Document:

exv10w52

 

Exhibit 10.52

[EMPL_NAME]

Employee ID: [EMPLID]

Grant Number: [GRANT_ID]

APPLIED MATERIALS, INC.

NON-QUALIFIED STOCK OPTION GRANT AGREEMENT (“Agreement”)

Applied Materials, Inc. (the “Company”) hereby grants you, [EMPL_NAME] (the “Employee”), an Option under the
Company’s 2000 Global Equity Incentive Plan (the “Plan”) to purchase shares of common stock of the Company.
The date of this Agreement is [GRANT_DT] (the “Grant Date”). The terms used and not defined in this Agreement
have the meaning set forth in the Plan. Subject to the provisions of the Terms and Conditions of the
Non-Qualified Stock Option Grant Agreement (the “Terms and Conditions”), which constitute part of this
Agreement and of the Plan, the principal features of this Option are as follows:

	 	 	 
	Maximum Number of Shares Purchasable with this Option:
[MAX_SHARES]

	 	Exercise Price per Share:
US[SHARE_PRICE]

Number of Shares and Vesting of Stock Options: Please refer to the UBS One Source website for the number of
Shares and their respective vesting dates related to this Option grant (click on the specific grant under the
tab labeled “Grants/Awards/Units”).

Expiration Date: In general, the latest date this Option will terminate is (a) [EXPR_DT], provided that
[EXPR_DT] is a day on which the Nasdaq U.S. stock market is open for trading (a “Nasdaq trading day”) or (b) if
[EXPR_DT] is not a Nasdaq trading day, then the Nasdaq trading day immediately preceding [EXPR_DT] (the
“Expiration Date”). However, this Option may terminate earlier than the Expiration Date, as set forth
immediately below and in the Terms and Conditions.

	 	 	 
	Event Triggering Option Termination:	 	Maximum Time to Exercise After Triggering Event*
	 
	 	 
	Termination of Service (except as shown below)

	 	30 days
	 
	 	 
	Termination of Service due to Retirement
(Age 65 or age 60 or over, with at least 10 Years of Service)

	 	1 year
	 
	 	 
	Termination of Service due to Disability

	 	6 months
	 
	 	 
	Termination of Service due to Death

	 	1 year (6 months for Employees in France)

 

			
	*	 	This Option may not be exercised after the Expiration Date (except in the event
of the Employee’s death). In addition, the maximum time to exercise this Option
may be further limited by the Company where required by applicable law.

For Employees employed in Belgium on the Grant Date: The taxable event for the
Option may be on the Grant Date or the exercise date, depending on when you accept
the Option. If you accept the Option during the 60 day period following receipt
of the Option information, you will be taxed at Grant. If you accept the Option
after the 60 day period following the receipt of the Option information, you will
be taxed when you exercise the Option. To obtain the deferred taxable event
(i.e., at exercise), click your acceptance below after the 60-day period following
receipt of the Option information has passed.

For Employees employed in France on the Grant Date:

	A.	 	The Exercise Price per Share is the greater of (i) the Fair Market Value of
the Company’s common stock on the Grant Date, or (ii) 95% of the average Fair
Market Value of the Company’s common stock for the 20 trading days preceding the
Grant Date.
	 
	B.	 	In addition to the foregoing, except in the event of the death of the
Employee, the Shares 

 

 

	 	 	acquired upon exercise of this Option may not be sold or
transferred until the expiration of the holding period provided by article 163
bis C of the French Tax Code, currently four years after the Grant Date of the
Option.

For Employees employed in India: If you are employed in India when your Option
vests in accordance with the vesting provisions set forth on the UBS One Source
website (click on the specific grant under the tab labeled “Grants/Awards/Units”),
you consent to and agree to satisfy any liability the Company and/or your employer
realize with respect to fringe benefit taxes required to be paid by the Company
and/or your employer in connection with the grant, vesting, or sale of the Option
and the Shares issued thereunder, should the Company or your employer, as
applicable, require you to do so. You authorize the Company or your employer to
withhold any such fringe benefit taxes from the sale of a sufficient number of
Shares upon exercise of the Option. In addition and to the maximum extent
permitted by law, the Company (or your employer) has the right to retain without
notice from salary or other amounts payable to you to satisfy such liability. The
Company, in its discretion, may require you, and you hereby agree to make payment
on demand for such liability by cash or check to the Company or your employer. If
additional consents and/or elections are required to accomplish the foregoing, you
agree to provide them promptly upon request. If the foregoing is not allowed
under applicable law, the Company may rescind your Option.

For Employees employed in Israel on the Grant Date: Options for Israeli employees
are granted under a tax-qualified plan called a Section 102 capital gains tax
route plan. Information regarding the Section 102 capital gains tax route plan
and related forms will be provided to Israeli employees by their managers. In
addition to the foregoing, in order to qualify for favorable tax treatment, the
Shares acquired upon exercise of this Option generally must not be sold until the
expiration of the holding period provided by Section 102 of the Israel Income Tax
Ordinance [New Version], 1961, currently two years from the Grant Date of the
Option. Clicking your acceptance of this electronic agreement, if done timely,
will also indicate your acceptance of the capital gains tax route under Section
102, as more specifically set forth below. Further, upon receipt of the Shares
issued upon exercise of this Option grant, you authorize and direct UBS Financial
Services, Inc. (“UBS”) to transfer to the Section 102 Trustee all net proceeds of
cash or Shares resulting from any transaction involving this Option grant and to
share information about your UBS account pursuant to the terms of the UBS Letter
of Authorization as more specifically set forth below.

For Employees employed in Italy on the Grant Date: Notwithstanding the provisions
concerning the issuance of Shares set forth generally in the Terms and Conditions
and the Plan, the Shares acquired upon your exercise of this Option will be
immediately sold on your behalf through the same-day sale-method. Under the
same-day-sale method, UBS Financial Services (“UBS”) will administer the sale of
the Shares. UBS will withhold an amount from the sale proceeds equal to the
exercise price of the Option, plus any applicable taxes, commissions, and fees
from the sale proceeds and deliver the net proceeds into your account with UBS.
As a result of the same-day-sale, actual Shares of the Company will not be
delivered to you upon exercise of the Option.

For Employees employed in the United Kingdom (U.K.) on the Grant Date:

A. Inland Revenue Approved Options. If this Option is granted under the Inland
Revenue approved sub-plan, the Exercise Price per Share is the Fair Market Value
on the trading day preceding the Grant Date. The maximum aggregate value of all
Inland Revenue approved Options held by the Employee at any one time may not
exceed £30,000. If the £30,000 threshold is met, any additional Options granted to
the Employee will be standard non-qualified Options.

B. 
National Insurance Contribution (“NIC”). The grant of your Options (both
Inland Revenue approved Options and non-qualified Options) are subject to the
execution of a joint election between the Company and you (the “Election”), being
formally approved by the H.M.Revenue & Customs (the” HMR&C”) and remaining in
force thereafter under which you agree to pay all NICs that may become due on any
gains realized upon exercise of the Option (with certain exceptions).

 

 

 The NICs
include the “primary” NIC payable by an employee as well as the “secondary” NIC
payable by the employer in the absence of any election (referred to as the
Secondary Contributions under paragraph 3B(4) of Schedule 1 to the Social Security
Contributions and Benefits Act of 1992). By accepting the Option, to the extent
allowable by applicable law, you hereby consent and agree to satisfy any liability
the Company and/or your employer realizes with respect to Secondary Class 1 NIC
payments required to be paid by the Company and/or your employer in connection
with the exercise of the Option.

In addition, by accepting the Option, you hereby authorize the Company or your
employer to withhold any such Secondary Class 1 NICs from deduction at source, if
practicable, in the form of withholding from (1) your salary or (2) the proceeds
of a “cashless” exercise or “same-day-sale” of shares issued upon exercise of the
Option. If withholding is not practicable, the Company, in its discretion, may
require you, and you hereby agree, to make payment on demand for such
contributions to the Company or your employer by (a) cash or check directly to the
Company or the employer or (b) through the transfer of proceeds to the Company or
employer from the sale of shares held by you and the Company or employer will
remit such contributions to the HMR&C. If additional consents and/or elections
are required to accomplish the foregoing, you agree to provide them promptly upon
request. If the foregoing is not allowed under applicable law, the Company may
rescind your Option. If you do not enter into an Election prior to the first
vesting date or if the Election is revoked at any time by the HMR&C, the Option
shall become null and void without any liability to the Company and/or your
employer and shall lapse with immediate effect.

IMPORTANT:

IT IS YOUR RESPONSIBILITY TO EXERCISE THIS OPTION BEFORE IT TERMINATES.

Your electronic signature below indicates your agreement and understanding that this
Option is subject to all of the rules and other provisions contained in the Terms
and Conditions to this Agreement and the Plan. For example, important additional
information on vesting and termination of this Option is contained in Paragraphs 1
through 5 of the Terms and Conditions. PLEASE BE SURE TO READ ALL OF THE TERMS AND
CONDITIONS, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS OPTION,
INCLUDING INFORMATION CONCERNING CANCELLATION AND TERMINATION OF THIS OPTION.
CLICK HERE TO READ THE TERMS AND CONDITIONS.

By clicking the “ACCEPT” button below, you agree that: “This electronic contract
contains my electronic signature, which I have executed with the intent to sign
this Agreement.”

For Employees in Israel: By clicking your acceptance of this electronic contract,
you agree to all the provisions of this electronic contract and the Declaration of
Employee as set forth below:

“This electronic contract contains my electronic signature, which I have executed
with the intent to sign this Agreement. Further, I have read and accept the terms
and conditions of the Trust Deed executed between the Company and the Plan Trustee
under Section 102 of the Israeli Income Tax ordinance [New Version], 1961
(“Section 102”). I declare that I am familiar with the provisions of Section 102
and the Capital Gains Route under Section 102. I undertake not to sell or
transfer from the Trustee any Shares or any rights issued in respect of such
Shares prior to the lapse of the requisite period under the Capital Gains Route of
Section 102 unless I pay all taxes, which may arise in connection with such sale
and/or transfer.”

Upon receipt of the Shares issued upon exercise of this Grant, you also agree to
the following Letter of Authorization:

“I authorize and direct UBS Financial Services Inc. (“UBS”) to transfer to Tamir

 

 

Fishman (the “Section 102 Trustee”), or its designee, as soon as practicable after
settlement all net proceeds of cash or shares resulting from any transactions
involving Stock Options pursuant to the following bank wire and depository trust
company instructions for such transfers to the Section 102 Trustee:

Bank Wire Instructions:

	 	 	 
	Bank Name

	 	[WIRE INSTRUCTIONS INFORMATION]
	Branch

	 	[WIRE INSTRUCTIONS INFORMATION]
	Account Name

	 	[WIRE INSTRUCTIONS INFORMATION]
	Account Number

	 	[WIRE INSTRUCTIONS INFORMATION]
	SWIFT

	 	[WIRE INSTRUCTIONS INFORMATION]
	Bank Address

	 	[WIRE INSTRUCTIONS INFORMATION]

Depository Trust Company Instructions:

	 	 	 
	Bank Name

	 	[WIRE INSTRUCTIONS INFORMATION]
	DTC Number

	 	[WIRE INSTRUCTIONS INFORMATION]
	Account Name

	 	[WIRE INSTRUCTIONS INFORMATION]
	Account Number

	 	[WIRE INSTRUCTIONS INFORMATION]
	F/F/C

	 	[WIRE INSTRUCTIONS INFORMATION]
	Bank Address

	 	[WIRE INSTRUCTIONS INFORMATION]

I further authorize UBS to share information about me and about transactions in my
account with Applied Materials, Inc., its subsidiaries and the Section 102 Trustee
as may be reasonably necessary for Applied Materials, Inc., its subsidiaries and
the Section 102 Trustee to meet tax withholding and reporting obligations and
otherwise to administer the trust agreement(s) between Applied Materials, Inc.,
and the Section 102 Trustee.

I authorize Applied Materials, Inc., to provide a copy of this Letter of
Authorization to UBS and the Section 102 Trustee. This Letter of Authorization
supersedes any earlier Letter of Authorization that I have provided to UBS
concerning the transfer of proceeds.”

[VIEW_ACCEPT_STATEMENT]

Please be sure to print and retain a copy of your electronically signed Agreement (although the electronic
version will be available for you to access at any time). You may obtain a paper copy at any time and at the
Company’s expense by requesting one from Stock Programs (see Paragraph 13 of the Terms and Conditions). If you
prefer not to electronically sign this Agreement, you may accept this Agreement by signing a paper copy of the
Agreement and delivering it to Stock Programs.

For Employees in Israel: If you prefer not to electronically sign this Agreement, or do not elect to receive
preferential Section 102 capital gains tax treatment, please see your local Human Resources representative to
obtain a paper copy of this Agreement and indicate your acceptance of the Agreement and acceptance or rejection
of Section 102’s provisions. Note: Failure to timely accept Section 102’s provisions will automatically
result in a rejection of such preferential tax treatment. Please see your Human Resources representative for
details.

 

 

TERMS AND CONDITIONS OF

NONQUALIFIED STOCK OPTION GRANT

1. Vesting Schedule. As of the date of this Agreement, this option is scheduled to become
exercisable (vest) as to the number of shares, and on the dates shown, in accordance with the
vesting schedule set forth on the UBS One Source website (click on the specific grant under the
tab labeled “Grants/Awards/Units”). In all cases, on any such scheduled vesting date, vesting
actually will occur only if the Employee has been continuously employed by the Company or an
Affiliate from the Grant Date until the scheduled vesting date (except to the limited extent
provided in Paragraphs 3 and 5).

2. Modifications to Vesting Schedule. In the event that the Employee takes a personal
leave of absence (“PLOA”), the shares subject to this option that are scheduled to become
exercisable shall be modified as follows:

          (a) if the duration of the Employee’s PLOA is six (6) months or less, the vesting schedule set
forth on the UBS One Source website (click on the specific grant under the tab labeled
“Grants/Awards/Units”) shall not be affected by the Employee’s PLOA.

          (b) if the duration of the Employee’s PLOA is greater than six (6) months but not more than
twelve (12) months, the scheduled exercisability of any shares subject to this option that are not
then exercisable shall be deferred for a period of time equal to the duration of the Employee’s
PLOA less six (6) months unless otherwise recommended by the Company’s VP of HR.

          (c) if the duration of the Employee’s PLOA is greater than twelve (12) months, any shares
subject to this option that are not then exercisable immediately will terminate unless otherwise
recommended by the Company’s VP of HR and approved by the Company’s Chief Executive Officer (the
“CEO”).

          (d) Example 1. Employee is scheduled to vest in shares on January 1, 2007. On May 1, 2006,
Employee begins a 6-month PLOA. Employee’s shares still will be scheduled to vest on January 1,
2007.

          (e) Example 2. Employee is scheduled to vest in shares on January 1, 2007. On May 1, 2006,
Employee begins a 9-month PLOA. Employee’s shares subject to this option that are scheduled to
become exercisable after November 2, 2006 will be modified (this is the date on which the
Employee’s PLOA exceeds 6 months). Employee’s shares now will be scheduled to vest on April 1,
2007 (3 months after the originally scheduled date).

          (f) Example 3. Employee is scheduled to vest in shares on January 1, 2007. On May 1, 2006,
Employee begins a 13-month PLOA. Employee’s shares will terminate on May 2, 2007 unless otherwise
recommended by the Company’s VP of HR and approved by the CEO.

     In general, a “personal leave of absence” does not include any legally required leave of
absence. The duration of the Employee’s PLOA will be determined over a rolling twelve (12) month
measurement period. Shares subject to this option that are scheduled to vest during the first six
(6) months of the Employee’s PLOA will continue to vest as scheduled. However, shares subject to
this option that are scheduled to vest after the first six (6) months of the Employee’s PLOA will
be deferred or terminated depending on the length of the Employee’s PLOA. The Employee’s right to
exercise all shares subject to this option that remain unexercisable shall be modified as soon as
the duration of the Employee’s PLOA exceeds six (6) months.

 

 

3. Additional Vesting upon Retirement of Employee. In the event that the Employee is age
sixty (60) or over and completes at least ten (10) Years of Service and then incurs a Termination
of Service due to Retirement, the right to exercise all or a portion of any shares subject to this
option that remain unexercisable immediately prior to such Retirement shall vest on the date on
which the Retirement occurs as follows:

          (a) if the Employee has less than fifteen (15) Years of Service as of the date of his or her
Retirement, fifty percent (50%) of the shares that otherwise would have vested during the twelve
(12) months immediately following the Retirement (had the Employee remained an Employee throughout
such twelve (12) month period) shall vest on the Retirement date;

          (b) if the Employee has at least fifteen (15) (but less than twenty (20)) Years of Service as
of the date of the Retirement, one hundred percent (100%) of the shares that otherwise would have
vested during the twelve (12) months immediately following the Retirement (had the Employee
remained an Employee throughout such twelve (12) month period) shall vest on the Retirement date;

          (c) if the Employee has at least twenty (20) (but less than twenty-five (25)) Years of Service
as of the date of the Retirement, (i) one hundred percent (100%) of the shares that otherwise would
have vested during the twelve (12) months immediately following the Retirement (had the Employee
remained an Employee throughout such twelve (12) month period) shall accrue on the Retirement date,
and (ii) fifty percent (50%) of the shares that otherwise would have vested during the second
twelve (12) months following the Retirement (had the Employee remained an Employee throughout such
second twelve (12) month period) shall vest on the Retirement date; and

          (d) if the Employee has at least twenty-five (25) Years of Service as of the date of the
Retirement,  one hundred percent (100%) of the shares that otherwise would have vested during the
twenty-four (24) months immediately following the Retirement (had the Employee remained an Employee
throughout such twenty-four (24) month period) shall vest on the Retirement date.

     “Retirement” and “Years of Service” are defined in the Plan. In general, “Retirement” means
a Termination of Service by an Employee after he or she is at least age sixty (60) and has
completed at least ten (10) Years of Service, and for purposes of this Agreement also means a
Termination of Service by an Employee on or after the date he or she turns age sixty-five (65).
In general, “Years of Service” means full years of employment since the Employee’s last hire date
with the Company or an Affiliate (but giving credit for prior service under the non-401(k) Plan
principles of the Company’s U.S. Human Resources Policy No. 2-06, or any successor thereto). In
the event that any applicable law limits the Company’s ability to provide additional vesting upon
the Employee’s retirement, this Paragraph 3 shall be limited to the extent required to comply with
applicable law. Notwithstanding any contrary provision of this Agreement, if the Employee is
subject to Hong Kong’s ORSO provisions, this Paragraph 3 shall not apply to this option.

4. Termination of Option. In the event of the Employee’s Termination of Service for any
reason other than Retirement, Disability or death, the Employee may, within thirty (30) days after
the date of the Termination, or prior to the Expiration Date, whichever shall first occur,
exercise any vested but unexercised portion of this option. However, in the event the date that
is thirty (30) days after the date of the Termination of Service is not a Nasdaq trading day, the
Employee may exercise the vested but unexercised portion of this option only until the Nasdaq
trading day immediately preceding such date or prior to the Expiration Date, whichever shall first
occur. In the event of the Employee’s Termination of Service due to Retirement (or after
attaining age 65), the Employee may, within one (1) year after the date of such Termination, or
prior to the Expiration Date, whichever shall first occur, exercise any vested but unexercised
portion of this option. However, in the event the date that is one (1) year after the date of the
Termination of

 

 

Service due to Retirement is not a Nasdaq trading day, the Employee may exercise the vested but
unexercised portion of this option only until the Nasdaq trading day immediately preceding such
date or prior to the Expiration Date, whichever shall first occur. In the event of the Employee’s
Termination of Service due to Disability, the Employee may, within six (6) months after the date
of such Termination, or prior to the Expiration Date, whichever shall first occur, exercise any
vested but unexercised portion of this option. However, in the event the date that is six (6)
months after the date of the Termination of Service due to Disability is not a Nasdaq trading day,
the Employee may exercise the vested but unexercised portion of this option only until the Nasdaq
trading day immediately preceding such date or prior to the Expiration Date, whichever shall first
occur. Upon the Employee’s Termination of Service, any unvested portion of this option (after
applying the rules of Paragraphs 3 and 5) shall immediately terminate. For purposes of this
Agreement, “Disability” means a permanent and total disability that would qualify the Employee for
benefits under the Company’s long-term disability benefit plan, as amended from time to time.

5. Death of Employee. In the event that the Employee incurs a Termination of Service due
to his or her death, the right to exercise one hundred percent (100%) of the shares subject to
this option shall vest on the date of the Employee’s death. In the event that the Employee incurs
a Termination of Service due to his or her death or in the event the Employee dies after incurring
a Termination of Service but before any vested portion of this option terminates in accordance
with Paragraph 4 above, the administrator or executor of the Employee’s estate, may, within one
(1) year after the date of death, exercise any vested but unexercised portion of this option.
However, in the event the date that is one (1) year after the date of a death described in the
preceding sentence is not a Nasdaq trading day, the administrator or executor of the Employee’s
estate may exercise the vested but unexercised portion of this option only until the Nasdaq
trading day immediately preceding such date. Notwithstanding any contrary provision of this
Agreement, if the Employee is a resident of France and the Employee incurs a Termination of
Service due to his or her death or in the event the Employee dies after incurring a Termination of
Service but before any vested portion of this option terminates in accordance with Paragraph 4
above, the administrator or executor of the Employee’s estate, may, within six (6) months after
the date of death, exercise any unexercised portion of this option; however, if the date that is
six (6) months after the date of such a death is not a Nasdaq trading day, the administrator or
executor of the Employee’s estate may exercise the vested but unexercised portion of this option
only until the Nasdaq trading day immediately preceding such date. Any transferee under this
Paragraph 5 must furnish the Company in such form or manner as the Company may designate
(a) written notice of his or her status as a transferee, (b) evidence satisfactory to the Company
to establish the validity of the transfer of this option and compliance with any applicable law
pertaining to the transfer, and (c) written acceptance of the terms and conditions of this option
as set forth in this Agreement. In the event that any applicable law limits the Company’s ability
to accelerate the vesting of this option or to extend the exercise period of this option, this
Paragraph 5 shall be limited to the extent required to comply with applicable law. Notwithstanding
any contrary provision of this Agreement, if the Employee is subject to Hong Kong’s ORSO
provisions, the first sentence of this Paragraph 5 (relating to accelerated vesting upon death)
shall not apply to this option.

6. Persons Eligible to Exercise Option. Except as provided in Paragraph 5 above or as
otherwise determined by the Committee in its discretion, this option shall be exercisable during
the Employee’s lifetime only by the Employee.

7. Option is Not Transferable. Except as provided in Paragraph 5 above, this option and
the rights and privileges conferred hereby shall not be transferred, assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to
sale under execution, attachment or similar process. Upon any attempt to transfer, assign,
pledge, hypothecate or otherwise dispose of this option, or of any right or privilege conferred

 

 

hereby, or upon any attempted sale under any execution, attachment or similar process, this option
and the rights and privileges conferred hereby immediately shall become null and void.

8. Exercise of Option. This option may be exercised by the person then entitled to do so
as to any shares which may then be purchased by (a) giving notice in such form or manner as the
Company may designate, (b) providing full payment of the Exercise Price (and the amount of any
income tax the Company determines is required to be withheld by reason of the exercise of this
option or as is otherwise required under Paragraph 11 below), and (c) giving satisfactory
assurances in the form or manner requested by the Company that the shares to be purchased upon the
exercise of this option are being purchased for investment and not with a view to the distribution
thereof. Exercise of this option will be permitted only in the form and manner specified by the
Company’s Stock Programs department in Santa Clara, CA (or such successor as the Company may later
designate) from time to time. This option may be exercised only on Nasdaq trading days. However,
if Nasdaq is scheduled to be open for trading on a particular day but does not so open or closes
substantially early due to an unforeseen event (for example, a natural or man-made catastrophic
event) and that day otherwise would be the last day this option is exercisable, the option shall
remain exercisable through the next Nasdaq trading day. Whether a closure is due to an unforeseen
event shall be determined by the Committee or its designee. If the Employee receives a hardship
withdrawal from his or her account (if any) under the Company’s Employee Savings and Retirement
Plan (the “401(k) Plan”) for U.S. employees, this option may not be exercised during the six (6)
month period following the hardship withdrawal (unless the Company determines that exercise would
not jeopardize the tax-qualification of the 401(k) Plan).

9. Cashless Exercise Required. If the Company determines that a cashless exercise of this
option is necessary or advisable, the shares subject to this option shall be sold immediately upon
exercise and the Employee shall receive the proceeds from the sale, less the Exercise Price, and
any applicable fees and taxes or other required withholding.

10. Conditions to Exercise. Except as provided in Paragraph 9 above or as otherwise
required as a matter of law, the Exercise Price for this option may be made in one (1) (or a
combination of two (2) or more) of the following forms:

          (a) Personal check, a cashier’s check or a money order.

          (b) Irrevocable directions to a securities broker approved by the Company to sell all or part
of the option shares and to deliver to the Company from the sale proceeds an amount sufficient to
pay the Exercise Price and any required tax-related items (as defined below). (The balance of the
sale proceeds, if any, will be delivered to Employee.)

          (c) Irrevocable directions to a securities broker or lender approved by the Company to pledge
option shares as security for a loan and to deliver to the Company from the loan proceeds an amount
sufficient to pay the Exercise Price and any required tax-related items (as defined below).

11. Tax Withholding and Payment Obligations. The Company will assess its requirements
regarding tax, social insurance and any other payroll tax withholding and reporting in connection
with this option, including the grant, vesting or exercise of this option or sale of shares
acquired pursuant to the exercise of this option, as well as the Employee’s and, to the extent
required by the Company (or the employing Affiliate), the Company’s (or the employing Affiliate’s)
fringe benefit tax liability, if any, associated with the grant, vesting, or sale of the option
and the Shares issued thereunder, and all other taxes or social insurance liabilities with respect
to which the Employee has agreed to bear responsibility (collectively, the “Tax Obligations”).
These Tax Obligations may change from time to time as laws or interpretations change. Regardless
of the Company’s actions in this regard, the Employee hereby acknowledges and agrees that the

 

 

ultimate liability for any and all Tax Obligations is and remains his or her responsibility and
liability and that the Company (a) makes no representations or undertaking regarding treatment of
any tax-related items in connection with any aspect of this option grant, including the grant,
vesting or exercise of this option and the subsequent sale of shares acquired pursuant to the
exercise of this option; and (b) does not commit to structure the terms of the grant or any aspect
of this option to reduce or eliminate the Employee’s liability regarding Tax Obligations. The
Employee agrees as a condition of the grant of this option to make arrangements satisfactory to
the Company to enable it to satisfy all withholding or remitting requirements related to any and
all Tax Obligations. The Employee authorizes the Company and/or an Affiliate to withhold all
applicable Tax Obligations from the Employee’s wages. Furthermore, the Employee agrees to pay the
Company and/or an Affiliate any amount of Tax Obligations the Company and/or an Affiliate may be
required to withhold or with respect to which the Employee has agreed to bear as a result of the
Employee’s participation in the Plan that cannot be satisfied by deduction from the Employee’s
wages or other cash compensation paid to the Employee by the Company and/or an Affiliate. The
Employee acknowledges that he or she may not exercise this option unless the Tax Obligations of
the Company and/or any Affiliate are satisfied. Further, Employee shall be bound by any additional
withholding requirements included in the Notice of Grant of this Agreement.

12. Suspension of Exercisability. If at any time the Company shall determine, in its
discretion, that the listing, registration or qualification of the shares upon any securities
exchange or under any applicable law, or the consent or approval of any governmental regulatory
authority, is necessary or desirable as a condition of the purchase of shares hereunder, this
option may not be exercised, in whole or in part, unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Company. The Company shall make reasonable efforts to meet the requirements of
any applicable law or securities exchange and to obtain any required consent or approval of any
governmental authority.

13. Address for Notices. Any notice to be given to the Company under the terms of this
Agreement shall be addressed to the Company, in care of Stock Programs, at Applied Materials,
Inc., 2881 Scott Blvd., M/S 2023, P.O. Box 58039, Santa Clara, CA 95050, U.S.A. or at such other
address as the Company may hereafter designate in writing.

14. No Rights of Stockholder. Neither the Employee (nor any transferee) shall be or have
any of the rights or privileges of a stockholder of the Company in respect of any of the shares
issuable pursuant to the exercise of this option, unless and until certificates representing such
shares shall have been issued, (which may be in book entry form) recorded on the records of the
Company or its transfer agents or registrars, and delivered to the Employee (or transferee).
Nothing in the Plan or this option shall create an obligation on the part of the Company to
repurchase any shares purchased hereunder.

15. No Effect on Employment. The Employee’s employment with the Company and its
Affiliates is on an at-will basis only, subject to the provisions of applicable law. Accordingly,
the terms of the Employee’s employment with the Company and its Affiliates shall be determined
from time to time by the Company or the Affiliate employing the Employee (as the case may be), and
the Company or the Affiliate shall have the right, which is hereby expressly reserved, to
terminate or change the terms of the employment of the Employee at any time for any reason
whatsoever, with or without good cause (subject to the provisions of applicable law).

16. Plan Governs. This Agreement is subject to all terms and provisions of the Plan. In
the event of a conflict between one or more provisions of this Agreement and one or more
provisions of the Plan, the provisions of the Plan shall govern. Terms used and not defined in
this Agreement shall have the meaning set forth in the Plan. This option is not an incentive
stock option as defined in Section 422 of the U.S. Internal Revenue Code. The Company may, in its
discretion; issue newly issued shares or treasury shares pursuant to this option.

 

 

17. Maximum Term of Option. Except as provided in Paragraph 5 above, this option is not
exercisable after the Expiration Date.

18. Binding Agreement. Subject to the limitation on the transferability of this option
contained herein, this Agreement shall be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto.

19. Committee Authority. The Committee shall have the power to interpret the Plan and
this Agreement and to adopt such rules for the administration, interpretation and application of
the Plan as are consistent therewith and to interpret or revoke any such rules. All actions taken
and all interpretations and determinations made by the Committee in good faith shall be final and
binding upon the Employee, the Company and all other interested persons. The Committee shall not
be personally liable for any action, determination or interpretation made in good faith with
respect to the Plan or this Agreement.

20. Captions. Captions provided herein are for convenience only and are not to serve as a
basis for interpretation or construction of this Agreement.

21. Agreement Severable. In the event that any provision in this Agreement shall be held
invalid or unenforceable, such provision shall be severable from, and such invalidity or
unenforceability shall not be construed to have any effect on, the remaining provisions of this
Agreement.

22. Modifications to the Agreement. This Agreement constitutes the entire understanding
of the parties on the subjects covered. The Employee expressly warrants that he or she is not
accepting this Agreement in reliance on any promises, representations, or inducements other than
those contained herein. Modifications to this Agreement or the Plan can be made only in an
express written contract executed by a duly authorized officer of the Company.

23. Amendment, Suspension, Termination. By accepting this option, the Employee expressly
warrants that he or she has received an option to purchase stock under the Plan, and has received,
read and understood a description of the Plan. The Employee understands that the Plan is
discretionary in nature and may be modified, suspended or terminated by the Company at any time.

24. Labor Law. By accepting this option, the Employee acknowledges that: (a) the grant
of this option is a one-time benefit which does not create any contractual or other right to
receive future grants of options, or benefits in lieu of options; (b) all determinations with
respect to any future grants, including, but not limited to, the times when the stock options
shall be granted, the number of shares subject to each stock option, the Exercise Price, and the
time or times when each stock option shall be exercisable, will be at the sole discretion of the
Company; (c) the Employee’s participation in the Plan is voluntary; (d) the value of this option
is an extraordinary item of compensation which is outside the scope of the Employee’s employment
contract, if any; (e) this option is not part of the Employee’s normal or expected compensation
for purposes of calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar payments; (f) the vesting
of this option ceases upon termination of employment for any reason except as may otherwise be
explicitly provided in the Plan or this Agreement; (g) the future value of the underlying shares
is unknown and cannot be predicted with certainty; (h) if the underlying shares do not increase in
value, this option will have no value; (i) this option has been granted to the Employee in the
Employee’s status as an employee of the Company or its Affiliates; (j) any claims resulting from
this option shall be enforceable, if at all, against the Company; and (k) there shall be no
additional obligations for any Affiliate employing the Employee as a result of this option.

 

 

25. Disclosure of Employee Information. By accepting this option, the Employee consents
to the collection, use and transfer of personal data as described in this paragraph. The Employee
understands that the Company and its Affiliates hold certain personal information about him or
her, including his or her name, home address and telephone number, date of birth, social security
or identity number, salary, nationality, job title, any shares of stock or directorships held in
the Company, details of all stock options or any other entitlement to shares of stock awarded,
canceled, exercised, vested, unvested or outstanding in his or her favor, for the purpose of
managing and administering the Plan (“Data”).

The Employee further understands that the Company and/or its Affiliates will transfer Data amongst
themselves as necessary for the purpose of implementation, administration and management of his or
her participation in the Plan, and that the Company and/or any of its Affiliates may each further
transfer Data to any third parties assisting the Company in the implementation, administration and
management of the Plan. The Employee understands that these recipients may be located in the
European Economic Area, or elsewhere, such as in the U.S. or Asia.

The Employee authorizes the Company to receive, possess, use, retain and transfer the Data in
electronic or other form, for the purposes of implementing, administering and managing his or her
participation in the Plan, including any requisite transfer to a broker or other third party with
whom he or she may elect to deposit any shares of stock acquired upon exercise of this option of
such Data as may be required for the administration of the Plan and/or the subsequent holding of
shares of stock on his or her behalf. The Employee understands that he or she may, at any time,
view the Data, require any necessary amendments to the Data or withdraw the consent herein in
writing by contacting the Human Resources department and/or the Stock Programs Administrator for
the Company and/or its applicable Affiliates.

26. Notice of Governing Law. This option shall be governed by, and construed in
accordance with, the laws of the State of California in the U.S.A. without regard to principles of
conflict of laws.exv10w53

 

Exhibit 10.53

APPLIED MATERIALS, INC.

EMPLOYEES’ STOCK PURCHASE PLAN

(as amended and restated on September 11, 2007)

SECTION 1

PURPOSE

          Applied Materials, Inc. having established the Applied Materials, Inc. Employees’ Stock
Purchase Plan (the “Plan”), in order to provide eligible employees of the Company with the
opportunity to purchase Common Stock through payroll deductions or, if payroll deductions are not
permitted under local laws, through other means as specified by the Committee, hereby amends and
restates the Plan effective as of September 11, 2007 (the “Effective Date”). The Plan is intended
to qualify as an employee stock purchase plan under Section 423(b) of the Code, although the
Company makes no undertaking or representation to maintain such qualification.

SECTION 2

DEFINITIONS

          2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a
specific Section of the 1934 Act or regulation thereunder shall include such Section or regulation,
any valid regulation promulgated under such Section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such Section or regulation.

          2.2 “Board” means the Board of Directors of the Company.

          2.3 “Code” means the Internal Revenue Code of 1986, as amended. Reference to a
specific Section of the Code or regulation thereunder shall include such Section or regulation, any
valid regulation promulgated under such Section, and any comparable provision of any future
legislation or regulation amending, supplementing or superseding such Section or regulation.

          2.4 “Committee” shall mean the committee appointed by the Board to administer the
Plan. Any member of the Committee may resign at any time by notice in writing mailed or delivered
to the Secretary of the Company. As of the Effective Date of the Plan, the Plan shall be
administered by the Human Resources and Compensation Committee of the Board.

          2.5 “Common Stock” means the common stock of the Company, $0.01 par value per share.

          2.6 “Company” means Applied Materials, Inc., a Delaware corporation.

          2.7 “Compensation” means a Participant’s base wages, excluding any overtime, bonuses,
allowances or shift differential. The Committee, in its discretion, may, on a uniform and
nondiscriminatory basis, establish a different definition of Compensation prior to an Enrollment
Date for all options to be granted on such Enrollment Date.

          2.8 “Eligible Employee” means every Employee of an Employer, except (a) any Employee
who immediately after the grant of an option under the Plan, would own stock and/or hold
outstanding options to purchase stock possessing five percent (5%) or more of the total combined
voting power or value of all classes of stock of the Company or of any Subsidiary of the Company
(including stock attributed to such Employee pursuant to Section 424(d) of the

1

 

Code), or (b) as provided in this Section 2.8. The Committee, in its discretion, from time to time
may, prior to an Enrollment Date for all options to be granted on such Enrollment Date,
determine (on a uniform and nondiscriminatory basis) that an Employee shall not be an Eligible
Employee if he or she: (1) has not completed the required length of service with the Company, if
any, as such length may be determined by the Committee in its discretion (such length of required
service not to exceed two (2) years), (2) customarily works not more than twenty (20) hours per
week (or such lesser period of time as may be determined by the Committee in its discretion), (3)
customarily works not more than five (5) months per calendar year (or such lesser period of time as
may be determined by the Committee in its discretion), (4) is an officer or other manager, or (5)
is a highly compensated employee under Section 414(q) of the Code. An Employee who otherwise is an
Eligible Employee shall be treated as continuing to be such while the Employee is on sick leave or
other leave of absence approved in writing by the Employer, except that if the period of leave
exceeds ninety (90) days and the Employee’s right to reemployment is not guaranteed by statute or
contract, he or she shall cease to be an Eligible Employee on the 91st day of such
leave. Until and unless determined otherwise by the Committee, Eligible Employees shall exclude
each Employee (other than as excluded by subsection (a) of this Section 2.8) of an Employer who is
customarily employed by the Company and/or a Subsidiary to work less than or equal to twenty (20)
hours per week or five (5) months per calendar year.

          2.9 “Employee” means an individual who is a common-law employee of any Employer,
whether such employee is so employed at the time the Plan is adopted or becomes so employed
subsequent to the adoption of the Plan.

          2.10 “Employer” or “Employers” means any one or all of the Company and those
Subsidiaries which, with the consent of the Board or the Committee, have adopted the Plan or have
been designated by the Board or the Committee in writing as an Employer for purposes of
participation in the Plan. With respect to a particular Participant, Employer means the Company or
Subsidiary, as the case may be, that directly employs the Participant.

          2.11 “Enrollment Date” means such dates as may be determined by the Committee, in its
discretion and on a uniform and nondiscriminatory basis, from time to time.

          2.12 “Grant Date” means any date on which a Participant is granted an option under the
Plan.

          2.13 “Participant” means an Eligible Employee who (a) has become a Participant in the
Plan pursuant to Section 4.1 and (b) has not ceased to be a Participant pursuant to Section 8 or
Section 9.

          2.14 “Plan” means the Applied Materials, Inc. Employees’ Stock Purchase Plan, as set
forth in this instrument and as hereafter amended from time to time.

          2.15 “Purchase Date” means such dates on which each outstanding option granted under
the Plan shall be exercised (except in such instance in which the Plan has been terminated), as may
be determined by the Committee, in its discretion and on a uniform and nondiscriminatory basis from
time to time prior to an Enrollment Date for all options to be granted on such Enrollment Date.

          2.16 “Purchase Period” means the period beginning on such date as may be determined by
the Committee, in its discretion and on a uniform and nondiscriminatory basis, and ending on a
Purchase Date.

2

 

          2.17 “Subsidiary” means any corporation in an unbroken chain of corporations beginning
with the Company if each of the corporations other than the last corporation in the
unbroken chain then owns 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.

SECTION 3

SHARES SUBJECT TO THE PLAN

          3.1 Number Available.  A maximum of one hundred twenty-one million, two hundred
thousand (121,200,000) shares of Common Stock shall be available for issuance pursuant to the Plan.
Shares issued under the Plan may be newly issued shares or treasury shares.

          3.2 Adjustments.  In the event of any reorganization, recapitalization, stock split,
reverse stock split, stock dividend, spin off, combination of shares, merger, consolidation,
offering of rights or other similar change in the capital structure of the Company, the Committee
shall proportionately adjust the number, kind and purchase price of the shares available for
purchase under the Plan, the per person share number limits on purchases and the purchase price and
number of shares subject to any option under the Plan which has not yet been exercised.

SECTION 4

ENROLLMENT

          4.1 Participation.  Each Eligible Employee may elect to become a Participant by
enrolling or re-enrolling in the Plan effective as of any Enrollment Date. In order to enroll, an
Eligible Employee must complete, sign and submit to the Company an enrollment form in such form,
manner and by such deadline as may be specified by the Committee from time to time, in its
discretion and on a nondiscriminatory basis, and which may be in electronic form. Any Participant
whose option expires and who has not withdrawn from the Plan shall be automatically re-enrolled in
the Plan on the Enrollment Date immediately following the Purchase Date on which his or her option
expires.

          4.2 Payroll Withholding and Contribution.  On his or her enrollment form, each
Participant must elect to make Plan contributions via payroll withholding from his or her
Compensation or, if payroll withholding is not permitted under local laws, via such other means as
specified by the Committee. Pursuant to such procedures as the Committee may specify from time to
time (which may be in electronic form), a Participant may elect to have withholding equal to, or
otherwise contribute, a whole percentage from one percent (1%) to ten percent (10%) (or such
greater or lesser percentage or dollar amount that the Committee may establish from time to time,
in its discretion and on a uniform and nondiscriminatory basis, for all options to be granted on
any Enrollment Date). Unless and until the Committee determines otherwise, no Participant may
contribute more than $6,500 during any one Purchase Period. If permitted by the Committee, a
Participant instead may elect to have a specific amount withheld or to contribute a specific
amount, in dollars or in the applicable local currency, subject to such uniform and
nondiscriminatory rules as the Committee in its discretion may specify. A Participant may elect to
increase or decrease his or her rate of payroll withholding or contribution by submitting an
election (which may be in electronic form) in accordance with, and if and to the extent permitted
by, procedures established by the Committee from time to time, which may, if permitted by the
Committee, include a decrease to zero percent (0%); provided, however, that unless determined
otherwise by the Committee, a decrease to zero percent (0%) shall be deemed a withdrawal from the
Plan. A Participant may stop his or her payroll withholding or contribution by submitting an
election in accordance with and to the extent permitted by procedures as may be established by the
Committee from time to time. In order to be effective as of a specific date, an enrollment
election must be received by the

3

 

Company no later than the deadline specified by the Committee, in
its discretion and on a nondiscriminatory basis, from time to time. Any Participant who is
automatically re-enrolled in the Plan shall be deemed to have elected to continue his or her
payroll withholding or contributions at the percentage last elected by the Participant.
Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the
Code and Section 5.3 of the Plan, the Company may automatically decrease a Participant’s payroll
deductions to zero percent (0%) at any time during an option period. Under such circumstances,
payroll deductions shall recommence at the rate provided in such Participant’s enrollment form at
the beginning of the first Purchase Period which is scheduled to end in the following calendar
year, unless terminated by the Participant as provided in Section 7 of the Plan.

SECTION 5

OPTIONS TO PURCHASE COMMON STOCK

          5.1 Grant of Option.  On each Enrollment Date on which the Participant enrolls or
re-enrolls in the Plan, he or she shall be granted an option to purchase shares of Common Stock.

          5.2 Duration of Option.  Each option granted under the Plan shall expire on the
earliest to occur of (a) the completion of the purchase of shares on the last Purchase Date
occurring within 27 months of the Grant Date of such option, (b) such shorter option period as may
be established by the Committee from time to time, in its discretion and on a uniform and
nondiscriminatory basis, prior to an Enrollment Date for all options to be granted on such
Enrollment Date, or (c) the date on which the Participant ceases to be such for any reason. Until
otherwise determined by the Committee for all options to be granted on an Enrollment Date, the
period referred to in clause (b) in the preceding sentence shall mean the period from the
applicable Enrollment Date through the last business day prior to the Enrollment Date that is
approximately twenty-four (24) months later.

          5.3 Number of Shares Subject to Option.  The maximum number of shares available for
purchase by each Participant under the option or on any given Purchase Date shall be established by
the Committee from time to time prior to an Enrollment Date for all options to be granted on such
Enrollment Date, subject to this Section 5.3. Unless and until otherwise determined by the
Committee, a Participant may not purchase more than 1,000 shares (subject o adjustment in
accordance with Section 3.2) on any given Purchase Date. Notwithstanding any contrary provision of
the Plan, to the extent required under Section 423(b) of the Code, an option (taken together with
all other options then outstanding under this Plan and under all other similar employee stock
purchase plans of the Employers) shall not give the Participant the right to purchase shares at a
rate which accrues in excess of $25,000 of fair market value at the applicable Grant Dates of such
shares in any calendar year during which such Participant is enrolled in the Plan at any time.

          5.4 Other Terms and Conditions.  Each option shall be subject to the following
additional terms and conditions:

     (a) payment for shares purchased under the option shall be made only through payroll
withholding under Section 4.2, unless payroll withholding is not permitted under local laws
as determined by the Committee, in which case the Participant may contribute by such other
means as specified by the Committee;

     (b) purchase of shares upon exercise of the option shall be accomplished only in
accordance with Section 6.1;

4

 

     (c) the price per share under the option shall be determined as provided in Section
6.1, subject to adjustment pursuant to Section 3.2; and

     (d) the option in all respects shall be subject to such other terms and conditions,
applied on a uniform and nondiscriminatory basis, as the Committee shall determine from time
to time in its discretion.

SECTION 6

PURCHASE OF SHARES

          6.1 Exercise of Option.  Subject to Section 6.2 and the limits established under
Section 5.3, on each Purchase Date, the funds then credited to each Participant’s account shall be
used to purchase whole shares of Common Stock. Any cash remaining after whole shares of Common
Stock have been purchased or that exceed the $25,000 cap described in Section 5.3 above, shall be
refunded to the Participant without interest (except as otherwise required under local laws). The
price per Share of the Shares purchased under any option granted under the Plan shall be determined
by the Committee from time to time, in its discretion and on a uniform and nondiscriminatory basis,
for all options to be granted on an Enrollment Date. However, in no event shall the price be less
than eighty-five percent (85%) of the lower of:

     (a) the closing price per Share on the Grant Date for such option on the Nasdaq Global
Select Market; or

     (b) the closing price per Share on the Purchase Date on the Nasdaq Global Select
Market.

If a closing price is not available on the Grant Date or Purchase Date, then the closing price per
Share referred to in 6.1(a) and (b) above shall refer to the closing price per Share on the first
Nasdaq Global Select Market trading day immediately following the Grant Date or preceding the
Purchase Date, respectively.

          6.2 Delivery of Shares.  As directed by the Committee in its sole discretion, shares
purchased on any Purchase Date shall be delivered directly to the Participant or to a custodian or
broker, if any, designated by the Committee to hold shares for the benefit of the Participants. As
determined by the Committee from time to time, such shares shall be delivered as physical
certificates or by means of a book entry system.

          6.3 Exhaustion of Shares.  If at any time the shares available under the Plan are
over-enrolled, enrollments shall be reduced to eliminate the over-enrollment, as the Committee
determines, which determination shall be on a uniform and nondiscriminatory manner. For example,
the Committee may determine that such reduction method shall be “bottom up”, with the result that
all option exercises for one share shall be satisfied first, followed by all exercises for two
shares, and so on, until all available shares have been exhausted. Any funds that, due to
over-enrollment, cannot be applied to the purchase of whole shares shall be refunded to the
Participants without interest thereon, except as otherwise required under local laws.

          6.4 Tax Withholding.  Prior to the delivery of any shares purchased under the Plan,
the Company shall have the power and the right to deduct or withhold, or require a Participant to
remit to the Company, an amount sufficient to satisfy all tax and social insurance liability
obligations and requirements in connection with the options and shares purchased thereunder, if
any, including, without limitation, all federal, state, and local taxes (including the
Participant’s FICA obligation, if any) that are required to be withheld by the Company or the

5

 

employing Subsidiary, the Participant’s and, to the extent required by the Company (or the
employing Subsidiary), the Company’s (or the employing Subsidiary’s) fringe benefit tax liability,
if any, associated with the grant, vesting, or sale of shares and any other Company (or
employing Subsidiary) taxes the responsibility for which the Participant has agreed to bear
with respect to such shares.

SECTION 7

WITHDRAWAL

          7.1 Withdrawal.  A Participant may withdraw from the Plan by submitting a withdrawal
form to the Company in such form and manner as the Committee may specify (which may be in
electronic form). A withdrawal shall be effective only if it is received by the Company by the
deadline specified from time to time by the Committee, in its discretion and on a uniform and
nondiscriminatory basis. Unless otherwise determined by the Committee, when a withdrawal becomes
effective, the Participant’s payroll contributions shall cease and all amounts then credited to the
Participant’s account shall be distributed to him or her, without interest thereon, except as
otherwise required under local laws.

SECTION 8

CESSATION OF PARTICIPATION

          8.1 Termination of Status as Eligible Employee.  A Participant shall cease to be a
Participant immediately upon the cessation of his or her status as an Eligible Employee (for
example, because of his or her termination of employment from all Employers for any reason), except
that the Committee, in its discretion and on a uniform and nondiscriminatory basis, may permit an
individual who has ceased to be an Eligible Employee to exercise his or her option on the next
Purchase Date to the extent permitted by Code Section 423. As soon as practicable after such
cessation, the Participant’s payroll contributions shall cease and all amounts then credited to the
Participant’s account shall be distributed to him or her without interest thereon, except as
otherwise required under local laws.

SECTION 9

DESIGNATION OF BENEFICIARY

          9.1 Designation.  Each Participant may, pursuant to such uniform and nondiscriminatory
procedures as the Committee may specify in its discretion from time to time, designate one or more
Beneficiaries to receive any amounts credited to the Participant’s account at the time of his or
her death. Notwithstanding any contrary provision of this Section 9, Sections 9.1 and 9.2 shall be
operative only after, and for so long as, the Committee determines on a uniform and
nondiscriminatory basis to permit the designation of Beneficiaries.

          9.2 Changes.  A Participant may designate different Beneficiaries or may revoke a
prior Beneficiary designation at any time by delivering a new designation or revocation of a prior
designation, as applicable, in like manner. Any designation or revocation shall be effective only
if it is received by the Committee. However, when so received, the designation or revocation shall
be effective as of the date the designation or revocation is executed, whether or not the
Participant still is living, but without prejudice to the Committee on account of any payment made
before the change is recorded. The last effective designation received by the Committee shall
supersede all prior designations.

          9.3 Failed Designations.  If a Participant dies without having effectively designated
a Beneficiary, or if no Beneficiary survives the Participant, the Participant’s account shall be
payable to his or her estate.

6

 

SECTION 10

ADMINISTRATION

          10.1 Plan Administrator.  The Plan shall be administered by the Committee. The
Committee shall have the authority to control and manage the operation and administration of the
Plan.

          10.2 Actions by Committee.  Each decision of a majority of the members of the
Committee then in office shall constitute the final and binding act of the Committee. The
Committee may act with or without a meeting being called or held and shall keep minutes of all
meetings held and a record of all actions taken by written consent.

          10.3 Powers of Committee.  The Committee shall have all powers and discretion
necessary or appropriate to administer the Plan and to control its operation in accordance with its
terms, including, but not by way of limitation, the following discretionary powers:

     (a) To interpret and determine the meaning and validity of the provisions of the Plan
and the options and to determine any question arising under, or in connection with, the
administration, operation or validity of the Plan or the options;

     (b) To determine the form and manner for Participants to make elections under the Plan;

     (c) To determine any and all considerations affecting the eligibility of any Employee
to become a Participant or to remain a Participant in the Plan;

     (d) To cause an account or accounts to be maintained for each Participant and establish
rules for the crediting of contributions and/or shares to the account(s);

     (e) To determine the time or times when, and the number of shares for which, options
shall be granted;

     (f) To establish and revise an accounting method or formula for the Plan;

     (g) To designate a custodian or broker to receive shares purchased under the Plan and
to determine the manner and form in which shares are to be delivered to the designated
custodian or broker;

     (h) To determine the status and rights of Participants and their Beneficiaries or
estates;

     (i) To employ such brokers, counsel, agents and advisers, and to obtain such broker,
legal, clerical and other services, as it may deem necessary or appropriate in carrying out
the provisions of the Plan;

     (j) To establish, from time to time, rules for the performance of its powers and duties
and for the administration of the Plan;

7

 

     (k) To adopt such procedures and subplans as are necessary or appropriate to permit
participation in the Plan by employees who are foreign nationals or employed outside of the
United States; and

     (l) To delegate to any one or more of its members or to any other person including, but
not limited to, employees of any Employer, severally or jointly, the authority to perform
for and on behalf of the Committee one or more of the functions of the Committee under the
Plan.

          10.4 Decisions of Committee.  All actions, interpretations, and decisions of the
Committee shall be made in the sole discretion of the Committee and shall be conclusive and binding
on all persons, and shall be given the maximum deference permitted by law.

          10.5 Administrative Expenses.  All expenses incurred in the administration of the Plan
by the Committee, or otherwise, including legal fees and expenses, shall be paid and borne by the
Employers, except any stamp duties or transfer taxes applicable to the purchase of shares may be
charged to the account of each Participant. Any brokerage fees for the purchase of shares by a
Participant shall be paid by the Company, but fees and taxes (including brokerage fees) for the
transfer, sale or resale of shares by a Participant, or the issuance of physical share
certificates, shall be borne solely by the Participant.

          10.6 Eligibility to Participate.  No member of the Committee who is also an employee
of an Employer shall be excluded from participating in the Plan if otherwise eligible, but he or
she shall not be entitled, as a member of the Committee, to act or pass upon any matters pertaining
specifically to his or her own account under the Plan.

          10.7 Indemnification.  Each of the Employers shall, and hereby does, indemnify and
hold harmless the members of the Committee and the Board, from and against any and all losses,
claims, damages or liabilities, including attorneys’ fees and amounts paid, with the approval of
the Board or the Committee, in settlement of any claim, arising out of or resulting from the
implementation of a duty, act or decision with respect to the Plan, so long as such duty, act or
decision does not involve gross negligence or willful misconduct on the part of any such
individual.

SECTION 11

AMENDMENT, TERMINATION, AND DURATION

     11.1 Amendment, Suspension, or Termination.  The Board or the Committee, in its sole
discretion, may amend, suspend or terminate the Plan, or any part thereof, at any time and for any
reason. If the Plan is amended, suspended or terminated, the Board or the Committee, in its
discretion, may elect to terminate all outstanding options either immediately or upon completion of
the purchase of shares on the next Purchase Date (which, notwithstanding Section 2.15, may be
sooner than originally scheduled, if determined by the Board or the Committee in its discretion),
or may elect to permit options to expire in accordance with their terms (and participation to
continue through such expiration dates). If the options are terminated prior to expiration, all
amounts then credited to Participants’ accounts that have not been used to purchase shares shall be
returned to the Participants (without interest thereon, except as otherwise required under local
laws) as soon as administratively practicable. Except as provided in Section 3.2 and this Section
11 hereof, no amendment may make any change in any option theretofore granted which adversely
affects the rights of any Participant unless his or her consent is obtained. To the extent
necessary to comply with Section 423 of the Code (or any successor rule or provision or any other
applicable law, regulation or stock exchange rule), the Company shall obtain stockholder approval
of any amendment in such a manner and to such a degree as required. In addition, an amendment will
be subject to stockholder approval if the Committee or

8

 

the Board, in their sole discretion, deems such amendment to be a material amendment, except with respect to such an amendment which will
impact, in the aggregate, no more than five percent (5%) of the shares reserved for issuance under
the Plan. The following amendments shall be deemed material amendments for purposes of the
preceding sentence (i) material
increases to the benefits accrued to Participants under the Plan; (ii) increases to the total
number of securities that may be issued under the Plan; (iii) material modifications to the
requirements for participation in the Plan, and (iv) the addition of a new provision allowing the
Board or the Committee to lapse or waive restrictions at its discretion. The amendment,
suspension, or termination of the Plan shall not, without the consent of the Participant, alter or
impair any rights or obligations under any option theretofore granted to such Participant. No
option may be granted during any period of suspension or after termination of the Plan. Without
stockholder approval and without regard to whether any Participant rights may be considered to have
been “adversely affected,” the Committee shall be entitled to change the duration of an option,
limit the frequency and/or number of changes in the amount withheld during the duration of an
option, establish the exchange ratio applicable to amounts withheld in a currency other than U.S.
dollars, permit payroll withholding in excess of the amount designated by a Participant in order to
adjust for delays or mistakes in the Company’s processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant
properly correspond with amounts withheld from the Participant’s Compensation, and establish such
other limitations or procedures as the Committee determines in its sole discretion advisable which
are consistent with the Plan.

     Without regard to whether any Participant’s rights may be considered to have been “adversely
affected”, in the event the Committee determines that the ongoing operation of the Plan may result
in unfavorable financial accounting consequences, the Committee may, in its discretion and, to the
extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting
consequence including, but not limited to:

     (a) Amending the Plan to conform with the safe harbor definition under Statement of
Financial Accounting Standards 123(R), including with respect to an option issued at the
time of the amendment;

     (b) Increasing or otherwise altering the exercise price for any option including an
option issued at the time of the change in exercise price;

     (c) Reducing the maximum percentage of Compensation a Participant may elect to set
aside as payroll deductions;

     (d) Shortening the duration of any option so that the option ends on a new Purchase
Date, including an option issued at the time of the Committee action; and

     (e) Reducing the number of shares that may be purchased upon exercise of outstanding
options.

Such modifications or amendments shall not require stockholder approval or the consent of any
Participants.

          11.2 Duration of the Plan.  The Plan shall commence on the date specified herein, and
subject to Section 11.1 (regarding the Board’s and the Committee’s right to amend or terminate the
Plan), shall remain in effect thereafter.

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SECTION 12

GENERAL PROVISIONS

          12.1 Participation by Subsidiaries.  One or more Subsidiaries of the Company may
become participating Employers by adopting the Plan and obtaining approval for such
adoption from the Board or the Committee. By adopting the Plan, a Subsidiary shall be deemed
to agree to all of its terms, including, but not limited to, the provisions granting exclusive
authority (a) to the Board and the Committee to amend the Plan, and (b) to the Committee to
administer and interpret the Plan. An Employer may terminate its participation in the Plan at any
time. The liabilities incurred under the Plan to the Participants employed by each Employer shall
be solely the liabilities of that Employer, and no other Employer shall be liable for benefits
accrued by a Participant during any period when he or she was not employed by such Employer.

          12.2 Inalienability.  In no event may either a Participant, a former Participant or
his or her Beneficiary, spouse or estate sell, transfer, anticipate, assign, hypothecate, or
otherwise dispose of any right or interest under the Plan; and such rights and interests shall not
at any time be subject to the claims of creditors nor be liable to attachment, execution or other
legal process. Accordingly, for example, a Participant’s interest in the Plan is not transferable
pursuant to a domestic relations order.

          12.3 Severability.  In the event any provision of the Plan shall be held illegal or
invalid for any reason, the illegality or invalidity shall not affect the remaining parts of the
Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not
been included.

          12.4 Requirements of Law.  The granting of options and the issuance of shares shall be
subject to all applicable laws, rules, and regulations, and to such approvals by any governmental
agencies or securities exchanges as the Committee may determine are necessary or appropriate.

          12.5 Compliance with Rule 16b-3.  Any transactions under this Plan with respect to
officers, as defined in Rule 16a-1 promulgated under the 1934 Act, are intended to comply with all
applicable conditions of Rule 16b-3. To the extent any provision of the Plan or action by the
Committee fails to so comply, it shall be deemed null and void to the extent permitted by law and
deemed advisable by the Committee. Notwithstanding any contrary provision of the Plan, if the
Committee specifically determines that compliance with Rule 16b-3 no longer is required, all
references in the Plan to Rule 16b-3 shall be null and void.

          12.6 No Enlargement of Employment Rights.  Neither the establishment or maintenance of
the Plan, the granting of options, the purchase of shares, nor any action of any Employer or the
Committee, shall be held or construed to confer upon any individual any right to be continued as an
employee of the Employer nor, upon dismissal, any right or interest in any specific assets of the
Employers other than as provided in the Plan. Each Employer expressly reserves the right to
discharge any employee at any time, with or without cause.

          12.7 Apportionment of Costs and Duties.  All acts required of the Employers under the
Plan may be performed by the Company for itself and its Subsidiaries, and the costs of the Plan may
be equitably apportioned by the Committee among the Company and the other Employers. Whenever an
Employer is permitted or required under the terms of the Plan to do or perform any act, matter or
thing, it shall be done and performed by any officer or employee of the Employers who is thereunto
duly authorized by the Employers.

          12.8 Construction and Applicable Law.  The Plan is intended to qualify as an “employee
stock purchase plan” within the meaning of Section 423(b) of the Code. Any

10

 

provision of the Plan which is inconsistent with Section 423(b) of the Code shall, without further act or amendment by
the Company or the Committee, be reformed to comply with the requirements of Section 423(b). The
provisions of the Plan shall be construed, administered and enforced in accordance with such
Section and with the laws of the State of California, excluding California’s conflict of laws
provisions.

          12.9 Captions.  The captions contained in and the table of contents prefixed to the
Plan are inserted only as a matter of convenience, and in no way define, limit, enlarge or describe
the scope or intent of the Plan nor in any way shall affect the construction of any provision of
the Plan.

          12.10 Automatic Transfer to Low Price Option Period.  To the extent permitted by
applicable laws, if the fair market value of the Common Stock on any Enrollment Date is higher than
the fair market value of the Common Stock on the first day of any later Purchase Period during the
same option period, then all Participants in such option period shall be automatically withdrawn
from such option period and automatically re-enrolled in the immediately following new option
period.

11

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