Document:

exv10w13xiy

 

Exhibit 10.13(i)

Onyx Pharmaceuticals, Inc.

2005 Equity Incentive Plan

Adopted by the Board of Directors: April 18, 2005

Approved by the Stockholders: June 1, 2005

Amended by the Board of Directors: March 6, 2007

Approved by the Stockholders: May 25, 2007

Amended by the Board of Directors: May 25, 2007

Amended by the Board of Directors: February 7, 2008 

Amended by the Board of Directors: March 21, 2008

Approved by the Stockholders: May 14, 2008

Amended by the Board of
Directors: March 12, 2009

Approved by the Stockholders: May 26, 2009

Termination Date: April 17, 2015

1. General.

     (a) Successor and Continuation of Prior Plans. The Plan is intended as the successor to and
continuation of the Onyx Pharmaceuticals, Inc. 1996 Equity Incentive Plan and the Onyx
Pharmaceuticals, Inc. 1996 Non-Employee Directors’ Stock Option Plan (collectively, the “Prior
Plans”). Following the effective date of this Plan, no additional stock awards shall be granted
under the Prior Plans. Any shares remaining available for issuance pursuant to the exercise of
options or settlement of stock awards under the Prior Plans shall be added to the share reserve of
this Plan and available for issuance pursuant to Stock Awards granted hereunder. All outstanding
stock awards granted under the Prior Plans shall remain subject to the terms of the Prior Plans.
Any shares subject to outstanding stock awards granted under the Prior Plans that expire or
terminate for any reason prior to exercise or settlement shall be added to the share reserve of
this Plan and become available for issuance pursuant to Stock Awards granted hereunder. All Stock
Awards granted subsequent to the effective date of this Plan shall be subject to the terms of this
Plan.

     (b) Eligible Stock Award Recipients. The persons eligible to receive discretionary Stock
Awards are Employees, Directors and Consultants. The persons eligible to receive non-discretionary
Stock Awards under the Non-Discretionary Grant Program are Eligible Directors.

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

     (d) General Purpose. The Company, by means of the Plan, seeks to secure and retain the
services of the group of persons eligible to receive Stock 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.

1.

 

2. Definitions.

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

     (a) “Accountant” means the independent registered public accounting firm appointed by the
Company.

     (b) “Affiliate” means (i) any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, provided each corporation in the unbroken chain (other than
the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such
chain, and (ii) any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company, provided each corporation (other than the last corporation) in the
unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such
chain. The Board shall have the authority to determine (i) the time or times at which the
ownership tests are applied, and (ii) whether “Affiliate” includes entities other than corporations
within the foregoing definition.

     (c) “Annual Awards” means Stock Awards granted to each Eligible Director pursuant to Section
8(c)(ii).

     (d) “Annual Meeting” means the first meeting of the Company’s stockholders held each calendar
year at which Directors of the Company are selected.

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

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

     (g) “Capitalization Adjustment” has the meaning ascribed to that term in Section 12(a).

     (h) “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

2.

 

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) the stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company
shall otherwise occur;

          (iv) 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

          (v) 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.

     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 Stock 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.

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

3.

 

     (j) “Committee” means a committee of one (1) or more members of the Board to whom authority
has been delegated by the Board in accordance with Section 3(d).

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

     (l) “Company” means Onyx Pharmaceuticals, Inc., a Delaware corporation.

     (m) “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.

     (n) “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. For example, a change in status from an employee of the Company to a consultant of an
Affiliate or to a Director shall not constitute an interruption of Continuous Service. 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 any leave of absence approved by that party, including sick leave, military leave or any
other personal leave. Notwithstanding the foregoing, a leave of absence shall be treated as
Continuous Service for purposes of vesting in a Stock Award only to such extent as may be provided
in the Company’s leave of absence policy or in the written terms of the Participant’s leave of
absence.

     (o) “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

4.

 

or exchanged by virtue of the merger, consolidation or similar transaction into other
property, whether in the form of securities, cash or otherwise.

          (p) “Covered Employee” means the Company’s principal executive officer and the three (3) other
highest compensated officers of the Company, excluding the Company’s principal financial officer,
for whom total compensation is required to be reported to shareholders under the Exchange Act, as
determined for purposes of Section 162(m) of the Code.

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

          (r) “Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

          (s) “Eligible Director” means a Director who is not an Employee and is eligible to participate
in the Non-Discretionary Grant Program.

          (t) “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.

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

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

          (w) “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 of the Plan
as set forth in Section 15, 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.

          (x) “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 or traded on the Nasdaq
Global Select Market, Nasdaq Global Market, or the Nasdaq Capital 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 market (or the exchange or market 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

5.

 

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) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined by the Board in good faith.

          (y) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

          (z) “Initial Award” means an Option granted to an Eligible Director who meets the specified
criteria pursuant to Section 8(c)(i).

          (aa) “Non-Discretionary Grant Program” means the non-discretionary grant program in effect
under Section 8 of the Plan.

          (bb) “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.

          (cc) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

          (dd) “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.

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

          (ff) “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.

          (gg) “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.

          (hh) “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 7(e).

          (ii) “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

6.

 

Stock Award grant. Each Other Stock Award Agreement shall be subject to the terms and
conditions of the Plan.

          (jj) “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.

          (kk) “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.

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

          (mm) “Performance Cash Award” means an award of cash granted pursuant to the terms and
conditions of Section 11(h)(ii).

          (nn) “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, the following: (i) earnings per share; (ii) earnings before interest, taxes and depreciation;
(iii) earnings before interest, taxes, depreciation and amortization (EBITDA); (iv) net earnings;
(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 operating income; (xii) net operating income after tax; (xiii) pre- and after-tax income; (xiv)
pre-tax profit; (xv) operating cash flow; (xvi) sales or revenue targets; (xvii) increases in
revenue or product revenue; (xvii) expenses and cost reduction goals; (xix) improvement in or
attainment of expense levels; (xx) improvement in or attainment of working capital levels; (xxi)
economic value added; (xxii) market share; (xxiii) cash flow; (xxiv) cash flow per share; (xxv)
share price performance; (xxvi) debt reduction; (xxvii) implementation or completion of projects or
processes; (xxviii) customer satisfaction; (xxix) total stockholder return; (xxx) stockholders’
equity; and (xxxi) other measures of performance selected by the Board. 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 a Performance Period.

          (oo) “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

7.

 

business units, divisions, Affiliates, or business segments, and in either absolute terms or
relative to the performance of one or more comparable companies or a relevant index. The Board is
authorized to make adjustments in the method of calculating the attainment of Performance Goals for
a Performance Period as follows: (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. The Board also retains the
discretion to reduce or eliminate the compensation or economic benefit due upon attainment of
Performance Goals.

          (pp) “Performance Period” means the one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, 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.

          (qq) “Performance Stock Award” means a Stock Award granted under the terms and conditions of
Section 11(h)(i).

          (rr) “Plan” means this Onyx Pharmaceuticals, Inc. 2005 Equity Incentive Plan.

          (ss) “Prior Plans” means the Company’s 1996 Equity Incentive Plan and 1996 Non-Employee
Directors’ Stock Option Plan as in effect immediately prior to the effective date 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 7(d).

          (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 granted under the Plan, including an Option, a Stock
Purchase Award, Stock Bonus Award, a Stock Appreciation Right, a Stock Unit Award, an Other Stock
Award, or a Performance 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.

8.

 

          (zz) “Stock Bonus Award” means an award of shares of Common Stock which is granted pursuant to
the terms and conditions of Sections 7(b), 8(c)(ii)(2), and 8(c)(ii)(3).

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

          (bbb) “Stock Purchase Award” means an award of shares of Common Stock which is granted
pursuant to the terms and conditions of Section 7(a).

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

          (ddd) “Stock Unit Award” means a right to receive shares of Common Stock which is granted
pursuant to the terms and conditions of Section 7(c).

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

          (fff) “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 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%).

          (ggg) “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.

3. Administration.

     (a) Administration by Board. The Board shall administer the Plan unless and until the Board
delegates administration of the Plan to a Committee, as provided in Section 3(d). However, the
Board may not delegate administration of the Non-Discretionary Grant Program. Any discretionary
Award granted to a Director under Sections 6, 7, or 11(h) shall be administered by a committee
consisting solely of Non-Employee Directors; provided, however, that such Non-Employee Directors
sitting on the committee may administer and grant discretionary Awards to themselves.

9.

 

     (b) Powers of Board. Except with respect to the Non-Discretionary Grant Program, 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 (1) which of the persons eligible under the Plan shall be
granted Awards; (2) when and how each Award shall be granted; (3) what type or combination of
types of Award shall be granted; (4) 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 an Award; and (5) 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 fully effective.

          (iii) To amend the Plan or an Award as provided in Section 13.

          (iv) To terminate or suspend the Plan as provided in Section 14.

          (v) 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.

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

     (c) Administration of Non-Discretionary Grant Program. The Board shall have the power,
subject to and within the limitations of, the express provisions of the Non-Discretionary Grant
Program:

          (i) To determine the provisions of each Stock Award to the extent not specified in the
Non-Discretionary Grant Program.

          (ii) To construe and interpret the Non-Discretionary Grant Program and the Stock 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
Non-Discretionary Grant Program or in any Stock Award Agreement, in a manner and to the extent it
shall deem necessary or expedient to make the Non-Discretionary Grant Program fully effective.

          (iii) To amend the Non-Discretionary Grant Program or a Stock Award thereunder as provided in
Section 13.

10.

 

          (iv) 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 Non-Discretionary Grant Program.

     (d) Delegation to Committee.

          (i) General. The Board may delegate some or all of the administration of the Plan (except the
Non-Discretionary Grant Program) to a Committee or Committees. If administration 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 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. Any Committee administering or granting a discretionary
Award to a Director under Sections 6, 7, or 11(h) shall consist solely of Non-Employee Directors;
provided, however, that such Committee may administer and grant discretionary Awards to members of
such Committee.

          (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 (1) delegate to a committee of
one or more members of the Board who need not be Outside Directors the authority to grant Awards to
eligible persons who are either (a) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Award, or (b) not persons with
respect to whom the Company wishes to comply with Section 162(m) of the Code, and/or (2) delegate
to a committee of one or more members of the Board 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.

     (e) Delegation to an Officer. The Board may delegate to one or more Officers of the Company
the authority to do one or both of the following (i) designate Officers and Employees of the
Company or any of its Subsidiaries to be recipients of Options (and, to the extent permitted by
Delaware 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 Officers and Employees of the
Company; 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
Officer and that such Officer may not grant a Stock Award to himself or herself. Notwithstanding
anything to the contrary in this Section 3(e), the Board may not delegate to an Officer authority
to determine the Fair Market Value of the Common Stock pursuant to Section 2(x)(ii) above.

     (f) 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.

11.

 

      (g) Cancellation and Re-Grant of Stock Awards. Neither the Board nor any Committee
shall have the authority to: (i) reprice any outstanding Stock Awards under the Plan, or (ii)
cancel and re-grant any outstanding Stock Awards under the Plan, unless the stockholders of the
Company have approved such an action within twelve (12) months prior to such an event.

4. Shares Subject to the Plan.

     (a) Share Reserve. Subject to the provisions of Section 12(a) relating to Capitalization
Adjustments, the number of shares of Common Stock that may be issued pursuant to Stock Awards shall
not exceed, in the aggregate, Fourteen Million Two Hundred Sixty Thousand Forty-Five (14,260,045)
shares of Common Stock. Such number of shares reserved for issuance consists of (i) the number of
shares remaining available for issuance under the Prior Plans, including shares subject to
outstanding stock awards under the Prior Plans, (ii) an additional 3,990,000 shares approved by the
stockholders at the 2005 Annual Meeting as part of the approval of this Plan, (iii) an additional
1,600,000 shares approved by the stockholders at the 2007 Annual Meeting, (iv) an additional
3,100,000 approved by the stockholders at the 2008 Annual Meeting, plus (v) an additional 2,000,000
shares approved by the stockholders at the 2009 Annual Meeting. Subject to Section 4(b), the
number of shares available for issuance under the Plan shall be reduced by: (i) one (1) share for
each share of stock issued pursuant to (A) an Option granted under Section 6 or 8, or (B) a Stock
Appreciation Right granted under Section 7(d) with respect to which the strike price is at least
one hundred percent (100%) of the Fair Market Value of the underlying Common Stock on the date of
grant; (ii) for awards granted prior to the date of the 2009 Annual Meeting, one and three tenths
(1.3) shares for each share of Common Stock issued pursuant to (A) a Stock Purchase Award, Stock
Bonus Award, Stock Unit Award, or Other Stock Award granted under Section 7 or 8, or (B) a Stock
Appreciation Right granted under Section 7(d) with respect to which the strike price is less than
one hundred percent (100%) of the Fair Market Value of the underlying Common Stock on the date of
grant; and (iii) for awards granted on or after the date of the 2009 Annual Meeting, one and six
tenths (1.6) shares for each share of Common Stock issued pursuant to (A) a Stock Purchase Award,
Stock Bonus Award, Stock Unit Award, or Other Stock Award granted under Section 7 or 8, or (B) a
Stock Appreciation Right granted under Section 7(d) with respect to which the strike price is less
than one hundred percent (100%) of the Fair Market Value of the underlying Common Stock on the date
of grant. Shares may be issued in connection with a merger or acquisition as permitted by NASD
Rule 4350(i)(1)(A)(iii) or, if applicable, NYSE Listed Company Manual Section 303A(8) and such
issuance shall not reduce the number of shares available for issuance under the Plan.

     (b) Reversion of Shares to the Share Reserve.

          (i) Shares Available For Subsequent Issuance. If any (i) Stock Award shall for any reason
expire or otherwise terminate, in whole or in part, without having been exercised in full, (ii)
shares of Common Stock issued to a Participant pursuant to a Stock Award (including the Stock
Awards transferred from the Prior Plans on the effective date of this Plan) 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 (iii)
Stock Award is settled in cash, then the shares of Common Stock

12.

 

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. To the extent there is issued a share
of Common Stock pursuant to a Stock Award that counted as more than one share against the number of
shares available for issuance under the Plan pursuant to Section 4(a) and such share of Common
Stock again becomes available for issuance under the Plan pursuant to this Section 4(b)(i), then
the number of shares of Common Stock available for issuance under the Plan shall increase by (i)
one and three tenths (1.3) shares for shares returning prior to the date of the 2009 Annual Meeting
and (ii) one and six tenths (1.6) shares for shares returning on or after the date of the 2009
Annual Meeting.

          (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 Stock
Purchase Award, Stock Bonus Award, or Stock Unit Award, 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.

          (iii) Incentive Stock Option Limit. Notwithstanding anything to the contrary in this Section
4(b), subject to the provisions of Section 12(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 shall be the same as the maximum number of shares of Common Stock that may
be issued pursuant to Stock Awards under Section 4(a).

     (c) 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.

5. Eligibility.

     (a) Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to
Employees. Stock Awards other than Incentive Stock Options may be granted to Employees, Directors
and Consultants. Non-discretionary Stock Awards granted under the Non-Discretionary Grant Program
in Section 8 may be granted only to Eligible Directors.

     (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.

13.

 

     (c) Section 162(m) Limitation. Subject to the provisions of Section 12(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 one million (1,000,000) shares of Common Stock.

     (d) Consultants. A Consultant shall not be eligible for the grant of a Stock Award if, at the
time of grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8") is not
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 not a natural person, or because of any other rule governing the use of Form S-8.

     (e) Limited Exception to Minimum Vesting Restrictions. Up to ten percent (10%) of the total
number of shares of Common Stock subject to the Plan pursuant to Section 4(a) may be issued as
Stock Awards that are not subject to the minimum vesting restrictions imposed by Sections 6(f),
7(a)(iii), 7(b)(ii), 7(c)(ii), 7(d)(iv), 7(e)(ii), and 11(h)(i).

6.  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. 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 or otherwise) the substance of each of the following provisions:

     (a) Term. No Option shall be exercisable after the expiration of ten (10) years from the date
of grant, or such shorter period specified in the Option Agreement; provided, however, that an
Incentive Stock Option granted to a Ten Percent Stockholder shall be subject to the provisions of
Section 5(b).

     (b) Exercise Price of an Incentive Stock Option. Subject to the provisions of Section 5(b)
regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option
may be granted with an exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option in a manner
consistent with the provisions of Section 424(a) of the Code.

     (c) Exercise Price of a Nonstatutory Stock Option. The exercise price of each Nonstatutory
Stock Option shall be not less than one hundred percent (100%) of the Fair Market

14.

 

Value of the Common Stock subject to the Option on the date the Option is granted.
Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price
lower than that set forth in the preceding sentence if such Option is granted pursuant to an
assumption or substitution for another option in a manner consistent with the provisions of Section
424(a) of the Code.

     (d) 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 6(d) are:

          (i) by cash or check;

          (ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, 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, 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, however, that shares of Common Stock will no longer be outstanding under an
Option and will not be exercisable thereafter to the extent that (i) shares are used to pay the
exercise price pursuant to the “net exercise,” (ii) shares are delivered to the Participant as a
result of such exercise, and (iii) shares are withheld to satisfy tax withholding obligations; or

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

     (e) Transferability of Options. The Board may, in its sole discretion, impose such
limitations on the transferability of Options as the Board shall determine. 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. An Option 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.

15.

 

          (ii) Domestic Relations Orders. Notwithstanding the foregoing, an Option may be transferred
pursuant to a domestic relations order.

          (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, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (f) 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 performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The provisions of this
Section 6(f) are subject to any Option provisions governing the minimum number of shares of Common
Stock as to which an Option may be exercised. Notwithstanding the foregoing or as otherwise
permitted by Section 5(e), no Option granted pursuant to this Section 6 shall vest at a rate more
favorable to the Optionholder than over a one (1)-year period measured from the date of grant (or
the date of hire for newly-hired Optionholders) except in the event of (i) death, (ii) disability,
(iii) retirement, (iv) upon a Corporate Transaction in which such Option is not assumed, continued
or substituted by a successor corporation, or (v) upon a Change in Control.

     (g) Termination of Continuous Service. 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 three (3) months 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.

     (h) Extension of Termination Date. An Optionholder’s Option Agreement may provide that 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 be prohibited at any time solely because
the issuance of shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of
three (3) months 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, or (ii) the
expiration of the term of the Option as set forth in the Option Agreement.

     (i) 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

16.

 

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.

     (j) Death of Optionholder. In the event that (i) an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s death, 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, 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 (i) the date eighteen (18) months following the date of death (or such
longer or shorter period specified in the Option Agreement), or (ii) 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.

     (k) Non-Exempt Employees. No Option granted to an Employee who is a non-exempt employee for
purposes of the Fair Labor Standards Act of 1938, as amended, shall be first exercisable for any
shares of Common Stock until at least six months following the date of grant of the Option.
Notwithstanding the foregoing, consistent with the provisions of the Worker Economic Opportunity
Act, (i) in the event of the Optionholder’s death or Disability, (ii) upon a Corporate Transaction
in which such Option is not assumed, continued, or substituted, (iii) upon a Change in Control, or
(iv) upon the Optionholder’s retirement (as such term may be defined in the Optionholder’s Option
Agreement or in another applicable agreement or in accordance with the Company’s then current
employment policies and guidelines), any such vested Options may be exercised earlier than six
months following the date of grant. 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.

7. Provisions of Stock Awards other than Options.

     (a) Stock Purchase Awards. Each Stock Purchase 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 (i)
held in book entry form subject to the Company’s instructions until any restrictions relating to
the Stock Purchase Award lapse; or (ii) evidenced by a certificate, which certificate shall be held
in such form and manner as determined by the Board. The terms and conditions of Stock Purchase
Award Agreements may change from time to time, and the terms and conditions of separate Stock
Purchase Award Agreements need not be identical; provided, however, that each Stock Purchase 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:

17.

 

          (i) Purchase Price. At the time of the grant of a Stock Purchase Award, the Board will
determine the price to be paid by the Participant for each share subject to the Stock Purchase
Award. To the extent required by applicable law, the price to be paid by the Participant for each
share of the Stock Purchase Award will not be less than the par value of a share of Common Stock.

          (ii) Consideration. At the time of the grant of a Stock Purchase Award, the Board will
determine the consideration permissible for the payment of the purchase price of the Stock Purchase
Award. The purchase price of Common Stock acquired pursuant to the Stock Purchase Award shall be
paid either: (i) in cash or by check at the time of purchase, (ii) by past or future services
rendered to the Company or an Affiliate, or (iii) in any other form of legal consideration that may
be acceptable to the Board in its sole discretion and permissible under applicable law.

          (iii) Vesting. Shares of Common Stock acquired under a Stock Purchase Award may be subject to
a share repurchase right or option in favor of the Company in accordance with a vesting schedule to
be determined by the Board. Notwithstanding the foregoing or as otherwise permitted by Section
5(e), no Stock Purchase Award granted pursuant to this Section 7(a) shall vest at a rate more
favorable to the Participant than over a three (3)-year period measured from the date of grant
except in the event of (i) death, (ii) disability, (iii) retirement, (iv) upon a Corporate
Transaction in which such Stock Purchase Award is not assumed, continued, or substituted by a
successor corporation, or (v) upon a Change in Control.

          (iv) Termination of Participant’s Continuous Service. In the event that a Participant’s
Continuous Service terminates, the Company shall have the right, but not the obligation, to
repurchase or otherwise reacquire, any or all of the shares of Common Stock held by the Participant
that have not vested as of the date of termination under the terms of the Stock Purchase Award
Agreement. At the Board’s election, the price paid for all shares of Common Stock so repurchased
or reacquired by the Company may be at the lesser of: (i) the Fair Market Value on the relevant
date, or (ii) the Participant’s original cost for such shares. The Company shall not be required
to exercise its repurchase or reacquisition option until at least six (6) months (or such longer or
shorter period of time necessary to avoid classification of the Stock Purchase Award as a liability
for financial accounting purposes) have elapsed following the Participant’s purchase of the shares
of stock acquired pursuant to the Stock Purchase Award unless otherwise determined by the Board or
provided in the Stock Purchase Award Agreement.

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

     (b) Stock Bonus Awards. Each Stock Bonus 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 (i) held in book
entry form subject to the Company’s instructions until any restrictions relating to the Stock Bonus
Award lapse; or (ii) evidenced by a certificate, which certificate shall

18.

 

be held in such form and manner as determined by the Board. The terms and conditions of Stock
Bonus Award Agreements may change from time to time, and the terms and conditions of separate Stock
Bonus Award Agreements need not be identical; provided, however, that each Stock Bonus Award
Agreement shall include (through incorporation of provisions hereof by reference in the agreement
or otherwise) the substance of each of the following provisions:

          (i) Consideration. A Stock Bonus Award may be awarded in consideration for (i) past or future
services rendered to the Company or an Affiliate, or (ii) 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 Stock Bonus Award Agreement may be
subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the
Board. Notwithstanding the foregoing or as otherwise permitted by Section 5(e), no Stock Bonus
Award granted pursuant to this Section 7(b) shall vest at a rate more favorable to the Participant
than over a three (3)-year period measured from the date of grant except in the event of (i) death,
(ii) disability, (iii) retirement, (iv) upon a Corporate Transaction in which such Stock Bonus
Award is not assumed, continued, or substituted by a successor corporation, or (v) upon a Change in
Control.

          (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 Stock Bonus Award Agreement.

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

     (c) Stock Unit Awards. Each 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
Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate
Stock Unit Award Agreements need not be identical; provided, however, that each 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 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 Stock Unit Award. The consideration to be paid (if any) by the Participant for each
share of Common Stock subject to a 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.

19.

 

          (ii) Vesting. At the time of the grant of a Stock Unit Award, the Board may impose such
restrictions or conditions on the vesting of the Stock Unit Award as it, in its sole discretion,
deems appropriate. Notwithstanding the foregoing or as otherwise permitted by Section 5(e), no
Stock Unit Award granted pursuant to this Section 7(c) shall vest at a rate more favorable to the
Participant than over a three (3)-year period measured from the date of grant except in the event
of (i) death, (ii) disability, (iii) retirement, (iv) upon a Corporate Transaction in which such
Stock Unit Award is not assumed, continued, or substituted by a successor corporation, or (v) upon
a Change in Control.

          (iii) Payment. A 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 Stock Unit Award Agreement.

          (iv) Additional Restrictions. At the time of the grant of a 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 Stock Unit Award to a time following
the vesting of such Stock Unit Award.

          (v) Dividend Equivalents. Dividend equivalents may be credited in respect of shares of Common
Stock covered by a Stock Unit Award, as determined by the Board and contained in the Stock Unit
Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted
into additional shares of Common Stock covered by the Stock Unit Award in such manner as determined
by the Board. Any additional shares covered by the Stock Unit Award credited by reason of such
dividend equivalents will be subject to all the terms and conditions of the underlying Stock Unit
Award Agreement to which they relate.

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

     (d) 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 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. The strike price of each Stock Appreciation Right granted as a stand-alone or
tandem Stock Award shall not be less than one hundred percent (100%) of the

20.

 

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 (i) 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 (ii) the strike price
that will be determined by the Board at the time 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. Notwithstanding the foregoing or as otherwise permitted by Section
5(e), no Stock Appreciation Right granted pursuant to this Section 7(d) shall vest at a rate more
favorable to the Participant than over a one (1)-year period measured from the date of grant (or
the date of hire for newly-hired Participants) except in the event of (i) death, (ii) disability,
(iii) retirement, (iv) upon a Corporate Transaction in which such Stock Appreciation Right is not
assumed, continued, or substituted by a successor corporation, or (v) upon a Change in Control.

          (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) but only within such period of time ending on the earlier of (i) the date three (3)
months following the termination of the Participant’s Continuous Service (or such longer or shorter
period specified in the Stock Appreciation Right Agreement), or (ii) the expiration of the term of
the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement. If, after
termination, 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) Non-Exempt Employees. No Stock Appreciation Right granted to an Employee who is a
non-exempt employee for purposes of the Fair Labor Standards Act of 1938, as amended, shall be
first exercisable for any shares of Common Stock until at least six months following the date of
grant of the Stock Appreciation Right. Notwithstanding the foregoing,

21.

 

consistent with the provisions of the Worker Economic Opportunity Act, (i) in the event of the Participant’s death or Disability, (ii) upon a Corporate Transaction in which such Stock Appreciation Right is not assumed, continued, or
substituted, (iii) upon a Change in Control, or (iv) upon the Participant’s retirement (as such term may be defined in the Participant’s Stock Appreciation Right Agreement or in another applicable agreement or in accordance with the
Company’s then current employment policies and guidelines), any such vested Stock Appreciation Rights may be exercised earlier than six months following the date of grant. 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 a Stock Appreciation Right will be exempt from his or her regular rate of pay.

     (e) Other Stock Awards.

          (i) General. 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 6 and the preceding provisions of this Section 7. 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.

          (ii) Vesting. Notwithstanding the foregoing or as otherwise permitted by Section 5(e), no
Other Stock Award granted pursuant to this Section 7(e) shall vest at a rate more favorable to the
Participant than over a three (3)-year period measured from the date of grant except in the event
of (i) death, (ii) disability, (iii) retirement, (iv) upon a Corporate Transaction in which such
Other Stock Award is not assumed, continued, or substituted by a successor corporation, or (v) upon
a Change in Control.

8. Non-Discretionary Grants to Eligible Directors.

     (a) General. The Non-Discretionary Grant Program in this Section 8 allows Eligible Directors
to receive Stock Awards automatically at designated intervals over their period of Continuous
Service on the Board. The Non-Discretionary Grant Program is intended as the successor to and
continuation of the Company’s 1996 Non-Employee Directors’ Stock Option Plan.

     (b) Eligibility. The Stock Awards shall automatically be granted to all Eligible Directors
who meet the specified criteria.

     (c) Non-Discretionary Grants.

          (i) Initial
Award. Without any further action of the Board, at the time when
a person first is elected
or appointed to serve on the Board, provided this person is not an
Employee, he or she automatically shall,
upon the date of his or her initial election or appointment as an
Eligible Director, be granted an Option to purchase
twenty thousand (20,000) shares of Common Stock on the terms and conditions set forth in Section
8(d).

22 .

 

          (ii) Annual Awards.

               (1) Previously Scheduled Annual Awards. Between the date of the 2008 Annual Meeting and
December 31, 2008 only, without any further action of the Board, on the anniversary date each year
of the date on which an Option was granted to an Eligible Director either (i) pursuant to Section
8(c)(i), or (ii) pursuant to Subparagraph 5(a) or 5(b) of the 1996 Non-Employee Directors’ Stock
Option Plan, each such Eligible Director whose Continuous Service has not then terminated shall
automatically be granted an Option to purchase ten thousand (10,000) shares of Common Stock on the
terms and conditions set forth in Section 8(d).

               (2) Transitional Annual Awards.

                    a. Without any further action of the Board, on March 31, 2009, each Eligible Director whose
Continuous Service has not then terminated shall automatically be granted an Option to purchase
that number of shares of Common Stock equal to the product of: (a) five thousand (5,000), and (b)
the quotient obtained by dividing (A) the number of days between March 31, 2009 and the most recent
preceding anniversary date on which an Option was granted to the Eligible Director either (1)
pursuant to Section 8(c)(i), or (2) pursuant to Subparagraph 5(a) or 5(b) of the 1996 Non-Employee
Directors’ Stock Option Plan, and (B) three hundred sixty-five (365). The number of shares of
Common Stock subject to such Option shall be rounded down to the next whole share and granted on
the terms and conditions set forth in Section 8(d).

                    b. Without any further action of the Board, on March 31, 2009, each Eligible Director whose
Continuous Service has not then terminated shall automatically be granted a Stock Bonus Award
covering that number of shares of Common Stock equal to the product of: (a) two thousand (2,000),
and (b) the quotient obtained by dividing (A) the number of days between March 31, 2009 and the
most recent preceding anniversary date on which an Option was granted to the Eligible Director
either (1) pursuant to Section 8(c)(i), or (2) pursuant to Subparagraph 5(a) or 5(b) of the 1996
Non-Employee Directors’ Stock Option Plan, and (B) three hundred sixty-five (365). The number of
shares of Common Stock subject to such Stock Bonus Award shall be rounded down to the next whole
share and granted on the terms and conditions set forth in Section 8(e).

                    c. For the sake of clarity, if an Eligible Director did not receive an Option either (1)
pursuant to Section 8(c)(i), or (2) pursuant to Subparagraph 5(a) or 5(b) of the 1996 Non-Employee
Directors’ Stock Option Plan, then without any further action of the Board, on March 31, 2009, each
such Eligible Director whose Continuous Service has not terminated as of such date, shall
automatically be granted: (i) an Option to purchase five thousand (5,000) shares of Common Stock on
the terms and conditions set forth in Section 8(d), and (ii) a Stock Bonus Award covering two
thousand (2,000) shares of Common Stock on the terms and conditions set forth in Section 8(e).

               (3) New Annual Awards.

23 .

 

                    a. Without any further action of the Board, on the last business day in March of each year,
beginning on March 31, 2010, each Eligible Director whose Continuous Service has not then
terminated shall automatically be granted: (i) an Option to purchase five thousand (5,000) shares
of Common Stock on the terms and conditions set forth in Section 8(d), and (ii) a Stock Bonus Award
covering two thousand (2,000) shares of Common Stock on the terms and conditions set forth in
Section 8(e).

                    b. If the date that an Eligible Director was granted an Option pursuant to Section 8(c)(i) is
less than one year prior to the last business day in March of any year, then without any further
action of the Board, the Option otherwise granted to the Eligible Director under Section
8(c)(ii)(3)(a) shall be reduced to that number of shares of Common Stock equal to the product of:
(a) five thousand (5,000), and (b) the quotient obtained by dividing (A)
the number of days between the last business day in March of that year and the date that such
Eligible Director was granted an Option pursuant to Section 8(c)(i), and (B) three hundred
sixty-five (365). The number of shares of Common Stock subject to such Option shall be rounded
down to the next whole share.

                    c. If the date that an Eligible Director was granted an Option pursuant to Section 8(c)(i) is
less than one year prior to the last business day in March of any year, then without any further
action of the Board, the Stock Bonus Award otherwise granted to the Eligible Director under Section
8(c)(ii)(3)(a) shall be reduced to that number of shares of Common Stock equal to the product of:
(a) two thousand (2,000), and (b) the quotient obtained by dividing (A) the number of days between
the last business day in March of that year and the date that such Eligible Director was granted an
Option pursuant to Section 8(c)(i), and (B) three hundred sixty-five (365). The number of shares
of Common Stock subject to such Stock Bonus Award shall be rounded down to the next whole share.

     (d) Non-Discretionary Option Grant Provisions.

          (i) Option Type. Each Option granted hereunder shall be a Nonstatutory Stock Option.

          (ii) Term. No Option shall be exercisable after the expiration of ten (10) years from the
date it was granted.

          (iii) Exercise Price. The exercise price of each Option shall be one hundred percent (100%)
of the Fair Market Value of the Common Stock subject to the Option on the date the Option is
granted.

          (iv) Corporate Transaction. In the event of (i) a Corporate Transaction, or (ii) any Exchange
Act Person becoming 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, then, to the extent not prohibited by applicable law, the time during which Options
granted to Eligible Directors pursuant to the Non-Discretionary Grant Program under this Section 8
may be exercised shall (contingent upon the effectiveness of such transaction) be accelerated in
full to a date prior to the effective time of such transaction, and such Options shall terminate if
not exercised at or prior to such effective time.

24 .

 

          (v) Remaining Terms. The remaining terms and conditions of each Option shall be as set forth
in an Option Agreement in the form adopted from time to time by the Board; provided, however, that
the terms of such Option Agreement shall be consistent with the terms of the Plan.

     (e) Non-Discretionary Stock Bonus Award Provisions.

          (i) Consideration. Payment for the Stock Bonus Award shall be for past or future services
rendered to the Company or an Affiliate. In the event that additional consideration is required to
be paid so that the shares of Common Stock subject to the Stock Bonus Award shall be deemed fully
paid and nonassessable, the Board shall determine the amount and character of such additional
consideration.

          (ii) Corporate Transaction. In the event of (i) a Corporate Transaction, or (ii) any Exchange
Act Person becoming 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, then, to the extent not prohibited by applicable law, the vesting of Stock Bonus
Awards granted to Eligible Directors pursuant to the Non-Discretionary Grant Program under this
Section 8 shall (contingent upon the effectiveness of such transaction) accelerate in full to a
date prior to the effective time of such transaction.

          (iii) Remaining Terms. The remaining terms and conditions of each grant of Stock Bonus Awards
shall be as set forth in a Stock Bonus Award Agreement in a form adopted from time to time by the
Board; provided, however, that the terms of such Stock Bonus Award Agreement shall be consistent
with the provisions of the Plan.

9. 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.

10. Use of Proceeds from Sales of Common Stock.

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

25 .

 

11. Miscellaneous.

     (a) Acceleration of Exercisability and Vesting. Except to the extent prohibited by Sections
6(f), 7(a)(iii), 7(b)(ii), 7(c)(ii), 7(d)(iv), 7(e)(ii), and 11(h)(i), the Board shall have the
power to accelerate the time at which a Stock Award may first be exercised or the time during which
a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the
provisions in the Stock Award stating the time at which it may first be exercised or the time
during which it will vest.

     (b) 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 satisfied all requirements for exercise of the Stock Award
pursuant to its terms.

     (c) 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 Stock 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.

     (d) 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).

     (e) 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 (i) 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 (ii) as to any particular requirement, a determination is made by
counsel for the Company that such requirement need not be met in the

26 .

 

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.

     (f) Withholding Obligations. To the extent provided 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 a Stock 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 Stock Award; or (iii) by such other method as may be set forth in the Stock
Award Agreement.

     (g) 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.

     (h) Performance Awards.

          (i) Performance Stock Awards. A Performance Stock Award is a Stock Award that may be granted,
may vest, or may be exercised based upon the attainment during a Performance Period of certain
Performance Goals. 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.
Notwithstanding the foregoing or as otherwise permitted by Section 5(e), each Performance Stock
Award granted pursuant to this Section 11(h)(i) shall require the completion of one (1) year of
Continuous Service measured from the beginning of a Performance Period, except in the event of (i)
death, (ii) disability, (iii) retirement, (iv) upon a Corporate Transaction in which such
Performance Stock Award is not assumed, continued or substituted by a successor corporation, or (v)
upon a Change in Control. The maximum benefit to be received by any Participant in any calendar
year attributable to Stock Awards described in this Section 11(h)(i) shall not exceed the value of
one million (1,000,000) shares of Common Stock.

          (ii) Performance Cash Awards. A Performance Cash Award is a cash award that may be granted
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 benefit to be
received by any Participant in any calendar year attributable to cash awards described in this
Section 11(h)(ii) shall not exceed two million dollars ($2,000,000).

     (i) No Obligation to Notify or Minimize Taxes. The Company shall have no duty or obligation
to any Participant to advise such holder as to the time or manner of
exercising such

27 .

 

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 an Award to the holder of such Award.

     (j) Corporate Action Constituting Grant of Awards. Corporate action constituting a grant by
the Company of an 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 Award is communicated to, or actually received or accepted
by, the Participant.

     (k) 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 or otherwise providing services to the Company. The Board is authorized to make deferrals
of Awards and determine when, and in what annual percentages, Participants may receive payments,
including lump sum payments, following the Participant’s termination of Continuous Service, and
implement such other terms and conditions consistent with the provisions of the Plan and in
accordance with applicable law.

     (l) Compliance with Section 409A. To the extent that the Board determines that any Award
granted hereunder 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 applicable, the Plan and Award Agreements shall be
interpreted in accordance with Section 409A of the Code. Notwithstanding anything to the contrary
in this Plan (and unless the Award Agreement specifically provides otherwise), if the Shares are
publicly traded and a Participant holding an Award that constitutes “deferred compensation” under
Section 409A of the Code is a “specified employee” for purposes of Section 409A of the Code, no
distribution or payment of any amount shall be made upon a “separation from service” before a date
that is six (6) months following the date of such Participant’s “separation from service” (as
defined in Section 409A of the Code without regard to alternative definitions thereunder) or, if
earlier, the date of the Participant’s death.

12. Adjustments upon Changes in Common Stock; Corporate Transactions.

     (a) Capitalization Adjustments. If any change is made in, or other events occur with respect
to, the Common Stock subject to the Plan or subject to any Stock Award after the effective date of
the Plan set forth in Section 15 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 (each a “Capitalization Adjustment”)), the Board shall appropriately
and proportionately adjust: (i) the class(es) and maximum number of securities

28 .

 

subject to the Plan pursuant to Section 4(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 4(b), (iii) the class(es)
and maximum number of securities that may be awarded to any person pursuant to Sections 5(c) and
11(h), (iv) the class(es) and number of securities subject to each Stock Award under the
Non-Discretionary Grant Program under Section 8, and (v) 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. (Notwithstanding the
foregoing, the conversion of any convertible securities of the Company shall not be treated as a
transaction “without the receipt of consideration” by the Company.)

     (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company,
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 option 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. The following provisions shall apply to Stock Awards (except those
granted under the Non-Discretionary Grant Program) in the event of a Corporate Transaction unless
otherwise provided in a written agreement between the Company or any Affiliate and the holder of
the Stock Award:

          (i) Stock Awards May Be Assumed. 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 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. The
terms of any assumption, continuation or substitution shall be set by the Board in accordance with
the provisions of Section 3(b).

          (ii) Stock Awards Held by Current Participants. In the event of a Corporate Transaction in
which the surviving corporation or acquiring corporation (or its parent company) does not assume or
continue such 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

29 .

 

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 (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 Held by Former Participants. In the event of a Corporate Transaction in
which the surviving corporation or acquiring corporation (or its parent company) does not assume or
continue such 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) 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.

          (iv) Payment for Stock Awards in Lieu of Exercise. Notwithstanding the foregoing, in the
event a Stock Award will terminate if not exercised prior to the effective time of a Corporate
Transaction, the Board may provide, in its sole discretion, that the holder of such Stock Award may
not exercise such Stock Award but will receive a payment, in such form as may be determined by the
Board, equal in value to the excess, if any, of (i) the value of the property the holder of the
Stock Award would have received upon the exercise of the Stock Award, over (ii) any exercise price
payable by such holder in connection with such exercise.

     (d) Change in Control. 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, but in the absence of such provision, no such acceleration shall
occur.

     (e) Parachute Payments.

          (i) Except as otherwise provided in a written agreement between the Company and a Participant,
if the acceleration of the vesting and exercisability of Stock Awards provided for in Sections
8(d)(iv), 8(e)(ii) and 12(c)(ii), together with payments and other benefits of a Participant,
(collectively, the “Payment”) (i) constitute a “parachute payment” within the meaning of Section
280G of the Code, or any comparable successor provisions, and (ii) but for this Section 12(e) would
be subject to the excise tax imposed by Section 4999 of the Code, or any comparable successor
provisions (the “Excise Tax”), then such Payment shall be either (1) provided to such Participant
in full, or (2) provided to such Participant as to such lesser extent that would result in no
portion of such Payment being subject to the Excise Tax, whichever of

30 .

 

the foregoing amounts, when
taking into account applicable federal, state, local and foreign income and employment taxes, the
Excise Tax, and any other applicable taxes, results in the receipt by such Participant, on an
after-tax basis, of the greatest amount of the Payment, notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax.

          (ii) Except as otherwise provided in a written agreement between the Company and a
Participant, any determination required under this Section 12(e) shall be made in writing in good
faith by the Accountant. If a reduction in the Payment is to be made as provided above, reductions
shall occur in the following order unless the Participant elects in writing a different order
(provided, however, that such election shall be subject to Company approval if made on or after the
date that triggers the Payment or a portion thereof): (i) reduction of cash payments; (ii)
cancellation of accelerated vesting of Stock Awards other than Options; (iii) cancellation of
accelerated vesting of Options; and (iv) reduction of other benefits paid to the Participant. If
acceleration of vesting of Stock Awards is to be reduced, such acceleration of
vesting shall be cancelled in the reverse order of date of grant of Stock Awards (i.e., the
earliest granted Stock Award cancelled last) unless the Participant elects in writing a different
order for cancellation.

          (iii) For purposes of making the calculations required by this Section 12(e), the Accountant
may make reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of the Code and other applicable
legal authority. The Company and the Participant shall furnish to the Accountant such information
and documents as the Accountant may reasonably request in order to make such a determination. The
Company shall bear all costs the Accountant may reasonably incur in connection with any
calculations contemplated by this Section 12(e).

          (iv) If, notwithstanding any reduction described above, the Internal Revenue Service (the
“IRS”) determines that the Participant is liable for the Excise Tax as a result of the Payment,
then the Participant shall be obligated to pay back to the Company, within thirty (30) days after a
final IRS determination or, in the event that the Participant challenges the final IRS
determination, a final judicial determination, a portion of the Payment (the “Repayment Amount”).
The Repayment Amount with respect to the Payment shall be the smallest such amount, if any, as
shall be required to be paid to the Company so that the Participant’s net after-tax proceeds with
respect to the Payment (after taking into account the payment of the Excise Tax and all other
applicable taxes imposed on the Payment) shall be maximized. The Repayment Amount with respect to
the Payment shall be zero if a Repayment Amount of more than zero would not result in the
Participant’s net after-tax proceeds with respect to the Payment being maximized. If the Excise
Tax is not eliminated pursuant to this paragraph, the Participant shall pay the Excise Tax.

          (v) Notwithstanding any other provision of this Section 12(e), if (i) there is a reduction in
the Payment as described above, (ii) the IRS later determines that the Participant is liable for
the Excise Tax, the payment of which would result in the maximization of the Participant’s net
after-tax proceeds of the Payment (calculated as if the Payment had not previously been reduced),
and (iii) the Participant pays the Excise Tax, then the Company shall pay or otherwise provide to
the Participant that portion of the Payment that was reduced pursuant to this Section 12(e)
contemporaneously or as soon as administratively possible after the

31 .

 

Participant pays the Excise Tax
so that the Participant’s net after-tax proceeds with respect to the Payment are maximized.

          (vi) If the Participant either (i) brings any action to enforce rights pursuant to this
Section 12(e), or (ii) defends any legal challenge to his or her rights under this Section 12(e),
the Participant shall be entitled to recover attorneys’ fees and costs incurred in connection with
such action, regardless of the outcome of such action; provided, however, that if such action is
commenced by the Participant, the court finds that the action was brought in good faith.

13. Amendment of the Plan and Awards.

     (a) Amendment of Plan. Subject to the limitations of applicable law, the Board at any time,
and from time to time, may amend the Plan. However, stockholder approval shall be required for any
amendment of the Plan that (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.

     (b) Stockholder Approval. The Board, in its sole discretion, may submit any other amendment
to the Plan for stockholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of 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.

     (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible Employees with the
maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

     (d) No Impairment of Rights. 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.

     (e) Amendment of Awards. The Board, at any time and from time to time, may 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 Stock Award Agreement or the written terms of a Performance Cash
Award, 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.

14. Termination or Suspension of the Plan.

     (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the

32 .

 

earlier of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the
stockholders of the Company. 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.

15. Effective Date of Plan.

     The
Plan first became effective upon approval by the
Company’s stockholders at the 2005 Annual Meeting.

     The
amendments to this Plan approved by the Board on March 12, 2009 will
become effective only upon the approval of such amendments by the
Company’s stockholders at the 2009 Annual Meeting.

16. 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.

33 .exv10w1

 

Exhibit 10.1

ATMEL CORPORATION

 

2005 STOCK PLAN

 

(AS
AMENDED AND RESTATED MAY 20, 2009)

 

1.  Background.  The Plan permits the grant of Nonstatutory Stock Options, Incentive Stock Options, Stock Purchase Rights, Stock Appreciation Rights, and Restricted Stock Units.

 

2.  Purposes of the Plan.  The purposes of this 2005 Stock Plan are:

 

			
	 	    -    
	to attract and retain the best available personnel for positions of substantial responsibility,

	 
	 	    -    
	to provide additional incentive to Employees, Directors and Consultants, and

	 
	 	    -    
	to promote the success of the Company’s business.

 

3.  Definitions.  As used herein, the following definitions shall apply:

 

(a)  “Administrator” means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 5 of the Plan.

 

(b)  “Affiliate” means any corporation or any other entity (including, but not limited to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company.

 

(c) “Applicable Laws” means the requirements relating to the administration of stock option plans under U.S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under the Plan.

 

(d)  “Annual Revenue” means the Company’s or a business unit’s net sales for the Fiscal Year, determined in accordance with generally accepted accounting principles; provided, however, that prior to the Fiscal Year, the Committee shall determine whether any significant item(s) shall be excluded or included from the calculation of Annual Revenue with respect to one or more Participants.

 

(e)  “Award” means, individually or collectively, a grant under the Plan of Options, Stock Purchase Rights, Stock Appreciation Rights, and Restricted Stock Units.

 

(f)  “Award Agreement” means the written agreement setting forth the terms and provisions applicable to each Award granted under the Plan. The Award Agreement is subject to the terms and conditions of the Plan.

 

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

 

(h)  “Cash Flow from Operations” means as to any Fiscal Year, the Company’s cash generated from operating activities, or a business unit’s cash generated from operating activities, determined in accordance with generally acceptable accounting principles.

 

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

 

(j)  “Committee” means a committee of Directors appointed by the Board in accordance with Section 5 of the Plan.

 

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

1

 

    (l)  “Company” means Atmel
    Corporation, a Delaware corporation.

 

    (m)  “Consultant” means any person,
    including an advisor, engaged by the Company or a Parent or
    Subsidiary to render services to such entity.

 

    (n)  “Director” means a member of the
    Board, either as an Employee or an Outside Director.

 

    (o)  “Disability” means total and
    permanent disability as defined in Section 22(e)(3) of the
    Code.

 

    (p)  “Earnings Per Share” means as to
    any Fiscal Year, the Company’s Net Income or a business
    unit’s Pro Forma Net Income, divided by a weighted average
    number of common shares outstanding and dilutive common
    equivalent shares deemed outstanding.

 

    (q)  “Employee” means any person,
    including Officers and Directors, employed by the Company or any
    Parent or Subsidiary of the Company. A Service Provider shall
    not cease to be an Employee in the case of (i) any leave of
    absence approved by the Company or (ii) transfers between
    locations of the Company or between the Company, its Parent, any
    Subsidiary, or any successor. For purposes of Incentive Stock
    Options, no such leave may exceed ninety days, unless
    reemployment upon expiration of such leave is guaranteed by
    statute or contract. If reemployment upon expiration of a leave
    of absence approved by the Company is not so guaranteed, then
    three months following the 91st day of such leave any
    Incentive Stock Option held by the Optionee shall cease to be
    treated as an Incentive Stock Option and shall be treated for
    tax purposes as a Nonstatutory Stock Option. Neither service as
    a Director nor payment of a director’s fee by the Company
    shall be sufficient to constitute “employment” by the
    Company.

 

    (r)  “Exercise Price” means the price
    at which a Share may be purchased by a Participant pursuant to
    the exercise of an Option.

 

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

 

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

 

    (i) If the Common Stock is listed on any established stock
    exchange or a national market system, including without
    limitation the Nasdaq Global Select Market, Nasdaq Global
    Market, or Nasdaq Capital Market, its Fair Market Value shall be
    the closing sales price for such stock (or the closing bid, if
    no sales were reported) as quoted on such exchange or system on
    the day of determination, as reported in The Wall Street Journal
    or such other source as the Administrator deems reliable, or, if
    the day of determination is not a trading day, the average of
    the closing sales prices (or the closing bids, if no sales were
    reported) on the immediately following and preceding trading
    dates, in either case as reported by The Wall Street Journal or
    such other source as the Administrator deems reliable;

 

    (ii) If the Common Stock is regularly quoted by a
    recognized securities dealer but selling prices are not
    reported, the Fair Market Value of a Share of Common Stock shall
    be the mean between the high bid and low asked prices for the
    Common Stock on the day of determination, as reported in The
    Wall Street Journal or such other source as the Administrator
    deems reliable; or

 

    (iii) In the absence of an established market for the
    Common Stock, the Fair Market Value shall be determined in good
    faith by the Administrator.

 

    (u)  “Fiscal Year” means the fiscal
    year of the Company.

 

    (v)  “Grant Date” means, with respect
    to an Award, the date that the Award was granted.

 

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

 

    (x)  “Net Income” means as to any
    Fiscal Year, the income after taxes of the Company for the
    Fiscal Year determined in accordance with generally accepted
    accounting principles, provided that prior to the

    

    2

 

    Fiscal Year, the Committee shall determine whether any
    significant item(s) shall be included or excluded from the
    calculation of Net Income with respect to one or more
    Participants.

 

    (y)  “Nonstatutory Stock Option”
    means an Option not intended to qualify as an Incentive Stock
    Option.

 

    (z)  “Notice of Grant” means a
    written or electronic notice evidencing certain terms and
    conditions of an individual Award grant. The Notice of Grant is
    part of the Award Agreement.

 

    (aa) “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.

 

    (bb) “Operating Profit” means the
    Company’s or a business unit’s profit from operations
    but excluding any unusual items, determined in accordance with
    generally accepted accounting principles.

 

    (cc) “Option” means an Incentive Stock
    Option or a Nonstatutory Stock Option granted pursuant to the
    Plan.

 

    (dd) “Optionee” means the holder of an
    outstanding Option or Stock Purchase Right granted under the
    Plan.

 

    (ee) “Option Exchange Program” means a
    program whereby outstanding Options are surrendered or cancelled
    in exchange for the right to receive options of the same type,
    of a different type
    and/or cash
    pursuant to such terms as the Administrator may determine.

 

    (ff) “Optioned Stock” means the Common
    Stock subject to an Award.

 

    (gg) “Outside Director” means a Director
    who is not an Employee.

 

    (hh) “Parent” means a “parent
    corporation,” whether now or hereafter existing, as defined
    in Section 424(e) of the Code.

 

    (ii) “Participant” means the holder of an
    outstanding Award, which shall include an Optionee.

 

    (jj) “Performance Goals” means the goal(s)
    (or combined goal(s)) determined by the Committee (in its
    discretion) to be applicable to a Participant with respect to an
    Award. As determined by the Committee, the Performance Goals
    applicable to an Award may provide for a targeted level or
    levels of achievement using one or more of the following
    measures: (a) Annual Revenue, (b) Operating Profit,
    (c) Cash Flow from Operations, (d) Net Income,
    (e) Pro Forma Net Income, (f) Earnings Per Share, and
    (g) Return on Sales. The Performance Goals may differ from
    Participant to Participant and from Award to Award. Any criteria
    used may be (i) measured in absolute terms,
    (ii) measured in relative terms (including, but not limited
    to compared to another company or companies),
    (iii) measured against the performance of the Company as a
    whole or a segment of the Company
    and/or
    (iv) measured on a pre-tax or post-tax basis (if
    applicable).

 

    (kk) “Plan” means this 2005 Stock Plan, as
    amended.

 

    (ll) “Pro Forma Net Income” means as to
    any business unit for any Fiscal Year, the Controllable Profits
    of such business unit, minus allocations of designated corporate
    expenses.

 

    (mm) “Reload Option” means an Option that
    automatically is granted if a Participant pays the exercise
    price of an Option by tendering Shares.

 

    (nn) “Restricted Stock” means shares of
    Common Stock acquired pursuant to a grant of Stock Purchase
    Rights under Section 12 of the Plan.

 

    (oo) “Restricted Stock Purchase Agreement”
    means a written agreement between the Company and the Optionee
    evidencing the terms and restrictions applying to stock
    purchased under a Stock Purchase Right. The Restricted Stock
    Purchase Agreement is subject to the terms and conditions of the
    Plan and the Notice of Grant.

    

    3

 

    (pp) “Restricted Stock Unit” means an
    Award granted to a Participant pursuant to Section 14.

 

    (qq) “Retirement” means, in the case of an
    Employee or Director: (a) a Termination of Service
    occurring on or after age sixty-five (65), or (b) a
    Termination of Service occurring on or after age sixty
    (60) with at least ten (10) Years of Service. With
    respect to a Consultant, no Termination of Service shall be
    deemed to be on account of “Retirement.”

 

    (rr) “Return on Sales” means as to any
    Fiscal Year, the percentage equal to the Company’s Net
    Income or the business unit’s Pro Forma Net Income, divided
    by the Company’s or the business unit’s Annual
    Revenue, as applicable.

 

    (ss) “Rule 16b-3”
    means
    Rule 16b-3
    of the Exchange Act or any successor to
    Rule 16b-3,
    as in effect when discretion is being exercised with respect to
    the Plan.

 

    (tt) “Section 16(b)” means
    Section 16(b) of the Exchange Act.

 

    (uu) “Section 409A” means
    Section 409A of the Code and any proposed, temporary or
    final Treasury Regulations and Internal Revenue Service guidance
    thereunder, as each may be amended from time to time.

 

    (vv) “Service Provider” means an Employee,
    Director or Consultant.

 

    (ww) “Share” means a share of the Common
    Stock, as adjusted in accordance with Section 16 of the
    Plan.

 

    (xx) “Stock Appreciation Right” or
    “SAR” means an Award, granted alone or in
    connection with a related Option (either affiliated or tandem)
    that pursuant to Section 13 is designated as an SAR.

 

    (yy) “Stock Purchase Right” means the
    right to purchase Common Stock pursuant to Section 12 of
    the Plan, as evidenced by a Notice of Grant.

 

    (zz) “Subsidiary” means a “subsidiary
    corporation”, whether now or hereafter existing, as defined
    in Section 424(f) of the Code.

 

    (aaa) “Termination of Service” means
    (a) in the case of an Employee, a cessation of the
    employee-employer relationship between the Employee and the
    Company or an Affiliate for any reason, including, but not by
    way of limitation, a termination by resignation, discharge,
    death, Disability, Retirement, or the disaffiliation of an
    Affiliate, but excluding any such termination where there is a
    simultaneous re-employment or engagement as a consultant by the
    Company or an Affiliate; (b) in the case of a Consultant, a
    cessation of the service relationship between the Consultant and
    the Company or an Affiliate for any reason, including, but not
    by way of limitation, a termination by resignation, discharge,
    death, Disability, or the disaffiliation of an Affiliate, but
    excluding any such termination where there is a simultaneous
    employment as an Employee or re-engagement of the Consultant by
    the Company or an Affiliate; and (c) in the case of a
    Director, a cessation of the Director’s service on the
    Board for any reason, including, but not by way of limitation, a
    termination by resignation, death, Disability, Retirement or
    non-reelection to the Board, but excluding any such termination
    where there is a simultaneous employment as an Employee or
    engagement as a Consultant by the Company or an Affiliate.

 

    4.  Stock Subject to the Plan.

 

    (a)  Subject to the provisions of Section 16 of
    the Plan, the maximum aggregate number of Shares that may be
    optioned and sold under the Plan is
    114,000,000 Shares.1

    The Shares may be authorized, but unissued, or reacquired Common
    Stock.

 

    If an Award expires or becomes unexercisable without having been
    exercised in full, or is surrendered pursuant to an Option
    Exchange Program, the unpurchased Shares which were subject
    thereto shall become available for future grant or sale under
    the Plan (unless the Plan has terminated); provided,
    however, that Shares that have actually been issued under
    the Plan, whether upon exercise of an Option or Right, shall not
    be

 

 

    1 Includes

    58,000,000 Shares approved by the Company’s
    stockholders on May 14, 2008.

    

    4

 

    returned to the Plan and shall not become available for future
    distribution under the Plan, except that if Shares of Restricted
    Stock are repurchased by the Company at their original purchase
    price, such Shares shall become available for future grant under
    the Plan.

 

    (b)  Full Value Awards.  Any Shares
    subject to Restricted Stock, Restricted Stock Units, and Stock
    Purchase Rights granted on or after May 14, 2008 will be
    counted against the numerical limits of this Section 4 as
    one and
    78/100
    (1.78) Shares for every one (1) Share subject thereto.
    Further, if Shares acquired pursuant to any Restricted Stock,
    Restricted Stock Units, and Stock Purchase Rights granted on or
    after May 14, 2008 are forfeited or repurchased by the
    Company and would otherwise return to the Plan pursuant to this
    Section 4, one and 78/100 (1.78) times the number of Shares
    so forfeited or repurchased will return to the Plan and will
    again become available for issuance.

 

    5.  Administration of the Plan.

 

    (a)  Procedure.

 

    (i) Multiple Administrative Bodies.  The
    Plan may be administered by different Committees with respect to
    different groups of Service Providers.

 

    (ii) Section 162(m).  To the extent
    that the Administrator determines it to be desirable to qualify
    Awards granted hereunder as “performance-based
    compensation” within the meaning of Section 162(m) of
    the Code, the Plan shall be administered by a Committee of two
    or more “outside directors” within the meaning of
    Section 162(m) of the Code. For purposes of qualifying
    grants of Awards as “performance-based compensation”
    under Section 162(m) of the Code, the Committee, in its
    discretion, may set restrictions based upon the achievement of
    Performance Goals. The Performance Goals shall be set by the
    Committee on or before the latest date permissible to enable the
    Awards to qualify as “performance-based compensation”
    under Section 162(m) of the Code. In granting Awards that
    are intended to qualify under Section 162(m) of the Code,
    the Committee shall follow any procedures determined by it from
    time to time to be necessary or appropriate to ensure
    qualification of the Awards under Section 162(m) of the
    Code (e.g., in determining the Performance Goals).

 

    (iii) Rule 16b-3.  To
    the extent desirable to qualify transactions hereunder as exempt
    under
    Rule 16b-3,
    the transactions contemplated hereunder shall be structured to
    satisfy the requirements for exemption under
    Rule 16b-3.

 

    (iv) Other Administration.  Other than as
    provided above, the Plan shall be administered by (A) the
    Board or (B) a Committee, which committee shall be
    constituted to satisfy Applicable Laws.

 

    (b)  Powers of the
    Administrator.  Subject to the provisions of the
    Plan, and in the case of a Committee, subject to the specific
    duties delegated by the Board to such Committee, the
    Administrator shall have the authority, in its discretion:

 

    (i)  to determine the Fair Market Value;

 

    (ii) to select the Service Providers to whom Awards may be
    granted hereunder;

 

    (iii) to determine the number of shares of Common Stock to
    be covered by each Award granted hereunder;

 

    (iv) to approve forms of agreement for use under the Plan;

 

    (v)  to determine the terms and conditions, not
    inconsistent with the terms of the Plan, of any Award granted
    hereunder. Such terms and conditions include, but are not
    limited to, the exercise price, the time or times when Awards
    may be exercised (which may be based on performance criteria),
    any vesting acceleration or waiver of forfeiture restrictions,
    and any restriction or limitation regarding any Award or the
    Shares relating thereto, based in each case on such factors as
    the Administrator, in its sole discretion, shall determine;

 

    (vi) to construe and interpret the terms of the Plan and
    Awards granted pursuant to the Plan;

    

    5

 

    (vii) to prescribe, amend and rescind rules and regulations
    relating to the Plan, including rules and regulations relating
    to sub-plans established for the purpose of satisfying
    applicable foreign laws;

 

    (viii) to determine the form and manner in which
    Participants may designate beneficiaries of Awards in the event
    of the Participant’s death, including determining the
    Participants or classes of Participants who may designate
    beneficiaries with respect to any Award or type of Award;

 

    (ix) to modify or amend each Award (subject to
    Section 18(c) of the Plan), including the discretionary
    authority to extend the post-termination exercisability period
    of Options longer than is otherwise provided for in the Plan;

 

    (x)  to allow Optionees to satisfy withholding tax
    obligations by electing to have the Company withhold from the
    Shares to be issued upon exercise of an Award that number of
    Shares having a Fair Market Value equal to the minimum amount
    required to be withheld. The Fair Market Value of the Shares to
    be withheld shall be determined on the date that the amount of
    tax to be withheld is to be determined. All elections by an
    Optionee to have Shares withheld for this purpose shall be made
    in such form and under such conditions as the Administrator may
    deem necessary or advisable;

 

    (xi) to authorize any person to execute on behalf of the
    Company any instrument required to effect the grant of an Award
    previously granted by the Administrator;

 

    (xii) to commence a Section 409A Exchange Offer in
    connection with each Option that had a per share exercise price
    that was less than the fair market value of a share of the
    Company’s common stock, as determined for purposes of
    Section 409A, on the Option’s grant date and that was
    unvested, in whole or in part, as of December 31, 2004
    (notwithstanding Section 18(b) of the Plan), as described
    by Section 23 of the Plan;

 

    (xiii) to make all other determinations deemed necessary or
    advisable for administering the Plan.

 

    (c)  Additional Power of Administrator Requiring
    Stockholder Approval.  The Administrator shall
    have authority to take the following actions, but only if not
    otherwise prohibited by the provisions of the Plan and only if
    approval by the Company’s stockholders is obtained:

 

    (i)  reduce the exercise price of any Award to the
    then current Fair Market Value if the Fair Market Value of the
    Common Stock covered by such Award shall have declined since the
    date the Award was granted; provided, however, that the
    Administrator shall have the power to make adjustments in the
    exercise price of any Award pursuant to Section 16 without
    the necessity of obtaining stockholder approval;

 

    (ii) institute an Option Exchange Program to allow for the
    cancellation of an outstanding Option followed by its immediate
    replacement with a new Option with a lower exercise price, or
    with a different type of Award, cash or a combination thereof;
    provided, however, that the Administrator shall have the power
    to make adjustments in the exercise price of any Award pursuant
    to Section 16 without the necessity of obtaining
    stockholder approval; and

 

    (iii) institute any other program that would constitute a
    revaluation or repricing of Options; provided, however, that the
    Administrator shall have the power to make adjustments in the
    exercise price of any Award pursuant to Section 16 without
    the necessity of obtaining stockholder approval.

 

    (d) Effect of Administrator’s
    Decision.  The Administrator’s decisions,
    determinations and interpretations shall be final and binding on
    all Optionees and any other holders of Options or Stock Purchase
    Rights.

 

    6.  Eligibility.  Nonstatutory Stock
    Options, Stock Purchase Rights, Stock Appreciation Rights and
    Restricted Stock Units may be granted to Service Providers.
    Incentive Stock Options may be granted only to Employees.

    

    6

 

    7.  Limitations.

 

    (a)  Each Option shall be designated in the Award
    Agreement as either an Incentive Stock Option or a Nonstatutory
    Stock Option. However, notwithstanding such designation, to the
    extent that the aggregate Fair Market Value of the Shares with
    respect to which Incentive Stock Options are exercisable for the
    first time by the Optionee during any calendar year (under all
    plans of the Company and any Parent or Subsidiary) exceeds
    $100,000, such Options shall be treated as Nonstatutory Stock
    Options. For purposes of this Section 7(a), Incentive Stock
    Options shall be taken into account in the order in which they
    were granted. The Fair Market Value of the Shares shall be
    determined as of the time the Option with respect to such Shares
    is granted.

 

    (b)  Neither the Plan nor any Award shall confer upon
    an Optionee any right with respect to continuing the
    Optionee’s relationship as a Service Provider with the
    Company, nor shall they interfere in any way with the
    Optionee’s right or the Company’s right to terminate
    such relationship at any time, with or without cause.

 

    (c)  The following limitations shall apply to grants
    of Options, Stock Purchase Rights, Stock Appreciation Rights and
    Restricted Stock Units:

 

    (i)  No Service Provider shall be granted, in any
    fiscal year of the Company, Options, Stock Purchase Rights,
    Stock Appreciation Rights or Restricted Stock Units to purchase
    more than 5,000,000 Shares.

 

    (ii) In connection with his or her initial service, a
    Service Provider may be granted Options, Stock Purchase Rights,
    Stock Appreciation Rights or Restricted Stock Units to purchase
    up to an additional 5,000,000 Shares which shall not count
    against the limit set forth in subsection (i) above.

 

    (iii) The foregoing limitations shall be adjusted
    proportionately in connection with any change in the
    Company’s capitalization as described in Section 16.

 

    (iv) If an Option, Stock Purchase Rights, Stock
    Appreciation Rights or Restricted Stock Unit is cancelled in the
    same fiscal year of the Company in which it was granted (other
    than in connection with a transaction described in
    Section 16), the cancelled Option, Stock Purchase Rights,
    Stock Appreciation Rights or Restricted Stock Units will be
    counted against the limits set forth in subsections (i) and
    (ii) above. For this purpose, if the exercise price of an
    Option, Stock Purchase Rights, Stock Appreciation Rights or
    Restricted Stock Unit is reduced, the transaction will be
    treated as a cancellation of the Option, Stock Purchase Rights,
    Stock Appreciation Rights or Restricted Stock Units and the
    grant of a new Option, Stock Purchase Rights, Stock Appreciation
    Rights or Restricted Stock Units.

 

    8.  Term of Plan.  Subject to
    Section 22 of the Plan, the Plan shall become effective
    upon adoption by the Board and obtaining stockholder approval.
    The Plan amends and restates the previous 1996 Stock Plan. It
    shall continue in effect for a term of ten (10) years
    unless terminated earlier under Section 18 of the Plan.

 

    9.  Term of Option.  The term of each
    Option shall be stated in the Award Agreement; however, the term
    of an Option granted on or after April 9, 2008 shall be no
    longer than ten (10) years from the Grant Date or such
    shorter term as may be provided in the Award Agreement.
    Moreover, in the case of an Incentive Stock Option granted to an
    Optionee who, at the time the Incentive Stock Option is granted,
    owns stock representing more than ten percent (10%) of the total
    combined voting power of all classes of stock of the Company or
    any Parent or Subsidiary, the term of the Incentive Stock Option
    shall be five (5) years from the Grant Date or such shorter
    term as may be provided in the Award Agreement.

 

    10. Option Exercise Price and Consideration.

 

    (a)  Exercise Price.  The per share
    exercise price for the Shares to be issued pursuant to exercise
    of an Option shall be determined by the Administrator, subject
    to the following:

 

    (i)  In the case of an Incentive Stock Option

 

    (A)  granted to an Employee who, at the time the
    Incentive Stock Option is granted, owns stock representing more
    than ten percent (10%) of the voting power of all classes of
    stock of the

    

    7

 

    Company or any Parent or Subsidiary, the per Share exercise
    price shall be no less than 110% of the Fair Market Value per
    Share on the Grant Date.

 

    (B)  granted to any Employee other than an Employee
    described in paragraph (A) immediately above, the per Share
    exercise price shall be no less than 100% of the Fair Market
    Value per Share on the Grant Date.

 

    (ii) In the case of a Nonstatutory Stock Option granted on
    or after April 9, 2008, except as may be required by law to
    ensure favorable tax treatment in a
    non-U.S. jurisdiction,
    the per Share exercise price shall be no less than 100% of the
    Fair Market Value per share on the Grant Date . In the case of a
    Nonstatutory Stock Option intended to qualify as
    “performance-based compensation” within the meaning of
    Section 162(m) of the Code, the per Share exercise price
    shall be no less than 100% of the Fair Market Value per Share on
    the Grant Date.

 

    (iii) Notwithstanding the foregoing, Options may be granted
    with a per Share exercise price of less than 100% of the Fair
    Market Value per Share on the Grant Date pursuant to a merger or
    other corporate transaction.

 

    (b)  Waiting Period and Exercise
    Dates.  At the time an Option is granted, the
    Administrator shall fix the period within which the Option may
    be exercised and shall determine any conditions which must be
    satisfied before the Option may be exercised.

 

    (c)  Form of Consideration.  The
    Administrator shall determine the acceptable form of
    consideration for exercising an Option, including the method of
    payment. In the case of an Incentive Stock Option, the
    Administrator shall determine the acceptable form of
    consideration at the time of grant. Such consideration may
    consist entirely of:

 

    (i)  cash;

 

    (ii) check;

 

    (iii) other Shares, which in the case of Shares acquired
    directly or indirectly from the Company, (A) have been
    vested and owned by the Optionee for more than six months on the
    date of surrender, and (B) have a Fair Market Value on the
    date of surrender equal to the aggregate exercise price of the
    Shares as to which said Option shall be exercised;

 

    (iv) consideration received by the Company under a cashless
    exercise program implemented by the Company in connection with
    the Plan;

 

    (v)  a reduction in the amount of any Company
    liability to the Optionee, including any liability attributable
    to the Optionee’s participation in any Company-sponsored
    deferred compensation program or arrangement;

 

    (vi) any combination of the foregoing methods of
    payment; or

 

    (vii) such other consideration and method of payment for
    the issuance of Shares to the extent permitted by Applicable
    Laws.

 

    11. Exercise of Option.

 

    (a)  Procedure for Exercise; Rights as a
    Shareholder.  Any Option granted hereunder shall
    be exercisable according to the terms of the Plan and at such
    times and under such conditions as determined by the
    Administrator and set forth in the Award Agreement. Except for
    options granted prior to October 11, 1996, or unless the
    Administrator provides otherwise, vesting of Options granted
    hereunder shall be suspended during any unpaid leave of absence.
    An Option may not be exercised for a fraction of a Share.

 

    An Option shall be deemed exercised when the Company receives:
    (i) written or electronic notice of exercise (in accordance
    with the Award Agreement) from the person entitled to exercise
    the Option, and (ii) full payment for the Shares with
    respect to which the Option is exercised. Full payment may
    consist of any consideration and method of payment authorized by
    the Administrator and permitted by the Award

    

    8

 

    Agreement and the Plan. Shares issued upon exercise of an Option
    shall be issued in the name of the Optionee or, if requested by
    the Optionee, in the name of the Optionee and his or her spouse.
    Until the Shares are issued (as evidenced by the appropriate
    entry on the books of the Company or of a duly authorized
    transfer agent of the Company), no right to vote or receive
    dividends or any other rights as a shareholder shall exist with
    respect to the Optioned Stock, notwithstanding the exercise of
    the Option. The Company shall issue (or cause to be issued) such
    Shares promptly after the Option is exercised. No adjustment
    will be made for a dividend or other right for which the record
    date is prior to the date the Shares are issued, except as
    provided in Section 16 of the Plan.

 

    Exercising an Option in any manner shall decrease the number of
    Shares thereafter available, both for purposes of the Plan and
    for sale under the Option, by the number of Shares as to which
    the Option is exercised.

 

    (b)  Termination of Relationship as a Service
    Provider.  If an Optionee ceases to be a Service
    Provider, other than upon the Optionee’s death or
    Disability, the Optionee may exercise his or her Option within
    such period of time as is specified in the Award Agreement to
    the extent that the Option is vested on the date of termination
    (but in no event later than the expiration of the term of such
    Option as set forth in the Award Agreement). In the absence of a
    specified time in the Award Agreement, the Option shall remain
    exercisable for three (3) months following the
    Optionee’s termination. If, on the date of termination, the
    Optionee is not vested as to his or her entire Option, the
    Shares covered by the unvested portion of the Option shall
    revert to the Plan. If, after termination, the Optionee does not
    exercise his or her Option within the time specified by the
    Administrator, the Option shall terminate, and the Shares
    covered by such Option shall revert to the Plan.

 

    (c)  Disability of Optionee.  If an
    Optionee ceases to be a Service Provider as a result of the
    Optionee’s Disability, the Optionee may exercise his or her
    Option within such period of time as is specified in the Award
    Agreement to the extent the Option is vested on the date of
    termination (but in no event later than the expiration of the
    term of such Option as set forth in the Award Agreement). In the
    absence of a specified time in the Award Agreement, the Option
    shall remain exercisable for twelve (12) months following
    the Optionee’s termination. If, on the date of termination,
    the Optionee is not vested as to his or her entire Option, the
    Shares covered by the unvested portion of the Option shall
    revert to the Plan. If, after termination, the Optionee does not
    exercise his or her Option within the time specified herein, the
    Option shall terminate, and the Shares covered by such Option
    shall revert to the Plan.

 

    (d)  Death of Optionee.  If an
    Optionee dies while a Service Provider, the Option may be
    exercised following the Optionee’s death within such period
    of time as is specified in the Award Agreement to the extent the
    Option is vested on the date of death (but in no event later
    than the expiration of the term of such Option as set forth in
    the Award Agreement), by the Optionee’s designated
    beneficiary, provided such beneficiary has been designated prior
    to Optionee’s death in a form and manner acceptable to the
    Administrator, pursuant to Section 5(b)(viii). If no
    beneficiary has been designated by the Optionee in a form and
    manner acceptable to the Administrator, then such Option may be
    exercised by the personal representative of the Optionee’s
    estate or in the event no administration of the Optionee’s
    estate is required, then by the
    successor-in-interest
    to whom the Option is transferred pursuant to the
    Optionee’s will or in accordance with the laws of descent
    and distribution, as the case may be. In the absence of a
    specified time in the Award Agreement, the Option shall remain
    exercisable for twelve (12) months following the
    Optionee’s death. If, at the time of death, the Optionee is
    not vested as to his or her entire Option, the Shares covered by
    the unvested portion of the Option shall immediately revert to
    the Plan. If the Option is not so exercised within the time
    specified herein, the Option shall terminate, and the Shares
    covered by such Option shall revert to the Plan.

 

    12. Stock Purchase Rights.

 

    (a)  Rights to Purchase.  Stock
    Purchase Rights may be issued either alone, in addition to, or
    in tandem with other awards granted under the Plan
    and/or cash
    awards made outside of the Plan. After the Administrator
    determines that it will offer Stock Purchase Rights under the
    Plan, it shall advise the offeree in writing or electronically,
    by means of a Notice of Grant, of the terms, conditions and
    restrictions related to the offer, including the number of
    Shares that the offeree shall be entitled to purchase, the price
    to be paid, and the time within which the offeree must accept
    such offer. The offer shall be accepted by execution of a
    Restricted Stock Purchase Agreement in the form determined by
    the Administrator.

    

    9

 

    (b)  Number of Shares.  The
    Administrator shall have complete discretion to determine the
    number of Stock Purchase Rights granted to any Participant,
    provided that during any Fiscal Year, no Participant shall be
    granted Stock Purchase Rights covering more than
    5,000,000 Shares, unless in connection with his or her
    initial service as described in Section 7(c)(ii).

 

    (c)  Repurchase Option.  Unless the
    Administrator determines otherwise, the Restricted Stock
    Purchase Agreement shall grant the Company a repurchase option
    exercisable upon the voluntary or involuntary termination of the
    purchaser’s service with the Company for any reason
    (including death or Disability). The purchase price for Shares
    repurchased pursuant to the Restricted Stock Purchase Agreement
    shall be the original price paid by the purchaser and may be
    paid by cancellation of any indebtedness of the purchaser to the
    Company. The repurchase option shall lapse at a rate determined
    by the Administrator.

 

    (d)  Other Provisions.  The
    Restricted Stock Purchase Agreement shall contain such other
    terms, provisions and conditions not inconsistent with the Plan
    as may be determined by the Administrator in its sole discretion.

 

    (e)  Rights as a Shareholder.  Once
    the Stock Purchase Right is exercised, the purchaser shall have
    the rights equivalent to those of a shareholder, and shall be a
    shareholder when his or her purchase is entered upon the records
    of the duly authorized transfer agent of the Company. No
    adjustment will be made for a dividend or other right for which
    the record date is prior to the date the Stock Purchase Right is
    exercised, except as provided in Section 16 of the Plan.

 

    (f)  Death of Participant.  

 

    (i)  Exercise of Stock Purchase
    Right.  If a Participant dies while a Service
    Provider, the Stock Purchase Right may be exercised following
    the Participant’s death within such period of time as is
    specified in the Award Agreement to the extent the Stock
    Purchase Right is vested on the date of death (but in no event
    later than the expiration date set forth in the Award
    Agreement), by the Participant’s designated beneficiary,
    provided such beneficiary has been designated prior to
    Participant’s death in a form and manner acceptable to the
    Administrator, pursuant to Section 5(b)(viii). If no
    beneficiary has been designated by the Participant in a form and
    manner acceptable to the Administrator, then such Stock Purchase
    Right may be exercised by the personal representative of the
    Participant’s estate or in the event no administration of
    the Participant’s estate is required, then by the
    successor-in-interest
    to whom the Stock Purchase Right is transferred pursuant to the
    Participant’s will or in accordance with the laws of
    descent and distribution, as the case may be. If, at the time of
    death, the Participant is not vested as to his or her entire
    Stock Purchase Right, the Shares covered by the unvested portion
    of the Stock Purchase Right shall immediately revert to the
    Plan. If the Stock Purchase Right is not so exercised within the
    time as specified in the Award Agreement, the Stock Purchase
    Right shall terminate, and the Shares covered by such Stock
    Purchase Right shall revert to the Plan.

 

    (ii) Release from Escrow.  If a
    Participant dies while a Service Provider, any Shares subject to
    a Stock Purchase Right (A) that have been released from the
    Company’s repurchase option or for which the Company’s
    repurchase option expires or has expired unexercised, and
    (B) that are not yet released from escrow, shall be issued,
    and certificates evidencing such released Shares shall be
    delivered, to the Participant’s designated beneficiary,
    provided such beneficiary has been designated prior to
    Participant’s death in a form and manner acceptable to the
    Administrator, pursuant to Section 5(b)(viii). If no
    beneficiary has been designated by the Participant in a form and
    manner acceptable to the Administrator, then such Shares shall
    be transferred to the personal representative of the
    Participant’s estate or in the event no administration of
    the Participant’s estate is required, then to the
    successor-in-interest
    pursuant to the Participant’s will or in accordance with
    the laws of descent and distribution, as the case may be.

 

    13. Stock Appreciation Rights.

 

    (a)  Grant of SARs.  Subject to the
    terms and conditions of the Plan, a SAR may be granted to
    Employees and Consultants at any time and from time to time as
    shall be determined by the Administrator, in its

    

    10

 

    sole discretion. The Administrator may grant affiliated SARs,
    freestanding SARs, tandem SARs, or any combination thereof.

 

    (i)  Number of Shares.  The
    Administrator shall have complete discretion to determine the
    number of SARs granted to any Participant, provided that during
    any Fiscal Year, no Participant shall be granted SARs covering
    more than 5,000,000 Shares, unless in connection with his
    or her initial service as described in Section 7(c)(ii).

 

    (ii) Exercise Price and Other Terms.  The
    Administrator, subject to the provisions of the Plan, shall have
    complete discretion to determine the terms and conditions of
    SARs granted under the Plan. However, except as may be required
    by law to ensure favorable tax treatment in a
    non-U.S. jurisdiction,
    the exercise price of a freestanding SAR shall be not less than
    one hundred percent (100%) of the Fair Market Value of a Share
    on the Grant Date. The exercise price of tandem or affiliated
    SARs shall equal the Exercise Price of the related Option.

 

    (b)  Exercise of Tandem SARs.  Tandem
    SARs may be exercised for all or part of the Shares subject to
    the related Option upon the surrender of the right to exercise
    the equivalent portion of the related Option. A tandem SAR may
    be exercised only with respect to the Shares for which its
    related Option is then exercisable. With respect to a tandem SAR
    granted in connection with an Incentive Stock Option:
    (a) the tandem SAR shall expire no later than the
    expiration of the underlying Incentive Stock Option;
    (b) the value of the payout with respect to the tandem SAR
    shall be for no more than one hundred percent (100%) of the
    difference between the Exercise Price of the underlying
    Incentive Stock Option and the Fair Market Value of the Shares
    subject to the underlying Incentive Stock Option at the time the
    tandem SAR is exercised; and (c) the tandem SAR shall be
    exercisable only when the Fair Market Value of the Shares
    subject to the Incentive Stock Option exceeds the Exercise Price
    of the Incentive Stock Option.

 

    (c)  Exercise of Affiliated SARs.  An
    affiliated SAR shall be deemed to be exercised upon the exercise
    of the related Option. The deemed exercise of an affiliated SAR
    shall not necessitate a reduction in the number of Shares
    subject to the related Option.

 

    (d)  Exercise of Freestanding
    SARs.  Freestanding SARs shall be exercisable on
    such terms and conditions as the Administrator, in its sole
    discretion, shall determine.

 

    (e)  SAR Agreement.  Each SAR grant
    shall be evidenced by an Award Agreement that shall specify the
    exercise price, the term of the SAR, the conditions of exercise,
    and such other terms and conditions as the Administrator, in its
    sole discretion, shall determine.

 

    (f)  Expiration of SARs.  An SAR
    granted under the Plan shall expire upon the date determined by
    the Administrator, in its sole discretion, and set forth in the
    Award Agreement; however, an SAR granted on or after
    April 9, 2008 shall expire no later than ten
    (10) years from the Grant Date. Notwithstanding the
    foregoing, the rules of Section 11 also shall apply to SARs.

 

    (g)  Payment of SAR Amount.  Upon
    exercise of an SAR, a Participant shall be entitled to receive
    payment from the Company in an amount determined by multiplying:

 

    (i)  The difference between the Fair Market Value of a
    Share on the date of exercise over the exercise price; times

 

    (ii) The number of Shares with respect to which the SAR is
    exercised.

 

    At the discretion of the Administrator, the payment upon SAR
    exercise may be in cash, in Shares of equivalent value, or in
    some combination thereof. For purposes of Section 4 of the
    Plan, the reduction in Shares available for future issuance upon
    the grant of the SAR will be determined at the Grant Date based
    on the full number of Shares subject to the SAR. Upon settlement
    of the SAR, there will be no further reduction in Shares
    available for future issuance under Section 4 of the Plan.
    Upon the forfeiture of all or a portion of the SAR, the
    forfeited Shares shall be returned to the Shares available for
    future issuance under Section 4 of the Plan. For avoidance
    of doubt, upon settlement of an SAR, Shares will not be returned
    to the Shares available for future issuance under Section 4
    of the Plan, notwithstanding the fact that if Shares are issued
    in settlement of an SAR they will be issued only based on the
    difference between the Fair Market Value of a Share on the date
    of exercise over the exercise price.

    

    11

 

    14. Restricted Stock Units.

 

    (a)  Grant of Restricted Stock
    Units.  Restricted Stock Units may be granted to
    Service Providers at any time and from time to time, as will be
    determined by the Administrator, in its sole discretion.

 

    (b)  Number of Shares.  The
    Administrator will have complete discretion in determining the
    number of Restricted Stock Units granted to each Participant,
    provided that during any Fiscal Year, no Participant shall be
    granted Restricted Stock Units covering more than
    5,000,000 Shares, unless in connection with his or her
    initial service as described in Section 7(c)(ii).

 

    (c)  Value of Restricted Stock
    Units.  Each Restricted Stock Unit will have an
    initial value that is established by the Administrator on or
    before the Grant Date.

 

    (d)  Performance Goals and Other
    Terms.  The Administrator will set Performance
    Goals or other vesting provisions (including, without
    limitation, continued status as a Service Provider) in its
    discretion which, depending on the extent to which they are met,
    will determine the number or value of Restricted Stock Units
    that will be paid out to the Service Providers. The time period
    during which the Performance Goals or other vesting provisions
    must be met will be called the “Performance Period.”
    Each award of Restricted Stock Units will be evidenced by an
    Award Agreement that will specify the Performance Period, and
    such other terms and conditions as the Administrator, in its
    sole discretion, will determine. The Administrator may set
    Performance Goals based upon the achievement of Company-wide,
    divisional, or individual goals, applicable federal or state
    securities laws, or any other basis determined by the
    Administrator in its discretion.

 

    (e)  Duration of Performance
    Periods.  The Administrator will set the length of
    time for a Performance Period, subject to the following limits:

 

    (i)  The Performance Period related to Restricted
    Stock Units with Performance Goals shall not be less than one
    (1) year; and

 

    (ii) The Performance Period related to Restricted Stock
    Units with time-based vesting provisions shall not be less than
    three (3) years;

 

    provided, however, that up to five percent (5%) of the shares
    currently authorized for grant under the Plan may be subject to
    Restricted Stock Units without such limits on the length of the
    Performance Period.

 

    (f)  Earning of Restricted Stock
    Units.  After the applicable Performance Period
    has ended, the holder of Restricted Stock Units will be entitled
    to receive a payout of the number of Restricted Stock Units
    earned by the Participant over the Performance Period, to be
    determined as a function of the extent to which the
    corresponding Performance Goals or other vesting provisions have
    been achieved. After the grant of a Restricted Stock Units, the
    Administrator shall not reduce or waive any Performance Goals or
    other vesting provisions for such Restricted Stock Unit;
    provided, however, that the Administrator, in its sole
    discretion, may reduce or waive any Performance Goals or other
    vesting provisions for such Restricted Stock Unit in the event
    of a Participant’s death, Disability, or Retirement, or in
    the event of the sale of substantially all of the assets of the
    Company, or a merger of the Company with or into another entity
    pursuant to which the stockholders of the Company before such
    transaction do not retain, directly or indirectly, at least a
    majority of the beneficial interest in the voting stock of the
    Company after such transaction.

 

    (g)  Form and Timing of Payment of Restricted Stock
    Units.  Payment of earned Restricted Stock Units
    will be made as soon as practicable after the expiration of the
    applicable Performance Period. The Administrator, in its sole
    discretion, may pay earned Restricted Stock Units in the form of
    cash, in Shares (which have an aggregate Fair Market Value equal
    to the value of the earned Restricted Stock Units at the close
    of the applicable Performance Period) or in a combination
    thereof.

 

    (h)  Cancellation of Restricted Stock
    Units.  On the date set forth in the Award
    Agreement, all unearned or unvested Restricted Stock Units will
    be forfeited to the Company, and again will be available for
    grant under the Plan.

 

    (i)  Death of Participant.  If a
    Participant dies while a Service Provider, any earned Restricted
    Stock Units that have not yet been paid shall be paid to the
    Participant’s designated beneficiary, provided such
    beneficiary has been designated prior to the Participant’s
    death in a form and manner acceptable to the

    

    12

 

    Administrator, pursuant to Section 5(b)(viii). If no
    beneficiary has been designated by the Participant in a form and
    manner acceptable to the Administrator, then such earned
    Restricted Stock Units shall be paid to the personal
    representative of the Participant’s estate or in the event
    no administration of the Participant’s estate is required,
    then to the
    successor-in-interest
    pursuant to the Participant’s will or in accordance with
    the laws of descent and distribution, as the case may be. If, at
    the time of death, the Participant holds any Restricted Stock
    Units that are not yet earned, the unearned Restricted Stock
    Units shall be forfeited to the Company, and again shall be
    available for grant under the Plan.

 

    15. Non-Transferability of Awards.  Unless
    determined otherwise by the Administrator and except as set
    forth in Sections 11(d), 12(f), 13(f) and 14(i), an Award
    may not be sold, pledged, assigned, hypothecated, transferred,
    or disposed of in any manner other than by will or by the laws
    of descent or distribution and may be exercised, during the
    lifetime of the Optionee, only by the Optionee. If the
    Administrator makes an Award transferable, such Award shall
    contain such additional terms and conditions as the
    Administrator deems appropriate.

 

    16. Adjustments Upon Changes in Capitalization,
    Dissolution or Liquidation, Merger or Asset Sale.

 

    (a)  Changes in
    Capitalization.  Subject to any required action by
    the stockholders of the Company, the number and class of Shares
    that may be delivered under the Plan
    and/or the
    number, class, and price of Shares covered by each outstanding
    Award, and the numerical Share limits in Sections 4, 7, 13
    and 14 of the Plan, shall be proportionately adjusted for any
    increase or decrease in the number of issued Shares resulting
    from a stock split, reverse stock split, stock dividend,
    combination or reclassification of the Shares, or any other
    increase or decrease in the number of issued Shares effected
    without receipt of consideration by the Company; provided,
    however, that conversion of any convertible securities of the
    Company shall not be deemed to have been “effected without
    receipt of consideration.” Such adjustment shall be made by
    the Board, whose determination in that respect shall be final,
    binding and conclusive. Except as expressly provided herein, no
    issuance by the Company of shares of stock of any class, or
    securities convertible into shares of stock of any class, shall
    affect, and no adjustment by reason thereof shall be made with
    respect to, the number or price of Shares subject to an Award.

 

    (b)  Dissolution or Liquidation.  In
    the event of the proposed dissolution or liquidation of the
    Company, the Administrator shall notify each Participant as soon
    as practicable prior to the effective date of such proposed
    transaction. The Administrator in its discretion may provide for
    a Participant to have the right to exercise his or her Award
    until ten (10) days prior to such transaction as to all of
    the Optioned Stock covered thereby, including Shares as to which
    the Award would not otherwise be exercisable. In addition, the
    Administrator may provide that any Company repurchase option
    applicable to any Shares purchased upon exercise of an Award
    shall lapse as to all such Shares, provided the proposed
    dissolution or liquidation takes place at the time and in the
    manner contemplated. To the extent it has not been previously
    exercised, an Award will terminate immediately prior to the
    consummation of such proposed action. Notwithstanding anything
    in this Section 16(b) to the contrary, for Awards granted
    on or after August 14, 2008, that may be considered
    “deferred compensation” within the meaning of Section
    409A, the payment of any Awards that accelerate in accordance
    with this Section 16(b) nevertheless will be made at the
    same time or times as if such Awards had vested in accordance
    with the vesting provisions applicable to such Awards unless
    otherwise determined by the Administrator.

 

    (c)  Merger or Asset Sale.  For
    Awards granted prior to August 14, 2008, in the event of a
    merger of the Company with or into another corporation, or the
    sale of substantially all of the assets of the Company, each
    outstanding Award shall be assumed or an equivalent option or
    right substituted by the successor corporation or a Parent or
    Subsidiary of the successor corporation. For Awards granted on
    or after August 14, 2008, in the event of (i) a merger
    of the Company with or into another corporation, other than a
    merger which would result in the voting securities of the
    Company outstanding immediately prior thereto continuing to
    represent (either by remaining outstanding or by being converted
    into voting securities of the surviving entity or its Parent) at
    least fifty percent (50%) of the total voting power represented
    by the voting securities of the Company or such surviving entity
    or its Parent outstanding immediately after such merger or
    (ii) the sale of substantially all of the assets of the
    Company, each outstanding Award shall be assumed or an
    equivalent option or right substituted by the successor
    corporation or a Parent or Subsidiary of the successor
    corporation. In the event that the successor corporation refuses
    to assume or substitute for the Award (whether granted prior to,
    on or after August 14, 2008), the Participant will fully
    vest in and have the right to exercise all of his or her
    outstanding Options and Stock Appreciation Rights, including
    Shares as to which such Awards would not otherwise be vested or
    exercisable, all restrictions on Restricted Stock will lapse,
    and,

    

    13

 

    with respect to Restricted Stock Units, all Performance Goals or
    other vesting criteria will be deemed achieved at target levels
    and all other terms and conditions met. In addition, if an
    Option or Stock Appreciation Right becomes fully vested and
    exercisable in lieu of assumption or substitution in the event
    of a merger or sale of assets, the Administrator will notify the
    Participant in writing or electronically that the Option or
    Stock Appreciation Right will be fully vested and exercisable
    for a period of 15 days from the date of such notice, and
    the Option or Stock Appreciation Right will terminate upon the
    expiration of such period.

 

    For the purposes of this paragraph, the Award shall be
    considered assumed if, following the merger or sale of assets,
    the Award confers the right to purchase or receive, for each
    Share subject to the Award immediately prior to the merger or
    sale of assets, the consideration (whether stock, cash, or other
    securities or property) or, in the case of a Stock Appreciation
    Right upon the exercise of which the Administrator determines to
    pay cash or a Restricted Stock Unit which the Administrator can
    determine to pay in cash, the fair market value of the
    consideration received in the merger or sale of assets by
    holders of Common Stock for each Share held on the effective
    date of the transaction (and if holders were offered a choice of
    consideration, the type of consideration chosen by the holders
    of a majority of the outstanding Shares); provided, however,
    that if such consideration received in the merger or sale of
    assets is not solely common stock of the successor corporation
    or its Parent, the Administrator may, with the consent of the
    successor corporation, provide for the consideration to be
    received upon the exercise of an Option or Stock Appreciation
    Right or upon the payout of a Restricted Stock Unit, for each
    Share subject to such Award (or in the case of Restricted Stock
    Units, the number of implied shares determined by dividing the
    value of the Restricted Stock Units by the per Share
    consideration received by holders of Common Stock in the merger
    or sale of assets), to be solely common stock of the successor
    corporation or its Parent equal in fair market value to the per
    Share consideration received by holders of Common Stock in the
    merger or sale of assets.

 

    Notwithstanding anything in this Section 16(c) to the
    contrary, an Award that vests, is earned or paid-out upon the
    satisfaction of one or more Performance Goals will not be
    considered assumed if the Company or its successor modifies any
    of such Performance Goals without the Participant’s
    consent; provided, however, a modification to such Performance
    Goals only to reflect the successor corporation’s corporate
    structure post-merger or post-sale of assets will not be deemed
    to invalidate an otherwise valid Award assumption.

 

    17. Date of Grant.  The Grant Date of an
    Award shall be, for all purposes, the date on which the
    Administrator makes the determination granting such Award, or
    such other later date as is determined by the Administrator.
    Notice of the determination shall be provided to each Optionee
    within a reasonable time after the date of such grant.

 

    18. Amendment and Termination of the Plan.

 

    (a)  Amendment and Termination.  The
    Board may at any time amend, alter, suspend or terminate the
    Plan.

 

    (b)  Shareholder Approval.  The
    Company shall obtain shareholder approval of any Plan amendment
    to the extent necessary and desirable to comply with Applicable
    Laws, and to adopt material Plan amendments, including:

 

    (i)  A material increase in benefits accrued to
    Participants under the Plan;

 

    (ii) An increase in the number of shares that may be
    optioned or sold under the Plan;

 

    (iii) A material modification (expansion or reduction) of
    the class of participants in the Plan; or

 

    (iv) A provision permitting the Administrator to lapse or
    waive restrictions on Awards at its discretion.

 

    (c)  Effect of Amendment or
    Termination.  No amendment, alteration, suspension
    or termination of the Plan shall impair the rights of any
    Optionee, unless mutually agreed otherwise between the Optionee
    and the Administrator, which agreement must be in writing and
    signed by the Optionee and the Company.

    

    14

 

    Termination of the Plan shall not affect the
    Administrator’s ability to exercise the powers granted to
    it hereunder with respect to Options granted under the Plan
    prior to the date of such termination.

 

    19. Conditions Upon Issuance of Shares.

 

    (a)  Legal Compliance.  Shares shall
    not be issued pursuant to the exercise of an Award unless the
    exercise of such Award and the issuance and delivery of such
    Shares shall comply with Applicable Laws and shall be further
    subject to the approval of counsel for the Company with respect
    to such compliance.

 

    (b)  Investment Representations.  As
    a condition to the exercise of an Award, the Company may require
    the person exercising such Award to represent and warrant at the
    time of any such exercise that the Shares are being purchased
    only for investment and without any present intention to sell or
    distribute such Shares if, in the opinion of counsel for the
    Company, such a representation is required.

 

    20. Inability to Obtain Authority.  The
    inability of the Company to obtain authority from any regulatory
    body having jurisdiction, which authority is deemed by the
    Company’s counsel to be necessary to the lawful issuance
    and sale of any Shares hereunder, shall relieve the Company of
    any liability in respect of the failure to issue or sell such
    Shares as to which such requisite authority shall not have been
    obtained.

 

    21. Reservation of Shares.  The Company,
    during the term of this Plan, will at all times reserve and keep
    available such number of Shares as shall be sufficient to
    satisfy the requirements of the Plan.

 

    22. Shareholder Approval.  The Plan shall
    be subject to approval by the shareholders of the Company within
    twelve (12) months after the date the Plan is adopted. Such
    shareholder approval shall be obtained in the manner and to the
    degree required under Applicable Laws.

 

    23. Section 409A Exchange Offer.  The
    Administrator, may in its sole discretion, offer to each
    Optionee who holds an Option with an original Grant Date
    Exercise Price that was less than the original Grant Date fair
    market value, as determined for purposes of Section 409A,
    (each a “Discount Option”) one or more of the
    following choices with respect to the portion of such Discount
    Option that was unvested on December 31, 2004 (such portion
    is referred to as the “Eligible Discount Option”):

 

    (a)  If Optionee exercised any Eligible Discount
    Option (or portion thereof) in 2006, then Optionee may elect to
    amend the eligible portion of each Eligible Discount Option such
    that the Exercise Price of the Option will be increased to the
    fair market value, as determined for purposes of
    Section 409A, of a share of the Company’s Common Stock
    on the Option’s grant date.

 

    (b)  If Optionee was granted an Eligible Discount
    Option, but did not exercise any Eligible Discount Option in
    2006, then Optionee may be given one or more of the following
    choices:

 

    (i)  Optionee may elect to amend each Eligible
    Discount Option to change the option expiration date identified
    in the original grant agreement to a date that is expected to
    constitute a fixed calendar year election for purposes of
    Section 409A (the Administrator will have the discretion to
    choose to allow Optionees to pick different calendar years for
    different portions of each Eligible Discount Option); and/or

 

    (ii) Optionee may elect to amend the eligible portion of
    each Eligible Discount Option such that the Exercise Price of
    the Option will be increased to the fair market value, as
    determined for purposes of Section 409A, of a share of the
    Company’s Common Stock on the Option’s grant date.

 

    24. Underwater Option Exchange Offer.  The
    Administrator, in its sole discretion, may institute a one-time
    Option Exchange Program, commencing within 12 months
    following approval of such Option Exchange Program by the
    Company’s stockholders, that permits each eligible Optionee
    who holds an Option with an Exercise Price per Share greater
    than the trailing 52-week high price of the Common Stock as of
    the commencement of the Option Exchange Program to elect to
    cancel such Option in exchange for a new Award issued under the
    Plan, as described in the proxy statement with respect to the
    Company’s 2009 Annual Meeting of Stockholders.

    

    15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00159-of-00352.parquet"}]]