Document:

Form of Non-Director and Non-Executive Officer

 Exhibit 10.2 
 [Semtech logo] 
 FORM OF 
 NON-DIRECTOR AND NON-EXECUTIVE OFFICER 
 LONG-TERM STOCK INCENTIVE PLAN 
 AWARD CERTIFICATE 
 THIS AWARD is made
this [Date] by Semtech Corporation, a Delaware Corporation (the “Company”), to [Name] (the “Optionee”). 
 R E C I T
A L S 
 A. The Board of Directors of the Company (the “Board”) has established the Non-Director and Non-Executive Officer
Long-Term Stock Incentive Plan of Semtech Corporation (the “Plan”) in order to provide key employees of the Company with an opportunity to acquire shares of the Company’s common stock (“Stock”). 
 B. The Board regards the Optionee as a key employee as contemplated by the Plan and has determined that it would be in the best interests of the Company
and its stockholders to grant the option described in this Award Certificate to the Optionee as compensation, as an inducement to remain in the service of the Company, and as an incentive for increasing efforts during such service. 
 NOW, THEREFORE, this Award is made on the following terms and conditions: 
 1. Definitions and Incorporation. The terms used in this Award Certificate shall have the meanings given to such terms in the Plan. The Plan is hereby incorporated in and made a part of this Award Certificate
as if fully set forth herein. 
 2. Grant of Option. Pursuant to the Plan, the Company hereby grants to the Optionee as of the date
hereof the option to purchase all or any part of an aggregate of [Amount] shares of Stock (the “Option”), subject to adjustment in accordance with Section 3(d) of the Plan. The Option is not intended to qualify as an incentive
stock option under Section 422A of the Internal Revenue Code of 1986, as amended. 
 3. Option Price. The price to be paid for
Stock upon exercise of the Option or any part thereof shall be $[Market Price] per share, which equals the last trading price (in regular trading) of a share of Stock on the Nasdaq stock market on the date of grant of the Award, or if the Stock is
not traded on such date, such price on the next succeeding business day. 
 4. Right to Exercise. Subject to the conditions set forth
in this Award Certificate and the Plan, the right to exercise the Option shall accrue as follows, with no portion of the right to exercise accruing on any other date (e.g. no pro-ration) except as specifically set forth in this Award
Certificate or the Plan: 
  

			
	 Date
	  	Number of
Shares
	 [First year anniversary of grant]
	  	[25% of grant]
	 [Second year anniversary of grant]
	  	[25% of grant]
	 [Third year anniversary of grant]
	  	[25% of grant]
	 [Fourth year anniversary of grant]
	  	[25% of grant]

 5. Securities Law Requirements. No part of the Option shall be exercised if counsel to the
Company determines that any applicable registration requirement under the Securities Act of 1933, as 
  

 amended (the “Securities Act”) or any other applicable requirement of Federal or State law has not been met.

 6. Term of Option. The Option shall terminate in any event on the earliest of (a) the [day before 6 year anniversary of grant]
at 11:59 PM, (b) the expiration of the period described in Paragraph 7 below, (c) the expiration of the period described in Paragraph 8 below, or, (d) the expiration of the period described in Paragraph 9 below. 
 7. Exercise Following Termination of Service. If the Optionee’s service with the Company terminates for any reason, or no reason, whether
voluntarily or involuntarily, with or without cause, other than death, disability or retirement, any portion of the Option granted hereunder held by such person which is not then exercisable shall terminate and any portion of the Option which is
then exercisable may be exercised within thirty (30) consecutive days after the date of such cessation. 
 8. Exercise Following
Death or Disability. If the Optionee’s service with the Company terminates by reason of the Optionee’s death or disability (as defined below), the Option (to the extent it has not previously been exercised and is then exercisable) may
be exercised within one year after the date of the Optionee’s death or termination by reason of disability. In the case of death, the exercise may be made by his or her representative or by the person entitled thereto under the Optionee’s
will or the laws of descent and distribution, provided however, that such representative or such person consents in writing to abide by and be subject to the terms of the Plan and this Award Certificate and such writing is delivered to the President
of the Company. For purposes hereof, “disability” shall mean a medically determinable physical or mental impairment which has made an individual incapable of engaging in any substantial gainful activity. A condition shall be considered a
disability only if (i) it can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than twelve (12) months, and (ii) the Plan Administrator, based on medical evidence, has
expressly determined that a disability exists. 
 9. Exercise Following Retirement. If the Optionee’s service with the Company
terminates by reason of retirement (as defined below) the Option (to the extent it has not previously been exercised and is then exercisable) may be exercised within ninety (90) days after the date of the Optionee’s retirement. For
purposes hereof, “retirement” shall mean the voluntary cessation of employment by an individual upon the attainment of age sixty-five (65) and the completion of not less than twenty (20) years of service with the Company or a
subsidiary. 
 10. Exercise Following Change of Control. Notwithstanding any other provision to the contrary contained herein, subject
to the provisions of Section 3(d) of the Plan, if within one year of a Change in Control (as defined below), the Optionee is terminated without cause or a Constructive Termination (as defined below) occurs with respect to the Optionee, any
outstanding Options shall automatically become fully vested and exercisable as of the date of the Change in Control, whether or not then exercisable, without any further action on the part of the Board, the stockholders or any committee established
by the Board to administer the Plan. 
 For purposes hereof, a “Change in Control” shall mean (i) a merger or consolidation in which the
stockholders of the Company immediately prior to such merger or consolidation do not hold, immediately after such merger or consolidation, more than 50% of the combined voting power of the surviving or acquiring entity (or parent corporation
thereof), or (ii) the sale of substantially all of the assets of the Company or assets representing over 50% of the operating revenues of the Company or (iii) any person shall become the beneficial owner of over 50% of the Company’s
outstanding Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally, or become a controlling person as defined in Rule 405 promulgated under the Securities Act. 
 For purposes hereof, “Constructive Termination” shall mean Optionee’s voluntary termination within one year of Optionee’s knowledge of the occurrence
of (i) a reduction in the Optionee’s base salary after a 
  

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 Change in Control from that in effect immediately prior to the Change in Control; or (ii) a material or substantial
reduction or change in job duties, responsibilities, and requirements after a Change in Control from Optionee’s duties, responsibilities, and requirements immediately prior to the Change in Control. A termination shall not be treated as a
Constructive Termination if the Optionee shall have specifically consented in writing to the occurrence of the event giving rise to the claim of Constructive Termination. 
 11. Nontransferability. The Option shall be exercisable during the Optionee’s lifetime only by the Optionee or the Optionee’s guardian or legal representative and shall be nontransferable, except that
the Optionee may transfer all or any part of the Option by will or by the laws of descent and distribution. Except as otherwise provided herein, any attempted alienation, assignment, pledge, hypothecation, attachment, execution or similar process,
whether voluntary or involuntary, with respect to all or any part of the Option or any right thereunder, shall be null and void and, at the Company’s option, shall cause all of the Optionee’s rights under this Award Certificate to
terminate. 
 12. Effect of Exercise. Upon exercise of all or any part of the Option, the number of shares of Stock subject to option
under this Award Certificate shall be reduced by the number of shares with respect to which such exercise is made. 
 13. Exercise of
Option. The Option may be exercised by delivering to the Company (a) a written notice of exercise in substantially the form prescribed from time to time by the Board and (b) full payment of the option price for each share of Stock
purchased under the Option. Such notice shall specify the number of shares of Stock with respect to which the Option is exercised and shall be signed by the person exercising the Option. If the Option is exercised by a person other than the
Optionee, such notice shall be accompanied by proof, satisfactory to the Company, of such person’s right to exercise the Option. The Option price shall be payable in U.S. dollars. 
 14. Withholding Taxes. If the Optionee is an employee or former employee of the Company when all or part of the Option is exercised,
the Company may require the Optionee to deliver payment of any withholding taxes (in addition to the option price) in cash with respect to the difference between the Option price and the fair market value of the Stock acquired upon exercise.

 15. Issuance of Shares. Subject to the foregoing conditions, the Company, as soon as reasonably practicable after receipt of a
proper notice of exercise and without transfer or issue tax or other incidental expense to the person exercising the Option, shall deliver to such person at the principal office of the Company, or such other location as may be acceptable to the
Company and such person, one or more certificates for the shares of Stock with respect to which the Option is exercised. Such shares shall be fully paid and nonassessable and shall be issued in the name of such person. However, at the request of the
Optionee, such shares may be issued in the names of the Optionee and his or her spouse as (a) joint tenants with right of survivorship, (b) community property, or (c) tenants in common without right of survivorship. 
 16. Rights as a Stockholder. Neither the Optionee nor any other person entitled to exercise the Option shall have any rights as a stockholder of
the Company with respect to the stock subject to the Option until a certificate for such shares has been issued to him or her upon exercise of the Option. 
 17. Notices. Any notice to the Company contemplated by this Award Certificate shall be addressed to it in care of its President; and any notice to the Optionee shall be addressed to him or her at the address on
file with the Company on the date hereof or at such other address as he or she may hereafter designate in writing. 
 18. Not a Contract
of Employment. Nothing in this Award Certificate gives Optionee the right to remain in the employ of the Company or any subsidiary or to affect the absolute and unqualified right of the Company and any of its subsidiaries to terminate
Optionee’s employment at any time for any reason or no reason and with or without cause or prior notice. Except to the extent explicitly provided 
  

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 otherwise in a then effective written employment contract executed by Optionee and the Company, Optionee is an at will
employee whose employment may be terminated without liability at any time for any reason. By accepting this Award, Optionee acknowledges and agrees that (a) a person whose employment is terminated before full vesting of an award, such as the
one granted by this Award Certificate, could attempt to argue that he or she was terminated to preclude vesting of the award, (b) that Optionee agrees never to make such a claim, and (c) in any event, Optionee has no right to pro-rated
vesting with respect to the Award if his or her employment terminates before any applicable vesting date with respect to the Award (regardless of the portion of the vesting period the Optionee was actually employed by the Company and/or any of its
subsidiaries). 
 19. Interpretation. The interpretation, construction, performance and enforcement of the terms and conditions of
this Award Certificate and the Plan shall lie within the sole discretion of the Plan Administrator, and the Plan Administrator’s determinations shall be conclusive and binding on all interested persons. 
 20. Choice of Law. This Award Certificate shall be governed by and construed in accordance with the internal substantive laws (not the law of
choice of laws) of the State of California. Any dispute or disagreement regarding the Optionee’s rights under this Award Certificate shall be settled solely by binding arbitration in accordance with the applicable rules of the American
Arbitration Association. 
  

			
	 SEMTECH CORPORATION,

	 a Delaware corporation

		
	 By
	 	  

		 	 [an authorized officer]

  

	Rev:	Sep 2001 

	[rev	2006 - 6 year term] 

	[rev	2007 - Unilateral] 

  

 -4-Long-term Stock Incentive Plan

 Exhibit 10.3 
 SEMTECH CORPORATION 
 LONG-TERM STOCK INCENTIVE PLAN 
 (As Amended and Restated) 
 1. THE PLAN 
 (a) Purpose. The purpose of this Long-Term Stock Incentive Plan (the “Plan”) is to promote the longer-term financial success of Semtech
Corporation (the “Company”) by providing a means to attract, retain and award individuals who can and do contribute to such success. By using stock-based compensation, the recipients of awards under the Plan will further identify their
interests with those of the Company’s stockholders. 
 (b) Effective Date. To serve this purpose, the Plan will become effective upon
its approval by the affirmative vote of a majority of the shares present or represented by proxy at the Company’s 1998 Annual Meeting of Stockholders. 
 2. ADMINISTRATION 
 (a) Committee. The Plan shall be administered by a Committee, appointed by the Board of Directors of the
Company. So long as the Company’s common stock, par value $.01 per share (“Common Stock”) remain registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and Section 16 Participants may
receive awards, any committee authorized by the Board to administer the Plan shall be comprised solely of two or more directors of the Company who are Non-Employee Directors within the meaning of Rule 16b-3(b)(3)(i) promulgated under the Exchange
Act. Notwithstanding the foregoing, the Board of Directors of the Company (the “Board”) may assume, at its sole discretion, administration of the Plan. The administrator of the Plan, whether a committee of the Board or the full Board, is
referred to herein as the “Plan Administrator.” 
 (b) Powers and Authority. The Plan Administrator’s powers and authority
include, but are not limited to, selecting individuals who are (1) employees of the Company or any subsidiary of the Company or other entity in which the Company has a significant equity or other interest as determined by the Plan
Administrator, or (2) members of the Board; determining the types and terms and conditions of all awards granted, including performance and other earnout and/or vesting contingencies; permitting transferability of awards to third parties;
interpreting the Plan’s provisions; and administering the Plan in a manner that is consistent with its purpose. 
 (c) Award Prices. For
Plan purposes, all stock options and stock appreciation rights shall have an exercise price which shall reflect the closing market price of a share of Common Stock, on the date as determined by the Plan Administrator, or if the Common Stock is not
traded on such date, the closing market price on the next succeeding business day (next day on which such Common Stock is traded). The applicable date (date determined by the Plan administrator) shall be the date on which the award is granted.

 3. SHARES SUBJECT TO THE PLAN 
 (a) Maximum
Shares Available for Delivery. Subject to Section 3(c), the maximum number of shares of Common Stock that may be delivered to participants 

  

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and their beneficiaries under the Plan shall be equal to the sum of (i) 2,000,000 shares of Common Stock; (ii) any shares of Common Stock available for
future awards under the Company’s 1994 Long-Term Stock Incentive Plan as of the effective date of this Plan; (iii) any shares of Common Stock available for future awards under the Company’s 1994 Non-Employee Directors Stock Option
Plan as of the effective date of this Plan; (iv) any shares of Common Stock that are represented by awards granted under any prior plan of the Company, which are forfeited, expire or are canceled without the delivery of shares of Common Stock
or which result in the forfeiture of shares of Common Stock back to the Company; and (v) up to 2,000,000 additional shares of Common Stock, if authorized by the Board, which are reacquired in the open market or in a private transaction after
the effective date of this Plan. Collectively the shares of Common Stock subject to this Plan are referred to herein as “Shares.” In addition, any Shares granted under the Plan which are forfeited back to the Company because of the failure
to meet an award contingency or condition shall again be available for delivery pursuant to new awards granted under the Plan. Any Shares covered by an award (or portion of an award) granted under the Plan, which is forfeited or canceled, expires or
is settled in cash, shall be deemed not to have been delivered for purposes of determining the maximum number of Shares available for delivery under the Plan. Likewise, if any stock option is exercised by tendering Shares, either actually or by
attestation, to the Company as full or partial payment in connection with the exercise of a stock option under this Plan or any prior plan of the Company, only the number of Shares issued net of the Shares tendered shall be deemed delivered for
purposes of determining the maximum number of Shares available for delivery under the Plan. Further, Shares issued under the Plan through the settlement, assumption or substitution of outstanding awards or obligations to grant future awards as a
condition of the Company acquiring another entity shall not reduce the maximum number of Shares available for delivery under the Plan. 
 (b)
Other Plan Limits. Subject to Section 3(c), the following additional maximums are imposed under the Plan. The maximum number of Shares that may be covered by stock options intended to comply with Section 422 of the Internal Revenue Code of
1986, as amended (the “Code”), (“Incentive Stock Options”) shall be 2,000,000. The maximum number of Shares that may be issued in conjunction with awards granted pursuant to Section 4(d) shall be 600,000 plus up to an
additional 600,000 to the extent that such Shares are reacquired by the Company pursuant to Section 3(a). The maximum number of Shares that may be covered by awards granted to any one individual pursuant to Sections 4(b) and 4(c) shall be
500,000 during any consecutive three calendar years. The maximum payment that can be made for awards granted to any one individual pursuant to Sections 4(d) and 4(e) shall be $2,500,000 for any single or combined performance goals established for a
specified performance period. If a payment under Sections 4(d) or 4(e) is made in Shares, the value of such Shares for determining this maximum individual payment amount will be the closing price of a Share on the first day of the applicable
performance period. A specified performance period for purposes of this performance goal payment limit shall not exceed a sixty (60) consecutive month period. 
 (c) Payment Shares. Subject to the overall limitation on the number of Shares that may be delivered under the Plan, the Plan Administrator may use available Shares as the form of payment for compensation, grants or
rights earned or due under any other compensation plans or arrangements of the Company, including the plan of any entity acquired by the Company. 
  

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 (d) Adjustments for Corporate Transactions. The Plan Administrator may determine that: 
 (i) In the event that the outstanding shares of Common Stock of the Company are changed into or exchanged for a different number or kind of shares or
other securities of the Company by reason of any recapitalization, reclassification, stock split, stock dividend, combination or subdivision, appropriate adjustment shall be made in the number of shares available under the Plan and under any stock
awards granted under the Plan. Such adjustment to outstanding stock awards shall be made without change in the total price applicable to the unexercised portion of such awards, and a corresponding adjustment in the applicable option price per share
shall be made. No such adjustment shall be made which would, within the meaning of any applicable provisions of the Code, constitute a modification, extension or renewal of any award or a grant of additional benefits to the holder of an award.

 (ii) In case (A) the Company is merged or consolidated with another corporation or other entity and the Company is not the surviving
corporation, (B) all or substantially all of the assets or more than 50% of the outstanding voting stock of the Company is acquired by any other corporation or other entity or (C) of a reorganization or liquidation of the Company, the Plan
Administrator or the governing body of any entity assuming the obligations of the Company, shall, as to outstanding awards, either (x) make appropriate provision for the protection of any such outstanding awards by the substitution on an
equitable basis of appropriate stock of the Company, or of the merged, consolidated or otherwise reorganized corporation which will be issuable in respect of the shares of Common Stock of the Company, provided that no additional benefits shall be
conferred upon participants as a result of such substitution, and the excess of the aggregate fair market value of the shares subject to the awards immediately after such substitution over the purchase price thereof is not more than the excess of
the aggregate fair market value of the shares subject to the award immediately before such substitution over the purchase price thereof, or (y) upon written notice to the participants, provide that all unexercised awards must be exercised within a
specified number of days of the date of such notice or they will be terminated. In any such case, the Plan Administrator may, in its discretion, accelerate the exercise dates of outstanding awards; provided, however, that subsections
(iii) and (iv) of this paragraph (d) shall govern acceleration of awards with respect to the events described therein. 
 (iii) In case of (A) any consolidation or merger involving the Company if the shareholders of the Company immediately before such merger or consolidation do not own, directly or indirectly, immediately following such merger or
consolidation, more than fifty percent (50%) of the combined voting power of the outstanding voting securities or interests of the corporation (or its parent corporation) or other entity resulting from such merger or consolidation in
substantially the same proportion as their ownership of the shares of Common Stock immediately before such merger or consolidation; (B) any sale, lease, license, exchange or other transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the business and/or assets of the Company or assets representing over 50% of the operating revenue of the Company; or (C) any person (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act who is not, on April 16, 1998, a “controlling person” (as defined in Rule 405 promulgated under the Securities Act of 1933, as amended) (a “Controlling Person”) of the Company shall become (x) the
beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of over 50% of the Company’s outstanding Common Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote
generally or 

  

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(y) a Controlling Person of the Company, all outstanding awards, regardless of the date of grant of such awards, shall immediately become exercisable with
respect to 100% of the Shares subject to such awards. This paragraph 3(d)(iii) shall apply only to awards granted prior to October 3, 2001 and to awards granted on or after October 3, 2001 to participants who are non-employee directors on
the date of grant. 
 (iv) In the event of the termination without cause of a participant within one year following a Change in Control (as
defined below) or a Constructive Termination (as defined below) of a participant, all outstanding awards, regardless of the date of grant of such awards, shall immediately become exercisable with respect to 100% of the Shares subject to such awards.

 For purposes of this paragraph 3(d)(iv), “Constructive Termination” shall mean participant’s voluntary termination within one year
following participant’s knowledge of the occurrence of any of the following: (A) a reduction in participant’s base salary after a “Change in Control” (as defined below) from that in effect immediately prior to the Change in
Control; or (B) a material or substantial reduction or change in job duties, responsibilities and requirements after a Change in Control from participant’s prior duties, responsibilities and requirements immediately prior to the Change in
Control. Notwithstanding the foregoing, a termination shall not be treated as a Constructive Termination if the participant shall have specifically consented in writing to the occurrence of the event giving rise to the claim of Constructive
Termination. 
 For purposes of this paragraph 3(d)(iv), “Change in Control” shall mean the occurrence of any of the following events with respect
to the Company: (A) any consolidation or merger involving the Company if the shareholders of the Company immediately before such merger or consolidation do not own, directly or indirectly, immediately following such merger or consolidation,
more than fifty percent (50%) of the combined voting power of the outstanding voting securities or interests of the corporation (or its parent corporation) or other entity resulting from such merger or consolidation in substantially the same
proportion as their ownership of the shares of Common Stock immediately before such merger or consolidation; (B) any sale, lease, license, exchange or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the business and/or assets of the Company or assets representing over 50% of the operating revenue of the Company; or (C) any person (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) who is not, on
October 3, 2001, a Controlling Person of the Company shall become (x) the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of over 50% of the Company’s outstanding Common Stock or the combined
voting power of the Company’s then outstanding voting securities entitled to vote generally or (y) a Controlling Person of the Company. 
 This
paragraph 3(d)(iv) shall apply only to awards granted on or after October 3, 2001 to participants who on the date of grant are other than non-employee directors. 
 4. TYPES OF AWARDS 
 (a) General. An award may be granted singularly, in combination with another award(s) or
in tandem whereby exercise or vesting of one award held by a participant cancels another award held by the participant. Any award granted under the Plan shall be evidenced by a written agreement in form and substance satisfactory to the Plan
Administrator. These agreements must conform to the Plan. The Plan Administrator may include such terms, consistent with the Plan, 
  

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as it determines in its discretion. Subject to Section 2(c), an award may be granted as an alternative to or replacement of an existing award under the
Plan or under any other compensation plans or arrangements of the Company, including the plan of any entity acquired by the Company. The types of awards that may be granted under the Plan include: 
 (b) Stock Option. A stock option represents a right to purchase a specified number of Shares during a specified period at a price per Share which is no
less than that required by Section 2(c). A stock option may be in the form of an incentive stock option or in a form which does not qualify for favorable federal tax treatment. The Shares covered by a stock option may be purchased by means of a
cash payment or such other means as the Plan Administrator may from time to time permit, including without limitation (i) tendering (either actually or by attestation) Shares valued using the market price at the time of exercise, (ii)
authorizing a third party to sell Shares (or a sufficient portion thereof) acquired upon exercise of a stock option and to remit to the Company a sufficient portion of the sale proceeds to pay for all the Shares acquired through such exercise and
any tax withholding obligations resulting from such exercise; (iii) crediting toward the purchase price amounts from individuals’ deferred compensation account balances, including accrued dividend equivalent balances; or (iv) any
combination of the above. (c) Stock Appreciation Right. A stock appreciation right is a right to receive a payment in cash, Shares or a combination, equal to the excess of the aggregate market price at time of exercise of a specified number of
Shares over the aggregate exercise price of the stock appreciation rights being exercised. 
 (d) Stock Award. A stock award is a grant of
Shares or of a right to receive Shares (or their cash equivalent or a combination of both) in the future. Each stock award shall be subject to such conditions, restrictions and contingencies as the Plan Administrator shall determine. These may
include continuous service and/or the achievement of performance goals. The performance goals that may be used by the Plan Administrator for such awards shall consist of cash generation targets, profit, revenue and market share targets,
profitability targets as measured by return ratios, and shareholder returns. The Plan Administrator may designate a single goal criterion or multiple goal criteria for performance measurement purposes with the measurement based on absolute Company
or business unit performances and/or on performance as compared with that of other publicly-traded companies. 
 (e) Cash Award. A cash award
is a right denominated in cash or cash units to receive a payment, which may be in the form of cash, Shares or a combination, based on the attainment of pre-established performance goals and such other conditions, restrictions and contingencies as
the Plan Administrator shall determine. The performance goals that may be used by the Plan Administrator for such awards shall consist of cash generation targets, profits, revenue and market share targets, profitability targets as measured by return
ratios and shareholder returns. The Plan Administrator may designate a single goal criterion or multiple goal criteria for performance measurement purposes with the measurement based on absolute Company or business unit performance and/or on
performance as compared with that of other publicly-traded companies. 
 (f) Special Provisions for Incentive Stock Options. Stock Options
granted under the Plan which are intended to be Incentive Stock Options shall be specifically designated as Incentive Stock Options and shall be subject to the following additional terms and conditions: 
 (i) Dollar Limitation. The aggregate fair market value (determined as of the 

  

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respective date or dates of the grant) of the Shares with respect to which Incentive Stock Options granted to any employee under the Plan (and under any
other incentive stock option plans of the Company and any parent corporation and subsidiary) are exercisable for the first time shall not exceed $100,000 in any one calendar year. In the event that Section 422 of the Code is amended to alter
the limitation set forth therein so that following such amendment such limitation shall differ from the limitation set forth in this paragraph (i), the limitation of this paragraph (i) shall be automatically adjusted accordingly. 
 (ii) 10% Stockholder. If any employee to whom an Incentive Stock Option is to be granted under the Plan is at the time of the grant of such option the
owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any parent corporation or any subsidiary, then the following special provisions shall be applicable to the Incentive Stock Option
granted to such individual: 
 (A) The purchase price per Share subject to such Incentive Stock Options shall not be less than 110% of the
fair market value of one share of Common Stock at the time of grant; and 
 (B) The option exercise period shall not exceed five years from
the date of grant. 
 (iii) Section 422. All Incentive Stock Options shall otherwise comply with the provisions of Section 422 of
the Code, as the same shall be amended from time to time. 
 5. AWARD SETTLEMENT AND PAYMENTS 
 (a) Dividends and Dividend Equivalents. An award may contain the right to receive dividends or dividend equivalent payments which may be paid currently
credited to a participant’s account. Any such crediting of dividends or dividend equivalents or reinvestment in Shares may be subject to such conditions, restrictions and contingencies as the Plan Administrator shall establish, including the
reinvestment of such credited amounts in Share equivalents. 
 (b) Payments. Awards may be settled through cash payments, the delivery of
Shares, the granting of awards or combination thereof as the Plan Administrator shall determine. Any award settlement, including payment deferrals, may be subject to such conditions, restrictions and contingencies as the Plan Administrator shall
determine. The Plan Administrator may permit or require the deferral of any award payment, subject to such rules and procedures as it may establish, which may include provisions for the payment or crediting of interest, or dividend equivalents,
including converting such credits into deferred Share equivalents. 
 6. PLAN AMENDMENT AND TERMINATION 
 (a) Amendments. The Company’s Board of Directors may amend this Plan as it deems necessary and appropriate to better achieve the Plan’s purpose;
provided however, that any amendment to the Plan which would require approval of the Company’s stockholders under applicable law, or under the rules or guidelines of any exchange or automatic quotation system on which the Shares are traded or
included, then, in any of such events, such stockholder approval of any such amendment shall also be obtained. 
 (b) Plan Suspensions and
Termination. The Board of Directors of the Company 

  

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may suspend or terminate this Plan at any time. Any such suspension or termination shall not of itself impair any outstanding award granted under the Plan or
the applicable participant’s rights regarding such award. If not earlier terminated, this Plan shall terminate upon the tenth anniversary of the effective date of the Plan. Unless (i)an earlier termination is specified or (ii) a later
termination is specified with respect to awards granted to employees outside of the United States, awards granted under the Plan shall terminate upon the tenth anniversary of their date of grant. 
 7. MISCELLANEOUS 
 (a) No Individual Rights. No person shall
have any claim or right to be granted an award under the Plan. Neither the Plan nor any action taken hereunder shall be construed as giving any employee or other person any right to continue to be employed by or to perform services for the Company,
any subsidiary or related entity. The right to terminate the employment of or performance of 
 services by any Plan participant at any time and for any
reason is specifically reserved to the employing entity. 
 (b) Binding Arbitration. Any dispute or disagreement regarding participation
and/or an award recipient’s rights under the Plan shall be settled solely by binding arbitration in accordance with the applicable rules of the American Arbitration Association. 
 (c) Unfunded Plan. The Plan shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Plan shall not
establish any fiduciary relationship between the Company and any participant or beneficiary of a participant. To the extent any person holds any obligation of the Company by virtue of an award granted under the Plan, such obligation shall merely
constitute a general unsecured liability of the Company and accordingly shall not confer upon such person any right, title or interest in any assets of the Company. 
 (d) Other Benefit and Compensation Programs. Unless otherwise specifically determined by the Plan Administrator, settlements of awards received by participants under the Plan shall not be deemed a part of a
participant’s regular, recurring compensation for purposes of calculating payments or benefits from any Company benefit plan or severance program. Further, the Company may adopt other compensation programs, plans or arrangements as it deems
appropriate. 
 (e) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any award, and the Plan
Administrator shall determine whether cash shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled. 
 (f) Special Provision Regarding Termination of Directorship. If a participant that is a member of the Board terminates his or her services as a member of
the Board by reason of death, disability or retirement (as defined by the Plan Administrator in the written agreement evidencing the award to such Board member), an award granted hereunder held by such person shall be automatically accelerated with
respect to its exercisability and shall become immediately exercisable in full for the remaining number of Shares subject to such award for three years after the date of such termination or until the expiration of the stated term of such award,
whichever period is shorter, and thereafter such award shall terminate; provided, however, that if such person dies or suffers a disability during said three-year period after retirement such award shall 

  

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remain exercisable in full for a period of three years after the date of such death or disability or until the expiration of the stated term of such award,
whichever period is shorter, and thereafter such award shall terminate. If a participant that is a member of the Board terminates his or her services as a member of the Board for any other reason, any portion of an award granted hereunder held by
such person which is not then exercisable shall terminate and any portion of such award which is then exercisable may be exercised for three months after the date of such termination or until the expiration of the stated term of such award,
whichever period is shorter, and thereafter such award shall terminate; provided, however, that if such person dies or suffers a disability during such three month period, such award may be exercised for a period of one year after the date of such
person’s death or disability or until the expiration of the stated term of such award, whichever period is shorter, in accordance with its terms, but only to the extent exercisable on the date of such person’s death or disability.

 10-26-06 
  

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