Document:

Form of 2003 Stock Incentive Plan

 Exhibit 10.4 
  
 SYNNEX INFORMATION TECHNOLOGIES, INC. 
  
 2003 STOCK INCENTIVE PLAN 
  
  
 (Adopted by the Board on September 2, 2003) 
  

 TABLE OF CONTENTS 
  

	 	  	 	  	 	  	Page

			
	 Section 1.
	  	 ESTABLISHMENT AND PURPOSE.
	  	1
			
	 Section 2.
	  	 DEFINITIONS.
	  	1
	 	  	 (a)
	  	 “Affiliate”
	  	1
	 	  	 (b)
	  	 “Award”
	  	1
	 	  	 (c)
	  	 “Board of Directors”
	  	1
	 	  	 (d)
	  	 “Change in Control”
	  	1
	 	  	 (e)
	  	 “Code”
	  	2
	 	  	 (f)
	  	 “Committee”
	  	2
	 	  	 (g)
	  	 “Company”
	  	2
	 	  	 (h)
	  	 “Consultant”
	  	2
	 	  	 (i)
	  	 “Disability”
	  	3
	 	  	 (j)
	  	 “Employee”
	  	3
	 	  	 (k)
	  	 “Exchange Act”
	  	3
	 	  	 (l)
	  	 “Exercise Price”
	  	3
	 	  	 (m)
	  	 “Fair Market Value”
	  	3
	 	  	 (n)
	  	 “ISO”
	  	3
	 	  	 (o)
	  	 “Misconduct”
	  	3
	 	  	 (p)
	  	 “Nonstatutory Option” or “NSO”
	  	4
	 	  	 (q)
	  	 “Offeree”
	  	4
	 	  	 (r)
	  	 “Option”
	  	4
	 	  	 (s)
	  	 “Optionee”
	  	4
	 	  	 (t)
	  	 “Outside Director”
	  	4
	 	  	 (u)
	  	 “Parent”
	  	4
	 	  	 (v)
	  	 “Participant”
	  	4
	 	  	 (w)
	  	 “Plan”
	  	4
	 	  	 (x)
	  	 “Purchase Price”
	  	4
	 	  	 (y)
	  	 “Restricted Share”
	  	4
	 	  	 (z)
	  	 “Restricted Share Agreement ”
	  	4
	 	  	 (aa)
	  	 “SAR”
	  	4
	 	  	 (bb)
	  	 “SAR Agreement”
	  	4
	 	  	 (cc)
	  	 “Service”
	  	4
	 	  	 (dd)
	  	 “Share”
	  	5
	 	  	 (ee)
	  	 “Stock”
	  	5
	 	  	 (ff)
	  	 “Stock Option Agreement”
	  	5
	 	  	 (gg)
	  	 “Subsidiary”
	  	5
			
	 Section 3.
	  	 ADMINISTRATION.
	  	5
	 	  	 (a)
	  	 Committee Composition
	  	5
	 	  	 (b)
	  	 Committee for Non-Officer Grants
	  	5
	 	  	 (c)
	  	 Committee Procedures
	  	5
	 	  	 (d)
	  	 Committee Responsibilities
	  	5

  

 - i - 

			
	 Section 4.
	  	 ELIGIBILITY.
	  	7
	 	  	 (a)
	  	 General Rule
	  	7
	 	  	 (b)
	  	 Automatic Grants to Outside Directors.
	  	7
	 	  	 (c)
	  	 Ten–Percent Stockholders
	  	8
	 	  	 (d)
	  	 Attribution Rules
	  	8
	 	  	 (e)
	  	 Outstanding Stock
	  	8
			
	 Section 5.
	  	 STOCK SUBJECT TO PLAN.
	  	9
	 	  	 (a)
	  	 Basic Limitation
	  	9
	 	  	 (b)
	  	 Additional Shares
	  	9
			
	 Section 6.
	  	 RESTRICTED SHARES
	  	9
	 	  	 (a)
	  	 Restricted Stock Agreement
	  	9
	 	  	 (b)
	  	 Payment for Awards
	  	9
	 	  	 (c)
	  	 Vesting
	  	9
	 	  	 (d)
	  	 Voting and Dividend Rights
	  	9
	 	  	 (e)
	  	 Restrictions on Transfer of Shares
	  	10
			
	 Section 7.
	  	 TERMS AND CONDITIONS OF OPTIONS.
	  	10
	 	  	 (a)
	  	 Stock Option Agreement
	  	10
	 	  	 (b)
	  	 Number of Shares
	  	10
	 	  	 (c)
	  	 Exercise Price
	  	10
	 	  	 (d)
	  	 Withholding Taxes
	  	10
	 	  	 (e)
	  	 Exercisability and Term
	  	10
	 	  	 (f)
	  	 Exercise of Options Upon Termination of Service
	  	11
	 	  	 (g)
	  	 Effect of Change in Control
	  	11
	 	  	 (h)
	  	 Leaves of Absence
	  	11
	 	  	 (i)
	  	 No Rights as a Stockholder
	  	11
	 	  	 (j)
	  	 Modification, Extension and Renewal of Options
	  	11
	 	  	 (k)
	  	 Restrictions on Transfer of Shares
	  	12
	 	  	 (l)
	  	 Buyout Provisions
	  	12
			
	 Section 8.
	  	 PAYMENT FOR SHARES.
	  	12
	 	  	 (a)
	  	 General Rule
	  	12
	 	  	 (b)
	  	 Surrender of Stock
	  	12
	 	  	 (c)
	  	 Services Rendered
	  	12
	 	  	 (d)
	  	 Cashless Exercise
	  	12
	 	  	 (e)
	  	 Exercise/Pledge
	  	12
	 	  	 (f)
	  	 Promissory Note
	  	12
	 	  	 (g)
	  	 Other Forms of Payment
	  	13
	 	  	 (h)
	  	 Limitations under Applicable Law
	  	13
			
	 Section 9.
	  	 STOCK APPRECIATION RIGHTS.
	  	13
	 	  	 (a)
	  	 SAR Agreement
	  	13
	 	  	 (b)
	  	 Number of Shares
	  	13
	 	  	 (c)
	  	 Exercise Price
	  	13
	 	  	 (d)
	  	 Exercisability and Term
	  	13

  

 - ii - 

	 	  	 (e)
	  	 Effect of Change in Control
	  	13
	 	  	 (f)
	  	 Exercise of SARs
	  	13
	 	  	 (g)
	  	 Modification or Assumption of SARs
	  	14
			
	 Section 10.
	  	 ADJUSTMENT OF SHARES.
	  	14
	 	  	 (a)
	  	 Adjustments
	  	14
	 	  	 (b)
	  	 Dissolution or Liquidation
	  	14
	 	  	 (c)
	  	 Reorganizations
	  	14
	 	  	 (d)
	  	 Reservation of Rights
	  	15
			
	 Section 11.
	  	 LEGAL AND REGULATORY REQUIREMENTS.
	  	15
			
	 Section 12.
	  	 WITHHOLDING TAXES.
	  	15
	 	  	 (a)
	  	 General
	  	15
	 	  	 (b)
	  	 Share Withholding
	  	15
			
	 Section 13.
	  	 LIMITATION ON PARACHUTE PAYMENTS.
	  	16
	 	  	 (a)
	  	 Scope of Limitation
	  	16
	 	  	 (b)
	  	 Basic Rule
	  	16
	 	  	 (c)
	  	 Reduction of Payments
	  	16
	 	  	 (d)
	  	 Overpayments and Underpayments
	  	16
	 	  	 (e)
	  	 Related Corporations
	  	17
			
	 Section 14.
	  	 NO EMPLOYMENT RIGHTS.
	  	17
			
	 Section 15.
	  	 DURATION AND AMENDMENTS.
	  	17
	 	  	 (a)
	  	 Term of the Plan
	  	17
	 	  	 (b)
	  	 Right to Amend or Terminate the Plan
	  	17
	 	  	 (c)
	  	 Effect of Amendment or Termination
	  	17
			
	 Section 16.
	  	 EXECUTION.
	  	17

  
  

 - iii - 

 SYNNEX INFORMATION TECHNOLOGIES, INC. 
  
 2003 STOCK INCENTIVE PLAN 
  
 SECTION 1.    ESTABLISHMENT AND PURPOSE. 
  
 The Plan was adopted by the Board of Directors on September 2, 2003,
effective as of the date of the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission. The purpose of the Plan is to promote the long-term success of the Company
and the creation of stockholder value by (a) encouraging Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with
exceptional qualifications and (c) linking Employees, Outside Directors and Consultants directly to stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of restricted
shares, options (which may constitute incentive stock options or nonstatutory stock options) or stock appreciation rights. 
  
 SECTION 2.    DEFINITIONS. 
  
 (a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than 50% of
such entity. 
  
 (b) “Award” shall mean any award
of an Option, a SAR or a Restricted Share under the Plan. 
  
 (c)
“Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to time. 
  
 (d) “Change in Control” shall mean the occurrence of any of the following events: 
  
 (i) A change in the composition of the Board of Directors
occurs, as a result of which fewer than one-half of the incumbent directors are directors who either: 
  
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”); or

  
 (B) Were elected, or nominated for election,
to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously
so approved (the “continuing directors”); or 
  
 (ii) Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of
the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities 

  

 - 1 - 

 
ordinarily (and apart from rights accruing under special circumstances) having the right to vote at elections of directors (the “Base Capital
Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease
thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such person’s beneficial ownership of any securities of the Company; or 
  
 (iii) The consummation of a merger or consolidation of the
Company with or into another entity or any other corporate reorganization, if persons who were not stockholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation
or other reorganization 50% or more of the voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 
  
 (iv) The sale, transfer or other disposition of all or
substantially all of the Company’s assets. 
  
 For purposes
of subsection (d)(i) above, the term “look-back” date shall mean the later of (1) September 2, 2003 or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
  
 For purposes of subsection (d)(ii)) above, the term “person” shall
have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a
corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Stock. 
  
 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the
state of the Company’s incorporation or to create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a Change in Control
shall not be deemed to occur if the Company files a registration statement with the Securities and Exchange Commission for the initial offering of Stock to the public. 
  
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (f) “Committee” shall mean the Compensation Committee as
designated by the Board of Directors, which is authorized to administer the Plan, as described in Section 3 hereof. 
  
 (g) “Company” shall mean SYNNEX Information Technologies, Inc. 
  
 (h) “Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a
Parent, a Subsidiary or an Affiliate as an independent contractor or a member of the board of directors of a Parent or a Subsidiary who is not an Employee. Service as a Consultant shall be considered Service for all purposes of the Plan. 

 

 - 2 - 

 (i) “Disability” shall mean that the Optionee is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental impairment. 
  
 (j) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary. 
  

(k) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (l) “Exercise Price” shall mean, in the case of an Option,
the amount for which one Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR
Agreement, which is subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 
  
 (m) “Fair Market Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as
follows: 
  
 (i) If the Stock was traded
over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to
the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the “Pink
Sheets” published by the National Quotation Bureau, Inc.; 
  
 (ii) If the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
  
 (iii) If the Stock was traded on a United States stock
exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 
  
 (iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by
the Committee in good faith on such basis as it deems appropriate. 
  
 In all
cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 
  
 (n) “ISO” shall mean an employee incentive stock option described in Section 422 of the Code. 
  
 (o) “Misconduct” shall mean the commission of any act of
fraud, embezzlement or dishonesty by the Participant, any unauthorized use or disclosure by the Participant of confidential information or trade secrets of the Company (or any Parent or Subsidiary), or any other intentional misconduct by the
Participant adversely affecting the business or affairs of the Company (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not 

  

 - 3 - 

 
be deemed to be inclusive of all the acts or omissions which the Company (or any Parent or Subsidiary) may consider as grounds for the dismissal or discharge
of the Participant or any other individual in the Service of the Company (or any Parent or Subsidiary). 
  
 (p) “Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO. 
  
 (q) “Offeree” shall mean an individual to whom the Committee
has offered the right to acquire Shares under the Plan (other than upon exercise of an Option). 
  
 (r) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
  
 (s) “Optionee” shall mean an individual or estate who holds
an Option or SAR. 
  
 (t) “Outside Director”
shall mean a member of the Board of Directors who is not a common-law employee of the Company, a Parent or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of the Plan, except as provided in the second
sentence of Section 4(a). 
  
 (u) “Parent” shall
mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
  
 (v) “Participant” shall mean an individual or estate who
holds an Award. 
  
 (w) “Plan” shall mean this
2003 Stock Incentive Plan of SYNNEX INFORMATION TECHNOLOGIES, INC., as amended from time to time. 
  
 (x) “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an
Option), as specified by the Committee. 
  
 (y)
“Restricted Share” shall mean a Share awarded under the Plan. 
  
 (z) “Restricted Share Agreement” shall mean the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such
Restricted Shares. 
  
 (aa) “SAR” shall mean a
stock appreciation right granted under the Plan. 
  
 (bb)
“SAR Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 
  
 (cc) “Service” shall mean service as an Employee, Consultant or Outside Director. 
  

 - 4 - 

 (dd) “Share” shall mean one share of Stock, as adjusted in accordance with Section 8 (if
applicable). 
  
 (ee) “Stock” shall mean the
Common Stock of the Company. 
  
 (ff) “Stock Option
Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his Option. 
  

(gg) “Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total
combined voting power of all classes of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
  
 SECTION 3.    ADMINISTRATION. 
  
 (a) Committee Composition. The Plan shall be administered by the
Committee. The Committee shall consist of two or more directors of the Company, who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy 
  
 (i) such requirements as the Securities and Exchange Commission may establish for administrators acting
under plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and 
  
 (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for
exemption under Section 162(m)(4)(C) of the Code. 
  
 (b)
Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed of one or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the
Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of
the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. The Board of Directors may also authorize one or more officers of the Company to designate
Employees, other than officers under Section 16 of the Exchange Act, to receive Awards and/or to determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors shall specify the total number of
Awards that such officers may so award. 
  
 (c) Committee
Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members present at
meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee. 
  
 (d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take the following
actions: 
  

 - 5 - 

 (i) To interpret the Plan and to apply its provisions; 
  
 (ii) To adopt, amend or rescind rules, procedures and forms
relating to the Plan; 
  
 (iii) To authorize any
person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; 
  
 (iv) To determine when Shares are to be awarded or offered for sale and when Options are to be granted under the Plan; 
  
 (v) To select the Offerees and Optionees; 
  
 (vi) To determine the number of Shares to be offered to each
Offeree or to be made subject to each Option; 
  
 (vii) To prescribe the terms and conditions of each award or sale of Shares, including (without limitation) the Purchase Price, the vesting of the award (including accelerating the vesting of awards, either at the time of the award or sale
or thereafter, without the consent of the Offeree or Optionee) and to specify the provisions of the Restricted Stock Agreement relating to such award or sale; 
  

(viii) To prescribe the terms and conditions of each Option, including (without limitation) the Exercise Price, the vesting or duration
of the Option (including accelerating the vesting of the Option), to determine whether such Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of the Stock Option Agreement relating to such Option;

  
 (ix) To amend any outstanding Restricted Stock
Agreement or Stock Option Agreement, subject to applicable legal restrictions and to the consent of the Offeree or Optionee who entered into such agreement if the Offeree’s or Optionee’s rights or obligations would be adversely affected;

  
 (x) To prescribe the consideration for the
grant of each Option or other right under the Plan and to determine the sufficiency of such consideration; 
  
 (xi) To determine the disposition of each Option or other right under the Plan in the event of an Optionee’s or Offeree’s
divorce or dissolution of marriage; 
  
 (xii) To
determine whether Options or other rights under the Plan will be granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 
  
 (xiii) To correct any defect, supply any omission, or reconcile any inconsistency in the Plan, any Stock
Option Agreement or any Restricted Stock Agreement; and 
  
 (xiv) To take any other actions deemed necessary or advisable for the administration of the Plan. 
  

 - 6 - 

 Subject to the requirements of applicable law, the Committee may designate persons other than members of the Committee to
carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or the granting of Options or
other rights under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all persons deriving their rights from
an Offeree or Optionee. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the Plan. 
  
 SECTION 4.    ELIGIBILITY. 
  
 (a) General Rule. Only Employees shall be eligible for the grant of
ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Nonstatutory Options or SARs. 
  
 (b) Automatic Grants to Outside Directors. 
  
 (i) Each Outside Director who first joins the Board of Directors after the effective date of the Plan, and who was not previously an
Employee, shall receive a Nonstatutory Option, subject to approval of the Plan by the Company’s stockholders, to purchase 50,000 Shares (subject to adjustment under Section 10) on the first business day after his or her election to the Board of
Directors. 
  
 (ii) On the first business day
following the conclusion of each regular annual meeting of the Company’s stockholders after such Outside Director’s appointment or election to the Board of Directors, commencing with the annual meeting occurring after the adoption of the
Plan, each Outside Director who will continue serving as a member of the Board of Directors thereafter shall receive an Option to purchase 10,000 Shares, subject to adjustment under Section 10, provided such Outside Director has served on the Board
of Directors for at least six months. 
  
 (iii)
The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d).

  
 (iv) Twenty percent (20%) of the Shares
subject to each Option granted under this Section 4(b) shall vest and become exercisable on the first anniversary of the date of grant. The balance of the Shares subject to each Option (i.e. the remaining eighty percent (80%)) granted under
this Section 4(b) shall vest and become exercisable monthly over a four-year period beginning on the day which is one month after the first anniversary of the date of grant, at a monthly rate of 1.666% of the total number of Shares subject to such
Options. 
  
 (v) Subject to Sections 4(b)(vi) and
(vii), all Nonstatutory Options granted to an Outside Director under this Section 4(e) shall terminate on the day before the tenth anniversary of the date of grant of such Options. 
  

 - 7 - 

 (vi) If an Outside Director’s Service terminates for any reason, then his or her
Options granted under this Section 4(b) shall expire on the earliest of the following occasions: 
  
 (A) The expiration date determined pursuant to Section 4(b)(v) above; 
  
 (B) The date 12 months after the termination of the Outside Director’s Service, if the termination
occurs because of his or her death or Disability; 
  
 (C) The date of the Outside Director’s termination of Service, if the termination occurs by reason of his or her Misconduct; or 
  
 (D) The date three months after the termination of the Outside Director’s Service, if the termination occurs for any reason other
than death, Disability or Misconduct. 
  
 The Outside Director may
exercise all or part of his or her Options at any time before the expiration of such Options under the preceding sentence, but only to the extent that such Options had become vested before his or her Service terminated. The balance of such Options
shall lapse when the Outside Director’s Service terminates. 
  
 (vii) In the event that the Outside Director dies after the termination of his or her Service but before the expiration of his or her Options granted under this Section 4(b), then his or her Options shall expire on
the earlier of the following dates: 
  
 (A) The
expiration date determined pursuant to Section 4(b)(v) above; or 
  
 (B) The date 12 months after his or her death. 
  
 (c) Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant
of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code. 
  
 (d) Attribution Rules. For purposes of Section 4(c) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers,
sisters, spouse, ancestors and lineal descendants. Stock owned, directly or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its stockholders, partners or beneficiaries.

  
 (e) Outstanding Stock. For purposes of Section 4(c)
above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock” shall not include shares authorized for issuance under outstanding options held by the Employee
or by any other person. 
  

 - 8 - 

 SECTION 5.    STOCK SUBJECT TO PLAN. 
  
 (a) Basic Limitation. Shares offered under the Plan shall be
authorized but unissued Shares or treasury Shares. The maximum aggregate number of Options, SARs and Restricted Shares awarded under the Plan shall not exceed 29,000,000 Shares, plus the additional Shares described in Section (b). The limitations of
this Section 5(a) shall be subject to adjustment pursuant to Section 10. The number of Shares that are subject to Options or other rights outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for
issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
  
 (b) Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such
Shares shall again become available for Awards under the Plan. If Options or SARs are forfeited or terminate for any other reason before being exercised, then the corresponding Shares shall again become available for Awards under the Plan. If SARs
are exercised, then only the number of Shares (if any) actually issued in settlement of such SARs shall reduce the number available in Section 5(a) and the balance shall again become available for Awards under the Plan. 
  
 SECTION 6.    RESTRICTED SHARES 
  
 (a) Restricted Stock Agreement. Each grant of Restricted Shares under
the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the
Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
  
 (b) Payment for Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the
Committee may determine, including (without limitation) cash, cash equivalents, full-recourse promissory notes, past services and future services. To the extent that an Award consists of newly issued Restricted Shares, the Award recipient shall
furnish consideration with a value not less than the par value of such Restricted Shares in the form of cash, cash equivalents, or past services rendered to the Company (or a Parent or Subsidiary), as the Committee may determine. 
  
 (c) Vesting. Each Award of Restricted Shares may or may not be subject
to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s
death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with
respect to the Company. 
  
 (d) Voting and Dividend Rights.
The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other stockholders. A Restricted Stock Agreement, however, may require that the holders of Restricted Shares invest
any cash dividends received in additional Restricted Shares. Such additional Restricted Shares 

  

 - 9 - 

 
shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
  
 (e) Restrictions on Transfer of Shares. Restricted Shares shall be
subject to such rights of repurchase, rights of first refusal or other restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general
restrictions that may apply to all holders of Shares. 
  
 SECTION
7.    TERMS AND CONDITIONS OF OPTIONS. 
  
 (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan
and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO
or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other compensation. 
  
 (b) Number of Shares. Each Stock Option Agreement shall specify the
number of Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 10. Options granted to an Optionee in a single calendar year of the Company shall not cover more than 3,000,000 Shares,
except that Options granted to a new Employee or Consultant in the calendar year of the Company in which his or her Service first commences shall not cover more than 5,000,000 Shares (in each case subject to adjustment in accordance with Section
10). 
  
 (c) Exercise Price. Each Stock Option Agreement
shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise provided in Section 4(c), and the Exercise Price of an NSO shall not be less 85%
of the Fair Market Value of a Share on the date of grant. Notwithstanding the foregoing, a Stock Option Agreement may specify that the exercise price of an NSO may vary in accordance with a predetermined formula. Subject to the foregoing in this
Section 7(c), the Exercise Price under any Option shall be determined by the Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 8. 
  
 (d) Withholding Taxes. As a condition to the exercise of an Option,
the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such
arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 
  
 (e) Exercisability and Term. Each Stock Option Agreement shall specify
the date when all or any installment of the Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of an ISO shall in no event exceed 10 years from the date of grant (five years
for Employees described in Section 

  

 - 10 - 

 
4(c)). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other
events and may provide for expiration prior to the end of its term in the event of the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be
exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire.

  
 (f) Exercise of Options Upon Termination of Service.
Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option
of any executors or administrators of the Optionee’s estate or any person who has acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need
not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 
  
 (g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become
exercisable as to all or part of the Shares subject to such Option in the event that a Change in Control occurs with respect to the Company. 
  
 (h) Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a Consultant to, the Company
(or any subsidiary) as determined in the sole discretion of the Board of Directors. For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms
of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee’s Service will be treated as
terminating 90 days after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends, unless such Employee immediately
returns to active work. The Company determines which leaves count toward Service, and when Service terminates for all purposes under the Plan. 
  
 (i) No Rights as a Stockholder. An Optionee, or a transferee of an Optionee, shall have no rights as a stockholder with respect to any Shares
covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 10. 
  
 (j) Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding
options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a
different exercise price, or in return for the grant of the same or a different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, adversely affect his or her rights or
obligations under such Option. 
  

 - 11 - 

 (k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be
subject to such special forfeiture conditions, rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall
apply in addition to any general restrictions that may apply to all holders of Shares. 
  
 (l) Buyout Provisions. The Committee may at any time (a) offer to buy out for a payment in cash or cash equivalents an Option previously granted or (b) authorize an Optionee to elect to cash out an Option
previously granted, in either case at such time and based upon such terms and conditions as the Committee shall establish. 
  
 SECTION 8.    PAYMENT FOR SHARES. 
  
 (a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States
of America at the time when such Shares are purchased, except as provided in Section 8(b) through Section 8(g) below. 
  
 (b) Surrender of Stock. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by surrendering, or attesting
to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the date when the new Shares are purchased under the Plan. The Optionee shall not surrender,
or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional compensation expense) with respect to the Option for financial reporting purposes.

  
 (c) Services Rendered. At the discretion of the
Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall make a determination
(at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section 6(b). 
  
 (d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by
delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (e) Exercise/Pledge. To the extent that a Stock Option Agreement so
provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds
to the Company in payment of the aggregate Exercise Price. 
  
 (f)
Promissory Note. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made all or in part by delivering (on a form prescribed by the Company) a full-recourse promissory note. However, the par
value of the Common Shares being purchased under the Plan, if newly issued, shall be paid in cash or cash equivalents. 
  

 - 12 - 

 (g) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock
Agreement so provides, payment may be made in any other form that is consistent with applicable laws, regulations and rules. 
  
 (h) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Stock Agreement to the contrary,
payment may not be made in any form that is unlawful, as determined by the Committee in its sole discretion. 
  
 SECTION 9.    STOCK APPRECIATION RIGHTS. 
  
 (a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be
subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in
consideration of a reduction in the Optionee’s other compensation. 
  
 (b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 10. SARs granted to any Optionee in a single
calendar year shall in no event pertain to more than 3,000,000 Shares, except that SARs granted to a new Employee or Consultant in the calendar year of the Company in which his or her Service first commences shall not pertain to more than 5,000,000
Shares. The limitations set forth in the preceding sentence shall be subject to adjustment in accordance with
Section 10. 
  
 (c) Exercise Price. Each SAR Agreement
shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
  
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to
become exercisable. The SAR Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for
expiration prior to the end of its term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options
are forfeited. A SAR may be included in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
  
 (e) Effect of Change in
Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company.

  
 (f) Exercise of SARs. Upon exercise of a SAR, the
Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount 

  

 - 13 - 

 
of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value
(on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
  
 (g) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the
Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the
holder, may alter or impair his or her rights or obligations under such SAR. 
  
 SECTION 10.    ADJUSTMENT OF SHARES. 
  
 (a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend payable in a form other than Shares in an amount that has a
material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a spin-off or a similar occurrence, the Committee shall make such
adjustments as it, in its sole discretion, deems appropriate in one or more of: 
  
 (i) The number of Options, SARs and Restricted Shares available for future Awards under Section 5; 
  
 (ii) The limitations set forth in Section 5(a), Section 7(b)
and Section 9(b); 
  
 (iii) The number of NSOs to
be granted to Outside Directors under Section 4(b); 
  
 (iv) The number of Shares covered by each outstanding Option and SAR; or 
  
 (v) The Exercise Price under each outstanding Option and SAR. 
  
 Except as provided in this Section 10, a Participant shall have no rights by reason of any issue by the Company of stock of any class or
securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. 
  
 (b) Dissolution or Liquidation. To the extent not previously exercised
or settled, Options and SARs shall terminate immediately prior to the dissolution or liquidation of the Company. 
  
 (c) Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for: 
  
 (i) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 
  

 - 14 - 

 (ii) The assumption of the outstanding Awards by the surviving corporation or its parent
or subsidiary; 
  
 (iii) The substitution by the
surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 
  
 (iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 
  
 (v) Settlement of the full value of the outstanding Awards in
cash or cash equivalents followed by cancellation of such Awards. 
  
 (d) Reservation of Rights. Except as provided in this Section 10, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other
increase or decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be
made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or
changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 SECTION 11.    LEGAL AND REGULATORY REQUIREMENTS. 
  
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of
law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may
then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary or advisable. 
  
 SECTION 12.    WITHHOLDING TAXES. 
  
 (a) General. To the extent required by applicable federal, state, local or foreign law, a Participant or his or her
successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or make any cash payment under the
Plan until such obligations are satisfied. 
  
 (b) Share
Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by
surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld
that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding. 
  

 - 15 - 

 SECTION 13.    LIMITATION ON PARACHUTE PAYMENTS. 
  
 (a) Scope of Limitation. This Section 13 shall apply to an Award only
if: 
  
 (i) The independent auditors most recently
selected by the Board (the “Auditors”) determine that the after-tax value of such Award to the Optionee or Offeree, taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes applicable
to the Optionee or Offeree (including the excise tax under section 4999 of the Code), will be greater after the application of this Section 13 than it was before application of this Section 13; or 
  
 (ii) The Committee, at the time of making an Award under the
Plan or at any time thereafter, specifies in writing that such Award shall be subject to this Section 13 (regardless of the after-tax value of such Award to the Participant). 
  
 (b) Basic Rule. In the event that the Auditors determine that any payment or transfer by the Company under the Plan
to or for the benefit of a Participant (a “Payment”) would be nondeductible by the Company for federal income tax purposes because of the provisions concerning “excess parachute payments” in Section 280G of the Code, then the
aggregate present value of all Payments shall be reduced (but not below zero) to the Reduced Amount. For purposes of this Section 13, the “Reduced Amount” shall be the amount, expressed as a present value, which maximizes the aggregate
present value of the Payments without causing any Payment to be nondeductible by the Company because of Section 280G of the Code. 
  
 (c) Reduction of Payments. If the Auditors determine that any Payment would be nondeductible by the Company because of Section 280G of the Code,
then the Company shall promptly give the Participant notice to that effect and a copy of the detailed calculation thereof and of the Reduced Amount, and the Participant may then elect, in his or her sole discretion, which and how much of the
Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the Reduced Amount) and shall advise the Company in writing of his or her election within 10 days of receipt of notice. If no
such election is made by the Participant within such 10-day period, then the Company may elect which and how much of the Payments shall be eliminated or reduced (as long as after such election the aggregate present value of the Payments equals the
Reduced Amount) and shall notify the Participant promptly of such election. For purposes of this Section 13, present value shall be determined in accordance with Section 280G(d)(4) of the Code. All determinations made by the Auditors under this
Section 13 shall be binding upon the Company and the Participant and shall be made within 60 days of the date when a Payment becomes payable or transferable. As promptly as practicable following such determination and the elections hereunder, the
Company shall pay or transfer to or for the benefit of the Participant such amounts as are then due to him or her under the Plan and shall promptly pay or transfer to or for the benefit of the Participant in the future such amounts as become due to
him or her under the Plan. 
  
 (d) Overpayments and
Underpayments. As a result of uncertainty in the application of Section 280G of the Code at the time of an initial determination by the Auditors hereunder, it is possible that Payments will have been made by the Company that should not have been
made (an “Overpayment”) or that additional Payments that will not have been made by the Company 

  

 - 16 - 

 
could have been made (an “Underpayment”), consistent in each case with the calculation of the Reduced Amount hereunder. In the event that the
Auditors, based upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant that the Auditors believe has a high probability of success, determine that an Overpayment has been made, such Overpayment
shall be treated for all purposes as a loan to the Participant which he or she shall repay to the Company, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code; provided, however, that no amount shall be
payable by the Participant to the Company if and to the extent that such payment would not reduce the amount subject to taxation under Section 4999 of the Code. In the event that the Auditors determine that an Underpayment has occurred, such
Underpayment shall promptly be paid or transferred by the Company to or for the benefit of the Participant, together with interest at the applicable federal rate provided in Section 7872(f)(2) of the Code. 
  
 (e) Related Corporations. For purposes of this Section 13, the term
“Company” shall include affiliated corporations to the extent determined by the Auditors in accordance with Section 280G(d)(5) of the Code. 
  
 SECTION 14.    NO EMPLOYMENT RIGHTS. 
  
 No provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any person any right to become, to be treated as, or
to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice. 
  
 SECTION 15.    DURATION AND AMENDMENTS. 
  
 (a) Term of the Plan. The Plan, as set forth herein, shall terminate automatically on September 1, 2013, and may be
terminated on any earlier date pursuant to Subsection (b) below. 
  
 (b) Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Option granted before amendment of the Plan shall not be materially impaired by
such amendment, except with consent of the person to whom the Option was granted. An amendment of the Plan shall be subject to the approval of the Company’s stockholders only to the extent required by applicable laws, regulations or rules.

  
 (c) Effect of Amendment or Termination. No Shares shall
be issued or sold under the Plan after the termination thereof, except upon exercise of an Option granted prior to such termination. The termination of the Plan, or any amendment thereof, shall not affect any Share previously issued or any Option
previously granted under the Plan. 
  
 SECTION
16.    EXECUTION. 
  
 To record the
adoption of the Plan by the Board of Directors effective as of September 2, 2003, the Company has caused its authorized officer to execute the same. 
  

 - 17 - 

	SYNNEX INFORMATION TECHNOLOGIES, INC.
		
	By	 	  

	 	 	Robert Huang
	 	 	President and Chief Executive Officer

  

 - 18 -Form of 2003 Employee Stock Purchase Plan

 Exhibit 10.5 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 SYNNEX INFORMATION TECHNOLOGIES, INC. 
  
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
  
  
  
 (Adopted by the Board on September 2, 2003) 

 Table of Contents 
  

	 	  	Page

	 SECTION 1    Purpose Of The Plan
	  	1
		
	SECTION 2    Definitions	  	1
		
	 (a) “Accumulation Period”
	  	1
		
	 (b) “Board”
	  	1
		
	 (c) “Code”
	  	1
		
	 (d) “Committee”
	  	1
		
	 (e) “Company”
	  	1
		
	 (f) “Compensation”
	  	1
		
	 (g) “Corporate Reorganization”
	  	1
		
	 (h) “Eligible Employee”
	  	2
		
	 (i) “Exchange Act”
	  	2
		
	 (j) “Fair Market Value”
	  	2
		
	 (k) “IPO”
	  	2
		
	 (l) “Offering Period”
	  	2
		
	 (m) “Participant”
	  	2
		
	 (n) “Participating Company”
	  	3
		
	 (o) “Plan”
	  	3
		
	 (p) “Plan Account”
	  	3
		
	 (q) “Purchase Price”
	  	3
		
	 (r) “Stock”
	  	3
		
	 (s) “Subsidiary”
	  	3
		
	SECTION 3    Administration Of The Plan	  	3
		
	 (a) Committee Composition
	  	3
		
	 (b) Committee Responsibilities
	  	3
		
	 SECTION 4    Enrollment And Participation
	  	3
		
	 (a) Offering Periods
	  	3
		
	 (b) Accumulation Periods
	  	3
		
	 (c) Enrollment
	  	3
		
	 (d) Duration of Participation
	  	4
		
	 (e) Applicable Offering Period
	  	4
		
	SECTION 5    Employee Contributions	  	4
		
	 (a) Frequency of Payroll Deductions
	  	4
		
	 (b) Amount of Payroll Deductions
	  	5
		
	 (c) Changing Withholding Rate
	  	5
		
	 (d) Discontinuing Payroll Deductions
	  	5
		
	 (e) Limit on Number of Elections
	  	5
		
	SECTION 6    Withdrawal From The Plan	  	5
		
	 (a) Withdrawal
	  	5
		
	 (b) Re-enrollment After Withdrawal
	  	5

  
  

 i 

	SECTION 7    Change In Employment Status	  	5
		
	 (a) Termination of Employment
	  	5
		
	 (b) Leave of Absence
	  	6
		
	 (c) Death
	  	6
		
	 SECTION 8    Plan Accounts And Purchase Of Shares
	  	6
		
	 (a) Plan Accounts
	  	6
		
	 (b) Purchase Price
	  	6
		
	 (c) Number of Shares Purchased
	  	6
		
	 (d) Available Shares Insufficient
	  	7
		
	 (e) Issuance of Stock
	  	7
		
	 (f) Unused Cash Balances
	  	7
		
	 (g) Stockholder Approval
	  	7
		
	SECTION 9    Limitations On Stock Ownership	  	7
		
	 (a) Five Percent Limit
	  	7
		
	 (b) Dollar Limit
	  	8
		
	SECTION 10    Rights Not Transferable	  	8
		
	SECTION 11    No Rights As An Employee	  	9
		
	SECTION 12    No Rights As A Stockholder	  	9
		
	SECTION 13    Securities Law Requirements	  	9
		
	SECTION 14    Stock Offered Under The Plan	  	9
		
	 (a) Authorized Shares
	  	9
		
	 (b) Antidilution Adjustments
	  	9
		
	 (c) Reorganizations
	  	9
		
	SECTION 15    Amendment Or Discontinuance	  	10
		
	SECTION 16    Execution	  	10

  

 ii 

 SYNNEX INFORMATION TECHNOLOGIES, INC. 
  
 2003 EMPLOYEE STOCK PURCHASE PLAN 
  
 SECTION 1    Purpose Of The Plan. 
  
 The Plan was adopted by the Board on September 2, 2003, effective as of the
date of the IPO. The purpose of the Plan is to provide Eligible Employees with an opportunity to increase their proprietary interest in the success of the Company by purchasing Stock from the Company on favorable terms and to pay for such purchases
through payroll deductions. The Plan is intended to qualify under section 423 of the Code. 
  
 SECTION 2    Definitions. 
  
 (a)    “Accumulation Period” means a three-month period during which contributions may be made toward the purchase of Stock under the Plan, as determined pursuant to Section 4(b).

  
 (b)    “Board” means the
Board of Directors of the Company, as constituted from time to time. 
  
 (c)    “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d)    “Committee” means a the Compensation Committee of the Board, as described in Section 3. 
  
 (e)    “Company” means SYNNEX
INFORMATION TECHNOLOGIES, INC., a Delaware Corporation. 
  
 (f)    “Compensation” means (i) the compensation paid in cash to a Participant by a Participating Company, including
salaries, wages, incentive compensation, bonuses, overtime pay and shift premiums, plus (ii) any pre-tax contributions made by the Participant under section 401(k) or 125 of the Code. “Compensation” shall exclude all non-cash items,
commissions, moving or relocation allowances, cost-of-living equalization payments, car allowances, tuition reimbursements, imputed income attributable to cars or life insurance, severance pay, fringe benefits, contributions or benefits received
under employee benefit plans, income attributable to the exercise of stock options, and similar items. The Committee shall determine whether a particular item is included in Compensation. 
  
 (g)    “Corporate Reorganization” means: 
  
 (i)    The consummation of a merger or
consolidation of the Company with or into another entity or any other corporate reorganization in which the Company’s 

  

 1 

 
stockholders immediately prior thereto own less than 50% of the voting securities of the Company (or its successor or parent) immediately thereafter; or

  
 (ii)    The sale, transfer
or other disposition of all or substantially all of the Company’s assets or the complete liquidation or dissolution of the Company. 
  
 (h)    “Eligible Employee” means any employee of a Participating Company, other than an officer or director who
qualifies as a “highly compensated employee” under Section 414(q) of the Code, whose customary employment is for more than five months per calendar year and for more than 20 hours per week. 
  
 The foregoing notwithstanding, an individual shall not be considered an
Eligible Employee if his or her participation in the Plan is prohibited by the law of any country which has jurisdiction over him or her or if he or she is subject to a collective bargaining agreement that does not provide for participation in the
Plan. 
  
 (i)    “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 (j)    “Fair Market Value” means the market price of Stock, determined by the Committee as follows: 
  
 (i)    If Stock was traded on a stock exchange on the date in question, then the Fair Market Value shall be equal to
the closing price reported by the applicable composite transactions report for such date; 
  
 (ii)    If Stock was traded on The Nasdaq National Market on the date in question, then the Fair Market Value shall be
equal to the last-transaction price quoted for such date by The Nasdaq National Market; or 
  
 (iii)    If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the
Committee in good faith on such basis as it deems appropriate. 
  
 Whenever possible, the determination of Fair Market Value by the Committee shall be based on the prices reported in the Wall Street Journal or as reported directly to the Company by a stock exchange or Nasdaq. Such determination
shall be conclusive and binding on all persons. 
  
 (k)    “IPO” means the initial offering of Stock to the public pursuant to a registration statement filed by the Company with the Securities and Exchange Commission. 
  
 (l)    “Offering Period” means a
24-month period with respect to which the right to purchase Stock may be granted under the Plan, as determined pursuant to Section 4(a). 
  
 (m)    “Participant” means an Eligible Employee who elects to participate in the Plan, as provided in Section 4(c).

  

 2 

 (n)    “Participating Company” means (i) the Company and (ii) each
present or future Subsidiary designated by the Committee as a Participating Company. 
  
 (o)    “Plan” means this SYNNEX INFORMATION TECHNOLOGIES, INC. 2003 Employee Stock Purchase Plan, as it may be amended from time to
time. 
  
 (p)    “Plan
Account” means the account established for each Participant pursuant to Section 8(a). 
  
 (q)    “Purchase Price” means the price at which Participants may purchase Stock under the Plan, as determined pursuant to Section 8(b). 
  
 (r)    “Stock” means the Common Stock of
the Company. 
  
 (s)    “Subsidiary” means any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the
unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. 
  
 SECTION 3    Administration Of The Plan. 
  
 (a)    Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist exclusively of one
or more directors of the Company, who shall be appointed by the Board. 
  
 (b)    Committee Responsibilities. The Committee shall interpret the Plan and make all other policy decisions relating to the operation of the Plan. The Committee may adopt such rules, guidelines and forms as it
deems appropriate to implement the Plan. The Committee’s determinations under the Plan shall be final and binding on all persons. 
  
 SECTION 4    Enrollment And Participation. 
  
 (a)    Offering Periods. While the Plan is in effect, two Offering Periods shall commence in each calendar year. The Offering
Periods shall consist of the 24-month periods, unless otherwise determined by the Committee, commencing on October 1 and April 1 of each year, except that the first Offering Period shall commence on the date of the IPO and end on September 30, 2005.
The next Offering Period shall commence on April 1, 2004 and will end on March 31, 2006. 
  
 (b)    Accumulation Periods. While the Plan is in effect, two Accumulation Periods shall commence in each calendar year. The Accumulation Periods shall consist of the six-month periods
commencing on October 1 and April 1, except that the first Accumulation Period shall commence on the date of the IPO and end on March 31, 2004. Employees may participate in only one Offering Period at a time. 
  
 (c)    Enrollment. Any individual who, on the day
preceding the first day of an Offering Period (other than the initial Offering Period), qualifies as an Eligible Employee may elect to 

  

 3 

 
become a Participant in the Plan for such Offering Period by executing the enrollment form prescribed for this purpose by the Committee. The enrollment form
shall be filed with the Company at the prescribed location not later than 15 days prior to the commencement of such Offering Period. All Eligible Employees shall be automatically enrolled in the initial Offering Period under the Plan. 
  
 (d)    Duration of Participation. Once enrolled in
the Plan, a Participant shall continue to participate in the Plan until he or she ceases to be an Eligible Employee, withdraws from the Plan under Section 6(a) or reaches the end of the Offering Period in which his or her employee contributions were
discontinued under Section 5(d) or Section 9(b). A Participant who discontinued employee contributions under Section 5(d) or withdrew from the Plan under Section 6(a) may again become a Participant, if he or she then is an Eligible Employee, by
following the procedure described in Subsection (c) above. A Participant whose employee contributions were discontinued automatically under Section 9(b) shall automatically resume participation at the beginning of the earliest Offering Period ending
in the next calendar year, if he or she then is an Eligible Employee. 
  
 (e)    Applicable Offering Period. For purposes of calculating the purchase price under Section 8(b), the applicable Offering Period shall be determined as follows: 
  
 (i)    Once a Participant is enrolled in
the Plan for an Offering Period, such Offering Period shall continue to apply to him or her until the earliest of: (A) the end of such Offering Period; (B) the end of his or her participation under Subsection (d) above; or (C) re-enrollment in a
subsequent Offering Period under Paragraph (ii) below. 
  
 (ii)    In the event that the Fair Market Value of Stock on the last trading day on or before the commencement of the Offering Period in which the Participant is enrolled is higher than on the last trading day on or
before the commencement of any subsequent Offering Period, the Participant shall automatically be re-enrolled for such subsequent Offering Period. 
  
 (iii)    When a Participant reaches the end of an Offering Period but his or her participation is to continue, then
such Participant shall automatically be re-enrolled for the Offering Period that commences immediately after the end of the prior Offering Period. 
  
 SECTION 5    Employee Contributions. 
  
 (a)    Frequency of Payroll Deductions. A Participant may purchase shares of Stock under the Plan solely by means of payroll
deductions; provided, however, that in the initial Accumulation Period, Participants may also purchase shares of Stock by making a lump sum cash payment at the end of the Accumulation Period. Payroll deductions, as designated by the Participant
pursuant to Subsection (b) below, shall occur on each payday during participation in the Plan. 
  

 4 

 (b)    Amount of Payroll Deductions. An Eligible Employee shall designate on
the enrollment form the portion of his or her Compensation that he or she elects to have withheld for the purchase of Stock. Such portion shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than
15%. During the initial Accumulation Period, no payroll deduction will be made unless a Participant timely files the proper form with the Company after a registration statement covering the Stock is filed and effective under the Securities Act of
1933, as amended. 
  
 (c)    Changing
Withholding Rate. If a Participant wishes to change the rate of payroll withholding, he or she may do so by filing a new enrollment form with the Company at the prescribed location at any time. The new withholding rate shall be effective as soon
as reasonably practicable after such form has been received by the Company. The new withholding rate shall be a whole percentage of the Eligible Employee’s Compensation, but not less than 1% nor more than 15%. 
  
 (d)    Discontinuing Payroll Deductions. If a
Participant wishes to discontinue employee contributions entirely, he or she may do so by filing a new enrollment form with the Company at the prescribed location at any time. Payroll withholding shall cease as soon as reasonably practicable after
such form has been received by the Company. In addition, employee contributions may be discontinued automatically pursuant to Section 9(b). A Participant who has discontinued employee contributions may resume such contributions by filing a new
enrollment form with the Company at the prescribed location. Payroll withholding shall resume as soon as reasonably practicable after such form has been received by the Company. 
  
 (e)    Limit on Number of Elections. The Committee may limit the number of elections that a
Participant may make under Subsection (c) or (d) above during any Accumulation Period. 
  
 SECTION 6    Withdrawal From The Plan. 
  
 (a)    Withdrawal. A Participant may elect to withdraw from the Plan by filing the prescribed form with the Company at the prescribed location at any time before the last day of an
Accumulation Period. In addition, in the initial Accumulation Period, Participants may be deemed to withdraw from the Plan by declining or failing to remit timely payment to the Company for the shares of Stock. As soon as reasonably practicable
thereafter, payroll deductions shall cease and the entire amount credited to the Participant’s Plan Account shall be refunded to him or her in cash, without interest. No partial withdrawals shall be permitted. 
  
 (b)    Re-enrollment After Withdrawal. A former
Participant who has withdrawn from the Plan shall not be a Participant until he or she re-enrolls in the Plan under Section 4(c). Re-enrollment may be effective only at the commencement of an Offering Period. 
  
 SECTION 7    Change In Employment Status. 
  
 (a)    Termination of Employment. Termination of
employment as an Eligible Employee for any reason, including death, shall be treated as an automatic withdrawal from the Plan under 

  

 5 

 
Section 6(a). A transfer from one Participating Company to another shall not be treated as a termination of employment. 
  
 (b)    Leave of Absence. For purposes of the Plan,
employment shall not be deemed to terminate when the Participant goes on a military leave, a sick leave or another bona fide leave of absence, if the leave was approved by the Company in writing. Employment, however, shall be deemed to terminate 90
days after the Participant goes on a leave, unless a contract or statute guarantees his or her right to return to work. Employment shall be deemed to terminate in any event when the approved leave ends, unless the Participant immediately returns to
work. 
  
 (c)    Death. In the event of
the Participant’s death, the amount credited to his or her Plan Account shall be paid to a beneficiary designated by him or her for this purpose on the prescribed form or, if none, to the Participant’s estate. Such form shall be valid only
if it was filed with the Company at the prescribed location before the Participant’s death. 
  
 SECTION 8    Plan Accounts And Purchase Of Shares. 
  
 (a)    Plan Accounts. The Company shall maintain a Plan Account on its books in the name of each Participant. Whenever an
amount is deducted from the Participant’s Compensation under the Plan, such amount shall be credited to the Participant’s Plan Account. Amounts credited to Plan Accounts shall not be trust funds and may be commingled with the
Company’s general assets and applied to general corporate purposes. No interest shall be credited to Plan Accounts. 
  
 (b)    Purchase Price. The Purchase Price for each share of Stock purchased at the close of an Accumulation Period shall be the
lower of: 
  
 (i)    85% of
the Fair Market Value of such share on the last trading day in such Accumulation Period; or 
  
 (ii)    85% of the Fair Market Value of such share on the first trading day of the applicable Offering Period (as
determined under Section 4(e)) or, in the case of the first Offering Period under the Plan, 85% of the price at which one share of Stock is offered to the public in the IPO. 
  
 (c)    Number of Shares Purchased. As of the last day of each Accumulation
Period, each Participant shall be deemed to have elected to purchase the number of shares of Stock calculated in accordance with this Subsection (c), unless the Participant has previously elected to withdraw from the Plan in accordance with Section
6(a). The amount then in the Participant’s Plan Account shall be divided by the Purchase Price, and the number of shares that results shall be purchased from the Company with the funds in the Participant’s Plan Account. The foregoing
notwithstanding, no Participant shall purchase more than 2,500 shares of Stock with respect to any Accumulation Period nor more than the amounts of Stock set forth in Section 9(b) and Section 14(a). Any fractional share, as calculated under this
Subsection (c), shall be rounded down to the next lower whole share. For each Accumulation Period, the Committee shall have 

  

 6 

 
the authority to establish additional limits on the number of shares purchasable by each Participant or by all Participants in the aggregate. 
  
 (d)    Available Shares Insufficient. In the event
that the aggregate number of shares that all Participants elect to purchase during an Accumulation Period exceeds the maximum number of shares remaining available for issuance under Section 14(a), then the number of shares to which each Participant
is entitled shall be determined by multiplying the number of shares available for issuance by a fraction, the numerator of which is the number of shares that such Participant has elected to purchase and the denominator of which is the number of
shares that all Participants have elected to purchase. 
  
 (e)    Issuance of Stock. Certificates representing the shares of Stock purchased by a Participant under the Plan shall be issued to him or her as soon as reasonably practicable after the close of the applicable
Accumulation Period, except that the Committee may determine that such shares shall be held for each Participant’s benefit by a broker designated by the Committee (unless the Participant has elected that certificates be issued to him or her).
Shares may be registered in the name of the Participant or jointly in the name of the Participant and his or her spouse as joint tenants with right of survivorship or as community property. 
  
 (f)    Unused Cash Balances. An amount remaining
in the Participant’s Plan Account that represents the Purchase Price for any fractional share shall be carried over in the Participant’s Plan Account to the next Accumulation Period. Any amount remaining in the Participant’s Plan
Account that represents the Purchase Price for whole shares that could not be purchased by reason of Subsection (c) above, Section 9(b) or Section 14(a) shall be refunded to the Participant in cash, without interest. 
  
 (g)    Stockholder Approval. Any other provision
of the Plan notwithstanding, no shares of Stock shall be purchased under the Plan unless and until the Company’s stockholders have approved the adoption of the Plan. 
  
 SECTION 9    Limitations On Stock Ownership. 
  
 (a)    Five Percent Limit. Any other provision of the Plan notwithstanding, no Participant shall
be granted a right to purchase Stock under the Plan if such Participant, immediately after his or her election to purchase such Stock, would own stock possessing 5% or more of the total combined voting power or value of all classes of stock of the
Company or any parent or Subsidiary of the Company. For purposes of this Subsection (a), the following rules shall apply: 
  
 (i)    Ownership of stock shall be determined after applying the attribution rules of section 424(d) of the Code;

  
 (ii)    Each Participant
shall be deemed to own any stock that he or she has a right or option to purchase under this or any other plan; and 
  
 (iii)    Each Participant shall be deemed to have the right to purchase up to the maximum number of shares of Stock
that may be purchased by a Participant under this 

  

 7 

 
Plan under the individual limit specified in Section 8(c) with respect to each Accumulation Period. 
  
 (b)    Dollar Limit. Any other provision of the
Plan notwithstanding, no Participant shall purchase Stock with a Fair Market Value in excess of the following limit: 
  
 (i)    In the case of Stock purchased during an Offering Period that commenced in the current calendar year, the limit
shall be equal to (A) $25,000 minus (B) the Fair Market Value of the Stock that the Participant previously purchased in the current calendar year (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary
of the Company). 
  
 (ii)    In the case of Stock purchased during an Offering Period that commenced in the immediately preceding calendar year, the limit shall be equal to (A) $50,000 minus (B) the Fair Market Value of the Stock that the
Participant previously purchased (under this Plan and all other employee stock purchase plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the immediately preceding calendar year. 
  
 (iii)    In the case of Stock purchased
during an Offering Period that commenced in the second preceding calendar year, the limit shall be equal to (A) $75,000 minus (B) the Fair Market Value of the Stock that the Participant previously purchased (under this Plan and all other employee
stock purchase plans of the Company or any parent or Subsidiary of the Company) in the current calendar year and in the two preceding calendar years. 
  
 For purposes of this Subsection (b), the Fair Market Value of Stock shall be determined in each case as of the beginning of the Offering Period in which
such Stock is purchased. Employee stock purchase plans not described in section 423 of the Code shall be disregarded. If a Participant is precluded by this Subsection (b) from purchasing additional Stock under the Plan, then his or her employee
contributions shall automatically be discontinued and shall resume at the beginning of the earliest Accumulation Period ending in the next calendar year (if he or she then is an Eligible Employee). 
  
 SECTION 10    Rights Not Transferable. 
  
 The rights of any Participant under the Plan, or any Participant’s
interest in any Stock or moneys to which he or she may be entitled under the Plan, shall not be transferable by voluntary or involuntary assignment or by operation of law, or in any other manner other than by beneficiary designation or the laws of
descent and distribution. If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than by beneficiary designation or the laws of descent and distribution, then such act
shall be treated as an election by the Participant to withdraw from the Plan under Section 6(a). 
  

 8 

 SECTION 11    No Rights As An Employee. 
  
 Nothing in the Plan or in any right granted under the Plan shall confer upon
the Participant any right to continue in the employ of a Participating Company for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Participating Companies or of the Participant, which rights are
hereby expressly reserved by each, to terminate his or her employment at any time and for any reason, with or without cause. 
  
 SECTION 12    No Rights As A Stockholder. 
  
 A Participant shall have no rights as a stockholder with respect to any shares of Stock that he or she may have a right to purchase under the Plan until
such shares have been purchased on the last day of the applicable Offering Period. 
  
 SECTION 13    Securities Law Requirements. 
  
 Shares of Stock shall not be issued under the Plan unless the issuance and delivery of such shares comply with (or are exempt from) all applicable requirements of law, including (without limitation) the Securities Act
of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations, and the regulations of any stock exchange or other securities market on which the Company’s securities may then be traded. 

 
 SECTION 14    Stock Offered Under The Plan. 

 
 (a)    Authorized Shares. The maximum aggregate
number of shares of Stock available for purchase under the Plan is One Million (1,000,000) shares. The aggregate number of shares available for purchase under the Plan shall at all times be subject to adjustment pursuant to Section 14. 

 
 (b)    Antidilution Adjustments. The aggregate
number of shares of Stock offered under the Plan, the individual Participant share limitation described in Section 8(c) and the price of shares that any Participant has elected to purchase shall be adjusted proportionately by the Committee for any
increase or decrease in the number of outstanding shares of Stock resulting from a subdivision or consolidation of shares or the payment of a stock dividend, any other increase or decrease in such shares effected without receipt or payment of
consideration by the Company, the distribution of the shares of a Subsidiary to the Company’s stockholders or a similar event. 
  
 (c)    Reorganizations. Any other provision of the Plan notwithstanding, immediately prior to the effective time of a Corporate
Reorganization, the Offering Period then in progress shall terminate and shares shall be purchased pursuant to Section 8, unless the Plan is assumed by the surviving corporation or its parent corporation pursuant to the plan of merger or
consolidation. The Plan shall in no event be construed to restrict in any way the Company’s right to undertake a dissolution, liquidation, merger, consolidation or other reorganization. 
  

 9 

 SECTION 15    Amendment Or Discontinuance. 
  
 The Board shall have the right to amend, suspend or terminate the Plan at any
time and without notice. Unless earlier terminated by the Board, the Plan shall terminate on September 1, 2013. Except as provided in Section 14, any increase in the aggregate number of shares of Stock to be issued under the Plan shall be subject to
approval by a vote of the stockholders of the Company. In addition, any other amendment of the Plan shall be subject to approval by a vote of the stockholders of the Company to the extent required by an applicable law or regulation. 
  
 SECTION 16    Execution. 
  
 To record the adoption of the Plan by the Board on September 2, 2003, the
Company has caused its authorized officer to execute the same. 
  

	SYNNEX INFORMATION TECHNOLOGIES, INC.
		
	 By:
	 	  

	 	 	 Robert Huang
 President and Chief
Executive Officer

  

 10

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