Document:

Corporation Stock Option Plan for Non-Employee Directors

 Exhibit 10.4 
  
 MICROSOFT CORPORATION 
 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS 
 (as amended and restated as of November 15, 2004) 
  
 1. Purpose 
  
 The purpose of the Microsoft Corporation Stock Option Plan for Non-Employee
Directors (the “Plan”) is to attract and retain the services of experienced and knowledgeable independent directors of Microsoft Corporation (the “Corporation”) for the benefit of the Corporation and its stockholders and to
provide additional incentive for such directors to continue to work for the best interests of the Corporation and its stockholders through continuing ownership of its common stock. 
  
 2. Shares Subject to the Plan 
  
 The total number of shares of common stock (“Shares”), of the Corporation for which options may be granted under
the Plan shall not exceed 36,033,332 in the aggregate, subject to adjustment in accordance with Section 12 hereof. Within the foregoing limitations, Shares for which options have been granted pursuant to the Plan but which options have lapsed or
otherwise terminated shall become available for the grant of additional options. There will initially be reserved for issuance or transfer from the Corporation’s treasury upon the exercise of options granted under the Plan 36,033,332 Shares,
subject to adjustment in accordance with Section 13 hereof. 
  
 3.
Administration of Plan 
  
 All aspects of the Plan
relating to non-discretionary options shall be administered by the Board of Directors of the Corporation. All aspects of the Plan relating to the grant of discretionary options pursuant to Section 5, and all administrative functions relating to
discretionary options, shall be handled by a Board committee of two or more directors, each of whom is a “disinterested person” (as that term is defined in Rule 16b-3(c)(2) promulgated by the Securities and Exchange Commission pursuant to
its authority under the Securities Exchange Act of 1934). The Board of the Committee, as the case may be, shall have the power to construe the Plan and the terms of the Shares, to determine all questions arising thereunder, and to adopt and amend
such rules and regulations for the administration of the Plan as it may deem desirable; provided that, no consent of an option holder is necessary where the modification, amendment, acceleration, or deferral in the reasonable judgment of the Board
confers a benefit on the option holder, or is made pursuant to an adjustment in accordance with Section 13. References to the “Board” in this Plan shall be deemed to refer to either the Board or the Committee, whichever is appropriate in
the context in which the word is used. 
  
 4. Grant of
Non-Discretionary Options 
  
 Each director who (a) satisfies
all of the following criteria: 
  
 (i) such
person is not, and has not during the immediately preceding 12 month period been, an employee of the Corporation or any subsidiary of the Corporation; 
  
 (ii) such person does not own any common stock of the Corporation which (x) he acquired directly from the Corporation and (y) is currently
subject to any contractual provision whereby such stock is either forfeitable or subject to mandatory resale to the Corporation on the occurrence of certain specified events; and 

 (iii) such person does not hold any unvested stock options to purchase common stock of
the Corporation, except for non-discretionary stock options previously granted pursuant to this Section 4 of the Plan. 
  
 and (b) who is in office on November 30 of any year (commencing with November 30, 1989) shall, on the immediately succeeding January 1, automatically be granted an option
to acquire 5,000 Shares under the Plan. 
  
 5. Discretionary
Option Grants for New Directors 
  
 An option may be granted
by the Board in its discretion to any person who (i) is elected a director of the Corporation, (ii) has not previously served as a director of the Corporation, and (iii) at the time of his election, satisfied criterion (a)(i) of Section 4 above. No
options under this Section 5 may be granted for more than 50,000 shares. An option under this Section 5 must be granted either on the date the new director is first elected as a director or on a prior date, but any option granted on a prior date
shall be conditioned on the election of the optionee as a director. No director shall be eligible for an option grant under this Section 5 after the date he is first elected as a director. 
  
 6. Option Agreement 
  
 Each option granted under the Plan shall be evidenced by an option agreement
(the “Agreement”) duly executed on behalf of the Corporation and by the director to whom such option is granted, which Agreements may but need not be identical and which shall (i) comply with and be subject to the terms and conditions of
the Plan and (ii) provide that the director agrees to continue to serve as a director of the Corporation during the term for which he or she was elected. Any Agreement may contain such other terms, provisions, and conditions not inconsistent with
the Plan as may be determined by the Board. No option shall be deemed granted within the meaning of the Plan and no purported grant of any option shall be effective, until such Agreement shall have been duly executed on behalf of the Corporation and
the director to whom the option is to be granted. 
  
 7. Option
Exercise Price 
  
 (a) The option exercise price for a
non-discretionary option granted pursuant to Section 4 of the Plan shall be the fair market value of the Shares covered by the option on the date of grant, or, if such date is not a day on which Shares are traded, on the trading day (the
“Pricing Date”), immediately preceding the date on which the option is granted. 
  
 (b) The option exercise price for a discretionary option granted pursuant to Section 5 of the Plan shall be set by the Board in its discretion. 
  
 (c) For purposes hereof, the fair market value of the Shares covered by an option shall be the closing price of the Shares
on the applicable date as reported in the National Market List of the National Association of Securities Dealers Inc. Automated Quotation System or on the principal national securities exchange on which the Shares are then listed for trading.

  
 8. Time and Manner of Exercise of Option 
  
 (a) Non-discretionary options granted pursuant to Section 4 of the Plan
shall not be immediately exercisable, but shall become exercisable in full upon the first anniversary of the date of grant. 
  

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 (b) The exercisability of discretionary options pursuant to Section 5 of the Plan shall be set by the
Board in its discretion and shall be memorialized in the Agreement between the Corporation and the director to whom the option is granted. 
  
 (c) To the extent that the right to exercise an option has accrued and is in effect, the option may be exercised from time to time, by giving written
notice, signed by the person or persons exercising the option, to the Corporation, stating the number of Shares with respect to which the option is being exercised, accompanied by payment in full for such Shares, which payment may be in whole or in
part in shares of the common stock of the Corporation already owned by the person or persons exercising the option, valued at fair market value on the date of payment (as determined pursuant to Section 7(c) hereof). 
  
 (d) Upon exercise of the option, delivery of a certificate for fully paid and
non-assessable Shares shall be made at the principal office of the Corporation in the State of Washington to the person or persons exercising the option as soon as practicable (but in no event more than 30 days) after the date of receipt of the
notice of exercise by the Corporation, or at such time, place, and manner as may be agreed upon by the Corporation and the person or persons exercising the option. 
  
 9. Term of Options 
  
 Each option shall expire ten years from the date of the granting thereof, but shall be subject to earlier termination as follows: 
  
 (a) In the event of the death of an option holder, the option granted to
such person may be exercised, to the extent exercisable on the date of death pursuant to Section 8(a) or (b), by the estate of such person, or by any person or persons who acquired the right to exercise such option by will or by the laws of descent
and distribution. Such option may be exercised at any time within 180 days after the date of death of such person or prior to the date on which the option expires by its terms, whichever is earlier. 
  
 (b) In the event that an option holder ceases to be a director of the
Corporation, other than by reason of his or her death, the option granted to such person may be exercised, to the extent exercisable on the date such person ceases to be a director, for a period of 30 days after such date, or prior to the date on
which the option expires by its terms, whichever is earlier. 
  
 10. Merger, Consolidation, Sale of Assets, etc., Resulting in a Change in Control 
  
 (a) In the event of a Change in Control (as hereinafter defined), notwithstanding the provisions of Sections 8 and 9, an option granted to a director
pursuant to the Plan shall become fully exercisable if, within one year of such Change in Control, such director shall cease for any reason to be a member of the Board. For purposes hereof, a Change in Control of the Corporation shall be deemed to
have occurred if (i) there shall be consummated (x) any consolidation or merger of the Corporation in which the Corporation is not the continuing or surviving corporation or pursuant to which shares of the common stock of the Corporation would be
converted into cash, securities, or other property, other than a merger of the Corporation in which the holders of the common stock of the Corporation immediately prior to the merger have the same proportionate ownership of common stock of the
surviving corporation immediately after the merger, or (y) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Corporation; or (ii) the stockholders
of the Corporation approve any plan or proposal for the liquidation or dissolution of the Corporation; or (iii) any person (as such term is used in Sections 
  

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 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than William H. Gates,
shall become the beneficial owner (within the meaning of Rule 13d-3 under the Exchange Act) of 30% or more of the Corporation’s outstanding common stock; or (iv) during any period of two consecutive years, individuals who at the beginning of
such period constitute the entire Board of Directors shall cease for any reason to constitute a majority thereof unless the election, or the nomination for election by the Corporation’s stockholders, of each new director was approved by a vote
of at least two-thirds of the directors then still in office who were directors at the beginning of the period. 
  
 (b) Any exercise of an option permitted pursuant to Section 10(a) shall be made within 180 days of the related director’s termination as a director
of the Corporation. 
  
 11. Options Not Transferable

  
 An option granted pursuant to the Plan may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the option holder, only by the option holder; provided that the
Board may permit further transferability, on a general or specific basis, and may impose conditions and limitations on any permitted transferability. 
  
 12. No Rights as Stockholder Until Exercise 
  
 Neither the recipient of an option under the Plan nor his successors in interest shall have any rights as a stockholder of the Corporation with respect to
any Shares subject to an option granted to such person until such person becomes a holder of record of such Shares. 
  
 13. Adjustments Upon Changes in Capitalization or Merger 
  

If any change is made to the Shares by reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other
change affecting the outstanding Shares as a class without the Corporation’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class of securities issuable under the Plan, and (ii) the number
and/or class of securities and/or the price per share covered by outstanding options under the Plan. The Board may also make adjustments described in (i)-(ii) of the previous sentence in the event of any distribution of assets to shareholders other
than a normal cash dividend. In determining adjustments to be made under this Section 13, the Board may take into account such factors as it deems appropriate, including (i) the restrictions of applicable law, (ii) the potential tax consequences of
an adjustment, and (iii) the possibility that some option holders might receive an adjustment and a distribution or other unintended benefit, and in light of such factors or circumstances may make adjustments that are not uniform or proportionate
among outstanding options, modify vesting dates, defer the delivery of stock certificates or make other equitable adjustments. Any such adjustments to outstanding options will be effected in a manner that precludes the enlargement of rights and
benefits under such options. Adjustments, if any, and any determinations or interpretations, including any determination of whether a distribution is other than a normal cash dividend, made by the Board shall be final, binding and conclusive. For
purposes of this Section 13, conversion of any convertible securities of the Corporation shall not be deemed to have been effected without receipt of consideration.” Except as expressly provided herein, no issuance by the Corporation of shares
of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of common stock subject to an option. 
  
 In the event of the proposed dissolution or liquidation of the Corporation,
an outstanding option will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such 
  

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 instances, declare that any option shall terminate as of a date fixed by the Board and give each option holder the right
to exercise an option as to all or any part of the stock covered by such option, including Shares as to which the option would not otherwise be exercisable. In the event of a proposed sale of all or substantially all of the assets of the
Corporation, or the merger of the Corporation with or into another corporation, each option shall be assumed or an equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless
such successor corporation does not agree to assume each option or to substitute an equivalent option, in which case the Board shall, in lieu of such assumption or substitution, provide for the option holder to have the right to exercise such option
as to all of the stock covered by such option, including Shares as to which such option would not otherwise be exercisable. If the Board makes an option fully exercisable in lieu of assumption or substitution in the event of a merger or sale of
assets, the Board shall notify the option holder that the option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the option will terminate upon the expiration of such period. 
  
 14. Restrictions on Issue of Shares 
  
 Anything in this Plan to the contrary notwithstanding, the Corporation may
delay the issuance of Shares covered by the exercise of any option and the delivery of a certificate for such Shares until one of the following conditions shall be satisfied: 
  
 (a) the Shares with respect to which an option has been exercised are at the time of the issue or transfer of such Shares
effectively registered under applicable federal securities laws now in force or hereafter amended; or 
  
 (b) counsel for the Corporation shall have given an opinion, which opinion shall not be unreasonably conditioned or withheld, that such Shares are exempt
from registration under applicable federal securities laws now in force or hereafter amended. 
  
 It is intended that all exercises of options shall be effective. Accordingly, the Corporation shall use its best efforts to bring about compliance with the above conditions within a reasonable time, except that the
Corporation shall be under no obligation to cause a registration statement or a post-effective amendment to any registration statement to be prepared at its expense solely for the purpose of covering the issuance or transfer from the
Corporation’s treasury of Shares in respect of which any option may be exercised. 
  
 15. Purchase for Investment 
  
 Unless the Shares to be issued upon exercise of an option granted under the Plan have been effectively registered under the Securities Act of 1933 as now in force or hereafter amended, the Corporation shall be under no obligation to issue
or transfer any Shares covered by any option unless the person or persons who exercise such option, in whole or in part, shall give a written representation and undertaking to the Corporation, which is satisfactory in form and scope to counsel to
the Corporation and upon which, in the opinion of such counsel, the Corporation may reasonably rely, that he or she is acquiring the shares issued or transferred to him or her for his or her own account as an investment and not with a view to, or
for sale in connection with, the distribution for any such Shares, and that he or she will make no transfer of the same except in compliance with any rules and regulations in force at the time of such transfer under the Securities Act of 1933, or
any other applicable law, and that if Shares are issued or transferred without such registration a legend to this effect may be placed upon the certificates representing the Shares. 
  

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 16. Effective Date 
  
 The effective date (the “Effective Date”) of this Plan shall be the date on which the Plan is approved by
stockholders of the corporation. 
  
 17. Expenses of the
Plan 
  
 All costs and expenses of the adoption and
administration of the Plan shall be borne by the Corporation and none of such expenses shall be charged to any director. 
  
 18. Termination and Amendment of Plan 
  
 Unless sooner terminated as herein provided, the Plan shall terminate ten years from the Effective Date. The Board may at any time terminate the Plan or
make such modification or amendment thereof as it deems advisable; provided, however, that, except as provided in Section 13, the Board may not, without the approval of the stockholders of the Corporation, (i) increase the maximum aggregate number
of shares for which options may be granted under the Plan, (ii) increase the size of the non-discretionary option grants to individual directors, (iii) change the method of setting the option exercise price for non-discretionary options, or (iv)
make any other change which would require shareholder approval pursuant to Rule 16b-3. In addition, the provisions in the Plan regarding the amount, pricing, timing, and class of persons eligible for non-discretionary grants shall not be amended
more than once every six months, other than to comport with changes in the Internal Revenue Code, the Employee Retirement Income Security Act, or the rules thereunder. Except as otherwise provided in Sections 3 and 13, termination or any
modification or amendment of the Plan shall not, without the consent of an option holder, affect his or her rights under an option previously granted to him or her. 
  
 19. Shareholder Approval 
  
 The Plan, as amended, is subject to approval by the shareholders of the Company at the 2004 Annual Meeting of Shareholders. If the Plan, as herein
amended, is not so approved by the shareholders, the Plan, as previously approved, shall continue in effect. 
  
  
 [The number of shares in Section 2 has been increased to reflect stock splits through February 2003 and the adjustments
related to the special dividend payable December 2, 2004 to shareholders of record on November 17, 2004.] 
  

 6Microsoft Corporation Stock Option Plan for Consultants and Advisors

 Exhibit 10.5 
  
 MICROSOFT CORPORATION 
  
 STOCK OPTION PLAN 
 FOR CONSULTANTS AND ADVISORS

 (as amended and restated as of November 15, 2004) 
  

1. Purposes of the Plan. The purposes of this Stock Option Plan are to attract and maintain a long-term relationship with the best available
consultants and advisors, to provide additional incentive to such individuals, and to promote the success of the Company’s business. Options granted hereunder shall be Nonqualified Stock Options, and shall be evidenced by written Stock Option
Agreements. 
  
 2. Definitions. As used herein, the
following definitions shall apply: 
  
 (a)
“Board” shall mean the Committee, if such Committee has been appointed, or the Board of Directors of the Company, if such Committee has not been appointed. 
  
 (b) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (c) “Committee” shall mean the Committee appointed by the
Board of Directors in accordance with paragraph (a) of Section 4 of the Plan, if one is appointed. 
  
 (d) “Common Stock” shall mean the common stock of Microsoft Corporation. 
  
 (e) “Company” shall mean Microsoft Corporation, a Washington corporation. 
  
 (f) “Continuous Status as a Consultant or Advisor” shall
mean the absence of any interruption, expiration, or termination of an Optionee’s consulting or advisory relationship with the Company. Continuous Status as a Consultant or Advisor shall not be considered interrupted in the case of any
temporary interruption in such person’s availability to provide services to the Company which has been authorized in writing by a Vice President of the Company prior to its commencement; provided, however, that the Company may require
suspension of vesting in such cases. Continuous Status as a Consultant or Advisor shall not be considered terminated if such person accepts employment with the Company, and thereafter a person’s Continuous Status as an Employee, and the effects
of an interruption or termination thereof (including by reason of death or disability), shall be determined with reference to the Company’s 1991 Stock Option Plan. 
  
 (g) “Nonqualified Stock Option” shall mean an Option not intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code. 
  
 (h)
“Option” shall mean a stock option granted pursuant to the Plan. 
  
 (i) “Optioned Stock” shall mean the Common Stock subject to an Option. 
  
 (j) “Optionee” shall mean any consultant or advisor who receives an Option. 
  
 (k) “Plan” shall mean this Stock Option Plan for Consultants and Advisors. 

 (l) “Share” shall mean one share of Common Stock, as adjusted in accordance with Section
11 of the Plan. 
  
 3. Stock Subject to the Plan. Subject
to the provisions of Section 11 of the Plan, the maximum aggregate number of shares which may be optioned and sold under the Plan is 4,802,233 shares of Common Stock. The Shares may be authorized, but unissued, or reacquired Common Stock.

  
 If an Option should expire or become unexercisable for any
reason without having been exercised in full, the unpurchased Shares which were subject thereto shall, unless the Plan shall have been terminated, become available for future grant under the Plan. 
  
 4. Administration of the Plan. 
  
 (a) Procedure. The Plan shall be administered by the Board of
Directors of the Company. 
  
 (1) The Board of Directors may
appoint a Committee, consisting of not less than two members of the Board of Directors, to administer the Plan on behalf of the Board of Directors, subject to such terms and conditions as the Board of Directors may prescribe. Once appointed, such
Committee shall continue to serve until otherwise directed by the Board of Directors. 
  
 (2) The Board of Directors may, from time to time, increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor,
fill vacancies however caused, or remove all members of the Committee and thereafter directly administer the Plan. 
  
 (b) Powers of the Board. Subject to the provisions of the Plan, the Board shall have the authority, in its discretion: (i) to grant Nonqualified
Stock Options; (ii) to determine, in accordance with Section 8(b) of the Plan, the fair market value of the Common Stock; (iii) to determine, in accordance with Section 8(a) of the Plan, the exercise price per share of Options to be granted, (iv) to
determine the individuals to whom, and the time or times at which, options shall be granted and the number of Shares to be represented by each Option; (v) to interpret the Plan and the terms of Options; (vi) to prescribe, amend, and rescind rules
and regulations relating to the Plan; (vii) to determine the terms and provisions of each Option granted (which need not be identical) and, with the consent of the holder thereof, modify or amend any Option; (viii) to reduce the exercise price per
share of outstanding and unexercised Options; (ix) to accelerate or defer (with the consent of the Optionee) the vesting or exercise date of any Option; (x) to authorize any person to execute, on behalf of the Company, any instrument required to
effectuate the grant of an Option previously granted by the Board; and (xi) to make all other determinations deemed necessary or advisable for the administration of the Plan; provided that, no consent of an Optionee is necessary under clauses (vii)
or (ix) if the modification, amendment, acceleration, or deferral in the reasonable judgment of the Board confers a benefit upon the Optionee, or is made pursuant to an adjustment in accordance with Section 11. 
  
 (c) Effect of Board’s Decision. All decisions, determinations,
and interpretations of the Board shall be final and binding on all Optionees and any other holders of any Options granted under the Plan. 
  

 2. 

 5. Eligibility. 
  
 (a) Options may be granted to consultants and advisors who provide consulting services to the Company. In no event shall any
employees (full-time or part-time) of the Company be eligible for the grant of an Option under the Plan. Notwithstanding the foregoing, the fact that an Optionee subsequently becomes an employee of the Company shall not affect such Optionee’s
Option, so long as the Optionee’s Continuous Status as a Consultant or Advisor was uninterrupted prior to his or her commencement of employment with the Company. 
  
 (b) Nothing in the Plan or any Option granted hereunder shall confer upon any Optionee any right to continue or require the
continuance of the Optionee’s consulting or advisory relationship with the Company, nor shall it interfere in any way with the Optionee’s right or the Company’s right to terminate such relationship at any time, with or without cause.

  
 6. Term of Plan. The Plan shall become effective upon
its adoption by the Board and shall continue in effect for ten (10) years, unless sooner terminated under Section 14 of the Plan. 
  
 7. Term of Option. The term of each Option shall be no more than ten (10) years from the date of grant. 
  
 8. Exercise Price and Consideration. 
  
 (a) The per Share exercise price under each Option shall be such price as is
determined by the Board, which price may be less than, equal to, or greater than the fair market value per Share on the date of grant. 
  
 (b) The fair market value per Share shall be the closing price per share of the Common Stock on the National Association of Securities Dealers Automated
Quotation (“NASDAQ”) National Market System on the date of grant. If the Common Stock ceases to be listed on the NASDAQ National Market System, the Board shall designate an alternative method of determining the fair market value of the
Common Stock. 
  
 (c) The consideration to be paid for the Shares
to be issued upon exercise of an Option, including the method of payment, shall be determined by the Board at the time of grant and may consist of cash and/or check. Payment may also be made by delivering a properly executed exercise notice,
together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale proceeds necessary to pay the exercise price. 
  
 (d) Prior to issuance of the Shares upon exercise of an Option, the Optionee shall pay any federal, state, and local withholding obligations of the
Company, if applicable. 
  
 9. Exercise of Option.

  
 (a) Procedure for Exercise; Rights as a Stockholder.
Any Option granted hereunder shall be exercisable at such times and under such conditions as determined by the Board at the time of grant, and as shall be permissible under the terms of the Plan. An Option may not be exercised for a fraction of a
Share. 
  

 3. 

 An Option shall be deemed to be exercised when written notice of such exercise has been given to the
Company in accordance with the terms of the Option by the person entitled to exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the
Board, consist of any consideration and method of payment allowable under Section 8(c) of the Plan. Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the
stock certificate evidencing such Shares, no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be
issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the
Plan. 
  
 The exercise of an Option in any manner shall result in
a decrease in the number of Shares which thereafter may be available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b) Termination of Consulting Relationship with Optionee. In the event
of termination of an Optionee’s Continuous Status as a Consultant or Advisor, such Optionee may exercise stock options to the extent exercisable on the date of termination. Such exercise must occur within three (3) months (or such shorter time
as may be specified in the grant), after the date of such termination (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement). To the extent that the Optionee was not entitled to exercise
the Option at the date of such termination, or does not exercise such Option within the time specified herein, the Option shall terminate. 
  
 (c) Termination of Consulting Relationship Due to Disability of Optionee. Notwithstanding the provisions of Section 9(b) above, in the event of
termination of an Optionee’s Continuous Status as a Consultant or Advisor as a result of total and permanent disability (i.e., the inability to engage in any substantial gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of twelve (12) months), such Optionee may exercise stock options to the extent exercisable on the date of termination.
Such exercise must occur within eighteen (18) months (or such shorter time as may be specified in the grant), after the date of such termination (but in no event later than the date of expiration of the term of such Option as set forth in the Option
Agreement). To the extent that the Optionee was not entitled to exercise such Option within the time specified herein, the Option shall terminate. 
  
 (d) Death of Optionee. Notwithstanding the provisions of Section 9(b) above, in the event of the death of an Optionee: 
  
 (i) who is at the time of death a consultant or advisor to the Company, the
Option may be exercised, at any time within six (6) months following the date of death (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement), by the Optionee’s Personal
Representative or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued as of the date of death; or 
  

 4. 

 (ii) whose Option has not yet expired, but whose Continuous Status as a Consultant or Advisor terminated
prior to the date of death, the Option may be exercised, at any time within six (6) months following the date of death (but in no event later than the date of expiration of the term of such Option as set forth in the Option Agreement), by the
Optionee’s Personal Representative or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent of the right to exercise that had accrued at the date of termination. 
  
 (e) Notwithstanding subsections (b), (c), and (d) above, the Board shall have
the authority to extend the expiration date of any outstanding option in circumstances in which it deems such action to be appropriate (provided that no such extension shall extend the term of an option beyond the date on which the option would have
expired if no termination of the Optionee’s Continuous Status as a Consultant or Advisor had occurred). 
  
 10. Non-Transferability of Options. The Option may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. 
  
 11. Adjustments Upon Changes in Capitalization or Merger. If any change is made to the Shares by reason of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change affecting the outstanding Shares as a class without the Company’s receipt of consideration, appropriate adjustments shall be made to (i) the maximum number and/or class
of securities issuable under the Plan, and (ii) the number and/or class of securities and/or the price per share covered by outstanding Options under the Plan. The Board may also make adjustments described in (i)-(ii) of the previous sentence in the
event of any distribution of assets to shareholders other than a normal cash dividend. In determining adjustments to be made under this Section 11, the Board may take into account such factors as it deems appropriate, including (i) the restrictions
of applicable law, (ii) the potential tax consequences of an adjustment, and (iii) the possibility that some Optionees might receive an adjustment and a distribution or other unintended benefit, and in light of such factors or circumstances may make
adjustments that are not uniform or proportionate among outstanding Options, modify vesting dates, defer the delivery of stock certificates or make other equitable adjustments. Any such adjustments to outstanding Options will be effected in a manner
that precludes the enlargement of rights and benefits under such Options. Adjustments, if any, and any determinations or interpretations, including any determination of whether a distribution is other than a normal cash dividend, made by the Board
shall be final, binding and conclusive. For purposes of this Section 11, conversion of any convertible securities of the Company shall not be deemed to have been effected “without receipt of consideration.” Except as expressly provided
herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reasons thereof shall be made with respect to, the number or price of shares of
Common Stock subject to an Option. 
  
 In the event of the
proposed dissolution or liquidation of the Company, the Option will terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such
instances, declare that any Option shall terminate as of a date fixed by the Board and give each Optionee the right to exercise an Option as to all or any part of the Optioned Stock, including Shares as to which the Option would not otherwise be
exercisable. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, the Option shall be assumed or an equivalent option shall be substituted

  

 5. 

 by such successor corporation or a parent or subsidiary of such successor corporation, unless such successor corporation
does not agree to assume the Option or to substitute an equivalent option, in which case the Board shall, in lieu of such assumption or substitution, provide for the Optionee to have the right to exercise the Option as to all of the Optioned Stock,
including Shares as to which the Option would not otherwise be exercisable. If the Board makes an Option fully exercisable in lieu of assumption or substitution in the event of a merger or sale of assets, the Board shall notify the Optionee that the
Option shall be fully exercisable for a period of fifteen (15) days from the date of such notice, and the Option will terminate upon the expiration of such period. 
  
 12. Time of Granting Options. The date of grant of an Option shall, for all purposes, be the date on which the Board
makes the determination granting such Option. Notice of the determination shall be given to each consultant or advisor to whom an Option is so granted within a reasonable time after the date of such grant. 
  
 13. Substitutions and Assumptions. The Board shall have the right to
substitute or assume Options in connection with mergers, reorganizations, separations, or other transactions to which Section 424(a) of the Code applies, provided such substitutions and assumptions are permitted by Section 424 of the Code and the
regulations promulgated thereunder. The number of Shares reserved pursuant to Section 3 may be increased by the corresponding number of Options assumed and, in the case of a substitution, by the net increase in the number of Shares subject to
Options before and after the substitution. 
  
 14. Amendment
and Termination of the Plan. 
  
 (a) Amendment and
Termination. The Board may amend or terminate the Plan from time to time in such respects as the Board may deem advisable. 
  
 (b) Effect of Amendment or Termination. Except as otherwise provided in Sections 4 and 11, any such amendment or termination of the Plan shall not
affect Options already granted and such Options shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board, which agreement must be in writing and
signed by the Optionee and the Company. 
  
 15. Conditions Upon
Issuance of Shares. Shares shall not be issued pursuant to the exercise of an Option unless the exercise of such Option and the issuance and delivery of such shares pursuant to thereto shall comply with all relevant provisions of law, including,
without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and the requirements of any stock exchange upon which the Shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 16. Reservation of Shares. The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall
be sufficient to satisfy the requirements of the Plan. 
  
 [The number of shares
in Section 3 has been adjusted to reflect the 3-for-2 stock split in June 1992, the 2-for-1 stock splits in May 1994, November 1996, February 1998, March 1999 and February 2003, and the adjustments related to the special dividend payable December 2,
2004 to shareholders of record on November 17, 2004.] 
  

 6.

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