Document:

Exhibit103SVB-UKSubPlan to 2006Plan-CSOP

Exhibit 10.3

SVB FINANCIAL GROUP
UK SUB-PLAN OF THE
2006 EQUITY INCENTIVE PLAN
Adopted by SVB Financial Group on January 8, 2014.
Approved by Her Majesty’s Revenue & Customs on April 4, 2014 under reference: X110883. 

		
	1.
	INTRODUCTION

		
	1.1
	The Administrator (as defined under the Plan) has established this U.K. Sub-plan (the “U.K. Sub-plan”) of the SVB Financial Group 2006 Equity Incentive Plan (as may be amended or restated from time to time) (the “Plan”) pursuant to Section 4(b)(v) of the Plan for the purpose of granting Approved Options (as defined in Rule 1.4 below) to employees of SVB Financial Group and its Subsidiaries (as defined in Rule 2 below), who are or may be subject to United Kingdom taxation, in a tax efficient manner.  For the avoidance of doubt, the terms of the Plan (insofar as they have not been replaced or modified by these Rules (as defined in Rule 2 below)) shall form part of the U.K. Sub-plan.

		
	1.2
	The U.K. Sub-plan is intended to qualify as a CSOP Scheme (as defined in Rule 2 below).  The Company makes no undertaking nor representation that the U.K. Sub-plan will continue to qualify as a CSOP Scheme.  

		
	1.3
	Where the Administrator wishes to grant Approved Options to Employees (as defined in Rule 2 below) in the United Kingdom, such Approved Options may be granted subject to and in accordance with the Rules of this U.K. Sub-plan.  In the event of any conflict between the Plan and the U.K. Sub-plan, the U.K. Sub-plan will prevail.  This will not preclude the Administrator from also granting other Awards (as defined in the Plan), including Options (as defined in the Plan) which are not subject to this U.K. Sub-plan, to an Employee under the provisions of the Plan. 

		
	1.4
	Options granted under the U.K. Sub-plan shall be referred to as “Approved Options.” Only Approved Options, a type of Nonstatutory Stock Option, may be granted under the U.K. Sub-plan and accordingly references in the Plan to Incentive Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Restricted Stock Units, Performance Shares, Performance Units, and Full Value Awards (as those terms are defined in the Plan), and any other type of stock or cash based Award referred to in the Plan, shall be disregarded for the purposes of the U.K. Sub-plan. 

		
	1.5
	The provisions of the U.K. Sub-plan shall only apply to Approved Options granted under the U.K. Sub-plan.

		
	1.6
	The endnotes contained in the U.K. Sub-plan are provided for information purposes only.

		
	2.
	DEFINITIONS (SECTION 2 OF THE PLAN)

		
	2.1
	Unless defined herein, capitalized words or phrases shall have the meaning given to them in the Plan.  For the purposes of the U.K. Sub-plan:

		
	(a)
	“Control” has the meaning given by section 995i of the (U.K.) Income Tax Act 1997.  

		
	(b)
	“CSOP Scheme” means a company share option plan scheme approved by HMRC pursuant to Schedule 4.

Exhibit 10.3

		
	(c)
	“Employee” means (i) any person employed by the Company or any Subsidiary (other than a director), and (ii) any “full-time” director of the Company or any Subsidiary, being a director required to work at least 25 hours or more per week (excluding meal breaks).

		
	(d)
	“Fair Market Value” means, as at any date, the value of a Share determined as follows:

		
	(i)
	if the Shares are listed on NASDAQ, the closing sale price for the Shares for the applicable date (or, if the applicable date is not a trading day, the next preceding date which is a trading day); or

		
	(ii)
	if the Shares are not so listed, the fair market value shall be determined by the Administrator in good faith in accordance with the provisions of Part VIII of the Taxation of Chargeable Gains Act 1992 and agreed in advance for the purposes of the U.K. Sub-plan with HMRC Shares and Assets Valuation,

in either case determined without regard to the effect of any restrictions that may apply to the Shares within the meaning of paragraph 36(3)ii of Schedule 4.
		
	(e)
	“HMRC” means Her Majesty’s Revenue & Customs.

		
	(f)
	“Optionee” means an Employee who receives an Approved Option.

		
	(g)
	“Rules” means the rules of this U.K. Sub-plan.

		
	(h)
	“Schedule 4” means Schedule 4 to the (U.K.) Income Tax (Earnings and Pensions) Act 2003.

		
	(i)
	“Share” means a share of the Company’s Common Stock which satisfies the conditions of paragraphs 16 to 18 (inclusive) and paragraph 20iii of Schedule 4 at all material times.

		
	(j)
	“Subsidiary” means any company over which the Company has Control and which meets the definition of Subsidiary or Affiliate in the Plan.

		
	(k)
	“Subsisting Option” means an Approved Option which has neither lapsed nor been exercised.

		
	2.2
	Any reference in this U.K. Sub-plan to any enactment includes a reference to that enactment as from time to time modified, extended or replaced.

		
	3.
	ADMINISTRATION (SECTION 4 OF THE PLAN) 

		
	3.1
	Any discretion that the Administrator has with respect to Approved Options may only be exercised fairly and reasonably and not in breach of this U.K. Sub-plan or Section 4 of the Plan.

		
	3.2
	Approved Options may be granted only to Employees, and not to Consultants or Directors who are not Employees (and, for the avoidance of doubt, this Rule shall take precedence over Section 5 of the Plan).  

		
	3.3
	Approved Options may only be granted after the date on which formal approval under Schedule 4 for the U.K. Sub-plan has been obtained from HMRC.  Approved Options may only be granted over Shares.

		
	3.4
	No Approved Option may be granted to any Employee who is precluded by paragraph 9 (material interest)iv of Schedule 4 from participating in a CSOP Scheme.

		
	3.5
	Terms and conditions of Approved Options must be consistent with the U.K. Sub-plan, must be set out in the Award Agreement at the time of grant, and must not be amended, waived or modified after grant without the 

Exhibit 10.3

agreement (where required) of HMRC and/or the Optionee. Section 4(b)(vi) of the Plan shall be excluded in relation to outstanding Options for the purposes of the U.K. Sub-plan.
		
	3.6
	The Award Agreement must state whether or not the Shares which may be acquired on the exercise of the Approved Option may be subject to any restriction within the meaning of paragraph 36(3) of Schedule 4 and, if so, the details of the restriction must also be included.

		
	3.7
	Approved Options granted to any Employee shall be limited and take effect so that the aggregate Fair Market Value of the Shares subject to the Approved Option, when aggregated with the Fair Market Value of Shares subject to Subsisting Options, shall not exceed £30,000.  For the purposes of this Rule 3.7, Subsisting Options shall include all outstanding Approved Options granted under this U.K. Sub-plan and outstanding approved options granted under any other CSOP Scheme which has or may be established by the Company or any associated company within the meaning of paragraph 35 of Schedule 4.  This limit shall be determined on the basis of the Fair Market Value of Shares as at the date(s) of grant of the relevant Approved Options and the Fair Market Value at the date(s) of grant of options granted under the rules of any other CSOP Scheme, converted from U.S. dollars into pounds sterling at the rate of exchange applicable as at the date(s) of grant.

		
	4.
	LIMITATIONS (SECTION 6 OF THE PLAN)

		
	4.1
	No program to re-price or exchange Approved Options (as described in Section 6(c) of the Plan) may be implemented in respect of Approved Options except in accordance with Rule 8.2 or 9.2 of the U.K. Sub-plan (as applicable).

		
	5.
	OPTION EXERCISE PRICE AND CONSIDERATION (SECTION 7(b) OF THE PLAN) 

		
	5.1
	The exercise price per Share of an Approved Option shall not be less than the Fair Market Value of a Share on the date of grant (and, for the avoidance of doubt, this Rule shall take precedence over any provision to the contrary in Section 7 of the Plan).

		
	5.2
	Any performance conditions imposed on the exercise of an Approved Option:

		
	(a)
	must be objective and set at the date of grant of the Approved Option; and

		
	(b)
	cannot be waived or amended unless events occur which cause the Administrator to consider that the performance conditions will not achieve their original purpose (in which case the Administrator may make such alterations or additions to the performance conditions as are fair and reasonable provided that the amended performance conditions are no more difficult to meet than those originally imposed).

		
	5.3
	The exercise price of an Approved Option may only be paid by cash, cheque, and/or though a cashless exercise.  The exercise price may not be paid using previously acquired Shares or by the Company withholding Shares.

		
	5.4
	No Approved Option may be exercised by any Optionee who is precluded by paragraph 9 (material interest)v of Schedule 4 from participating in a CSOP Scheme.

		
	5.5
	Shares shall be allocated or issued to the Optionee within 30 days of exercise.  Except for any rights determined by reference to a date preceding the date of allotment or transfer, such Shares shall rank equally and as one class with other Shares of the same class already in issue.

		
	6.
	TERMINATION OF SERVICE (SECTION 7(c) OF THE PLAN)

		
	6.1
	Section 7(c)(ii) of the Plan shall apply if the Optionee’s status as a Service Provider terminates by reason of 

Exhibit 10.3

retirement, redundancy (within the meaning of the Employment Rights Act 1996), injury (to the extent this does not constitute Disability and evidenced to the satisfaction of the Administrator), a relevant transfer within the meaning of the Transfer of Undertakings (Protection of Employment) Regulations 2006 or the company with which the Optionee holds office or employment ceasing to be an associated company (as defined in paragraph 35(1) of Schedule 4) of the Company by reason of a change of control (as determined in accordance with sections 450 and 451 of the Companies Act 2006).
		
	6.2
	Following the Optionee’s death, an Approved Option may only be exercised by the personal representatives of the Optionee and may not be exercised later than 12 months after the date of death of the Optionee.

		
	7.
	NON-TRANSFERABILITY OF OPTIONS (SECTION 15 OF THE PLAN)

		
	7.1
	Section 15 of the Plan shall be replaced by the following provision for the purposes of the U.K. Sub-plan.

		
	7.2
	An Approved Option may not be sold, pledged, assigned, hypothecated, transferred or disposed of in any manner and, following the Optionee’s death, may only be exercised by the personal representatives of the Optionee.

		
	8.
	ADJUSTMENTS (SECTION 16(a) OF THE PLAN)

		
	8.1
	Outstanding Approved Options shall be adjusted only in accordance with Rule 8.2 of the U.K. Sub-plan.

		
	8.2
	In the event of any change to the capitalization, rights issue, consolidation, subdivision or reduction of share capital within paragraph 22(3) of Schedule 4 or other variation of share capital within paragraph 22(3) of Schedule 4, the number of Shares subject to an Approved Option and the exercise price for each of those Shares shall be adjusted in such manner as the Administrator considers to be fair and reasonable provided that:

		
	(a)
	the aggregate amount payable on the exercise of an Approved Option in full is not increased;

		
	(b)
	no adjustment shall be made without the prior approval of HMRC, if such approval is required by Schedule 4; and

		
	(c)
	following the adjustment, the Shares continue to satisfy the conditions specified in paragraphs 16 to 18 (inclusive) and paragraph 20 of Schedule 4.

		
	9.
	CHANGE IN CONTROL (SECTION 16(c) OF THE PLAN)

		
	9.1
	An Approved Option may be exchanged for another option only in accordance with Rule 9.2 of the U.K. Sub-plan, and Section 16(c) of the Plan shall be interpreted accordingly.  Section 16(c) of the Plan shall not apply in the event that the company with which the Optionee holds office or employment ceases to be an associated company (as defined in paragraph 35(1) of Schedule 4) of the Company by reason of a change of control (as determined in accordance with sections 450 and 451 of the Companies Act 2006).  Further, the words "In the event that the successor corporation (the "Successor Corporation") refuses to assume or substitute for the Award" in Section 16(c) of the Plan shall be replaced by the words "In the event that Approved Options are not exchanged pursuant to an agreement with the successor corporation (the "Successor Corporation" or "Successor Entity") in accordance with Rule 9.2 of the U.K. Sub-plan" for the purposes of the U.K. Sub-plan. 

		
	9.2
	If any company (the “Successor Entity”):

		
	(a)
	obtains Control of the Company as a result of making a general offer (i) to acquire the whole of the issued ordinary share capital of the Company which is made on a condition such that if it is satisfied 

Exhibit 10.3

the person making the offer will have Control of the Company or (ii) to acquire all the shares in the Company which are of the same class as the Shares subject to subsisting Options;
		
	(b)
	obtains Control of the Company in pursuance of a compromise or arrangement sanctioned by the court under section 899vi of the Companies Act 2006 (or under a relevant equivalent or closely comparable provision of applicable overseas company law accepted as such by HMRC); or

		
	(c)
	becomes bound or entitled to acquire shares in the Company under sections 979 to 982 or 983 to 985vii of the Companies Act 2006 (or under a relevant equivalent or closely comparable provision of applicable overseas company law accepted as such by HMRC),

an Optionee may agree with the Successor Entity to release the Approved Option (the “Old Option”) in consideration of the grant of a new option (the “New Option”) which satisfies the conditions below.
		
	9.3
	The conditions are that the New Option:

		
	(a)
	is over shares in the Successor Entity or in a company which has Control over the Successor Entity which satisfies the conditions specified in paragraphs 16 to 18 (inclusive) and paragraph 20 of Schedule 4;

		
	(b)
	is a right to acquire such number of shares as has on acquisition of the New Option an aggregate market value equal to the aggregate Fair Market Value of the shares subject to the Old Option on its disposal; 

		
	(c)
	has a purchase price per share such that the aggregate price payable on complete exercise equals the aggregate price which would have been payable on complete exercise of the Old Option; and

		
	(d)
	is otherwise identical in terms to the Old Option.

		
	9.4
	Where any New Option is granted pursuant to this Rule 9, the provisions of the U.K. Sub-plan shall, in relation to the New Option, be construed as if references to the Company and the Shares were references to the Successor Entity or, as the case may be, to the other company to whose shares the New Option relates and to the shares in the Successor Entity or that other company. The New Option shall, for all other purposes of the U.K. Sub-plan, be treated as having been acquired at the same time as the Old Option, which is released in consideration for the grant of the New Option.

		
	9.5
	The release of the Old Option and the grant of a New Option under this Rule 9 must take place within the period of six (6) months beginning with the time when, as the case may be, Control of the Company has been obtained and any conditions in connection with the change of Control are satisfied or the court sanctions a compromise or arrangement (as applicable), or within the period during which the Successor Entity remains bound or entitled in accordance with Rule 9.2(c) above.

		
	9.6
	If an event has occurred within Rule 9.2, the U.K. Sub-plan remains that of the Company and no further Approved Options may be granted under the U.K. Sub-plan.

		
	9.7
	For the purposes of Rule 9.2(a)(i), the reference to the issued ordinary share capital of the Company does not include any capital already held by the person making the offer or a person connected with that person, and for the purposes of Rule 9.2(a)(ii), the reference to the shares in the Company does not include any shares already held by the person making the offer or a person connected with that person.  For the purposes of Rule 9.2(a) it does not matter if the general offer is made to different shareholders by different means.

Exhibit 10.3

		
	9.8
	An Optionee may exercise an Approved Option, to the extent the Approved Option is vested and outstanding: (i) within six (6) months after the relevant date (as specified in paragraph 25A of Schedule 4); or (ii) at any time when any person is bound or entitled to acquire Shares under sections 979 to 982 or 983 to 985 of the Companies Act 2006, in circumstances where sections 524(2E)(c) to 524(2E)(g) of the (U.K.) Income Tax (Earnings and Pensions) Act 2003 apply, but in no event beyond the term during which the Optionee was otherwise entitled to exercise the Approved Option pursuant to any other provision of the Plan or U.K. Sub-plan or discretion of the Administrator.  This Rule 9.8 shall not limit the period during which an Optionee may otherwise be entitled to exercise an Approved Option under other terms in the U.K. Sub-plan.

		
	10.
	TAX WITHHOLDING (SECTION 17 OF THE PLAN)

		
	10.1
	Section 17 of the Plan shall be replaced by the following provisions.

		
	10.2
	If the Company or any Subsidiary is liable to withhold and account to HMRC for any sum in respect of income tax or National Insurance contributions (“Taxes”) in connection with the Approved Option, and the Optionee has not provided the Company or the relevant Subsidiary with sufficient funds to cover such amount, the Company shall be entitled to withhold or collect such Taxes: 

		
	(e)
	by deduction from salary or any other amount payable to the Optionee at any time, including proceeds acquired upon a cashless exercise; 

		
	(f)
	directly from the Optionee by payment in cleared funds;

		
	(g)
	by arranging, on behalf of the Optionee, for the sale of sufficient Shares that the Optionee is entitled to receive on the exercise of the Approved Option; or

(d)    by any other method agreed with HMRC.
		
	10.3
	A withholding liability may not be satisfied by the Company withholding Shares otherwise due to be received by the Optionee on the exercise of the Approved Option.

		
	10.4
	If the Company or any Subsidiary is liable to withhold and account to any other tax authority for any sum in respect of tax or social security contributions in connection with the Approved Option, the Company shall be entitled to withhold or collect such amounts using any of the methods listed in Rule 10.2 above.

		
	10.5
	The Award Agreement may provide that it is a condition of exercise that the Optionee agrees to pay or accept any liability for secondary Class 1 National Insurance contributions which may be payable by the Company or Subsidiary on the exercise of the Approved Option (“Employer NICs”).  The Optionee may also be required to execute a joint election with the Company or the Optionee’s employer to formally transfer the liability for Employer’s NICs to the Optionee, the form of such election being formally approved by HMRC, and any other joint election which may be required between the Optionee and any successor to the Company or the Optionee’s employer.

		
	10.6
	The Award Agreement may provide that it is a condition of exercise that the Optionee agrees to enter into a joint election within Section 431 of the (U.K.) Income Tax (Earnings and Pensions) Act 2003 (“ITEPA 2003”) in respect of computing any tax charge on the acquisition of “restricted securities” (as defined in Sections 423 and 424 of ITEPA 2003).  

		
	11.
	NO EFFECT ON EMPLOYMENT OR SERVICE (SECTION 18 OF THE PLAN)

		
	11.1
	The following provision shall be added to Section 18 of the Plan.

Exhibit 10.3

		
	11.2
	The rights and obligations of any Optionee under the terms of that person’s employment with the Company or any Subsidiary shall not be affected by participation in the U.K. Sub-plan or any right to participate in the U.K. Sub-plan.  An individual who is granted an Approved Option shall have no right to compensation or damages in consequence of the loss or diminution in value of the Approved Option or Shares acquired pursuant to the Approved Option for any reason including, but not limited to, as a result of the termination of that person’s employment with the Company or Subsidiary for any reason whatsoever and whether or not in breach of contract.  If an individual did acquire any such rights, that person would be deemed to have waived them irrevocably by not renouncing the Approved Option.

		
	12.
	AMENDMENT AND TERMINATION OF THE PLAN (SECTION 21 OF THE PLAN)

		
	12.1
	The Administrator may not make any amendment to the U.K. Sub-plan or to the Award Agreement for Approved Options without first obtaining the approval of HMRC if such amendment relates to a “key feature” (as defined in paragraph 30(4)viii of Schedule 4) of this CSOP Scheme; provided however that the approval of HMRC will only be required for amendments made by the Administrator if it is a requirement of Schedule 4 or HMRC practice at the time of the amendment that such changes must be approved by HMRC.  For the avoidance of doubt, Section 4(b)(v) and Section 21 of the Plan shall be subject to this Rule.

		
	12.2
	The U.K. Sub-plan shall terminate in accordance with the termination of the Plan.

	
	
	 

 
These endnotes are provided for information purposes only.

i Section 995 of the Income Tax Act 2007: Control means the power of a person to secure, by holding sufficient shares or voting rights or as a result of other powers conferred, that the affairs of a company are conducted in accordance with that person’s wishes.

ii Paragraph 36(3) of Schedule 4: Shares are subject to a restriction if there is any contract, agreement, arrangement or condition which may provide for:

Exhibit 10.3

		
	•
	a transfer, reversion or forfeiture of the shares for less than market value;

		
	•
	a restriction on the freedom of the holder to dispose of or hold onto the shares; or

		
	•
	a disadvantage due to the disposal or retention of the shares.

iii Paragraphs 16 to 18 and 20 of Schedule 4 (as they apply to the Company): The Shares must:
		
	•
	form part of the ordinary share capital of the Company, as the scheme organiser; 

		
	•
	be in a company listed on a recognised stock exchange (such as NASDAQ); 

		
	•
	be fully paid up and not redeemable; and 

		
	•
	the majority of the issued shares of the same class as the Shares must be “open market” shares (i.e. if the persons holding the shares are not (a) persons who acquired their shares as a result of a right conferred on them or an opportunity afforded to them as a director or employee of the scheme organiser or any other company, and not as a result of an offer to the public, or (b) trustees holding shares on behalf of persons who acquired their beneficial interests in the shares as mentioned in (a)).

iv Paragraph 9 of Schedule 4: An Approved Option may not be granted to or exercised by an individual holding an interest of more than 30% of the ordinary share capital of the Company.

v See note iv above.

vi Section 899 of the Companies Act 2006: A scheme of arrangement is a statutory procedure under the Companies Act 2006 whereby a company may make a compromise or arrangement with its members or creditors. It is a court sanctioned procedure and can be used to effect internal reorganisations, mergers or demergers.

vii Sections 979 to 982 or 983 to 985 of the Companies Act 2006: These sections apply after a bidder (the acquiring company) has had its offer to the shareholders of a target company accepted by the holders of 90% of the shares whose transfer is involved. The acquiring company may use “squeeze out” rights to acquire the shares of the dissenting minority shareholders and, conversely, minority shareholders may use a “sell out” right to require the acquiring company to acquire their shares in the target.

viii Paragraph 30(4) of Schedule 4: A “key feature” is a provision of the scheme which is necessary in order to meet the requirements of Schedule 4.Exhibit104SVB-NoticeofStockOptionUKSubplan

Exhibit 10.4

	
				
	Notice of Grant of U.K. Approved Stock Options
and Award Agreement
	SVB FINANCIAL GROUP
ID:  94-2875288
3003 Tasman Drive
Santa Clara, CA 95054

	Grant Agreement:  

	Participant Name:        ###PARTICIPANT_NAME###
	 Grant Name:###GRANT_NAME### 

	Employee Number:        ###EMPLOYEE_NUMBER###
	 Issue Date/Date of Grant: ###ISSUE_DATE###

	Total Nonqualified Stock Options:       Total ###DICTIONARY_AWARD_NAME###: ###TOTAL_AWARDS###
	Expiry/Expiration Date: ###EMPLOYEE_GRANT_EXPIRY_DATE### 

	 Plan:  UK Sub-Plan of the 2006 Equity Incentive Plan
	 Grant/Option Price:###GRANT_PRICE### ###GRANT_PRICE_REM_START### ###GRANT_PRICE_REM_END### 

	 ###EMPLOYEE_GRANT_VEST_SCHEDULE_TABLE### 
	Grant  Number: ###EMPLOYEE_GRANT_NUMBER###

Effective on the Date of Grant listed above, you have been granted a Nonqualified Stock Option (which is a UK-Approved Stock Option for UK tax purposes) to buy Shares of SVB Financial Group (the “Company”) stock at the Option Price listed in the Grant Agreement above (the “Option”).  Shares in each period will become fully vested on the dates shown in the Vesting Schedule, subject to you continuing to be a Service Provider through each such date.

		
	(a)
	The terms of this UK-Approved Stock Option, including the circumstances under which this UK-Approved Stock Option will lapse or be cancelled (in whole or in part), any conditions to which the exercise of this UK-Approved Stock Option is subject (in whole or in part) and any mechanism for varying the terms of this UK-Approved Stock Option, are set out in the UK-Approved Stock Option Award Agreement and the rules of the UK Sub-Plan of the 2006 Equity Incentive Plan.  The rules of the UK Sub-Plan of the 2006 Equity Incentive Plan and the rules of the SVB Financial Group 2006 Equity Incentive Plan can be accessed in your Solium Account.

 
	
	
	By your acceptance and the Company’s signature below, you and the Company agree that this Option is granted under and governed by the terms and conditions of the Company’s 2006 Equity Incentive Plan, the UK Sub-Plan of the Company's 2006 Equity Incentive Plan and this UK-Approved Stock Option Award Agreement, all of which are attached and made a part of this document.

 

	
			
	 ###HR_SIGNATURE###
	 

	SVB Financial Group
	 
	Date

	 
	 
	 

	 
	 
	 

	Participant Name
	 
	Date

1

SVB FINANCIAL GROUP
 
UK-APPROVED STOCK OPTION AWARD AGREEMENT
  
                SVB Financial Group (the “Company”), pursuant to its 2006 Equity Incentive Plan (the “US Plan”), its U.K. Sub-Plan of the 2006 Equity Incentive Plan (the “UK Sub-Plan”, and collectively with the US Plan, the “Plan”) and this UK-Approved Stock Option Award Agreement (the “Award Agreement”) has granted to Participant an Option to purchase shares of the Common Stock of the Company (“Shares”).  This Option is not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”).
 
               Defined terms not explicitly defined in this Award Agreement shall have the same definitions as in the Plan or in the Notice of Grant of Stock Options (“Notice of Grant”), to which this Award Agreement is attached.
 
                The details of your Option are as follows:
 
1.             Total Number Of Shares Subject To This Option.  The total number of Shares subject to this Option is set forth in the Notice of Grant.
 
2.             Vesting.  Subject to the limitations contained herein, the Option will vest (become exercisable) as set forth in the Notice of Grant until either (i) you cease to be a Service Provider for any reason, or (ii) this Option becomes fully vested.  In the event of your termination as a Service Provider (regardless of the reason for such termination and whether or not later to be found invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), (i) your right to vest in this Option under the Plan, if any, and (ii) the period (if any) during which you may exercise this Option shall be measured by the date upon which your employment with your employer (the “Employer”) and any notice period has ended.  For the avoidance of doubt, employment shall include any contractual notice period or period of “garden leave” or similar period mandated under employment laws in the jurisdiction where you are employed or the other terms of your employment agreement, if any.  The Committee shall have the exclusive discretion to determine when you are no longer employed for purposes of the Option.
 
3.             Option Price And Method Of Payment.
 
(a)           Option Price.  The Option Price per Share is the price set forth in the Notice of Grant, such price being not less than one hundred percent (100%) of the Fair Market Value of the Common Stock on the Date of Grant of this Option.
 
(b)           Method of Payment.  Payment of the Option Price per Share is due in full upon exercise of all or any part of each installment which has accrued to you.  You may elect, to the extent permitted by Applicable Laws, to make payment of the Option Price under one of the following alternatives:
 
(i)            Payment of the Option Price per Share in cash (including check) at the time of exercise;
 
(ii)             Consideration received by the Company under a formal cashless exercise program adopted by the Company in connection with the Plan; or    
 
(iii)         Payment by a combination of the methods of payment permitted by Section 3(b)(i) and (ii) above.
 
4.             Whole Shares.  This Option may only be exercised for whole Shares.

5.             Securities Law Compliance.  Notwithstanding anything to the contrary in the Plan or this Award Agreement, unless there is an available exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required to deliver any Shares issuable upon exercise of the Option prior to the completion of any registration or qualification of the Shares under any local, 

2

state, federal or foreign securities or exchange control law or under rulings or regulations of the U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification or approval the Company shall, in its absolute discretion, deem necessary or advisable.  You understand that the Company is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek approval or clearance from any governmental authority for the issuance or sale of the shares.  Further, you agree that, subject to the rules of the UK Sub-Plan, the Company shall have unilateral authority to amend the Plan without your consent to the extent necessary to comply with securities or other laws applicable to issuance of shares.
 
6.             Term.  The term of this Option commences on the Date of Grant and expires on the Expiration Date, unless this Option expires sooner as set forth below or in the Plan.  In no event may this Option be exercised on or after the Expiration Date.  This Option shall terminate prior to the Expiration Date as follows:  three (3) months after your termination as a Service Provider unless one of the following circumstances exists:
 
(a)           Your termination as a Service Provider is due to your Disability.  This Option will then expire on the earlier of the Expiration Date set forth above or twelve (12) months following such termination.

(b)           Your termination as a Service Provider is due to your death.  This Option will then expire on the earlier of the Expiration Date set forth above or twelve (12) months after your death.

(c)           Your termination as a Service Provider is due to Cause (as defined in the Plan).  This Option will then expire on the date of such termination.

(d)           If during any part of such three (3)-month period you may not exercise your Option solely because of the condition set forth in Section 5 above, then your Option will not expire until the earlier of the Expiration Date set forth above or until this Option shall have been exercisable for an aggregate period of three (3) months after your termination as a Service Provider.

(e)           If your exercise of the Option within three (3) months after your termination as a Service Provider of the Company or of an Affiliate would result in liability under Section 16(b) of the Securities Exchange Act of 1934, then your Option will expire on the earlier of (i) the Expiration Date set forth above, or (ii) the tenth (10th) day after the last date upon which exercise would result in such liability.
 
                However, this Option may be exercised following your termination as a Service Provider only as to that number of Shares as to which it was exercisable on the date of termination under the provisions of Section 2 of this Award Agreement.  
 
7.             Exercise.

(a)           This Option is exercisable by (i) delivery of an exercise notice, in the form and manner determined by the Administrator, or (ii) following an electronic or other exercise procedure prescribed by the Administrator, which in either case shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  Participant shall provide payment of any applicable Tax-Related Items (as defined in Section 10, herein) arising in connection with such exercise.  This Option shall be deemed to be exercised upon receipt by the Company of a fully executed exercise notice or completion of such exercise procedure, as the Administrator may determine in its sole discretion, accompanied by any applicable Tax-Related Items (as defined in Section 10, herein).
 
(b)           By exercising this Option you agree that, as a precondition to the completion of any exercise, you must satisfy the Tax-Related Items in accordance with Section 10, herein.

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 8.             Transferability.

(a)           This Option is not transferable, and is exercisable during your life only by you.
 
(b)           The terms of this Award Agreement (including, without limitation, Section 6(b) relating to termination as a result of death) shall apply to your executors and administrators including the right to agree to any amendment of the applicable Award Agreement.

(d)           An Option shall be exercised only by you (or your attorney in fact or guardian) or, in the case of your death, by your executor or administrator, and no Shares shall be issued by the Company unless the exercise of an Option is accompanied by sufficient payment, as determined by the Company, to meet the Tax-Related Items (as defined in Section 10, herein) on such exercise or by other arrangements satisfactory to the Committee to provide such payment.
 
9.    Acknowledgments.  You  acknowledge and agree to the following:

		
	•
	the Plan is discretionary in nature and the Administrator may amend, suspend, or terminate it at any time;

		
	•
	the grant of this Option is voluntary and occasional and does not create any contractual or other right to receive future grants of options, or benefits in lieu of the options even if options have been granted in the past;

		
	•
	all determinations with respect to future Option or other grants, if any, including but not limited to, the times when the Option shall be granted or when the Option shall vest, will be at the sole discretion of the Administrator;

		
	•
	your participation in the Plan is voluntary;

		
	•
	this Option and any Shares acquired under the Plan and the income and value of same, are not part of normal or expected compensation for purposes of calculating any severance, resignation, termination, redundancy, dismissal, end-of-service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments;

		
	•
	this Option and the Shares subject to this Option are not part of normal or expected compensation or salary for any purpose;

 
		
	•
	the future value of the Shares is unknown, indeterminable, and cannot be predicted with certainty;

		
	•
	if the underlying Shares do not increase in value, this Option will have no value;

 
		
	•
	if you exercise this Option and acquire Shares, the value of such Shares may increase or decrease in value, even below the Option Price;

		
	•
	neither the Plan nor the Option shall be construed to create a right to employment or be interpreted as forming an employment or service contract with the Company,  your Employer (the “Employer) or any Affiliate, and shall not interfere with the ability of the Company, the Employer or any Affiliate, as applicable, to terminate your status as a Service Provider (if any);

		
	•
	no claim or entitlement to compensation or damages shall arise from forfeiture of this Option resulting from the termination of your status as a Service Provider (for any reason whatsoever, whether or not later found to be invalid or in breach of employment laws in the jurisdiction where you are employed or the terms of your employment agreement, if any), and in consideration of the grant of this Option to which you are otherwise not entitled, you 

4

irrevocably agree never to institute any claim against the Company, any of its Affiliates or the Employer;
 
		
	•
	nothing herein contained shall affect your right to participate in and receive benefits under and in accordance with the then current provisions of any pension, insurance or other welfare plan or program of the Company or any Affiliate;

		
	•
	unless otherwise provided in the Plan or by the Company in its discretion, this Option and the benefits evidenced by this Award Agreement do not create any entitlement to have this Option or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the Shares of the Company; and

		
	•
	you acknowledge and agree that neither the Company, the Employer nor any Affiliate shall be liable for any foreign exchange rate fluctuation between your local currency and the United States Dollar that may affect the value of this Option or of any amounts due to you pursuant to the exercise of this Option or the subsequent sale of any Shares acquired upon exercise.

10.    Withholding of Taxes.  The Company or one of its Affiliates shall assess tax and social insurance liability and requirements in connection with your participation in the Plan, including, without limitation, income tax, social insurance, payroll tax, fringe benefit tax, payment of account or other tax related items associated with the grant or exercise of the Option or sale of the underlying Shares and legally applicable to you (the “Tax-Related Items”).  These requirements may change from time to time as laws or interpretations change.  Regardless of the actions of the Company or if different, your Employer in this regard, you hereby acknowledge and agree that the Tax-Related Items liability shall be your responsibility and liability.
You acknowledge that the Company’s obligation to issue Shares in connection with the Option shall be subject to satisfaction of the Tax-Related Items liability.  By your acceptance of the Option, you authorize the Company or any brokerage firm determined acceptable to the Company to sell on your behalf a whole number of Shares from those Shares issued to you as the Company determines to be sufficient to satisfy the obligation for Tax-Related Items if you do not provide the Company with sufficient funds to satisfy the Tax-Related Items when you give notice to exercise this Option.  Alternatively, or in addition thereto, if you have not provided the Company with sufficient funds to satisfy the Tax Related Items, the Company or the Employer may satisfy the Tax-Related Items withholding liability by deduction from your wages or other cash compensation paid to you by the Company or the Employer.  Finally, you agree to pay the Company or the Employer any Tax-Related Items withholding liability that cannot be satisfied by deduction from your wages or other cash compensation paid to you by the Company or the Employer or sale of the Shares acquired under the Plan.
If payment or withholding of Tax-Related Items is not made within ninety (90) days of the event giving rise to the Tax-Related Items or such other period specified in Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected UK income tax shall constitute a loan owed by you to the Employer, effective as of the Due Date.  You agree that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue & Customs (“HMRC”), it will be immediately due and repayable, and the Company or the Employer may recover it at any time thereafter by any of the means referred to in Section 10 of the Award Agreement. 
Notwithstanding the foregoing, if you are a director or executive officer of the Company (within the meaning of Section 13(k) of the Exchange Act), you shall not be eligible for a loan from the Company to cover the UK income tax due.  In the event that you are a director or executive officer and any such Tax-Related Items are not collected from or paid by you by the Due Date, the amount of any uncollected income tax may constitute a benefit to you on which additional income tax and National Insurance Contributions (“NICs”) may be payable.  You will be responsible for reporting and paying any income tax due on this additional benefit directly to HMRC under the self-assessment regime and for reimbursing the Company or the Employer (as applicable) for the value of any employee NICs due on this additional benefit which may be collected from you by the Company or the Employer by any of the means referred to in Section 10 of the Award Agreement.
11.    [RESERVED.]

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12.    Authorization to Release and Transfer Necessary Personal Information.  You hereby explicitly and unambiguously consent to the collection, use and transfer, in electronic or other form, of your personal data as described in this Award Agreement and any other Option grant materials by and among, as applicable, the Employer, the Company and its Affiliates for the exclusive purpose of implementing, administering and managing your participation in the Plan.  
You understand that the Company and the Employer may hold certain personal information about you, including, but not limited to, your name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, details of all options or any other entitlement to shares of stock awarded, canceled, exercised, vested, unvested or outstanding in your favor ("Data"), for the exclusive purpose of implementing, administering and managing the Plan.   
You understand that Data will be transferred to a stock plan service provider selected by the Company to assist the Company with the implementation, administration and management of the Plan.  You understand that the recipients of the Data may be located in the United States or elsewhere, including outside the EEA, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections than your country.  You understand that if you reside outside the United States, you may request a list with the names and addresses of any potential recipients of the Data by contacting your local human resources representative.  You authorize the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purposes of implementing, administering and managing your participation in the Plan.  You understand that Data will be held only as long as is necessary to implement, administer and manage your participation in the Plan.  You understand that if you reside outside the United States, you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing your local human resources representative.  Further, you understand that you are providing the consents herein on a purely voluntary basis.  If you do not consent, or if you later seek to revoke your consent, your status as a Service Provider with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing your consent is that the Company would not be able to grant you options or other equity awards or administer or maintain such awards.  Therefore, you understand that refusing or withdrawing your consent may affect your ability to participate in the Plan.  For more information on the consequences of your refusal to consent or withdrawal of consent, you understand that you may contact your local human resources representative.
13.    Compliance With Applicable Laws. The vesting and exercise of the Option under the Plan and the issuance, transfer, assignment, sale, or other dealings of the Shares shall be subject to compliance by the Company (or any Affiliate) and you with all Applicable Laws.  
14.    Electronic Delivery.  The Company may, in its sole discretion, decide to deliver any documents related to the Option awarded under the Plan or future Options that may be awarded under the Plan by electronic means or request your consent to participate in the Plan by electronic means.  You hereby consent to receive such documents by electronic delivery and agree to participate in the Plan through an on-line or electronic system established and maintained by the Company or another third party designated by the Company. Electronic execution of this Award Agreement and/or other documents shall have the same binding effect as a written or hard copy signature and accordingly, shall bind you and the Company to all of the terms and conditions set forth in the Plan, this Award Agreement and/or such other documents.
15.    Notices.  Any notices provided for in this Option or the Plan shall be given in writing and shall be deemed effectively given upon receipt or, in the case of notices delivered by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the address specified below or at such other address as you hereafter designate by written notice to the Company.
16.    Governing Plan Document.  This Option is subject to all the provisions of the Plan, a copy of which is attached hereto and its provisions are hereby made a part of this Option, and is further subject to all interpretations, amend-ments, rules and regulations which may from time to time be promulgated and adopted 

6

pursuant to the Plan.  In the event of any conflict between the provisions of this Option and those of the Plan, the provisions of the Plan shall control.
17.    No Advice Regarding Grant.  The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding your participation in the Plan, or your acquisition or sale of the underlying Shares.  You are hereby advised to consult with your own personal tax, legal and financial advisors regarding your participation in the Plan before taking any action related to the Plan.
18.    Agreement Severable.  In the event that any provision in this Award Agreement will be held invalid or unenforceable, such provision will be severable from, and such invalidity or unenforceability will not be construed to have any effect on, the remaining provisions of this Award Agreement.
19.    Language.  If you have received this Award Agreement or any other document related to the Plan translated into a language other than English and if the meaning of the translated version is different than the English version, the English version will control.
20.    Governing Law.  This Award Agreement will be governed by the laws of the State of California, without giving effect to the conflict of law principles thereof.  For purposes of litigating any dispute that arises under this Option or this Award Agreement, the parties hereby submit to and consent to the jurisdiction of the State of California, and agree that such litigation shall be conducted in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts, where this Option is made and/or to be performed.
21.    Waiver.  You acknowledge that a waiver by the Company of breach of any provision of this Award Agreement shall not operate or be construed as a waiver of any other provision of this Award Agreement, or of any subsequent breach by you or any other participant.

7

 Notice of Exercise
 
SVB Financial Group
Attn:  Stock Administration
80 E Rio Salado Parkway Suite 600
Tempe, AZ 85281
 
 
I, _____________________ , elect to exercise the following SVB Financial Group stock option(s):
 
	
											
	Grant
	 
	Grant
	 
	Type of
	 
	Number of Shares
	 
	Exercise Price
	 
	Aggregate

	Number:
	 
	Date:
	 
	Option:
	 
	to be Exercised:
	 
	Per Share:
	 
	Exercise Price:

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	NQ (UK-Approved)
	 
	 
	 
	$
	 
	$

	 
	 
	 
	 
	NQ (UK-Approved)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	NQ (UK-Approved)
	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	$

TYPE OF EXERCISE:	
						
	o CASH(1)
	 
	o   CASHLESS    (Sale of underlying shares of option to pay exercise price)
	 
	 

	 
	 
	o Sell shares
	o Sell all shares listed above
	 
	 

	 
	 
	 
	 
	 
	 

BROKER INFORMATION (if applicable):
	
								
	Firm:
	 
	 
	 
	 
	Account #
	 

	Contact Person:
	 
	 
	Phone:
	 
	 
	Fax:
	 

 
o    I authorize my broker to pay SVB Financial Group the aggregate exercise price.  For non-qualified (NQ)/U.K. Approved Options exercised in non-qualifying circumstances, I also authorize my broker to pay Silicon Valley Bank for the applicable taxes owed.
 
DELIVERY INSTRUCTIONS:
            o  Mail certificate to my home address.                          o  Deliver electronically to my Broker.

I will (i) provide any additional documents you require pursuant to the terms of the Award Agreement, (ii) pay any withholding taxes resulting from exercise of a NQ stock option. 
	
						
	 
	 
	 
	Very truly yours,

	 
	 
	 
	 

	SS#:
	 
	 
	 

	 
	 
	 
	Signed

	Telephone:
	 
	 
	 

	 
	 
	 
	Address

	 
	 
	 
	 

	Date:
	 
	 
	 

	 
	 
	 
	 
	 
	 

 (1)  The Effective Date of cash exercises is the day cash is received by Stock Administration, unless otherwise notified by Stock Administration as a result of insider trading restrictions.  If delivery is made by US Mail (or overnight courier) the Effective Date is the postmark date (or pick-up date).  

8

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