Document:

Form of Option Agreement under 2000 Share Plan

 Exhibit 10.2 
 ALPHA AND OMEGA SEMICONDUCTOR LIMITED 2000 SHARE PLAN 
 INCENTIVE STOCK OPTION AGREEMENT 
 (A) Name of Optionee: 
 (B) Number of Shares: 
 (C) Exercise Price: 
 (D) Vesting Base Date: 
 (E) Effective Date: 
 THIS INCENTIVE STOCK OPTION AGREEMENT (the “Agreement”), is made and entered into as of the date set forth in
Item E above (the “Effective Date”) between Alpha and Omega Semiconductor Limited, an Islands of Bermuda exempted company (the “Company”) and the person named in Item A above
(“Optionee”). 
 THE PARTIES AGREE AS FOLLOWS: 
 1. Grant of Option; Vesting Base Date. 
 1.1 Grant. The Company wishes to grant to the Optionee pursuant to its 2000 Share Plan (the “Plan”)
and this Agreement the Incentive Stock Option (“ISO”) to purchase all or any part of that number of Common Shares of the Company (the “ISO Shares”) as set forth above in Item B (the “Grant”). 
 1.2 Vesting Base Date. The parties hereby establish the date set forth in Item D above as the Vesting Base
Date (as defined in Section 5.1 below). 
 2. Exercise Price. The exercise price for purchase of each Common
Share covered by this ISO shall be the price set forth in Item C above. 
 3. Term. The term of this ISO
shall be the maximum provided for in Section 8(b) of the Plan and shall expire as provided in Section 8 of the Plan. 
 4. Adjustment of ISOs. The Company shall adjust the number and kind of shares and the exercise price thereof in certain circumstances in accordance with the provisions of Section 13 of the Plan. 
 5. Exercise of Options. 
 5.1 Vesting; Time of Exercise. This ISO shall be exercisable according to the schedule set forth in Exhibit 5.1 attached hereto. Such schedule shall commence as of the date set forth in
Item D above (the “Vesting Base Date”). 
 5.2 Exercise After Termination of
Status as an Employee. In the event of termination of Optionee’s continuous status as an Employee, this ISO may be exercised only in accordance with the provisions of Section 8(c) of the Plan; provided, however, that in the event
of termination of Optionee’s continuous status as an Employee, for any reason other than death or disability, this ISO may be exercised in whole or in part at any time within thirty days of the date of such termination (but in no event after
the expiration of the term of the Plan). 
 5.3 Manner of Exercise. Optionee may exercise this ISO,
or any portion of this ISO, by giving written notice to the Company at its principal executive office, to the attention of the Officer of the Company designated by the Administrator, accompanied by a copy of the Share Purchase Agreement in
substantially the form attached hereto as Exhibit 5.3 executed by Optionee (or at the option of the Company such other form of share purchase agreement as shall then be acceptable to the Company), payment of the exercise price and payment of
any applicable withholding or employment taxes. The date the Company receives written notice of an exercise hereunder accompanied by payment will be considered as the date this ISO was exercised. 

 5.4 Payment. Payment may be made for ISO Shares purchased at
the time written notice of exercise of the ISO is given to the Company, by delivery of cash, check or, in the exercise of the absolute discretion of the Administrator, previously owned Common Shares (including constructive delivery, provided that
actual or constructive delivery of previously owned shares may not be made other than once in any six month period) or a full recourse promissory note equal to up to 90% of the exercise price and payable over no more than five years provided such
payment is acceptable in accordance with the provisions of the Plan. Any applicable taxes must be paid in cash. The proceeds of any payment shall constitute general funds of the Company. 
 5.5 Delivery of Certificate. Promptly after receipt of written notice of exercise of the ISO, the Company
shall, without share or transfer taxes to the Optionee or other person entitled to exercise, deliver to the Optionee or other person a certificate or certificates for the requisite number of ISO Shares or shall register the Optionee as a shareholder
on the books of the Company. An Optionee or transferee of an Optionee shall not have any privileges as a shareholder with respect to any ISO Shares covered by the option until the date of issuance of a share certificate or, if applicable, such
registration. 
 6. Nonassignability of ISO. This ISO is not assignable or transferable by Optionee except by will
or by the laws of descent and distribution. During the life of Optionee, the ISO is exercisable only by the Optionee. Any attempt to assign, pledge, transfer, hypothecate or otherwise dispose of this ISO in a manner not herein permitted, and any
levy of execution, attachment, or similar process on this ISO, shall be null and void. 
 7. Company’s Right of
Repurchase Upon Termination of Employment. The ISO Shares arising from exercise of this ISO shall be subject to a right of repurchase in favor of the Company (the “Right of Repurchase”) to the extent set forth in
Exhibit 7 attached hereto (the absence of such Exhibit indicating that no such exhibit was intended and that the NSO shall be subject to the limitations set forth in Exhibit 5.1) in the manner and upon the terms provided for in the
Companies Act. If the Optionee’s employment with the Company terminates before the Right of Repurchase lapses in accordance with Exhibit 7, the Company may purchase ISO Shares subject to the Right of Repurchase (either by payment of cash
or by cancellation of purchase money indebtedness) for an amount equal to the price the Optionee paid for such ISO Shares (exclusive of any taxes paid upon acquisition of the shares) by giving notice at any time within the later of (a) 30 days
after the acquisition of the ISO Shares upon option exercise, or (b) 90 days after such termination of employment that the Company is exercising its right of repurchase. The Company shall include with such notice payment in full in cash or by
evidence of cancellation of purchase money indebtedness. The Optionee may not dispose of or transfer ISO Shares while such shares are subject to the Right of Repurchase and any such attempted transfer shall be null and void. 
 8. Company’s Right of First Refusal. 
 8.1 Right of First Refusal. In the event that the Optionee proposes to sell, pledge, or otherwise transfer any
ISO Shares or any interest in such shares to any person or entity, the Company shall have a right of first refusal (the “Right of First Refusal”) to purchase such ISO Shares in the manner and upon the terms provided for in
the Companies Act. If Optionee desires to transfer ISO Shares, Optionee shall give a written notice (the “Transfer Notice”) to the Company describing fully the proposed transfer, including the number of ISO Shares proposed to
be transferred, the proposed transfer price, and the name and address of the proposed transferee. The Transfer Notice shall be signed both by Optionee and by the proposed transferee and must constitute a binding commitment of both such parties for
the transfer of such ISO Shares. The Company may elect to purchase all, but not less than all, of the ISO Shares subject to the Transfer Notice by delivery of a notice of exercise of the Company’s Right of First Refusal within 30 days after the
date the Transfer Notice is delivered to the Company. The purchase price paid by the Company shall be the price per share equal to the proposed per share transfer price, and shall be paid to the Optionee within 60 days after the date the Transfer
Notice is received by the Company, unless a longer period for payment was offered by the proposed transferee, in which case the Company shall pay the purchase price within such longer period. The Company’s rights under this Section 8.1
shall be freely assignable, in whole or in part. Notwithstanding

  

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the foregoing, the Right of First Refusal does not apply to a transfer of shares by gift or devise to the Optionee’s immediate family (i.e., parents, spouse or children or to a trust for the
benefit of the Optionee or any of the Optionee’s immediate family members), but does apply to any subsequent transfer of such shares by such immediate family members. 
 8.2 Transfer of ISO Shares. If the Company fails to exercise the Right of First Refusal within 30 days after
the date the Transfer Notice is delivered to the Company, the Optionee may, not later than 75 days following delivery to the Company of the Transfer Notice, conclude a transfer of the ISO Shares subject to the Transfer Notice on the terms and
conditions described in the Transfer Notice. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any subsequent proposed transfer by the Optionee, shall again be subject to the Right of
First Refusal and shall require compliance by the Optionee with the procedure described in Section 8.1 of this Agreement. If the Company exercises the Right of First Refusal, the parties shall consummate the sale of ISO Shares on the terms set
forth in the Transfer Notice, other than price which shall be paid as set forth under Section 8.1; provided, however, in the event the Transfer Notice provides for payment for the ISO Shares other than in cash, the Company shall have the option
of paying for the ISO Shares by paying in cash the present value of the consideration described in the Transfer Notice; and further provided that if the value of noncash consideration is to be paid and the Optionee disagrees with the value
determined by the Company, the Optionee may request an independent appraisal by an appraiser acceptable to the Optionee and the Company, the costs of such appraisal to be borne equally by the Optionee and the Company. 
 8.3 Binding Effect. The Right of First Refusal shall inure to the benefit of the successors and assigns of the
Company and shall be binding upon any transferee of ISO Shares including a transferee acquiring ISO Shares in a transaction where the Company failed to exercise the Right of First Refusal (a “Subsequent Transferee”) or a
transferee of a Subsequent Transferee. 
 8.4 Termination of Company’s Right of First Refusal.
Notwithstanding anything in this Section 8, the Company shall have no Right of First Refusal, and Optionee shall have no obligation to comply with the procedures in Sections 8.1 through 8.3 after the earlier of (i) the closing of the
Company’s initial public offering to the public generally or (ii) the date that is 10 years after the Effective Date. 
 9. Market Standoff. Optionee hereby agrees that if so requested by the Company or any representative of the underwriters in connection with any registration of the offering of the securities of the Company under the Securities
Act of 1933, as amended (the “Securities Act”), Optionee shall not sell or otherwise transfer the ISO Shares for a period of 180 days following the effective date of a Registration Statement filed under the Securities Act;
provided that such restrictions shall only apply to the first two registration statements of the Company to become effective under the Securities Act which include securities to be sold on behalf of the Company in an underwritten public offering
under the Securities Act. The Company may impose stop transfer instructions with respect to the ISO Shares subject to the foregoing restrictions until the end of each such 180-day period. 
 10. Restriction on Issuance of Shares. 
 10.1 Legality of Issuance. The Company shall not be obligated to sell or issue any ISO Shares pursuant to this
Agreement if such sale or issuance, in the opinion of the Company and the Company’s counsel, might constitute a violation by the Company of any provision of law or applicable regulatory requirement, including without limitation the provisions
of the Securities Act or the requirement of the Bermuda Monetary Authority. 
 10.2 Registration or
Qualification of Securities. The Company may, but shall not be required to, register or qualify the sale of this ISO or any ISO Shares under the Securities Act or any other Applicable Laws. The Company shall not be obligated to take any
affirmative action in order to cause the grant or exercise of this option or the issuance or sale of any ISO Shares pursuant thereto to comply with any law or the requirement of the Bermuda Monetary Authority. 
  

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 11. Restriction on Transfer. Regardless whether the sale of the ISO Shares has
been registered under the Securities Act or has been registered or qualified under the securities laws of any state, the Company may impose restrictions upon the sale, pledge, or other transfer of ISO Shares (including the placement of appropriate
legends on share certificates) if, in the judgment of the Company and the Company’s counsel, such restrictions are necessary or desirable in order to achieve compliance with the provisions of the Securities Act, the securities laws of any
state, or any other law, or if the Company does not desire to have a trading market develop for its securities. 
 12.
Share Certificate Restrictive Legends. Share certificates evidencing ISO Shares may bear such restrictive legends as the Company and the Company’s counsel deem necessary or advisable under Applicable Laws or pursuant to this
Agreement. 
 13. Disqualifying Dispositions. If shares acquired by exercise of this ISO are disposed of within
two years after the Effective Date or within one year after date of such exercise (as determined under Section 5.3 of this Agreement), the Optionee immediately prior to the disposition shall promptly notify the Company in writing of the date
and terms of the disposition and shall provide such other information regarding the disposition as the Company may reasonably require. 
 14. Representations, Warranties, Covenants, and Acknowledgments of Optionee Upon Exercise of ISO. Optionee hereby agrees that in the event that the Company and the Company’s counsel deem it necessary or advisable in the
exercise of their discretion, the issuance of ISO Shares may be conditioned upon certain representations, warranties, and acknowledgments by the person exercising the ISO (the “Purchaser”), including, without limitation,
those set forth in Sections 14.1 through 14.8 inclusive: 
 14.1 Investment. Purchaser is
acquiring the ISO Shares for Purchaser’s own account, and not for the account of any other person. Purchaser is acquiring the ISO Shares for investment and not with a view to distribution or resale thereof except in compliance with Applicable
Laws regulating securities. 
 14.2 Business Experience. Purchaser is capable of evaluating the
merits and risks of Purchaser’s investment in the Company evidenced by purchase of the ISO Shares. 
 14.3
Relation to Company. Purchaser is presently an Officer, Director, or other Employee of, or Consultant to the Company, and in such capacity has become personally familiar with the business, affairs, financial condition, and results of
operations of the Company. 
 14.4 Access to Information. Purchaser has had the opportunity to ask
questions of, and to receive answers from, appropriate executive officers of the Company with respect to the terms and conditions of the transaction contemplated hereby and with respect to the business, affairs, financial condition, and results of
operations of the Company. Purchaser has had access to such financial and other information as is necessary in order for Purchaser to make a fully informed decision as to investment in the Company by way of purchase of the ISO Shares, and has had
the opportunity to obtain any additional information necessary to verify any of such information to which Purchaser has had access. 
 14.5 Speculative Investment. Purchaser’s investment in the Company represented by the ISO Shares is highly speculative in nature and is subject to a high degree of risk of loss in whole
or in part. The amount of such investment is within Purchaser’s risk capital means and is not so great in relation to Purchaser’s total financial resources as would jeopardize the personal financial needs of Purchaser or Purchaser’s
family in the event such investment were lost in whole or in part. 
 14.6 Registration. Purchaser
must bear the economic risk of investment for an indefinite period of time because the sale to Purchaser of the ISO Shares has not been registered under the Securities Act and the ISO Shares cannot be transferred by Purchaser unless such transfer is
registered under the Securities Act or an exemption from such registration is available. The Company has made no agreements, covenants, or undertakings whatsoever to register the transfer of any of the ISO Shares under the Securities Act. The
Company has made no representations, warranties, or covenants whatsoever as to whether any exemption

  

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from the Securities Act, including without limitation any exemption for limited sales in routine brokers’ transactions pursuant to Rule 144, will be available; if the exemption under
Rule 144 is available at all, it may not be available until at least one year after payment of cash for the ISO Shares and not then unless: (i) a public trading market then exists in the Common Shares; (ii) adequate information as to
the Company’s financial and other affairs and operations is then available to the public; and (iii) all other terms and conditions of Rule 144 have been satisfied. Purchaser understands that the resale provisions of Rule 701 will
not apply until 90 days after the Company becomes subject to the reporting obligations of the Securities Exchange Act of 1934 (typically 90 days after the effective date of an initial public offering). 
 14.7 Public Trading. None of the Company’s securities is presently publicly traded, and the Company has
made no representation, covenant, or agreement as to whether there will be a public market for any of its securities. 
 14.8 Tax Advice. The Company has made no warranties or representations to Purchaser with respect to the income tax consequences of the transactions contemplated by the agreement pursuant to which the ISO Shares will be
purchased and Purchaser is in no manner relying on the Company or its representatives for an assessment of such tax consequences. 
 15. Code Section 409A Waiver and Release. Optionee understands and agrees that the Grant is made subject to and in accordance with the terms of the Plan. Optionee further agrees to be bound by the Code Section 409A
Waiver and Release attached hereto as Exhibit 5.4. Optionee hereby acknowledges receipt of a copy of the Plan in the form attached hereto as Exhibit 1. 
 16. Assignment; Binding Effect. Subject to the limitations set forth in this Agreement, this Agreement shall be binding upon and inure to the benefit of the executors, administrators, heirs,
legal representatives, and successors of the parties hereto; provided, however, that Optionee may not assign any of Optionee’s rights under this Agreement. 
 17. Damages. Optionee shall be liable to the Company for all costs and damages, including incidental and consequential damages, resulting from a disposition of ISO Shares which is not in
conformity with the provisions of this Agreement. 
 18. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of California, USA, excluding those laws that direct the application of the laws of another jurisdiction. 
 19. Notices. All notices and other communications under this Agreement shall be in writing. Unless and until the Optionee is notified in writing to the contrary, all notices, communications,
and documents directed to the Company and related to the Agreement, if not delivered by hand, shall be mailed, addressed as follows: 
  

	
	Alpha and Omega Semiconductor Limited
	 495 Mercury Drive

	 Sunnyvale, CA 94085

	Attention: President

 Unless and until the Company is
notified in writing to the contrary, all notices, communications, and documents intended for the Optionee and related to this Agreement, if not delivered by hand, shall be mailed to Optionee’s last known address as shown on the Company’s
books. Notices and communications shall be mailed by first class mail, postage prepaid; documents shall be mailed by registered mail, return receipt requested, postage prepaid. All mailings and deliveries related to this Agreement shall be deemed
received when actually received, if by hand delivery, and two business days after mailing, if by mail. 
 20.
Arbitration. Any and all disputes or controversies arising out of this Agreement shall be finally settled by arbitration conducted in Santa Clara County, California, USA, in accordance with the then existing rules of

  

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the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof; provided that nothing in this
Section 19 shall prevent a party from applying to a court of competent jurisdiction to obtain temporary relief pending resolution of the dispute through arbitration. The parties hereby agree that service of any notices in the course of such
arbitration at their respective addresses as provided for in Section 18 shall be valid and sufficient. 
 21. Entire
Agreement. Company and Optionee agree that this Agreement (including its attached Exhibits) is the complete and exclusive statement between Company and Optionee regarding its subject matter and supersedes all prior proposals, communications,
and agreements of the parties (including any letter from the Company to Optionee setting forth proposed terms of employment), whether oral or written, regarding the grant of share options or issuances of shares to Optionee. 
  

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 IN WITNESS WHEREOF, the parties have executed this Incentive Stock Option Agreement as of
the Effective Date. 
  

			
	ALPHA AND OMEGA SEMICONDUCTOR LIMITED
	 By:
	 	  

	 Title:
	 	  

 The Optionee hereby accepts and agrees to be bound by all of the terms and conditions of this Agreement and the Plan. 
  

	
	  

	Optionee

 Optionee’s spouse
indicates by the execution of this Incentive Stock Option Agreement his or her consent to be bound by the terms thereof as to his or her interests, whether as community property or otherwise, if any, in the option granted hereunder, and in any ISO
Shares purchased pursuant to this Agreement. 
  

	
	  

	Optionee’s Spouse

  

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 EXHIBITS 
  

			
		
	Exhibit 1	  	2000 Share Plan
		
	Exhibit 5.1	  	Time of Exercise
		
	Exhibit 5.3	  	Share Purchase Agreement
		
	Exhibit 5.4	  	Code Section 409A Waiver and Release

  

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 EXHIBIT 1 OF THE INCENTIVE STOCK 
 OPTION AGREEMENT 
 2000 SHARE PLAN 
  

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 EXHIBIT 5.1 OF THE INCENTIVE STOCK 
 OPTION AGREEMENT 
 The ISO shall be immediately exercisable with respect to one-fifth (1/5) of the total number of ISO Shares twelve (12) months after the Vesting Base Date and with respect to an additional one-sixtieth (1/60) of the total
number of ISO Shares on the monthly anniversary of the Vesting Base Date of each month thereafter, so that the ISO shall be exercisable with respect to all of the ISO Shares on and after five (5) years after the Vesting Base Date. 

 

							
	Executed by:	 		 	ALPHA AND OMEGA SEMICONDUCTOR LIMITED
				
		 		 	By:	 	 
		 		 	Title:	 	 
		 		 		 	
		 		 		 	 
		 		 		 	 Optionee

  

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 EXHIBIT 5.3 OF THE INCENTIVE STOCK 
 OPTION AGREEMENT 
 SHARE PURCHASE AGREEMENT 
 ALPHA AND OMEGA SEMICONDUCTOR LIMITED 
 THIS SHARE PURCHASE AGREEMENT is made and entered into this
            day of                     ,
            (the “Exercise Date”) by and between Alpha and Omega Semiconductor Limited, an Islands of Bermuda company (the “Company”), and
            (“Optionee”) under the Company’s 2000 Share Plan (the “Plan”). 
 Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Share Purchase Agreement (the
“Agreement”). 
 1. Exercise of Option. Effective as of the Exercise Date,
                    ,             , the Optionee hereby elects to exercise
Optionee’s option to purchase             shares of Common Shares (the “Purchased Shares”) under and pursuant to the Plan and the [Incentive] [Nonstatutory]
Stock Option Agreement dated                     ,             (the “Option
Agreement”). 
 2. Delivery of Payment. Optionee herewith delivers to the Company the full purchase price of
the Purchased Shares, as set forth in the Option Agreement, and any and all withholding taxes due in connection with the exercise of the Option, and shall deliver whatever additional documents may be required by the Option Agreement as a condition
for exercise. 
 3. Representations of Optionee. Optionee acknowledges that Optionee has received, read and understood
the Plan and the Option Agreement and agrees to abide by and be bound by their terms and conditions. 
 4. Optionee’s
Representations. In the event the Shares have not been registered under the Securities Act, as amended, at the time this Option is exercised, the Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of
this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit A. 
 5. Rights as Shareholder. Until the issuance of the Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a shareholder shall exist with respect to the Purchased Shares, notwithstanding the exercise of the Option. The Purchased Shares shall be issued to the Optionee as soon as practicable after the Option
is exercised in accordance with the Option Agreement. No adjustment shall be made for a dividend or other right for which the record date is prior to the date of issuance except as provided in Section 13 of the Plan. 
 6. Company’s Right of First Refusal 
 (a) Right of First Refusal. In the event that Optionee proposes to sell, pledge, or otherwise transfer any Purchased
Shares or any interest in such shares to a bona-fide third party offeror, the Company shall have a right of first refusal (the “Right of First Refusal”) with respect to such Purchased Shares. If Optionee desires to transfer
Purchased Shares, Optionee shall give a written notice (the “Transfer Notice”) to the Company describing fully the proposed transfer, including the number of Purchased Shares proposed to be transferred, the proposed transfer
price, and the name and address of the bona-fide third party offeror. The Transfer Notice shall be signed both by Optionee and by the bona-fide third party offeror and must constitute a binding commitment of both such parties for the transfer of
such Purchased Shares. The Company may elect to purchase the Purchased Shares subject to the Transfer Notice by delivery of a notice of exercise of the Company’s Right of First Refusal within 30 days after the date the Transfer Notice is
delivered to the Company. The purchase price paid by the Company shall be the price per share equal to the proposed per share transfer price, and shall be paid to the Optionee within 60 days after the date the Transfer Notice is received by the
Company, unless a longer period for payment was offered by the bona-fide third party offeror, in which case the Company shall pay the purchase price within such longer period. The

  

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Company’s rights under this Section 6.(a) shall be freely assignable, in whole or in part. Notwithstanding the foregoing, the Right of First Refusal does not apply to a transfer of
Purchased Shares by gift or devise to the Optionee’s immediate family (i.e., parents, spouse or children or to a trust for the benefit of the Optionee or any of the Optionee’s immediate family members), but does apply to any subsequent
transfer of such Purchased Shares by such immediate family members. 
 (b) Transfer of Purchased Shares.
If the Company fails to exercise the Right of First Refusal within 30 days after the date the Transfer Notice is delivered to the Company, Optionee may, not later than 75 days following delivery to the Company of the Transfer Notice, conclude a
transfer of the Purchased Shares subject to the Transfer Notice on the terms and conditions described in the Transfer Notice. Any proposed transfer on terms and conditions different from those described in the Transfer Notice, as well as any
subsequent proposed transfer by Optionee, shall again be subject to the Company’s Right of First Refusal and shall require compliance by Optionee with the procedure described in Section 6.(a) of this Agreement. If the Company exercises the
Right of First Refusal, the parties shall consummate the sale of Purchased Shares on the terms set forth in the Transfer Notice, other than price which shall be paid as set forth under Section 6.(a); provided, however, in the event the Transfer
Notice provides for payment for the Purchased Shares other than in cash, the Company shall have the option of paying for the Purchased Shares by paying in cash the present value of the consideration described in the Transfer Notice; and further
provided that if the value of noncash consideration is to be paid, and the Optionee disagrees with the value determined by the Company, the Optionee may request an independent appraisal by an appraiser acceptable to the Optionee and the Company, the
costs of such appraisal to be borne equally by the Optionee and the Company. If, at the time of exercise of the right of first refusal, any notes are outstanding which represent any portion of the purchase price of the Purchased Shares, the
repurchase price shall be paid first by cancellation of any obligation for accrued but unpaid interest under such notes, next by cancellation of principal under such notes, and finally by payment of cash. 
 (c) Binding Effect. The Company’s Right of First Refusal shall inure to the benefit of the successors and assigns
of the Company and shall be binding upon any transferee of Purchased Shares including a transferee acquiring Purchased Shares in a transaction where the Company failed to exercise the Right of First Refusal (a “Subsequent
Transferee”) or a transferee of a Subsequent Transferee. 
 (d) Termination of Company’s
Right of First Refusal. Notwithstanding anything in this Section 6, the Company shall have no Right of First Refusal, and Optionee shall have no obligation to comply with the procedures in Sections 6.(a) through 6.(c), after the earlier of
(a) the closing of the Company’s initial registered public offering to the public generally, or (b) the date 10 years after the Effective Date of the Option Agreement. 
 7. Tax Consultation. Optionee understands that Optionee may suffer adverse tax consequences as a result of Optionee’s purchase
or disposition of the Purchased Shares. Optionee represents that Optionee has consulted with any tax consultants Optionee deems advisable in connection with the purchase or disposition of the Purchased Shares and that Optionee is not relying on the
Company for any tax advice. 
 8. Restrictive Legends and Stop-Transfer Orders. 
 (a) Legends. Optionee understands and agrees that the Company shall cause the legends set forth below or legends
substantially equivalent thereto, to be placed upon any certificate(s) evidencing ownership of the Shares together with any other legends that may be required by the Company or by state or federal securities laws: 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) AND MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE
THEREWITH. 
  

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 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER
AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER
RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF THESE SHARES. 
 THE SHARES REPRESENTED BY THIS CERTIFICATE
ARE SUBJECT TO RESTRICTIONS ON TRANSFER FOR A PERIOD NOT TO EXCEED 180 DAYS FOLLOWING THE EFFECTIVE DATE OF THE UNDERWRITTEN PUBLIC OFFERING OF THE COMPANY’S SECURITIES AND MAY NOT BE SOLD OR OTHERWISE DISPOSED OF BY THE HOLDER WITHOUT THE
CONSENT OF THE COMPANY OR THE MANAGING UNDERWRITER. 
 (b) Restriction on Transfer. Purchased Shares shall
not be transferred, assigned, encumbered or otherwise disposed of in contravention of the Company’s Right of First Refusal or the Market Stand-Off, as set out in the Option Agreement. 
 (c) Stop-Transfer Notices. Optionee agrees that, in order to ensure compliance with the restrictions referred to
herein, the Company may issue appropriate “stop transfer” instructions to its transfer agent, if any, and that, if the Company transfers its own securities, it may make appropriate notations to the same effect in its own records.

 (d) Refusal to Transfer. The Company shall not be required (i) to transfer on its books any
Purchased Shares that have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) to treat as owner of such Purchased Shares or to accord the right to vote or pay dividends to any purchaser or other
transferee to whom such Purchased Shares shall have been so transferred. 
 9. At Will Employment. Nothing in this
Agreement or in the Plan shall confer upon Optionee any right to continue in service with the Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary
employing or retaining Optionee) or of Optionee, which rights are hereby expressly reserved by each, to terminate Optionee’s service at any time for any reason, with or without cause. 
 10. Successors and Assigns. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this
Agreement shall inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement shall be binding upon Optionee and his or her heirs, executors, administrators, successors
and assigns. 
 11. Interpretation. Any dispute regarding the interpretation of this Agreement shall be submitted by
Optionee or by the Company forthwith to the Administrator which shall review such dispute at its next regular meeting. The resolution of such a dispute by the Administrator shall be final and binding on all parties. 
 12. Optionee Undertaking. Optionee hereby agrees to take whatever additional action and execute whatever additional documents the
Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Optionee or the Purchased Shares pursuant to the provisions of this Agreement. 
 13. Governing Law; Severability. This Agreement is governed by the internal substantive laws but not the choice of law rules, of
California. In the event that any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Exercise Notice will continue in full force and effect. 
 14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument. 
  

 13 

 15. Entire Agreement. The Plan and Option Agreement are incorporated herein by
reference. This Agreement, the Plan, and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee
with respect to the subject matter hereof, and may not be modified adversely to the Optionee’s interest except by means of a writing signed by the Company and Optionee. 
  

			
	Submitted by:	  	Accepted by:
	OPTIONEE SEMICONDUCTOR	  	ALPHA AND OMEGA LIMITED
		
	  
	  	  

	Signature	  	By
		
	  
	  	  

	Print Name	  	Title
		
	Address:	  	Address:
		
	  
	  	  

		
	  
	  	  

		
		  	Date
Received:                                       
                                  

  

 14 

 EXHIBIT A 
 INVESTMENT REPRESENTATION STATEMENT 
 OPTIONEE:

 COMPANY:         ALPHA AND OMEGA SEMICONDUCTOR LIMITED 
 SECURITY:         COMMON SHARES 
 AMOUNT: 
 DATE: 
 In connection with the purchase of the above-listed Securities, the undersigned Optionee represents to the Company the following: 
 1. Optionee is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the
Company to reach an informed and knowledgeable decision to acquire the Securities. Optionee is acquiring these Securities for investment for Optionee’s own account only and not with a view to, or for resale in connection with, any
“distribution” thereof within the meaning of the Securities Act. 
 2. Optionee acknowledges and understands that the
Securities constitute “restricted securities” under the Securities Act and have not been registered under the Securities Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide
nature of Optionee’s investment intent as expressed herein. In this connection, Optionee understands that, in the view of the Securities and Exchange Commission, the statutory basis for such exemption may be unavailable if Optionee’s
representation was predicated solely upon a present intention to hold these Securities for the minimum capital gains period specified under tax statutes, for a deferred sale, for or until an increase or decrease in the market price of the
Securities, or for a period of one year or any other fixed period in the future. Optionee further understands that the Securities must be held indefinitely unless they are subsequently registered under the Securities Act or an exemption from such
registration is available. Optionee further acknowledges and understands that the Company is under no obligation to register the Securities. Optionee understands that the certificate evidencing the Securities will be imprinted with any legend
required under applicable state securities laws. 
 3. Optionee is familiar with the provisions of Rule 701 and
Rule 144, each promulgated under the Securities Act, which, in substance, permit limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the
satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the time of the grant of the Option to the Optionee, the exercise will be exempt from registration under the Securities Act. In the event
the Company becomes subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, ninety (90) days thereafter (or such longer period as any market stand-off agreement may require) the Securities exempt under
Rule 701 may be resold, subject to the satisfaction of certain of the conditions specified by Rule 144, including: (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions
directly with a market maker (as said term is defined under the Exchange Act); and, in the case of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Securities being sold during any
three month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. 
 In the event that the Company does not qualify under Rule 701 at the time of grant of the Option, then the Securities may be resold in certain limited circumstances subject to the provisions of
Rule 144, which requires the resale to occur not less than one year after the later of the date the Securities were sold by the Company or the date the Securities were sold by an affiliate of the Company, within the meaning of
Rule 144;

  

 15 

 
and, in the case of acquisition of the Securities by an affiliate, or by a non-affiliate who subsequently holds the Securities less than two years, the satisfaction of the conditions set forth in
sections (1), (2), (3) and (4) of the paragraph immediately above. 
 4. Optionee further understands that in the
event all of the applicable requirements of Rule 701 or 144 are not satisfied, registration under the Securities Act, compliance with Regulation A, or some other registration exemption will be required; and that, notwithstanding the fact that
Rules 144 and 701 are not exclusive, the Staff of the Securities and Exchange Commission has expressed its opinion that persons proposing to sell private placement securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales, and that such persons and their respective brokers who participate in such transactions do so at
their own risk. Optionee understands that no assurances can be given that any such other registration exemption will be available in such event. 
  

	
	Signature of Optionee:
	
	  

	
	Date:
                        ,            

  

 16 

 EXHIBIT 5.4 OF THE INCENTIVE STOCK 
 OPTION AGREEMENT 
 CODE SECTION 409A WAIVER AND RELEASE 
 ALPHA AND OMEGA SEMICONDUCTOR LIMITED 
 THIS WAIVER AND RELEASE made as of this             day of
                    , 20            by
                    , the holder of a stock option under the Corporation’s 2000 Share Plan. 
 All capitalized terms in this Waiver shall have the meaning assigned to them in the attached Appendix. 
 Optionee hereby agrees and acknowledges that the Corporation’s Board has taken reasonable steps to value the Common Shares and to set
the Exercise Price at the Fair Market Value per share of Common Shares on the Grant Date so that the Option will not be treated as an item of deferred compensation subject to Code Section 409A. However, because the Common Shares are not readily
tradable on an established securities market, there can be no assurance that the Exercise Price is at least equal to the Fair Market Value per share of Common Shares on the Grant Date. Were the Internal Revenue Service to conclude that the Exercise
Price is in fact less than such Fair Market Value and that the Option is accordingly subject to Code Section 409A, then Optionee would be subject the following adverse tax consequences: 
 (i) As the Option vests in accordance with the Vesting Schedule, Optionee would immediately recognize taxable income for
federal income tax purposes equal to the amount by which the Fair Market Value of the Option Shares which vest at that time exceeds the Exercise Price payable for those shares. The Corporation would also have to collect from Optionee the federal
income and employment taxes which must be withheld on that income. Taxation would occur in this manner even though the Option remains unexercised. 
 (ii) Optionee may also be subject to additional income taxation and withholding taxes on any subsequent increases to the Fair Market Value of the Option Shares purchasable under the vested Option until
the Option is exercised or cancelled as to those Option Shares. 
 (iii) In addition to normal income taxes
payable as the Option vests, Optionee would also be subject to an additional tax penalty equal to 20% of the amount of income Optionee recognizes under Code Section 409A when the Option vests and may also be subject to such penalty as the
underlying Option Shares subsequently increase in Fair Market Value over the period the Option continues to remain outstanding. 
 (iv) There will also be interest penalties if the resulting taxes are not paid on a timely basis. 
 Optionee hereby further agrees and acknowledges that Optionee will incur the same tax consequences, including (without limitation) a second 20% penalty tax, under California income tax laws if Optionee is
a resident of the State of California or is otherwise subject to California income taxation. If the Optionee is a resident of any other State, he or she accepts the risk of any unfavorable tax consequences under the laws of that State applicable to
options granted with an Exercise Price less than the Fair Market Value of the Option Shares on the Grant Date. 
 Optionee
hereby agrees to bear the entire risk of such adverse federal and State tax consequences in the event the Option is deemed to be subject to Code Section 409A and hereby knowingly and voluntarily, in consideration for the grant of the Option,
waives and releases any and all claims or causes of action that Optionee might otherwise have against the Corporation and/or the Board, officers, employees or stockholders arising from or relating to the tax treatment of the Option under Code
Section 409A and the corresponding provisions of any applicable State income tax laws (including, without limitation, California income tax laws) and shall not seek any indemnification or other recovery of damages against the Corporation and/or
the Board, officers, employees

  

 17 

 
or stockholders with respect to any adverse federal and State tax consequences or other related costs and expenses Optionee may in fact incur under Code Section 409A (or the corresponding
provisions of State income tax laws) as a result of the Option. 
 IN WITNESS WHEREOF, the undersigned Optionee has
executed this Waiver on the date and year first indicated above. 
  

	
	  

	                    , OPTIONEE
	
	Address:

  

 18 

 APPENDIX 
 The following definitions shall be in effect under the Waiver: 
 A. Board shall mean the Corporation’s Board of Directors. 
 B.
Code shall mean the Internal Revenue Code of 1986, as amended. 
 C. Common Shares shall mean the
Corporation’s Common Shares. 
 D. Corporation shall mean Alpha and Omega Semiconductor Limited, a Bermuda
company, and any successor corporation to all or substantially all of the assets or voting stock of Alpha and Omega Semiconductor Limited which shall by appropriate action adopt the Plan. 
 E. Exercise Price shall mean the exercise price payable per Option Share as specified in the Grant Notice. 
 F. Fair Market Value per share of Common Shares on any relevant date shall be determined in accordance with the following
provisions: 
 (i) If the Common Shares are at the time traded on the Nasdaq National Market, then the Fair
Market Value shall be the closing selling price per share of Common Shares on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National Market and published in The Wall Street
Journal. If there is no closing selling price for the Common Shares on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which such quotation exists. 
 (ii) If the Common Shares are at the time listed on any Stock Exchange, then the Fair Market Value shall be the closing
selling price per share of Common Shares on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Shares, as such price is officially quoted in the composite tape of transactions on
such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Shares on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date for which
such quotation exists. 
 (iii) If the Common Shares are at the time neither listed on any Stock Exchange nor
traded on the Nasdaq National Market, then the Fair Market Value shall be determined by the Plan Administrator after taking into account such factors as the Plan Administrator shall deem appropriate. 
 G. Grant Date shall mean the date of grant of the Option as specified in the Grant Notice. 
 H. Grant Notice shall mean the Notice of Grant of Stock Option accompanying the Waiver, pursuant to which Optionee has been
informed of the basic terms of the Option evidenced hereby. 
 I. Option shall mean the option awarded in the
Grant Notice. 
 J. Option Shares shall mean the number of shares of Common Shares subject to the Option.

 K. Optionee shall mean the person to whom the Option is granted as specified in the Grant Notice. 

L. Plan shall mean the Corporation’s 2000 Share Plan. 
 M. Plan Administrator shall mean either the Board or a committee of the Board acting in its capacity as administrator of the
Plan. 
 N. Waiver shall mean this Code Section 409A Waiver and Release. 
  

 192009 Share Option/Share Issuance Plan

 Exhibit 10.3 
 ALPHA AND OMEGA SEMICONDUCTOR LIMITED 
 2009 SHARE
OPTION/SHARE ISSUANCE PLAN 
 (AS AMENDED AND RESTATED ON FEBRUARY 10, 2010) 
 ARTICLE ONE 
 GENERAL PROVISIONS 
 I. PURPOSE OF THE PLAN 
 This 2009 Share Option/Share Issuance Plan is intended to promote the interests of Alpha and Omega Semiconductor Limited, a company
incorporated and existing under the laws of the Islands of Bermuda, by providing eligible persons in the Company’s employ or service with the opportunity to acquire a proprietary interest, or otherwise increase their proprietary interest, in
the Company as an incentive for them to continue in such employ or service. 
 The Plan serves as the successor to the
Company’s 2000 Share Plan (the “Predecessor Plan”), and no further awards shall be granted under the Predecessor Plan after the Plan Effective Date. All awards outstanding under the Predecessor Plan on the Plan Effective Date shall
continue to be governed solely by the terms of the documents evidencing such award, and no provision of the Plan shall be deemed to affect or otherwise modify the rights or obligations of the holders of such awards. 
 This amendment and restatement of the Plan shall be effective on the Underwriting Date. 
 Capitalized terms herein shall have the meanings assigned to such terms in the attached Appendix. 
 II. STRUCTURE OF THE PLAN 
 A. The Plan shall be divided into three (3) separate equity programs: 
 (i) the Discretionary
Grant Program under which eligible persons may, at the discretion of the Plan Administrator, be granted options to purchase Common Shares and share appreciation rights tied to the value of such Common Shares, 
 (ii) the Share Issuance Program under which eligible persons may, at the discretion of the Plan Administrator, be issued
Common Shares directly, either through the immediate purchase of such shares or as a bonus for services rendered the Company (or any Parent or Subsidiary) or pursuant to restricted share units or other share right awards which vest upon the
completion of a designated service period or the attainment of pre-established performance milestones, and 
 (iii) the Automatic Grant Program under which eligible non-employee Board members shall automatically receive options to purchase Common Shares at designated intervals over their period of continued Board service. 
 B. The provisions of Articles One and Five shall apply to all equity programs under the Plan and shall accordingly govern the interests of
all persons under the Plan. 
 III. ADMINISTRATION OF THE PLAN 
 A. The Primary Committee shall have sole and exclusive authority to administer the Discretionary Grant and Stock Issuance Programs with
respect to executive officers and non-employee Board members. However, any awards for members of the Primary Committee (other than pursuant to the Automatic Grant Program) must be authorized by a disinterested majority of the Board. Administration
of the Discretionary Grant and Stock Issuance Programs with respect to all other persons eligible to participate in those programs may, at the Board’s

 
discretion, be vested in the Primary Committee or a Secondary Committee, or the Board may retain the power to administer those programs with respect to all such persons. Members of the Primary
Committee or any Secondary Committee shall serve for such period of time as the Board may determine and shall be subject to removal by the Board at any time. The Board may also at any time terminate the functions of any Secondary Committee and
reassume all powers and authority previously delegated to such committee. 
 B. Each Plan Administrator shall, within the scope
of its administrative functions under the Plan, have full power and authority (subject to the provisions of the Plan) to establish such rules and regulations as it may deem appropriate for proper administration of the Discretionary Grant and Stock
Issuance Programs and to make such determinations under, and issue such interpretations of, the provisions of those programs and any outstanding awards thereunder as it may deem necessary or advisable. Decisions of the Plan Administrator within the
scope of its administrative functions under the Plan shall be final and binding on all parties who have an interest in the Discretionary Grant and Stock Issuance Programs under its jurisdiction or any award thereunder. 
 C. Service as a Plan Administrator by the members of the Primary Committee or the Secondary Committee shall constitute service as Board
members, and the members of each such committee shall accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member of the Primary Committee or the Secondary Committee shall be
liable for any act or omission made in good faith with respect to the Plan or any award thereunder. 
 D. Administration of the
Automatic Grant Program shall be self-executing in accordance with the terms of that program, and no Plan Administrator shall exercise any discretionary functions with respect to any awards made under that program. 
 IV. ELIGIBILITY 
 A. The
persons eligible to participate in the Plan are as follows: 
 (i) Employees, 
 (ii) non-employee members of the Board or the non-employee members of the board of directors of any Parent or Subsidiary, and

 (iii) consultants and other independent advisors who provide services to the Company (or any Parent or
Subsidiary). 
 B. The Plan Administrator shall have full authority to determine, (i) with respect to the awards of options
or share appreciation rights under the Discretionary Grant Program, which eligible persons are to receive such awards, the time or times when those awards are to be made, the number of shares to be covered by each such award, the exercise or vesting
schedule (if any) applicable to the award, the maximum term for which such award is to remain outstanding and the status of a granted option as either an Incentive Option or a Non-Statutory Option and, and (ii) with respect to share issuances
or other share-based awards under the Share Issuance Program, which eligible persons are to receive such issuances or awards, the time or times when those issuances or awards are to be made, the number of shares subject to such issuance or award,
the applicable vesting schedule and the cash consideration (if any) to be paid by the Participant for such shares. 
 C. The
Plan Administrator shall have the absolute discretion either to grant options or share appreciation rights in accordance with the Discretionary Grant Program or to effect share issuances and other share-based awards in accordance with the Share
Issuance Program. 
 D. The individuals who shall be eligible to participate in the Automatic Grant Program shall be limited to
(i) those individuals who first become non-employee Board members on or after the Underwriting Date, whether through appointment by the Board or election by the Company’s shareholders, and (ii) those individuals who continue to serve
as non-employee Board members on or after the Underwriting Date. A non-employee Board

  

 2 

 
member who has previously been in the employ of the Company (or any Parent or Subsidiary) shall not be eligible to receive a grant under the Automatic Grant Program at the time he or she first
becomes a non-employee Board member, but shall be eligible to receive periodic grants under the Automatic Grant Program while he or she continues to serve as a non-employee Board member. 
 V. SHARES SUBJECT TO THE PLAN 
 A. The shares issuable under the Plan shall
be authorized but unissued or reacquired Common Shares. The maximum number of Common Shares which may initially be issued over the term of the Plan shall not exceed one million one hundred and fifty thousand (1,150,000) shares. Such reserve
consists of (i) the number of Common Shares remaining available for issuance, as of the Plan Effective Date, under the Predecessor Plan as last approved by the Company’s shareholders (excluding shares subject to outstanding awards under
the Predecessor Plan), plus (ii) an additional increase of nine hundred ten thousand five hundred and ninety (910,590) shares. To the extent any options outstanding under the Predecessor Plan on the Plan Effective Date expire or terminate
unexercised or without the issuance of shares thereunder, the number of Common Shares subject to those expired or terminated options at the time of expiration or termination shall be added to the share reserve under this Plan and shall accordingly
be available for issuance hereunder, up to a maximum of an additional one hundred thousand (100,000) shares. 
 B. The
number of Common Shares available for issuance under the Plan shall automatically increase on the first trading day of January each calendar year during the term of the Plan, beginning with the calendar year 2011, by an amount equal to three percent
(3%) of the total number of Common Shares outstanding on the last trading day in December of the immediately preceding calendar year, but in no event shall such annual increase exceed seven hundred and fifty thousand (750,000) shares.

 C. No one person participating in the Plan may receive share options, stand-alone share appreciation rights, direct share
issuances (whether vested or unvested) or other share-based awards (whether in the form of restricted share units or other share-right awards) for more than two hundred and fifty thousand (250,000) Common Shares in the aggregate per calendar
year; provided, however, that the limit shall be four hundred thousand (400,000) Common Shares for the calendar year in which the individual is initially hired. 
 D. The maximum number of Common Shares that may be issued pursuant to Incentive Options granted under the Plan shall not exceed one million one hundred and fifty thousand (1,150,000) shares
increased, on the first trading day of January each year beginning with the calendar year 2011, by the number of shares by which the share reserve is to automatically increase on such date up to a maximum of seven hundred and fifty thousand
(750,000) shares. 
 E. Common Shares subject to outstanding options, share appreciation rights, restricted share units or
other share right awards shall be available for subsequent issuance under the Plan to the extent (i) those options, rights, units or awards, expire, terminate or are cancelled for any reason prior to the issuance of the underlying Common Shares
or (ii) the options are cancelled in accordance with the cancellation-regrant provisions of Article Two. Unvested shares issued under the Plan and subsequently forfeited or repurchased by the Company, at a price per share not greater than the
option exercise or direct issue price paid per share, pursuant to the Company’s repurchase rights under the Plan shall be added back to the number of Common Shares reserved for issuance under the Plan and shall accordingly be available for
reissuance through one or more subsequent awards under the Plan. Should the exercise price of an option under the Plan be paid with Common Shares, then the authorized reserve of Common Shares under the Plan shall be reduced only by the net number of
shares issued under the exercised option and not by the gross number of shares for which that option is exercised. Upon the exercise of any share appreciation right under the Plan, the share reserve shall be reduced only by the net number of shares
actually issued by the Company upon such exercise and not by the gross number of shares as to which such right is exercised. If Common Shares otherwise issuable under the Plan are withheld by the Company in satisfaction of the withholding taxes
incurred in connection with the issuance, vesting or exercise of an award under the Plan or

  

 3 

 
the issuance of Common Shares thereunder, then the number of Common Shares available for issuance under the Plan shall be reduced by the net number of shares issued, vested or exercised under
such award, calculated in each instance after such share withholding. 
 F. In the event of any of the following transactions
affecting the outstanding Common Shares as a class without the Company’s receipt of consideration: any share split, share dividend, spin-off transaction, extraordinary distribution (whether in cash, securities or other property),
recapitalization, combination of shares, exchange of shares or other similar transaction affecting the outstanding Common Shares without the Company’s receipt of consideration or in the event of a substantial reduction to the value of the
outstanding Common Shares by reason of a spin-off transaction or extraordinary distribution, then equitable adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan, (ii) the maximum number
and/or class of securities by which the share reserve under the Plan may increase by reason of the expiration or termination of options under the Predecessor Plan, (iii) the number and/or class of securities by which the share reserve is to
increase each calendar year pursuant to the automatic share increase provisions of the Plan, (iv) the number and/or class of securities that may be issued pursuant to Incentive Options granted under the Plan, (v) the number and/or class of
securities for which awards may subsequently be made to new and continuing non-employee Board members under the Automatic Grant Program, (vi) the number and/or class of securities and the exercise or base price per share in effect under each
outstanding option or share appreciation right, (vii) the number and/or class of securities subject to each outstanding restricted share unit or other share right award and the cash consideration (if any) payable per share and (vii) the
number and/or class of securities for which any one person may be granted options, stand-alone share appreciation rights, direct share issuances and other share-based awards under the Plan per calendar year. The adjustments shall be made by the Plan
Administrator in such manner as the Plan Administrator deems appropriate, and those adjustments shall be final, binding and conclusive. In no event shall any such adjustments be made in connection with the conversion of one or more outstanding
securities of the Company. 
  

 4 

 ARTICLE TWO 
 DISCRETIONARY GRANT PROGRAM 
 I. OPTION TERMS

 Each option shall be evidenced by one or more documents in the form approved by the Plan Administrator; provided, however,
that each such document shall comply with the terms specified below. Each document evidencing an Incentive Option shall, in addition, be subject to the provisions of the Plan applicable to such options. 
 A. Exercise Price. 
 1. The exercise price per share shall be fixed by the Plan Administrator but shall not be less than one hundred percent (100%) of the Fair Market Value per Common Share on the option grant date.

 2. The exercise price shall become immediately due upon exercise of the option and shall, subject to the
provisions of Section I of Article Five and the documents evidencing the option, be payable in one or more of the forms specified below: 
 (i) cash or check made payable to the Company, 
 (ii) Common Shares
(whether delivered in the form of actual share certificates or through attestation of ownership) held for the period (if any) necessary to avoid a charge to the Company’s earnings for financial reporting purposes and valued at Fair Market Value
on the Exercise Date, or 
 (iii) to the extent the option is exercised for vested shares, through a special sale
and remittance procedure pursuant to which the Optionee shall concurrently provide irrevocable instructions (A) to a brokerage firm (reasonably satisfactory to the Company for purposes of administering such procedure in compliance with any
applicable pre-clearance or pre-notification requirements) to effect the immediate sale of the purchased shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate exercise
price payable for the purchased shares plus all applicable Taxes required to be withheld by the Company by reason of such exercise and (B) to the Company to deliver the certificates for the purchased shares directly to such brokerage firm on
the settlement date in order to complete the sale. 
 Except to the extent such sale and remittance procedure is utilized,
payment of the exercise price for the purchased shares must be made on the Exercise Date. 
 B. Exercise and Term of
Options. Each option shall be exercisable at such time or times, during such period and for such number of shares as shall be determined by the Plan Administrator and set forth in the documents evidencing the option grant. However, no option
shall have a term in excess of ten (10) years measured from the option grant date. 
 C. Effect of Termination of
Service. 
 1. The following provisions shall govern the exercise of any options held by the Optionee at
the time of cessation of Service or death: 
 (i) Any option outstanding at the time of the Optionee’s
cessation of Service for any reason shall remain exercisable for such period of time thereafter as shall be determined by the Plan Administrator and set forth in the documents evidencing the option, but no such option shall be exercisable after the
expiration of the option term. 
 (ii) Any option held by the Optionee at the time of the Optionee’s death
and exercisable in whole or in part at that time may be subsequently exercised by the personal representative of the Optionee’s estate or by the person or persons to whom the option is transferred pursuant to the Optionee’s will or the
laws of inheritance or by the Optionee’s designated beneficiary or beneficiaries of that option. 
  

 5 

 (iii) Should the Optionee’s Service be terminated for Misconduct or
should the Optionee otherwise engage in Misconduct while holding one or more outstanding options granted under this Article Two, then all of those options shall terminate immediately and cease to be outstanding. 
 (iv) Under no circumstances, however, shall any such option be exercisable after the specified expiration of the option term.

 (v) During the applicable post-Service exercise period, the option may not be exercised in the aggregate for
more than the number of vested shares for which the option is exercisable on the date of the Optionee’s cessation of Service. No additional shares shall vest under the option following the Optionee’s cessation of Service, except to the
extent (if any) specifically authorized by the Plan Administrator in its sole discretion pursuant to an express written agreement with the Optionee. Upon the expiration of the applicable exercise period or (if earlier) upon the expiration of the
option term, the option shall terminate and cease to be outstanding. 
 2. The Plan Administrator shall have the
discretion, exercisable either at the time an option is granted or at any time while the option remains outstanding, to: 
 (i) extend the period of time for which the option is to remain exercisable following the Optionee’s cessation of Service or death from the limited period otherwise in effect for that option to such
greater period of time as the Plan Administrator shall deem appropriate, but in no event beyond the expiration of the option term, and/or 
 (ii) permit the option to be exercised, during the applicable post-Service exercise period, not only with respect to the number of vested Common Shares for which such option is exercisable at the time of
the Optionee’s cessation of Service but also with respect to one or more additional installments in which the Optionee would have vested under the option had the Optionee continued in Service. 
 D. Shareholder Rights. The holder of an option shall have no shareholder rights with respect to the shares subject to the
option until such person shall have exercised the option, paid the exercise price and become the recordholder of the purchased shares. 
 E. Unvested Shares. The Plan Administrator shall have the discretion to grant options which are exercisable for unvested Common Shares. Should the Optionee cease Service while holding such unvested shares, the Company shall
have the right to repurchase any or all of those unvested shares at a price per share equal to the lower of (i) the exercise price paid per share or (ii) the Fair Market Value per Common Share at the time of Optionee’s cessation of
Service. The terms upon which such repurchase right shall be exercisable (including the period and procedure for exercise and the appropriate vesting schedule for the purchased shares) shall be established by the Plan Administrator and set forth in
the document evidencing such repurchase right. 
 F. Limited Transferability of Options. 
 1. An Incentive Stock Option shall be exercisable only by the Optionee during his or her lifetime, and such Incentive Stock
Option, together with the Common Shares subject to that option during the period prior to exercise, shall not be assignable or transferable other than by will or by the laws of inheritance following the Optionee’s death. 
 2. A Non-Statutory Option, together with the Common Shares subject to that option during the period prior to exercise, shall
be subject to the same transfer restrictions as set forth in subparagraph 1 above, except that a Non-Statutory Option, together with the underlying unexercised Common Shares, may to the extent permitted by the Plan Administrator be assigned in whole
or in part during the Optionee’s lifetime by gift or pursuant to a domestic relations order to one or more of the Optionee’s Family Members or to a trust established exclusively for the Optionee and/or one or more such Family Members. The
assigned portion may only be exercised by the person or persons who acquire a proprietary interest in the Non-Statutory Option pursuant to the assignment. The terms applicable to the assigned portion shall be the same as those in effect for the
option immediately prior to such assignment and shall be set forth in such documents issued to the assignee as the Plan Administrator may deem appropriate. 
  

 6 

 3. Notwithstanding subparagraphs 1 and 2 above, the Optionee may also, to
the extent permitted by the Plan Administrator, designate one or more Family Members as the beneficiary or beneficiaries of his or her outstanding options under the Plan, and those options shall, in accordance with such designation, automatically be
transferred to such beneficiary or beneficiaries upon the Optionee’s death while holding those options. Such beneficiary or beneficiaries shall take the transferred options subject to all the terms and conditions of the applicable agreement
evidencing each such transferred option, including (without limitation) the limited time period during which the option may be exercised following the Optionee’s death. 
 II. INCENTIVE OPTIONS 
 The terms specified below shall be applicable to all
Incentive Options. Except as modified by the provisions of this Section II, all the provisions of Articles One, Two and Four shall be applicable to Incentive Options. Options which are specifically designated as Non-Statutory Options shall not be
subject to the terms of this Section II. 
 A. Eligibility. Incentive Options may only be granted to Employees.

 B. Dollar Limitation. The aggregate Fair Market Value of the Common Shares (determined as of the respective
date or dates of grant) for which one or more options granted to any Employee under the Plan (or any other option plan of the Company or any Parent or Subsidiary) may for the first time become exercisable as Incentive Options during any one
(1) calendar year shall not exceed the sum of One Hundred Thousand Dollars ($100,000). To the extent the Employee holds two (2) or more such options which become exercisable for the first time in the same calendar year, the foregoing
limitation on the exercisability of such options as Incentive Options shall be applied on the basis of the order in which such options are granted, except to the extent otherwise provided under applicable law or regulation. 
 C. 10% Shareholder. If any Employee to whom an Incentive Option is granted is a 10% Shareholder, then the option term shall
not exceed five (5) years measured from the option grant date, and the exercise price per share shall not be less than one hundred ten percent (110%) of the Fair Market Value per Common Share on the option grant date. 
 III. SHARE APPRECIATION RIGHTS 
 A. Authority. The Plan Administrator shall have full power and authority, exercisable in its sole discretion, to grant share appreciation rights in accordance with this Section III to selected individuals eligible to
participate in the Discretionary Grant Program. 
 B. Types. Two types of share appreciation rights shall be
authorized for issuance under this Section III: (i) tandem share appreciation rights (“Tandem Rights”) and (ii) Stand-Alone share appreciation rights (“Stand-Alone Rights”). 
 C. Tandem Rights. The following terms and conditions shall govern the grant and exercise of Tandem Rights. 
 1. One or more Optionees may be granted a Tandem Right, exercisable upon such terms and conditions as the Plan Administrator
may establish, to elect between the exercise of the underlying option for Common Shares or the surrender of that option in exchange for a distribution from the Company in an amount equal to the excess of (i) the Fair Market Value (on the option
surrender date) of the number of shares in which the Optionee is at the time vested under the surrendered option (or surrendered portion thereof) over (ii) the aggregate exercise price payable for such vested shares. 
  

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 2. Any distribution to which the Optionee becomes entitled upon the exercise
of a Tandem Right may be made in (i) Common Shares valued at Fair Market Value on the option surrender date, (ii) cash or (iii) a combination of cash and Common Shares, as the Plan Administrator shall determine in its sole discretion.
Unless otherwise specified in the applicable award agreement, the distribution shall be made in Common Shares. 
 D.
Stand-Alone Rights. The following terms and conditions shall govern the grant and exercise of Stand-Alone Rights: 
 1. One or more individuals may be granted a Stand-Alone Right not tied to any underlying option under this Discretionary Grant Program. The Stand-Alone Right shall relate to a specified number of Common
Shares and shall be exercisable upon such terms and conditions as the Plan Administrator may establish. In no event, however, may the Stand-Alone Right have a maximum term in excess of ten (10) years measured from the grant date. 
 2. Upon exercise of the Stand-Alone Right, the holder shall be entitled to receive a distribution from the Company in an
amount equal to the excess of (i) the aggregate Fair Market Value (on the exercise date) of the Common Shares underlying the exercised right over (ii) the aggregate base price in effect for those shares. 
 3. The number of Common Shares underlying each Stand-Alone Right and the base price in effect for those shares shall be
determined by the Plan Administrator in its sole discretion at the time the Stand-Alone Right is granted. In no event, however, may the base price per share be less than the Fair Market Value per Common Share on the grant date. 
 4. Stand-Alone Rights shall be subject to the same transferability restrictions applicable to Non-Statutory Options under
Section I.F of this Article Two. In addition, one or more beneficiaries may be designated for an outstanding Stand-Alone Right in accordance with substantially the same terms and provisions as set forth in Section I.F of this Article Two.

 5. The distribution with respect to an exercised Stand-Alone Right may be made in (i) Common Shares
valued at Fair Market Value on the exercise date, (ii) cash or (iii) a combination of cash and Common Shares, as the Plan Administrator shall determine in its sole discretion. Unless otherwise specified in the applicable Award Agreement,
the distribution shall be made in Common Shares. 
 6. The holder of a Stand-Alone Right shall have no
shareholder rights with respect to the shares subject to the Stand-Alone Right unless and until such person shall have exercised the Stand-Alone Right and become a holder of record of the Common Shares issued upon the exercise of such Stand-Alone
Right. 
 E. Post-Service Exercise. The provisions governing the exercise of Tandem and Stand-Alone Rights
following the cessation of the recipient’s Service shall be the same as those set forth in Section I.C of this Article Two for the options granted under the Discretionary Grant Program, and the Plan Administrator’s discretionary authority
under Section I.C.2 of this Article Two shall also extend to any outstanding Tandem or Stand-Alone Appreciation Rights. 
 IV. CHANGE IN
CONTROL 
 A. The shares subject to each award outstanding under the Discretionary Grant Program at the time of a Change in
Control shall automatically vest in full so that each such award shall, immediately prior to the effective date of the Change in Control, become exercisable for all of the Common Shares at the time subject to that award and may be exercised for any
or all of those shares as fully-vested Common Shares. However, the shares subject to an outstanding award shall not vest on such an accelerated basis if and to the extent: (i) such award is assumed by the successor company (or parent thereof)
or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction and any repurchase rights of the Company with

  

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respect to any unvested shares purchasable under the option are concurrently assigned to such successor company (or parent thereof) or otherwise continued in effect or (ii) the acceleration
of such award is subject to other limitations imposed by the Plan Administrator at the time of grant. 
 B. All outstanding
repurchase rights shall also terminate automatically, and the Common Shares subject to those terminated rights shall immediately vest in full, in the event of any Change in Control, except to the extent: (i) those repurchase rights are assigned
to the successor company (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction or (ii) such accelerated vesting is precluded by other limitations imposed by the Plan
Administrator at the time the repurchase right is issued. 
 C. Immediately following the consummation of the Change in Control,
all outstanding awards under this Discretionary Grant Program shall terminate and cease to be outstanding, except to the extent assumed by the successor company (or parent thereof) or otherwise continued in effect pursuant to the terms of the Change
in Control transaction. 
 D. Each award which is assumed in connection with a Change in Control or otherwise continued in
effect shall be appropriately adjusted, immediately after such Change in Control, to apply to the number and class of securities which would have been issuable to the Optionee in consummation of such Change in Control, had the award been exercised
immediately prior to such Change in Control. Appropriate adjustments shall also be made to (i) the exercise or base price payable per share under each outstanding award, provided the aggregate exercise or base price payable for such securities
shall remain the same, (ii) the number and class of securities available for issuance under the Plan following the consummation of such Change in Control, (iii) the number and/or class of securities by which the share reserve under the
Plan is to increase automatically each calendar year pursuant to the automatic share increase provisions of the Plan, (iv) the number and/or class of securities that may be issued pursuant to Incentive Options granted under the Plan,
(v) the number and/or class of securities for which any one person may be granted awards under the Plan per calendar year, (vi) the number and/or class of securities subject to each outstanding award under the Stock Issuance Program and
the cash consideration (if any) payable per share, (vii) the number and/or class of securities subject to each outstanding award under the Automatic Grant Program and the cash consideration (if any) payable per share, (viii) the number
and/or class of securities for which awards may subsequently be made to new and continuing non-employee Board members under the Automatic Grant Program and (ix) the number and/or class of securities subject to the Company’s outstanding
repurchase rights under the Plan and the repurchase price payable per share. To the extent the actual holders of the Company’s outstanding Common Shares receive cash consideration for their Common Shares in consummation of the Change in
Control, the successor company may, in connection with the assumption or continuation of the outstanding awards under this Discretionary Grant Program, substitute one or more shares of its own common stock with a fair market value equivalent to the
cash consideration paid per Common Share in such Change in Control. 
 E. The Plan Administrator shall have the discretion,
exercisable either at the time the award is granted under the Discretionary Grant Program or at any time while the award remains outstanding, to structure one or more awards so that those awards shall, immediately prior to the effective date of an
actual Change in Control transaction, vest and become exercisable as to all the Common Shares at the time subject to those awards and may be exercised as to any or all of those shares as fully vested Common Shares, whether or not those awards are to
be assumed in the Change in Control or otherwise continued in effect. In addition, the Plan Administrator shall have the discretionary authority to structure one or more of the Company’s repurchase rights under this Discretionary Grant Program
so that those rights shall terminate immediately prior to the effective date of an actual Change in Control transaction, and the shares subject to those terminated rights shall thereupon vest in full. 
 F. The Plan Administrator shall also have full power and authority, exercisable either at the time the award is granted or at any time while
the award remains outstanding, to structure such award so that the shares subject to that award will automatically vest on an accelerated basis should the Optionee’s Service terminate by reason

  

 9 

 
of an Involuntary Termination within a designated period (not to exceed eighteen (18) months) following the effective date of any Change in Control in which the award is assumed or otherwise
continued in effect and the repurchase rights applicable to those shares do not otherwise terminate. Any award so accelerated shall remain exercisable for the fully-vested shares until the expiration or sooner termination of the award term. In
addition, the Plan Administrator may provide that one or more of the Company’s outstanding repurchase rights with respect to shares held by the Optionee at the time of such Involuntary Termination shall immediately terminate on an accelerated
basis, and the shares subject to those terminated rights shall accordingly vest at that time. 
 G. The portion of any Incentive
Option accelerated in connection with a Change in Control shall remain exercisable as an Incentive Option only to the extent the applicable One Hundred Thousand Dollar ($100,000) limitation is not exceeded. To the extent such dollar limitation is
exceeded, the accelerated portion of such option shall be exercisable as a Non-Statutory Option under the Federal tax laws. 
 H. The grant of options and share appreciation rights under the Plan shall in no way affect the right of the Company to adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets. 
 V. CANCELLATION AND REGRANT OF OPTIONS AND SHARE APPRECIATION
RIGHTS 
 A. The Plan Administrator shall have the authority to effect, at any time and from time to time, with the consent
of the affected award holders, the cancellation of any or all outstanding options or share appreciation rights under the Plan and to grant in substitution therefor one or more of the following: (i) new options or share appreciation rights
covering the same or different number of Common Shares but with an exercise or base price per share based on the Fair Market Value per Common Share on the new award grant date or (ii) cash or equity securities of the Company, whether vested or
unvested. 
 B. The Plan Administrator shall also have the authority, exercisable at any time and from time to time, with the
consent of the affected holders, to reduce the exercise or base price of one or more outstanding options or share appreciation rights to a price not less than the then current Fair Market Value per Common Share or issue new options or share
appreciation rights with a lower exercise or base price in immediate cancellation of outstanding options or share appreciation rights with a higher exercise or base price. 
  

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 ARTICLE THREE 
 SHARE ISSUANCE PROGRAM 
 I. SHARE ISSUANCE TERMS

 Common Shares may be issued under the Share Issuance Program through direct and immediate issuances. Each such share
issuance shall be evidenced by a Share Issuance Agreement which complies with the terms specified below. Common Shares may also be issued under the Share Issuance Program pursuant to share right awards or restricted share units. 
 A. Issue Price. 
 1. The issue price per share shall be fixed by the Plan Administrator but shall not be less than one hundred percent (100%) of the Fair Market Value per Common Share on the issue date. 
 2. Subject to the provisions of Section I of Article Four, Common Shares may be issued under the Share Issuance Program for
any of the following items of consideration which the Plan Administrator may deem appropriate in each individual instance: 
 (i) cash or check made payable to the Company, 
 (ii) services
rendered or to be rendered to the Company (or any Parent or Subsidiary), or 
 (iii) any other valid
consideration under the Companies Act 1981 (Bermuda), as amended. 
 B. Vesting Provisions. 
 1. Common Shares issued under the Share Issuance Program may, in the discretion of the Plan Administrator, be fully and
immediately vested upon issuance or may vest in one or more installments over the Participant’s period of Service or upon attainment of specified performance objectives. Common Shares may also be issued under the Share Issuance Program pursuant
to share right awards or restricted share units which entitle the recipients to receive the shares underlying those awards or units upon the attainment of designated performance goals or the satisfaction of specified Service requirements or upon the
expiration of a designated time period following the vesting of those awards or units, including (without limitation) a deferred distribution date following the termination of the Participant’s Service. 
 2. Any new, substituted or additional securities or other property (including money paid other than as a regular cash
dividend) which the Participant may have the right to receive with respect to the Participant’s unvested Common Shares by reason of any share dividend, share split, spin-off transaction, extraordinary distribution (whether in cash, securities
or other property), recapitalization, combination of shares, exchange of shares or other similar change affecting the outstanding Common Shares as a class without the Company’s receipt of consideration shall be issued subject to (i) the
same vesting requirements applicable to the Participant’s unvested Common Shares and (ii) such escrow arrangements as the Plan Administrator shall deem appropriate. Equitable adjustments to reflect each such transaction shall also be made
by the Plan Administrator to the repurchase price payable per share by the Company for any unvested securities subject to its existing repurchase rights under the Plan; provided the aggregate repurchase price shall in each instance remain the same.

 3. The Participant shall have full shareholder rights with respect to any Common Shares issued to the
Participant under the Share Issuance Program, whether or not the Participant’s interest in those shares is vested. Accordingly, the Participant shall have the right to vote such shares and to receive any regular cash dividends paid on such
shares. The Participant shall not have any shareholder rights with respect to the Common Shares subject to a share right award or restricted share unit until that award or unit vests and the Common Shares are actually issued thereunder. However,
dividend-equivalent units may be paid or credited, either in cash or in actual or phantom Common Shares, on outstanding share right awards or restricted share unit, subject to such terms and conditions as the Plan Administrator may deem appropriate.

  

 11 

 4. Should the Participant cease to remain in Service while holding one or
more unvested Common Shares issued under the Share Issuance Program or should the performance objectives not be attained with respect to one or more such unvested Common Shares, then those shares shall be immediately surrendered to the Company for
cancellation, and the Participant shall have no further shareholder rights with respect to those shares. To the extent the surrendered shares were previously issued to the Participant for consideration paid in cash or cash equivalent (including the
Participant’s purchase-money indebtedness), the Company shall repay to the Participant the lower of (i) the cash consideration paid for the surrendered shares or (ii) the Fair Market Value of those shares at the time of
Participant’s cessation of Service and shall cancel the unpaid principal balance of any outstanding purchase-money note of the Participant attributable to such surrendered shares by the applicable clause (i) or (ii) amount.

 5. The Plan Administrator may in its discretion waive the surrender and cancellation of one or more unvested
Common Shares (or other assets attributable thereto) which would otherwise occur upon the non-completion of the vesting schedule applicable to those shares. Such waiver shall result in the immediate vesting of the Participant’s interest in the
Common Shares as to which the waiver applies. Such waiver may be effected at any time, whether before or after the Participant’s cessation of Service or the attainment or non-attainment of the applicable performance objectives. 
 6. Outstanding share right awards or restricted share units shall automatically terminate, and Common Shares shall not be
issued in satisfaction of those awards or units, if the performance goals or Service requirements established for such awards or units are not attained or satisfied. The Plan Administrator, however, shall have the discretionary authority to issue
vested Common Shares under one or more outstanding share right awards or restricted share units as to which the designated performance goals or Service requirements have not been attained or satisfied. 
 II. CHANGE IN CONTROL 
 A.
Upon the occurrence of a Change in Control, all outstanding repurchase rights under the Share Issuance Program shall terminate automatically, and the Common Shares subject to those terminated rights shall immediately vest in full, except to the
extent: (i) those repurchase rights are assigned to the successor company (or parent thereof) or otherwise continued in full force and effect pursuant to the terms of the Change in Control transaction or (ii) such accelerated vesting is
precluded by other limitations imposed by the Plan Administrator at the time the repurchase right is issued. 
 B. Each share
right award or restricted share unit outstanding at the time of a Change in Control shall be assumable by the successor company (or parent thereof) or may otherwise be continued in effect pursuant to the terms of such Change in Control transaction.
Each share right award or restricted share unit which is so assumed or otherwise continued in effect shall be adjusted immediately after the consummation of that Change in Control so as to apply to the number and class of securities into which the
Common Shares subject to the award immediately prior to the Change in Control would have been converted in consummation of such Change in Control had those shares actually been outstanding at that time. Appropriate adjustments shall also be made to
the cash consideration (if any) price payable per share under each outstanding share right award or restricted share unit, provided the aggregate cash consideration payable for such securities shall remain the same. To the extent the actual holders
of the Company’s outstanding Common Shares receive cash consideration for their Common Shares in consummation of the Change in Control, the successor company may, in connection with the assumption or continuation of the outstanding share right
awards or restricted share units, substitute one or more shares of its own common stock with a fair market value equivalent to the cash consideration paid per Common Share in such Change in Control transaction. If any such share right award or
restricted share unit is not so assumed or otherwise continued in effect, then such award or unit shall vest, and the Common Shares subject to such award or unit shall become issuable, immediately prior to the consummation of the Change in Control.

 C. The Plan Administrator shall have the discretionary authority to structure one or more unvested share issuances or one or
more share right awards or restricted share units under the Share Issuance Program so that the Common Shares subject to those issuances or awards or units shall automatically vest (or vest and become

  

 12 

 
issuable) in whole or in part immediately upon the occurrence of a Change in Control or upon the subsequent termination of the Participant’s Service by reason of an Involuntary Termination
within a designated period (not to exceed eighteen (18) months) following the effective date of that Change in Control transaction. 
 III. SHARE ESCROW/LEGENDS 
 Unvested shares may, in the Plan Administrator’s discretion, be held in escrow
by the Company until the Participant’s interest in such shares vests or may be issued directly to the Participant with restrictive legends on the certificates evidencing those unvested shares. 
  

 13 

 ARTICLE FOUR 
 AUTOMATIC GRANT PROGRAM 
 I. AWARD TERMS 
 A. Automatic Grants. The awards to be made pursuant to the Automatic Grant Program shall be as follows: 
 1. Each individual who is serving as a non-employee Board member on the Underwriting Date shall automatically be granted on
such date, an award in the form of an option to purchase seven thousand and five hundred (7,500) Common Shares (the “Underwriting Date Grant”). 
 2. Each individual who is first elected or appointed as a non-employee Board member at any time after the Underwriting Date
and other than as a result of his or her initial election to the Board at an annual shareholders meeting shall automatically be granted, on the date of such initial election or appointment, an award in the form of an option to purchase that number
of Common Shares determined by multiplying seven thousand and five hundred (7,500) by a fraction, the numerator of which is the number of months (rounded up to the next whole month) that will elapse between the date of such election or
appointment and the date of the next annual shareholders meeting and the denominator of which is twelve (12), provided that individual has not previously been in the employ of the Company or any Parent or Subsidiary (the “Initial Grant”).

 3. On the date of each annual shareholders meeting, beginning with the 2010 Annual Shareholders Meeting, each
individual who commences service as a non-employee Board member by reason of his or her election to the Board at such annual meeting and each individual who is to continue to serve as a non-employee Board member, whether or not that individual is
standing for re-election to the Board at that particular annual meeting, shall automatically be granted an award in the form of an option to purchase seven thousand and five hundred (7,500) Common Shares (the “Annual Grant”).

 B. Exercise Price. 
 1. The exercise price per share shall be equal to one hundred percent (100%) of the Fair Market Value per Common Share
on the option grant date. 
 2. The exercise price shall be payable in one or more of the alternative forms
authorized under the Discretionary Grant Program. Except to the extent the sale and remittance procedure specified thereunder is utilized, payment of the exercise price for the purchased shares must be made on the Exercise Date. 
 C. Option Term. Each option shall have a maximum term of ten (10) years measured from the option grant date, subject to
earlier termination following the non-employee Board member’s cessation of Board service. 
 D. Exercise and Vesting
of Options. Each option shall be immediately exercisable for any or all of the option shares. However, any unvested shares purchased under the option shall be subject to repurchase by the Company, at the lower of (i) the exercise
price paid per share or (ii) the Fair Market Value per Common Share at the time of repurchase, upon the non-employee Board member’s cessation of Board service prior to vesting in those shares. The shares subject to each Underwriting Date
Grant shall vest, and the Company’s repurchase right shall lapse, on the date of the 2010 Annual Shareholders Meeting provided the individual continues in Board service through such date. The shares subject to each Initial Grant shall vest, and
the Company’s repurchase right shall lapse, on the date of the next succeeding regular annual shareholders meeting following the award grant date provided the individual continues in Board service through such date. The shares subject to each
Annual Grant shall vest, and the Company’s repurchase right shall lapse, upon the earlier of (i) the Participant’s completion of one (1) year of Board service measured from the award grant date or (ii) the date of the
regular annual shareholders meeting for the year following the year in which the award was granted, provided the individual continues in Board service through such date. 
  

 14 

 E. Termination of Board Service. The following provisions shall govern the
exercise of any options held by the Optionee at the time of the Optionee’s cessation of Board service: 
 1.
The Optionee (or, in the event of Optionee’s death while holding the option, the personal representative of the Optionee’s estate or the person or persons to whom the option is transferred pursuant to the Optionee’s will or the laws
of inheritance or the designated beneficiary or beneficiaries of such option) shall have a twelve (12)-month period following the date of such cessation of Board service in which to exercise such option. 
 2. During the twelve (12)-month exercise period, the option may not be exercised in the aggregate for more than the number of
vested Common Shares for which the option is exercisable at the time of the Optionee’s cessation of Board service. However, should the Optionee cease to serve as a Board member by reason of death or Permanent Disability, then all shares at the
time subject to the option shall immediately vest so that such option may, during the twelve (12)-month exercise period following such cessation of Board service, be exercised for any or all of those shares as fully vested shares of Common Stock.

 3. In no event shall the option remain exercisable after the expiration of the option term. Upon the
expiration of the twelve (12)-month exercise period or (if earlier) upon the expiration of the option term, the option shall terminate and cease to be outstanding for any vested shares for which the option has not been exercised. However, the option
shall, immediately upon the Optionee’s cessation of Board service for any reason (other than cessation of Board service by reason of death or Permanent Disability), terminate and cease to be outstanding to the extent the option is not otherwise
at that time exercisable for vested shares. 
 II. CHANGE IN CONTROL 
 In the event of any Change in Control, the Common Shares at the time subject to each outstanding option granted under this Article Four but
not otherwise vested shall, immediately prior to the effective date of that Change in Control transaction, automatically vest in full so that each such option shall become exercisable for all of the option shares as fully vested Common Shares and
may be exercised for any or all of those vested shares. Immediately following the consummation of the Change in Control, each such option shall terminate and cease to be outstanding, except and to the extent assumed by the successor corporation (or
parent thereof) or otherwise continued in effect pursuant to the terms of the Change in Control transaction. 
 III. REMAINING TERMS 

 The remaining terms of each award granted under the Automatic Grant Program shall be as set forth in the award agreement
approved by the Primary Committee to evidence the awards made under this Article Four. 
  

 15 

 ARTICLE FIVE 
 MISCELLANEOUS 
 I. FINANCING 
 The Plan Administrator may permit any Optionee or Participant to pay the option exercise price under the Discretionary Grant Program or the
purchase price for shares issued under the Share Issuance Program by delivering a full-recourse promissory note payable in one or more installments which bears interest at a market rate and is secured by the purchased shares and is subject to such
other terms and conditions deemed appropriate by the Plan Administrator. In no event, however, may the maximum credit available to the Optionee or Participant exceed the sum of (i) the aggregate option exercise price or purchase price payable
for the purchased shares plus (ii) any applicable Tax liability incurred by the Optionee or the Participant in connection with the option exercise or share purchase. 
 II. EFFECTIVE DATE AND TERM OF PLAN 
 A. The Plan became effective on the
Plan Effective Date. 
 B. The Plan was amended and restated by the Board on February 10, 2010 to be effective on the
Underwriting Date, subject to shareholder approval, to (i) provide for an automatic annual increase to the share reserve, (ii) limit the number of shares for which any one individual may receive awards under the Plan in any one year,
(iii) provide for the grant of share appreciation rights, (iv) add the Automatic Grant Program, and (v) effect technical revisions to facilitate plan administration. 
 C. One or more provisions of the Plan, including (without limitation) the vesting acceleration provisions of the Plan relating to Changes in
Control, may, in the Plan Administrator’s discretion, be extended to one or more awards incorporated from the Predecessor Plan which do not otherwise contain such provisions. 
 D. The Plan shall terminate upon the earliest of (i) the expiration of the ten (10)-year period measured from the Plan Effective Date,
(ii) the date on which all shares available for issuance under the Plan shall have been issued as vested shares or (iii) the termination of all outstanding awards under the Plan in connection with a Change in Control. All awards and
unvested share issuances outstanding at the time of a clause (i) termination event shall continue to have full force and effect in accordance with the provisions of the documents evidencing those awards or issuances. 
 III. AMENDMENT OF THE PLAN 
 A. The Board shall have complete and exclusive power and authority to amend or modify the Plan in any or all respects. However, no such amendment or modification shall adversely affect the rights and obligations with respect to awards or
unvested share issuances at the time outstanding under the Plan unless the Optionee or the Participant consents to such amendment or modification. In addition, certain amendments may require shareholder approval pursuant to applicable laws and
regulations. 
 B. Awards may be granted under the Plan which involve Common Shares in excess of the number of Common Shares
then available for issuance under the Plan, provided no shares shall actually be issued pursuant to those awards until there is obtained shareholder approval of an amendment sufficiently increasing the number of Common Shares available for issuance
under the Plan. If such shareholder approval is not obtained within twelve (12) months after the date the first such excess grants are made, then all awards granted on the basis of such excess shares shall terminate and cease to be outstanding.

 IV. USE OF PROCEEDS 
 Any cash proceeds received by the Company from the sale of Common Shares under the Plan shall be used for general corporate purposes. 
  

 16 

 V. WITHHOLDING 
 The Company’s obligation to deliver Common Shares upon the exercise of any options or share appreciation rights granted under the Plan or upon the issuance or vesting of any shares issued under the
Plan shall be subject to the satisfaction of all Tax withholding requirements. The Plan Administrator may, in its discretion, provide Optionees and Participants to whom awards are made under the Plan (other than the awards made under the Automatic
Grant Program) with the right to use Common Shares in satisfaction of all or part of the Taxes to which such holders may become subject in connection with the exercise, issuance or vesting of those awards or the issuance Common Shares thereunder.
Such right may be provided to any such holder in either or both of the following formats: 
 1. Share
Withholding: The election to have the Company withhold, from the Common Shares otherwise issuable upon the issuance, exercise or vesting of such award or the Common Shares thereunder, a portion of those shares with an aggregate Fair Market Value
equal to the percentage of the Taxes (not to exceed one hundred percent (100%)) designated by such individual. The Common Shares so withheld shall not reduce the number of Common Shares authorized for issuance under the Plan. 
 2. Share Delivery: The election to deliver to the Company, at the time of the issuance, exercise or vesting of such
award or the issuance of Common Shares thereunder, one or more Common Shares previously acquired by such individual (other than in connection with the exercise, share issuance or share vesting triggering the Taxes) with an aggregate Fair Market
Value equal to the percentage of the Taxes (not to exceed one hundred percent (100%)) designated by the individual. The Common Shares so delivered shall neither reduce the number of Common Shares authorized for issuance under the Plan nor be
added to the number of Common Shares authorized for issuance under the Plan. 
 VI. REGULATORY APPROVALS 
 A. The implementation of the Plan, the granting of any awards under the Plan and the issuance of any Common Shares (i) upon the exercise
of any option or share appreciation right or (ii) under the Share Issuance Program shall be subject to the Company’s procurement of all approvals and permits required by regulatory authorities having jurisdiction over the Plan, the options
and rights granted under it and the Common Shares issued pursuant to it. 
 B. No Common Shares or other assets shall be issued
or delivered under the Plan unless and until there shall have been compliance with all applicable requirements of applicable securities laws, including the filing and effectiveness of the Form S-8 registration statement for the Common Shares
issuable under the Plan, and all applicable listing requirements of any Stock Exchange on which Common Shares are then listed for trading. 
 VII. NO EMPLOYMENT OR SERVICE RIGHTS 
 Nothing in the Plan shall confer upon the Optionee or the Participant any
right to continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining such person) or of the Optionee or Participant, which
rights are hereby expressly reserved by each, to terminate such person’s Service at any time for any reason, with or without cause, subject to compliance with local law and the terms of any employment agreement. 
  

 17 

 APPENDIX 
 The following definitions shall be in effect under the Plan: 
 A. Automatic Grant Program shall mean the Automatic Grant Program in effect under the Plan. 
 B. Board shall mean the Company’s Board of Directors. 
 C. Change in Control shall mean a change in ownership or control of the Company effected through any of the
following transactions: 
 (i) a merger, consolidation or other reorganization approved by the Company’s
shareholders, unless securities representing more than fifty percent (50%) of the total combined voting power of the voting securities of the successor company are immediately thereafter beneficially owned, directly or indirectly and in
substantially the same proportion, by the persons who beneficially owned the Company’s outstanding voting securities immediately prior to such transaction, or 
 (ii) a shareholder-approved sale, transfer or other disposition of all or substantially all of the Company’s assets in
liquidation or dissolution of the Company, or 
 (iii) the acquisition, directly or indirectly by any person or
related group of persons (other than the Company or a person that directly or indirectly controls, is controlled by, or is under common control with, the Company), of beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders. 
 In no event shall any public offering of the Company’s securities be deemed to constitute a Change in Control. 
 D. Code shall mean the U.S. Internal Revenue Code of 1986, as amended. 
 E. Common Shares shall mean the Company’s common shares. 
 F. Company shall mean Alpha and Omega Semiconductor Limited, a company incorporated and existing under the laws
of the Islands of Bermuda, and any successor company to all or substantially all of the assets or voting stock of Alpha and Omega Semiconductor Limited which shall by appropriate action adopt the Plan. 
 G. Discretionary Grant Program shall mean the discretionary grant program in effect under Article Two of the
Plan pursuant to which options and share appreciation rights may be granted to one or more eligible individuals. 
 H. Employee shall mean an individual who is in the employ of the Company (or any Parent or Subsidiary), subject to the control and direction of the employer entity as to both the work to be performed and the manner and method
of performance. 
 I. Exercise Date shall mean the date on which the Company shall have received
written notice of the option exercise. 
 J. Fair Market Value per Common Share on any relevant
date shall be determined in accordance with the following provisions: 
 (i) If the Common Shares are at the time
traded on the Nasdaq Global or Global Select Market, then the Fair Market Value shall be the closing selling price per Common Share on the date in question, as such price is reported by the National Association of Securities Dealers for that
particular Stock Exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Share on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date
for which such quotation exists. 
  

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 (ii) If the Common Shares are at the time listed on any other Stock
Exchange, then the Fair Market Value shall be the closing selling price per share of Common Share on the date in question on the Stock Exchange determined by the Plan Administrator to be the primary market for the Common Shares, as such price is
officially quoted in the composite tape of transactions on such exchange. If there is no closing selling price for the Common Shares on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date
for which such quotation exists. 
 (iii) If the Common Shares are not at the time listed on any Stock Exchange,
then the Fair Market Value shall be determined by the Plan Administrator through the reasonable application of a reasonable valuation method that takes into account the applicable valuation factors set forth in the Treasury Regulations issued under
Section 409A of the Code; provided, however, that with respect to an Incentive Option, such Fair Market Value shall be determined in accordance with the standards of Section 422 of the Code and the applicable Treasury Regulations
thereunder. 
 K. Family Member shall mean, with respect to a particular Optionee or Participant,
any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law or sister-in-law. 
 L. Incentive Option shall mean an option which satisfies the requirements of Code Section 422. 

M. Involuntary Termination shall mean the termination of the Service of any individual which occurs by
reason of: 
 (i) such individual’s involuntary dismissal or discharge by the Company for reasons other than
Misconduct, or 
 (ii) such individual’s voluntary resignation following (A) a change in his or her
position with the Company which materially reduces his or her duties and responsibilities or the level of management to which he or she reports, (B) a reduction in his or her level of compensation (including base salary, fringe benefits and
target bonus under any corporate-performance based bonus or incentive programs) by more than fifteen percent (15%) or (C) a relocation of such individual’s place of employment by more than fifty (50) miles, provided and only if
such change, reduction or relocation is effected without the individual’s consent. 
 N.
Misconduct shall mean the commission of any act of fraud, embezzlement or dishonesty by the Optionee or Participant, any unauthorized use or disclosure by such person of confidential information or trade secrets of the Company (or any
Parent or Subsidiary), or any other intentional misconduct by such person adversely affecting the business or affairs of the Company (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not in any way preclude or
restrict the right of the Company (or any Parent or Subsidiary) to discharge or dismiss any Optionee, Participant or other person in the Service of the Company (or any Parent or Subsidiary) for any other acts or omissions, but such other acts or
omissions shall not be deemed, for purposes of the Plan, to constitute grounds for termination for Misconduct. 
 O. 1934 Act shall mean the U.S. Securities Exchange Act of 1934, as amended. 
 P.
Non-Statutory Option shall mean an option not intended to satisfy the requirements of Code Section 422. 
 Q. Optionee shall mean any person to whom an option or share appreciation right is granted under the Plan. 
 R. Parent shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with
the Company, provided each corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. 
 S. Participant shall mean any person who is issued Common
Shares under the Share Issuance Program or to whom restricted share units for share rights are awarded under such program. 
  

 A-2 

 T. Permanent Disability or Permanently Disabled shall mean the
inability of the Optionee or the Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months
or more. However, solely for purposes of the Automatic Grant Program, Permanent Disability or Permanently Disabled shall mean the inability of the non-employee Board member to perform his or her usual duties as a Board member by reason of any
medically determinable physical or mental impairment expected to result in death or to be of continuous duration of twelve (12) months or more. 
 U. Plan shall mean the Company’s 2009 Share Option/Share Issuance Plan, as set forth in this document. 
 V. Plan Administrator shall mean the particular entity, whether the Primary Committee, the Board or the
Secondary Committee, which is authorized to administer the Plan with respect to one or more classes of eligible persons, to the extent such entity is carrying out its administrative functions under those programs with respect to the persons under
its jurisdiction. 
 W. Plan Effective Date shall mean September 18, 2009. 
 X. Primary Committee shall mean the committee of two (2) or more non-employee Board members appointed by
the Board to administer the Discretionary Grant and Stock Issuance Programs with respect to executive officers and non-employee directors. 
 Y. Secondary Committee shall mean a committee of one (1) or more Board members appointed by the Board to administer the Discretionary Grant and Share Issuance Programs with respect to
eligible persons other than executive officers and non-employee directors. 
 Z. Service shall mean
the performance of services for the Company (or any Parent or Subsidiary, whether now existing or subsequently established) by a person in the capacity of an Employee, a non-employee member of the board of directors or a consultant or independent
advisor, except to the extent otherwise specifically provided in the documents evidencing the option grant or share issuance. For purposes of the Plan, an Optionee or Participant shall be deemed to cease Service immediately upon the occurrence of
the either of the following events: (i) the Optionee or Participant no longer performs services in any of the foregoing capacities for the Company or any Parent or Subsidiary or (ii) the entity for which the Optionee or Participant is
performing such services ceases to remain a Parent or Subsidiary of the Company, even though the Optionee or Participant may subsequently continue to perform services for that entity. Service shall not be deemed to cease during a period of military
leave, sick leave or other personal leave approved by the Company; provided, however, that for a leave which exceeds three (3) months, Service shall be deemed, for purposes of determining the period within which any outstanding option
held by the Optionee in question may be exercised as an Incentive Option, to cease on the first day immediately following the expiration of such three (3)-month period, unless that Optionee is provided with the right to return to Service following
such leave either by statute or by written contract. Except to the extent otherwise required by law or expressly authorized by the Plan Administrator or by the Company’s written policy on leaves of absence, no Service credit shall be given for
vesting purposes for any period the Optionee or Participant is on a leave of absence. 
 AA. Share Issuance
Agreement shall mean the agreement entered into by the Company and the Participant at the time of issuance of Common Shares under the Share Issuance Program. 
 BB. Share Issuance Program shall mean the share issuance program in effect under the Plan. 
 CC. Stock Exchange shall mean the American Stock Exchange, the Nasdaq Global or Global Select Market, the New
York Stock Exchange, the Stock Exchange of Hong Kong Limited or any internationally recognized stock exchange (as determined by the Plan Administrator). 
 DD. Subsidiary shall mean any company (other than the Company) in an unbroken chain of corporations beginning with the Company, provided each corporation (other than the last company) in the
unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  

 A-3 

 EE. 10% Shareholder shall mean the owner of stock (as
determined under Code Section 424(d)) possessing more than ten percent (10%) of the total combined voting power of all classes of stock of the Company (or any Parent or Subsidiary). 
 FF. Taxes shall mean shall mean the income tax, employment tax, social insurance, payroll tax, contributions,
payment on account obligations or other amounts required to be paid in connection with the exercise of an option or issuance or vesting of the Common Shares. 
 GG. Underwriting Agreement shall mean the agreement between the Company and the underwriter or underwriters
managing the initial public offering of the Common Shares. 
 HH. Underwriting Date shall mean the
date on which the Underwriting Agreement is executed and priced in connection with an initial public offering of the Common Shares. 
  

 A-4

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