Document:

Second Amendment and Limited Consent to Credit Agreement

 Exhibit 10.1 
 Execution Version 
 SECOND AMENDMENT AND LIMITED CONSENT TO CREDIT AGREEMENT 
 THIS SECOND AMENDMENT AND LIMITED CONSENT TO CREDIT AGREEMENT, dated as of the 8th day of July, 2009 (this “Amendment”), is made among IPC HOLDINGS, LTD., a company organized
under the laws of Bermuda (“IPC Holdings”). IPCRe LIMITED, a company organized under the laws of Bermuda (“IPCRe Limited”), Lenders listed on the signature pages hereto, and WACHOVIA BANK, NATIONAL
ASSOCIATION, as Administrative Agent and Fronting Bank (the “Administrative Agent”). 
 RECITALS 
 A. The Credit Parties, the Lenders party thereto and the Administrative Agent are parties to that certain Credit Agreement dated as of April 13,
2006 (as amended by the First Amendment dated as of January 25, 2008 and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used herein without
definition shall have the meanings given to them in the Credit Agreement. 
 B. IPC Holdings and Validus Holdings, Ltd., a Bermuda exempted
company (“Acquirer”) have proposed a business combination in which, pursuant to the Amalgamation Agreement (as defined below) upon satisfaction of certain conditions precedent, IPC Holdings will amalgamate with Validus, Ltd., a
Bermuda exempted company and wholly-owned subsidiary of Acquirer (“Amalco Sub”), into Validus Ltd. (“NewCo”). Immediately after the consummation of the Amalgamation, Acquirer will directly own 100% of the equity interests
of NewCo. 
 C. The Credit Parties desire to obtain the consent of the Required Lenders to the Amalgamation prior to the public announcement
thereof and to make certain amendments to the Credit Agreement, and the Administrative Agent and the Required Lenders have agreed to make such amendments on the terms and conditions set forth herein. 
 STATEMENT OF AGREEMENT 
 NOW,
THEREFORE, in consideration of the foregoing and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 
 LIMITED CONSENT 
 1.1 Subject to the satisfaction of the conditions set forth in Article IV of this Amendment, the undersigned Lenders hereby each offer their limited
consent to the Amalgamation until the earlier of the following (each, a “Consent Termination Event”): (i) 5:00 p.m. EST on January 31, 2010, if the Amalgamation shall not have been consummated by such time; (ii) the
date upon which the board of directors of IPC Holdings shall have withdrawn or withheld its approval of the Amalgamation or qualified or modified such approval in any material manner adverse to the Lenders (taken as a whole), or publicly proposed
to, or publicly announced that it has resolved to take any such action; (iii) the date upon which IPC Holdings 

 
advises the Administrative Agent, or the Administrative Agent otherwise reasonably determines that the Amalgamation Agreement (as defined below) shall have
been waived, amended, supplemented or otherwise modified in a manner materially adverse to the Lenders, (iv) the date upon which the Amalgamation Agreement shall have been terminated by any party thereto, or (v) the failure by IPC Holdings
to pay the closing fees and expenses set forth in Section 7.3 hereof by 5:00 p.m. EDT on July 13, 2009. 
 1.2 Upon the occurrence
of any Consent Termination Event, the limited consent set forth in Section 1.1 hereof shall upon written notice of the Administrative Agent to IPC Holdings terminate and be of no further force or effect, and all rights and remedies with respect
to the matters set forth in Section 1.1 hereof of the Administrative Agent and the Lenders under the Credit Agreement and any other Credit Document shall, without any further action by any person, automatically be reinstated as if the limited
consent set forth in Section 1.1 hereof had not become effective; provided that the occurrence of a Consent Termination Event in and of itself shall not constitute a Default or Event of Default under the Credit Agreement. This limited
consent shall not constitute or be deemed to be a waiver of, consent to or departure from, any other term or provision in the Credit Agreement, which shall continue in full force and effect, nor shall this limited consent constitute a course of
dealing among the parties. For the avoidance of doubt, the occurrence of any Consent Termination Event shall have no effect upon the amendments set forth in Article II herein or the termination of the Tranche 1 Commitments set forth in Article III
herein, each of which are irrevocable. 
 ARTICLE II 
 AMENDMENTS TO CREDIT AGREEMENT 
 Effective as of the Second Amendment Effective Date: 
 2.1 Amendments to Section 1.1 Consisting of New Definitions. The following definitions are hereby added to Section 1.1 of the Credit
Agreement in appropriate alphabetical order: 
 “ ‘Acquirer’ means Validus Holdings, Ltd., a Bermuda
exempted company. 
 “ ‘Amalco Sub’ means Validus Ltd., a Bermuda exempted company and a wholly owned
subsidiary of the Acquirer 
 “ ‘Amalgamation’ means the amalgamation, pursuant to the Amalgamation
Agreement, of Amalco Sub and IPC Holdings into NewCo, with NewCo becoming a Wholly Owned Subsidiary of Acquirer. 
 “
‘Amalgamation Agreement’ means the Agreement and Plan of Amalgamation, dated as of July [—], 2009, by and among IPC Holdings, Amalco Sub, and Acquirer in the form attached as Annex A to the
Second Amendment, as amended, modified, restated or supplemented from time to time in accordance with the terms of the Second Amendment. 
  

 2 

 “ ‘NewCo’ means, after the “Effective Time”(as defined in
the Amalgamation Agreement) of the Amalgamation, Validus Ltd., a Bermuda exempted company.” 
 “
‘Second Amendment’ means the Second Amendment and Limited Consent to Credit Agreement dated as of the 8th day of July, 2009 among IPC Holdings, IPCRe Limited, the Lenders and the Administrative Agent. 
 “ ‘Second Amendment Effective Date’ shall mean the date upon which the conditions to the effectiveness of the Second
Amendment set forth in Article II thereof are satisfied or waived in accordance with their terms.” 
 2.2 Amendments to
Section 1.1 Consisting of Modified Definitions. The following definitions in Section 1.1 of the Credit Agreement are hereby amended in their entirety to read as follows: 
 “ ‘Credit Party’ means (i) prior to the Amalgamation, IPCRe Limited or IPC Holdings, and (ii) after the
Amalgamation, IPCRe Limited and NewCo and “Credit Parties” means all of the foregoing.” 
 “
‘Tranche 2 Maturity Date’ means the earlier of (i) the date of consummation of the Amalgamation or (ii) April 13, 2011.” 
 2.3 Amendment to Section 2.9(e) (Fees). Section 2.9(e) of the Credit Agreement is hereby amended by inserting the following proviso at the end thereof: 
 “provided that upon the earlier of (i) the date 60 days after the Second Amendment Effective Date and (ii) the date of the
consummation of the Amalgamation, the Tranche 2 Commitment Fee shall be increased to a per annum rate of 0.15%;” 
 2.4 Amendment to
Section 2.9(f) (Fees). Section 2.9(f) of the Credit Agreement is hereby amended by inserting the following proviso at the end thereof: 
 “provided that upon the earlier of (i) the date 60 days after the Second Amendment Effective Date and (ii) the date of the consummation of the Amalgamation, the Tranche 2 Letter of Credit Fee shall be increased to a
per annum rate of 0.75%;” 
 2.5 Amendment to Section 2.19 (Increase in Commitments). Section 2.19 of the Credit
Agreement is deleted in its entirety. 
 2.6 Amendment to Section 2.20 (Additional Account Parties). Section 2.20 of the
Credit Agreement is hereby amended by adding the words “but prior to the date of consummation of the Amalgamation” immediately following the words “after the Effective Date” on the second line thereof. 
  

 3 

 2.7 Amendment to Section 3.1 (Syndicated Letters of Credit). Section 3.1(c) of the
Credit Agreement is amended in its entirety to read as follows: 
 “(c) Expiry Date. Each Syndicated Letter of Credit shall expire
at or prior to the close of business on the date one year after the date of the issuance of such Syndicated Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension); provided,
however, that a Syndicated Letter of Credit shall provide by its terms, and on terms acceptable to the Administrative Agent, for renewal for successive periods of one year or less (but not beyond the Final Maturity Date or, if the
Amalgamation shall have been consummated, December 31, 2010) unless and until the Administrative Agent shall have delivered prior written notice of nonrenewal to the beneficiary of such Syndicated Letter of Credit (a “Notice of
Non-Extension”) no later than the time specified in such Syndicated Letter of Credit. The Administrative Agent will give Notices of Non-Extension as to all outstanding Syndicated Letters of Credit the earlier of (i) the date it is
requested to do so by the Required Lenders pursuant to Section 9.2(e), (ii) if the consummation of the Amalgamation shall have occurred, January 1, 2010 and (iii) if the consummation of the Amalgamation shall not have
occurred, the Tranche 2 Termination Date. The Administrative Agent shall promptly provide a copy of any such notice to the applicable Account Party, unless prohibited by any Requirement of Law from doing so.” 
 2.8 Amendment to Section 3.2 (Participated Letters of Credit). Section 3.2(c) of the Credit Agreement is amended in its entirety to read
as follows: 
 “(c) Expiry Date. Each Participated Letter of Credit shall expire at or prior to the close of business on the date
one year after the date of the issuance of such Participated Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension); provided, however, that a Participated_Letter of Credit
shall provide by its terms, and on terms acceptable to the Administrative Agent, for renewal for successive periods of one year or less (but not beyond the Final Maturity Date or, if the Amalgamation shall have been consummated, December 31,
2010) unless and until the Administrative Agent shall have delivered prior written notice of nonrenewal to the beneficiary of such Participated_Letter of Credit (a “Notice of Non-Extension”) no later than the time specified in such
Participated_Letter of Credit. The Administrative Agent will give Notices of Non-Extension as to all outstanding Participated_Letters of Credit the earlier of (i) the date it is requested to do so by the Required Lenders pursuant to
Section 9.2(e), (ii) if the consummation of the Amalgamation shall have occurred, January 1, 2010 and (iii) if the consummation of the Amalgamation shall not have occurred, the Tranche 2 Termination Date. The Administrative
Agent shall promptly provide a copy of any such notice to the applicable Account Party, unless prohibited by any Requirement of Law from doing so.” 
 2.9 Amendment to Section 3.10 (Conversion of Letters of Credit). Section 3.10 of the Credit Agreement is deleted in its entirety. 
 2.10 Amendments to Section 6.1 and 6.2. Upon the consummation of the Amalgamation, the Credit Parties shall no longer be required to comply
with Sections 6.1, 6.2(a), 6.2(c)(i) and (ii) and 6.2(d)(ii) of the Credit Agreement. 
  

 4 

 2.11 Amendment to Section 6.10(b) (Collateral). Section 6.10(b) of the Credit Agreement
is amended in its entirety as follows: 
 “(b) Each Account Party shall at all times cause its respective Borrowing Base to equal or
exceed the sum of 103% of the aggregate principal amount of Tranche 2 Letter of Credit Exposure attributable to such Account Party at such time.” 
 2.12 Amendment to Section 6.10(e) (Collateral). Section 6.10(e) of the Credit Agreement is deleted in its entirety. 
 2.13 Amendments to Article VI (Affirmative Covenants). New Section 6.12 of the Credit Agreement is hereby amended in its entirety as follows: 
 “6.12 Amalgamation Matters. 
 (a) As of the consummation of the Amalgamation, all approvals, permits and consents of any Governmental Authorities (including, without limitation, all relevant Insurance Regulatory Authorities) in each jurisdiction
where any of IPC Holdings, Amalco Sub, NewCo, or IPCRe Limited underwrite or engage in material business or of other Persons (the failure of which to obtain would reasonably likely be materially detrimental to the Credit Parties or the Lenders), if
any, required in connection with the execution and delivery of the Amalgamation Agreement and the consummation of the transactions contemplated thereby shall have been obtained (without the imposition of restrictions or conditions that are
materially adverse to the Administrative Agent, the Fronting Bank or the Lenders with respect to the transactions contemplated hereby), and all related filings, if any, shall have been made, and all such approvals, permits, consents and filings
shall be in full force and effect and the Administrative Agent shall have received such copies thereof as it shall have reasonably requested; all applicable waiting periods shall have expired or terminated; and no order, injunction or decree shall
have been entered by, any Governmental Authority, in each case to enjoin, restrain, restrict, set aside or prohibit, or impose materially adverse conditions upon, the Amalgamation or the consummation of the transactions contemplated thereby.

 (b) The Amalgamation Agreement shall be in full force and effect and shall not have been amended in a manner that is
materially adverse to the Lenders since the Second Amendment Effective Date except such amendments as have been approved by the Administrative Agent (such approval not to be unreasonably withheld or delayed). 
 2.14 Amendments to Article VII (Financial Covenants). Upon the consummation of the Amalgamation, the Credit Parties shall no longer be required to
comply with Article VII of the Credit Agreement. 
  

 5 

 2.15 Amendment to Section 9.1(q) (Events of Default). Section 9.1(q) of the Credit
Agreement is hereby amended in its entirety as follows: 
 “(q) Any of the following shall occur: 
 (i) at any time prior to the consummation of the Amalgamation, (A) any Person or group of Persons (other than American International
Group, Inc. or any of its Affiliates) acting in concert as a partnership or other group, shall, as a result of a tender or exchange offer, open market purchases, privately negotiated purchases or otherwise, have become, after the date hereof, the
“beneficial owner” (within the meaning of such term under Rule 13d-3 under the Exchange Act) of securities of IPC Holdings representing the right to exercise 30% or more of the Total Voting Power of the then outstanding securities of IPC
Holdings ordinarily (and apart from rights accruing under special circumstances) having the right to vote in the election of directors; or (B) the Board of Directors of IPC Holdings shall cease to consist of a majority of the individuals who
constituted the Board of Directors as of the date hereof or who shall have become a member thereof subsequent to the date hereof after having been nominated, or otherwise approved in writing, by at least a majority of individuals who constituted the
Board of Directors of IPC Holdings as of the date hereof (or their replacements approved as herein required). 
 (ii) at any
time after the consummation of the Amalgamation: (A) NewCo ceases to be a Wholly Owned Subsidiary of Acquirer or (v) 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 NewCo or IPCRe Limited (except as permitted hereunder).” 
 2.16 Amendment to
Section 9.2(c). Section 9.2(c) of the Credit Agreement is hereby amended by deleting the figure “100%” and substituting therefor the figure “103%”. 
 2.17 Amendment to Section 12.7. Section 12.7(a) of the Credit Agreement is hereby amended in its entirety as follows: 
 “(a) remain in full force and effect until the consummation of the Amalgamation, and if the Amalgamation shall not have occurred, until the latest of
(i) the payment in full in cash of all Obligations payable under this Agreement and (ii) the Final Expiry Date.” 
 2.18
Amendments to Schedules. Schedules 1.1(a) (Commitments) and 1.1(b) (Borrowing Base) are hereby amended by substituting Schedules 1.1(a) and l.(b) attached hereto therefor. 
 ARTICLE III 
 TERMINATION OF TRANCHE 1 COMMITMENTS 
 Effective as of the Second Amendment Effective Date, the aggregate Tranche 1 Commitments shall be permanently terminated in whole, and by the execution
hereof of the Required Lenders, the requirement in Section 2.5(b) of the Credit Agreement to provide 3 Business Days prior written notice to the Administrative Agent is hereby waived. 
  

 6 

 ARTICLE IV 
 CONDITIONS OF EFFECTIVENESS 
 4.1 The limited consent set forth in Article I, the amendments set
forth in Article II, and the termination of the aggregate Tranche 1 Commitments shall become effective as of the date (the “Second Amendment Effective Date”) when, and only when, each of the following conditions precedent shall have
been satisfied: 
 (a) The Administrative Agent shall have received counterparts (or other evidence of execution, including telephonic
message, satisfactory to the Administrative Agent) of this Amendment, which collectively shall have been duly executed on behalf of the Credit Parties and the Required Lenders. 
 (b) The representations and warranties of the Credit Parties contained in the Credit Agreement and the other Credit Documents are true and correct in all
material respects as of the Second Amendment Effective Date, with the same effect as though made on such date (unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all
material respects as of such earlier date. 
 (c) No Default or Event of Default has occurred and is continuing or will result from the
execution and delivery or effectiveness of this Amendment or the Amalgamation Agreement (in the case of the Amalgamation Agreement, provided that this Amendment and the limited consent in Article I are effective). 
 (d) The Administrative Agent shall have received evidence satisfactory to it that an amount of cash equal to 103% of the stated amount of all issued and
outstanding Tranche 2 Letters of Credit has been deposited into the Custodial Account. 
 (e) Such other documents, certificates, opinions
and instruments in connection with the transactions contemplated hereby as the Administrative Agent shall have reasonably requested. 
 ARTICLE V 
 CONFIRMATION OF REPRESENTATIONS AND WARRANTIES 
 Each Credit Party hereby represents and warrants, on and as of the Second Amendment Effective Date, that (i) the representations and warranties
contained in the Credit Agreement and the other Credit Documents are true and correct in all material respects on and as of the Second Amendment Effective Date, both immediately before and after giving effect to this Amendment (except to the extent
any such representation or warranty is expressly stated to have been made as of a specific date, in which case such representation or warranty shall be true and correct in all material respects as of such date), (ii) this Amendment has been
duly authorized, executed and delivered by such Credit Party and constitutes the legal, valid and binding obligation of such Credit Party enforceable against it in accordance with its terms, (iii) no Default or Event of Default shall have
occurred and be continuing on the Second Amendment Effective Date, both 

  

 7 

 
immediately before and after giving effect to this Amendment, (iv) the Credit Parties have heretofore furnished to the Administrative Agent true and
complete copies of the Amalgamation Agreement (including all exhibits and schedules) and all amendments, modifications and waivers relating thereto (collectively, the “Amalgamation Documents”) and (v) as of the Second Amendment
Effective Date, none of the Amalgamation Documents has been amended, modified or supplemented, nor any condition or provision thereof waived, in each case in a manner materially adverse to the Lenders other than as approved by the Administrative
Agent, and each such Amalgamation Document is in full force and effect. 
 ARTICLE VI 
 ACKNOWLEDGEMENT AND CONFIRMATION OF THE CREDIT PARTIES 
 Each of the Credit Parties hereby confirms and agrees that, after giving effect to this Amendment, the Credit Agreement and the other Credit Documents remain in full force and effect and enforceable against the Credit
Parties in accordance with their respective terms and shall not be discharged, diminished, limited or otherwise affected in any respect, and represents and warrants to the Lenders that it has no knowledge of any claims, counterclaims, offsets, or
defenses to or with respect to its obligations under the Credit Documents, or if such Credit Party has any such claims, counterclaims, offsets, or defenses to the Credit Documents or any transaction related to the Credit Documents, the same are
hereby waived, relinquished, and released in consideration of the execution of this Amendment. This acknowledgement and confirmation by the Credit Parties is made and delivered to induce the Administrative Agent and the Lenders to enter into this
Amendment, and each of the Credit Parties acknowledges that the Administrative Agent and the Lenders would not enter into this Amendment in the absence of the acknowledgement and confirmation contained herein. 
 ARTICLE VII 
 MISCELLANEOUS 

 7.1 Notice of Non-Extension. After the consummation of the Amalgamation but no sooner than January 1, 2010, the Credit Parties
hereby acknowledge and agree that each of the Administrative Agent (with respect to any Syndicated Letter of Credit) and the Fronting Bank (with respect to any Participated Letter of Credit) is authorized to give Notices of Non-Extension as to all
outstanding Letters of Credit issued by it. 
 7.2 Joinder of NewCo. As of the consummation of the Amalgamation, the parties hereto
agree that (i) NewCo shall automatically become and shall be deemed for all purposes to be, a party to the Credit Agreement as a Credit Party as if it were an original signatory thereto, (ii) that it will be deemed to have been and be
bound, jointly and severally with each other Credit Party, by all of the conditions, obligations, appointments, covenants, representations, warranties and other agreements of a Credit Party under, and as set forth in, the Credit Agreement and the
other Credit Documents, (iii) that it assumes all Obligations of IPC Holdings as a primary obligor, (iv) that it grants and confirms the grant of a security interest in its Collateral pursuant to the Security Documents, (v) all
references to the term “IPC Holdings” in the Credit Agreement 

  

 8 

 
and the other Credit Documents shall, unless otherwise specifically provided, mean NewCo and (vi) NewCo will promptly execute all further documentation,
amendments, supplements, schedules, agreements and/or financing statements required by the Administrative Agent consistent and in connection with the Credit Agreement and this Amendment. The Lenders hereby authorize the Administrative Agent, at its
option and in its discretion, to execute any document, amendment or other agreement necessary to effectuate the foregoing. 
 7.3 Closing
Fees and Expenses. IPC Holdings agrees to pay to the Administrative Agent: (i) to Wells Fargo Securities, LLC, the fees and, to the extent invoiced, expenses (including legal fees and expenses) specified in the engagement letter, dated
July 8, 2009, among IPC Holdings, and Wells Fargo Securities, LLC, (ii) to the Administrative Agent, for the account of each Lender that has approved this Amendment on or prior to July 8, 2009, an amendment fee equal to 0.125% of the
Tranche 2 Commitment of such Lender, (iii) all accrued and unpaid interest and fees outstanding with respect to the Tranche 1 Commitments and (iv) all other fees and reasonable expenses of the Administrative Agent (including, without
limitation, legal fees and expenses invoiced prior to such date) in connection with the Amendment, and all of the foregoing shall have been paid no later than 5:00 p.m. EDT on July 13, 2009. 
 7.4 Governing Law. This Amendment shall be governed by and construed and enforced in accordance with the laws of the State of New York.

 7.5 Full Force and Effect. Except as expressly amended hereby, the Credit Agreement shall continue in full force and effect in
accordance with the provisions thereof on the date hereof. As used in the Credit Agreement, “hereinafter,” “hereto,” “hereof,” and words of similar import shall, unless the context otherwise requires, mean the Credit
Agreement after amendment by this Amendment. Any reference to the Credit Agreement or any of the other Credit Documents herein or in any such documents shall refer to the Credit Agreement and Credit Documents as amended hereby. This Amendment is
limited as specified and shall not constitute or be deemed to constitute an amendment, modification or waiver of any provision of the Credit Agreement except as expressly set forth herein. This Amendment shall constitute a Credit Document under the
terms of the Credit Agreement. 
 7.6 Expenses. All reasonable fees and expenses of counsel to the Administrative Agent, and all
reasonable out-of-pocket costs and expenses of the Administrative Agent, in each case, in connection with the preparation, negotiation, execution and delivery of this Amendment and the other Credit Documents delivered in connection herewith shall
have been paid. 
 7.7 Severability. To the extent any provision of this Amendment is prohibited by or invalid under the applicable
law of any jurisdiction, such provision shall be ineffective only to the extent of such prohibition or invalidity and only in any such jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the remaining
provisions of this Amendment in any jurisdiction. 
 7.8 Successors and Assigns. This Amendment shall be binding upon, inure to the
benefit of and be enforceable by the respective successors and permitted assigns of the parties hereto. 
  

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 7.9 Construction. The headings of the various sections and subsections of this Amendment have been
inserted for convenience only and shall not in any way affect the meaning or construction of any of the provisions hereof. 
 7.10
Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute
one and the same instrument. 
 [THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 
  

 10 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their duly
authorized officers as of the date first above written. 
  

			
	IPC HOLDINGS, LTD.
		
	By:	 	 /s/ John Weale

	Name:	 	 John Weale

	Title:	 	 President & Interim CEO

  

			
	IPCRe LIMITED
		
	By:	 	 /s/ John Weale

	Name:	 	 John Weale

	Title:	 	 President & Interim CEO

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent, Fronting Bank and as a Lender
		
	By:	 	 /s/ Karen Hanke

	Name:	 	Karen Hanke
	Title:	 	Director

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	HSBC Bank USA National Association
		
	By:	 	 /s/ JIMMY TSE

	Name:	 	 JIMMY TSE

	Title:	 	 VICE PRESIDENT

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	Citibank, N.A.
		
	By:	 	 /s/ Rahul Rajesh

	Name:	 	Rahul Rajesh
	Title:	 	Vice President

 

 
  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	ING BANK N.V., LONDON BRANCH
		
	By:	 	 /s/ N J Marchant

	Name:	 	N J Marchant
	Title:	 	Director
		
	By:	 	 /s/ I Taylor

	Name:	 	I Taylor
	Title:	 	Managing Director

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	MORGAN STANLEY BANK, N.A.,
		
	By:	 	 /s/ Melissa James

	Name:	 	 Melissa James

	Title:	 	 Authorized Signatory

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	 Bayerische Landesbank,
 New York
Branch

		
	By:	 	 /s/ JOSEPH C. CAMPAGNA

		
	Name:	 	 JOSEPH C. CAMPAGNA

		
	Title:	 	 SENIOR VICE PRESIDENT

		
	By:	 	 /s/ STEVEN FIELITZ

		
	Name:	 	 STEVEN FIELITZ

		
	Title:	 	 VICE PRESIDENT

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENT 

			
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Erin O’Rourke

	Name:	 	 Erin O’Rourke

	Title:	 	 Managing Director

  

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AND LIMITED CONSENT TO 
 CREDIT AGREEMENTRegistrant 2004 Omnibus Incentive Compensation Plan

 Exhibit 10.34 
  
  
  
  
  
  
 CALIFORNIA MICRO DEVICES CORPORATION 
 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
 (As Amended by the Board on July 6, 2009) 
  
  
  

 Table of Contents 
  

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

  

 CALIFORNIA MICRO DEVICES CORPORATION

 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
  

 -i- 

			
	 (cc) “Stock”
	  	4
	 (dd) “Stock Option Agreement”
	  	4
	 (ee) “Stock Unit”
	  	4
	 (ff) “Stock Unit Agreement”
	  	4
	 (gg) “Subsidiary”
	  	4
	 (hh) “Total and Permanent Disability”
	  	4
	 Section 3. ADMINISTRATION
	  	4
	 (a) Committee Composition
	  	4
	 (b) Committee for Non-Officer Grants
	  	5
	 (c) Committee Procedures
	  	5
	 (d) Committee Responsibilities
	  	5
	 Section 4. ELIGIBILITY
	  	6
	 (a) General Rule
	  	6
	 (b) Automatic Grants to Outside Directors
	  	6
	 (c) Ten-Percent Stockholders
	  	7
	 (d) Attribution Rules
	  	7
	 (e) Outstanding Stock
	  	7
	 Section 5. STOCK SUBJECT TO PLAN
	  	7
	 (a) Basic Limitation
	  	7
	 (b) Individual Award Limitation
	  	8
	 (c) Additional Shares
	  	8
	 Section 6. RESTRICTED SHARES
	  	8
	 (a) Restricted Stock Agreement
	  	8
	 (b) Payment for Awards
	  	8
	 (c) Vesting
	  	8
	 (d) Voting and Dividend Rights
	  	8
	 (e) Restrictions on Transfer of Shares
	  	8
	 Section 7. TERMS AND CONDITIONS OF OPTIONS
	  	9
	 (a) Stock Option Agreement
	  	9
	 (b) Number of Shares
	  	9
	 (c) Exercise Price
	  	9
	 (d) Withholding Taxes
	  	9
	 (e) Exercisability and Term
	  	9

  

 CALIFORNIA MICRO DEVICES CORPORATION

 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
  

 -ii- 

			
	 (f) Exercise of Options Upon Termination of Service
	  	9
	 (g) Effect of Change in Control
	  	9
	 (h) Leaves of Absence
	  	10
	 (i) No Rights as a Shareholder
	  	10
	 (j) Modification, Extension and Renewal of Options
	  	10
	 (k) Restrictions on Transfer of Shares
	  	10
	 Section 8. PAYMENT FOR SHARES
	  	10
	 (a) General Rule
	  	10
	 (b) Surrender of Stock
	  	10
	 (c) Services Rendered
	  	10
	 (d) Cashless Exercise
	  	11
	 (e) Exercise/Pledge
	  	11
	 (f) Other Forms of Payment
	  	11
	 (g) Limitations under Applicable Law
	  	11
	 Section 9. STOCK APPRECIATION RIGHTS
	  	11
	 (a) SAR Agreement
	  	11
	 (b) Number of Shares
	  	11
	 (c) Exercise Price
	  	11
	 (d) Exercisability and Term
	  	11
	 (e) Effect of Change in Control
	  	11
	 (f) Exercise of SARs
	  	11
	 (g) Modification or Assumption of SARs
	  	12
	 Section 10. STOCK UNITS
	  	12
	 (a) Stock Unit Agreement
	  	12
	 (b) Payment for Awards
	  	12
	 (c) Vesting Conditions
	  	12
	 (d) Voting and Dividend Rights
	  	12
	 (e) Form and Time of Settlement of Stock Units
	  	12
	 (f) Death of Recipient
	  	13
	 (g) Creditors’ Rights
	  	13
	 Section 11. TRANSFERABILITY; PERFORMANCE GOALS
	  	13
	 (a) Transferability
	  	13
	 (b) Performance Goals
	  	13

  

 CALIFORNIA MICRO DEVICES CORPORATION

 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
  

 -iii- 

			
	 Section 12. ADJUSTMENT OF SHARES
	  	14
	 (a) Adjustments
	  	14
	 (b) Dissolution or Liquidation
	  	14
	 (c) Reorganizations
	  	14
	 (d) Reservation of Rights
	  	14
	 Section 13. DEFERRAL OF AWARDS
	  	15
	 Section 14. AWARDS UNDER OTHER PLANS
	  	15
	 Section 15. PAYMENT OF DIRECTOR’S FEES IN SECURITIES
	  	15
	 (a) Effective Date
	  	15
	 (b) Elections to Receive NSOs, Restricted Shares or Stock Units
	  	15
	 (c) Number and Terms of NSOs, Restricted Shares or Stock Units
	  	16
	 Section 16. LEGAL AND REGULATORY REQUIREMENTS
	  	16
	 Section 17. WITHHOLDING TAXES
	  	16
	 (a) General
	  	16
	 (b) Share Withholding
	  	16
	 Section 18. NO EMPLOYMENT RIGHTS
	  	16
	 Section 19. DURATION AND AMENDMENTS
	  	16
	 (a) Term of the Plan
	  	16
	 (b) Right to Amend or Terminate the Plan
	  	16
	 (c) Effect of Termination
	  	17
	 Section 20. EXECUTION
	  	18

  

 CALIFORNIA MICRO DEVICES CORPORATION

 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
  

 -iv- 

 CALIFORNIA MICRO DEVICES CORPORATION 

 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
 The Plan
was adopted by the Board of Directors on June 22, 2004, subject to shareholder approval, which was obtained on August 12, 2004 (the “Effective Date”). The plan is a successor to the Company’s 1995 Employee Stock Option
Compensation Plan and the 1995 Non-Employee Directors’ Stock Option Plan (the “Prior Plans”). As of the Effective Date, no further awards shall be made under the Prior Plans other than options to purchase up to 50,000 shares under the
UK subplan to the Company’s 1995 Employee Stock Option Compensation Plan. However, the provisions of the Prior Plans shall continue to apply to awards granted under the Prior Plans prior to the Effective Date. In the event that this Plan is not
approved by shareholders, awards shall continue to be made under the Prior Plans in accordance with their terms. The purpose of the Plan is to promote the long-term success of the Company and the creation of shareholder value by (a) encouraging
Employees, Outside Directors and Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking
Employees, Outside Directors and Consultants directly to shareholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of restricted shares, stock units, options (which may
constitute incentive stock options or nonstatutory stock options) or stock appreciation rights. 
 SECTION 2. DEFINITIONS. 
 (a) “Affiliate” shall mean any entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than
50% of such entity. 
 (b) “Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under
the Plan. 
 (c) “Board of Directors” shall mean the Board of Directors of the Company, as constituted from time to
time. 
 (d) “Change in Control” shall mean the occurrence of any of the following events: 
 (i) A change in the composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who
either: 
 (A) Had been directors of the Company on the “look-back date” (as defined below) (the “original directors”);
or 
 (B) Were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the
aggregate of the original directors who were still in office at the time of the election or nomination and the directors whose election or nomination was previously so approved (the “continuing directors”); or 
 (ii) Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing
under 

  

 1 

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

 (i) “Employee” shall mean any individual who is a common-law employee of the Company, a Parent or a Subsidiary.

 (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  

 2 

 (k) “Exercise Price” shall mean, in the case of an Option, the amount for which one
Common Share may be purchased upon exercise of such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is
subtracted from the Fair Market Value of one Common Share in determining the amount payable upon exercise of such SAR. 
 (l) “Fair
Market Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as follows: 
 (i) If the Stock was traded over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or,
if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on
any such system, by the “Pink Sheets” published by the National Quotation Bureau, Inc.; 
 (ii) If the Stock was traded on The
Nasdaq Stock Market, then the Fair Market Value shall be equal to the last reported sale price quoted for such date by The Nasdaq Stock Market; 
 (iii) If the Stock was traded on a United States stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions report; and 

(iv) If none of the foregoing provisions is applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as
it deems appropriate. 
 In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 
 (m) “ISO” shall mean an employee incentive stock option described in Section 422 of the Code. 
 (n) “Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO. 
 (o) “Offeree” shall mean an individual to whom the Committee has offered the right to acquire Shares under the Plan (other than upon
exercise of an Option). 
 (p) “Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the
holder to purchase Shares. 
 (q) “Optionee” shall mean an individual or estate who holds an Option or SAR. 
 (r) “Outside Director” shall mean a member of the Board of Directors who is not a common-law employee of, or paid consultant to, the
Company, a Parent or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of the Plan, except as provided in Section 4(a). 
 (s) “Parent” shall mean any corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing
50% or more of the total combined voting power of all classes of stock in one of the other corporations in such chain. A corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such
date. 
  

 3 

 (t) “Participant” shall mean an individual or estate who holds an Award. 
 (u) “Plan” shall mean this 2004 Omnibus Incentive Compensation Plan of California Micro Devices Corporation, as amended from time to
time. 
 (v) “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than
upon exercise of an Option), as specified by the Committee. 
 (w) “Restricted Share” shall mean a Share awarded under the
Plan. 
 (x) “Restricted Share Agreement” shall mean the agreement between the Company and the recipient of a Restricted
Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 
 (y) “SAR” shall mean a
stock appreciation right granted under the Plan. 
 (z) “SAR Agreement” shall mean the agreement between the Company and an
Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 
 (aa) “Service” shall mean
service as an Employee, Consultant or Outside Director. 
 (bb) “Share” shall mean one share of Stock, as adjusted in
accordance with Section 8 (if applicable). 
 (cc) “Stock” shall mean the Common Stock of the Company. 
 (dd) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and
restrictions pertaining to his Option. 
 (ee) “Stock Unit” shall mean a bookkeeping entry representing the equivalent of
one Share, as awarded under the Plan. 
 (ff) “Stock Unit Agreement” shall mean the agreement between the Company and the
recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 
 (gg)
“Subsidiary” shall mean any corporation, if the Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding stock of such corporation. A corporation that attains
the status of a Subsidiary on a date after the adoption of the Plan shall be considered a Subsidiary commencing as of such date. 
 (hh)
“Total and Permanent Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or that
has lasted, or can be expected to last, for a continuous period of not less than 12 months. 
 SECTION 3. ADMINISTRATION. 
 (a) Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist of two or more directors of the Company,
who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for

 exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such requirements as the 

  

 4 

 
Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the
Code. 
 (b) Committee for Non-Officer Grants. The Board may also appoint one or more separate committees of the Board, each composed
of two or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not considered officers or directors of the Company under Section 16 of the
Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of the preceding sentence, any reference in the Plan to the Committee shall include such committee or committees
appointed pursuant to the preceding sentence. Subject to compliance with applicable law, the Board of Directors may also authorize one or more officers of the Company to designate Employees, other than officers under Section 16 of the Exchange
Act, to receive Awards and/or to determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors shall specify the total number of Awards that such officers may so award. 
 (c) Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings
at such times and places as it shall determine. The acts of a majority of the Committee members present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee.

 (d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to
take the following actions: 
 (i) To interpret the Plan and to apply its provisions; 
 (ii) To adopt, amend or rescind rules, procedures and forms relating to the Plan; 
 (iii) To authorize any person to execute, on behalf of the Company, any instrument required to carry out the purposes of the Plan; 
 (iv) To determine when Awards are to be granted under the Plan; 
 (v) To select the Offerees and Optionees; 
 (vi) To determine the number of Shares to be made subject to each
Award; 
 (vii) To prescribe the terms and conditions of each Award, including (without limitation) the Exercise Price or Purchase Price, and
the vesting or duration of the Award (including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent of the Participant), to determine whether an Option is to be classified as an ISO or as a
Nonstatutory Option, and to specify the provisions of the agreement relating to such Award; 
 (viii) To establish or verify the extent of
satisfaction of any performance goals or other conditions applicable to the grant, issuance, exercisability, vesting and/or ability to retain any Award; 
 (ix) To amend any outstanding Award agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participant’s rights or obligations would be adversely affected; 
  

 5 

 (x) To prescribe the consideration for the grant of each Award or other right under the Plan and to
determine the sufficiency of such consideration; 
 (xi) To determine the disposition of each Award or other right under the Plan in the event
of a Participant’s divorce or dissolution of marriage; 
 (xii) To determine whether Options or other rights under the Plan will be
granted in replacement of other grants under an incentive or other compensation plan of an acquired business; 
 (xiii) To correct any defect,
supply any omission, or reconcile any inconsistency in the Plan or any Award agreement; and 
 (xiv) To take any other actions deemed
necessary or advisable for the administration of the Plan. 
 Subject to the requirements of applicable law, the Committee may designate persons other than
members of the Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the selection for participation of or
the granting of Options or other rights under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all Offerees, all Optionees, and all
persons deriving their rights from an Offeree or Optionee. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any right to acquire Shares under the
Plan. 
 SECTION 4. ELIGIBILITY. 
 (a) General Rule. Only Employees shall be eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Stock Units, Nonstatutory Options or SARs. 

(b) Automatic Grants to Outside Directors. 
 (i) Each Outside Director who first joins the Board of Directors on or after the Effective Date shall receive a Nonstatutory Option, subject to approval of the Plan by the Company’s stockholders, to purchase 20,000 Shares (subject to
adjustment under Section 11) on the Effective Date or, if later, on his or her appointment or election to the Board of Directors. 
 (ii)
As of the date of each regular annual meeting of the Company’s stockholders, commencing with the annual meeting occurring on the Effective Date, each Outside Director who is not eligible for the grant of an initial option under
Section 4(b)(i) and who has been elected or reelected or is continuing to serve as a member of the Board of Directors as of the adjournment of such meeting shall receive an Option to purchase 10,000 Shares (subject to adjustment under
Section 11), provided that such Outside Director has served on the Board of Directors for at least six months. 
 (iii) Each Option granted under Section 4(b)(i) shall vest and become exercisable as to one fourth of the Shares at the end of the 4th full calendar quarter following the date the Option was granted and as to an additional 1/16th of the Shares at the end of each subsequent full calendar quarter commencing with the 5th full calendar quarter following the
date the Option was granted and each Option granted under Section 4(b)(ii) shall vest and become exercisable as to one-twelfth of the Shares on the date of grant and as to an additional one-twelfth on each of the next eleven (11) monthly
anniversaries of the date of grant; provided, however, that each such Option shall become fully vested if a Change in 

  

 6 

 
Control occurs with respect to the Company during the Outside Director’s Service (unless otherwise provided by the Board in the Outside Director’s
Nonstatutory Option agreement). If a newly-appointed director stands for re-election at an annual stockholder meeting but is not elected prior to the vesting of the initial 5,000 share installment of an Option granted under Section 4(b)(i),
then such installment shall become fully vested as of such annual stockholders meeting. 
 (iv) The Exercise Price of all Nonstatutory Options
granted to an Outside Director under this Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms described in Section 8(a), (b) or (d). 
 (v) All Nonstatutory Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the tenth anniversary
of the date of grant of such Options, (B) the first anniversary of the date of termination of such Outside Director’s Service by reason of death or Total and Permanent Disability, (C) the date 90 days after the termination of such
Outside Director’s Service for any reason other than death or Total and Permanent Disability, (D) the first anniversary of the Outside Director’s death during the 90 day period specified in Section 4(b)(v)(C), or (E) that
date that such Outside Director files or has filed against him or her a petition in bankruptcy; provided, however, that any such Options that are not vested upon the termination of the Outside Director’s Service for any reason shall terminate
immediately and may not be exercised. The Board may also provide for earlier termination in the Outside Director’s Nonstatutory Option agreement. 
 (c) Ten-Percent Stockholders. An Employee who owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant
of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the Code. 
 (d) Attribution Rules. For purposes
of Section 4(c) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly
or indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its shareholders, partners or beneficiaries. 
 (e) Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all stock actually issued and outstanding immediately after the grant. “Outstanding stock”
shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 
 SECTION 5. STOCK SUBJECT TO
PLAN. 
 (a) Basic Limitation. Shares offered under the Plan shall be authorized but unissued Shares. The maximum aggregate number
of Shares that may be subject to Awards granted under the Plan shall not exceed 4,100,000 Shares, plus any Shares remaining available for grant of awards under the Prior Plans on the Effective Date (including Shares subject to outstanding options
under the Prior Plans on the Effective Date that are subsequently forfeited or terminate for any other reason before being exercised and unvested Shares that are forfeited pursuant to such Prior Plans after the Effective Date). Any Shares granted as
Options or SARs shall be counted against this limit as one (1) Share for every one (1) Share granted. In these regards, the number of Shares counted against this limit shall be reduced by the number of Shares covered by an SAR which is
settled in Shares and by the number Shares covered by an Option for which there is a net exercise or withholding in Shares (rather than the number of Shares actually issued). Any Shares granted as Awards other than Options or SARs shall be counted
against this limit as two (2) Shares for every one (1) Share granted. The limitations of this Section 5(a) shall be subject to adjustment pursuant to Section 12. The number of Shares that are subject to Options or other Awards
outstanding at any 

  

 7 

 
time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company, during the term of the Plan,
shall at all times reserve and keep available sufficient Shares to satisfy the requirements of the Plan. 
 (b) Individual Award
Limitation. Subject to the provisions of Section 12, no Participant may receive Options, SARs, Restricted Shares or Stock Units under the Plan in any one fiscal year of the Company that relate to more than 500,000 Shares. 
 (c) Additional Shares. If Restricted Shares or Shares issued upon the exercise of Options are forfeited, then such Shares shall again become
available for Awards under the Plan. If Stock Units, Options or SARs are forfeited or terminate for any other reason before being settled or exercised, then the corresponding Shares shall again become available for Awards under the Plan. If Stock
Units are settled, then only the number of Shares (if any) actually issued in settlement of such Stock Units (multiplied by 2) shall reduce the number available under Section 5(a) and the balance shall again become available for Awards under
the Plan. 
 SECTION 6. RESTRICTED SHARES. 
 (a) Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms
of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
 (b) Payment for Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the Plan for such consideration as the
Committee may determine, including (without limitation) cash, cash equivalents, past services and future services. 
 (c) Vesting.
Each Award of Restricted Shares shall be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Restricted Stock Agreement; provided, however, that an Award of Restricted Shares will
have at least one-year vesting if such Award includes performance conditions and if the Award does not include performance conditions, vesting no more rapidly than pro rata installments over three years from the date the Award is made, other than
upon the death, disability or retirement of the Participant or with respect to such Awards that are issued upon exercise or settlement of Stock Options or SARs, in each case as specified in the agreement evidencing such Award. A Restricted Stock
Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may determine, at the time of granting Restricted Shares of thereafter, that all or part of such
Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company. 
 (d) Voting and Dividend
Rights. The holders of Restricted Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other shareholders. A Restricted Stock Agreement, however, may require that the holders of Restricted
Shares invest any cash dividends received in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
 (e) Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase, rights of first refusal or other
restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general restrictions that may apply to all holders of Shares. 
  

 8 

 SECTION 7. TERMS AND CONDITIONS OF OPTIONS. 
 (a) Stock Option Agreement. Each grant of an Option under the Plan shall be evidenced by a Stock Option Agreement between the Optionee and the
Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent with the Plan and which the Committee deems appropriate for inclusion in a Stock
Option Agreement. The Stock Option Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements entered into under the Plan need not be identical. Options may be granted in consideration of a
reduction in the Optionee’s other compensation. 
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of
Shares that are subject to the Option and shall provide for the adjustment of such number in accordance with Section 12. 
 (c)
Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise provided in Section 4(c),
and the Exercise Price of an NSO shall not be less 100% of the Fair Market Value of a Share on the date of grant. Subject to the foregoing in this Section 7(c), the Exercise Price under any Option shall be determined by the Committee at its
sole discretion. The Exercise Price shall be payable in one of the forms described in Section 8. 
 (d) Withholding Taxes. As a
condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise.
The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising
an Option. 
 (e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the
Option is to become exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of Option shall in no event exceed 10 years from the date of grant (five years for ISOs granted to Employees described in
Section 4(c)). A Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of
the termination of the Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this
Section 7(e), the Committee at its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 
 (f) Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have the right to exercise the Option following termination of the
Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s estate or any person who has acquired such Option(s) directly from the Optionee by bequest
or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination of Service. 

(g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become
exercisable as to all or part of the Shares subject to such Option in the event that a Change in Control occurs with respect to the Company. 
  

 9 

 (h) Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be
actively employed by, or a Consultant to, the Company (or any subsidiary) as determined in the sole discretion of the Board of Directors. For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that
was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO
status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave, unless such Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the
approved leave ends, unless such Employee immediately returns to active work. The Company determines which leaves count toward Service, and when Service terminates for all purposes under the Plan. 
 (i) No Rights as a Shareholder. An Optionee, or a transferee of an Optionee, shall have no rights as a shareholder with respect to any Shares
covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 12. 
 (j) Modification, Extension and Renewal of Options. Within the limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to
the extent not previously exercised), whether or not granted hereunder, in return for the grant of new Options for the same or a different number of Shares and at the same or a different exercise price, or in return for the grant of the same or a
different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without the consent of the Optionee, adversely affect his or her rights or obligations under such Option. In addition, notwithstanding any other provision
of the Plan, in no event shall the Committee cancel any outstanding Option for the purpose of reissuing the Option to the Optionee at a lower exercise price or reduce the exercise price of an outstanding Option. 
 (k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that
may apply to all holders of Shares. 
 SECTION 8. PAYMENT FOR SHARES. 
 (a) General Rule. The entire Exercise Price or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except
as provided in Section 8(b) through Section 8(f) below. 
 (b) Surrender of Stock. To the extent that a Stock Option
Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the
date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Option for financial reporting purposes. 
 (c) Services Rendered. At the discretion of the
Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are awarded without the payment of a Purchase Price in cash, the Committee shall make a determination
(at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of Section 6(b). 
  

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 (d) Cashless Exercise. To the extent that a Stock Option Agreement so provides, payment may be
made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale proceeds to the Company in payment of the aggregate Exercise Price.

 (e) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a
form prescribed by the Committee) of an irrevocable direction to a securities broker or lender to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price.

 (f) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be
made in any other form that is consistent with applicable laws, regulations and rules; provided that payment may not be made by delivery of a promissory note. 
 (g) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Stock Agreement to the contrary, payment may not be made in any form that is unlawful, as
determined by the Committee in its sole discretion. 
 SECTION 9. STOCK APPRECIATION RIGHTS. 
 (a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and the Company. Such SAR shall be
subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical. SARs may be granted in
consideration of a reduction in the Optionee’s other compensation. 
 (b) Number of Shares. Each SAR Agreement shall specify the
number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 12. 
 (c)
Exercise Price. Each SAR Agreement shall specify the Exercise Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its
term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included
in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
 (e) Effect of Change in Control. The Committee may determine, at the time of granting a SAR or thereafter, that such SAR shall become fully
exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company. 
 (f)
Exercise of SARs. Upon exercise of a SAR, the Optionee (or any person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash or (c) a combination of Shares and cash, as the
Committee shall determine. The amount of cash and/or the Fair Market Value of Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by 

  

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which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
 (g) Modification or Assumption of SARs. Within the limitations of the Plan, the Committee may modify, extend or assume outstanding SARs or may
accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of shares and at the same or a different exercise price. The foregoing
notwithstanding, no modification of a SAR shall, without the consent of the holder, may alter or impair his or her rights or obligations under such SAR. In addition, notwithstanding any other provision of the Plan, in no event shall the Committee
cancel any outstanding SAR for the purpose of reissuing the SAR to the Optionee at a lower exercise price or reduce the exercise price of an outstanding SAR. 
 SECTION 10. STOCK UNITS. 
 (a) Stock Unit Agreement. Each grant of Stock Units under the Plan shall be evidenced
by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Stock
Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
 (b) Payment for Awards. To the extent that an Award is granted in the form of Stock Units, no cash consideration shall be required of the Award recipients. 
 (c) Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Stock Unit Agreement; provided, however, that an Award of Stock Units will have at least one-year vesting if such Award includes performance conditions and if the Award does not include performance
conditions, vesting no more rapidly than pro rata installments over three years from the date the Award is made, other than upon the death, disability or retirement of the Participant or with respect to such Awards that are issued upon exercise or
settlement of Stock Options or SARs, in each case as specified in the agreement evidencing such Award. A Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events.
The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested in the event that a Change in Control occurs with respect to the Company. 
 (d) Voting and Dividend Rights. The holders of Stock Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded
under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding.
Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a combination of both. Prior to distribution, any dividend equivalents which are not
paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which they attach. 
 (e) Form and Time of Settlement of Stock Units. Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee.
The actual number of Stock Units eligible for settlement may be larger or smaller than the number included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include (without
limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to
the 

  

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Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of a deferred distribution may be increased by an
interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 12. 
 (f) Death of Recipient. Any Stock Unit Award that becomes payable after the recipient’s death shall be distributed to the recipient’s
beneficiary or beneficiaries. Each recipient of a Stock Unit Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form with the Company. A beneficiary designation may be changed by filing the
prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award recipient, then any Stock Unit Award that becomes payable after the
recipient’s death shall be distributed to the recipient’s estate. 
 (g) Creditors’ Rights. A holder of Stock Units
shall have no rights other than those of a general creditor of the Company. Stock Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
 SECTION 11. TRANSFERABILITY; PERFORMANCE GOALS. 
 (a) Transferability. Except to the extent determined by the Committee, no Award shall be assigned or transferred by a Participant other than by will or the laws of descent and distribution, and during the lifetime of the Participant
may be exercised only by such Participant or his or her guardian or legal representative. 
 (b) Performance
Goals. The number of Shares or other benefits granted, issued, retainable and/or vested under an Award may be made subject to the attainment of performance goals for a specified period of time relating to one or more of the following performance
criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively
over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group or index, in each case as specified by the Committee in the Award: (a) cash flow,
(b) earnings per share, (c) earnings before interest, taxes and amortization, (d) return on equity, (e) total shareholder return, (f) share price performance, (g) return on capital, (h) return on assets or net
assets, (i) revenue, (j) income or net income, (k) operating income or net operating income, (l) operating profit or net operating profit, (m) operating margin or profit margin, (n) return on operating revenue,
(o) return on invested capital, (p) market segment shares, (q) sales, (r) unit openings or (s) customer satisfaction (“Qualifying Performance Criteria”). The Committee may appropriately adjust any evaluation of
performance under a Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes
in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) any extraordinary nonrecurring items as described in Accounting Principles
Board Opinion No. 30 and/or in managements’ discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to shareholders for the applicable year. The Committee shall determine the
Qualifying Performance Criteria not later than the 90th day of the performance
period, and shall determine and certify, for each Participant, the extent to which the Qualifying Performance Criteria have been met. The Committee may not in any event increase the amount of compensation payable under the Plan upon the attainment
of a Qualifying Performance Goal to a Participant who is a “covered employee” within the meaning of Section 162(m) of the Code. 
  

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 SECTION 12. ADJUSTMENT OF SHARES. 
 (a) Adjustments. Notwithstanding any other provision of the Plan (except Section 11(a)), in the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration
of a dividend payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a
recapitalization, a spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 
 (i) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5; 
 (ii) The limitations set forth in Section 5(a) and (b); 
 (iii) The number of Shares covered by each outstanding Option and
SAR; 
 (iv) The Exercise Price under each outstanding Option and SAR; or 
 (v) The number of Stock Units included in any prior Award which has not yet been settled. 
 Except as provided in this Section 12, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any subdivision or
consolidation of shares of stock of any class, the payment of any stock dividend or any other increase or decrease in the number of shares of stock of any class. 
 (b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 

(c) Reorganizations. In the event that the Company is a party to a merger or other reorganization, outstanding Awards shall be subject to the
agreement of merger or reorganization. Such agreement shall provide for: 
 (i) The continuation of the outstanding Awards by the Company, if
the Company is a surviving corporation; 
 (ii) The assumption of the outstanding Awards by the surviving corporation or its parent or
subsidiary; 
 (iii) The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards;

 (iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 
 (v) Settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards. 
 (d) Reservation of Rights. Except as provided in this Section 12, an Optionee or Offeree shall have no rights by reason of any subdivision or
consolidation of shares of stock of any class, the payment of any dividend or any other increase or decrease in the number of shares of stock of any class. Any issue by the 

  

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Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof
shall be made with respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
 SECTION 13. DEFERRAL OF AWARDS. 
 The Committee (in its sole discretion) may permit or require a
Participant to: 
 (a) Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of
Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
 (b) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of Stock Units; or 
 (c) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units
converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of
the date when they otherwise would have been delivered to such Participant. 
 A deferred compensation account established under this
Section 13 may be credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such
an account shall represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is
permitted or required, the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this
Section 13. 
 SECTION 14. AWARDS UNDER OTHER PLANS. 
 The Company may grant awards under other plans or programs. Such awards may be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in
settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5. 
 SECTION 15. PAYMENT OF
DIRECTOR’S FEES IN SECURITIES. 
 (a) Effective Date. No provision of this Section 15 shall be effective unless and until
the Board has determined to implement such provision. 
 (b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside
Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares
and Stock Units shall be issued under the Plan. An election under this Section 15 shall be filed with the Company on the prescribed form. 
  

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 (c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted
Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock
Units shall also be determined by the Board. 
 SECTION 16. LEGAL AND REGULATORY REQUIREMENTS. 
 Shares shall not be issued under the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of
law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder, state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may
then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company determines is necessary or advisable. 
 SECTION 17. WITHHOLDING TAXES. 
 (a) General. To the extent required by applicable federal, state, local or foreign
law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be required to issue any Shares or
make any cash payment under the Plan until such obligations are satisfied. 
 (b) Share Withholding. The Committee may permit a
Participant to satisfy all or part of his or her withholding or income tax obligations by having the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that
he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in
excess of the number necessary to satisfy the legally required minimum tax withholding. 
 SECTION 18. NO EMPLOYMENT RIGHTS. 
 No provision of the Plan, nor any right or Option granted under the Plan, shall be construed to give any person any right to become, to be treated as, or
to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice. 
 SECTION 19. DURATION AND AMENDMENTS. 
 (a) Term of the Plan. The Plan, as set forth herein,
shall terminate automatically ten (10) years after its adoption by the Board. The Plan may be terminated on any earlier date pursuant to Subsection (b) below. 
 (b) Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under any Award granted before amendment of the Plan shall not be
materially impaired by such amendment, except with consent of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the extent required by applicable laws, regulations or rules;
provided, however, that an amendment of the Plan to increase the maximum aggregate number of Shares that may be subject to Awards granted under the Plan shall require the approval of the Company’s shareholders. 
  

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 (c) Effect of Termination. No Awards shall be granted under the Plan after the termination
thereof. The termination of the Plan shall not affect any Award previously granted under the Plan. 
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left blank] 
  

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 SECTION 20. EXECUTION. 
 To record the amendment and restatement of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the same. 
  

			
	CALIFORNIA MICRO DEVICES CORPORATION
		
	By	 	/s/ Robert V. Dickinson
		
	Name 	 	Robert V. Dickinson
		
	Title	 	President and CEO

  

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