Document:

exv10w1

Exhibit 10.1

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AGREEMENT

     This Agreement (the “Agreement”), dated as of May 28, 2008, is by and among certain
entities listed on Schedule A hereto (collectively, the “Shamrock Group”, and each
individually a “member” of the Shamrock Group) and Coinstar, Inc. (the “Company”).

     WHEREAS, the members of the Shamrock Group are the beneficial owners (as defined in Rule 13d-3
promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of,
in the aggregate, 3,712,755 shares of common stock, par value $0.001 per share, of the Company (the
“Common Stock”);

     WHEREAS, on April 4, 2008, a representative of certain members of the Shamrock Group delivered
to the Company a “Notice of Director Nominations to be Brought Before the 2008 Annual Meeting of
Coinstar, Inc. Stockholders” (the “Nomination Letter”), and on April 25, 2008, members of
the Shamrock Group filed a definitive Proxy Statement on Schedule 14A (together with the proxy card
and other solicitation materials filed in connection therewith pursuant to the rules promulgated
under Section 14(a) of the Exchange Act, the “Shamrock Proxy Statement”) with the
Securities and Exchange Commission (the “SEC”); and

     WHEREAS, the Company and the Board of Directors of the Company (the “Board”), on the
one hand, and the Shamrock Group, on the other hand, wish to enter into certain agreements relating
to the composition of the Board, the termination of the pending proxy contest for the election of
directors at the Company’s 2008 Annual Meeting of Stockholders (the “2008 Annual Meeting”)
and other matters as more fully set forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

     1. Certain Defined Terms. As used herein, the following terms have the following
meanings:

“2008 Annual Meeting” shall have the meaning set forth in the Recitals.

“2009 Annual Meeting” shall have the meaning set forth in Section 3.

“2010 Annual Meeting” shall have the meaning set forth in Section 2(c).

“Additional Director” shall have the meaning set forth in Section 3.

“Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the
Exchange Act.

“Agreement” shall have the meaning set forth in the Introductory Paragraph.

“Applicable Meetings” shall have the meaning set forth in Section 4(c).

 

 

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“Associate” shall have the meaning set forth in Rule 12b-2 promulgated under the
Exchange Act.

“Board” shall have the meaning set forth in the Recitals.

“Bylaws” shall have the meaning set forth in Section 2(c).

“Common Stock” shall have the meaning set forth in the Recitals.

“Company” shall have the meaning set forth in the Introductory Paragraph.

“Deadline” shall have the meaning set forth in Section 2(c).

“Director Selection Process” shall have the meaning set forth in Section 3.

“Director Termination Date” shall mean the earliest of: (i) the date on which those
directors elected at the 2010 Annual Meeting are duly elected and qualified to the Board in
accordance with the Bylaws; (ii) the first date on which any member of the Shamrock Group
violates or engages in any of the activities prohibited by Section 4 hereof; (iii) the first
date on which the members of the Shamrock Group sell, transfer or otherwise dispose of any
or all of the Common Stock such that the Shamrock Group’s aggregate beneficial ownership (as
defined in Rule 13d-3 promulgated under the Exchange Act) of Common Stock is reduced to
1,856,377 or fewer shares of Common Stock (as adjusted for any dividends of Common Stock,
stock splits, stock combinations, reclassifications, recapitalizations or the like); or (iv)
the first date on which the Selected Shamrock Director shall no longer be in office as a
member of the Board and the Shamrock Group shall not have the right to name a successor to
such Selected Shamrock Director (or designate a pool of three candidates) as provided in
Section 2(d) hereof.

“Exchange Act” shall have the meaning set forth in the Recitals.

“Nominating and Governance Committee” shall have the meaning set forth in Section
2(a).

“Nomination Letter” shall have the meaning set forth in the Recitals.

“person” shall mean any individual, corporation (including not-for-profit), general
or limited partnership, limited liability or unlimited liability company, joint venture,
estate, trust, association, organization or other entity of any kind or nature.

“SEC” shall have the meaning set forth in the Recitals.

“Selected Shamrock Director” shall have the meaning set forth in Section 2(b).

“Shamrock Affiliates” shall have the meaning set forth in Section 4(a).

“Shamrock Expense Notice” shall have the meaning set forth in Section 6.

“Shamrock Group” shall have the meaning set forth in the Introductory Paragraph.

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“Shamrock Nominee” shall have the meaning set forth in Section 2(a).

“Shamrock Proxy Statement” shall have the meaning set forth in the Recitals.

     2. Selected Shamrock Director.

          (a) On or promptly after the date hereof, one or more members of the Company’s Nominating and
Governance Committee (the “Nominating and Governance Committee”) will interview Eugene I.
Krieger, John M. Panettiere and Arik Ahitov (each, a “Shamrock Nominee”). Following such
interviews, the Nominating and Governance Committee will evaluate the overall qualifications,
background and experience of each Shamrock Nominee and recommend one of them for appointment to
the Board.

          (b) Promptly after receiving the recommendation of the Nominating and Governance Committee,
the Board will evaluate the Shamrock Nominees and, taking into consideration the recommendation of
the Nominating and Governance Committee, select one Shamrock Nominee for appointment to the Board
(the “Selected Shamrock Director”).

          (c) No later than 5:00 pm Pacific Time on May 29, 2008 (the “Deadline”), the Board
shall, pursuant to the powers granted to it under the Amended and Restated Bylaws of the Company
(the “Bylaws”), increase the size of the Board by one (with such newly created
directorship to be a member of the class of directors whose terms expire at the Company’s 2010
Annual Meeting of Stockholders (the “2010 Annual Meeting”)) and appoint the Selected
Shamrock Director to fill the new directorship so created on the Board, to serve in such capacity
from such date of appointment through the Director Termination Date. If the Shamrock Selected
Director is not appointed to the Board by the Deadline, then the Shamrock Group shall be entitled
to specific performance of the Company’s obligations hereunder, in addition to any other rights or
remedies available to the Shamrock Group or any member thereof at law or in equity.

          (d) In the event of the death or incapacity of the Selected Shamrock Director prior to the
2010 Annual Meeting, the Shamrock Group shall be entitled to designate a person to replace the
Selected Shamrock Director to serve on the Board by delivery of a written notice to the Company
within thirty (30) days after the Selected Shamrock Director dies or becomes incapacitated. Such
person’s credentials shall be promptly reviewed by and he or she shall be promptly interviewed by
the Nominating and Governance Committee and, subject to such Committee’s and the Board’s approval,
such person shall be promptly appointed to the Board to serve until the Director Termination Date;
provided, such approval of the Nominating and Governance Committee and of the Board shall
not be unreasonably conditioned, withheld or delayed. In the event that either the Nominating and
Governance Committee or the Board shall in good faith reasonably withhold approval of a person so
designated by the Shamrock Group to replace the Selected Shamrock Director, the Shamrock Group
shall have the right to designate additional persons for appointment as the Selected Shamrock
Director in accordance with the provisions of this Section 2(d) until one of the Shamrock Group’s
designees is approved and appointed to serve as the replacement Selected Shamrock Director. In
addition, in the event that prior to the 2010 Annual Meeting any Selected Shamrock Director is no
longer willing to serve in such capacity, the Shamrock Group shall have the right to designate a
pool of three

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individuals from which the Nominating and Governance Committee and the Board shall select a
replacement for the Selected Shamrock Director who is no longer willing to so serve. The
credentials of each of the three persons designated by the Shamrock Group shall be promptly
reviewed, and each shall be promptly interviewed, by the Nominating and Governance Committee. The
person selected as the replacement Selected Shamrock Director by the Nominating and Governance
Committee and the Board from the three individuals designated by the Shamrock Group shall be
appointed to the Board as promptly as reasonably practicable (and in no event later than thirty
(30) days after the date the Shamrock Group designates its three proposed replacements), to serve
until the Director Termination Date. Any person appointed to the Board pursuant to this Section
2(d) shall thereafter be the “Selected Shamrock Director” for all purposes of this Agreement. For
the avoidance of doubt, except as set forth in this Section 2(d), the Shamrock Group shall not be
entitled to remove or otherwise replace the Selected Shamrock Director.

          (e) While serving on the Board and any committee thereof, the Selected Shamrock Director
shall be entitled to all the rights and privileges of the other directors and committee members,
including, without limitation, access to the Company’s outside advisors; provided, that
the Selected Shamrock Director shall not be entitled to participate in or observe, and shall upon
the good faith request of the Board or any such committee recuse himself from, any meeting or
portion thereof at which the Board or any such committee is evaluating and/or taking action with
respect to (x) the exercise of any of the Company’s rights or enforcement of any of the
obligations of any member of the Shamrock Group under this Agreement, or (y) any transaction
proposed by, or with, or affecting any member of the Shamrock Group in a manner materially
different than the effect on other stockholders. The Board or any such committee shall be
entitled to take such actions as it shall in good faith deem reasonably necessary or appropriate
to carry out the provisions of the preceding sentence.

          (f) The Selected Shamrock Director shall be entitled to receive the identical compensation
and benefits being paid to the other non-employee directors of the Company. It shall be a
precondition to the right of the Selected Shamrock Director to attend any meeting of the Board or
committee thereof that such individual shall have entered into any non-disclosure or
confidentiality agreement entered into by the other members of the Board and shall have agreed, in
the same manner as each other member of the Board, to abide by the written policies of the Board
and the committees thereof (including, without limitation, the Code of Conduct and the Code of
Ethics) and the written policies of the Company applicable to members of the Board (including,
without limitation, the Company’s insider trading policy).

          (g) The Shamrock Group shall not be entitled to have the Selected Shamrock Director serve on
the Board from and after the Director Termination Date, nor shall the Company have any obligation
to nominate the Selected Shamrock Director for re-election to the Board after the Director
Termination Date.

          (h) If the Director Termination Date arises as a result of clause (ii) or clause (iii) of the
definition thereof, the Shamrock Group shall use good faith efforts to cause the Selected Shamrock
Director to promptly resign from the Board, and the Company shall promptly thereafter commence a
director selection process in accordance with the procedures

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set forth on Schedule B hereto to select a replacement for the Selected Shamrock
Director who, upon appointment to the Board, shall serve until the Director Termination Date.

          (i) If the Company destaggers the Board at any time prior to the Director Termination Date,
the Company shall include the Selected Shamrock Director in its slate of nominees at every meeting
of stockholders at which directors are elected prior to the Director Termination Date.

     3. Additional Board Seat. In addition to the appointment of the Selected Shamrock
Director contemplated by Section 2, the Board shall commence, prior to the end of 2008, a director
selection process (the “Director Selection Process”) in accordance with the procedures set
forth on Schedule B hereto, and in connection therewith shall increase the size of the
Board by one (with such newly created directorship to be a member of the class of directors whose
terms expire at the Company’s 2009 Annual Meeting of Stockholders (the “2009 Annual
Meeting”)) and appoint the director selected by the Board pursuant to the Director Selection
Process (the “Additional Director”) to fill the new directorship so created on the Board no
later than March 1, 2009. The Board shall nominate and support the Additional Director for
re-election to the Board at the 2009 Annual Meeting as a director whose term shall expire at the
Company’s 2012 Annual Meeting of Stockholders (or if the Company destaggers the Board at any time
prior to the 2012 Annual Meeting, the Company shall include the Additional Director in its slate of
nominees at every meeting of stockholders at which directors are elected prior to the 2012 Annual
Meeting).

     4. Proxy Contest and Other Matters.

          (a) Each member of the Shamrock Group agrees that the members of the Shamrock Group shall,
and shall cause their Affiliates and Associates (such Affiliates and Associates, collectively and
individually, the “Shamrock Affiliates”) to (i) immediately cease all efforts, direct or
indirect, to elect the Shamrock Nominees at the 2008 Annual Meeting and (ii) not vote, deliver or
otherwise use any proxies obtained in connection with such solicitation for use at the 2008 Annual
Meeting.

          (b) Each member of the Shamrock Group agrees that, until the conclusion of the 2010 Annual
Meeting, no member of the Shamrock Group shall (and the members of the Shamrock Group shall cause
the Shamrock Affiliates not to), except as otherwise set forth on Schedule B hereto:

          (i) solicit proxies or written consents of stockholders or conduct any other type of
referendum (binding or non-binding) with respect to, or make or in any way participate in
any solicitation of any proxy, consent or other authority to vote any shares of Common Stock
with respect to, or otherwise become a participant in any contested solicitation with
respect to, any matter involving the Company, including, without limitation, the removal or
the election of directors;

          (ii) form or join in a partnership, limited partnership, syndicate or other group (as
defined under Section 13(d) of the Exchange Act) with respect to the

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Common Stock, in support of any effort by a third party with respect to the matters
described in subparagraph (i), (iv) and (v) of this Section 4(b);

          (iii) deposit any shares of Common Stock in a voting trust or subject any shares of
Common Stock to any voting agreement, in each case other than solely with other members of
the Shamrock Group or other Shamrock Affiliates with respect to the shares of Common Stock
now or hereafter owned by them, or pursuant to this Agreement;

          (iv) submit any proposal (including nominations of director candidates, except as
provided herein) for consideration at any annual or special meeting of the stockholders of
the Company (including pursuant to Rule 14a-8 promulgated under the Exchange Act);
provided, that the foregoing shall not prevent the Selected Shamrock Director or
members of the Shamrock Group or other Shamrock Affiliates from submitting such matters
directly to the Board for its consideration;

          (v) support or participate in any “withhold the vote” or similar campaign with respect
to the Company or the Board, or support any other nominees for the Board other than the
Selected Shamrock Director or other directors nominated by the Board; provided, that
if the Selected Shamrock Director is not nominated by the Board for election at the 2010
Annual Meeting, the Shamrock Group and any applicable Shamrock Affiliates shall not be
obligated to vote their shares for the directors nominated by the Board, so long as the
Shamrock Group otherwise complies with subparagraphs (i), (ii), (iii) and this
subparagraph (v) of this Section 4(b); or

          (vi) make, or cause to be made, any statement or announcement that constitutes an ad
hominem attack on the Company, its officers or its directors: (A) in any document or report
filed with or furnished to the SEC or any other governmental or regulatory authority, (B) in
any press release or other public communication , or (C) to any journalist or member of the
media (including, without limitation, in a television, radio, newspaper or magazine
interview); provided, that the Company acknowledges that members of the Shamrock
Group or Shamrock Affiliates have had communications and may in the future communicate with
the Company, management, the Board and the stockholders and such communications shall not in
and of themselves be deemed a violation of this clause so long as such communication does
not reasonably constitute an ad hominem attack on the Company, its officers or its
directors.

          (c) Each member of the Shamrock Group shall cause all shares of Common Stock held of record
or beneficially owned (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly,
by it or by any Shamrock Affiliate, as of the record date for the 2008 Annual Meeting, the 2009
Annual Meeting and, provided the Selected Shamrock Director is included in the Company’s slate of
director nominees for the 2010 Annual Meeting, as of the record date for the 2010 Annual Meeting
(the “Applicable Meetings”), to be present for quorum purposes and to be voted, at each
Applicable Meeting or at any adjournments or postponements thereof, in favor of the slate of
directors nominated by the Board (including the Selected Shamrock Director) for election at each
Applicable Meeting.

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          (d) Upon the appointment of the Selected Shamrock Director to the Board, the members of the
Shamrock Group shall be deemed to have withdrawn the Nomination Letter, the Shamrock Proxy
Statement and the letter dated April 14, 2008 to the Company requesting inspection of certain
records and documents of the Company.

          (e) Until the conclusion of the 2010 Annual Meeting, none of the Company nor any of its
officers or directors shall make, or cause to be made, any statement or announcement that
constitutes an ad hominem attack on any current or former Selected Shamrock Director, any member
of the Shamrock Group, any Shamrock Affiliate, or their respective principals, officers or
directors: (A) in any document or report filed with or furnished to the SEC or any other
governmental or regulatory authority, (B) in any press release or other public communication , or
(C) to any journalist or member of the media (including, without limitation, in a television,
radio, newspaper or magazine interview).

     5. Public Announcement and SEC Filing. The Company and the Shamrock Group shall
announce this Agreement and the material terms hereof by means of a joint press release in the form
attached as Schedule C hereto as soon as practicable on the date hereof. The Shamrock
Group shall promptly file an amendment to the Schedule 13D regarding the Common Stock filed with
the SEC on May 30, 2006, and as amended to date, reporting the entry into this Agreement and
amending any applicable items under Schedule 13D.

     6. Reimbursement of Expenses. The Company shall reimburse the Shamrock Group in an
aggregate amount not to exceed $350,000 for its reasonable out-of-pocket expenses incurred through
the date the Selected Shamrock Director is appointed to the Board in connection with (i) the
preparation of the Shamrock Proxy Statement and solicitation of proxies thereunder and (ii) the
negotiation and preparation of this Agreement, including, without limitation, legal and accounting
fees and the fees of the proxy solicitor retained by the Shamrock Group, within thirty (30) days
after the receipt by the Company of a written notice from the Shamrock Group (the “Shamrock
Expense Notice”) itemizing such expenses in reasonable detail together with appropriate
documentation therefor. The Shamrock Group shall collectively send one Shamrock Expense Notice to
the Company, and shall only receive reimbursement for the documented reasonable expenses set forth
in such single Shamrock Expense Notice.

     7. Representations and Warranties of the Company. The Company hereby represents and
warrants that this Agreement and the performance by the Company of its obligations hereunder (i)
has been duly authorized, executed and delivered by it, and is a valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms, except as enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting the enforcement of creditors’ rights generally and by general equitable principles
(regardless of whether such enforceability is considered in a proceeding in equity or at law), (ii)
does not require the approval of the stockholders of the Company and (iii) does not and will not
violate any law, any order of any court or other agency of government, the Certificate of
Incorporation of the Company or the Bylaws or any provision of any material agreement or other
instrument to which the Company or any of its properties or assets is bound, or conflict with,
result in a breach of or constitute (with due notice or lapse of time or both) a default under any
such material agreement or other instrument.

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     8. Representations and Warranties of the Shamrock Group. Each member of the Shamrock
Group hereby represents and warrants, severally and not jointly, that:

          (a) this Agreement and the performance by such member of its obligations hereunder (i) has
been duly authorized, executed and delivered by such member, and is a valid and binding obligation
of such member, enforceable against such member in accordance with its terms, except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other
similar laws affecting the enforcement of creditors’ rights generally and by general equitable
principles (regardless of whether such enforceability is considered in a proceeding in equity or
at law), (ii) does not require approval by any owners or holders of any equity interest in such
member (except as has already been obtained) and (iii) does not and will not violate any law, any
order of any court or other agency of government, the organizational documents of such member or
any provision of any material agreement or other instrument to which such member or any of its
properties or assets is bound, or conflict with, result in a breach of or constitute (with due
notice or lapse of time or both) a default under any such material agreement or other instrument;
and

          (b) except for the shares of Common Stock listed on Schedule A hereto, the members of the
Shamrock Group do not beneficially own (as defined in Rule 13d-3 promulgated under the Exchange
Act) any shares of Common Stock.

     9. Miscellaneous. The parties hereto acknowledge and agree that irreparable harm
would occur in the event any of the provisions of this Agreement are not performed in accordance
with their specific terms or are otherwise breached and, accordingly, the parties hereto shall be
entitled to an injunction or injunctions to prevent or to cure breaches of this Agreement and to
enforce specifically the terms and provisions of this Agreement exclusively in the Court of
Chancery or other state courts of the State of Delaware, in addition to any other remedy to which
they are entitled at law or in equity. Furthermore, each of the parties hereto (a) consents to
submit itself to the personal jurisdiction of the Court of Chancery or other state courts of the
State of Delaware in the event any dispute arises out of this Agreement or the transactions
contemplated by this Agreement, (b) agrees that it shall not attempt to deny or defeat such
personal jurisdiction by motion or other request for leave from any such court, (c) agrees that it
shall not commence any action or assert any claim against any other party to this Agreement
relating to this Agreement or the transactions contemplated by this Agreement in any court other
than the Court of Chancery or other state courts of the State of Delaware, (d) irrevocably waives
the right to trial by jury, (e) agrees to waive any bonding requirement under any applicable law,
in the case any other party seeks to enforce the terms of this Agreement by way of equitable relief
and (f) irrevocably consents to service of process by a reputable overnight mail delivery service,
signature requested, to the address of such party as provided in Section 11. THIS
AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS, INCLUDING WITHOUT LIMITATION VALIDITY, INTERPRETATION
AND EFFECT, BY THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO CONTRACTS EXECUTED AND TO BE
PERFORMED WHOLLY WITHIN SUCH STATE WITHOUT GIVING EFFECT TO THE CHOICE OF LAW PRINCIPLES OF SUCH
STATE THAT WOULD CAUSE THE LAWS OF ANOTHER JURISDICTION TO APPLY.

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     10. Entire Agreement; Amendments; Waiver. This Agreement (and the Schedules hereto,
which are incorporated herein) contains the entire understanding of the parties with respect to the
subject matter hereof and may be amended only by an agreement in writing executed by each of the
parties hereto. Any term or condition of this Agreement may be waived at any time by the party
that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in
a written instrument duly executed by or on behalf of the party waiving such term or condition. No
waiver by any party of any term or condition of this Agreement, in any one or more instances, shall
be deemed to be or construed as a waiver of the same or any other term or condition of this
Agreement on any future occasion.

     11. Notices. All notices, consents, requests, instructions, approvals and other
communications provided for herein and all legal process in regard hereto shall be in writing and
shall be deemed validly given, made or served, if (a) given by telecopy, when such telecopy is
transmitted to the telecopy number set forth below and the appropriate confirmation is received or
(b) if given by any other means, when actually received during normal business hours at the address
specified in this subsection:

	 	 	 
	if to the Company:

	 	Coinstar, Inc.
	 

	 	1800 114th Avenue SE
	 

	 	Bellevue, Washington 98004
	 

	 	Attention: Don Rench, Esq.
	 

	 	Facsimile: (425) 943-8090
	 
	 	 
	with copies (which shall
	 	 
	not constitute notice) to:

	 	Latham & Watkins, LLP
	 

	 	885 Third Avenue
	 

	 	New York, New York 10024
	 

	 	Attention: Charles M. Nathan, Esq.
	 

	 	Facsimile. (212) 751-4864
	 
	 	 
	 

	 	and
	 
	 	 
	 

	 	Perkins Coie LLP
	 

	 	1201 Third Avenue, Suite 4800
	 

	 	Seattle, Washington 98101
	 

	 	Attention: Andrew Bor, Esq.
	 

	 	Facsimile. (206) 359-9577
	 
	 	 
	if to the Shamrock Group:

	 	Shamrock Activist Value Fund, L.P.
	 

	 	4444 Lakeside Drive
	 

	 	Burbank, California 91505
	 

	 	Attention: Greg S. Martin
	 

	 	Facsimile. (818) 845-4675

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	with a copy (which shall
	 	 
	not constitute notice) to:

	 	Bingham McCutchen LLP
	 

	 	355 South Grand Avenue
	 

	 	Los Angeles, California 90071-3106
	 

	 	Attention: David K. Robbins, Esq.
	 

	 	Facsimile. (213) 830-8660

     12. Severability. If at any time subsequent to the date hereof, any provision of this
Agreement shall be held by any court of competent jurisdiction to be illegal, void or
unenforceable, such provision shall be of no force and effect, but the illegality or
unenforceability of such provision shall have no effect upon the legality or enforceability of any
other provision of this Agreement.

     13. Counterparts. This Agreement may be executed in two or more counterparts which
together shall constitute a single agreement.

     14. No Third Party Beneficiaries. This Agreement is solely for the benefit of the
parties hereto and is not enforceable by any other person.

     15. No Assignment; Binding Effect. Neither this Agreement, nor any right, interest or
obligation hereunder, may be assigned by any party hereto without the prior written consent of the
other parties hereto and any attempt to do so will be void. Subject to the preceding sentence,
this Agreement is binding upon, inures to the benefit of and is enforceable by the parties hereto
and their respective successors and assigns and legal representatives.

     16. Interpretation and Construction. Each of the parties hereto acknowledges that it
has been represented by counsel of its choice throughout all negotiations that have preceded the
execution of this Agreement, and that it has executed the same with the advice of said independent
counsel. Each party and its counsel cooperated and participated in the drafting and preparation of
this Agreement, and any and all drafts relating thereto exchanged among the parties shall be deemed
the work product of all of the parties and may not be construed against any party by reason of its
drafting or preparation. Accordingly, any rule of law or any legal decision that would require
interpretation of any ambiguities in this Agreement against any party that drafted or prepared it
is of no application and is hereby expressly waived by each of the parties hereto, and any
controversy over interpretations of this Agreement shall be decided without regards to events of
drafting or preparation.

     17. Headings. The headings used in this Agreement have been inserted for convenience
of reference only and do not define or limit the provisions hereof.

[Signature Pages Follow]

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     IN WITNESS WHEREOF, each of the parties hereto has executed this Agreement, or caused the same
to be executed by its duly authorized representative as of the date first above written.

	 	 	 	 	 
	 	COINSTAR, INC.

 	 
	 	By:  	/s/ David W. Cole
 	 
	 	 	Name:  	David W. Cole 	 
	 	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 	 	 	 	 
	 	 	SHAMROCK ACTIVIST VALUE FUND, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Activist Value Fund GP, L.L.C.,
its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Partners Activist Value Fund,
L.L.C., its
       managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael J. McConnell
 

	 	 
	 

	 	 	 	 	 	Name: Michael J. McConnell	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SHAMROCK ACTIVIST VALUE FUND II, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Activist Value Fund GP, L.L.C.,
its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Partners Activist Value Fund,
L.L.C., its
       managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael J. McConnell	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Michael J. McConnell	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 

[Signature Page to Settlement Agreement]

 

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	 	 	SHAMROCK ACTIVIST VALUE FUND III, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Activist Value Fund GP, L.L.C.,
its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Partners Activist Value Fund,
L.L.C., its
       managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael J. McConnell	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Michael J. McConnell	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SHAMROCK ACTIVIST VALUE FUND GP, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By: Shamrock Partners Activist Value Fund,
L.L.C., its
       managing member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael J. McConnell	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Michael J. McConnell	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SHAMROCK PARTNERS ACTIVIST VALUE FUND, L.L.C.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Michael J. McConnell	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Michael J. McConnell	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 

[Signature Page to Settlement Agreement]

 

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SCHEDULE A

	 	 	 	 	 
	 	 	NUMBER OF SHARES OF COMMON
	                         NAME	 	STOCK BENEFICIALLY OWNED
	Shamrock Activist Value Fund, L.P.
	 	 	2,521,213	 
	 
	 	 	 	 
	Shamrock Activist Value Fund II, L.P.
	 	 	1,041,863	 
	 
	 	 	 	 
	Shamrock Activist Value Fund III, L.P.
	 	 	149,679	 
	 
	 	 	 	 
	Shamrock Activist Value Fund GP, L.L.C.*
	 	 	3,712,755	 
	 
	 	 	 	 
	Shamrock Partners Activist Value Fund, L.L.C.*
	 	 	3,712,755	 

 

			
	*	 	The indicated members of the Shamrock Group may be deemed to beneficially own the shares of
Common Stock indicated above by virtue of their control of the other members of the Shamrock Group.

Schedule A-1

 

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SCHEDULE B

INDEPENDENT DIRECTOR SELECTION PROCESS

     In connection with Section 3 of the Agreement (and if required by Section 2(h) of the
Agreement), the Company will commence a process to add an independent director to the Board from a
group of candidates submitted for nomination exclusively by major stockholders of the Company.

	 	•	 	The Company will solicit its major stockholders for submissions of, and input regarding,
candidates to be considered for nomination as a new independent director on the Board.
Such person must satisfy the applicable independence requirements of the SEC and each
national securities exchange on which the Company’s common stock is listed.
	 
	 	•	 	The Shamrock Group will be included in the process and invited to submit candidates for
nomination and otherwise participate in the search and selection process on an equal
footing with the Company’s other major stockholders.
	 
	 	•	 	The Nominating and Governance Committee, which is comprised solely of independent
directors, will review the resumes and qualifications of all candidates submitted for
nomination.
	 
	 	•	 	The Nominating and Governance Committee will consider, among other things, the director
candidates’ overall qualifications and background, as well as any specialized experience
serving as an independent director of a public company or having executive or board
positions in the chain retail store environment, other significant areas of the Company’s
customer base, electronic money transfer, or other businesses that are part of, or
complementary with, the Company’s 4th WallTM businesses.
	 
	 	•	 	A candidate’s affiliation with a large shareholder will not be a negative consideration
in the evaluation by the Nominating and Governance Committee, although may be considered
regarding meeting applicable independence requirements.
	 
	 	•	 	The Nominating and Governance Committee will select one person from the pool of
candidates who will be presented to the Board for consideration for appointment as a new
independent director.
	 
	 	•	 	The Board will evaluate the person selected for appointment and, taking into
consideration the recommendation of the Nominating and Governance Committee, either appoint
the person to the Board or direct the Nominating and Governance Committee to identify
another candidate from the same pool submitted by the major stockholders for appointment in
accordance with this Schedule B.

Schedule B-1

 

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SCHEDULE
C

FORM
OF JOINT PRESS RELEASE

	 	 	 
	Contacts:
	 	 
	Coinstar, Inc.

	 	Shamrock Activist Value Fund:
	 
	 	 
	Investors

	 	Media
	Brian Turner, Chief Financial Officer

	 	Clifford A. Miller
	425-943-8000

	 	818-973-4297
	 
	 	 
	Media
	 	 
	Marci Maule, Director Public Relations
	 	 
	425-943-8277
	 	 
	 
	 	 
	Tom Ryan
	 	 
	ICR, Inc.
	 	 
	203-682-8200
	 	 
	 
	 	 
	Matthew Sherman / Barrett Golden
	 	 
	Joele Frank, Wilkinson Brimmer Katcher
	 	 
	212-355-4449
	 	 

FOR IMMEDIATE RELEASE

COINSTAR AND SHAMROCK ACTIVIST VALUE FUND

REACH AGREEMENT TO RESOLVE PROXY CONTEST

AT 2008 ANNUAL MEETING OF STOCKHOLDERS

BELLEVUE, Wash.– May 28, 2008 – Coinstar, Inc. (NASDAQ: CSTR) and The Shamrock Activist Value Fund
(“SAVF” or “Shamrock”), which currently owns approximately 13.3% of Coinstar’s outstanding shares,
today announced that they have reached an agreement that will resolve the proxy contest related to
the Company’s 2008 Annual Meeting of Stockholders.

Under the terms of the agreement, the Company’s Board of Directors today appointed Arik Ahitov, one
of the three director candidates previously nominated by SAVF for election to Coinstar’s Board, as
a Coinstar director in the class of directors whose term expires in 2010. SAVF, in turn, will
terminate its proxy contest and will not nominate any candidates for election as directors at the
Coinstar 2008 Annual Meeting on June 3, 2008. With the addition of the SAVF Board designee,
Coinstar’s Board will be expanded to eight directors.

In addition, Coinstar has agreed to proceed with its previously announced plan to add an additional
independent director to its Board by March 1, 2009. The new director will be selected from a group
of candidates submitted for nomination by Coinstar’s major stockholders, including SAVF. The
Board’s Nominating and Governance Committee will consider, among other things, the director
candidates’ overall qualifications and background, as well as any specialized experience serving as
an independent director of a public company or having executive or board positions in the chain
retail store environment, other significant areas of Coinstar’s customer base, electronic money
transfer, or other businesses that are part of, or complementary with, Coinstar’s 4th
WallTM businesses. The new director, who will be appointed to the class of directors
whose term expires in 2009, will be included on the Board’s slate of nominees for election for a
new three-year term at the 2009 Annual Meeting. With the addition of the second new director,
Coinstar’s Board will be expanded to nine directors.

 

 

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In connection with the appointment of the two new directors to Coinstar’s Board, SAVF has agreed to
not solicit proxies in connection with the 2008 Annual Meeting, and to vote its shares in support
of all of the
Board’s director nominees to be presented at the 2008 Annual Meeting. Additionally, SAVF has
agreed to abide by certain standstill provisions, including, among other things, not soliciting
proxies for or otherwise participating in any contested election relating to Coinstar directors or
submitting any proposal at Coinstar stockholder meetings through the completion of the 2010 Annual
Meeting of Stockholders, with certain exceptions specified in the agreement.

Keith D. Grinstein, Coinstar’s Chairman of the Board, said, “We are pleased to have reached this
agreement with Shamrock, our largest investor, which we believe is in the best interests of the
Company and all Coinstar stockholders. During the past few months, we have met with a large number
of our major stockholders, and we value their insights regarding the future of our Company. We
believe our stockholders support the addition of new independent directors to our Board. Our Board
is committed to enhancing value for all Coinstar stockholders and we look forward to working with
our new directors to continue executing our successful 4th Wall strategy.”

“As Coinstar’s largest stockholder, we are pleased to have reached an amicable resolution which we
believe is in the best interest of all Coinstar stockholders,” Michael McConnell of the Shamrock
Activist Value Fund stated.  “The addition of two new independent directors, including Arik Ahitov,
one of our director candidates, to Coinstar’s Board is a positive, stockholder friendly step that,
we believe, will bring additional perspectives and skills beneficial to the Company and its
stockholders.  Our Board designee will work diligently and constructively with his fellow board
members.”

Mr. McConnell added, “We endorse the Company’s 4th Wall strategy and look forward to working with
management as it executes against that strategy to drive improved returns on invested capital and
stockholder value.”  

Arik Ahitov joined Shamrock Capital Advisors, Inc. in September 2004, where he currently serves as
a Vice President, a position he has held since September 2006. Mr. Ahitov has also served as a
portfolio manager for the Shamrock Activist Value Fund since September 2004 and is a CFA Level 3
candidate. Prior to obtaining his Masters in Business Administration from the University of
California, Los Angeles Anderson School of Management, Mr. Ahitov served as a consultant for
Mitchell Madison Group, a management consulting firm, a business strategy analyst for FreeDecision,
a technology start-up company, and as an investment banker at both Salomon Smith Barney, a
financial advisory services firm, and Royal Management, an investment services firm. Mr. Ahitov
graduated from Northwestern University with a Bachelor of Arts degree.

Additional information relating to the agreement with SAVF will be contained in a Form 8-K to be
filed by the Company.

About The Shamrock Activist Value Fund

The Shamrock Activist Value fund was formed by Shamrock Holdings, Inc. to make equity investments
in small-cap, publicly-traded companies.  The Shamrock Activist Value fund combines a deep value
focus with a strategy of responsible stockholder activism.  The Shamrock Activist Value Fund’s
theory of activist investing relies on the ability of engaged stockholders to advocate for
corporate changes designed to unlock value for all stakeholders.

Founded in 1978, Shamrock Holdings has been an investor in a wide range of domestic and
international private equity transactions, marketable securities and real estate. Shamrock
Holding’s foundation as the private investment firm for a distinguished family — the Roy E. Disney
family — has helped to build a strong tradition of integrity, service and responsibility to our
investors and portfolio companies. 

 

 

EXECUTION
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About Coinstar, Inc.

Coinstar, Inc. (NASDAQ: CSTR) is a multi-national company offering a range of 4th WallTM solutions
for the retailers’ front of store consisting of self-service coin counting, money transfer,
electronic payment
solutions, entertainment services and self-service DVD rental. The Company’s products and services
can be found at more than 50,000 retail locations including supermarkets, drug stores, mass
merchants, financial institutions, convenience stores and restaurants.

Important Additional Information

On April 30, 2008, Coinstar began mailing to its stockholders a definitive proxy statement with a
WHITE Proxy Card and other materials in connection with Coinstar’s 2008 Annual Meeting of
Stockholders. STOCKHOLDERS ARE URGED TO READ COINSTAR’S DEFINITIVE PROXY STATEMENT AND ANY OTHER
RELEVANT DOCUMENTS BECAUSE THEY CONTAIN IMPORTANT INFORMATION. The definitive proxy statement and
other documents relating to the 2008 Annual Meeting and Coinstar can be obtained free of charge
from the SEC’s website at http://www.sec.gov. These documents can also be obtained free of charge
from Coinstar at its website, www.coinstar.com, under: About Us – Investor Relations – SEC Filings.
The contents of the websites above are not deemed to be incorporated by reference into the
definitive proxy statement or other materials. In addition, copies of the definitive proxy
statement, WHITE Proxy Card and other materials may be requested by contacting our proxy
solicitor, Georgeson Inc. by phone, toll-free, at 1-(888) 605-7543.

Detailed information regarding the names, affiliations and interests of individuals who are
participants, including Coinstar directors and certain executive officers and other employees, in
the solicitation of proxies of Coinstar’s stockholders is available in Coinstar’s definitive proxy
statement.

Safe Harbor for Forward-Looking Statements

Certain statements in this press release are “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. The words “will,” “believe,” “estimate,”
“expect,” “intend,” “anticipate,” “goals,” “prospects,” variations of such words, and similar
expressions identify forward-looking statements, but their absence does not mean that the statement
is not forward-looking. The forward-looking statements in this press release include statements
regarding Coinstar, Inc.’s anticipated performance and Board actions. Forward-looking statements
are not guarantees of future performance and actions, and they may vary materially from those
expressed or implied in such statements. Differences may result from actions taken by Coinstar,
including its Board, as well as from risks and uncertainties beyond Coinstar’s control. Such risks
and uncertainties include, but are not limited to, actions taken by Coinstar’s stockholders, the
termination, non-renewal or renegotiation on materially adverse terms of our contracts with our
significant retailers, payment of increased service fees to retailers, fewer than expected
installations, the ability to attract new retailers, penetrate new markets and distribution
channels, cross-sell our products and services and react to changing consumer demands, the ability
to achieve the strategic and financial objectives for our entry into or expansion of new
businesses, the ability to adequately protect our intellectual property, and the application of
substantial federal, state, local and foreign laws and regulations specific to our business. The
foregoing list of risks and uncertainties is illustrative, but by no means exhaustive. For more
information on factors that may affect future performance, please review “Risk Factors” described
in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission. These forward-looking statements reflect Coinstar’s
expectations as of the date of this press release. Coinstar undertakes no obligation to update the
information provided herein.

# # #

Schedule C-1exv10w1

    Exhibit
10.1

 

 

    INFORMATICA
    CORPORATION

 

    EMPLOYEE STOCK PURCHASE PLAN

 

    (Effective May 22, 2008)

 

 

    TABLE OF
    CONTENTS

 

	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
    Page

	 

	

    Section 1 PURPOSE
    

	
 
	 
	
    A-1
	 

	

    Section 2 DEFINITIONS
    

	
 
	 
	
    A-1
	 

	

    2.1

	
 
	
    “1934 Act”
	
 
	 
	
    A-1
	 

	

    2.2

	
 
	
    “Board”
	
 
	 
	
    A-1
	 

	

    2.3

	
 
	
    “Code”
	
 
	 
	
    A-1
	 

	

    2.4

	
 
	
    “Committee”
	
 
	 
	
    A-1
	 

	

    2.5

	
 
	
    “Common Stock”
	
 
	 
	
    A-1
	 

	

    2.6

	
 
	
    “Company”
	
 
	 
	
    A-1
	 

	

    2.7

	
 
	
    “Compensation”
	
 
	 
	
    A-1
	 

	

    2.8

	
 
	
    “Eligible Employee”
	
 
	 
	
    A-1
	 

	

    2.9

	
 
	
    “Employee”
	
 
	 
	
    A-2
	 

	

    2.10

	
 
	
    “Employer” or “Employers”
	
 
	 
	
    A-2
	 

	

    2.11

	
 
	
    “Enrollment Date”
	
 
	 
	
    A-2
	 

	

    2.12

	
 
	
    “Grant Date”
	
 
	 
	
    A-2
	 

	

    2.13

	
 
	
    “Participant”
	
 
	 
	
    A-2
	 

	

    2.14

	
 
	
    “Plan”
	
 
	 
	
    A-2
	 

	

    2.15

	
 
	
    “Purchase Date”
	
 
	 
	
    A-2
	 

	

    2.16

	
 
	
    “Purchase Period”
	
 
	 
	
    A-2
	 

	

    2.17

	
 
	
    “Subsidiary”
	
 
	 
	
    A-2
	 

	

    Section 3 SHARES
    SUBJECT TO THE PLAN
    

	
 
	 
	
    A-2
	 

	

    3.1

	
 
	
    Number Available
	
 
	 
	
    A-2
	 

	

    3.2

	
 
	
    Adjustments
	
 
	 
	
    A-2
	 

	

    Section 4 ENROLLMENT
    

	
 
	 
	
    A-3
	 

	

    4.1

	
 
	
    Participation
	
 
	 
	
    A-3
	 

	

    4.2

	
 
	
    Payroll Withholding and Contribution
	
 
	 
	
    A-3
	 

	

    Section 5 OPTIONS TO
    PURCHASE COMMON STOCK
    

	
 
	 
	
    A-3
	 

	

    5.1

	
 
	
    Grant of Option
	
 
	 
	
    A-3
	 

	

    5.2

	
 
	
    Duration of Option
	
 
	 
	
    A-3
	 

	

    5.3

	
 
	
    Number of Shares Subject to Option
	
 
	 
	
    A-3
	 

	

    5.4

	
 
	
    Other Terms and Conditions
	
 
	 
	
    A-4
	 

	

    Section 6 PURCHASE
    OF SHARES
    

	
 
	 
	
    A-4
	 

	

    6.1

	
 
	
    Exercise of Option
	
 
	 
	
    A-4
	 

	

    6.2

	
 
	
    Delivery of Shares
	
 
	 
	
    A-4
	 

	

    6.3

	
 
	
    Exhaustion of Shares
	
 
	 
	
    A-4
	 

	

    6.4

	
 
	
    Tax Withholding
	
 
	 
	
    A-4
	 

	

    Section 7 WITHDRAWAL
    

	
 
	 
	
    A-5
	 

	

    7.1

	
 
	
    Withdrawal
	
 
	 
	
    A-5
	 

	

    Section 8 CESSATION
    OF PARTICIPATION
    

	
 
	 
	
    A-5
	 

	

    8.1

	
 
	
    Termination of Status as Eligible Employee
	
 
	 
	
    A-5
	 

	

    Section 9
    DESIGNATION OF BENEFICIARY
    

	
 
	 
	
    A-5
	 

	

    9.1

	
 
	
    Designation
	
 
	 
	
    A-5
	 

	

    9.2

	
 
	
    Changes
	
 
	 
	
    A-5
	 

	

    9.3

	
 
	
    Failed Designations
	
 
	 
	
    A-5
	 

	

    Section 10
    ADMINISTRATION
    

	
 
	 
	
    A-6
	 

	

    10.1

	
 
	
    Plan Administrator
	
 
	 
	
    A-6
	 

	

    10.2

	
 
	
    Actions by Committee
	
 
	 
	
    A-6
	 

	

    10.3

	
 
	
    Powers of Committee
	
 
	 
	
    A-6
	 

	

    10.4

	
 
	
    Decisions of Committee
	
 
	 
	
    A-6
	 

	

    10.5

	
 
	
    Administrative Expenses
	
 
	 
	
    A-6
	 

	

    10.6

	
 
	
    Eligibility to Participate
	
 
	 
	
    A-7
	 

	

    10.7

	
 
	
    Indemnification
	
 
	 
	
    A-7
	 

	

    Section 11
    AMENDMENT, TERMINATION, AND DURATION
    

	
 
	 
	
    A-7
	 

	

    11.1

	
 
	
    Amendment, Suspension, or Termination
	
 
	 
	
    A-7
	 

	

    11.2

	
 
	
    Duration of the Plan
	
 
	 
	
    A-8
	 

	

    Section 12 GENERAL
    PROVISIONS
    

	
 
	 
	
    A-8
	 

    

    A-i

 

	 	 	 	 	 	 	 
	
 
	
 
	
 
	
 
	
    Page

	 

	

    12.1

	
 
	
    Participation by Subsidiaries
	
 
	 
	
    A-8
	 

	

    12.2

	
 
	
    Inalienability
	
 
	 
	
    A-8
	 

	

    12.3

	
 
	
    Severability
	
 
	 
	
    A-8
	 

	

    12.4

	
 
	
    Requirements of Law
	
 
	 
	
    A-8
	 

	

    12.5

	
 
	
    Compliance with Rule 16b-3
	
 
	 
	
    A-8
	 

	

    12.6

	
 
	
    No Enlargement of Employment Rights
	
 
	 
	
    A-8
	 

	

    12.7

	
 
	
    Apportionment of Costs and Duties
	
 
	 
	
    A-8
	 

	

    12.8

	
 
	
    Construction and Applicable Law
	
 
	 
	
    A-8
	 

	

    12.9

	
 
	
    Captions
	
 
	 
	
    A-9
	 

	

    12.10

	
 
	
    Automatic Transfer to Low Price Option Period
	
 
	 
	
    A-9
	 

    A-ii

 

    INFORMATICA
    CORPORATION

 

    EMPLOYEE
    STOCK PURCHASE PLAN

 

    Section 1

    

 

    PURPOSE
    

 

    Informatica Corporation hereby establishes the Informatica
    Corporation Employee Stock Purchase Plan (the “Plan”),
    in order to provide eligible employees of the Company with the
    opportunity to purchase Common Stock through payroll deductions
    or, if payroll deductions are not permitted under local laws,
    through other means as specified by the Committee. The Plan is
    effective as of May 22, 2008 upon approval by an
    affirmative vote of the holders of a majority of the Shares that
    are present in person or by proxy and entitled to vote at the
    2008 Annual Meeting of Stockholders of the Company. The Plan is
    intended to qualify as an employee stock purchase plan under
    Section 423(b) of the Code, although the Company makes no
    undertaking or representation to maintain such qualification.

 

    Section 2

    

 

    DEFINITIONS
    

 

    2.1 “1934 Act” means the
    Securities Exchange Act of 1934, as amended. Reference to a
    specific Section of the 1934 Act or regulation thereunder
    shall include such Section or regulation, any valid regulation
    promulgated under such Section, and any comparable provision of
    any future legislation or regulation amending, supplementing or
    superseding such Section or regulation.

 

    2.2 “Board” means the Board of
    Directors of the Company.

 

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

 

    2.4 “Committee” shall mean the
    committee appointed by the Board to administer the Plan. Any
    member of the Committee may resign at any time by notice in
    writing mailed or delivered to the Secretary of the Company.

 

    2.5 “Common Stock” means the common
    stock of the Company.

 

    2.6 “Company” means Informatica
    Corporation, a Delaware corporation.

 

    2.7 “Compensation” means a
    Participant’s base wages, excluding any overtime, bonuses,
    allowances or shift differential. The Committee, in its
    discretion, may, on a uniform and nondiscriminatory basis,
    establish a different definition of Compensation prior to an
    Enrollment Date for all options to be granted on such Enrollment
    Date.

 

    2.8 “Eligible Employee” means every
    Employee of an Employer, except (a) any Employee who
    immediately after the grant of an option under the Plan, would
    own stock
    and/or hold
    outstanding options to purchase stock possessing five percent
    (5%) or more of the total combined voting power or value of all
    classes of stock of the Company or of any Subsidiary of the
    Company (including stock attributed to such Employee pursuant to
    Section 424(d) of the Code), or (b) as provided in
    this Section 2.8. The Committee, in its discretion, from
    time to time may, prior to an Enrollment Date for all options to
    be granted on such Enrollment Date, determine (on a uniform and
    nondiscriminatory basis) that an Employee shall not be an
    Eligible Employee if he or she: (1) has not completed the
    required length of service with the Company, if any, as such
    length may be determined by the Committee in its discretion
    (such length of required service not to exceed two
    (2) years), (2) customarily works not more than twenty
    (20) hours per week (or such lesser period of time as may
    be determined by the Committee in its discretion),
    (3) customarily works not more than five (5) months
    per calendar year (or such lesser period of time as may be
    determined by the Committee in its discretion), (4) is an
    officer or other manager, or (5) is a highly compensated
    employee under Section 414(q) of the Code. An Employee who
    otherwise is an Eligible Employee shall be treated as continuing
    to be such while the Employee is on sick leave or other leave of
    absence approved in writing by the Employer, except that if the
    period of leave exceeds ninety (90) days and the
    Employee’s right to

    

    A-1

 

    reemployment is not guaranteed by statute or contract, he or she
    shall cease to be an Eligible Employee on the 91st day of
    such leave. Until and unless determined otherwise by the
    Committee, Eligible Employees shall exclude each Employee (other
    than as excluded by subsection (a) of this
    Section 2.8) of an Employer who is customarily employed by
    the Company
    and/or a
    Subsidiary to work less than or equal to twenty (20) hours
    per week or five (5) months per calendar year.

 

    2.9 “Employee” means an individual
    who is a common-law employee of any Employer, whether such
    employee is so employed at the time the Plan is adopted or
    becomes so employed subsequent to the adoption of the Plan.

 

    2.10 “Employer” or
    “Employers” means any one or all of the Company
    and those Subsidiaries which, with the consent of the Board or
    the Committee, have adopted the Plan or have been designated by
    the Board or the Committee in writing as an Employer for
    purposes of participation in the Plan. With respect to a
    particular Participant, Employer means the Company or
    Subsidiary, as the case may be, that directly employs the
    Participant.

 

    2.11 “Enrollment Date” means such
    dates as may be determined by the Committee, in its discretion
    and on a uniform and nondiscriminatory basis, from time to time.

 

    2.12 “Grant Date” means any date on
    which a Participant is granted an option under the Plan.

 

    2.13 “Participant” means an
    Eligible Employee who (a) has become a Participant in the
    Plan pursuant to Section 4.1 and (b) has not ceased to
    be a Participant pursuant to Section 8 or Section 9.

 

    2.14 “Plan” means the Informatica
    Corporation Employee Stock Purchase Plan, as set forth in this
    instrument and as hereafter amended from time to time.

 

    2.15 “Purchase Date” means such
    dates on which each outstanding option granted under the Plan
    shall be exercised (except in such instance in which the Plan
    has been terminated), as may be determined by the Committee, in
    its discretion and on a uniform and nondiscriminatory basis from
    time to time prior to an Enrollment Date for all options to be
    granted on such Enrollment Date.

 

    2.16 “Purchase Period” means the
    period beginning on such date as may be determined by the
    Committee, in its discretion and on a uniform and
    nondiscriminatory basis, and ending on a Purchase Date.

 

    2.17 “Subsidiary” means any
    corporation in an unbroken chain of corporations beginning with
    the Company if each of the corporations other than the last
    corporation in the unbroken chain then owns stock possessing
    fifty percent (50%) or more of the total combined voting power
    of all classes of stock in one of the other corporations in such
    chain.

 

    Section 3

    

 

    SHARES
    SUBJECT TO THE PLAN
    

 

    3.1 Number Available.  A maximum of
    eight million eight hundred fifty thousand (8,850,000) shares of
    Common Stock shall be available for issuance pursuant to the
    Plan. Shares issued under the Plan may be newly issued shares or
    treasury shares.

 

    3.2 Adjustments.  In the event of
    any reorganization, recapitalization, stock split, reverse stock
    split, dividend or distribution (whether in the form of cash,
    shares, other securities or other property), spin off,
    combination of shares, merger, consolidation, offering of rights
    or other change in the capital structure of the Company, the
    Committee shall adjust the number, kind and purchase price of
    the shares available for purchase under the Plan, the per person
    share number limits on purchases and the purchase price and
    number of shares subject to any option under the Plan which has
    not yet been exercised so as to prevent dilution or enlargement
    of the benefits or potential benefits intended to be made
    available under the Plan.

    

    A-2

 

    Section 4

    

 

    ENROLLMENT
    

 

    4.1 Participation.  Each Eligible
    Employee may elect to become a Participant by enrolling or
    re-enrolling in the Plan effective as of any Enrollment Date. In
    order to enroll, an Eligible Employee must complete, sign and
    submit to the Company an enrollment form in such form, manner
    and by such deadline as may be specified by the Committee from
    time to time, in its discretion and on a nondiscriminatory
    basis, and which may be in electronic form. Any Participant
    whose option expires and who has not withdrawn from the Plan
    shall be automatically re-enrolled in the Plan on the Enrollment
    Date immediately following the Purchase Date on which his or her
    option expires.

 

    4.2 Payroll Withholding and
    Contribution.  On his or her enrollment form,
    each Participant must elect to make Plan contributions via
    payroll withholding from his or her Compensation or, if payroll
    withholding is not permitted under local laws, via such other
    means as specified by the Committee. Pursuant to such procedures
    as the Committee may specify from time to time (which may be in
    electronic form), a Participant may elect to have withholding
    equal to, or otherwise contribute, a whole percentage from one
    percent (1%) to twenty percent (20%) (or such greater or lesser
    percentage or dollar amount that the Committee may establish
    from time to time, in its discretion and on a uniform and
    nondiscriminatory basis, for all options to be granted on any
    Enrollment Date. If permitted by the Committee, a Participant
    instead may elect to have a specific amount withheld or to
    contribute a specific amount, in dollars or in the applicable
    local currency, subject to such uniform and nondiscriminatory
    rules as the Committee in its discretion may specify. A
    Participant may elect to increase or decrease his or her rate of
    payroll withholding or contribution by submitting an election
    (which may be in electronic form) in accordance with, and if and
    to the extent permitted by, procedures established by the
    Committee from time to time, which may, if permitted by the
    Committee, include a decrease to zero percent (0%); provided,
    however, that unless determined otherwise by the Committee, a
    decrease to zero percent (0%) shall be deemed a withdrawal from
    the Plan. A Participant may stop his or her payroll withholding
    or contribution by submitting an election in accordance with and
    to the extent permitted by procedures as may be established by
    the Committee from time to time. In order to be effective as of
    a specific date, an enrollment election must be received by the
    Company no later than the deadline specified by the Committee,
    in its discretion and on a nondiscriminatory basis, from time to
    time. Any Participant who is automatically re-enrolled in the
    Plan shall be deemed to have elected to continue his or her
    payroll withholding or contributions at the percentage last
    elected by the Participant. Notwithstanding the foregoing, to
    the extent necessary to comply with Section 423(b)(8) of
    the Code and Section 5.3 of the Plan, the Company may
    automatically decrease a Participant’s payroll deductions
    to zero percent (0%) at any time during an option period. Under
    such circumstances, payroll deductions shall recommence at the
    rate provided in such Participant’s enrollment form at the
    beginning of the first Purchase Period which is scheduled to end
    in the following calendar year, unless terminated by the
    Participant as provided in Section 7 of the Plan.

 

    Section 5

    

 

    OPTIONS
    TO PURCHASE COMMON STOCK
    

 

    5.1 Grant of Option.  On each
    Enrollment Date on which the Participant enrolls or re-enrolls
    in the Plan, he or she shall be granted an option to purchase
    shares of Common Stock.

 

    5.2 Duration of Option.  Each
    option granted under the Plan shall expire on the earliest to
    occur of (a) the completion of the purchase of shares on
    the last Purchase Date occurring within 27 months of the
    Grant Date of such option, (b) such shorter option period
    as may be established by the Committee from time to time, in its
    discretion and on a uniform and nondiscriminatory basis, prior
    to an Enrollment Date for all options to be granted on such
    Enrollment Date, or (c) the date on which the Participant
    ceases to be such for any reason.

 

    5.3 Number of Shares Subject to
    Option.  The maximum number of shares
    available for purchase by each Participant under the option or
    on any given Purchase Date shall be established by the Committee
    from time to time prior to an Enrollment Date for all options to
    be granted on such Enrollment Date, subject to this
    Section 5.3. Unless and until otherwise determined by the
    Committee, a Participant may not purchase more than five
    thousand shares (subject o adjustment in accordance with
    Section 3.2) on any given Purchase Date. Notwithstanding
    any contrary

    

    A-3

 

    provision of the Plan, to the extent required under
    Section 423(b) of the Code, an option (taken together with
    all other options then outstanding under this Plan and under all
    other similar employee stock purchase plans of the Employers)
    shall not give the Participant the right to purchase shares at a
    rate which accrues in excess of $25,000 of fair market value at
    the applicable Grant Dates of such shares in any calendar year
    during which such Participant is enrolled in the Plan at any
    time.

 

    5.4 Other Terms and
    Conditions.  Each option shall be subject to
    the following additional terms and conditions:

 

    (a) payment for shares purchased under the option shall be
    made only through payroll withholding under Section 4.2,
    unless payroll withholding is not permitted under local laws as
    determined by the Committee, in which case the Participant may
    contribute by such other means as specified by the Committee;

 

    (b) purchase of shares upon exercise of the option shall be
    accomplished only in accordance with Section 6.1;

 

    (c) the price per share under the option shall be
    determined as provided in Section 6.1, subject to
    adjustment pursuant to Section 3.2; and

 

    (d) the option in all respects shall be subject to such
    other terms and conditions, applied on a uniform and
    nondiscriminatory basis, as the Committee shall determine from
    time to time in its discretion.

 

    Section 6

    

 

    PURCHASE
    OF SHARES
    

 

    6.1 Exercise of Option.  Subject to
    Section 6.2 and the limits established under
    Section 5.3, on each Purchase Date, the funds then credited
    to each Participant’s account shall be used to purchase
    whole shares of Common Stock. Any cash remaining after whole
    shares of Common Stock have been purchased or that exceed the
    $25,000 cap described in Section 5.3 above, shall be
    refunded to the Participant without interest (except as
    otherwise required under local laws). The price per Share of the
    Shares purchased under any option granted under the Plan shall
    be determined by the Committee from time to time, in its
    discretion and on a uniform and nondiscriminatory basis, for all
    options to be granted on an Enrollment Date. However, in no
    event shall the price be less than eighty-five percent (85%) of
    the lower of:

 

    (a) the closing price per Share on the Grant Date for such
    option on the NASDAQ Global Select Market; or

 

    (b) the closing price per Share on the Purchase Date on the
    NASDAQ Global Select Market.

 

    If a closing price is not available on the Grant Date or
    Purchase Date, then the closing price per Share referred to in
    6.1(a) and (b) above shall refer to the closing price per
    Share on the first NASDAQ Global Select Market trading day
    immediately following the Grant Date or preceding the Purchase
    Date, respectively.

 

    6.2 Delivery of Shares.  As
    directed by the Committee in its sole discretion, shares
    purchased on any Purchase Date shall be delivered directly to
    the Participant or to a custodian or broker, if any, designated
    by the Committee to hold shares for the benefit of the
    Participants. As determined by the Committee from time to time,
    such shares shall be delivered as physical certificates or by
    means of a book entry system.

 

    6.3 Exhaustion of Shares.  If at
    any time the shares available under the Plan are over-enrolled,
    enrollments shall be reduced to eliminate the over-enrollment,
    as the Committee determines, which determination shall be on a
    uniform and nondiscriminatory manner. For example, the Committee
    may determine that such reduction method shall be “bottom
    up”, with the result that all option exercises for one
    share shall be satisfied first, followed by all exercises for
    two shares, and so on, until all available shares have been
    exhausted. Any funds that, due to over-enrollment, cannot be
    applied to the purchase of whole shares shall be refunded to the
    Participants without interest thereon, except as otherwise
    required under local laws.

 

    6.4 Tax Withholding.  Prior to the
    delivery of any shares purchased under the Plan, the Company
    shall have the power and the right to deduct or withhold, or
    require a Participant to remit to the Company, an amount
    sufficient

    

    A-4

 

    to satisfy all tax and social insurance liability obligations
    and requirements in connection with the options and shares
    purchased thereunder, if any, including, without limitation, all
    federal, state, and local taxes (including the
    Participant’s FICA obligation, if any) that are required to
    be withheld by the Company or the employing Subsidiary, the
    Participant’s and, to the extent required by the Company
    (or the employing Subsidiary), the Company’s (or the
    employing Subsidiary’s) fringe benefit tax liability, if
    any, associated with the grant, vesting, or sale of shares and
    any other Company (or employing Subsidiary) taxes the
    responsibility for which the Participant has agreed to bear with
    respect to such shares.

 

    Section 7

    

 

    WITHDRAWAL
    

 

    7.1 Withdrawal.  A Participant may
    withdraw from the Plan by submitting a withdrawal form to the
    Company in such form and manner as the Committee may specify
    (which may be in electronic form). A withdrawal shall be
    effective only if it is received by the Company by the deadline
    specified from time to time by the Committee, in its discretion
    and on a uniform and nondiscriminatory basis. Unless otherwise
    determined by the Committee, when a withdrawal becomes
    effective, the Participant’s payroll contributions shall
    cease and all amounts then credited to the Participant’s
    account shall be distributed to him or her, without interest
    thereon, except as otherwise required under local laws.

 

    Section 8

    

 

    CESSATION
    OF PARTICIPATION
    

 

    8.1 Termination of Status as Eligible
    Employee.  A Participant shall cease to be a
    Participant immediately upon the cessation of his or her status
    as an Eligible Employee (for example, because of his or her
    termination of employment from all Employers for any reason),
    except that the Committee, in its discretion and on a uniform
    and nondiscriminatory basis, may permit an individual who has
    ceased to be an Eligible Employee to exercise his or her option
    on the next Purchase Date to the extent permitted by Code
    Section 423. As soon as practicable after such cessation,
    the Participant’s payroll contributions shall cease and all
    amounts then credited to the Participant’s account shall be
    distributed to him or her without interest thereon, except as
    otherwise required under local laws.

 

    Section 9

    

 

    DESIGNATION
    OF BENEFICIARY
    

 

    9.1 Designation.  Each Participant
    may, pursuant to such uniform and nondiscriminatory procedures
    as the Committee may specify in its discretion from time to
    time, designate one or more Beneficiaries to receive any amounts
    credited to the Participant’s account at the time of his or
    her death. Notwithstanding any contrary provision of this
    Section 9, Sections 9.1 and 9.2 shall be operative
    only after, and for so long as, the Committee determines on a
    uniform and nondiscriminatory basis to permit the designation of
    Beneficiaries.

 

    9.2 Changes.  A Participant may
    designate different Beneficiaries or may revoke a prior
    Beneficiary designation at any time by delivering a new
    designation or revocation of a prior designation, as applicable,
    in like manner. Any designation or revocation shall be effective
    only if it is received by the Committee. However, when so
    received, the designation or revocation shall be effective as of
    the date the designation or revocation is executed, whether or
    not the Participant still is living, but without prejudice to
    the Committee on account of any payment made before the change
    is recorded. The last effective designation received by the
    Committee shall supersede all prior designations.

 

    9.3 Failed Designations.  If a
    Participant dies without having effectively designated a
    Beneficiary, or if no Beneficiary survives the Participant, the
    Participant’s account shall be payable to his or her estate.

    

    A-5

 

    Section 10

    

 

    ADMINISTRATION
    

 

    10.1 Plan Administrator.  The Plan
    shall be administered by the Committee. The Committee shall have
    the authority to control and manage the operation and
    administration of the Plan.

 

    10.2 Actions by Committee.  Each
    decision of a majority of the members of the Committee then in
    office shall constitute the final and binding act of the
    Committee. The Committee may act with or without a meeting being
    called or held and shall keep minutes of all meetings held and a
    record of all actions taken by written consent.

 

    10.3 Powers of Committee.  The
    Committee shall have all powers and discretion necessary or
    appropriate to administer the Plan and to control its operation
    in accordance with its terms, including, but not by way of
    limitation, the following discretionary powers:

 

    (a) To interpret and determine the meaning and validity of
    the provisions of the Plan and the options and to determine any
    question arising under, or in connection with, the
    administration, operation or validity of the Plan or the options;

 

    (b) To determine the form and manner for Participants to
    make elections under the Plan;

 

    (c) To determine any and all considerations affecting the
    eligibility of any Employee to become a Participant or to remain
    a Participant in the Plan;

 

    (d) To cause an account or accounts to be maintained for
    each Participant and establish rules for the crediting of
    contributions
    and/or
    shares to the account(s);

 

    (e) To determine the time or times when, and the number of
    shares for which, options shall be granted;

 

    (f) To establish and revise an accounting method or formula
    for the Plan;

 

    (g) To designate a custodian or broker to receive shares
    purchased under the Plan and to determine the manner and form in
    which shares are to be delivered to the designated custodian or
    broker;

 

    (h) To determine the status and rights of Participants and
    their Beneficiaries or estates;

 

    (i) To employ such brokers, counsel, agents and advisers,
    and to obtain such broker, legal, clerical and other services,
    as it may deem necessary or appropriate in carrying out the
    provisions of the Plan;

 

    (j) To establish, from time to time, rules for the
    performance of its powers and duties and for the administration
    of the Plan;

 

    (k) To adopt such procedures and subplans (which need not
    qualify under Section 423(b) of the Code) as are necessary
    or appropriate to permit participation in the Plan by employees
    who are foreign nationals or employed outside of the United
    States; and

 

    (l) To delegate to any one or more of its members or to any
    other person including, but not limited to, employees of any
    Employer, severally or jointly, the authority to perform for and
    on behalf of the Committee one or more of the functions of the
    Committee under the Plan.

 

    10.4 Decisions of Committee.  All
    actions, interpretations, and decisions of the Committee shall
    be made in the sole discretion of the Committee and shall be
    conclusive and binding on all persons, and shall be given the
    maximum deference permitted by law.

 

    10.5 Administrative Expenses.  All
    expenses incurred in the administration of the Plan by the
    Committee, or otherwise, including legal fees and expenses,
    shall be paid and borne by the Employers, except any stamp
    duties or transfer taxes applicable to the purchase of shares
    may be charged to the account of each Participant. Any brokerage
    fees for the purchase of shares by a Participant shall be paid
    by the Company, but fees and taxes (including brokerage fees)
    for the transfer, sale or resale of shares by a Participant, or
    the issuance of physical share certificates, shall be borne
    solely by the Participant.

    

    A-6

 

    10.6 Eligibility to
    Participate.  No member of the Committee who
    is also an employee of an Employer shall be excluded from
    participating in the Plan if otherwise eligible, but he or she
    shall not be entitled, as a member of the Committee, to act or
    pass upon any matters pertaining specifically to his or her own
    account under the Plan.

 

    10.7 Indemnification.  Each of the
    Employers shall, and hereby does, indemnify and hold harmless
    the members of the Committee and the Board, from and against any
    and all losses, claims, damages or liabilities, including
    attorneys’ fees and amounts paid, with the approval of the
    Board or the Committee, in settlement of any claim, arising out
    of or resulting from the implementation of a duty, act or
    decision with respect to the Plan, so long as such duty, act or
    decision does not involve gross negligence or willful misconduct
    on the part of any such individual.

 

    Section 11

    

 

    AMENDMENT,
    TERMINATION, AND DURATION
    

 

    11.1 Amendment, Suspension, or
    Termination.  The Board or the Committee, in
    its sole discretion, may amend, suspend or terminate the Plan,
    or any part thereof, at any time and for any reason. If the Plan
    is amended, suspended or terminated, the Board or the Committee,
    in its discretion, may elect to terminate all outstanding
    options either immediately or upon completion of the purchase of
    shares on the next Purchase Date (which, notwithstanding
    Section 2.15, may be sooner than originally scheduled, if
    determined by the Board or the Committee in its discretion), or
    may elect to permit options to expire in accordance with their
    terms (and participation to continue through such expiration
    dates). If the options are terminated prior to expiration, all
    amounts then credited to Participants’ accounts that have
    not been used to purchase shares shall be returned to the
    Participants (without interest thereon, except as otherwise
    required under local laws) as soon as administratively
    practicable. Except as provided in Section 3.2 and this
    Section 11 hereof, no amendment may make any change in any
    option theretofore granted which adversely affects the rights of
    any Participant unless his or her consent is obtained. To the
    extent necessary to comply with Section 423 of the Code (or
    any successor rule or provision or any other applicable law,
    regulation or stock exchange rule), the Company shall obtain
    stockholder approval of any amendment in such a manner and to
    such a degree as required. The amendment, suspension, or
    termination of the Plan shall not, without the consent of the
    Participant, alter or impair any rights or obligations under any
    option theretofore granted to such Participant. No option may be
    granted during any period of suspension or after termination of
    the Plan. Without stockholder approval and without regard to
    whether any Participant rights may be considered to have been
    “adversely affected,” the Committee shall be entitled
    to change the duration of an option, limit the frequency
    and/or
    number of changes in the amount withheld during the duration of
    an option, establish the exchange ratio applicable to amounts
    withheld in a currency other than U.S. dollars, permit
    payroll withholding in excess of the amount designated by a
    Participant in order to adjust for delays or mistakes in the
    Company’s processing of properly completed withholding
    elections, establish reasonable waiting and adjustment periods
    and/or
    accounting and crediting procedures to ensure that amounts
    applied toward the purchase of Common Stock for each Participant
    properly correspond with amounts withheld from the
    Participant’s Compensation, and establish such other
    limitations or procedures as the Committee determines in its
    sole discretion advisable which are consistent with the Plan.

 

    Without regard to whether any Participant’s rights may be
    considered to have been “adversely affected”, in the
    event the Committee determines that the ongoing operation of the
    Plan may result in unfavorable financial accounting
    consequences, the Committee may, in its discretion and, to the
    extent necessary or desirable, modify or amend the Plan to
    reduce or eliminate such accounting consequence including, but
    not limited to:

 

    (a) amending the Plan to conform with the safe harbor
    definition under Statement of Financial Accounting Standards
    123(R), including with respect to an option issued at the time
    of the amendment;

 

    (b) increasing or otherwise altering the exercise price for
    any option including an option issued at the time of the change
    in exercise price;

 

    (c) reducing the maximum percentage of Compensation a
    Participant may elect to set aside as payroll deductions;

    

    A-7

 

    (d) shortening the duration of any option so that the
    option ends on a new Purchase Date, including an option issued
    at the time of the Committee action; and

 

    (e) reducing the number of shares that may be purchased
    upon exercise of outstanding options.

 

    Such modifications or amendments shall not require stockholder
    approval or the consent of any Participants.

 

    11.2 Duration of the Plan.  The
    Plan shall commence on the date specified herein, and subject to
    Section 11.1 (regarding the Board’s and the
    Committee’s right to amend or terminate the Plan), shall
    remain in effect thereafter. Unless terminated sooner by the
    Committee or the Board, the Plan will expire May 21, 2018.

 

    Section 12

    

 

    GENERAL
    PROVISIONS
    

 

    12.1 Participation by
    Subsidiaries.  One or more Subsidiaries of the
    Company may become participating Employers by adopting the Plan
    and obtaining approval for such adoption from the Board or the
    Committee. By adopting the Plan, a Subsidiary shall be deemed to
    agree to all of its terms, including, but not limited to, the
    provisions granting exclusive authority (a) to the Board
    and the Committee to amend the Plan, and (b) to the
    Committee to administer and interpret the Plan. An Employer may
    terminate its participation in the Plan at any time. The
    liabilities incurred under the Plan to the Participants employed
    by each Employer shall be solely the liabilities of that
    Employer, and no other Employer shall be liable for benefits
    accrued by a Participant during any period when he or she was
    not employed by such Employer.

 

    12.2 Inalienability.  In no event
    may either a Participant, a former Participant or his or her
    Beneficiary, spouse or estate sell, transfer, anticipate,
    assign, hypothecate, or otherwise dispose of any right or
    interest under the Plan; and such rights and interests shall not
    at any time be subject to the claims of creditors nor be liable
    to attachment, execution or other legal process. Accordingly,
    for example, a Participant’s interest in the Plan is not
    transferable pursuant to a domestic relations order.

 

    12.3 Severability.  In the event
    any provision of the Plan shall be held illegal or invalid for
    any reason, the illegality or invalidity shall not affect the
    remaining parts of the Plan, and the Plan shall be construed and
    enforced as if the illegal or invalid provision had not been
    included.

 

    12.4 Requirements of Law.  The
    granting of options and the issuance of shares shall be subject
    to all applicable laws, rules, and regulations, and to such
    approvals by any governmental agencies or securities exchanges
    as the Committee may determine are necessary or appropriate.

 

    12.5 Compliance with
    Rule 16b-3.  Any
    transactions under this Plan with respect to officers, as
    defined in
    Rule 16a-1
    promulgated under the 1934 Act, are intended to comply with
    all applicable conditions of
    Rule 16b-3.
    To the extent any provision of the Plan or action by the
    Committee fails to so comply, it shall be deemed null and void
    to the extent permitted by law and deemed advisable by the
    Committee. Notwithstanding any contrary provision of the Plan,
    if the Committee specifically determines that compliance with
    Rule 16b-3
    no longer is required, all references in the Plan to
    Rule 16b-3
    shall be null and void.

 

    12.6 No Enlargement of Employment
    Rights.  Neither the establishment or
    maintenance of the Plan, the granting of options, the purchase
    of shares, nor any action of any Employer or the Committee,
    shall be held or construed to confer upon any individual any
    right to be continued as an employee of the Employer nor, upon
    dismissal, any right or interest in any specific assets of the
    Employers other than as provided in the Plan. Each Employer
    expressly reserves the right to discharge any employee at any
    time, with or without cause.

 

    12.7 Apportionment of Costs and
    Duties.  All acts required of the Employers
    under the Plan may be performed by the Company for itself and
    its Subsidiaries, and the costs of the Plan may be equitably
    apportioned by the Committee among the Company and the other
    Employers. Whenever an Employer is permitted or required under
    the terms of the Plan to do or perform any act, matter or thing,
    it shall be done and performed by any officer or employee of the
    Employers who is thereunto duly authorized by the Employers.

    

    A-8

 

    12.8 Construction and Applicable
    Law.  The Plan is intended to qualify as an
    “employee stock purchase plan” within the meaning of
    Section 423(b) of the Code. Subject to Section 10.3(k)
    any provision of the Plan that is inconsistent with
    Section 423(b) of the Code shall, without further act or
    amendment by the Company or the Committee, be reformed to comply
    with the requirements of Section 423(b). The provisions of
    the Plan shall be construed, administered and enforced in
    accordance with such Section and with the laws of the State of
    California, excluding California’s conflict of laws
    provisions.

 

    12.9 Captions.  The captions
    contained in and the table of contents prefixed to the Plan are
    inserted only as a matter of convenience, and in no way define,
    limit, enlarge or describe the scope or intent of the Plan nor
    in any way shall affect the construction of any provision of the
    Plan.

 

    12.10 Automatic Transfer to Low Price Option
    Period.  To the extent permitted by applicable
    laws, if the fair market value of the Common Stock on any
    Enrollment Date is higher than the fair market value of the
    Common Stock on the first day of any later Purchase Period
    during the same option period, then all Participants in such
    option period shall be automatically withdrawn from such option
    period and automatically re-enrolled in the immediately
    following new option period.

    

    A-9

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