Document:

exv10w1

Exhibit 10.1

AVALON MICROELECTRONICS INC.

Amended and Restated Stock Option Plan

December 10, 2010

WHEREAS the Corporation created and implemented a Stock Option Plan dated August 28, 2006 which was
amended and restated in October 2010 (collectively, the “Old Plan”);

AND WHEREAS the purpose of this Amended and Restated Stock Option Plan is to give effect to an
exchange of each unvested option held by a Participant to acquire Class C or Class D shares of the
Corporation under the Old Plan (“Old Option”) whereby, immediately upon the completion of the
transactions contemplated by that certain agreement under which all of the issued and outstanding
shares in the capital of the Corporation were sold to Altera Canada, an indirect wholly-owned
subsidiary of Altera (the “Purchase Agreement”), each Old Option of such Participant is exchanged
for an Option (as defined below) and no other consideration;

AND WHEREAS, for each such Participant, the fair market value of the Shares subject to an Option,
less the Exercise Price for such Option, is intended to be equal to the fair market value of the
Class C shares of the Corporation subject to the Old Option, less the exercise price for such
shares under the Old Option;

NOW THEREFORE, the Old Plan is hereby amended as follows, with effect immediately after the
completion of the transactions contemplated by the Purchase Agreement.

 

 

	1	 	Table of Contents

	 	 	 	 	 

	1 TABLE OF CONTENTS
	 	 	1	 
	2 DEFINITIONS
	 	 	2	 
	3 ESTABLISHMENT OF THIS PLAN
	 	 	3	 
	3.1 Purpose
	 	 	3	 
	3.2 No Employment Rights
	 	 	4	 
	3.3 No Other Rights
	 	 	4	 
	4 GRANT OF OPTION
	 	 	4	 
	4.1 Grant
	 	 	4	 
	4.2 Limitations on Grant
	 	 	4	 
	4.3 Exercise Price
	 	 	5	 
	4.4 No Payment on Grant
	 	 	5	 
	4.5 Options Record
	 	 	5	 
	4.6 Changes in Shares
	 	 	5	 
	5 EXERCISE OF OPTIONS
	 	 	5	 
	6 VESTING OF OPTIONS
	 	 	9	 
	7 DEATH OR LONG-TERM DISABILITY OF PARTICIPANT
	 	 	9	 
	8 TERMINATION OF EMPLOYMENT OTHER THAN FOR CAUSE
	 	 	9	 
	9 TERMINATION OF EMPLOYMENT FOR CAUSE
	 	 	10	 
	10 ORDER OF EXERCISE
	 	 	10	 
	11 TERMINATION OF OPTION
	 	 	10	 
	11.1 Expiration of Exercise Period
	 	 	10	 
	11.2 Bankrupt Participant
	 	 	10	 
	12 GENERAL
	 	 	10	 
	12.1 Delivery of Shares
	 	 	10	 
	12.2 Consents
	 	 	10	 
	12.3 Option Not Transferable
	 	 	10	 
	12.4 Administration
	 	 	11	 
	12.5 Incapacity
	 	 	11	 
	12.6 Amendment and Termination
	 	 	12	 
	12.7 Approvals
	 	 	12	 
	12.8 No Fractional Shares
	 	 	12	 
	12.9 Withholding
	 	 	12	 

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	2	 	Definitions
	 
		 	2.1 In this Plan, unless the context otherwise requires, the following terms have the
meanings indicated:
	 
	 	 	“Affiliate” means, with respect to any Person, any other Person who directly or indirectly
controls, is controlled by, or is under direct or indirect common control with, such Person,
and includes any Person in like relation to an Affiliate. A Person shall be deemed to
“control” another Person if such Person possesses, directly or indirectly, the power to
direct or cause the direction of the management and policies of such other Person, whether
through the ownership of voting securities, by contract or otherwise; and the term
“controlled” shall have a similar meaning.
	 
	 	 	“Altera” means Altera Corporation, its successors and assigns.
	 
	 	 	“Altera Canada” means Altera Canada Co., an indirect wholly owned subsidiary of Altera.
	 
	 	 	“Articles” means the Articles of Incorporation of the Corporation as amended from time to
time.
	 
	 	 	“Board” means the board of directors of the Corporation.
	 
	 	 	“Cause” shall include but not be limited to the following acts, which, in the reasonable
judgment of Altera, an Employee has been found to have engaged in: (i) the Employee
committed a fraud, theft, embezzlement or another similar act against the Corporation or any
of its Affiliates; (ii) the Employee breached a material term of their employment agreement
with the Corporation, if applicable; (iii) the Employee was prosecuted for having committed
a serious indictable offence or engaged in other conduct that is materially detrimental or
embarrassing to the Corporation or any of its Affiliates; (iv) the Employee compromised any
trade secret or violated his or her confidentiality obligations to the Corporation or any of
its Affiliates; (v) the Employee breached any non-competition or non-solicitation agreement
with the Corporation or any of its Affiliates; or (vi) the Employee engaged in any grossly
negligent act or willful misconduct in the scope of his or her duties for the Corporation or
any of its Affiliates.
	 
	 	 	“Corporation” means Avalon Microelectronics Inc., its successors and assigns, and any
reference in this Plan to action by the Corporation means action by or under the authority
of the Board or any person or committee that has been designated for that purpose by the
Corporation, subject to the overriding rights of Altera Canada under any unanimous
shareholder declaration pursuant to which it assumes the responsibilities of the Board.
	 
	 	 	“Date of Grant” means the date a Participant is granted an Option to purchase Shares as set
out in the Options Record.

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	 	 	“Employee” means a person in the full-time or part-time employment of the Corporation and
Employees means more than one Employee.
	 
	 	 	“Exchange” means the NASDAQ Stock Exchange or any other stock exchange upon which the Shares
may be listed and posted for trading.
	 
	 	 	“Exercise Price” means the price per Share payable on the exercise of an Option as set out
in the Options Record for such Option.
	 
	 	 	“Option” means a right to subscribe for one or more Shares pursuant to this Plan.
	 
	 	 	“Options Record” means the record of Options granted under this Plan, including the number,
vesting terms and strike prices thereof, attached hereto as Schedule “A”.
	 
	 	 	“Options Record Excerpt” means the Options Record excerpted to only contain details of the
Options held by a particular Participant.
	 
	 	 	“Original Grant Date” means the original date of grant under the Old Plan set out in the
Options Record for options exercisable into shares in the capital of the Corporation granted
to such Participant, such options having been disposed of in connection with the completion
of the transactions contemplated in the Purchase Agreement in exchange for Options under
this Plan.
	 
	 	 	“Outstanding Issue” means Shares that are available to be, but have not yet been, issued by
Altera pursuant to Options granted by the Corporation.
	 
	 	 	“Participant” means an Employee who has been granted an Option.
	 
	 	 	“Person” is to be broadly interpreted and includes an individual, a corporation, a
partnership, a trust, an unincorporated organization, a governmental authority, and the
executors, administrators or other legal representatives of an individual in such capacity.
	 
	 	 	“Plan” means this stock option plan, including the Options Record, as amended and restated
from time to time.
	 
	 	 	“Prescribed Period” means the prescribed period set out in the notice provided for in
Section 5.5 of this Plan, which shall not be Less than 15 days from the date of such notice.
	 
	 	 	“Shares” means common shares in the capital of Altera, and includes any shares of Altera
into which such shares may be converted, reclassified, redesignated, subdivided,
consolidated or otherwise changed.
	 
	 	 	“Vesting Period” means the period(s) referred to in the Options Record that determines when
the Participant may exercise Options to subscribe for and purchase Shares.

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	3	 	Establishment of this Plan

	 	3.1	 	Purpose
	 
	 	 	 	The purpose of this Plan is to advance the interests of the Corporation by providing
Participants with (a) a financial incentive for the continued improvement of the
performance of the Corporation and its Affiliates and (b) encouragement to continue
employment with the Corporation or its Affiliates.
	 
	 	3.2	 	No Employment Rights
	 
	 	 	 	Participation in this Plan does not give any Participant the right to continue as an
Employee, or any right or interest in Options or Shares, except to Options or Shares
as specifically provided in this Plan as reflected in the Options Record. Nothing in
this Plan or in any Option shall be deemed, interpreted or construed to constitute
an agreement, or an expression of intent, on the part of the Corporation or any of
its Affiliates, to extend the employment of any Participant beyond the time at which
such Participant would normally be required to retire in accordance with any
applicable employment agreement or retirement plan or policy of the Corporation or
any of its Affiliates then in effect.
	 
	 	3.3	 	No Other Rights
	 
	 	 	 	No Participant shall have any of the rights of a shareholder of Altera with respect
to any Shares subject to an Option until such Shares have been issued to him or her
upon the due exercise of the Option in accordance with the terms of this Plan,
including those of the Options Record, and full payment therefor has been made by
him or her to Altera.

	4	 	Grant of Option

	 	4.1	 	Grant
	 
	 	 	 	Subject to the provisions of this Plan, the Corporation may, from time to time in
its discretion, determine those Employees to whom Options are to be granted, the
number and type of Shares which may be purchased pursuant to such Options, the time
or times when such Options shall vest and become exercisable, as well as, if
applicable, the conditions that must be met for such vesting to take place, the
duration of the exercise period and conditions applicable with respect to the
exercise of such Options. A Participant may be granted additional Options under this
Plan if the Corporation shall so determine in its absolute discretion.
	 
	 	4.2	 	Limitations on Grant
	 
	 	 	 	For so long as the Shares are listed and posted for trading on the Exchange, and
unless otherwise approved by holders of the majority of voting shares of Altera, the
following limitations on the number of Shares for issuance apply:

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	 	•	 	the number of Shares that may be reserved for issuance at any one
time under this Plan shall not exceed ten percent (10%) of the
Outstanding Issue at any point in time;
	 
	 	•	 	no Option shall be granted which could, under the terms of this Plan
and any other share option, share option plan or share purchase plan of
the Corporation or any of its Affiliates, result in a Participant
acquiring under such plans more than 5% of the issued and outstanding
Shares.

	 	4.3	 	Exercise Price
	 
	 	 	 	At the time the Corporation grants an Option, the Corporation shall fix the Exercise
Price of such Option at the time of such grant at the Corporation’s sole and
absolute discretion.
	 
	 	4.4	 	No Payment on Grant
	 
	 	 	 	No payment to the Corporation shall be required or made on the grant of an Option.
	 
	 	4.5	 	Options Record
	 
	 	 	 	The grant of an Option shall be evidenced by the delivery by the Corporation to the
Participant, within 30 days of the Date of Grant, of an Options Record Excerpt
setting out the terms of such granted Option.
	 
	 	4.6	 	Changes in Shares
	 
	 	 	 	If the Shares are subdivided, consolidated, converted or reclassified or the number
of Shares varies as a result of a stock dividend or of an increase or reduction of
the share capital of Altera, the Corporation may adjust one or more of:

	 	1.	 	the number or class or series of Shares that may be subject to
Options at any particular time;
	 
	 	2.	 	the number or class or series of Shares that are subject to
outstanding Options; and
	 
	 	3.	 	the Exercise Price of outstanding Options, in such manner as
the Corporation considers appropriate and proportionate in the circumstances.

	 	 	 	Upon notice to a Participant of an adjustment made in accordance with this Section
4.6, the Corporation shall deliver to the Participant an updated Options Record
Excerpt reflecting such adjustment.

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	5	 	Exercise of Options
	 
		 	5.1 Subject to any policies adopted by Altera or any of its Affiliates, including the
Corporation, regarding trading by insiders or employees of Altera or any of its Affiliates,
including the Corporation, as the case may be, a Participant may exercise an Option in whole
or in part at any time after the Option vests in accordance with this Plan including the
vesting terms set out in the Options Record.
	 
		 	5.2 Subject to Section 5.1 and the Option terms set out in the Options Record, an Option may
be exercised by a Participant, or as provided for in Section 12.3 hereof in the case of
death of a Participant or during any period in which a Participant lacks capacity, by such
Participant’s heirs, executors, administrators or personal representatives, at the
applicable times and in the applicable amounts by delivering to the Corporation written
notice of exercise of such Option in the form attached hereto as Schedule B, together with
payment in full of the Exercise Price for all Shares in respect of which the Option is being
exercised.
	 
		 	5.3 Upon any such exercise of an Option, Altera shall cause the registrar and transfer agent
of Altera to deliver to the Participant exercising such Option, or his or her personal
representative in the case of the death of such Participant as contemplated in Section 12.3
(or as such Participant or his or her personal representative may otherwise direct in the
written notice of exercise), evidence of the registration of the Shares in respect of which
such Option was duly exercised as required hereunder (including payment in full of the
applicable Exercise Price) in the name of the Participant or his or her personal
representative (or as otherwise directed in the written notice of exercise), representing in
the aggregate such number of Shares as such Participant or his or her personal
representative shall have then paid for.
	 
		 	5.4 The Option shall be deemed to have been exercised upon actual receipt by the Corporation
of the written notice of exercise, and payment in full of the Exercise Price for such Shares
to Altera. Upon exercise, an Option shall be cancelled unless it is only exercised in part.
	 
		 	5.5 Notwithstanding any other provision of this Plan, the Corporation may at any time, by
notice in writing to a Participant, in connection with:

	 	(a)	 	any proposed sale or conveyance of all or substantially all of
the property and assets of the Corporation or any of its Affiliates, including
but not limited to a sale of the shares in the Corporation or any of its
Affiliates or dissolution, liquidation or winding-up of the Corporation or any
of its Affiliates;
	 
	 	(b)	 	any proposed merger, amalgamation or other form of corporate
reorganization of the Corporation or any of its Affiliates; or
	 
	 	(c)	 	any transaction or arrangement entered into by the Corporation
or any of its Affiliates which would have a similar effect as the transactions
referred to in (a) or(b) above.

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	 	 	(in each case, a “Proposed Transaction”) require the Participant to accept termination in
accordance with Section 5.6 within a prescribed period (the “Prescribed Period”) set out in
said notice.
	 
		 	5.6 Upon receipt of notice in writing from the Corporation under Section 5.5 and unless
limited by Section 5.7, the Participant shall, within the Prescribed Period, elect by notice
in writing to the Corporation to accept termination of the Option by either:

	 	(a)	 	subscribing and paying for all of the Shares then remaining
unsubscribed for under an Option that has vested or would otherwise then be
exercisable for all the Shares subject to the Option; or
	 
	 	(b)	 	effect a “cashless exercise”, by applying a portion of the
Participant’s proceeds from the closing of the Proposed Transaction to the
Exercise Price payable by that Participant for the exercise of his or her
vested Options, and as applicable, issuing the balance of the shares or paying
the balance of the proceeds to the Participant; and

	 	 	exchange unvested Options or any portion of them for options to purchase shares in the
capital of the acquirer or any corporation that results from amalgamation, merger, or
similar transaction involving the Corporation or any of its Affiliates (vested or unvested)
made in connection with the Proposed Transaction on an ‘in the money basis’ attributable to
such unvested Options at the then prevailing subscription price of the shares or adjusted if
and to the extent that the Corporation considers it to be equitable and appropriate.
	 
		 	5.7 In any notice of election given by the Corporation under Section 5.5, the Corporation
shall have the right to provide, among other things, that:

	 	(a)	 	Altera shall only complete the issuance of any Shares
subscribed for by the Participant;
	 
	 	(b)	 	the Participant shall be required to exercise a “cashless
exercise” by applying a portion of the Participant’s proceeds from the closing
of the Proposed Transaction, if any, to the Exercise Price payable by that
Participant for the exercise of his or her vested Options and issue the balance
of the proceeds attributable to said vested Options to the Participant
immediately prior to or contemporaneously with the completion of the Proposed
Transaction;
	 
	 	(c)	 	the Corporation may at its absolute discretion agree to
compensate Participants from the proceeds of a Proposed Transaction for any
unvested Options or any portion thereof by exchanging options to purchase
shares in the capital of the acquirer or any corporation (vested or unvested)
made in connection with the Proposed Transaction on an ‘in the money basis’ at
the then prevailing subscription price of the shares or adjusted if and to the
extent that the Corporation considers it to be equitable and appropriate or

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	 	 	 	by such other means as the Corporation considers equitable and appropriate;
and

	 	(d)	 	in the event that the Corporation in good faith determines that
the Proposed Transaction will not be completed, the notice of election of the
Participant given under Section 5.6 be terminated, and in such event (i) any
cash paid by the Participant to Altera will be returned to the Participant or
(ii) any cash paid by the Corporation or any of its Affiliates to the
Participant will be immediately returned to the Corporation or such Affiliate
thereof and in either case the Option shall thereafter continue to be
exercisable by the Participant in accordance with its terms.

	 	 	5.8 in the event the Participant has not elected within the Prescribed Period to subscribe
for Shares pursuant to Section 5.6(a) or receive a payment of shares or cash pursuant to
Section 5.6(b) under the Option, or has not paid for Shares he or she has elected to
subscribe for or if the Corporation has not exercised its right to proceed under Section
5.7(b) herein, the Participant will be deemed to have elected to receive such payment for
its Option pursuant to Section 5.6(b).
	 
	 	 	5.9 If the Participant has elected or is deemed to have elected to receive payment in cash,
and if no cash payment would be made pursuant to Section 5.6(b) because the relevant value
or trading price determined under Section 5.6(b) is less than the applicable Exercise Price,
then the Option will be deemed to have terminated at the end of the Prescribed Period, and
the Corporation shall have no further obligations to the Participant with respect thereto.
	 
	 	 	5.10 For the purposes of this entire Section 5, the term “date of completion” means the date
on which the sale, conveyance, corporate reorganization, acquisition or redemption
contemplated by this entire Section 5 takes effect.
	 
	 	 	5.11 The provisions of Section 5.6 requiring the Participant to make an election to exercise
the Option shall only be invoked with respect to all Participants generally and not with
respect to one or more of the Participants and not other Participants. Upon the subscription
and payment for Shares by the Participant or the payment of cash to the Participant by the
Corporation or any of its Affiliates or the deemed termination of the Option under Section
5.9, all rights of the Participant under the Option will terminate.
	 
	 	 	5.12 Subject to Section 5.5 and 5.6, if Altera enters into, and is continued or survives as
a result of any arrangement, amalgamation, merger or other similar transaction with one or
more other companies or corporations, then and in each such case and to the extent that the
Corporation considers it to be equitable and appropriate in its sole and absolute
discretion, each Option granted hereunder may extend to cover the number, class and kind of
shares or other obligations to which the Participant would have been entitled had the Option
been fully exercised immediately prior to the date such amalgamation or merger becomes
effective (whether or not such Option would otherwise have been fully exercisable) and the
then prevailing subscription price of the shares or other obligations

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so covered shall be correspondingly adjusted if and to the extent that the Corporation
considers it to be equitable and appropriate.

6 Vesting of Options

6.1 The vesting conditions of Options granted under this Plan are set out in the Options
Record.

6.2 Notwithstanding the vesting period(s) set forth in the Options Record, in the event
Altera, any of its Affiliates and/or their respective shareholders, as the case may be,
receive or accept an offer to acquire the shares or substantially all of the assets of
Altera or such Affiliate thereof, whether effected through an acquisition for cash or
securities, and whether structured as a purchase, amalgamation, merger, or otherwise, the
Corporation may, in its sole discretion, deal with the vesting of Options granted under this
Plan in the manner that is equitable and appropriate in light of the circumstances of the
such transaction.

7 Death or Long-Term Disability of Participant

If the employment of a Participant ends by death, or if such Participant is permanently disabled
and receiving long-term disability benefits then:

	 	1.	 	Any vested Option held by the Participant at the time of such event is
exercisable for 180 days after such event;
	 
	 	2	 	Any unvested Option held by the Participant at the time of such event is
cancelled; and
	 
	 	3.	 	The Corporation may permit, at its sole and absolute discretion, the exercise
of an Option even though the Option had not vested at the time of the event under this
Section 7 of this Plan.

8 Termination of Employment other than For Cause

If the employment of a Participant terminates for any reason other than for death, disability or
Cause then:

	 	1.	 	Any vested Option held by the Participant at the time of such termination is
exercisable for 30 days after such event; and
	 
	 	2.	 	Any unvested Option held by the Participant at the time of the event is
cancelled; and
	 
	 	3.	 	The Corporation may permit, at its sole and absolute discretion, the exercise
of an Option even though the Option had not vested at the time of termination under
this Section 8 of this Plan

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9 Termination of Employment for Cause

Any vested or unvested Option held by the Participant at the time of termination for Cause are
immediately forfeited and cancelled, without any further act on the part of the Corporation and
without any consideration thereof to the Participant.

10 Order of Exercise

A Participant may exercise vested Options in any order in which they are received, regardless of
the Date of Grant of the Options.

11 Termination of Option

	 	11.1	 	Expiration of Exercise Period
	 
	 	 	 	Options shall expire on the date specified in the Options Record or on the date
specified in Sections 7, 8, 9 or 11.2 as applicable and, in any event, the term of
an Option shall not exceed six (6) years from the Original Grant Date as set out in
the Options Record unless otherwise extended by the Corporation.
	 
	 	11.2	 	Bankrupt Participant
	 
	 	 	 	If a Participant becomes insolvent or bankrupt within the meaning of the Bankruptcy
and Insolvency Act (Canada) or any other applicable bankruptcy or insolvency
legislation, any unexercised Option and any unvested Option held by such Participant
shall immediately terminate and cease to be exercisable, without any further act on
the part of the Corporation and without any consideration thereof to the Participant
or its bankrupt estate.

12 General

	 	12.1	 	Delivery of Shares
	 
	 	 	 	Any Shares to be issued to a Participant pursuant to the exercise of an Option shall
be issued not later than 30 days after the date of exercise of the Option provided
payment in full is received by Altera.
	 
	 	12.2	 	Consents
	 
	 	 	 	Any issue of Shares under this Plan shall be subject to applicable law and prior
receipt of all necessary or appropriate consents, if any, of any governmental or
regulatory authorities or agencies.
	 
	 	12.3	 	Option Not Transferable

	 	1.	 	No Option shall be assignable or transferable by a Participant
and any purported assignment or transfer of an Option shall be void and shall
render the Option void, provided that in the event of death of a Participant,

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	 	 	 	such Participant’s legal personal representative may exercise the
Participant’s Option in accordance with Section 12.3(2)
	 
	 	2.	 	In the event that a Participant should die at any time during
the term of such Participant’s Option, the Option may then be exercised by his
or her legal personal representative, to the same extent as if the Participant
was alive subject to the terms of such Options set out in the Options Record
and Section 7 hereof.
	 
	 	3.	 	Except as specifically provided in the foregoing sentence, no
Option and none of the rights and privileges thereby conferred shall be
transferred, assigned, pledged, hypothecated in any way or made the subject of
any security of any kind whatever (whether by operation of law or otherwise),
and no Option and none of the rights and privileges thereby conferred shall be
subject to execution, attachment or similar process. Upon any attempt by a
Participant to so transfer, assign, pledge, hypothecate, make subject to a
security or otherwise dispose of an Option or any of the rights and privileges
thereby conferred contrary to the provisions hereof, or upon the levy of any
execution, attachment or similar process upon an Option or any of the rights
and privileges thereby conferred, the Option and such rights and privileges
shall immediately, be void, terminate without any consideration thereof to the
Participant and cease to be exercisable.

	 	12.4	 	Administration

	 	 	 	This Plan shall be administered by the Corporation, which may prescribe rules and
regulations respecting this Plan. Unless otherwise specified. the Corporation has
the exclusive authority to interpret and construe this Plan and to determine all
questions respecting this Plan or any Option. Any such interpretation, construction
or determination shall be final, binding and conclusive for all purposes in respect
of all persons affected thereby. The Corporation may take such other actions as it
considers necessary or desirable in respect of this Plan.
	 
	 	12.5	 	Incapacity
	 
	 	 	 	If a person to whom Shares are to be delivered or a payment made under this Plan is
a minor or is physically or mentally incapable of giving a valid receipt, delivery
or payment may instead be made to a person having the legal care or custody of the
person to whom delivery or payment is to be made and any such delivery or payment
constitutes a complete discharge of the obligation to make such delivery or payment.
Any delivery or payment so made shall be deemed to be a delivery or payment made to
the person entitled to such delivery or payment. Once such delivery or payment is
made, no further claim may be made in respect of such delivery or payment by any
person whatsoever against: (a) Altera; (b) any of Altera’s Affiliates including the
Corporation; (c) Altera’s or any of its Affiliates’ directors, officers, employees
or agents, or (d) this Plan.

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	 	12.6	 	Amendment and Termination
	 
	 	 	 	Subject to the rules and policies of the Exchange, the Corporation may at any time
by resolution amend, suspend or terminate this Plan in any manner whatsoever, except
that no such amendment, suspension or termination shall adversely affect the terms
of any Option previously granted and not yet exercised or expired, without the
written consent of the affected Participants.
	 
	 	12.7	 	Approvals
	 
	 	 	 	This Plan and any amendments hereto shall be subject to the approval of the
Corporation and any other approvals required by applicable law, regulation or the
Exchange. Any Option granted prior to receipt of any such approval shall be
conditional upon such approval being given and no Option may be exercised until such
approval is given. Notwithstanding any other term of this Plan, neither Altera, nor
any of its Affiliates including the Corporation, is obliged to take any action or to
refrain from taking any action if such action (or refraining there from) would
result in a breach of any applicable law, regulation, judgment, directive, rule,
consent, approval, authorization, guideline, order or policy of any governmental or
other regulatory authority.
	 
	 	12.8	 	No Fractional Shares
	 
	 	 	 	Under no circumstances shall Altera be obliged to issue any fractional Shares upon
the exercise of an Option. To the extent that a Participant would otherwise have
been entitled to receive, on the exercise or partial exercise of an Option, a
fraction of a Share in any year, the Option shall be cancelled with respect to such
fraction with no consideration thereof to the Participant.
	 
	 	12.9	 	Withholding
	 
	 	 	 	Whenever Altera proposes or is required to issue or transfer Shares pursuant to an
Option, Altera shall have the right to cause the Corporation to withhold from salary
payments or to require the recipient of such Shares to remit to the Corporation, an
amount sufficient to satisfy any federal, provincial, state and/or local withholding
tax requirements prior to the issuance of the Shares. Whenever under this Plan
payments are to be made in cash, such payments shall be net of an amount sufficient
to satisfy any federal, provincial, state and/or local withholding tax requirements.

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SCHEDULE “A”

- 1 -

 

SCHEDULE “B”

See attached.

- 2 -

 

NOTICE OF EXERCISE OF OPTION UNDER THE

AMENDED AND RESTATED STOCK OPTION PLAN

OF AVALON MICROELECTRONICS INC. (the “Corporation”)

All capitalized terms used herein that are not otherwise defined hereunder shall have the meaning
attributed to them in the Corporation’s Amended and Restated Stock Option Plan dated December 10,
2010 as amended and restated from time to time (the “Plan”). All dollar amounts referred to
in this notice are stated in U.S. dollars.

I, the undersigned, a Participant under the Plan or the personal representative of such Participant
as indicated below, hereby irrevocably give notice pursuant to the Plan of the exercise of the
number of Options listed below (“Options Excercised”) which vested on the date indicted
below (“Vested Date”), which Vested Date corresponds with the Vesting Schedule set out in
the Options Record Excerpt of such Participant, and hereby agree to subscribe for and purchase the
number of common shares in the capital of Altera Corporation (“Altera”) set out below (the
“Shares”).

The amount payable by the undersigned for the Shares is equal to the number of Options Exercised
multiplied by the Exercise Price for such Options as set out in the Options Record Excerpt of such
Participant.

The undersigned tenders herewith a certified cheque or bank draft in the amount of the aggregate
Exercise Price for the Shares as calculated above and directs Altera to deliver to the undersigned
(or as directed otherwise below), evidence of the registration of the Shares in respect of which
such Excercised Options were duly exercised as required under the Plan (including payment in full
of the applicable Exercise Price therefor) in the name of the undersigned (or as otherwise directed
in this Notice).

	 	 	 	 	 

	Participant:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Options Exercised:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Vested Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Shares:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	The undersigned hereby directs Altera to deliver evidence of the registration of the Shares in the name of:
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Dated this ______day of _______________________, 20__.

	 	 	 	 	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	 	 
	 

- 3 -exv4w3

Exhibit 4.3

BROWN-FORMAN CORPORATION

Officers’ Certificate Delivered Pursuant to

Sections 1.02, 2.02 and 3.01 of the Indenture

          1. The undersigned, Chairman, Chief Executive Officer and President and Executive Vice
President, Chief Financial Officer of Brown-Forman Corporation (the “Company”), hereby certify
that:

     a. This Certificate is delivered to U.S. Bank National Association (the “Trustee”), as
trustee, pursuant to Sections 1.02, 2.02 and 3.01 of the indenture (the “base indenture”)
dated as of April 2, 2007 between us and U.S. Bank National Association, as trustee, as
supplemented by a supplemental indenture dated as of December 13, 2010 (together with the
base indenture, the “Indenture”), between the Company and the Trustee in connection with
the Company Order dated December 16, 2010 for the authentication and delivery by the
Trustee of $250,000,000 aggregate principal amount of 2.5% Notes due 2016 (the “Notes”).

     b. The undersigned have read all covenants and conditions of the Indenture relating to
the creation of the Notes.

     c. The statements made herein are based either upon the personal knowledge of the
persons making this Certificate or on information, data and reports furnished to such
persons by the officers, counsel, department heads or employees of the Company who have
knowledge of the facts involved.

     d. In the opinion of the undersigned, they have made such examination or investigation
as is necessary to enable them to express an informed opinion as to whether or not all
conditions provided for in the Indenture with respect to the Company Order have been
complied with.

     e. In the opinion of the undersigned, all conditions precedent provided in the
Indenture to the authentication by the Trustee of the Notes have been complied with, and
such Notes may be delivered in accordance with the

 

 

Company Order as provided in the
Indenture.

     f. The terms of the Notes (including the Form of the Notes) shall be
as set forth in Exhibit A, as established pursuant to resolutions duly adopted by the
Pricing Committee of the Board of Directors of the Company on December 13, 2010 (a copy of
such resolutions being attached hereto as Exhibit B).

          IN WITNESS WHEREOF, the undersigned have hereunto executed this Certificate as of December 16,
2010.

	 	 	 	 	 
	 	 	 
	 	/s/ Paul C. Varga
 	 
	 	Name:  	Paul C. Varga 	 
	 	Title:  	Chairman, Chief Executive
Officer and President 	 
	 
	 	 	 
	 	/s/ Donald C. Berg
 	 
	 	Name:  	Donald C. Berg 	 
	 	Title:  	Executive Vice President and Chief
Financial Officer 	 

 

 

EXHIBIT A

(Terms of the Notes)

 

 

BROWN-FORMAN CORPORATION

2.5% Notes due 2016

          A series of Securities is hereby established pursuant to Section 3.01 of the indenture, dated
as of April 2, 2007 (the “base indenture), as supplemented by a supplemental indenture dated as of
December 13, 2010 (together with the base indenture, the “Indenture”) between Brown-Forman
Corporation (the “Company”) and U.S. Bank National Association, as trustee (the “Trustee”), as
follows (each capitalized term used but not defined herein shall have the meaning assigned to such
term in the Indenture):

          1. The title of the 2.5% Notes due 2016 shall be “2.5% Notes due 2016” (the “Notes”).

          2. The limit upon the aggregate principal amount of the Notes that may be authenticated and
delivered under the Indenture (except for Notes authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Notes) is $250,000,000; provided, however,
that the authorized aggregate principal amount of the Notes may be increased before or after the
issuance of any Notes by a Board Resolution (or action pursuant to a Board Resolution) to such
effect.

          3. The issue date for the Notes shall be December 16, 2010.

          4. The Scheduled Maturity Date of the Notes shall be January 15, 2016.

          5. Principal and interest on the Notes shall be payable at the office of the Trustee in
Louisville, Kentucky.

          6. The Notes will be issued at 99.360% of their face amount.

          7. The Notes will bear interest at 2.500% per annum.

          8. The date from which interest shall accrue for the Notes shall be December 16, 2010. The
Interest Payment Dates on which such interest shall be payable shall be January 15 and July 15 of
each year, commencing July 15, 2011. The record dates for the interest payable on the Notes on any
Interest Payment Date shall be January 1 or July 1, as the case may be, next preceding such
Interest Payment Date.

          9. Not applicable.

          10. The Notes are subject to redemption at the option of the Company, as set forth in the
Notes.

 

 

          11. The Company shall have no obligation to redeem, purchase or repay Notes pursuant to any
sinking fund or analogous provision or at the option of a Holder thereof.

          12. The Notes shall be in global form under the Indenture and shall be exchangeable for
individual Securities only as set forth in Section 3.05 of the Indenture. The Depository Trust
Company is hereby designated as the Depositary for the Securities in global form under the
Indenture.

          13. Not applicable.

          14. Notes may be issued in denominations of $2,000 and integral multiples of $1,000 above that
amount.

          15. Not applicable.

          16. Interest on the Notes will be calculated on the basis of a 360-day year consisting of
twelve 30-day months.

          17. Not applicable.

          18. Not applicable.

          19. Not applicable.

          20. Not applicable.

          21. Not applicable.

          22. Not applicable.

          23. Not applicable.

          24. Not applicable.

          25. Not applicable.

          26. Not applicable.

          27. Not applicable.

 

 

          28. All provisions set forth in Sections 4.02 and 4.03 of the Indenture shall apply to the
Notes.

          29. The Notes and the Trustee’s certificate of authentication shall be substantially in the
form of Annex A hereto (the “Form of Note”), and the Notes shall have the additional terms set
forth in the Form of Note.

 

 

ANNEX A

 

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TRUST
COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OR TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL BECAUSE THE REGISTERED OWNER HEREOF, CEDE & CO. HAS AN
INTEREST HEREIN.

			
	 	 	 
	No. R-1
	 	CUSIP No. 115637 AK6

BROWN-FORMAN CORPORATION

2.5% NOTE DUE 2016

     BROWN-FORMAN CORPORATION, a corporation duly organized and existing under the laws of the
State of Delaware (herein called the “Company”, which term includes any successor corporation under
the Indenture referred to on the reverse hereof), for value received, hereby promises to pay to
Cede & Co., or registered assigns, the principal sum of $250,000,000 (TWO HUNDRED AND FIFTY MILLION
DOLLARS) on January 15, 2016, and to pay interest on said principal sum semi-annually on January 15
and July 15 of each year, commencing, July 15, 2011, at the rate of 2.5% per annum from December
16, 2010, or from the most recent date in respect of which interest has been paid or duly provided
for, until payment of the principal sum has been made or duly provided for. The interest so
payable and punctually paid or duly provided for on any Interest Payment Date will, as provided in
the Indenture, be paid to the Person in whose name this Note (or one or more Predecessor
Securities) is registered at the close of business on the Record Date for such Interest Payment
Date, which shall be the fifteenth day (whether or not a New York Business Day) next preceding such
Interest Payment Date. Any such interest that is payable but is not so punctually paid or duly
provided for shall forthwith cease to be payable to the registered Holder on such Record Date and
may either be paid to the Person in whose name this Note (or one or more Predecessor Securities) is
registered at the close of business on a Special Record Date for the payment of such Defaulted
Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Notes not earlier
than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful
manner not inconsistent with the requirements of any securities exchange on which the Notes may be
listed and upon such notice as may be required by such exchange, if such manner of payment shall be
deemed practical by the Trustee, all as more fully provided in the Indenture.

     Payment of the principal of and interest on this Note will be made at the Place of Payment in
such coin or currency of the United States as at the time of payment is legal tender for payment of
public and private debts; provided, however, that payments of interest may be made at the option of
the Company by checks mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register.

A-1

 

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth at this place. Unless the certificate
of authentication hereon has been executed by or on behalf of the Trustee by manual signature, this
Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose.

A-2

 

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed by manual or
facsimile signature under its corporate seal or a facsimile thereof.

	 	 	 	 	 
	Dated: _____________________ 	BROWN-FORMAN CORPORATION

 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

Attest:

 

A-3

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Securities of the series designated therein referred to in the within-mentioned
Indenture.

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 

A-4

 

	 	 	 	 	 

REVERSE OF NOTE

BROWN-FORMAN CORPORATION

2.5% NOTE DUE 2016

     This Note is one of a duly authorized issue of debentures, notes or other evidences of
indebtedness of the Company (herein called the “Securities”), issued and to be issued in one or
more series under an Indenture, dated as of April 2, 2007, as supplemented by the Supplemental
Indenture dated as of December 13, 2010 (as so supplemented, the “Indenture”), between the Company
and U.S. Bank National Association, as Trustee (herein called the “Trustee”, which term includes
any successor trustee under the Indenture), to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights thereunder of the
Company, the Trustee, and the Holders of the Securities, the terms upon which the Securities are,
and are to be, authenticated and delivered, and the definition of capitalized terms used herein and
not otherwise defined herein. The Securities may be issued in one or more series, which different
series may be issued in various aggregate principal amounts, may be denominated in different
currencies, may mature at different times, may bear interest (if any) at different rates (which
rates may be fixed or variable), may be subject to different redemption provisions (if any), may be
subject to different sinking, purchase, or analogous funds (if any), may be subject to different
covenants and Events of Default, and may otherwise vary as provided in the Indenture. This Note is
one of a series of Securities of the Company designated as set forth on the face hereof (herein
called the “Notes”), limited in aggregate principal amount to $250,000,000.

     The Notes may be redeemed at the Company’s option, upon notice as set forth in the Indenture,
in whole at any time or in part from time to time at a redemption price equal to (A) the greater of
(i) 100% of the principal amount of the Notes to be redeemed on the redemption date or (ii) the sum
of the present values of the remaining scheduled payments of principal and interest on the Notes
being redeemed on that redemption date (not including any portion of any payment of interest
accrued to the redemption date) discounted to the redemption date on a semi-annual basis (assuming
a 360-day year consisting of twelve 30-day months) at the Treasury Rate, plus 15 basis points, as
determined by the Reference Treasury Dealer, plus (B) in each case accrued and unpaid interest on
the Notes to the redemption date; provided that if the date fixed for redemption is a date on or
after the Record Date and on or before the next following Interest Payment Date, then the interest
payable on such date shall be paid to the Holder of record on the relevant Record Date.

     “Comparable Treasury Issue” means the U.S. Treasury security selected by the Independent
Investment Banker as having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (1) the average of
three Reference Treasury Dealer Quotations for such redemption date, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.

A-5

 

     “Independent Investment Banker” means one of the Reference Treasury Dealers selected by the
Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee at 5:00 p.m., New York City time, on the third Business Day
preceding such redemption date.

     “Reference Treasury Dealers” means each of (a) Citigroup Global Markets Inc., (b) Merrill
Lynch, Pierce, Fenner & Smith Incorporated and (c) two additional primary dealers of U.S.
government securities in New York City that the Company appoints to act as a Reference Treasury
Dealer from time to time, in each case and their respective successors; provided, however, that if
any of the foregoing ceases to be a primary dealer of U.S. government securities in New York City,
the Company shall substitute another primary dealer of U.S. government securities.

     “Treasury Rate” means, with respect to any redemption date: (a) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently
published statistical release designated “H.15 (519)” or any successor publication which is
published weekly by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded U.S. Treasury securities adjusted to constant maturity under the caption
“Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if
no maturity is within three months before or after the remaining life, yields for the two published
maturities most closely corresponding to the Comparable Treasury Issue will be determined and the
Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month); or (b) if such release (or any successor release) is not published
during the week preceding the calculation date or does not contain such yields, the rate per annum
equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated
using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such redemption date. The Treasury Rate will be
calculated on the third Business Day preceding the date fixed as a redemption date.

     In the event of redemption of this Note in part only, a new Note or Notes for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon cancellation hereof.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of a majority in aggregate principal amount of the Securities at the time
Outstanding of each series to be affected by such amendment or modification. The Indenture also
contains provisions permitting the Holders of a majority in aggregate principal amount of the
Securities of each series at the time Outstanding, on behalf of

A-6

 

the Holders of Securities of such series, to waive compliance by the Company with certain
provisions of the Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Holder of this Note shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon registration of
transfer hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent
or waiver is made upon this Note.

     The Indenture contains provisions setting forth certain conditions to the institution of
proceedings by Holders of Securities with respect to the Indenture or for any remedy under the
Indenture.

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
amount hereof may be declared due and payable or may be otherwise accelerated in the manner and
with the effect provided in the Indenture.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note is registerable in the Security Register, upon surrender of this Note for
registration of transfer at the office or agency of the Company in any Place of Payment duly
endorsed, or accompanied by a written instrument of transfer in form satisfactory to the Company
and the Security Registrar duly executed, by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Notes, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or transferees.

     The Notes are issuable only in registered form without coupons in denominations of $2,000 and
any integral multiple of $1,000 in addition thereto. As provided in the Indenture and subject to
certain limitations therein set forth, this Note is exchangeable for a like aggregate principal
amount of Notes of different authorized denominations as requested by the Holder surrendering the
same.

     No service charge shall be made for any such registration or transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to the presentment of this Note for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name this Note is
registered as the owner hereof for the purpose of receiving payment as herein provided and for all
other purposes, whether or not this Note is overdue, and neither the Company, the Trustee, nor any
such agent shall be affected by notice to the contrary.

     All terms used in this Note which are defined in the Indenture and are not otherwise defined
herein shall have the meanings assigned to them in the Indenture.

A-7

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

[PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE]

[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and appointing
attorney to transfer such Note on the books of the Company, with full power of substitution in the
premises.

Dated:                                         

NOTICE: The signature to this assignment must correspond with the name as written upon the face of
the within Note in every particular without alteration or enlargement or any change whatsoever.

A-8

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