Document:

Exhibit 10.1 to RC2 March 31, 2007 Form 10-Q

    Exhibit
      10.1

     

    

     

    Amendment
      to Outside Director Compensation Plan

     

    

    On
      February 21, 2007, the Board of Directors of RC2 Corporation (the
      "Company"), based upon the recommendation of the Compensation Committee,
      approved amendments to the Company's Outside Director Compensation Plan. These
      amendments to the Outside Director Compensation Plan were effective as of
      January 1, 2007. The amendments consisted of the
      following:

     

    
      	 	
              ·

            	increased the annual retainer fee from $25,000 to
              $35,000;

    
      	 	
              ·

            	
              increased
                annual committee chair fees to $16,000 for the chairman of the Audit
                Committee, $8,000 for the chairman of the Compensation Committee
                and
                $8,000 for the chairman of the Nominating and Corporate Governance
                Committee (in each case, from
                $5,000);

            

    

    

    
      	 	
              ·

            	
              provided
                that annual retainers and committee chair fees will be paid solely
                in
                cash, eliminating the ability of directors to elect payment in the
                form of
                stock options; and

            

    

     

    
      	
            	
              ·

            	
              increased
                the annual long-term incentive
                compensation fee from $20,000 to $75,000 and changed the form of
                payment
                from stock options to restricted stock, which restricted stock will
                be
                issued annually after the election of directors at the annual meeting
                of
                stockholders based on the closing price on that date of the meeting
                and
                with a three year vesting of 331⁄3% on each of the first, second and third
                anniversaries of the date of grant.2007 EQUITY INCENTIVE PLAN

     

    NVIDIA
      CORPORATION

     

    2007
      EQUITY INCENTIVE PLAN

     

    Approved
      by the Compensation Committee: April 24, 2007

    Subject
      to Approval by the Stockholders: June 21, 2007

    Termination
      Date: April 23, 2017

     

    1.  GENERAL.

     

    (a)  Successor
      and Continuation of Prior Plans.
      The Plan
      is intended as the successor to and continuation of the NVIDIA Corporation
      1998
      Equity Incentive Plan (the “1998
      Plan”),
      the
      NVIDIA Corporation 1998 Non-Employee Directors’ Stock Option Plan, the NVIDIA
      Corporation 2000 Nonstatutory Equity Incentive Plan, and the PortalPlayer,
      Inc.
      2004 Stock Incentive Plan (together, the “Prior
      Plans”).
      Following the Effective Date, no additional stock awards shall be granted under
      any of the Prior Plans and all newly granted Stock Awards shall be subject
      to
      the terms of this Plan except as follows: from the Effective Date until
      September 30, 2007 (the “Transition
      Date”)
      (during which time the Company anticipates taking such steps as are necessary
      or appropriate to permit participation in the Plan by Employees, Directors
      or
      Consultants who are foreign nationals or are employed outside the United
      States),
      the
      Company may grant stock awards subject to the terms of the 1998 Plan covering
      up
      to an aggregate of 100,000 shares of Common Stock to newly hired employees
      of
      the Company and its Affiliates who are foreign
      nationals or are employed outside the United States
      (such
      100,000 share reserve, the “Foreign
      Transition Reserve”).
      On
      the Effective Date, all of the shares remaining available for issuance under
      the
      Prior Plans (such reserve, including the Foreign Transition Reserve and shares
      subject to issuance under outstanding options and other stock awards that were
      previously granted under the Prior Plans, the “Prior
      Plan Reserve”)
      shall
      become available for issuance under the Plan; provided,
      however,
      that
      the issuance of shares upon the exercise of options or the settlement of stock
      awards granted under the Prior Plans (including the issuance of shares upon
      the
      exercise or settlement of any awards granted following the Effective Date
      subject to the terms of the 1998 Plan from the Foreign Transition Reserve)
      shall
      occur from this Plan and shall reduce the number of shares of Common Stock
      available for issuance under this Plan as provided in Section 3 below. Any
      shares of Common Stock subject to outstanding options and stock awards granted
      under the Prior Plans that expire or terminate for any reason prior to exercise
      or settlement shall become available for issuance pursuant to Stock Awards
      granted hereunder in accordance with the provisions of Section 3(b) below.
      Except as expressly set forth in this Section 1(a), all options and stock awards
      granted under the Prior Plans shall remain subject to the terms of the Prior
      Plans with respect to which they were originally granted. 

     

    (b)  Eligible
      Award Recipients.
      The
      persons eligible to receive Awards are Employees, Directors and
      Consultants.

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.  ADMINISTRATION.

     

    (a)  Administration
      by Board.
      The
      Board shall administer the Plan unless and until the Board delegates
      administration of the Plan to a Committee or Committees, as provided in Section
      2(c).

     

    (b)  Powers
      of Board.
      The
      Board shall have the power, subject to, and within the limitations of, the
      express provisions of the Plan:

     

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

     

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

     

    (iii)  To
      settle
      all controversies regarding the Plan and Awards granted under it.

     

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

     

    (v)  To
      suspend or terminate the Plan at any time. Suspension or termination of the
      Plan
      shall not impair rights and obligations under any Stock Award granted while
      the
      Plan is in effect except with the written consent of the affected
      Participant.

     

    (vi)  To
      amend
      the Plan in any respect the Board deems necessary or advisable, including,
      without limitation, relating to Incentive Stock Options and certain nonqualified
      deferred compensation under Section 409A of the Code and/or to bring the Plan
      or
      Stock Awards granted under the Plan into compliance therewith, subject to the
      limitations, if any, of applicable law. However, except as provided in Section
      9(a)
      relating
      to Capitalization Adjustments, stockholder approval shall be required for any
      amendment of the Plan that either (i) materially increases the number of shares
      of Common Stock available for issuance under the Plan, (ii) materially expands
      the class of individuals eligible to receive Awards under the Plan, (iii)
      materially increases the benefits accruing to Participants under the Plan or
      materially reduces the price at which shares of Common Stock may be issued
      or
      purchased under the Plan, (iv) materially extends the term of the Plan, or
      (v)
      expands the types of Awards available for issuance under the Plan, but only
      to
      the extent required by applicable law or listing requirements. Except as
      provided above, rights under any Award granted before amendment of the Plan
      shall not be impaired by any amendment of the Plan unless (i) the Company
      requests the consent of the affected Participant, and (ii) such Participant
      consents in writing. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (vii)  To
      submit
      any amendment to the Plan for stockholder approval, including, but not limited
      to, amendments to the Plan intended to satisfy the requirements of (i) Section
      162(m) of the Code and the regulations thereunder regarding the exclusion of
      performance-based compensation from the limit on corporate deductibility of
      compensation paid to Covered Employees, (ii) Section 422 of the Code regarding
      Incentive Stock Options, or (iii) Rule 16b-3.

     

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

     

    (ix)  Generally,
      to exercise such powers and to perform such acts as the Board deems necessary
      or
      expedient to promote the best interests of the Company and that are not in
      conflict with the provisions of the Plan or Awards.

     

    (x)  To
      adopt
      such procedures and sub-plans as are necessary or appropriate to permit
      participation in the Plan by Employees, Directors or Consultants who are foreign
      nationals or employed outside the United States.

     

    (c)  Delegation
      to Committee.

     

    (i)  General.
      The
      Board may delegate some or all of the administration of the Plan to a Committee
      or Committees. If administration of the Plan is delegated to a Committee, the
      Committee shall have, in connection with the administration of the Plan, the
      powers theretofore possessed by the Board that have been delegated to the
      Committee, including the power to delegate to a subcommittee of the Committee
      any of the administrative powers the Committee is authorized to exercise (and
      references in this Plan to the Board shall thereafter be to the Committee or
      subcommittee), subject, however, to such resolutions, not inconsistent with
      the
      provisions of the Plan, as may be adopted from time to time by the Board. The
      Board may retain the authority to concurrently administer the Plan with the
      Committee and may, at any time, revest in the Board some or all of the powers
      previously delegated.

     

    (ii)  Section
      162(m) and Rule 16b-3 Compliance.
      In the
      sole discretion of the Board, the Committee may consist solely of two or more
      Outside Directors, in accordance with Section 162(m) of the Code, and/or solely
      of two or more Non-Employee Directors, in accordance with Rule 16b-3. In
      addition, the Board or the Committee, in its sole discretion, may (A) delegate
      to a Committee who need not be Outside Directors the authority to grant Awards
      to eligible persons who are either (I) not then Covered Employees and are not
      expected to be Covered Employees at the time of recognition of income resulting
      from such Stock Award, or (II) not persons with respect to whom the Company
      wishes to comply with Section 162(m) of the Code, and/or (B) delegate to a
      Committee who need not be Non-Employee Directors the authority to grant Stock
      Awards to eligible persons who are not then subject to Section 16 of the
      Exchange Act.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  Delegation
      to Officers.
      The
      Board may delegate to one or more of the chief executive officer, the chief
      financial officer, or the general counsel of the Company the authority to do
      one
      or both of the following (i) designate Employees to be recipients of Options
      (and, to the extent permitted by applicable law, other Stock Awards) and the
      terms thereof, and (ii) determine the number of shares of Common Stock to be
      subject to such Stock Awards granted to such Employees; provided,
      however, that
      the
      Board resolutions regarding such delegation shall specify the total number
      of
      shares of Common Stock that may be subject to the Stock Awards granted by such
      chief executive officer, chief financial officer, or general counsel and that
      such chief executive officer, chief financial officer, or general counsel may
      not grant a Stock Award to himself or herself. Notwithstanding anything to
      the
      contrary in this Section 2(d),
      the
      Board may not delegate to the chief executive officer, chief financial officer,
      or general counsel the authority to determine the Fair Market Value of the
      Common Stock pursuant to Section 13(v)(iii)
      below. 

     

    (e)  Effect
      of Board’s Decision.
      All
      determinations, interpretations and constructions made by the Board in good
      faith shall not be subject to review by any person and shall be final, binding
      and conclusive on all persons.

     

    (f)  Cancellation
      and Re-Grant of Stock Awards.
      Neither
      the Board nor any Committee shall have the authority to: (i) reduce the
      exercise, strike or purchase price of any outstanding Stock Awards under the
      Plan, or (ii) cancel and re-grant any outstanding Stock Awards under the Plan
      that has the effect of reducing the exercise, strike or purchase price of any
      outstanding Stock Award under the Plan, in either case, unless the stockholders
      of the Company have approved such an action within twelve (12) months prior
      to
      such an event. 

     

    3.  SHARES
      SUBJECT TO THE PLAN.

     

    (a)  Share
      Reserve.
      Subject
      to the provisions of Section 9(a)
      relating
      to Capitalization Adjustments, the aggregate number of shares of Common Stock
      of
      the Company that may be issued pursuant to Stock Awards after the Effective
      Date
      shall not exceed one hundred one million, eight hundred forty-five
      thousand, one hundred seventy-seven  (101,845,177) shares
      (the “2007 Plan Reserve”). Such maximum number of shares reserved for issuance
      consists of (i) all of the shares remaining available for issuance under the
      Prior Plans (including shares subject to issuance under outstanding stock awards
      previously granted under the Prior Plans)  and (ii) a number of
      shares, to be determined as of the date this 2007 Plan is approved by the
      stockholders, that when added to the number of shares then remaining available
      for issuance under the Prior Plans, results in a total reserve of 101,845,177
      shares.

     

    (b)  Reversion
      of Shares to the Share Reserve. 

     

    (i)  Shares
      Available For Subsequent Issuance.
      If any
      (x) Stock Award shall for any reason expire or otherwise terminate, in whole
      or
      in part, without having been exercised in full, (y) shares of Common Stock
      issued to a Participant pursuant to a Stock Award are forfeited to or
      repurchased by the Company at their original exercise or purchase price pursuant
      to the Company’s reacquisition or repurchase rights under the Plan, including
      any forfeiture or repurchase caused by the failure to meet a contingency or
      condition required for the vesting of such shares, or (z) Stock Award is settled
      in cash, then the shares of Common Stock not issued under such Stock Award,
      or
      forfeited to or repurchased by the Company, shall revert to and again become
      available for issuance under the Plan. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  Shares
      Not Available for Subsequent Issuance.
      If any
      shares subject to a Stock Award are not delivered to a Participant because
      the
      Stock Award is exercised through a reduction of shares subject to the Stock
      Award (i.e.,
“net
      exercised”) or an appreciation distribution in respect of a Stock Appreciation
      Right is paid in shares of Common Stock, the number of shares subject to the
      Stock Award that are not delivered to the Participant shall not remain available
      for subsequent issuance under the Plan. If any shares subject to a Stock Award
      are not delivered to a Participant because such shares are withheld in
      satisfaction of the withholding of taxes incurred in connection with the
      exercise of an Option, Stock Appreciation Right, or the issuance of shares
      under
      a Restricted Stock Award or Restricted Stock Unit Award pursuant to Section
      8(g),
      the
      number of shares that are not delivered to the Participant shall not remain
      available for subsequent issuance under the Plan. If the exercise price of
      any
      Stock Award is satisfied by tendering shares of Common Stock held by the
      Participant (either by actual delivery or attestation), then the number of
      shares so tendered shall not remain available for subsequent issuance under
      the
      Plan. 

     

    (c)  Incentive
      Stock Option Limit. Notwithstanding
      anything to the contrary in this Section 3(c),
      subject
      to the provisions of Section 9(a)
      relating
      to Capitalization Adjustments the aggregate maximum number of shares of Common
      Stock that may be issued pursuant to the exercise of Incentive Stock Options
      under the Plan (including Incentive Stock Options granted under the Prior Plans)
      shall be one hundred one million, eight hundred forty-five thousand, one hundred
      seventy-seven (101,845,177) shares of Common Stock.  

     

    (d)  Section
      162(m) Limitation on Annual Grants.
      Subject
      to the provisions of Section 9(a)
      relating
      to Capitalization Adjustments, at such time as the Company may be subject to
      the
      applicable provisions of Section 162(m) of the Code, no Employee shall be
      eligible to be granted during any calendar year Stock Awards whose value is
      determined by reference to an increase over an exercise or strike price of
      at
      least one hundred percent (100%) of the Fair Market Value of the Common Stock
      on
      the date the Stock Award is granted covering more than two million
      (2,000,000) shares
      of
      Common Stock. 

     

    (e)  Full
      Value Awards.
      In
      general, with respect to Restricted Stock Awards, Restricted Stock Unit Awards,
      Performance Stock Awards, Performance Cash Awards that are settled in Common
      Stock, and Other Stock Awards (“Full
      Value Awards”),
      the
      vesting period, together with the holding period after issuance, of such Full
      Value Awards shall be not less than three (3) years (or one (1) year, in the
      case of Full Value Awards that are granted or vest upon the achievement of
      pre-determined performance criteria); provided,
      however,
      that
      the lapsing of such periods may be accelerated in connection with a Corporate
      Transaction and/or Change in Control. Full Value Awards that do not meet these
      guidelines shall be limited to five (5%) percent of the 2007 Plan
      Reserve. 

     

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

     

    4.  ELIGIBILITY.

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (c)  Consultants.
      A
      Consultant shall be eligible for the grant of a Stock Award only if, at the
      time
      of grant, a Form S-8 Registration Statement under the Securities Act or a
      successor or similar form under the Securities Act (“Form
      S-8”)
      is
      available to register either the offer or the sale of the Company’s securities
      to such Consultant because of the nature of the services that the Consultant
      is
      providing to the Company, because the Consultant is a natural person, or because
      of any other rule governing the use of Form S-8. 

     

    5.  OPTION
      PROVISIONS.

     

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

     

    (a)  Term.
      Subject
      to the provisions of Section 4(b)
      regarding Ten Percent Stockholders, no Option shall be exercisable after the
      expiration of ten (10) years from the date of its grant or such shorter period
      specified in the Option Agreement (the “Expiration
      Date”).

     

    (b)  Exercise
      Price.
      Subject
      to the provisions of Section 4(b)
      regarding Ten Percent Stockholders, and notwithstanding anything in the Option
      Agreement to the contrary, the exercise price of each Option shall not be less
      than the Fair Market Value of the Common Stock subject to the Option on the
      date
      the Option is granted. Notwithstanding the foregoing, an Option may be granted
      with an exercise price lower than the Fair Market Value of the Common Stock
      subject to the Option if such Option is granted pursuant to an assumption or
      substitution for another option in a manner consistent with the provisions
      of
      Sections 409A and 424(a) of the Code (whether or not such options are Incentive
      Stock Options).

     

    (c)  Consideration.
      The
      purchase price of Common Stock acquired pursuant to the exercise of an Option
      shall be paid, to the extent permitted by applicable law and as determined
      by
      the Board in its sole discretion, by any combination of the methods of payment
      set forth below. The Board shall have the authority to grant Options that do
      not
      permit all of the following methods of payment (or otherwise restrict the
      ability to use certain methods) and to grant Options that require the consent
      of
      the Company to utilize a particular method of payment. The methods of payment
      permitted by this Section 5(c)
      are:

     

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

     

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

     

    (iii)  by
      delivery to the Company (either by actual delivery or attestation) of shares
      of
      Common Stock; 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    (v)  in
      any
      other form of legal consideration that may be acceptable to the Board.

     

    (d)  Transferability
      of Options.
      The
      Board may, in its sole discretion, impose such limitations on the
      transferability of Options as the Board shall determine. If the Board determines
      that an Option shall be transferable, the Option shall contain such additional
      terms and conditions as the Board deems appropriate. In the absence of such
      a
      determination by the Board to the contrary, the following restrictions on the
      transferability of Options shall apply:

     

    (i)  Restrictions
      on Transfer.
      No ISO
      granted under this Plan may be sold, transferred, pledged, assigned, or
      otherwise alienated or hypothecated, other than by will or by the laws of
      descent and distribution. Nonqualified Stock Options shall not be transferable
      except by will or by the laws of descent and distribution and shall be
      exercisable during the lifetime of the Optionholder only by the Optionholder;
      provided,
      however,
      that
      the Board may, in its sole discretion, permit transfer of the Option in a manner
      consistent with applicable tax and securities laws upon the Optionholder’s
      request. 

     

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

     

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

     

    (e)  Vesting
      of Options Generally.
      The
      total number of shares of Common Stock subject to an Option may vest and
      therefore become exercisable in periodic installments that may or may not be
      equal. The Option may be subject to such other terms and conditions on the
      time
      or times when it may or may not be exercised (which may be based on the
      satisfaction of Performance Goals or other criteria) as the Board may deem
      appropriate. The vesting provisions of individual Options may vary; provided,
      however,
      that in
      all cases, in the event that an Optionholder’s Continuous Service terminates as
      a result of his or her death, then the Option shall become fully vested and
      exercisable as of the date of termination of Continuous Service. The provisions
      of this Section 5(e)
      are
      subject to any Option provisions governing the minimum number of shares of
      Common Stock as to which an Option may be exercised. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (f)  Termination
      of Continuous Service.
      Except
      as otherwise provided in the applicable Option Agreement or other agreement
      between the Optionholder and the Company, in the event that an Optionholder’s
      Continuous Service terminates (other than upon the Optionholder’s death or
      Disability), the Optionholder may exercise his or her Option (to the extent
      that
      the Optionholder was entitled to exercise such Option as of the date of
      termination of Continuous Service) but only within such period of time ending
      on
      the earlier of (i) the date ninety (90) days following the termination of the
      Optionholder’s Continuous Service (or such longer or shorter period specified in
      the Option Agreement), or (ii) the expiration of the term of the Option as
      set
      forth in the Option Agreement. If, after termination of Continuous Service,
      the
      Optionholder does not exercise his or her Option within the time specified
      herein or in the Option Agreement (as applicable), the Option shall
      terminate.

     

    (g)  Extension
      of Termination Date.
      If the
      exercise of the Option following the termination of the Optionholder’s
      Continuous Service (other than upon the Optionholder’s death or Disability)
      would either (i) be prohibited at any time solely because the issuance of shares
      of Common Stock would violate the registration requirements under the Securities
      Act, or (ii) subject the Optionholder to short-swing liability under Section
      16(b) of the Exchange Act, then the Option shall terminate on the earlier of
      (A)
      the expiration of a period of ninety (90) days after the termination of the
      Optionholder’s Continuous Service during which the exercise of the Option would
      not be in violation of such registration requirements and would not subject
      the
      Optionholder to short-swing liability under Section 16(b) of the Exchange Act,
      or (B) the expiration of the term of the Option as set forth in the Option
      Agreement.

     

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

     

    (i)  Death
      of Optionholder.
      In the
      event that (i) an Optionholder’s Continuous Service terminates as a result of
      the Optionholder’s death (which termination event shall give rise to
      acceleration of vesting as described in Section 5(e) above), or (ii) the
      Optionholder dies within the period (if any) specified in the Option Agreement
      after the termination of the Optionholder’s Continuous Service for a reason
      other than death (which event shall not give rise to acceleration of vesting
      as
      described in Section 5(e) above), then the Option may be exercised (to the
      extent the Optionholder was entitled to exercise such Option as of the date
      of
      death) by the Optionholder’s estate, by a person who acquired the right to
      exercise the Option by bequest or inheritance or by a person designated to
      exercise the option upon the Optionholder’s death, but only within the period
      ending on the earlier of (A) the date eighteen (18) months following the date
      of
      death (or such longer or shorter period specified in the Option Agreement),
      or
      (B) the expiration of the term of such Option as set forth in the Option
      Agreement. If, after the Optionholder’s death, the Option is not exercised
      within the time specified herein or in the Option Agreement (as applicable),
      the
      Option shall terminate.

     

    (j)  Non-Exempt
      Employees.
      No
      Option granted to an Employee that is a non-exempt employee for purposes of
      the
      Fair Labor Standards Act shall be first exercisable for any shares of Common
      Stock until at least six (6) months following the date of grant of the Option.
      The foregoing provision is intended to operate so that any income derived by
      a
      non-exempt employee in connection with the exercise or vesting of an Option
      will
      be exempt from his or her regular rate of pay. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    6.  PROVISIONS
      OF STOCK AWARDS OTHER THAN OPTIONS.

     

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

     

    (i)  Consideration.
      A
      Restricted Stock Award may be awarded in consideration for (A) past or future
      services rendered to the Company or an Affiliate, or (B) any other form of
      legal
      consideration that may be acceptable to the Board in its sole discretion and
      permissible under applicable law.

     

    (ii)  Vesting.
      Shares
      of Common Stock awarded under a Restricted Stock Award Agreement may be subject
      to forfeiture to the Company in accordance with a vesting schedule to be
      determined by the Board; provided,
      however,
      that in
      all cases, in the event a Participant’s Continuous Service terminates as a
      result of his or her death, then the Restricted Stock Award shall become fully
      vested as of the date of termination of Continuous Service.

     

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

     

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

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  Vesting.
      At
      the
      time of the grant of a Restricted Stock Unit Award, the Board may impose such
      restrictions or conditions to the vesting of the Restricted Stock Unit Award
      as
      it, in its sole discretion, deems appropriate;
      provided,
      however,
      that in
      all cases, in the event a Participant’s Continuous Service terminates as a
      result of his or her death, then the Restricted Stock Unit Award shall become
      fully vested as of the date of termination of Continuous Service.

     

    (iii)  Payment.
      A
      Restricted Stock Unit Award may be settled by the delivery of shares of Common
      Stock, their cash equivalent, any combination thereof or in any other form
      of
      consideration, as determined by the Board and contained in the Restricted Stock
      Unit Award Agreement.

     

    (iv)  Additional
      Restrictions. At
      the
      time of the grant of a Restricted Stock Unit Award, the Board, as it deems
      appropriate, may impose such restrictions or conditions that delay the delivery
      of the shares of Common Stock (or their cash equivalent) subject to a Restricted
      Stock Unit Award to a time after the vesting of such Restricted Stock Unit
      Award. 

     

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

     

    (vi)  Compliance
      with Section 409A of the Code.
      Notwithstanding anything to the contrary set forth herein, any Restricted Stock
      Unit Award granted under the Plan that is not exempt from the requirements
      of
      Section 409A of the Code shall contain such provisions so that such Restricted
      Stock Unit Award will comply with the requirements of Section 409A of the Code.
      Such restrictions, if any, shall be determined by the Board and contained in
      the
      Restricted Stock Unit Award Agreement evidencing such Restricted Stock Unit
      Award. For example, such restrictions may include, without limitation, a
      requirement that any Common Stock that is to be issued in a year following
      the
      year in which the Restricted Stock Unit Award vests must be issued in accordance
      with a fixed pre-determined schedule. 

     

    (c)  Stock
      Appreciation Rights. Each
      Stock Appreciation Right Agreement shall be in such form and shall contain
      such
      terms and conditions as the Board shall deem appropriate. Stock Appreciation
      Rights may be granted as stand-alone Stock Awards or in tandem with other Stock
      Awards. The terms and conditions of Stock Appreciation Right Agreements may
      change from time to time, and the terms and conditions of separate Stock
      Appreciation Right Agreements need not be identical; provided,
      however,
      that
      each Stock Appreciation Right Agreement shall include (through incorporation
      of
      the provisions hereof by reference in the agreement or otherwise) the substance
      of each of the following provisions:

     

    (i)  Term.
      No Stock
      Appreciation Right shall be exercisable after the expiration of ten (10) years
      from the date of its grant or such shorter period specified in the Stock
      Appreciation Right Agreement.

     

    (ii)  Strike
      Price. Each
      Stock Appreciation Right will be denominated in shares of Common Stock
      equivalents. Notwithstanding anything in the applicable Stock Award Agreement
      to
      the contrary, the strike price of each Stock Appreciation Right shall not be
      less than the Fair Market Value of the Common Stock equivalents subject to
      the
      Stock Appreciation Right on the date of grant.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (iii)  Calculation
      of Appreciation.
      The
      appreciation distribution payable on the exercise of a Stock Appreciation Right
      will be not greater than an amount equal to the excess of (A) the aggregate
      Fair
      Market Value (on the date of the exercise of the Stock Appreciation Right)
      of a
      number of shares of Common Stock equal to the number of share of Common Stock
      equivalents in which the Participant is vested under such Stock Appreciation
      Right, and with respect to which the Participant is exercising the Stock
      Appreciation Right on such date, over (B) the strike price that is determined
      by
      the Board on the date of grant of the Stock Appreciation Right. 

     

    (iv)  Vesting.
      At
      the
      time of the grant of a Stock Appreciation Right, the Board may impose such
      restrictions or conditions to the vesting of such Stock Appreciation Right
      as
      it, in its sole discretion, deems appropriate;
      provided,
      however,
      that in
      all cases, in the event a Participant’s Continuous Service terminates as a
      result of his or her death, then the Stock Appreciation Right shall become
      fully
      vested as of the date of termination of Continuous Service.

     

    (v)  Exercise.
      To
      exercise any outstanding Stock Appreciation Right, the Participant must provide
      written notice of exercise to the Company in compliance with the provisions
      of
      the Stock Appreciation Right Agreement evidencing such Stock Appreciation Right.
      

     

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

     

    (vii)  Termination
      of Continuous Service.
      In the
      event that a Participant’s Continuous Service terminates, the Participant may
      exercise his or her Stock Appreciation Right (to the extent that the Participant
      was entitled to exercise such Stock Appreciation Right as of the date of
      termination of Continuous Service) but only within such period of time ending
      on
      the earlier of (A) the date ninety (90) days following the termination of the
      Participant’s Continuous Service (or such longer or shorter period specified in
      the Stock Appreciation Right Agreement), or (B) the expiration of the term
      of
      the Stock Appreciation Right as set forth in the Stock Appreciation Right
      Agreement. If, after termination of Continuous Service, the Participant does
      not
      exercise his or her Stock Appreciation Right within the time specified herein
      or
      in the Stock Appreciation Right Agreement (as applicable), the Stock
      Appreciation Right shall terminate.

     

    (viii)  Extension
      of Termination Date.
      If the
      exercise of the Stock Appreciation Right following the termination of the
      Participant’s Continuous Service would either (A) be prohibited at any time
      solely because the issuance of shares of Common Stock would violate the
      registration requirements under the Securities Act, or (B) subject the
      Participant to short-swing liability under Section 16(b) of the Exchange Act,
      then the Stock Appreciation Right shall terminate on the earlier of (x) the
      expiration of a period of ninety (90) days after the termination of the
      Participant’s Continuous Service during which the exercise of the Stock
      Appreciation Right would not be in violation of such registration requirements
      and would not subject the Participant to short-swing liability under Section
      16(b) of the Exchange Act, or (y) the expiration of the term of the Stock
      Appreciation Right as set forth in the Stock Appreciation Right
      Agreement.

     

    (ix)  Compliance
      with Section 409A of the Code. Notwithstanding
      anything to the contrary set forth herein, any Stock Appreciation Rights granted
      under the Plan that are not exempt from the requirements of Section 409A of
      the
      Code shall contain such provisions so that such Stock Appreciation Rights will
      comply with the requirements of Section 409A of the Code. Such restrictions,
      if
      any, shall be determined
      by the Board and contained in the Stock Appreciation Right Agreement evidencing
      such Stock Appreciation Right. For
      example, such restrictions may include, without limitation, a requirement that
      a
      Stock Appreciation Right that is to be paid wholly or partly in cash must be
      exercised and paid in accordance with a fixed pre-determined schedule.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  Performance
      Awards.
      

     

    (i)  Performance
      Stock Awards.
      A
      Performance Stock Award is either a Restricted Stock Award or Restricted Stock
      Unit Award that may be granted or may vest based upon the attainment during
      a
      Performance Period of certain Performance Goals. A Performance Stock Award
      may,
      but need not, require the completion of a specified period of Continuous
      Service. In the event a Participant’s Continuous Service terminates as a result
      of his or her death, then the Performance Stock Award shall be deemed to have
      been earned at the target level of performance, shall be fully vested, and
      shall
      be issued promptly following the date of death. The length of any Performance
      Period, the Performance Goals to be achieved during the Performance Period,
      and
      the measure of whether and to what degree such Performance Goals have been
      attained shall be conclusively determined by the Committee in its sole
      discretion. The
      maximum benefit that may be granted in a calendar year to a Participant pursuant
      to this Section 6(d)(i)
      shall
      not exceed the value of two million (2,000,000) shares of Common Stock. In
      addition, to the extent permitted by applicable law and the applicable Award
      Agreement, the Board may determine that cash may be used in payment of
      Performance Stock Awards. 

     

    (ii)  Performance
      Cash Awards.
      A
      Performance Cash Award is a cash award granted pursuant to this Section 6(d)(ii)
      that is paid upon the attainment during a Performance Period of certain
      Performance Goals. A Performance Cash Award may also require the completion
      of a
      specified period of Continuous Service. The length of any Performance Period,
      the Performance Goals to be achieved during the Performance Period, and the
      measure of whether and to what degree such Performance Goals have been attained
      shall be conclusively determined by the Committee in its sole discretion. The
      maximum Performance Cash Award that may be granted to a Participant in a
      calendar year and
      made
      subject to the future attainment of one or more Performance Goals shall not
      exceed six million dollars ($6,000,000).
      The
      Board may provide for or, subject to such terms and conditions as the Board
      may
      specify, may permit a Participant to elect for, the payment of any Performance
      Cash Award to be deferred to a specified date or event. The Committee may
      specify the form of payment of Performance Cash Awards, which may be cash or
      other property, or may provide for a Participant to have the option for his
      or
      her Performance Cash Award, or such portion thereof as the Board may specify,
      to
      be paid in whole or in part in cash or other property. In addition, to the
      extent permitted by applicable law and the applicable Award Agreement, the
      Board
      may determine that Common Stock authorized under this Plan may be used in
      payment of Performance Cash Awards, including additional shares in excess of
      the
      Performance Cash Award as an inducement to hold shares of Common
      Stock. 

     

    (e)  Other
      Stock Awards.
      Other
      forms of Stock Awards valued in whole or in part by reference to, or otherwise
      based on, Common Stock may be granted either alone or in addition to Stock
      Awards provided for under Section 5
      and the
      preceding provisions of this Section 6.
      Subject
      to the provisions of the Plan, the Board shall have sole and complete authority
      to determine the persons to whom and the time or times at which such Other
      Stock
      Awards will be granted, the number of shares of Common Stock (or the cash
      equivalent thereof) to be granted pursuant to such Other Stock Awards and all
      other terms and conditions of such Other Stock Awards; provided,
      however,
      that in
      all cases, in the event a Participant’s Continuous Service terminates as a
      result of his or her death, then any Other Stock Awards held by such Participant
      shall become fully vested as of the date of termination of Continuous
      Service. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    7.  COVENANTS
      OF THE COMPANY.

     

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

     

    (b)  Securities
      Law Compliance.
      The
      Company shall seek to obtain from each regulatory commission or agency having
      jurisdiction over the Plan such authority as may be required to grant Stock
      Awards and to issue and sell shares of Common Stock upon exercise of the Stock
      Awards; provided,
      however,
      that
      this undertaking shall not require the Company to register under the Securities
      Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant
      to
      any such Stock Award. If, after reasonable efforts, the Company is unable to
      obtain from any such regulatory commission or agency the authority that counsel
      for the Company deems necessary for the lawful issuance and sale of Common
      Stock
      under the Plan, the Company shall be relieved from any liability for failure
      to
      issue and sell Common Stock upon exercise of such Stock Awards unless and until
      such authority is obtained. A Participant shall not be eligible for the grant
      of
      a Stock Award or the subsequent issuance of Common Stock pursuant to the Stock
      Award if such grant or issuance would be in violation of any applicable
      securities laws. 

     

    (c)  No
      Obligation to Notify. The
      Company shall have no duty or obligation to any holder of a Stock Award to
      advise such holder as to the time or manner of exercising such Stock Award.
      Furthermore, the Company shall have no duty or obligation to warn or otherwise
      advise such holder of a pending termination or expiration of a Stock Award
      or a
      possible period in which the Stock Award may not be exercised. The Company
      has
      no duty or obligation to minimize the tax consequences of a Stock Award to
      the
      holder of such Stock Award.

     

    8.  MISCELLANEOUS.

     

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

     

    (b)  Corporate
      Action Constituting Grant of Stock Awards.
      Corporate action constituting a grant by the Company of a Stock Award to any
      Participant shall be deemed completed as of the date of such corporate action,
      unless otherwise determined by the Board, regardless of when the instrument,
      certificate, or letter evidencing the Stock Award is communicated to, or
      actually received or accepted by, the Participant. If the Board determines
      that
      the terms of a Stock Award do not reflect the appropriate exercise, strike
      or
      purchase price on the appropriate date of grant in accordance with the
      requirements of the Plan, the terms of the Stock Award shall be automatically
      corrected to reflect the appropriate price or other terms provided for under
      the
      Plan, as determined by the Board, without the need for consent of the
      Participant; provided,
      however,
      that no
      such correction shall result in a direct or indirect reduction in the exercise
      price or strike price of the Stock Award.

     

    (c)  Stockholder
      Rights.
      No
      Participant shall be deemed to be the holder of, or to have any of the rights
      of
      a holder with respect to, any shares of Common Stock subject to such Stock
      Award
      unless and until such Participant has exercised the Stock Award pursuant to
      its
      terms and the Participant shall not be deemed to be a stockholder of record
      until the issuance of the Common Stock pursuant to such exercise has been
      entered into the books and records of the Company.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  No
      Employment or Other Service Rights. Nothing
      in the Plan, any Stock Award Agreement or other instrument executed thereunder
      or in connection with any Award granted pursuant to the Plan shall
      confer upon any Participant any right to continue to serve the Company or an
      Affiliate in the capacity in effect at the time the Award was granted or shall
      affect the right of the Company or an Affiliate to terminate (i) the employment
      of an Employee with or without notice and with or without cause, (ii) the
      service of a Consultant pursuant to the terms of such Consultant’s agreement
      with the Company or an Affiliate, or (iii) the service of a Director pursuant
      to
      the Bylaws of the Company or an Affiliate, and any applicable provisions of
      the
      corporate law of the state in which the Company or the Affiliate is
      incorporated, as the case may be.

     

    (e)  Incentive
      Stock Option $100,000 Limitation.
      To the
      extent that the aggregate Fair Market Value (determined at the time of grant)
      of
      Common Stock with respect to which Incentive Stock Options are exercisable
      for
      the first time by any Optionholder during any calendar year (under all plans
      of
      the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000),
      the Options or portions thereof that exceed such limit (according to the order
      in which they were granted) shall be treated as Nonstatutory Stock Options,
      notwithstanding any contrary provision of the applicable Option Agreement(s)
      or
      any Board or Committee resolutions related thereto.

     

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

     

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

     

    (h)  Electronic
      Delivery.
      Any
      reference herein to a “written” agreement or document shall include any
      agreement or document delivered electronically or posted on the Company’s
      intranet.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    (j)  Compliance
      with 409A. To
      the
      extent that the Board determines that any Award granted under the Plan is
      subject to Section 409A of the Code, the Award Agreement evidencing such Award
      shall incorporate the terms and conditions necessary to avoid the consequences
      specified in Section 409A(a)(1) of the Code. To the extent permitted by
      applicable law, the Plan and Award Agreements shall be interpreted in accordance
      with Section 409A of the Code and Department of Treasury regulations and other
      interpretive guidance issued thereunder, including without limitation any such
      regulations or other guidance that may be issued or amended after the Effective
      Date. Notwithstanding any provision of the Plan to the contrary, in the event
      that following the Effective Date the Board determines that any Award may be
      subject to Section 409A of the Code and related Department of Treasury guidance
      (including such Department of Treasury guidance as may be issued after the
      Effective Date), the payment of benefits under such Award shall be accelerated
      to the minimum extent necessary so that the benefit is not subject to the
      provisions of Section 409A(a)(1) of the Code; provided, however, that if the
      payment of benefits pursuant to such accelerated schedule would still be subject
      to Section 409A(a)(1) of the Code, the payment of such benefits shall not be
      so
      accelerated and shall instead be delayed to the first possible payment date
      after the intended payment date so that such benefits are not subject to the
      provisions of Section 409A(a)(1) of the Code, so long as no such adjustments
      shall result in payments under the Award being subject to Section 409A(a)(1)
      of
      the Code. In addition, to the greatest extent permitted by applicable law,
      the
      Board may adopt such amendments to the Plan and the applicable Award Agreement
      (including but not limited to increasing the exercise price of an Award to
      the
      extent required for the avoidance of the tax consequences set forth in Section
      409A(a)(1)) or adopt other policies and procedures (including amendments,
      policies and procedures with retroactive effect), or take any other actions,
      that the Board determines are necessary or appropriate to (i) exempt the Award
      from Section 409A of the Code and/or preserve the intended tax treatment of
      the
      benefits provided with respect to the Award, or (ii) comply with the
      requirements of Section 409A of the Code and related Department of Treasury
      guidance.

     

    9.  ADJUSTMENTS
      UPON CHANGES IN COMMON STOCK; CORPORATE TRANSACTIONS.

     

    (a)  Capitalization
      Adjustments.
      In
      the
      event of a Capitalization Adjustment, the Board, in order to prevent dimunition
      or enlargement of the benefits or potential benefits intended to be made under
      the Plan, shall adjust: (i) the class(es) and maximum number of securities
      subject to the Plan pursuant to Section 3(a);
      (ii)
      the class(es) and maximum number of securities that may be issued pursuant
      to
      the exercise of Incentive Stock Options pursuant to Section 3(c),
      and
      (iii) the class(es) and maximum number of securities that may be awarded to
      any person pursuant to Section 3(d)
      and
6(d)(i),
      and
      (iv) the class(es) and number of securities and price per share of stock subject
      to outstanding Stock Awards. The Board shall make such adjustments, and its
      determination shall be final, binding and conclusive. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (b)  Dissolution
      or Liquidation.
      Except
      as otherwise provided in the Stock Award Agreement, in the event of a
      dissolution or liquidation of the Company, and upon ten (10) days prior written
      notice, all outstanding Stock Awards (other than Stock Awards consisting of
      vested and outstanding shares of Common Stock not subject to the Company’s right
      of repurchase) shall terminate immediately prior to the completion of such
      dissolution or liquidation, and the shares of Common Stock subject to the
      Company’s repurchase rights may be repurchased by the Company notwithstanding
      the fact that the holder of such Stock Award is providing Continuous Service,
      provided,
      however,
      that the
      Board may, in its sole discretion, cause some or all Stock Awards to become
      fully vested, exercisable and/or no longer subject to repurchase or forfeiture
      (to the extent such Stock Awards have not previously expired or terminated)
      before the dissolution or liquidation is completed but contingent on its
      completion. 

     

    (c)  Corporate
      Transaction.  

     

    (i)  Stock
      Awards May Be Assumed.
      Except
      as otherwise stated in the Stock Award Agreement, in the event of a Corporate
      Transaction, any surviving corporation or acquiring corporation (or the
      surviving or acquiring corporation’s parent company) may assume or continue any
      or all Stock Awards outstanding under the Plan or may substitute similar stock
      awards for Stock Awards outstanding under the Plan (including but not limited
      to, awards to acquire the same consideration paid to the stockholders of the
      Company pursuant to the Corporate Transaction), and any reacquisition or
      repurchase rights held by the Company in respect of Common Stock issued pursuant
      to Stock Awards may be assigned by the Company to the successor of the Company
      (or the successor’s parent company, if any), in connection with such Corporate
      Transaction. A surviving corporation or acquiring corporation (or its parent)
      may choose to assume or continue only a portion of a Stock Award or substitute
      a
      similar stock award for only a portion of a Stock Award. 

     

    (ii)  Stock
      Awards Not Assumed Held by Current Participants.
      Except
      as otherwise stated in the Stock Award Agreement (including an option and stock
      award agreement subject to the terms of the Prior Plans, which terms remain
      applicable as to outstanding options and stock awards thereunder), in the event
      of a Corporate Transaction in which the surviving corporation or acquiring
      corporation (or its parent company) does not assume or continue any or all
      outstanding Stock Awards or substitute similar stock awards for such outstanding
      Stock Awards, then with respect to Stock Awards that have not been assumed,
      continued or substituted and that are held by Participants whose Continuous
      Service has not terminated prior to the effective time of the Corporate
      Transaction (referred to as the “Current
      Participants”),
      the
      vesting of such Stock Awards (and, if applicable, the time at which such Stock
      Awards may be exercised) shall (contingent upon the effectiveness of the
      Corporate Transaction) be accelerated in full to a date prior to the effective
      time of such Corporate Transaction as the Board shall determine (or, if the
      Board shall not determine such a date, to the date that is five business (5)
      days prior to the effective time of the Corporate Transaction), and such Stock
      Awards shall terminate if not exercised (if applicable) at or prior to the
      effective time of the Corporate Transaction, and any reacquisition or repurchase
      rights held by the Company with respect to such Stock Awards shall lapse
      (contingent upon the effectiveness of the Corporate Transaction). 

     

    (iii)  Stock
      Awards Not Assumed Held by Persons other than Current
      Participants.
      Except
      as otherwise stated in the Stock Award Agreement (including an option and stock
      award agreement subject to the terms of the Prior Plans, which terms remain
      applicable as to outstanding options and stock awards thereunder), in the event
      of a Corporate Transaction in which the surviving corporation or acquiring
      corporation (or its parent company) does not assume or continue any or all
      outstanding Stock Awards or substitute similar stock awards for such outstanding
      Stock Awards, then with respect to Stock Awards that have not been assumed,
      continued or substituted and that are held by persons other than Current
      Participants, the vesting of such Stock Awards (and, if applicable, the time
      at
      which such Stock Award may be exercised) shall not be accelerated and such
      Stock
      Awards (other than a Stock Award consisting of vested and outstanding shares
      of
      Common Stock not subject to the Company’s right of repurchase), upon advance
      written notice by the Company of at least five (5) business days to the holders
      of such Stock Awards, shall terminate if not exercised (if applicable) prior
      to
      the effective time of the Corporate Transaction; provided,
      however,
      that
      any reacquisition or repurchase rights held by the Company with respect to
      such
      Stock Awards shall not terminate and may continue to be exercised
      notwithstanding the Corporate Transaction. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (d)  Change
      in Control. 

     

    (i)  Stock
      Awards May Be Assumed.
      Except
      as otherwise stated in the Stock Award Agreement, in the event of a Change
      in
      Control, any surviving corporation or acquiring corporation (or the surviving
      or
      acquiring corporation’s parent company) may assume or continue any or all Stock
      Awards outstanding under the Plan or may substitute similar stock awards for
      Stock Awards outstanding under the Plan (including but not limited to, awards
      to
      acquire the same consideration paid to the stockholders of the Company pursuant
      to the Change in Control), and any reacquisition or repurchase rights held
      by
      the Company in respect of Common Stock issued pursuant to Stock Awards may
      be
      assigned by the Company to the successor of the Company (or the successor’s
      parent company, if any), in connection with such Change in Control. A surviving
      corporation or acquiring corporation (or its parent) may choose to assume or
      continue only a portion of a Stock Award or substitute a similar stock award
      for
      only a portion of a Stock Award. 

     

    (ii)  Stock
      Awards Not Assumed Held by Current Participants.
      Except
      as otherwise stated in the Stock Award Agreement (including an option and stock
      award agreement subject to the terms of the Prior Plans, which terms remain
      applicable as to outstanding options and stock awards thereunder), in the event
      of a Change in Control in which the surviving corporation or acquiring
      corporation (or its parent company) does not assume or continue any or all
      outstanding Stock Awards or substitute similar stock awards for such outstanding
      Stock Awards, then with respect to Stock Awards that have not been assumed,
      continued or substituted and that are held by Current Participants, the vesting
      of such Stock Awards (and, if applicable, the time at which such Stock Awards
      may be exercised) shall (contingent upon the effectiveness of the Change in
      Control) be accelerated in full to a date prior to the effective time of such
      Change in Control as the Board shall determine (or, if the Board shall not
      determine such a date, to the date that is five business (5) days prior to
      the
      effective time of the Change in Control), and such Stock Awards shall terminate
      if not exercised (if applicable) at or prior to the effective time of the Change
      in Control, and any reacquisition or repurchase rights held by the Company
      with
      respect to such Stock Awards shall lapse (contingent upon the effectiveness
      of
      the Change in Control). 

     

    (iii)  Stock
      Awards Not Assumed Held by Persons other than Current
      Participants.
      Except
      as otherwise stated in the Stock Award Agreement (including an option and stock
      award agreement subject to the terms of the Prior Plans, which terms remain
      applicable as to outstanding options and stock awards thereunder), in the event
      of a Change in Control in which the surviving corporation or acquiring
      corporation (or its parent company) does not assume or continue any or all
      outstanding Stock Awards or substitute similar stock awards for such outstanding
      Stock Awards, then with respect to Stock Awards that have not been assumed,
      continued or substituted and that are held by persons other than Current
      Participants, the vesting of such Stock Awards (and, if applicable, the time
      at
      which such Stock Award may be exercised) shall not be accelerated and such
      Stock
      Awards (other than a Stock Award consisting of vested and outstanding shares
      of
      Common Stock not subject to the Company’s right of repurchase), upon advance
      written notice by the Company of at least five (5) business days to the holders
      of such Stock Awards, shall terminate if not exercised (if applicable) prior
      to
      the effective time of the Change in Control; provided,
      however,
      that
      any reacquisition or repurchase rights held by the Company with respect to
      such
      Stock Awards shall not terminate and may continue to be exercised
      notwithstanding the Change in Control. 

     

    (iv)  Additional
      Provisions.
      A Stock
      Award may be subject to additional acceleration of vesting and exercisability
      upon or after a Change in Control as may be provided in the Stock Award
      Agreement for such Stock Award or as may be provided in any other written
      agreement between the Company or any Affiliate and the Participant. A Stock
      Award may vest as to all or any portion of the shares subject to the Stock
      Award
      (i) immediately upon the occurrence of a Change in Control, whether or not
      such
      Stock Award is assumed, continued, or substituted by a surviving or acquiring
      entity in the Change in Control, and/or (ii) in the event a Participant’s
      Continuous Service is terminated, actually or constructively, within a
      designated period following the occurrence of a Change in Control. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.  TERMINATION
      OR SUSPENSION OF THE PLAN.

     

    (a)  Plan
      Term.
      Unless
      sooner terminated by the Board pursuant to Section 2,
      the
      Plan shall automatically terminate on the day before the tenth (10th)
      anniversary of the earlier of (i) the date the Plan is adopted by the Board
      or a
      duly authorized Committee, or (ii) the date the Plan is approved by the
      stockholders of the Company. The Board may suspend the Plan at anytime. No
      Awards may be granted under the Plan while the Plan is suspended or after it
      is
      terminated.

     

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

     

    11.  EFFECTIVE
      DATE OF PLAN.

     

    This
      Plan
      shall become effective on the Effective Date. 

     

    12.  CHOICE
      OF LAW.

     

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

     

    13.  DEFINITIONS. 

     

    As
      used
      in the Plan, the following definitions shall apply to the capitalized terms
      indicated below: 

     

    (a)  “Affiliate”
means,
      at the time of determination, any “parent” or “subsidiary” as such terms are
      defined in Rule 405 of the Securities Act. The Board shall have the authority
      to
      determine the time or times at which “parent” or “subsidiary” status is
      determined within the foregoing definition.

     

    (b)  “Award”
means
      a
      Stock Award or a Performance Cash Award. 

     

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

     

    (d)  “Capitalization
      Adjustment”
means
      any change that is made in, or other events that occur with respect to, the
      Common Stock subject to the Plan or subject to any Stock Award after the
      Effective Date without the receipt of consideration by the Company (through
      merger, consolidation, reorganization, recapitalization, reincorporation, stock
      dividend, dividend in property other than cash, stock split, liquidating
      dividend, combination of shares, exchange of shares, change in corporate
      structure or other transaction not involving the receipt of consideration by
      the
      Company. Notwithstanding the foregoing, the conversion of any convertible
      securities of the Company shall not be treated as a transaction “without receipt
      of consideration” by the Company.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

    (ii)  there
      is
      consummated a merger, consolidation or similar transaction involving (directly
      or indirectly) the Company and, immediately after the consummation of such
      merger, consolidation or similar transaction, the stockholders of the Company
      immediately prior thereto do not Own, directly or indirectly, either (A)
      outstanding voting securities representing more than fifty percent (50%) of
      the
      combined outstanding voting power of the surviving Entity in such merger,
      consolidation or similar transaction or (B) more than fifty percent (50%) of
      the
      combined outstanding voting power of the parent of the surviving Entity in
      such
      merger, consolidation or similar transaction, in
      each
      case in substantially the same proportions as their Ownership of the outstanding
      voting securities of the Company immediately prior to such
      transaction;

     

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

     

    (iv)  individuals
      who, on the date this Plan is adopted by the Board, are members of the Board
      (the “Incumbent
      Board”)
      cease
      for any reason to constitute at least a majority of the members of the Board;
      provided,
      however,
      that if
      the appointment or election (or nomination for election) of any new Board member
      was approved or recommended by a majority vote of the members of the Incumbent
      Board then still in office, such new member shall, for purposes of this Plan,
      be
      considered as a member of the Incumbent Board. 

     

    For
      avoidance of doubt, the term Change in Control shall not include a sale of
      assets, merger or other transaction effected exclusively for the purpose of
      changing the domicile of the Company.

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (g)  “Committee”
means
      a
      committee of one (1) or more Directors to whom authority has been delegated
      by
      the Board in accordance with Section 2(c).

     

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

     

    (i)  “Company”
means
      NVIDIA Corporation, a Delaware corporation.

     

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

     

    (k)  “Continuous
      Service”
means
      that the Participant’s service with the Company or an Affiliate, whether as an
      Employee, Director or Consultant, is not interrupted or terminated. A change
      in
      the capacity in which the Participant renders service to the Company or an
      Affiliate as an Employee, Consultant or Director or a change in the entity
      for
      which the Participant renders such service, provided that there is no
      interruption or termination of the Participant’s service with the Company or an
      Affiliate, shall not terminate a Participant’s Continuous Service; provided,
      however,
      if the
      Entity for which a Participant is rendering services ceases to qualify as an
      “Affiliate” as determined by the Board in its sole discretion, such
      Participant’s Continuous Service shall be considered to have terminated on the
      date such Entity ceases to qualify as an Affiliate. To the extent permitted
      by
      law, the Board or the chief executive officer of the Company, in that party’s
      sole discretion, may determine whether Continuous Service shall be considered
      interrupted in the case of: (i) any leave of absence approved by the Board
      of
      the chief executive officer of the Company, including sick leave, military
      leave
      or any other personal leave; or (ii) transfers between the Company, an
      Affiliate, or their successors. Notwithstanding the foregoing, and except as
      otherwise required by applicable law or as otherwise determined by the
      Committee, a leave of absence shall be treated as Continuous Service for
      purposes of vesting in a Stock Award only on those days on which the Participant
      is using Company-paid vacation time and floating holidays and for the first
      ninety (90) days of leave during which the Participant is not being paid through
      such vacation time and floating holidays. 

     

    (l)  “Corporate
      Transaction”
means
      the occurrence, in a single transaction or in a series of related transactions,
      of any one or more of the following events:

     

    (i)  a
      sale or
      other
      disposition of all or substantially all, as determined by the Board in its
      sole
      discretion, of the consolidated assets of the Company and its
      Subsidiaries;

     

    (ii)  a
      sale or
      other disposition of at least ninety percent (90%) of the outstanding securities
      of the Company;

     

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

     

    (iv)  the
      consummation of a merger, consolidation or similar transaction following which
      the Company is the surviving corporation but the shares of Common Stock
      outstanding immediately preceding the merger, consolidation or similar
      transaction are converted or exchanged by virtue of the merger, consolidation
      or
      similar transaction into other property, whether in the form of securities,
      cash
      or otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (m)  “Covered
      Employee”
shall
      have the meaning provided in Section 162(m)(3) of the Code and the regulations
      promulgated thereunder. 

     

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

     

    (o)  “Directors’
      Plan”
means
      the Company’s 1998 Non-Employee Directors’ Stock Option Plan.

     

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

     

    (q)  “Effective
      Date”
means
      the effective date of this Plan document, which is the date of the 2007 Annual
      Meeting of Stockholders of the Company provided this Plan is approved by the
      Company’s stockholders at such meeting.

     

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

     

    (s)  “Entity”
means
      a
      corporation, partnership, limited liability company or other
      entity.

     

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

     

    (u)  “Exchange
      Act Person” means
      any
      natural person, Entity or “group” (within the meaning of Section 13(d) or 14(d)
      of the Exchange Act), except that “Exchange Act Person” shall not include (i)
      the Company or any Subsidiary of the Company, (ii) any employee benefit plan
      of
      the Company or any Subsidiary of the Company or any trustee or other fiduciary
      holding securities under an employee benefit plan of the Company or any
      Subsidiary of the Company, (iii) an underwriter temporarily holding securities
      pursuant to an offering of such securities, (iv) an Entity Owned, directly
      or
      indirectly, by the stockholders of the Company in substantially the same
      proportions as their Ownership of stock of the Company; or
      (v)
      any natural person, Entity or “group” (within the meaning of Section 13(d) or
      14(d) of the Exchange Act) that, as of the Effective Date as set forth in
      Section 11,
      is the
      Owner, directly or indirectly, of securities of the Company representing more
      than fifty percent (50%) of the combined voting power of the Company’s then
      outstanding securities.

     

    (v)  “Fair
      Market Value”
means,
      as of any date, the value of the Common Stock determined as
      follows:

     

    (i)  If
      the
      Common Stock is listed on any established stock exchange including the Nasdaq
      Global Select Market or the Nasdaq Global Market, the Fair Market Value of
      a
      share of Common Stock shall be the closing sales price for such stock (or the
      closing bid, if no sales were reported) as quoted on such exchange (or the
      exchange with the greatest volume of trading in the Common Stock) on the date
      of
      determination, as reported in The
      Wall Street Journal or
      such
      other source as the Board deems reliable. Unless otherwise provided by the
      Board, if there is no closing sales price (or closing bid if no sales were
      reported) for the Common Stock on the date of determination, then the Fair
      Market Value shall be the closing selling price (or closing bid if no sales
      were
      reported) on the last preceding date for which such quotation exists.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ii)  If
      the
      Common Stock is listed or traded on the Nasdaq Capital Market, the Fair Market
      Value of a share of Common Stock shall be the mean between the bid and asked
      prices for the Common Stock on the date of determination, as reported in
The
      Wall Street Journal or
      such
      other source as the Board deems reliable. Unless otherwise provided by the
      Board, if there is no closing sales price (or closing bid if no sales were
      reported) for the Common Stock on the date of determination, then the Fair
      Market Value shall be the mean between the bid and asked prices for the Common
      Stock on the last preceding date for which such quotation exists. 

     

    (iii)  In
      the
      absence of such markets for the Common Stock, the Fair Market Value shall be
      determined by the Board in good faith and in accordance with Section 409A of
      the
      Code.

     

    (w)  “Incentive
      Stock Option”
means
      an Option which qualifies as an “incentive stock option” within the meaning of
      Section 422 of the Code and the regulations promulgated
      thereunder.

     

    (x)  “Non-Employee
      Director” means
      a
      Director who either (i) is not a current employee or officer of the Company
      or
      an Affiliate, does not receive compensation, either directly or indirectly,
      from
      the Company or an Affiliate for services rendered as a consultant or in any
      capacity other than as a Director (except for an amount as to which disclosure
      would not be required under Item 404(a) of Regulation S-K promulgated pursuant
      to the Securities Act (“Regulation
      S-K”)),
      does
      not possess an interest in any other transaction for which disclosure would
      be
      required under Item 404(a) of Regulation S-K, and is not engaged in a business
      relationship for which disclosure would be required pursuant to Item 404(b)
      of Regulation S-K; or (ii) is otherwise considered a “non-employee director” for
      purposes of Rule 16b-3.

     

    (y)  “Nonstatutory
      Stock Option”
means
      an Option that does not qualify as an Incentive Stock Option.

     

    (z)  “Officer”
means
      a
      person who is an officer of the Company within the meaning of Section 16 of
      the Exchange Act and the rules and regulations promulgated
      thereunder.

     

    (aa)  “Option”
means
      an Incentive Stock Option or a Nonstatutory Stock Option to purchase shares
      of
      Common Stock granted pursuant to the Plan.

     

    (bb)  “Option
      Agreement”
means
      a
      written agreement between the Company and an Optionholder evidencing the terms
      and conditions of an Option grant. Each Option Agreement shall be subject to
      the
      terms and conditions of the Plan.

     

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

     

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

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

    (ii)  “Performance
      Cash Award”
means
      an award of cash granted pursuant to the terms and conditions of Section
6(d)(ii).

     

    (jj)  “Performance
      Criteria”
means
      the one or more criteria that the Board shall select for purposes of
      establishing the Performance Goals for a Performance Period. The Performance
      Criteria that shall be used to establish such Performance Goals may be based
      on
      any one of, or combination of, on a U.S. generally accepted accounting standards
      or non- generally accepted accounting standards basis, the following: (i)
      earnings per share; (ii) earnings before interest, taxes and depreciation;
      (iii)
      earnings before interest, taxes, depreciation and amortization (EBITDA); (iv)
      total stockholder return; (v) return on equity; (vi) return on assets,
      investment, or capital employed; (vii) operating margin; (viii) gross margin;
      (ix) operating income; (x) net income (before or after taxes); (xi) net income
      (after exclusion of extraordinary items as determined in the discretion of
      the
      Board); (xii) net operating income; (xiii) net operating income after tax;
      (xiv)
      pre- and after-tax income; (xv) pre-tax profit; (xvi) operating cash flow;
      (xvii) sales or revenue targets; (xviii) orders and revenue; (xix) increases
      in
      revenue or product revenue; (xx) expenses and cost reduction goals; (xxi)
      improvement in or attainment of expense levels; (xxii) improvement in or
      attainment of working capital levels; (xxiii) economic value added (or an
      equivalent metric); (xxiv) market share; (xxv) cash flow; (xxvi) cash flow
      per
      share; (xxvii) share price performance; (xxviii) debt reduction; (xxix)
      implementation or completion of projects or processes; (xxx) customer
      satisfaction; (xxxi) stockholders’ equity; (xxxii) quality measures; and
      (xxxiii) to the extent that an Award is not intended to comply with Section
      162(m) of the Code, other measures of performance selected by the Board. As
      determined by the Board, any of the Performance Criteria may be absolute as
      to
      the Company or relative to a peer group and any of the Performance Criteria
      may
      be measured on the corporate level or on a business group or division level.
      All
      Performance Criteria may be subject to an adjustment for a one-time accounting
      charge. Partial achievement of the specified criteria may result in the payment
      or vesting corresponding to the degree of achievement as specified in the Stock
      Award Agreement or the written terms of a Performance Cash Award. The Board
      shall, in its sole discretion, define the manner of calculating the Performance
      Criteria it selects to use for such Performance Period. 

     

    (kk)  “Performance
      Goals”
means,
      for a Performance Period, the one or more goals established by the Board for
      the
      Performance Period based upon the Performance Criteria. Performance Goals may
      be
      based on a Company-wide basis, with respect to one or more business units,
      divisions, Affiliates, or business segments, and in either absolute terms or
      relative to the performance of one or more comparable companies or the
      performance of one or more relevant indices. At the time of the grant of any
      Award, the Board is authorized to determine whether, when calculating the
      attainment of Performance Goals for a Performance Period: (i) to exclude
      restructuring and/or other nonrecurring charges; (ii) to exclude exchange rate
      effects, as applicable, for non-U.S. dollar denominated net sales and operating
      earnings; (iii) to exclude the effects of changes to generally accepted
      accounting standards required by the Financial Accounting Standards Board;
      (iv)
      to exclude the effects of any statutory adjustments to corporate tax rates;
      and
      (v) to exclude the effects of any “extraordinary items” as determined under
      generally accepted accounting principles. In addition, the Board retains the
      discretion to reduce or eliminate the compensation or economic benefit due
      upon
      attainment of Performance Goals. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (ll)  “Performance
      Period”
means
      the period of time selected by the Board over which the attainment of one or
      more Performance Goals will be measured for the purpose of determining a
      Participant’s right to and the payment of a Stock Award or a Performance Cash
      Award. Performance Periods may be of varying and overlapping duration, at the
      sole discretion of the Board.

     

    (mm)  “Performance
      Stock Award”
means
      a
      Stock Award granted under the terms and conditions of Section 6(d)(i).

     

    (nn)  “Plan”
means
      this NVIDIA Corporation 2007 Equity Incentive Plan.

     

    (oo)  “Prior
      Plans”
means
      the Company’s 1998 Equity Incentive Plan and 2000 Nonstatutory Equity Incentive
      Plan as in effect immediately prior to the Effective Date.

     

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

     

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

     

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

     

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

     

    (tt)  “Rule
      16b-3”
means
      Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3,
      as
      in effect from time to time.

     

    (uu)  “Securities
      Act”
means
      the Securities Act of 1933, as amended.

     

    (vv)  “Stock
      Appreciation Right”
means
      a
      right to receive the appreciation on Common Stock that is granted pursuant
      to
      the terms and conditions of Section 6(c).

     

    (ww)  “Stock
      Appreciation Right Agreement”
means
      a
      written agreement between the Company and a holder of a Stock Appreciation
      Right
      evidencing the terms and conditions of a Stock Appreciation Right grant. Each
      Stock Appreciation Right Agreement shall be subject to the terms and conditions
      of the Plan.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    (xx)  “Stock
      Award”
means
      any right to receive Common Stock granted under the Plan, including an Option,
      a
      Restricted Stock Award, a Restricted Stock Unit Award, a Stock Appreciation
      Right, a Performance Stock Award, or any Other Stock Award.

     

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

     

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

     

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

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