Document:

Employment Agreement, dated June 16, 2004

 Exhibit 10.43 
  
 To: 
 Inon Beracha 
 ID: [Number] 
 [Address] 
  

	 	Re:	Your Employment at DSP Group Ltd. 

  
 We are pleased to offer you a position at DSP Group Ltd. (hereinafter: the “Company”) in accordance with the following Employment Terms: 
  

	1.	Job Description 

  
 Your position at the Company will be “Senior VP and DECT Division Manager,” reporting to the Company’s Chief Executive Officer
(“CEO”). 
  

	2.	Employment Terms 

  

	 	a.	Salary 

  

	 	1.	In consideration for your work at the Company, the Company will pay you the gross sum of NIS 60,000 (sixty thousand) per month (hereinafter: the “Salary”).

  

	 	2.	The Company will duly withhold tax from your salary, pursuant to the Income Tax Regulations, as well as health tax and National Insurance Institute payments. Your salary will be
linked to the Israeli CPI (Consumer Price Index). According to the Israeli law, convalescence payments will be added to your salary. 

  

	 	3.	In January 2005, the Company will update your Employment Terms. 

  

	 	b.	Managers Insurance 

  

	 	1.	The Company will allocate amounts from your salary for the pension fund or provident fund or Managers Insurance, at your discretion, as specified in Section 2.1 above, according to
the following details: 

  
 8.33% of the salary on
account of severance pay – at the Company’s expense 
  
 5% of the salary on account of benefits – at the Company’s expense 
  
 5% of the salary on account of benefits – at your expense 
  
 Disability Income Insurance – up to 2.5% at the Company’s expense 
  

	 	2.	The Company’s allocations for Managers Insurance as stated in sub-section “1” above are in lieu of every other obligation to remit severance pay/pension fund
allocations, etc. 

  

	 	3.	Your agreement to Section “2” exempts the Company from having to obtain the Labor Minister’s approval according to Section 14 of the Severance Pay Law, but should the
need to obtain such permission arise, your signature on this Agreement will empower the Company to act on your behalf in order to obtain said permission. 

  

	 	4.	If, in the future, the Company is required by law and/or expansion order applicable to the entire economy to allocate sums for an arrangement or comprehensive pension fund, this
allocation will be intended for the fund or the applicable new arrangement, in lieu of the arrangement in this Agreement, and the Company will not be able to withdraw sums on account of the deposits made into the previous arrangement, but rather
subject to the regulations of the fund and/or other appropriate fund. 

  

	 	c.	In-service Training Fund 

  
 During your period of employment at the Company, it will allocate sums to a professional development fund. These allocations will be calculated at the
rate of 7.5% of your salary on the Company’s account and 2.5% of the salary on your account, without any ceiling. 
  

	 	d.	Vehicle 

  

	 	1.	The Company will provide you with a company vehicle (hereinafter: the “Vehicle”) as of the date of your employment. 

  

	 	2.	The Company will pay all the Vehicle expenses except the car use value fee, which will be deducted from your monthly salary. 

  

	 	e.	Annual Vacation 

  

	 	1.	During your employment period, you will be entitled to an annual vacation of 23 (twenty-three days). You will coordinate the time of your departure for said vacation with your
superior. 

  

	 	2.	Accumulation of vacation days for a duration exceeding the total vacation days due for two contractual years will not be allowed. 

  

	 	f.	Sickness 

  

	 	1.	You are entitled to 30 (thirty) days’ sick leave per year, with the possibility of accumulating 3 (three) years’ sick leave, i.e. 90 (ninety) days.

  

	 	2.	Payment for sick leave will be remitted from the first day against submission of a doctor’s note. 

  

	 	3.	Accumulated sick leave may not be redeemed for cash. 

  

	 	g.	Reserve Duty 

  

	 	1.	Before taking time off for reserve duty, you must notify the Company upon receipt of your reserve duty order. 

  

	 	2.	The salary for the reserve duty period will be paid to you in full, as stated above in this Agreement, subject to submission of an appropriate document verifying your active reserve
duty. 

  

	 	h.	Your Eligibility for the Company’s Employee Option Plan 

  
 The Company’s management will recommend that the Board of Directors of DSP Group, Inc. grant you options to acquire 120,000 shares of the common
stock of DSP Group, Inc., subject to the terms of the applicable employee stock/option plan. 
  
 In order to dispel any manner of doubt, it is hereby clarified that, in any case, approval to grant the aforementioned options is subject to approval by the Company’s Board of Directors, as specified in the
Company Procedures. 
  

	 	i.	Annual Bonus 

  
 Once a year, following verification of the annual business results by the Board of Directors, you will be entitled to an annual bonus in an amount to be
determined by the Board’s Employee Recognition Committee, based on the Company’s and your performance during the year. 
  

	3.	The Contractual Period and its Termination 

  

	 	a.	This Agreement is valid as of the day it is signed by the parties to it. The contractual arrangement is for a period that is undetermined in advance. The beginning date of your
employment at the Company has hereby been determined as June 16, 2004. 

  

	 	b.	Each party will be entitled to terminate the contractual arrangement by informing the other party in writing 3 (three) months in advance. The Company reserves the right to refrain
from exploiting the notification period and/or from terminating your employment immediately. In this case, you will be paid an early notification fee equal to your salary for the aforesaid period, based on your last known salary.

  

	 	c.	The Company will be entitled to terminate your employment without prior notification in the following cases: 

  

	 	c1.	You have committed a work-related criminal offense and/or an infamous offense. 

  

	 	c2.	You have violated your duty of fidelity to the Company and/or committed an acconstituting a conflict of interest. 

  

	 	c3.	You have violated your obligation to maintain confidentiality and non-competition as specified below in this Agreement and its appendices. 

  

	 	c4.	You have maliciously harmed the Company or caused it damage in consequence of an act of gross negligence. 

  

	4.	Transfer of Allocations and Severance Pay 

  
 If you are dismissed for a reason other than one of the reasons specified below, and/or if you quit, the Company will transfer to you all the allocations
that you have accumulated in your name in the Managers Insurance Policy and/or the fund (hereinafter: the “Allocations”). 
  
 The following is a list of the reasons that will negate the transfer of the allocations in your name: 
  

	 	a.	The Company has dismissed you under circumstances entitling it to legally dismiss you without severance pay. 

  

	 	b.	You have violated your fiduciary duty and/or non-competition obligation and/or duty of confidentiality toward the Company, under this Agreement, and without derogating from the
generality of the aforementioned – violation of the Confidentiality Agreement attached as Appendix A to this Agreement and which constitutes an integral part thereof. 

  

	 	c.	You have been convicted of a work-related criminal offense and/or infamous offense. 

  

	 	d.	You have stopped working at the Company without giving the required advance notification specified in Section 3b above. 

  

	 	e.	You have stopped working at the Company without transferring your job, as specified in Section 7 below. 

  
 It is hereby clarified that your transfer from the employment framework of the Company to that of a new company that is
established – if established as part of the Company – and your employment at such a company, will not constitute termination of your employment or your resignation and/or dismissal from the Company, for the purpose of transferring the
various allocations, including severance pay, yet without derogating from the generality of the aforementioned. 
  

	5.	Working Hours 

  

	 	a.	The customary working hours at the Company are 44 hours a week, and the customary weekdays are Sunday through Thursday. 

  

	 	b.	As your position is among those requiring a special degree of personal trust, as defined in the Working Hours and Rest Law, 5711 – 1951, you will not be subject to the
provisions of this law. From time to time, the requirements of your position will necessitate your working beyond the customary hours and on Fridays. In these cases, you will not be paid for overtime. 

  

	6.	The Duty of Fidelity and Avoidance of Conflicts of Interest 

  

	 	a.	You hereby undertake to carry out your job with dedication and fidelity; to use all your skills, knowledge and experience for the Company’s benefit and advancement, at the
highest, most efficient level and as the Company sees fit. In addition, you hereby undertake to act according to the Company’s instructions regarding everything related to the work performance, work arrangements, discipline and conduct put into
effect from time to time. 

  

	 	b.	Once you begin working full time for the Company, and throughout the Contract Period specified in Section 3a above, i.e. beginning on June 16, 2004, you will not work at any other
job and/or occupation as a salaried employee and/or consultant and/or self-employed individual be it directly and/or indirectly, unless you have the Company’s advance written approval to do so. In any case, you will not work in any capacity if
said job conflicts with the Company’s interests. 

  

	 	c.	Despite the aforesaid in Subsection 6.b above, the Company authorizes you to act in the capacity of a consultant at Ceragon Networks Ltd until the end of 2004, as well as serve as a
consultant at the Gemini Fund. This authorization is subject to approval by the Board of Directors in its July 2004 meeting. 

  

	 	d.	Throughout the Agreement Period, you will not receive any payment or other benefit from any third party, be it directly or indirectly related to your job. It is hereby clarified
that a violation of this provision constitutes a violation of a fundamental condition of this Agreement, and, in addition, the aforesaid sum or benefit received by you will belong to the Company, which will be entitled to deduct the said sum or the
value of the benefit from all the sums due you from the Company. 

  

	 	e.	You will not carry out any action that constitutes harm to your fidelity to the Company and/or is liable to place you in a position of conflict of interest vis-à-vis the
Company. You hereby undertake to immediately inform the Company of any matter or issue in which you have a personal stake and/or any other action that is liable to place you in the aforesaid position. 

  

	 	f.	Commencement of your employment pursuant to this Agreement is conditional upon your signature on the Confidentiality Agreement attached to this Agreement as Appendix A, and
constitutes an integral part thereof. 

  

	 	g.	 You hereby undertake to inform the Company’s CEO of any business opportunity related in any way to the information specified in Appendix A. You undertake to
refrain from designating yourself or any other person for 

  

	 	 
such an opportunity, be it directly or indirectly, unless the CEO has given his advance written approval for same. 

  

	7.	Transferring the Position 

  
 In the case of termination of your job, and/or expiration of this Agreement for any reason whatsoever, you undertake to transfer your position – and
without derogating from the generality of the aforesaid – and all the matters you handle and/or any information whatsoever in your possession and which relates in any way to your job at the Company. Said transfer will be performed in an orderly
and full manner, and include disclosure of any important detail regarding the Company’s dealings. You further undertake to transfer to the Company all the documents, information, material, equipment, and the like, which you have received and/or
prepared in relation to your job at the Company, up to termination of your job at the Company; said transfer will be performed in an orderly and full manner. 
  

	8.	Declaration of Confidentiality 

  
 You undertake to maintain confidentiality, both during and after your employment at the Company, as specified in the Pledge to Maintain Confidentiality
attached to this Agreement as Appendix A, which constitutes an integral part thereof. 
  

	9.	Patents, Inventions and Trade Secrets 

  

	 	a.	The copyrights on any invention and/or patent and/or trade secret and/or professional secret and/or innovation whatsoever conceived by you and/or by any of the Company’s
employees subordinate to you during your Period of Employment at the Company will be the sole property of the Company. 

  
 The Company will be entitled to protect an aforesaid invention and/or patent and/or trade secret by duly registering same or by performing any other
action, be it in Israel or anywhere else. 
  
 It is hereby
clarified that you will not be entitled to register the invention and/or patent and/or trade secret, or take any action related to them, except actions that are required for registration or exploitation of the aforementioned by or on behalf of the
Company. 
  

	 	b.	You undertake to inform the Company, in writing, of any invention and/or patent and/or trade secret conceived by you and/or by any of the Company’s employees subordinate to
you, once you become aware of same. 

  

	 	c.	The aforesaid in this section is supplementary to Appendix A of this Agreement. 

  
 On the occasion of signing this personal employment contract, we welcome you to the Company and wish you the utmost satisfaction from your
job. 
  

 We hope this will mark the beginning of many years of cooperation between us for your own personal benefit as well as
that of the Company. 
  
 Sincerely yours,

 Leah Sadeh 
 VP Human Resources 
 DSP Group Ltd. 
  
 I have read this letter carefully and hereby consent to its contents. 
  
 I know that the salary conditions I have been offered, and those that will prevail during my
employment, are personal, and that this letter constitutes a personal, unique employment contract that formalizes my relationship with the Company; therefore, I hereby confirm my knowledge of the fact that I will not be subject to the provisions of
any other agreements, including collective-bargaining agreements, between the Company and its employees as long as this Agreement is valid, and I hereby undertake to maintain the confidentiality of said conditions. 
  

			
		
	 /s/ Inon Beracha
	 	 6/14/2004

	 signature
	 	 

	
	
	 [Number]

	 ID No.

	
	
	 Inon Beracha

  

 Appendix A to my Employment Agreement with DPS Group Ltd. 
  
 Pledge of Confidentiality 
  

			
	Whereas	  	I hereby request to be employed at DPS Group Ltd. (Private Company No. 511354722) (hereinafter: the “Company);
		
	and whereas	  	the Company has clarified to me the importance it attaches to the obligations specified in this document below, including everything related to the maintenance of confidentiality and
non-competition (hereinafter: the “Obligations”);
		
	and whereas	  	the Company has conditioned my employment at the Company on my pledge to fulfill them;
		
	and whereas	  	“Company” for the matter of this obligation includes also the American parent company, DSP Group, Inc. (hereinafter: the “American Company”), the subsidiaries of Voicecom
Ltd. and Voice Pump, Inc. and the subsidiary of the American Company, RF Integrated Systems, Inc.;
		
	and whereas	  	I know that the Company took said obligations into account when it determined my salary and eligibility for employee options (hereinafter; the “Employment Terms”)
		
	and whereas	  	I have given my full consent to the limitations stemming from the obligations, after having understood their meaning, examined their scope and weighed the consideration for
them;
		
	and whereas	  	the Employment Terms agreed to between myself and the Company constitute, from my viewpoint, proper consideration for the obligations;
		
	and whereas	  	I hereby take the obligations upon myself;
		
	and whereas	  	I hereby undertake to fulfill the obligations that I have assumed;
		
	and whereas	  	I know that, on the basis of the aforementioned, the Company has consented to employ me;

  
 therefore, I hereby
declare and undertake the following: 
  

	1.	The preamble to this document constitutes an integral part thereof. 

  

	2.	Confidentiality 

  

	 	2.1	 I hereby undertake to maintain full and total confidentiality regarding everything directly or indirectly related to the Company and its business, including
professional and/or commercial information related to the Company and/or its customers and/or bodies and people with whom the 

  

	 	 
Company deals; inclusive of the aforesaid, I hereby undertake, both regarding Israel and any other place outside of Israel, not to reveal or make available
to others any information whatsoever related to same in any form whatsoever, be it directly and/or indirectly, except information in the public domain (hereinafter: the “Confidential Information”), and not to use said Confidential
Information for my own personal needs or for the purpose of deriving any benefit for myself – or for others, be it during my employment period at the Company or during any other subsequent period, when the Confidential Information is passed or
revealed to me in consequence of my employment or during my aforesaid employment, be it by the Company, directly or indirectly, through hearing, sight or reading, including from third parties with whom the company deals, as well as when the
Confidential Information is the product of an idea or self-development during my employment period or in consequence of my aforesaid employment, except for the purpose of carrying out my job during my employment period at the Company.

  
 In this Agreement – the Confidential
Information, including technical and commercial know-how and data (whether written or verbal), drafts, documents (reports, papers and records, assignation requests), descriptions, plans, software, hardware, trade secrets, including information
related to the Company’s customers, suppliers and business partners and/or to the Company’s production or marketing system or which concerns the relations of the Company and/or its associated companies, control, are controlled, or are
potentially or actually affiliated with any third parties whatsoever, including customers, suppliers, banking institutions, governmental institutions, and private, quasi-public or public entities of any type as well as any business, financial,
commercial know-how, financial statements and balances before their publication, and any internal information whatsoever that can affect the value of the Company’s shares, formulae, data, plans, patents, inventions, discoveries, innovations,
improvements, research, methods of any kind, progress in scientific, technical, economic, commercial or other developments, patent application letters, prototypes, samples, pictures, descriptions, blueprints, sketches, sun prints, booklets, models
and specification documents, lists, documentation, source and object codes, films, tapes, discs and other storage means, letters, records, record booklets, reports and flow charts, as well as information related to the Company’s current
business and/or business that the Company is going to conduct (as it will develop and as is described by the Company in its development plan booklet and business plans or in any other informational material on behalf of the Company) sales reports,
short- and long-term policy covering Company-related, products, product features, marketing methods, customer lists, price lists, discounts, supplier lists, business/commercial/financial contacts, economic calculations, including operating and
product costs, and every other thing and matter that contains confidential information or which is liable to serve as a source of confidential information, including any information of commercial, technical and non-technical value, written and
unwritten, data, set of lists, models, specification documents, source and destination codes, processes, algorithms, computer magnetic tape, discs and other 

  

 
storage means that are tantamount to intellectual property or confidential material of the Company or of any of its predecessors or of its associated
companies, in whole or in part, and particularly including, without limitation, computer hardware, computer programmer’s plans and applications, price matters marketing information, as well as inventions that are not limited according to the
definition of an invention as it is stipulated in the applicable Israeli or US patent laws, and each improvement or adaptation of the said information was planned, developed or obtained by me or for the Company, directly or indirectly, provided that
it is not information and/or an available product that is in the public domain or can be purchased freely from an independent third party, and everything in relation to any matter related to the Company’s business and/or customers or which
stems therefrom or is related in any way whatsoever, provided that is not in the public domain. 
  

	 	2.2	Without derogating from the generality of the aforesaid in Section 2.1 above, I hereby undertake not to reveal and/or transfer and/or sell – be it for consideration or not for
consideration – and/or to cause the exposure of the Confidential Information, directly or indirectly, and to take all the measures to maintain the confidentiality of the information and prevent said information from reaching any third party
whatsoever, person, body or corporation, other than my superiors at the Company or in accordance with their instructions for the purpose of fulfilling my duty as an employee of the Company. 

  

	 	2.3	I hereby undertake not to make any use of the information, in whole or in part, for my own needs or for other needs, directly or indirectly, other than for the purpose of performing
my tasks as an employee of the Company in accordance with the instructions given by my superiors, and not to make copies of the information in any manner whatsoever or in any form whatsoever, except in accordance with instructions given by the
Company or by anyone authorized to do so on its behalf. 

  

	 	2.4	I hereby undertake not to take any materials whatsoever that relate to information or products, or any equipment from the Company without obtaining the advance express written
consent of: (1) the Company’s president or CEO, or (2) a person who has been authorized to do so, in writing, by the Company’s president or CEO. 

  

	 	2.5	I know that my failure to safeguard any confidential information and/or my performance of an act construed as jeopardizing the security of the Confidential Information will, for the
matter of this document, be tantamount to passing on the Confidential Information without the Company’s consent, as stated above. 

  

	 	2.6	Without derogating from the statements above and below, I know that I do not, and will not, have any proprietary rights in the Confidential Information defined in this document.

  

	 	2.6.1 	I hereby undertake to inform the Company and/or those who come in its stead and/or its assignees of any inventions revealed to me during my Employment Period at the Company and/or
in consequence of my work at the Company, and are related to the Company’s business and/or to the information, and I hereby assign every interest I have, or will have, in said inventions for the benefit of the Company and/or those who come in
its stead and/or its assignees, without receiving any additional consideration for said assignation, provided that I will not be required to bear any expenses whatsoever for the aforesaid assignation. 

  
 If I create an invention that is registered as a patent either during my
Employment Period at the Company or in consequence of my work at the Company, the Company will register my name on the patent documents as the inventor, provided that the Company is convinced beyond all doubt that the invention was indeed created by
me, and that said registration does not constitute an infringement upon the proprietary and/or other rights of the Company and/or those who come in its stead and/or its assignees, in said invention and/or patent specified above. 
  

	 	2.6.2 	I hereby undertake that, as long as I am required to do so, including during the period following termination of my employment for any reason whatsoever, I will sign every document
that the Company deems necessary for the submission of an application for a patent or copyrights in accordance with the laws of Israel, the US and/or any foreign country in order to protect the Company’s interest in the aforesaid invention.

  

	 	2.6.3 	I hereby declare that, apart from the contents of Section 2.6.4 below, I possess no interest in any patent or patent application whatsoever, and not even in material subject to the
copyrights, patents and patent applications currently belonging to me. 

  

	 	2.6.4 	Existing patents and/or pending patent applications, and/or research activities at the stage of patent registration submission: 

  
 1. ________________________________________________________

  
 2.
________________________________________________________ 
  
 3. ________________________________________________________ 
  
 4. ________________________________________________________ 
  

	 	2.7	I know that disclosure of the information and/or any part thereof to any third party whatsoever is liable to cause the Company severe damage, and I hereby undertake that I will not,
in any way, perform an action involving a transfer and/or sale of the information and/or the products developed by the Company and/or existing products and/or which have been developed either by myself, in cooperation with others – including
customers of the Company – or in cooperation with any third party whatsoever, to customers of the Company or to others. 

  

	 	2.8	I declare my understanding that the nature of the Company’s business is such that, by entering into contractual arrangements with third parties, it undertakes and/or is likely
to undertake confidentiality obligations that also apply to its employees, and non-fulfillment of the aforesaid obligations will constitute, among other things, a contract violation between the Company and the third party. I hereby undertake,
therefore, to fulfill all said obligations as stipulated between the Company and the third party, as stated above. 

  

	 	2.9	I hereby undertake not to directly or indirectly damage the Company’s reputation of and/or its status among its actual and potential customers. 

  
 I hereby undertake to safeguard the confidentiality of information related
to all the financial aspects of the Company’s activity, including relations with banking institutions and the customs and tax authorities, and the Company’s liabilities and rights vis-à-vis third parties. Furthermore, I will
safeguard the confidentiality of the information that comes into my hands and is related to entities such as the investment center, the Chief Scientist, the Company’s accountants and legal advisors, and the like. 
  

	 	2.10	In order to dispel any manner of doubt, it is hereby stressed that my obligations as stated above will be in effect both during my Employment Period at the Company and following
termination of my employment at the Company for any reason whatsoever, and will also obligate my legal representatives, without time limitations. 

  

	 	2.11	I hereby agree that each document I have prepared and/or information I have obtained for the purpose of performing my job at the Company and/or work during my Employment Period at
the Company is the Company’s property that will be transferred to the Company immediately following my employment as specified below. Furthermore, I hereby undertake to return to the Company all information – be it in written or any other
form – that is or will be in my possession at any time, and I will do so immediately following conclusion of my employment for any reason whatsoever, or immediately on demand by the Company at any time. 

  

	3.	 I again hereby declare that I know that that the obligations in this document are especially important to the Company and constituted a precondition to my
employment and were taken into account when the Company determined the Employment Terms, and that I fully consented to the limitations stemming therefrom after having understood their meaning, examined their scope, and 

  

	 	 
weighed the consideration for them; therefore, I know that any violation of the obligations I have taken upon myself will grant the Company all the legal
rights and remedies. 

  

					
			
	 6/14/2004
	 	 	 	 /s/ Inon Beracha

	 Date
	 	 	 	 Employee’s Signature1997 Equity Incentive Plan, as amended

 Exhibit 10.7 
  
 EXAR CORPORATION 
 1997 EQUITY INCENTIVE PLAN 
  
 1. PURPOSE.

  
 (a) The purpose of the 1997 Equity Incentive Plan (the
“Plan”) is to provide a means by which selected employees and directors of and consultants to Exar Corporation, a Delaware corporation (the “Company”), and its Affiliates, as defined in subparagraph 1(b), may be given an
opportunity to benefit from increases in value of the stock of the Company through the granting of (i) incentive stock options, (ii) nonstatutory stock options, and (iii) stock bonuses, all as defined below and collectively referred to as
“Stock Awards”. 
  
 (b) The word “Affiliate”
as used in the Plan means any parent corporation or subsidiary corporation of the Company, as those terms are defined in Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986, as amended (the “Code”). 
  
 (c) The Company, by means of the Plan, seeks to retain the services of
persons now employed by or serving as consultants or directors to the Company, to secure and retain the services of persons capable of filling such positions, and to provide incentives for such persons to exert maximum efforts for the success of the
Company. 
  
 (d) The Company intends that the Stock Awards issued
under the Plan shall, in the discretion of the Board of Directors of the Company (the “Board”) or any committee to which responsibility for administration of the Plan has been delegated pursuant to subparagraph 2(c), be either incentive
stock options as that term is used in Section 422 of the Code (“Incentive Stock Options”), options which do not qualify as Incentive Stock Options (“Nonstatutory Stock Options”) or stock bonuses as described in paragraph 6 hereof
(“Stock Bonuses”). All options shall be separately designated Incentive Stock Options or Nonstatutory Stock Options at the time of grant, and in such form as issued pursuant to paragraph 5, and a separate certificate or certificates will
be issued for shares purchased on exercise of each type of option. An option designated as a Nonstatutory Stock Option shall not be treated as an Incentive Stock Option. 
  
 2. ADMINISTRATION. 
  
 (a) The Plan shall be administered by the Board unless and until the Board delegates administration to a committee, as provided in subparagraph 2(c).

  
 (b) The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan: 
  
 (1) To
determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how Stock Awards shall be granted; 

 whether a Stock Award will be an Incentive Stock Option, a Nonstatutory Stock Option, a Stock Bonus or a combination of
the foregoing; 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 stock pursuant to a Stock Award; and the number of shares with respect to which Stock
Awards shall be granted to each such person. 
  
 (2) 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 fully effective. “Stock Award Agreement” means a written agreement between the Company and a holder of a Stock Award evidencing
the terms and conditions of an individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
  
 (3) To amend the Plan as provided in paragraph 12. 
  
 (4) 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.

  
 (c) The Board may delegate administration of the Plan to one
or more committees, provided, however, that if such a committee is authorized to administer Stock Awards with respect to officers and directors of the Company, such committee shall be composed of not fewer than two (2) members of the Board, all of
whom may be, in the discretion of the Board, non-employee directors as defined in subparagraph 2(d) or outside directors as defined in subparagraph 2(e). These committees are referred to herein as the “Committee,” as applicable. If
administration is delegated to a Committee, the Committee shall have, in connection with the administration of the Plan or the administration of Stock Awards with respect to officers and directors, as the case may be, the powers theretofore
possessed by the Board, subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in the Board the
administration of the Plan. Notwithstanding anything in this paragraph to the contrary, the Board or the Committee may delegate to a committee of one or more members of the Board the authority to grant options to eligible persons who (1) are not
then subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and/or (2) are either (i) not then covered employees (as defined in subparagraph 2(f)) and are not expected to be covered employees at the
time of recognition of income resulting from such option, or (ii) not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code. 
  

(d) The term “non-employee director,” as used in this Plan, shall mean a director who either (i) is not a current employee or officer of the
Company or its parent or subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or subsidiary for services rendered as a consultant or in any capacity other than as director (except for an amount as to
which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act 
  

 2 

 (“Regulation S-K”)), does not possess an interest in any other transaction as to which disclosure would be
required under Item 404(a) of Regulation S-K, and is not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for
purposes of Rule 16b-3 promulgated under the Exchange Act. 
  
 (e)
The term “outside director,” as used in this Plan, shall mean a director who either (i) is not a current employee of the Company or an “affiliated corporation” (as defined in the Treasury regulations promulgated under Section
162(m) of the Code), is not a former employee of the Company or an affiliated corporation receiving compensation for prior services (other than benefits under a tax qualified pension plan), was not an officer of the Company or an affiliated
corporation at any time, and is not currently receiving direct or indirect enumeration from the Company or an affiliated corporation for personal services 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. 
  
 (f)
The term “covered employee,” as used in this Plan, shall mean the chief executive officer and the four (4) other highest compensated officers of the Company. 
  
 3. SHARES SUBJECT TO THE PLAN. 
  
 (a) Subject to the provisions of paragraph 11 relating to adjustments upon
changes in stock, the stock that may be sold pursuant to Stock Awards granted under the Plan shall not exceed in the aggregate Seven Million One Hundred Seventy-Five Thousand (7,175,000) shares of the Company’s $.0001 par value common stock,
plus any shares of such common stock that would have become available under the Company’s 1991 Stock Option Plan due to the expiration or other termination of any stock award thereunder. If any Stock Award granted under the Plan shall for any
reason expire or otherwise terminate prior to the issuance of the stock subject to such Stock Award (or fail to vest in the case of a Stock Bonus), the stock not issued pursuant to such Stock Award shall again become available for the Plan.

  
 (b) The stock subject to the Plan may be unissued shares or
reacquired shares, bought on the market or otherwise. 
  
 4.
ELIGIBILITY. 
  
 (a) Incentive Stock Options
may be granted only to employees (including officers) of the Company or its Affiliates. A director of the Company shall not be eligible to receive Incentive Stock Options unless such director is also an employee (including an officer) of the Company
or any Affiliate. Nonstatutory Stock Options and Stock Bonuses may be granted only to employees (including officers) of, directors of or consultants to the Company or its Affiliates. 
  
 (b) No person shall be eligible for the grant of an Incentive Stock Option under the Plan if, at the time of grant, such
person owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the 
  

 3 

 total combined voting power of all classes of stock of the Company or of any of its Affiliates unless the exercise price
of such Incentive Stock Option is at least one hundred ten percent (110%) of the fair market value of such stock at the date of grant and the option is not exercisable after the expiration of five (5) years from the date of grant. 
  
 (c) Subject to the provisions of paragraph 11 relating to adjustments upon
changes in stock, no person shall be eligible to be granted options covering more than Four Hundred FiftyThousand (450,000) shares of the Company’s common stock in any calendar year. 
  
 5. OPTION PROVISIONS. 
  
 Each option shall be in such form and shall contain such terms and conditions as the Board or the Committee shall deem
appropriate. The provisions of separate options need not be identical, but each option shall include (through incorporation of provisions hereof by reference in the option or otherwise) the substance of each of the following provisions: 

 
 (a) No option shall be exercisable after the expiration of a date
specified in the option (which date shall be no more than ten (10) years from the date the option was granted). 
  
 (b) The exercise price of each Incentive Stock Option shall be not less than one hundred percent (100%) of the fair market value of the stock subject to
the option on the date the option is granted. Except as provided with respect to Deferred Salary Grants under paragraph 7. The exercise price of each Nonstatutory Stock Option shall be not less than fifty percent (50%) of the fair market value of
the stock subject to the option on the date the option is granted. Notwithstanding the foregoing, an option (whether an Incentive Stock Option or a Nonstatutory Stock Option) may be granted with an exercise price lower than that set forth in the
preceding sentence if such option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 
  
 (c) The purchase price of stock acquired pursuant to an option shall be paid, to the extent permitted by applicable statutes
and regulations, either (i) in cash at the time the option is exercised, or (ii) at the discretion of the Board or the Committee, either at the time of the grant or exercise of the option, (A) by delivery to the Company of other common stock of the
Company, (B) according to a deferred payment or other arrangement (which may include, without limiting the generality of the foregoing, the use of other common stock of the Company) with the person to whom the option is granted or to whom the option
is transferred pursuant to subparagraph 5(d), or (C) in any other form of legal consideration that may be acceptable to the Board or the Committee. 
  
 In the case of any deferred payment arrangement, interest shall be payable at least annually and shall be charged at the minimum rate of interest
necessary to avoid the treatment as interest, under any applicable provisions of the Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 
  

 4 

 (d) 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 person to whom the option is granted only by such person; provided, however, that a Nonstatutory Stock Option may be transferred to the extent provided in the option agreement. The person to whom the
option is granted may designate, by delivering written notice of the same to the Company (in a form acceptable to the Company) during such person’s lifetime, a third party who, in the event of the death of the optionee, shall thereafter be
entitled to exercise the option and receive any and all proceeds thereof. 
  
 (e) The total number of shares of stock subject to an option may, but need not, be allotted in periodic installments (which may, but need not, be equal). From time to time during each of such installment periods, the
option may become exercisable (“vest”) with respect to some or all of the shares allotted to that period, and may be exercised with respect to some or all of the shares allotted to such period and/or any prior period as to which the option
was not fully exercised. During the remainder of the term of the option (if its term extends beyond the end of the installment periods), the option may be exercised from time to time with respect to any shares then remaining subject to the option.
The provisions of this subparagraph 5(e) are subject to any option provisions governing the minimum number of shares as to which an option may be exercised. 
  
 (f) The Company may require any optionee, or any person to whom an option is transferred under subparagraph 5(d), as a condition of exercising any such
option, (1) to give written assurances satisfactory to the Company as to the optionee’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 option; and (2) to give written assurances
satisfactory to the Company stating that such person is acquiring the stock subject to the option for such person’s own account and not with any present intention of selling or otherwise distributing the stock. These requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (i) the issuance of the shares upon the exercise of the option has been registered under a then currently effective registration statement under the Securities Act of 1933, as
amended (the “Securities Act”), or (ii) 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. 

 
 (g) An option shall terminate three (3) months after termination of the
optionee’s employment or relationship as a consultant or director with the Company or an Affiliate, unless (i) such termination is due to such person’s permanent and total disability, within the meaning of Section 422(c)(6) of the Code, in
which case the option 
  

 5 

 may, but need not, provide that it may be exercised at any time within one (1) year following such termination of
employment or relationship as a consultant or director; or (ii) the optionee dies while in the employ of or while serving as a consultant or director to the Company or an Affiliate, or within not more than three (3) months after termination of such
relationship, in which case the option may, but need not, provide that it may be exercised at any time within eighteen (18) months following the death of the optionee by the person or persons entitled to exercise the option pursuant to subparagraph
5(d) hereof; or (iii) the option by its terms specifies either (A) that it shall terminate sooner than three (3) months after termination of the optionee’s employment or relationship as a consultant or director, or (B) that it may be exercised
more than three (3) months after termination of such relationship with the Company or an Affiliate. This subparagraph 5(g) shall not be construed to extend the term of any option or to permit anyone to exercise the option after expiration of its
term, nor shall it be construed to increase the number of shares as to which any option is exercisable from the amount exercisable on the date of termination of the optionee’s employment or relationship as a consultant or director. 

 
 (h) The option may, but need not, include a provision whereby the optionee
may elect at any time during the term of his or her employment or relationship as a consultant or director with the Company or any Affiliate to exercise the option as to any part or all of the shares subject to the option prior to the stated vesting
date of the option or of any installment or installments specified in the option. Any shares so purchased from any unvested installment or option may be subject to a repurchase right in favor of the Company or to any other restriction the Board or
the Committee determines to be appropriate. 
  
 (i) To the extent
provided by the terms of an option, the optionee may satisfy any federal, state or local tax withholding obligation relating to the exercise of such option by any of the following means or by a combination of such means: (1) tendering a cash
payment; (2) authorizing the Company to withhold from the shares of the common stock otherwise issuable to the participant as a result of the exercise of the stock option a number of shares having a fair market value equal to the amount of the
withholding tax obligation; or (3) delivering to the Company owned and unencumbered shares of the common stock having a fair market value equal to the amount of the withholding tax obligation. 
  
 6. STOCK BONUS PROVISIONS. 
  
 Each Stock Bonus agreement shall be in such form and shall contain such
terms and conditions as the Board or the Committee shall deem appropriate. The terms and conditions of Stock Bonus agreements may change from time to time, and the terms and conditions of separate agreements need not be identical, but each Stock
Bonus agreement shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions as appropriate: 
  
 (a) The purchase price of stock under each Stock Bonus agreement shall be such amount as the Board or Committee shall
determine and designate in such agreement. Notwithstanding the foregoing, the Board or the Committee may determine that eligible participants in the Plan may be awarded stock pursuant to a Stock Bonus agreement in consideration for past services
actually rendered to the Company or for its benefit. 
  

 6 

 (b) No rights under a Stock Bonus agreement shall be assignable by any participant under the Plan, either
voluntarily or by operation of law, except where such assignment is required by law or expressly authorized by the terms of the applicable Stock Bonus agreement. 
  
 (c) The purchase price, if any, of stock acquired pursuant to a Stock Bonus agreement shall be paid either: (i) in cash at
the time of purchase; (ii) at the discretion of the Board or the Committee, according to a deferred payment or other arrangement with the person to whom the stock is sold; or (iii) in any other form of legal consideration that may be acceptable to
the Board or the Committee in their discretion. Notwithstanding the foregoing, the Board or the Committee to which administration of the Plan has been delegated may award stock pursuant to a Stock Bonus agreement in consideration for past services
actually rendered to the Company or for its benefit. 
  
 (d)
Shares of stock sold or awarded under a Stock Bonus agreement may, but need not, be subject to a repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board or the Committee. 
  
 (e) In the event an employee, director or consultant’s employment or
relationship with the Company is interrupted or terminated by the Company or any Affiliate, the Company may repurchase or otherwise reacquire any or all of the shares of stock held by that person which have not vested as of the date of termination
under the terms of the Stock Bonus agreement between the Company and such person. 
  
 (f) To the extent provided by the terms of the Stock Bonus agreement, the recipient may satisfy any federal, state or local tax withholding obligation relating to the receipt of the Stock Bonus by any of the following
means or by a combination of such means: (1) tendering a cash payment; (2) authorizing the Company to withhold from the shares of the common stock otherwise issuable to the recipient as a result of the Stock Bonus a number of shares having a fair
market value equal to the amount of the withholding tax obligation; or (3) delivering to the Company owned and unencumbered shares of the common stock having a fair market value equal to the amount of the withholding tax obligation. 
  
 7. DEFERRED SALARY GRANTS. 
  
 (a) Any employee (including officers), director or consultant who is
selected by the Board or Committee (“Deferral Participant”) may elect to apply a portion of his or her base salary, in an amount equal to at least five thousand dollars ($5,000) but in no 
  

 7 

 event more than fifty thousand dollars ($50,000), to the acquisition of an option to purchase shares of the
Company’s common stock pursuant to the terms of this paragraph 7 (“Deferred Salary Option”). Such election is irrevocable and must be filed with the Company prior to the commencement of the calendar year in which the base salary to be
deferred is earned. Notwithstanding the foregoing, a newly hired, elected or appointed Deferral Participant may file an irrevocable election with the Company within thirty (30) days of the date the Deferral Participant commences service to the
Company. 
  
 Each Deferral Participant who files such a timely
election shall automatically be granted an option under this paragraph 7 on (i) the first trading day in January of the calendar year for which the deferral election is to be in effect; or (ii) for a newly hired, elected or appointed Deferral
Participant, the first trading day of the month following the month the Deferral Participant files such election. 
  
 (b) The number of shares of Company common stock subject to a Deferred Salary Option shall be determined pursuant to the following formula (rounded down
to the nearest whole number): 
  
 X= A / (B x
66-2/3%), where 
 X is the number of option shares, 
 A is the maximum amount of base salary subject to the deferral election, 
 and 
  
 B is the fair market value per share of the common stock on the option grant date. 
  
 (c) The purchase price per share of common stock of the Company for the
shares to be purchased pursuant to the exercise of any Deferred Salary Option shall be thirty three and one third percent (33-1/3%) of the fair market value of the Company’s common stock on the date such Deferred Salary Option is granted.

  
 (d) Each Deferred Salary Option shall vest (become
exercisable) equally over the twelve (12) month period that is the calendar year in which salary is deferred, and shall terminate on the earlier of (i) ten (10) years from the date the option was granted, or (ii) three (3) years following
termination of the Deferral Participant’s employment or relationship as a consultant or director with the Company or an Affiliate. If the Deferred Salary Option is not exercised during the applicable period, it shall be deemed to have been
forfeited and of no further force or effect. 
  
 8. COVENANTS
OF THE COMPANY. 
  
 (a) During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of stock required to satisfy such Stock Awards up to the number of shares of stock authorized under the Plan. 
  

 8 

 (b) The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over
the Plan such authority as may be required to issue and sell shares of stock under the Stock Awards granted under the Plan; provided, however, that this undertaking shall not require the Company to register under the Securities Act either the Plan,
any Stock Award granted under the Plan or any 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 which counsel for the
Company deems necessary for the lawful issuance and sale of stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell stock under such Stock Awards unless and until such authority is obtained. 

 
 9. USE OF PROCEEDS FROM
STOCK. 
  
 Proceeds from the sale of stock
pursuant to Stock Awards granted under the Plan shall constitute general funds of the Company. 
  
 10. MISCELLANEOUS. 
  
 (a) The Board or the Committee shall have the power 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, 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. 
  
 (b) The holder of a Stock Award (including any person to whom an option is transferred under subparagraph 5(d)) shall not be deemed to be the holder of,
or to have any of the rights of a holder with respect to, any shares subject to such Stock Award unless and until such person has satisfied all requirements for acquisition of the shares subject to the Stock Award pursuant to the terms of the Stock
Award Agreement. 
  
 (c) Nothing in the Plan or any instrument
executed or Stock Award granted pursuant thereto shall confer upon any eligible employee, consultant or director or the holder of Stock Awards any right to continue in the employ of the Company or any Affiliate (or to continue acting as a consultant
or director) or shall affect the right of the Company or any Affiliate to terminate the employment or consulting relationship or directorship of any eligible employee, consultant or director or other holder of Stock Awards with or without cause. In
the event that a holder of Stock Awards is permitted or otherwise entitled to take a leave of absence, the Company shall have the unilateral right to (i) determine whether such leave of absence will be treated as a termination of employment or
relationship as consultant or director for purposes of the Plan and corresponding provisions of any outstanding Stock Awards, and (ii) suspend or otherwise delay the time or times at which the shares subject to the Stock Awards would otherwise vest.

  
 (d) To the extent that the aggregate fair market value
(determined at the time of grant) of stock with respect to which incentive stock options (as defined in the Code) granted after 1986 are exercisable for the first time by any optionee during any calendar 
  

 9 

 year under all plans of the Company and its Affiliates exceeds one hundred thousand dollars ($100,000), the options or
portions thereof which exceed such limit (according to the order in which they were granted) shall be treated as Nonstatutory Stock Options. 
  
 11. ADJUSTMENTS UPON CHANGES IN STOCK. 
  
 (a) If any change is made in the stock subject to the Plan, or subject to
any Stock Award granted under the Plan (through merger, consolidation, reorganization, recapitalization, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in
corporate structure or otherwise), the Plan and outstanding Stock Awards will be appropriately adjusted in the class(es) and maximum number of shares subject to the Plan and the class(es) and number of shares and price per share of stock subject to
outstanding Stock Awards. 
  
 (b) In the event of: (1) a
dissolution or liquidation of the Company; (2) a merger or consolidation in which the Company is not the surviving corporation; (3) a reverse merger in which the Company is the surviving corporation but the shares of the Company’s common stock
outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise; or (4) any other capital reorganization in which more than fifty percent (50%) of the
shares of the Company entitled to vote are exchanged, excluding in each case a capital reorganization in which the sole purpose is to change the state of incorporation on the Company, then all outstanding options shall become exercisable in full for
a period of at least ten (10) days, and all stock bonuses shall be fully vested, prior to such event. Outstanding options which have not been exercised prior to such event shall terminate on the date of such event unless assumed by a successor
corporation. 
  
 12. AMENDMENT OF
THE PLAN. 
  
 (a) The Board at
any time, and from time to time, may amend the Plan. However, except as provided in paragraph 11 relating to adjustments upon changes in stock, no amendment shall be effective unless approved by the stockholders of the Company to the extent such
amendment requires stockholder approval in order for the Plan to satisfy the requirements of Section 422 of the Code, to comply with the requirements of Rule 16b-3 promulgated under the Exchange Act or to satisfy any Nasdaq or securities exchange
listing requirements. 
  
 (b) The Board may in its sole discretion
submit any other amendment to the Plan for stockholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations promulgated thereunder regarding the
exclusion of performance-based compensation from the limit on corporate deductibility of compensation paid to certain executive officers. 
  

 10 

 (c) It is expressly contemplated that the Board may amend the Plan in any respect the Board deems
necessary or advisable to provide optionees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder relating to employee Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith. 
  
 (d) 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 person to whom the Stock Award was granted and (ii) such person
consents in writing. 
  
 13. TERMINATION OR
SUSPENSION OF THE PLAN. 
  
 (a) The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth anniversary of the date the Plan is adopted or the date the Plan is approved
by the stockholders, whichever is earlier. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 
  
 (b) Rights and obligations under any Stock Award granted while the Plan is in effect shall not be altered or impaired by suspension or termination of the
Plan, except with the consent of the person to whom the Stock Award was granted. 
  
 14. EFFECTIVE DATE OF PLAN. 
  
 The Plan becomes effective on the date approved by the Board, but no stock bonuses shall be granted and no options shall be exercised unless and until the
Plan has been approved by the stockholders of the Company, which approval shall be within twelve (12) months before or after the date the Plan is adopted by the Board. 
  

 11

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