Document:

2004 Equity Incentive Plan

 Exhibit 10.1 
 ARROWHEAD RESEARCH CORPORATION 
 2004 Equity Incentive
Plan 
 as amended February 23, 2006 
 Arrowhead Research Corporation hereby adopts this 2004 Equity Incentive Plan, as amended as of February 23, 2006, as follows: 
 SECTION 1 
 BACKGROUND, PURPOSE AND DURATION 
 1.1 Background and Effective Date. The Plan provides for the granting of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights (or SARs), Restricted Stock, Performance Units, and Performance Shares. The Plan is adopted and effective as of December 1, 2004, subject to approval by the stockholders of the Company within twelve (12) months. The
Company will seek stockholder approval in the manner and to the degree required under Applicable Laws. Awards may be granted prior to the receipt of stockholder approval, but such grants shall be null and void if such approval is not in fact
received within twelve (12) months. 
 1.2 Purpose of the Plan. The purpose of the Plan is to promote the success, and
enhance the value, of the Company by aligning the interests of Participants with those of the Company’s shareholders, and by providing Participants with an incentive for outstanding performance. The Plan is further intended to provide
flexibility to the Company in its ability to motivate, attract, and retain the services of outstanding individuals, upon whose judgment, interest, and special effort the success of the Company largely is dependent. 
 1.3 Duration of the Plan. The Plan shall commence on the date specified in Section 1.1 and subject to SECTION 12 (concerning the
Board’s right to amend or terminate the Plan), shall remain in effect thereafter. However, without further stockholder approval, no Incentive Stock Option may be granted under the Plan on or after January 20, 2004. 
 1.4 Termination of Old Plans. The Company’s existing stock option plan (the 2000 Stock Option Plan) shall terminate effective upon
stockholder approval of this Plan, and no further grants of awards shall be made under that plan after the date of such approval. The termination of that plan will not affect the rights of holders of options previously granted and outstanding under
that plan. 
 SECTION 2 
 DEFINITIONS 
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by
the context: 
 2.1 “1934 Act” means the Securities Exchange Act of 1934, as amended. Reference to a specific section
of the Exchange Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding
such section or regulation. 
 2.2 “Affiliate” means any corporation or any other entity (including, but not limited
to, partnerships and joint ventures) controlling, controlled by, or under common control with the Company. 
 2.3 “Affiliated
SAR” means an SAR that is granted in connection with a related Option, and which automatically will be deemed to be exercised at the same time that the related Option is exercised. 
 2.4 “Applicable Laws” means the requirements relating to the administration of equity plans under U. S. state corporate laws,
U.S. federal and state securities laws, the Code, any stock exchange or 

  

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quotation system on which the Shares are is listed or quoted and the applicable laws of any foreign country or jurisdiction where Awards are, or will be,
granted under the Plan. 
 2.5 “Award” means, individually or collectively, a grant under the Plan of Nonqualified
Stock Options, Incentive Stock Options, SARs, Restricted Stock, Performance Units, or Performance Shares. 
 2.6 “Award
Agreement” means the written agreement setting forth the terms and provisions applicable to each Award granted under the Plan. 
 2.7 “Board” or “Board of Directors” means the Board of Directors of the Company. 
 2.8
“Change in Control” is defined in Section 15.4. 
 2.9 “Code” means the Internal Revenue
Code of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or
regulation amending, supplementing or superseding such section or regulation. 
 2.10 “Committee” means the committee
appointed by the Board to administer the Plan pursuant to Section 3.1. 
 2.11 “Company” means Arrowhead
Research Corporation, a Delaware corporation, or any successor thereto. 
 2.12 “Consultant” means an individual who
provides significant services to the Company and/or an Affiliate, including a Director who is not an Employee. 
 2.13
“Director” means any individual who is a member of the Board of Directors of the Company. 
 2.14
“Disability” means a permanent and total disability within the meaning of Code Section 22(e)(3). 
 2.15
“Employee” means an employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.16 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. Reference to a specific section of ERISA
shall include such section, any valid regulation promulgated thereunder, and any comparable provision of any future legislation amending, supplementing or superseding such section. 
 2.17 “Fair Market Value” means as of any date, the value of a Share determined as follows: 
 (a) If the Shares are listed on any established stock exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such Share (or the closing bid, if no sales were reported) as quoted on such exchange or system on the day of, or
the last market trading day prior to, the day of determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable; 
 (b) If the Shares are regularly quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value of the
Share shall be the mean between the high bid and low asked prices for the Shares on the day of, or the last market trading day prior to, the day of 

  

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determination, as reported in The Wall Street Journal or such other source as the Committee deems reliable; or 
 (c) In the absence of an established market for the Shares, the Fair Market Value shall be determined in good faith by the Committee.

 2.18 “Freestanding SAR” means a SAR that is granted independently of any Option. 
 2.19 “Incentive Stock Option” or “ISO” means an option to purchase Shares, which is designated as an Incentive Stock
Option and is intended to meet the requirements of Section 422 of the Code. 
 2.20 “Nonqualified Stock Option”
means an option to purchase Shares which is not intended to be an Incentive Stock Option. 
 2.21 “Option” means an
Incentive Stock Option or a Nonqualified Stock Option. 
 2.22 “Option Price” means the price at which a Share may be
purchased pursuant to an Option. 
 2.23 “Participant” means an Employee, Consultant or Director who has an
outstanding Award. 
 2.24 “Performance Share” means an Award granted to an Employee pursuant to SECTION 8 having an
initial value equal to the Fair Market Value of a Share on the date of grant. 
 2.25 “Performance Unit” means an
Award granted to an Employee pursuant to SECTION 8 having an initial value (other than the Fair Market Value of a Share) that is established by the Committee at the time of grant. 
 2.26 “Period of Restriction” means the period during which the transfer of Shares of Restricted Stock are subject to
restrictions. 
 2.27 “Plan” means the Arrowhead Research Corporation 2004 Equity Incentive Plan, as set forth in
this instrument and as hereafter amended from time to time. 
 2.28 “Restricted Stock” means an Award granted to a
Participant pursuant to SECTION 7. 
 2.29 “Retirement” means, in the case of an Employee, a Termination of
Employment by reason of the Employee’s retirement at or after age 62. 
 2.30 “Rule 16b-3” means Rule 16b-3
promulgated under the 1934 Act, and any future regulation amending, supplementing or superseding such regulation. 
 2.31 “Section
16 Person” means a person who, with respect to the Shares, is subject to Section 16 of the 1934 Act. 
 2.32
“Shares” means the shares of common stock, $0.001 par value, of the Company. 
 2.33 “Stock Appreciation
Right” or “SAR” means an Award, granted alone or in connection with a related Option, that pursuant to the terms of SECTION 7 is designated as an SAR. 
 2.34 “Subsidiary” means any “subsidiary corporation” (other than the Company) as defined in Code Section 424(f).

  

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 2.35 “Tandem SAR” means an SAR that is granted in connection with a related
Option, the exercise of which shall require forfeiture of the right to purchase an equal number of Shares under the related Option (and when a Share is purchased under the Option, the SAR shall be canceled to the same extent). 
 2.36 “Termination of Employment” means a cessation of the employee-employer or director or other service arrangement relationship
between an Employee, Consultant or Director and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the disaffiliation of an Affiliate, but
excluding any such termination where there is a simultaneous reemployment or re-engagement by the Company or an Affiliate. 
 SECTION 3

 ADMINISTRATION 
 3.1 The
Committee. The Plan shall be administered by a committee of the Board that meets the requirements of this Section 3.1 (hereinafter referred to as “the Committee”). The Committee shall consist of not less than two
(2) Directors. The members of the Committee shall be appointed from time to time by, and shall serve at the pleasure of, the Board of Directors. The Committee shall be comprised solely of Directors who are both “outside directors”
under Rule 16b-3 and “independent directors” under the requirements of any national securities exchange or system upon which the Shares are then listed and/or traded. 
 3.2 Authority of the Committee. The Committee shall have all powers and discretion necessary or appropriate to administer the Plan and to
control its operation, including, but not limited to, the power (a) to determine which Employees, Consultants and Directors shall be granted Awards, (b) to prescribe the terms and conditions of such Awards, (c) to interpret the Plan
and the Awards, (d) to adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (e) to interpret, amend or revoke any such rules. 
 The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or any part of its authority and powers under
the Plan to one or more directors and/or officers of the Company; provided, however, that the Committee may not delegate its authority and powers with respect to Section 16 Persons. 
 3.3 Decisions Binding. All determinations and decisions made by the Committee shall be final, conclusive, and binding on all persons, and
shall be given the maximum deference permitted by law. 
 SECTION 4 
 SHARES SUBJECT TO THE PLAN 
 4.1 Shares Available. 
 4.1.1 Maximum Shares Available under Plan. The aggregate number of Shares available for issuance under the Plan may not
exceed five million (5,000,000) Shares. Such shares may be authorized but unissued shares or treasury shares. 
 4.1.2
Adjustments. All Share numbers in this Section 4.1 are subject to adjustment as provided in SECTION 15. 
 4.2
Number of Shares. The following rules will apply for purposes of the determination of the number of Shares available for grant under the Plan: 
 (a) While an Award is outstanding, it shall be counted against the authorized pool of Shares, regardless of its vested status. 

 

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 (b) The grant of an Option or Restricted Stock shall reduce the Shares available for
grant under the Plan by the number of Shares subject to such Award. 
 (c) The grant of a Tandem SAR shall reduce the number
of Shares available for grant by the number of Shares subject to the related Option (i.e., there is no double counting of Options and their related Tandem SARs); provided, however, that, upon the exercise of such Tandem SAR, the
authorized Share pool shall be credited with the appropriate number of Shares representing the number of shares reserved for such Tandem SAR less the number of Shares actually delivered upon exercise thereof or the number of Shares having a Fair
Market Value equal to the cash payment made upon such exercise. 
 (d) The grant of an Affiliated SAR shall reduce the number
of Shares available for grant by the number of Shares subject to the SAR, in addition to the number of Shares subject to the related Option; provided, however, that, upon the exercise of such Affiliated SAR, the authorized Share pool shall be
credited with the appropriate number of Shares representing the number of shares reserved for such Affiliated SAR less the number of Shares actually delivered upon exercise thereof or the number of Shares having a Fair Market Value equal to the cash
payment made upon such exercise. 
 (e) The grant of a Freestanding SAR shall reduce the number of Shares available for grant
by the number of Freestanding SARs granted; provided, however, that, upon the exercise of such Freestanding SAR, the authorized Share pool shall be credited with the appropriate number of Shares representing the number of shares
reserved for such Freestanding SAR less the number of Shares actually delivered upon exercise thereof or the number of Shares having a Fair Market Value equal to the cash payment made upon such exercise. 
 (f) The Committee shall in each case determine the appropriate number of Shares to deduct from the authorized pool in connection with the
grant of Performance Units and/or Performance Shares. 
 (g) To the extent that an Award is settled in cash rather than in
Shares, the authorized Share pool shall be credited with the appropriate number of Shares having a Fair Market Value equal to the cash settlement of the Award. 
 4.3 Lapsed Awards. If an Award is cancelled, terminates, expires, or lapses for any reason (with the exception of the termination of a Tandem SAR upon exercise of the related Option, or the termination
of a related Option upon exercise of the corresponding Tandem SAR), any Shares subject to such Award again shall be available to be the subject of an Award. 
 SECTION 5 
 STOCK OPTIONS 
 5.1 Grant of Options. Options may be granted to Employees, Consultants and Directors at any time and from time to time, as determined by the Committee in its sole discretion. The Committee, in its sole
discretion, shall determine the number of Shares subject to Options granted to each Participant. The Committee may grant ISOs, NQSOs, or a combination thereof. 
 5.2 Award Agreement. Each Option shall be evidenced by an Award Agreement that shall specify the Option Price, the expiration date of the Option, the number of Shares to which the Option pertains, any
conditions to exercise of the Option, and such other terms and conditions as the Committee, in its discretion, shall determine. The Award Agreement also shall specify whether the Option is intended to be an ISO or a NQSO. 
 5.3 Option Price. Subject to the provisions of this Section 5.3, the Option Price for each Option shall be determined by the Committee
in its sole discretion. 
  

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 5.3.1 Nonqualified Stock Options. In the case of a Nonqualified Stock
Option, the Option Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date that the Option is granted. 
 5.3.2 Incentive Stock Options. In the case of an Incentive Stock Option, the Option Price shall be not less than one hundred percent (100%) of the Fair Market Value of a Share on the date that the
Option is granted; provided, however, that if at the time that the Option is granted, the Employee (together with persons whose stock ownership is attributed to the Employee pursuant to Section 424(d) of the Code) owns stock
possessing more than 10% of the total combined voting power of all classes of stock of the Company or any of its Subsidiaries, the Option Price shall be not less than one hundred and ten percent (110%) of the Fair Market Value of a Share on the
date that the Option is granted. 
 5.3.3 Substitute Options. Notwithstanding the provisions of
Sections 5.3.1 and 5.3.2, in the event that the Company or an Affiliate consummates a transaction described in Section 424(a) of the Code (e.g., the acquisition of property or stock from an unrelated corporation), persons who become
Employees, Consultants or Directors on account of such transaction may be granted Options in substitution for options granted by their former employer. If such substitute Options are granted, the Committee, in its sole discretion, may determine that
such substitute Options shall have an exercise price less than 100% of the Fair Market Value of the Shares on the date the Option is granted. 
 5.4 Expiration of Options. Unless the applicable stock option agreement provides otherwise, each Option shall terminate upon the first to occur of the events listed in Section 5.4.1, subject to Section 5.4.2.

 5.4.1 Expiration Dates. 
 (a) The date for termination of the Option set forth in the Award Agreement; 
 (b) The expiration of ten years from the date the Option was granted, or 
 (c) The expiration of three months from the date of the Participant’s Termination of Employment for a reason other than the
Participant’s death, Disability or Retirement, or 
 (d) The expiration of twelve months from the date of the
Participant’s Termination of Employment by reason of Disability, or 
 (e) The expiration of twelve months from the date
of the Participant’s death, if such death occurs while the Participant is in the employ or service of the Company or an Affiliate. 
 5.4.2 Committee Discretion. The Committee shall provide, in the terms of each individual Option, when such Option expires and becomes unexercisable. After the Option is granted, the Committee, in its
sole discretion may extend the maximum term of such Option. The foregoing discretionary authority is subject to the limitations and restrictions on Incentive Stock Options set forth in Section 5.8. 
 5.5 Exercise of Options. Options granted under the Plan shall be exercisable at such times, and subject to such restrictions and
conditions, as the Committee shall determine in its sole discretion. After an Option is granted, the Committee, in its sole discretion, may accelerate the exercisability of the Option. 
 5.6 Payment. The Committee shall determine the acceptable form of consideration for exercising an Option, including the method of payment.
In the case of an Incentive Stock Option, the Committee shall determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: 
 (a) cash; 
  

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 (b) check; 
 (c) promissory note; 
 (d) other Shares which (i) in the case of Shares acquired upon exercise of an Option, have been owned by the Participant for more than six (6) months on the date of surrender, and (ii) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
 (e) consideration
received by the Company from a licensed broker under a cashless exercise program implemented by the Company to facilitate “same day” exercises and sales of Options; 
 (f) a reduction in the amount of any Company liability to the Participant, including any liability attributable to the Participant’s
participation in any Company-sponsored deferred compensation program or arrangement; 
 (g) any combination of the foregoing
methods of payment; or 
 (h) such other consideration and method of payment for the issuance of Shares to the extent
permitted by applicable laws. 
 5.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option, as it may deem advisable, including, but not limited to, restrictions related to Federal securities laws, the requirements of any national securities exchange or system upon which such Shares
are then listed and/or traded, and/or any blue sky or state securities laws. 
 5.8 Certain Additional Provisions for Incentive Stock
Options. 
 5.8.1 Exercisability. The aggregate Fair Market Value (determined at the time the Option is
granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by any Employee during any calendar year (under all plans of the Company and its Subsidiaries) shall not exceed $100,000. 
 5.8.2 Termination of Employment. No Incentive Stock Option may be exercised more than three months after the
Participant’s termination of employment for any reason other than Disability or death, unless (a) the Participant dies during such three-month period, and (b) the Award Agreement and/or the Committee permits later exercise. No
Incentive Stock Option may be exercised more than one year after the Participant’s termination of employment on account of Disability, unless (a) the Participant dies during such one-year period, and (b) the Award Agreement and/or the
Committee permit later exercise. 
 5.8.3 Company and Subsidiaries Only. Incentive Stock Options may be granted
only to persons who are Employees of the Company and/or a Subsidiary at the time of grant. 
 5.8.4 Expiration.
No Incentive Stock Option may be exercised after the expiration of 10 years from the date such Option was granted; provided, however, that if the Option is granted to an Employee who, together with persons whose stock ownership is
attributed to the Employee pursuant to Section 424(d) of the Code, owns stock possessing more than 10% of the total combined voting power of all classes of the stock of the Company or any of its Subsidiaries, the Option may not be exercised
after the expiration of 5 years from the date that it was granted. 
  

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 5.9 Nontransferability of Options. No Option granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as provided under SECTION 9. All Options granted to a Participant under the Plan shall be exercisable during his or
her lifetime only by such Participant. 
 SECTION 6 
 STOCK APPRECIATION RIGHTS 
 6.1 Grant of SARs. An SAR may be granted to an Employee,
Consultant or Director at any time and from time to time as determined by the Committee, in its sole discretion. The Committee may grant Affiliated SARs, Freestanding SARs, Tandem SARs, or any combination thereof. The Committee shall have complete
discretion to determine the number of SARs granted to any Participant, and consistent with the provisions of the Plan, the terms and conditions pertaining to such SARs. However, the grant price of a Freestanding SAR shall be at least equal to the
Fair Market Value of a Share on the date of grant. The grant price of Tandem or Affiliated SARs shall equal the Option Price of the related Option. 
 6.2 Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares subject to the related Option upon the surrender of the right to exercise the equivalent portion of the related Option. A Tandem SAR may
be exercised only with respect to the Shares for which its related Option is then exercisable. 
 6.2.1 ISOs.
Notwithstanding any contrary provision of the Plan, with respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR shall expire no later than the expiration of the underlying ISO; (ii) the value of the payout with
respect to the Tandem SAR shall be for no more than one hundred percent (100%) of the difference between the Option Price of the underlying ISO and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is
exercised; and (iii) the Tandem SAR shall be exercisable only when the Fair Market Value of the Shares subject to the ISO exceeds the Option Price of the ISO. 
 6.3 Exercise of Affiliated SARs. An Affiliated SAR shall be deemed to be exercised upon the exercise of the related Option. The deemed exercise of an Affiliated SAR shall not necessitate a reduction in
the number of Shares subject to the related Option. 
 6.4 Exercise of Freestanding SARs. Freestanding SARs shall be
exercisable on such terms and conditions as the Committee, in its sole discretion, shall determine. 
 6.5 SAR Agreement. Each
SAR shall be evidenced by an Award Agreement that shall specify the grant price, the term of the SAR, the conditions of exercise, and such other terms and conditions as the Committee, in its sole discretion, shall determine. 
 6.6 Expiration of SARs. An SAR granted under the Plan shall expire upon the date determined by the Committee, in its sole discretion, and
set forth in the Award Agreement. Notwithstanding the foregoing, the rules of Section 5.4 (pertaining to Options) also shall apply to SARs. 
 6.7 Payment of SAR Amount. Upon exercise of an SAR, a Participant shall be entitled to receive payment from the Company in an amount determined by multiplying: 
 (a) The difference between the Fair Market Value of a Share on the date of exercise over the grant price; times 
 (b) The number of Shares with respect to which the SAR is exercised. 
 At the discretion of the Committee, the payment upon SAR exercise may be in cash, in Shares of equivalent value, or in some combination
thereof. 
  

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 6.8 Nontransferability of SARs. No SAR granted under the Plan may be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as permitted under SECTION 9. An SAR granted to a Participant shall be exercisable during the Participant’s lifetime only by
such Participant. 
 SECTION 7 
 RESTRICTED STOCK 
 7.1 Grant of Restricted Stock. Subject to the terms and provisions of the Plan, the Committee, at
any time and from time to time, may grant Shares of Restricted Stock to Employees, Consultants or Directors in such amounts as the Committee, in its sole discretion, shall determine. 
 7.2 Restricted Stock Agreement. Each Award of Restricted Stock shall be evidenced by an Award Agreement that shall specify the Period of
Restriction, the number of Shares granted, and such other terms and conditions as the Committee, in its sole discretion, shall determine. Unless the Committee determines otherwise, shares of Restricted Stock shall be held by the Company as escrow
agent until the restrictions on such Shares have lapsed. 
 7.3 Transferability. Except as provided in this SECTION 7, Shares
of Restricted Stock may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated until the end of the applicable Period of Restriction. All rights with respect to the Restricted Stock granted to a Participant under the
Plan shall be available during his or her lifetime only to such Participant. 
 7.4 Other Restrictions. The Committee, in its
sole discretion, may impose such other restrictions on any Shares of Restricted Stock as it may deem advisable including, without limitation, restrictions based upon the achievement of specific performance goals (Company-wide, divisional, and/or
individual), and/or restrictions under applicable Federal or state securities laws; and may legend the certificates representing Restricted Stock to give appropriate notice of such restrictions. For example, the Committee may determine that some or
all certificates representing Shares of Restricted Stock shall bear the following legend: 
 “The sale or other transfer of the shares of
stock represented by this certificate, whether voluntary, involuntary, or by operation of law, is subject to certain restrictions on transfer as set forth in the Arrowhead Research Corporation 2004 Equity Incentive Plan, and in a Restricted Stock
Agreement. A copy of the Plan and such Restricted Stock Agreement may be obtained from the Secretary of Arrowhead Research Corporation.” 
 7.5 Removal of Restrictions. Except as otherwise provided in this SECTION 7, Shares of Restricted Stock covered by each Restricted Stock grant made under the Plan shall be released from escrow as soon as practicable after the
last day of the Period of Restriction. The Committee, in its discretion, may accelerate the time at which any restrictions shall lapse, and/or remove any restrictions. After the restrictions have lapsed, the Participant shall be entitled to have any
legend or legends under Section 7.4 removed from his or her Share certificate, and the Shares shall be freely transferable by the Participant. 
 7.6 Voting Rights. During the Period of Restriction, Participants holding Shares of Restricted Stock granted hereunder may exercise full voting rights with respect to those Shares, unless the Committee determines otherwise.

 7.7 Dividends and Other Distributions. During the Period of Restriction, Participants holding Shares of Restricted Stock
shall be entitled to receive all dividends and other distributions paid with respect to such Shares, unless otherwise provided in the Award Agreement. If any such dividends or distributions are paid in Shares, the Shares shall be subject to the same
restrictions on transferability and forfeitability as the Shares of Restricted Stock with respect to which they were paid. 
  

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 7.8 Return of Restricted Stock to Company. Subject to the applicable Award Agreement and
Section 7.5, upon the earlier of (a) the Participant’s Termination of Employment, or (b) the date set forth in the Award Agreement, the Restricted Stock for which restrictions have not lapsed shall revert to the Company and,
subject to Section 4.3, again shall become available for grant under the Plan. 
 7.9 Repurchase Option. Unless the
Committee determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the Participant’s service with the Company for any reason
(including death or Disability). The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original price paid by the Participant and may be paid by cancellation of any indebtedness of the Participant
to the Company. The repurchase option shall lapse at a rate determined by the Committee. 
 SECTION 8 
 PERFORMANCE UNITS AND PERFORMANCE SHARES 
 8.1
Grant of Performance Units/Shares. Performance Units and Performance Shares may be granted to Employees, Consultants or Directors at any time and from time to time, as shall be determined by the Committee, in its sole discretion. The
Committee shall have complete discretion in determining the number of Performance Units and Performance Shares granted to each Participant. 
 8.2 Value of Performance Units/Shares. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant. Each Performance Share shall have an initial value equal to the Fair Market
Value of a Share on the date of grant. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the number and/or value of Performance Units/Shares that will be paid out to the
Participants. The time period during which the performance goals must be met shall be called the “Performance Period”. 
 8.3 Earning of Performance Units/Shares. After the applicable Performance Period has ended, the holder of Performance Units/Shares shall be entitled to receive a payout of the number of Performance Units/Shares earned by the
Participant over the Performance Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved. After the grant of a Performance Unit/Share, the Committee, in its sole discretion, may adjust
and/or waive the achievement of any performance goals for such Performance Unit/Share. 
 8.4 Form and Timing of Payment of Performance
Units/Shares. Payment of earned Performance Units/Shares shall be made as soon as practicable after the expiration of the applicable Performance Period. The Committee, in its sole discretion, may pay earned Performance Units/Shares in the
form of cash, in Shares (which have an aggregate Fair Market Value equal to the value of the earned Performance Units/Shares at the close of the applicable Performance Period) or in a combination thereof. 
 8.5 Cancellation of Performance Units/Shares. Subject to the applicable Award Agreement, upon the earlier of (a) the
Participant’s Termination of Employment, or (b) the date set forth in the Award Agreement, all remaining Performance Units/Shares shall be forfeited by the Participant to the Company, and subject to Section 4.3, the Shares subject
thereto shall again be available for grant under the Plan. 
 8.6 Nontransferability. Performance Units/Shares may not be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will, the laws of descent and distribution, or as permitted under SECTION 9. A Participant’s rights under the Plan shall be exercisable during the
Participant’s lifetime only by the Participant or the Participant’s legal representative. 
  

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 SECTION 9 
 BENEFICIARY DESIGNATION 
 If permitted by the Committee, a Participant may name a beneficiary or
beneficiaries to whom any unpaid vested Award shall be paid in event of the Participant’s death. Each such designation shall revoke all prior designations by the same Participant and shall be effective only if given in a form and manner
acceptable to the Committee. In the absence of any such designation, benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate and, subject to the terms of the Plan, any unexercised vested Award may be
exercised by the Committee or executor of the Participant’s estate. 
 SECTION 10 
 DEFERRALS 
 The Committee, in its sole discretion, may permit a Participant to defer
receipt of the payment of cash or the delivery of Shares that would otherwise be due to such Participant under an Award. Any such deferral elections shall be subject to such rules and procedures as shall be determined by the Committee in its sole
discretion. 
 SECTION 11 
 RIGHTS
OF EMPLOYEES AND CONSULTANTS 
 11.1 No Effect on Employment or Service. Nothing in the Plan shall interfere with or limit in
any way the right of the Company to terminate any Participant’s employment or service at any time, with or without cause. 
 11.2
Participation. No Employee, Consultant or Director shall have the right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award. 
 SECTION 12 
 AMENDMENT, SUSPENSION, OR
TERMINATION 
 The Board, in its sole discretion, may alter, amend or terminate the Plan, or any part thereof, at any time and for any
reason. However, as required by Applicable Laws, no alteration or amendment shall be effective without further stockholder approval. Neither the amendment, suspension, nor termination of the Plan shall, without the consent of the Participant, alter
or impair any rights or obligations under any Award theretofore granted. No Award may be granted during any period of suspension nor after termination of the Plan. 
 SECTION 13 
 TAX WITHHOLDING 
 13.1 Withholding Requirements. Prior to the delivery of any Shares or cash pursuant to an Award, the Company shall have the power and the right to deduct or withhold, or require a Participant to remit to
the Company, an amount sufficient to satisfy Federal, state, and local taxes required to be withheld with respect to such Award. 
 13.2
Shares Withholding. The Committee, in its sole discretion and pursuant to such procedures as it may specify from time to time, may permit a Participant to satisfy the minimum statutory tax withholding obligation, in whole or in part,
by delivering to the Company Shares already owned for more than six (6) months having a value equal to the amount required to be withheld. The value of the Shares to be delivered will be based on their Fair Market Value on the date of delivery.

  

 11 

 SECTION 14 
 INDEMNIFICATION 
 Each person who is or shall have been a member of the Committee, or of the Board, shall be
indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, notion, suit, or proceeding to which he
or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any Award Agreement and against and from any and all amounts paid by him or her in settlement thereof, with the
Company’s approval, or paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give
the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
 SECTION 15 
 ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION, MERGER OR ASSET SALE 
 15.1 Changes in
Capitalization; No Award Repricing. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for issuance under the Plan
but as to which no Awards have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Award, as well as the price per Share covered by each such outstanding Award, shall be proportionately adjusted for any
increase or decrease in the number of issued Shares resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or any other increase or decrease in the number of issued Shares effected without
receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be
made by the Board, whose determination in that respect shall be final, binding and conclusive. 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 reason thereof shall be made with respect to, the number or price of Shares subject to an Award. Further, except for the adjustments provided herein, no Award may be amended to reduce its initial exercise
price, and no Award may be cancelled and replaced with an Award with a lower price. 
 15.2 Dissolution or Liquidation. In the
event of the proposed dissolution or liquidation of the Company, the Committee shall notify each Participant as soon as practicable prior to the effective date of such proposed transaction. The Committee in its discretion may provide for a
Participant to have the right to exercise his or her Award until ten (10) days prior to such transaction as to all of the Shares covered thereby, including Shares as to which the Award would not otherwise be exercisable. In addition, the
Committee may provide that any Company repurchase option applicable to any Shares purchased upon exercise of an Award shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner
contemplated. To the extent it has not been previously exercised, an Award will terminate immediately prior to the consummation of such proposed action. 
 15.3 Merger or Asset Sale. In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the assets of the Company, each outstanding Award shall be assumed
or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the Award, the Participant shall fully
vest in and have the right to exercise the Award as to all of the Shares as to which it would not otherwise be vested or exercisable. If an Award becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or
sale of assets, the Committee shall notify the Participant in writing or electronically that the Award shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Award shall terminate upon the
expiration of such period. For the purposes of this paragraph, the Award shall be 

  

 12 

 
considered assumed if, following the merger or sale of assets, the option or right confers the right to purchase or receive, for each Share subject to the
Award immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger or sale of assets by holders of Shares for each Share held on the effective date of the
transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such consideration received in the merger or sale
of assets is not solely common stock of the successor corporation or its Parent, the Committee may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award, for each Share subject to
the Award, to be solely common stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Shares in the merger or sale of assets. 
 15.4 Change in Control. In the event of a Change of Control (as defined below), except as otherwise determined by the Board, the
Participant shall fully vest in and have the right to exercise the Awards as to all of the Shares, including Shares as to which it would not otherwise be vested or exercisable. If an Award becomes fully vested and exercisable as the result of a
Change of Control, the Committee shall notify the Participant in writing or electronically prior to the Change of Control that the Award shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and
the Award shall terminate upon the expiration of such period. For purposes of this Agreement, a “Change of Control” means the happening of any of the following events: 
 (a) When any “person,” as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, a
Subsidiary or a Company employee benefit plan, including any trustee of such plan acting as trustee) 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 fifty percent (50%) or more of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of directors; or 
 (b) The stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or
consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than
fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approve an agreement for
the sale or disposition by the Company of all or substantially all the Company’s assets; or 
 (c) A change in the
composition of the Board of Directors of the Company, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean directors who either (A) are directors of the Company
as of the date the Plan is approved by the stockholders, or (B) are elected, or nominated for election, to the Board of Directors of the Company with the affirmative votes of at least a majority of the Incumbent Directors at the time of such
election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company). 
 SECTION 16 
 CONDITIONS UPON ISSUANCE OF SHARES

 16.1 Legal Compliance. Shares shall not be issued pursuant to the exercise of an Award unless the exercise of such Award and
the issuance and delivery of Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
 16.2 Investment Representations. As a condition to the exercise of an Award, the Company may require the person exercising such Award to
represent and warrant at the time of any such exercise 

  

 13 

 
that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for
the Company, such a representation is required. 
 SECTION 17 
 INABILITY TO OBTAIN AUTHORITY 
 The inability of the Company to obtain authority from any regulatory body
having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares
as to which such requisite authority shall not have been obtained. 
 SECTION 18 
 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. 
 SECTION 19

 LEGAL CONSTRUCTION 
 19.1
Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
 19.2 Severability. In the event any provision of the Plan shall be held illegal or invalid for any reason, such illegality or invalidity
shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 19.3 Requirements of Law. The granting of Awards and the issuance of Shares under the Plan shall be subject to all Applicable Laws. 
 19.4 Securities Law Compliance. With respect to Section 16 Persons, transactions under this Plan are intended to comply with all
applicable conditions of Rule 16b-3. To the extent any provision of the Plan, Award Agreement or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee.

 19.5 Governing Law. The Plan and all Award Agreements shall be construed in accordance with and governed by the laws of the
State of Delaware. 
 19.6 Captions. Captions are provided herein for convenience only, and shall not serve as a basis for
interpretation or construction of the Plan. 
  

 14Form of Notice of Stock Option Grant and Employee Stock Option Agreement

 Exhibit 10.109 
 NOTICE OF STOCK OPTION GRANT 
 under the 
 1987 MICROSEMI CORPORATION STOCK PLAN 
 You have been granted the following
Option to purchase Common Stock, par value $.20 per share, of Microsemi Corporation (the “Company”): 
  

			
	Name of Employee:	  	«First_Name» «Last_Name»
		
	 Total Number of Shares
 Subject to this Option:
	  	«M    Shares»
		
	Type of Option:	  	ISO for      Shares and NQSO for        Shares
		
	Exercise Price Per Share:	  	«Price_per_Share»
		
	Date of Grant:	  	«Grant_Date»

  

			
	 Dates First
 Exercisable:
	  	Until the first anniversary of the Date of Grant, this Option may not be exercised with respect to any of the Shares covered hereby.
		
		  	During the second year, this Option may be exercised as to not more than one-third of the total number of Shares covered hereby.
		
		  	During the third year, this Option may be exercised as to an additional one-third, but cumulatively not more than two- thirds of the total number of Shares covered hereby.
		
		  	On or after the third anniversary of the Date of Grant, this Option may be exercised up to one hundred percent of the total number of Shares covered hereby.

 The Purchase Price, and the amount of tax withholding, shall be payable in any of the following
forms: (i) in United States dollars and paid in cash, by certified check or by bank draft; (ii) shares of the Company’s Common Stock already owned by Grantee for a period of at least six (6) months surrendered in good form for
transfer (such shares shall be valued at their Fair Market Value on the date the Option is exercised); (iii) by the Company withholding from Grantee out of the Company’s Stock otherwise deliverable upon exercise (such shares shall be
valued at their Fair Market Value on the date the Option is exercised); or (iv) provided that a public market for the Company’s Stock exists, through a “same day sale” commitment from Grantee and a broker-dealer that is a member
of the National Association of Securities Dealers (an “NASD Dealer”), whereby Grantee irrevocably elects to exercise his Option and to sell at least the necessary portion of the Company’s Stock so purchased and whereby the NASD Dealer
irrevocably commits upon receipt of such Company Stock to forward payment in United States dollars directly to the Company.
  

 1 

 By your signature and the signatures of the Company’s representatives below, you and the Company
agree that this Option is granted under and governed by the terms and conditions of the 1987 Microsemi Corporation Stock Plan, as amended, and the Stock Option Agreement, both of which are made a part of this document. 
  

					
	EMPLOYEE:	 	 	 	MICROSEMI CORPORATION
			
	 Signature:
	 	By:	 	
	 	 		 	 
	  	 		 	 
			
	 Name: «First_Name» «Last_Name»
	 	Name:	 	 James J. Peterson

			
		 	Title:	 	 President & CEO

			
		 	By:	 	
		 		 	 
			
		 	Name:	 	 David R. Sonksen

			
		 	Title:	 	 Executive Vice President, CFO,
 Treasurer and Secretary

  

 2 

 MICROSEMI CORPORATION 
 STOCK OPTION AGREEMENT 
 UNDER THE 1987 MICROSEMI CORPORATION STOCK
PLAN 
 THIS STOCK OPTION AGREEMENT (“Agreement”) is made pursuant to an option grant notice (the “Notice of Stock
Option Grant”) attached hereto and incorporated into this Agreement by this reference, made as of the Date of Grant as set forth in the Notice of Stock Option Grant, between Microsemi Corporation, a Delaware corporation (the
“Company”) and the option holder (“Employee”), whose identity is as set forth in the Notice of Stock Option Grant. (Capitalized terms in the Notice of Option Grant attached hereto shall have the meanings ascribed to them in this
Agreement). 
 WHEREAS, the Company desires to carry out the purposes of the 1987 Microsemi Corporation Stock Plan (the “Plan”) by
affording the Employee an opportunity to purchase shares of the Company’s Common Stock (the “Stock”); and 
 WHEREAS, if and
to the extent provided in the Notice of Option Grant, this Option is intended to qualify as an ISO (as defined below); 
 THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties have agreed, and do hereby agree as follows: 
 Section 1. Grant of Option 
 On the terms and conditions set forth in the Notice of Stock
Option Grant and this Agreement, the Company grants to the Employee on the Date of Grant a right and option to purchase, at the Exercise Price, all or any portion of the number of Shares set forth in the Notice of Stock Option Grant (the
“Option”) to the extent exercisable as set forth in the Notice of Option Grant. If and to the extent this Option is granted pursuant to a Notice of Stock Option Grant that indicates that the Option is an Incentive Stock Option
(“ISO”), then this Option is intended to qualify as an ISO under Section 422 of the Code but shall constitute a non-qualified stock option to the extent that it fails in whole or in part to qualify as an ISO for any reason.

 Section 2. Purchase Price  
 The Exercise Price represents not less than one hundred percent (100%) of the Fair Market Value per Share as of the Date of Grant; or in the event that the Employee owns more than 10% of the total combined voting
power of all classes of stock of the Company, the Exercise Price represents not less than 110% of the Fair Market Value per Share at Date of Grant. 
 Section 3. Medium of Payment  
 The Purchase Price shall be payable in any form of consideration described in the
Notice of Stock Option Grant, or in any combination thereof. The Company shall not be required to issue or permit transfer of Shares of the Company Stock upon exercise of a Stock Option until the Purchase Price is fully paid. 
 Section 4. Option Term  
 (a) No part of the Option shall be exercised after six (6) years from the Date of Grant, except in the event Employee owns at the Date of Grant more than 10% of the total combined voting power of the Company, in which case no part of
the Option may be exercised after five (5) years from the Date of Grant. 
  

 3 

 (b) If for any reason whatsoever Employee ceases to be employed by the Company or any of its
subsidiaries, or by a company issuing or assuming an Option in a transaction to which Code Section 424(a) applies, then (I) any unexercised options which shall on or before the date of termination have become exercisable shall terminate
three months after the date of termination, except that if Employee dies, or becomes disabled within the meaning of Section 22(e) (3) of the Code, before this option is terminated, the three-month period will become one year; and (II) any
unexercised options which shall on or before the date of termination have not become exercisable shall terminate on the date of termination. 
 (c) A leave of absence (not in excess of three months) approved in writing by the Committee shall not be deemed a termination of employment for the purposes of this Agreement. Any leave of absence in excess of three months shall be
equivalent to a termination of employment. 
 (d) Notwithstanding any provisions of paragraph (b) of this Section 4 to the contrary, if the
Option is exercise of the Option following termination during the applicable time period set forth in paragraph (b) or sale during such period of the Shares acquired on exercise would violate any of the provisions of the federal securities laws (or
any Company policy related thereto), the time period to exercise the Option shall be extended until the later of (i) forty-five (45) days after the date that the exercise of the Option or sale of the Shares acquired on exercise would not be a
violation of the federal securities laws (or a related Company policy), or (ii) the end of the applicable time period set forth in paragraph (b). 
 (e) Paragraph (d) of this Section 4 shall not apply, and shall be of no force or effect whatsoever, to any Option that at the date of termination is an ISO. 
 Section 5. Time of Exercise  
 The portion of this Option which has become exercisable may
be exercised at any time or from time to time (so long as this Option has not expired), as to any part or all hereof; provided that this Option may not be exercised for a fraction of a share of Stock. 
 Section 6. Method of Exercise  
 (a) Each exercise of this Option shall be by written notice of exercise delivered to the President of the Company at its principal place of business specifying the number of shares of Stock to be purchased and accompanied by payment in the
manner described in Section 3 hereof. The notice shall be in substantially the form of the Notice of Exercise of Stock Option attached hereto. 
 (b) As soon as practicable after any exercise of this Option in accordance with the foregoing provisions, the Company shall, without transfer or issue tax to the Employee, deliver certificate(s) to the Employee representing the Stock as to
which this Option has been exercised. 
 Section 7. Non-Transferability  
 This Option, and all rights and privileges hereunder, shall be non-assignable and non-transferable by the Employee, either voluntarily or by operation of
law (except by will or by operation of the laws of descent and distribution), shall not be pledged or hypothecated in any way, and shall be exercisable during the Employee’s lifetime only by the Employee. 
 Section 8. Shares Authorizations, Consents, Etc.  
 The Company, during the term of this Option, will keep available the number of shares of Stock required to satisfy this Option. The Company will seek to obtain from each regulatory commission or agency having
jurisdiction such authority as may be required to issue and sell Stock to satisfy the Option. Inability of the Company to obtain from any such regulatory commission or agency authority which counsel for the Company deems necessary for the lawful
issuance and sale of the Stock to satisfy the Option, shall relieve the Company from any liability for failure to issue and sell Stock to satisfy the Option until such time as that such authority is obtained. 
  

 4 

 Section 9. Investment Representations  
 Employee may be required, if it is deemed necessary in the opinion of counsel for the Company, to represent to the Company at the time of exercise that it
is his or her intention to acquire the Stock for his private investment only and not for resale or distribution to the public. The Company may stamp any certificates representing such Stock with a legend to the effect that such Stock has not been
registered under the Securities Act of 1933 and that the Stock may not be sold or transferred until so registered, or until an opinion of counsel satisfactory to the Company is received to the effect that such registration is not necessary. In the
event this Option and the Stock issued pursuant to this Option are registered under the Securities Act of 1933, as amended, then such investment representations and legend restrictions pursuant to Federal securities law shall be inapplicable with
respect to such Stock. Nothing herein shall be deemed to obligate the Company to so register any of such Stock. 
 Section 10.
Rights as Stockholder  
 The Employee shall have no rights as a stockholder with respect to any Stock covered by this Option until
the certificate(s) representing such Stock shall have been issued and delivered to him or her. No adjustment shall be made for dividends or other rights for which the record date is prior to the date such Stock certificate(s) are delivered to the
Employee. 
 Section 11. Adjustments for Changes in Capital Structure  
 (a) If the Shares of the Company’s stock are increased, decreased, changed into or exchanged for a different number or kind of shares pursuant to a
reorganization, recapitalization, reclassification, stock dividend, stock split or reverse stock split, an appropriate and proportionate adjustment shall be made changing the number or kind of Shares allocated to any unexercised portion of this
Option; except that if such change results from a stock dividend, such adjustment shall only be made if the aggregate of all stock dividends paid by the Company (including the one causing the change) during the one-year period ending at the close of
business on the day the change occurs exceeds 5% of the Shares of the Company’s Stock as it was constituted at the beginning of such one-year period (and any such adjustment shall equal all such stock dividends in the event that no adjustment
was made for prior stock dividends during such year because such stock dividends aggregated less than such 5%). All adjustments shall be made without changing the aggregate Purchase Price applicable to the unexercised portion of this Option, and
therefore a corresponding adjustment shall be made in the Exercise Price for each Share covered by this Option. 
 (b) Upon a reorganization,
merger or consolidation of the Company with one or more corporations as a result of which the Company is not the surviving corporation and results in a “Change of Control,” the Company shall use its best efforts but shall be under no
obligation, to cause the reorganization, merger or consolidation agreement to include a provision for the continuance of the Plan and for the assumption of this Option, or the substitution for this Option of new options covering the stock of a
successor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to number and kind of shares of Stock and Exercise Prices. 
 (c) Upon the dissolution or liquidation of the Company, or upon a sale of substantially all of its property, or a reorganization, merger or consolidation described above which does not include a provision for
continuance of the Plan or assumption of this Option (“Terminating Transactions” herein), the Plan shall terminate forthwith, 

  

 5 

 
and this Option shall terminate. Notwithstanding the preceding sentence, if as of immediately prior to the Terminating Transaction, Employee would be
entitled to exercise any unexercised portions of this Option, he or she shall have the right at such time immediately prior to the consummation of the Terminating Transaction as the Company shall designate, to exercise this Option to the full extent
provided herein. 
 (d) Subject to Section 11(e), in the event of a Change in Control, each Option shall, at the discretion of the
Committee either (i) be canceled in exchange for a payment in cash of an amount equal the number of Shares covered by the Option multiplied by the excess, if any, of the fair value, as determined in good faith by the Board of Directors, of the
price paid per share of Common Stock in the Change in Control transaction over the Exercise Price and/or (ii) vest and become fully exercisable regardless of the vesting and exercise schedule otherwise applicable to such Option. If the
reorganization, merger or consolidation agreement so provides, the Plan and this Option shall continue in the manner and under the terms so provided in such agreement. 
 (e) Notwithstanding Section 11(d), no cancellation, acceleration of exercisability, vesting, cash settlement or other payment provided in Section 11(d) shall occur with respect to an Option upon a Change in
Control if the Committee reasonably determines in good faith prior to the occurrence of the Change in Control that such Option shall be honored or assumed, or new rights substituted therefor (such honored, assumed or substituted award, an
“Alternative Award”), by the Employee’s new employer (or the parent or a subsidiary of such new employer) immediately following the Change in Control, provided that such Alternative Award (i) is based on stock which is or will
be, within sixty (60) days after the Change in Control, traded on an established securities market; (ii) provides Employee with rights and entitlements substantially equivalent to or better than the rights, terms and conditions applicable under
the Option; (iii) has substantially equivalent economic value to the Option (determined at the time of the Change in Control); and (iv) vests and becomes fully exercisable and transferable in the event that Employee’s employment is
involuntarily terminated or terminated by Employee following a material reduction in the Employee’s base salary or Employee’s incentive compensation opportunity or a material reduction in the Employee’s responsibilities, in any such
case without the Employee’s written consent. 
 Section 12. Continuation of Employment 
 Nothing herein shall confer upon Employee any right to continue in the employment of the Company or any of its subsidiaries, or interfere in any way with
the right of the Company or any such subsidiary (subject to the terms of any separate employment agreement to the contrary) at any time to terminate such employment or increase or decrease the compensation of Employee from the rate in existence on
the Date of Grant. 
 Section 13. Tax Treatment and Withholding Taxes  
 The aggregate Fair Market Value (determined with respect to each ISO at the time such ISO is granted) of the Shares with respect to which ISOs are
exercisable for the first time by an option holder during any calendar year (under this Plan or any other plan of the Company) shall not exceed $100,000. Any portion exceeding this annual limit shall be a nonqualified stock option. Also, in order to
qualify as an ISO, the underlying Stock may not be sold within one (1) year from the date the Option is exercised and also may not be sold within two (2) years from the date the Option was granted. Also, in order to qualify as an ISO, the Option
must be granted to an employee of the Company or a parent or subsidiary corporation as of the Date of Grant. Further requirements apply, including without limitation that the Option exercise period may not be extended beyond that originally provided
herein. If the Option does not qualify as an ISO, or is subsequently disqualified by a disposition of the shares, the Company has the right to require Employee or Employee’s permitted successor in interest to pay the Company the amount of any

  

 6 

 
taxes which the Company may be required to withhold with respect to such shares and the Employee shall be responsible for the additional taxes on the
Employee that result. The Company has the right to require Employee or Employee’s permitted successors in interest to pay the Company the amount of any taxes which the Company may be required to withhold with respect to Option Shares. The
Company expects that any difference between the Exercise Price of a nonqualified stock option and the Fair Market Value of a share of Common Stock on the day of exercise will be treated as compensation by the Internal Revenue Service and subject to
withholding taxes on the date of exercise. 
 The foregoing is not intended to provide tax advice. The Employee should consult his or her own
tax advisor(s). 
 Section 14. The Plan  
 The Option is subject to, and the Company and Employee agree to be bound by, all of the terms and conditions of the Plan as the same shall be amended from time to time in accordance with the terms thereof, but,
without the consent of Employee, no such amendment shall adversely affect the Employee’s rights under this Option. Pursuant to the Plan, the Committee has the final authority to construe and interpret the provisions of the Plan and this Option.
A copy of the Plan in its present form is available for inspection by the Employee during business hours at the principal office of the Company. 
 Section 15. Governing Law 
 This Agreement shall be subject to, and governed by, the laws of the State of
California irrespective of the fact that one or more of the parties now is, or may become, a resident of a different state. 
 Section 16. Construction  
 In the event any parts of this Agreement are found to be void, the remaining
provisions of this Agreement shall nevertheless be binding with the same effect as though the void parts were deleted. 
 Section 17. Binding Effect  
 This Agreement shall inure to the benefit of and be binding on the parties hereto
and their respective heirs, executors, administrators, successors and assigns. 
 Section 18. Definitions  
 “Agreement” shall mean this Stock Option Agreement. 
 “Change in Control” shall mean the occurrence of any of the following events: 
 (i)
Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) is or becomes the “beneficial owner” (as defined in Rule 13d 3 under said Act), directly or indirectly, of
securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company’s then outstanding voting securities; 
 (ii) Consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or the stockholders of the Company approving a plan of complete liquidation of the
Company 

  

 7 

 
or a consummation of the sale or disposition by the Company of all or substantially all of the Company’s assets. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 “Date of Grant” shall mean the date specified in the Notice of Stock Option Grant, or, if later, the later of (i) the date on which the Board of Directors or a committee thereof resolved to grant this
Option or (ii) the first day of the Employee’s service as a common-law employee of the Company, a parent or a subsidiary. 
 “Exercise Price” shall mean the amount for which one Option Share may be purchased upon exercise of this Option, as specified in the Notice of Stock Option Grant. 
 “Notice of Stock Option Grant” shall mean the document so entitled to which this Agreement is attached. 
 “Employee” shall mean the individual named in the Notice of Stock Option Grant. 
 “Fair Market Value” shall mean the fair market value of a Share, as determined by the Committee in good faith. Such determination shall be
conclusive and binding on all persons. 
 “ISO” shall mean an incentive stock option under Section 422 of the Code.

 “NQSO” or “nonqualified stock option” shall mean an Option under the Plan that does not qualify as an incentive stock
under Section 422 of the Code. 
 “Option Shares” shall mean the Shares acquired upon exercise of the Option. 
 “Purchase Price” shall mean the Exercise Price multiplied by the number of Shares with respect to which this Option is being exercised.

 “Share” shall mean one share of Stock, as adjusted in accordance with Section 11 (if applicable). 
  

 8 

 Employee Name & Address: 
 Date: 
 Ms. Debbie Weber 
 MICROSEMI CORPORATION 
 2381 Morse Avenue 
 Irvine, California 92614 
  

	RE:	STANDARD EXERCISE OF EMPLOYEE STOCK OPTION 

 Dear Ms. Weber: 
 Under the terms of the Microsemi Corporation Incentive Stock Option Agreement dated
                                , I hereby present notice to
exercise                     shares of the Company’s common stock at a price of
$                     per share. 
 I am enclosing
a check in the amount of $                     to cover full payment price of the shares to be purchased. 
  

	***	 I hereby agree to notify Microsemi Corporation of the sale amount, net of commission, within five (5) days after selling these shares, (for W-2 reporting purposes
at the end of the calendar year.) 

  

	
	 Sincerely,

	
	   
	 (Employee’s Signature)

	
	  
	 (Employee’s Social Security Number)

	
	ACCEPTED BY:
	
	   
	 Debbie Weber

	 MICROSEMI CORPORATION

 Microsemi Corporation 
 CASHLESS STOCK OPTION EXERCISE FORM AND INSTRUCTIONS 
 NOTE: Copy this form and complete one form for each Grant
Date being exercised. 
  

							
	 Client’s Name: 
	  	  	    	Date: 	  	  
				
	 Account Number: 
	  	  	    	SS #: 	  	  

  

					
	 Number of Shares to be Exercised
	  	  	  	 Officers/Directors subject to Rule 144 ONLY. Please read and initial:

			
	 Exercise Price
	  	$                                      
                                	  	                     I certify that I have mailed the necessary 144 papers
(copy attached) to the SEC prior to the submission of this exercise form. I have also faxed to the Broker a signed Seller’s Rep. Letter and copy of the 144 form. Both forms are required to sell MSCC shares. Contact the Broker for help with
these forms.
	 Date of Grant
	  	  	  
	 Expiration Date (10 years after Grant Date) 
	  	  	  
	 Total Exercise Cost (Shares x Price)
	  	$                                      
                              	  

 Execution Instructions to
                                     (the “Broker”)
(One Instruction line MUST be selected) 
  

					
	  ̈
	  	1.	  	Sell all shares upon exercise and approval of this application. You hereby grant the Broker time and price discretion in regards to the sale of your shares which is used to potentially maximize
execution price. Shares sold may be combined in the interest of fairness to employees submitting exercise forms on the same day and also, to help maximize the execution price for sellers on the same day. You will not be notified or contacted prior
to the sale of shares after receipt of this executed form by the Broker.
	  ̈
	  	2.	  	Sell ________ shares upon approval and receipt of this form. (Conditions and order handling as stated in “Selection One” apply). This option allows selling of shares necessary to at
least equal your exercise cost and thereby avoiding any margin balance in your account. NOTE: Holding Microsemi stock in your account on margin is not allowed per Microsemi policy). Any remaining shares will be held in your account at the Broker.
Additional orders to sell the balance can be sent to the Broker. You are welcome to leave these fully paid for shares in your account without any time limit. Future sales of these shares may be restricted during Microsemi “black-out”
periods, as promulgated by Microsemi’s legal counsel, and which are subject to modification at any time.
	  ̈
	  	3.	  	I wish to place specific execution instructions on all of my shares and will contact the Broker promptly after submitting this form to Microsemi’s corporate office for processing. I
understand that I need to sell enough shares on the first day this approved form is received by the Broker to cover the exercise cost of my options.

 Typically, forms sent to Microsemi in early AM will usually be processed on the same day. However, it is the
policy of Microsemi that processing of option exercise forms may take up to 72 hours to complete. 
  

					
			
	   	 		 	   
			
	Client Signature I acknowledge and understand the instructions I have issued to the Broker and Microsemi on this form. I hereby authorize the Broker to provide relevant
information to Microsemi for W-2 reporting purposes (i.e., date, price & number of shares). I also authorize the Broker and its clearing agent, to journal the cost of the option exercise to the Microsemi Corporate account, held by the
Broker or the clearing agent.	 		 	DATE

 SECTION BELOW TO BE COMPLETED BY MICROSEMI REPRESENTATIVE 
 Registration Instructions: All shares must be free of restrictions and delivered within fifteen (15) business days (NYSE Par. M, Sec 5) 
                      The Broker or its Clearing Agent should
send a DWAC request for the shares on:                     . 

                      Shares will be registered in the name of:
                                        
                                         .

 In connection with the above notice of exercise, we hereby agree to arrange for delivery of the shares specified above, upon payment, by physical Delivery
to the following address:  
 Authorized Signature:
                                        
                                        
                                        

	Direct	Correspondence To: DEBBIE WEBER – Microsemi Corporate Office FAX #: (949) 756-2602 

  

	***	 To CONFIRM RECEIPT of your request to exercise options, call DEBBIE WEBER at: (949) 221-7102.

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