), or (B) the expiration of the term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. If, after termination of Continuous
Service, the Participant does not exercise his or her Stock Appreciation Right within the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock Appreciation Right shall terminate. 

 (viii)     Compliance with Section 409A of the Code.    Notwithstanding
anything to the contrary set forth herein, any Stock Appreciation Rights granted under the Plan that are not exempt from the requirements of Section 409A of the Code shall contain such provisions so that such Stock Appreciation Right will
comply with the requirements of Section 409A of the Code. Such restrictions, if any, shall be determined by the Board and contained in the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right. 

(d)     Other Stock Awards.    Other forms of Stock Awards valued in whole or in part
by reference to, or otherwise based on, Common Stock may be granted either alone or in addition to Stock Awards provided for under Section 5 and the preceding provisions of this Section 6. Subject to the provisions of the Plan, the Board
shall have sole and complete authority to determine the persons to whom and the time or times at which such Other Stock Awards will be granted, the number of shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such
Other Stock Awards and all other terms and conditions of such Other Stock Awards. 
  

	7.	NON-DISCRETIONARY GRANTS TO ELIGIBLE DIRECTORS.

 (a)     General.    The Non-Discretionary Grant Program
in this Section 7 allows Eligible Directors to receive Nonstatutory Stock Options automatically at designated intervals over their period of Continuous Service on the Board. The Non-Discretionary Grant Program is intended as the successor to
and continuation of the Automatic Option Grant Program under the Company’s 1999 Stock Incentive Plan. 

(b)     Eligibility.    The Options shall automatically be granted to all Eligible
Directors who meet the specified criteria. 
 (c)     Non-Discretionary Option Grants.

  (i)     Initial Grants.    Without any further action of the Board,
each person who becomes elected or appointed to serve on the Board for the first time and who has not been previously in the employ of the Company or an Affiliate automatically shall, upon the date of his or her initial election or appointment, be
granted a Nonstatutory Stock Option to purchase forty thousand (40,000) shares of Common Stock (the “Initial Grant”) on the terms and conditions set forth in Section 7(d). 

  
 12.

  (ii)     Transitional Annual
Grants.    Without any further action of the Board, on July 1, 2008, each Eligible Director who has served as a non-employee Board member since the first business day in July 2007 and whose Continuous Service has not
then terminated shall automatically be granted a Nonstatutory Stock Option to purchase thirty thousand (30,000) shares of Common Stock (the “Transitional Annual Grant”) on the terms and conditions set forth in
Section 7(d). 
  (iii)     Annual Grants.    Without any further
action of the Board, on the first business day in January of each year, beginning on January 2, 2009, each Eligible Director who has served as a non-employee Board member since the first business day in January of the previous year and whose
Continuous Service has not then terminated shall automatically be granted a Nonstatutory Stock Option to purchase twenty thousand (20,000) shares of Common Stock (the “Annual Grant”) on the terms and conditions set forth
in Section 7(d). 
 (d)     Non-Discretionary Option Grant Provisions. 

 (i)     Term.    No Option granted hereunder shall be exercisable after the
expiration of ten (10) years from the date it was granted. 
  (ii)     Exercise
Price.    The exercise price of each Option granted hereunder shall be one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. 

 (iii)     Consideration.    The purchase price of Common Stock acquired pursuant
to the exercise of an Option may be paid by any combination of the methods of payment set forth below: 

 (1)     by cash, check, bank draft or money order payable to the Company; 

 (2)     to the extent exercised for vested shares, pursuant to a program developed under Regulation
T as promulgated by the Federal Reserve Board that, prior to the issuance of the stock subject to the Option, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise
price to the Company from the sales proceeds; or 
  (3)     by delivery to the Company
(either by actual delivery or attestation) of shares of Common Stock. 

 (iv)     Vesting.    Options granted under the Non-Discretionary Grant Program
shall vest as follows: 
  (1)     Initial Grants.    Each Initial
Grant shall vest in a series of four (4) successive equal annual installments during the Eligible Director’s Continuous Service over the four (4)-year period measured from the date of grant. 

  
 13.

  (2)     Transitional Annual
Grants.    Each Transitional Annual Grant shall be fully vested on the date of grant. 

 (3)     Annual Grants.    Each Annual Grant shall be fully vested on the date
of grant. 
  (v)     Early Exercise.    Each Option granted under the
Non-Discretionary Grant Program shall be immediately exercisable as to any or all of the shares of Common Stock subject to such Options prior to the full vesting of the Option. Any unvested shares of Common Stock so acquired shall be subject to a
repurchase option in favor of the Company or to any other restriction the Board determines to be appropriate. The Company shall not be required to exercise its repurchase option until at least six (6) months (or such longer or shorter period of
time necessary to avoid classification of the Option as a liability for financial accounting purposes) have elapsed following exercise of the Option. 
  (vi)     Termination of Continuous Service.    In the event that an Eligible Director’s Continuous Service terminates (other than upon the
Eligible Director’s death or Disability), the Eligible Director may exercise his or her Option (to the extent that the Eligible Director was entitled to exercise such Option as of the date of termination of Continuous Service) but only within
such period of time ending on the earlier of (i) the date twelve (12) months following the termination of the Eligible Director’s Continuous Service, or (ii) the expiration of the term of the Option as set forth in the Option
Agreement. If, after termination of Continuous Service, the Eligible Director does not exercise his or her Option within the time specified herein or in the Option Agreement (as applicable), the Option shall terminate. 

 (vii)    Extension of Termination Date.    If the exercise of the Option following
the termination of the Eligible Director’s Continuous Service (other than upon the Eligible Director’s death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the
registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of twelve (12) months after the termination of the Eligible Director’s Continuous Service during
which the exercise of the Option would not be in violation of such registration requirements, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. 

 (viii)     Disability of Eligible Director.    In the event that an Eligible
Director’s Continuous Service terminates as a result of the Eligible Director’s Disability, the Option shall become fully vested and exercisable and the Eligible Director may exercise his or her Option, but only within such period of time
ending on the earlier of (i) the date twelve (12) months following such termination of Continuous Service, or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Eligible
Director does not exercise his or her Option within the time specified herein or in the Option Agreement, the Option shall terminate. 
  (ix)     Death of Eligible Director.    In the event that an Eligible Director’s Continuous Service terminates as a result of the Eligible
Director’s death, then the Option shall become fully vested and exercisable and may be exercised by the Eligible Director’s estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person

  
 14.

 designated to exercise the Option upon the Eligible Director’s death, but only within the period ending
on the earlier of (i) the date twelve (12) months following the date of death, or (ii) the expiration of the term of such Option as set forth in the Option Agreement. If, after the Eligible Director’s death, the Option is not
exercised within the time specified herein, the Option shall terminate. 
  (x)     Change in
Control.    In the event of a Change in Control, each Option granted under the Non-Discretionary Grant Program shall become fully vested and exercisable immediately prior to the effectiveness of such Change in Control.

  (xi)     Remaining Terms.    The remaining terms and conditions of
each Option shall be as set forth in an Option Agreement in the form adopted from time to time by the Board; provided, however, that the terms of such Option Agreement shall be consistent with the terms of the Plan. 

 

	8.	COVENANTS OF THE COMPANY. 

(a)     Availability of Shares.    During the terms of the Stock Awards, the Company
shall keep available at all times the number of shares of Common Stock required to satisfy such Stock Awards. 

(b)     Securities Law Compliance.    The Company shall seek to obtain from each
regulatory commission or agency having jurisdiction over the Plan such authority as may be required to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking
shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any such Stock Award. If, after 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 Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock
upon exercise of such Stock Awards unless and until such authority is obtained. A Participant shall not be eligible for the grant of a Stock Award or the subsequent issuance of Common Stock pursuant to the Stock Award if such grant or issuance would
be in violation or any applicable securities law. 
 (c)    No Obligation to
Notify.    The Company shall have no duty or obligation to any holder of a Stock Award to advise such holder as to the time or manner of exercising such Stock Award. Furthermore, the Company shall have no duty or obligation
to warn or otherwise advise such holder of a pending termination or expiration of a Stock Award or a possible period in which the Stock Award may not be exercised. The Company has no duty or obligation to minimize the tax consequences of a Stock
Award to the holder of such Stock Award. 
  

	9.	MISCELLANEOUS. 

 (a)     Use of Proceeds.    Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute general funds of the Company.

  
 15.

 (b)     Corporate Action Constituting Grant of Stock
Awards.    Corporate action constituting a grant by the Company of a Stock Award to any Participant shall be deemed completed as of the date of such corporate action, unless otherwise determined by the Board, regardless of
when the instrument, certificate, or letter evidencing the Stock Award is communicated to, or actually received or accepted by, the Participant. 
 (c)     Shareholder Rights.    No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares
of Common Stock subject to such Stock Award unless and until (i) such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms, and (ii) the issuance of the Common Stock pursuant to such exercise has
been entered into the books and records of the Company. 
 (d)     No Employment or Other Service
Rights.    Nothing in the Plan, any Stock Award Agreement or other instrument executed thereunder or in connection with any Stock Award granted pursuant to the Plan shall confer upon any Participant any right to continue to
serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or
without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the Bylaws of the Company or an Affiliate, and any
applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 
 (e)     Incentive Stock Option $100,000 Limitation.    To the extent that the aggregate Fair Market Value (determined at the time of grant) of Common
Stock with respect to which Incentive Stock Options are exercisable for the first time by any Optionholder during any calendar year (under all plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof that exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of the applicable Option Agreement(s). 

(f)     Investment Assurances.    The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances satisfactory to the Company as to the Participant’s knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is knowledgeable and experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any
present intention of selling or otherwise distributing the Common Stock. The foregoing requirements, and any assurances given pursuant to such requirements, shall be inoperative if (x) the issuance of the shares upon the exercise or acquisition
of Common Stock under the Stock Award has been registered under a then currently effective registration statement under the Securities Act, or (y) as to any particular requirement, a determination is made by counsel for the Company that such
requirement need not be met in the circumstances under the then applicable securities laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but not limited to, legends restricting the transfer of the Common Stock. 

  
 16.

 (g)     Withholding
Obligations.    Unless prohibited by the terms of a Stock Award Agreement, the Company may, in its sole discretion, satisfy any federal, state or local tax withholding obligation relating to a Stock Award by any of the
following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a combination of such means: (i) causing the Participant to tender a cash payment; (ii) withholding
shares of Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in connection with the Stock Award; provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum
amount of tax required to be withheld by law (or such lower amount as may be necessary to avoid classification of the Stock Award as a liability for financial accounting purposes); (iii) withholding cash from a Stock Award settled in cash;
(iv) withholding payment from any amounts otherwise payable to the Participant; or (v) by such other method as may be set forth in the Stock Award Agreement. 
 (h)     Electronic Delivery.    Any reference herein to a “written” agreement or document shall include any agreement or document delivered
electronically or posted on the Company’s intranet. 

(i)     Deferrals.    To the extent permitted by applicable law, the Board, in its
sole discretion, may determine that the delivery of Common Stock or the payment of cash, upon the exercise, vesting or settlement of all or a portion of any Stock Award may be deferred and may establish programs and procedures for deferral elections
to be made by Participants. Deferrals by Participants will be made in accordance with Section 409A of the Code. Consistent with Section 409A of the Code, the Board may provide for distributions while a Participant is still an employee. The
Board is authorized to make deferrals of Stock Awards and determine when, and in what annual percentages, Participants may receive payments, including lump sum payments, following the Participant’s termination of employment or retirement, and
implement such other terms and conditions consistent with the provisions of the Plan and in accordance with applicable law. 

(j)     Compliance with Section 409A.    To the extent that the Board determines
that any Stock Award granted hereunder is subject to Section 409A of the Code, the Stock Award Agreement evidencing such Stock Award shall incorporate the terms and conditions necessary to avoid the consequences specified in
Section 409A(a)(1) of the Code. To the extent applicable, the Plan and Stock Award Agreements shall be interpreted in accordance with Section 409A of the Code and Department of Treasury regulations and other interpretive guidance issued
thereunder, including without limitation any such regulations or other guidance that may be issued or amended after the Effective Date. Notwithstanding any provision of the Plan to the contrary, in the event that following the Effective Date the
Board determines that any Stock Award may be subject to Section 409A of the Code and related Department of Treasury guidance (including such Department of Treasury guidance as may be issued after the Effective Date), the Board may adopt such
amendments to the Plan and the applicable Stock Award Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or
appropriate to (1) exempt the Stock Award from Section 409A of the Code and/or 

  
 17.

 preserve the intended tax treatment of the benefits provided with respect to the Stock Award, or
(2) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance. 
  

	10.	ADJUSTMENTS UPON CHANGES IN COMMON STOCK; OTHER
CORPORATE EVENTS. 

 (a)     Capitalization
Adjustments.    In the event of a Capitalization Adjustment, the Board shall appropriately and proportionately adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section 3(a);
(ii) the class(es) and maximum number of securities that may be issued pursuant to the exercise of Incentive Stock Options pursuant to Section 3(c); (iii) the class(es) and maximum number of securities that may be awarded to any
person pursuant to Section 4(c); (iv) the class(es) and number of securities subject to each Option granted under the Non-Discretionary Grant Program under Section 7; and (v) the class(es) and number of securities and price per
share of stock subject to outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. 
 (b)     Dissolution or Liquidation.    Except as otherwise provided in a Stock Award Agreement, in the event of a dissolution or liquidation of the
Company, all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares of Common Stock not subject to a forfeiture condition or the Company’s right of repurchase) shall terminate immediately prior to the
completion of such dissolution or liquidation, and the shares of Common Stock subject to the Company’s repurchase rights may be repurchased by the Company notwithstanding the fact that the holder of such Stock Award is providing Continuous
Service, provided, however, that the Board may, in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not
previously expired or terminated) before the dissolution or liquidation is completed but contingent on its completion. 

(c)     Corporate Transaction.    The following provisions shall apply to Stock
Awards in the event of a Corporate Transaction unless otherwise provided in the instrument evidencing the Stock Award or any other written agreement between the Company or any Affiliate and the holder of the Stock Award or unless otherwise expressly
provided by the Board at the time of grant of a Stock Award. Except as otherwise stated in the Stock Award Agreement, in the event of a Corporate Transaction, then, notwithstanding any other provision of the Plan, the Board shall take one or more of
the following actions with respect to Stock Awards, contingent upon the closing or completion of the Corporate Transaction: 

 (i)     arrange for the surviving corporation or acquiring corporation (or the surviving or
acquiring corporation’s parent company) to assume or continue the Stock Award or to substitute a similar stock award for the Stock Award (including, but not limited to, an award to acquire the same consideration paid to the shareholders of the
Company pursuant to the Corporate Transaction); 
  (ii)     arrange for the assignment of
any reacquisition or repurchase rights held by the Company in respect of Common Stock issued pursuant to the Stock Award to the surviving corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company);

  
 18.

  (iii)     accelerate the vesting of the Stock Award
(and, if applicable, the time at which the Stock Award may be exercised) to a date prior to the effective time of such Corporate Transaction as the Board shall determine (or, if the Board shall not determine such a date, to the date that is five
(5) days prior to the effective date of the Corporate Transaction), with such Stock Award terminating if not exercised (if applicable) at or prior to the effective time of the Corporate Transaction; 

 (iv)      arrange for the lapse of any reacquisition or repurchase rights held by the Company with
respect to the Stock Award; 
  (v)     cancel or arrange for the cancellation of the Stock
Award, to the extent not vested or not exercised prior to the effective time of the Corporate Transaction, in exchange for such cash consideration as the Board, in its sole discretion, may consider appropriate; and 

 (vi)     make a payment, in such form as may be determined by the Board equal to the excess, if any,
of (A) the value of the property the holder of the Stock Award would have received upon the exercise of the Stock Award, over (B) any exercise price payable by such holder in connection with such exercise. 

The Board need not take the same action with respect to all Stock Awards, portions thereof, or with respect to all Participants.

 (d)     Change in Control.    A Stock Award may be subject to additional
acceleration of vesting and exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement for such Stock Award or as may be provided in any other written agreement between the Company or any Affiliate and the
Participant. A Stock Award may vest as to all or any portion of the shares subject to the Stock Award (i) immediately upon the occurrence of a Change in Control, whether or not such Stock Award is assumed, continued, or substituted by a
surviving or acquiring entity in the Change in Control, or (ii) in the event a Participant’s Continuous Service is terminated, actually or constructively, within a designated period following the occurrence of a Change in Control. In the
absence of such provisions, no such acceleration shall occur. 
  

	11.	TERMINATION OR SUSPENSION OF THE PLAN. 

(a)     Plan Term.    The Board may suspend or terminate the Plan at any time. Unless
terminated sooner, the Plan shall terminate on the day before the tenth (10th) anniversary of the earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the shareholders of the Company. No
Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 

(b)     No Impairment of Rights.    Suspension or termination of the Plan shall not
impair rights and obligations under any Stock Award granted while the Plan is in effect except with the written consent of the affected Participant. 

  
 19.

	12.	EFFECTIVE DATE OF PLAN. 

Should the Plan be approved by the Company’s shareholders at the 2008 Annual Meeting, the Plan shall become effective on
July 1, 2008. 
  

	13.	CHOICE OF LAW. 

 The law of the State of California shall govern all questions concerning the construction, validity and interpretation of the Plan, without regard to that state’s conflict of laws rules. 

 

	14.	DEFINITIONS. 

 As used in the Plan, the following definitions shall apply to the capitalized terms indicated below: 
 (a)     “Affiliate” means, at the time of determination, any “parent” or “subsidiary” of the Company as such terms are defined
in Rule 405 of the Securities Act. The Board shall have the authority to determine the time or times at which “parent” or “subsidiary” status is determined within the foregoing definition. 

(b)     “Annual Grant” means an Option granted to an Eligible Director who meets
the specified criteria pursuant to Section 7(c)(iii). 

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

(d)     “Capitalization Adjustment” means any change that is made in, or other
events that occur with respect to, the Common Stock subject to the Plan or subject to any Stock Award after the Effective Date 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 similar transaction). Notwithstanding the foregoing, the
conversion of any convertible securities of the Company shall not be treated as a Capitalization Adjustment. 

(e)     “Cause” means with respect to a Participant, the occurrence of any of the
following events: (i) such Participant’s commission of any felony or any crime involving fraud, dishonesty or moral turpitude under the laws of the United States or any state thereof; (ii) such Participant’s attempted commission
of, or participation in, a fraud or act of dishonesty against the Company; (iii) such Participant’s intentional, material violation of any contract or agreement between the Participant and the Company or of any statutory duty owed to the
Company; (iv) such Participant’s unauthorized use or disclosure of the Company’s confidential information or trade secrets; or (v) such Participant’s gross misconduct. The determination that a termination of the
Participant’s Continuous Service is either for Cause or without Cause shall be made by the Company in its sole discretion. Any determination by the Company that the Continuous Service of a Participant was terminated with or without Cause for
the purposes of outstanding Stock Awards held by such Participant shall have no effect upon any determination of the rights or obligations of the Company or such Participant for any other purpose. 

  
 20.

 (f)     “Change in Control” means
the occurrence, in a single transaction or in a series of related transactions, of any one or more of the following events: 

 (i)     any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities other than by virtue of a merger, consolidation or other transaction. Notwithstanding the foregoing, a Change in
Control shall not be deemed to occur (A) on account of the acquisition of securities of the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company in a transaction or series of related transactions the
primary purpose of which is to obtain financing for the Company through the issuance of equity securities or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”) exceeds the
designated percentage threshold of the outstanding voting securities as a result of a repurchase or other acquisition of voting securities by the Company reducing the number of shares outstanding, provided that if a Change in Control would occur
(but for the operation of this sentence) as a result of the acquisition of voting securities by the Company, and after such share acquisition, the Subject Person becomes the Owner of any additional voting securities that, assuming the repurchase or
other acquisition had not occurred, increases the percentage of the then outstanding voting securities Owned by the Subject Person over the designated percentage threshold, then a Change in Control shall be deemed to occur; 

 (ii)     there is consummated a merger, consolidation or similar transaction involving (directly or
indirectly) the Company and, immediately after the consummation of such merger, consolidation or similar transaction, the shareholders of the Company immediately prior thereto do not Own, directly or indirectly, either (A) outstanding voting
securities representing more than fifty percent (50%) of the combined outstanding voting power of the surviving Entity in such merger, consolidation or similar transaction or (B) more than fifty percent (50%) of the combined
outstanding voting power of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each case in substantially the same proportions as their Ownership of the outstanding voting securities of the Company
immediately prior to such transaction; 
  (iii)     the shareholders of the Company approve
or the Board approves a plan of complete dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company shall otherwise occur, except for a liquidation into a parent corporation; 

 (iv)     there is consummated a sale, lease, exclusive license or other disposition of all or
substantially all of the consolidated assets of the Company and its Subsidiaries, other than a sale, lease, license or other disposition of all or substantially all of the consolidated assets of the Company and its Subsidiaries to an Entity, more
than fifty percent (50%) of the combined voting power of the voting securities of which are Owned by shareholders of the Company in substantially the same proportions as their Ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or 

 (v)     individuals who, on the date the Plan is adopted by the Board, are members of the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the members of the Board; provided, however, that if the appointment or election (or

  
 21.

 nomination for election) of any new Board member was approved or recommended by a majority vote of the
members of the Incumbent Board then still in office, such new member shall, for purposes of the Plan, be considered as a member of the Incumbent Board. 
 For avoidance of doubt, the term Change in Control shall not include a sale of assets, merger or other transaction effected exclusively for the purpose of changing the domicile of the Company. 

Notwithstanding the foregoing or any other provision of the Plan, the definition of Change in Control (or any analogous term) in an
individual written agreement between the Company or any Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards subject to such agreement; provided, however, that if no definition of Change in
Control or any analogous term is set forth in such an individual written agreement, the foregoing definition shall apply. 

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

(h)     “Committee” means a committee of two (2) or more members of the
Company’s Compensation Committee to whom authority has been delegated by the Board in accordance with Section 2(d). 

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

(j)     “Company” means Quest Software, Inc., a California corporation.

 (k)     “Consultant” means any person, including an advisor, who is
(i) engaged by the Company or an Affiliate to render consulting or advisory services and is compensated for such services, or (ii) serving as a member of the board of directors of an Affiliate and is compensated for such services. However,
service solely as a Director, or payment of a fee for such service, shall not cause a Director to be considered a “Consultant” for purposes of the Plan.  

(l)     “Continuous Service” means that the Participant’s service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or a
change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s service with the Company or an Affiliate, shall not terminate a Participant’s Continuous
Service; provided, however, if the Entity for which a Participant is rendering services ceases to qualify as an “Affiliate,” as determined by the Board in its sole discretion, such Participant’s Continuous Service shall be
considered to have terminated on the date such Entity ceases to qualify as an Affiliate. To the extent permitted by law, the Board or the chief executive officer or the president of the Company, in that party’s sole discretion, may determine
whether Continuous Service shall be considered interrupted in the case of: (i) any leave of absence approved by the Board, the chief executive officer, or the president, including sick leave, military leave or any other personal leave; or
(ii) transfers between the Company, an Affiliate, or their successors. Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided in
the Company’s leave of absence policy, in the written terms of any leave of absence agreement or policy applicable to the Participant, or as otherwise required by law. 

  
 22.

 (m)     “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)     the consummation of a
merger, consolidation or similar transaction following which the Company is not the surviving corporation; or 

 (iv)     the consummation of 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. 

(n)     “Director” means a member of the Board. 

(o)     “Disability” means, with respect to a Participant, the inability of such
Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve
(12) months, as provided in Section 22(e)(3) and 409A(a)(2)(c)(i) of the Code, and shall be determined by the Board on the basis of such medical evidence as the Board deems warranted under the circumstances. 

(p)     “Effective Date” means the effective date of the Plan as set forth in
Section 12. 
 (q)     “Eligible Director” means a Director who is
not an Employee and is eligible to participate in the Non-Discretionary Grant Program. 

(r)     “Employee” means any person employed by the Company or an Affiliate.
However, service solely as a Director, or payment of a fee for such services, shall not cause a Director to be considered an “Employee” for purposes of the Plan. 
 (s)     “Entity” means a corporation, partnership, limited liability company or other entity. 

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

 (u)     “Exchange Act Person” means any natural person, Entity or
“group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include (i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of
the Company or any Subsidiary of the Company or any trustee or other fiduciary holding 

  
 23.

 securities under an employee benefit plan of the Company or any Subsidiary of the Company, (iii) an
underwriter temporarily holding securities pursuant to a registered public offering of such securities, (iv) an Entity Owned, directly or indirectly, by the shareholders of the Company in substantially the same proportions as their Ownership of
stock of the Company; (v) any natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the Effective Date, is the Owner, directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities; or (vi) Vincent C. Smith, or any Entity or “group” (within the meaning of Section 13(d) or 14(d) of
the Exchange Act) controlled by Vincent C. Smith. 
 (v)     “Fair Market
Value” means, as of any date, the value of the Common Stock determined as follows: 

 (i)     If the Common Stock is listed on any established stock exchange or traded on any established
market, 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 market (or the exchange or market with the greatest volume of
trading in the Common Stock) on the date of determination, as reported in a source the Board deems reliable. 

 (ii)     If the Common Stock is listed or traded on the Nasdaq Capital Market, the Fair Market Value
of a share of Common Stock shall be the mean between the bid and asked prices for the Common Stock on the date of determination, as reported in a source the Board deems reliable. Unless otherwise provided by the Board, if there is no closing sales
price (or closing bid if no sales were reported) for the Common Stock on the date of determination, then the Fair Market Value shall be the mean between the bid and asked prices for the Common Stock on the last preceding date for which such
quotation exists. 
  (iii)     In the absence of such markets for the Common Stock, the
Fair Market Value shall be determined by the Board in good faith and in a manner that complies with Sections 409A and 422 of the Code. 
 (w)     “Incentive Stock Option” means an Option which qualifies as an “incentive stock option” within the meaning of Section 422 of
the Code and the regulations promulgated thereunder. 

(x)     “Independent” shall mean such meaning as defined in Section 303A.02
of the New York Stock Exchange Listed Company Manual. 
 (y)     “Initial
Grant” means an Option granted to an Eligible Director who meets the criteria pursuant to Section 7(c)(i). 

(z)     “Non-Discretionary Grant Program” means the non-discretionary grant
program in effect under Section 7. 
 (aa)     “Non-Employee
Director” means a Director who either (i) is not a current employee or officer of the Company or an Affiliate, does not receive compensation, either directly or indirectly, from the Company or an Affiliate for services rendered as
a consultant or in any capacity other than as a Director (except for an amount as to which disclosure would not 

  
 24.

 be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
(“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure would be required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship for which disclosure
would be required pursuant to Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3. 
 (bb)     “Nonstatutory Stock Option” means an Option that does not qualify as an Incentive Stock Option. 

(cc)     “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. 

(dd)     “Option” means an Incentive Stock Option or a Nonstatutory Stock Option
to purchase shares of Common Stock granted pursuant to the Plan. 
 (ee)     “Option
Agreement” means a written agreement between the Company and an Optionholder evidencing the terms and conditions of an Option grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 

(ff)     “Optionholder” means a person to whom an Option is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Option. 

(gg)     “Other Stock Award” means an award based in whole or in part by reference
to the Common Stock which is granted pursuant to the terms and conditions of Section 6(d). 

(hh)     “Other Stock Award Agreement” means a written agreement between the
Company and a holder of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each Other Stock Award Agreement shall be subject to the terms and conditions of the Plan. 

(ii)     “Outside Director” means a Director who either (i) is not a current
employee of the Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated corporation” who
receives compensation for prior services (other than benefits under a tax-qualified retirement plan) during the taxable year, has not been an officer of the Company or an “affiliated corporation,” and does not receive remuneration from the
Company or an “affiliated corporation,” either directly or indirectly, in any capacity other than as a Director, or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code. 

 (jj)     “Own,” “Owned,”
“Owner,” “Ownership” A person or Entity shall be deemed to “Own,” to have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of securities if such
person or Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares voting power, which includes the power to vote or to direct the voting, with respect to such securities. 

(kk)     “Participant” means a person to whom a Stock Award is granted pursuant to
the Plan or, if applicable, such other person who holds an outstanding Stock Award. 

  
 25.

 (ll)     “Plan” means this Quest
Software, Inc. 2008 Stock Incentive Plan. 
 (mm)     “Prior Plans” means
the Company’s 1999 Stock Incentive Plan and the Company’s 2001 Stock Incentive Plan, as in effect immediately prior to the Effective Date. 
 (nn)     “Restricted Stock Award” means an award of shares of Common Stock which is granted pursuant to the terms and conditions of
Section 6(a). 
 (oo)     “Restricted Stock Award Agreement” means a
written agreement between the Company and a holder of a Restricted Stock Award evidencing the terms and conditions of a Restricted Stock Award grant. Each Restricted Stock Award Agreement shall be subject to the terms and conditions of the Plan.

 (pp)     “Restricted Stock Unit Award” means a right to receive shares
of Common Stock which is granted pursuant to the terms and conditions of Section 6(b). 

(qq)     “Restricted Stock Unit Award Agreement” means a written agreement between
the Company and a holder of a Restricted Stock Unit Award evidencing the terms and conditions of a Restricted Stock Unit Award grant. Each Restricted Stock Unit Award Agreement shall be subject to the terms and conditions of the Plan. 

(rr)     “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any
successor to Rule 16b-3, as in effect from time to time. 
 (ss)     “Securities
Act” means the Securities Act of 1933, as amended. 
 (tt)     “Stock
Appreciation Right” means a right to receive the appreciation on Common Stock that is granted pursuant to the terms and conditions of Section 6(c). 
 (uu)     “Stock Appreciation Right Agreement” means a written agreement between the Company and a holder of a Stock Appreciation Right evidencing
the terms and conditions of a Stock Appreciation Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and conditions of the Plan. 
 (vv)     “Stock Award” means any right to receive Common Stock granted under the Plan, including an Option, a Restricted Stock Award, a Restricted
Stock Unit Award, a Stock Appreciation Right, or any Other Stock Award. 

(ww)     “Stock Award Agreement” means a written agreement between the Company and
a Participant evidencing the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
 (xx)     “Subsidiary” means, with respect to the Company, (i) any corporation of which more than fifty percent (50%) of the outstanding
capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, stock of any other class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company, and (ii) any partnership, limited liability company or other entity in which the Company has a direct or indirect interest (whether in the
form of voting or participation in profits or capital contribution) of more than fifty percent (50%) . 

  
 26.

 (yy)     “Ten Percent Shareholder”
means a person who Owns (or is deemed to Own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any Affiliate. 

(zz)     “Transitional Annual Grant” means an Option granted to an Eligible
Director who meets the specified criteria pursuant to Section 7(c)(ii). 

  
 27.

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